Flashcards in ACC200 Ch2 Set 3 Deck (9)
Electronic data interchange
to communicate with it's suppliers. Every year it processes over half a million invoices electronically, thereby eliminating paper documents & dramatically reducing costs & errors. This has resulted in higher profits & more accurate information. EDI is the electronic communication of transactions (orders, confirmations, & invoices) between organisations.
are used by employees to control operational activities & by managers to make decisions as well as to formulate business strategies.
Integrated enterprise resource planning system?
Integrated ERP database:
- Revenue cycle
- Expenditure cycle
- General ledger & reporting cycle
- Production cycle
- HRM cycle / payroll sub cycle
Typical ERP module includes?
- financial (general ledger & reporting cycle
- human resources & payroll (HRM cycle/payroll subcycle)
- order to cash (revenue cycle)
- purchase to pay (expenditure cycle)
- manufacturing (production cycle)
- project management
- customer relationship management (CRM)
- system tools
- an ERP provides an integrated, enterprise-wide, single view of the organisation's data & financial situation. Storing all corporate data in a single database breaks down barriers between departments & streamlines flows of information.
- data input is captured or keyed once, rather than multiple times, as it is entered into different systems. Downloading data from one system to another is no longer needed
- Management gains greater visibility into every area of an enterprise & greater monitoring capabilities. Employees are more productive & efficient because they can quickly gather data from both inside & outside their own department.
- An organisation gains better access control. An ERP can consolidate multiple permissions & security models into a single data access structure.
- Procedures & reports are standardised across business units. This standardisation can be especially valuable with mergers & acquisitions because an ERP system can replace different systems with a single, unified system.
- Customer service improves because employees can quickly access orders, check inventory, shipping information & past customer transaction details.
- Manufacturing plants receive new orders in real time, & automation of manufacturing processes leads to increased productivity.