mis-mod-five m&s
TRANSCRIPT
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MODULE 5
Information systems for Accounting
Manufacturing and Service Systems
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INFORMATION IN BUSINESS
Information is a business resource: ... needs to be appropriately
managed ...is vital to the survival of
contemporary businesses
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INFORMATION IN BUSINESS
• Example
- Amin and Asmah formed ADA, Inc., to sell home appliances to the public.
- Amin and Asmah plan to hold the grand opening of ADA in four weeks.
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INFORMATION IN BUSINESS• What types of important decisions do
Amin and Asmah have to make?– how to organize their accounting records– how to design a set of procedures to ensure
that they meet all of their government obligations
– how to price their products
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INFORMATION IN BUSINESS
– whether to extend credit, on what terms, and how to accurately track what customers owe and have paid
– how to hire, train, and supervise their employees
– how to keep track of cash flows– the appropriate product mix and quantities to
carry
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INFORMATION REQUIREMENTS
• Each user group has unique information requirements.
• The higher the level of the organization, the greater the need for more aggregated information and less need for detail.
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Accounting is an information identification, development, measurement, and communication process
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Internal & ExternalFlows of Information
TopManagement
Middle
Management
Operations
Management
Operations Personnel
Day-to-Day Operations Personnel
Bud
get I
nfor
mat
ion
and
Inst
ruct
ions
Perform
ance Information
Customers
Stakeholders
Suppliers
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Internal Information Flows• Horizontal flows of information used primarily at
the operations level to capture transaction and operations data (detailed information).
• Vertical flows of information downward flows--instructions, quotas, and budgets upward flows--aggregated transaction and operations
data
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• The term data refers to any and all of the raw facts that are collected, stored, and processed by an information system.
• Information is data that has been organized and processed so that it is meaningful and useful for decisions making, resolve conflicts, and/or reduce uncertainty.
Data Vs Information
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WHAT IS A SYSTEM?• A group of interrelated multiple components or
subsystems that serve a common purpose• A set of two or more interrelated components
that interact to achieve a goal.• Systems are almost always composed of smaller
subsystems.• System or subsystem?
A system is called a subsystem when it is viewed as a component of a larger system.
A subsystem is considered a system when it is the focus of attention.
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Examples of Systems• Biological
cell human body
• Mechanical water heater computer
• Others solar system mathematics
E = mc2
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System Decomposition Vs System Interdependency
• System Decomposition the process of dividing the system into smaller subsystem
parts
• System Interdependency distinct parts are not self-contained they are reliant upon the functioning of the other parts of
the system all distinct parts must be functioning or the system will fail
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WHAT IS ACCOUNTING?
• Accounting is an information system which identifies, collects, processes, and
communicates economic information about an entity to a wide variety of people regardless of the technology
captures and records the financial effects of the firm’s transactions
distributes transaction information to operations personnel to coordinate many key tasks
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Transactions• A transaction is a business event.• Financial transactions
economic events that affect the assets and equities of the organization
e.g., purchase of an airline ticket• Non financial transactions
all other events processed by the organization’s information system
e.g., an airline reservation--no commitment by the customer
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Transactions
Financial
Transactions
Nonfinancial
Transactions
Information System
User Decisions
Information
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WHAT IS ACCOUNTING INFORMATION SYSTEMS?
• An information system that is specially designed for accounting and finance.
• A collection of resources, such as people and equipment, design to transform financial and other data into information. This information is communicated to a wide range of decision makers.
• A combination of financial and management accounting information system.
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Finance and accounting systems Functional concerns include:
Managing financial assets (cash, stocks, etc.) and capitalization of firm, and managing firm’s financial records
Examples of systems: Accounts receivable (operational mgmt) Budgeting (middle mgmt) Profit planning (senior mgmt)
Types of Business Information Systems
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III. Transaction Processing Cycles
A. Revenue Cycle
B. Expenditure Cycle
C. Production Cycle
D. Finance Cycle
E. Financial Reporting Cycle
The transaction processing cycles provide a means of viewing the activities of a
business.
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Functions perform by AIS in an organization?
1. It collects and stores data about activities and transactions.
2 It processes data into information that is useful for making
decisions.3 It provides adequate controls to
safeguard the organization’s assets.
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AIS Vs MIS
• Accounting Information Systems (AISs) process financial (e.g., sale of goods) and non financial transactions (e.g., addition of newly approved vendor) that directly affect the processing of financial transactions.
• Management Information Systems (MISs) process non financial transactions that are not normally processed by traditional AISs (e.g., tracking customer complaints).
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AIS Vs MIS?
IS
AIS MIS
GLS/FRS TPS MRS FinanceMarketingProduction HRS Distribution
General Ledger/ Financial Reporting SystemManagement Reporting System
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The General AIS Model
The InformationSystem
DatabaseManagement
DataCollection
DataProcessing
InformationGeneration
The External Environment
InternalSources of Data
InternalEnd Users
ExternalDataSources
ExternalEnd Users
Feedback
The Business Organization
Feedback
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Data Source
• Financial transactions that enter to the system from internal/external
• These data should be first captured by the system ---- source documents
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Transforming the Data into Information
• Functions for transforming data into information according to the general AIS model: 1. Data Collection
2. Data Processing
3. Data Management
4. Information Generation
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Data Collection
• capturing transaction data• recording data into forms – source
documents• validating and editing the data for
completeness and accuracy
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Data Processing
• classifying• transcribing• sorting• batching• merging• calculating• summarizing• comparing
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Data Management
• Storing – assign keys to new record and store in database
• Retrieving – locating & extracting existing record e.g. data update / maintenance
• Deleting – Remove obsolete / redundant records from database
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Data Hierarchy
• Data attributes – piece of potential useful data
• Record – Complete set of attribute for single occurrence. Can be identified by primary key
• Files – Complete set of records of an identical class.
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Information Generation
• compiling• arranging• formatting• presenting
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WHY STUDY AIS?• The primary objective of accounting is to provide
information useful to decision makers.– accounting is an information identification, development,
measurement, and communication process. Students should know: the use of information in decision making. the nature, design, use, and implementation
of an AIS. financial information reporting.
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WHY STUDY AIS?
• Auditors need to understand the systems that are used to produce a company’s financial statements.
• Tax professionals need to understand enough about the client’s AIS to be confident that the information used for tax planning and compliance work is complete and accurate.
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WHY STUDY AIS?
• One of the fastest growing types of consulting services entails the design, selection, and implementation of new AIS.
• Work relating to accounting systems was the single most important activity performed by corporate accountants.
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AIS OBJECTIVES• Same as information systems’ goals:
Support day-to-day operations
- Transaction processing Support Internal/Management Decision
- Trend AnalysesEx: Trend revenues for past years
and the current level of revenues- Quantitative & Qualitative Data- Non-transactional sources (MIS)
Help fulfill Stewardship Role – legal obligations
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AIS COMPONENTS
• An accounting information system (AIS) consists of people, procedures, data, software, information technology infrastructure.
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AIS SUBSYSTEMS• There are three AIS subsystems:
1 Transaction processing system (TPS)
2 General Ledger/ Financial Reporting System (GL/FRS)
3 Management Reporting System (MRS)
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Transactions Processing System (TPS)
• Supports daily business operations
- Converting economic events into financial transactions
- Recording financial transactions in the accounting records (journals and ledgers)
- Distributing essential financial information to operations personnel
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Transactions Processing System (TPS)
• Consists of transaction cycles:1 The expenditure cycle: involves activities
of buying and paying for goods or services used by the organization.
2 The production cycle: involves activities converting raw materials and labor into finished goods.
3 The human resources/payroll cycle: involves activities of hiring and paying employees.
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4 The revenue cycle: involves activities of selling goods or services and collecting payment for those sales.
5 The financing cycle: involves activities of obtaining necessary funds to run the organization, repay creditors, and distribute profits to investors.
Transactions Processing System (TPS)
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ExpenditureCycle
HumanResources
ProductionCycle
RevenueCycle
FinancingCycle
General Ledger & Reporting System
Transactions Processing System (TPS)
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General Ledger/Financial Reporting System
• Produces financial statements and reports• Consists of two closely related subsystems:
- General ledger system
- Financial reporting system
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General Ledger/Financial Reporting System
• General ledger system – process the summaries of transaction cycle activity from the transaction cycles to update the general ledger control accounts.
• Financial reporting system – measures and reports the status of financial resources and changes in those resources.
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Management Reporting System (MRS)
• Produces special-purpose reports for internal use – budgets, variance reports, cost-volume-profit analyses and report using current (rather than historical) cost data.
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Example for Organizational structure
President
Vice President Marketing
Vice President
Production
Vice President Finance
Vice President Computer Services
Manager Plant 1
Manager Plant 2
Manager Plant 3
Manager Unit 1
Manager Unit 2
Manager Unit 3
Responsibility and Authority
Accountability
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INFORMATION AND DECISION MAKING
Characteristics of Useful Information
Understandable
Verifiable
TimelyRelevant
Reliable
Complete
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INFORMATION AND DECISION MAKINGCharacteristics of Useful Information
Relevant - Reduces uncertainty, improves decision makers’ ability to make predictions
Reliable - Free from error and bias and accurately represents the events or activities of the organization.
Complete - Does not omit important aspects of the underlying events or activities that is measures
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INFORMATION AND DECISION MAKING
Timely - Provided in time to enable decision makers to use it to make decisions
Understandable - Presented in a useful and intelligible format
Verifiable - Two knowledgeable people acting independently each produce the same information
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How An AIS Can Add ValueTo An Organization• An AIS adds value...
– by providing accurate and timely information to perform the various value chain activities.
• A well-designed AIS can further improve the efficiency and effectiveness of those activities by…– improving the quality and reducing the costs of
products or services.
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Manufacturing and Production systems
Manufacturing and Service Systems
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Manufacturing and production systems Functional concerns include:
Managing production facilities, production goals, production materials, and scheduling
Examples of systems: Machine control (operational mgmt) Production planning (middle mgmt) Facilities location (senior mgmt)
Types of Business Information Systems
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Overview of an Inventory SystemOverview of an Inventory System
This system provides information about the number of items available in inventory to support manufacturing and production activities.
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Marketing Information Systems
Manufacturing and Service Systems
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Introduction
Marketing was the first functional area to exhibit an interest in MIS
The marketing information system has three subsystems; the accounting information system, marketing research, and marketing intelligence
Functional information systems: the conceptual systems should be "mirror images" of the physical systems
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Functional information systemsFunctional information systems
Marketinginformation
system
Manufacturinginformation
system
Financeinformation
system
Human resourceinformation
system
Marketingfunction
Manufacturingfunction
Financefunction
Humanresourcesfunction
Physical system of the firmPhysical system of the firm
Functional Information Systems Functional Information Systems RepresentRepresent
Functional Physical SystemsFunctional Physical SystemsInformation
resourceinformation
system
Information Servicesfunction
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Marketing Principles
Marketing mix Product Promotion Place Price
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Input subsystems
Output subsystems
DD
AA
TT
AA
BB
AA
SS
EE
Accounting information
system
Marketing research
subsystem
Marketing intelligence subsystem
Internal sources
Environmental sources
Product subsystem
Place subsystem
Promotion subsystem
Price subsystem
Integrated-mix
subsystem
Users
DataData InformationInformationMarketing Information System ModelMarketing Information System Model
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The Marketing Information System (MKIS)
Kotler's marketing nerve center 3 information flows
Internal Intelligence (from environment) Communications (to environment)
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FirmEnviron-ment
Marketing intelligence
Marketing communications
Internalmarketinginformation
Kotler’s Information FlowsKotler’s Information Flows
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Marketing Information System (MKIS) Definition
A computer-based system that works in conjunction with other functional information systems to support the firm's management in solving problems that relate to marketing the firm's products.
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An MKIS Model Output
product place promotion price integrated mix
Database Input
AIS marketing research marketing intelligence
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Marketing Intelligence Subsystem
Ethical activities aimed at gathering information about competitors
Each functional information system has an intelligence responsibility
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Product Subsystem Product life cycle; introduction, growth,
maturity, and decline Information answers 3 key questions:
1.Introduce?
2.Change strategy?
3.Delete?
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SalesSalesVolumeVolume
STAGESSTAGES
Introduction Growth Maturity Decline
Should theproduct beintroduced
Should the product strategy be changed
Should theproduct be
deleted
The Product Life Cycle and Related The Product Life Cycle and Related DecisionsDecisions
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New Product Evaluation Model
New product committee Explicitly considers production as well as
marketing Lists decision criteria and their weight
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Place Subsystem Channel of distribution may be short or long Material, money, and information flow
through the distribution channel Resource flows Feedforward information EDI fits in here
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Material, Money, and Material, Money, and Information FlowInformation Flow
Two-way information flow
SupplierSupplierManu-Manu-
facturerfacturerWhole-salerWhole-saler
RetailerRetailer ConsumerConsumerMaterial MaterialMaterialMaterial
MoneyMoney MoneyMoneyMoneyMoneyMoneyMoney
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Promotion Subsystem Includes:
(1) advertising
(2) personal selling
(3) sales promotion
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A Difficult Area to Computerize
Successful examples1. Sales promotion --OCR scanning of barcodes
on coupons
2. Personal selling --laptopsA.Order entry
B.Customer call reports
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Pricing Subsystem Two Basic Approaches
1. Cost based (AIS provides the basis)
2. Demand-based (use what-if model)
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Integrated-Mix Subsystem BRANDAID Model
Solid arrows: influences Dashed arrows: responses
Environmental and retailer influence on the consumer Individual influences Combined influences
Unexpected influences
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ProductProduct PricePrice AdvertisingAdvertising PromotionPromotion Price-off coupons Price-off coupons
PremiumsPremiums SamplingsSamplings Package:Package: Graphics & Graphics &
functionfunction AssortmentAssortment
SalesSales
AvailabilityAvailability Price Price PromotionPromotion AdvertisingAdvertising
ProductProduct PricePrice AdvertisingAdvertising PromotionPromotion Price-off couponsPrice-off coupons
PremiumsPremiums SamplingSampling Package:Package: Graphics &Graphics &
functionfunction Assortment Assortment
SeasonalSeasonaltrendtrend
ManufacturerManufacturerManufacturerManufacturer
RetailerRetailerRetailerRetailer
CompetitorCompetitorCompetitorCompetitor EnvironmentEnvironmentEnvironmentEnvironment
ConsumerConsumerConsumerConsumer
BRANDAID BRANDAID
Sales Sales DistributionDistribution
PricePriceTrade promotionTrade promotion
SalespersonsSalespersonsPacakge assortmentPacakge assortment
PricePriceTrade promotionTrade promotion
SalespersonsSalespersonsPacakge assortmentPacakge assortment
Sales Sales DistributionDistribution
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How Managers Use the MKIS
IntegratedProduct Place Promotion Price Mix
Vice-pres of marketing X X X X XOther executives X X X X XBrand managers X X X X XSales manager X XAdvertising manager X XManager mktg research X X X X XManager of product planning XManager of physical distribution XOther managers X X X X X
Subsystem
Subsystem
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Note: The percentages are based on the number of respondents ranking the particular Note: The percentages are based on the number of respondents ranking the particular mix functions first.mix functions first.
Marketing Managers Are Using the Computer Marketing Managers Are Using the Computer MoreMore
for Making the Difficult Price and Promotion for Making the Difficult Price and Promotion DecisionsDecisions
19801980 19901990
Product .49
Price .27
Place .16
Promotion .08
Product .32
Price .39
Place .15
Promotion .13
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HUMAN RESOURCE INFORMATION
SYSTEM
Manufacturing and Service Systems
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HRM – An Introduction
Human Resources is an organizational function that deals with issues such as recruitment and selection, training, appraisal, compensation and performance management of the employee.
Human beings are also considered to be resources because it is the ability of humans that helps to change the gifts of nature into valuable resources.
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Information System
A system, whether automated or manual, that comprises people, machines, and/or methods organized to collect, process, transmit, and disseminate data that represent user information.
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The Evolution of the HRIS
First, paper files were located in the Personnel department.
Then, punched card and magnetic media files were located in IS.
Government legislation in the 1960s and 70s eventually called management's attention to the importance of HR data.
In the late 1970's the concept of an HRIS was born.
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HRIS - Introduction
Human Resource Information System (HRIS) is a systematic way of storing data and information for each individual employee to aid planning, decision making, and submitting of returns and reports to the external agencies.
It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field.
It can be used to maintain details such as employee profiles, absence reports, salary admin. and various kinds of reports.
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HRIS – Why it is needed?
Storing information and data for each individual employee.
Providing a basis for planning, decision making, controlling and other human resource functions.
Meeting daily transactional requirement such as marking absent and present and granting leave.
Supplying data and submitting returns to government and other statutory agencies.
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HRIS TrackPersonal Records
Recruitment & Selection
Employment Equity
Salary Administration
Trng. & Dev. Compensation
Employee Relations
BenefitsHR Planning
Pension Administration
Medical Records
Health & Safety
Job
People
Positions
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HRIS – Appl. & Utilities Personnel administration - It will encompass
information about each employee, such as name address, personal details etc.
Salary administration - Salary review procedure are important function of HRM, a good HRIS system must be able to perform what if analysis and present the reports Of changes.
Leave and absence recording — Essentially be able to provide comprehensive method of controlling leave/absences.
Skill inventory - It is also used to store record of acquired skills and monitor the skill database both employee and organisational level.
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HRIS – Appl. & Utilities Performance appraisal — The system should record individual
employee performance, appraisal data, such as due date of appraisal, scores etc.
Human resource planning — HRIS should record details of the organisational requirements in terms of positions
Recruitment — Record details of recruitment activities such as cost and method of recruitment and time to fill the position etc.
Career planning - System must be able to provide with succession plans reports to identify which employee have been earmarked for which position.
Collective bargaining — A computer terminal can be positioned in the conference room linked to database. This will expedite negotiations by readily providing up to date data based on facts and figures and not feelings and fictions.
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Accountinginformation
system
Human resourcesresearchsystem
Manufacturingintelligencesubsystem
Work forceplanning
subsystem
Work forcemanagementsubsystem
Benefitssubsystem
Internalsources
Environmentalsources
Inputsubsystems
Outputsubsystems
Users
Data Information
Environmentalreporting
subsystem
HRISDatabase
HRIS ModelHRIS Model
Recruitingsubsystem
CompensationSubsystem
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Human Resources Intelligence Subsystem
HR has the responsibility for interfacing with the most environmental elements of any functional
area. Government -- stay current on legislation. File
reports. Suppliers -- employment services Labor unions, local community, competitors --
sources of employees Global community intelligence Financial community -- employee planning Competitor intelligence
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FUNCTIONS OF HRIS AND HRMS Typically, HRMS/HCM technology replaces
the four core HR activities by streamlining them electronically;
1) Payroll 2) Time and labor management, 3) Benefit administration and 4) HR management.
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These systems include the employee name and contact information and all or some of the
following:
Department, Job title, Grade, Salary, Salary history, Position history, Supervisor,
Training completed, Special qualifications, Ethnicity, Date of birth, Disabilities, Veterans status, Visa status, Benefits selected, and more.
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IS IN SERVICE SECTOR
AIM Providing the most satisfying service to the
customer. These applications make a service
organization efficient and effective in providing the best service.
Undergoes changes more rapidly than manufacturing sector.
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KOTLER defines it as
“ SERVICE IS AN ACTIVITY OR A BENEFIT THAT ONE PARTY CAN OFFER TO ANOTHER WHICH IS ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN THE OWNERSHIP OF ANYTHING”.
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CREATING A DISTINCTIVE SERVICE
It is a willful management act. Distinctive characters between
product and service, customer expectation and perception for service efficiency.
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5 PRINCIPLES OF A DISTINCTIVE SERVICE
Listen, understand and respond to the customers.
Define a superior service and establish a service strategy.
Set standards and measure and performance.
Select, train and empower the employees to work for the customers.
Recognize and reward the accomplishments.
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SERVICE VS PRODUCT
A product is tangible but a service is not. Product offered to payment and service to
demand. Product can be demonstrated before actual
scale but service cannot be. Product can be produced, sold and
consumed in stages while service is produced simultaneously.
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HOSPITAL
1.Front end Applications Patient database Medical server database Resource planning and control Medical case history database
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2.Back Office Applications
Core Applications Manpower & personnel planning Maintenance of the service facilities Resource utilization & analysis Payroll & financial accounting Hospital billing and recovery
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Critical Control Applications
Patient lifecycle Non use of critical resources Stock outs of drugs
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A Hospital Information System (HIS) is a computerized system designed to meet the information needs of all (or most) of a hospital. This includes many diverse types of data, such as:
Patient information
Clinical laboratory, radiology, and patient monitoring
Patient census and billing
Staffing and scheduling
Outcomes assessment and quality control
Definition & Purpose of Hospital Information Systems
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Pharmacy ordering & information, prescription handling
Decision support
Finance and accounting
Supplies, inventory, maintenance, and orders management
Definition & Purpose of Hospital Information Systems
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Why all the fuss about Hospital Information Systems? What's so great about them? A 1998 survey of executive nurses listed these benefits:
Increased time nurses spend with patients
Access to information
Improved quality of documentation
Improved quality of patient care
Increased nursing productivity
Improved communications
Advantages of Hospital Information Systems
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Reduced medication errors
Reduced hospital costs Increased nurse job satisfaction
Development of a common clinical database
Improved patient's perception of care
Enhanced ability to track patient's record
Enhanced ability to recruit and retain staff
Improved hospital image
Advantages of Hospital Information Systems
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Research and teaching hospitals presumably have a much higher usage of Hospital Information Systems.
The future is not certain. Several factors are at work:
Computer hardware is getting more affordable Computer software is not getting any less expensive Budgets for Hospital Information Systems are generally not expanding Medical caregivers are under pressure to handle more patients on an outpatient basis, reducing hospital census and generally reducing hospital budgets Standards for storing and exchanging patient information have not been agreed on
Development & Future of Hospital Information Systems
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Hospital Information Systems come in many flavors, depending on whether they are based on...
centralized or decentralized plans
software that was originally business-oriented or patient-oriented
terminals or workstations
Types of Hospital Information System
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Types of Hospital Information System
Centralized vs. Decentralized This distinction is based on whether information is kept primarily in a central computer, or is distributed over a number of workstations or servers located around the hospital.
There are variations on this; for example, a system may be partially centralized but integrated with powerful and somewhat independent satellite systems. Examples:
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Some systems may centralized certain functions like billing and accounting in an administrative facility serving several affiliated hospitals, while other functions like patient record-keeping are carried out at the individual hospitals or medical units.
Other systems may centralize their patient record-keeping and have smooth exchange of information with a specialized clinical laboratory computer system which is mainly independent of the primary HIS.
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Types of Hospital Information SystemBusiness Oriented vs. Patient Oriented
Though both these types of systems handle patient information, the orientation of the original designers may affect the procedures and general "character" of a HIS.
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HOTEL
1. Keep track of the customer profile: Type, purpose, service, duration
2. Monitoring occupancy level: Different tariff schemes, discounts & personalized service
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3. Project future needs: Infrastructure for emerging needs.
4. Monitor the level of expectations: For effective and efficiency functioning of services.
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5. Monitor the communication needs: Train and give information to employees for offering quality service.
6. Customer database: Customer records for future use.
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BANKING
Customer database Service to the account holders Service for business promotions The index monitoring system Human resource upgrade
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Functionso Back Officeo Middle Officeo Front Office
Overall Improvementso Banking Connections/Electronic Banking Platformso System Usageo Optimization of Personnel
Use of Systemso ERP Systemso Treasury Software Applicationso Banking Systems
Integrationo System Integrationo Cash, Treasury, and Risk Functional Integrationo Banking Information Integration
Agenda – Efficiency Improvement
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Functions – Back Office
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Functions – Middle Office
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Functions – Front Office
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Manual Through on- line Application
Automated through a Treasury System
Automated through anERP System
Bank System
Layer (Deal & Trade
execution transaction processing information
delivery
Bank System
Layer (Deal & Trade
execution transaction processing information
delivery
Transaction Execution
Investment Positions
Statement Data
Deal Execution
Delivery and information exchange
Validation and Routing Systems
Processing Systems
Browser
Messages
File Channel
Manual
Manual through activity at a branch
Accounting and Treasury to Bank Process
Where are the processing efficiency possibilities?
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Understand what you haveThe first step to processing efficiency is to understand what you
have and how it is used in your back office
How many banking systems are used?
Goal for back office improvement – streamline banking systems
How many different connections are in place with banking partners?
Goal for back office improvement – minimize number of banking connections
How is the data captured?
Goal – Centralize and automate data capture
Are there other systems in place?
ERP / Treasury / Investment Systems – For Optimal back end efficiency, the banking systems should be integrated with these and they should be integrated with each other
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Three Primary Categories of Systems ERP Systems – For managing the total operations of your organization. These typically support back and middle office function in your organization.
Treasury Systems – For managing cash, treasury, and risk management in your organization. These typically support middle and front office function in your organization
Other Systems – These include budgeting platforms, investment and debt management platforms, and transaction execution platforms.
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• ERP stands for Enterprise Resource Planning. These type of systems integrate the operations of companies.
This includes procurement, logistics, inventory, human resources, budget, a/p & a/r, financial reporting, general ledger, and in some cases, treasury modules.
What is an ERP system?
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Investment in and implementation of an ERP system is a major undertaking by your organization. A complete implementation these systems can take a year or more depending on the complexity of your organization.
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Process Efficiencies Possible - ERP An ERP streamlines the day to day
operations of your organization Supports activities across all state entities and
municipalities Enables cross functional integration in your organization Enables “just in time” inventory management Streamlines the financial value chain Enables automation of collection and payables process Provides high confidence in validity of financial reporting
information Integrates with bank EDI platforms (i.e. CFS, CPS) for
payment initiation and information reporting Provides integrated budgeting capabilities
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Process Efficiencies Possible – Other Applications These applications streamline
execution function for deal and risk management Optimized use of budgeted funds Efficient management of liquidity against funding
requirements and allocated projects Full understanding of risk exposure for invested cash Readily accessible statistics and reporting on investment
performance
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Your Accounting and Treasury Group
ERP/Treasury Banking
System(s)
Debt
Investment
Information
Payments
Trade/DealBank Integration
Platform Communications Security
Information
Exchange
5Integration with Treasury and Information Systems
A streamlined efficient process
Information
Entry
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Now it is possible….The next step is cash flow and forecast integration
The capture of forecasted flows from various entities throughout your state and capture of intra-day positions of cash from banking partners. Changes of debt and investment positions.
County
Communications
Security
Translation
Bank D
AP/AR
Tax IncomeYour Treasury and
Account Reconcilement
Systems