Accounting Information System

Table of Contents

Executive Summary1

Introduction2

Pressure Hydraulics - Case Overview2

Discussion3

Description of the Problem3

Solution Objectives4

Constraints5

Finances5

Employees6

Development Plans6

ERP Model - Accounting Information System8

Ledger9

Payment Service10

Settlements10

Reporting10

Service Tax10

Others11

Risk Analysis - ERP Implementation11

ERP Model - Inventory Management12

Management Deposits13

Traceability14

Purchasing Management14

Sales Management14

Billing15

Statistics Management15

ERP - Payroll Management15

Potential Solutions17

Conclusions and Recommendations18

References20

Executive Summary

Accounting as an information system measures, processes and transmits financial information about the company. It creates and maintains accounting records and produces financial information that is useful to other users. There are various problems identified in Pressure Hydraulics are broadly in the areas of Accounting, Payroll and Inventory Management. These problems are mainly because of lack an integrated approach to the operations of all the centers. These problems can be solved by an ERP infrastructure. The paper highlights several modules of ERP, its functions and applicability to the pressure hydraulics business. It also identifies the constraints and risks of such implementations. The feasibility analysis conducted suggests that Pressure Hydraulics should opt for an integrated approach through Enterprise Resource Planning which will eliminate human errors and allow easy access to updated information at all the centres in operation.

Introduction

Modern accountancy is focused on the end needs of those who use accounting information for decision making regardless of whether such persons are inside or outside the organization. Accounting as an information system measures, processes and transmits financial information about the company. It creates and maintains accounting records and produces financial information that is useful to other users. The essence of accounting as the enterprise information system accurately reflects the definition formulated by the American Association of Accountants (Beke 2010, 025-030). The Association defines accounting as a process of identification, measurement, processing and reporting of economic information to enable the formulation of opinions and decisions by users of the information.

Pressure Hydraulics - Case Overview

Pressure Hydraulics is in a business of providing maintenance and specialized servicing of hydraulic systems. Hydraulic systems are a very important source of energy transfer such as in modern aircraft (brakes, chassis released), cars (steering, dump trucks). Pressure hydraulics is used in cars, trucks, aircrafts etc. Hydraulic system is a set of interconnected parts whose function is to provide power or control over the hydraulic fluid under pressure in a closed system. The basic part of most hydraulic systems include: hydraulic fluid tank, non-return valve, hydraulic pump, filters, , hydraulic motor, hydraulic cylinder, and venting.

The business offers services through its three service centers;

Newcastle

Toronto

Maitland

The Maitland service centre offers special services to the mining industry whereby two purpose built trucks go onsite to service a range of mining equipment. The owner of the business, Allan Taylor is positive about expanding the business by opening up new service centers at Coffs Harbour and Gosford. These plans are mainly encouraged by considerable profits realized in the past years. Taylor also has plans to expand in the east coast of NSW. He also realizes the power and Information Technology and wants to integrate it to support the expansion and future business plans. At present, Taylor has close watch at his three service centers but with ...