MIS-MOD-FIVE M&S

MODULE 5

Information systems for Accounting

Manufacturing and Service Systems

INFORMATION IN BUSINESS

Information is a business resource: ... needs to be appropriately

managed ...is vital to the survival of

contemporary businesses

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.

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

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

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.

Accounting is an information identification, development, measurement, and communication process

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

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

• 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

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.

Examples of Systems• Biological

cell human body

• Mechanical water heater computer

• Others solar system mathematics

E = mc2

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

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

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

Transactions

Financial

Transactions

Nonfinancial

Transactions

Information System

User Decisions

Information

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.

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

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.

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.

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).

AIS Vs MIS?

IS

AIS MIS

GLS/FRS TPS MRS FinanceMarketingProduction HRS Distribution

General Ledger/ Financial Reporting SystemManagement Reporting System

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

Data Source

• Financial transactions that enter to the system from internal/external

• These data should be first captured by the system ---- source documents

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

Data Collection

• capturing transaction data• recording data into forms – source

documents• validating and editing the data for

completeness and accuracy

Data Processing

• classifying• transcribing• sorting• batching• merging• calculating• summarizing• comparing

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

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.

Information Generation

• compiling• arranging• formatting• presenting

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.

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.

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.

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

AIS COMPONENTS

• An accounting information system (AIS) consists of people, procedures, data, software, information technology infrastructure.

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)

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

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.

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)

ExpenditureCycle

HumanResources

ProductionCycle

RevenueCycle

FinancingCycle

General Ledger & Reporting System

Transactions Processing System (TPS)

General Ledger/Financial Reporting System

• Produces financial statements and reports• Consists of two closely related subsystems:

- General ledger system

- Financial reporting system

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.

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.

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

INFORMATION AND DECISION MAKING

Characteristics of Useful Information

Understandable

Verifiable

TimelyRelevant

Reliable

Complete

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

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

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.

Manufacturing and Production systems

Manufacturing and Service Systems

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

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.

Marketing Information Systems

Manufacturing and Service Systems

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

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

Marketing Principles

Marketing mix Product Promotion Place Price

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

The Marketing Information System (MKIS)

Kotler's marketing nerve center 3 information flows

Internal Intelligence (from environment) Communications (to environment)

FirmEnviron-ment

Marketing intelligence

Marketing communications

Internalmarketinginformation

Kotler’s Information FlowsKotler’s Information Flows

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.

An MKIS Model Output

product place promotion price integrated mix

Database Input

AIS marketing research marketing intelligence

Marketing Intelligence Subsystem

Ethical activities aimed at gathering information about competitors

Each functional information system has an intelligence responsibility

Product Subsystem Product life cycle; introduction, growth,

maturity, and decline Information answers 3 key questions:

1.Introduce?

2.Change strategy?

3.Delete?

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

New Product Evaluation Model

New product committee Explicitly considers production as well as

marketing Lists decision criteria and their weight

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

Material, Money, and Material, Money, and Information FlowInformation Flow

Two-way information flow

SupplierSupplierManu-Manu-

facturerfacturerWhole-salerWhole-saler

RetailerRetailer ConsumerConsumerMaterial MaterialMaterialMaterial

MoneyMoney MoneyMoneyMoneyMoneyMoneyMoney

Promotion Subsystem Includes:

(1) advertising

(2) personal selling

(3) sales promotion

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

Pricing Subsystem Two Basic Approaches

1. Cost based (AIS provides the basis)

2. Demand-based (use what-if model)

Integrated-Mix Subsystem BRANDAID Model

Solid arrows: influences Dashed arrows: responses

Environmental and retailer influence on the consumer Individual influences Combined influences

Unexpected influences

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

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

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

HUMAN RESOURCE INFORMATION

SYSTEM

Manufacturing and Service Systems

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.

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.

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.

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.

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.

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

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.

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.

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

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

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.

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.

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.

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”.

CREATING A DISTINCTIVE SERVICE

It is a willful management act. Distinctive characters between

product and service, customer expectation and perception for service efficiency.

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.

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.

HOSPITAL

1.Front end Applications Patient database Medical server database Resource planning and control Medical case history database

2.Back Office Applications

Core Applications Manpower & personnel planning Maintenance of the service facilities Resource utilization & analysis Payroll & financial accounting Hospital billing and recovery

Critical Control Applications

Patient lifecycle Non use of critical resources Stock outs of drugs

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

Pharmacy ordering & information, prescription handling

Decision support

Finance and accounting

Supplies, inventory, maintenance, and orders management

Definition & Purpose of Hospital Information Systems

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

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

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

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

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:

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.

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.

HOTEL

1. Keep track of the customer profile: Type, purpose, service, duration

2. Monitoring occupancy level: Different tariff schemes, discounts & personalized service

3. Project future needs: Infrastructure for emerging needs.

4. Monitor the level of expectations: For effective and efficiency functioning of services.

5. Monitor the communication needs: Train and give information to employees for offering quality service.

6. Customer database: Customer records for future use.

BANKING

Customer database Service to the account holders Service for business promotions The index monitoring system Human resource upgrade

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

Functions – Back Office

Functions – Middle Office

Functions – Front Office

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?

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

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.

• 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?

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.

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

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

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

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