MODULE 5

Manufacturing and Service Systems

Information systems for

Accounting
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 & External
Flows of Information

Top Stakeholders
Management

Middle

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Operations

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Management

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Operations Personnel Suppliers

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Customers

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Day-to-Day Operations Personnel
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
 Data Vs Information

• 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.
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 User
Information
Decisions
Nonfinancial System
Information
Transactions
 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.
 Types of Business Information Systems

 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)
III. Transaction Processing
Cycles
The transaction processing
cycles provide a means of
viewing the activities of a
business.

A. Revenue Cycle
B. Expenditure Cycle
C. Production Cycle

D. Finance Cycle

E. Financial Reporting Cycle

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 FinanceMarketing

Production HRS Distribution

General Ledger/ Financial Reporting System

Management Reporting System
 The General AIS Model
The External Environment

The Information Database

System Management

External Data External

Data Information
Data Processing End Users
Collection Generation
Sources

Feedback
Internal Internal
Sources of Data End Users

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 Analyses
Ex: 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.
Transactions Processing
System (TPS)
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)
Financing Expenditure Human
Cycle Cycle Resources

General Ledger & Reporting System

Production Revenue
Cycle Cycle
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 Vice Vice Vice President

President President President Computer
Marketing Production Finance Services

Manager Manager Manager Responsibility

Plant 1 Plant 2 Plant 3 and Authority

Manager Manager Manager Accountability

Unit 1 Unit 2 Unit 3
INFORMATION AND
DECISION MAKING
Characteristics of Useful Information

Relevant Timely

Reliable Understandable

Complete Verifiable
INFORMATION AND
DECISION MAKING
Characteristics 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 Value
To 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 Service Systems

Manufacturing and
Production systems
 Types of Business Information 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)
 Overview of an Inventory System

This system provides information about the number of items available in inventory to
support manufacturing and production activities.
Manufacturing and Service Systems

Marketing Information
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 Systems Represent
Functional Physical Systems
Functional information systems
Information
Marketing Manufacturing Finance Human resource resource
information information information information information
system system system system system

Marketing Manufacturing Finance Human Information

function function function resources Services
function function

Physical system of the firm

Marketing Principles
 Marketing mix
 Product
 Promotion
 Place
 Price
Marketing Information System Model Data Information

Input Output subsystems

subsystems
Product
Accounting D subsystem
information
system A Place
subsystem
Internal sources T

Marketing A Promotion
research subsystem Users
subsystem B

Environmental sources
A Price
subsystem
Marketing S
intelligence
subsystem E Integrated-
mix
subsystem
The Marketing Information
System (MKIS)
 Kotler's marketing nerve center
 3 information flows
 Internal
 Intelligence (from environment)
 Communications (to environment)
 Kotler’s Information Flows

Marketing intelligence

Internal Environ-
Firm
marketing ment
information
Marketing communications
 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?
 The Product Life Cycle and Related Decisions

STAGES
Introduction Growth Maturity Decline

Sales
Volume

Should the Should the

product be Should the product strategy product be
introduced be changed deleted
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 Information Flow

Money Money Money Money

Manu- Whole-saler
Supplier Material facturer Material Material Retailer Material Consumer

Two-way information flow

Promotion Subsystem
Includes:
(1) advertising

(2) personal selling

(3) sales promotion

A Difficult Area to
Computerize
Successful examples
1. Sales promotion --OCR scanning of barcodes
on coupons
2. Personal selling --laptops
A.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
BRANDAID
Product
Price
Advertising
Promotion
Manufacturer Price-off coupons

Premiums
Samplings
Price Package:
Graphics &
Trade promotion Sales function
Salespersons Distribution Assortment
Pacakge assortment
Sales

Availability

Retailer Price
Consumer
Promotion
Advertising
Seasonal
Price Product trend
Trade promotion Sales Price
Salespersons Distribution Advertising
Promotion
Pacakge assortment Price-off coupons

Premiums
Sampling
Competitor Package: Environment
Graphics &
function
Assortment
How Managers Use the MKIS

Subsystem

Integrated
Subsystem
Product Place Promotion Price Mix

Vice-pres of marketing X X X X X
Other executives X X X X X
Brand managers X X X X X
Sales manager X X
Advertising manager X X
Manager mktg research X X X X X
Manager of product planning X
Manager of physical distribution X
Other managers X X X X X
 Marketing Managers Are Using the Computer More
for Making the Difficult Price and Promotion Decisions

Product .32
Product .49

Price .27 Price .39

Place .16 Place .15

Promotion .08 Promotion .13

1980 1990
Note: The percentages are based on the number of respondents ranking the particular
mix functions first.
Manufacturing and Service Systems

HUMAN RESOURCE
INFORMATION
SYSTEM
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 Track
Personal Recruitment Employment Salary
Records & Selection Equity Administration

Medical Pension
Records People Administration

Health & Job Positions Employee

Safety Relations

HR Planning Trng. & Dev. Compensation Benefits

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.
 Output
HRIS Model subsystems
Input Work force Data Information
subsystems planning
subsystem
Accounting
information
Recruiting
system
subsystem
Internal
sources
Human Work force
resources management Users
research HRIS subsystem
system Database
Environmental Compensation
sources
Subsystem
Manufacturing
intelligence Benefits
subsystem subsystem

Environmental
reporting
subsystem
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, Training completed,
Job title, Special qualifications,
Ethnicity,
Grade,
Date of birth,
Salary, Disabilities,
Salary history, Veterans status,
Position history, Visa status,
Supervisor, 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
Definition & Purpose of Hospital Information Systems

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

 Advantages 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

 Development & Future 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
 Types of Hospital Information System

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
Centralized
 This distinction isvs. Decentralized
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 System
Business 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
Agenda – Efficiency
Improvement
 Functions
o Back Office
o Middle Office
o Front Office
 Overall Improvements
o Banking Connections/Electronic Banking Platforms
o System Usage
o Optimization of Personnel
 Use of Systems
o ERP Systems
o Treasury Software Applications
o Banking Systems
 Integration
o System Integration
o Cash, Treasury, and Risk Functional Integration
o Banking Information Integration
Functions – Back Office
Functions – Middle Office
Functions – Front Office
 Accounting and Treasury to Bank Process

Where are the processing efficiency possibilities?

Browser

Manual Through on- Deal

line Application Execution
Bank
File Channel System
Automated through an Layer (Deal
Statement
ERP System & Trade
Data
execution
transaction
Messages processing
information
Investment
Automated through a delivery
Treasury System Positions

Transaction
Manual Execution

Manual through activity Delivery and

at a branch information Validation and
exchange Processing
Routing Systems Systems
Understand what you
have
The 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.
What is an ERP system?
• 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.
 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
A streamlined efficient
process

Payments

Trade/Deal
Your Bank Integration
Accounting and Information ERP/Treasury Information Platform
Banking  Communications
Treasury Group Entry
System(s)
Exchange
 Security Information

Debt

Investment

Integration
5 with Treasury and Information Systems
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

Your Treasury and

Tax Income Communications Account
Security Reconcilement
Translation Systems
AP/AR

Bank D