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CH A P TE R5

ACCOUNTING IN ERP

SYSTEMS

L E ARNING O BJ ECTIVE S
After completing this chapter, you will be able to:
• Describe the differences between financial and managerial accounting
• Identify and describe problems associated with accounting and financial
reporting in unintegrated information systems
• Explain how ERP systems can help solve accounting and financial
reporting problems that occur in an unintegrated system
• Understand how the Enron scandal and the Sarbanes-Oxley Act of 2002
have affected accounting information systems
• Outline the accounting and management-reporting benefits that accrue
from having an ERP system
• Explain the importance of Extensible Business Reporting Language
(XBRL) in financial reporting

I N TRODUCTION

In previous chapters, you learned about functional area activities, both generally and specifically: In

Chapter 1, you read an overview of functional area activities; in Chapter 3, you learned about

Marketing and Sales activities; and in Chapter 4, you learned about Supply Chain Management. In

this chapter, you will learn about the activities in another functional area, Accounting and Finance.

You will see how Accounting and Finance is tightly integrated with all the other functional areas and

how Accounting activities aid in decision making.

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