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Chapter 5
One advantage of an integrated information system is that it simplifies the process of
closing the books and preparing financial statements. Accounting staff do not need to
assemble data from different systems because all of the required data are contained in a
centralized system. Figure 5-3 shows how Fitter’s balance sheet and P&L statement would
look in the SAP ERP system.
120
Balance Sheet
P&L statement
Comparison of
current year to
previous year
Source Line: SAP AG.
FIGURE 5-3 Balance sheet and income statement for Fitter in SAP ERP system
In an ERP system, the balance sheet and P&L statement are database reports that can
be quickly generated at any time, and because the data to prepare the reports are read
from the database tables, these reports are always up to date. Another feature of the ERP
balance sheet and P&L statement is the ability to quickly display data at different levels of
detail, as shown in Figure 5-4. In addition, an ERP system allows the user to create
financial statement variants, which are financial statements in other formats, prepared to
suit the needs of different users.
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