Enterprise Resource Planning and Accounting Information Systems

ERP and AIS
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ERP and AIS
The Enterprise Resource Planning (ERP) system is one of the most significant systems in contemporary businesses. Further, with the emergence of new technologies like Accounting Information System (AIS), it is vital to understand how they relate to ERP systems. The current paper examines the two aspects to reveal fundamental differences and relations.
Difference Between ERP System and Accounting Software
ERP system is a computer and software combination used to organize and manage day-to-day core organizational processes. The system brings together different business procedures, allowing the flow of information and data across the processes or the organizational domains. Typically, the critical domains within an ERP system include accounting, project management, procurement, supply chain operations, and risk management and compliance. Essentially, the design of an ERP system is such that it follows a single and defined data structure (schema) with a shared database. Such a schema ensures information normalization across all access points based on standard definitions and user experiences. Thus, at its core, the ERP system automates business processes that do not require human intervention, collects data and information throughout the organization, provides a single database for access by multiple users, and helps inform decisions.
ERP system is different but also related to other critical software within modern organizations. For instance, looking at accounting is a business process that deals with preserving and analyzing financial accounts. To this end, specific software ...