Integration of ERP Systems in Accounting Practice Essay

Integration of ERP Systems in Accounting Practice - Essay Example This paper illustrates that beginning the early 1990s, the world has embraced technological advancement in literary all fields of application, including business management and organization. A prime example of technological adoption is Enterprise Resource Planning (ERP) in business management. ERP is software for business management that enables organizations to use an integrated applications system for the business management. The software integrates all paradigms of business operation, including manufacturing, development, marketing, and sales. ERP software incorporates various enterprise software modules that an organization may decide to purchase, depending on its technical capabilities and business needs. Particular ERP modules focus on specific areas of business processes, such as marketing or development. Among the popular ERP include those that tackle material purchasing, product planning, accounting, distribution, human resource, distribution, inventory control, marketing, a nd finance. The consistent growth of the popularity of the ERP methodology, businesses, and organizations are increasingly adopting the use of ERP for management and organization, particularly in the accounting field. In their case study on the introduction of an ERP system in an Ivy League University, Wagner, Moll, and Newell outline an array of accountability and management control issues associated with the system, including dependency of the ERP systems on the entanglement of technology and users (socio-material assemblage). Others include the probability of ERP packages not to capture management accounting despite the particularity of the design, affordability, and power of community practice that influence the integration of the accounting logics within the system. Moreover, the study highlights the possibility of employee resistance in cases of incompatibility with practice legacy logic, and the need for reconfiguration, which is in misalignment with traditional system develo pment theories and vendors (Wagner and Newell, 2004:314). Another significant challenge that the ERP systems face is different context of use concerning the scope and type of modifications made in the post-roll-out phase, a factor that may influence the relational and on-linear nature of accounting literature. Summarily, the main problem result from misalignments legacy practices in the adopting organization and best practise embedded in the ERP systems. The authors of the study attribute the above problems are particularly common in packaged software implementation, thus necessitating early detection of any misalignments in system configuration and selection. Nonetheless, the authors acknowledge that complex and externally regulated misalignments tend to surface much later in the implementation phase, citing the case of the one of the Ivy League Universities (hereafter â€Å"Ivy†) as an example. Empirical evidence from recent studies indicate that conflicts and intense effor ts surface in the early stages of custom-built software development-use cycle, but in tailor-made software, these issues only surface at the later stages of implementation (Pouloudi and Whitley, 2000:341). Consequently, this highlights the need to address misalignment issues in the post-roll out phase. Indeed, the case study focuses primarily on this particular stage, highlighting the turnaround processes that address the misalignment and the subsequent emergence of a working ERP system. It is important to note that a working ERP system is essentially one that is different applicant within the organization use and accepts, but not necessarily the ideal one from any particular perspective (Yeow and Sia, 2000:15). The â€Å"