Erp System

CHAPTER 1
INTRODUCTION

1.1 Background

In earlier, the primary process of the accounting software is basic bookkeeping transaction for business. Currently, the evolution and improvement of the information technology had transformed the accounting software into more advances and dramatically improve the software. With the improved accounting software, it enables many business organizations to process transactions for multiple corporate divisions and in foreign currencies as well as optimized their resources. At the same time, the business organizationableto customize the way in preparing financial reports with complex ratio analysis and forecasting functions more easily with the upgraded accounting technology (STRAND, BAGRANOFF, & SIMKIN, 2008). With the improvement of the accounting information system, business environment had become more complex asbusiness processes required to make timely and efficient procurement of product parts, accounting, management inventory and human resource and distribution of good and services and a lot of inter-departments data flow for decision makings. In addition, the innovation of the accounting software also helped management of organization to efficiently improve the competitiveness by cost reduction and better logistic management. the innovation of the system are universally recognized by most of the large and small-to-medium-size enterprises (SME) as the innovation had brought tremendously improvement and rewards to the organization in worldwide competitive business environment with complex business practices.

At the end of 1980 and commencement of 1990 the accounting information systemhad developinto another level as it became a part of integrated enterprise software which areknown as Enterprise Resource Planning(ERP) Systems. Theimprovements and that can be conveyed from ERP system had caught attention of many business organizations. Therefore, the objective of this research paper isdiscussingand

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