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ERP Management Accounting Home Page


ERP environment

ERP environment, ERP financial systems, ERP common business language


Unfortunately when organizations recruit accountants they focus on qualifications and technical experience and rarely focus on interpersonal or behavioral skills. I feel very strongly that an accountant’s ability to relate and work effectively with non-accountants and other functional specialists is imperative especially in an ERP environment where all the systems and processes are integrated and therefore interdependent.’‘[Traditionally], accountants have worked with accountants, using standalone legacy financial systems and all speaking a common language, which is often unintelligible to non-accountants. Whereas, in an ERP environment, accountants need to work much more closely with other business functions within the organization, using shared integrated systems and speaking a common business language – not an easy transition for some to make.’ What is ‘best practice’ for a Management Accountant working with this type of system? l Accountants should stop behaving as ‘servants’ and start educating and encouraging other functional staff to use the system to do their own analyzing .A good example is overhead analyzing . l They should manage by exception rather than analyzing minutiae and should focus on trends rather than absolutes. l They should work in closely and partnership with the other business functions, rather than as the ‘arms length gatekeeper’s They should focus on providing support rather than control and providing information rather than data. What guidance would you provide for Management Accountants in organizations that have recently implemented ERP systems? l Expect and plan for a productivity dip in the first 2 or 3 months (learning curve).  l Challenge traditional reporting.  l Don’t assume the integrity of migrated data.  l Stick with it, keep an open mind, be patient. How should Management Accountants use ERP systems?  l To empower others.  l To improve data integrity.  l To simplify processes and automate elements of internal control.  l As a source of information, not as a source of data, that is as an MIS, not as a data repository. In BBB, after a very slow start, the Management Accountants became major drivers of the implementation.



 
 
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