Analysis of ERP related function adjustment under

  • Detail

Analysis on the adjustment of ERP related functions under the new enterprise accounting system introduction since January 1st, 2007, China's enterprise accounting standards and auditing standards have been implemented, and listed companies and central large enterprises have begun to implement the new enterprise accounting standards. Since most of these enterprises have completed the preliminary information construction, in the process of implementing the new accounting standards, they first need the support of various relevant management software systems within the enterprise, including financial systems and various business systems, including business data collection, business data sharing, business to financial conversion process, financial processing and statement content. Therefore, the corresponding software system needs to be adjusted and improved in time in terms of business process, business model and financial model

as the core of enterprise information, ERP system involves many aspects of enterprise operation, such as finance, business, production, inventory and so on. The implementation of the new accounting standards first requires adaptive adjustment of ERP software. This paper mainly analyzes the impact of the new accounting standards system on the financial model and financial business integration model of ERP system

2 major changes related to ERP in the new accounting standards

the new standards have made major changes in ERP related aspects. It is mainly reflected in the following aspects: the new accounting standards redefine the six accounting elements of assets, liabilities, owner's equity, income, expenses and profits; The inventory bookkeeping method cancels the "last in first out method"; Changes in the provision for asset impairment; Changes in debt restructuring methods; Accrual basis and historical cost are no longer the basic principles of accounting; Pay more attention to fair value; Changes in accounting treatment methods for business combinations; Changes in consolidated statement theory, etc. These changes more or less have an impact on ERP functions, thus putting forward adjustment requirements for ERP functions and processing methods

(1) accounting subjects and statements, etc. The accounting elements under the new standard system are classified according to six elements, the connotation of each accounting subject has changed, and the specific accounting subjects and statements have changed. The financial statements in the new standards should at least include the following components: balance sheet, income statement, statement of changes in owner's equity (or shareholder's equity), cash flow statement and annotation. Among them, the statement of changes in owner's equity is a newly added statement, and the formats of other statements have changed. In particular, the income statement has changed the original five parts into four parts, canceling the main business profit, and directly calculating the operating profit with the operating revenue minus the operating cost

(2) changes in inventory delivery and asset depreciation accrual. The new standards converge with the international accounting standards, which stipulates that enterprises should adopt the first in first out method, weighted average method or individual valuation method to determine the cost of inventories. Theoretically, this will have a certain impact on downstream processing and manufacturing enterprises with a long production cycle, such as electrical equipment companies, home appliance manufacturing companies, etc. These companies originally adopted the "last in, first out" method, with more inventory and low turnover. After adopting the new inventory valuation method, their gross profit margin and profit will fluctuate abnormally. Moreover, in an inflationary market environment, using the LIFO method can also reduce taxes. Therefore, switching to other methods will be detrimental to enterprises

(3) accounting treatment of asset impairment. The new standard stipulates that for fixed assets, intangible assets and long-term equity investments in subsidiaries, associates and joint ventures, "once the impairment losses of assets are recognized, they shall not be reversed in subsequent accounting periods". This regulation is mainly to prevent enterprises from using the accrual and reversal of impairment reserves to adjust profits, effectively curb the use of impairment reserves as secret reserves to adjust profits, and completely cut off the way of using impairment reserves to manipulate profits

(4) consolidated statements. The theory on which the new consolidated financial statements standards are based has changed from focusing on the parent company theory to focusing on the entity theory. The new accounting standards emphasize that the consolidation scope of the consolidated financial statements should be determined on the basis of control, and joint ventures will no longer be included in the consolidated statements. The long-term equity investment that the investing enterprise has joint control or significant influence on the invested entity shall still be accounted with the equity method, and the investment profit and loss shall be recognized and the book value of the long-term equity investment shall be adjusted according to the share of the net profit and loss of the invested entity that should be enjoyed or shared. Since the joint venture under common control will no longer be included in the scope of the consolidated financial statements in the future, the operating results of the joint venture will be directly reflected in the investment income of the parent company and the consolidated financial statements in the future. The company needs to include all subsidiaries that it can control into the consolidation scope, without considering the equity ratio or importance. Subsidiaries with negative owner's equity should also be included in the scope of consolidation as long as they are continuing operations. This change will have a great impact on the subjects included in the consolidation scope and the consolidated profits

(5) accounting treatment of intangible assets. First, the new standard clearly stipulates that intangible assets do not include goodwill. Secondly, the new standards treat the research and development expenditures of enterprises differently, changing the provisions of the original standards that all the R & D expenditures of intangible assets are included in the administrative expenses, and dividing the R & D project expenditures of enterprises into research stage expenditures and development stage expenditures, which are expensed and capitalized respectively. The expenditures in the research stage of an enterprise's internal research and development projects shall be included in the current profits and losses when incurred. If the expenditures in the development stage of an enterprise's internal research and development projects can meet the provisions of relevant provisions, they shall be capitalized and recognized as intangible assets. Thirdly, the new standard stipulates that when acquiring intangible assets, enterprises should analyze and judge their service life. Intangible assets with uncertain service life should not be amortized and should be tested for impairment every year. The enterprise shall review the intangible assets with uncertain service life in each accounting period. If there is evidence that the service life of the intangible assets is limited, it shall estimate its service life, and systematically and reasonably amortize it within its service life in a way that can reflect the future economic benefits generated by the enterprise's expected consumption of the intangible assets. The amortization method of intangible assets, It should reflect the expected realization mode of the economic benefits related to the intangible assets, which can adopt the average service life method, the workload method, the double declining balance method and the sum of years method, etc. If the expected realization method cannot be reliably determined, the average life method shall be adopted for amortization

(6) fair value measurement. The new accounting standards system introduces fair value measurement and establishes methods and systems to determine fair value. According to the current situation of China's market development, the new standard system mainly adopts fair value in financial instruments, investment real estate, business combinations not under common control, debt restructuring and non monetary transactions. The fair value measurement model may increase the volatility of corporate profits. The use of fair value depends on active trading markets and valuation techniques. For enterprises, how to determine the fair value, especially when there is no market price in an active market for reference, enterprises must know how to apply valuation techniques. However, this is not an easy task. This work requires the relevant departments of the enterprise to assist the financial department to jointly establish and improve, and the financial personnel and managers should have high professional judgment ability

3 ERP related function impact and adjustment

3 1erp accounting system adjustment

(1) accounting subjects and statements adjustment. First, adjust the account. The software usually provides new account templates. Because the mature ERP software has certain flexibility in the setting of accounting subjects, it can flexibly adjust the subjects according to the actual situation of the enterprise based on the new subjects. The implementation of the new accounting standards is gradually promoted from listed companies and other large enterprises. Because ERP is a standardized software, enterprises that do not have the conditions to implement the new accounting standards may be encountered in the implementation process, so the software generally needs to provide old accounting subject templates at the same time for enterprises at different stages, Then we need to relax the technical points and utilization of the experimental machine, and develop an upgrading tool for the smooth transition from the old subject system to the new accounting standard system, so as to ensure that the upgrading of the system will not have a significant impact on the actual business of the enterprise

software providers generally adjust the existing preset report format and account book on the basis of new accounts. For example, "net cash received from disposal of subsidiaries and other business units" and "net cash paid from acquisition of subsidiaries and other business units" are added to the cash flow items of investment activities in the cash flow statement; The item of "loss from changes in fair value" is added to the supplementary information disclosure of the cash flow statement. In the ERP software general ledger system and report management system, according to the requirements of the new accounting standards for the format of cash flow statements, the preset cash flow items and cash flow statement formats are updated to meet the requirements of enterprises for new cash flow items and report formats

at the same time, the enterprise itself also needs to redefine some reports in the system according to the actual needs of financial work. In addition, the accounting items commonly used in ERP system also need to be adjusted; The operation modes of reports, account books, accounting items, etc. need to be adjusted adaptively. For example, for the consolidated accounts in the new accounting standards, such as employee compensation payable and revolving materials, you can not only set subordinate accounts according to the actual situation of the enterprise, but also set accounting items separately to understand the details, so as to better meet the requirements of the new accounting standards

in short, in order to adapt to the implementation of the new accounting standards system, ERP software needs to continuously improve the flexibility and adaptability of the system, provide enterprise users with more convenient adjustment and conversion, and reduce the impact on enterprises

(2) business to financial document flow adjustment. The main idea embodied in ERP is the business process and the collaboration between business and finance. The changes of the new standard accounts require a lot of changes in the process of transforming the corresponding business documents into accounting vouchers. In this work, the ERP system generally provides a certain template for the enterprise to refer to, and the enterprise modifies the template according to its own actual situation, so as to realize the programmatic business and financial connection. The new accounting standards have made great changes to the document system from the existing business to finance. In the ERP system, a large number of corrections need to be made to the previously provided document template. At the same time, enterprises need to make certain adjustments in line with their own conditions during the application and upgrading of new subjects. As a key step in the implementation of the new standards and the adaptability adjustment of ERP system, this process directly determines the correctness of financial vouchers in the system

(3) adjustment of consolidated statements. In the new standard system, the accounting treatment of business combinations has changed, and the basic theoretical basis and methods of consolidated financial statements have changed. This further standardizes the confirmation of the scope of consolidated statements and emphasizes the right of control. As long as there is substantial control over subsidiaries, it is not necessary to consider the proportion of equity, which should be included in the scope of consolidation. Subsidiaries with negative owner's equity, as long as they are continuing operations, should also be included in the scope of consolidation. The adjustment of this change in ERP system is mainly reflected in the adjustment of consolidated statements, such as the adjustment of consolidated statement items and cash flow items. The consolidation of financial statements in the system is mainly achieved by retrieving some report data. By issuing a new order to relevant subsidiaries

Copyright © 2011 JIN SHI