HAILEY COLLEGE OF COMMERCE

PUNJAB UNIVERSITY, LAHORE

ASSIGNMENT:
A.I.S(ORACLE)
SUBMITED TO:
Prof. SALIAH MUHAMMAD

SUBMITED BY:
WASAM ASAD
BC16-240
SECTION C (MORNING)
8th semester
1)ERP Implementation Phases/ System Development
Life Cycle of ERP (SDLC)

Development Life Cycle consist of following phases:

1. Current Business Process/ Investigation stage Review
In this phase consultant can understand all current business processes
and after understanding this he will able to analysis what the client actually
needs.

2. Solution Design Document/ Proposed Solution

The design phase up to the point of starting development, once all of the
requirements have been gathered, analyzed, verified, and a design has been
produced, we are ready to pass on the programming requirements to the
application programmers.

3. Gap Analysis
User review the Current Business Process documents and Solution
design document and after that, if identify some gap between both documents
the consultant may prepared Gap analysis document with at least two
workaround/ options (i.e. need process re-engineering OR some customization/
modification in application), as a consultant you may try to process re-
engineering instead of customization/ modification in application

4. Development Phase/ Configuration of Development Server

The programmers take the design documents (programming
requirements) and then proceed with the iterative process of coding, testing,
revising, and testing again.

5. User Training
After Configuration of development Server, conduct the training of all user
with current use cases and after a sufficient training we may clone/ copy of
development server and that copy will handover to user for further testing .

6. Testing Phase/ Configuration of Test Server

After the programs have been tested by the programmers, they will be part
of a series of formal user and system tests. These are used to verify usability and
 functionality from a user point of view, as well as to verify the functions of the
application within a larger framework.

7. Conference Room Pilot (CRP) Session

When user satisfied as per specific time period after using the test server
and they enter most of its use cases in test environment, consultant conduct
CRP session with user and Management, the end user will test all test cases and
after that run concern reports and Management review, sometime may we
conduct more than one CRP (i.e. CRP 1 and CRP2).

8. Production Phase/ Go Live Production

The final phase in the development life cycle is to go to production and
become steady state. As a prerequisite to going to production, the development
team needs to provide documentation. This usually consists of user training and
operational procedures. The user training familiarizes the users with the new
application. The operational procedures documentation enables Operations to
take over responsibility for running the application on an ongoing basis. In
production, the changes and enhancements are handled by a group (possibly the
same programming group) that performs the maintenance. At this point in the life
cycle of the application, changes are tightly controlled and must be rigorously
tested before being implemented into production.

9. Post Live Support

After live the production server, client must need support from consultant
because user not fully aware about the new system, some clients may require
support one month, some three month and some may sign support contract for
one year.

2)The Accounting Information System

AIS subsystems process financial transactions and nonfinancial
transactions that directly affect the processing of financial transactions. For
example, changes to customers’ names and addresses are processed by the AIS
to keep the customer file current. Although not technically financial transactions,
these changes provide vital information for processing future sales to the
customer.
Management Information System (MIS)
Management often requires information that goes beyond the capability of
AIS.As organizations grow in size and complexity, specialized functional areas
Emerge, requiring additional information for production planning and control,
sales forecasting, inventory warehouse planning, market research, and so on.
 The management information system (MIS) processes nonfinancial transactions
that are not normally processed by traditional AIS.

Major Sub System of Accounting (AIS)

 The transaction processing system (TPS
 The general ledger/financial reporting system (GL/FRS) System
 The management reporting system (MRS)

Transaction Processing System

The TPS is central to the overall function of the information system by converting
economic events into financial transactions, recording financial transactions in
the accounting records (journals and ledgers), and distributing essential financial
information to operations personnel to support their daily operations.

General Ledger/Financial Reporting Systems

The general ledger system (GLS) and the financial reporting system (FRS) are
Two closely related subsystems.
However, because of their operational interdependency, they are generally
Viewed as a single integrated system—the GL/FRS.

Management Reporting System

The MRS provides the internal financial information needed to manage a
business.
Managers must deal immediately with many day-to-day business problems, as
well as plan and control their operations.

Characteristics of useful information

 Relevant
The capacity of information to make a difference in a decision by helping
users to form predictions about the outcomes of past, present, and future events
or to confirm or correct prior expectations.

 Reliable
The quality of information that assures that information is reasonably free
from error and bias and faithfully represents what it purports to represent.

 Complete
 The inclusion in reported information of everything material that is
necessary for faithful representation of the relevant phenomena.

 Timely
Having information available to a decision maker before it loses its
capacity to influence decisions.

 Understandable
The quality of information that enables users to perceive its significance.

 Verifiable
The ability through consensus among measurers to ensure that
information represents what it purports to represent or that the chosen method of
measurement has been used without error or bias.

 Accessible
Available when needed (see timely) and in a useful format (see
Understandable). The ability through consensus among measurers to ensure that
information represents what it purports to represent or that the chosen method of
measurement has been used without error or bias.

 Accessible
Available when needed (see timely) and in a useful format (see
Understandable).

What Is Information System?

Information Systems. An information system is a type of platform or
collection of platforms that exist to manage a set of information or a technology
product. For instance, the hardware and software used to create, maintain and
access an electronic health record is an information system.

Basic Elements of System

A system has three basic elements”
i.Input
ii.Processing
iii.Output
The other elements include:
i.Control
 ii.Feedback
iii.Boundaries
iv.Environment and interfaces.

Information System Framework

The information system is the set of formal procedures by which data are
collected, processed into information, and distributed to users.
An information system (IS) is typically considered to be a set of interrelated
elements or components that collect (input), manipulate (processes), and
disseminate (output) data and information and provide a feedback mechanism to
meet an objective.

Types of Information System Framework

There are two broad classes of information systems:
 The accounting information system (AIS)
 The management information system (MIS).
The framework to identify the domain of AIS and distinguish it from MIS. More
often, MIS and AIS functions are integrated to achieve operational efficiency. The
information system accepts input, called transactions, which are converted
through various processes into output information that goes to users.
Transactions fall into two classes: financial transactions and nonfinancial
transactions. Before exploring this distinction, let’s first broadly define.

Types of Information System Framework - Continue

Transaction:
“A transaction as an event that affects or is of interest to the
organization and is processed by its information system as a unit of work.”
This definition encompasses both financial and nonfinancial events. Because
financial transactions are of particular importance to the accountant’s
understanding of information systems, we need a precise definition for this class
of transaction.

Financial Transaction:
A financial transaction is an economic event that affects
the assets and equities of the organization, is reflected in its accounts, and is
measured in monetary terms.
Examples: Sales of products to customers, purchases of inventory from vendors,
and cash disbursements and receipts are examples of financial transactions.
Types of Information System Framework - Continue
Nonfinancial transactions:
Nonfinancial transactions are events that do not meet
the narrow definition of a financial transaction. For example, adding a new
supplier of raw materials to the list of valid suppliers is an event that may be
processed by the enterprise’s information system as a transaction. Important as
this information obviously is, it is not a financial transaction, and the firm has no
legal obligation to process it.

Accountancy
Accountancy is the process of communicating financial information about
a business entity to users such as shareholders and managers.

Definition of Accounting:
The art of recording, classifying, and summarizing in a significant manner
and in terms of money, transactions and events which are, in part at least, of
financial character, and interpreting the results there OF.

Internal & External Users of Accounting Information

Accounting information helps users to make better financial decisions.
Users of financial information may be both internal and external to the
organization.

Internal users (Primary Users)

of accounting information include the following:
 Management: for analyzing the organization's performance and position and
taking appropriate measures to improve the company results.
 Employees: for assessing company's profitability and its consequence on their
future remuneration and job security.

Accountancy-Continue
►Owners: for analyzing the viability and profitability of their investment and
determining any future course of action.
External users (Secondary Users) of accounting information include the following:
►Creditors: for determining the credit worthiness of the organization. Terms of
credit are set by creditors according to the assessment of their customers' financial
health. Creditors include suppliers as well as lenders of finance such as banks.
►Tax Authorities: for determining the credibility of the tax returns filed on behalf of
the company.

►Investors: for analyzing the feasibility of investing in the company. Investors want
to make sure they can earn a reasonable return on their investment before they
commit any financial resources to the company.
►Customers: for assessing the financial position of its suppliers which is necessary for
them to maintain a stable source of supply in the long term.
►Regulatory Authorities: for ensuring that the company's disclosure of accounting
information is in accordance with the rules and regulations set in order to protect
the interests of the stakeholders who rely on such information in forming their
decisions.

Type of Accounting Information User

► Accountants as Information System Users
► Accountants as System Designers
► Accountants as System Auditors

Accountants as Information System Users

Accountants must be able to clearly convey their needs to the systems
professionals who design the system. The accountant should actively
participate in systems development projects to ensure appropriate systems
design.

Accountants as System Designers

The accounting function is responsible for the conceptual system, while the
computer function is responsible for the physical system. The conceptual
system determines the nature of the information required, its sources, its
destination, and the accounting rules that must be applied.

Type of Accounting Information

User-Continue
Accountants as System Auditors
►External Auditors
► Attest to fairness of financial statements
► Assurance service: broader in scope than traditional attestation audit
►IT Auditors
► Evaluate IT, often as part of external audit
►Internal Auditors
►In-house IS and IT appraisal services