Impact of an Enterprise Resource Planning System (ERPS) on the Accounting Process of a Public Sector Organization in Sri Lanka

Abstract

With the development of information technology, the business environment has become more dynamic, globalized and competitive. Hence, the business processes of organizations have become more complex. To survive in such a complex environment businesses often opt for implementing an integrated solution like Enterprise Resource Planning System (ERPS). The integrative nature of the ERPS has substantially aided in resolving complexities and streamlining the business processes. Since ERPS functions with business processes, it requires changes in the way of doing business activities. Thus, present research studies on the changes of the accounting process with the implementation of ERPS in the Sri Lankan public sector. The change in accounting process covers the change in accounting practices, change in accountant‟s role and benefits and challenges. In the present study, qualitative approach is selected as the research strategy and the study is conducted as a case of a public sector organization. Fifteen informants were selected within the company and semi-structured interviews are used to collect information. The findings of the study suggest that the ERPS does not bring in fundamental changes to the accounting process, but facilitates improvements to the accounting functions and eventually streamline the accounting process. Nevertheless, ERPS relieve the accountants from routine tasks and assign them new roles such as, analysts, consultants and strategic agents. Further, due to common weaknesses such as lack of training at the implementation, lack of knowledge management and rigid governmental procedures applicable to public sector organization reduces some benefits expected at the implementation stage.