Enterprise Resource Planning Systems and Change in Accounting Processes: A Case of a Manufacturing Company

Abstract

With the development of information technology, the business environment has become more dynamic, globalized, and competitive. To survive in such a complex and competitive 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. However, high rates of ERPS implementation failures are recorded due to lack of knowledge on practical consequences of it. Presently, Sri Lankan businesses also opt for ERPS, yet quite a few researches have been conducted on ERPS in Sri Lanka. Thus, this research studies on the changes of the accounting processes with the implementation of ERPS in the Sri Lankan context. The study is conducted as a case of a Sri Lankan manufacturing company. The change in accounting processes covers both the changes in accounting practices and change in accountant’s role. The findings of the study suggest that the ERPS does not bring in fundamental changes to the accounting processes, but facilitates improvements to the accounting functions and eventually streamline the accounting processes. Nevertheless, ERPS relieve the accountants from routine tasks and assign them new roles such as, analysts, consultants and strategic agents.