On Erp And Accounting Control Theory, Interactive

The study is based on the reciprocity between theoretical research and practice activities. Reciprocity between theoretical research and practice activities means that while practice activities promote the development of research, the theoretical research can point out the problems and places needed to be improved in practice, and from theoretical view point direct the development of practice activities. With the cycling of these steps, both of the theoretical research and the practice activities will reciprocally move forward.ERP (Enterprise Resource Planning) system represents the present stage of information management system. It has encapsulated the full spectrum of business processes such as selling, marketing, purchasing, warehousing, accounting and human resource planning into tightly integrated enterprise-wide information databases. It is used by many enterprises home and abroad.From the field research done in Digital China Group of Legend Holding, I became interested in accounting system of ERP and its reciprocal relationship with accounting control study. After a summarization of references and a discussion of ERP system development and its present status in China, I discussed the reciprocity between ERP system and basic accounting theory in three chapters. Chapter 4: the accounting system in ERP proves that accounting is a value control system; chapter five: the accounting value control system in ERP is not a real-time one, and from theoretical analysis I consider that it is mainly because information reliability takes precedence over information relevance; chapter 6: with the construction of inform system and credit system allover our society, accounting system can and will become a real-time value control one. The flows of stuff, value and information can take place at the same time while the activity takes place. Accounting information collection and accounting control will be dispersed into the whole value chain and accounting department will decentralize. New economy and ERP system will provide both highly reliable and relevant information to information users. Accounting theory will develop forward reciprocally.