Riordan Business Systems Proposal

Topics: Accounts receivable, Accounts payable, Customer service Pages: 8 (2802 words) Published: October 4, 2008

The Riordan Industries corporate office has been performing a research project to consolidate their financial processes and production software packages. Not one of the three offices or corporate use the same system, which makes data collection, verification, and reporting difficult at best. They need to have a uniform business system throughout all the facilities, as well as procedures implemented in order to attain this goal of seamless data collection they are hoping to achieve. The customer will need to upgrade all their hardware in addition to their current software packages.

General Ledger

The customer currently is using several financial packages at each of its three facilities. The San Jose facility, the corporate office, is currently running a financial management software application that was specifically designed for their type of manufacturing company. This was designed by ERP and the current license agreement does not provide the application source code. The Michigan office is currently utilizing a proprietary vendor developed software package. They are utilizing a VMS operating system and the source code is programmed in C. The vendor for their software is no longer in business, which means any upgrades to the system would have to be done by the Michigan office instead of the vendor, which is normally ill advised. The Georgia plant is also using a proprietary vendor developed software package. They also have access to the source code of their current software. Hangzhou, their joint venture plant in China, has currently not identified their software package and procedures, although they seem to have the most up to date hardware in the company. The current financial packages throughout the organization are not seamless. There is currently no interfacing of financial data from their other software packages. The interface of data to the corporate office is in various file formats. This takes time from the corporate office as they have to use different programs to pull the data that they want. Corporate currently receives data files (text files), and hard copy files that need to be manually entered into the system. This proves to be a very tedious, labor intensive process and leaves the staff too much room for potential errors. By the time they receive the random files from their corresponding offices and either manually enters in the data or converts and merges in the files, too much time has passed and too much money has been lost. Currently, month end close for the general ledger financial systems for the organization takes subsequently up to twenty days after the month end. This is unacceptable and does not maintain compliance with the government mandated financial reporting. The current financial reports that the customer uses are the typical accounting reports. The customer at the very least would need a balance sheet, income statement, budget reports, profit and loss statements and forecasting.

Accounts Payable/Accounts Receivable/Budgeting

The financial package would not only be used for the General Ledger, but would be inclusive of accounts payable, accounts receivable, and a budgeting module. This would make one system to track all areas of the financial part of the business. The budgeting module would enable the customer to enter budgets into the system and compare prior year’s budgets to current year’s budgets and expenses. This would make yearly budgeting easier for each of the department heads and managers, by enabling them to see on screen or on worksheet reports the amount of monies budgeted and monies actually spent in each of their budget line items for previous years and accounting periods. The budgeting system should also have the capability to track the different phases of the budgeting process from the initial phase of budget creation based on prior years budgets to the final phase of budget adoption based on the board approved budgets. The budgeting module would...
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