The Impact of Enterprise Resource Planning Systems on Management Accounting in Private Companies in Sri Lanka

8 Pages Posted: 18 Jan 2011 Last revised: 6 Nov 2012

See all articles by Niranga Silva

Niranga Silva

Sri Lanka Institute of Information Technology

Buddhi Manjula de Silva

affiliation not provided to SSRN

Kennedy D. Gunawardana

University of Sri Jayawardenepura

Date Written: January 17, 2011

Abstract

Today there is a rapidly changing business world. Therefore most of the growing organizations are moving towards Enterprise Resource Planning (ERP) systems in order to integrate their cross functional business units. This is crucial for those organizations, to be stable and competitive in the industry.

The objective of the research is to decipher the impact of Enterprise Resource Planning in Management accounting activities. A set of hypothesis is developed to evaluate how the training on ERP and vendor support has impacted on the usage of ERP system and decision making in five Management Accounting functions identified as Capital Budgeting, Budgeting, Forecasting, Activity based Costing, and Operating Statement and Reporting by means of a questionnaire. The results shows that ERP system has improved the quality of management accounting process, and the training as well as vendor support has an impact on the usage of ERP system but there is low impact on decision making process. From the results it is possible to conclude that ERP system has an impact on management accounting. As an operational system, the possibility to exploit the potential of ERP system can be achieved by having proper training as well as vendor support.

Keywords: Enterprise Resource Planning System, Management Accounting, Capital Budgeting, Budgeting, Forecasting, Operating Statement and Reporting, User Training, Vendor Support

Suggested Citation

Silva, Niranga and de Silva, Buddhi Manjula and Gunawardana, Kennedy D., The Impact of Enterprise Resource Planning Systems on Management Accounting in Private Companies in Sri Lanka (January 17, 2011). Available at SSRN: https://ssrn.com/abstract=1742377 or http://dx.doi.org/10.2139/ssrn.1742377

Niranga Silva (Contact Author)

Sri Lanka Institute of Information Technology ( email )

Malabe, Western CO 10115
Sri Lanka

Buddhi Manjula De Silva

affiliation not provided to SSRN ( email )

Kennedy D. Gunawardana

University of Sri Jayawardenepura ( email )

Gangodawila, Nugegoda
Sri Lanka
00194 777327476 (Phone)

HOME PAGE: http://www.sjp.ac.lk

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