Kudler_Fine_Foods

Kudler Fine Foods Kudler Fine Foods Our recommendation is to purchase the industry specific software Microsoft Dynamics GP for Kudler Fine Foods. The benefits of industry specific software are lower expenses and quicker implementation. Utilizing industry specific software makes it possible toinexpensively train employees, and, potentially, to easily upgrade in the future. We have outlined the rationale and analysis behind the recommended course of action, as well as the characteristics of the recommended system. Lastly, we will describe how accounting information systems will incorporate the recommended changes and add value to the accounting operations of Kudler Fine Foods. Rationale and analysis behind the recommended course action After evaluating the accounting information system needs of Kudler, we found many reasons to support our recommendation of Microsoft Dynamics GP as the company’s ERP software. When selecting a system for a company the size of Kudler, the options were to select an ERP, Enterprise Resource Planning, or ordering custom software. Choosing a premade ERP like Microsoft Dynamics GP has the benefit of being less expensive than custom-built software, while still having a lot the same functionalities. “Consultants usually find that packaged software can handle about 80 percent ofa client’s processing needs”(Bagranoff 190). Within Dynamics GP there are built in customization features along with the ability to bring in your own software, and with these features we are confident this 20 percent gap can be bridged. The starting price point of Microsoft Dynamics GP is going to be under three thousand dollars, which will be much less expensive than custom built software. Also, in comparison to custom systems, Microsoft Dynamics GP can be set up and implemented much faster, a“custom system is likely to be costly and take longer to develop than management anticipates”(Bagranoff 190). Keeping in mind Kudler’s core information systems needs, Microsoft Dynamics GP offers solutions for payroll, accounts payable, accounts receivable, and inventory processes in their base business essentials package. This ERP system offers the ability to automate a lot of the accounting functions, which can take away some of the work load away from management.  What stood out with this ERP is that they provide the option of adding more advanced features to the current package as Kudler’s mastery of the program grows. This will add value to the system and allow Kudler to advance its capabilities over time. Flexibility is key to the selection of an ERP system because it allows Kudler to grow with the system. This will reduce Kudler’s need to purchase a new system in the near future as the ERP requirements of the company change. With this software there is also the ability to add non Microsoft software, adding to the products’s general value. Lastly, within this package Microsoft offers a 10 year support package over various mediums. For these reasons we feel that this package will be a great fit for Kudler Fine Foods. Characteristics of the system that support the recommended course of action Kudler Fine Foods’ Strategic Plan defines the core business operations and (Apollo Group, 2009). The table below outlines Kudler Fine Foods key core business units and business functions: |Core Business Units |Business Functions | |Store Operations |Store facilities | | |Supply Chain Operations (Shipping and Receiving) | | |Inventory Management | | |Store Employees | | |Construction, Alteration, Repairs | |Financial |Payroll | | |Accounts Receivable | | |Accounts Payable | | |Financials | |Information Systems |Data Sources and Outputs | | |Infrastructure equipment | | |IT Staff | The new accounting system will need to be installed before it can be put into play. Upon installation, further customization will fit Kudler Fine Foods specific needs. This customization will extend throughout the accounting information systems: Account Payable, Account Receivable, Inventory, and Payroll. As shown in Kudler’s business information, Kudler performed most of its accounting operations with archaic hardware and software that no longer met Kudler’s needs. We have selected Microsoft Dynamics GP as Kudler’s new ERP. Microsoft Dynamics GP is a comprehensive ERP solution that goes beyond basic business management and reporting to help Kudler’s people and its management work at peak performance and help the company run effectively (Microsoft1, 2011) For example the new Reporting Ledger Functionality for Fixed Assets Management feature allows the user to set up a reporting ledger whether Base, International Financial Reporting Standards (IFRS), or Local ledgers for a book ID to report Fixed Assets transactions (Microsoft, 2011)”. Microsoft Dynamics GP has some characteristics that will make it possible for Kudler Fine Foods meet its business needs such as: • Account Payable: This software has an ability of automate routine of complex accounts payable tasks with a satisfaction in a real-time history, scheduling the payments to creditors or vendors, control all accounts with easy reconciliation and tracking. • Accounts Receivable: It has a capacity to process automatically invoices, receipts, statement and finance charge with an ability to analyze customers’ activities. An Electronic Funds Transfer for Receivables Management (ERM), Electronic Bank Reconciliation (EBR), and Electronic Funds Transfer for Payables Management (EPM) are accessible through this program also for excellent management. • Inventory: Microsoft Dynamics GP has a functionality and ability for inventory stock level, cost and set prices to stay competitive, speed fulfillment and build loyalty on a customer-by-customer. • Payroll: To bring clarity to the payroll department at Kudler, this functionality allow a setting up of Pay Policy Manager (PPM), Advance Labor Reporting (ALR), Labor Accrual Manager (LAM), and Payroll Hours to General Ledge (PHGL) to lessen the financial and human resources tasks. How the accounting information systems incorporating the recommended changes add value to the accounting operations of Kudler Fine Foods The recommendations given to Kudler Fine Foods, they can add value to their accounting operations with some changes like: implementing specific industry software that can help them to tracks their inventory. In addition, their account receivables and payables will provide a reliable, safe, and helpful way to track raw materials. The changes would put the company resources, expenses, and revenue in one electronic platform accessed by the management of Kudler Fine Foods Company. As a team, we discuss and decided that Kudler Fine Foods should purchase industry specific software. We highly recommended Microsoft Dynamics DP because this software is beneficial for the company for many reason. We discuss the cost and Microsoft Dynamics is a lower cost software, it is a faster implementation, and also is friendly software easy for training. According to Microsoft web page, Microsoft Dynamics GP delivers comprehensive out of the box business management functionality, from financials and human resource management to manufacturing and more. It connects many moving parts of your organization, giving you better visibility into and control over what’s going on in your business. The changes that we recommended to Kudler Fine Foods will provide to sales and purchase department timely and accurate information, to perform their activities more efficiently and effectively. The new software will add value to Kudler because it will be able to organize their information and this will help the company in their decisions making, an increase sharing knowledge within the company, and they will also improve their customer service. In addition, this software will add value to Kudler Fine Foods, because it will help them in achieved their goals. This is possible because they will experience less risk when analyzing accounting data, errors, frauds, and omission in data entry. We have explained the rationale and analysis behind selecting the industry specific software Microsoft Dynamics GP. We described how the new accounting information system incorporated the recommended changes, and added value to the accounting operations. We believe Microsoft Dynamics GP can track inventory stock levels and help set prices competitively. This will be a good opportunity to enhance customer loyalty. We also believe that this software meets Kudler’s needs. [pic] [pic] [pic] [pic] References Apollo Group1. (2009). Kudler fine foods: Finance & accounting: Payroll procedure flow chart. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/business/Kudler2/intranet/fa/payrollProcedures.htm Apollo Group2. (2009). Kudler fine foods: Finance & accounting:purchasing procedures. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/business/Kudler2/intranet/fa/purchasing.htm Apollo Group3. (2009). Kudler fine foods: Accounting system overview. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/business/Kudler2/intranet/fa/accountingSystemOverview.htm Bagranoff, N. A., Simkin, M. G., & Strand Norman, C. (2008). Core concepts of accounting information systems (10th ed.). New York, NY: Wiley. Retrieved on September 18, 2011 from http://www.business-software.com/whitepaper/manufacturing/erp-traceability-functions-going-beyond-the-hype Retrieved on September 18, 2011 from http://www.microsoft.com/download/en/details.aspx'id=24780 University of Phoenix (2011). Kudler Fine Foods. In Virtual Organizations. Retrieved September 15, 2011 from eResource Database. ----------------------- Personnel Records Procedures including payroll deductions Employee punches in/out on biometric system Time record data stored Uploaded to Payroll Prepare payroll and update employee earnings Transfer of funds from General Accounting to dedicated payroll account Pay Vouchers Automated Clearing House wired transfer to employee accounts Automated Clearing House wired transfer to taxation authorities Payroll reports (salaries, Federal and State withholding taxes paid, FICA, etc.) Distribute to employees Kudler Fine Foods Payroll Flow Chart (Apollo Group1, 2009; Bagranoff, Simkin & Strand 2008) Point of Sale Register Data Accounts Receivable Procedures for Credit Sales Purchasing Customer Requests Management Approval Purchase Order Generated Funds Transfer from General Ledger to Account Payable Account Payable Procedures Purchase Order Submitted to Vendor Vendor Codes from Accounts Payable Inventory Reports Vendor delivers merchandise Assess maintaining item in stores Yes No (Apollo Group2, 2009; Bagranoff, Simkin & Strand 2008) Kudler Fine Foods Inventory Flow Chart Purchase Order Process Cash Payments to local vendors Vendor Codes and Master Files Purchasing Processes Processing Direct International Purchases Checks to Vendors Accounts Payable Reports Multiple Bank Accounts Wire Transfers to Vendors Electronic fund transfer Yes No (Apollo Group3, 2009; Bagranoff, Simkin & Strand 2008) Kudler Fine Foods Accounts Payable Flow Chart Point of Sale Processes Credit from Vendors for unfulfilled orders, etc. Processing Accounts Receivable Reports Credit Transaction Yes No Prepare Cash Deposits Deposit into Accounts Bank Reconciliation Processes Electronic Payments Clearing House Kudler Fine Foods Accounts Receivable Flow Chart (Apollo Group4, 2009; Bagranoff, Simkin & Strand 2008)