ERP Compliance System

Overview of ERP Compliance System

        With the increasing degree of enterprise informatization, more and more enterprises use large-scale ERP software (such asSAP, Oracle and JDE) or accounting software developed within the company to automate accounting.

        In order to standardize the work of accounting computerization and the use of accounting software, the financial department has published a series of relevant documents and standards. According to the requirements of the National Standards for Basic Functions of Accounting Software, Standards for Computerized Accounting, Data Interface of Information Technology Accounting Software (GB/T19581-2004) and the local financial organs of provinces and municipalities (e.g. Shanghai's Notice Concerning Problems Concerning Computerized Accounting in Enterprises and Units of Shanghai), the accounting software used by enterprises should be full. Sufficient conditions:

        Software screen display, data and field input, report format, system menu and system help files must be able to use Chinese;

        The accounting subject list must be in Chinese and consistent with the relevant accounting standards of the Mainland of China.

        Printed copies should conform to the standard format of the balance sheet, profit and loss statement, general ledger, ledger, bank account book, cash account book and vouchers stipulated by the local government.

        The accounting software needs to be able to export the data format documents required by the National Standard of Information Technology Accounting Software Data Interface.

        The accounting software must check the export of electronic data and accounting documents through local financial institutions and complete the filing.

        For banks and insurance companies, the accounting software must also conform to the special regulations of the CBRC and the CIRC on subject lists, printed copies and information security.

        How to avoid this risk will be the biggest challenge faced by enterprises. For enterprises with multiple requirements of Computerized System Compliance and Local Statutory Reporting Automation, an ERP Compliance Scheme helps enterprises achieve multiple goals quickly and efficiently. Through this program, management can achieve:

        Local statutory reporting and computerized system compliance

        New Accounting Standards Compliance in China

        Automation of local statistical reports

        Improving the efficiency of the local financial reporting process

        Standardization of Financial Reporting Procedures of Affiliated Enterprises in China

Functions of ERP Compliance System

        The main functions of ERP compliance system are as follows:

        1. Data Interface

        Receive standard detailed financial data derived from existing ERP system, and realize data conversion through various pre-set conversion rules, such as accounting subject mapping table, cost center mapping table, etc.

        Make financial documents and data formats that can be recognized by the local accounting system and import them.

        Verify the integrity of imported data and transformed data, and query data;

        Maintaining various mapping tables can add, modify and delete mapping items as needed.

        2. Voucher Management

        Query the financial documents imported by the interface program;

        In addition to the financial credentials imported by the interface, the local accounting system allows additional credentials to be entered, audited and queried for manual adjustments that may be required in the conversion of old and new standards.

        3. Account book management

        Local financial system will automatically generate all kinds of ledgers and general ledgers according to the imported or imported vouchers, which can be queried and exported through the sub-module.

        Output of electronic data files conforming to the national unified standards of accounting software.

        4. Report Management

        Generating statutory financial statements in accordance with the new accounting standards;

        Through the report development tool, compile personalized management reports to assist enterprises in financial analysis;

        The consolidated report function can be used to consolidate reports for different reporting units.

        Disclosure of information that meets the requirements of the new accounting standards can be customized.

        5. Parametric management

        The module is a centralized management module of system parameters, which can manage user accounts and privileges, output management, security management and so on. This module provides the functions needed to achieve the control objectives of general control of information technology.

Application of ERP Compliance System

        The system is tailored to customer needs and has a wide range of advantages. It can help target enterprises to cope with challenges effectively.

        To meet the requirements of compliance, according to the national standard of "Information Technology Accounting Software Data Interface" (GB/T19581-2004), the requirement of extracting electronic data can be conveniently met by the front-end local accounting/reporting data package. When the national standards change, the system can be upgraded in time; the system includes specialized conversion tool modules, such as adjusting accounting standards, for example, from American accounting standards to Chinese accounting standards, which can be carried out in the local accounting/reporting data package in order to maintain the parallel of the two sets of standards, while meeting the group reporting requirements and local accounting standards requirements; the system is fully in line with the requirements of the group reporting and local accounting standards. The new standards require that accounting subjects be updated and supported in Chinese.

        In order to improve work efficiency, there is no need to carry out additional customized development when implementing group ERP system. It mainly focuses on the internal needs of the group, does not need to establish two sets of accounting accounts and accounts in the ERP system, does not need to consider local compliance reporting requirements, and does not need to culture the group accounting system. There is no need to modify the original ERP system and its related database. Compared with the customization and localization of ERP system, it will have relatively lower cost and shorter implementation time; the frequency of data importation can be set according to user's needs, usually monthly work. The local voucher accounts after data importation, report generation are automated, saving the workload of financial personnel.

        Ensuring the quality of work and automating the conversion process will improve efficiency and eliminate possible errors caused by too many manual operations. The system has built-in integrated security control system to ensure the integrity of data security. Record transaction details one by one for management analysis and reporting.