Question

The finance department is evaluating two accounts receivable transaction processing systems. System A provides for batch processing twice weekly System B provides online real-time processing. Which of the following requirements is most important in determining whether to adopt system A or system B?
a) Need for controls that validate transactions
b) Accuracy of weekly accounts receivable aging report.
c) Need to immediately answer customers' questions regarding account balances.
d) Accuracy of monthly general ledger balance.

Answer 1

Answer:

The correct answer is: c) Need to immediately answer customers' questions regarding account balances.

Explanation:

ERP systems are widely used among small and large industries to make key business operations such as accounting, inventory and production more automated and efficient for productivity and revenue growth. If in your small or medium business you still have an employee making calls to collect bills it may be time to move forward and manage the collections through an ERP software, as it helps reduce response time, waste and makes Critical processes such as purchasing, inventory, supply, customer service and after-sales are transparent.

Automation in the account department through an ERP system helps to notify its customers in advance, manages payments, the generation of invoices, approvals and their documents. Similarly, the automation of accounts receivable helps the efficient management of transactions between customers and companies through cash payments, check payments, etc., while maintaining complete control and assignment of employees and teams to their respective processes.