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Accountant or an IT person

The world seems to be moving towards IT and everyone in the company has to be IT savvy. Sometimes the questions asked by the financial controllers is whether the standard ERP applications are driving the accounting strategy of the company.

When a company is a multinational company then the IT strategy is driven by the parent company and local company has little say about the implementation as financial accounts have to be consolidated. Localisation needs are catered, but to limited extent. Or else the local company has to go for third party application or MS Office application like Excel or Access to fulfil the local reporting needs.

When I was explaining how the automatic account determination is performed in SAP for the inventory movements, the question posed by the accountant was -

"Now do we have to know more of IT or Accounting ?!!!"

The answer is every goods movements will have an accounting entry. So the accountant has to determin which inventory accounts (Balance Sheet) is debited/credited for inventory movement with offsetting GL account (P&L). So you have to understand the system and see how it works. Once you understand, configure it and forget it. Then right accounting entries will be posted.

The role of the accountant has changed from doing routine posting to analysing the information. He has the capability to analyse information. A shift from being an accounting clerk to management accountant. I believe, with the implementation of ERP systems, the role of accountant has changed from being a financial accountant to management accountant. The answer is the accountant has to be IT savvy .

Click here - to know about Inventory Accounting in SAP

Almost all the areas in SAP has been automated to post to Financials. The role of the accountant is determine that right GL accounts are configured in the system. As the accountant graps the way system work, his role to perform as a true management accountant enhances.


Santosh Puthran

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PS: As I was writing this blog, I was exploring the possibility of sharing the SAP Inventory Posting document till I found the useful feature in google for document sharing. It is about thinking about possibilities and you find that someone else has already thought about it.

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