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Application Service Application Service Providers for Accounting Providers for Accounting

The What, Why, and How of Internet Accounting

Carol Yacht & Susan V. Crosson

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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What are Application Service

Providers?• Internet-delivered software:

QuickBooks for the Web; ePeachtree; NetLedger (Oracle Small Business Suite)

• Accessible anytime, anywhere by authorized users

• Always current• Users rent software on a

monthly basis instead of buying and installing software on their hard drive

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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Application Service Providers – company’s Web server

Instead of storing the application and data on a computer that resides in the classroom or on students’ computers, Application Service Providers (ASPs) reside on distant Web servers.

When using Application Service Providers users can work through any Internet connection. This new way to perform accounting tasks has advantages and disadvantages.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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Why use Application Service Providers?

• Accessible from any Internet connected computer

• Technology support always available

• Software affordable free trial!

• Installation easy just sign up with your email address and password - no computer lab involvement

• Exposes students to integrated accounting systems that are ready for e-commerce and B2B.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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Drawbacks to Application Service Providers

• High speed connection preferred all processing done on the Internet

• User becomes vulnerable to integrity of Web server power outages, system crashes, financial health, data security.

• Once adopted, expensive to change to comparable computer-based software

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ASP FeaturesFeature List QB for the Web ePeachtree NetLedger

Checking account and credit card tracking X X X

Bank reconciliation X X

Accounts receivable X X X

Accounts payable X X X

E-mail and fax invoices X X

Number of business reports and graphs 40+ 100+ 100+

Anywhere/anytime access X X X

Automates recurring bills X

Multi-user ready X X X

Technical support X X X

Free trial version 30 days 30 days 14 days

Cost per month per user $14.95 $9.99 $99

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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Course Possibilities using Internet-delivered Software

Financial, Principles, or AIS course Free trial period 30 days, ePeachtree & QuickBooks for the Web; 14 days Oracle Small BusinessSuite (NetLedger)

Computer Accounting course QuickBooks or Peachtree CD software and one of the ASPs (QB for the Web; ePeachtree; or NetLedger).

Computer Accounting course three ASPs (QB for the Web, ePeachtree, and NetLedger)

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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Application Service Provider Specifics

Content

QuickBooks for the Web ePeachtree NetLedger

Type of business Service Retail Retail

Form of business Sole Proprietor Sole Proprietor Sole Proprietor

Accrual or cash Accrual Accrual Accrual

Chart of Accts. X X X

Account nos. X X

Transaction detail X X X

Trial balance X X X

Adjusted trial bal. X X X

Post-closing trial bal. X X X

Income Statement X X X

Balance Sheet X X X

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Application Service Provider Specifics (continued)

Content

QuickBooks for the Web ePeachtree NetLedger

Cash flow statement X X

Bank reconciliation X X

Vendors X X X

Customers X X X

Items of service X

Inventory X X

Sales tax X X

Credit terms X X

Returns & allowances X X X

Cash transactions X X X

Credit transactions X X X

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Application Service Provider Specifics (concluded)

Content

QuickBooks for the Web ePeachtree NetLedger

Adjusting entries X X X

Closing entries X X X

Beginning-of-year

Transactions X X X

Customizing reports X X X

Customizing graphs X X

Memorizing reports X

Activity log X

Copying/Exporting to Word & Excel X X X

Context-sensitive Help screens X X X

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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QB for the Web: Vendor Overview• On the QB for the Web menu bar, select “Vendors.”

From the drop-down list, select Vendor Overview.

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QB for the Web: Vendor Transactions for a Service Business

Purchase of Supplies: Enter BillsVendor Payments: Pay Bills

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QB for the Web: Enter Bills

• You use the “Enter Bills” screen to record purchases from vendors.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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QB for the Web: Purchase of Supplies from a Vendor

• On 10/02/01, received Invoice 66JE and shipment from Gator Chemicals for the purchase of dry cleaning supplies that included the purchase of dry cleaning fluid on credit, Net 30, $300.

•  

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QB for the Web: Pay Bills

• On 10/06/01, paid two vendor invoices: Gator Chemicals, Invoice No. 66JE, $300; and Sales Products Supply, Invoice EX32, $245; for a total of $545.

•  

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QB for the Web: Transaction List by Vendor

• To check that vendor payments were made, you can display or print the Transaction List by Vendor report.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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ePeachtree – Example of “Help” screen• Help screens explain the details of creating a new

transaction.

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ePeachtree – Vendor Transactions for a Jewelry Store (merchandising business)

Purchase Register is also the purchase journal.

Vendor payments and returns are reported on the Payment Register.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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ePeachtree – Vendor Transactions

• You use ePeachtree’s Purchase Register to record credit purchases from vendors. ePeachtree’s Purchase Register is the Purchase Journal.

• Purchase Register transaction:

On October 1, 2001, received Invoice 66JE and shipment from Jewelry by Jason for the purchase of 20 rings on credit at $50 each, terms 1%, 10 Net 30, $1,000.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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ePeachtree – Purchase Register• Here is how ePeachtree records the October 1, 2001

purchase of inventory from a vendor.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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ePeachtree – Purchase Journal

• The Purchase Journal on the next slide shows four purchases made from vendors for a total of $3,350. This is the amount owed to vendors as of October 5, 2001.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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ePeachtree’s Purchase Journal

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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ePeachtree – Purchase Register• The Purchase Register shows a list of the jewelry

store’s purchases, returns and total vendor transactions.

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ePeachtree – Vendor Payment

• From ePeachtree’s navigation bar, select Vendors, then payments. Click on the “New” icon.

• On October 6, 2001, paid Jewelry by Jason for Invoice No. 66JE, less the $50 return, and the discount.

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ePeachtree – Payment Register

• ePeachtree’s Payment Register shows vendor payments and returns.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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NetLedger – Transactions screen

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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NetLedger Help screen – How do I add transactions?

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NetLedger – Vendor Transactions for a merchandising business

• You use the Enter Bills link to record vendor purchases.

• Vendor transaction:

On October 2, 2001, your jewelry store received Invoice 66JE and shipment from Jewelry by Justin for the purchase of six rings on credit at $50 each, terms 1% 10 Net 30, $300.

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NetLedger –October 2 transaction

• The “Bill” screen shows the purchase of six rings at $50 each.

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NetLedger: Accounts Payable Register• The accounts payable register shows the four purchases

and one return made by the jewelry store from October 1 through 5, 2001.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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NetLedger: Vendor Payments

• Transaction:On October 6, 2001, your jewelry store paid Jewelry by Justin, Invoice 66JE, for the October 2 purchase, less a discount and the return of October 4, $247.50.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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NetLedger: Bill Payments

• NetLedger’s “Bill Payments” screen shows the October 6 transaction for payment of Invoice 66JE, less return and discount.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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NetLedger’s October 31, 2001 Trial Balance

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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ASPs Financial Statements

• QuickBooks for the Web, ePeachtree, and NetLedger include the full range of financial statements.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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Article about ASPs

“Employing an ASP: Making Your Payroll and Accounting Painless” by Wayne Kawamoto

http://www.applicationplanet.com/money/accounting.html

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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URLs/Publishers for ASPs

QuickBooks for the Web (Intuit) www.quickbooks.com/qb4web

ePeachtree (Peachtree Software) www.peachtree.com/epeachtree

NetLedger (Oracle Corp.)

www.oraclesmallbusiness.com/

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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Comparison charts Compare QuickBooks products

www.quickbooks.com/choosechart.html

Compare Peachtree products

www.peachtree.com/html/product_matrix.cfm

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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Additional ASP Resource• Computer Accounting Essentials newsletter

and more information:http://www.mhhe.com/yachtessentials1e

• Syllabi for ASP course:http://user.gru.net/susancrosson/sept/sept.htm#faculty (scroll down screen to “Syllabi Suggestions”)

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2002

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CD Software & ASP CostsCD Software or ASP Cost

QuickBooks educational site license

50 computers, $599.95;

888-246-8848

Peachtree educational site license

Free – CD software packaged with textbooks

QuickBooks for the Web Free for 30 days; $14.95/mo.

ePeachtree Free for 30 days; $9.99/mo.

Oracle Small Business Suite (NetLedger)

Free for 14 days; $99/mo. for suite