About This Sample TEC Small Business Software

This sample Small Business Software (SBS) RFI/RFP Template Facilitate your request-for-proposal (RFP) or r
shows you a small portion of the features and functions listed in the process with a Small Business Software (S
full product. Use the full RFP Template containing 2852 features and The TEC Small Business Software (SBS) R
functions to easily create a custom list of your company’s you 2852 software features and functions inc
requirements. Review the features and functions and rate them pertaining to: General Ledger, Accounts P
according to your organization’s needs. Then send the list to vendors Receivable, Payroll, Inventory, Job and P
to have them indicate how well they support your specific Assets, SALES MANAGEMENT, Budgeting
requirements. Technology.
If your company intends to buy a Small Busi
software system or upgrade a current one, TE
Software (SBS) RFI/RFP Template will he
This sample Small Business Software (SBS) RFI/RFP Template Facilitate your request-for-proposal (RFP) or r
shows you a small portion of the features and functions listed in the process with a Small Business Software (S
full product. Use the full RFP Template containing 2852 features and The TEC Small Business Software (SBS) R
functions to easily create a custom list of your company’s you 2852 software features and functions inc
requirements. Review the features and functions and rate them pertaining to: General Ledger, Accounts P
according to your organization’s needs. Then send the list to vendors Receivable, Payroll, Inventory, Job and P
to have them indicate how well they support your specific Assets, SALES MANAGEMENT, Budgeting
requirements. Technology.
If your company intends to buy a Small Busi
software system or upgrade a current one, TE
Software (SBS) RFI/RFP Template will he
the industry-standard features of a Small Bu
software package, and enables you to easily
them to create a master list of the exact featu
business requires. Having all these features o
document is helpful when communicating wit
comparing solutions to identify the system th

USER RESPONSES

Priority Mandatory

Hierarchy Criterion

(0-10) (Y/N)

0 No
1 General Ledger
1.1 Chart of Accounts 0 No
1.1.1 0 No
Chart of Accounts (Set Up)

1.1.1.1 User-defined segment lengths 0 No

1.1.1.2 Delete segments not required 0 No

1.1.1.3 User-defined account ranges 0 No

1.1.1.4 Multiple account levels 0 No

1.1.2 0 No
G/L account code (Set Up)

This criterion contains 6 criteria below it

1.1.3 0 No
Major structures (Set Up)

This criterion contains 5 criteria below it

1.1.4 0 No
Valid Posting Accounts

This criterion contains 2 criteria below it

1.1.5 0 No
Allocations (Processing)

This criterion contains 6 criteria below it

1.1.6 Allocations (Formula Basis) 0 No

This criterion contains 12 criteria below it

1.1.7 0 No
Amortization Tracking

This criterion contains 4 criteria below it

1.1.8 Prepaid Expense Tracking 0 No

This criterion contains 4 criteria below it

1.2 Transaction Processing 0 No

This criterion contains 63 criteria below it

1.3 0 No
Month and Year End Closing
This criterion contains 14 criteria below it

1.4 0 No
Control Reports

This criterion contains 17 criteria below it

1.5 Financial Statements 0 No

This criterion contains 73 criteria below it

0 No
2 Accounts Payable

2.1 Vendor Master File 0 No

2.1.1 0 No
Vendor Master Set Up

2.1.1.1 One-time vendors 0 No

2.1.1.2 Automatically assigns new vendor number 0 No

2.1.1.3 User-defined numbering convention 0 No

2.1.1.4 Consolidate vendor files 0 No

2.1.1.5 Identifies vendor type 0 No

2.1.1.6 Supports foreign addresses 0 No

2.1.1.7 Maintain electronic copies of purchase contracts 0 No

2.1.1.8 Multiple 1099 codes per vendor (US) 0 No

2.1.1.9 Non-print 1099 if below minimum value (US) 0 No

2.1.1.10 Holds PO/invoice if W-9 information missing (US) 0 No

2.1.1.11 Prints W-9 information form or equivalent (US) 0 No

2.1.1.12 Prints user-defined cover letter 0 No

2.1.1.13 Payment to third party 0 No

2.1.1.14 Single default expense account 0 No

2.1.1.15 Multiple default expense accounts 0 No

2.1.1.16 Default percentage distribution 0 No

2.1.1.17 User-defined discount calculations 0 No

2.1.1.18 Primary contact 0 No

2.1.1.19 Comment field 0 No

2.1.1.20 Maintain vendor special purchasing instructions 0 No

2.1.1.21 Display instructions automatically during PO entry 0 No

2.1.1.22 Documents linked to fields and tables 0 No

2.1.1.23 E-signature on contracts 0 No

2.1.1.24 User-defined vendor master fields 0 No

2.1.2 0 No
Vendor ID Number
This criterion contains 3 criteria below it

2.1.3 0 No
Contract Employees

This criterion contains 2 criteria below it

2.1.4 Vendor Master File Options 0 No

This criterion contains 7 criteria below it

2.1.5 0 No
Vendor Contracts

This criterion contains 2 criteria below it

2.1.6 0 No
Vendor View into A/P
Capabilities

This criterion contains 5 criteria below it

2.1.7 0 No
Vendor Change A/P Data
Capabilities

This criterion contains 5 criteria below it

2.1.8 0 No
Quick Purchase Review

This criterion contains 8 criteria below it

2.1.9 User-defined Blanket Payment 0 No

Terms

This criterion contains 5 criteria below it

2.1.10 0 No
User-defined Individual Payment
Terms

This criterion contains 5 criteria below it

2.1.11 Vendor Document Management 0 No

System

This criterion contains 3 criteria below it

2.2 Purchasing Controls 0 No

This criterion contains 164 criteria below it

2.3 0 No
Data Input
This criterion contains 71 criteria below it

2.4 0 No
Payables Analysis

This criterion contains 67 criteria below it

2.5 Check Writing 0 No

This criterion contains 24 criteria below it

2.6 0 No
Control Reports

This criterion contains 7 criteria below it

2.7 0 No
Financial Reports

This criterion contains 87 criteria below it

0 No
3 Accounts Receivable

3.1 0 No
Customer Master File
3.1.1 0 No
Customer Master Set Up

3.1.1.1 Open item customers 0 No

3.1.1.2 Balance forward customers 0 No

3.1.1.3 Automatically assigns new account number 0 No

3.1.1.4 Consolidate customer files and transactions 0 No

3.1.1.5 Order by, ship to, paid by addresses 0 No

3.1.1.6 Sort customer list alphabetically 0 No

3.1.1.7 Foreign addresses 0 No

3.1.1.8 COD customers 0 No

3.1.1.9 Tracks specific COD terms 0 No

3.1.1.10 Maintain electronic copies of purchase contracts 0 No

3.1.1.11 Occasional customers 0 No

3.1.1.12 Multiple ship to addresses 0 No

3.1.1.13 Record receiving hours at each ship to address 0 No

3.1.1.14 Record delivery/handling instructions 0 No

3.1.1.15 FOB terms 0 No

3.1.1.16 Stores UPS zone code 0 No

3.1.1.17 Ship complete only notation 0 No

3.1.1.18 Item substitution notation 0 No

3.1.1.19 Identifies customer type 0 No

3.1.1.20 Default revenue code 0 No

3.1.1.21 Set individual credit limits 0 No

3.1.1.22 Set blanket finance charges 0 No

3.1.1.23 Set individual finance charges 0 No

3.1.1.24 Set individual sales discount 0 No

3.1.1.25 Set blanket payment terms 0 No

3.1.1.26 Set individual payment terms 0 No

3.1.1.27 Tracks customer payment history 0 No

3.1.1.28 Calculates credit rating automatically 0 No

3.1.1.29 Segregate customers by payment history 0 No

3.1.1.30 Primary contact 0 No

3.1.1.31 Primary contact telephone number 0 No

3.1.1.32 Sales account representative 0 No

3.1.1.33 Collections representative 0 No

3.1.1.34 Statement options 0 No

3.1.1.35 Assign statement printing cycle options 0 No

3.1.1.36 Statement includes/excludes closed transactions 0 No

3.1.1.37 Record exemption IDs for non-taxable customers 0 No

3.1.1.38 Comment field 0 No

3.1.1.39 User-defined customer master fields 0 No

3.1.2 0 No
Change Customer ID Number

This criterion contains 3 criteria below it

3.1.3 0 No
Customer Contracts

This criterion contains 2 criteria below it

3.1.4 0 No
Freight Carrier Assignment

This criterion contains 2 criteria below it

3.1.5 Credit Management System 0 No

This criterion contains 6 criteria below it

3.1.6 0 No
Credit Limit/Hold Functionality

This criterion contains 4 criteria below it

3.1.7 Quick Payment Review 0 No

This criterion contains 9 criteria below it

3.1.8 Multiple Vendor Contacts 0 No

This criterion contains 3 criteria below it

3.1.9 0 No
Customer Contact Manager
This criterion contains 8 criteria below it

3.1.10 0 No
Dispute Resolution Application

This criterion contains 6 criteria below it

3.2 Customer Relationship 0 No

Management

This criterion contains 60 criteria below it

3.3 0 No
Invoicing

This criterion contains 73 criteria below it

3.4 0 No
Cash Receipts

This criterion contains 45 criteria below it

3.5 0 No
Debt Collection

This criterion contains 32 criteria below it

3.6 0 No
Control Reports

This criterion contains 8 criteria below it

3.7 Financial Reports 0 No

This criterion contains 50 criteria below it

0 No
4 Payroll

4.1 0 No
Employee Files

4.1.1 Employee Files (General) 0 No

4.1.1.1 Restricts access to sensitive files 0 No

4.1.1.2 Automatic assignment of employee number 0 No

4.1.1.3 Assigns default pay 0 No

4.1.1.4 Assigns default pay cycle 0 No

4.1.1.5 Automatically applies scheduled raises 0 No

4.1.1.6 Automatically applies cost of living adjustments 0 No

4.1.1.7 Implements retroactive pay raise 0 No

4.1.1.8 Automatic deductions 0 No

4.1.1.9 Deduct meal allowances 0 No

4.1.1.10 Credit meal allowances 0 No

4.1.1.11 Record, track, and deduct advances 0 No

4.1.1.12 Calculation of employer contribution 0 No

4.1.1.13 Process short term deductions over specified periods 0 No

4.1.1.14 Tracks deductions as non-mandatory 0 No

4.1.1.15 Tracks compensatory time off accrued 0 No

4.1.1.16 Automatically offsets sick pay received/accrued 0 No

4.1.1.17 Calculates employer FICA for sick leave 0 No

4.1.1.18 Prevents accrual during unpaid leave 0 No

4.1.1.19 Accrues and tracks other paid leave 0 No

4.1.1.20 Tracks workers compensation information 0 No

4.1.1.21 Individual savings calculations 0 No

4.1.1.22 Retirement programs 0 No

4.1.1.23 Calculates employer contribution to retirement funds 0 No

4.1.1.24 Supports additional tax withholding 0 No

4.1.1.25 Direct deposit 0 No

4.1.1.26 User can change tax tables 0 No

4.1.1.27 Insurance submissions 0 No

4.1.1.28 Segregates active and inactive employees 0 No

4.1.1.29 Calculates termination pay automatically 0 No

4.1.1.30 Employee's marital status 0 No

4.1.1.31 Employee's job class 0 No

4.1.1.32 Employee's date of hire 0 No

4.1.1.33 Employee's termination date 0 No

4.1.1.34 User-defined numbering convention 0 No

4.1.1.35 User-defined employee master fields 0 No

4.1.1.36 Employee's citizenship information 0 No

4.1.2 0 No
Pay Periods
This criterion contains 10 criteria below it

4.1.3 0 No
Position Classification Pay Rate
Tables

This criterion contains 7 criteria below it

4.1.4 Default Expense Distribution 0 No

This criterion contains 7 criteria below it

4.1.5 0 No
Deduction Calculations

This criterion contains 3 criteria below it

4.1.6 0 No
Deduction Features

This criterion contains 4 criteria below it

4.1.7 0 No
Deduction Limit Management

This criterion contains 3 criteria below it

4.1.8 0 No
Auto Payment of Employee
Obligation

This criterion contains 3 criteria below it

4.1.9 Sick and Vacation Pay Tracking 0 No

This criterion contains 2 criteria below it

4.1.10 0 No
Vacation Accrual Basis

This criterion contains 5 criteria below it

4.1.11 Sick Leave Accrual Basis 0 No

This criterion contains 5 criteria below it

4.1.12 Time Off Carried Over to a New 0 No

Year

This criterion contains 4 criteria below it

4.1.13 0 No
Unpaid Leave Tracking
This criterion contains 3 criteria below it

4.2 0 No
Human Resource Management

This criterion contains 13 criteria below it

4.3 Data Input and Cost Distribution 0 No

This criterion contains 49 criteria below it

4.4 0 No
Payroll Check Writing

This criterion contains 16 criteria below it

4.5 0 No
Reports

This criterion contains 20 criteria below it

0 No
5 Inventory

5.1 0 No
Inventory Master File
5.1.1 0 No
Inventory Master File (General)

5.1.1.1 User-defined numbering convention 0 No

5.1.1.2 Define item ID by item characteristics 0 No

5.1.1.3 Define procurement code (make/buy) 0 No

5.1.1.4 Group parts using similarities 0 No

5.1.1.5 Change item ID and transactions 0 No

5.1.1.6 Superseded items 0 No

5.1.1.7 Combine original and superseded item histories 0 No

5.1.1.8 Multiline item descriptions 0 No

5.1.1.9 Negative on-hand quantities 0 No

5.1.1.10 Item file supports item picture 0 No

5.1.1.11 Serial numbering 0 No

5.1.1.12 Tracks serial numbers of components 0 No

5.1.1.13 Lot tracking 0 No

5.1.1.14 Identify customer(s) from serial/lot number 0 No

5.1.1.15 Multidimensional items 0 No

5.1.1.16 "Requires inspection" flag 0 No

5.1.1.17 Shipping weight 0 No

5.1.1.18 Shipping dimensions 0 No

5.1.1.19 Shelf life tracking 0 No

5.1.1.20 Picks items based on shelf life 0 No

5.1.1.21 Converts item to dead stock with write off 0 No

5.1.1.22 Cycle count code 0 No

5.1.1.23 ABC code 0 No

5.1.1.24 Movement class 0 No

5.1.1.25 Consignment inventory 0 No

5.1.1.26 Mass change cost revaluation 0 No

5.1.1.27 Alternate vendors 0 No

5.1.1.28 Copy vendor information for new items 0 No

5.1.1.29 Default revenue account 0 No

5.1.1.30 Default cost of goods sold account 0 No

5.1.1.31 Sales tax rate 0 No

5.1.1.32 Excise tax rate 0 No

5.1.1.33 Customer rebate programs 0 No

5.1.1.34 Rebate posted as voucher to A/P automatically 0 No

5.1.1.35 Reorder point adjusted for vendor lead time 0 No

5.1.1.36 Define commission rate 0 No

5.1.1.37 Prevents unauthorized alteration of records 0 No

5.1.1.38 Define commission types for each item 0 No

5.1.1.39 Define commission types for rate groups 0 No

5.1.2 0 No
Item Status

This criterion contains 4 criteria below it

5.1.3 0 No
Bar Code Tracking

This criterion contains 4 criteria below it

5.1.4 0 No
Basis for Cycle Count Code

This criterion contains 2 criteria below it

5.1.5 ABC Class Code Management 0 No

This criterion contains 5 criteria below it

5.1.6 0 No
Customer-Owned Inventory
Management

This criterion contains 9 criteria below it

5.1.7 Inventory Costing Method 0 No

This criterion contains 5 criteria below it

5.1.8 Standard Cost Modification 0 No

This criterion contains 4 criteria below it

5.1.9 0 No
Regular Vendor
This criterion contains 6 criteria below it

5.1.10 0 No
Pricing Conventions

This criterion contains 11 criteria below it

5.1.11 Customer Price Matrix Options 0 No

This criterion contains 6 criteria below it

5.1.12 0 No
Reorder Conventions

This criterion contains 9 criteria below it

5.1.13 0 No
Vendor Lead Time

This criterion contains 9 criteria below it

5.1.14 0 No
Internal Lead Times

This criterion contains 5 criteria below it

5.2 0 No
Inventory Control/Assembly
Systems

This criterion contains 87 criteria below it

5.3 Data Input and Cost Distribution 0 No

This criterion contains 42 criteria below it

5.4 0 No
Receiving Activities

This criterion contains 82 criteria below it

5.5 Shipping and Withdrawal 0 No

Activities

This criterion contains 28 criteria below it

5.6 Inventory Reports 0 No

This criterion contains 79 criteria below it

0 No
6 Job and Project Costing
6.1 0 No
Job Initiation

6.1.1 0 No
Job Setup (General)

6.1.1.1 Automatic job numbering 0 No

6.1.1.2 User-defined numbering convention 0 No

6.1.1.3 Job cost estimating 0 No

6.1.1.4 Convert estimate to budget 0 No

6.1.1.5 Multiple budgets with revisions 0 No

6.1.1.6 Assign default invoice format per client 0 No

6.1.1.7 Automatically calculates additional billing 0 No

6.1.1.8 Future billing rates 0 No

6.1.1.9 Automatically updates billing rates 0 No

6.1.1.10 Master labor and material file 0 No

6.1.1.11 Store estimates 0 No

6.1.1.12 Update template with current costs 0 No

6.1.1.13 Vendor provided standard categories and phases 0 No

6.1.1.14 Segregates and identifies subcontractors 0 No

6.1.1.15 Stores data for completed job as a summary 0 No

6.1.1.16 Stores data for completed job in detail 0 No

6.1.2 0 No
Job Definition File

This criterion contains 5 criteria below it

6.1.3 0 No
Job Resource File

This criterion contains 3 criteria below it

6.1.4 0 No
Job/Project Front Office Support

This criterion contains 3 criteria below it

6.1.5 Default Billing Rates 0 No

This criterion contains 10 criteria below it

6.1.6 0 No
Billing Formats

This criterion contains 9 criteria below it

6.1.7 Bill-to Functions 0 No

This criterion contains 4 criteria below it

6.1.8 Cost Tracking 0 No

This criterion contains 10 criteria below it

6.2 0 No
Data Input and Cost Distribution
This criterion contains 57 criteria below it

6.3 0 No
Job Control

This criterion contains 34 criteria below it

6.4 Cost Analysis and Reports 0 No

This criterion contains 46 criteria below it

6.5 0 No
Job Invoicing

This criterion contains 75 criteria below it

0 No
7 Fixed Assets

7.1 Equipment Files 0 No

7.1.1 0 No
Equipment Files (General)

7.1.1.1 User-defined equipment master file 0 No

7.1.1.2 Asset ID permits grouping by category 0 No

7.1.1.3 Assignment of serial numbers 0 No

7.1.1.4 Identifies original manufacturer 0 No

7.1.1.5 Identifies current location 0 No

7.1.1.6 Identifies current user 0 No

7.1.1.7 Prepares property tax reports 0 No

7.1.1.8 Tracks status of capital projects 0 No

7.1.1.9 Asset groups 0 No

7.1.1.10 Relationships between assets 0 No

7.1.2 0 No
Equipment Leasing

This criterion contains 4 criteria below it

7.1.3 0 No
Default Distribution

This criterion contains 3 criteria below it

7.1.4 Depreciation Methods 0 No

This criterion contains 5 criteria below it

7.2 0 No
Cost Calculation and
Distribution

This criterion contains 24 criteria below it

7.3 Reports 0 No

This criterion contains 6 criteria below it

0 No
8 SALES MANAGEMENT

8.1 0 No
Order Entry (Set Up)

8.1.1 0 No
Order Entry (General)
8.1.1.1 Cash drawer 0 No

8.1.1.2 Cash drawer balancing 0 No

8.1.1.3 Calculates change due 0 No

8.1.1.4 Supports all inventory functions 0 No

8.1.1.5 Supports restocking 0 No

8.1.1.6 User designed data entry screens 0 No

8.1.1.7 Bar code reader 0 No

8.1.1.8 Prints price labels 0 No

8.1.1.9 Prints bar code labels 0 No

8.1.2 0 No
Agent and Commission
Structure

This criterion contains 4 criteria below it

8.1.3 0 No
Commission Splits and
Overrides

This criterion contains 3 criteria below it

8.1.4 Commission Basis 0 No

This criterion contains 13 criteria below it

8.1.5 0 No
Payroll Timekeeping

This criterion contains 4 criteria below it

8.1.6 Warranty Handling System 0 No

This criterion contains 9 criteria below it

8.2 Order Receipt 0 No

This criterion contains 156 criteria below it

8.3 0 No
Order Tracking
This criterion contains 31 criteria below it

8.4 0 No
Shipping

This criterion contains 18 criteria below it

8.5 Invoicing 0 No

This criterion contains 11 criteria below it

8.6 0 No
Reports

This criterion contains 36 criteria below it

0 No
9 Budgeting

9.1 Budgeting (General) 0 No

9.1.1 Comparison versus budget 0 No

9.1.2 Separate internal budgeting module 0 No

9.1.3 Integrates with third-party budgeting system 0 No

9.1.4 Monthly budgets 0 No

9.1.5 Multiple budget revisions 0 No

9.1.6 Maintains budget revision history 0 No

9.1.7 Non-G/L budget groups 0 No

9.1.8 Budget roll up system 0 No

9.1.9 Multiple year budgets 0 No

9.1.10 Budgeting for non-general ledger activities/accounts 0 No

9.1.11 Budgeting for activities or campaigns 0 No

9.1.12 Budgeting for capital projects 0 No

9.2 0 No
Review Process
This criterion contains 4 criteria below it

9.3 0 No
Construction of New Budget

This criterion contains 14 criteria below it

0 No
10 Manufacturing

10.1 0 No
Product Costing

10.1.1 0 No
Cost Components

10.1.1.1 Raw material 0 No

10.1.1.2 Subtotals by component 0 No

10.1.1.3 Labor 0 No

10.1.1.4 Special inspections 0 No

10.1.1.5 Machine time 0 No

10.1.1.6 Outside processing 0 No

10.1.1.7 Packaging 0 No

10.1.1.8 Scrap 0 No

10.1.1.9 Yield 0 No

10.1.1.10 Shrinkage 0 No

10.1.1.11 Overhead/burden 0 No

10.1.1.12 User-defined components 0 No

10.1.2 0 No
Costing Mechanisms

This criterion contains 6 criteria below it

10.1.3 0 No
Cost Buildup Methodology

This criterion contains 3 criteria below it

10.1.4 0 No
Product Costing Reports

This criterion contains 7 criteria below it

10.2 Master Production Scheduling 0 No

(MPS)

This criterion contains 25 criteria below it

10.3 0 No
Material Requirements Planning
(MRP)

This criterion contains 61 criteria below it

10.4 Capacity Requirements Planning 0 No

(CRP)

This criterion contains 42 criteria below it

10.5 Shop Floor Control 0 No

This criterion contains 49 criteria below it

10.6 0 No
Quality Control
This criterion contains 6 criteria below it

0 No
11 Product Technology

11.1 Technical Architecture 0 No

11.1.1 Application Integration 0 No

11.1.1.1 Application programming interfaces (API) 0 No

11.1.1.2 Message-oriented middleware 0 No

11.1.1.3 Open database structures permits user or third party to write Web enabler 0 No

11.1.1.4 Administration tool kit 0 No

11.1.1.5 Customization and tailoring capabilities 0 No

11.1.1.6 J2EE enabled 0 No

11.1.1.7 XML enabled 0 No

11.1.1.8 XMLA (XMLA for analysis) 0 No

11.1.1.9 .NET enabled 0 No

11.1.1.10 OLE DB for OLAP (ODBO) 0 No

11.1.1.11 JDBC 0 No

11.1.2 0 No
Technical Specifics

This criterion contains 23 criteria below it

11.2 Platforms 0 No

This criterion contains 39 criteria below it

11.3 Security 0 No

This criterion contains 57 criteria below it

11.4 0 No
Server Administration
This criterion contains 24 criteria below it

11.5 0 No
Cloud, SaaS and Hosting
Options

This criterion contains 15 criteria below it

l Business Software (SBS) RFI/RFP Template What to do Next ?

request-for-proposal (RFP) or request-for-information (RFI) To purchase the full Small Business Software
Small Business Software (SBS) RFI/RFP Template. (SBS) RFI/RFP Template, please click on the
Business Software (SBS) RFI/RFP Template provides link below, or contact us for more information.
ware features and functions including functionality
General Ledger, Accounts Payable, Accounts
ayroll, Inventory, Job and Project Costing, Fixed
S MANAGEMENT, Budgeting, Manufacturing, Product

y intends to buy a Small Business Software (SBS)

m or upgrade a current one, TEC's Small Business
S) RFI/RFP Template will help. This template includes all
 To purchase the full Small Business Software
(SBS) RFI/RFP Template, please click on the
link below, or contact us for more information.

BUY THE FULL PRODUCT CONTACT US

VENDOR RESPONSES

SUP PSUP PADD MOD 3RD CST FUT NS

(X) (X) (X) (X) (X) (X) (X) (X)

CONTACT US

Description

The Chart of Accounts is the business

managment system. Ii must be set up so that
revenues and costs are captured and segregated
into the best-suited categories in order to
produce useful financial statements.
The most important step in the set up process is
defining the chart of accounts, because it forms
the basis for financial reporting. Care must be
taken to describe not just the business as it
exists today but how it might exist in the future,
and to include
By defining all of
the length possible viewsusers
the segment of will
an
not have to input zeros in some systems and
they will be able to reserve the unused segments
digits for other segments which might be longer.

Users should be able to delete the segments they

don't require in a chart of accounts. Alternately,
the product should not display a segment in an
input screen if it has not been defined.

Users can specify what account ranges will apply

to what categories such as assets, liabilities, etc.

Each level represents a layer of detail. The

number of levels available to the user will
determine to a large extent the degree of detail
reported.

There are accounts other than just standard

posting accounts.

Rather than attaching a reporting unit such as a

department to the Chart of Accounts itself, some
users might want to define the reporting units in
an entirely different function.
Most larger organizations contain any number of
units whose function is the support of other
groups. This question is designed to identify the
relative level of sophistication of a product when
it comes to allocating costs to other reporting
units.

One of the most effective ways of allocating costs

is the use of what can become fairly complex
formulas to measure activity or some other
factors or groups of factors by which costs can be
allocated rationally. This question is designed to
identify the complexity of the formulas each

All products offer depreciation tracking

applications or functions. This question asks
whether the system supports a similar function
for identifying each item that is being amortized,
the period over which it is being amortized, and
then calculates the appropriate expense each

All products offer depreciation tracking

applications or functions. This question asks
whether the system supports a similar function
for identifying each prepaid expense item, the
period over which it is being expensed, and then
calculates the appropriate expense each period.

Journal entries control how revenues and costs

are allocated across the organization. This
section describes the journal entry process.
The reports listed in this section have been
designed to make sure information is input
correctly.

The vendor master file must be set up first

because that drives the rest of the functions in
accounts payable.

The key to efficient and accurate data processing

lies in how systems are set up. This applies to all
master files.
It is possible to automatically merge two vendor
files into a single entity. The system must merge
these files automatically for both current as well
as transaction history files.

The system can accommodate overseas

addresses in a natural way.

The system has the ability to track the total

payments during the year, and automatically not
print a 1099 form if the payments are below this
minimum.

There is a mechanism built into the system

whereby users are either prevented from placing
orders with a vendor that has not furnished the
required 1099 information, or users are warned
that such information is missing.
The system has the ability to print these forms
automatically, including the cover letter. This
function could be a prompt when a new vendor is
defined or a special function somewhere in
accounts payable.
The system has the ability to print these forms
automatically, including the cover letter. This
function could be a prompt when a new vendor is
defined or a special function somewhere in
accounts payable.

Users have the ability to establish a a normal

expense account coding as a default in the
vendor file.
The system can display multiple default expense
accounts, rather than a single account.

The system allows users to define their own

discount structure.

The system should display instructions

automatically or at a minimum post a flashing
sign that reminds the user that there are special
instructions.

The system can store not just the document text

but an electronic signature that validates the
document.

The system can identify a person as being a

contract employee, and of greater importance
automatically withhold taxes.
The system can identify a person as being a
contract employee, and of greater importance
automatically withhold taxes.

The system supports these three different

purchasing schemes.

This question asks what vendors can see, but not

change.

This question asks what vendors can change.

The system allows users to define criteria they
want to establish.

Users should have the ability to specify the terms

in each vendor file so that discounts can be taken
when appropriate and net payments are not
made until the last due date agreed.

This section describes both the purchasing

process as well as control systems that can be
utilized.

Once a purchase order has been sent and goods

received, the obligation for that purchase needs
to be recognized. This section reviews the
various steps required to actually get information
into accounts payable.
Once an invoice has been input, it needs to be
approved and scheduled for payment. This
section discusses those steps.

Once an invoice has been processed and

approved, it needs to be paid. This section
reviews various check-writing steps.

The reports listed in this section (as well as sorts

of the same report) give users the ability to
check information to make sure it has been input
correctly.

Once data has been input into accounts payable,

users will probably need to review slices of that
data to determine if costs are in line, where costs
are being incurred, and how those costs compare
against other benchmarks.

This section reviews the process whereby

customers can be set up and all of the controls
that relate to that customer defined.
The key to efficient and accurate data processing
lies in how systems are set up. This applies to all
master files.

The system has the ability to automatically

assign the next account number.

The system has the ability to consolidate one or

more customers into a single set of files.

The system can support what could be called a

tree-like structure for keeping track of customers.

The system allows users to sort master files

alphabetically.

The system can accommodate overseas

addresses in a natural way.

The system is able to record the specific terms,

display them in order entry, and transfer them to
the shipping department automatically.
Users are able to establish one account for billing
purposes while designating several addresses to
which goods can be shipped.

The user is able to record this information and

then print it on bills of lading or other shipping
documents automatically.

The user is able to record this information and

then have it flow through into order entry and
shipping automatically.

Users have the ability to record the fact that the

customer is responsible for freight, and that
information should flow through into order entry
and shipping.

Users are able to note this in the customer's file

and have that information flow through into order
entry and shipping automatically.

Users are able to record the fact that a customer

does not accept substitutions and have this
information flow through into order entry and
shipping.
Some contracts stipulate that all sales above a
certain specified value will generate a certain
percentage price reduction. If this is the case, the
system should have the ability to calculate the
discount automatically.

The system has the ability to note the contract

terms in the customer file and override the
blanket terms.

The system has the ability to calculate a

customer's credit rating based upon their
payment history. This rating system would have
to be user-defined.
The system allows users to define various
statement printing options, and then assign each
customer to one of these options.

Users have the ability to instruct the system

whether to print only outstanding transactions, or
all transactions for the most recent statement
cycle on a customer by customer basis.

The system allows users to change a customer ID

number; there is a function whereby many
numbers can be changed automatically; and
most important of all the ID number is changed in
all current and history files.

Many customers have preferred freight carriers.

If they do, users should be able to identify the
freight carrier in the customer file, and have that
information flow through order entry and into
shipping.
Many customers have preferred freight carriers.
If they do, users should be able to identify the
freight carrier in the customer file, and have that
information flow through order entry and into
shipping.

The system supports advanced features for

processing a customer's credit application.

While most systems support a field to record a

primary contact, larger organizations with
multiple reporting levels might require that users
be able to record the names of several people at
each location.

Users should be able to maintain a file containing

all of the history information with each customer
as well as manage that information just as they
would in a contact manager.
Customer relationship management (CRM) and
contact management are the keys to managing
the relationship with customers.

Work can be performed, but funds will not be

received unless invoices are sent quickly and
accurately. This section covers the invoicing
process.

Customer payments must be received in a timely

fashion, recorded properly, and deposited into
the bank as quickly as possible. This section
deals with each of those processes.

This section lists some of the procedures

companies can take to make sure their
customers pay them in a timely fashion.
The reports listed in this section (as well as sorts
of the same report) give users the ability to
check information to make sure it has been input
correctly.

Once data has been input into accounts

receivable, users will probably need to review
slices of that data to determine if revenues are in
line, where revenue is being generated, and how
that revenue compare against other benchmarks.

The payroll application will not operate efficiently

unless everything has been defined or set up.
This series of questions helps users understand
some of the more common set up functions.

This series of questions helps users understand

how a payroll system can be set up and utilized.

Most software packages offer users multiple

levels of security through the use of
passwordsThis question asks, not whether the
whole module is password protected, but
whether the employee files themselves are
password protected.
The assignment of a new employee number
should be automatic. This will increase efficiency.

The processing of payroll will be made more

efficient if the system has the ability to take the
normal pay rate and apply it to the processing
program.

The processing will be more efficient if the

system has the ability to process only those
people who will be paid. All others will be
excluded automatically.
The system should notify users that it has applied
the rate increase.

If an employee's benefits package includes

automatic cost of living adjustments, the system
should be able to note that fact and then
calculate and apply the new pay rate
automatically once the adjustment factor has
been specified. should have received a pay raise,
If an employee
but did not, the system should calculate the
difference and then pay the differential to the
employee the first time the new pay rate is
processed.
Virtually all payroll systems will permit users to
make a range of deductions for each employee.
The problem with manual systems is that the
calculation, tracking, and payment of each
deduction must be manual. The conversion to an
automated
Some companiesaccounting system
provide cash should eliminate
free meals, but
treat this as an employee paid benefit. The cost
of the meal must be deducted each week as a
result.

The other method of accounting for meals (other

than treating it as a company paid benefit) is to
treat the cost as income to the employee. If this
is the case the system should have the ability to
handle this transaction.
Employees will receive advances from time to
time, and these advances will have to be repaid
eventually. The rate of repayment might be in
one lump sum or over a specified length of time.
The software should support these deductions.
Some companies might have other agreements
with the union(s) requiring contributions by the
company itself. These contributions normally are
based upon a percentage of payroll or a flat rate
per union employee. Efficient systems will
perform
One of the these calculations
most time and
consuming procedures produce
with
which many companies must cope is short term
deductions. The efficiency of the whole payroll
process can be increased greatly if the software
has the ability to make the deductions, collect
the required is
If a deduction information,
mandatory, prepare the
it must be checks,
taken, but
if it can be classified as non-mandatory, the
system will only take the deduction if there is a
certain amount left after all mandatory
deductions have been taken.
Although exempt employees might not be paid
overtime, some companies provide these
employees paid leave in lieu of overtime. If they
do, the system should be able to track this
accrued time off separate from normal accrued
vacation.
Even though the insurance company pays the
employee rather than the employer, the
employer must record the leave in their files so
that the insurance company knows whether the
employee qualifies or not.
Although an insurance company may have paid
an employee's sick leave, the employer is still
liable for FICA. The system should be able to
calculate this FICA liability automatically once the
sick leave pay has been recorded.
If an employee is on unpaid leave, they should
accrue no vacation and sick leave, and the
system should delete these accruals
automatically.

Some companies give their employees paid leave

other than just vacation and sick leave. Rather
than lumping this in with either vacation or sick
leave, these paid absences are tracked
separately.
The law states that workers compensation
information must be segregated.The system
must at least track the position of an employee
for determining insurance rates, but there is
other information that could be tracked as well.
This question asks whether the system has the
ability to maintain a savings record for each
employee. This figure is not the total deducted
for the year to date. It is the balance in the
individual's account at any point in time.
This question asks whether the payroll module
supports the calculations necessary to meet the
requirements of each program.

While many systems will support the tracking of

contributions to retirement programs such as
401K plans, this question asks whether the
system has the ability to calculate the employer
portion of the fund obligations.
Many employees use withholding taxes as a form
of enforced savings. Some employees might wish
to have additional taxes over and above normal
withheld. The payroll system should have this
capability.
Some companies offer direct deposit whereby
employees paychecks are deposited for them in
their bank. If this is the case, the software must
be capable of producing an automatic report
listing the deposits to be made in each bank, the
name of each does
This question employee, their account
not presume number,
that employers
are going to change the tax tables illegally. As
tax rates or deduction limits change, the tax
tables used by the system must be changed. This
question asks whether the tables can be
accessed by the user and appropriate changes
Insurance forms can be complicated and time
consuming. Considering the fact that all of the
basic information to make the submission is
present in the employee master file, the system
should have the ability to fill out the required
form with little
This coding assistance
permits from the
companies to user.
keep track of
their employees more closely, and perhaps more
importantly permits the system to automatically
exclude from a pay run those employees
permanently or temporarily inactive.
If an employee leaves a company, the system
should be able to look at all earning, including
any vacation and other paid time off for which
the employee is eligible, and net that against all
deductions for which the employee is liable to
calculate a final pay check.

As long as the numbering convention is not too

complicated, it might make some sense for the
software to replicate this convention.

Although there is a certain body of information

common to all employee files, many users may
wish to store additional information. All of the
fields of information (with the exception of those
required by the processing programs) should be
user
Givenspecified and theon
the emphasis software shouldtracking,
immigration give users
a
payroll system should track the citizenship or
immigration status of each employee as well as
work permit dates and other information required
by law.
This question lists most of the more common
frequencies by which employees can be paid.
Rather than having to assign a specific pay rate
for each employee, larger organizations base an
employees salary or hourly rate upon a position
classification. If that is the case, the system
should give users the ability to define these
classifications in a separate table, and then

The examination of the profitability of various

revenue sources can be aided if the system has
the ability to assign an individual's pay to a
number of cost centers.

There are two methods of calculating a

deduction. The most prevalent is a flat amount
per week. Some employees might wish to
establish a savings account whose deduction is
based upon a percentage of gross pay. If this is
the case, the system should have the ability to

This questions double checks to make sure the

system will support involuntary deductions,
particularly garnishments. Further, it asks
whether the system can calculate and apply the
last deduction amount automatically.

It is entirely possible for an employee to earn less

than the deductions that are scheduled for a
specific pay period. Since some of these
deductions are mandatory (i.e. taxes), the
system should assist users pay an employee a
minimum wage while trying to be as fair to those
The system should be able to pay an employee's
obligations in the most efficient manner possible.

Tha payroll system should calculate vacation and

sick leave, pay it when requested, and not pay it
when it had not been earned.

Depending upon the nature of the terms and

conditions of employment, vacation could be
accrued based upon hours worked, months
worked, or years worked.

Depending upon the nature of the terms and

conditions of employment, sick leave could be
accrued based upon hours worked, months
worked, or years worked.

If a company allows employees to carry over

unused vacation, sick leave or compensatory
time off, the system should be able to do exactly
the same thing.

If an employee is absent, that time should be

tracked. The time off might be authorized or
unauthorized. In addition, the employer might
want to track unpaid leave according to certain
user-defined categories for statistical or
disciplinary purposes.
HR applications track very detailed information
for each employee. If users need to track
educational qualifications, training, and other
activities for employees, they probably require
some form of HR application.

Payroll information drives not just the production

of payroll checks but also the distribution of
those costs to various departments and
activities.

Once data has been input into the payroll

system, checks can be printed.

The inventory application will not operate

efficiently unless everything has been defined or
set up. This series of questions helps users
understand some of the more common set up
functions.
This series of questions helps users understand
how an inventory system can be set up and
utilized.

Many companies carry several thousand items in

inventory. While the alphabetical listing of these
items might assist in the location of a single item
number, further subdivisions are usually
requiredThe only method of accomplishing this is
the
Manyavailability
commoditiesof exhibit
a numbering convention
characteristics which
lend themselves to a description based upon
their characteristics. If a user stocks such
commodities, the item ID should describe the
item itself, and the system should have built into
it
Thea function which
acquisition allows the usermaterial
of replenishment to identify
is the
key to inventory management. This question
asks whether the item master file helps users
track whether an item is purchased from an
outside supplier or made from scratch.
This question does not ask if a part can be
assigned to a single product group, but according
to several characteristics or similarities.

If a user wants to change an item's ID number,

the system should support that change, but also
change the item ID number automatically in all
current and history files.

A superseded item is one which has replaced an

existing item. If a user orders the old part
number, the system should immediately jump to
the new item, but prompt the user that this item
has been superseded.
If an item has been superseded, and a user is
examining the order or usage history of that
item, the system should combine the history files
together so that a single and complete picture
can be painted.
Users should have the ability to define as many
lines as might be appropriate to describe as item.

The system should allow quantities on-hand to be

negative.

Although it may not be absolutely required, some

users might wish to display a picture of an item
as it is being ordered. This would be particularly
useful as items are being sold over the Internet.
If a company wants to identify each item with a
serial number, or it thinks that it might at some
point in the near future, its software should have
the capacity to assign and track serial numbers.

In the case of failure of one or more components,

users will need its serial number , not the
finished item for warranty purposes.

Lot tracking is similar to serial number tracking

with one significant difference. All items in a lot
carry the same ID number.

The system should be able to display the names

of each customer to whom the defective part or
batch has been shipped.

A multidimensional item is a single parent item

with different characteristics such as size and
color. Rather than assigning a unique item ID to
each item, users can define the parent, the fact
that it is multi-dimensional and the
characteristics of the various dimensions.
Some material may require inspection as it is
being received. In order for receiving personnel
to know this, the item master file must be
flagged so that all receiving records will display
this flag.
In most instances the weight of an item
determines the freight cost. In this case the
system should store the weight of the item and
then calculate the total weight of each group if
items being shipped as well as the total weight of
the order. case the density of an item is the
In some
determining factor for shipping costs, not the
weight. If that is the case, the system should
store the dimensions of the item and calculate
the total density of the shipment.
If items are perishable, the system should track
the date by which the item should be used, and
prompt users when this date has been exceeded
so the item can be disposed of.

If an item has a limited shelf life, and this could

apply to a lot as well, the system should prompt
user to use the oldest lot number or other
marking number first.

If an item can no longer be sold because it is too

old or has been superseded by a more current
model of the same type of merchandise, but the
user does not yet wish to physically dispose of
the item, the most practical way of recognizing
this fact is to change the item status to what
This question asks if the system can assign a
cycle count code to an item that will then prompt
the user as to which items should be counted in
the next cycle.

ABC codes are codes assigned by the system to

segregate items according to their dollar volume.
Many companies use these codes to identify and
examine slow moving items so that the slowest
moving items can be discontinued or quantities
on-hand
Movementreduced.
classes are similar to ABC codes, but
here the classification is based upon quantity
volumes, not dollar volumes.

Consignments are a special inventory category.

Companies such as this must have a specific
routine for logging these sales and determining
their liability to the vendor.

This question asks if it is possible to revalue all

items containing a certain element. In most
cases this would be used to revalue commodities
such as metals where the cost fluctuates over
time, sometimes quite dramatically.
The inclusion of a backup vendor(s) will enable a
company to know to whom they should turn
should the normal vendor not be able to provide
the material requested.

The process of establishing a new inventory item

can be made more efficient if users have the
ability to copy all of the information concerning a
vendor from a previously established vendor
master file.
When an item code is specified on the invoice,
the system will pull all of the details required,
including the revenue account to which this item
is normally associated. The user can override this
code if required.
If an item is normally associated with one
revenue code and one cost of goods sold code,
the invoicing process can be made more efficient
if the system can assign this code subject to user
override.
Some localities levy a sales tax on certain items
and another rate on others. If this is the case,
accuracy and efficiency will be increased if the
system has the ability to store the tax rate for
that item and assign it as a part of the invoicing
routine.
Some commodities are taxed twice. The system
should have the ability to record this class of tax
for each item affected.
The system has to have the ability to track the
period in which the rebate will be tracked, track
the value of all shipments during that period, and
then automatically calculate the rebate. The
rebate could be passed through to accounts
payable
If rebatesas are
a voucher
given transaction,
to customers or based
to accounts
upon
monthly purchase quantities or dollar totals, the
system should have the ability to calculate the
amount of the rebate and then post that rebate
liability to accounts payable as an unposted
voucher.
If an organization is to control its inventory
levels, it has to maintain as little stock as
practical. The point at which an automatic
purchase trigger is generated cannot be a fixed
point. It has to include both the forecasted
demand during the
The efficiency of next
someseveral weeks would
systems or months
be
improved if users had the ability to specify a
commission rate for each item.

The innate weakness of automated inventory

management systems must be strengthened by
the addition of passwords and the establishment
of other procedures to protect the system. The
degree of protection must be determined by the
user.
Given the fact that margins will vary from item to
item depending upon market conditions, users
should have the ability to assign commission
rates to individual items or groups of items
depending upon any factor that might appear to
achieve
Given the the sales
fact thatgoals of the
margins organization.
will vary from item to
item depending upon market conditions, users
should have the ability to assign commission
rates to individual items or groups of items
depending upon any factor that might appear to
achieve
The item thestatus
sales goals
code of thethe
tells organization.
system how to
group items, and in the case of non-active items,
tells the system not to allow any activity.

This question tries to determine the functions

supported by bar codes. As items are received,
the receiving clerk should be able to select the
PO to record the receipt, and then immediately
have the system print bar code labels to be
affixed to each item as it is received. In addition,
If items are to be counted on a cyclical basis,
there has to be some "rule" that defines when
the item will be counted. In some cases the ABC
code as calculated by the system will drive the
assignment of the cycle count code, or it will be
based upon some user-defined criteria.

This question tries to identify some of the ABC

codes the system tracks and most importantly if
the system has the ability to update this
information automatically.

This question lists several of the services (i.e.,

stocking, storage, handling, etc.) that may be
performed as well as billing options. Hopefully,
the system will be able to meet all of these
requirements.

There are several methods of determining what

cost to assign to an item once it is sold. The
choice of the costing method must be left to the
user, and as such inventory modules should give
users several choices. Many of these conventions
are listed in this question.

This question tries to identify the basis upon

which the standard costs will be modified as well
as whether groups or all items can be changed in
a single process.

Listing of the regular vendors (as opposite to

one-time vendors) for an item omproves a
company's ability to place orders quickly and
review recent statistics concerning the cost of
that item.
This question asks whether the system has the
ability to assign only one or multiple prices to an
item and what the price conventions are.

Market forces demand that users be able to

create special pricing matrices for specific
customers or customer groups. In addition,
specific customers might be given special pricing
either across the board, for specific items or for
specific item groups.

This question asks whether the reordering must

be handled manually or with the assistance of
the system (i.e., the system will flag those items
to be ordered and suggest the quantities to be
ordered). This question also identifies the various
reorder methodologies used by the system.

This question lists some of the factors that must

be taken into consideration as well as the
internal mechanics by which the necessary
calculations are performed.

The time it takes to complete the entire

acquisition cycle must be taken into
consideration when reorder points are
determined.
There are any number of activities that control
how goods are received, stored, assembled, and
ultimately shipped. This series of questions helps
users understand some of these potential
functions that may be of interest.

Inventory information drives not just the shipping

and receiving process but also the distribution of
those costs to various departments and
activities.

Receiving Activities: While many accounting

systems support the notiation of a receipt of
goods, that is cetainly not the way it happens in
real life. This series of questions highlights the
receiving process and all of its many individual
activities.

Shipping and Withdrawal Activities: Once an

order has been received, the objective of the
exercise is to ship the goods to the customer as
quickly and efficiently as possible. In some
instances the shipping is internal only with the
goods being sent to a production line. This series

Once data has been input into Inventory, users

will probably need to review slices of that data to
determine if costs are in line, where costs are
being incurred, and how those costs compare
against other benchmarks.
The process of setting up a job is similar to
setting up any other master file. First you have to
define system defaults. Then you define how the
system is going to work. Finally you define the
jobs themselves.
This section lists setup type functions and
features that do not fit into any one specific
category.

Most numbering conventions are designed for

one purpose only; to separate one item from all
others and to find that item quickly. Companies
assign numbers to each job for this purpose,
although smaller companies might never refer to
the
Thosejob companies
by number, choosing
electing totocall the job
assign by a
special
numbers usually do so for sorting purposes. In
this case the numbering convention could be
specified when the system is installed so that the
screen will prompt the user to identify the
variables
Estimateswhich form
usually the job
serves number.
two functions; bidding
and budgeting. Many companies must supply
information to potential customers prior to the
awarding of a particular job. This information
could be rough estimates or it could be a formal
bid. The level
Estimates, of detail
once required
accepted, could
should formvary
thefrom a
basis
for budgetary comparison as a project proceeds
through its various phases. This may be one of
the most important aspects of Job Costing.
Budgets serve as the bench mark for cost and
profitability.
As larger jobs Since
and the budget
projects was established
proceed over time,
changes will be required. This question asks if
the system has the ability to support multiple
budgets, change those budgets, and review both
the current and any past budget.
Although most printed invoices present sufficient
information for customers to approve them and
process them for payment, some customers may
require specific information presented in a
specific format. If this is the case, the accounting
system will haveservice
If an engagement, to meet the
or task customer's
is based upon
a fixed fee, but additional services are provided,
this question asks if the system can identify
these additional services and bill them
automatically.
Supports Future Billing Rates: If the billing rates
are due to be raised by a certain date (say the
end of the year), these rates should become
effective automatically. Here the user would
specify what the rates will be and the effective
date.
As wasThe system
indicated in would store question,
the previous this information
if rates
will change on a specific date, the user should be
able to specify those rates in advance and the
system would automatically place them into
effect on the date set. The key here is that the
system itself takes care of the update process
One of the most time consuming and difficult
tasks in determining what a job should cost is
determining what each item will cost. The cost of
each labor category and each individual piece of
material must be determined. This can take quite
some
Some time. This to
jobs tend whole process can
be repetitive. be is
If this made
the
case, companies might wish to store and recall a
particular estimate for use on another job. This is
not to say that the jobs have to be identical. The
fact that they are essentially the same gives
users
Update the Template
ability to turn out a Current
With completedCosts:
estimateA
estimating template saves time, but a template
containing out of date information is no help at
all. If templates are going to be used efficiently,
users must have the ability to input the current
cost for labor and
This question material.
is related to the one concerning the
Chart of Accounts. It might take quite some time
for users to specify all of the cost categories and
phases required. Although there are many
different combinations of cost categories and
phases
Segregates spread
and outIdentifies
over a number of industries,
Subcontractors: As
stated earlier, one of the primary uses of
estimates is the comparison of actual costs
versus estimates. If users are going to paint a
detailed picture of a project, they must have the
ability to examine from
The information each cost componentjob
a completed in detail.
might
serve several useful purposes. Rather than using
past estimates, some companies might decide to
use actual jobs for estimating and budgeting
purposes. Should a discrepancy or dispute arise,
the
The information
information can from bea recalled
completed quickly. The
job might
serve several useful purposes. Rather than using
past estimates, some companies might decide to
use actual jobs for estimating and budgeting
purposes. Should a discrepancy or dispute arise,
the information
Although there iscanany be recalled
amount quickly. The
of information a
job file should contain, we have elected to list
some items that may not be found in some
systems. Probably one of the most important
items is the ability to describe a job in as much
detail as might be required. This implies the
Job and project costing requires more than just
the ability to record and analyze costs. In many
instances the user will need other job and project
related functions to serve their clients effectively.
These additional functions all relate to customer
support as well as organizational issues that have

There are any number of methods by which a

client can be billed. It may depend upon the
person doing the work or the work itself or it may
be based upon rates negotiated with the client.
This question lists some of the methods by which
default billing rates can be assigned.

Depending upon the nature of the job and the

agreement reached between the service supplier
and their customer, the methods by which a
client can be billed may vary widely. This
question lists many of these billing options and
asks if the system supports such options.

In some instances an engagement will require

slightly different billing procedures. The work
may be done for one organization, but billed to
another. It may be done for one department, but
the invoice sent to another address. This
question lists some of these possibilities.

Although all job costing systems have the ability

to track direct costs, this question asks if the
system has the ability to track other forms of
costs which can be associated with a job or
project, including direct administrative costs
(portable office rental, electricity, etc.), indirect

Once a job has been launched, cost information

will flow into it either directly or from other
applications such as Payroll, Accounts Payable,
and Inventory. The key to the success of any job
related organization is allocating costs to jobs
accurately and in a timely manner. Once the
Small jobs are relatively easy to control. Larger
jobs may be so complex that several people may
act as managers. In cases like this it is very easy
to lose track of costs and labor. This section lists
some of the support a business management
system can provide.

While it is important to post all costs to a jobs, it

requires some degree of study to make sense of
this information. This section lists some of the
activities and information managers may need to
help them control each job.

Collecting cost information is the first and most

important step, but if those costs are not billed
properly and billed at all, then all of the control
efforts of managers goes to waste.

Equipment files perform the same function as

master files for customers, employees, etc.

The master files that need to be set up for assets

are similar to all other master files. This series of
questions lists some of these procedures.

As with every other file we have discussed, many

users might wish to track certain information
unique to their industry or their individual
company. Under these circumstances they might
be interested in software which permits them to
design their own master file for each piece of
The ID assigned to a particular asset should have
the ability, not only to identify a unique item, but
also to group that item with other items in the
same class. If this is important, users should
check to make sure that this type of sorting can
be
A accomplished
serial number by their
is asoftware.
second tier in the
identification of an asset. Although it can be the
identification number itself, serial numbers tend
to be quite complicated and therefore do not
lend themselves to this purpose easily. The serial
number might beequipment
In many instances the identification
is not boughtnumber
from
the original manufacturer, but an intermediary.
However, the user might want to keep track of
the original manufacturer as well as the
intermediary.
Who has direct control of an asset? This question
might be asked several times each year in a
multi department organization. The location of
the asset is important for two reasons.
Department managers should know what assets
have beenusers
Although assigned to them,
will need and the
to know the location
current
location of a fixed asset so the department or
group can be charged depreciation, they might
want to know the individual person responsible
for equipment as well. This is particularly true for
mobile
Propertyassets
taxessuch
are as laptops,
a fact etc.
of business life. Since
property taxes are based on fixed assets and
leased equipment, the system should have the
ability to record the various tax jurisdictions to
which an organization has to pay property taxes,
and
Tracksthen prepare
Status of aCapital
list of equipment
Projects: As(including
capital
projects proceed, it may be possible to begin to
charge depreciation before the project is
completed. This question asks if it is possible for
the system to track capital projects, and then
calculate
Rather than depreciation
determining basedtheupon the status for
depreciation of
each asset item, some users might be interested
in a system whereby smaller assets are assigned
to an asset group. This is not unlike a
spreadsheet process whereby the cost of the
item is added to the group, and then a new

Leasing is just another form of financing. Even

though a piece of equipment might be leased,
depreciation can be charged, and that
depreciation needs to be allocated to the proper
department or group. This is a two part question.
Users need to know if the system has the ability
The depreciation of an asset must be charged to
some account. The Equipment Master File should
contain the General Ledger account to which
depreciation will be charged, the Job Costing
account to which it will be charged (should the
user charge depreciation to each job), or the

There are four basic depreciation conventions

listed in this question. The first three listed are
known to most people. The Unit of Production
method bases depreciation upon the number of
units a particular machine produces. This is a
logical choice for those machines whose life is

Once an asset has been acquired, its acquisition

cost must be amortized over a period of years.
This section lists functions that control that
process.

Reports: Just has been found in every other

application, users will need to access reports that
analyze depreciation.

Order entry is not just about taking orders and

subsequently shipping goods. There are a lot of
other activities that need to be considered when
an order entry system is set up. This series of
questions lists some of those functions and
activities.
Order Entry (General): While most of the
questions under this order entry set up section
can be grouped, this series of questins are more
general and apply to the whole system rather
than specific aspects of the application.
Although Order Entry can be found in an
environment not requiring a cash drawer, most or
all of the functions can be found in a retail setting
as well. This question asks whether the system
supports a cash drawer and whether the system
will open companies
All retail the cash drawer
have at the drawers,
cash proper time.
and the
task of balancing the cash drawer can become a
tedious and time consuming task. This does not
necessarily have to be the case. The software
can assist users in balancing the cash drawer at
the
The end of theof
process day or at the change
determining of eachdue
the change clerk,
a
customer may seem to be straight forward, but
the time lost over the course of one day may be
significant. Any delays while the clerk is making
this calculation may leave a negative impression
with
Order the
Entrycustomer. This
and Point of Salerather
systemsinsignificant
should be
tied to the Inventory module as one of their
prime functions is the selling of products.

Some retail companies do not maintain a central

warehouse, but elect to adopt a policy of
warehousing at each retail outlet with all
purchases being shipped directly to the
appropriate outlet. In this instance the retail
outlet mustthat
It is likely havesome
access to the inventory
employees utilizingmodule
Order
Entry or Point of Sale will be temporary or
marginally skilled people. As a result, the screens
they see must have the ability to describe
exactly what is required of them. Many
companies
The processmight wish to design
of recording sales screens suited
item numbers
manually can become quite time consuming and
subject to any number of errors. Considering the
fact that bar code labels are pre printed on many
products as a standard feature, it makes sense
for some
Prints retail
Price establishments,
Labels: While the particularly
presence ofthose
bar
code labels might assist retailers at the cash
register, some means has to be devised to
indicate the price of each item. There are many
devices by which users can mark prices on an
item, and asked
Although one of in
these might
another be the this
section, software and
question
asks whether the system prints the bar code
labels as a function within Order Entry or Point of
Sale.

In most instances the commission rates for

manufacturers agents are not that difficult to
calculate. The problem is where these people are
defined. They are not salespeople because they
are independent contractors. In actual practice
they are more like vendors, but they supply
Although most systems support the calculation of
sales commissions, many companies with
multiple levels of salespeople have adopted fairly
sophisticated commission structures. The inside
salesperson may receive one rate. The customer
field representative may receive a commission as

Every company has a different way it wants to

calculate and pay commissions. Some base it on
sales revenue while others wait until a customer
has actually paid their bill. The commission may
be based on sales revenue, gross margin, or net
profit which includes overhead cost allocations or

If the accounting system is tied into the sales

floor, it does not make a great deal of sense for
any process to require the manual input of
information more than one time. Payroll is just
such a process. Hourly employees should be able
to prepare their time cards themselves, and

When a customer calls in with a complaint

concerning a possible warranty claim, users
should not have to research manually any
information concerning the original shipment or
warranty terms. The system should support a
special inquiry screen that lets people see the

The process of receiving an order can be quite

simple or it can be quite complex depending on
the nature of the order, how it is recorded, and
the industry in which the user competes. This
whole section deals with various aspects of the
order receipt process.

Order Tracking: To assume that once an order

has been received is a mistake. Anything can
happen to prevent an order from being shipped
on time or delivered on time. This series of
questions list functionality that will help users
track orders from the day they are placed to the
The process of actually getting a shipment out of
the door can become quite complex as well as
quite costly. This series of questions lists some of
the activities that can be enhanced by a well
designed business management system.

Once a shipment has been dispatched, invoices

should be printed as soon as possible. This series
of questions lists some of the procedures that
business management system can support.

As is the case for all other applications, the

reports coming from the Order Entry system
should help users get shipments out the door
efficiently and on time and also learn where
improvements can be made.

This series of questions lists general questions

about the budgeting process supported by the
business management system.

Supports Comparison Versus Budget: The most

fundamental question to be asked is whether the
software supports budget comparisons in the first
place. Some might say that budgeting is one of
the most important aspects of running a
business.
Supports One cannotInternal
Separate establish plans to improve
Budgeting Module:
Although it would be nice to consolidate all
budgeting activities into one module much like
Accounts Receivable or General Ledger, the point
of this question is that the software segregates
budgeting and all of the information concerning
Integrates With Third-party Budgeting System: In
many cases the process of budgeting can
become very complex to say the very least. This
has led to the creation of third-party products
specializing in budgeting. Rather than trying to
compete
Supports against
Monthly these
Budgets: specialized systems,
Many companies
consider their sales, and therefore profitability, to
be seasonal. This is particularly true for retailers.
Fifty to seventy percent or more of their revenue
might be generated during the few months
preceding Christmas.
Supports Multiple If theseRevisions:
Budget companiesAlthough
elect to
forecasts might need to be revised as a fiscal
year progresses to reflect the realities of the
market, budgets should not be changed unless
there is a very good reason to do so. Once a
manager
Maintains commits
Budgetto Revision
a certain set of spending
History: As we or
discussed in the previous question, the system
should give users the ability to change a budget,
but it should also maintain a file of each previous
budget so the sake of comparison.
Supports Non-G/L Budget Groups: This question
is somewhat similar to the one following, but
asks a very pointed question. Rather than having
to tie budgeting to a specific General Ledger
account, the whole budgeting, review and control
process
Supports mayBudget beRoll
served more Ifeffectively
Up System: budgeting is if
removed from the General Ledger, and budgets
for each control group were to be defined, then it
would be possible to roll up each lowest level
budget unit into higher level reporting units, but
without
Supportshaving to define
Multiple a budget In
Year Budgets: forsome
that unit.
cases,
particularly for capital projects, various sales and
marketing campaigns, and other projects,
particular costs will be incurred over the life of
the project or activity, and that activity cannot be
tied to fiscal
Supports years. Infor:
Budgeting this All
case the budget
accounting should
systems
support budgeting for any General Ledger
account. However, there may be subsidiary
activities which require some form of budgeting
as well, even though these activities aren't
"listed"
Supportsin Budgeting
the Generalfor:Ledger. This question
All accounting tries
systems
support budgeting for any General Ledger
account. However, there may be subsidiary
activities which require some form of budgeting
as well, even though these activities aren't
"listed"
Supportsin Budgeting
the Generalfor:Ledger. This question
All accounting tries
systems
support budgeting for any General Ledger
account. However, there may be subsidiary
activities which require some form of budgeting
as well, even though these activities aren't
"listed"
Review in the General
Process: BeforeLedger.
a new This question
budget cantries
be
created, users should review the results from last
year as well as before. This may give them trend
information that will be useful when establishing
a new budget.
Construction of New Budget: The actual process
of constructing a new budget can be fairly simple
or very complex depending on the nature of the
business as well as their desire to split the
budget into very small pieces.

The cost of a product is more than just the total

cost of all material that comprises the item. This
question lists several of the more common cost
components.
There are many different methods by which
items can be costed. This question lists some of
the more common methods.

The cost of an item is not just the cost of the raw

materials that make up that item, but the
materials, production costs, etc. This question
asks whether the cost is calculated by part
number, by cost type, or by value stream.
There are any number of reports users might
want as they try to control product costing, and
the question lists several reports that should be
useful.
This group of criteria defines the technical
architecture of the product as well as the
technological environment in which the product
can run successfully. Criteria include product and
application architecture, software usability and
administration, platform and database support,

If business is done via the Internet, one of the

requirements is to have a connection from the
Internet to backend software.
JDBC technology is an API (included in both J2SE
and J2EE releases) that provides cross-DBMS
connectivity to a wide range of SQL databases
and access to other tabular data sources, such as
spreadsheets or flat files. With a JDBC
technology-enabled driver, users can connect all

The platform refers to the framework, both the

hardware (e.g., type of processor) and the
operating system that allows a computer or set
of computers to function.

Server administration is for maintaining the

system and all components needed to run the
system smoothly. It includes security, user
control, backup, tuning the system upgrade, and
maintaining the system.
Criteria for software as a service (SaaS) or hosted
solutions.