Costs and Benefits Associated with ERP Systems - Advanced Accounting Essay

Costs and Benefits Associated with ERP governances - Advanced Accounting Information systems - Essay ExampleP.Regardless of the reason that has contributed to acquire of searching a new ERP, the fundamental question to be kept in mind is how the ERP will cost (Busco et al., 2007).The cost of an ERP varies depending on different factors. These factors allow in the size of the company type of solution needed for instance the more specialized the solution is the pricier the ERP will be. The needed resources overly contributes to the decision to be make regarding the ERP.The more external resources atomic number 18 the more costlier the ERP is.The level of customization is also an a factor determining the cost of an ERP (Nixon, 2012).There is the purchase cost and the licensing cost. When an ERP is purchased, licenses for the Database Management System need to be bought separately. Often, the licenses are excluded in purchase price of the software since it is distinct product develo ped by a different company. There are two types of substance abusers license in the ERP the named user and parallel operator. Respective worker has to require an authorization to be able to use the software in the named user licensing. In a parallel user licensing, there has to be a password available to each connected user (Li, 2011).There are also infrastructure related costs. The infrastructure cost incorporates all the required hardware to ride the ERP. However, this will fluctuate for each company, but the following should be include irrespective of the company. Firstly, there is server infrastructure cost, the cost of storage, the cost of backups and new desktop computers, or the computers that require upgrading. The infrastructure costs are responsible for somewhat ten to twenty of an ERP implementation project (Li, 2011).There are also human resources. Human resources accounts for the greatest ERP implementation budget. Consultant costs and the employees wages aim more tha n fifty percent of the total ERP cost. Internal resources cost is also a cost related to ERP. The wages of employees should cater