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TheImpactofEnterpriseResourcePlanningSystemsonManagementAccounting:AnAustralianStudyAbstractInformationtechnologyissignificantlychangingtheoperatingpracticesofanincreasingnumberofcompaniesglobally.Thesedevelopmentshaveimportantimplicationsfortheaccountingprofessionandinparticularaccountingpracticesinthetwenty-firstcentury.Thisstudyexaminesthedevelopmentofenterpriseresourceplanning(HYPERLINK"http://www.51lunwen.com/ERP/"\t"_blank"ERP)systemsasameansofillustratinghowchangesininformationtechnologyallowsallsystemsinacompanytobelinkedtomanageoperationsholistically.ThestudyinvestigatesthechangeinaccountingsystemsusingasampleofAustraliancompanieswithemphasisontheadoptionofERPsystemsincludingthepotentialimpactofERPoncapitalbudgetingprocesses.TheresultsshowthatERPsystemsarechangingmanagementaccountingpractices,althoughatthisstage,theimpactoncapitalbudgetingtechniquesappearstobelimited.ThefindingscontributetotheemergingbodyofliteratureonthedevelopmentofERPsystemsanditsimpactonmanagementaccountingteachingandresearch.Keywords:Managementaccounting,capitalbudgeting,enterpriseresourceplanningsystems,informationtechnology.1.IntroductionDuringthepastdecadeanincreasingnumberofcompanieshavebeenimpactedbyinformationtechnologyintermsofcomputerizedtransactionprocessingandelectronictelecommunicationssuchasthatdonewiththeInternet,intranet,andextranet.Forcompetitivereasons,companieshavehadtochangefrommanualandthenmainframesystemstowhathasbeencalledenterpriseresourceplanning(ERP)systems.AnERPsystemhasacommondatabaseordatawarehousethatlinkstogetherallsystemsinallpartsofacompanyincluding,forexample,capitalbudgetingwithfinancial,control,manufacturing,sales,fixedassets,inventory,humanresourcesmodules,etc.AnERPsystem,bylinkingallsystemsthroughadatawarehouse,allowsacompanytomanageitsoperationsholistically.AsecondimpactofERPsystemshasbeenageneralshifttomanageattheactivitylevelratherthanatthemoreabstractleveloffinancialtransactions.Thismeansthatmanagementaccounting,withitsfocusonactivities,canbem