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(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • Toyota to Revamp Accounting System Prior to NYSE Listing
  • August 25, 1998 (TOKYO) -- Toyota Motor Corp. told Nikkei Information Strategy that it will begin operating its new financial and accounting system in April 1999 in line with the change in the corporate accounting system scheduled for the fiscal year through March 2000.
    The new system will greatly reduce the time required for monthly processing of global consolidated financial results and quickly calculate segment information such as regional and departmental profit performance. Also, it will enable the company to broaden its information disclosure to shareholders.

    Toyota is eyeing a listing on the New York Stock Exchange and the new system will permit the company to meet the disclosure standards of the U.S. stock exchange.

    Because the new system is to be structured in only about six months, it will be developed on the basis of an enterprise resource planning (ERP) package. The amount of investment for the new system is expected to be several hundred million yen for software and related accessories including the ERP package.

    For the ERP package products, the financial and accounting module of PeopleSoft7.5 sold by PeopleSoft Inc. will be adopted. Toyota plans to use four of the functions this product offers: accounts receivable and accounts payable trading, general account and fund management.

    Toyota USA's production and sales units have utilized PeopleSoft's accounting, sales and personnel management modules since 1996. The company's decision to adopt PeopleSoft's modules followed an evaluation of the performance displayed in the U.S. business units.

    By having all of its units use the same ERP package, the company expects to reduce the costs of system development as well as maintenance costs.

    Interface with the existing system such as the processing of purchasing and sales data, and the functions of consolidated financial statements will be developed by Toyota. The new system will be capable of processing several million vouchers a month and speeding up the settlement of bills by utilizing the workflow functions of the ERP package.

    Toyota is promoting a "human resources enhancement project," and it plans to renovate its personnel management system. Toward that end, the company is considering adopting PeopleSoft's personnel management module.

    The new system will be used mostly by the staff of the accounting and finance divisions of Toyota's head office. The company is considering use of a three-tier client/server type system and will adopt IBM's 9672-R85 large-sized database server and the DB2 database software.

    For the application server, UNIX will be adopted, and about 200 Windows 95 PCs will operate as client computers.

    The system will be developed jointly by PeopleSoft Japan K.K. and various vendors including IBM Japan Ltd. and Hitachi Ltd.

    Related story : Toyota Picks PeopleSoft for New Accounting System

    (Nikkei Information Strategy)

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    Updated: Mon Aug 24 16:28:32 1998 PDT