Hi Everyone! If you have stumbled across this blog, I’m sure it’s because you searched “Data Conversion”.
Like most, you have a boss to whom you answer, and your boss wants answers. So having done this now for 20 years and working in the Cloud for the last four, I’m in a pretty good position to help you out.
Let’s Start with the Obvious
Do Convert Suppliers, Customers, Item Master
- Do clean up and rationalization your data
- Too much rationalization can create “change management” headaches for employees, customers, and suppliers
- The project timeline and cost can be impacted by rationalization efforts if “overdone.”
- Measure the cost/benefit of rationalization carefully before embarking on it
Do Convert OPEN Items – AR and AP Invoices
- Do convert partially paid invoices. Take remaining only balances to reduce complexity
- Do not try to match AP Invoices to Purchase Orders, as this will create more dependencies and complexities
- Do not convert AP or AR Invoices that are not fully accounted for in your legacy system as this will cause reconciliation issues
- Do clean your legacy system before converting (write off what does not need to be converted, make sure all required invoices are fully approved and fully accounted)
Do Convert GL Balances (minimum 2 years for year over year reporting)
- Pick a starting point and convert a year-end balance sheet or a full trial balance (Oracle will roll your retained earnings forward)
Do Convert FA Balances
- If you are converting Mid Year, my advice here is to convert twice.
- One balance end conversion for your prior year-end, and another Activity Conversion through the current year.
- This will allow you to have Additions and Retirements reports for the current year in the Cloud. Otherwise, it will be challenging to get reporting out of your new ERP for the current year.
Explore key considerations, integrating the cloud with legacy applications and challenges of current cloud implementations.
Do Convert Inventory On Hand Balances
- Do take one last physical Inventory
- To ensure your standard costs are correct or you use an acceptable average cost
Do REVERSE ALL JOURNAL ENTRIES RELATED TO YOUR SUB-LEDGER CONVERSIONS!
- Do not delete your journal entries
- Do create your journals, post them and fully reverse them
- This will allow easier reconciliation if there are issues in the conversion
- Deleting entries will disable your ability to audit the conversion in the event of issues
For the Less Obvious
Do Convert Open Purchase Orders
- Recommend converting open purchase orders for remaining balances due only
- Attempting to convert the full purchase order will create further complexities in that you will have to convert receiving transactions to close out the remaining items
Do Convert Closed AP Invoices for 1099 Suppliers
- If converting mid-year, I recommend converting closed and paid invoices within that year for 1099 suppliers only.
- This will help create 1099s from a single system at year-end.
- Converting closed AP Invoices will require a “dummy payment run” or additional web services to apply for payments.
Do Not Convert Closed AR Invoices or Closed AP Invoices
- This adds a lot of complexity to your conversion.
- Reconciliation is near impossible.
- Errors are more easily made.
- If you are concerned about accidentally paying duplicate invoices, discuss other solutions before you convert them.
Do Convert FA Tax Books
- If you plan on using Oracle’s tax books, it’s much easier to convert into the Cloud than ever before
- Make sure your tax books are set up with the same rules as in your legacy system; otherwise, data won’t match
- Expect some differences if there have been corporate revaluations along the way
Do Convert Bank Statements and Un-reconciled Transactions
There are many decisions when it comes to converting your data. Certainly, there are extenuating circumstances and perhaps legal requirements that turn a “Don’t” into a “Do.” Be sure to discuss with your “team on the ground” either way, so you have a full point of view as to the ramifications to your system if you attempt to take on the more complicated conversions. They not only can impact timeline and cost but potentially create confusion.
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