Mar 3, 2013

Loading of Opening Balances in Oracle ERP....


Here is a challenge that all of us face as functional consultants. How to load opening balances. I have extensive experience and expertise in accurately loading the opening balances.

Here is a financials consultant asking for clarifications on loading Opening Balances...

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Dear Team,
I have saw your article in Google for data migration activity. I need more input for data migration activity.
Currently our project in UAT stage. I am looking financial modules. We are implementing 20 modules (Planning, LCM, Manufacturing (Batch, Flow), SCM all modules, Finance all modules, Sourcing, EAM and Costing). Kindly share your valuable information and particularly about reconciliation of Open data.

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First of all, there is no 'Team'. The document that you saw in Google was written by me.
The information that you want is very detailed. If you can give me more specific requirements, I may be able to help.
Regards
Ramaswamy

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Dear Ramaswamy,
My requirement is How to handle the opening data migration process reconciliation. I need your input.

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This I understood from your first mail. What are the opening data that you want to migrate?
Regards
Ramaswamy

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Dear Ramswamy,
Please find below data need to migrate
1.       Customer – Invoices and Receipts
2.       Supplier – Invoices and Prepayments
3.       Fixed Assets
4.       Inventories
5.       GL Opening Balance
6.       Bank
7.       Opening PO and Receipts
8.       Opening Sales Order and Shipments.
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Hello

Just a few quick points.

1. Create separate transaction types to handle Opening balances where possible. Make these inactive after OB Intake and verification so that they are not used in day to day transactions. For example, in AR create a separate transaction type, in Inventory use separate transaction type / reason code etc.
2. Net of all the receipts with the corresponding invoices in AR so that you have to take in only Open Sales Invoices in AR
3. Net off all the prepayments against Invoices in AP so that you have to take in only Open Invoices in AP.
4. Receive in full all the POs that are partially received so that you have to enter only open POs. If possible, enter POs manually.
5. Process all the production batches / orders / work orders before cut off date and enter new batches / orders / work orders directly in the ERP after go live
6. Ensure to transfer all the Opening Accounting entries to GL. Verify that subledger tallies with GL after Data conversion. Data entry should happen only after this verification.
7. Normally Inventory Quantity is taken in separately and cost is taken in separately. Please ensure very tight control on the loading of inventory. Ensure that Inventory valuation in the system matches with the legacy in both quantity and value. Ensure that the same is posted to GL and Inventory subledger tallies with GL.
8. Ensure to take in Assets at historic cost. Ensure to match depreciation and accumulated depreciation.
9. Ensure that there are no partial orders in the system. This includes POs, Sales Orders, Work Orders etc. Any partial order should be completed or cancelled before data intake.
10. You will need to create a few temporary GL Account Codes to handle Opening Balances. Once the Opening balance is taken in and verified, ensure to end date these account codes

These are a few points that I can think of now. 

Regards
Ramaswamy
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