Re: ERP Lx - CEF - InterCo accounting

   In getting advice from this group, it might be useful to identify what all
   BPCS application areas are affected for your company, since pretty much
   all of BPCS feeds info into General Ledger, so all that you use are going
   to have a disruptive adventure.

   I also suggest that early on you get yourself a test environment, that
   might have been populated with data from the conversion efforts so far, so
   that you can run exercises to see how things are going to work in the new
   reality.

   You have a bunch of parallel challenges
     * * Understanding how things should work at the end of the conversion,
       differently from how they now work today, to make sure your goals are
       in tune with what the conversion is to do.
     * * The conversion process to get the master control data, historical
       data, from where it now is, to the new reality.  Will BPCS conversion
       software serve this goal, or will you need to get 3rd party software
       to help with it?
     * * The conversion process will need serious testing.
     * * Before the conversion begins, an examination comparison of what's in
       the different environments to review differences ... for example, you
       might have a particular GL Account # which is used for different
       purposes in different environments.  Or the same kind of deal with
       non-GL files that feed data in to GL.  So long as the files were
       totally separate in different environments or data bases, it did not
       matter that they might have gone in different directions, but now that
       you are consolidating into one, you have to deal with how the
       different realities might be doing things differently.
     * * Re-education where stuff in rest of BPCS comes from into GL,
       typically setup years ago, works fine, ignore it, forget it, but now
       needs some serious review.
   In years gone by, on much earlier versions of BPCS, we went through
   similar challenges.  We found that the BPCS conversion software was
   designed for moving same kind of environment to same kind of environment,
   not really attuned to what we were trying to accomplish, plus it was more
   buggy than regular BPCS.  We had number systems, such as customer orders,
   purchase orders, coming from the different environments, where the same #s
   were for totally different things.

   e.g. environment 1 has order 12345 for customer 123 for part XYZ
   while environment 2 has order 12345 for customer 456 for part ABC
   Fortunately at that time all our order #s were 5 digits or less, while
   BPCS supports 6 digits, so in the new consolidated environment, all
   customer orders starting with digit 1 in high order position were from
   environment 1, and so forth for all the others, with a zillion files
   needing same update in sync.  After that first digit, the rest of the #
   was same as what it was in the former environment, then we made sure the
   next orders issued by the new environment were beyond the digits needed
   for the conversion.

   For files where the same item # vendor # customer # etc. meant the same
   thing in all environments, there are fields showing the total activity ...
   it was a matter of combining the totals from all environments into one
   combined consolidated total.

   Where a particular customer vendor item etc. had different numbers in
   different environments we had to setup a system of "do not use this #, it
   has been replaced by that #" with an unused field in various file layouts
   to contain this #.

   In addition to our old environments, the target new one, we had several
   test environments with various stages of conversion results for pilot
   testing, and an accounting environment with only the new chart of accounts
   that they were developing.  The ultimate environment got the GL file
   structure from the accounting structure environment, then the contents of
   those files were populated by data from the old live environments, using
   conversion tables showing that the data in this old account in which
   environment was now to end up in which account in the new chart.

   We also ran into some disk space crunches because the up front planning
   did not anticipate all the problems that would later develop during the
   conversion.

     Dear All,

      

     I have an organisation who will very soon be moving their 3 independent
     company environments (BPCS version 6.1.02 - soon to move to ERP Lx) to
     one
     environment with shared financial services.

     The company will move to one chart of accounts, currently they have
     three
     charts of accounts.

     Each division / company will have their own ledger, and an intercompany
     account set up for the other divisions / companies.

      

     When consolidating these ledgers at month end, will these various
     inter-company accounts net off automatically?

      

     Example:

     Group HO

     Company A

     Company B

     Company A and B will consolidate ledgers at month end up to Group HO.

     Both A & B may owe Group HO money for shared services, loan accounts,
     rent
     of premises.

     Company A may incur a cost on behalf of Company B, and visa versa.

     There may well be rebates and commissions owed between the two
     companies,
     and to / from Group HO.

      

     Would one still have to pass manual journals to clear / net these three
     accounts, or will the consolidation process do this automatically?

      

     Many thanks.

      

     Kind regards,

     Kathy Hart

     ROI Technologies

     Office tel. (011) 476-8817

     Office fax. (011) 476-7370

     Cell no. 082 856 5543

      

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