“A penny saved is a penny earned.” – It’s a good personal finance motto to live by, but without a reliable financial management system, how will you be able to track valuable financial data coming in and out of your organization and keep up with financial operations critical to your company’s success?
This is where the JD Edwards EnterpriseOne Financial Management system comes in.
Read on to learn more about how JDE Financials can help balance cash flow, provide reliable frameworks to analyze profitability, and integrate financial information throughout your business.
Key Products of JDE Financials
Here are a few key products offered in JDE Financials to help optimize your financial operations and meet the financial consolidation and reporting needs of your organization in an ever-changing financial environment:
- Accounts Payable
- Accounts Receivable
- Expense Management
- General Ledger
- Lease Accounting
- Advanced Cost Accounting
- Joint Venture Management
Things to Keep in Mind When Migrating Financial Data to JDE
Now that you have an idea of the basic capabilities of JDE Financials, there are a few things to consider in an acquisition – especially when it comes to migrating the financial data of your newly acquired company (NAC) to your JD Edwards system.
Buy-in (and Training) Is Key
You’ll need buy-in from key players in the NAC and the parent company to ensure your financial data migration goes smoothly. JD Edwards has tools to help out in situations like these, but if users on both sides don’t dedicate time/effort to the process, valuable financial information could be at risk (and your company could lose valuable time and money in the process).
Ensure Your Data Is Mapped Correctly
A key thing to remember when migrating any kind of data from a legacy system to JD Edwards is that all of them are different. And, your biggest concern in this situation is making sure that you’ve mapped your data correctly. JD Edwards has a number of tools and kinds of reports to help you with this, but proper mapping will save you time and headaches later.
Next, and just as important, is data validation. Although all data is important, correct financial data is especially important to the continued and healthy operation of your business. This is made more difficult when you realize that data validation isn’t always a one-to-one process when you take into account the splitting or condensing of accounts.
Luckily, JD Edwards has a feature to help make the process a bit easier: category codes. Most categories have a limit of around three codes, but some (account category codes 21-43) have a limit of 10 each. Use the larger codes for legacy accounts to help clean up navigation. Also, there is a third account number field that is free-form and can be used and reported on for data validation.
Avoid These Common Data Migration Issues
No matter what type of data migration you’re performing, there are some common potholes companies seem to fall into. Luckily for you, we’ve outlined some tips and tricks for avoiding these all-too-frequent problems.
Risk of Data Loss
Any time data is moved from one location to another, there is always a risk that some data will be lost. To mitigate this risk, Count Reconciliation and Key Financial Column Reconciliation can be used.
This type of reconciliation involves comparing the number of records in the legacy system and the target system. It’s possible that the data migration process may require the rejection of some records, so these numbers don’t need to match.
Key Financial Column Reconciliation
This type of reconciliation depends on comparing key financial closing information between the legacy and the target system. If there’s a mismatch, you can drill down deeper to figure out which record(s) are missing.
Data Corruption/Integrity Issues
If the format or the content of data in the legacy system changes during the migration process, maintaining complete financial integrity can become tricky. There are a number of data validation strategies that can solve this issue, including Sample Data Validation, Subsets of Data Validation, and Complete Data Set Validation.
Sample Data Validation
Picking random records to validate or profiling samples of records to ensure more data coverage and then comparing those records to the same ones in the new system.
Subsets of Data Validation
Picking larger sets of sample records to validate (the first thousand records, for example) to improve data coverage.
Complete Data Set Validation
The ideal way to validate data, is to check all the target records to the legacy records and vice versa. Due to mapping constraints, however, this is pretty much just an ideal.
Issues can arise if the source data set and the target data set agree on the meaning of a field (Currency, for example) but not the units. While something might be €100 in the source dataset, it would be a mistake to migrate €100 as $100. Another issue might be decimal points. If the source data set has two places after the decimal point but the target data set doesn’t, important information could be lost.
Interference risks result from people interacting with the system in a way that unintentionally disrupts the data migration process. For example, if someone is working in a table and they lock it, no one else can interact with the table to perform data validation or count reconciliation.
Tips and Tricks to Survive Month and Year-End Closing
Once a month, (or once a year), your Accounting department has to deal with month and year-end closing in JD Edwards. And, while you might have an established procedure for how to perform this process, here are a few tips and tricks that can make both month-end and year-end close easier:
Don’t forget to…
- Use all your accounting periods.
In addition to the 12 monthly accounting periods, JD Edwards gives you an extra 13th and 14th periods. You can use them to separate adjusting entries and audit entries.
- Look at your transactions.
Ensure that you’ve processed and cleared all EDI system F47 inbound and outbound transactions.
- Check your work orders.
If you have any work orders that can be closed or canceled, month-end/year-end is the perfect time to do so.
- Write new tables before clearing old ones.
Make sure that you write the interoperability transactions EDI of inventory to an audit table before clearing the interoperability tables. (These are the Z-file tables.)
- Check integrity reports.
You’ll want to validate that all the account balances reflect the general ledger amounts in your reports.
- Perform inventory reconciliation.
Often, companies will perform simple inventory adjustments instead of physical inventory count, but that can be a big mistake. When it comes to your balance sheet ratios, inventory reconciliation is critical.
Accurately migrating financial data to JD Edwards is a critical financial operations task for any company involved in an acquisition or business change. Obviously, managing and migrating any type of data is important, but companies need to have a clear picture of their finances to know what their assets, liabilities, equities, and overall financial conditions are at the end of their financial reporting period.
How Can We Help?
Fortunately, our team of senior-level JD Edwards consultants have the skills and experience to help you – wherever your needs may lie. They can help produce fixed asset reports, maximize the functionality of your traditional accounting methods, build effective cash management strategies, and provide guidance to help your financial management system withstand a changing business environment.
We’ve included a sample profile of one of our JD Edwards Financial Management consultants to give you a better idea of what to expect when partnering with us:
Surety Senior JDE Financial Management Consultant
- 25+ years of JD Edwards Financials experience
- Expert with JDE Financial Management (AP, AR, GL, & FA)
- Well-versed with Job Cost, Multi-Currency, and Product Costing modules
- Certified Public Accountant & Certified Management Accountant
- Completed numerous JDE E1 9.2 upgrades/implementations
Interested in learning more about the ways our JD Edwards consultants can help you? Click here to read our latest consultant case study.