GL Conversion Approach from Legacy to ISU via ERP

[former_member221838]

Hello Experts,

We are implementing full scale ERP solution with SAP ISU. ERP/FICO is going to get live before our ISU modules. So question is what GL conversion approach we should follow for the ISU conversion. Once ERP/FICO goes live - client's current legacy system will start posting in actual FICO A/R and FICO revenue accounts. Now, we are thinking of converting all receivables and posting them using dummy revenue but real A/R. Problem is - this approach creates duplicate A/R entries. Not sure if this is the best way to do ISU conversion. Any suggestions would be of great help. Thanks.

[ivor_martin]

Hi,

I have been in implemenrtations (in a similar situation) where the business has agreed to a dedicated "Conversion" A/R Reconciliation account.

This way the business knows the exact amount of converted A/R from legacy, and can do any offsetting entries in FI-CO prior to the month-end following conversion/Go-live.

I hope this helps.

Regards,

Ivor M.

[former_member221838]

Hi Ivor,

Thanks for your reply.

So do you think we should have 1) conversion specific/dedicated A/R & conversion specific revenue account both? or 2) actual A/R & conversion revenue or 3) actual revenue & conversion A/R?

I understood that if we go for converted A/R then we need to do offsetting entries in FI-CO. But what all other offsetting entries we need to do if we select any of the above option? example. offsetting for revenue account?

[ivor_martin]

Hi,

In order to have tight control over postings during conversion/Go-live, I would suggest option 1.

The Business can decide what FI-GL offsetting/adjusting entries they can make before month-end closing operations.

Regards,

Ivor