So you need an ERP upgrade and now you are presented with the question – what do we do with all that historical data? You might also need to decide whether or not you should invest in an ERP upgrade or purchase a new ERP system A.K.A. ERP migration. If you have ever gone through an ERP implementation before, you already know that’s it’s important to undergo a thorough needs analysis before you decide what kind of change you need. You’ve spent weeks discussing your processes, forms, & personnel with a number of ERP software resellers. You may have already sat through several dog & pony shows (also known as demos) and checked off your requirements.
Ideally, your management team will unanimously select your company’s next ERP software upgrade. At some point, before you calculate your cost, you will need to discuss with your ERP software reseller, in detail, what data will be brought over from your current system. All too often, a business will just assume that all their data will be imported into their next ERP upgraded system. As a reseller, my experience shows that when it comes to the question of data conversion “it all depends.” Every situation is different and should be approached as such. Here’s why...
You’ve probably seen it yourself. Vendors duplicated because of typos; New customer accounts created just because the address is different; Inventory Items kept “active” even though the oldest inventory employee has never actually seen that part.
Although time consuming, it’s time well spent to clean up accounts as much as possible BEFORE the ERP upgrade. Even better if you can retrain or jettison “bad habit” employees which put the garbage in your system in the first place.
Moving over Vendor Master, Customer Master, & Inventory Master data are, 99% of the time, givens. Detail history transactions are another matter. Yes, it would be a benefit to import history into the new system for reference purposes, but does the cost justify it? Keep in mind, often your old accounting system will still be available from which you can review that history. Another option is to transfer summaries which allow comparison reporting. The cost often outweighs the benefits and having “clean” transaction data going forward has its own rewards.
When considering an ERP upgrade, many companies will take this time as an opportunity to review their internal processes for improvements & streamlining and with good reason. Your company is going to make a significant leap in technology & functionality with the software. So why not also look at what else can be improved?
Part of this review is how you organize your data. If you’ve used the same General Ledger Chart of Accounts since your books were manual and kept by your CPA Firm, now is a great time to revise them to organize the accounts more in tune with your current needs. Your Inventory Item Number has been overly complex for 20 years because the Inventory Manager you had back then was a bit off his rocker. You get the picture.
An ERP Upgrade is not only an opportunity to change software, but a great time to “convert” your data rather than simply “importing” it. Sometimes it’s even a good idea to leave it where it is and refer to it on the rare occasion you need it for historical reference. “It all depends.”
Complete Programmed Accounting, Inc. (CPA, Inc.), was founded in 1992 with the following mission statement: “The ability to take advantage of the power of timely information lies in the successful implementation of complete, appropriately configured and properly installed financial and management computer systems.”
Complete Programmed Accounting is an ERP & CRM Integration Specialist in the central Indiana area with over 20 years of experience supporting SYSPRO ERP, SYSPRO CRM, TRAVERSE ERP, TRAVERSE CRM, Platinum for DOS, and Platinum for Windows, where your support is our service.
Contact Completed Programmed Accounting at: (317) 290-8702. Email: sales@cpa-inc.com. The Complete Programmed Accounting Web site is located at: www.cpa-inc.com
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Another version of this blog was previously posted on November 17, 2014 on CPA, Inc’s BLOG site: ERP Upgrade, Should Your Data Join You?