Summary

When switching accounting software (ERP) during the year, there may be new account numbers to work with.

Learn some of the best practices for handling this situation.

Best practices

1. The first thing to consider when transitioning from one ERP system to another is the ultimate goal from a Financial Statements reporting perspective.
   
   In most cases, there will be a mapping document that details how the migration was done. It is common practice to bring in all account numbers and add a prefix or suffix if they do not have unique ID's. We recommend doing this for the old accounts since the new accounts will be the ones that continue to be used. Both sets of Chart of Accounts should then be mapped based on the final presentation.
   
   

   Example 1

   1100 Cash is now 1100-00 Cash
   
   Bring in both accounts and map each to the correct MAC code as needed.
   
   

   Example 2

   1201 AR is now 1201 Other Assets
   
   In this case, add a prefix to the old account (for example, z1201 AR) and map it to a MAC code, then map the new account (1201 Other Assets) accordingly.
   
   
2. The second thing to consider is what the tool is used for:
   • If the tool is primarily used for flow analysis, it is recommended to create two separate analyses for each ERP system.
   • If the tool is used for Financial Statements reporting, planning, sampling, or other similar purposes, it is recommended to create one analysis with joined data from both ERP systems.
     
     
3. Further, it is important to consider whether there are any changes to processes that may require refinement of control points. If the changes in the ERP system simply involve an increase in the level of detail in the Chart of Accounts without any significant changes in the processes, then refinement of control points may not be necessary. However, if there are significant changes in the processes due to the transition from one ERP system to another, especially when transitioning from a simple system like QuickBooks to a complex system like SAP, monetary flow related control points may create unintended consequences. Therefore, it is recommended to analyze the data carefully before making any adjustments to control point weights. 
   
   

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