Implementation of ERP system is very challenging task particularly when it comes to data migration. In Acumatica 2017 R2, Acumatica introduced Migration Mode for Accounts Payable and Accounts Receivable. This Migration mode makes it easier for historical documents to be imported without affecting the General Ledger.
Notwithstanding the how Acumatica Migration Mode made it easier to import data, the fact still remains that the level of success of any data migration relies on the quality of the data and the reconciliation of the data migrated to the General Ledger. Since Migration Mode does not affect the General Ledger, it behooves the parties involved to reconcile the migrated data to the General Ledger. At times when migration is complete and the source data and General Ledger do not tie, blame goes around as to why and who is responsible for the unreconciled data. To alleviate this contention, an alternative to Migration Mode is desirable. This alternative is the Non-Migration Mode.
In Non-Migration Mode, migrated data are allowed to update the General Ledger using a series of clearing accounts. We configure the Non-Migration Mode by first creating the following account in the Chart of Accounts, for illustration purposes:
2110 AP Clearing Account
1210 AR Clearing Account
1410 Inventory Clearing Account
For the Open Accounts Payable data, the expense account is assigned to AP Clearing Account. The resulting GL entry will be:
Dr 2110 AP Clearing Account
Cr 2000 Accounts Payable
For the Open Accounts Receivable data, the offsetting account is assigned to AR Clearing Account resulting in the following entry:
Dr 1200 Accounts Receivable
Cr 1210 AR Clearing Account
For the Open Inventory data, the offsetting account is assigned to Inventory Clearing Account resulting in the following entry:
Dr 1400 Inventory
Cr 1410 Inventory Clearing Account
The General LedgerTrial balance data to be uploaded shall be modified and replacing Accounts Payable with AP clearing Accounts, Accounts Receivable with AR Clearing Account and finally Inventory with Inventory Clearing Account. When the Trial Balance is finally uploaded, the clearing accounts will be washed if client’s data is accurate. On the other hand, if the client’s data is inaccurate, clearing account will show not only the difference but also the source of the difference. The burden of reconciliation is then incumbent upon the client.
Acumatica Non-Migration Mode not only made it transparent to compare the source migrated data versus the Trial balance in the clearing account but also, it provides a proper audit trail for the migrated data to the General Ledger. This is very helpful to the client in an auditing situation.
If you desire more about Acumatica Migration, contact www.mibar.net