KEYS TO SUCCESSFUL

ORACLE APPLICATIONS
CHART OF ACCOUNT CONVERSION
WWW.MOTION-INTERNATIONAL.COM KEYS TO SUCCESSFUL ORACLE APPLICATIONS CHART OF ACCOUNT CONVERSION
Index
The Challenge of Changing Oracle Chart of Accounts in a Production Environment ....................................................... 3
Case Study ........................................................................................................................................................................... 3
Project Lessons .................................................................................................................................................................... 8
Project enefits ................................................................................................................................................................... 8
Conclusion ........................................................................................................................................................................... 8
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The Challenge of Changing Oracle Chart of Accounts in a Production
Environment
It is common that a business wishes to chane thei! Cha!t o" Accounts #COA$ in thei! O!ac%e &!o'uction
en(i!onment) The !eason cou%' be to su&&o!t t!ac*in o" Ke+ ,usiness In'icato!s su&&o!t business st!ateies-
o! to su&&o!t the business !owth since the o!iina% 'esin o" the cu!!ent COA)
The cha%%ene is a chane to a cu!!ent COA in a &!o'uction en(i!onment is not !ecommen'e' o! su&&o!te' b+
O!ac%e) Chanes to a COA in a &!o'uction en(i!onment can ha(e se!ious im&acts to +ou! O!ac%e Su&&o!t
A!eement e(en to the &oint o" nu%%i"ication o" the su&&o!t a!eement in &%ace) .an+ com&anies st!u%e as the+
!ow an' ac/ui!e othe! com&anies to accommo'ate the (a!iations in mu%ti&%e COA0s amon its man+
businesses) O!ac%e suests a com&%ete !einsta%% o" its mo'u%es to mo'i"+ the COA) To man+ com&anies- this
cost wou%' be (e!+ sini"icant an' time consumin "o! each o" its business units an' use! communities)
One o" .otion Inte!nationa%0s c%ients e1&!esse' inte!est in ma*in this chane to thei! COA st!uctu!e) The+
c!eate' a sma%% &!o2ect tas* "o!ce to !esea!ch an' i'enti"+ a%% o&tions "o! mo'i"+in the COA) Th!ouh this
!esea!ch- the team "oun' technica% consu%tin "i!ms wi%%in to mo'i"+ the tab%es- but the+ cou%' not ain a&&!o(a%
"!om O!ac%e to su&&o!t the a!eement in &%ace) Fu!the!mo!e- these &!o2ects o"ten sta!te' in the hun'!e's o"
thousan's o" 'o%%a!s to &e!"o!m an' !esu%ts we!e un*nown)
.otion Inte!nationa% assiste' ou! c%ient !esea!ch a%te!nati(e metho's to ma*e chanes to thei! cha!t COA in thei!
&!o'uction O!ac%e en(i!onment) 3e i'enti"ie' a so%ution inco!&o!atin a thi!' &a!t+ too% that a%%owe' .otion
Inte!nationa% to 'esin a new COA an' mi!ate histo!ica% 'ata without ha(in to &e!"o!m a !e4im&%ementation o"
O!ac%e) The cost o" this thi!' &a!t+ too%- combine' with the &!o2ect estimate' cost was a "!action o" othe!
technica% so%utions bein o""e!e'- so ou! c%ient 'eci'e' to &u!sue this o&tion "u!the!) It is a%so im&o!tant to note
that O!ac%e "u%%+ su&&o!ts this thi!'4&a!t too% an' the!e"o!e O!ac%e su&&o!t a!eements wou%' not be 2eo&a!'i5e')
Case Study
.otion Inte!nationa%0s c%ient is a %a!e inte!nationa% manu"actu!e!) 6ue to !owth in thei! inte!nationa% o&e!ations
an' !ecent me!in o" business o&e!ations- the+ 'eci'e' thei! COA nee'e' !est!uctu!in) The+ ha' !ecent%+
b!ouht thei! Cana'ian o&e!ations to the O!ac%e ERP &%at"o!m an' thei! Eu!o&ean o&e!ations mi!ate' to O!ac%e
a sho!t time &!io! to the im&%ementation in Cana'a) Thei! No!th Ame!ican co!&o!ate hea'/ua!te!s in the Unite'
States insta%%e' O!ac%e A&&%ications in 7888) At that time- the+ c!eate' a si1 sement COA that !e"%ecte' thei!
cu!!ent o&e!ations as "o%%ows #a%on with the numbe! o" cha!acte!s in each sement$9
Com&an+ : ;
Account : <
6e&a!tment 4 =
P!o'uct Fami%+ : >
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P!o'uct 6etai% : =
P!o'uct Sub6etai% 4 >
These si1 "acto!s at the time o" im&%ementation met a%% o" thei! cu!!ent !e&o!tin nee's "o! Finance an' Sa%es)
3hen com&anies im&%ement O!ac%e- the+ o"ten base thei! COA on thei! cu!!ent business o&e!ations an'
"inancia% !e&o!tin nee's) O"ten times %itt%e o! no thouht is i(en to "utu!e ac/uisitions an' !owth be+on' "i(e
+ea!s o" business) .an+ com&anies c!eate "utu!e sements- an+whe!e "!om one to th!ee- an' &%ace them at
the en' o" thei! cha!t o" accounts to use at some &oint to t!ac* &a!t o" thei! business the+ ma+ ha(e misse'
'u!in im&%ementation o! a chane in business a%toethe!) These "utu!e sements a!e not necessa!i%+ the
answe! "o! a%% com&anies to account "o! new ac/uisitions o! a chane in businesses 'i!ection o! !owth)
I" the "utu!e sements we!e 'isab%e' o! not 'is&%a+e' 'u!in the o!iina% im&%ementation- the+ ma+ cause issues
in O!ac%e Financia%s when the+ a!e eithe! enab%e' o! 'is&%a+e' in the ?ene!a% Le'e!)
.otion Inte!nationa%0s c%ient0s Eu!o&ean o&e!ations c!eate' an e%e(en sement COA to uti%i5e th!ouhout thei!
o!ani5ation) 3hen the Eu!o&ean an' Unite' States o&e!ations conso%i'ate'- to mo!e !ea'i%+ %oo* at "inancia%s
conso%i'ate !e&o!ts- the+ !ea%i5e' the+ must a'o&t thei! COA to accommo'ate the 'i""e!ences in sement
ma&&in chanes an' issues o"ten seen between two sets o" (a!+in COA) The e%e(en sements "o! the
Eu!o&ean o&e!ations we!e as "o%%ows #a%on with the numbe! o" cha!acte!s in each sement$9
Com&an+ : @
Account : @
Cost Cente! : @
P!o"it Cente! : =
P!o'uct A&&%ication : >
P!o'uct Fami%+ : <
P!o2ect : A
Inte!com&an+ : @
Futu!e : A
Futu!e : >
Futu!e : >
A%thouh the "i!st th!ee sements a!e the same in thei! cu!!ent COA an' the "utu!e COA- +ou can c%ea!%+ see
the+ ha(e (a!+in %enths o" each sement)
The "i!st test case was con'ucte' usin a thi!' &a!t+ so%ution which consiste' o" com&%etin the "o%%owin9
1. ,ac*4u& a co&+ o" P!o'uction
;) C!eate Test En(i!onment "!om P!o'uction co&+
3. Set4u& O!ac%e A&&%ications
C!eate FFIEL6 schema tab%es&ace as !e/ui!e' b+ thi!'4&a!t+ so%ution
C!eate new Cha!t o" Accounts
i) C!eate new Accountin Ke+ F%e1"ie%'
ii) Setu& sement st!uctu!e
iii) C!eate (a%ue sets : assin to sements in KFF
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i() 6e"ine F%e1"ie%' /ua%i"ie!s #ba%ancin sement- natu!a% account- inte!com&an+- cost cen4
te!$
4. Insta%% thi!'4&a!t+ so"twa!e on com&ute! to be use' "o! con(e!sion &!ocess
5. Pe!"o!m A&& P!es4ste&s #ma+ (a!+ base' on com&an+$
Fo! each sub4%e'e! an' Sets o" ,oo*s associate' with the cu!!ent COA- c%ea! a%% sub4%e'e!
t!ansactions "!om a%% tem&o!a!+ tab%es an' inte!"ace tab%es
Run Bou!na% Im&o!t to im&o!t a%% 2ou!na% ent!ies in the ?LCINTERFACE tab%e) This inte!"ace tab%e
is use' to im&o!t 2ou!na%s "!om e1te!na% s+stems as we%% as "!om O!ac%e sub4%e'e!s such as AP-
AR- etc)))
C%ea! a%% inte!"ace tab%es
i) INV
ii) PO
iii) AR
i() AP
() FA
C%ea! the Fi1e' Asset inte!"ace tab%es9
. Run Post .ass A''itions to com&%ete%+ c%ea! the .ass A''itions inte!"ace tab%es an'
mo(e a%% assets into the FA mo'u%e
. Run im&o!t &!o!ams #"o! .u%ti4O! instances !un im&o!t &!o!am "o! each o!ani5ation$
Post a%% othe! sub4%e'e! t!ansactions to ?L
C%ose accountin &e!io's "o! sub4%e'e!s
6e%ete summa!+ tem&%ates- account hie!a!chies an' !o%%u& !ou&s- c!oss4(a%i'ation !u%es- an'
secu!it+ !u%es
Tu!n o"" Concu!!ent .anae!
Tu!n o"" O!ac%e A&&%ications Se!(e! to &!e(ent othe!s "!om %oin on to the 'atabase
The thi!'4&a!t+ so"twa!e too% main "unctiona%it+ was to &e!"o!m the actua% 'ata con(e!sion "!om the o%' COA to
the new COA st!uctu!e) The time "o! the con(e!sion usin the so"twa!e wi%% (a!+ base' on the si5e o" +ou!
O!ac%e 'atabase an' the numbe! o" !eco!'s that it wi%% u&'ate th!ouh the &!ocess) .otion Inte!nationa%0s c%ient0s
'ata con(e!sion too* a&&!o1imate%+ si1 hou!s to com&%ete)
A"te! the con(e!sion into ou! test instance- a numbe! o" &ost ste&s we!e !e/ui!e' to com&%ete the &!ocess) The
&ost ste&s wi%% (a!+ b+ com&an+ base' on the numbe! o" mo'u%es inc%u'e' in +ou! %icensin a!eement an'
uti%i5e' b+ +ou! com&an+) The "o%%owin tas*s we!e inc%u'e' in the &ost ste& &!ocessin- but the+ ma+ not be a%%
inc%usi(e base' on +ou! com&an+0s use o" the O!ac%e A&&%ications #(ani%%a (s) custom insta%%s$9
1. C!eate Financia% Statements
#7$
o A%% FS?s a!e 'e%ete' out o" the s+stem as &a!t o" the con(e!sion- this e""o!t ma+ be time con4
sumin "o! com&anies with hun'!e's o" FS?s- but I ha(e "oun' an a%te!nati(e to !ec!eatin each
o" the FS?s instea'
;) Run Financia% Re&o!ts to (e!i"+ con(e!sion was success"u% an' !econci%e amounts
o AP t!ia% ba%ance
o ?L T!ai% ,a%ance Summa!+
o FS?s #P!o"itDLoss an' ,a%ance Sheet$
3. C!eate Row O!'e!s
#;$
4. C!eate Content Set
#;$
5. C!oss Va%i'ation Ru%es Set4u&
@) Set o" ,oo*s : (e!i"+ t!ans%ation an' !etaine' ea!nins accounts
E) A%%ocation Ru%es Setu&s
A) Secu!it+ Ru%es
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8) Ro%%u&s Setu&
7F) ,u'et A%%ocations
11. .RO Co'es an' A%iases
#;$
7;) Location F%e1"ie%' chanes
13. Re4c!eate Pa!entDChi%' !e&o!tin Va%ues
#;$
14. Re4c!eate Re&o!t Sets
#;$
7<) 6isab%e a%% con(e!sion (a%ues o! o%' (a%ues in each sement
ACCOUNTS PAYA!E
1!. Ve!i"+ t!a'e %iabi%it+ 'e"au%ts in o&tions : AP Set4u&s : O&tions 4 Financia%s
7E) AP Ta1 Co'es : Setu& : Ta1 4 Co'es
7A) Ve!i"+ AP 4 Setu& Financia% O&tions 4 PO Rate Va! ?ainDLoss
78) Chane !e&o!tin entities "o! New Com&an+ Va%ues #AP Su&e! Use! : Setu& : Ta1 : Re&o!tin Entities$
;F) .o'i"+ the (en'o! sites "o! both US an' Cana'a to &ic* u& the co!!ect %iabi%it+ an' inte!com&an+ se4
ments "o! each site
iSUPP!IE"
Inte!net site : Va%i'ate the inte!net %in* is sti%% connecte'
ACCOUNTS "ECEI#A!E
;7) A%% Auto Accountin !u%es must be u&'ate' "o! 'e"au%ts
;;) Va%i'ate T!ansaction T+&e sementsD(a%ues "o! accounts
o On Re(enue Account : "o! US to CAN an' CAN to US t!ansaction t+&es : u&'ate the inte!com4
&an+ sement to co!!ect (a%ue acco!'in%+
;>) Recei(ab%e Acti(ities (e!i"ication
;=) Ve!i"+ S+stem O&tions accounts
o T!ans An' Custome!s : Autoin(oice 'e"au%t account sement
o Tunin Sement on T!ans an' Custome! tab : chane "!om FIRCAccount to CLIENTCAC4
COUNT
PU"CAS$IN%
;<) U&'ate A&&!o(a% ?!ou&s : Setu& : A&&!o(a%s : A&&!o(a% ?!ou&s #,oth US an' CA6$
;@) Ve!i"+ Financia% O&tions- Recei(in an' Pu!chasin O&tions
;E) Ve!i"+ Emai% Noti"ications a!e wo!*in at ?o Li(e
&I'E( ASSETS
;A) FA ,oo* Cont!o%s : 'e"au%t accounts "o! a%% boo*s #ta1 an' co!&o!ate boo*s$
;8) Asset Cateo!ies : (a%i'ate a%% e1&ense account 'e"au%ts
$U)AN "ESOU"CES
>F) O!ani5ation Name chanes that inc%u'e 'e&a!tment G
>7) Hie!a!ch+ name chanes that inc%u'e 'e&a!tment G
>;) Position Names : on%+ acti(e ones
33. >
!'
&a!t+ &a+!o%% s+stem : !e/ui!e' sini"icant chanes with inboun'- outboun' inte!"aces
*O"+ IN P"OCESS
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>=) Ve!i"+ 3IP Accountin C%asses un'e! Setu& "o! ma&&in (a%i'ations
O"(E" )ANA%E)ENT
><) Va%i'ate the "o%%owin9
o Shi&&in : Setu&4Shi&&in Pa!amete!s : Shi&&in T!ans tab
o Shi&&in : Setu&4O! Pa!amete!s : inte! o! in"o!mation
IN#ENTO"Y
>@) Items : Va%i'ate sam&%e o" items "o! chanes to CO?S an' Sa%es accounts
I!! O& )ATE"IA!
>E) Va%i'ate Coste' Resou!ces : Routins : Resou!ces #Abso!&tion an' Va!iance Accounts on a%% !e4
sou!ces use'$
COST )ANA%E)ENT
>A) Ve!i"+ O(e!hea' Abso!&tion CCI6s #Pi&e O(e!hea'$
>8) Ve!i"+ Cost ?!ou&s
=F) Ve!i"+ 3IP Accountin c%asses
=7) Ve!i"+ Subin(ento!ies Summa!+ accounts
=;) Ve!i"+ shi&&in netwo!*s #T!ans"e! C!e'it an' Recei(ab%e 'e"au%ts$
"EPO"TIN% ,(ISCO#E"E"- C"YSTA!- CUSTO) T$AT "E&E"ENCE ACCOUNT (ETAI!S.
We kept a separate worksheet for all Custom items related to the project that needed updating during
the post step processing effort.
#7$
: Pa!t o" this &!o!am to mo(e FS?s is custom an' &!o&!ieta!+ to this &!o2ect
#;$
: The too% use' to ma*e this mo!e e""icient is &!o&!iet+ to .otion Inte!nationa%
The en' to en' e""o!t inc%u'e' si1 !oun's o" testin an' too* a&&!o1imate%+ si1 to eiht months to com&%ete)
The !oun's o" testin inc%u'e'9
7) Initia% test o" so"twa!e
!. ;
n'
!oun' o" testin with so"twa!e an' i'enti"ication o" &!e an' &ost ste& &!ocessin e""o!ts a%on with
custom ob2ects- !e&o!ts- etc)
>) Unit an' Inte!ation Testin
=) Use! Acce&tance Testin
<) Re!ession Testin
@) Fina% Roun' &!io! to P!o'uction cuto(e!
On%+ !oun's >- = an' < in(o%(e' use!s com&%etin thei! own tests) The othe! !oun's o" testin in(o%(e' on%+ IT
sta"" an' a consu%tant) T!ainin was &!o(i'e' to *e+ Finance 6e&a!tment use!s an' to those that actua%%+ co'e'
in(oices o! !e&o!te' usin the ?L sements) The c%ient0s Finance 6e&a!tment !e/ueste' to not &!o(i'e "o!ma%
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t!ainin to use!s as the+ &!e"e!!e' to &!o(i'e them with the new com&an+- 'e&a!tment an' account (a%ues 'ue to
&!e(ious issues the+ ha' encounte!e' with im&!o&e! co'in)
Pro/ect !essons
O(e!a%%- .otion Inte!nationa%0s c%ient ha' a (ani%%a en(i!onment an' 'i' not 'eman' as much e""o!t com&a!e' to
the e""o!t to !e4im&%ement O!ac%e COA to accom&%ish the same oa%s we 'i' on this &!o2ect) Essentia%%+ .otion
Inte!nationa% &e!"o!me' this &!o2ect with one "u%% time consu%tant "o! th!ee months) ,usiness use!s we!e !e/ui!e'
in man+ o" the ea!%+ e""o!ts an' testin on a %imite' basis) Howe(e!- a"te! the initia% testin- the+ we!e not
!e/ui!e' unti% the %ast (a%i'ation o" !esu%ts) The "o%%owin acti(ities too* the most time an' e""o!t b+ the &!o2ect
team as &a!t o" the COA con(e!sion9
Sement .a&&in : 'o not a%%ow too man+ han's in this e""o!t as e(e!+one wants to see 'ata in mu%ti&%e
wa+s to et the in"o!mation the+ nee') This e""o!t was b+ "a! the most 'i""icu%t an' too* the %onest o"
an+
Financia% Statements
I'enti"ication o" custom ob2ects- !e&o!ts
Pro/ect enefits
.otion Inte!nationa%0s c%ient was ab%e to im&%ement a new COA to bette! t!ac* "inancia% &e!"o!mance in a
conso%i'ate' %oba% o!ani5ation) 3e accom&%ishe' this oa% in a "!action o" the no!ma% cost !e%ati(e to a new
im&%ementation)
.otion Inte!nationa%0s c%ient a%so en2o+e' the "o%%owin bene"its9
A%% %ine '!i%% 'ownDbac* ca&abi%it+ wo!*s a"te! con(e!sion "!om mo'u%e to mo'u%e
No %oss o" histo!+ o" an+ *in'
Less cost%+ an' mo!e e""icient than !e4insta%% o" O!ac%e A&&%ications
Ve!+ minima% use! im&act outsi'e o" %ea!nin new sement ma&&in (a%ues
O!ac%e su&&o!t cont!acts not (io%ate'
Conclusion
This &!o2ect was a successH Now .otion Inte!nationa% has a !oa' ma&- too%s- an' tem&%ates "o! othe! c%ients to
"o%%ow who wish to accom&%ish the same oa%s)
Has +ou com&an+ out!own +ou! cu!!ent COAI 6oes conso%i'ation !e/ui!e a new COA st!uctu!eI ,e"o!e now-
+ou wou%' ha(e to wait "o! +ou ne1t ma2o! u&!a'e to consi'e! chanes to +ou! COA) You no %one! nee' to
'e%a+ the business bene"its o" u&'atin +ou! COA)
COPYRIGHT 2009 MOTION INTERNATIONAL #
A0out the Author
.atthew A'e%man is a Senio! Financia% Ana%+st with .otion Inte!nationa%) .!) A'e%man has o(e! E +ea!s
e1&e!ience in 'esinin an' im&%ementin O!ac%e ERP s+stems an' !e'esinin business &!ocesses "o!
nume!ous com&anies in !etai%- se!(ice an' manu"actu!in in'ust!ies) .!) A'e%man has se!(e' as T!aine!-
P!o2ect Lea' an' Sub2ect .atte! E1&e!t on se(e!a% O!ac%e A&&%ications &!o2ects)
A0out )otion International
.otion Inte!nationa% is an e1&e!ience'- e1c%usi(e%+ O!ac%e &!o"essiona% se!(ices com&an+ that wo!*s with
manu"actu!in an' !etai% "i!ms with inte!nationa% o&e!ations) One o" (e!+ "ew "i!ms that o""e!s hih4ca%ibe!
mu%tinationa% O!ac%e e1&e!tise wo!%'wi'e- it has 'e(e%o&e' se(e!a% &!o&!ieta!+ best &!actices- too%s an'
metho'o%oies to ensu!e success"u% 'e%i(e!+) Hea'/ua!te!e' in .innea&o%is- .otion has 'e%i(e!e' O!ac%e
&!o2ects on "i(e continents) Its c%ients inc%u'e some o" the wo!%'0s %a!est %oba% com&anies)
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
This 'ocument has been c!eate' an' &ub%ishe' b+ .otion Inte!nationa%) This 'ocument is co&+!ihte' &!o&e!t+ o" .otion Inte!nationa% with
a%% !ihts !ese!(e') This in"o!mation ma+ not be co&ie' in who%e o! in &a!t without the &!io! w!itten consent o" the co&+!iht owne!)
This 'ocument is "o! in"o!mationa% &u!&oses on%+) The in"o!mation in this 'ocument !e&!esents the (iew o" .otion Inte!nationa% as o" the
'ate o" &ub%ication an' is sub2ect to chane)
.OTION INTERNATIONAL .AKES NO 3ARRANTIES- EJPRESS OR I.PLIE6- AS TO THE INFOR.ATION IN THIS 6OCU.ENT)
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