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8/13/2019 COA White Paper

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KEYSTOSUCCESSFUL

ORACLEAPPLICATIONS

CHARTOFACCOUNTCONVERSION


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WWW.MOTION-INTERNATIONAL.COM KEYSTOSUCCESSFULORACLEAPPLICATIONSCHARTOFACCOUNTCONVERSION

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

COPYRIGHT2009 MOTIONINTERNATIONAL 2


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The Challenge of Changing Oracle Chart of Accounts in a ProductionEnvironmentIt 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 : Inte!com&an+ : @ Futu!e : 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" Accountsi) C!eate new Accountin Ke+ F%e1"ie%'ii) Setu& sement st!uctu!eiii) 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 cen4te!$

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 ?LINTERFACE tab%e) This inte!"ace tab%eis 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%esi) INVii) POiii) ARi() 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 eacho" the FS?s instea'

;) Run Financia% Re&o!ts to (e!i"+ con(e!sion was success"u% an' !econci%e amountso 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) A%%ocation Ru%es Setu&s) Secu!it+ Ru%es



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8) Ro%%u&s Setu&7) ,u'et A%%ocations11. .RO Co'es an' A%iases#;$

7;) Location F%e1"ie%' chanes13. Re4c!eate Pa!entDChi%' !e&o!tin Va%ues#;$

14. Re4c!eate Re&o!t Sets#;$

7


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>=) Ve!i"+ 3IP Accountin C%asses un'e! Setu& "o! ma&&in (a%i'ations

O"(E" )ANA%E)ENT

>


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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 !essonsO(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 success 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 COA 6oes conso%i'ation !e/ui!e a new COA st!uctu!e ,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)

COPYRIGHT2009 MOTIONINTERNATIONAL #


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A0out the Author

.atthew A'e%man is a Senio! Financia% Ana%+st with .otion Inte!nationa%) .!) A'e%man has o(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)

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% witha%% !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)

Cor1orate $ead2uarters

United States

No!th%an' P%a5a

> Ame!ican ,%(' 3est Suite =;8 ; @7)@;

United +ingdom

48 Finch%e+ Roa'

?, 4 N377 TB Lon'on

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