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Best practice for migrating financial balances, including historic trial balances

  • 1.  Best practice for migrating financial balances, including historic trial balances

    TOP CONTRIBUTOR
    Posted 26 days ago
    I found this article titled How to Migrate Financial Balances to Dynamics 365/AX: A Step-by-Step Guide, and I would like to know if the process detailed there follows best practices for migrating balances from a legacy system, or if I should take a different tack.

    To summarize:
    1. Create "conversion" G/L accounts
    2. Open months from beginning of year to today
    3. Post trial balances month by month up to the current month-end.
    4. Post reclassifying entry to zero out the accounts (using conversion accounts)
    5. Post details to the subledgers, offset by the conversion accounts.
    Thanks for any advice.

    ------------------------------
    Daniel Zook
    Director of IT
    Lehman's
    Dalton OH
    ------------------------------
    Digital Acceleration Binge Day.  January 28th 2021 | 11:00 AM - 2:00 PM EST


  • 2.  RE: Best practice for migrating financial balances, including historic trial balances

    TOP CONTRIBUTOR
    Posted 25 days ago
    Edited by Zvika Rimalt 24 days ago
    Yes
    The purpose of this approach is to make sure the sub-ledgers are fully reconciled to the general ledger when going live with the system.

    In theory, all balances (trial balance, open AP, open AR etc.) should come fully matching and reconciling but in reality very often this is not the case.

    This method pushes the differences, if they exist, into the "clearing" ledger accounts, where they can be handled/researched/resolved at a later time, instead of holding the go-live until fixed.

    You do not HAVE to do it that way, but in my experience most  customers, when explained the alternatives and the shortcoming/advantage of each option, choose this option.

    I usually use a slight variation of this approach - where I pre-re-map the trial balance into the conversion accounts, hence I do not need to re-classing the trial balance into the conversion accounts as a separate journal.

    ------------------------------
    Zvika Rimalt
    Functional Consultant
    Vancouver BC
    ------------------------------

    Digital Acceleration Binge Day.  January 28th 2021 | 11:00 AM - 2:00 PM EST


  • 3.  RE: Best practice for migrating financial balances, including historic trial balances

    TOP CONTRIBUTOR
    Posted 25 days ago
    Edited by Zvika Rimalt 25 days ago
    Just note that I browsed through the details of the blog post and I believe there is a small (but important) missing part there:

    The blog advises to in the example given to post trial balance balances for end of Jan, Feb, March
    However, it is also necessary to post end of previous year trial balance to the end of December, and execute the "year end" process.
    If you do not do that, your trial balance forms/reports will not show amounts in the "Opening Balance" column.

    ------------------------------
    Zvika Rimalt
    Functional Consultant
    Vancouver BC
    ------------------------------

    Digital Acceleration Binge Day.  January 28th 2021 | 11:00 AM - 2:00 PM EST


  • 4.  RE: Best practice for migrating financial balances, including historic trial balances

    TOP CONTRIBUTOR
    Posted 24 days ago

    Hi there,

    The conversion accounts is an interesting approach - I have not used it and personally wouldn't do it because if there is a difference in AR or AP before go live, it's going to be there after go live and most clients know why there is an out of balance.  The preference is to make it as easy as possible to trace information from your old system to your new system.

    Zvika brought up a good point about year end and opening balances if you are converting at a year end as well.  As part of the conversion, it's best to post all open AP, AR, bank, inventory as of the period end date before go live.  If you are mapping with new GL accounts, sometimes it is beneficial to put the old account in the description as you convert as well.




    ------------------------------
    Shirley Adams
    AKA, an HSO company
    ------------------------------

    Digital Acceleration Binge Day.  January 28th 2021 | 11:00 AM - 2:00 PM EST


  • 5.  RE: Best practice for migrating financial balances, including historic trial balances

    TOP CONTRIBUTOR
    Posted 21 days ago
    Thanks to everyone for your advice!

    ------------------------------
    Daniel Zook
    Director of IT
    Lehman's
    Dalton OH
    ------------------------------

    Digital Acceleration Binge Day.  January 28th 2021 | 11:00 AM - 2:00 PM EST


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