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Table of contents
They determined that they would save maintenance costs and license fees by having a single global instance, resolve business process inconsistencies, and save operating expenses when all the data resided in a single data center. The instances and the set-up decisions from their initial implementations were not well documented.
They were able to quickly determine common customers, suppliers, and product lines so they were able to streamline their operations, understand their customers better, and leverage common business practices across the enterprise. They needed to Standardize Oracle Financial and Manufacturing Applications from both companies so that they could operate as a single company. They needed to quickly identify the differences in data between systems, standardize and consolidate data from the merged company, determine common customers, suppliers, and product lines so duplicates can be resolved, and obtain an accurate view of current and future operating requirements.
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After changing the chart of accounts and the calendar for the acquired company, the business users decided how the data was to be merged into the target. All transaction data from the acquired company was synchronized with the cleansed master data and moved into the target database. The history from both companies was preserved. There was no coding, and the instances were merged and went into production within days of the acquisition.
They identified the benefits as being able to operate as a combined entity quickly. They captured the economies of scope and scale and leveraged the combined information resources, reduced the cost of internal support services, and achieved process efficiencies and business synergies quickly. Over time, businesses undergo major changes — reorganizations, mergers, or divestitures. They develop new lines of business, set up global operations, or work in different ways to comply with new statutory and regulatory requirements. Similar to many of the companies that use our software, this global security software company was always going through major changes.
The problem is that as their business changed, their EBS was stagnant. In order to keep up with the changes, the security software company maintained thousands of spreadsheets, implemented a data warehouse, and used a middleware product to integrate a variety of systems. There were literally hundreds of people trying to determine what parts of their business were profitable. At first, the company was told that their only choice was to reimplement their EBS.
They were told that a reimplementation would take two years and about 50, hours of consultants. They were worried about the skill levels of the consultants, whether they would be able to accurately create what their future state would look like, and the project generally going over budget with the scope continually changing as the business changed.
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At the heart of the eprentise solution is a rules-based engine containing actions copy, merge, filter, and change and built in integrity rules that can be combined to affect changes to a relational database environment. The eprentise software provides testable, repeatable, rules-driven results, without custom coding. By allowing applications to be changed to meet your changing needs, eprentise provides the ability to recognize the financial rewards of business and technology initiatives quickly and reliably.
A large system integrator put each line of business into a separate primary ledger in their E-Business Suite. Realizing that the same customer may use each of their ERP implementation services, their security services, and their data warehouse services, they decided to merge their ledgers.
The chart of accounts, the currency, the calendar, and the accounting conventions were the same for all 9 of their ledgers. They created operating units for each of the lines of business to keep the transactions separate and to maintain controls within the organization. They used Multiple Organizations Access Control in R12 to enable cross organizational processing and reporting on operating units in their subledgers. A pharmaceutical company is upgrading to R12 in their Oracle E-Business Suite because of the capability to have multiple ledgers. Their current set up had a separate set of books for each of the European countries because they implemented before the Euro was the European standard currency.
Now, in R 12, they can record all transactions in a single ledger because the currency is the same. However, in order to use a single primary ledger, they need to have a single chart of accounts. The company created their new chart of accounts, and mapped each of the seven charts of accounts to the new chart of accounts.
In two of the segments, they made the segments large enough to allow each country to have its own range of values. As a side, they are able to close their books each month in 3 days instead of the 12 days that it took before the chart of accounts change. You are acquiring a new plant and want to consolidate the inventory into your existing inventory. A manufacturing firm recently acquired a plant and needed to integrate the new inventory with its own.
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Not only did the inventoried products need to be added to the new system, but the historical data from the acquired plant was necessary in order to allow the acquiring company to continue to provide accurate forecasting data to management. A pharmaceutical company has been acquired. The old company used a fiscal calendar so period 1 ended on January 28 and the new parent company uses a monthly calendar with period 1 ending on January It did the same for all the periods in the year.
After changing the start and end dates for the GL periods, they used eprentise to synchronize the Fixed Assets calendar, the project accounting calendar, and the inventory calendar to the GL calendar. Everything tied out to the penny with the new calendar. For many solutions, it runs one time, propagating all changes throughout your existing EBS data and then is removed from the EBS instance. It gives you the ability to make changes to your EBS that used to be available only through a reimplementation.
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Retrieved June 17, July 7, August 30, Retrieved June 15, Nicholas April 20, Retrieved October 4, In the vast majority of cases, IT consolidation — and in particular database consolidation — while providing some value, falls far short of its potential to positively impact the business side of the enterprise.
According to research carried out by Enterprise Applications Consulting EAC , most examples of database consolidation focus only on the benefits of the technical aspects of consolidation: With the consolidation of database licenses, a reduction in personnel and hardware costs are the predominant results. These examples ignore the benefits of a business consolidation — one that goes beyond typical technical consolidations by consolidating current and historical data and business processes — that could deliver significant value to the business side of the enterprise as well.
Most industries are seeing a need for their ERP systems to be more flexible than they are today. Businesses can change their Chart of Accounts and bring in all transaction history over a weekend while maintaining relational integrity. Users also can model potential business initiatives in order to gauge the financial impact ahead of time.
The client needed to change its chart of accounts structure throughout its entire company in order to implement a single global COA. The only other solution was a reimplementation. There were 5 distinct COA structures used in 23 different countries. Are you involved in Mergers, Acquisitions, Divestitures?