Data Conversion Considerations for Microsoft Dynamics GP

As a software sales consultant, I spend a lot of time discussing the implementation process with our clients. Then we talk about data conversion. I must tell you that this is an area of discussion that always puts me on high alert. The reason is because of the cost and effort required to convert data. The other reason is that it is hard to quote. It isn’t an ‘all you gotta do is’ task. I am so pleased with the clients that only want master files and GL balances for two years. That is the easiest conversion and the most cost effective option. If the client wants to convert detail transactions, I then have to ask why. In most cases, these clients are manufacturers or distributors that need to forecast inventory and sales therefore having sales and purchasing history is critical to their business. Clients also think that it is an easy task, so why not have all the data available for look-up. There are several reasons to think through data conversion very carefully.

As a services company I realize the slant of my article is to reduce data conversion costs which does reduce our revenue. However, we want what is best for our clients even if we are leaving dollars on the table. I have outlined items to consider when converting data below.

Cut your ERP salesperson a break. Clients should not expect us to know exactly what it is going to cost to move your data to Microsoft Dynamics GP from Sage PFW, Epicor, or any other ERP system off the top of our heads. There is no easy answer unless there is no data conversion. We can look at the sizes of your company databases, what modules you want to convert, and give you a good number since we have done it so many times. However, I never provide this quote until I speak to our programming manager.

Clients are moving from archaic software with an equally out of date database. If we can get the data out in a readable format then we can put it in our standard Excel templates then use Integration Manager or eOne’s SmartConnect to move the data to Dynamics GP. The decision to clean up the master files is often made to eliminate garbage and legacy mistakes. Sometimes we do recommend changing item keys, vendor and customer short names to help with reporting. Data clean-up has to be done by the clients’ staff which takes time and effort.

If detail transactions will be converted and we are going to clean up the master files the task gets even more time consuming. If we delete or change some of the master files what becomes of the transactional data? It has to go somewhere or the conversion can not be reconciled to the old system. Before we go live with our clients a sign off has to be completed that the data does balance with the legacy system. Converting detail transactions can be accomplished and we have done it many, many times since we work with a lot of manufactures and distributors.

Rather than convert detail transactions and the legacy system can no longer be supported, we utilize a data warehouse such as EZ Import that allows for sales transaction and purchase order lookups.

We recommend that companies only convert open invoices and purchase orders. These can be entered during go live to further ensure that end users have the practice needed to do their jobs.

Chart of Account changes are also very common and this is the perfect time to make this change. Again a cross reference table is setup to ensure the data flows across properly. This is not a difficult conversion.

When converting data ask your team and your ERP consultant for advice on what is the best for your company.

Issues to Consider

Do you have the budget for converting detail sales and / or purchasing transactions? Why do you need detail transactions? Do you or your staff have time to reconcile and prove out the transactional data in the new system? Seriously, this can get expensive for a mid-sized company; 40K is not unheard of. Will your legacy system be available for the next 6 to 12 months for look-ups? Are your financial reports hard to create and your COA is difficult to manage? Then consider a new COA. What does your auditor need to see? We request that the legacy financial reports be printed prior to go live for auditing purposes. We also require that all sub-modules and the GL are reconciled to the legacy system before go live. These reports will also be available for audits. Now I am not an auditor or CPA so please understand that this is not professional advice. Master files should nearly always be converted. Begin thinking about changes you would like to your vendor, customer, and item key identification scheme.

By Nancy Phillippi with Custom Information Services (CIS), Microsoft Dynamics GP Partner based out of North Texas. Your feedback and comments are welcome. Contact Nancy at nphillippi@customis.com or by phone at 817-640-0016 x 109.