The Do's and Don'ts of Fixing FP&A While ERP is in Flux
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The document discusses strategies for addressing financial planning and analysis (FP&A) during an ERP transition, emphasizing that organizations should not delay improvements. It advises establishing a high-level organizational structure, minimizing automation of integrations, and leveraging Adaptive Insights for reporting continuity and flexibility. Key recommendations include focusing on operational models, using mapping tools to facilitate changes, and maintaining ongoing planning despite ERP system changes.
![© 2017 Adaptive Insights | Confidential & Proprietary 7
1. DO Get the high level structure set
A sense of what the high level org structure -- entities, departments, segments, even [rough] chart of accounts -- will look like going
forward is helpful as it influences how planning models and reports are built. Teams usually have a good idea of this structure even at the
outset of an ERP project, as i) many times this was a driver of ERP change or ii) it's not being impacted significantly (e.g. you’ll still report
OPEX by S&M, G&A, R&D even if you need to remap some of the chart of accounts underneath).
2. DON'T Sweat the detailed chart of accounts
Planning and reporting systems like Adaptive Insights are designed with the knowledge that the GL is a living system and that the level of
granularity an organization plans, reports and tracks actuals in the GL are not always 1:1 or static. As such, they are built to enable
mappings to be changed and new accounts to be added.
3. DON'T Waste time automating integrations
Obviously, it doesn't make sense to invest energy building and ironing out data integrations to systems that are being sunset or changing.
Instead, use flat file uploads to get started.
4. DO Build the underlying top-line and operational models
Teams tend to do a lot of operational modeling (top-line, headcount) that is quite strategic to the business to plan and model, but that can
be very disconnected from the GL. It's worth getting these thought through and built out in Adaptive Insights ahead of time with the
knowledge that they can be wired into the financial model later.](https://image.slidesharecdn.com/dosdontsoffixingfpa-171207195505/85/The-Do-s-and-Don-ts-of-Fixing-FP-A-While-ERP-is-in-Flux-6-320.jpg)
The Do's and Don'ts of Fixing FP&A While ERP is in Flux
- 1. of Fixing FP&A While ERP is in Flux November 2017
- 2. Do I have to wait on ERP to fix FP&A? © 2017 Adaptive Insights | Confidential & Proprietary 3
- 3. © 2017 Adaptive Insights | Confidential & Proprietary 4 Concerned about resource capacity and wasting energy on something that will need re-work. Literally, hundreds of our customers have wrestled with this question. And the answer is…
- 4. © 2017 Adaptive Insights | Confidential & Proprietary 5 No. But there are some things you’ll want to consider…
- 5. © 2017 Adaptive Insights | Confidential & Proprietary 6
- 6. © 2017 Adaptive Insights | Confidential & Proprietary 7 1. DO Get the high level structure set A sense of what the high level org structure -- entities, departments, segments, even [rough] chart of accounts -- will look like going forward is helpful as it influences how planning models and reports are built. Teams usually have a good idea of this structure even at the outset of an ERP project, as i) many times this was a driver of ERP change or ii) it's not being impacted significantly (e.g. you’ll still report OPEX by S&M, G&A, R&D even if you need to remap some of the chart of accounts underneath). 2. DON'T Sweat the detailed chart of accounts Planning and reporting systems like Adaptive Insights are designed with the knowledge that the GL is a living system and that the level of granularity an organization plans, reports and tracks actuals in the GL are not always 1:1 or static. As such, they are built to enable mappings to be changed and new accounts to be added. 3. DON'T Waste time automating integrations Obviously, it doesn't make sense to invest energy building and ironing out data integrations to systems that are being sunset or changing. Instead, use flat file uploads to get started. 4. DO Build the underlying top-line and operational models Teams tend to do a lot of operational modeling (top-line, headcount) that is quite strategic to the business to plan and model, but that can be very disconnected from the GL. It's worth getting these thought through and built out in Adaptive Insights ahead of time with the knowledge that they can be wired into the financial model later.
- 7. © 2017 Adaptive Insights | Confidential & Proprietary 8 5. DON'T Bother with too many historicals Most companies will bring over one or two years of GL balances depending on time and money. Transaction details are often left behind due to structural changes and conversion issues. Adaptive Insights can become the system of record for historical data, dramatically reducing the amount of data needed to go into new ERP, reducing the cost / time of implementation on the ERP project. 6. DO Use as a mapping and audit tool Most ERP upgrades and re-implementations will involve a new chart of accounts. When that happens, companies will have to convert or map the old to new. While excel works for the mapping, housing it somewhere and then applying it to your data is best done on a centralized platform where everyone can access it. This applies to both the results and the mapping itself which Adaptive Insights can facilitate via attributes. This mapping also negates rework as the mapping table will be a critical part of the ERP implementation and will need to happen anyways. Leveraging it will assist in keeping Adaptive Insights in sync with the ERP. 7. DO Use for reporting continuity Because data from both the old and new ERP can be easily imported, mapped and manipulated, Adaptive Insights can provide both accounting and finance a single reporting environment for pre & post data as well as for new vs old allocations. 8. DON'T Wait Switching ERPs does not mean that the organization stops planning, or that the board and management don't need reports. The show must go on. We’ve had customers, who initially waited on overhauling FP&A, come back later and say that they regretted the decision to suffer through with Excel for another 1-2 years as the ERP project ran over. Don’t miss out on the ‘quick win.’
- 8. © 2017 Adaptive Insights | Confidential & Proprietary 9 DON'T wait on implementing FP&A. Adaptive Insights can be used ‘standalone’ with manual imports, and integrated later on. When we implemented both, we went live with Adaptive Insights first to start our budget cycle. Systems Finance Lead, Canadian Environmental Non-Profit
- 9. © 2017 Adaptive Insights | Confidential & Proprietary 10 Definitely DON’T wait - we were in the middle of a merger with two ERPs needing to be combined into one. Adaptive Insights proved brilliant at combining the data to report actuals during the interim period. FP&A Manager, Top 100 International Law Firm
- 10. © 2017 Adaptive Insights | Confidential & Proprietary 11 There is no reason to wait. You can always populate the COA through other methods. Adaptive Insights is super flexible and can adjust pretty easily to any design changes you make later on. Finance Director, Project Management Software Company
- 11. © 2017 Adaptive Insights | Confidential & Proprietary 12 DO set up the organizational level structure so that reporting is meaningful. The ERP system can then mirror the Adaptive Insights organizational structure. FP&A Manager, +150K Member Dental Association
- 12. © 2017 Adaptive Insights | Confidential & Proprietary 13 To us, understanding the chart of accounts/org structure was key. Once we had that down we were able to move forward with Adaptive Insights even while still implementing the ERP system. Sr. Finance Manager, NYC Employment Non-Profit
- 13. © 2017 Adaptive Insights | Confidential & Proprietary 14 DO keep it simple - complexity makes the learning process harder and longer for other users down the line. DON’T concentrate too much on level access because it can be modified later after you know reporting needs. Financial Analyst, Multibillion-dollar US Clothing Brand
- 14. © 2017 Adaptive Insights | Confidential & Proprietary 15 DO have a roadmap for where you're headed with the project. DON’T simply convert legacy reports to the new ERP or Adaptive Insights but view it as an opportunity to reshape how reporting and analysis is done. CFO, US-based Steel Manufacturer
- 15. © 2017 Adaptive Insights | Confidential & Proprietary 16 Totally agree with DON’T bother with too many historicals. The data from 3+ years ago should be static and can be uploaded into an Adaptive Insights sheet rather easily. Sr. Financial Analyst, Auto Claims Software Developer
- 16. © 2017 Adaptive Insights | Confidential & Proprietary 17 DO be flexible and "Adaptive." Communication is critical as changes in scope and design will happen and if you are on top of the ERP implementation you will be able to adjust your Adaptive Insights model to accommodate the changes. Sr. Systems Analyst, +50K Staff Medical/Research Group
- 17. © 2017 Adaptive Insights | Confidential & Proprietary 18 DO have a general idea for your ERP structure to avoid excessive rework at a later stage. DON'T get bogged down in the details – currencies, thousands of accounts, etc. can all be added/modified later once the basic structure has been established. Sr. Financial Analyst, Renewable Energy Technology
- 18. © 2017 Adaptive Insights | Confidential & Proprietary 19 DO get input from end users and identify their needs and potential uses. Accounting Manager, National Music/Awards Association
- 19. © 2017 Adaptive Insights | Confidential & Proprietary 20 DO take advantage of Adaptive Insights’ structure update function to automate account renaming and reparenting. DO get a sandbox if making major model reviews and transitioning ERP systems. Sr. Manager, Top 25 CPA & Consulting Firm