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In my last Financial Reporting Cycle Close – SAP’s Product Suite, financial reporting cycle close overview, its three cycles and SAP’s products for each cycle was discussed. This one is specific to Local close. Any organization planning to implement fast close project should have implemented ERP across countries. ERP in place is again not sufficient. Following set of business processes and technology relevant questions can be posed to understand where the current ERP stands.

Local Close

Assuming all the above requirements are met in ERP, this provides opportunity for seamless data flow from ERP to Consolidation systems via ETL layer without need for manipulations. Another pertinent question during this evaluation process is whether master data for fields / objects other than accounting object master data are similar across countries / Globe?

ERP Integration with BW/BI

There could be more to this list, in my opinion, these play critical role in assessing ERP for fast close project implementation. 

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5 Comments

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  1. Former Member
    Hi, This covers a lot from the ERP/System standpoint and a very good starting point. From an implementation perspective, the main challenge is establishing some sort of standards across countries/entities and  ensure the necessary controls are performed during the close process so the data  ‘flows from ERP to consolidation systems’   are checked for ‘Quality at Source’
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    1. Former Member Post author
      Thanks Joe for your comments. You are very much right in stating that standardization needs to be established while the data flows to Data warehouse layer. I referred to this point in my blog in the following statement “Another pertinent question during this evaluation process is whether master data for fields / objects other than accounting object master data are similar across countries / Globe?”
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  2. Gregory Misiorek
    i wouldn’t necessarily put IFRS in the realm of technology. it’s more of a standards/compliance or process issue and the local close is more appropriately done on the local GAAP or statutory reporting basis.

    my $.02

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    1. Former Member Post author
      Hi Gregory,
      As my knowledge goes,even ERP systems needs to report IFRS compliant financial reports.(specially assets & its depreciation). In my opinion, though IFRS is standards/compliance,technology is the enabler for implementing the compliance.
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