Data Migration Strategy

GL Journals
Presenter’s Name
Presenter’s Title
Organization, Division or Business Unit
Month 00, 2022
Moving Data with Care and
Precision
We’re getting closer to the final technology configuration. But
first we must securely migrate legacy data. This is an exciting
yet complex process that must be handled with precision and
care. Follow the steps and note the considerations outlined in
this document to maintain security and reduce risk as you
migrate data to new systems.

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 S A F E H A R B O R S TAT E M E N T

The following is intended to outline our general product direction. It is intended for information purposes only,
and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decisions. The development, release, timing
and pricing of any features or functionality described for Oracle’s products may change and remains at the sole
discretion of Oracle Corporation.

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 1. Key Elements: GL Journals
2. Key Considerations
3. Key Decisions / Points to Note – GL Journals
4. Extraction Criteria : GL Journals
5. Key Pre-Validations for GL Journals Conversion
Agenda 6. Conversion Data Functional Validation
7. Data Validation/Reconciliation
8. Reports/Extracts for Data Validation/Reconciliation
9. Audit Considerations
10. FBDI Template - Walkthrough
11. Common Errors and Preventions
12. Conversion Steps and Timelines
13. Open/Close Issues

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Key Elements: GL Journals…

Item of Discussion Key Points Description and Example

• Accounting Calendar must • 1+ year history; go-live Jul 2014. First accounting period is Jan 2012 with Dec 2012 for
Time Period accommodate first historical period closing balance

• Balance Sheet accounts only • Assets, Liabilities and Equity accounts including closing retained earnings balance, e.g.
Opening Balance • Balance by “company” Cash, Prepaid Expenses, Receivables, Payables, Loans, Share Capital, Retained
• Closing balance of old system Earnings

• Net balance by “company” for each

Period Activity • Debit or Credit balance by GL code combination
period after opening balance

• Accounting Currency • A Foreign Currency bank accounts to be revalued monthly to USD

• One time adjusting entry for foreign • After conversion, the ending balance is in USD
Currency currency denominated balances for • Manual journal to “move” balance to Foreign Currency by using an offset account so
future Revaluation purposes that going forward, the account balance can be revalued at month-end.

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… Key Elements: GL Journals

Item of Discussion Key Points Description and Example

• Accounting Calendar must • 1+ year history; go-live Jul 2014. First accounting period is Jan 2012 with Dec 2012 for
Time Period accommodate first historical period closing balance

• Balance Sheet accounts only

• Assets, Liabilities and Equity accounts including closing retained earnings balance, e.g.
Opening Balance • Balance by “company”
Cash, Prepaid Expenses, Receivables, Payables, Loans, Share Capital, Retained Earnings
• Closing balance of old system

• Net balance by “company” for each

Period Activity • Debit or Credit balance by GL code combination
period after opening balance

• Accounting Currency • A Foreign Currency bank accounts to be revalued monthly to USD

• One time adjusting entry for foreign • After conversion, the ending balance is in USD
Currency currency denominated balances for • Manual journal to “move” balance to Foreign Currency by using an offset account so
future Revaluation purposes that going forward, the account balance can be revalued at month-end.

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Key Considerations

Item of Discussion Key Points Description and Example

• Journal Details of the Historical

periods till cut off date can be
Conversion Before Cut off converted well in advance before
going live.

• Journal Details after the cut off date

Conversion After Cut off should be converted during the
cutover period.

• Disable Cross Validation Rules and

Cross Validation Rules Approval Rules (if any configured)
during conversion.

• Disable or End Date Old Chart of

Account Segment value(s) and
After Historic Conversion Account Combinations after
Completing Conversions.

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Key Decisions / Points to Note – GL Journals

Source Systems for GL Journals Identify the Accounting Date that will be used for Open Balance
conversion
• Identify the source systems that brings open balances for
each of the Business Unit. • The best practice is to use the same accounting date as of
Source system
Primary ledgers, Secondary ledgers and Reporting
ledgers • This will facilitate easy reconciliation with Source system

• Identify the number of ledgers that are available in Source Disable Document Sequence and Accounting Sequence for
system and decide its mapping to target ledger. journals before Conversion and enable after Conversion is
complete
Identify the list of Currencies to be configured for
exchange rates Identify the Cross validation Rules for restricted Account Code
Combinations
Identify the types of GL Accounting Calendars to be
configured and their format Supporting Reference/Descriptive Information and
Reconciliation Reference
Chart Of Account structures
• Identify the additional non-financial information that needs to
• Identify and finalize the Global Chart Of Account structure,
be brought along with each of the Source account balances as
example, number of segments, size, etc.
Supporting Reference/Descriptive Information in GL.
• Number of Regional COA structures and their Mappings to
• Identify the reconciliation reference in source system, which
Global COA
needs to be attached to each of the source account balances.

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Extraction Criteria: GL Journals

Topic Key Points Implications

Beginning period (go forward only) • Accounting Periods Setup

• • If using Translation, first translation period must not be the first
GL Historical Periods • Balance Level Currency Translation existing accounting period

• Opening Balances Balances roll forward correctly for reconciliation

• Net Activity Balances •
GL Balances and/or Detail Journals • Volume of data (balances versus details)
• Detailed Journal Lines from Source

• GL Accounts • Map legacy system accounts to Fusion GL accounts

Mapping • Other Attributes, e.g. Payment Terms, Supplier Type • Map lookup of attributes from legacy to Fusion

Data Cleansing • Avoid duplication, e.g. 2 Accounts with similar names may be 1 Account • Quality of converted data

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Key Pre- Validations for GL Journals Conversion

• GL configurations including Org structure, COA etc. are in place. Segment Values
shouldn't be a parent value and it should not be disabled or end-dated.
• Accounting Period is open for the accounting date.
• Currency conversion rates are loaded for all the required dates for conversion, in
case of foreign currency Journals
• Journal Sources and Journal Categories should exist in the System.
• The Ledger ID value need not be provided. Instead of that as per the Oracle
configurations, the "Ledger Name" has to be populated in a different column in the
Journal Import Template. The "Ledger Name" is recommended to be populated
instead of Ledger ID.
• Recommended to bring in the Entered Debit and Entered Credit Amounts from the
Legacy System.
• All dates should be in YYYY/MM/DD format.
• Entered Debits should equal Entered Credits and Accounted Debits should equal
Accounted Credits. In case of journals in the Ledger Currency, the Entered
Debit/Credit should be same as Converted Debit/Credit.
• Provide the Journal Entry Reversal Flag in REFERENCE7 if the journal must be
reversed and Reversal Criteria Set is not used. Journal Reversal Method
Pre-Validation Guidebook is
(REFERENCE9) and Journal Entry Reversal Microsoft Excel
Period (REFERENCE8) should be populated
attached here
if REFERENCE7 is Y. Worksheet
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 Data Validation
OCS is responsible for doing detailed validation of below
items.

• Compare retained earnings opening balance in first period

and ending balances for each fiscal year end

• Compare monthly trial balance reports

Data Validation / • Compare monthly balance sheet and income statement
Reconciliation reports

• Review a sample of detailed journal entries for accuracy –

journal name, description, accounting date, amount, GL
accounts, etc.

Reconciliation
Client is responsible for doing detailed reconciliation.
Reconciliation includes detailed validation of data in the
source system with the data loaded in ERP cloud.
Reconciliation includes following tests:

• Validate the details of account balances with the source

system

• Reconcile balances as per COA mappings with source

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Reports/Extracts for Data Validation/Reconciliation

Cloud GL Reports (after successful import/conversion):

• Run non-standard reports from Cloud tools like FR Studio (Balance sheet, P&L) to validate the GL account balances
• Run standard GL reports
o Account Analysis Report
o General Ledger Trial Balance Report

Cloud Accounting Reports

• Run below reports to reconcile GL balance with Subledger:
o Subledger to General Ledger Reconciliation (Refer AP/AR deck for exact report names)

User review in Cloud General Ledger

• Review a sample of Journals/Journal Batches for accuracy – Journal Source, Journal Category, date, amount, etc.

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Reports/Extracts for Data Validation/Reconciliation

Reconciliation Metrics
• Reconciliation metrics for quantity and control totals can be documented in the given format.

Count Reconciliation
Data File System
Journal Batches
Journal Headers
Journal Lines
Journal References in
any

Control Total Reconciliation

COUNT US$
GL Trial
Data File System Data File
Balance
Control Total
Business Unit wise Totals
Cost Center wise Totals
Natural Account wise Totals
Code Combination wise Totals
Any other specific Segment wise
Totals

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 Audit Considerations

Retain source data file Retain all standard and Retain reconciliation Retain Retain all
along with Business custom conversion file conversion mapping details
Confirmation for the reports (Refer to data • The conversion related
validation proofs used in data
extracted data validation/reconciliation reconciliation reports needs
and sign-off transformation
• The source date file having
slide for list of reports) to be retained for an agreed
references with during extraction
business confirmation needs • The conversion related period.
read access to with read access
to be retained for an agreed standard and custom reports
Auditors. to Auditors.
• The Auditors should have
period. from target system needs to be complete access to such files.
• The Auditors should have retained for an agreed period.

complete access to such • The Auditors should have

files. complete access to such files.

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FBDI Template - Walkthrough

*Journal Entered Entere Converte Converte Referenc Currency Currency

*Status *Effective Currency
*Ledger *Journal *Journal *Currenc Entry *Actua Segmen Debit d d Debit d Credit e1 Conversio Conversio
Code Date of Segment Segment Segment Conversio
ID Source Categor y Code Creation l Flag t1 Amount Credit Amount Amount (Batch n Type n Date
Transaction 2 3 4 n Rate
y Date Amoun Name)
t

The sample FBDI file is embedded Microsoft Excel ro-Enabled Works

here:

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Common Errors and Preventions…
Sl
Error Resolution
#
1 Incorrect Ledger Name Ledger name should match with System configured name. It should not exceed 30 characters.

Period name should match with System configured name. Conversion Period should be either in
Incorrect Period Name/ Closed Period status
2 ‘Open’ status or ‘Future Enterable’ status

3 Incorrect Date format Date should be in YYYY/MM/DD format

Incorrect Currency Code

4 Currency Code should match with System configured code. It should be enabled and not end-dated.

If a Journal has a different currency from the Ledger currency,

5 Currency is not same as Ledger Currency In such cases, Currency Conversion Type and Date needs to be selected. If Type is selected as
"User", then Currency conversion rate should be specified in the FBDI sheet.

6 Incorrect Journal Source/Category Journal Source/Category should match with System configured name

COA combination should match with system configured values/combination. The COA code
Invalid COA code value or combination/ Restricted COA code
7 combination should not violate any valid CVR rules applicable for conversion.
combination

Insufficient User Access to Roles and Ledgers The User should have sufficient privileges to create journals
8

Amount should have the same digit precision as defined at the currency
9 The entered amount does not have the correct currency precision

The DR side and CR side amounts should balance in Entered and Accounted Currency, for each
Unbalanced Journals
10 journal, unless a Suspense account is configured to auto balance

Interface Group Identifier ( column BO in FBDI) should be a "NUMBER". Also, Provide unique inteface
11 Incorrect Group Identifier group identifier for each file

The Issue checklist is attached here.

Microsoft Excel
Worksheet Confidential – © 2022 Oracle Internal/Restricted/Highly Restricted
 Conversion Steps and Timelines

Day 5 Day 4 Day 4 Day 4 Day 3 Day 2 Day 1 Day 0 Day 0

1 2 3 4 5 6 7 8 9
Extract & Receive Pre-Import Import GL Validation Resolve Reconciliati Create/ Reverse AP
Validate Data Validation Journals in Errors & on Import Journals in
Data Extract ERP Cloud Reload data Journals and GL
post in GL

Notes
• Pre-Import Validation - Load to Interface and run sql for major errors, configuration pre-requisites
• Days are indicative and will be modified based on the scope and data volumes
• For each conversion cycle, data changes up to 2 iterations are expected and planned for

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Open/Closed Issues

ID Issue Resolution Responsibility Target date Impact Date

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Thank you.

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