INFOR XA ENTERPRISE FINANCIALS

Implementation Considerations

TOPICS

• Overview

• Enterprise Financials entitlement

• XA R9.2.X upgrade – the project before the project

• GL Chart of Accounts re-design

• Company structure and currency complexity

• Sales taxes

• Process changes and support from interfacing applications

• Finance customizations and tools – impact analysis, file structure changes, elimination/modification

• Functions not yet migrated

• Conversion tools

• Recommend next steps

• Q&A

OVERVIEW

WHAT IS ENTERPRISE FINANCIALS?

• Two primary components – GL and AP/AR/Cash/Tax

• All functions besides GL are grounded in IFM function and supporting tables –

user interface new to all XA users

• EGL provides advanced GL functions including support for an intuitive chart of

accounts - new to all XA users

• Except for certain limited functions that will be converted later, all functions

are PowerLink (green screen IFM functions disabled)

• PowerLink interface supports enhanced function

• As NetLink is rounded out, it will become a viable interface

WHAT IS ENTERPRISE FINANCIALS?

• Enterprise Financials is not AM Financials with a better interface. This implies the elimination of antiquated AM Financials function:

• This Year/Last Year GL buckets replaced with a continuous summary

• All GL transaction detail in a common file – no TEMGEN/CURHIS

• Batch processing is completely optional eliminating a need to remove “bad” transactions from a batch

• Flexible GL periods – support for non-calendar fiscal year & 4-4-5

• No requirement to maintain unwanted format 0 GL report reports

• Far better drill-down/through capabilities to related transaction data

KEY REASONS TO MIGRATE

• It’s a better long-term solution - enhanced core function supported by future Infor XA architecture, ability to extend

• Enterprise Financials will be the single go-forward XA core financial module

• Future Infor enhancements will either become imbedded or integrate with Enterprise Financials

• Includes financial planning/reporting tools (dEPM), BI, and in-context analytics

• Other possibilities include functions such as fixed assets

• While the exact timeline is TBD, end of life for both AM and IFM will be announced

ENTITLEMENT

ENTITLEMENT

• Simply put, entitlement to IFM = entitlement to Enterprise Financials

• If not entitled, speak with your affiliate regarding upgrade options

INFOR XA R9.2.X UPGRADE

INFOR XA R9.2.X UPGRADE

• R9.2.X upgrade must happen before Enterprise Financials project

• Changes to Enterprise Financials programs and conversion routines drives need for latest level

• R9.2.1 - base R9.2 + three ptf bundles + ? (Q4 2017 release)

• There are additional ptf’s over R9.2.1 which hopefully/likely will be bundled

• Create a representative (including customizations) test environment with current financial package and upgrade, followed by full cycle testing of this environment

• If capacity to create an LPAR (or separate iSeries) exists, it is recommended

• Upon successful testing, upgrade production environment

• Create a representative R9.2.X test environment as a baseline for the Enterprise Financials project

INFOR XA R9.2.X UPGRADE

• Current level vs. 9.2 drives the effort

• High number of 9.2 PTF’s

• Significantly above normal object impact

• Infor recommends using PUI (Product Update Information) to manage the PTF

process

INFOR XA R9.2.X UPGRADE

• Environment baseline analysis

• Prep – analysis review, data cleanup, 3rd-party software, validate system save, contingencies

• XA R9.2 test environment (outage(s) required)

• Copy from base and upgrade

• XA modified code

• Test library list configuration

• Logical file/view re-build

• Queries

• Re-gen/re-compile user exits, remove hard-coding

• 3rd-party app install/configuration

INFOR XA R9.2.X UPGRADE

• Test Environment Validation

• Production/Live environment (outage needed) – system saves, de-configuration of old XA environments, same/similar migration process as test, user validation

• Cleanup - final removal of data libraries that were de-configured earlier in project

• Update Global IDF environment to newest level (outage needed) - IDF R9.2 Global environment upgrade/install if not performed in earlier phase

GL CHART OF ACCOUNTS (COA)RE-DESIGN

GL COA RE-DESIGN

• Work backwards from the desired result

• Implied reporting, data extract, and interface (both to and from) changes

• To change or not to change

• When to change – before, during, or after migration

• Fix before implementation and map (better supported with future tools?)

• During initial implementation (more risky)

• After initial implementation with same COA (reporting re-work)

• COA re-design adds more effort beyond COA conversion

• EGL rules and logic (models and macros) must be changed from what the standard conversion provides

COMPANY STRUCTURE AND CURRENCY COMPLEXITY

COMPANY STRUCTURE & CURRENCY

• More companies and currencies (base/buy/sell) equates to more complexity

and added conversion effort (set-up and testing)

• The need for current AM Financials users to understand:

• The concept of multiple AP/AR ledgers and cashbooks

• New currency maintenance and conversion routines as brought forward from IFM

SALES TAXES

SALES TAXES

• Assuming the use of AM Financials tax function, AM Financials users will adopt

new function (initial set-up and on-going maintenance)

• Purchase/AP sales use taxes?

• Third-party sales tax routines (i.e. Avalara) – should work, but must validate

PROCESS CHANGES AND INTERFACES

PROCESS CHANGES AND INTERFACES

• The user journey from green screen to PowerLink/IDF

• Basic PowerLink understanding/training

• Mapping or replacing existing processes

• Transactions processed differently, with a different thought process that can be more intuitive

• Supporting IDF user definitions - workspaces, templates, etc.

• Provision time and resources for training, process change (including documentation), and testing

• Interfacing modules such as EPDM, PM/PUR, MM/IM, OBPM/PCC, CSM/COM reference AM GL account or IFM Unit/Nature

• What is needed to support an interface to a new GL COA?

• Complete transition from existing GL interfaces?

• Replacement of existing customizations and tools (next section)

FINANCE CUSTOMIZATIONS AND TOOLS

FINANCE CUSTOMIZATIONS & TOOLS

• GL entry upload – replaced with standard EGLi function

• Queries and other GL data extracts – transition to new files

• GL - IGGHH (Journal History), IGGLH (Journal History Detail Lines), IGGCR (Account Cross Ref), IGGTY (Books), IGGLA (Journal Line Analysis History), etc.

• AM Financials – everything changes

• Strongly consider replacing with PowerLink (most desired file relationships implied)

• Banking interfaces – validate IFM versions, replace AM Financials versions

• Examples include ACH/EFT, positive pay, etc.

• Interfaces to 3rd-party tools (i.e. credit/collection like Cforia) – validate/update interface

FINANCE CUSTOMIZATIONS & TOOLS

• Forms

• IFM – validate, but likely no changes

• AM - most should remain unchanged, however consider checks and AR statements

• Financial reporting

• Impact of GL chart of account change

• F9 interface change

• dEPM interface change

• Replacement or update of other 3rd-party reporting tools (i.e. Spreadsheet Server)

• Others?

FUNCTIONS NOT YET MIGRATED

FUNCTIONS NOT YET MIGRATED

• AP, AR, and cash function are grounded in IFM, leaving AM customers with

some requirement to understand the function

• Tax table maintenance, including 1099’s

• Nature and Unit/Nature (IFM GL account) combination maintenance

• Code tables – financial divisions, periods, settlement methods, aging structures,

document types, transaction types, charges, settlement terms

FUNCTIONS NOT YET MIGRATED

• Repeating transactions

• AP invoice accruals

• Inter-company accounting challenges

• Others – depends on desired function

• Bank reconciliation

• Average days to pay/period

CONVERSION TOOLS

IFM CONVERSION TOOLS

• Standard conversion tools are fully available

• Standard conversion is fairly straight-forward/push-button (assumes no GL

COA change)

• GL COA change will definitely increase the overall effort

• The bigger effort is process integration, training, and testing

AM FINANCIALS CONVERSION TOOLS

• Conversion tool is available for affiliates, but it is somewhat early days

• Pre-conversion audit tool

• Be prepared to respond to a volume of “data errors”

• Recommend execution as soon as a representative test environment is available

• While Infor envisions a history conversion tool, the availability date has

not yet been determined

LESSONS LEARNED

• Let the standard Efin conversion tool create the base “ERP”

ledger/COA

• Creates needed model, macro, event class, and reason code table entries.

• This is used as a baseline to create modified entries supporting a new

COA

• Up-front understanding of desired GLI logic which drives model/macro

changes

• Effectively, the new GL interface rules

RECOMMENDED NEXT STEPS

RECOMMENDED NEXT STEPS

• Outline, plan, and budget project

• R9.2.X readiness assessment for the R9.2.X prerequisite

project

• Financial reporting analysis – determining and scoping GL

COA re-design need is a must

• Aim for a representative test environment that supports

testing and training/learning – learning curves will vary