Record to report / R2R – Reconciliations

Multiple systems

You have read about the process components of an intercompany reconciliation process:

Another very interesting set of reconciliations are Multiple Systems.

Why do multiple system reconciliations come into play? No company actually wishes to invest heavily in an ERP system, thinking into what they can be in ten years time. At a maximum, they will look at three to four years.

So they continue with the legacy systems. As the businesses grow, new and updated systems are brought in. In some cases, they replace the existing systems, in some they complement and in some cases, they just run parallel.

So we can visualize three scenarios:

  • Replace
  • Complement
  • Parallel

There is one more, some businesses are very typical and have built business logic, very specific to the vagaries of their operations and core activities. It may take the ERP providers a long time to even try to replicate the legacy applications built by local developers over years and may also prove to be cost prohibitive. Thus for certain activities, these legacy applications may be indispensible.

You have multiple systems, in all possibilities, they may end up recording transactions differently, and of course will have to be reconciled.


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