Out of Balance Legacy Sub Ledger? No problem.
Today we will cover strategy to migrate Accounts Receivable sub ledger to your new D365 ERP system. We will assume that the legacy system was out of balance $1,000.00, yet we will achieve a balanced General Ledger to Sub Ledger in D365 based on the Open AR details that we are provided [ $50,000,000.00 ].
In a prior blog, we covered migration of the Trial Balance in a manner that set us up for success in today's discussion.
We made sure that the legacy balance were migrated to a clearing account.
This strategy gives us a perfectly balanced starting point [ $0.00 ] for migrating our Open Accounts Receivable balances.
Scenario
Legacy AR Trial Balance 5,001,000.00
Legacy AR Aging Report 5,000,000.00
Migrated Trial Balance
#121010 0.00
#129090 5,001,000.00
Notice that the Legacy Trial Balance is out of balance $1,000.00 vs. the AR Aging
Exhibit: Perfectly balanced [ 0.00 ] D365 Accounts Receivable before migration.
The accounts receivable staff has corrected any errors and has finished month end process in the legacy system. They have provided a detailed aging that totals $50,000,000.00.
1. Create and post a Ledger Journal.
We will migrate the detailed Accounts Receivable via a General Journal with an offset to clearing. This will raise the Trial Balance for our system account (as assigned in Customer Posting Profile) to ledger account #121010 Accounts Receivable, Trade.
Simultaneously, the offset account will credit the ledger account #129090 AR, Clearing for the same amount.
It is important to provide proper cutoff when obtaining the legacy detail for Open AR and the related posting date in D365. In this example, we are migrating "As-of 12/31/2021" thus we make sure to date our General Journal "12/31/2021" .
You can use any "Cut off" date that you desire for testing.
Your final "Cut off" date will correspond to your GO LIVE schedule.
Avoid making a 'cut off' mistake.
i.e. Legacy Open AR report is created for 12/31/2021, but report run date is 1/1/2022.
Avoid dating the General Journal with the wrong 1/1/2020 cutoff date.
Exhibit: Sample General Journal for Open AR lines.
Additionally, you may optionally want to populate other fields i.e. Due Date
Note: If you have a lot of lines, you can use Data Management Workspace or Open in Excel to speed up processing of your General Journal.
I recommend you try this in your TEST environment using data as of an earlier date.
When you are successful in the TEST environment, I think you will find it an easy process for you GO LIVE Data Migration of Open Accounts Receivable.
2. Reconciliation after Data Migration of Open Accounts Receivable.
The Trial Balance will now reflect the migrated balance in the system account for Accounts Receivable.
Exhibit: Trial Balance After Data Migration
Note that the legacy out of balance is now isolated in the clearing account, and does not affect our Data Migration reconciliation.
We will now run an Accounts Receivable Aging report and compare it to the Trial Balance.
Exhibit: Accounts Receivable Reconciliation After Data Migration
We have perfectly migrated out of balance Open Accounts Receivable detail to our new D365 ERP, and now have an Accounts Receivable Sub Ledger [AR Aging] that perfectly reconciles to the D365 General Ledger, and also perfectly matches the original detail AR Aging data that we were given to migrate [ $50,000,000.00]