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Consolidating sap systems

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Although the easiest short-term solution is to simply consolidate financial information at an executive level of reporting, companies should not use multiple systems to track financials for similar business units on a long-term basis, as the disparities in reporting and closing the books drive different business practices and take a toll on corporate operations.Keep in mind that finance and accounting departments exist to support and track operations and should not create obstacles to consistent processes and business practices.In addition, some custom applications may be poorly understood by current IT personnel, making it difficult to replace or retire them.As a result, large organizations in particular may find themselves with three, four, or even more major application systems, each providing the same or similar functionality.In this role, he is responsible for developing and delivering new technology-based propositions across HCL’s applications business.

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There are several reasons for the kudzu-like growth of applications within many organizations--for example, a company may make a series of acquisitions but not have time to move the acquired businesses to a common set of applications.

To successfully merge financial systems to support a consolidated business environment, companies should do the following: 1.

Map accounting practices and processes within all core financial systems, including revenue recognition, purchasing and expensing events, closing activities, and relevant governance, risk management, and compliance assumptions. Once these accounting practices have been determined, check for discrepancies between similar processes in each financial system.

To that end, the company looked at cloud and on-premises integrations of the different ERP systems, as well as the infrastructure itself, Rangaswamy said.

"But neither of the companies had the best technologies, so we had to find a third application that did not exist within our portfolio," he said.