Financial Document Integration: Roadmap and Core Structure

Organizations may occasionally need to transfer financial documents between different software systems in their financial environments. These integration processes are crucial for ensuring the accuracy of financial statements and the seamless operation of business processes.

This article outlines a functional design approach that enables the correct, secure, and efficient integration of financial documents between two different systems.

Core Structure

#Integration
#Transformation
#Posting        

Key Steps

The satellite system is the system where the financial record originates, while the main system is the accounting system where real financial records are maintained according to accounting and reporting standards.

TABLE_1: Document Integration Table

TABLE_2: Transformed Document Table in Compliance with Accounting Standards

Ensuring Data Integration

• Determine the integration method for transferring data (e.g., File, RFC, API, etc.).
• Clarify the required fields from the satellite system for integration.
• If the satellite system is supported by another country or group, the financial document data from the satellite system should be stored in the integration table developed in the main system (TABLE_1). This way, document integration data can be reported and managed in the main system.

Developing Matching, Conversion, and Derivation Rules

• Matching Rules: The satellite system and the main system may not use the same characteristics for financial records. As a solution, these characteristics can be matched in adaptation tables for use in accounting record design (e.g., Company Code, Main Account, Cost Center, Tax Code, etc.).
• Conversion Rules: These refer to filling in the fields in the accounting document in accordance with the main system’s accounting rules (e.g., the data in the Text field of the record in the satellite system may be written to the ‘Reference 2’ fields of the accounting document created in the main system by using the last six characters from the right).
• Derivation Rules: These refer to deriving new data required for the accounting documents in the main system based on the document characteristics in the satellite system (e.g., if the Document Type is ‘AA,’ the business area should be ‘FPCD.’ If the Main Account starts with ‘601,’ the payment method of the customer-related line should be ‘M,’ etc.).

Accounting Record Design (Main System Accounting Standards)

• After data integration from the satellite system is ensured, it is important to store the data in a table (TABLE_2) by converting it into the main system accounting standards using matching, conversion, and derivation algorithms to ensure process traceability.
• System feedback from the accounting record program can also be stored in this table (TABLE_2). This way, system messages related to successful processing and errors can be recorded for each document (e.g., Successful Entry, Period Closed, Customer Blocked, etc.).
• The document number generated as a result of the accounting record in the main system should be recorded in this table (TABLE_2). This way, it can be reported which document from the satellite system has been posted to the accounting records from the main system’s perspective.
• The document number in the satellite system can be written in the ‘Reference’ field of the document created in the main system so that users can also track documents in standard ERP system reports.

Developing the Accounting Record Posting Program

• The program should read the accounting document from the Transformed Document Table (TABLE_2) in compliance with the main system accounting standards and convert it into a real accounting record.
• If needed, the program should allow reporting of the status of previous records.
• The program should be developed to run in the background and maintain logs.

Complementary Steps

Risk and Error Management

• The data transfer from the satellite system to the main system should be manually re-triggered within the scope of selections such as company code, document, document type, and entry date, providing flexible management in case of integration issues (TABLE_1).
• A control program can be written for matching adaptations to ensure that new characteristics defined in the satellite system are checked before being converted to main system accounting standards, and if there is a missing adaptation, the transfer of the relevant document to the accounting record design tables (TABLE_2) is halted, and information is provided in the log.
• If the document number generated in the main system as a result of the accounting record is recorded in the Document Integration Table (TABLE_1), it can be reported which document from the satellite system has been posted to the accounting records in the main system.

Performance Optimization

• The frequency of transferring document data from the satellite system to the Document Integration Table (TABLE_1) should be determined considering the processes (e.g., real-time, hourly, daily, etc.).
• The frequency of transforming and transferring data from the Document Integration Table (TABLE_1) to the main system accounting standards (TABLE_2) should be determined considering the processes (e.g., real-time, hourly, daily, etc.).
• In the transfer tables, fields like Document Number or Status should be used in the selection parameters of the scheduled automatic accounting document transfer process (TABLE_1, TABLE_2). This way, the same document is not selected repeatedly, improving performance. For example, when the program selects 200 documents, it should mark their statuses as ‘processing,’ and when the record is completed, it should update the status to ‘posted.’ Otherwise, in cases where the recording process takes a long time, the next scheduled job might select the same document, leading to duplicate records for some documents.

Data Security and Privacy

• The permissions of users who can perform transfers should be manageable within the system.
• The authorities of users who can make conversion adaptations should be manageable within the system.
• The authorities of users who can post general ledger entries should be manageable within the system.

User Training and Support

• During the testing phase of the integration system, comprehensive initial training should be provided to ensure that users can effectively use the new system.
• The training content should cover the basic functions of the system, reporting tools, manual processes, and error management procedures.
• Training materials can be shared in file format or as videos.

Feedback and Continuous Improvement

• Logs from background-running Matching Adaptation Control, Data Integration, Transfer to Accounting Standards, and Accounting Record programs can be used for automatic error monitoring, allowing for observation of error rates and implementation of improvements.
• Efficiency can be tracked through defined Key Performance Indicators (KPIs), such as processing time and error rate.
• Strategic improvement decisions can be made by holding feedback meetings with key users of the program.

This guide aims to provide a fundamental roadmap for organizations seeking to ensure a smooth integration process.