End of Year E R P Checklist: Streamline Your Transition to the New Year
The end of the year is a busy time for everyone, but a little preparation can make the start of the next year smoother and more productive. Here's a checklist broken out by the department to help optimize your ERP system as you wrap up this year.
All Departments End of Year Checklist
_____1. Strategic ERP Review
- Review and Update Reports and Dashboards
- Evaluate standard reports and dashboards to ensure they align with current business requirements.
- Adapt them to reflect changing priorities so the information remains relevant and actionable.
_____2. ERP Support and Maintenance
- Address Outstanding Support Issues
- Reach out to Crossroads RMC for unresolved support concerns or system issues.
- Collaborate to resolve lingering problems and clear your to-do list before the year ends.
_____3. Training and Consulting Services
- Assess Team Training Needs
- Conduct a skills gap analysis to identify areas where your team may require additional ERP training.
- Allocate resources for consulting services to help your team remain efficient and effective with the ERP system.
_____4. Future Investments
- Evaluate New ERP Features or Modules
- Review potential ERP investments to support business growth.
- Align new features or modules with the organization’s current and future needs to maximize ROI and operational efficiency.
IT/Technology Checklist
_____1. Data Cleanup
- Perform data deduplication to eliminate redundant entries.
- Validate existing data to ensure accuracy and reliability. This reduces errors and boosts confidence in reporting.
_____2. Archive/Remove Obsolete Data
- Archive or delete outdated data to improve system performance and reduce database clutter.
- Streamlined data management enhances system usability and reduces search inefficiencies.
_____3. Monitor System Performance
- Review system logs and performance metrics to identify bottlenecks.
- Address any recurring lags or slowdowns to improve overall system efficiency.
_____4. Review User Access Controls
- Audit user roles, permissions, and access rights for accuracy.
- Remove or update access for users with altered responsibilities or those no longer with the organization.
- This step mitigates cybersecurity risks and ensures compliance with data governance policies.
_____5. Test Emergency Recovery Procedures
- Perform a test run of backup and recovery protocols to verify their effectiveness.
- Ensure all critical data can be restored in the event of a disaster.
_____6. Prepare for Date-Dependent Processes
- Audit scheduled jobs, scripts, and automation with hard-coded dates.
- Update these dates to reflect the upcoming year to avoid disruptions in processes.
_____7. Bonus IT Tasks
- Communicate planned system downtimes with all stakeholders in advance.
- Document any changes made to the system during this period for future reference.
- Encourage feedback from end-users on potential system improvements.
Operations Checklist
_____1. Critical Data Accuracy
- Ensure critical data, such as inventory levels and customer information, is up-to-date and accurate to support efficient facility operations.
- Remove discontinued items.
- Delete sold purchase receipts.
- Clear lot attributes for sold lots.
- Non-Manufacturing Environments: Update the standard cost field based on current cost.
_____2. Inventory Management
- Conduct a full physical inventory and update quantities before year-end or establish a cycle-counting program to maintain accuracy.
- Prepare users for year-end completion of all inventory adjustments, receipts, and invoicing.
- Determine processes for handling new-year transactions without immediate posting.
_____3. Purchase Orders & Contracts
- Close out all purchase contracts and purchase orders (POs) to prevent further receipts against any contract line items.
_____4. Costing & Manufacturing Tasks
- Decide on new standard costs for the upcoming year (for Manufacturing environments).
- Establish cutoff dates for removing archived BOMs and closed/canceled manufacturing orders.
_____5. LX-Specific Tasks
- Run PRF900 to update performance measurements and purge closed shop orders.
_____6. Fixed Assets & Depreciation
- Review and update the depreciation schedule for fixed assets.
- Verify depreciation expenses for the year have been accurately recorded.
- For any new assets added during the year, ensure they are included in the depreciation schedule.
Finance Checklist
_____1. Period Closing & Reconciliation
- Close financial periods and reconcile accounts to ensure financial data consistency and readiness for audits, tax filings, and other financial processes.
- Set up financial periods for 2025 before the year begins.
- Open the January 2025 period.
- Finalize all outstanding transactions from 2024.
_____2. LN-Specific Tasks:
- Perform a soft-close for any open periods in 2024.
_____3. LX-Specific Tasks:
- Copy the CEA Book for the new year, ensuring all Journal Sources are set up. This ensures all required records are in place.
- Run ACP920 (1099 Report) before ACP910 (Year End Close), as the Close Program clears 1099 Payments History.
_____4. Financial Cleanup
- Address any old sales invoices and ensure they are properly closed.
- Rectify any outstanding financial integration errors.
- Set up and test new integration mappings for 2025 in a test environment.
- Review and update jobs to ensure they are configured correctly for 2025 processing.
- Identify purchase invoices for cash-flow management that won’t be paid until 2025.
_____5. Payroll Review
- Verify employee payroll records and reconcile them with financial statements.
- Ensure all employee information is up-to-date, including unpaid sick leave and vacation time, and carry over or adjust as necessary.
_____6. Accounts Receivable & Payable
- Resolve any outstanding issues or unpaid invoices in customer or vendor accounts.
- Record all payments and receipts to maintain accurate financial data.
- Review outstanding receivables for potential bad debts.
- Decide whether to carry them over into the new year.
- Adjust the allowance for bad debts as necessary.
_____7. Bonus Financial Tasks
- Verify that ERP calendars are set up for the new year with holidays correctly indicated.
- Ensure proper mapping and testing of financial processes to avoid disruptions in the new year.
Taking these proactive steps will set your ERP system up for success in the coming year.