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JD Edwards is a strong system, and the financial capabilities may help you administer your business’s finances smoothly and automatically. However, the amount of data required to keep these systems working can be overwhelming, and things can easily get out of control if not carefully managed. Here are a few frequent issues we’ve seen with JD Edwards financials, as well as ways to avoid them in the first place or resolve them after the fact.
Tired of the manual cash application grind? It’s time to modernize your approach. Traditionally, companies receive paper checks or lockbox copies, adding complexity with various payment methods like credit cards and PayPal. JDE offers a solution: automated cash application.
Instead of manual data entry, banks and credit card companies send electronic files directly to JDE. Sophisticated algorithms match receipts to invoices, handle unapplied cash, and write off small discrepancies, freeing your staff for other tasks. This not only boosts efficiency but also improves accuracy compared to manual processing. Lockbox payments also reach your bank account faster.
Clients typically achieve 75-80% match rates, with some reaching 95% through optimized invoice and lockbox processes that encourage customers to provide clear remittance information.
JDE financials rely on two crucial files: the General Ledger (GL) Transaction File and the Trial Balance File. The GL Transaction File details general journal transactions, while the Trial Balance File resembles a monthly balance sheet with account lines. These files must always be synchronized.
In one client project, the Trial Balance File didn’t align with the GL Transaction File, causing inaccurate financials. Here are common reasons for this imbalance:
Cancelled Post Jobs: During the posting process, JDE updates both the GL and Trial Balance. Cancelling a post job mid-cycle disrupts this process, leaving the files out of sync. In this project, nightly post jobs were delayed and cancelled by the team to start operations on time. The solution involved adjusting the nightly schedule to ensure all jobs finish, preventing future imbalances.
Data Manipulation: While tempting, changing GL dates in the Transaction File to force entries through a specific period can cause integrity issues. It’s better to post the entry in the correct period and make necessary adjustments later.
Month-End Close: Ensure all GL transactions are posted and companies within the Trial Balance File are balanced before month-end close. Run JDE integrity reports throughout the month to catch and address errors early.
Maintaining organized data requires regular reconciliation. Here are two crucial reconciliations in JDE:
Inventory Reconciliation: A perpetual inventory not reconciled with the General Ledger can lead to control and audit issues. Our consultants have developed an efficient process to reconcile the inventory system, ensuring its integrity and accurate month-end reporting.
Received Not Vouchered Reconciliation: This account, especially in older JDE versions, can be challenging to reconcile due to various factors like human error and landed costs not reflected in reports. We’ve helped clients develop automated processes to identify variances, eliminating human error and improving report accuracy.
Both inventory and received not vouchered reconciliations are crucial monthly tasks. A diligent finance team and someone with a deep understanding of the inventory system are essential for successful reconciliation.
These are just a few ways to ensure smooth operation of your JDE financials. If you have specific questions about optimizing JDE for your organization, feel free to contact us.
Make a smart investment with JDE Edwards: real value, real savings.
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