Proceedings of the 32nd Hawaii International Conference on System Sciences - 1999 Proceedings of the 32nd Hawaii International Conference on System Sciences - 1999
A Structured Transformation Approach for Legacy Information Systems - A Cash Receipts/Reimbursements Example Jia-Lang Seng, Ph.D. Associate Professor Department of Management Information Systems National Cheng-Chi University Mu-Cha, 116, Taipei, Taiwan, ROC (Tel & Fax) +886-2-29387692 (E-Mail)
[email protected]
Wayne Tsai MIS Administrator Trane Intentional in Taiwan Taipei, Taiwan, ROC (Tel) +886-2-5678088 (Fax) +886-2-5427418 (E-Mail)
[email protected]
(3) the conceptual planning of data conversions from the legacy to the new information systems, (4) the conceptual planning of process conversions from the legacy to the new information systems, and (5) the implementation planning of installation, testing, and training.
Abstract Legacy information systems are difficult to transform into the new or upgraded information systems. Part of the reason is being the incompatibility and the unscalability between the systems. In this study, we propose and present a structured transit approach and process to provide an alternative in order to guide and ease the large scale legacy system transformation. In this paper, we describe a real world case study which we have applied the structured transit method successfully in 1997-1998. This transformation project is a two-year companywide business process reengineering on their financial and accounting information systems. Through this project, We confirm our perception that the structured problem and solution domains require the structured techniques to tackle and to solve the compatablity and scalability issues because the structural discrepancy represents the core of the above problems originally. We give the details of the application in five analysis tasks: the functional analysis, the data analysis, the system flow analysis, the discrepancy analysis, and the conversion analysis.
As a field case study, starting 1997, we tackled the core of the transformation issues of the conceptual analysis and design of the data and process conversions. In particular, we focused on the data and process transformation of the accounts receivables and accounts payable (AR/AP) module. In this paper, we describe the thrust of the transformation and transit method on their cash receipts and cash reimbursements (CR/CR) cases.
1. Introduction
We adopted the structured analysis and design techniques such as the data flow diagram (DFD), the entity relationship diagram (ERD), and the system flowchart (SF) methods to approach these data and process analysis and conversion. We present this structured transformation approach and process in this paper. And, the paper is organized into five sections. The first section introduces the field study background. The second section presents the structured transit approach and process. The third section describes the structured analysis of the Platinum cash receipts and reimbursements module. The fourth section gives the
Trane International Group (TIG) is a subsidiary company of the American Standard. TIG is undertaking a world wide information systems transformation to change their database information systems from the earlier Platinum financial and accounting systems to the later Oracle financial and accounting systems. The transformation project began in 1997 and will continue through 1998. The main issues involved in this large scale transformation include (1) the conceptual analysis of the legacy information systems, (2) the conceptual analysis of the new information systems,
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transformation results from the Platinum module to the Oracle cash receipts and reimbursement module. The fifth section concludes the paper with a summary and the future research efforts.
The first step in the transit approach is thus to discover and describe the functionality and procedurality of the legacy and the new information systems. In the functional analysis, we use the DFD method and find the processes and data flows to connect them. These processes and data flows are decomposed into the primitive components which are the leaf items of the menu hierarchy of selections. These combined analysis is used in sets, (process, data inflows, data outflows), and is to build the SF so as to compare and contrast the legacy and new information systems.
2. Structured Transit Approach and Process Structured transit and transformation approach consists of the widely used structured techniques such as the DFD, ERD, and SF which are used to analyze the legacy information systems and the new information systems in order to develop the conversion schema and process. The structured conversion process is made up of five steps: (1) the use of DFD to describe the processes and data flows of the legacy and the new information systems, (2) the use of ERD to delineate the data schema and the data elements of the legacy and the new information systems, (3) the use of SF to combine the process and the data descriptions, (4) the process discrepancy analysis and the data discrepancy analysis with comparison and contrast, and (5) the conversion development of process and data. Figure 1 shows the steps of this structured transit approach and process.
2.2 Data Analysis The ERD is used to delineate the database schema of the legacy and the new information systems. The data definitions described here have to coincide with the data stores discovered in DFD. Both the entities and the m:n relationships correspond and give the data stores. When the process and data flow sets differ in the legacy and the new systems, we point out their corresponding entities and relationships in the ERD for the later discrepancy analysis.
2.1 Functional Analysis
2.3 System Flow Analysis
Legacy information systems such as the AR/AP financial and accounting information systems can be best described in the structured techniques. Though the object-oriented software engineering (OOSE) has emerged as the better alternative to analyze and design new systems, for the structured information systems development (ISP), however, DFD, ERD, and SF are still the chosen tools which are better fit in the description of the structured problem and solution domains.
In the combination of the process and data analysis, the SF shows the overall picture of the system flow and structure. SF gives the integral description of the legacy and the new information systems. In an SF, from the start to the end, inter-departmental functions and databases are portrayed. We try to further explore the functional components and the data components to fit together.
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posting. Further, the CR/CR systems divide the data entry function into (1) whether the transaction is an open item which has not be paid, (2) whether it is a balance forward which has been paid in part and not in full, and (3) whether it is an on account which can be a prepayment or an over-payment. In light of these main processes, the corresponding data flows of cash receipts are the remittance advices, the checks, the annotated remittance advices, the endorsed checks, the deposit slips, and the cash receipts registers. The primary data flows of cash reimbursements include the invoices, the reimbursement vouchers, the voucher registers, and the checks.
2.4 Discrepancy Analysis The discrepancy analysis consists of the process discrepancy analysis and the data discrepancy analysis. Comparing the process and data flow sets, we obtain the set of process discrepancy results. Inspecting each process component at the individual level of DFD for the legacy and the new systems, we obtain the details of the process discrepancy results. The profile of process discrepancy is formed. We further compare the data definitions of each entity and m:n relationship for the legacy and the new information systems to secure the data discrepancy result. 2.5 Conversion Analysis
3.2 Data Analysis Based on the discrepancy results, we suggest to build additions and modifications of the process and data components of the legacy and the new systems. Conversion analysis involves the item-by-item changes and creations from the legacy to the new systems. The conceptual conversion plan includes the item-by-item of the process conversion from the discrepancy analysis and the data conversion from the discrepancy analysis. 3. Structured Analysis of Legacy Cash Receipts and Reimbursements Module
The data analysis is performed based on the 29 data stores discovered in the functional analysis. These data stores represent nine database files of (1) the customer file of customer master data, (2) the customer history file, (3) the supplier file of supplier master data, (4) the supplier history file (5) the CR/CR selection file, (6) the cash receipts transaction file of receipts details, (7) the cash reimbursements transaction file of reimbursement details (8) the deposit slip file (9) the voucher file, (10) the general ledger file, and (11) the bank file.
3.1 Functional Analysis
3.3 System Flow Analysis
The Platinum CR/CR has five main processes from the data entry through the data posting. These five processes include (1) the cash receipts and cash reimbursements data entry, (2) the cash receipts and cash reimbursements data register, (3) the cash deposit and cash withdrawal, (4) the cash receipts and cash reimbursements cancellation, and (5) the cash receipts and cash reimbursements
The Platinum CR/CR systems can be modeled in the SF. The CR/CR transactions route to the open item, the balance forward, or the on account choice. To describe its system flow and proces, we find the data entry process, the data register process, and the data cancellation process use the customer file, the supplier file, the transaction file, the register file, and the selection file. The bank deposit process requires the
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bank file, the transaction file, and the deposit slip file. The posting process uses the customer file, the supplier file, the transaction file, the voucher file, the general ledger file, and the bank file.
posting. We list the Platinum data stores in Appendix A. The Oracle CR/CR is analyzed and decomposed into three main levels of 60 processes and over 100 tables in the database. These tables are shared and used among the 60 processes. The first level of processes has the common payment and receipt methods and heads the detailed sub-processes. The subprocesses include (1) the batch processing, (2) the batches summary, (3) the cash receipts/reimbursements, (4) the cash receipts/reimbursements summary, (5) the remittance details, (6) the remittance summary, (7) the risk handling, and (8) the lockbox. The second level then expands again and gives another set of ten important subsub-processes. These are (1) the entering receipts/reimbursements, (2) the applying receipts/reimbursements, (3) the chargeback, (4) the adjustment, (5) the foreign currency, (6) the reversing, (7) the reapplying receipts/reimbursements, (8) the reviewing receipts/reimbursements, (9) the batching receipts/reimbursements, and (10) the miscellaneous system utilities. We show these process in Figure 3. We list the Oracle data files Appendix B.
4. Structured Transformation Results and Discussion In the plan of the system transformation and transit, we compared and contrasted the functions of the Platinum CR/CR. We conduct a topdown decomposition and a bottom-up cross-checking composition on the following functional components: (1) the manual receipts/reimbursements, (2) the automatic receipts/reimbursements, and (3) the lockbox. We analyze and decompose each of these functions to give the following sub-functions such as (1) the data entry, (2) the transaction linkage, (3) the payment handling, (4) the bank account control, (5) the currency conversion, and (6) the general ledger posting. We mean to detail the proceduality of the functions through decomposition. We further analyze and decompose the data elements of each data store come with the discovered functions. The data definitions and layouts have to be detailed. We use the SF and combine the functions and the data to give the overall picture. The SF analysis result is shown in Figure 2.
4.1 Discrepancy Analysis
The Platinum CR/CR module in the TIG International can be analyzed and decomposed into five main processes and 29 data stores. These analyzed processes seem to center around the data processing of the cash receipts and the cash reimbursements applications. These are (1) the cash receipts/reimbursements entry, (2) the cash receipts/reimbursements register, (3) the bank deposit slip, (4) the cash receipts/reimbursements cancellation, and (5) the cash receipts/reimbursements
The Oracle CR/CR systems differ from its predecessor mainly at the following seven items (1) the automatic receipts/reimbursements, (2) the lockbox receipts, (3) the support of choice of various payment methods, (4) the support of choice of various remittance methods, (5) the user linking with the firm banking, (6) the electronic funds transfer, and further (7) the interim and container tables which can handle the manual, automatic, and lockbox receipts on their transaction, transmission, and transit management.
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with the Oracle modules. It continues with the detail analysis of each survey result. A team is formed to keep track of the development and conversion. Formal training and meetings of personnel bridge the gaps between different systems conversion. The process is documented in the Oracle databases. Part of the transfer efforts is made through the Oracle installation project.
4.2 Conversion Analysis We conduct an item-by-item comparison and contrast analysis of process and data. We add and change the legacy functions and files to coincide with the new functions and database files. In the conversion work, we realize the seven discrepancy analysis which are described in section 4.1 can be done for the item (1) through (5). Items (6) and (7) are not implemented at this stage for the TIG International.
5. Summary and Future Research Efforts
Item (1) of the automatic receipts/reimbursements is added with new function and files. Item (2) of the lockbox is newly added by setting up a new contract with the CitiBank in Taipei to handle the CR/CR with their customers and suppliers, and the new programs have to be added to support the new transaction type. Items (3) and (4) of the payment/reimbursement methods are an update and change from the legacy system by expanding the programs and data definitions to accommodate new payment/reimbursement properties. Item (5) of the firm banking is performed when the lockbox is setup and the electronic data interchange (EDI) format is determined between the TIG and the CitiBank. 4.3 Technology Transfer Knowledge Management
In this paper, we have described a structured approach and process in planning and performing a large scale transformation and transit project and in the conversion from the legacy information systems to the new updated information systems. We have applied the approach and process to a real world case study, that is, the transformation project of the TIG International cash receipts and cash reimbursements financial and accounting information systems. We have discussed the stepby-step use of the structured techniques of the DFD, ERD, and SF in the case study. We have shown the item-by-item conversion for the process and the data components between the legacy and the new systems. Currently, we are studying the performance of this project in terms of efficiency and effectiveness of transformation. We expect to develop a set of performance metrics to measure and evaluate the benefits and costs of this structured transit approach and process.
and
The technology transfer starts with the overall survey of the Platinum applications and their match and miss
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DFD
PROCESS
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Figure 1: Structured Transit Process
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AR_CUSTOMER_PROFILES, AR_CUSTOMER_PROFILE_AMOUNTS, AR_CUSTOMER_PROFILE_CLASSES, AR_CUST_PROF_CLASS_AMOUNTS, AR_DISPUTE_HISTORY, AR_DISTRIBUTION_SETS, AR_DISTRIBUTION_SET_LINES, AR_DOC_SEQUENCE_AUDIT, AR_DUNNING_LETTERS, AR_DUNNING_LETTER_SETS, AR_DNNING_LETTER_SET_LINES, AR_INTERIM_CASH_RECEIPTS/REIMBURSEME NTS, AR_INTERIM_CASH_RECEIPT_LINES, AR_INTERIM_POSTING, AR_JOURNAL_INTERIM, AR_LOCATION_COMBINATIONS, AR_LOCATION_RATES, AR_LOCATION_VALUES, AR_LOCKBOXES, AR_LOOKUPS, AR_LOOKUP_TYPES, AR_MEMO_LINES, AR_MISC_CASH_DISTRIBUTIONS, AR_NOTES, AR_PAYMENTS_INTERFACE, AR_PAYMENT_SCHEDULES, AR_POSTING_CONTROL, AR_RATE_ADJUSTMENTS, AR_RECEIPT_CLASSES, AR_RECEIPT_METHODS, AR_RECEIPT_METHOD_ACCOUNTS, AR_RECEIVABLES_TRX, AR_RECEIVABLE_APPLICATIONS, AR_SALES_TAX, AR_STANDARD_TEXT, AR_STATEMENT_CYCLES, AR_STATEMENT_CYCLE_DATES, AR_STATEMENT_CYCLE_INTERVALS, AR_STATEMENT_HEADERS, AR_STATEMENT_LINE_CLUSTERS, AR_SYSTEM_PARAMETERS, AR_TAX_INTERFACE, AR_TRANSMISSIONS, AR_TRANSMISSION_FORMATS, AR_TRANS_FIELD_FORMATS, AR_TRANS_RECORD_FORMATS, AR_VAT_TAX, FND_APPLICATION, FND_BLOCK, FND_COMMON_LOOKUPS, FND_COMMON_LOOKUP_TYPES, FND_CONCURRENT_PROGRAMS, FND_CONCURRENT_REQUESTS, FND_CURRENCIES, FND_DESCRIPTIVE_FLEXS, FND_DESCR_FLEX_COLUMN_USAGES, FND_DOCUMENT_SEQUENCES, FND_DOC_SEQUENCE_ASSIGNMENTS, FND_DOC_SEQUENCE_CATEGORIES, FND_DUAL, FND_FIELD, FND_FLEX_VALIDATION_TABLES, FND_FLEX_VALUES, FND_PROFILE_OPTIONS, FND_FLEX_VALUE_SETS, FND_FORM, FND_TD_FLEX_SEGMENT, FND_ID_FLEX_STRCUTURES, FND_MESSAGES, FND_ORACLE_USERID, FND_PRODUCT_DEPENDENCIES, FND_PRODUCT_INSTALLATIONS, FND_PROFILE_OPTIONS, FND_PROFILE_OPTION_VALUES.
References [1] Oracle Receivables User Guide, 1997-8. [2] Oracle Receivables Technical Guide, 1997-8. [3] Platinum Receivables User Guide, 1992. [4] Platinum Receivables Technical Guide, 1992. Appendix A. Platinum Cash Receipts/Reimburse ments Data Files List ARAFT (after the fact file), ARBB (bank book interface file), ARCLASS (customer class file), ARCMNT (comments file), ARCUST (customer file), ARCUSTH (customer activity file), ARDEFLTS (AR system defaults file), includes the following: CENTS OVERRIDE, FOB, TERMS, SHIP-VIA, ARDIST (distribution to GL file), ARGLTRAN (AR to GL postings file), ARHDR (header file), ARINVCOM (inventory commission file), ARLEVEL (territory file), ARLIN (line itmes file), ARLINH (line item history file), ARMCGNLS (currency gain and loss file), ARONE (one record file): NAME and OPTIONS, INVENTORY INTERFACE, AUTOMATIC NUMBERING, ARPARAMS (AR parameter file), ARPRICE (price table file), ARRECUR (recurring cycle file), ARSALESP (salesperson file), ARSELECT (cash receipts/reimbursements file), ARSER (invoice serial/lot numbers file), ARSERIAL (serial/lot numbers file), ARSHIP (ship to file), ARSLSCOM (sales commission file), ARSPECL (prince specials file), ARTAX (tax rate file), ARTAXATH (tax authority file), ARTRAN (current transaction file), ARTRANH (history transaction file).
Appendix B. Oracle Receipts/Reimburse ments Tables List
Cash
AR_BANK_ACCOUNTS, AP_BANK_ACCOUNT_USES, AP_BANK_BRANCHES, AP_CHECKS, AP_CHECK_FORMATS, AP_CHECK_STOCKS, AP_LOOKUP_CODES, AP_PAYMENT_PROGRAMS, AR_ACTION_NOTIFICATIONS, AR_ADJUSTMENTS, AR_AGING_BUCKETS, AR_AGING_BUCKET_LINES, AR_APPROVAL_ACTION_HISTORY, AR_APPROVAL_USER_LIMITS, AR_AUDIT_DATA, AR_AUTOCASH_HIERARCHIES, AR_AUTOCSH_RULES, AR_AUTOREC_EXCEPTIONS, AR_BATCHES, AR_BATCH_SOURCES, AR_CALL_ACTIONS, AR_CASH_BASIS_DISTRIBUTIONS, AR_CASH_RECEIPTS/REIMBURSEMENTS, AR_CASH_RECEIPT_HISTORY, AR_CHANGE_MATRIX, AR_COLLECTION_INDICATORS, AR_COLLECTORS, AR_CONC_PROCESS_REQUESTS, AR_CONC_REQUEST_MESSAGES, AR_CORRESPONDENCES, AR_CORRESPONDENCE_PAY_SCHED, AR_CREDIT_HISTORIES, AR_CREDIT_MEMO_AMOUNTS, AR_CUSTOMER_CALL_TOPICS,
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