The broad requirements of a new system should be decided at Board level. The system selection process should then be regularly monitored to ensure the requirements are met.
Each department should list its requirements, carefully differentiating between the 3 categories: critical, highly desirable and ‘nice-to-have’. Be prepared for compromise – particularly if this means that the company will have to change the way it operates.
The Finance Department should identify all accounts processes and see them demonstrated, not simply receive verbal assurances. The demonstration is not simply to see ‘if’ the software can perform the task, but also ‘how’.
Do not take anything for granted. For example, a sale must be able to: reduce stock, pick up the correct price for the product and reduce it for customer discount, create an invoice, increase the customers account balance, increase the sales total, add VAT, record the correct Intrastat declaration, post a cost of sales transaction. A credit note must be capable of all this and be able to be matched to an invoice. Cash received should be matched (allocated) to an invoice and credit note if necessary.
A full list of functions should be drawn up, even using the old system as a guide. It may be useful for one staff to observe and note another’s work – in an area in which they are unfamiliar.
