Compliance Within Lawson M3

Compliance Within Lawson M3
John Chandler Product Management - Financials

The Lawson Product Offering
Per Dean Hager – 5 I’s 1) Deliver packaged industry-specific solutions We deliver solutions that our customers need, without the burden and complexity of functionality they don't want. With our M3 & S3 product lines, customers receive solutions that are designed specifically for their market. 2) Deliver integrated, relevant business intelligence Our customers need answers, not data. This means business intelligence solutions must be designed as part of our applications, not done as an afterthought. 3) Deliver self-evident usability for broad user community Most importantly, our solutions must be simple to understand and highly productive for the users. The simpler to use, the simpler the solution is to extend to a broad user community, streamlining business processes. 4) Deliver innovation via business experts Business line leaders understand what needs to be done to improve organization efficiency and effectiveness. Lawson must put the power of innovation and change in their hands. 5) Deliver scalability & adaptability via industry-standard technology Lawson is committed to industry standards, like J2EE and WSDL. Furthermore, we leverage those standards to provide some of the largest organizations in the world the freedom to grow and change over time. We are committed to these five principles for one reason: Simpler is Better.

The Lawson Industry Offer
We focus on these specific markets or sectors….a little like a beach ball

With Focus on Specific Markets…..
..wherever our customers choose to operate…..

Global Integrated Financials for IFO’s - Introduction
The order flow S u p l i e r s C u s t o m e r Procurement Production planning Sales & order Monitor the Performance of other flows The logistic flow Receipt handling Production Warehouse/ Distribution Managing the financial flow Integration is a major selling feature of Movex Financial Management Movex Financial Management is an integrated part of the Intentia Solution. You can drill into details, for example from General Ledger to Cost Accounting and back to the original stock transaction itself. You can also monitor the performance of other flows. Finance is an information source of information from which you can drill down into detail. At a strategic level Business Performance Measurement (BPM) can be used to extract management reports from the Movex database. At a tactical level, Movex can be used to integrate the sales, operation, and financial budgeting processes. At an operational level, information is passed between the different components as transactions occur, without the need for batch jobs or interfaces. The financial flow Accounts payable General ledger receivable

M3 Financials - supporting our Customers
Managing the financial supply chain Allowing users to work in ways that they wish Providing information – to internal/external customers Using technology for efficient financial processes New ways to manage the global financial supply chain Still allowing you to provide business information – in various formats/mediums/outputs Allowing Users – wherever they may be located in the world - to work the way that they wish AND EFFICIENTLY or more Efficiently than ever before

Disclaimer regarding future product discussion
This presentation includes information about future development plans of the Lawson Product Development organization. By providing this update, Lawson is not promising to develop, deliver or market any specific product, functionality or service. Lawson makes no representations or warranties about the contents of this document, and specifically disclaims any express or implied warranties of merchantability or fitness for any particular purpose. Further, Lawson reserves the right to change its future products or services offerings at any time without obligation to notify anyone of these changes. Customers under maintenance are not specifically entitled to anything on the roadmap or what is included in this presentation. Disclaimer regarding use of screen shots in this presentation This presentation has been prepared to demonstrate a variety of ways that Lawson software applications and tools can be set up and utilized by customers. The screen shots provided may not be standard, out-of-the-box reports, but may require your organization to engage Lawson Professional Services in order for the applications or tools to work as shown. 8

M3 Financials and Compliance
Introduction – Company….. Business Processes…. Accounting Transactions…… Financial Reporting….… Audit Trail….. Summary

Compliance - sometimes we get mail on this topic

Compliance - sometimes we get mail on this topic
11

Implementing Compliance in Movex
The second post to the Community from Jim Moore – dated – viewed on 96 occasions

Preservation Controls Primary Areas of Regulation under Sarbanes-Oxley
Understanding the Law The Sarbanes-Oxley Act established new and enhanced standards for corporate accountability, as well as severe penalties for corporate wrongdoing. Good corporate governance and ethical business practices are now the law. Disclosure Controls Internal Controls Designed to ensure that required disclosed information is recorded, processed, summarized, and reported within the time periods specified by the SEC. Include controls and procedures to help ensure that the required disclosed information is accumulated and communicated to management to allow timely decisions regarding required disclosure. Controls that pertain to the preparation of financial statements for external purposes that are fairly presented in conformity with generally accepted accounting principles. Preservation Controls Designed to ensure that all audit records, material financial transactions, related communications, working papers, and other data, is preserved, protected from alteration, and readily available. Sarbannes Oxley is a very complex and broad reaching set of legislation Sarbox means different things to different organizations depending on where they are on the maturity cycle of internal and disclosure control practices. Primary Areas of Regulation under Sarbanes-Oxley

SEC.404 - Corporate responsibility for the financial reporting process

Sarbanes-Oxley – Relevant Sections
Requires management to annually: State their responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting Conduct an assessment of the effectiveness of the company’s internal controls and procedures for financial reporting Requires the independent auditor to: Attest to management’s assertion (requires a framework such as COSO) Section 409 Real Time Disclosures: Issuers are required to disclose to the public, on an urgent basis, information on material changes in their financial condition or operations. These disclosures are to be presented in terms that are easy to understand supported by trend and qualitative information of graphic presentations as appropriate. What we have been hearing from clients is that two of the most relevant and timely components of this law revolve around section 404 and section 409. Section 404 is …. Section 409 is… In speaking to Sarbox throughout the rest of this presentation, the contect of discussion will be narrowed to these two sections.

Section 302 Certifications……..
Certifications must include: CEO and CFO have reviewed the periodic filing and to their knowledge, information provided presents fairly the financial results of the company. CEO and CFO have established and maintain disclosure controls and procedures that ensure that all material information is made known to them. CEO and CFO have evaluated the effectiveness of the disclosure controls and procedures as of 90 days prior to the date of the periodic report and presented their conclusions in the report. CEO and CFO have disclosed all internal control deficiencies and any fraud, whether or not significant, that involves management or other employees who have a significant role in the companies internal controls. Statement of whether the company has established a Code of Ethics for senior financial officers. Other miscellaneous items.

Information and Communication
COSO – Internal Control Framework Monitoring Assessment of a control system’s performance over time. Combination of ongoing and separate evaluation. Management and supervisory activities. Internal audit activities. Control Activities Policies/procedures that ensure management directives are carried out. Range of activities including approvals, authorizations, verifications, recommendations, performance reviews, asset security and segregation of duties. Information and Communication Pertinent information identified, captured and communicated in a timely manner. Access to internal and externally generated information. Flow of information that allows for successful control actions from instructions on responsibilities to summary of findings for management action. Risk Assessment Risk assessment is the identification and analysis of relevant risks to achieving the entity’s objectives - forming the basis for determining control activities. Control Environment Sets tone of organization-influencing control consciousness of its people. Factors include integrity, ethical values, competence, authority, responsibility. Foundation for all other components of control. COSO identifies five components of internal control that need to be in place and integrated to ensure the achievement of each of the three main objectives. Monitoring Information & Communication Control Activities Risk Assessment Control Environment

COSO – A Framework for Internal Control Financial Reporting…….

Primary Areas of Focus …….after analysing Risk and determining the Control Environment Control Activities Completion of the documenting of internal controls Testing and implementing internal controls Sustaining internal control implementations Implementation of system based controls Information and Communication Financial Reporting from one database Timely distribution of information Monitoring Timely review of reports Internal audit function Proactive notification of material events

An accountability structure for Sec. 404 compliance

Internal Controls at every level in the business
Business Hierarchy Supported by Systems and Software Responsible Company/Group Business Strategy & Policies IT Infrastructure; Board of Directors; CEO; CFO; CIO Business Processes Integrated Application Software Operational Plans & Budgets CIO; Process Owners Accounting Transactions Integrated Financial Modules Job Instructions Process Owners; CFO; CIO; Controller; Users Financial Statements Periodic Accounting Process Integrated Reporting Tools CFO; CIO; Analysts Monitoring and Auditing Testing and Validation Proof of Control Shareholders; Board; CFO; Auditors

System Access is controlled
First level. Log-on network -User id -Password/fingerprints

Enterprise Level Controls……………
The term “entity-level controls” as used in this document describes aspects of a system of internal control that have a pervasive effect on the entity’s system of internal control such as: controls related to the control environment for example, management’s philosophy and operating style, integrity and ethical values; board or audit committee oversight; and assignment of authority and responsibility controls over management override the company's risk assessment process centralized processing and controls, including shared service environments; controls to monitor results of operations controls to monitor other controls, including activities of the internal audit function the audit committee, and self-assessment programs; controls over the period-end financial reporting process; and policies that address significant business control and risk management practices. The terms “company-level” and “entity-wide” are also commonly used to describe these controls.

System Foundation Suite
Ensures and manages the essential applications and functions necessary to run, operate and secure the M3 Enterprise Management System. Combines an industry standard, open run-time environment with tools for managing deployment, security and performance for all M3 Applications. Modules Include:- Application Foundation, Workplace Foundation, Web Application Foundation The M3 System Foundation Suite provides and manages the essential applications and functions necessary to run and operate the M3 Enterprise Management System. It combines an industry-standard, open-run-time environment with the tools for managing deployment, security and performance for all M3 applications. Among these tools are modules for managing all system output, scheduling background jobs and providing comprehensive field audit trails. M3 System Foundation centralizes all administrative activities involved in managing the system, reducing the cost of ownership, simplifying or eliminating non-value-added maintenance tasks and optimizing the use of expensive computing resources. “Java-based solutions like M3 score very high with respect to openness transparency and platform independence.” Jürgen Schmitt - PEPPERL+FUCHS

System Foundation Suite
Application Foundation Contains central supporting application functions, security and features that operate and ensure the management of the M3 Product Line. The framework the underlying foundation for M3 applications and modules. Workplace Foundation Provides the underlying foundation to enable Workplace portal with configuration, layout and access functionality Web Application Foundation Platform for M3 modules for web user interface, integration, tools and e-Commerce. Provides a rich web application deployment environment, and ensures mission critical support and allows companies to enable new innovations. The M3 System Foundation Suite ensures and manages the essential applications and functions necessary to run, operate and secure the M3 Enterprise Management System. It combines an industry standard, open run-time environment with tools for managing deployment, security and performance for all M3 Applications.

The M3 Application Foundation
Modules M3 Foundation Security Management Field Audit Trail Job Scheduler Output Management Environment Manager Solutions M3 Foundation contains central supporting application functions, security and features that operate and ensure the M3 Enterprise Management System. It is a well crafted framework that is the underlying foundation for M3 applications and component groups. Signature Features Highly scalable Reliable processes management Secure and traceable MEM is now called Life Cycle Management

Introduction – Company….. Business Processes…. Accounting Transactions…… Financial Reporting….… Intro – there have been “one or two” changes in my world of finance Today’s Agenda – is about transfer of information about our latest release M3 7.1 Applications There are over 71 items described in the NCR Database under Financial Applications FIC or FIM We have headlined 19 Key developments And I have tried to split these into two sections: Usability improvements – 2) Legal requirements – to allow our customers to operate within their legal framework And a new Release M3 7.1 (GA May 2007 in certain geographies – US; Mexico; France; Germany; Hong Kong; Singapore; Ireland; South Africa and UK) And a new User Experience – The Smart Client – a two stage UI development – panel cleanup and standardisation; new user interface Some things – stay the same – the FAC is now a merged group of M3 and S3 Product Managers - led by Lars Bremer Our customers are the same and face some old and some new business problems Audit Trail….. Summary

Business Hierarchy Supported by Systems and Software Lawson Product Company/Group Business Strategy & Policies IT Infrastructure; M3 Foundation M3 Life Cycle Management Business Processes Integrated Application Software Operational Plans & Budgets M3 Product Suite Accounting Transactions Integrated Financial Modules Job Instructions M3 Financial Applications Financial Statements Periodic Accounting Process Integrated Reporting Tools M3 Report Writer LBI for M3 Auditors – Internal/External Testing and Validation Proof of Control Field Audit Trail Financial Audit Report

Access Second level. Log-on to M3 -User id -Password First level.
Log-on network -User id -Password/fingerprints

Effective Internal Controls – for any business
It is the responsibility of management to safeguard the assets and liabilities of the business – so its normal part of business life It is also the management's job to maintain a system of internal controls over the financial reporting process to ensure that the financial statements will be reliable. The objective of internal control over financial reporting (“ICFR”) is to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (“GAAP”). The purpose of the evaluation of ICFR is to provide management with a reasonable basis for its annual assessment as to whether any material weaknesses in ICFR exist as of the end of the fiscal year. Beginning Your Evaluation Your company's evaluation of the effectiveness of its internal controls begins by having the certifying officers consider two basic questions: 1) Do my employees understand what they need to do to properly prepare external financial reports? 2) What information do I need to make sure they have done those things? The SEC's new management guidance suggests consideringthese questions in three steps.

Effective Internal Controls – Two Basic Questions
1) Do my employees understand what they need to do to properly prepare external financial reports? 2) What information do I need to make sure they have done those things? The SEC's new management guidance suggests considering these two fundamental questions in three steps. Step 1 - Identify Financial Reporting Risks and the Controls that address them. Step 2 – Do your Controls work in practice? Step 3 – Reporting your conclusions on overall effectiveness and deficiencies. How Much Evidence DoYou Needto Establish That Internal ControlsAre Effective? wbm Risk of Misstatement In Flnanclals Mmm RQ Risk of Conbol Failure In a smaller company, you may not need to assign any special personnel to the task of gathering evidence on how internal controls are operating. Likewise, the procedures you follow to obtain evidence of operating effectiveness may be integrated with the daily responsibilities of the employees. As internal control risk increases, however, you may need to consider:

Process Controls and Business Transactions
Functions Processes Sub Processes Process Controls and Business Transactions Systems and Tools for checking and validation Development of People within the Processes

Access Third level. Access to function in M3 Second level.
Log-on to M3 -User id -Password First level. Log-on network -User id -Password/fingerprints

Sub-Process Controls and Business Transactions
Functions Processes Sub-Process Controls and Business Transactions Sub-systems and Tools for checking and validation Development of People within the Process and sub processes

Example: Accounts Payable Process
Control Risk Control Objective Activity Completeness Material Accrual of transaction open liabilities not recorded Invoices accrued after closing In M3 every goods receipt transaction is accounted for Issue: Invoices go to field and AP is not aware of liability.

Evaluation and Assessment of the ICFR…..
Identifying Financial Reporting Risks and Controls a. Identifying Financial Reporting Risks b. Identifying Controls that Adequately Address Financial Reporting Risks c. Consideration of Entity-Level Controls d. Role of Information Technology General Controls e. Evidential Matter to Support the Assessment Evaluating Evidence of the Operating Effectiveness of ICFR a. Determining the Evidence Needed to Support the Assessment b. Implementing Procedures to Evaluate Evidence of the Operation of ICFR c. Evidential Matter to Support the Assessment Multiple Location Considerations Same country or different countries

Here is my Balance Sheet … where is the Risk ?

Financial Reporting Risks and their related Controls.
Key is knowledge of your business As applied to the generally accepted accounting principles that apply to your financial reporting Risk factors inherent in your business, both internal and external Risks in the way you authorize, process and record transactions that are reflected in the financial statements. Your company's vulnerability to fraud How do your entity-level controls relate to financial reporting elements? With what level of precision do they operate? Is there more than one control that addresses the same financial reporting risk? If so, which one provides the most efficient way for you to evaluate how well it works? Is the control automated? If so, how sturdy are the relevant IT controls? Or is the control manual – If so, what is the risk of human error? NOT every control within a particular process needs to be identified only those that adequately address financial reporting risks Identifying risks in your company's financial reporting starts with what you know best: how your business works. Use your knowledge of your company, as well as of how generally accepted accounting principles apply to the business, to identify which parts of the financial reporting process could lead to material misstatements. Think about "what could go wrong" by considering: Risk factors inherent in your business, both internal and external Risks in the way you authorize, process and record transactions that are reflected in the financial statements Your company's vulnerability to fraud To identify which controls address those risks, consider the following: How do your entity-level controls relate to financial reporting elements? With what level of precision do they operate? Is there more than one control that addresses the same financial reporting risk? If so, which one provides the most efficient way for you to evaluate how well it works? Is the control automated? If so, how sturdy are the relevant IT controls? Or is the control manual -and if so, what is the risk of human error? Not every control within a particular process needs to be identified -only those that adequately address financialreporting risks. Exactly how you go about identifyingyour company's financial reporting risks and the controls to address them will depend on your company's size, complexity, and organizational structure -as well as the particulars of the financial reporting process you use. In a smaller company with centralizedfinancial reporting, management's daily involvement with the business may provide it with adequate knowledge to identify the financial reporting risks and related controls. At the end of this process, you will have identified the financial reporting risks that are specific to your company, as well as the controls that will permit you to most efficientlydeterminewhether the company's financial reporting is reliable.

Minimizing Risk in Financial Reporting
Incorrect numbers or values Profits under or over stated by a material amount Liabilities under stated by a material amount Assets over stated by a material amount Incorrect presentation of accounts Impairment adjustments not charged to reserves Incorrect reporting framework – IFRS v US GAAP Numbers or values are misinterpreted Errors in assumptions made in preparing numbers/values Analysis of data used incorrect/flawed

How much evidence is needed ?
Evidence required is related to: Risk of Reporting mis-statement Risk of Internal Control failure – someone without authorisation changes a report layout – line rule

Reporting if the Internal Controls are working …
1. Evaluation of Control Deficiencies 2. Expression of Assessment of Effectiveness of ICFR by Management 3. Disclosures about Material Weaknesses 4. Impact of a Restatement of Previously Issued Financial Statements on Management’s Report on ICFR 5. Inability to Assess Certain Aspects of ICFR Step 2 –Do Your Controls Work in Practice? Determining the effectiveness of the controls you've identified requires that you gather evidence about how the controls actually operate. What kind of evidence you need, and how much of it, depends on your assessment of two kinds of internal control risk:

Integrated Business Processes
The order flow S u p l i e r s C u s t o m e r Procurement Production planning Sales & order Monitor the performance of other flows The logistic flow Receipt handling Production Warehouse/ Distribution Manage the financial flow This is what ERP software is designed to do With Integrated Financials – because businesses want to work this way All logistics transactions are accounted for in M3 The financial flow Accounts payable General ledger receivable

Access Third level. Access to function in M3 Fourth level.
Access to values Customer Supplier Division Cost center etc Second level. Log-on to M3 -User id -Password First level. Log-on network -User id -Password/fingerprints

Integrated Financial Solution…as presented in Sales
Procurement Logistics Service Orders Maintenance Orders Rental Contracts Sales Orders Project Orders Fixed Assets Human Resources Time Recording Accounts Payable General Ledger Accounts Receivable

Integrated Financial Solution…the database schema
Procurement Logistics Service Orders Maintenance Orders Rental Contracts Project Orders Sales Orders Fixed Assets Fixed Asset Master FFASMA Supplier Master CIDMAS Item Master MITMAS Customer Master File OCUSMA Chart of Accounts FCHACC Bank Accounts CBANMA Purchase Orders MPHEAD Service Agreements SSAGRH Customer Orders OOHEAD

Accounting and Reporting for - Inventory
Logistics CINACC Accounting Transactions FCR040 Daily Processes 1) Inventory Records Function MMS901 2) Create Accounting Function CAS 3) Update GL Function CAS960 Update General Ledger 1) Program GLS040 2) Check GLS036 3) Inventory Valuation CAS180

M3 Financial Core File Structure with Update Process
All entries to GL are validated by core checking program – GLS036 An update to AR always updates GL An update to AP always update GL etc

Audit Trail from the GL to the Logistics files
Stock Transaction. Display History (MWS070) Internal Account Entry.Display (CAS303) MO Operation. Display Transactions (PMS095) WO Operation. Display Transactions (MOS095) Order Costing. Display/ WO Costing. Display (CAS310/ CAS305) MITTRA MWOPTR MMOPTR CRACTR CPO…/ CPOCAW Internal Account Entry. Open (CAS300) Internal Account Entry. Create (CAS950) CINACC FGLEDG General Ledger. Display Transactions (GLS210) Internal Account Entry. Transfer To FIN (CAS960)

Accounting and Reporting Flows – Sales Revenues
Transactions OINACC Daily Processes 1) Invoice Customers Function OIS180 2) Update Financials Function OIS196 3) Create Sales Statistics Accounting Transactions FCR040 Update General Ledger 1) Program GLS040 2) Check GLS036 3) Audit Trail OIS680 In this actual case, Hutchinson Technology the prospect said that our connection of their real problems with our solution and the ability to demonstrate that we will bring value to them was one of the deciding factors for Intentia US. Each user walked away with a feeling that the implementation with Intentia was focused on their real problems and that we will them, users, value. This was very important for the management team that their users felt like this.

Account Builder… CRS395 ….controls all accounting

Financial Reporting and Accounting Transaction Flows
General Ledger – A/C 4010 1)INT/TFR XXX,XXX.nn 2)INT/TFR X,XXX.nn 3)INV/ADJ XX,XXX.nn Accounting Setups 1)OI DIM1 4010 2) OI DIM1 4010 3) CA DIM1 1410 This is the template. It was used as a summary after each section. We actually started to fill out the summary in order secure that we had a logical connection. During the presentation we first talked about the issues we jointly agreed upon during the site survey. Continuing with describing the solution first with power points followed by a physical demonstration. After the demo we the brought up the summary slide and the aim with the slide is to sell the fact that we now actually demonstrated a value for them. In this actual case, Hutchinson Technology the prospect said that our connection of their real problems with our solution and the ability to demonstrate that we will bring value to them was one of the deciding factors for Intentia US. Each user walked away with a feeling that the implementation with Intentia was focused on their real problems and that we will them, users, value. This was very important for the management team that their users felt like this.

Financial Reporting – The Process Flow
Report Writer 1) Sales EUR X,XXX,XXX,XXX 2) COGS EUR Y,YYY,YYY,YYY 3) EBIT EUR X,XXX,XXX On-Line Reporting GL Balances – Period 1) A/C X,XXX,XXX,XXX 2) A/C X,XXX,XXX 3) A/C X,XXX,XXX The GL Balance File The end process is statutory accounts – prepared in accordance with IAS or IFRS or local GAAP This is what the auditors have always given their opinion on and to give this opinion the auditors have always tested internal controls in general – and relied upon the test results proving internal controls are in place General Ledger – A/C 4010 1)INT/TFR XXX,XXX.nn 2)INT/TFR X,XXX.nn 3)INV/ADJ XX,XXX.nn

Business Reporting Supply Chain
External Financial Reporting Business Operations Internal Investment and Lending Analysis Processes Participants Auditors Trading Partners Investors Publishers and Data Aggregators Regulators Software Vendors Management Accountants Companies

Internal Controls over the Process of Financial Reporting
The process is designed and maintained by the management of a company to provide “reasonable” assurance about the reliability of financial reporting. External customers Internal customers Effective internal control over financial reporting is vital to the proper recording of base accounting transactions and the preparation of reliable financial reports. Such a control process has to be comprehensive and will involve employees at all levels (and all locations) throughout a company. It will include those who keep accounting records, prepare and disseminate accounting policies, and monitor systems, as well as people working in a variety of operating roles.

Financial Reporting – The Process Flow
Statutory accounts 1)Turnover EUR XXX,XXX,XXX 2) EBIT EUR X,XXX,XXX 3) EPS EUR XXX.YY On-Line Reporting Report Writer 1) Sales EUR X,XXX,XXX,XXX 2) COGS EUR Y,YYY,YYY,YYY 3) EBIT EUR X,XXX,XXX The GL Balance File The end process is statutory accounts – prepared in accordance with IAS or IFRS or local GAAP This is what the auditors have always given their opinion on and to give this opinion the auditors have always tested internal controls in general – and relied upon the test results proving internal controls are in place GL Balances – Period 1) A/C X,XXX,XXX,XXX 2) A/C X,XXX,XXX 3) A/C X,XXX,XXX

Profit and Loss – Pro-Forma
This Year Last Year IAS Turnover 1; 11; 16; 17; 18; 36 xxx,xxx,xxx xx,xxx,xxx Cost of Sales Gross Profit/Loss Other Operating Costs xx,xxx,xxx Operating Profit/Loss Financial Income/Expenses 23; xx,xxx,xxx Example P&L or Income Statement Profit before Tax 16; 17; 36 xx,xxx,xxx Taxation 12; xx,xxx,xxx Profit after Tax xx,xxx,xxx M3 Module – RGR for Financial Reporting

Text This slide has standard P&L by function PLINCS09
Then the transition shows P&L by segment PLBYSEG1 IFRS Report Generator Reports have been created in the Intentia Database on the Arena, you will be able to see them in the Education environment. The IFRS Income Statement (PLINCS09) is a summary statement. Reports PLINCs01/3/5/9 are linked. You can open detailed to drill from PLINCS09 into the detailed statements. To run the reports, run PLINCS01, this report will call the other reports. In this example P&L by Segment (PLBYSEG1): Segment A is chairs (product group 100), B is tables (200), C is bookcases (300).

My numbers are correct … where is the Risk ?

Inventory and WIP By: Warehouse Product Group Location Ageing etc

Finance – Inventory or Stock Valuation
64

Accounts Receivable By: geography/country customer type currency
Find Inventory FIFO v NRV over 12 periods from Scorecard By: geography/country customer type currency ageing/forecast business segment

Finance – DSO Days Sales Outstanding
66

Finance – Exception report top Overdue customers
67

Business Hierarchy Supported by Systems and Software Lawson Product Company/Group Business Strategy & Policies IT Infrastructure; M3 Foundation M3 Life Cycle Management Business Processes Integrated Application Software Operational Plans & Budgets M3 Product Suite Accounting Transactions Integrated Financial Modules Job Instructions M3 Financial Applications Financial Statements Periodic Accounting Process Integrated Reporting Tools M3 Report Writer LBI for M3 Auditors – Internal/External Testing and Validation Proof of Control Field Audit Trail Electronic Signatures Financial Audit Report

Implementing Compliance in Movex
This post under technology – requests some standard audit reports – – has 6 responses and been viewed on 78 occasions

Master Files and Field Audit Trail (FAT)
Several laws, compliance rules require that important files can be monitored regarding changed items, new items and deleted items.

Field Audit Trail – FAT Enhanced

Re-design of Field Audit Trail – FAT Enhanced
Start FAT manager.

Field Audit Trail – FAT Enhanced
We want to audit the MSRESP field. Select the MSRESP field. The fields are listed in alphabetical order.

New Role Based Security – SES400….replaces SES003..
SES400 – connects M3 Functions to the Roles in the Business Processes SES401 – permits access to options and function keys for these functions New Role Based Security – SES400….replaces SES003..

SES401 – Connects Users and Functions (via Roles)

MNS410 Connects Users to their Process Roles…
Process Roles are defined in MNS405 MNS410 Connects Users to their Process Roles…

Text nnnnn

Enable Lawson Document Archive as a shortcut
The electronic images are automatically stored and indexed into the Lawson Document Archive solution You can enable this as a short-cut onto your desktop

The PDF documentation of the change is stored in DAF
You can search for document by a variety of criteria The PDF document is created and added to the document archive The PDF documentation of the change is stored in DAF

Text nnnnn

From the Document Archive

Page 1 of 2 – the signature of person making change

Page 2 of 2 – the details of the change recorded…….

M3 Audit & Reconciliation Reports – 1 of 2
Already available…. APS500 – Accounts Payable listing ARS500 – Accounts Receivable listing APS580 – Goods Received Not Invoiced CAS515 – Inter Division Delivered to…. CAS520 – Inter Division Received by…. CAS530 – Inventory Reconciliation GLS218 – GL Balance File – on-line Audit Trail GLS940 – GL Balance File Analysis and Verification GLS960 – Voucher Number Check GLS965 – Journal Number Check GLS970 – Transaction File Check GLS975 – Voucher Balance Check GLS980 – GL Balance File Audit Report Include these reports on the Job Scheduler…??…

Other audit trails – proving financials – 2 of 2
Delivered with Heart Beat delivery….. GLS940 – GL Balance File Analysis and Verification …. Details to follow – ATE-13.1 Environment

GLR - Balance File Analysis…GLS940….

Introduction – Company….. Business Processes…. Accounting Transactions…… Financial Reporting….… Intro – there have been “one or two” changes in my world of finance Today’s Agenda – is about transfer of information about our latest release M3 7.1 Applications There are over 71 items described in the NCR Database under Financial Applications FIC or FIM We have headlined 19 Key developments And I have tried to split these into two sections: Usability improvements – 2) Legal requirements – to allow our customers to operate within their legal framework And a new Release M3 7.1 (GA May 2007 in certain geographies – US; Mexico; France; Germany; Hong Kong; Singapore; Ireland; South Africa and UK) And a new User Experience – The Smart Client – a two stage UI development – panel cleanup and standardisation; new user interface Some things – stay the same – the FAC is now a merged group of M3 and S3 Product Managers - led by Lars Bremer Our customers are the same and face some old and some new business problems Audit Trail….. Summary 89

Compliance is always about people and systems
By itself… software can never make a company compliant! Compliance Certificate It is your company processes and the way they are used that are compliant Our ambition is that M3 Applications can support your efforts to be compliant

Financial Compliance – The metaphor 1 of 2
Lawson would like to deliver a half-filled binder......or Database. Table of Contents Accounting plan Chart of account and accounting setups Accounting instructions Storage plan and information flows Data base model over financial areas Graphic overview over the financial system Information flows Verification chains Archiving plans Business processes Daily activities Period activities Year end activities Process for interim financial reporting Process for annual finacial reporting Material and tools to allow your employees to understand the internal controls to use and rely on Documentation to provide to your auditors internal and external – to reduce audit testing and time

Financial Compliance – The metaphor – 2 of 2
Organizational Rules & Procedures Authorization of supplier invoices Organization for interim reporting Organization for annual reporting Software log Used software – installed log Implemented changes Audit log - descriptions

Core Ledger Update Financial Structure

Supporting Documentation

Financial Processes supported by M3 Functions…

Simpler is Better

Compliance Within Lawson M3

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