1. finance
2. accounting and auditing

How To Select The Best Financial
Management System (FMIS)
Selecting a FMIS is extremely difficult given the number of systems available in the
market. However, there are some applications that are better suited to certain types of
organisations because of the unique nature of the industry and the need for real-time
reporting over a high volume of transactions.
In general, when searching for, or evaluating a FMIS, the following criteria should be
considered and rated in terms of importance to the business.
Product functionality – have a thorough look at how the functionality applies to your
organisation or department. You will find that some functionality is more critical to the
way the department runs. For instance, if you cooperate with a number of other
departments, it is important that the system enables you to view data across all of the
collaborating parties.
Product technology – ask the vendor about the technical architecture of the product,
and the technological environment in which the product can run successfully. Subcriteria include:
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product architecture
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software usability and administration
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platform and database support
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application standards support
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communications and protocol support
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integration capabilities.
Product cost - look not only at the initial product licence cost, but also consider longterm costs, including maintenance fees, upgrade costs, training and implementation
costs, and service & support fees. The term used by the vendors is total cost of
ownership. Ensure that the vendor can give you the best total cost of ownership across
the life of the system.
Modularity – ensure the system is modular so that you can adopt a phased
implementation approach.
Scalability – make sure that the product is able to accommodate for growth and also for
restrictions. Many systems are inflexible both in terms of growth of numbers of users and
also addition and subtraction of processes.
Configurability – ensure that the system can adapt to some of the processes that work
for your organisation. Some of the processes recommended by a vendor are often the
best possible process available, but there are times when as a niche business, you have
specific needs that need to be adhered to.
Stability – length of time that the system has been used by existing users and its
reliability in delivering the desired outputs over that period.
Adaptability to change – change is a constant in terms of shifting hierarchies and
structures. Ensure the FMIS is flexible enough to adapt to business process and
structural changes.
Integration - internal between functions/applications of the system as well as the ability
to interface/integrate with other systems/applications/desktop.
Utilisation of industry standard tools – such as XML/HTML.
Flexible Chart of Accounts restructuring - this will enable you to adapt to
organisational changes.
One source of data entry – to eliminate any rekeying or duplication of effort.
Corporate service and support – research the capability of the vendor to provide a
high level of services and ongoing support. Ensure that the vendor has the ability to
scale to meet high demand, either through sub contracting or through partners.
Corporate viability - examine the financial and management strength of the vendor.
Corporate strategy – ask the vendor for their corporate roadmap and strategy with
specific timelines regarding how the product will be developed, sold, and supported
within the specific market.
Knowledge of market – ensure that the vendor you choose knows about FMIS in
finance and is focused on business applications and not spread across other areas such
as hardware.
Speed of initial implementation – make sure that the vendor has demonstrated that
they can implement in a reasonable amount of time and they have a strong process for
implementation.
Case studies and testimonials – obtain information about sites that have implemented
before. They don’t necessarily have to be in finance, although this is highly preferable,
but they should have favourable things to say about the software and the services
provided by the vendor.
Support of the user community – obtain information about the user groups available
for the FMIS and the extent to which the vendor supports the community and interacts
with the user group.
Key Functionality For Financial Institutions
Large transaction volumes
Financial organisations need to process large volumes of transactions, both online and
in batch mode, via insurance and banking systems. The system you choose must be
able to scale up to large volumes of transactions in peak periods.
Different reporting requirements – internal and external
Real-time reporting hierarchies are required so information is presented in different
views, instantaneously. Hence, reporting is met for both internal (such as management
reports, business unit/divisional performance, product reporting) as well as external
(such as insurance APRA reporting, taxation and statutory reporting).
Powerful Allocations facility
The General Ledger module should have an allocations facility that enables financial
institutions to accurately report the profitability for classes of products and services.
Costs such as general overheads, head office, and management costs, can be allocated
down to the appropriate level for a true measure of profitability.
Average Daily Balances
The General Ledger module should offer a feature for banks and financial institutions
that are required to report average daily balances for selected balance sheet accounts,
both at posting and summary level. This feature should allow for average daily balances
to be calculated automatically and viewed online.
Key Functionality For Government Organisations
Tight controls
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The need for strong process management via workflow embedded in the FMIS.
Strong audit trails of transactions and processes for reporting purposes and historical
reference.
‘Funds availability’ checking
A function to ensure funds are not committed if they are not available. This checking
needs to occurs from the time a requisition is entered and followed right through to
payment.
Accomodates organisational change
A very flexible chart of accounts creation and maintenance function is needed that
allows accounts and hierarchies to be created and modified to accommodate constant
business and organizational changes.
Consolidation for whole of Government requirements
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Multiple reporting hierarchies to provide consolidated views of Government data.
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Data and processes must be able to be shared across departments and agencies.
Project costing and tracking suitable for a variety of agency requirements
A Job Cost module that provides a Project Ledger that allows project managers to
maintain specific information pertaining to their project i.e. descriptive, dates, budgeted
costs/revenue, actual costs/revenue, commitments, as well as billing data. If the module
is separate it overcomes the need to handle project tracking in the General Ledger and
yet can still be tightly integrated with the General Ledger.
Key Functionality For Retail Organisations
Scalable for rapid growth
The chart of accounts creation and maintenance functions must be flexible enough to
define stores very simply.
Different Reporting views
Flexibility in the chart of accounts structure plus multiple reporting hierarchies to allow
information to be viewed at different levels eg store, region, state, and company.
Weekly reporting capability
The General Ledger module must provide for selected accounts (eg sales) to be
maintained and reported based on weekly periods.
Easy integration to retail systems
The open architecture of the FMIS must allow for easy integration with Retail Point of
Sales and Merchandising systems.
A Project Costing module
A Job Cost module should be available that is well suited for project costing and tracking
of store fit outs and refurbishments.
This should include a Project Ledger that allows project managers to maintain specific
information pertaining to their project i.e. descriptive, dates, budgeted costs/revenue,
actual costs/revenue, commitments, as well as billing data. This needs to be tightly
integrated with the GL.
Masterpiece/Net - The SSA Global Technologies’ FMIS
Masterpiece/Net incorporates the latest Internet technologies to allow immediate access
to financial information regardless of time or location. Its unique design utilizes a Java ®
thin-client to provide seamless financial management across multiple operating systems,
databases and hardware platforms — from a desktop or via the Internet. Its powerful
reporting and analysis tools enable informed decisions to be made that maximize profits
and minimize costs, providing a lower total cost of ownership.
Masterpiece/Net can be clearly differentiated from the other FMIS that exist based on:
Configurability and ease of implementation
Masterpiece/Net has a proven track record with timely implementations, for the following
reasons:
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Modules can be installed and implemented only if required. When modules are
added, integration is automatically ‘switched on’.
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Similarly, features and functions within modules can be ‘switched on’ only if required.
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Software is installed once on a central server and accessed by ‘clients’ with a web
browser, thus making it easy to install, implement and deploy for multi
users/sites/locations.
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Our professional services consultants follow a proven project implementation
methodology for financial institutions that leads to timely outcomes.
Low cost of ownership
Masterpiece/Net’s architecture provides a low cost of ownership, from implementation to
on-going maintenance of the system. Its web based technology (based on XML) is a true
thin client and only needs a web browser (such as Internet Explorer) for access.
Modules are installed once on the applications server and do not require any additional
software to be installed on each user’s PC. Also, when changes and/or upgrades are
applied, software is only installed once.
Scalable and portable
Masterpiece/Net is suited to organisations of different sizes and number of users. Its
robustness and stability means companies can grow and expand and maintain their
investment with the product.
Also, Masterpiece/Net operates on a variety of platforms (including Windows NT/2000,
Unix, AS400 and mainframe) and utilises several databases such as SQL, Oracle,
Ingres, OS400 and DB2. Hence, Masterpiece/Net is easily portable from one platform
and/or database to another.
Adaptable to allow for business change
Masterpiece/Net is very flexible when an organisation’s business requires quick and
easy structure and reporting changes. Reporting ‘hierarchies’ can be easily modified to
reflect such business changes.
Adaptable to accommodate ‘Shared Services’
Masterpiece/Net’s organizational structure and concept of ‘file ownership’ means that
accounting and processing services such as chart of account files maintenance,
vendor/customer files, invoice and payment processing, can be handled centrally and
shared by multiple organisations and entities.
Processes large volumes of transactions
Masterpiece/Net is uniquely engineered to accommodate the large volumes of
transactions that financial institutions need to process every day. Its hierarchical
processing structure enables swift and accurate processing of transactions in real time.
Flexible access
It’s easy to modify financial data and post information to Masterpiece/Net using web
standard desktop tools such as Microsoft ® Office.
Masterpiece/Net Modules
General Ledger – completely manage your entire accounting system
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high-volume accounting, budget and allocation processing
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multi-company, global enterprises
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integrated, multi-hierarchical account structure
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multiple budgeting methods and reporting capabilities
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multi-currency functions
Accounts Payable – total payables management to control cash and expenses
flexible and customizable to meet specific business needs
multi-company, multi-currency, multi-bank and multi-national handling
flexible payment processing, advance tracking and invoice registration
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Accounts Receivable – increase cash flow and take control of accounts
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comprehensive debt and credit management
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increase your cash flow and reduce delinquency
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autocash facilities to streamline cash application integration processing
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full international support features
Purchasing – efficiently manage your entire procurement cycle
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provides tracking and control of purchasing from requisition to payment
Fixed Assets – accurately report,track, control and utilize all assets
internal and external asset accounting and property control
unlimited depreciation books
user-defined depreciation methods
full integration with Purchasing and Accounts Payable
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Job Cost – take control of your projects – from beginning to end
plan and record costs in the Work Breakdown Structure (WBS)
fast, accurate summary and detailed inquiry and reporting
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Draft Services – create negotiable instruments from Accounts Receivable
increase credit management productivity
reduce customer risk and optimize cash management
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Fund Accounting – total expenditure control
meets the requirements of commitment accounting
facilitates stringent budgetary control
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Inventory Control – effective inventory management
monitor finished goods in multi-location environments
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Labor Distribution – control and report on labor costs and allocations
automates accounting for labor costs, including project costing
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Business Communications Facility (BCF) – share data across the Internet
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SmartVision ™ – view, print, share, add notes and attach files to any
Masterpiece/Net report
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SmartLink™ – download online data in real time to Microsoft Excel ® spreadsheets,
manipulate it and then upload it back to the host
Business Process Flow (BPF) – automate the workflow of your organization
Supported Environments
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AS/400®
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MVS
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UNIX®
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(Hewlett Packard ® , Sun®, IBM®, Sequent®)
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VSE®
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Windows NT®
Supported Databases
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Datacom ®
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DB2 ®
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Informix ®
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Ingres II ®
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Oracle ®
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SQL® Server
SSA Global Technologies’ Extension Solutions for
Masterpiece/Net
SSA Global Technologies has a simple approach when it comes to extending the power
of Masterpiece/Net. We look for the best solutions in the marketplace and develop
seamless integration interfaces to enable users to exploit the numerous benefits
associated with advanced eBusiness technologies. Extended solutions include:
eCommerce
Masterpiece/Net iProcurement powered by Digital Union® is a complete online
procurement solution that integrates the entire supply chain and enables authorised
buyers in an enterprise to initiate, manage and complete electronic purchasing
transactions with a choice of approved supplier including request for quotation functions.
Furthermore, it can also be set up to do reverse auctions using corresponding built-in
features.
Customer Relationship Management (CRM)
Masterpiece/Net CRM is a suite of collaborative, Internet-based CRM and analytics
solutions powered by industry leaders Applix® – and specially modified for the needs of
Masterpiece users. It lets companies track and coordinate marketing, sales, customer
and partner service, quality assurance and helpdesks; and helps global organisations
capture, access and analyse customer data through their channel of choice, 24x7x365. It
comprises four linked Masterpiece modules: CRM Sales, CRM Service, CRM Helpdesk
and CRM Analytics.
Business Intelligence – Enterprise Performance Analytics
The bottom line for any competing business is that they need to be on top of business
trends: monitoring what the company is doing well and what could be done better;
understanding market shifts and use that information to improve and grow strategically.
Pre-packaged Enterprise Performance Analytics solution, powered by market leader
Cognos®, is the answer to reaching these goals. It incorporates leading-edge analytical
and reporting tools to deliver a best-of-breed Business Intelligence solution for
Masterpiece/Net. Functional data marts in Sales, Inventory, Procurement, General
Ledger, Accounts Receivable and Accounts Payable can be deployed department by
department. When implemented together, they create a rich data warehouse that
provides an essential 360° view of the business and allows valuable cross-departmental
analysis. EPA answers 600 critical business questions, using more than 400 key
business measurements and over 200 predefined reports that allow business managers
to analyse sales performance, build customer profiles, understand buying trends and
monitor product performance and overall organisational effectiveness.
About SSA Global Technologies
SSA Global Technologies, Inc., is a leading provider of enterprise solutions for services,
government, manufacturing and consumer companies worldwide. SSA GT's
applications easily integrate with strategic business applications to deliver e-business,
business intelligence, customer relationship management (CRM) and supply chain
management (SCM) solutions. Headquartered in Chicago, SSA GT serves more than
7,500 active customers who represent market-leading companies in over 90 countries
from 121 worldwide offices. For additional information, visit the SSA GT web site at
www.ssagt.com