When companies need to get their data in order, we can help. Our client, an aerospace industry startup using Acumatica for its ERP system had a critical data-related business problem: The company had won its first cost-plus government contract but needed to overhaul its master data structure to align with Cost Accounting Standards (CAS) and ultimately pass a government audit.
As a government contractor, the company is required to clearly allocate expenses by project and type (e.g., administrative or engineering costs)—what’s often called a work breakdown structure (WBS)—but the lack of granularity in their account structure prevented them from being able to accurately categorize and track costs in a detailed way.
Moreover, the system they were using—underpinned by an overly simplified data structure—made it difficult to accurately forecast and bid on contracts and manage project costs. They also needed greater cost transparency and detail to track and justify any cost overruns to the government.
Defining master data elements
We helped the client define the critical master data elements required to be in contractual compliance, while allowing for coding combinations and future cost pools. After reconfiguring the data structure in Acumatica, we exported and reclassified 12 months of transactional data—totaling more than 100,000 transactions. Using a translation table, we mapped historical transactions to the new data structure and created a documentation model for the new allocation methodology. Finally, we posted each month of reclassified entries and validated them against the trial balance.
The transformation of the company’s master data structure enabled easy compliance with their contract and prepared them for a successful first-time Defense Contract Audit for DCAA compliance. Moreover, they gained confidence in the accuracy and transparency of their contract cost forecasting and billing to the government.
After helping the client reconfigure its data structure to streamline its ability to comply with the government’s accounting requirements, we continued to work with them to achieve first-year Sarbanes-Oxley compliance.
Our Data Solutions services help businesses realize their potential through effective data practices over the entire data lifecycle—from creating a data governance strategy to implementing data management best practices and extracting actionable insights through data.
Contact us if you’d like to discuss how we can help with your data management challenges.
Read more about how we helped an aerospace startup implement a new master data structure and reconfigure its ERP to enable effective compliance with government contracts.
Restructuring Data to Enable Cost-Plus Government Compliance
Outcomes: Effective Master Data Management for Accounting
Our ability to implement a new master data structure and reconfigure our client’s ERP system delivered numerous benefits to the client:
Improved cost estimation and budgeting |
More efficient data management |
|---|---|
Enhanced project management and control |
Increased compliance and audit readiness |
Optimized bidding process |
Improved financial management |
Enhanced strategic planning |
System scalability and flexibility |
About the Author
Caroline Perez is a Principal with SolomonEdwards based in Houston. She specializes in OTC, P2P and shared services optimization initiatives. Her early background includes eight years in system software development under the Space Shuttle program for United Space Alliance.
