Definition
A cutover date is the date a business stops recording transactions in its old system and starts in the new one, with opening balances brought in as at that date.
What is a cutover date used for?
Choosing it well makes migration simpler. Month-end or year-end dates are common, because the old books are closed and reconciled at that point. Everything before the cutover stays in the old system and everything after goes into the new one. Stock is usually counted on or just before the cutover, and open documents such as unpaid invoices and undelivered orders are carried across as opening balances.
Example: a distributor picks 30 September as its cutover, counts stock that weekend and starts invoicing in the new ERP on 1 October.
Don’t allow postings dated before the cutover, or old and new books will overlap. The ERP implementation checklist covers the full go-live plan.