In this second blog post from the series ‘’Selective Data Transition Approach for S/4HANA projects – a Finance perspective’’- we will focus on one of the simplest types of SDT projects, which is very similar to a regular system conversion: selective company code transfer.
In this scenario a customer on ECC would like to convert to S/4HANA just some company codes. This is slightly a different scenario than the one explained in note 522155 - Company Code Specific Conversion to S/4HANA: Information, as this one implies there is already a live S/4HANA system and there are several migration* waves at different points in time.
* in this context data migration refers to the move of the master and transactional data from the source ECC system to the new data structure in S/4HANA
These blog posts series will illustrate the S/4HANA conversion activities which can be applicable to such projects, and it will not go into a deep detail describing the selective data, tools and processes as such.
At the same time, this blog post wants to create awareness regarding the complexity of such projects.
An SDT project is a complex project, specific to each customer, where specific data modifications are done at table level. Such data modifications must be done properly and consistently to ensure the future stability of the S/4HANA system.
Specifically to the scenario addressed in this blog post- selective company code transfer – even if the data is not modified, it is still copied at the table level, and this could create potential inconsistencies.
Testing of processes in the converted system with migrated data and newly created data must be thoroughly executed. Data reconciliation must be performed between ECC system and S/4HANA system.
This blog post reveals how features and procedures known from the system conversion approach can be used as a basis for data consistency in an SDT project. However, these features and programs are not entirely sufficient, and each project should carefully consider appropriate consistency checks measures, based on the specific environment and detailed project scope. Also, according to the tools used in the SDT project (often, non-SAP expert tools are used) additional or different consistency checks may be required.
Please refer to the information provided in this blog post as a minimal series of measures and checks to be considered based on SAP standard available programs.
For more complex SDT projects, the same approach can be used but needs to be enhanced with additional steps &checks or follow a different sequence according to the specific scope.
Coming back to the specific scenario we address in this blog post series, the process and the recommended steps are quite similar to a regular system conversion.
Let’s start now by placing the regular finance conversion activities in the system conversion diagram- for the 3 systems involved: legacy system, the shell system and SAP S/4HANA.
Legacy System - Prepare phase
As in a regular system conversion, we start already the preparation in the ERP /source system environment. Even from the planning phase, before starting of the project, we can execute the Readiness Check, the Simplification report and identify any potential preparation activities. Maybe certain prerequisites for SAP S/4HANA are not met (e.g., introduce parallel currencies depreciation areas in Asset Accounting) or any other activities which you decide to do based on the Readiness Check and the Simplification Items report.
In the legacy system, which is usually a fresh copy of the Production system we will execute the SI (Simplification Items) check report and identify any required adjustments. According to each case, we might decide to introduce these items directly in this source system and later, after testing, in the Production system.
There are currently two categories of reports available:
Reports which were not developed specifically for a conversion project, but they are already available in ERP and their use can be extended to this type of project- ex.: RAABST01, RAABST02, RM07MBST, etc
Reports specifically developed for an SAP S/4HANA conversion, like FIN_CORR_RECONCILE, FIN_AA_CORR_RECONCILE, FIN_ML_CORR_RECONCILE
These reports specifically designed to evaluate the data prior to an SAP S/4HANA conversion, should be considered as a prerequisite for any SDT initiative.
At the same time, all these available reports cannot (yet) ensure that every data inconsistency can be detected from source system already. Executing the Financial conversion is still a prerequisite to have an accurate view.
Specifically, for the scenario approached in this blog post, you will have to execute these reports mainly for the selected company codes.
Ideally you should perform a full period end closing for the company codes to be converted. Some period end closing activities are mandatory and some are optional. For a full list of activities, please check again note 2332030 - Conversion of accounting to SAP S/4HANA.
Document your posting data
Once you have executed the balance carry forward, you will have to select a series of reports to execute in the Legacy System and again in the S/4HANA system to ensure the data was not altered.
In note 2332030 - Conversion of accounting to SAP S/4HANA there is a series of recommended reports like financial statement - RFBILA00, asset history sheet- RAGITT_ALV01, etc. These reports are not mandatory, so you can discuss with the auditors as well and have a different selection.
The financial statements (program RFBILA00)
The totals report for cost centers (transaction S_ALR_87013611)
The general ledger line items list (program RFSOPO00)
The compact document journal (program RFBELJ00)
The asset history sheet (program RAGITT_ALV01)
The depreciation run for planned depreciation (RAHAFA_ALV01)
The vendor sales (program RFKUML00)
The vendor open item list (program RFKEPL00)
The customer sales (program RFDUML00)
The customer open item list (program RFDEPL00)
The customer recurring entry original documents (program RFDAUB00)
These reports will have to be executed for the relevant company codes in scope for the SDT project.
You will see that most reports are executable by company code, where company code is not a selection criterion (e.g., the controlling reports) you should use the suitable selection criteria (e.g., cost center groups) and find only the data related to the SDT company codes.
Besides that, any difference in the reports will have to be investigated.
Legacy System - Realize Phase
Since data are not migrated now and preparation of customizing is not executed in this phase the realize phase is pretty empty here. The ECC legacy system is basically used only for the preparation activities.
Shell Copy- Prepare phase
Identify and review the relevant Simplification items & check the customizing pre-checks from the Simplification Items report and adapt settings if required
Even if we should ensure the SI check report is ‘’green’’ already in the legacy system, technically we will execute it again in the Shell system - to ensure this specific ‘’box’’ is again ‘’green’’ and ready to be converted.
As the ‘’shell system’’ does not carry any transactional data, consistency checks, data reconciliation, closing and reports snapshot do not really make sense. The only exception here will be the Asset Accounting year end and month end closing, as the prerequisites in this area are validated by the SI checks.
Shell Copy - Realize phase
Preparation and Migration of Customizing
This step is executed to align the “to be converted” system with the specific customizing that is necessary for SAP S/4HANA (e.g., Ledger, Currencies, CO Versions, Document types in Controlling). This migrates your Finance, Controlling, Asset Accounting and Material Ledger Customizing to the new structures in S/4HANA.
Even considering the example of SDT related to specific company codes, it is not possible to select specific company codes to be converted but the entire customizing must be converted. This means that the shell system will have to include from the beginning only the relevant company codes.
Since we are on the shell copy and we do not have any transactional data, the realization part is limited to the migration of customizing.
The SAP S/4HANA system, is the system where the data migration is going to happen based on the selected company codes. There are no activities to be done here in the preparation phase, as these must be completed in the Legacy System.
SAP S/4HANA - Realize phase
We execute here the master data transfer and the transactional data migration to the target system in both backup tables and standard tables. The move of data is done by each Selective Data Transition partner with selective tools. As there are no standard SAP tools available for such purpose, validating the result of data migration is an essential step.
For the migration of master data, in case the company code(s) to be considered in the SDT project are part of a controlling area along with other company codes not part of the SDT project scope, some more thoughts should be elaborated on each project side.
For example, there are some master data that are company code relevant (e.g., Cost Center) but some others are not (for example statistical internal orders) so creation of master data and reconciliation of transactional data should be taken in consideration and tailored to the project’s scope.
Once the data regarding the selected company codes are updated in the backup and standard tables, and the master data are transferred, everything must be run as a normal conversion. Some master data are part of the FIN standard data migration (e.g., cost elements, house bank accounts) but most of them are not and should be transferred selectively.
Since Conversion of customizing was already executed in the Shell Copy, data migration must now be executed.
Here, the same reports we executed in the Legacy System- Document your posting data phase, will be re-executed to validate the migrated data was not impacted.
As explained in the Legacy System- Document your posting data the execution result of Controlling Reports in the converted system may be different from the ECC. So, in ECC you should find a suitable selection criterion to exclude the data for the not relevant company codes.
A specific topic to consider when the selective company code transfer project is planned, is how to exactly manage the potential intermediary phase, from inter-company processes point of view- for those cases where it is not possible to ‘’take over’’ all the company codes where the intercompany transactions have high occurrence and/or complexity.
What is your experience with this type of SDT projects?
Brought to you by the SAP S/4HANA RIG along with colleagues from SAP DMLT, Product Management, SAP Consulting
(Dear reader, we appreciate your time and thank you for reading the blog post. Please feel free to share your feedback (if any) from your experience in SDT projects to add more details to the content).