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In today’s dynamic business companies restructure often, merging and demerging activities are part of it. This leads to carve-out projects in SAP system. This blog is about key areas involved in these projects.


Carve-out project is about de-linking of business operations from the parent company and move to separate system or another existing system. Either seller or buyer can do carve-out activities and also it can be done before or after identifying the potential buyer.

Following are options and this can be have any combinations from seller and buyer perspective

Source system Target system

1. Delink specific company code

2. Delink specific plants from company code

3. Delink specific product lines from existing plant and company code

1.  Addition of new company code

2.  Addition of new plants to the new company code or existing company code

3.  Addition new product lines to new plant and company code or existing plant and company code


In concept phase, business process owner of source and target system involve in scope definition of system architecture, business process, migration, de-migration, testing and cutover.



To summarise, carve-out projects are critical as this should not impact existing process of the target sytem. Also, migration to target should be followed by a de-migration activity in the source system.


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