espresso sap lt profit center reorganization 11 2013

Frank Gelbarth, 22.11.2013

Service Manager Profitcenter-Reorganisation

Profitcenter-Reorganisation im

laufenden Betrieb

Reorganization of Profit

Centers in ERP

Product Management SAP Landscape Transformation

SAP AG

SAP 2013 / Page 3

Solution Overview

Reorganization of Profit Centers

New Features Description Target Users

Reorganization

of profit centers

Reorganization scenarios Merge

Split

Change

Reorganization Scope: Current Assets

W I P

Fixed Assets

Receivables / Liablities

P&L

Change of master data, transactional data and value flow

Audit Trail

Generic framework allowing customer specific adoption

Controller (responsible

for overall

organizational model )

Line Manager / Project

Manager / Plant

Manager (responsible

for detailed

reassignments)

Reorganization Management: Defined procedure for organizational change in ERP

Reorganization Plan: Unique and comprehensive view on reorganization measures.

Financials > Financial Accounting

Benefits

Flexibility: Fast adaption of organizational structures Transparency: High data quality for Management Reporting. Compliance: Approval Steps & Audit Trail. Low TCO / TCI

SAP 2013 / Page 4

Feature: SAP Reorganization Plan provides one

unique & complete view on reorganization process

* * Take

detailed

decisions

Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization

Corporate Management

(CEO)

Defines

reorganizat

ion plan

Central Controller

Financials > Financial Accounting > Reorganization Management

Central Controller Central Controller

Plant Manager

Sales Manager

Cost Accountant Accountant

Business Value

Single point of entry for defining, triggering,

monitoring and reporting on a reorganization

plan.

Customer business challenges

Break down a management decision for a

reorganization aim into a well defined

reorganization plan.

Align all related parties, identify their specific

responsibilities, initiate and monitor all necessary

activities.

Provide the database for audit trail.

SAP 2013 / Page 5



Take detailed

decisions Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization


(CEO)

Defines

reorganizat

ion plan

Central Controller



Plant Manager

Sales Manager


My Company

Profit Center 2

Profit Center 3

Purchasing

Production

My Company

Profit Ctr A

Profit Ctr 2

Profit Ctr 3

Profit Ctr B

Purchasing

Production Profit Center A

Fast implementation of new organization

Low TCO / TCI

Reporting on fulfillment

SAP 2013 / Page 6



Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization


(CEO)

Defines

reorganization

plan

Central Controller



Plant Manager

Sales Manager


Take

detailed

decisions

Break down reorganization decision into well defined tasks

Assign decision tasks to people in charge

Monitorinig of reorganization progress

Reorg Date Reorg Completion Prior Period closing

Change orders

Period end

processes

in FI-AA, CO

Change WBS element

Change Master

Cumulative

Transfer

postings of

balance sheet

accounts

04/01 04/30

Define

Reorganization

Plan

Change cost center

SAP 2013 / Page 7



Take detailed

decision

Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization


(CEO)

Defines

reorganizatio

n plan

Central Controller



Plant Manager

Sales Manager


Execute tasks according to plan

Report on fulfillment


Change orders

Period end

processes

in FI-AA, CO

Change WBS element

Change Master Cumulative

Transfer

postings of

balance sheet

accounts

Define

Reorganization

Plan

Assign

New

Profit Ctr

to

Objects

04/01 04/30

Change cost center

SAP 2013 / Page 8




Define

Reorganization

Plan

Assign

New

Profit Ctr

To

objects

Prior Period closing

Change orders

Change WBS element

Change master records

Transfer

postings of

balance sheet

accounts

Reorg Date

Change cost center

04/01 04/30

Take

detailed

decisions

Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization


(CEO)

Defines

reorganizat

ion plan

Central Controller Central Controller Central Controller

Plant Manager

Sales Manager


Reorg Completion

Period end

processes

in FI-AA, CO

SAP 2013 / Page 9



Take detailed

decision

Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization


(CEO)

Defines

reorganizatio

n plan

Central Controller



Plant Manager

Sales Manager


Execute tasks according to plan

Report on fulfillment


Period end

processes

in FI-AA, CO

Define

Reorganization

Plan

Assign

New

Profit Ctr

to

Objects

Change cost center

04/01 04/30

Change orders

Change WBS element

Change Master Cumulative

Transfer

postings of

balance sheet

accounts

SAP 2013 / Page 10




Define

Reorganization

Plan

Assign

New

Profit Ctr

To

objects

Prior Period closing

Change orders

Period end

processes

in FI-AA, CO

Change WBS element

Change master records

Transfer

postings of

balance sheet

accounts

Reorg Date

Change cost center

04/01 04/30

* * Take

detailed

decisions

Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization


(CEO)

Defines

reorganizat

ion plan


Plant Manager

Sales Manager


Reorg Completion

SAP AG 2013 Page 11

Status Management in the Reorganization Plan

Make

Detailed

Decision

Report

Results

Management

Decision:

Corporate

Reorganization


(CEO)

Defines

Reorgani-

zation Plan


Plant Manager

Sales Manager


1. Objects are selected by system

Status: Object in the Reorganization

2. Objects are assigned to experts

Status: Object Released for Object Owner

3. Object Owners enter profit center assignments

Status: Approved for Further Processing

4. Objects are reassigned to new profit centers

Status: Reassignment Successful

5. Transfer Postings for Balance Sheet Items

Status: Balance Determination Successful

Monitors Status,

Triggers

Automated Steps

Scope of Profit Center Reorganization:

Considered Objects

Material

Sales Order

Purchase Order

Payable

Receivable

GR/IR Account

Fixed Asset

Internal Order

Cost Center

WBS Element

Network

Network Activity

Cost Object

Production Order

Process Order

Product Cost Collector

Accrual Calculation Order

QM Order

Maintenance Order

and all related open processes

SAP AG 2013 Page 12

Currently Out of Scope

In SAP ERP 6.0 EhP5 the following features are out of scope:

Restatement (historical reporting under the new entity assignment)

Commitments

Real Estate objects

Accrual objects of the accrual engine

Allocation cycles in New GL

Contract Accounting (FI-CA, profit center for receivables)

Plan data (planning integration, manual entries)

G/L accounts with open item management will not be considered in reorganization;

exception GR/IR account in case the document split is activated

Sales documents with revenue recognition

ALE scenarios

The new profit center to which an object is assigned needs to be valid in the same

company code as the old profit center -> no cross company transfer posting possible

P&L postings into the reorganization period without a cost object carrying the profit center.

For more information see SAP Note 1801767

SAP AG 2013 Page 13

Derivation Hierarchy for Profit Center:

Objects Considered in Reorganization

SAP 2013 / Page 14

Objects considered in reorganization:

Person responsible has to decide about the

assignment of the new profit center on the first level

SAP 2013 / Page 15

SAP Landscape Transformation Portfolio Overview

SAP LT Requirements Leverage Sell, Buy, and Restructure

SAP 2013 / Page 16

SAP 2013 / Page 17

SAP LT Project Overview

SAP 2013 / Page 18

SAP LT Project View with Execution Plan

Access to package that contains process tree

for the reorganization process

SAP 2013 / Page 19

SAP LT - Process Tree I

Create REORG Plan,

identify affected

objects and

assign owners

Closing operations for the prior

period, completion of the

reorganization and activities after

closing the reorganization plan

SAP LT- Process Tree II

Represents the view of the Reorganization Manager

Guides him step-by-step through the complete profit center reorganization

process

Each activity in the process tree is documented

The process monitor provides information about the execution of the

reorganization (activity logs, start and end times etc.)

Process tree is automatically generated when the profit center

reorganization project in the Solution Manager system is created

SAP AG 2013 Page 20

Edit a Reorganization Plan: Basic Data

SAP AG 2013 Page 21

SAP 2013 / Page 22

Creating a Reorganization Plan:

General Restrictions

These will appear in the lists for the object

owners, to ensure that they can only use these

profit centers when they make their

reassignments!

The profit centers entered under

General Restrictions determine the scope of reorganization.

SAP 2013 / Page 23

Assign New Profit Center Assignments and

Approval for Further Processing

The object owner makes the assignment using

profit centers listed in General Restrictions Finished Materials (FERT..) are assigned

to profit center 8124

On completion, the owner sets the status to

Approved for Further Processing Central Controlling can now complete the

reorganization

SAP 2013 / Page 24

Reassignments, Transfer Postings, Finalize

Reorganization

Once the reorganization key date has been

reached, the object lists are used to document the

reassignments

The derivation hierarchy determines all items

affected by the profit center change

The assignment of a material from profit center A to

profit center B will affect all dependent objects

After successful and complete reassignment the

general ledger transfer postings are executed

Finally, the reorganization plan is closed

Project Setup and Testing Profit Center

Reorganization

Profit Center Reorganization requires the setup of a project

Appropriate testing with 1-n test cycles depending on the complexity and requirements of

the project necessary

Suitable test environment required

Test system should be a recent copy of production system

Test and production system should be on latest Support Package level

All relevant SAP notes have to be implemented in the systems affected by the

reorganization. For a list of these SAP Notes, see SAP Note 1471153)

For more information on Profit Center Reorganization, see SAP Note 1810605

SAP AG 2013 Page 25

Project Schedule Profit Center Reorganization

provide test system application testing

2013

August September October November December

Provision of SAP LT

Preparation and Blueprint

1. Reorganization in test

system Reorg date 1 October 2013

User Acceptance Test

2. Reorganization in test

system Reorg date 1 December 2013

User Acceptance Test

Reorganization in

production system

- Reorg date 1 February 2014

Kick-off

workshop

January February

2014

Sign off scenario

Test

confirmation

Legend: reorganization milestone

SAP AG 2013 Page 26

Some Key Points to Take Home

Profit Center Restructuring can affect not only the profit center assignments in your general

ledger but also all data that feeds into the general ledger (e.g., inventory postings, payables,

receivables and expense postings).

SAPs reorganization plan allows you to create a framework to select all the affected profit centers, gather sign-offs from affected managers (experts), and perform all reassignments

including transfer postings.

You can prepare for the reorganization long before the key date.

The reorganization postings are performed with reference to that key date.

Cost centers are handled by creating a new data slice for the new profit center assignment.

Other objects are not time dependent. You must be careful to ensure that all close activities

are completed properly before you start to reorganize.

Transfer Postings can be updated in the general ledger using a special document type.

A special transaction type identifies them for consolidation (transfer posting for

material, assets).

Profit Center reorganization requires the setup of a project with appropriate testing in a

suitable test environment (see SAP Note 1810605 for further details)

The new function is offered within the product portfolio of SAP Landscape Transformation.

SAP AG 2013 Page 27

Weitere Webseminare

SAP CO-PA Accelerator Rapid Deployment Solution

26. November 2013, 13.3014.10 Uhr

Planung und Hochrechnung von Kapitalanlagen

29. November 2013, 13.3014.10 Uhr

SAP 2008 / Page 29

Thank you!

Frank Gelbarth

Senior Solution Consultant

Financials & Compliance

SAP Deutschland AG & Co. KG

Hasso-Plattner-Ring 7

69190 Walldorf

[email protected]

www.sap.com

espresso sap lt profit center reorganization 11 2013

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