Profit Center Reorganization · 2017. 2. 23. · Feature: SAP Reorganization Plan provides one...

Reorganization of Profit

Centers in ERP

Product Management SAP Landscape Transformation

SAP AG

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2

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

GR/IR Account

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.

Benefits

Flexibility: Fast adaption of organizational structures

Transparency: High data quality for Management Reporting.

Compliance: Approval Steps & Audit Trail.

Low TCO / TCI


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 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.




Take detailed

decisions Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization

Defines

reorganizat

ion plan

My Company

Profit Center 2

Profit Center 3

Purchasing

Production

My Company

Profit Ctr A

Profit Ctr 2

Profit Ctr 3

°°°

Purchasing

Production Profit Center A

°°°

Fast implementation of new organization

Low TCO / TCI

Reporting on fulfillment

Profit Ctr B


(CEO) Central Controller

Central Controller

Plant Manager

Sales Manager





Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization

Defines

reorganization

plan

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



Central Controller

Plant Manager

Sales Manager





Take detailed

decision

Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization

Defines

reorganizatio

n plan

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



Central Controller

Plant Manager

Sales Manager





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

Defines

reorganizat

ion plan

Reorg Completion

Period end

processes

in FI-AA, CO



Central Controller

Plant Manager

Sales Manager





Take detailed

decision

Report

Results

Monitors Status,

Triggers

automated steps

Management

decision:

corporate

reorganization

Defines

reorganizatio

n plan


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



Central Controller

Plant Manager

Sales Manager





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

Defines

reorganizat

ion plan

Reorg Completion



Central Controller

Plant Manager

Sales Manager



Status Management in the Reorganization Plan

Make

Detailed

Decision

Report

Results

Management

Decision:

Corporate

Reorganization

Defines

Reorgani-

zation Plan

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



Central Controller

Plant Manager

Sales Manager



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


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

https://service.sap.com/sap/support/notes/1801767


Derivation Hierarchy for Profit Center:

Objects Considered in Reorganization

Objects considered in reorganization:

Person responsible has to decide about the assignment

of the new profit center on the first level


SAP Landscape Transformation – Portfolio Overview

The Profit Center Reorganization is offered within the product portfolio of SAP Landscape

Transformation (see SAP Note 1534197)

http://service.sap.com/saplt




SAP LT – Requirements ‘Leverage Sell, Buy, and

Restructure’

There are two solutions for Profit Center Reorganization:

- Analysis for Profit Center Reorganization (as of SP06)

- Profit Center Reorganization


SAP LT – Project View with Execution Plan

Access to package that contains process tree

for the reorganization process


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


Edit a Reorganization Plan: Basic Data


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.


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


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


Analysis for Profit Center Reorganization

Availability: As of SAP Landscape Transformation SP06

New analysis included in SAP LT work center which compares profit center values of the

new General Ledger (FI-GL) with the respective profit center values in

- Fixed Assets (FI-AA)

- Materials Management (MM)

- Work in process (WiP) & SD Objects

- GR/IR Accounts

Aim: Check whether your system is consistent with regard to the profit center balances, i.e.

whether the balances of the areas mentioned above are consistent with the new general

ledger (FI-GL)

After profit center reorganization, you can prove that no inconsistencies occurred during the

reorganization

Recommendation: Start the analysis with a certain lead time before the reorganization and

harmonize any inconsistencies before the first profit center reorganization run

For further information, see SAP note 1943178



Analysis for Profit Center Reorganization - As of SAP LT SP06 -


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




Project Schedule Profit Center Reorganization

provide test system application testing

2014

August September October November December

Provision of SAP LT

Preparation and Blueprint

1. Reorganization in test

system Reorg date 1 October 2014

User Acceptance Test

2. Reorganization in test

system Reorg date 1 December 2014

User Acceptance Test

Reorganization in

production system

- Reorg date 1 February 2015

Kick-off

workshop

January February

2015

Sign off scenario

Test

confirmation …

Legend: reorganization milestone


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).

SAP‘s 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 (see

SAP note 1534197).






Further Information

Profit Center Reorganization

Functions in Detail

https://websmp101.sap-ag.de/~sapidb/011000358700000540412012E/ReorgProfitCentSegmERPen.pdf

Application Help

http://help.sap.com/erp2005_ehp_05/helpdata/en/93/87c1b6f74e4c82bc0a47d16b5007dd/frameset.htm

Business Function Documentation

http://help.sap.com/erp2005_ehp_06/helpdata/en/fb/84a48d665e4fa9a2dc7b60adeb7c7d/frameset.htm

SAP Landscape Transformation in general

Service Marketplace

http://service.sap.com/sapLT

Application Help

http://help.sap.com/saplt20

SAP LT overview documents

Video 1: SAP Landscape Transformation Software: Speeding Time to Value

Video 2: SAP Landscape Transformation 2.0
















http://www.sap.com/demos/richmedia/videos/sap-landscape-transformation-speeding-time-to-value-10-pt-us.epx

http://www.sap.com/demos/videos/demos/distribute/sap-landscape-transformation-software-speed-time-to-value-demo-us.mp4

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