Welcome to the Financial Excellence Stream

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New General Ledger Migration Project: Scenario 5

Presented by Lade Lawal

Global FICO Manager at Subsea 7

Agenda

• About Subsea 7

• Conception

• New GL Migration Project

• Conclusion

About Subsea 7

• About Subsea 7

– General Information

– SAP @ Subsea 7

• Conception

• New GL Migration Project

• Conclusion

General Information

• Over 14,000 employees

• Over 40 vessels

• Operate globally. Offices in Australia, Singapore, Nigeria, France, Norway, UK, Mexico, US, Brazil, Canada and many more

• seabed-to-surface

SAP @ Subsea 7

• One global SAP instance.

• Running ECC6, enhancement pack 5

• Modules include FICO, PS, PM, MM, SD, HR, Payroll plus others

• Over 7000 users

• Support team of approx. 20 based in Aberdeen

• Approx. 20 additional CapGemini remote support team

Conception

• About Subsea 7

• Conception – Reporting Challenges

– New GL Scenario Determination

– Engagement with SAP Back office

– Project Resourcing

– Governance & Team Hierarchy

– Testing, Training and Migration Strategy

• New GL Migration Project • Conclusion

Reporting Challenges

• Project balance sheet reporting

• Receivables and payable reporting by project

• Cash flow reporting

• Local GAAP data capture and reporting

• Improved integration between financial and management reporting

New GL Scenario Determination

• SAP moderated workshop with relevant stakeholders in attendance

• Scenario 5 was confirmed as the best fit

• Changes to finance interface from BDC to BAPI

• Project timeline and start date

• New GL courses for Project team

Engagement with SAP Back Office

• Complete questionnaire

• Confirmation of questionnaire by SAP Back office

• One-off payment to back office

• Special access key for Migration Cockpit

• Agree dates for;

– Scenario Validation

– Test Validation

Project Resourcing

• SAP Resources

• Other Resources

– Core team

– Focal Point at every accounting locations

– Testers

– Data validators after each rehearsals

• Governing Structure

Project Team Structure

• Steering Committee : X5 • Core Project Team : X5 (including 2 external resource) • SAP Resource : X3

– 1 Migration Expert (1 Additional Migration expert as at when required) – 1 Part-time Project Manager – 1 Remote Migration Specialist

• Other Teams involved with project – Basis team : X2 – Securities : X2 – Developers : X2 (Full time)

Governance & Team Hierarchy

Testing & Migration Strategy

• Several types of testing activities are required during the project: – SAP Technical Services (Scenario and Test Validation) – Business process testing (Unit testing and UAT) – Migration rehearsals – Technical tests (Changes in Z programs etc.)

• Each test cycle is distributed across the project phases

• See testing schedule on next slide

Testing Schedule

Training Strategy

• Few new transactions codes and reports but similar GUI

• New fields available as selection criteria for most existing reports

• End user training was delivered through: – uPerform (online through specific T-codes and pdf files for

publishing on BMS) – Finance process experts (PENs) Training – PENs provides end user training

New GL Migration Project

• About Subsea 7 • Conception • New GL Migration Project

– Overview – Migration Approach – Scenario 5 – List of Activities – Project Timelines – Phase Model – Business Process Changes – Technical Migration

• Conclusion

Overview

• New GL is the latest SAP financial accounting solution

• Document splitting functionality automatically provides improved balance sheet analysis

• New characteristic “Segment” is delivered to provide a balanced financial statement at product line

• Parallel accounting using multiple ledgers within the GL structure e.g. IFRS separate from local GAAP

Migration Approach

• Migration to New GL is only possible through the SAP Migration Service (via Migration Cockpit)

• Migration to new GL is scenario based

• There are 8 possible scenarios

• Phase Model Approach (i.e. Phases 0, 1 & 2)

• Two key dates are migration and activation date

Scenario 5 – List of Activities

• Replacement of different financial and management accounting total tables (GLT0, GLPCT, GLT3 & GLFUNCT) with a more robust totals table (FAGLFLEXT)

• Merge Profit Centre Accounting with financial accounting in New GL

• Activate document splitting in New GL • Switch from account approach to ledger approach

for local GAAP reporting

Project Timelines

• 9 months project, divided into 3 phases from July 2012 –April 2013

• Phase 0: July – Dec 2012 – Scope definition, blueprint, build and test – Complete business change around transaction/ data processing

• Phase 1: Jan – April 2013 – Migration from classic to New GL – New GL compliant data processing (New GL is inactive) – A technical migration of historical and current year data

• Phase 2 – Activation of New GL

Phase Model

Business Process Changes

• Analysis of all finance document types to enable accurate document splitting set-up

• Configuration of document splitting based on initial analysis

• Testing and fine-tuning of system set-up

• Change management before Dec 31st 2012

• Roll out change on Jan 1st 2013

Technical Migration

• Activation of New GL is at client level • Migration Date is as at the beginning of a fiscal year • Year end closing of previous fiscal year must be complete

prior to migration and activation of New GL • New GL can only be activated after successful data

migration • Post activation, posting to previous fiscal year is no

longer possible • Current year posting adjustments and clearing resets is

still possible

Technical Migration

• Unique data migration methodology • Migration cockpit :

– Provides a step by step guide through data migration

– Contains process tree divided into a number of phases

– Provides a traffic light monitor which helps to manage the migration

• Migration cockpit aids data migration based on target scenario

• SAP provide 24 hours remote support during migration and activation.

Technical Migration

• Creation of a migration plan • 3 worklists groups migration objects as;

– Prior year GL Account balances (Non-open items managed

account)

– Open items from previous fiscal year

– Phase 1 Documents (individual line items)

• Document splitting is applied based on business assigned profit centre (prior year open items and balances) or based on document splitting configuration (current year)

Conclusion

• About Subsea 7

• Conception

• New GL Migration Project

• Conclusion – Project Challenges

– Key Successes

Project Challenges

• Change in SAP migration expert during critical time • Migration BAdIs provided required additional

programing which could only be tested during migration rehearsal

• Parallel accounts to parallel ledger migration programs developed in-house could only be tested during a migration rehearsal

• SAP response time to non-productive issues • Inadequate reporting

Key Successes

• Business process go-live was managed with little or no business disruptions

• Productive go-live was completed in time for earliest start (in Singapore)

• Data validation was completed by the business during the go-live weekend

• Improved project/profit centre reporting • Enhanced product line reporting in SAP • Data for enhanced cash flow reporting is now available in SAP • Improved visibility on local GAAP reporting

Q&A

Key Links

New GL Questionnaire

https://websmp204.sap-ag.de/GLMIG

General Info on New GL Migration http://help.sap.com/erp2005_ehp_06/helpdata/en/44/07277eedc32ae6e10000000a422035/content.htm?frameset=/en/f7/e259d7ab064a61adb8e0e39c3a0e06/frameset.htm