Issue

A key decision is required on when to deploy the new Consolidations Consolidation tool.  Along with a multiphase ERP implementation comes options on when to deploy, whether in Phase Release 1, 2 or Xn.

Recommendation

New the The new Consolidation Tool will to be deployed in the later Phaselast Release.  The exact phase release timing will be concluded when the overall project Deployment Approach is finalised (estimated to be August 2024). 

Background & Context

BFC (Business Objects Financial Consolidation) is the current consolidations tool. This is an SAP system however it is not fully integrated with the EPRsSAP ERPs, rather data is loaded from the source EPRsSAP ECCs.  Data loads are via flat files that are produced with automation tools (RPA).

SAP is phasing out BFC and support will cease in 2030 (extended from 2027).

As-Is Systems Integration for Consolidations

Image AddedSyensqo existing license is until xxxxx.

Assumptions

Deployment:

• S4HANA S/4HANA will be Deployment Deployed over more than one PhaseRelease.  

Tools:

• Group Reporting is the current/latest SAP Consolidations Module.  This module would be the preferred Consolidations tool as it is within the S4HANA landscape.  With the implementation of the new Consolidation tool to occur in the later Phase of the deployment comes additional time in the detailed design phase.  As such, the suitability of Group Reporting for Syensqo will be assessed in the next phase, and is not part of the Key Decision at this point in time.
• With the implementation of the new Consolidation tool to occur in the later Phase of the deployment comes additional time in the detailed design phase. 
• Group Reporting is the current\latest SAP Consolidation Toolfor consolidation processes, and is on the SAP Roadmap for the future.
• Simplification and synergies can be gained utilizing and fully integrated SAP Module. with deployment occurring in a later Phase of the deployment comes additional time in the detailed design phase. however the decision on the Consolidation tool will be made in detailed designed.  
• with deployment With the Syensqo consolidations tool implementation occurring in a later Phase Release of the deployment comes additional time in the detailed design phase, the Release. The final decision on the Consolidation tool will not be made at this stage, and is not a key decision of this document.
• Simplification .  Simplification and synergies can be gained utilizing and a fully integrated SAP Module, and it is assumed Group Reporting will be utilized unless there are major gaps in the business requirements.

Risk.

• As the organisations Syensqo's financial statements and reports are produced from the Consolidations , risk will be a major consideration in the the decision making process. tool.  A risk resides in presenting inaccurate numbers.  A key evaluation criteria will relate to the deployment approach which lowers this risk.

Design, Build and Test. 

• The timing of when dedicated Consolidations resource will commence will be determined in line with the overall Deployment approach, taking into consideration transition to new a application, integration of design, and resource costs.
• Design and build in the initial Release\s will support parallel testing of S4HANA Group Consolidations with the existing BFC tool. This will contribute to de-risking the deployment.

Constraints

BFC product support by SAP ends in 2030.  It is assumed Consolidation will be deployment prior SAP Group Reporting or alternative Consolidations tool will be deployed prior to this date.

Impacts

Below are the major impacts on the decision are on the following:

Integration impacts:Interfacing or data loading into the consolidation system.

There is an impact

whether data is flowing into BFC or new Consolidation tool. 

• Aligned with the deployment decision, loading data packages into BFC from the source system, being PF1, WP1, or S4HANA, will continue.

Data Conversion: Timing and complexity of data conversion.

• Aligned with the deployment decision, historical data loads will occur in the later phase and and "one" loadRelease. Conversion will be a one off activity upon deployment. 

Reporting:

Reports currently being produced from BFC.

• Aligned with the deployment decision, existing Reports will continue to be produced from BFC until the new Consolidation tool is implemented in the later phaseRelease.

Business Rules

• Existing BFC Rules will continue.

• S4HANA S/4HANA business rules relevant at this point in time will be largely caverned governed by the Enterprise Structure Definition. More specific Consolidation Rules will come in detailed designeddesign.

Options considered

Option A:

Deferred Deployment

Continue with BFC in the initial phase\s Releases and deploy the new Consolidation tool in the later PhaseRelease

Orange Box and Arrows are new / added, the rest remains as is.

Image Added

Key Points:

• System: BFC will stay in place until the last Release of the deployment.
• IC Eliminations: All existing intercompany elimination, reporting and reconciliation processes remain.
• Reporting: Existing Reports will continue from BFC.
• Existing ECC entities: will continue to integrate with BFC in the same manner.
• Entities transitioning to S4HANA: will transfer data in the same manner as the ECC system entities.  Data load output templates will remain largely the same, the data to fill the template will come from S4HANA.  Mapping of data will be required and tested. 

Option B: Upfront Deployment

Implement the new Consolidation Tool and discontinue BFC in Release 1 of the Deployment.

Orange text Boxes show what will change with an upfront deployment.

Image Added

Key Points:

• System: BFC will be replaced by the new consolidation tool in the initial Deployment Release.
• Intercompany Eliminations: All existing intercompany elimination will need to be designed and built in the new tool.  Existing ECC entities will need to adopt the new rules to integrate with the new tool.
• Reporting: Reports from BFC will need to be replaced with new S4HANA equivalents. 
• Existing ECC entities: will need to load data into the new consolidation tool, new templates and processes need to be developed.  Additional training also required for the interim.
• Entities transition to S4HANA: Data from S4HANA will automatically be consumed by the new Consolidation tool. 

Evaluation

Pros

• Easier data conversation taking the historical data at one point in time.  A later deployment allows more time to manage\test\rehearse the historical data conversation. (Pro Rating = High)

Cons

• Benefits from the new Consolidation tool to be realised at a later point in the deployment horizon. (Con Rating = Medium)

• Manual data feed to continue. (Pro Rating = Low)

Option B: Upfront Consolidation Deployment

Implement the new Consolidation Tool and discontinue BFC in Phase 1 of the Deployment.

Pros

• Benefits from the new Consolidation Tool to be realised earlier.

Cons

• Higher Risk approach with high likelihood of business disruption for the initial closing periods.
• High complexity in managing the intercompany elimination with some data coming from the ECC and not part of the integrated S4HANA design.

Option C: 

Option D: 

Evaluation

Pro

Con

Pro

Pro

Pro

Con

Pro

Con

Pro

Con

Pro

Pro

Con

Con

Preferred Option

Option A - Deferred Deployment is the recommended approach. 

Option A is a lower risk option for reporting financial results for the organisation, along with an easier transition period. Although the benefits coming from the new Consolidation system are deferred, they will still be realised, albeit at later date.

See also

Change log

Workflow history