Issue

Syensqo is currently operating in a multi-system SAP landscape which is the result of acquisitions of organizations with separate SAP systems and legacy decisions to keep separate SAP systems for confidentiality reasons (e.g. WPX for classified information of materials used in the defense industry, PI1 to ring-fence access to data and transactions pertaining to in-house banking). This has lead to disparities between the two systems in terms of Finance master data in use across the various systems, most notably on key master data objects such as Chart of Accounts or Cost Centres and Profit Centres.

With a move to a single SAP system, opportunities arise to harmonize master data from the various systems and define new master data frameworks and associated governance rules to ensure that all master data objects follow a single design and purpose in the new system with the goal of increasing transparency, efficiency and accountability across the organization.

Recommendation

Background & Context

Multiple Finance master data objects do not follow a consistent and unique master data governance design and approach across the organization due to its diverse system landscape which has grown over time from acquisition activities as well as special requirements with regards to data confidentiality. As part of the transition to S/4 as a single system of records, the following master data objects have been identified as potential candidates for further rationalisation and simplification:

1.) Chart of Accounts:

A single operational Chart of Accounts resembling the consolidated group Chart of Accounts which can be used across all Syensqo entities globally can lead to potential benefits such as

• Reduced Reconciliation Efforts: A single operational Chart of Accounts which uses the group Chart of Accounts as the baseline helps to reduce reconciliation efforts across all teams involved in Financial Accounting processes end-to-end ranging from operational to management to group and statutory reporting teams, everyone is working with the same or vastly similar set of base data which doesn't require additional mappings or other aggregation methods to be understood by the various teams involved at the various levels of the Financial reporting chain.

• Time Savings at Period-End: At period-end where time is of essence, time-savings can be realized by the reduced need for mappings and data aggregations to lift Financial data from the operational accounting system up into the consolidation engine for consolidated group reporting purposes. Again, reduced reconciliation efforts across the various teams from the largely unified data sets are expected to lead to time gains at period-end.

• Unified Process Views: Across the organization, a single set of G/L accounts will lead to unified process views globally. Accountants will have a consistent view of process results as G/L accounts used in the processes serve one and the same purpose globally across all Syensqo entities set up in S/4 HANA.  Governance rules will be defined which will help to keep the accounts set up in a streamlined way across the organization supporting global process designs.

• Lower Administration Efforts: The administration efforts to maintain G/L account master data are expected to decrease from using a single operational Chart of Accounts. G/L accounts are defined and managed centrally with a single governance strategy applicable to all Syensqo entities operating in S/4 HANA.

• Cleansed Accounts: A higher degree of cleansed accounts and books can be expected from a single operational Chart of Accounts that is managed centrally. Critical account control settings such as open item management or account currency settings that can heavily influence the data hygiene on G/L accounts will be set and monitored centrally.

2.) Profit Centres and Profit Centre Hierarchies:

3.) Cost Centres and Cost Centre Hierarchies:

Assumptions

Constraints

Impacts

Business Rules

Options considered

Option A: 

Option B: 

Option C: 

Option D: 

Evaluation

	Option A	Option B	Option C	Option D
Criterion 1	Pro Con	Pro Pro	Pro Con	Pro Con
Criterion 2	Pro Con	Con	Pro Pro	Con Con
Criterion 3	Pro	Con	Con	Pro

See also

Change log

Workflow history