Issue

Decision is required as the when to deploy the SAP In-House-Bank.

Recommendation

Background & Context

The existing IHB within ECC resides in PI1, within the legal entities SSA and ????.   Interfaces are current in place to link PF1 and WP1 to the IHB in PI1. 

All entities are mandated to participate in the IHB process, except where it's not legally possible.  For example, China, x ,x ,x , is not part of the IHB due to legal restrictions.

A high level of complexity exists with IHB largely due to the internal factoring process. Internal factoring brings benefits in the way of cash concentration and tax savings.

Internal factoring is not a common process and not supported by standard SAP, hence the current solution is supported by nemerous complex custom developements.  To "to-be" design will aim to streamline and simplify, hwever it is epected that some level of custom delopments will still be required. 

Cash movements related to payments and receipts is a higher risk area of any ERP implementation. The internal factoring complexity increases the risk.

Assumptions

IHB and internal factoring will continue in S4HANA.

Constraints

Nil 

Impacts

Depending on the approach,  interfaces from S4HANA to PI1 need to be considered. If they are required, the existing interfaces from PF1 \ WP1 will need to be replicated for S4HANA.

Business Rules

Participation in the IHB will continue to be mandatory unless not legally supported.

Options considered

Early deployment of IHB was considered, however  due to its impact on extending the overall ERP project imeline, and also requiring early 

Option A: (Overall Deployment = "Phased" OR "All-in-one") Defer the deployment of IHB  for all GBUs/entities

Option B: (Overall ERP Deployment = "Phased") Deploy IHB for live GBUs/entities in-line with the Phased Releases.

This option entails running two IHBs.  One IHB in PI1 for entites still on ECC,  and a second IHB for GBUs\entities that have S4HANA for transitioned to S4HANA.

This allow

Option C: (Overall ERP Deployment = "Phased") Deploy IHB for live GBUs/entities in the second Release with the Phased Releases.

Option D: 

(Overall ERP Deployment = "All-in one") Deploy IHB for live GBUs/entities in line with th all-in-one go-live.

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