1. Overview
This page offers a thorough and detailed overview of all the enterprise structure objects used within Syensqo, covering key areas including Finance, Sales, Procurement, and Supply Chain. Additionally, it also outlines the numbering rules applied to each of these enterprise structure objects.
Finance: This section includes critical components such as company codes, cost centers, profit centers etc... Each of these elements plays a vital role in financial management and reporting, helping to track expenses, manage budgets, and ensure accurate financial statements and compliance with regulations.
Sales: This section includes sales organizations, Sales groups, divisions, and related entities. These components are essential for structuring sales operations, managing customer relationships, and driving revenue generation. Understanding these elements helps streamline sales processes and align them with overall business strategies.
Procurement: This part focuses on the structures involved in sourcing and acquiring goods and services. Key objects include Purchasing Organisations, Purchasing groups. These elements are crucial for optimizing procurement processes and ensuring efficient supply chain operations.
Supply Chain: This section provides insights into the structures that support the flow of goods from production to delivery. Key objects include plants, warehouses, storage locations, and distribution centers. These elements are integral to managing logistics, optimizing supply chain efficiency, and ensuring timely delivery of products.
By understanding these enterprise structure objects, stakeholders gain a holistic view of how Syensqo’s operational processes are organized and managed. This comprehensive overview facilitates better alignment with strategic goals, enhances decision-making, and improves overall operational efficiency.
2. Enterprise Structure Objects Numbering
Overview
Currently, there are varied and disjointed numbering rules across multiple enterprise structure objects within the numerous existing ECC/SAP systems. This inconsistency poses a significant challenge when migrating to the S/4HANA system, as the differing number ranges and numbering rules in each of these systems complicate the use of consistent numbering. However, with the ERP Rebuild Hub program, there is an opportunity to align and standardize the enterprise structure definition and numbering to ensure that the new system maintains data integrity and coherence. This program can facilitate the harmonization of number ranges and rules, making the transition to S/4HANA smoother and more efficient. Standardization not only addresses the immediate challenges of migration but also simplifies future system maintenance and scalability, promoting overall operational efficiency and ensuring that all enterprise structure objects are accurately and uniformly numbered in the new environment.
Recommendation
To address the current inconsistencies, it is recommended to align and standardize the enterprise structure definitions and numbering. This process will involve referencing old numbers for search purposes to maintain continuity and ease the transition. A detailed list of the new enterprise structure numbering rules can be found in the document Enterprise Structure Definition.
Impact
Implementing this recommendation will require a one-time mapping and cleansing effort in both upstream and downstream systems and applications that utilize the existing enterprise structure. This step is essential to ensure that all references to the old structure are updated to align with the new standardized numbering system, thereby facilitating a seamless integration into the S/4HANA environment and ensuring consistent data management across all systems.
3. Finance Enterprise Structure
This section will detail the Finance Enterprise Structure objects and the proposed design along with the Rational for the same.
3.1. Enterprise Structure Objects
| Enterprise Structure Object | Proposed Design | Options Considered | Detailed Evaluation Required | Design Decision Rational | Requirement to Differentiate GBU? | GBU Differentiation Method | Naming Convention Rule | Naming Details | Additional Information |
|---|---|---|---|---|---|---|---|---|---|
Controlling Area | Single 'Controlling Area' for Syensqo | No | No | Provides a consistent approach to cost capturing, inventory valuation and reporting across the organization. | No | AAXX | AA - Alphabetic, 2-chars code (‘CO’ for corporate objects, ‘LO’ for local objects) E.g. CO01 (Corporate Controlling Area) | ||
Operating Concern | Single 'Operating Concern' for Syensqo | No | No | Provides global profitability analysis by enabling group-wide consistent treatment of transactions and flow of values captured against common characteristics (e.g. product, customer, market). | No | AAXX | AA - Alphabetic, 2-chars code (‘CO’ for corporate objects, ‘LO’ for local objects) E.g. CO01 (Corporate Operating Concern) | ||
Company | One 'Company' per each legal entity (consolidated & non-consolidated)* | No | No | Setting up companies for every entity enables the consolidation process and allows for consolidated group reporting of Financial results out of S/4 HANA's consolidation system in the future. | No | 9999 | Numeric, 4-characters (9 representing a digit from 0-9). | *Exceptions may apply for historic reporting of reporting entities. | |
Company Code | One 'Company Code' per 1.) each (consolidated) legal entity 2.) JV operator entity (consolidated & non-consolidated) * | Yes | Yes | KDD058 - Finance Enterprise Structure | Yes | Profit Centre Group | 9999 | Numeric, 4-characters (9 representing a digit from 0-9). In the intervals of 10 starting from 1000. | *Exceptions may apply for existing non-consolidated SAP entities from PF1/WP1 but require DA approval. |
Credit Control Area | Single 'Credit Control Area' for Syensqo | Yes | No | There were 2 options considered of configuring the credit control area
Given that Syensqo has an in-house bank which centrally manages receivables for the majority of Syensqo entities and credit policies are uniform across all Syensqo entities, it makes sense to continue with a single controlling area setup as per current practice. Additional credit segments may be introduced during detailed design if more autonomy is required at country/GBU level with regards to credit limits for better customer relationship management. | No | AAXX | AA - Alphabetic, 2-chars code (‘CO’ for corporate objects, ‘LO’ for local objects) E.g. CO01 (Corporate Credit Control Area) | ||
Segment | One 'Segment' per Operating Segment reported externally by Syensqo. | Yes | No | To support segmental reporting requirements as per IAS, the organizational unit 'Segment' will be used to break down Financial Statement items according to Syensqo's operating segments. The alternate option considered was to define the 'Segment' at GBU level. Within Syensqo, GBUs are subject to reorganizations on regular basis and hence require a flexible reporting instrument. Profit Centre groups are considered a more flexible instrument to represent GBUs in the system as 'Segment' assignments to profit centres can only be changed with substantial efforts once Financial transactions are recorded in the system. | No | AAAA | Meaningful 4-character code with the following base setup: MATE (Materials) CONS (Consumer & Resources) CBSY (Corporate & Business Services) | ||
Standard Profit Centre Hierarchy | To be decided during the detailed design phase. | Yes | Yes | KDD029 - Reformation of Finance Master Data | No | Naming conventions to be discussed and agreed on during detailed design phase. | It is expected that Profit Centre hierarchy groups align with GBU at some level within the hierarchy. | ||
Standard Cost Centre Hierarchy | To be decided during the detailed design phase. | Yes | Yes | KDD029 - Reformation of Finance Master Data | No | Naming conventions to be discussed and agreed on during detailed design phase. | |||
Chart of Accounts | To be decided during the detailed design phase. | Yes | Yes | KDD029 - Reformation of Finance Master Data | No | XXYY | Alpha-numeric 4 characters following the below coding conventions: XX: YY: | ||
Chart of Depreciation | One 'Chart of Depreciation' per country | No | No | Fixed Asset capitalization and valuation rules can differ per country legislation. To be able to flexibly respond to changes in the local GAAP accounting requirements for Fixed Assets, it is advisable and best practice to define a Chart of Depreciation at country level. | No | ZXX9 | Alpha-numeric 4 characters whereby the following convention shall be followed: Z - Prefix to distinguish custom from SAP standard content XX - ISO country Code 9 - Running Number (starting with 0) |
3.2 Mapping to other Applications
This section describes the applications and modules that the finance enterprise structure objects are mapped to.
Target system / application / Module | Enterprise Structure Object | Source system / Application / Module | Enterprise Structure Object | Comments |
|---|---|---|---|---|
S/4 HANA | Company Code | S/4 HANA Project Portfolio Management | Area Code | |
Ariba | Company Code | |||
SAP TM | Company organization | |||
SAP GTS | Company Code | |||
SAP SF | Legal Entity | |||
SAP Concur | Company |
4. Sales Enterprise Structure
This section will detail the Sales Enterprise Structure objects and the proposed design along with the Rational for the same.
| Enterprise Structure Object | Proposed Design | Options Considered | Detailed evaluation required | Design decision rational | Requirement to differentiate GBU? | GBU Differentiation method | Naming Convention Rule | Naming Details | Additional Information |
|---|---|---|---|---|---|---|---|---|---|
Sales Organization | One Sales Org per company code and GBU | Yes | Yes | KDD060 - Sales Enterprise Structure | Yes | Sales Org | NNNN | Numeric Running code aligned with the company code in interval of 10’s Ex: Company code : 1000 Sales Org 1 : 1010 Sales Org 2 : 1020 | |
Distribution Channel | One distribution channel per external sale channel One Intercompany Sales Channel | No | No | Used in Syensqo take care of different types of sales in a sales organization ex: External Sales, Intercompany etc. | No | No | NN | Numeric running number starting from 10 in interval of 10's 10 - External Sales 20 - Intercompany | |
Division | To be determined during the detailed design based on the product grouping | No | No | KDD060 - Sales Enterprise Structure | No | No | NN | Numeric running number starting from 01 Example: 01 - HYFLON PELLETS [EL] 02 -POLYMIST [EW] | Division is considered as a option to achieve the GBU differentiation. Please refer to KDD060 - Sales Enterprise Structure for more details |
Sales Office | The Sales Office will represent Syensqo’s sales territories and geographic locations - The actual values will be determined during the detailed design | No | No | N/A | No | No | NN | Numeric running number starting from 1000 interval of 10 | |
Sales Groups | A sales group will be a group of people (or an individual) who are (is) responsible for selling certain products or services. To be determined during the detailed design | No | No | Used for reporting | No | No | NNN | Numeric running number starting 001 |
This section describes the applications and modules that the Sales enterprise structure objects are mapped to.
Source system / application / Module | Enterprise Structure Object | Target system / Application / Module | Enterprise Structure Object | Comments |
|---|---|---|---|---|
SAP S/4 HANA | Sales organization | SAP TM | Sales organization | |
CX* | Sales organization | |||
Sales Area | Sales Area | |||
Sales Office | Sales Office | |||
Sales Group | Sales Group |
5. Supply Chain Enterprise Structure
This section will detail the Supply Chain Enterprise Structure objects and the proposed design along with the Rational for the same.
| Enterprise Structure Object | Proposed Design | Options Considered | Detailed evaluation required | Design decision rational | Requirement to differentiate GBU? | GBU Differentiation method | Additional Information |
|---|---|---|---|---|---|---|---|
Plant | To set-up as a plant, after evaluating the steps in the decision tree for managing plant. | Yes | Yes | KDD059 - Supply Chain Enterprise Structure | Yes - Inventory value | Plant decision tree has a step to create a separate plant to differentiate the GBU (Only in case valuation is different in both GBU's). Profit Center Allocation if more than one GBU exists in the same plant | |
Maintenance Plant | A Maintenance Plant will be established for each Logistics Plant where asset maintenance management activities are carried out | No | No | No | |||
Planning Plant | One planning plant for manufacturing centers and one for the rest of the plants in the company code (if maintenance activities exist in the company code) | No | No | KDD059 - Supply Chain Enterprise Structure | No | ||
Storage Location | A storage location is created to represent the physical stock. There are exception scenarios where partner storage locations are created ex: Unpacking for a HU location | No | No | The primary criteria to create a storage location is based typically on a physical representation of where inventory is stored | No | ||
Warehouse numbers | To set-up as a Warehouse, after evaluating the steps in the decision tree for managing Warehouse. | Yes | Yes | KDD014 - Future-proof Warehouse Operations | No | ||
Shipping Points / Goods Receiving Points | At least one shipping point per plant. A new shipping point in a plant if new address or when pre-defined loading or pick/pack times are different (e.g. Export shipping point vs domestic shipping point.as Export shipping point might load into containers and domestic only loads into truck. | No | No | Shipping points are created based on the goods receiving points for inbound deliveries and goods issuing points based on the outbound deliveries in the plant | No |
This section describes the applications and modules that the Supply Chain enterprise structure objects are mapped to.
Source system / application / Module | Enterprise Structure Object | Target system / Application / Module | Enterprise Structure Object | Comments |
|---|---|---|---|---|
SAP S/4HANA | Plant | Ariba | Plant | |
GTS | Legal Unit | |||
SAP S/4HANA | Storage Location | GTS | Legal Unit | |
SAP S/4HANA | Warehouse Number | SAP EWM | Warehouse number |
6. Procurement Enterprise Structure
This section will detail the Procurement Enterprise Structure objects and the proposed design along with the Rational for the same.
| Enterprise Structure Object | Proposed Design | Options Considered | Detailed evaluation required | Design decision rational | Requirement to differentiate GBU? | GBU Differentiation method | Additional Information |
|---|---|---|---|---|---|---|---|
Purchasing Org | One purchasing org per country + One global purchasing org | No | No | One Purchasing Org per country fulfils all the purchasing requirements for Syensqo. The global purchasing org can be used to negotiate group wide contracts Design closely aligns with the existing Org Structure | No | N/A | |
Purchasing Group | To be decided after detailed design | No | No | N/A | No | N/a |
This section describes the applications and modules that the Procurement enterprise structure objects are mapped to.
Source system / Application / Module | Enterprise Structure Object | Target system / Application / Module | Enterprise Structure Object | Comments |
|---|---|---|---|---|
SAP S/4 HANA | Purchasing organization | Ariba | Purchasing organization | |
Purchasing organization | TM | Purchasing organization | ||
SAP S/4 HANA | Purchasing Group | Ariba | Purchasing Group |