| Status | |
| Owner | Antonio Zappone |
| Stakeholders |
Issue
Treasury was recently approved to be part of the SyWay project scope. A decision is now required as to when to deploy Treasury activities, whether in Group 1, Group 2, or after Group 2 with the In-House Bank deployment.
Recommendation
Background & Context
DD075 - Future system to support Treasury activities
CR0003 - Transition Treasury from Quantum to S/4HANA
The above KDD and Change Request were approved to bring Treasury activities into the scope of the SyWay project,
A decision in now required as to when the deploy the Treasury modules within the SyWay deployment Groups. There are currently two official deployment groups, Group 1 and Group 2.
Relevant Treasury Modules in S/4HANA
- Treasury Risk Management (TRM)
- Cash Management (CM)
Assumptions
SyWay deployment for Release 4 will be execute in two groups, Group 1 & Group 2. Multiple group go-live adds significant complexity in regards to Treasury deployment.
Constraints
Existing Quantum License expires 14th June 2028.
Impacts
KDD070 - Deployment Approach for In-House Bank (IHB)
Extract from KDD070
Option E: Defer the deployment of In-House Bank functionality for all GBUs and Entities until after the second group go-live.
This Conceptual Design recommendation will be re-assessed during Detailed Design when more information will be available to support a decision. Options B, C, and E will form part of the reassessment. Any long lasting impacts on S/4HANA from the legacy interim IHB requirements will also be considered at this time.
Treasury and In-House bank and heavily integrated, as such the deployment timing of the In-House Bank comes into consideration.
For the purpose of this KDD, IHB go-live will be referred to as Group 3. Note: there is no official Group 3
Entity 2002 Syensqo SA (ECC Company code 2002)
Local Statutory Reporting for this entity is performed in 2002 \ PF2.
Treasury
This entity resides in PF1, and hold the accounting for both Treasury and the In House Bank.
Accounting entries from the PI1 system are interfaced into 2002 in PF2 to produce statutory accounts, and also interfaced to BFC from PF1.
Non- Treasury
Relevant non Treasury Activities also occurs in this entity, including Head Office activities and Intercompany service billing which 1) send invoices to WP1 2) Intercompany Billing SyWay design will change, and will also need to send Invoices to Multiple systems in the interim (between Group 1 and Group 2 Go-Lives).
Impact
The current system design for this entity adds complexity to the deployment approach for Treasury, which is one part of the Syensqo SA entity.
Analysis conducted for this KDD highlights that it is easier (less interim interfaces) to deploy entity Sysensqo SA with the rest of Treasury and IHB.
Go-Live Timing
Entity 2002 Syensqo SA resides in PF2 and hence is currently scheduled to go-live with Group 1.
The Go_-Live timing decision for the Sysensqo SA entity will be decided post this KDD. Should Sysensqo Go-Live in Group 1, recommended option moves to Option F. Option F still recommends Treasury going live in Group 2. The difference between Option E & F, is when the sysensqo entity goes live, and the increased number of interim interfaces.
Systems
Quantum: is the current Treasury systems
PI2: The treasury accounting and also the IHB reside in this separate system. The company codes is this system are 2232 & 4044.
PF2: The legal entity for Treasury and IHB is Syensqo SA, and this entity resides in PF1. The relevant company code in this system is 2002. Local Statutory reporting is performed from this entity\system.
WP2: For Treasury exposure management, the non IHB exposures for the entities within WP2 are required.
BFC: for Consolidation purposes, Syensqo SA (2002), send packages to BFC for Consolidation
Business Rules
There are no relevant business rules at this point in time.
Options considered
The main deployment consideration if Treasury TRM & CM.
However the decision requires consideration of a) go-live timing of the Syensqo SA entity b) go-live timing of IHB.
The below table represents the go-live timing.
Options Summary
| Activity to Deploy | Option A | Option B | Option C | Option D | Option E | Option F | Option G |
|---|---|---|---|---|---|---|---|
| Treasury (TRM & CM) | Group 1 | Group 1 | Group 2 | Group 2 | Group 3 | Group 3 | Group 3 |
| IHB | Group 3 | Group 3 | Group 3 | Group 3 | Group 2 | Group 2 | Group 3 |
| Entity Syensqo SA (2002) | Group 1 | Group 2 | Group 1 | Group 2 | Group 1 | Group 2 | Group 1 |
Option A: Deploy; Treasury (TRM & CM) with Group 1, IHB in Group 3, Syensqo SA in Group 1
Option B: Deploy; Treasury (TRM & CM) with Group 1, IHB in Group 3, Syensqo SA in Group 2
Describe the option in sufficient detail for a reader familiar with the subject matter to understand it properly
Option C: Deploy; Treasury (TRM & CM) with Group 2, IHB in Group 3, Syensqo SA in Group 1
Option D: Deploy: Treasury (TRM & CM) with Group 1, IHB in Group 3, Syensqo SA in Group 2
Option E: Deploy; Treasury (TRM & CM) with Group 2, IHB in Group 2, Syensqo SA in Group 2
Option F: Deploy; Treasury (TRM & CM) with Group 3, IHB in Group 3, Syensqo SA in Group 1
Evaluation
| Criteria | Option A | Option B | Option C | Option D | Option E | Option F | Option G |
|---|---|---|---|---|---|---|---|
Treasury: Group 1 | Treasury: Group 1 | Treasury: Group 2 | Treasury: Group 2 | Treasury: Group 2 | Treasury: Group 2 | Treasury: Group 3 | |
IHB: Group 3 | IHB: Group 3 | IHB: Group 3 | IHB: Group 3 | IHB: Group 2 | IHB: Group 2 | IHB: Group 3 | |
Syensqo SA: Group 1 | Syensqo SA: Group 2 | Syensqo SA: Group 1 | Syensqo SA: Group 2 | Syensqo SA: Group 1 | Syensqo SA: Group 2 | Syensqo SA: Group 1 | |
| Ease of integration of Cash Management (CM) |
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| Rating | Low | Low | Medium | Medium | High | High | High |
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| Efficient Management of IHB Exposures | IHB/PI2 goes live in Group 3
|  As Option A |
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| IHB and TRM go-live in S4 together.
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| Rating | Low | Low | Low | Low | High | High | High |
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| Efficient Management non-IHB Exposures |
| As Option A |
| As Option C | As Option C | |
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| Rating | Medium | Medium | Medium | Medium | Medium | Medium | Low |
Ease of Accounting for Treasury Deals (from Header Entity) |
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| Rating | High | Low | Medium | High | Medium | High | Medium |
| Ease of Accounting for IHB entities (2232 & 4044). |
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| As Option E |
| Rating | Low | High | Low | High | Low | High | Low |
| Ability and ease to implement and manage Intercompany Loans |
| As Option A |
| As Option C |
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|  As Option E |
| Rating | Low | Low | Medium | Medium | High | High | High |
| Ability and ease to perform Treasury transactions outside of central Treasury Entity | TRM goes live in Group 1.
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| TRM goes live in Group 2.
Existing Process with Deal in Quantum to continue in the interim period. | As Option C | As Option C | As Option C |
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| Rating | Low | Low | Medium | Medium | Medium | Medium | Medium |
| Ease of Cut-over at implementation |
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| Rating | Medium | Medium | Medium | Medium | High | High | Low |
SUMMARY | High x 1 Medium x 2 Low x 5 | High x 1 Medium x 2 Low x 5 | High x 2 Medium x 5 Low x 1 | High x 0 Medium x 6 Low x 2 | High x 4 Medium x 3 Low x 1 | High x 6 Medium x 2 Low x 0 | High x 3 Medium x 2 Low x 3 |
| OVERALL RATING | Low | Low | Medium | Medium | Medium | High | Medium |