Issue

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

Recommendation

Optionally supplement with additional details or diagrams if required, else delete this 'Details' section.

New the Consolidation Tool will be deployed in the later Phase.  The exact phase will be concluded when the 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 integrated with the EPRs, rather data is loaded from the source EPRs.

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

Syensqo existing license is until xxxxx.

As-Is Systems Integration for Consolidations

Assumptions

Clearly describe the underlying assumptions which informed or limited the choices available, or impacted the decision: cost, schedule, regulatory requirements, business drivers, country footprint, technology, etc. Include links as necessary. This section is important because a future change in circumstances might invalidate some key assumptions, which then prompts a decision to be revisited. 

Deployment:

• S4HANA will be Deployment over more than one Phase.  

Tools:

• Group Reporting is the 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 Tool, 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 occurring in a later Phase of the deployment comes additional time in the detailed design phase, the final decision on the Consolidation tool will not be made at this stage.  Simplification and synergies can be gained utilizing and 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 financial statements and reports are produced from the Consolidations, risk will be a major consideration in the the decision making process. 

Constraints

Capture any additional constraints that the chosen alternative (i.e. the decision made) might impose on other parts of the overall design, solution, or processes.

BFC support ends in 2030.  It is assumed Consolidation will be deployment prior to this date.

Impacts

Describe the impact of the decision on processes, infrastructure, other SAP modules or systems, data cleansing and migration, developments, automations, interfaces, in-flight projects, etc.

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: 

• Timing and complexity of data conversion. 
• Aligned with the deployment decision historical data loads will occur in the later phase and and "one" load. 

Reporting:

• Report 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 phase.

Business Rules

The decision may translate into business rules which enforce the decision and will require configuration. List these business rules here. For example, "An Outline Agreement cannot be created via the RFQ process. An awarded RFQ can only result in a Purchase Order". 

• Existing BFC Rules will continue.

• S4HANA business rules relevant at this point in time will be largely caverned by the Enterprise Structure Definition. More specific Consolidation Rules will come in detailed designed.

Options considered

List the options (viable options or alternatives) you considered. These often require a longer explanation with diagrams, or references to other documents (links are best, but attachments are also possible). Use enough detail to adequately explain what you considered so that a project or business stakeholder reviewing this decision will not come back and ask "did you think about...?"; this leads to loss of credibility and questioning of other decisions. This section also helps ensure that you considered enough suitable alternatives rather than just copy/pasting SAP's recommendations.

Option A: Deploy Later

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

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

System: BFC will stay in place until the last phase of the deployment.

IC Eliminations: All existing intercompany elimination, reporting and reconciliation process remaim

Reporting: Existing Reports will continue from BFC

Existing ECC entities: will continue to integrated with BCF in the same manner.

Entities transition to S4Hana: will transfer data in the same manner as the ECC system entities.  Data load templates will remain the same, the data to fill the template will come from S4Hana.  Mapping of data will be required and tested. 

Pros

Risk \ Simplicity

• • • Low Risk, simple approach. Existing tool continued to be utilized. Loading from the existing source system not initially transferring to S$HANA will continue as is.  Data from the entities transitioning to S4HANA will follow the same\existing approach to load into BFC.  (Pro Rating = High)

Data Conversion

• • 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)

Parallel Testing

• • Allow the possible of more robust testing (parallel Testing) utilizing actual data. This is relevant for the base consolidation as well as reports. (Pro Rating = High)

Business Disruption

• • Most of the new processes\modules have an impact on the Consolidated result.  Allowing time for the initial phase\s to stabilise will result in more accurate data being automatically consumed by Consolidation, and leading to more accurate financials. (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 Deployment

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

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

System: BFC will be replaced by the new consolidation tool in the initial Deployemnt Phase. 

IC Eliminations: All existing intercompany elimination will be designed and build in the new tool.  Existing ECC entities will ne to adopt the new rules.

Reporting: Report 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. 

Entities transition to S4Hana: Data from S4HANA will automatically be consumed by the new Consolidation tool. 

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.

• • Process will need to be developed to integrate\interface\load data from the existing ECC systems.  This will require addition training for the transition period. 
  • Data conversion required earlier.  Less opportunity to test, rehearse, run in parallel.

Option C: Option Title

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

Option D: Option Title

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

Evaluation

Outline why you selected a position. The best format could be a pro/con table (sample below), but is up to you as the author. You must consider complexity, feasibility, cost/effort to implement, but also ongoing operational impact and cost. You must consider the program principles and explain any deviations in detail. This is probably as important as the decision itself.

	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

Insert links and references to other documents which are relevant when trying to understand this decision and its implications. Other decisions are often impacted, so it's good to list them here with links. Attachments are also possible but dangerous as they are static documents and not updated by their authors.

Change log

Workflow history