Status
Owner	Bernard Ng
Stakeholders	The business stakeholders involved in making, reviewing, and endorsing this decision. Type @ to mention people by name

Purpose

The purpose of this document is to define the conversion approach to migrate GL line items relating to VAT (input / output) in S/4 HANA.

Scope of the migration is based on deferred tax linked to migrated AP OPEN ITEMS (9006), AP SPECIAL GL OPEN ITEMS (9007), AR OPEN ITEMS (9008), AR SPECIAL GL OPEN ITEMS (9009) and GL OPEN ITEMS (9010). The deferred tax codes will be mapped in a DCT/table by country / company. If such tax codes are part of the 5 objects (GL/AP/AR) scope ie same document number/year/company code combination, the respective BSET data will be extracted for migration together with each object.

Line items will contribute to the current year to-date balance of the respective tax gl accounts. For reconciliation, the line item totals will be excluded from trial balance migration totals (object # 9013 / 9014).

Amounts in legacy involve local currency, local currency2 and local currency3 eg. hard currency and group currency. All currencies will be loaded accordingly unless there is a change in company design where local / group currency changes. Rates are as per the historical postings unless specific requirement calls for a fixed rate eg. group currency rate for consolidation purposes. Offsetting gl account is migration account for AP, AR, GL. Legacy offsetting GL accounts in legacy documents will not be considered in this migration scope, they will be migrated in other objects scope eg. GL open item or GL balances.

There will be no migration of non-deferred tax items ie. history of input / output tax will remain in legacy system. Current year tax reports will be a combination of legacy system data and S4 system data after go-live.

Conversion Scope

The scope of this document covers the approach for converting tax items with AP/AR open items from Legacy Source Systems into S/4HANA. 

The data from legacy system includes:

1. deferred tax items related to AP/AR open items

The data from legacy system excludes:

1. non deferred tax items

List of source systems and approximate number of records 

Source	Scope	Source Approx No. of Records	Target System	Target Approx No. of Records
PF2	Deferred tax items of AP/AR open items	1000	S4	1000
WP2	Deferred tax items of AP/AR open items	5000	S4	1000
PI2	Deferred tax items of AP/AR open items	1000	S4	1000

Additional Information

Multi-language Requirement

Summarize Multi-language Requirement/s, if any

Document Management

Summarize Document Management requirement, if any

Legal Requirement

Summarize Legal Requirement/s, if any

Special Requirements

Specify any special requirements or considerations that may impact the data conversion process based on specific locations, regulatory compliance or system limitations. Clearly outline any regional or localization requirements such as country-specific data formats, legal reporting obligations or industry standards that must be adhered to (e.g., localization rules for countries like China).

If the data conversion involves third-party systems or external data sources, such as Icertis, describe any additional requirements related to data mapping, transformation logic, validation rules or security measures that must be followed.

Target Design

With Functional input, document the technical design of the target fields that are in the scope of this document.

The technical design of the target for this conversion approach. 

Table	Field	Field Description	Data type	Length (Decimals)	Requirement
BSET	BUKRS	Company Code	CHAR	4	Mandatory based on mapping
BSET	MWSKZ	Tax on Sales/Purchases Code	CHAR	2	Mandatory based on mapping
BSET	SHKZG	Debit/Credit Indicator	CHAR	1	Mandatory
BSET	HWBAS	Tax Base Amount in Local Currency	CURR	15 (2)	Mandatory
BSET	FWBAS	Tax base amount in document currency	CURR	15 (2)	Mandatory
BSET	HWSTE	Tax Amount in Local Currency	CURR	13 (2)	Mandatory
BSET	FWSTE	Tax Amount in Document Currency	CURR	13 (2)	Mandatory
BSET	H2STE	Tax Amount in Local Currency 2	CURR	13 (2)	Conditional based on source data
BSET	H3STE	Tax Amount in Local Currency 3	CURR	13 (2)	Conditional based on source data
BSET	H2BAS	Tax Base Amount in Local Currency 2	CURR	15 (2)	Conditional based on source data
BSET	H3BAS	Tax Base Amount in Local Currency 3	CURR	15 (2)	Conditional based on source data
BSET	LWSTE	Tax Amount in Country Currency	CURR	13 (2)	Conditional based on source data
BSET	LWBAS	Tax Base in Country Currency	CURR	15 (2)	Conditional based on source data
BSET	BUPLA	Business Place	CHAR	4	Conditional based on mapping of company code to business place

Data Cleansing

All data cleansing should take place in the data source system as defined in this document, unless system limitations prevent it.

If data cleansing is managed outside of the source system (e.g. Syniti Migrate, 3rd Party Vendor, DCT), the necessary documentation must be produced and appended to this deliverable for sign-off.

ID	Criticality	Error Message/Report Description	Rule	Output	Source System

Conversion Process 

The high-level process is represented by the diagram below:

Summarize High-Level Process. Include diagrams, where applicable. Include information supporting details of Extract, Transform and Load specific to the Data Object

Data Privacy and Sensitivity

Summarize Data Privacy and Sensitivity Requirements, if any

Extraction

Extract data from a source into Syniti Migrate. There are 2 possibilities:

1. The data exists. Syniti Migrate connects to the source and loads the data into Syniti Migrate. There are 3 methods:
   1. Perform full data extraction from relevant tables in the source system(s).
   2. Perform extraction through the application layer.
   3. Only if Syniti Migrate; cannot connect to the source, data is loaded to the repository from the provided source system extract/report.
2. The data does not exist (or cannot be converted from its current state). The data is manually collected by the business directly in Syniti Migrate. This is to be conducted using DCT (Data Collection Template) in Syniti Migrate

The agreed Relevancy criteria is applied to the extracted records to identify the records that are applicable for the Target loads

Extraction Run Sheet

Req #	Requirement description	Team responsible
1.	Ensure source table BSET is extracted in DSP according to the agreed cut-off date in the project plan	Data team
2.	For entities with tax items maintained in DCT, ensure the DCTs are error free and endorsed for conversion	Data team
3.	Perform preliminary completeness check	Data team
4.	Raise issues as defects if Req # 1 to 3 are not met	Data team
5.	Repeat Req # 1 to 4 if required	Data team
6.	Report extraction result to person in charge of conversion	Data team

Selection Screen

If applicable, this section will give the details on any selection screen parameters, including the parameter type, that are required to be entered to ensure consistent data extracts.

Selection Ref Screen	Parameter Name	Selection Type	Requirement	Value to be entered/set

Data Collection Template (DCT)

Target Ready Data Collection Template will be created for Data Object data with exception of some fields which require transformation as mentioned in the transformation rule.

<Object> DCT Rules

Field name	Field Description	Rule
BSET-BUKRS	Company Code	Drop down value from T001-BUKRS company code DCT (only with active for finance indicator)
BSIK-LIFNR	Vendor Account	Drop down value from LFB1-LIFBR Business Partner DCT as FI Vendor on required company code level
BSIK-BELNR	Document Number	This is the reference to AP Open item document number for link / posting together
BSET-MWSKZ	Tax on Sales/Purchases Code	Drop down value from T030K-MWSKZ
BSET-SHKZG	Debit/Credit Indicator	Drop down value from BSET-SHKZG
BSET-HWBAS	Tax Base Amount in Local Currency	Business to enter content as per data type and length permitted
BSET-FWBAS	Tax base amount in document currency	Business to enter content as per data type and length permitted
BSET-HWSTE	Tax Amount in Local Currency	Business to enter content as per data type and length permitted
BSET-FWSTE	Tax Amount in Document Currency	Business to enter content as per data type and length permitted
BSET-H2STE	Tax Amount in Local Currency 2	Business to enter content as per data type and length permitted
BSET-H3STE	Tax Amount in Local Currency 3	Business to enter content as per data type and length permitted
BSET-H2BAS	Tax Base Amount in Local Currency 2	Business to enter content as per data type and length permitted
BSET-H3BAS	Tax Base Amount in Local Currency 3	Business to enter content as per data type and length permitted
BSET-LWSTE	Tax Amount in Country Currency	Business to enter content as per data type and length permitted
BSET-LWBAS	Tax Base in Country Currency	Business to enter content as per data type and length permitted
BSET-BUPLA	Business Place	Drop down value. (J_1BBRANCV-BRANCH based on BSIK-BUKRS)

Extraction Dependencies

List the steps that need to occur before extraction can commence

Item #	Step description	Team responsible
1.	Any period / year end close activities have been fully completed	Business
2.	Finance closing is completed and reconciled	Business

Transformation

The Target fields are mapped to the applicable Legacy field that will be its source, this is a 3-way activity involving the Business, Functional team and Data team.  This identifies the transformation activity required to allow Syniti Migrate to make the data Target ready:

1. Perform value mapping and data transformation rules.
   1. Legacy values are mapped to the to-be values (this could include a default value)
   2. Values are transformed according to the rules defined in Syniti Migrate
2. Prepare target-ready data in the structure and format that is required for loading via prescribed Load Tool.  This step also produces the load data ready for business to perform Pre-load Data Validation

Transformation Run Sheet

Item #	Step description	Team responsible
1.	Ensure all the fields that require value mapping, as stipulated  Mapping tables, have the latest signed-off mapping files imported into toolMigrate.	Data team
2.	In tool, select the AP/AR Open Items object.	Data team
3.	Go to Process Area Launch and Process the Object - AP/AR Open Items - R3 AP/AR Open Items.	Data team
4.	Launch the Objects to execute transformation.	Data team
5.	Monitor the transformation progress and ensure performance and completion is within allowed timeframe	Data team
6.	Generate Pre-Load reports .	Data team
7.	Generate data load count.	Data team
8.	Log errors as defects, if any and address resolutions. Close defects.	Data team
9.	Re-transform and re-validate the Pre-load reports if necessary.	Data team
10.	Validate the transformed file as part of pre-load validation, raise data defects or provide the pre-load sign-off.	Business
11.	Analyse and resolve any pre-load defects logged by business.	Data team
12.	Repeat steps 6 to 11 if necessary	Data team
13.	Proceed to pre-load validations	Data team

Transformation Rules

Rule #	Source system	Source Table	Source Field	Source Description	Target system	Target Table	Target Field	Target Description	Transformation logic
1	Legacy	BSET	BUKRS	Company Code	S/4HANA	BSET	BUKRS	Company Code	If match with AP / AR extraction according to Doc + Year + company code, this record will be combined with AP / AR record
2	Legacy	BSET	BELNR	Accounting Document Number	S/4HANA	BSET	BELNR	Accounting Document Number
3	Legacy	BSET	GJAHR	Fiscal Year	S/4HANA	BSET	GJAHR	Fiscal Year
4	Legacy	BSET	MWSKZ	Tax on Sales/Purchases Code	S/4HANA	BSET	MWSKZ	Tax on Sales/Purchases Code	Map from source to target using Tax code mapping table.
5	Legacy	BSET	SHKZG	Debit/Credit Indicator	S/4HANA	BSET	SHKZG	Debit/Credit Indicator	Copy source value
6	Legacy	BSET	HWBAS	Tax Base Amount in Local Currency	S/4HANA	BSET	HWBAS	Tax Base Amount in Local Currency	Copy source value
7	Legacy	BSET	FWBAS	Tax base amount in document currency	S/4HANA	BSET	FWBAS	Tax base amount in document currency	Copy source value
8	Legacy	BSET	HWSTE	Tax Amount in Local Currency	S/4HANA	BSET	HWSTE	Tax Amount in Local Currency	Copy source value
9	Legacy	BSET	FWSTE	Tax Amount in Document Currency	S/4HANA	BSET	FWSTE	Tax Amount in Document Currency	Copy source value
10	Legacy	BSET	H2STE	Tax Amount in Local Currency 2	S/4HANA	BSET	H2STE	Tax Amount in Local Currency 2	Copy source value
11	Legacy	BSET	H3STE	Tax Amount in Local Currency 3	S/4HANA	BSET	H3STE	Tax Amount in Local Currency 3	Copy source value
12	Legacy	BSET	H2BAS	Tax Base Amount in Local Currency 2	S/4HANA	BSET	H2BAS	Tax Base Amount in Local Currency 2	Copy source value
13	Legacy	BSET	H3BAS	Tax Base Amount in Local Currency 3	S/4HANA	BSET	H3BAS	Tax Base Amount in Local Currency 3	Copy source value
14	Legacy	BSET	LWSTE	Tax Amount in Country Currency	S/4HANA	BSET	LWSTE	Tax Amount in Country Currency	Copy source value
15	Legacy	BSET	LWBAS	Tax Base in Country Currency	S/4HANA	BSET	LWBAS	Tax Base in Country Currency	Copy source value
16	Legacy	BSET	BUPLA	Business Place	S/4HANA	BSET	BUPLA	Business Place	Map from source to target using business place mapping table.

Transformation Mapping

Use the exact name and reference this section in the “Transformation rules” above

Mapping Table Name	Mapping Table Description
Company Code	Mapping of legacy company codes to target system value
Tax code	Mapping of legacy tax codes to target system value by country
Business place	Mapping of legacy to target system value according to company code. There is mapping of blanks to values in each company code

Transformation Dependencies

List the steps that need to occur before transformation can commence

Item #	Step Description	Team Responsible
1	Ensure all the fields that require value mapping, as stipulated. Mapping tables, have the correct values mapped and imported into tool.	Data team

Pre-Load Validation

Project Team

The following pre-load validations will be performed by the Project Team.

Completeness

Task	Action
Generation of Pre-load reports	Mandatory field check. Based on S/4HANA target design fields, account field status groups and tax settings Check if records have all mandatory fields filled and mapped, otherwise they should be flagged as error. Check signage of amount. Check whether source data (including DCT) has debit and credit entries in the same line. If sign is the same in all the three currency fields, then no action needed. If the sign in the document currency and company code currency field are different, then the document needs to be corrected in the source system or DCT. Ensure all transactions have values in Document Currency and Local Currency (i.e. no 0.00 allowed)
Reconciliation of total	Record Count Check the sum of record count of the AP/AR tax items in the load file is the same as source. The record count for AP/AR tax items will be done on the group basis. The fields in the group are consist of: Company Code, tax code Check Amount in Document Currency and Local Currency Check the sum of the amount in Document Currency and Local Currency in load file is the same as source. If any of the sum is different, flag the record as error.

Accuracy

Task	Action
Mandatory field mapping and transformation	Obtain a list of the fields to be populated with values from mapping files and ensure all these fields contain S/4HANA values.  Review the data report to ensure mapping value is not missing in tool. Capture errors in the Data Error report.

Business

The following pre-load validations will be performed by the business.

Completeness

Task

Action

Verify record count in Pre-load reports by region

In legacy system, execute report AP/AR Line Item Display (t/code: FBL1N and FBL5N) with selection parameters. Execute VAT reports for deferred tax codes and AP/AR document numbers by company. Group the output of the report by Company Code and compare the count in this VAT report against the AP/AR deferred tax items count in the pre-load file. If any of the count is different, raise defect and flag the relevant record as error.

Accuracy

Task	Action
Conversion accuracy	Verify AP/AR tax items are transformed accurately as per endorsed transformation/mapping rules. Review error reports in tool for any mismatch or missing transformed values. In legacy system, execute report AP/AR Line Item Display (t/code: FBL1N and FBL5N) with selection parameters. If any of the sum is different, raise defect and flag the relevant record as error.
Business partner balance on Company code and profit center level	Check the total tax amount on at Company Code level, against the total in legacy by Document, Local and Group currency. Apply currency rules where applicable

Load

The load process includes:

1. Execute the automated data load into target system using load tool or product the load file if the load must be done manually
2. Once the data is loaded to the target system, it will be extracted and prepared for Post Load Data Validation

Load Run Sheet

Item	Step description	Team responsible
1	Ensure the load tools are transported into the correct tool instance.	Data team
2	Ensure DCTs and all required mappings are submitted and complete	Data team
3	Ensure Pre-load sign-offs are obtained.	Data team
4	Execute tool AP/AR tax items	Data team
5	Generate the post load reports in tool.	Data team
6	Log errors as defects, if any and address resolutions. Close defects.	Data team
7	Resolve defects by reupload and re-generate post load reports if necessary.	Data team
8	Business to validate the post load files as part of post-load validation, raise data defects or provide the post-load sign-off.	Business
9	Repeat steps 5 to 7 if necessary.	Data team

Load Phase and Dependencies

Identify the phase as to “when” the load for this object will occur. <Pre-Cutover, Cutover, Post Cutover> and list the steps that need to occur before the load can commence

Configuration

List the Configurations required before loading can commence 

Item #	Configuration item
1.	Company code-related configuration (posting period variant).
2.	Finance posting (document types, document number ranges, special gl indicator)
3.	Currencies (currency keys, decimal places in currencies)
4.	Tax (tax codes, business place)

 Conversion Objects

Object #	Preceding Object Conversion Approach
1067	GL Account Operational CoA (incl. secondary CE)
3018	Business Partners - FI Vendor (FLVN00)

Error Handling

The table below depicts some possible system errors for this data object during data load.  All data load error is to be logged as defect and managed within the Defect Management

Error type	Error description	Action taken
Tax code does not exist	Tax code does not exist in country	Ensure the tax code mapping is correct

Post-Load Validation

Project Team

The following post-load validations will be performed by the Project Team.

Completeness

Task

Action

Reconciliation of Record Count

Total number of records loaded for AP/AR tax items will be generated in the Post-load reports in tool based on the target table and fields mentioned The reconciliation needs to be executed on the total number of ‘valid’ records and currency amount per company code in the source compared to total number of records and currency amount in S/4HANA Record Count Check the sum of record count of the tax items in the load file is the same as S/4HANA. The record count for AP/AR tax items will be done on the group basis. The fields in the group are consist of: Company Code, deferred tax code Check Amount in Document Currency and Local Currency Check on line item level that the sum of the amount in Document Currency and Local Currency in the load file is the same as posted in S/4HANA. If any of the sum is different, flag the record as error.

Accuracy

Task

Action

Check values in key fields for accuracy

Post-load reports will have the same structure as the load file and some additional columns as required to facilitate the post load validation. Leverage on tool to create a Post Load report that reports S/4HANA loaded records along with the legacy values side-by-side to allow for 100% check of all these fields in the shortest possible time. Any mismatch will be reported under the Post Load - Error report.

Business

The following post-load validations will be performed by the business.

Completeness

Task	Action
Record Count Check	Review the record count report from the Data Team and ensure it is correct by cross-checking with the record count confirmed during Pre-load Business Validations Business may also run VAT reports or equivalent report in Fiori App to display loaded AP/AR tax items in S/4HANA and compare results against the pre-load reports generated from tool.

Accuracy

Task	Action
tax items totals	Check deferred VAT totals by Company code. Totals should be checked in Document, Local and Group currency.
Spot check	Business should choose some tax codes and perform comprehensive check of tax items etc. Such companies should have huge number of tax items or have certain complexity in conversion.

Key Assumptions

• Master Data Standard is up to date as on the date of documenting this conversion approach and data load. 
• Data Object is in scope based on data design and any exception requested by business.

Any additional key assumptions.

Change log

Workflow history