Issue

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Recommendation

Summarise the recommendation being made for the reader, leaving the pro/con evaluation and exact decision-making process to the subsequent sections.

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).

Go-Live Timing

Entity 2002 Syensqo SA resides in PF2 and hence in schedule to go-live with Group 1.

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.

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.  The only difference between Option E & F, is when the sysensqo entity goes live.

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

Option A: Deploy Treasury (TRM & CM) with Group 1.   

                Deploy Syensqo SA in Group 2

                Deploy IHB in Group 3

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

Option B: Deploy Treasury with Group 1           

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

Option C: Deploy with IHB after Group 2

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

Option D: Deploy after Group 2 along with IHB.

Describe 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.

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
	Syensqo SA:  Group 2	Syensqo SA: Group 1	Syensqo SA: Group 2	Syensqo SA:  Group 1	Syenso SA: Group 2	Syensqo SA:Group 1	Syensqo SA:  Group 1
	IHB:               Group 3	IHB:              Group 3	IHB:              Group 3	IHB:               Group 3	IHB:            Group 2	IHB:             Group 2	IHB:               Group 3
Ease of integration of Cash Management (CM)	IHB, where majority of cash resides, still in PI2, interim interface req'd, with large amount of data Group 1 entities in S4 and visible in CM Group 2 entities not in S4, interim interfaced req'd from WP2 to S4 with large amount of data.	As Option A As Option A	IHB, where majority of cash resides, still in PI2, interim interface req'd, with large amount of data Group 1 entities in S4 and visible in CM Group 2 entities in S4 and visible in CM	As Option C As Option C	IHB where majority of cash resides, will be in S4 and visible in CM Group 1 entities in S4 and visible in CM Group 2 entities in S4 and visible in CM	As Option E	As Option E
Rating	Low	Low	Medium	Medium	High	High	High
Efficient Management of IHB Exposures	IHB/PI2 to send exposure details to S4. Interim interface req'd.	As  Option A	As  Option A	As  Option A	IHB and TRM go-live in S4 together. Interim: PI2 data would continue to go to Quantum. As-is to continue.	As Option E	As Option E
Rating	Low	Low	Low	Low	High	High	High
Efficient Management non-IHB Exposures	S4 TRM will replace Quantum in Group 1. New "interim" interface req'd to bring Group 2 entity exposure to S4	As  Option A	S4 TRM will replace Quantum in Group 2. All entities and exposures are is S4 in Group 2  New "interim" interface will be needed to send Group1 entity exposures from S4 to Quantum.	As  Option C	As  Option C	As  Option C	S4 TRM will replace Quantum in Group 3.  New "interim" interface will be needed to send Group1 & 2 entity exposures from S4 to Quantum.
Rating	Medium	Medium	Medium	Medium	Medium	Medium	Low
Ease of Accounting for Treasury Deals (from Header Entity)	TRM is S4  TRM will automatically Post to "2002". TRM postings to go from S4 to PI2.   New interim interface needed to send postings from TRM\S4 to PI2.	TRM is S4.  TRM postings are within S4 (TRM to 2002). Std TRM will post automatically in S4.	TRM is S4.  Entity 2002 is in PF2. TRM posting to go from S4 to PI2.    New interim interface needed to send postings from S4 to PF2.	TRM is S4.  Entity 2002 is in S4. Std TRM will post automatically in S4.
Rating
Ease of Accounting for IHB entities (2232 & 4044).	IHB entity 2232 is in PI2. 2002 is in PF2 until Group 2 As-is current process posts PI2\2232 into PF2 2002. No new interim interface needed	IHB in 2232 in PI2.  2002 moved to S4 in Group 1 New interim interface required to post 2232\PI2 accounting into 2002\S4.	IHB entity 2232 is in PI2. 2002 is in PF2 until Group 2 As-is current process posts PI2\2232 into PF2 2002. No new interim interface needed	IHB in 2232 in PI2.  2002 moved to S4 in Group 1   New interim interface required to post 2232\PI2 accounting into 2002\S4.	IHB moves to S4 in Group 2 2002 moves to S4 in Group 2 As-is current process continues to send postings from PI2\2232 into PF2 2002 no new interface in the interim	IHB moves to S4 in Group 2 2002 moves to S4 in Group 1 As-is current process continues to send postings from PI2\2232 into PF2 2002 New interim interface req'd to send postings from PI2\2232 into 2002\S4	As Option E
Rating	High	Low	High	Low	High	Low	Low
Ability and ease to implement and manage Intercompany Loans	IC Loan config in TRM in S4 Group 1 entities can be part of IC loans   Interim: Group 2 entities are not in S4 to be part of the IC relationships. IC Settlement: payments to be sent from TRM\S4 to IHB\PI2 New interim interface will be needed for IC loan settlements	As Option A	IC Loan config in TRM in S4     IC Settlement:  payment to be sent from TRM\S4 to IHB\PI2 New interim interface will be needed for IC loan settlements	As Option C	IC Loan config in TRM in S4     IC Settlement:  payment to be sent from TRM\S4 to IHB\in S4 No new interim interface needed	As Option E	As Option E
Rating	Low	Low	Medium	Medium	High	High	High
Ability and ease to perform Treasury transactions outside of central Treasury Entity
Rating
Ease of Cut-over at implementation	No extra cut-over for TRM  Extra cut-over for IHB	As Option A  As Option A	As Option A  As Option A	As Option A  As Option A	No extra cut-over for TRM No extra  cut-over for IHB	No extra cut-over for TRM No extra  cut-over for IHB	Extra cut-over for TRM  Extra cut-over for IHB
Rating	Medium	Medium	Medium	Medium	High	High	Low
SUMMARY					High x ? Medium x ? Low x ?
OVERALL RATING					High

See also

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