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

New the Consolidation Tool to 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 fully integrated with the EPRs, rather data is loaded from the source EPRs.  Data loads are vis flat files that are produced with automation tools (RPA).

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

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 a 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.

• Group Reporting is the current\latest SAP Consolidation Tool, and is on the SAP Roadmap for the future.

• With the Syensqo consolidations tool implementation 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, and is not a key decision on this document.
• 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

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

Impacts

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 Conversion: 

• Timing and complexity of data conversion. 
• Aligned with the deployment decision historical data loads will occur in the later phase. Conversion will be a one of activity upon deployment. 

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

• Existing BFC Rules will continue.

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

Options considered

Option A: Deferred Deployment

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

Orange Box and Arrows are new \ added, the rest remains as is.

Key Points:

• • 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 output templates will remain the same, the data to fill the template will come from S4Hana.  Mapping of data will be required and tested. 

Option B: Upfront Deployment

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

Orange text Boxes show what will change with an upfron deployment.

Key Points:

• System: BFC will be replaced by the new consolidation tool in the initial Deployment 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. 

Evaluation

Preferred Option

Option A \ Deferred Deployment is the recommended approach. 

Option A is a lower risk option for reporting financial results for the organisation, along with an easier transitions. Although the benefits coming from the new Consolidation system are deferred, they will still be obtained at later date.

See also

Change log

Workflow history