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 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

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

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: 

• 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

• 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

Option A: Deploy Later

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

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

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 D: 

Evaluation

	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

Change log

Workflow history