| Status | Approved |
| Owner | Bernard Ng |
| Stakeholders |
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.
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:
- deferred tax items related to AP/AR open items
The data from legacy system excludes:
- non deferred tax items
| 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
Document Management
Legal Requirement
Special Requirements
Target Design
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
ID | Criticality | Error Message/Report Description | Rule | Output | Source System |
Conversion Process
The high-level process is represented by the diagram below:
Data Privacy and Sensitivity
Extraction
Extract data from a source into . There are 2 possibilities:
- The data exists. connects to the source and loads the data into . There are 3 methods:
- Perform full data extraction from relevant tables in the source system(s).
- Perform extraction through the application layer.
- Only if ; cannot connect to the source, data is loaded to the repository from the provided source system extract/report.
- The data does not exist (or cannot be converted from its current state). The data is manually collected by the business directly in . This is to be conducted using DCT (Data Collection Template) in
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
| 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 with exception of some fields which require transformation as mentioned in the transformation rule.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
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 to make the data Target ready:
- Perform value mapping and data transformation rules.
- Legacy values are mapped to the to-be values (this could include a default value)
- Values are transformed according to the rules defined in
- 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
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
Completeness
Task | Action |
Generation of | Mandatory field check. 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 |
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. |
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:
- Execute the automated data load into target system using load tool or product the load file if the load must be done manually
- 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
Configuration
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
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
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
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 |
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.
- is in scope based on data design and any exception requested by business.
Change log
Workflow history
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