Enabling a Smooth Company Code Merge with SAP Landscape Transformation Software
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1 SAP Brief SAP Services System Landscape Optimization Objectives Enabling a Smooth Company Code Merge with SAP Landscape Transformation Software
2 Merge company codes with reduced effort Merge company codes with reduced effort Constantly changing global markets demand that international companies identify and integrate business requirements into their daily business practices. Successfully operating your business in these conditions may call for transformation requirements that could impact your system landscape. SAP Landscape Transformation software helps reduce the effort to merge company codes. When facing mergers, acquisitions, divestitures, or internal reorganizations, companies need innovative business solutions to help align organizational structures and processes within their system landscapes. During a corporate restructuring, SAP Landscape Transformation software can help you: Realize and support integration of newly acquired legal entities into existing organizational structures and system landscapes Merge several subdivisions within formerly disparate companies or organizational structures Cut administrative costs and tap the competitive synergies generated through mergers and acquisitions The merger of legal entities can result in the need to merge company codes on your system landscape, for example, to meet financial accounting, tax, or trade law requirements, and facilitate the management of legally independent business units. Changes must be applied consistently and with as little manual work as possible in all affected SAP components that are in use in your company. 2 / 11
3 Deep dive into the company code merge solution Deep dive into the company code merge solution Results of SAP Landscape Transformation software Smooth data transformation with a project road map The company code merge solution is part of SAP Landscape Transformation software and is designed to merge company codes that belong to the same system and the same client. The transformation approach has the following prerequisites: The company codes that you want to merge must be assigned to the same controlling area; if they aren t, the software includes a controlling area merge solution The company codes that you want to merge must use the same chart of accounts and the same fiscal year variant; if this is not yet the case, SAP Landscape Transformation offers a chart of accounts and fiscal year conversion The company code currency and the other local currencies must be identical for all participating company codes; if this is not yet the case, the System Landscape Optimization group from SAP offers a comprehensive set of services using SAP Landscape Transformation software Valuation must be done at the plant level for all participating company codes In case you need to move and merge your existing company codes to another system, we offer the company code transfer scenario to complement the company code merge solution. 3 / 11
4 Results of SAP Landscape Transformation software Deep dive into the company code merge solution Results of SAP Landscape Transformation software Smooth data transformation with a project road map Deploying SAP Landscape Transformation software affects the following: All master data, transaction data, and customizing is automatically changed including all the historical data; after the successful company code merge, the entire system looks as if it has never been transformed Substructures, such as plants, sales organizations, and so on, are automatically linked to the new company code All processes are still available and can be continued after the transformation Document flow is still accessible and fully continued When initiating your transformation project, make sure that you discuss the plans of your company code merge project with your auditor beforehand. If you want to merge multiple company codes within one client, it is possible to combine this in one single project. Antonio Carlos Cesco, planning and IT project manager at Brasil Foods S.A., says, Through the group of SAP experts, we managed to guarantee a reduction of the effort related to the conversion of master and transactional data, thus allowing us to meet the required deadline. See the figure on the next page for sample results of a company code merge. 4 / 11
5 Deep dive into the company code merge solution Results of SAP Landscape Transformation software Smooth data transformation with a project road map Client 030 Controlling area K001 Client 030 Controlling area K001 B001 B00n B002 B00m B001 + B00n B002 B00m Plant W001 Plant W002 Plant W003 Plant W001 Plant W002 Plant W003 Figure: Results of a company code merge using SAP Landscape Transformation software 5 / 11
6 Smooth data transformation with a project road map Deep dive into the company code merge solution Results of SAP Landscape Transformation software Smooth data transformation with a project road map Combining step-by-step technical guidance with best practices, SAP Landscape Transformation software is designed to provide everything you need for a smooth data transformation. When integrated with SAP Manager, the software provides a dedicated company code merge transformation road map that guides you throughout the entire project. It also contains in-depth background information to help you accelerate and streamline your project. SAP Landscape Transformation includes a range of important analysis functions. The company code merge analysis examines whether the prerequisites for a company code merge apply in your project, and it recommends the most suitable approach based on the analysis results. Additionally, you get a list of objects that need to be harmonized before the company code merge. Continued on next page 6 / 11
7 Deep dive into the company code merge solution Results of SAP Landscape Transformation software Smooth data transformation with a project road map For example, the same general ledger accounts in different company codes can only be merged if they are identical with regard to their most important characteristics. The company code merge analysis checks the required setup and provides the information with which G/L accounts need to be harmonized beforehand. In addition, you can benefit from employing other standard analyses such as analyzing number range objects, archive information, and technical system details. Vaclav Svub, head of the ERP Center at ABB, says that with SAP Landscape Transformation, We were able to fulfill business requirements very quickly and execute our project smoothly. With coaching from SAP experts, we were able to run the project using only internal resources. 7 / 11
8 Tap into the synergies of mergers and acquisitions Tap into the synergies of mergers and acquisitions Partner with the System Landscape Optimization group Companies facing merger and acquisition scenarios strive to make the most of acquisitionrelated synergies. For example, you may plan to merge several subdivisions from formerly separate companies to cut administrative costs and enhance competitiveness. SAP Landscape Transformation lets you better plan, analyze, sequence, and realize your transformation project with standardized solutions that address mergers and acquisitions, divestitures, internal reorganizations, and other projects that require you to harmonize existing business processes. To streamline your company s business processes, you may need to combine several transformation scenarios such as controlling area merge, including cost center and profit center merge and company code merge. Using SAP Landscape Transformation, you can accomplish all this with only one system downtime and without interrupting your day-to-day business. Thanks to its use of proven, standardized technologies and methodologies, the software enables you to not only safeguard all historical data but also maintain the document flows. Whether you are selling, buying, or restructuring a business, SAP Landscape Transformation can help you merge your company codes. 8 / 11
9 Partner with the System Landscape Optimization group Tap into the synergies of mergers and acquisitions Partner with the System Landscape Optimization group Over the last 20 years, the System Landscape Optimization group has engaged in thousands of migration, harmonization, and consolidation projects worldwide. This group of experts provides both a high degree of standardization and the flexibility to fulfill each customer s special requirements. The System Landscape Optimization group uses SAP Landscape Transformation software with proven and standardized methodologies. Prior to the transformation of the productive system, each project includes multiple test cycles that are carried out in a copy of the production system helping to ensure data security, consistency, and integrity. By engaging the System Landscape Optimization group to transform your SAP landscape, you are selecting a partner who is reliable, efficient, and experienced in all aspects of system transformation. Continued on next page 9 / 11
10 Tap into the synergies of mergers and acquisitions Partner with the System Landscape Optimization group Moreover, the group s services can be tailored specifically to meet your individual requirements, no matter how complex the transformation needs are. To help successfully realize your transformation scenario, our experts guide you through every phase of the transformation project from selecting the best approach, setting up a project plan, and implementing a blueprint to helping you design your system landscape in a structured way. Prof. Dr. Matthias Mehrtens, vice president at Alfred Kärcher GmbH & Co. KG, says, The U.S. company s merger was implemented very successfully in terms of budget and time.... Everything went smoothly and stayed under control thanks to the SAP team from the System Landscape Optimization group. 10 / 11
11 Objectives Summary Business-driven changes to corporate structures such as mergers, acquisitions, and reorganizations require adaptation of your existing SAP system landscapes. Your company must harmonize its data and optimize processes for accurate, reliable data, and consolidate disparate IT solutions and centralize system landscapes to cut costs. SAP Landscape Transformation software helps you reach these objectives without disrupting business. Objectives Integrate and tap synergies of acquired companies Adapt system landscape to meet changing business and legal requirements Transform data in affected SAP components quickly and consistently Realize complex reorganization scenarios without impacting business operations Merge company codes to align organizational structures and processes at system level Combine transformation scenarios, such as controlling area merge and company code merge, with one system downtime Use predefined analyses to enable technical feasibility for transformation projects Apply the project road map to help ensure guided execution Undisrupted business operations due to standardized methodologies Greater ability to meet legal and business-driven requirements Fast, flexible solutions using proven technologies to accelerate transformation and reduce costs Learn more To find out more, call your SAP representative today or visit us online at 11 / 11 Studio SAP 42314enUS (16/02)
12 No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see en/legal/copyright/index.epx#trademark for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
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