Lessons from the Field forDeploying a SuccessfulGlobal SAP® ControllingRollout   Tanya Duncan, Deloitte Consulting LLC   J...
Introduction    •   This presentation discusses real-world examples and tips for        rolling out SAP Controlling (CO) f...
Topics    •   Tanya’s Background    •   Assumptions    •   SAP global methodology    •   Global and local templates    •  ...
Tanya’s Background    •   FICO Consultant with Deloitte since June 2011        • Tanya resides in San Diego        • CO le...
Topics    •   Tanya’s Background    •   Assumptions    •   SAP global methodology    •   Global and local templates    •  ...
Assumptions    •   Focus on global Controlling rollouts        • Global projects involve multiple countries        • Users...
Topics    •   Tanya’s Background    •   Assumptions    •   SAP global methodology    •   Global and local templates    •  ...
SAP Methodology    •   Accelerated SAP (ASAP)        • Standard implementation approach for SAP ERP    •   Consists of fiv...
SAP Global Methodology     •   Global ASAP     •   Supports multiple implementation strategies     •   Enables implementat...
Global ASAP Phases     Global Program     Global Business        Global         Set Up            Blueprint         Realiz...
Global Business Blueprint     •   Fit Gap Analysis         • Identify matches (fits) and mismatches (gaps) in local       ...
Solution Manager- Roadmap     •   Centralizes the management of multiple SAP systems     •   Many features including Roadm...
Solution Manager- Project Administration     •   In Project Administration you define templates containing         scenari...
Activate Global Rollout in Solution Manager     •   Create template project in Project Administration         • Select Glo...
Assign Global Attributes in Solution Manager     •   Assign Global Attributes in Structure tab in Business Blueprint      ...
Topics     •   Tanya’s Background     •   Assumptions     •   SAP global methodology     •   Global and local templates   ...
Global Template – Initial Preparation     •   Are multiple controlling areas needed?         • One CO area simplifies repo...
Local Template- Requirements     •   How do local processes & regulations vary from global template         • What should ...
Local Template- Statutory Requirements     •   Determine local statutory reporting requirements, for example:         • In...
Local Template- FI Currencies     •   Determine local and group currencies         • It is mandatory to define at least on...
Local Template- FI Currencies (cont.)     •   Additional local currencies require configuration         • Every FI documen...
Local Template- CO Currencies     •   Controlling area currency example options (Transaction 8KEM):         • Adopt the co...
Local Template- Roles     •   Who will perform which process roles at each site after go live?         • Separation of dut...
Local Template- Training     •   Pre go-live         • Who will lead the training initiatives?             •   Personnel f...
Local Template- Training (cont.)     •   Post go-live and ongoing         • Training and support are required following im...
Local Template- Languages     •   Determine what language(s) will be used in SAP         • You can login to SAP with diffe...
Topics     •   Tanya’s Background     •   Assumptions     •   SAP global methodology     •   Global and local templates   ...
Training Tips for Global CO Rollouts     •   Gauge the SAP experience of users         • Are users seeing SAP for the firs...
Training Tips for Global CO Rollouts     •   Demonstrate changes in CO business processes visually         • CO processes ...
Global Structure     •Help users understand how their company fits into overall global structure         Controlling Area ...
CO Master Data     •   Cost Center Hierarchy         • Explain structure/purpose of cost center hierarchy: KSH3     •   Pr...
CO Material Master Fields     •   Price control         • Explain local rules for standard or moving average price        ...
Annual Costing Process     •   Cost Center Planning         • Train on cost center planning and entering activity rates   ...
Month End & Year End Close     •   Closing process overview         • Provide a Plant Controller closing checklist        ...
Topics     •   Tanya’s Background     •   Assumptions     •   SAP global methodology     •   Global and local templates   ...
High and Low Context Countries     •   High-context countries (e.g. China, Japan, and Spain)         • Highly focused on m...
Communication Tips- Remote     •   Be explicit in communication         • Review action items at the end of calls and foll...
Communication Tips- Onsite     •   Appreciate and accept cultural differences         • Understand typical work hours and ...
Summary     •   Global CO implementations can be complex, expensive & risky     •   Understanding potential local requirem...
Resources     •   Ciber; Whitepaper: Conquering the Challenge of Global SAP         Implementations: SAP Rollout Strategie...
Five Key Ideas     •   Establishing a global blueprint serves as a strong foundation         for local rollouts     •   Id...
Questions     •   Now:         • Ask questions now for immediate answers     •   Later:         • TanyaDuncan@Deloitte.com...
DisclaimerSAP®, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP® products andservice...
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  • If the company or user is new to SAP entirely, it’s important to start with the foundation by explaining the corporate hierarchy in SAP. Global projects are frequently the result of an acquisition and SAP is used to reflect the new restructuring in legal entities.
  • Controlling 2012 Global Rollouts.pptx

    1. 1. Lessons from the Field forDeploying a SuccessfulGlobal SAP® ControllingRollout Tanya Duncan, Deloitte Consulting LLC John Jordan, ERP Corp © 2012 ERP Corp. All rights reserved.
    2. 2. Introduction • This presentation discusses real-world examples and tips for rolling out SAP Controlling (CO) functionality across multiple companies and countries • Key points covered in this session: • Local and country-specific requirements and configuration • SAP features that streamline a global CO rollout • Key training areas and tips • Global communication best practices • Youll leave this session with tools and techniques to streamline and simplify your global rollout of CO functionality3
    3. 3. Topics • Tanya’s Background • Assumptions • SAP global methodology • Global and local templates • Key training areas • Global communication best practices4
    4. 4. Tanya’s Background • FICO Consultant with Deloitte since June 2011 • Tanya resides in San Diego • CO lead for a global consumer and industrial products rollout • Mexico, Argentina, Brazil, US, Canada, Australia, UK • Global rollout product costing lead at Owens Corning • CO team member of European rollout across three countries: • France, Italy, Spain • Subsequently supported global month and year end closing • Led US product costing upgrade5
    5. 5. Topics • Tanya’s Background • Assumptions • SAP global methodology • Global and local templates • Key training areas • Global communication best practices6
    6. 6. Assumptions • Focus on global Controlling rollouts • Global projects involve multiple countries • Users and local team members are not located in the US • There are language as well as cultural barriers • There are multiple company codes • Rollout may be either an initial implementation or an upgrade7
    7. 7. Topics • Tanya’s Background • Assumptions • SAP global methodology • Global and local templates • Key training areas • Global communication best practices8
    8. 8. SAP Methodology • Accelerated SAP (ASAP) • Standard implementation approach for SAP ERP • Consists of five major phases: • Project Preparation Define goals and objectives • Project Blueprint Includes Fit Gap Analysis (FGA) • Realization Configure blueprint requirements • Final Preparation Testing, training and cutover • Go Live & Support Move environment to live system • Supports local implementation strategies • Global rollouts require co-ordination across countries • Co-ordination should occur before local ASAP activities9
    9. 9. SAP Global Methodology • Global ASAP • Supports multiple implementation strategies • Enables implementations according to global template • Global template contains rules defined centrally • Provides solutions and input for regional and local projects • Methodology is supported by SAP Solution Manager • We’ll discuss in detail later in this presentation10
    10. 10. Global ASAP Phases Global Program Global Business Global Set Up Blueprint Realization Global Business Configure Initial Define Global Process Settings and Org Strategy Definition Structure Develop Analyze Establish Organizational Business Organizational Structure Entities Structure11
    11. 11. Global Business Blueprint • Fit Gap Analysis • Identify matches (fits) and mismatches (gaps) in local processes and functions during blueprinting • Adapt local processes to industry best practices • Assess legal requirements • Identify localizations not covered in global template • Use simulations, questionnaires, and/or brainstorming • Understand reasons for gaps in local processes • Determine if local process gaps should change to global standards12
    12. 12. Solution Manager- Roadmap • Centralizes the management of multiple SAP systems • Many features including Roadmap and Project Administration • Contain standard SAP implementation methodology & provide links to accelerators & tools which perform project tasks13
    13. 13. Solution Manager- Project Administration • In Project Administration you define templates containing scenarios, blueprint documents, & configuration at head office • Decide which parts of template are relevant to subsidiaries • Can subsidiaries change the template in their rollout projects? • You transport the centrally-defined template to the subsidiaries • They use the template in an implementation project to implement solutions in accordance with your guidelines14
    14. 14. Activate Global Rollout in Solution Manager • Create template project in Project Administration • Select Global Rollout Functionality is Active indicator • Select Templates in Scope tab15
    15. 15. Assign Global Attributes in Solution Manager • Assign Global Attributes in Structure tab in Business Blueprint • Select Pass On Global Attribute in Structure tab • Choose empty row to prevent inheritance of global attribute • Perform blueprint and configuration phase activities • Send objects in headquarters to component systems and import template16
    16. 16. Topics • Tanya’s Background • Assumptions • SAP global methodology • Global and local templates • Key training areas • Global communication best practices17
    17. 17. Global Template – Initial Preparation • Are multiple controlling areas needed? • One CO area simplifies reporting across countries • One CO area requires the same fiscal year variant and chart of accounts (COA) across all companies • Work required for one fiscal year variant and COA can be significant • Will multiple plants exist in the same company code? • One plant per company code facilitates intercompany sales • Simplifies elimination of intercompany profit in consolidations • What are the global definitions for: • Price control: Moving average or standard price • Valuation class: Determine GL accounts / movement types • Unit of measure: Standardize UOM’s18
    18. 18. Local Template- Requirements • How do local processes & regulations vary from global template • What should be standardized globally, what can be customized • For example: A global company may roll out standard pricing for all materials irrespective of the individual countries present price control • Local customizations may require additional configuration and testing • For example: Mexico’s DIOT and IETU custom reports • Review local vendor agreements and shipping document requirements19
    19. 19. Local Template- Statutory Requirements • Determine local statutory reporting requirements, for example: • Intrastat and extrastat reports in EU countries • Monthly declaration that provides EU authorities with statistics on foreign trade • Italy requires numerous, detailed material movement reports • Spain requires a local COA • Local language may be required on local statutory documents20
    20. 20. Local Template- FI Currencies • Determine local and group currencies • It is mandatory to define at least one FI local currency (OB22) • Legal reporting requirements determines the local currency • Head office location usually determines the group currency • Inflation and legal requirements determine hard currency21
    21. 21. Local Template- FI Currencies (cont.) • Additional local currencies require configuration • Every FI document includes postings in the additional local currencies once configured • Currencies cannot be changed after initial postings • Need to change report layouts to view additional currencies • Configuration is required to add additional currencies to CO reports • Consider future company acquisitions and mergers • Even if your company only presently has one currency, add additional currencies if you may expand to other countries22
    22. 22. Local Template- CO Currencies • Controlling area currency example options (Transaction 8KEM): • Adopt the company code currency Currency Type 10 • Independent controlling area currency Currency Type 20 • Adopt group currency Currency Type 3023
    23. 23. Local Template- Roles • Who will perform which process roles at each site after go live? • Separation of duties • Centralized versus localized responsibilities • Benefits may be obtained by consolidating some duties • Who will serve as local site leaders? • Some people may be required to relocate • Language, leadership skills and desires need to be considered24
    24. 24. Local Template- Training • Pre go-live • Who will lead the training initiatives? • Personnel from head office, local, or some combination • What training software will be used? • What is the best way to choose training software • Who will be the power users? • SAP skills/experience, leadership skills, language skills • Will training be on-site or online? • A combination of on-site and online training can be effective25
    25. 25. Local Template- Training (cont.) • Post go-live and ongoing • Training and support are required following implementation • Staff turnover, mergers and acquisitions, utilize new modules • Solution Manager provides a framework for managing training and support • The issues database can be used to highlight training needs • Role-based business process procedures should be created for transactions • Users can use this documentation to train and support themselves26
    26. 26. Local Template- Languages • Determine what language(s) will be used in SAP • You can login to SAP with different languages • Master data descriptions to consider: • Cost Centers, Cost Elements, Profit Centers, Activity Types, etc. • Consider maintaining master data descriptions in English as well as local language so reports can be read by US head office • Will you require all users to communicate in English? • Training materials may need to be translated to local business languages • Organize good local translators in advance of implementation27
    27. 27. Topics • Tanya’s Background • Assumptions • SAP global methodology • Global and local templates • Key training areas • Global communication best practices28
    28. 28. Training Tips for Global CO Rollouts • Gauge the SAP experience of users • Are users seeing SAP for the first time, or is this an upgrade? • More training may required for users new to SAP • Consider as-is costing processes • How much of their CO processes will change? • More process change will require more configuration, master data, and training • Create a CO change management roadmap • Consider formal hierarchies as well as who has influence • Begin training early and reinforce concepts during support29
    29. 29. Training Tips for Global CO Rollouts • Demonstrate changes in CO business processes visually • CO processes can be complicated and difficult to understand • Use diagrams on white boards, flow charts and equations • Draw existing and standard SAP process flows in workshops • Emphasize impact of changes to users • Makes changes relevant to their daily job • Their involvement at an early stage gives them some buy-in • Remember that many non-Finance users need some CO training • Master data owners, planners/schedulers and plant maintenance, etc. • In an integrated system everyone needs to know how others do their job roles at least at a basic level30
    30. 30. Global Structure •Help users understand how their company fits into overall global structure Controlling Area 100 Company Codes 1001 1002 Sales Organization 1001 1002 1003 Plants 0001 0002 0003 0004 Storage Locations 0001 0002 000131
    31. 31. CO Master Data • Cost Center Hierarchy • Explain structure/purpose of cost center hierarchy: KSH3 • Profit Center Hierarchy • Explain structure/purpose of profit center hierarchy: KCHGN • COA and Cost Elements • Train editing COA and creation of primary cost elements • Primary cost elements are created for each P&L GL account • Manual or automatic creation of primary cost elements • Train purpose and creation of secondary cost elements • Used in cost center allocations, results analysis • Use cost center and cost element groups for each plant or company code32
    32. 32. CO Material Master Fields • Price control • Explain local rules for standard or moving average price • Unique valuation classes • Highlight local GL accounts • Describe local movement types for process variations • Valuation level • Split valuation may be required in certain companies • Special procurement for costing • Explain how this links to procurement location and MRP 2 • Base & alterative UOM’s • Conversions can be used to local UOM’s33
    33. 33. Annual Costing Process • Cost Center Planning • Train on cost center planning and entering activity rates • Create variants with cost center or cost element groups specific to plant/company code • Plan Cost Center Allocations • In addition to plant allocations, if cross-company code allocations are in scope: • Train on process for corporate allocations to plants • Explain process for intercompany allocations • Execute Product Costing • If localized costing variants and cost component structure: • Train users to create with reference in Costing Run34
    34. 34. Month End & Year End Close • Closing process overview • Provide a Plant Controller closing checklist • Highlight activities performed locally and centrally • Explain dependencies and communication process to corporate • Calendar of key dates during closing • Open/Close period transactions • Train users responsible for opening and closing the various periods on timing and impact of transactions • Cross-company code allocations • Are corporate allocations to plants or intercompany allocations in scope? • Cost Center Reports • Explain use of cost center groups in cost center reports to35 see only local company codes or plant
    35. 35. Topics • Tanya’s Background • Assumptions • SAP global methodology • Global and local templates • Key training areas • Global communication best practices36
    36. 36. High and Low Context Countries • High-context countries (e.g. China, Japan, and Spain) • Highly focused on maintaining relationships • Communication is indirect and understated • Attention is given to nonverbal behaviors • Ones identity is rooted in groups: family, culture, work • Accuracy is valued • Low-context countries (e.g. U.S., Great Britain, Canada) • Shorter duration of communications: Task-centered • Verbal messages are direct • Communication allows exchange of information, ideas, & opinions • Ones identity is rooted in oneself and accomplishments37 • Speed is valued
    37. 37. Communication Tips- Remote • Be explicit in communication • Review action items at the end of calls and follow up calls with an email summary and action list • Confirm understanding by practicing active communication • Listen intently and restate key points to resolve any differences • Use local terminology instead of speaking ‘SAP-anese’ • Use screen sharing & video conferencing capabilities • Supplement conference calls with video during training and support • Use translation tools when necessary. • Re-translate unclear emails by translating to the foreign language and translating again back to English38
    38. 38. Communication Tips- Onsite • Appreciate and accept cultural differences • Understand typical work hours and holidays of local offices • Learn the most effective way to reach everyone • Honor cultural business norms when visiting on-site • Respect the site’s local hierarchy • Ask questions about processes in different ways and to different people • Confirm understanding of process by asking multiple touch points • Utilize team members or translators that can interpret • Consider placing people that speak the native language in site leader roles where they can be a liaison39
    39. 39. Summary • Global CO implementations can be complex, expensive & risky • Understanding potential local requirement issues is key • Define and agree on global deployment strategy and financial definitions • E.g. price control, COA, valuation class, UoM • Extensive training is required for a successful global rollout40
    40. 40. Resources • Ciber; Whitepaper: Conquering the Challenge of Global SAP Implementations: SAP Rollout Strategies and Best Practices; 2007 • http://www.ciber.com/downloads/whitepapers/CIBER_Global_ SAP.pdf • SAP Solution Manager Library: Global Rollout with a Template • http://help.sap.com/saphelp_sm40/helpdata/en/6a/bf1603d4f0 944c81366cef742 7bd12/frameset.htm • Infosys, Prakesh Pol & Madhup Paturkar; Whitepaper: Methods of Fit Gap Analysis in SAP ERP Projects; 2011 • http://www.infosys.com/SAP/thought- leadership/Documents/methods-fit-gap- analysis.pdf41
    41. 41. Five Key Ideas • Establishing a global blueprint serves as a strong foundation for local rollouts • Identifying local and country-specific requirements early will allow accurate expectations for the custom configuration and RICEFW objects • Several tools and methodologies such as Global ASAP, Solution Manager and Fit Gap Analysis are recommended to streamline global rollouts • Training on global projects requires frequent reinforcement, visual explanations, and consideration for the local chain of command • Recognizing and appreciating cultural differences in the work place in a global SAP deployment will increase your success42
    42. 42. Questions • Now: • Ask questions now for immediate answers • Later: • TanyaDuncan@Deloitte.com Q&A43
    43. 43. DisclaimerSAP®, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP® products andservices mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG inGermany and in several other countries all over the world. All other product and service names mentioned are thetrademarks of their respective companies. ERP Corp is neither owned nor controlled by SAP.
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