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Finance Transformation with SAP New GL

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Finance Transformation with SAP New GL

  1. 1. What service SAP offers • SAP offers obligatory service for each New GL Migration. • ‘Questionnaire’ for determining migration scenario. • Scenario-based migration Cockpit program (Process Tree) • Remote service sessions (scenario validation and test validations to check data consistency) • Back office support. • All at a fixed price. How PwC can help • New GL migration is not a technical data migration project. This is an opportunity for significant process improvements and also address existing pain points in the process. • With industry, process and technology experience, we can help you to transform your financial and management reporting, with migration to SAP New GL and implementation of it’s new features, suited for the industry and your specific business needs. • We have helped multiple utilities in the market place with their New GL initiatives, right from assessment through migration. For more information, contact: Matthew Labovich Principal– Power & Utilities 703 918 3649 matthew.labovich@us.pwc.com Saugata Ghosh Director – SAP Finance Transformation 408 623 9572 saugata.ghosh@us.pwc.com Nilotpal Pegu Director – Power & Utilities 415 690 6421 n.pegu@us.pwc.com Why New GL • New and simplified finance data structure (new tables) bringing in significant improvements in data query and reporting. • Extendibility of finance data structure with ‘Customer’ fields can allow reporting based on industry/ customer specific reporting attributes. • Single version of truth with CO/FI real-time integration. No need for reconciliation ledger, no need for month-end reconciliations. • Improved segment reporting. Independent financial statements using dimensions like Segment, Profit Center, Business Area. Online ‘Document Splitting’ makes it real-time and also eliminates many cumbersome month-end allocations and adjustments. • Parallel accounting with ‘Leading’ and ‘Non- leading’ ledgers; support multiple accounting principles, valuations and fiscal years. No need for highly customized solutions like Special Purpose Ledger. • ‘Leading’ and ‘Non-leading’ ledgers operating on same set of standard tables and accessible through standard reports. • Same user interface for ‘Leading’ and ‘Non- leading’ ledgers (data entry and reporting). Ability to post into multiple ledgers and to specific Ledgers. • Ability to allocate GL balance based on additional dimensions. Example B/S items allocation by Profit Center or Segment. • Faster and more efficient ‘Period Close’ due to reduction of manual processing and elimination of several period-end activities like B/S adjustment, CO/FI reconciliation. Closing activities can be run separately in parallel Ledgers. • Improved reporting with new out-of-the box standard reports based on New GL data structure. Finance Transformation with SAP New GL Migration benefits & considerations www.pwc.com/us/utilities www.pwc.com/us/sap With industry, process and technology experience, we can help you to transform your financial and management reporting, with migration to SAP New GL and implementation of it’s new features, suited for the industry and your specific business needs. Moving onto New GL would be a stepping stone for embracing future roadmap powered by Suite on Hana and Smart Financials. Legal and Management Reporting Standard Enhancement and Extensibility (With customer fields) Financial Reporting Using Any Characteristics (document splitting) Simple Representation of Parallel Accounting Real -Time Integration CO=>FI Segment Reporting Transparency and Consistency Accelerated Period - End Closing New General Ledger Accounting in mySAP ERP
  2. 2. Finance Transformation with SAP New GL Migration benefits & considerations © 2014 PricewaterhouseCoopers LLP. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. With industry, process and technology experience, we can help you to transform your financial and management reporting, with migration to SAP New GL and implementation of it’s new features, suited for the industry and your specific business needs. Moving onto New GL would be a stepping stone for embracing future roadmap powered by Suite on Hana and Smart Financials. What you get out of Migration • New functionalities and processes • Data transferred from old tables to the New GL tables (FAGLFLEXT, FAGLFLEXA, etc.) What data gets transferred • Open items from previous years • Account balances as carried forward from previous years • Documents from current year ‘Phases’ and ‘Dates’ in Migration • Phase 0 (Old fiscal year with Classic GL): Involves all the activities that happen before ‘migration date’. Example – assessment, design, purchasing of New GL cockpit, scenario validation, data analysis for inconsistency check, New GL pilot, configuration, development, migration testing and cutover. • Migration Date: The date on/before which all the New GL configuration including the migration cockpit are moved to the productive environment. However, data is NOT migrated yet and New GL is NOT activated yet. This has to be the first day of a fiscal year. • Phase 1 (New fiscal year with Classic GL): This is the time when the New GL transports are in the productive environment without New GL activation. Postings allowed in both old and new fiscal year. Key activity during this phase is migration testing, test validation with SAP and year-end close. • Activation Date: At a chosen weekend, the data is migrated to New GL tables followed by activation of New GL. Year-end closing of the old fiscal year must be complete before this. • Phase 2 (New fiscal year with New GL): This is when business runs on New GL environment. What are the migration scenarios to begin with… • Scenario-1: Merge of FI Ledgers i.e. Classic GL COS and Consolidation ledgers. • Scenario-2: Merge of FI, PCA and Special Purpose ledgers. • Scenario-3: Scenario ‘2’ + Document Splitting • Scenario-4: Scenario ‘2’ + Parallel Ledger • Scenario-5: Scenario ‘2’ + Document Splitting + Parallel Ledger. What are ‘Key’ considerations • SAP landscape. What are different SAP systems in use. • Modules in use. • Regulatory accounting and reporting solution. • Is classic Profit Center accounting in use. • Is Cost of Sales accounting in use. • Is Special Purpose Ledger(s) in use. • Is Document splitting already used in FI-SL. • Inbound and outbound interfaces. • Consolidation process is use. • How many company codes and cross- company-code clearings exist? • Are different fiscal year variants in use? • Are additional currencies in special purpose ledgers in use? • Is parallel valuation in use? • G/L accounts managed as open items. • What New GL functionalities to implement. • Is there any need for migration from account approach to ledger approach. • How many documents are expected in the migration period (phase 1). • What will be the ‘migration date? This has to be the first day of a fiscal year. • What will be the ‘activation date’? This has to be after the previous fiscal year has been closed. Migration Project - Phases Migration Date Activation Date Old fiscal Year New Fiscal Year Classic General Ledger Acctg Classic General Ledger Acctg New General Ledger Acctg Phase 0 Phase 1 Phase 2 ‘Scenario’ Determination Use of PCA or SPL? Need Document Splitting? Need ledger solution for Parallel Accounting? Need ledger solution for parallel accounting? Scenario 1 Scenario 3 Scenario 5 Scenario 4 Scenario 2 No No No Yes Yes Yes Yes No

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