ucb - sap euro project

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998

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UCB - SAP EURO PROJECT

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Premise of the SAP EMU Conversion

• Conversion is performed at client level• All objects that use a currency

participating in EMU are converted BEF (10 companies) DEM (1 company)

• All fiscal years are converted 09/1995 03/1999

• Postings on previous years are forbidden after the conversion

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TECHNICAL PREPARATION

• Constraints– Upgrade 4.0B August/October– Frequent Backup/Restore– High resources consumption– Specific customizing– Copy of production environment (disk space)

Specific test environment requested

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ANALYSIS PHASE

Purpose : Consistency check on • Master data and transactions in all concerned

modules FI, AM, MM, SD, CO, PM, PP• EURO specific Customizing Currencies, GL accounts, ... • System Environment Authorizations, configuration, lock of users, ...

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ANALYSIS PHASE - Customizing

For Conversion• Company code definition must be complete• New document type “EU” specific for EURO postings• Assignment of GL accounts to postings categories As example :

Category GL/Account001 4990000901 Document rounding difference002 4990000902 Clearing procedure rounding difference003 4990000903 Local curr.ledger balance carried fwd debit/credit diffs004 4990000904 FI-MM inventory management rounding difference (items)005 4990000905 GR/IR purchase order history rounding difference (items)006 4990000906 FI-AA general ledger rounding difference (items)

For 1st January 1999• Lock AM transactions for 1999 (acquisitions only)• Creation of EUR currency + EURO rules

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ANALYSIS PHASETransactions Data Checks

It consists in a set of SAP programs which MUST be run to ensure data consistency. Single failed programs can be restarted.

• FI : Clearing, open items, reconciliation accounts, carried forward

• AM : FI/AM coherence (assets value, depreciation, reconciliation accounts, …)

• MM :FI/MM coherence (total stocks = GL accounts)• SD : currencies used• CO :FI/CO consistencies

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ANALYSIS PHASETransactions Data Checks

All checks must be completed

No conversion is possible if a check fails

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CONVERSION PHASE

More than 200 SAP Programs included in an SAP procedure will be run within a strict sequence.

ALL users are disconnected

NO restart is possible if a program fails (restore of a backup is necessary)

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Productive Conversion : Schedule

• BACKUP 4 H 00’• ANALYZE PHASE 6 H 30’• Corrections ?• BACKUP 4 H 00’• CONVERSION 17 H 00’• POSTPROCESSING 2 H 00’

33 H 30’(Estimated time for a restore - 6 H00)

Actual tests realized on a copy of the Production environment of August 1998. (estimated size growth for April 1999 : +25%)

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TESTS RESULTS

UCB business related :• Asset values• Exotic currencies• MM stock value / GL accounts• Clearing documents

SAP related :• Clearing procedure• Business area determination

Global satisfaction : restricted areas of problems.

One week was necessary to clear “roughly” some problems and to make a successful conversion

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ASSETS

Origin :• Rounding in depreciation values• Transfer in Jan/98 from 6 to 10 GL Accounts

positions• Depreciation and retirement in 1998 (will be blocked in 1999 until the conversion)

The differences on the appropriate Asset reconciliation accounts were solved by manual postings

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EXOTIC CURRENCIES

In 5 invoices (Sep 1995 => Mar 1996), currency codes FEB or DM have been found in the pricing procedure. No postings in FI have been done on this base.

The creation of the two currency codes is mandatory. The validity date will be restricted for the 3 days of conversion run.

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MM STOCK VALUES / GL ACCOUNTS

The total values in Material master records are not equal to the values in the GL accounts linked to these Material master records.

Example : values of Finished Goods <> value in GL Account 3300000001

Differences : 1 BEF on 3101000001 7 BEF on 3300000001 0,02 DEM on 3300000001

Differences were posted manually on the GL accounts

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CLEARING DOCUMENTS! Checks are only made on current year.

Origin : manual clearing of documents in foreign currencies

Three kinds of GL accounts are concerned• Vendor Accounts

– Personnel– Others

• Accrual GL Accounts• Bank accounts (and related)

The only solution is to unclear all documents which are in error + all subsequent documents.

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Business Area Determination

Some category of adjustments postings generated by SAP are not taking into account the business area concept.

This problem does not block the conversion but does not meet our requirements.

SAP is working about this subject and some enhancements should be available soon.(in some cases, the business area determination will be impossible and manual postings will be necessary)

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ISSUES : Credit management

Before

After

New credit limit in EUR with rounded amounts? Based on data given by Financial Services, an automated load could be prepared.

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INTERFACE : PHARMACEUTICALS

Incoming GL documents in an EMU CurrencyAlternative :• Document currency amounts in BEF will be

translated automatically by SAP and no more transferred from ROSS System.

• Documents in error are manually updated in SAP

Between EMU currencies, SAP forbids to use exchange rates that differ from the official rates fixed on 1st January 1999.

In both cases, differences between ROSS and SAP could happen.

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TAX REPORTS

• GERMANY : reports must be in DEM until 2002

• BELGIUM : within a year, the reports must be in the same currency. The EUR currency is allowed from January 1999.

In UCB SA-NV, tax reports will be done in EUR from 1st January 1999.

For UCB SA-NV, from January 1999 until the conversion, reports can be printed in BEF and EUR. After the conversion, EUR will be the only possible reporting currency.

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BANK ACCOUNTS

• No bank accounts should be converted to EUR until the conversion (work load)

• All bank accounts held in BEF will be converted automatically to EUR during the conversion

A manual procedure must be executed for the Bank accounts which must be held in BEF after conversionTransfer of line items to a temporary account, change the currency key of the bank account, transfer of the line items from the temporary account to the changed account (x 6)

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PLANNING

1998 1999AUG SEP OCT NOV DEC JAN FEB MAR APR

Environment Upgrade 3.0F => 4.OB

EURO system InstallationTechnical testsFunctional tests for 1 jan 1999

EURO Currency Active

Conversion tests ValidationData "corrections"Archiving preparation + ValidationArchivingSystems conversionUsers TrainingProduction Environment Conversion

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WORKGROUPS

• Accounting (FI + CO)• Tax• Archiving• Currency management• Credit management + master data• Payments

In order to achieve the work for EUR currency usage on 1st January 1999 and to prepare the conversion, workgroups are proposed by subjects.

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TASKS TO BE ACHIEVED1998 1999

TASKS WHO NOV DEC JAN FEB MAR APR

Clearing ACCorrections + setupNo manual clearing

Documents Archiving AC, TAXDefinitionArchiving

Conversion + Post-Processing AC

Bank Accounts AC

Payment transactions AC

Interfaces PHARMACEUTICALS ACJanuary 1999After Conversion

Commissions (Chemicals) AC, MIS

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TASKS TO BE ACHIEVED

1998 1999TASKS WHO NOV DEC JAN FEB MAR APR

Credit Management FD

Inter UCB transactions FD

Currency rates CURTranslation ratiosInterfaces1/1/1999 rates

Training ALL

ReportingTax TAXOthers ALL

Production Environment Validation ALLEUR on 1st January 1999Conversion

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ucb - sap euro project

Documents

sap procedure

set of sap programs

sap emu conversionconversion

h 00conversion17 h

gl accounts positionsdeprec

reconciliation accounts

gl accountssd

data consistency