Selective Data Transition Scenario for SAP S/4HANA – SAP ECC system Conversion to S/4HANA 1909

Abstract:

When we are doing an ECC system Conversion to an S/4HANA 1909 or Higher versions, there are many factors to be considered. One of the major parameters is “The existing data”. What to do with existing data – it may be 15 years of data and what are the implications when migrating the data? What do we do with data that is older than 15 years? These are very common questions when doing system conversion. The most challenging topic that must be addressed is Archiving. Archiving business application data – which is critical in reducing the conversion time and errors during migration – must be discussed with the client to ensure that all local statutory and fiscal requirements are met and can continue to be met.

In this blog article I would like to provide an overview of a scenario that you may feel worth considering – System Conversion and Selective Data Transition.
Selective Data Transition (formerly known as Landscape Transformation) is the consolidation of existing SAP Business Suite landscape or selective data transformation into one global SAP S/4HANA system.

Business benefits:
a. Reduced hardware
b. Lower migration efforts and costs
c. Shorter conversion runtimes

Introduction:

Selective Data Transition is an alternative to the Greenfield approach or Brownfield approach. If a customer is on SAP ECC planning for transition to SAP S/4HANA, then selective data transition is one of the approaches to be considered to move to SAP S/4HANA. Selective Data Transition Scenario helps the customers to enable the right balance between process “redesign and “reuse”. With selective transactional data migration, customers can choose to “reuse some part of the SAP ECC processes and redesign some other parts.” For example, MM and SD processes could be reused and Finance and Controlling processes could be redesigned. This approach also helps customers to migrate company code specific data for all or specific fiscal years. Selective Migration Approach helps SAP ECC customers for the consolidation of SAP Business Suite landscapes into an S/4HANA system using the SAP Landscape Transformation Replication Server. (SLT).

Generally, large companies with large amounts of data and many company codes use Selective Data Transition Scenario, if they do data migration based on SAP LT technology with data transfers at table level or using postings. But there may be limitations like Migrating Account based approach to Ledger based approach, we may not be able to migrate History of Financial accounting Transactional data.

Benefits of this Approach:

• This approach is like a combination of Conversion and Implementation. For example, once Conversion is completed we will be able to introduce Document splitting or segment reporting, Profit Center Reporting, or introduction of Parallel ledgers for posting different accounting principles on different ledgers, and so on….
• Some of the applications can be redesigned and some other applications can be reused.
• Consolidate multiple ECC systems into one system.

One general recommendation before conversion is to complete Financial accounting close and reconciliation processes in the legacy system to establish a solid baseline from which to work with in the new S/4HANA Environment for all selected fiscal years.
• Perform a real FI Close
• Reconcile ALL your accounts
Thereby establishing a clean start in the S/4HANA Environment. Do not import legacy issues into the S/4HANA System.

Customers have options – This is called Selective.

During System Conversion from ECC to SAP S/4HANA, all company codes will be moved to new structure and we do not have an option (except in Company Code Specific Conversion to S/4HANA). But in Selective Data Transition, we have an option to move specific fiscal years data or Specific Company codes etc. This is what Selective means.

There are two Options

1. Selective Data Transition Option 1: Shell-Creation
2. Selective Data Transition Option 2: Mix & Match (SAP Model Company)

Option 1: Shell-Creation

1. Copy of the system without transaction data (System copy without data)
2. Complete all the preparation and realisation activities. (Pre-checks, Simplification checks, Maintenance planner, Cross Application checks, CVI, and all other activities similar to another Conversion project)
3. Convert the system to SAP S/4HANA
4. Selective data transfer based on client requirement (Selective data transfer – certain company codes and selective years)

Target system customising and repository will be created manually by the customer or partner. Processes and settings can be partly created from scratch or imported from the source ERP system using TMS. SAP recommends using Solman Retrofit for the fit gap analysis.
Selective data Transition based on Organization units like plants, or split by Business area, or split by Countries or based on number of fiscal years. Contact SAP DMLT services for more information on this.
This approach is for Customizing re-use like Brownfield. We create new target shell and re use existing ERP customisation and on the top of this, we will be able to build customer specific.

Option 2: Mix & Match (SAP Model Company)

This option has two variants
a. SAP S/4HANA Greenfield approach with SAP model company
b. SAP S/4HANA Greenfield without SAP Model Company

This approach is for Customising redesign, like new Implementation. We will have to create configuration from the beginning. Target system configuration and repository will be defined manually by the consultants working on the project. Processes and settings can be partly created from scratch or imported from the source ERP system using TMS. SAP recommends using Solman Retrofit for the fit gap analysis.

Consultants perform the data migration (master data and transactional data ) from the SAP ECC source system to the S/4 production system. The data can be selected, though only include open processes or complete history. Incremental migrations (phased go-lives) are possible. In this case selective data transfer is possible for selective years and selective company codes.

About the Author:
Dr. Ravi Surya Subrahmanyam is a technical and Financials writer with a background in SAP Financial Accounting, Funds Management, Group Reporting, Financial Supply Chain Management, Cash Management & in-house cash, SAP S/4 HANA Finance. He has been working as a Director for the SAP Practice for The Hackett group India Ltd, (Answerthink Company). He completed his Master’s degree in Finance from Central University, Master of Commerce from Osmania University, Master of Commerce from Andhra University, and Ph.D.in Finance from one of the best universities in India. His research Papers have been published in National and International magazines. He has been a Visiting Instructor for SAP India Education and SAP Indonesia – Education. He has been working on Conversion and Upgradation projects. He is a Certified Solution Architect for SAP S/4 HANA and an SAP S/4 HANA Certified Professional. He can be reached at sravi@answerthink.com or fico_rss@yahoo.com

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