SAP FICO Cutover activity plan complete activities
目录
https://blogs.sap.com/2022/10/14/sap-fi-cutover-activity-plan-complete-activities/
chandan bhatnagar
October 14, 2022 13 minute read
SAP FI Cutover activity plan complete activities
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Introduction
ABC SAP Implementation Project will replace some of ABC’s existing legacy applications with SAP. This cutover approach document defines how existing ABC business processes, operations, systems, and data will be transitioned to SAP. It also focuses on both the technical and system processes required to have the SAP production system operational along with the interim process, procedures and governance measures that will need to be put in place by XXXXXX (cutover date) to ensure the transition is as smooth as possible.
Purpose
This document aims to identify and describe all tasks associated with the project cutover. In addition, it outlines the objectives, scope, approach, responsibilities and resources associated with cutover activities. This document will be used as a key communication tool to project teams regarding cutover activities.
To ensure consistency in communication, the following terminology will be used to describe the stages of implementation:
Cutover represents the period immediately prior to go-live. It includes the set of activities required to prepare the SAP production system and transition data and processes from the legacy environment to SAP production.
Go-live is the point in time when the production system becomes available to end-users.
Post-implementation support is the period immediately following go-live where the project will be primarily responsible for coordinating and managing support activities. After this initial period, primary responsibility will transfer to ABC’s IT support function.
Handover Refers to the project phase where project deliverables and responsibilities will be transferred to ABC.
Objectives of Cutover
The overall objective of the cutover activity is to transition ABC operations from operating its business systems and using legacy applications, to operating its business using SAP.
The overall guiding principles for cutover are to
Ensure users are without the Legacy system for as short a time as possible
Ensure no parallel processing of data is to occur after cutover period
Follow techniques that are consistent, tested, tried and true
Minimize the disruption to ABC’s business operations during the cutover process
Ensure appropriate and timely communication and escalation process throughout the implementation period. This includes a clear process for the escalation of issues and decision making in a timely manner during this complex period
Minimize the risk of having a non-planned, non-considered or uncontrolled situation occur during the implementation process
Ensure appropriate engagement and support of ABC’s stakeholders to facilitate the resolution of issues, acceptance of risks and availability for decision making necessary during the implementation process
The specific cutover objectives are
To prepare the SAP Enterprise Resource Planning (ERP) production environments for cutover and go live.
To provide Business Area or profit center wise Trial balance
To migrate all system configuration from test to the production environment.
To ensure that SAP batch jobs are scheduled.
To successfully convert all data (albeit on different dates).
To ensure verification and signoff of converted data by appropriate business users and project resources.
To decommission redundant legacy systems.
Cutover Roles and Responsibilities
Data Owners
Process Owners/core team Provide signoff on the final load files before their final load into SAP
Ensure that data extraction and transformation activities are executed to schedule, as detailed in the project plan
Provide sign-off and approval of all data objects
Continuously monitor local changes in the enterprise and asses any impact on SAP data
Assist in the facilitation of dual data maintenance activities in both the legacy and SAP applications during the cutover period
Data Validation
Prepares appropriate validation/reconciliation plans to ensure high standards of data quality within the SAP system
Works with the cutover manager to ensure appropriate cutover processes are designed to meet specific requirements
Undertakes pre-prepared validation/reconciliation plans prior and post system load of data
On-going monitoring of data to ensure high quality of data throughout the migration period
Ensures the cutover manager and data owner is aware of any issues that arise in the validation of data and assists in any required resolution
Informs the cutover manager of progress and completion of validation and reconciliation tests
On upload of master data, functional leads will provide uploaded data with SAP code (Internally Generated) for validation/ reference
Data Migration
Functional Lead Receives, cleanses, validates and prepares data load into SAP
Resolves variances arising between the data as defined and the data as sourced
Assists in the resolution of data transformation and load issues
All production master and Cut-over data will be uploaded with Business User ID of SAP. Functional leads will not have individual access in production server.
Cutover Strategy
Balances and Open Items in Financial Accounting
Broadly the cut over process for Finance will be categorized as follows
Open Items in Vendor Accounts
Open item in Customer Accounts
Fixed Assets Values
General Ledger Accounts
Balance Sheet Accounts
Profit & Loss Accounts
All balances will be taken over as on XXXXXX(cutover date). Business Area or Profit center wise Trial balance needs to be provided by Business. The data upload for initial values and transactions for each of these categories will be managed through separate Initial Data Takeover Accounts to facilitate reconciliation and error handling.
The preparations will be done considering the following
A mapping will need to be created between the legacy Chart of Account and SAP Chart of Account to identify:
Legacy Accounts which have been mapped to SAP COA on a one-on-one basis
Where more than one legacy account has been mapped to a single account in SAP COA. The
balances in these accounts will need to be consolidated.
Legacy Accounts, which have been split and have been mapped to different accounts SAP COA on some basis. The balances in these accounts will need to be split on such basis.
The legacy information relating to the balances or original transactions (in case of open items) that needs to be transferred to SAP for future reference and comparative analysis.
Appropriate posting keys will need to be assigned to each balance or open item. In case of special GL transactions appropriate special GL Indicator will need to be assigned.
All balances and open items will be posted as individual FI documents with an offsetting line-item entry in corresponding debit/credit of relevant offset account. On completion of upload of all financial balances, the total of all offset accounts shall become zero (0) and these accounts will be netted out with each other and deactivated for future postings.
All master data like vendor codes, GL Account Codes referred to in the line items for upload will need to be uploaded in SAP prior to data upload. A procedure will be established to run an existence check as a part of data cleaning / preparation process.
All data for input will need to be clean and wherever data is validated with any values in the SAP system (e.g. Masters like Company Code, Plant, business Area etc.), all such master records or other value lists will need to be present in the system configuration.
Data will be required with SAP codes in the upload format.
Open Items in Vendor Accounts
Vendor balances will be uploaded at open invoices level for each plant/ business area.
Document Type XX will be used for all initial uploads.
Open line items would be entered in the system after all the necessary adjustments in vendor accounts. All adjustments relating to vendor debit notes, credit notes, advances should be made in legacy prior to uploading the open items.
All vendor open items, whether belonging to previous financial year or earlier, will need to be transferred to SAP at line-item level
Open items due to rounding off differences needs to be cleared in legacy system before the cutover data is prepared.
A separate GL Account will be used for Vendor reconciliation account offset.
Special GL transactions like advances and deposits will need to be uploaded with appropriate special GL indicators and posting keys.
Payment terms will need special consideration as various open items may be at different stages of maturity toward due date for payment.
The existing payment terms should also be available in SAP.
Calculation of due date will be determined from the baseline date and care must be exercised to specify baseline date that will enable determination of correct due date from payment terms.
It is proposed that legacy data should provide the exact due date, actual due dates be captured in the field ‘Baseline Date’ and payment terms for all open items should “Immediately Due, Net”. This will ensure all payment processing is done on actual due dates.
No tax deduction on open items through SAP will be made. All tax deduction should be completed before takeover of transaction in SAP and the line item for tax deduction should be taken over as a normal debit line item. While uploading the vendor balances, the Withholding Tax will be deactivated at respective company code level. After the vendor balances are uploaded and verified in SAP, the withholding tax will be activated for normal operation.
In all cases distinction will be made between capital and revenue liabilities and advances using of appropriate Special GL Indicators already configured in the system.
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