Optimizing the controlling structure during migration to S/4HANA

The first step in the migration process is to analyze the structure of the controlling areas within the organization In a globalized environment, long-standing solutions often no longer meet current business requirements.

This situation most commonly affects international manufacturing companies with complex structures, where individual business units operate in different countries or regions. We often encounter system configurations with several separate controlling areas for each business unit, resulting in a distributed reporting system. While this solution aligns with the historical approach to local regulatory requirements, it results in excessive process complexity and significantly reduces efficiency.

The division into multiple controlling areas generates redundant reports that require time-consuming analysis. As a result, the reporting process becomes less transparent, negatively impacting cost management. To minimize these issues, we implement controlling area merge projects that help consolidate controlling areas into a single, global area. This provides the company with a unified and integrated controlling framework.

Using the Transformation Cockpit, we are able to perform selective migration of both master and transactional data while ensuring full compliance with the requirements of the target system. This process involves not only configuration changes but also the harmonization of historical data.

Controlling area merge projects enable centralization of data of multiple controlling areas into one, which not only simplifies the reporting process, but also minimizes the risk of errors associated with manual data consolidation. Ultimately, this migration results in the creation of a coherent reporting system that provides better control over global costs, enabling more accurate forecasting and cost analysis.

A key aspect of such merge projects is ensuring the consistency of historical values. The conversion to SAP S/4HANA, along with the merging of controlling areas, represents a strategic step towards enhancing the operational efficiency of the enterprise and optimizing controlling processes.

One of the key challenges in the migration process is changing the currency of the controlling area in the target system, which necessitates the conversion of all historical data. This currency conversion involves both historical data and current transactions, which requires careful analysis and precise application of migration tools. As part of the project, we also consolidate cost centers, profit centers, and cost components.

The outcome of these efforts is the grouping and harmonization of data at the level of the SAP Universal Journal (table ACDOCA), enabling more efficient reporting and financial data analysis. For international companies, all historical data is automatically converted to the new target currency, in accordance with local regulations and global standards. The currency conversion rate depends on the project decision. Most often it is the last day of the fiscal year.

We carry out all work in close cooperation with the client, using tools such as Transformation Cockpit and CrystalBridge, which ensure the security of the migration process and minimize the risk of data loss. This cooperation allows us to flexibly adapt the migration processes to the specific business needs and requirements of the enterprise.