CUTOVER ACTIVITIES We will divide the activities as follows:A. Pre-Go Live activities B. Pre-Go Live checks C. Upload transaction data into the system
A) Pre-Go live activities 1. Master data Load into Production system Ensure all the master data is loaded into the production system. We will broadly cover the master data which needs to be loaded and the module responsible.
Material Master Basic responsibility MM: All the respective views of the material master the other modules responsible. Ensure that all the required views are uploaded.
GL codes - FI Customer Master - FI (accounting view) and SD (sales view) Vendor Master - FI (accounting view) and MM (purchasing view) Cost elements - CO Secondary cost elements - CO Profit centers - CO Cost center - CO Activity type - CO Bill of Material - PP Work Center/ Resource - PP Routing / Master Recipe - PP Purchasing Info Record - MM Service Master - MM Bank Master - FI Quality Info Record - QM Quality Inspection plan
2. Upload Cost center plan Cost center plan must be updated through transaction code KP06 or using excel upload.
3. Execute the allocation cycles within cost center accounting The plan allocation cycles (distribution, assessment) must be executed within the cost center accounting module. This will allocate the costs from the service cost center to the receiver cost center. 4. Update planned activity After executing of the plan allocation cycles, the production cost centers are now ready with the planned costs. You can now calculate the activity prices through the system or manually update the planned prices by calculating it outside. The planned activity must be updated through transaction code KP26. 5. Calculate Activity prices Calculate the activity prices using transaction code KSPI. 6. Execute product costing run The product costing run will be executed for all semi-finished and finished materials in the system using transaction code CK40N. This should be run after all the BOM and Master recipe are uploaded. The product cost finalization takes a long time and should begin well in advance before the go live date. Normally the product costing run has to be executed again and again (3-4 times) since data needs to be corrected and costs have to be compared with the existing legacy cost. The possible errors in the product costing run are: Moving average prices or planned prices are not correctly maintained in the material masters. Incorrect quantities in the Bill of Materials, incorrect base unit quantity in the Bill of Material. Incorrect quantities (hours, KWH etc.) for activities in the Routing or Master recipe. Incorrect alternate unit of Measure The product costing is calculated and made ready. The actual Mark and release will happen on after the stocks are uploaded into the system.
B) Pre-Go Live Checks Ensure all the customizing request is in the production system. Check that all the customizing request are gone in the system and no major requests are pending. Request relating to reports being developed can be transported as and when the reports are ready. Ensure all the number ranges for all the modules have been maintained in the production system. Ensure that Operating concern has been generated. Ensure that all the Customer Master data is loaded. Ensure all material masters (all material types) have been loaded. Ensure that all the Vendor Master data is loaded.
C) Upload transaction data into system Create two new GL accounts in Production for the Purpose of initial balances upload. One for Initial Stock Upload and another for the GL balance. Open only the current period of posting or the legacy date period in which you are posting in OB52 and close all other periods. Similarly use OKP1 for CO period lock. Do not open MM period after the legacy period at the time if initial stocks upload and get the same is opened by the core team member responsible for opening after completion of your upload activities. This will prevent erroneous posting to the next period due to the wrong dates given in the upload file. Create a New Filed Status group with most of organizations elements selected as optional. Make sure that if profit center is mandatory it needs to be mandatory only and do not change it to optional, as the LSMW screen doesn’t popup the profit center filed if the same is optional. 1. Upload Open purchase orders The company closes it sales The company stops all its stock movement Open purchase orders can well be uploaded into the system in advance before the cutoff date if no invoices are expected. 2. Stock upload The stocks will be finalized The company closes it old (legacy) system
Stock upload happens in 2 steps:1. Finished goods: The standard prices are first uploaded through MR21 or through an ABAP program which also uses MR21. The stock quantities are uploaded using movement type 561 through an ABAP program which calls transaction MB1C. 2. Raw Material, packing Material, stores and spare parts: The quantities and values are uploaded at the same time using an ABAP program which calls transaction MB1C. The stock upload will generate the following entry in the system:Finished goods stock a/c Debit Semi-Finished goods stock a/c Debit Raw Material stock a/c Debit Packing Material stock a/c Debit Stores and spares a/c Debit Data take over Credit 3. Mark and Release the cost estimate After the stock is uploaded into the system, the standard cost estimate will be marked and released into the material master using transaction code CK40N.
The system is available for data entry and operation to the users 4. Upload Accounts Receivable and Accounts Payable open items The Accounts Receivable and Accounts Payable open items are uploaded through LSMW which calls transaction code F-02 GL Account posting. The profit center is captured in the data take over account. Baseline date must be captured, which will determine aging based on number of days mentioned in the payment terms. The accounting entry for Accounts Receivable open item upload is:Customer a/c (not GL) Debit Data takeover a/c Credit The accounting entry for Accounts Payable open item upload is:Data takeover a/c Debit Vendor a/c (not GL) Credit Thus Accounts Receivable is available for customer incoming payment and Accounts Payable is available for making payment.
5. Asset Master and value upload Asset Master is a special case of upload where in you upload not only the master data but also the values. The total cost and accumulated depreciation are also uploaded at the same time. This is done through transaction code AS91. We will explain how it is done. 5.1 The upload of asset master and values through AS91 This upload of asset masters along with the values will not update the FI General Ledger. The FI - GL entry balance update will be passed through another transaction. 5.2 Transfer Asset balance into profit center Once the asset master along with the values is uploaded, the opening balance for the asset needs to be transferred to profit center. The asset balances opening balances are transferred into profit center accounting through transaction code 1KEI. 5.3 Remove the GL codes for asset from 3KEH table Remove the Asset reconciliation codes from the transaction code 3KEH. This is required because a manual FI entry will be passed in the next step, which will duplicate posting into PCA for the assets. 5.4 Update the FI entry for asset through transaction OASV. We give an example of how a GL entry passed for Fixed asset upload:Let us take Plant and Machinery Plant and Machinery a/c Dr 100,000 Accumulated depreciation a/c Cr 30,000 Data takeover a/c Cr 70,000 5.5 Reinstate the GL codes for asset in 3KEH After passing the entry for asset upload update the asset reconciliation accounts in transaction code 3KEH. 6. Upload General Ledger account balances
Finally we upload the remaining General Ledger account balances other than Fixed Assets, Stock, Accounts Receivable and Accounts Payable. This is again uploaded through an LSMW program which calls transaction code F-02 GL. Posting Let us take an example for the accounting entry passed:Data takeover a/c Debit 550,000 (Balancing figure) Cash a/c Debit 10,000 Bank a/c Debit 50,000 Advances Debit 90,000 Share capital a/c Credit 100,000 Short term Loan a/c Credit 200,000 Long term loan a/c Credit 400,000 The Data takeover will become zero on upload of this entry. Once the initial balance accounts balances are zero, take the signoff and block the accounts for posting in future.
Thus entire data take over activities are to be completed
EXAMPLE WITH THE DATES – CUTOVER ACTIVITIES
The Go Live strategy comprises of the following:1. Cut off procedure 2. Pre-Go live checks. What is meant by cutoff date? SAP system is configured as per the requirement of the client. The system is ready for the client to use. The client now needs to migrate from the Old system (Legacy system) to the new SAP system.
The migration from the old system to the new system is known as cutoff date. The old system is switched off and the new SAP system is switched on. The data will be migrated from the old system to SAP. The data will henceforth be entered in the new SAP system. To have a smooth switch over from the Legacy system to the new SAP systems it is devised with the cut off procedure. What is meant by Pre Go live check? It is ensuring that SAP Production system is ready to go live smoothly. Let proceed then.
Scenario A Ltd. is a company implementing SAP system. The company follows a January - December period for preparing financial accounts. Therefore the go live data decided for A Ltd is 2nd January 2015. The Trial balance will be uploaded with date as on 31st December 2014. The Trial balance will consist only of balance sheet items since all the expense items are already transferred to the retained earnings account in the old system.
The activities are divided as follows:1) Pre Go live activities A Ltd will upload the GL codes, Cost Elements, Cost Center, Activity Type, SKF in the production system on 1st December 2014. A Ltd will complete upload of all the material masters with all the views in the production system by 2nd December 2014. All Bill of Material, Work Center/Resource, and Routings/Master Recipe will be uploaded in the production system by 4th December 2014. (PP) The material masters for finished goods and Semi- Finished material will be uploaded with the Standard prices (MR21) on 4th December 2014. The material masters for raw and packing material will be uploaded with the moving average prices on 4th December 2014. The cost center Plan (KP06) Planned Activity (KP26) will be uploaded, allocation cycles (Assessment/Distribution) and activity price calculation (KSPI) will be done by 6th December 2014. Product cost calculation (CK40N) will be conducted from 7th Dec 2014 to 20th December 2014 to get the correct cost calculation from system. All other masters will be uploaded into the production system from 5th December 2014 and completed by 18th December 2014.
2) Cut off activities The company closes it sales on 26th December 2014. The company stops all its stock movement on 26th December 2014 up to 1st January 2014. All open purchase orders will be uploaded on 28th December 2014. The provision for stock received and invoice not received will be accounted in a separate GL code (different than the GR/IR). The stocks will be finalized by 29th December 2014. The company closes it old (legacy) system on 30th December 2014. The stocks will be uploaded on 31st December 2014 and 1st Jan 2015.
The standard cost estimate will be marked and released on 2nd January 2015.
The system is available for data entry and operation to the users from 2nd January 2015. Accounts Receivable open items will be uploaded from 1st January 2015 to 3rd January 2015. Thus Accounts Receivable is available from 4th January 2096 to account for customer incoming payment. Accounts Payable open items will be uploaded from 3rd January 2015 to 4th January 2015. Accounts Payable is available for payment from 5th January 2015. Fixed assets are uploaded on 5th January 2015. The Remaining GL Balances are uploaded on 7th January 2015. Thus entire data take over activities are to be completed by 7th January 2015.
1. Overview-Cutover Activities . Create or identify a separate document type for initial balances upload and maintain a different number range for the same and use the same document type for uploads. This will be use full for identifying the transactions posted before go live and after go live. Create two new GL accounts in Production for the Purpose of initial balances upload. One for Initial Stock Upload and another for the GL balance. Open only the current period of posting or the legacy date period in which you are posting in OB52 and close all other periods. Similarly use OKP1 for CO period lock. Do not open MM period after the legacy period at the time if initial stocks upload and get the same is opened by the core team member responsible for opening after completion of your upload activities. This will prevent erroneous posting to the next period due to the wrong dates given in the upload file. Create a New Filed Status group with most of organizations elements selected as optional. Make sure that if profit center is mandatory it needs to be mandatory only and do not change it to optional, as the LSMW screen doesn’t popup the profit center filed if the same is optional. FI G L master data will be uploaded via LSMW. (Recording for LSMW FS00 & also keep the changing master data recording handy) FI Vendor Master Data will be uploaded without purchasing organization Views (Recording for LSMW FK01 & also keep the changing master data recording handy. Keep in mind your filed status group settings configured for your client). If you are having EWT codes then your recording cannot take more than 6 line items. If you need to have more than 6 line items in tax type/tax code areas look for other alternatives. If vendors are relevant to EWT then advised to create a separate group making the tax fields mandatory. At the time of uploading the vendor master data into production make sure you change the FSG to optional on tax items and do not give any tax codes. FI Customer Master Data will be uploaded without sales Views Recording for LSMW FD01 & also keep the changing the master data recording handy. Keep in mind your filed status group settings configured for your client. All legacy asset master Data (AS91) along with the values will be uploaded with Cost Center/Location (Again keep in mind the master data screen filed settings before recording and your client’s requirement). Write different recordings for SLM keys and WDV keys. For legacy asset data transfer record transaction types for the assets acquired during the financial year in a separate recording.
For the assets acquired before the start of the fiscal year you need to ask the client accumulated depreciation as on start of the fiscal year and depreciation posted during the period or after the start of the fiscal year (Again depends on the configuration on how you are posting the depreciation to GL) All the G L balances of account type “S” and are non-open item managed need to be uploaded G L wise-Profit center wise Via LSMW as on the cutover date. Make sure that no two profit centers were uploaded in the same document because, if you have activated document splitting the number of line items generated at the time of saving the document due to split may exceed 950 line items and the system will throw you out of uploading. Even if it is not the case advised to upload data related to a profit center per document. All the Customer open items need to be uploaded Profit center wise. Make sure that no two profit centers were uploaded in the same document because, if you have activated document splitting the number of line items generated at the time of saving the document may exceed 950 line items and the system will throw you out of uploading. All the Vendor open items need to be uploaded Profit center wise. Make sure that no two profit centers were uploaded in the same document because, if you have activated document splitting the number of line items generated at the time of saving the document may exceed 950 line items and the system will throw you out of uploading. You need to use direct input program in LSMW for transaction data upload and select financial documents as object. All the Asset data need to be identified depreciation area wise with Asset class and Depreciation keys. For tax balance sheet Asset class wise Gross block, accumulated depreciation and net block need to be uploaded (AS81) (group asset). For Customers/Vendors relevant to Sales/Purchasing views take care to give proper recon accounts keeping in view of the alternate recon accounts if any applicable. Make sure you only extend customers/vendors to other company codes. Otherwise creation of vendors/customers will create a duplicate data. Educate the core user to tally the data before giving the same to you via Excel. Make sure that the Basis guy is available to you at the time of upload to handle transports, which were created during the upload for the purpose of upload or for any error in configuration.
2. Time Lines Depending on the amount of data, take sufficient time for upload activities. In case the asset masters/data is not ready still you can go ahead with GL balance upload and assets can be done at a later date. Go-live date will be (Give the Go live date). All transactions starting after go live will be processed in SAP system only. After Go live, no transaction should be performed in legacy system
3. Pre-requisite or Assumptions
Scenario and Integration Testing are completed.
Cleansed and Validated Master Data made available.
Authorization Matrix completed.
Processes have been freezed.
End user training and documentation is completed
G L Master LSMW Regular Recording FS00 FI Vendor Master Data LSMW Regular Recording FK01 FI Customer Master Data LSMW Regular Recording FD01 Asset master Data LSMW Regular Recording AS91 together with values AS81 Group Asset Master Data LSMW Regular Recording AS21 Cost Elements LSMW Regular Recording KA01 You can also create by batch input session VIA SPRO Cost Centers LSMW Regular Recording KS01 Profit centers LSMW Regular Recording KE51 Internal Orders LSMW Regular Recording KO01 Characteristics Manual Creation
5. TRANSACTION DATA Gl Balances of account type S which are non-open Item based LSMW/Direct Input 0000 RFBIBL00 D- Direct Input Vendor Balances LSMW/Direct Input 0000 RFBIBL00 D- Direct Input Customer Balances LSMW/Direct Input 0000 RFBIBL00 D- Direct Input Asset Balances LSMW Regular Recording AS91 AS81 AUC Balances LSMW/Direct Input 0000 RFBIBL00 D- Direct Input
6. Prerequisites to Load Master Data
Client Setup and Number range maintenance.
At least test once the LSMW recordings before moving into production about the reliability and for errors.
Load handful of assets in a Quality or in Pre-production system depending on your landscape to ensure that the system is calculating the depreciation, as expected and planned depreciations to be posted are accurate.
7. Sequence of Data Conversion 1. G L master Data 2. Vendor Master Data 3. Customer Master Data 4. Group Asset Data 5. GL balances without open Item managed 6. GL balances with open Item managed 7. Customer Balances 8. Vendor Balances 9. Customer Balances with Special GLs 10. Vendor Balances with Special GLs 11. Asset Masters with Values for the assets existing at the start of the fiscal year 12. Asset Masters with Values for the assets acquired during the fiscal year with transaction type. 13. It is advised to load asset data along with values instead of loading master first and giving values next.
8. Procedure for Cut Over 1. Check again if the document splitting is active and in case new GL accounts are added by the users, the assignments for document splitting characteristics is made or not. If not add the new GL and transport before you start. 2. Delete cost elements if created already in production, as the legacy data is not relevant for cost centers. Even if the client insists, you should convince the client saying where he wants to settle the cost center balances after go live? Exception to the above is AUC. 3. Assign the field status group to all the G L accounts created for the purpose of upload of initial balances, via LSMW or T-code MASS. You need to revert the settings of master data for accounts with Auto posting, Accounts with relevance to tax category and post without tax allowed before upload. 4. Remove Withholding tax code assignments to vendors. This is necessary because if your upload items contain any balances and the tax codes are assigned the system will calculate EWT and tries to post the same, which is not the case.
5. For Non-open item managed accounts provide with the totals as on the cutover date profit center wise. 6. For open item managed accounts provide with the totals as on the cutover date profit center wise. 7. For reconciliation accounts, line items of customer/vendor should be profit center wise. 8. For assets reset the reconciliation accounts load assets, compare data and reset recon accounts. 9. Assets acquired before 01.04.2006 need to enter through AS91 and Assets acquired after 01.04.2006 and before 31.01.2007 need to be entered through AS91 via Transaction type 100 assuming your clients financial year is Apr-Mar and the cutover date is 31.01.2007. 10. Make sure you have created group assets via AS21 if you are using Group assets in tax depreciation area. 11. Again you need to keep in mind the configurations you made for the client with respect to account types, D & K. For Example Payment terms 12. If the client’s need is to have the old balances also on age wise for Payables & Receivables, you need to play with, document, Posting, and base line dates to achieve this via upload. 13. Make sure that the discount base column is given value for a smooth upload for Receivables and Payables. 14. You need to use separate Direct Input recordings with object 100 and method 0000 (RFBIBL00) for account types S, D&K. This is because if you have large amounts of data, then if you club all the account types into one recording, then the system will prompt you to press enter every time a GL account is encountered as the filed values payment terms is not relevant for account type S. In such case the system will take great amount of time for uploading. 15. Before start of uploading asset line items at GL level make sure the client is open for change and reset the recon accounts for assets. Otherwise the system will throw an error, as the recon accounts are not directly posted to. 16. After uploading the same again reset the recon accounts. Use in both the cases T-code OAMK to reset the recon accounts. 17. For loading AUC values VIA Internal orders, after the above uploads are through, create cost elements, create Internal orders, upload values through the internal order to AUC expenses account and once upload is through, settle the orders to the AUC asset via KO88 before the go-live
9. Procedure After Cut Over data Upload 1. Reset the filed status groups; post auto settings, Tax settings to the original file given by the core user via MASS or LSMW. 2. Once the initial balance accounts balances are zero, take the signoff and block the accounts for posting in future. 3. Get the next relevant posting periods opened in OB52, OKP1 & MMPV by the core team member and close all the legacy periods. 4. Reset the Vendor FSG settings and other relevant settings changed for the initial balances upload.
5. Settle the AUC balances and make the Internal order values to zero. Make sure you use periodic settlement and not FULL. 6. Assign vendors with the relevant tax codes and post process the open items as per the warning given by system for making the tax lines consistent. 7. Revert all FSG changes for CUSTOMER/VENDOR/GL to the requirement. 8. Delete the number range assignments to the document type created for initial balance upload and transport so that to minimize the core user transactions in the legacy period. 9. If you are using the parallel ledgers as of ERP 2004 or ERP 2005 make sure you load the balances of non-leading ledgers first. Keep in mind that the non-leading ledgers are not relevant for account types. 10. Any new master records created between Cutover and Go live dates are to be tracked and checked for document splitting assignments. 11. If you are in Version 4.7EE or ERP 2004 without New GL getting activated, keep in mind you need to run F.5D, F.5E, 1KEK. 12. After all of the above precautions still you find that there is a mistake whether small or big don’t be panic, go back to your domain experience, think what should have been went wrong, Reverse the document or just pass a rectification entry. 13. It is the same case with stock uploads. After your MM counterpart loading the stocks and you verify and stocks are not getting matched, the reason could only be the Qty mismatch or the system has taken the MAP defined in the material master.
Please keep in mind that this document is for new implementations ON New GL only and not for upgrades. The sequence of steps may change slightly depending on your customization and modules implemented and hence this can be taken as a guide line only and not as a comprehensive document.
Data Takeover Data Takeover is an important Topic to be concentrated in Implementation Procedure. If any Company which is using some other Software for accounting purpose is switching over to SAP, Closing balances in previous Software will be taken as Opening Balances in SAP For this there should be Cutoff Date in Old Software. During the Process of Data Takeover, it is advised to practice not to post any transactions in Old Software until the Data Takeover is completed, otherwise confusion will arise or balances may not match. IN SAP, Data Takeover is of 2 Processes 1. Masters Uploading 2. Balances Uploading
Masters Uploading: GL Masters: FS00 Vendor Masters: XK01 Customer Masters: XD01 Asset Masters: AS01 Material Masters: MM01 In Live Environment, if we have Number of Masters it is Difficult to Create in SAP
One by One. So we first create all Fields in Excel. Flow of Masters Uploading will be like Step 1: Create Masters Data in Excel File Step 2: Convert Excel File to Text Format Step 3: Upload to SAP We have 3 Methods for Uploading to SAP Legacy System Management Communication Workbench (LSMW) Batch Data (BDC) (To do this ABAP Programming required) Computer Aided Testing Tools (CATT) (This is used only for Testing Purpose But not for Data Uploading) As LSMW is the Job of Functional Consultant, we are covering this topic for learning Purpose
Balances Uploading: If the Company is a Going Concern and is implementing SAP on 01.01.2014 --- Upload only Balance Sheet Items Balances on 01.05.2014 --- Upload Balance Sheet Items Balances and P& L A/c Balances as Uploading is in the Middle of the Fiscal Year SAP Suggest only to upload the Balances but not the Transactional Data except for Vendors and Customers where we need Open Item Transactions
NOTE: Reasons given by SAP for suggesting the Uploading of Balances not Transactions for some Masters: A. In Normal Accounting Vendors, Customers and Asset Balances are part of GL A/c's where as in SAP we have them as SUB Ledgers B. In Normal Accounting for Vendors and Customers, we keep Payables/ Receivables and Advances in One Account. But in SAP Payables/ Receivables will be shown under Normal Items and Advances will be shown under Special GL Items C. In Normal Accounting we show Account wise Gross Block and Accumulated Dep. Ex: P& M Wise, Where as in SAP we maintain each Sub Asset Wise Gross Block and Accumulated Depreciation. D. In Normal Accounting Depreciation is a Provisional Figure, where as in SAP Depreciation is Actually Calculated figure. E. In Normal Accounting Consumption is a Balance Sheet Figure. Where as in SAP Actual Consumption entries will be passed. Ex: Raw Material Consumption in Normal Accounting Opening Stock xxxxx Add: Purchases xxxxx Less: Closing Stock xxxxx RM Consumption xxxxx F. In Normal Accounting for Closing Stock only One Entry will be passed Closing Stock Dr. (B/S Account) To Closing Stock Cr (P& L Account)
IN SAP Closing Stock will be Maintained Each Material wise-Quantity, Rate and Closing Amount G. In Normal Accounting Production Entries and Delivery Entries will not be passed. The Difference between Production and Delivery is Increase/Decrease in Stock.in SAP Production Entries and Delivery Entries will be passed at Product Cost. Procedure for Balances Uploading: 1. Prepare a Statement Showing Each Vendors – Bill wise Payables and Advances which should match with the Trial Balance 2. Prepare a Statement Showing Each Customers – Bill wise Receivables &Advances which should match with the Trial Balance 3. Prepare a Statement Showing each Sub Asset wise, Purchase Cost, and Accumulated Depreciation and the Total Should match with Trial Balance Fixed Assets Account and Accumulated Depreciation Account. 4. Prepare a Statement showing each material wise Quantity, Rate and Amount, which should match with the Trial Balances Inventory Account. 5. Create 5 Dummy GL Accounts. It can be under any Account Group. Generally we create under Liabilities. A. GL Clearing A/c B) Vendor Clearing A/c C) Customer Clearing A/c D) Asset Clearing A/c E) Stock Taking A/c 6. If Balances Uploaded is Correct, Balances of 5 Dummy Accounts will become ZERO. 7. If in Any Dummy Account Balance is not become ZERO, it means there is some mistake in uploading that Balances. Balances of the Masters will Upload but with Mistakes. 8. We have to check manually the Balances to identify the Mistake and make the Rectification Entry. 9. We should not allow users to enter day to day transactions until the Balances are uploaded.
Example of Simple Normal Trial Balance Particulars Equity Share Capital
Debit
Party A Acc. Dep. P& M No 40
Sales
Credit 500000 100000 200000 300000
Fixed Assets P& M No 40 500000 Inv.Raw Material 100000
Party X SBI Current Acct R M Consumption A/C Total
250000 50000 200000 1100000 1100000
A/c Type G/L A/C SUB LEDGER SUB LEDGER G/L A/C SUB LEDGER SUB LEDGER SUB LEDGER G/L A/C SUB LEDGER
Step1. Create 5 Dummy Accounts by using TC=FS00 Step2. Credit GL Balances Uploading in F-02 Fast Data Entry GL Clearing A/c Dr 1100000 To Equity Share Capital Account 500000 To Vendor Clearing Account 100000 To Asset Clearing Account 200000 To Sales Account 300000 (All Credit Balances of Trial Balances Transferred to GL Clearing Account) Step3. Debit Balances Uploading in F-02 Fast Data Entry Asset Clearing Account Dr 500000 Stock Taking A/c Dr 100000 Customer Clearing A/c Dr 250000 SBI Current Account Dr 50000 RM Consumption A/c Dr 200000 To GL Clearing Account 1100000 (All Debit Balances of Trial Balances Transferred to GL Clearing Account) Why the above 2 Entries are required? As we discussed in Point No 6 of Procedure above, First We will Transfer the Total Amount to the Particular Clearing Account in the 5 Dummy Accounts Created.
When we transfer the Individual Balances of Customers/ Vendors/Assets/Materials line item wise we will make programming to transfer the total to the particular Clearing Account When Debit amount and Credit Amount equals automatically that Particular Clearing Account (Dummy) will become ZERO. If any Clearing Account shows balance, it means there is some mistake in uploading the balances in that particular category. We can easily check the balances manually to sort out the difference and make the adjustment Entry. Point to be noted is that, even if the Balances total does not match with the amount existing in that Clearing Account also, at the time of uploading line item wise, data will automatically upload. We cannot revert it back we have to pass the Adjustment Entry only for rectifying the Mistakes Step4A. Prepare a Statement showing each Vendor Bill Wise Open Items and Advances Ex: Party A. account as in Trial Balance Bill No 1 50000 Bill No 2 40000 Bill No 3 30000 Advance 20000 Step4B. Vendor Transactions Uploading F-43 Vendor Clearing Account Party A Spl Gl A/c To Party A Bill No 1 To Party A Bill No 2 To Party A Bill No 3
Dr. 105000 (Balancing Figure) Dr 20000 Advance to Vendors 50000 Sundry Cr 40000 Sundry Cr 35000 Sundry Cr
Step 4C. Rectification Entry: As we discussed earlier, at the time of uploading the Line Items, if any mistake is there, data will upload as we mentioned. In this Example, we can see as per Trial Balance Party A balance is Rs. 100,000/-. But as per the Data Uploading Bill wise Total Uploaded is Rs. 105,000/-. So Vendor Clearing Account will not be Zero showing 5000 Debit Balance Which should be rectified with Rectification Entry as Data already uploaded. Party A. A/c Bill No 3 Dr. 5000 To Vendor Clearing Account 5000 Note:
Like the above we have to Transfer the Item wise Balances of all the Vendors. In Live, as the Data Base would be more, it is difficult to upload the Data through TC=F-43. Like what we had done in GL Masters uploading, we will prepare an Excel Sheet and Upload the data from there in One Lot. For this, ABAP Programmer is required.
Step5A. Prepare a Statement Showing Each Customer wise, bill wise open items and Advances
Party X A/c: Bill No 1 Bill No 2 Advance
170000} Closing Balance is Rs. 250,000 DR which 110000} is equal to Trial Balance 30000}
Step5B. Customer Transactions Uploading F-22 Party X a/c (Bill No 1) 170000 Party X a/c (Bill No 2) 110000 To Party X Spl GL a/c 30000 To Customer Clearing A/c 250000 The Debit Balance in Customer Clearing A/c what we transferred through the Entry in Step 3 is Rs. 250,000 which was equal to the Credit Entry in the above Entry. So in Customer Clearing Account Balance would be ZERO ( Dr. 250000 - Cr 250000) Step6A.To Enter the Fixed Assets Balances, we have to Enter Plant & Machinery GL A/c and Acc. Dep on P & M GL A/c with the below Entry Post Key
40 Plant & Machinery A/c 500000 50 To Acc. Dep on P & M A/c 200000 50 Asset Clearing Accounts 300000
For Uploading the Fixed Assets Item Wise, first we have to remove the Reconciliations Accounts for Assets.( See Step 6C for further Details) USE TC= OAMK { OR} SPRO---->Financial Accounting--->Preparing for Production Start up----> Set or Reset Reconciliations Account Comp. Code: PSL Double Click on Change Control of Reconciliation A/c Folder From Menu----> Edit---->Selections---->Select All Select Deselect Reconciliation Indicator for All Account
ENTER to save in your request. Step6B. Creation of Asset Master TC=AS01 → ENTER Asset Class: PSL2000 Comp. Code: PSL →ENTER Description: Machine No 40 Capitalized on: 20.07.09 Select Time Dependent Tab Business Area: PSLH Select Depreciation Area tab Dep.Key Useful Period Ord. Dep St. Dt Life PSL1 10Yrs 4 Months 01.04.2009 → SAVE It Shows Asset "200003" Sub No "0" Created Step6C.To Upload Acquisition Value and Acc. Depreciation Values This will not update the GL A/c as we have earlier removed the Reconciliation A/c for Account Type Assets. It will update only the Sub Ledger of Asset. PATH: SPRO---->Financial Accounting---->Asset Accounting---->Asset Data Transfer ----->Manual Online Transfer---->Create/Change/Display Legacy Asset Double Click on Change Legacy Asset (TC==AS92) Asset No: 200003 Sub Asset No: 0 Comp. Code: PSL Select Takeover Values Button Ignore the Warning Message →ENTER Cum. Acquisition Value: 500000 Accum. Ordinary Dep: 200000 →SAVE Step6D. To Make Fixed Assets P& M A/c and Acc. Dep P& M GL A/c as Reconciliation A/c After Uploading the Balances for Assets, again change the Assets as Reconciliation A/c USE TC= OAMK → ENTER Comp. Code: PSL Double Click on Change/Control of Reconciliation of A/c Folder From Menu---->Selections---->Select All (F7) Select Set Reconciliation Indicator for Accounts Button SAVE → ENTER to save in your request.
Data take over regarding the Stock is the Job of MM Consultant. But we are briefly explaining the Procedure Step7A. Prepare a Statement showing the Each Material wise, Quantity, Rate and Amount. The Total should match with the Trial Balance Amount.
Ex. Statement of Stock Material No Qty RM 1 RM 2 RM 3
Rate
200 50 3000 20 1000 30 Total which is equal to TB Figure
Amount 10000 60000 30000 100000
Step7B. Create Material Masters and In Accounting View Enter Moving Avg Price (TC=MM01) Item Mvg. Price RM 1 50 RM 2 20 RM 3 30 Step7C. Use TC=MBIC Movement Type =561 Plant: Hyd Storage Location: RM Storage Location Material No Qty RM 1 RM 2 RM 3 → SAVE
200 3000 1000
Once we saved the Data, Accounting Entries will be Generated Automatically. Entries will be like below Inventory RM Local Dr 100000 To Stock Taking A/c 100000 (Value = Qty x Material Master Price)
On the cut over date, pass the following entries for the WIP value: WIP B/S a/c dr(Balance sheet account) To Initial GL Balance a/c cr Initial GL Balance a/c dr To WIP P&L a/c dr(P&L account) 2. After the go live, when you want to convert the WIP into Stock, do the following transaction: MB1C (521) (Goods receipt without production order) Stock A/c Dr Change in stock A/c Cr 3. Now on the same date, pass a JV to reduce the WIP: WIP P&L A/c Dr To WIP B/S A/c Cr Before doing this exercise, 1st prepare an excel sheet, containing materials having quantity and the WIP value. Then it will be easy for you reduce the WIP value. Manually post the WIP amount to the GL accounts. The accounts are assigned in OKG8. Create the production orders till the WIP step and continue with production after go live.
Cut over activities to be followed (for PP - Discrete Manufacturing).
Production Planning / Master Data: For Production planning, only master data shall be migrated to SAP. In the 1st Stage, there is no master data. Following is the master data elements relevant for PP: - Bill of materials - Routing. - Work Centers Transaction data: As of the cutoff date, ideally there should not be any work in process. All the open production orders should be closed and semi-finished goods should be dismantled and should be added to Raw materials. This strategy should be followed for all production orders where lead time to complete the production order is not large. Since, the production orders are for longer duration and it is not possible to dismantle the product and add it to inventory, following can be the strategy for migrating the data to SAP Create a material master for the work in process and set the standard price as the cost incurred for that product (i.e. Work in process) Create a bill of material (which will be used only for this production order) including this material and other materials still to be consumed. Create Routing for rest of the production process. Bring the work in process material into inventory as of the cutoff date. Create the production orders in SAP for the Work in process and issue materials to production order. Complete the production process after the cutoff date of the project. Manually post the WIP amount to the GL accounts. The accounts are assigned in OKG8. Create the production orders till the WIP step and continue with production after go live.
SAP Cutover Activities: Master Data Uploading Strategies Master Data Uploading Strategies depends upon when we are going live. As per that, you have to give the information to Core Team. --> If you are going live at the middle of the year then you have to upload the all P&L Account items and B/S Items. --> If you are going live at the financial year start, you have to upload only the B/S Items. Activities for Go live: 1. G/L Master Upload through BDC or LSMW (Upload using the TC: FS00 and extend one company code to another company code using the TC: FS01) 2. Vendor Master Upload thru BDC or LSMW (Will be taken care by MM Consultant, Reconciliation account and payment terms at company code level will be provided by FI) 3. Customer Master Upload thru BDC or LSMW (Will be taken care by SD Consultant, Reconciliation account and payment terms at company code level will be provided by FI) 4. Asset Master Upload (TC: AS90) 5. Cost Element Master Upload (TC: KSH1) 6. Cost Center Master Upload (TC: KS01) 7. Profit Center Master Upload (TC: KE53) 8. G/L Balances (TC: FB01) 9. Vendor Balances (TC: F-43) 10. Customer Balances (TC: F-22) 11. Customer Advances (TC: F-29) 12. Vendor Advances (TC: F-48)
In case WHT is activated for the specified company code the before uploading Vendor Balances you have to take care of WHT(TDS) Information.
