2. Lessons from the Field for
Deploying a Successful
Global SAP® Controlling
Rollout
Tanya Duncan, Deloitte Consulting LLC
John Jordan, ERP Corp © 2012 ERP Corp. All rights reserved.

3. Introduction
• This presentation discusses real-world examples and tips for
rolling out SAP Controlling (CO) functionality across multiple
companies and countries
• Key points covered in this session:
• Local and country-specific requirements and configuration
• SAP features that streamline a global CO rollout
• Key training areas and tips
• Global communication best practices
• You'll leave this session with tools and techniques to streamline
and simplify your global rollout of CO functionality
3

4. Topics
• Tanya’s Background
• Assumptions
• SAP global methodology
• Global and local templates
• Key training areas
• Global communication best practices
4

5. Tanya’s Background
• FICO Consultant with Deloitte since June 2011
• Tanya resides in San Diego
• CO lead for a global consumer and industrial products rollout
• Mexico, Argentina, Brazil, US, Canada, Australia, UK
• Global rollout product costing lead at Owens Corning
• CO team member of European rollout across three countries:
• France, Italy, Spain
• Subsequently supported global month and year end closing
• Led US product costing upgrade
5

6. Topics
• Tanya’s Background
• Assumptions
• SAP global methodology
• Global and local templates
• Key training areas
• Global communication best practices
6

7. Assumptions
• Focus on global Controlling rollouts
• Global projects involve multiple countries
• Users and local team members are not located in the US
• There are language as well as cultural barriers
• There are multiple company codes
• Rollout may be either an initial implementation or an upgrade
7

8. Topics
• Tanya’s Background
• Assumptions
• SAP global methodology
• Global and local templates
• Key training areas
• Global communication best practices
8

9. SAP Methodology
• Accelerated SAP (ASAP)
• Standard implementation approach for SAP ERP
• Consists of five major phases:
• Project Preparation Define goals and objectives
• Project Blueprint Includes Fit Gap Analysis (FGA)
• Realization Configure blueprint requirements
• Final Preparation Testing, training and cutover
• Go Live & Support Move environment to live system
• Supports local implementation strategies
• Global rollouts require co-ordination across countries
• Co-ordination should occur before local ASAP activities
9

10. SAP Global Methodology
• Global ASAP
• Supports multiple implementation strategies
• Enables implementations according to global template
• Global template contains rules defined centrally
• Provides solutions and input for regional and local projects
• Methodology is supported by SAP Solution Manager
• We’ll discuss in detail later in this presentation
10

11. Global ASAP Phases
Global Program Global Business Global
Set Up Blueprint Realization
Global Business Configure Initial
Define Global
Process Settings and Org
Strategy
Definition Structure
Develop Analyze Establish
Organizational Business Organizational
Structure Entities Structure
11

12. Global Business Blueprint
• Fit Gap Analysis
• Identify matches (fits) and mismatches (gaps) in local
processes and functions during blueprinting
• Adapt local processes to industry best practices
• Assess legal requirements
• Identify localizations not covered in global template
• Use simulations, questionnaires, and/or brainstorming
• Understand reasons for gaps in local processes
• Determine if local process gaps should change to global
standards
12

13. Solution Manager- Roadmap
• Centralizes the management of multiple SAP systems
• Many features including Roadmap and Project Administration
• Contain standard SAP implementation methodology & provide
links to accelerators & tools which perform project tasks
13

14. Solution Manager- Project Administration
• In Project Administration you define templates containing
scenarios, blueprint documents, & configuration at head office
• Decide which parts of template are relevant to subsidiaries
• Can subsidiaries change the template in their rollout projects?
• You transport the centrally-defined template to the subsidiaries
• They use the template in an implementation project to
implement solutions in accordance with your guidelines
14

15. Activate Global Rollout in Solution Manager
• Create template project in Project Administration
• Select Global Rollout Functionality is Active indicator
• Select Templates in Scope tab
15

16. Assign Global Attributes in Solution Manager
• Assign Global Attributes in Structure tab in Business Blueprint
• Select Pass On Global Attribute in Structure tab
• Choose empty row to prevent inheritance of global attribute
• Perform blueprint and configuration phase activities
• Send objects in headquarters to component systems and
import template
16

17. Topics
• Tanya’s Background
• Assumptions
• SAP global methodology
• Global and local templates
• Key training areas
• Global communication best practices
17

18. Global Template – Initial Preparation
• Are multiple controlling areas needed?
• One CO area simplifies reporting across countries
• One CO area requires the same fiscal year variant and chart of
accounts (COA) across all companies
• Work required for one fiscal year variant and COA can be significant
• Will multiple plants exist in the same company code?
• One plant per company code facilitates intercompany sales
• Simplifies elimination of intercompany profit in consolidations
• What are the global definitions for:
• Price control: Moving average or standard price
• Valuation class: Determine GL accounts / movement types
• Unit of measure: Standardize UOM’s
18

19. Local Template- Requirements
• How do local processes & regulations vary from global template
• What should be standardized globally, what can be
customized
• For example: A global company may roll out standard pricing for all
materials irrespective of the individual countries present price control
• Local customizations may require additional configuration
and testing
• For example: Mexico’s DIOT and IETU custom reports
• Review local vendor agreements and shipping document
requirements
19

20. Local Template- Statutory Requirements
• Determine local statutory reporting requirements, for example:
• Intrastat and extrastat reports in EU countries
• Monthly declaration that provides EU authorities with statistics on
foreign trade
• Italy requires numerous, detailed material movement reports
• Spain requires a local COA
• Local language may be required on local statutory
documents
20

21. Local Template- FI Currencies
• Determine local and group currencies
• It is mandatory to define at least one FI local currency (OB22)
• Legal reporting requirements determines the local currency
• Head office location usually determines the group currency
• Inflation and legal requirements determine hard currency
21

22. Local Template- FI Currencies (cont.)
• Additional local currencies require configuration
• Every FI document includes postings in the additional local
currencies once configured
• Currencies cannot be changed after initial postings
• Need to change report layouts to view additional currencies
• Configuration is required to add additional currencies to CO
reports
• Consider future company acquisitions and mergers
• Even if your company only presently has one currency, add
additional currencies if you may expand to other countries
22

23. Local Template- CO Currencies
• Controlling area currency example options (Transaction 8KEM):
• Adopt the company code currency Currency Type 10
• Independent controlling area currency Currency Type 20
• Adopt group currency Currency Type 30
23

24. Local Template- Roles
• Who will perform which process roles at each site after go live?
• Separation of duties
• Centralized versus localized responsibilities
• Benefits may be obtained by consolidating some duties
• Who will serve as local site leaders?
• Some people may be required to relocate
• Language, leadership skills and desires need to be
considered
24

25. Local Template- Training
• Pre go-live
• Who will lead the training initiatives?
• Personnel from head office, local, or some combination
• What training software will be used?
• What is the best way to choose training software
• Who will be the power users?
• SAP skills/experience, leadership skills, language skills
• Will training be on-site or online?
• A combination of on-site and online training can be effective
25

26. Local Template- Training (cont.)
• Post go-live and ongoing
• Training and support are required following implementation
• Staff turnover, mergers and acquisitions, utilize new modules
• Solution Manager provides a framework for managing
training and support
• The issues database can be used to highlight training needs
• Role-based business process procedures should be created
for transactions
• Users can use this documentation to train and support themselves
26

27. Local Template- Languages
• Determine what language(s) will be used in SAP
• You can login to SAP with different languages
• Master data descriptions to consider:
• Cost Centers, Cost Elements, Profit Centers, Activity Types, etc.
• Consider maintaining master data descriptions in English as
well as local language so reports can be read by US head
office
• Will you require all users to communicate in English?
• Training materials may need to be translated to local
business languages
• Organize good local translators in advance of implementation
27

28. Topics
• Tanya’s Background
• Assumptions
• SAP global methodology
• Global and local templates
• Key training areas
• Global communication best practices
28

29. Training Tips for Global CO Rollouts
• Gauge the SAP experience of users
• Are users seeing SAP for the first time, or is this an upgrade?
• More training may required for users new to SAP
• Consider as-is costing processes
• How much of their CO processes will change?
• More process change will require more configuration, master
data, and training
• Create a CO change management roadmap
• Consider formal hierarchies as well as who has influence
• Begin training early and reinforce concepts during support
29

30. Training Tips for Global CO Rollouts
• Demonstrate changes in CO business processes visually
• CO processes can be complicated and difficult to understand
• Use diagrams on white boards, flow charts and equations
• Draw existing and standard SAP process flows in workshops
• Emphasize impact of changes to users
• Makes changes relevant to their daily job
• Their involvement at an early stage gives them some buy-in
• Remember that many non-Finance users need some CO training
• Master data owners, planners/schedulers and plant
maintenance, etc.
• In an integrated system everyone needs to know how others
do their job roles at least at a basic level
30

31. Global Structure
•Help users understand how their company fits into overall global structure
Controlling Area 100
Company Codes 1001 1002
Sales Organization 1001 1002 1003
Plants 0001 0002 0003 0004
Storage Locations 0001 0002 0001
31

32. CO Master Data
• Cost Center Hierarchy
• Explain structure/purpose of cost center hierarchy: KSH3
• Profit Center Hierarchy
• Explain structure/purpose of profit center hierarchy: KCHGN
• COA and Cost Elements
• Train editing COA and creation of primary cost elements
• Primary cost elements are created for each P&L GL account
• Manual or automatic creation of primary cost elements
• Train purpose and creation of secondary cost elements
• Used in cost center allocations, results analysis
• Use cost center and cost element groups for each plant or
company code
32

33. CO Material Master Fields
• Price control
• Explain local rules for standard or moving average price
• Unique valuation classes
• Highlight local GL accounts
• Describe local movement types for process variations
• Valuation level
• Split valuation may be required in certain companies
• Special procurement for costing
• Explain how this links to procurement location and MRP 2
• Base & alterative UOM’s
• Conversions can be used to local UOM’s
33

34. Annual Costing Process
• Cost Center Planning
• Train on cost center planning and entering activity rates
• Create variants with cost center or cost element groups
specific to plant/company code
• Plan Cost Center Allocations
• In addition to plant allocations, if cross-company code
allocations are in scope:
• Train on process for corporate allocations to plants
• Explain process for intercompany allocations
• Execute Product Costing
• If localized costing variants and cost component structure:
• Train users to create with reference in Costing Run
34

35. Month End & Year End Close
• Closing process overview
• Provide a Plant Controller closing checklist
• Highlight activities performed locally and centrally
• Explain dependencies and communication process to corporate
• Calendar of key dates during closing
• Open/Close period transactions
• Train users responsible for opening and closing the various
periods on timing and impact of transactions
• Cross-company code allocations
• Are corporate allocations to plants or intercompany
allocations in scope?
• Cost Center Reports
• Explain use of cost center groups in cost center reports to
35
see only local company codes or plant

36. Topics
• Tanya’s Background
• Assumptions
• SAP global methodology
• Global and local templates
• Key training areas
• Global communication best practices
36

37. High and Low Context Countries
• High-context countries (e.g. China, Japan, and Spain)
• Highly focused on maintaining relationships
• Communication is indirect and understated
• Attention is given to nonverbal behaviors
• One's identity is rooted in groups: family, culture, work
• Accuracy is valued
• Low-context countries (e.g. U.S., Great Britain, Canada)
• Shorter duration of communications: Task-centered
• Verbal messages are direct
• Communication allows exchange of information, ideas, &
opinions
• One's identity is rooted in oneself and accomplishments
37 • Speed is valued

38. Communication Tips- Remote
• Be explicit in communication
• Review action items at the end of calls and follow up calls
with an email summary and action list
• Confirm understanding by practicing active communication
• Listen intently and restate key points to resolve any differences
• Use local terminology instead of speaking ‘SAP-anese’
• Use screen sharing & video conferencing capabilities
• Supplement conference calls with video during training and
support
• Use translation tools when necessary.
• Re-translate unclear emails by translating to the foreign
language and translating again back to English
38

39. Communication Tips- Onsite
• Appreciate and accept cultural differences
• Understand typical work hours and holidays of local offices
• Learn the most effective way to reach everyone
• Honor cultural business norms when visiting on-site
• Respect the site’s local hierarchy
• Ask questions about processes in different ways and to
different people
• Confirm understanding of process by asking multiple touch
points
• Utilize team members or translators that can interpret
• Consider placing people that speak the native language in
site leader roles where they can be a liaison
39

40. Summary
• Global CO implementations can be complex, expensive & risky
• Understanding potential local requirement issues is key
• Define and agree on global deployment strategy and financial
definitions
• E.g. price control, COA, valuation class, UoM
• Extensive training is required for a successful global rollout
40

41. Resources
• Ciber; Whitepaper: Conquering the Challenge of Global SAP
Implementations: SAP Rollout Strategies and Best Practices;
2007
• http://www.ciber.com/downloads/whitepapers/CIBER_Global_
SAP.pdf
• SAP Solution Manager Library: Global Rollout with a Template
• http://help.sap.com/saphelp_sm40/helpdata/en/6a/bf1603d4f0
944c81366cef742 7bd12/frameset.htm
• Infosys, Prakesh Pol & Madhup Paturkar; Whitepaper: Methods
of Fit Gap Analysis in SAP ERP Projects; 2011
• http://www.infosys.com/SAP/thought-
leadership/Documents/methods-fit-gap- analysis.pdf
41

42. Five Key Ideas
• Establishing a global blueprint serves as a strong foundation
for local rollouts
• Identifying local and country-specific requirements early will
allow accurate expectations for the custom configuration and
RICEFW objects
• Several tools and methodologies such as Global ASAP, Solution
Manager and Fit Gap Analysis are recommended to streamline
global rollouts
• Training on global projects requires frequent reinforcement,
visual explanations, and consideration for the local chain of
command
• Recognizing and appreciating cultural differences in the work
place in a global SAP deployment will increase your success
42

43. Questions
• Now:
• Ask questions now for immediate answers
• Later:
• TanyaDuncan@Deloitte.com
Q&A
43

44. Disclaimer
SAP®, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver®, Duet®, PartnerEdge, and other SAP® products and
services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in
Germany and in several other countries all over the world. All other product and service names mentioned are the
trademarks of their respective companies. ERP Corp is neither owned nor controlled by SAP.