implement a new general ledger functionality

8/11/2019 Implement a New General Ledger Functionality

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Implement a new general ledger functionality

with one person and no consultants

October, 2010


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Organization

Challenges

Implementation Approach

Benefits

Lessons Learned

Agenda

Content

Edda Media SSM | 19.08.2014 | Slide 2 |


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Organization


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Mecomis a European content and consumer

business. The Group owns over 300 printed titles and

over 200 websites in its four divisions, with

substantial operations in the Netherlands, Denmark,

Norway and Poland generating readership of over 23

million per week and attracting 32 million unique

users per month.

Organization Mecom


Group highlights 2009


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Organization Edda Media


98 Editorial Publications 37 Newspaper titles

dailies, weeklies and free-sheets

55 Online newspapers and digital niche products

6 Local radio stations

+ 21 Mobile versions of online newspapers and niche products

3 print plants

5 local distribution networks

1,1 million weekly readers.

1 million unique weekly users on our internet solutions.

1450 full time employees (excluding distribution)

Edda Media revenues of 267,6 m in 2008

Edda Media had an EBITDA margin of 10,5%

Key facts about Edda Media

Edda Media geographical locations

Vision: Norway's bravest and most innovative media company


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Organization SSM (Shared Service Center for Edda Media): Primary and Support Services


10,8 FTE8,8 FTE 7,8 FTE

3 FTE

3 FTE

3 FTE

2 FTE

Total FTEs: 38,4


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OrganizationStrategic direction / Vision for the FSSC in Edda Media


Achieved

Partly Achieved

Not Achieved

Vision:

Be among themost efficient and

most effective

FSSC in Europe

Organisational

buy in,

motivation and

acceptance Best Practicein our

processes:

ApplicationManagement

New Service

Operating Model

UserFriendliness /

E-Learning

Integration:AP and AR

automation

IT - support

SAP Payroll

/ Self Service


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38 legal companies in 2010.1

2 95 reporting entities in HFM (corporate consolidation system) in 2010.

3 2200 users in SAP.

4 Around 70K incoming invoices in 2009. 47% Automatically booked.

5 Around 6K reminders from vendors in 2009.

6 Around 10K Traveling documents in 2009.

7 2K New vendors (2009). 5.2K Active Vendors (05.09-05.10).

8 300K Customers and 1.1 Million outgoing invoices.

9 54Kdunning letters sent to customers.

10 19 Million financial line items booked (from 2008.01 to 2010.04).

Organization 10 key figures in SSM (FSSC).



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Challenges



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Tnsbergs

Blad AS

Sandefjords

Blad AS

Gjengangeren

AS

Edda

Vestfold

Digital AS

Sandefjords

Blad

Gjengangeren

Tnsbergs

Blad

Edda

Vestfold

Digital

Consolidation

... To fewer company codeswith Profit Center groups

(as of 2008.01).

In 2007Edda Media wanted

to go from a constellation ofmany Company codes...

Edda

Vestfold AS

Challenges Consolidation / Merging



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Corporate demands

Reorganization

of all Financial

reporting

dimensions


Challenges Reorganization of all Financial reporting dimensions

Newspapers

Digital

Other MediaChannel

MagazinesNewspaper subscriptionbased Newspaper freesheets

Radio

Services

Other

TV

Administratio

n

Sales &

Marketing

Supply Chain

Editorial DistributionOtherPrinting

Marketing Sales

Functio

ns

FinanceHR

Legal

IT

Management

board

Editorial

managementDesktop

publishing Editorial

departments

General

News agency

ProcurementProduction

Other

Other

Office Costs

Advertising


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Challenges Complexity of System Interfaces


HFM

ALTINNAnnonse System

Adbase

10.13.10.245

10.13.10.249

Infosoft, Opplags-

System

10.13.8.3

Budlnn

IDOC

4 Stamdata kunder

Bi z Talk 2002/2004PRD:Omtbi z05: 10.13.10.157

PRD:Omtbi z06- 10.13.10.158

TST:Omtbi z07: 10.13.10.159

Jetform

(Annonsefaktura)

10.13.10.93

AccountMatch

Bank Avstemning

Prematch-

Innlesing av

innbetalinger

til SAP

Scanner/ SAP

Content Server

10.13.10.73

BANK

Inkasso-

Sergel

Bud_Ansatt stamdata

Print

PRD: 10.13.10.92/00

(nosapprd001)

TST: 10.13.10.176/00

(nosaptst001)

UTV: 10.13.10.177/00

(nosapdev001)

Remitering

Solution Manager 4.0

10.13.10.45/SMP/00(ny

pr.jan08)

10.13.10.47/SMP/01 (gml)

N3Sport og

Tinde.no

CRM

Edda TrykkGule sider

Termin

rapport

BPC


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Challenges Edda Media: many ongoing projects!


Projects 02 04 09 10 12 01 05 09

Technical Upgrade 4.6b -> ERP

Remodel Reporting Dimensions

New GL Implementation +Merger

Rollout Old G/L to Edda Digital

BPC (budgeting and reporting)

Payroll + Time Administration

Purchasing (MM) + Project

System (PS)

LiveNewGL

2007 2008

LiveERP


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Implementation Approach Project New General Ledger: What is under the surface?


Change Management

Impact on interfaces

Complexity

Planning

Migration

New General Ledgerconfiguration

New General

Ledger

Project

Impact on BW/other

SAP modules


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Implementation Approach Migration / No migration approachs


Upgrade Project

R/3 -> ERP

Traditional SAP Approach

Blueprint new

G/L

Customizing &implementing

new G/L

Migration to

new G/L

New G/L Implementation Project

Upgrade Project

R/3 -> ERP

Edda Media Approach

New G/L Implementation Project

Drawbacks: Date of migration is at the beginning of a fiscal year. Year end closing of old fiscal year must be completed

prior to activation of New GL.

Complexity of data mapping/migration.

Drawbacks: Cutover activities.

Historical data in another client. (if BW is not in place)

Copy Productionclient withoutdata to a new

client landscape

Blueprintnew G/L

Customizing &implementing

new G/L

Cutoveractivities


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Implementation Approach Classic SAP : With Migration (not chosen)


Perform migration Transfer documents of phase 1 into new

tables: FAGLFLEXA / FAGLFLEXT

Run carry forward for the new fiscal year

into the new totals table FAGLFLEXT

Subsequent update of split info table for

single items of old fiscal years that were

open per migration date

Year-end-close of old

fiscal year

Customize New GL

Customize migration

Activate split check (only relevant

if document split shall be used)

Create blueprint for New GL

Planning of migration

Analyze business processes if

document split shall be used

Customize document split

Migration Principles

Date of migration is at the beginning of a fiscal year (current or future).

Year end closing of old fiscal year must be completed prior to activation of New GL.

Source ledger of migration can be determined by company code and account.

Old Fiscal Year

Date of migration Date of activation

Phase 0 Phase 1 Phase 2

New Fiscal Year

New G/LClassic G/LClassic G/L


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Implementation Approach Edda Media SAP Landscape without Migration (chosen)


Client copy without master/transactional data


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Implementation Approach New General Ledger/Merger Project organization


1. G/L Master Upload .

2. Vendor Master Upload .3. Customer Master Upload .

4. Asset Master Upload.

5. Cost Center Master Upload .

6. Profit Center Master Upload .

7. Segment Master Upload.

8. G/L Balances.

9. P&L Balances.10. Vendor Open Items Upload.

11. Customer Open Items Upload.12. Customer Products Upload.

This is an example text. Go

ahead an replace it with your

own text.

The Project Board

It consisted of the stakeholders and key users. The Project Board met regularly

to ensure that the project plans and activities were created and executed as

planned. A through gap analysis identified the gaps between how the business

operated and its needs against what the New General Ledger could do for the

purpose of determining how to get from one state to a new state. Actual gap

analysis was time consuming and it played a vital role in the blue print stage.

The Resources

Three types of resources were absolutely necessary -- end users, change

team and technicians. The Change Team identified the gaps between the

New General Ledger functionality and the business requirements. The

Technical Team prepared the systems environment for the implementation.

Plans

Detailed plans needed to be developed for testing and cutting over fromthe old client to the new. There was a conversion period for master data

and open items.

New GL project: key determining factors.

Plans

ResourcesProject

Board

Example of New

GL cutover

activites.

(client copy

approach)


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Option to expand standard accounting with

industry specific fields and customer-

defined fields and integration of

management dimensions in the G/L.

Parallel ledgers for each accounting

standard (IFRS / IAS) provide possibilities

for multiple valuations.

Balanced Books For Any Dimension

One version of the truth -> no FI/CO

reconciliation / Reduced fragmentation.

Multi-dimensional analysis: Legal

entity reporting, segment reporting,

management reporting.

Unified Financial And Management Accounting


Compliance with different

requirements such ascost of sales accounting.

Greater transparency for

auditing and acceleratedperiod-end closing.

NewGeneral

Ledger

Balance sheet for multiple dimensions at

lower levels than company codes withzero balance.

Corporate GovernanceFast Close

Benefits Functionality in the New General Ledger

Parallel AccountingExtensibility / Flexibility


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Benefits Keep and balance multiple ledgers faster and more accurately



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B fit i i l i i i d l


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Benefits Financial Dimension Reporting Model


Sales

AccountsProfit

CenterGroups

SegmentsFunctional

Areas

Cost Of Sales

Other Cost

Turnover

Gross Profit

EBITDA

B fit N lib i ECC E l f R P i N GL


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Benefits New report library in ECC: Example of Report Painter New GL report


B fit Edd M di j t hi t


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Merged Edda Media companies from around 70 to 35.

Profitability analysis per product achieved by using the segmentdimension.

Financial reporting process more transparent.

Document split functionality allows Edda Media to meet present and(most likely) future corporate requirements.

The parallel-valuation ledger presents the possibility of valuating

assets diferently for IFRS purposes.

The implementation of 2 additional online (at document entry)currencies: GBP and Euro.

The New GL reduced the complexity of interfacing to the external

planning and consolidating system (BPC / HFM ).

Benefits Edda Media project achievements


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Lessons Learned


Lessons Learned P j t Ti


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Lessons Learned Project Tips


Enable the New G/L in a sandboxclient and trysome scenarios there.

Consider a client copy instead of a New GL migration project. (specially relevant

consideration if you already have a BW solution.)

Zero balance configuration is only useful if you want to create a COMPLETE

balance sheet for a specific characteristic.

If document split functionality is to be used, start thinking about the classificationof document types and GL accounts.

If you have not gone through a euro implementation project, consider adding it as

an extra currency.

Plan sufficient time for the asset accounting configuration and cutover activities.

Do not implement a parallel ledger until you are sure it is needed

(performance). You can always add it later!

If you have CO-PA installed, have the segment field derived from Profit Center

(SAP recommendation...).

Remember that allocations, assesments and budgeting performed in the

New G/L are not synchronized with CO.

Use the New G/L library in report writer/painter and create cube reports.

Attend to course AC210(New General Ledger Accounting).

Summary


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Summary


What is the cost of migrating your historical

financial accounting data to the new structures?

This is the crucial project decision between having or

not having a New GL migration project (one or two

projects)

Should you consider a reorganization of your

financial reporting dimensions?

Might be the time to implement new dimensions like

functional area/segment, or reorganize the existing

ones.

Determine carefully what New GL functionality

is required.

Do you need a zero balance for a dimension?

Do you need parallel ledgers?


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Mellomfoil

Edda Media Vision:

Norways bravest and most innovative media company

implement a new general ledger functionality

Documents