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Sep 15 at 04:32 AM

SAP S/4 HANA Finance -Cost Centre and Profit Centre Hierarchy Consolidation and Replication

284 Views Last edit Sep 15 at 08:16 AM 4 rev

Issue:

Cost Centre and Profit Centre Hierarchy Consolidation and Replication

We are implementing MDG Finance for our company. We have MDG HANA 1909 as Hub and ECC, CFIN system as target System.

Plan is to consolidate all the Profit Centre and Cost Center from different target systems and maintain it in MDG Hub as single source of truth.

There are different Controlling areas maintained in each target system under which Cost Center and Profit Center hierarchies are distributed in AS-IS Process. Our plan is to merge and realign the Cost Center Hierarchy and Profit Centre Hierarchy in MDG Hub.

On Consolidating Cost Centre, Profit Center, Groups, Hierarchies from Different systems, we expect different level of data & hierarchy to be maintained in MDG comparing to Target Systems. New naming standards also to be applied in MDG Hub as To –be Process.

Due to different levels of data hierarchy maintained across systems, we suspect replication of Cost Center and Profit Center Hierarchy between these systems will be challenging.

We need expert opinion on this.

Scenarios:-

Our S/4 systems (MDG and CFIN) will have 1 controlling area with a consolidated list of company codes. However, our target systems have multiple controlling areas with unique company code assignments.

Current Structure:

...................................................Server 1 .......Server 2..... Server 3

Controlling Area.......................GET1 ............GDB1......... GET1

...................................................GET 2 ..............................GET 2

No. of Unique CompCode .......180.................. 150 .........130

Each of these controlling areas has their own standard hierarchy for both Cost Center and Profit Center.

In MDG and CFIN (S/4 Systems), we will be consolidating all of these company codes and assigning it under 1 controlling area.

MDG & CFIN

Controlling Area....................1000

No. of Unique CompCode.....202

As a result, the hierarchy structures of MDG and CFIN will be consolidated as well. Replication between these 2 S/4 systems will be fairly straightforward since both will have the same hierarchy structure.

The problem is replicating these to the other systems. We need to park aside the concept of “Value Mapping” to achieve the above said case of seamless replication to target system due to complex and deep Hierarchies.

Summary of Questions:

  • 1.For MDG and CFIN, we are planning 1 single Controlling Area (1000). Is it is possible to consolidate all legacy hierarchies from target systems under a new hierarchy in controlling area (1000) and replicate these back to their respective hierarchies in the different target systems having different controlling area configurations?
  • 2.If this consolidation is possible, how do you suggest we replicate any assignment or change in the Hierarchy at cost center level to target systems?

We would highly appreciate to hear your expert opinions and best practices to be followed in harmonizing Cost Center/Profit Center Group hierarchies across different systems.