Impact of a new company code on purchasing

[lavram17]

Hello,

We are thinking of splitting the current company code (it has 4 Business units under it) into 4 new company codes and I would like to know what the company code change impact on Purchasing is.

Until now, I identified the following actions:

- Assignment of existing plants to new company code(s).

- Assignment of existing purchase org to new company code(s)

- New company code to be assigned to the existing open purchase orders. If there is a partial GR on existing PO, how will this be handled? It has an impact on finance.

- Do we need to set up new vendors? The vendors are created at purchase org level.

- Any validation rules, customized codes if written per Plant/Purch. Org/CoCd combination, they needs to be checked and changed.

What else? Any feedback about the impact on Purchasing would be highly appreciated.

Thank you!

[sanilbhandari · Accepted solution]

Hi lavram17

I can think of the below topics to be taken care of:

a) Inventory values need to be closed in existing company code and transferred to new company codes

b) The old purchase orders to be recreated in new company code. You will need to have master data such as material master and vendor master extended

c) You need to set up info records as well as tax condition records in your new company codes

d) Creation of open PR and open or unpaid invoices in new company codes

These are just some of the activities, but could be more as well

Regards

Sanil

[lavram17 · Accepted solution]

Hi Sanil Bhandari,

Thank you for your feedback!

Can you please be give me more details about b) and c) ?

b) Why the old purchase orders need to be recreated with the new company code? It can be changed with MASS transaction, MASSEKKO-BUKRS. This should work, right?

Why do we need to extend material mast and vendor master? The material master is created at plant and sale org level, while vendor master is created at purchase org level. If we assign the existing plant code and purchase org to the new company code, isn't this enough? This should automatically link the materials and vendors to the new company code. Am I wrong?

c) The info records are set up at plant and purchase org level. Why do we need to set up new info records? If we assign the existing plant code and purchase org to the new company code, isn't this enough?

Regards,

Liviu

[sanilbhandari · Accepted solution]

Hi

If you have existing transactional data assigned to old plant assigned to old company code, you cannot assign the same plant to a new company code. You need to create a new data object for plant and than assign the same to the new company code. If that is the case, you also need to extend the materials as well as create new PO.

Thanks & Regards

Sanil Bhandari

[lavram17 · Accepted solution]

Hi,

Yes, we do have existing transactional data assigned to current plant assigned to current company code. So, if we decide to split the company code, it is not enough to assign the current plant codes to the new company codes, but to create new plant codes due to the existing transactional data. Is my understanding correct?

Thank you!

Liviu

[sanilbhandari · Accepted solution]

You would want to keep the historical data for records (legal requirement as well) as required in most of the countries. If that is the case, you would need to create new plants and assign to the new company code/purchasing organization.

[BijayKumarBarik]

New company code/s formation is like Rollout project- Along with designing your new organization structure , you need to take care of master data extension and inventory movements to new entities. On top,you need take care of authorization control on creation transactions with user/s and what action needed at the end on old organization structure once you moved to new organization structure!

[lavram17]

Hello Bijay! Thank you for your feedback!

Can you please provide more details about the master data extension? If we assign the existing plant and purchase org to the new company code, isn't this enough?

Regards,

Liviu

[BijayKumarBarik]

You already closed your tread for answering.

Yes, you need to plan for master data extension. Not enough, if you just assign new plant and new Pur. Org to new company code?

Master data extension and then plan for movement of transactions. Below are few master data you can plan for and many more based on your business process-----

1. master data extension(MM)

1.1. Material master to new plant for new company code

1.2. Vendor master to new Pur. Org for new company code

1.3. Pricing condition record to new plant , new Pur. Org for new company code

1.4. Purchasing info record to new plant and Pur. Org

1.5. Source List to new plant & new Pur. Org

1.6. Message condition record for new plant , new Pur. Org for new company code

2. master data extension(QM)

3. Finance master data extension(FI/CO)

3.1. Finance G/L master to new company code

3.2. Cost Center to new company code

3.3 Tax conditions* to new company code

4. Customer master data extension(FI/CO)

4.1. Customer master to new Sales Org for new company code

4.2. Pricing condition record to Sales Org for new company code

4.3. Message condition record for new Sales Org new company code

[lavram17]

Hello Bijay!

Thank you for your comprehensive feedback.

It is my understanding that we need to create a new plant code as well. Is that correct? At this moment we have 4 different plant codes and purchasing org under the same company code.

If we decide to split the company code into four different company codes, do we need to create new plant codes too or it is enough to assign the existing plant codes to the new company codes?

Best Regards,

Liviu

[TammyPowlas]

Remit to vendors should be partnered with the purchasing vendors, and those will need to be extended to the new company codes

And please don't forget the impacts of authorizations on setting up new company codes. Please add some time for adjusting and testing authorizations for this.

[lavram17]

Hello Tammy! Noted that. Thank you for your feedback!