UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 UCB - SAP EURO PROJECT 6

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 Premise of the SAP EMU Conversion Conversion is performed at client level All objects that use a currency participating in EMU are converted BEF (10 companies) DEM (1 company) All fiscal years are converted 09/1995  03/1999 Postings on previous years are forbidden after the conversion 7

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 TECHNICAL PREPARATION Constraints –Upgrade 4.0B August/October –Frequent Backup/Restore –High resources consumption –Specific customizing –Copy of production environment(disk space) N Specific test environment requested 14

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 ANALYSIS PHASE Purpose : Consistency check on Master data and transactions in all concerned modules FI, AM, MM, SD, CO, PM, PP EURO specific Customizing Currencies, GL accounts,... System Environment Authorizations, configuration, lock of users,... 15

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 ANALYSIS PHASE - Customizing For Conversion Company code definition must be complete New document type “EU” specific for EURO postings Assignment of GL accounts to postings categories As example : For 1st January 1999 Lock AM transactions for 1999 (acquisitions only) Creation of EUR currency + EURO rules 16

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 ANALYSIS PHASE Transactions Data Checks It consists in a set of SAP programs which MUST be run to ensure data consistency. Single failed programs can be restarted. FI : Clearing, open items, reconciliation accounts, carried forward AM : FI/AM coherence (assets value, depreciation, reconciliation accounts, …) MM : FI/MM coherence (total stocks = GL accounts) SD : currencies used CO : FI/CO consistencies 17

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 ANALYSIS PHASE Transactions Data Checks All checks must be completed No conversion is possible if a check fails 18

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 CONVERSION PHASE More than 200 SAP Programs included in an SAP procedure will be run within a strict sequence. ALL users are disconnected NO restart is possible if a program fails (restore of a backup is necessary) 19

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 Productive Conversion : Schedule BACKUP 4 H 00’ ANALYZE PHASE 6 H 30’ Corrections ? BACKUP 4 H 00’ CONVERSION17 H 00’ POSTPROCESSING 2 H 00’ 33 H 30’ (Estimated time for a restore - 6 H00) Actual tests realized on a copy of the Production environment of August (estimated size growth for April 1999 : +25%) 20

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 TESTS RESULTS UCB business related : Asset values Exotic currencies MM stock value / GL accounts Clearing documents SAP related : Clearing procedure Business area determination Global satisfaction : restricted areas of problems. One week was necessary to clear “roughly” some problems and to make a successful conversion 21

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 ASSETS Origin : Rounding in depreciation values Transfer in Jan/98 from 6 to 10 GL Accounts positions Depreciation and retirement in 1998 (will be blocked in 1999 until the conversion) The differences on the appropriate Asset reconciliation accounts were solved by manual postings 22

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 EXOTIC CURRENCIES In 5 invoices (Sep 1995 => Mar 1996), currency codes FEB or DM have been found in the pricing procedure. No postings in FI have been done on this base. The creation of the two currency codes is mandatory. The validity date will be restricted for the 3 days of conversion run. 23

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 MM STOCK VALUES / GL ACCOUNTS The total values in Material master records are not equal to the values in the GL accounts linked to these Material master records. Example :  values of Finished Goods <> value in GL Account Differences : 1 BEF on BEF on ,02 DEM on Differences were posted manually on the GL accounts 24

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 CLEARING DOCUMENTS ! Checks are only made on current year. Origin : manual clearing of documents in foreign currencies Three kinds of GL accounts are concerned Vendor Accounts –Personnel –Others Accrual GL Accounts Bank accounts (and related) The only solution is to unclear all documents which are in error + all subsequent documents. 25

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 Business Area Determination Some category of adjustments postings generated by SAP are not taking into account the business area concept. This problem does not block the conversion but does not meet our requirements. SAP is working about this subject and some enhancements should be available soon. (in some cases, the business area determination will be impossible and manual postings will be necessary) 26

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 ISSUES : Credit management Before After New credit limit in EUR with rounded amounts? Based on data given by Financial Services, an automated load could be prepared. 27

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 INTERFACE : PHARMACEUTICALS Incoming GL documents in an EMU Currency Alternative : Document currency amounts in BEF will be translated automatically by SAP and no more transferred from ROSS System. Documents in error are manually updated in SAP Between EMU currencies, SAP forbids to use exchange rates that differ from the official rates fixed on 1st January In both cases, differences between ROSS and SAP could happen. 28

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 TAX REPORTS GERMANY : reports must be in DEM until 2002 BELGIUM : within a year, the reports must be in the same currency. The EUR currency is allowed from January In UCB SA-NV, tax reports will be done in EUR from 1st January For UCB SA-NV, from January 1999 until the conversion, reports can be printed in BEF and EUR. After the conversion, EUR will be the only possible reporting currency. 29

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 BANK ACCOUNTS No bank accounts should be converted to EUR until the conversion (work load) All bank accounts held in BEF will be converted automatically to EUR during the conversion A manual procedure must be executed for the Bank accounts which must be held in BEF after conversion Transfer of line items to a temporary account, change the currency key of the bank account, transfer of the line items from the temporary account to the changed account (x 6) 34

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 PLANNING 35

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 WORKGROUPS Accounting (FI + CO) Tax Archiving Currency management Credit management + master data Payments In order to achieve the work for EUR currency usage on 1st January 1999 and to prepare the conversion, workgroups are proposed by subjects. 36

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 TASKS TO BE ACHIEVED 37

UCB SA-NV SAP TEAM EURO Information Session 17th November 1998 TASKS TO BE ACHIEVED 38