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SAP Solution Brief


System Landscape Optimization Group DELETION SERVICE

When you sell a business,

you must provide the rele-
vant business data to the
buyer and realign your
organizational structure
in your IT landscape. The The accelerating evolution of markets The System Landscape Optimization
today may force you to tighten your cor- group from SAP Consulting offers a
System Landscape Opti- porate structure to sharpen competitive standardized service that carves out all
mization group from SAP® edge and reduce overhead. You might business data related to a divested busi-
decide to sell a division to achieve your ness entity using a proven methodology
Consulting helps you main- financial goals or divest a business unit and dedicated technology. The group’s
tain compliance with all legal that no longer complements your overall experts can help you manage all phases
product portfolio. However you do it, of the project, from planning to imple-
requirements. splitting off parts of a business affects mentation and testing.
the buyer as well as you, the seller. The
buyer needs full access to all relevant Adjusting Your Data Structure to
business information right away and Reflect Divestiture
must rapidly integrate the new business
to preserve stable relations with cus- Each business entity in your corporate
tomers and suppliers. You both must structure is assigned a unique company
mirror the organizational changes in code in your SAP software. When real-
your SAP® software landscapes. Simply izing a divestiture, the seller typically
identifying data belonging to the trans- removes from the production system all
ferred entity is a nontrivial effort, and you data related to the divested entity and
both must agree on who will have access hands it over to the buyer (see figure).
to that business data in the future and
how that data will be accessed.

Production System
System Copy

2 Copy complete production system

CC 001 S CC 001
CC 002 S CC 002
CC 003 T CC 003 In system copy, delete company
E codes unrelated to divested entity
CC 004 M CC 004
CC 005 1 CC 005
CC 006 C CC 006 In production system, delete company
O 3
codes related to divested entity
CC 007 P CC 007
CC 008 Y CC 008
CC 009 CC 009 Deliver system copy to acquiring
entity and release production system
CC 010 CC 010

Company codes to be retained

Company codes to be deleted

Figure: A Typical Carve-Out After Divestiture

If you need continued access to data Deciding Where to Perform
associated with the divested entity, the Deletions
System Landscape Optimization group
leaves your production system intact Deleting an organizational unit slated
and transfers a copy of the data related for divestiture deletes the subordinate
to the divested entity to the buyer. data hierarchy rooted at that organiza-
tional unit. To illustrate: if a business
Preparing for the Project entity has a manufacturing plant with
several storage locations, deleting the
Consider legal ramifications when company code identifying the business
planning to delete any data related to entity deletes the data for the lower- After divesting a busi-
your business, particularly all required level units – plant and storage locations –
data retention periods for financial as well. If you need to retain those
ness entity, you must
transactions. Check all proposed data lower-level units, the System Land- mirror the organiza-
deletions with your auditor before the scape Optimization group can use its
project kicks off. technology, methodology, and expertise
tional changes in your
to perform a service called a company SAP software land-
Deleting a company code involves all code split. If deleting all selected com-
SAP applications, so keep your staff pany codes leaves a higher-level orga-
scapes. Simply identi-
informed of potential changes through- nizational unit empty – for example, fying data belonging to
out the project. With a large-scale a controlling area – the team would
divestiture, you have to make sure you delete the controlling area too.
the transferred entity is
consider the following questions: a nontrivial effort.
• Which business processes will be Kicking Off the Project
• Which organizational units will look The recommended first step in the
different after the divestiture? Sales? project is a one-day kickoff workshop Be ready to run relevant reports – for
Purchasing? Charts of accounts? to produce a project plan. At this event, example, account balances and cus-
• Were any company codes to be de- SAP experts discuss with your special- tomer statements – both before and
leted used in intercompany postings? ists your business case and project after the deletion to verify results.
scope. An implementation cycle takes
You may need to modify other applica- from four to six weeks: one to two weeks Although the System Landscape
tions – customer relationship manage- of preparation; two to four weeks of Optimization group typically works
ment or business intelligence software, testing. Converting a production system remotely, you have immediate access
for example – if their functions were pro- takes one to four days. Time spans throughout the project to dedicated
cessing or used the data being removed. will vary with the amount of data to experts and their project management
You can ask your SAP project leader be deleted and the performance and and application know-how in case
about getting extra help for this step. settings of your system. questions arise.
Implementing a Carve-Out After you confirm your selections, you Divesting a business
can copy the data you selected (except
Your technical staff first prepares a transaction data) to a file and store it
entity affects the buyer
copy of your production system. While for use in your testing plans or auditing as well as the seller. The
you continue normal operations, the documentation.
System Landscape Optimization group
buyer needs access
applies its technology to the copy. Performing the Deletions to relevant business
Next, the System Landscape Optimiza-
Using the Technology to Suggest tion group deletes the data from your
data right away and
Deletions production system, after which it is no must rapidly integrate
Based on the company codes you longer available to your processes. Data
designated for deletion, the technology belonging to other company codes is
the new business to
selects dependent data objects that unaffected and fully available. preserve stable rela-
also become candidates for deletion:
• Higher- and lower-level organizational For maximum speed and efficiency, the
tions with customers
units that contain only data related experts delete directly from the data- and suppliers.
to the company code to be deleted base. The technology automatically
• HR data objects and master data finds the tables you created that you
that are wholly dependent on those assigned standard SAP domains; the
organizational units, including cus- tables you created but did not assign Testing the Deletions
tomer and vendor numbers, material an SAP domain must be provided In the final phase, you verify the results
numbers, purchasing groups, and explicitly for the SAP experts. Working of the deletion against the test plans
cost centers at the database level, the experts can and sample reports you prepared earlier.
process large amounts of data rapidly, The software is released for live opera-
Confirming the Selections deleting all appropriate transaction and tion only when all tests run without
Once the selection process ends, master data and customized settings. error and the System Landscape Opti-
the experts explain how to look up System downtime is carefully managed, mization group receives your written
the results in your SAP applications. resulting in minimal disruption to your acceptance of the results. Only then
You choose to delete or retain each day-to-day business. If you have only do the company code deletion experts
of the suggested organizational units, a limited downtime period available and sign off on the project, and you can be
HR data objects, and master data ele- there is a large amount of data involved, sure your financial processes will run
ments. Based on your decisions, the the deletion can be performed in phases. efficiently and correctly.
technology identifies all transaction
data to be deleted. For More Information

For additional information on the ser-

vice portfolio of the System Landscape
Optimization group, please visit
QUICK FACTS www.sap.com /contactsap

As an SAP customer responding to changes in world markets by divestiture, you must
adjust your applications to mirror your leaner corporation. Your complex organizational
structures must be cleansed of elements associated with the divested entity in a way that
maintains transactional integrity and meets legal requirements. The System Landscape
Optimization group from SAP® Consulting offers its extensive know-how and a proven tech-
nology to perform this work. Its service for deleting company codes and the data related to
them efficiently trims your SAP software landscape.

Business Challenges
• Ensure your SAP applications reflect your trimmed corporate structure
• Meet all legal requirements regarding data retention periods during corporate
• Provide data to support audit trails and compliance documentation

Key Features
• Expert adjustment of SAP applications – Continue to manage your business efficiently
throughout periods of corporate change
• Consistent regulatory compliance – Continue to run business processes after they are
adapted to your new corporate structure in compliance with applicable legal regulations

Business Benefits
• Protection for your revenue stream by keeping downtime to a minimum as corporate
structure is trimmed
• Efficient testing procedures to verify that your business processes will run efficiently
and correctly after divestiture

For More Information

For additional information, please visit www.service.sap.com/slo. For a questionnaire to
help you plan for company code deletion or for a quotation for the service, please contact 50 090 486 (11/05)
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