Implement A New General Ledger Functionality

Implement a new general ledger functionality
with one person and no consultants

October, 2010

Organization

Challenges

Implementation Approach

Benefits

Lessons Learned

Agenda
Content
Edda Media SSM | 19.08.2014 | Slide 2 |
Organization
Mecom is 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
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
Organization SSM (Shared Service Center for Edda Media): Primary and Support Services
10,8 FTE 8,8 FTE 7,8 FTE
3 FTE
3 FTE
3 FTE
2 FTE
Total FTEs: 38,4
Organization Strategic direction / Vision for the FSSC in Edda Media
Achieved
Partly Achieved
Not Achieved
Vision:
Be among the
most efficient and
most effective
FSSC in Europe
Organisational
buy in,
motivation and
acceptance

Best Practice
in our
processes:

Application
Management
New Service
Operating Model
User
Friendliness /
E-Learning
Integration:
AP and AR
automation
IT - support

SAP Payroll
/ Self Service
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
54K dunning letters sent to customers.
10
19 Million financial line items booked (from 2008.01 to 2010.04).
Organization 10 key figures in SSM (FSSC).
Challenges
Tnsbergs
Blad AS
Sandefjords
Blad AS
Gjengangeren
AS
Edda
Vestfold
Digital AS
Sandefjords
Blad
Gjengan
geren
Tnsbergs
Blad
Edda
Vestfold
Digital
Consolidation
... To fewer company codes
with Profit Center groups
(as of 2008.01).
In 2007 Edda Media wanted
to go from a constellation of
many Company codes...
Edda
Vestfold AS
Challenges Consolidation / Merging
Corporate demands
Reorganization
of all Financial
reporting
dimensions
Challenges Reorganization of all Financial reporting dimensions
Newspapers
Digital
Other Media
Channel
Magazines Newspaper subscription based Newspaper freesheets
Radio
Services
Other
TV
Administratio
n
Sales &
Marketing
Supply Chain
Editorial Distribution Other Printing
Marketing Sales
Functio
ns
Finance HR
Legal
IT
Management
board
Editorial
management Desktop
publishing Editorial
departments
General
News agency
Procurement Production
Other
Other
Office Costs
Advertising
Challenges Complexity of System Interfaces
HFM
ALTI NN
Annonse System
Adbase
10.13.10.245
10.13.10.249
Infosoft, Opplags-
System
10.13.8.3
Budlnn
IDOC
4 Stamdata kunder
Biz Talk 2002/2004
PRD:Omtbiz05: 10.13.10.157
PRD:Omtbiz06- 10.13.10.158
TST:Omtbiz07: 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)
R
e
m
i
t
e
r
i
n
g

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 Trykk
Gule sider

Termin
rapport
BPC

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)
L
i
v
e

N
e
w

G
L

2007 2008
L
i
v
e

E
R
P

Implementation
Approach
Implementation Approach Project New General Ledger: What is under the surface?
Change Management
Impact on interfaces
Complexity
Planning
Migration
New General Ledger
configuration
New General
Ledger
Project
Impact on BW/other
SAP modules
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 Production
client without
data to a new
client landscape
Blueprint
new G/L
Customizing &
implementing
new G/L
Cutover
activities
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/L
Classic G/L
Classic G/L
Implementation Approach Edda Media SAP Landscape without Migration (chosen)
Client copy without master/transactional data
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 from
the old client to the new. There was a conversion period for master data
and open items.
New GL project: key determining factors.
Plans
Resources
Project
Board
Example of New
GL cutover
activites.
(client copy
approach)
Benefits
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 as
cost of sales accounting.
Greater transparency for
auditing and accelerated
period-end closing.
New
General
Ledger
Balance sheet for multiple dimensions at
lower levels than company codes with
zero balance.
Corporate Governance
Fast Close
Benefits Functionality in the New General Ledger
Parallel Accounting
Extensibility / Flexibility
Benefits Keep and balance multiple ledgers faster and more accurately
Benefits - TCO: Simplification of ledgers
Cons.
Preparation
EC-PCA

GL in
mySAP
ERP
Online Split:
Balanced Book
for any dimension
FI-SL CO-OM
CO-PA
Profit Center
Determination
CoGS Ledger
Currency
Translation
Zero balance Derivation
Accounting Interface
Reconc.
Ledger
Benefits Edda Media Financial Dimensions
Cost Center
Group
Segment
(90012
Shared activities)
Cost
Center
Controlling
Area
(Edda Media)
Company code
(10 Edda Media)
Profit
Center
Functional Area
(F1110 Admin.)
Profit Center Group
= Consolidated
Reporting Entity
Benefits Financial Dimension Reporting Model

Sales
Accounts
Profit
Center
Groups
Segments
Functional
Areas

Cost Of Sales

Other Cost
Turnover
Gross Profit
EBITDA
Benefits New report library in ECC: Example of Report Painter New GL report
Merged Edda Media companies from around 70 to 35.
Profitability analysis per product achieved by using the segment
dimension.
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
Lessons Learned
Lessons Learned Project Tips
Enable the New G/L in a sandbox client and try some 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 classification
of 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
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?
Edda Media 2007 | 31

Mellomfoil
Edda Media Vision:
Norways bravest and most innovative media company

Implement A New General Ledger Functionality

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Implement a new general ledger functionality

with one person and no consultants

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