S/4 transformation without HCM damage

ERP and HCM are closely linked and exchange data together. Adjusting account assignment objects, i.e. changing information on cost centers and cost objects, in ERP therefore automatically means that data in HCM must also be adjusted. An important decision in the context of such an adjustment project is therefore the choice of the appropriate strategy: either the changeover takes place on a defined "key date", on which old and new structures remain in the system, or the "history" variant is chosen, in which the history of the account assignment objects is completely replaced. Which of the variants is chosen has a significant influence on how ERP and HCM will work together in the future. Both approaches have advantages and disadvantages. The impact of these depends on the specific requirements of a company.

Key date: Double customizing

The key date variant provides for the system customizing to be duplicated from a specified point in time. This means that both the old and the new personnel areas, company codes, controlling areas, cost centers, WBS and/or internal orders exist in parallel. From the key date, the new customizing is activated via the organizational assignment (IT0001), while the old structures remain in place. The advantage of this approach is that the history remains unchanged and the new system is fully implemented from a defined point. However, the approach requires extensive testing, as all processes - from payroll and time management to interfaces and the B2A Manager - must be checked. This is the only way to ensure that the changeover and operation run smoothly. The testing effort and the necessary consulting are very high, as double customizing is necessary.

A major disadvantage of the key date variant is that there is no retroactive accounting in the HCM system to the old account assignment objects. After the key date, all settlements and postings must be reconciled to the new company codes and cost centers in the ERP system. This means that retroactive accounting for accounting periods before the key date can no longer be carried out on the old account assignment objects in HCM.

History: Complete replacement

With the history variant, the entire history of the system is replaced by the new account assignment objects. It is not necessary to manage old and new customizing for the account assignment objects in parallel. This approach results in less testing effort, as the B2A manager, follow-up activities and many other processes do not have to be checked again. Another advantage is that retroactive accounting in the HCM system remains possible without any problems, as the old account assignment objects are completely replaced by the new ones. This variant reduces the consulting effort, as no double customizing is required. In addition, the old account assignment objects are no longer required in the system, which simplifies it and frees it from obsolete data.

Regardless of which option a company chooses, in both cases schemes, rules and features must be thoroughly reviewed and adapted if necessary. The Natuvion Data Conversion Server can help with this. This software, developed for transformation, supports the migration of data by replacing old account assignment objects with new ones and ensuring that all necessary adjustments are made in the system. So if you want to make sure that the move to the SAP Cloud works as smoothly as possible - just like the future data exchange between ERP and HCM - you should consider both the migration options and the possible use of a data conversion solution at an early stage.

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