SAP Rollout USA

In order to efficiently plan and manage the economic development of a U.S. subsidiary, the parent company needs up-to-date information and key figures on this location.

The easiest way to obtain them is to integrate the U.S. company into the central ERP installation through an SAP rollout. However, various pitfalls lurk here:

1. the sales tax...

...is levied in the USA by the individual states. The number of tax rates that the SAP system must map is correspondingly high. This is possible via the "Jurisdiction Code", which together with the tax code indicates the amount of the respective sales tax and determines the allocation of the amount to the individual tax authorities (State, County, City).

2. reports to the tax office:

Payments for contracts that companies award to self-employed workers - for example, mowing the lawn in front of the company building - must be reported to the tax authorities under U.S. law.

In some cases, even the contractor's income tax is withheld and transferred directly to the responsible tax authority. Since several such taxes often have to be paid in parallel in a business transaction, the individual tax types must be defined and assigned in SAP.

3. check and credit management:

Since a U.S. supplier is usually still paid by check, the check management functions must be set up for creation, entry and processing in SAP in accordance with the requirements and rules of the auditors and banks.

Customers, in turn, often pay by credit card, depending on the industry, so efficient credit management is required, including the ability to check credit limits and analyze payment behavior.

4. evaluate material stock:

Material inventory for the balance sheet under United States Generally Accepted Accounting Principles (US GAAP) may be valued using either the FIFO (First In - First Out) or the LIFO (Last In - First Out) method.

In the USA, the "historical cost" is a common valuation standard for the acquisition and production costs of machinery and equipment, whereas in Germany a distinction is made between production and acquisition costs.

5. dimensions and weights...

...are to be converted correctly in the electronic data exchange. If common materials are to be used for which there are different units of measure (dimensions, length, volume), a strategy for harmonization or alternative use of these units of measure must be developed and implemented.

6. distances...

...within the USA, but also to Germany, make it necessary to look closely at time zones and delivery times. Especially for shipping notifications and on the delivery and delivery date for transport orders, this is an important aspect.

7. human factor:

The success of an SAP rollout in the U.S. stands and falls with an awareness of cultural differences. Whereas German employees, for example, are used to working out a detailed implementation plan that is then adhered to, U.S. employees generally attach great importance to flexibility and repeatedly adjust their planning during the course of the project. The project team should therefore also be staffed with German employees if possible.

8. create documentation:

Due to the high employee turnover in the U.S., the rollout documentation must be in English and continuously updated.

Otherwise, there is a risk of losing important SAP know-how if key users and IT staff leave the US company shortly after the rollout is completed.

9. good preparation...

...is the be-all and end-all for subsequent success and begins with the definition of a rollout strategy. A fit-gap analysis determines which regional requirements need to be met and which of the processes defined in the SAP template need to be adapted and extended - via customizing, in-house development or an add-on.

The system landscape is then analyzed with regard to interfaces or support, logistics processes are reconciled, charts of accounts are mapped, and master data is cleaned up and harmonized. It must also be clarified whether the US subsidiary has sufficient IT personnel with SAP expertise.

10. blueprint...

...create, perform integration tests: Finally, the business blueprint is created; this is followed by the adaptation and implementation of the SAP processes, the setup of the test cases. It is important to perform at least one integration test before going live and to train the key users in good time, who will later pass on their knowledge to the business users.

Immediately after commissioning and when the first monthly financial statements are prepared, particularly intensive support is required. Then the "regular" support takes over the support of the SAP system - either the German headquarters or a local consultant.