Presented by Paul Ovigele
In S/4HANA 2022, SAP introduced a tool called “Organizational Flexibility in Financial Accounting” (also called “Organizational Change” or “Profit Center Reorganization”) which enables the changing of legal and management entities that are grouped according to organizational structures, master data and transactional data. This feature allows you to update the profit center assignment in master data, such as Materials, Assets, WBS Elements CO Orders, and creates transfer postings for selected balance sheet accounts and open payables and receivables. Watch this recorded webcast with SAP FI/CO Expert Paul Ovigele to learn the following:
- The various scenarios where Profit Center Reorganization is needed.
- How to use the “Manage Organizational Changes” app is to help you to split, combine, and replace profit centers.
- Which SAP Objects are affected by the reorganization.
- How you can navigate to related apps for organizational changes.
- Limitations of the “Organizational Flexibility in Accounting” feature.
Q&A
Q: Is there any possibility with a note or at a future date SAP would consider this available for 2021 version?
A: I am not sure if this tool can be downported to previous versions. You will need to check with your SAP Rep about this.
Q: If I want to change the Segment assigned to a profit center, and update the balance sheet to reflect the change, do you have to assign to a new profit center, or can you update the segment on the existing PC and run this with the same profit center as old and new? Or is there a better tool for this?
A: If you are on S/4HANA 2022 there is no Segment Reorganization (although I believe this feature will be available in future releases) but if you are on ECC there is a Segment Reorg tool (which requires an SLT license) will satisfy the requirement.
Q: Considering an ECC environment do you recommend waiting for the conversion to S4hana and then reorg or do it previously in ECC?
A: If there is a business case to perform an organizational change in ECC, then I recommend you do so. However, you will either need to use the old PC Reorg tool (which requires an SLT license) or do so manually.
Q: The data is changed as of the change date, not historical data in the past?
A: Yes, the data is changed on the effective date. However, any open items with a past date will also be updated on the effective date.
Q: Can the reorg tool be used for Cost Centers as well?
A: No, the reorg tool cannot be used for Cost Centers. In fact, changing the PC assignment is not available in the Org Change App directly. Instead, if you want to change the PC of a Cost Center, you need to do so in the cost center master data and specify the validity date when the new PC should be update. If the Validity Date coincides with the Effective Date of an Org Change, then the new PC will be updated when the Org Change is processed.
Q: Are there any plans by SAP to allow transfer postings for P&L as well?
A: Not at this moment.
Q: If we used the old reorg tool in ECC will the reorg plan be available in the new tool?
A: No, any reorg plans in the old tool will not be available in the new tool.
Q: What is the difference between Profit center reorganization and COPA realignment?
A: Profit Center Organization changes master data and can make transfer postings if needed. COPA Realignment does not change master data only updates historical documents. Also, Organizational Change only updates Balance Sheet postings while COPA Realignment updates P&L postings.
Q: Can Partner Profit Centers be reorganized as well?
A: No. Partner Profit Centers cannot be reorganized as of S/4HANA 2022.