Clear Cut! Carve-out or Shutdown of Business Units in SAP

When companies sell off business units, they are now more likely to separate the data for the divested units from their production SAP landscape. Many sales agreements require the data for the transferring business unit to be handed over in an SAP system. A more reliable alternative is a specialized, tried-and-tested tool like SNP Transformation Backbone, which transfers all specified data to the divested unit‘s system.

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Webinar: Carve-Out of Business Units in SAP

When enterprises divest their corporate business units, sales agreements likely require the transferring business-unit’s data to be delivered in an SAP system. This process is often performed manually, which is not only very time consuming, but also prone to error. Learn how automated software makes an enormous difference for IT and business owners when carving out corporate entities.

Shutdown of Business Units

When business units are shut down, the SAP system may end up with unneeded data – usually entire organizational units such as company codes or plants. SNP Transformation Backbone makes the shutdown process extremely simple. Not only can legacy data be archived in its entirety and remain visible on a neutral platform, but it can even be deleted from the system completely.

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Carve-out in only four months

In order for the factory in Brazil to better tailor its business processes to local clients, the companies management decided to convert the centralized SAP ERP system to its own local solution. Norske Skog’s IT-department was tasked with carving out the Brazilian factory from the centralized SAP ERP system. For this complex project, which had just one weekend to go live, and where the cost accounting currency also needed to simultaneously be switched from US dollars to Brazilian reals, Norske Skog got help from SNP.

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Shared organization-independent data

If there is organization-independent data in the system, such as classifications or variant configurations, you will have to decide what to do with this data prior to the tech-nical implementation. Sometimes, global organizational units, e.g. controlling areas, will contain both divested and non-divested units. In that case, our consultants will have to analyze the data assignment in detail. The analysis will culminate with a set of split rules that modify the default rules or that are implemented in SNP Transformation Backbone. Accumulated data and cross-company transactions pose special challenges, but SNP provides solutions designed specifically for them.

A Smooth Start Thanks to a Successful Carve-Out

As a result of the merger between the power plant divisions of Mitsubishi and Hitachi, the former Hitachi Power Europe GmbH in Duisburg was renamed Mitsubishi Hitachi Power Systems Europe GmbH and commenced operation on February 1, 2014. Four of the 58 companies affected by the merger are located in Germany.

Read more about the Success Story with Mitsubishi Hitachi