1910 results analysis conversion

8/13/2019 1910 Results Analysis Conversion

http://slidepdf.com/reader/full/1910-results-analysis-conversion 1/26



Real Experience. Real Advantage.

[

2

Introduction - Company

http://www.lockheedmartin.com/us/mfc.html

The Lockheed Martin Missiles and Fire Control(MFC) company is one of six companies thatcomprise the Lockheed Martin ElectronicSystems business area.

MFC develops, manufactures, and supportsadvanced combat, missile, rocket and spacesystems for military customers that include theU.S. Army, Navy, Air Force, Marine Corps,

NASA, and dozens of foreign nations.

Missiles and Fire Control (MFC) is

a Business Unit of Lockheed Martin




[

3

Business Case Scenario

Company A has run RA one way for about 14 years and whenCompany B merged from legacy, the RA process was requiredto change to a new RA process (Company B’s process).

What’s being presented

Project Systems RA

Only one contract type is demonstrated (FIXED or POT)

More focus on the conversion steps

Less focus on the RA configuration




[

4

Current before RA picture-ROS 10%

Project A Profit Ctr A

Sales $100 Sales $100

Cost $20 Cost $20

Current after RA picture



Cost $20 Cost $20UndeliveredCost (4xxxxx)

$70




[

5

New Process RA picture-ROS 10% - requirement



Cost $20 Cost $20

ME cost to WIP -$20 ME cost to WIP -$20

COGS after RA $90 COGS after RA $90




[

6

Steps to achieve New Process RA picture-ROS 10%



Cost $20 Cost $20

ME cost to WIP

(499998)

-$20 ME cost to WIP

(499998)

-$20

New RA(499011)

$90

Custom Code(499011)

-$90

COGS (499211) $90 COGS (499211) $90

Custom Code 1

Custom Code 2

Custom Code 2

New RA Key


http://slidepdf.com/reader/full/1910-results-analysis-conversion 7/26Real Experience. Real Advantage.

[

7

Some key RA configuration steps

OKG1

OKG2

OKG3

OKG4



[

9

Implementation Steps

Open CO periods for “Automat. WIP/results analysis” as farback as needed (Auto RA) – OKP1(include manual as needed)

Reverse RA for all periods/years – SAPKKA13 (program)

Ensure FI period is current – OB52

Post RA reversals to FI via project settlement – CJ88/CJ8G Validate RA accounts as needed

Close CO periods to make current

Change RA keys for all conversion projects

Change plan data if applicable – CJR2

Make any one- time manual entries if applicable (FB50-499998)

Run catch up RA – KKA2/KKAJ and save

Analyze RA and settle to FI CJ88/CJ8G



[

10

Implementation Steps-OKP1



[

11

Implementation Steps-SAPKKA13



[

12

Implementation Steps-SAPKKA13



[

13


Open CO periods as far for “Automat. WIP/results analysis”back as needed (Auto RA) – OKP1






Change plan data if applicable – CJR2






[

14

Implementation Steps-CJ02



[

16

Implementation Steps-CJR2



[

17


Open CO periods for “Automat. WIP/results analysis” as far

back as needed (Auto RA) – OKP1






Change plan data if applicable






[

18

Implementation Steps-FB50



[

19

Implementation Steps-KKA2



[

20

Implementation Steps-CJ88/CJ8G



[

22

Learning Points

Full reversal of old RA process or partial (depends on process)

Open CO periods as far back as needed (Auto and manual RA)

RA is an FI only posting

Beware if the FI only account used has been inadvertently

converted to a cost element Results analysis stored in CO table (COEPB)

Results analysis is a two step process (RA and settle)

Moving regular costs to WIP and then posting COGS via RA

may improve performance in addition to convenience ofanalysis (RA has to read only one cost element as opposed tomany)



[

23

Best Practices

Understand the RA processes previously used and ascertain ifany manual entries occurred (may or may not have toreversed)

Reverse using SAP functionality and use test run to confirm therequirements

Configure the new RA keys and test them well in advance

Exercise the methodical steps in a test instance beforeproduction




[

24

Key Learnings

Understand the old RA process and postings

Test the new RA process well in advance

Test the mass conversion in a test instance

Get concurrence from Accounting

Pick the right month to implement the conversion

Use the first half of the month to convert to give enough timebefore month end close

SAPKKA13/CJ88 two step RA reversal process

Carefully pick the right month and ensure sufficient time forvalidation

Methodology can be used on all contract types




[ Presenters Contact Info

Raj Thyagarajan ([email protected])

Karen Szu ([email protected])

25

mailto:[email protected]






[

[

] Thank you for participating.

SESSION CODE:

INSERT SESSION CODE

Please remember to complete and return your

evaluation form following this session.For ongoing education on this area of focus, visit the

Year-Round Community page at www.asug.com/yrc

1910 results analysis conversion

Documents