The process of organizational flexibility involves four main phases:
Identification and Preparation: This phase involves identifying the scope of reorganization and preparing it within the system You use the "Manage Organizational Change" app to collect and maintain master data with new profit center assignments. This step usually starts by analyzing the value list of profit centers to determine which objects need replacement with new ones. To start working in the system, you create an organizational change ID. This ID needs to be accompanied by an effective date, which is the key date for the reorganization.
In this exercise, you can create an organizational change ID:
In the exercise, you can add objects to the organizational change you created:
Simulation: Once the preparation is completed, the system allows you to run simulations. This step involves simulating the changes indicated in the first step to understand and analyze the potential impacts on dependent objects. The simulation identifies various dependent objects affected by the reorganization, such as production orders, purchase orders, and sales orders.
In this exercise, you can simulate a reorganization:
Processing: The processing phase involves the actual execution of changes. It includes changing master data and performing transfer postings in both the simulation and real ledgers. This step happens in parallel with normal business operations to ensure no downtime. If relevant postings are made in parallel, during the reorganization processing, the system identifies these and asks you to reprocess the reorganization with a delta run that fixes any such cases.
Validation and Completion: Following the processing phase, there's a completion step that serves as a validation check. This step ensures that everything identified earlier has been properly processed and that there haven't been any impacts on the reorganization result during the parallel business operations. Completion finalizes the reorganization.
In the above, more analytical process diagram, you can see that the processing step in the reorganization process is delineated into two main steps:
Activation:
The activation is the initial step in processing and is performed before the upcoming posting period, ensuring that the reorganization is set up and ready before any transactions occur within the new period.
Here's how it unfolds:
- Time-dependent Profit Center Derivation: Upon activation, the system initiates a mechanism to derive profit centers for Profit and Loss postings related to CO objects. This allows new postings to automatically derive the correct profit center even if the object's master record retains the old profit center.
- Scope Restriction: Activation locks in the scope of the organizational change. Once activated, the flexibility to modify the scope within the Fiori apps is restricted to prevent inconsistencies due to ongoing posting data manipulation.
- Listeners: An activation triggers "listeners" that monitor transactional activities, identifying objects related to the reorganization scope. For instance, if a purchase order or production order involves materials marked for reorganization, these objects are automatically added to the processing list.
- Temporal Considerations: The activation period ideally starts before the opening of the subsequent posting period. This period ensures that no transactions occur with the old profit centers after the reorganization is initiated.
Hint
For example, an organizational change is activated on November 20th before the posting period for December opens. This allows for the correct derivation of profit centers when new postings are made in December.
Consider a scenario where a purchase order involving materials within the reorganization scope is created during the interim period between activation and actual processing. The system identifies this order as relevant and includes it in the processing list.
In this exercise, you will process the reorganization activation:
Reorganization Processing:
The processing phase is the subsequent step after activation, focusing on actualizing the changes and incorporating dependent objects:
- Object Identification and Processing:
- Dependent Object Management: Objects identified during the activation phase (like purchase orders, production orders) are managed and listed internally for processing.
- Temporal Dependency: This stage acknowledges the time dependency for CO (Controlling) objects, particularly for open items, where the time dependency might still remain active. New postings will reflect the new profit center, but some items might retain the time dependency from the previous settings.
In the exercise, you can check the objects identified by the reorganization tool:
- Steps in Processing:
- Master Data Update: Occurs after the previous period is closed, ensuring all transactions are aligned with the reorganized structure.
- Transfer Postings: The system generates transfer postings to reflect changes in profit centers and ensures data consistency.
- Predictive Data Re-simulation: The sales orders are analyzed and predictive accounting values are transferred to the new profit centers.
- Verification: Post-processing, a review and analysis are performed to ensure the processing run was error-free and aligns with expectations.
In the below exercises, you will process the organizational change and analyze the changes:
- Closing Activity:
- Confirmation and Finalization: If the processing results are satisfactory, a completion activity finalizes the reorganization process, effectively closing the organizational change.
In this final exercise, you
- Object Identification and Processing:
These steps ensure a meticulous and systematic handling of data and transactions, ensuring the integrity and correctness of the reorganization process.
The execution of the organizational change in the system consists of the following technical steps:
- "Activate" to switch on the time-dependent profit center derivation.
- "Process" to update the affected master data with the new profit center and transfer post the amounts from the old to the new profit center.
- "Complete" to check the completeness of master data update and transfer postings.