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SAP Cutover Strategy

A cutover strategy is an approach to migrating data from a legacy system to a new SAP system at go-live. It involves deciding how to handle open transactions and balances from the legacy system. One strategy is to declare a "blackout period" where all open orders in the legacy system are closed to minimize what needs transferred. Financial, materials, production, maintenance, and sales balances also need to be carefully managed during cutover. The strategy is key to a successful project go-live.

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Pankaj Soni
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544 views

SAP Cutover Strategy

A cutover strategy is an approach to migrating data from a legacy system to a new SAP system at go-live. It involves deciding how to handle open transactions and balances from the legacy system. One strategy is to declare a "blackout period" where all open orders in the legacy system are closed to minimize what needs transferred. Financial, materials, production, maintenance, and sales balances also need to be carefully managed during cutover. The strategy is key to a successful project go-live.

Uploaded by

Pankaj Soni
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What should I consider for an SAP cutover strategy?

At the point that companies near the go-live of an SAP system, they need to decide on the
cutover strategy. A cutover strategy is an approach to migrating data from a legacy system to
a new system -- in this case an SAP system. It's one of the most important keys to the
project's success. Cutover data includes data on financial and materials balances that SAP
must carry forward, and also how to handle open transactions from the legacy system. Open
transactions are those business transactions that are still under process when the company
switches from the legacy system to the SAP system.

Let's take an example where the cutover date is Dec. 31. After this date, the company must
transition to the SAP system and must also ensure to enter backlog data from Jan. 1 onwards.

One of the cutover strategies that the company can adopt is to minimize the open orders that
will need to go into the new SAP system. An open order can be a sales, production or
purchase order that has been partially processed. To achieve this objective, the company can
declare a "blackout period," during which all open orders in the legacy system will be closed
and no new entries will be made in the legacy system. To achieve a smooth blackout, the
company requests that vendors deliver goods in advance, requests raw materials it will need
for production during the blackout period, and even make maximum deliveries to customers
in advance.

Here are some additional tips to creating a successful cutover strategy:

Financial balances: All open balances, such as outstanding payments to vendors or


outstanding payments from customers, are directly managed in the SAP Financial Accounting
component.

Materials balances: Only the open balances that require materials movement -- such as raw
materials or packing materials still awaiting vendors' deliveries, or the company's own
products ready for dispatch to customers during the blackout period -- are managed in the
SAP system.

Production balances: While work-in-process is kept to the minimum, only open production
or process orders are managed in the SAP system, and are then settled in the SAP Managerial
Accounting (Controlling) component.

Maintenance balances: Like open production or process orders, open maintenance orders
will only account for the remaining (open) maintenance work and associated spare parts
required to perform maintenance work.

Sales balances: The company should not create a sales order if goods are already delivered to
the customer and only payment is awaited. The SAP Financial Accounting component can
manage this business process by directly entering the customer's payment. However, the
business user will need to create a sales order for open order quantity in the SAP system, and
process it as normal business process.

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