Migrating To LIV in 4.6C. Agenda I. Overview of Molex and SAP implementation II. Approach to migrating to LIV III. Master data and configuration IV. Lessons

Migrating To LIV in 4.6C

Agenda

I. Overview of Molex and SAP implementation

II. Approach to migrating to LIV

III. Master data and configuration

IV. Lessons learned

V. Questions!

Molex, Incorporated

•World’s second largest connector company. Headquarters in Lisle , Il.

•$1.7 billion in global sales in fiscal year 2002.

•NASDAQ 100 and S&P 500 index.

•54 manufacturing facilities in 19 countries.

•25 development groups in 20 locations in 12 countries.

•More than 100,000 products. 2500 each month to over 4000 customer locations in 60

countries.

Electronic Connects

•Small parts to connect wires to wires , circuit Small parts to connect wires to wires , circuit boards to wires or boards to boards within boards to wires or boards to boards within electronics like TVs , VCRs , games , electronics like TVs , VCRs , games , appliances.appliances.•Familiar as battery / charger connections in Familiar as battery / charger connections in cellular phones, back end and phone jacks in cellular phones, back end and phone jacks in computers but also as-computers but also as- Refrigerator ice-maker componentsRefrigerator ice-maker components Electrification of office panel systemsElectrification of office panel systems Cables to plug in computers & peripheralsCables to plug in computers & peripherals Engine & ignition control module connectionsEngine & ignition control module connections Solderless terminals for auto & electric Solderless terminals for auto & electric needsneeds Membrane switch applicationsMembrane switch applications Sockets to add memory to computersSockets to add memory to computers

Major Markets

•SAP category ‘High Tech’

OtherOther4%4%

TelecomTelecom24%24%

Consumer Consumer electronicselectronics

15%15%AutoAuto18%18%

ComputerComputer33%33%

IndustrialIndustrial6%6%

Top Global Customers

AcerAcer

AlcatelAlcatel

ArrowArrow

AvnetAvnet

CanonCanon

CiscoCisco

CompaqCompaq

DellDell

EMCEMC

EpsonEpson

EricssonEricsson

FordFord

FujitsuFujitsu

HaworthHaworth

Hewlett PackardHewlett Packard

HitachiHitachi

IBMIBM

IntelIntel

InventecInventec

LucentLucent

MatsushitaMatsushita

MotorolaMotorola

NokiaNokia

NortelNortel

PhilipsPhilips

PioneerPioneer

SamsungSamsung

SanminaSanmina

SCISCI

SeagateSeagate

SharpSharp

SiemensSiemens

SolectronSolectron

SonySony

SunSun

Thomson/RCAThomson/RCA

ToshibaToshiba

WhirlpoolWhirlpool

XeroxXerox

Worldwide Manufacturing Locations

•54 Locations

Global Manufacturing Distribution Locations

•AustraliaAustralia

•Brazil (2)Brazil (2)

•Canada – SAP 99Canada – SAP 99

•China (3) – SAP 98-99 China (3) – SAP 98-99

•Germany (2) – SAP 99 ,02Germany (2) – SAP 99 ,02

• Hong Kong – SAP 98Hong Kong – SAP 98

•India (2) – SAP 03India (2) – SAP 03

•Ireland (4) – SAP 97Ireland (4) – SAP 97

•Italy – SAP 00Italy – SAP 00

•Japan (6) – SAP 99Japan (6) – SAP 99

•Korea (3) – SAP 02Korea (3) – SAP 02

•Malaysia – SAP 98Malaysia – SAP 98

•Mexico (3) – SAP 98,01Mexico (3) – SAP 98,01

•Netherlands – SAP 98Netherlands – SAP 98

•PolandPoland

•Puerto Rico – SAP 98Puerto Rico – SAP 98

•Singapore -SAP 96Singapore -SAP 96

•Slovakia – SAP 01Slovakia – SAP 01

•Taiwan – SAP 97Taiwan – SAP 97

•Thailand – SAP 99Thailand – SAP 99

•United States (19) SAP 98-02United States (19) SAP 98-02

•UKUK

SAP Scope of Implementation

•Single instance of R/3 plus BW and CRM.Single instance of R/3 plus BW and CRM.

•Initial go-live in February , 1996 , since then Initial go-live in February , 1996 , since then over 45 plant/warehouses , 16 over 45 plant/warehouses , 16 functioning functioning sales org companies , 50 or sales org companies , 50 or more sales more sales offices , upgrades from 2.2 to offices , upgrades from 2.2 to 3.0 to 46b to 3.0 to 46b to 46c and planned to go to 46c and planned to go to enterprise plus add enterprise plus add APO in 2003. R/3 ‘big APO in 2003. R/3 ‘big bang’ by site.bang’ by site.

•Over 1800 concurrent of 10000 users 7X24 , Over 1800 concurrent of 10000 users 7X24 , 2million transactions per day , over 95% 2million transactions per day , over 95% of all of all Molex sites share this one system.Molex sites share this one system.

Accounts Payable Module

•Used globally at all SAP sites

•One purchasing organization per company code

•Common document types for AP documents

•Use standard SAP functionality for AP processing with no modifications

•All entities use matching with GR/IR accounts

•ERS used at several international entities

Logistics Invoice Verification

Overview of Migration to LIV

•Conventional invoice verification was live at all current SAP entities which included sites in all four regions of the world

•Required to migrate to LIV as part of 4.6C upgrade

•Scheduled a phased conversion by region to LIV after the 4.6C upgrade was completed

•Found some conventional transactions did not function correctly under 4.6C such as

MR08 because of online BDC process


•Required to update existing authorization profiles with objects M_RECH_EKG and M_RECH_AKZ

•There were no data conversion requirements when moving from CIV to LIV

•Training documentation had to be updated to reflect new LIV screens

•Migrated to ERS under LIV (MRRL) immediately because of invoice by material document number option


•Strong resistance from user community to move to LIV

•User community had a difficult time justifying the effort required to complete the move to LIV

LIV Screens

•MIRO Enter Invoice

•Tabular Enjoy type of screen flow

•One screen with many functions

GR/IR Account Settings

•GR/IR accounts must have settings for posting with tax

•These settings need to be made before invoices can be posted in LIV

New Configuration for LIV

•New configuration requirements for LIV in our environment were minimal

•LIV document numbers

•Duplicate invoice check

•Direct posting to GL account

•Message control for ERS and vendor consignment

•All other configuration migrated as part of the upgrade

New Configuration for LIV

•All LIV configuration is found in transaction code OLMR

LIV Document Numbers

•LIV document numbers are by transaction

RD – post invoice

RS – cancel reverse invoice


•Number range intervals are assigned to transactions at client level

•This is not consistent with FI documents that are assigned by company code

•OSS note 452127 gives recommendation for LIV document number by company code

•Recommendation from SAP was not practical in our environment because of the number of company codes with existing documents


•Created one client level number range knowing the LIV and FI document numbers would be different

•Implemented OSS note 216935


•The FI document number is displayed in the LIV posting message

•Active for all LIV transactions that post an accounting document

•Modification not included in hotpacks


•Message can be expanded for details

Invoice Document in PO History

•LIV document number is displayed in PO history

•The actual accounting document number is not referenced

LIV Document


•The accounting document number can be displayed by drilling into the PO history IRL line

•IRL indicates LIV

•Click the LIV document number in the PO history


•Click follow-on documents to display the accounting document

Direct Posting to GL Account

•Activated in configuration

•Makes additional tab available on LIV screens so GL account line items can be entered

Duplicate Invoice Check

•Default check uses vendor, currency, company code

•Additional fields for duplicate invoice check are configurable by company code


•Check company code specifies whether the system checks the company code during the duplicate invoice check

•Check reference number specifies whether the system is to check the reference number

during the duplicate invoice check

• Check invoice date specifies if the invoice date is to be checked during the duplicate invoice check


•We have also configured the duplicate invoice message to be a hard error for some processors

•Transaction code OBA5 with message class F5 and message number 117

Performance in Duplicate Invoice Check

•Activating the duplicate invoice check can cause performance to degrade

•We had significant differences in response time for entities with the duplicate invoice check active

•OSS note 389359 gives instructions for creating an index on table BSIP. Fields in the index are dependent on the configuration settings

Performance in Duplicate Invoice Check

•SAP delivers an index for table RBKP that should be activated when the duplicate invoice check is activated

•Index is delivered inactive

•The duplicate invoice index for reference number is RBKP_2

•RBKP_2 contains reference document number,

vendor number and company code

Evaluated Receipt Settlement

•We had been using traditional ERS in several entities (MRRS)

•Found that we needed to perform maintenance on some existing ERS invoices before existing entities could begin to execute LIV-ERS (MRRL)

•Update terminated errors with a short dump occurred if the maintenance was not performed prior to first LIV-ERS run


• Maintenance steps prior to first LIV-ERS run

1. Transaction code MRRS Traditional ERS

2. Select ‘test mode’ and execute

3. Display list ‘Transacts. not to be invoiced’

4. Most errors can be eliminated by correcting the source of the error (ie ‘PO item contains no tax code’)

5. Invoices with the error ‘ERS qty larger than qty to be invoiced’ can cause the update terminated error


• The steps for invoice with the error in #5 are as follows:

1. Select the checkbox for these invoices

2. Select the ‘Exclude from ERS’ button (F5)

3. Green arrow back and select ‘Yes’ when the message ‘Should the selected line items be excluded from ERS’ is displayed

• These invoices have already been fully posted

• Our goal was to have no transactions that could not be invoiced before switching to LIV

Authorizations in LIV-ERS

•Authorization for company code is not checked in transaction code MRRL

•Users can post invoices in multiple company codes if they enter vendor number as the only selection

•This was an issue for us because we use ERS for intercompany invoicing and vendors are shared by multiple company codes

•There is no indication to the user that documents are being created in multiple company codes


•OSS note 399953 provides instructions on including object F_BKPF_BUK in transaction code MRRL

•Instructions in the note call for creating an FI validation that initiates the authorization check

•In addition to MRRL, company code is not included in authorization checking in transaction codes MIR4, MR8M, MRIS, MRKO, MRBR


•Transaction code OB28

•Validation created at document header level and assigned by company code

•Added additional step to existing FI validation


•Prerequisite is transaction code

•We included MRRL, MRKO, MR8M and MRBR



•Authorization check is done through user exit

•The name of the user exit is entered as the check

•The system calls the user exit for a true condition in the prerequisite

in LIV-ERS


•Created custom error message in class ZZ

•Message displays company code that causes violation

•E message type stops FI posting

in LIV-ERS


•Code is added into standard form-pool program in GCX2

•Checks company code in document against user’s authorizations

•B_RESULT passes the results of the check back to the validation

in LIV-ERS


•Error message is displayed in standard LIV log

•Hard error so it cannot be bypassed

•Message is also displayed for a test run

in LIV-ERS

Line Layouts in LIV

•Display variants can be created in LIV to facilitate data entry

•Used to reposition or add/remove fields on the line item portion of the screens

•Transaction code for screen variant maintenance is OLMRLIST

•Variants are created by transaction code

•Variants are available to all users once they are activated

Line Layouts in LIV

•Columns can be dragged and dropped on variant screen

•Fields can be set to invisible

•Last variant used will remain as default for users

in LIV-ERS

Performance with LIV

•Performance was the biggest issue with the introduction of LIV

•ERS performance was improved in LIV

•Response times of online screens were substantially longer with LIV screens

•We recommended that users turn on both the PO structure and the worklist display in MIRO

•OSS note 158159 is a comprehensive note that covers all aspects of LIV performance

Performance with LIV

• SAP delivers four inactive indexes for table RBKP that should be considered for LIV

1. Invoice Overview (transaction MIR6)

2. Reference, vendor, company code for duplicate invoice check

3. User, invoice document status, IV type for invoice overview (transaction MIR6)

4. Invoice document status, vendor for invoice verification in background (program RMBABG00)

Miscellaneous

• Cannot enter baseline amount for discounts in MIRO

• Cannot use material document as a reference in MIRO

•Reversing a logistics document in MR8M does not automatically reverse the accounting document – OSS 94888

•Parking function for invoices in LIV is a menu item in MIRO

•Changing company code in MIRO is a menu item

Current Status of LIV at Molex

•All entities have been converted to LIV

•Performance issues have been basically resolved

•Applied up through hotpack 40 for release 4.6C with no significant issues

Thank you for attending!Please remember to complete and return your evaluation form following this session.

Session Code: [4212]

Documents

Migrating To LIV in 4.6C. Agenda I. Overview of Molex and SAP implementation II. Approach to migrating to LIV III. Master data and configuration IV. Lessons