What Is an SAP Roll-Out?

In short: what is an SAP roll-out?

An SAP roll-out is the extension of an SAP solution running at one company to new companies, plants or countries on the basis of a defined template (core template). Processes are not designed from scratch: the common processes and settings in the template are kept, and only local differences are handled as additions. These differences are not limited to legal requirements; mandatory business requirements are also subject to fit-gap analysis and template governance.

Extending a project implementation, on the basis of a defined template and in line with the scenarios already running within an established SAP solution at certain locations of a company or group, to further locations in the same country or in other countries is delivered under "Roll-Out" project implementations.

In roll-out projects carried out at international companies, country-specific localisation can also be performed where necessary, on top of the roll-outs delivered in different countries from the master template.

With its team of experienced consultants, Montag determines accurately whether the scope of the template meets local needs and develops the most suitable solution model for each roll-out project. It is able to complete roll-outs at a large number of locations in a short time.

In this way, Montag ensures the comparability and central control of data produced at different locations through standardised, streamlined process flows. Running successful roll-out projects at a lower implementation cost than projects started from scratch, Montag helps organisations achieve significant reductions in IT and management costs through a centralised structure.

The difference between an SAP implementation and a roll-out

Both types of project take SAP live, but their starting points differ:

• Starting point: In an implementation, processes and system settings are designed for the first time. In a roll-out, there is a working template, and most design decisions have already been made.
• Analysis method: An implementation starts with a comprehensive design exercise. In a roll-out, the analysis focuses on finding where the new location departs from the template (fit-gap).
• Change management: In a roll-out, every local request is first assessed with the question “a change to the template, or a local extension?” Every local exception that breaks the template makes subsequent roll-outs harder.
• Time and cost: Because the design is not repeated, a roll-out can generally progress faster than a project started from scratch; however, it is not guaranteed to take less time than the initial implementation. The duration depends on the number of locations, localisation and integration needs, data quality and the scope of data conversion.

An SAP roll-out project step by step

Although the details vary from company to company, a roll-out project generally goes through the following steps:

• Template review and template governance: It is clarified which processes and settings are fixed globally and which can be adapted locally, and how changes to the template will be approved is defined.
• Fit-gap analysis and sign-off: The new location's legal, tax, language, banking and reporting requirements are compared with the template; the differences are listed and approved.
• Localisation, configuration and integrations: A new company code and organisational units are created; country-specific tax and legal reporting settings, local bank integrations and other system integrations are set up.
• Data migration: Customer, supplier, material and fixed asset master data, together with open items, inventory, bank accounts and opening balances, are migrated, and the data migration is reconciled.
• Testing and training: Template processes are tested with local scenarios; integration tests and user acceptance testing (UAT) are carried out, and users are trained on their own processes.
• Go-live and support: The cutover plan is executed; during the hypercare period that follows go-live, the first financial period-end close and its controls are monitored closely.

These steps can also be mapped to the project phases of the SAP Activate methodology. Where there are several locations, the go-live can take place in a single step (big bang) or in waves, in which locations are taken live in groups. The wave approach allows the lessons from each wave to be carried into the next.

Finance topics that need the most attention in a roll-out

In roll-out projects, finance is one of the areas where the template comes under the most pressure, because this is where legal requirements vary most from country to country. The main topics are:

• Chart of accounts: How will the need for a local statutory chart of accounts be met while the group chart of accounts is kept? The mapping between the global/operational chart of accounts and the Turkish Uniform Chart of Accounts (THP) is resolved, depending on the system's deployment model (on-premise, private or public cloud), with a local alternative chart of accounts, account mapping or a suitable reporting design.
• Parallel accounting: How will different valuations for local legislation and group reporting (IFRS) be kept apart in the same system? In the design, the ledger and the accounting principle are treated separately: a parallel ledger or a suitable accounts approach can be used for local accounting principles and IFRS, and valuation, depreciation, exchange rate differences and period-end postings are designed according to the accounting principles.
• Tax and legal reporting: Country-specific tax calculations, statutory books and electronic document requirements are examined separately, according to the project scope, together with SAP's localisation coverage for the country concerned.
• Intercompany transactions: The new company's intra-group sales, service and financing transactions must be linked to the intercompany processes in the template; otherwise the reconciliation burden in consolidation increases.
• Banking and payments: Payment and account statement integration with local banks often has to be rebuilt; a central bank communication infrastructure simplifies this work.
• Treasury and cash visibility: The new company's cash position and financial risks should be included in the group view from day one.

When these topics are designed correctly in the template from the outset, each new location joins the same financial data model, and comparable reporting from the centre becomes possible.

The same template logic also works for finance and treasury solutions: a model designed correctly once can be applied again to other companies, and when a new company or bank is added, the design is not done from scratch but added on top of the existing model. You can read about connecting group companies to a central treasury model in the group treasury and cash flow case study, and about bringing the payments of foreign subsidiaries together in a single bank communication channel in the Multi-Bank Connectivity case study.

Let's plan your roll-out project together

The answers to the following questions are a good starting point for preparing for a first meeting:

• Is your current SAP template defined in writing? Which processes are global, and which are local?
• Which companies, plants or countries does the roll-out cover, and in what order will it proceed?
• Are the legal reporting, tax and banking requirements at the new locations known?
• Does the roll-out coincide with another transformation, such as an S/4HANA migration?

We cover the legal requirements specific to Türkiye in our SAP Localisation article. You can explore our services in finance, treasury and reporting, and get in touch with us to discuss your roll-out plan.

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