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Multinational Corporations Model Company

Updated: May 27 2020

The SAP Model Company for Multinational Corporations will accelerate SAP S/4HANA ERP implementation projects saving time and money.  Why a blog about one specific SAP Model Company?  Because this is the most important “foundation” SAP Model Company and is positioned by SAP in a majority of our new implementations.  SAP believe that customers and partners can achieve significant savings using this Model Company to accelerate the start of a project.

The SAP Model Company is available for SAP S/4HANA on-premise and SAP S/4HANA Cloud extended edition. In both cases, it is possible to take the configuration into a development system and hence a QA system and production system in addition to sandboxes.  See my blog on SAP S/4HANA deployment options.

If you are not familiar with SAP Model Company services and and SAP Best Practices you should read this blog first.

https://blogs.sap.com/2019/06/03/what-is-the-difference-between-sap-best-practices-and-sap-model-companies/

Here is a one pager on the SAP Model Company for Multinational Corporations:

https://www.sap.com/documents/2019/05/58ea6f25-4b7d-0010-87a3-c30de2ffd8ff.html

 

 

SAP provides many SAP Best Practices and SAP Model Company services and some other partners and organisations provide their own “template” solutions for SAP.  Why is the Multinational Corporations Model Company unique and why is it your best choice when starting with SAP S/4HANA?  Here are 10 reasons.

 

1  Multi-country

Some SAP Model Company services and template solutions are built for just one baseline country e.g. USA. This means that you must localise the configuration for each country in your project scope adding cost to your project.  Multinational Corporations Model Company is already built for 29 countries with 42 countries available in February 2020. Just select which countries you need.  It includes many localisations for statutory requirements in each country. These are typically for finance business processes.

2  Assemble to Order with SAP Model Company

Nearly all SAP Model Company services and Best Practices are built to work together. They are compatible (or inter-operable). This allows SAP to assemble them to order. You can get a combination of a multi-country baseline solution and one industry Model Company and/or Line of Business (LOB) Model Company services.  See the Model Company navigator: https://www.sap.com/documents/2019/07/4cac9c3e-597d-0010-87a3-c30de2ffd8ff.html

3  Fast

SAP can set up the model company for you very quickly. This means that your organisation does not need to “activate” SAP Best Practices and up-skill people on how to do this.

4  See Scope before you Buy

You can look at detailed documentation of the scope items in the SAP Model Company before you purchase it.  Just look at the SAP Best Practice scope items in the Best Practice Explorer: https://rapid.sap.com/bp

5  Choose your Scope

The SAP Model Company includes a large set of scope items from the SAP Best Practices including many LoBs e.g. finance, sales, procurement, production planning, quality management, warehousing and supplier management.   When you purchase the Model  Company, you can select your scope.  For example, you can add scope options for content relating to S/4HANA features which have a separate special license.  Examples include: Advanced Cash Management  Advanced Credit Management and Advanced ATP. In SAP Best Practices, some scope items are not available for all countries.  The Model Company provides some of these missing scope items in some of the countries.

6  Multi-Language

The Model Company is currently available in 20 system languages.

7  Intercompany Processes

Currently the SAP Best Practices do not contain intercompany processes as standard. These are a very common business requirement and can be time consuming to set up. The Model Company provides a model solution with scope items for intercompany processes between two countries. You can then replicate this solution to other countries.  There are other optional scope items that are unique to the Model Company. For example Extended Asset Management.

8  Parallel Accounting and Currencies

When you buy the Model Company you can select your Group GAAP and two local ledgers for local GAAP. This is a common financial requirement in many projects. You can also select one group currency and local currencies per country.

9  Select your Fiscal Year Variant

When you buy the model company you can select a group fiscal year variant and a local fiscal year variant in the second local Ledger. Some organizations require this and it not possible through activating SAP Best Practices on your own.

10  Fiori Apps

The Model Company provides S/4HANA Fiori apps that are ready to run. These give you the latest SAP user interfaces that appear in the SAP Best Practice business processes.

The Model Company is currently based on SAP on-premise Best Practices for version 1909. Like other Model Company services, Multinational Corporations Model Company is updated at least once a year.  The main update comes about a quarter after the latest version of the SAP on-premise Best Practices.

I hope you found this blog informative.

Amin Hoque
Enterprise Architect at SAP Services UK

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8 Comments
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  • Hi Amin,

    Thank you for your informative post.

    I have a query on the deployment options for Business-As-Usual systems using SAP Model Company.

    Let us assume an organisation has purchased and configured SAP Model Company to jump-start a programme.

    What is SAP’s recommended option to build the rest of the systems (DEV, QA, PROD) in the landscape?

    Obviously, they would prefer:

    1. to re-use the configurations performed in the Model Company system, rather than re-key in to a vanilla DEV system.
    2. not to bring in the additional languages and activated function modules that are present in the standard Model Company, but not relevant for their business.

    Thanks in advance for your recommendations,

    Shaji

    • Hello Shaji

      Before configuration and development work starts in the Realize phase, the Development environment needs to be set up. There are 4 possible approaches:

      1. Re-use Sandbox. This approach is rarely used and is only feasible if the sandbox was set up and activated manually without a Model Company or an S/4HANA software appliance.
      2. Development system with SAP Best Practices. Set up a fresh S/4HANA development system. Create a new client and then import and activate selected SAP Best Practices using the SAP Solution Builder tool.
      3. Empty Development System. This approach provides complete flexibility and control. Once the new client is available, configuration is keyed from scratch using the sandbox system as a reference.
      4. Selective transfer of Sandbox. If a custom edition has been deployed, content can be selectively transferred from the sandbox into a development system or in some cases a “shell” copy of configuration can be transferred. SAP must know that this is the intention before setting up the sandbox.

      Kind regards

      Amin Hoque.

  • Hi Amin,

    Thanks for your post.

    I have a question on Model company deployment for SAP Cloud Ex. When a customer purchases an SAP Cloud Ex with MC,  What is SAP’s recommended option to build (DEV, QA, PROD) in the landscape? I am assuming initially a Sandbox system S/4HANA 1909 with Best practice activated and MC installed is provided by the SAP HEC team?

     

    Thanks in advance!

    Ahmad

    • Hello Ahmad

      The content from the multinational corporations model company often goes into the development system.  It Extended Edition it is called “Enterprise Management Layer”.  Currently other MC content is available in a sandbox only.

      Cheers

      Amin

  • Hi Amin,

    Very useful information about Multinational corporation Model company. Just wondering what is the main difference with Recommender and Per Industry Accelerators while Deployment.

    Recommender, yes it is used for selecting the Industry either one or more  (Assemble to order) but How about Per Industry

    Thanks & Regards,

    Vyomakesh Bharadwaj Racherla

     

    • Hello Vyomakesh

      The Recommender is now called a navigator. It is only helpful when selecting content for Assemble to Order.  Once you have bought a model company, all the industry specific content is available through SAP Solution Manager.

      Cheers

      Amin