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Multinational Corporations Model Company

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 Model Company?  Because this is the most important “foundation” 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.

If you are not familiar with SAP Model Companies 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 Multinational Corporations Model Company:

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

 

 

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

 

1  Multi-country

Some Model Companies 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 MC is already built for 29 countries with more countries planned. 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 other SAP Model Companies

Nearly all SAP Model Companies and Best Practices are built to work together. They are compatible. This allows SAP to assemble them to order. You can get a combination of a multi-country baseline solution and extra industry or Line of Business (LOB) specific content.

3  Fast

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

4  See Scope before you Buy

You can look at detailed documentation of the scope items in the 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 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 MC, 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 Best Practice business processes.

The model company is currently based on SAP on-premise Best Practices for version 1809. It will be updated for version 1909 in the near future.

I hope you found this blog informative.

Amin Hoque
Enterprise Architect at SAP Digital Business Services UK

2 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 three 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 is used most frequently and provides complete flexibility and control. Once the new client is available, configuration is keyed from scratch using the sandbox system as a reference.

      Kind regards

      Amin Hoque.