[ Results Analysis (RA) conversion steps

Raj Thyagarajan & Karen Szu – Lockheed Martin

[ Introduction - Company
Missiles and Fire Control (MFC) is
a Business Unit of Lockheed Martin

MFC develops, manufactures, and supports

advanced combat, missile, rocket and space
systems for military customers that include the
U.S. Army, Navy, Air Force, Marine Corps,
NASA, and dozens of foreign nations.

The Lockheed Martin Missiles and Fire Control

(MFC) company is one of six companies that
comprise the Lockheed Martin Electronic
Systems business area.

http://www.lockheedmartin.com/us/mfc.html

Real Experience. Real Advantage.

[ Business Case Scenario
 Company A has run RA one way for about 14 years and when
Company B merged from legacy, the RA process was required
to change to a new RA process (Company B’s process).
 What’s being presented
 Project Systems RA
 Only one contract type is demonstrated (FIXED or POT)
 More focus on the conversion steps
 Less focus on the RA configuration

Real Experience. Real Advantage.

[ Current before RA picture-ROS 10%
Project A Profit Ctr A
Sales $100 Sales $100
Cost $20 Cost $20

Current after RA picture

Project A Profit Ctr A

Sales $100 Sales $100
Cost $20 Cost $20
Undelivered $70
Cost (4xxxxx)

Real Experience. Real Advantage.

[ New Process RA picture-ROS 10% - requirement

Project A Profit Ctr A

Sales $100 Sales $100
Cost $20 Cost $20
ME cost to WIP -$20 ME cost to WIP -$20
COGS after RA $90 COGS after RA $90

Real Experience. Real Advantage.

[ Steps to achieve New Process RA picture-ROS 10%

Project A Profit Ctr A

Sales $100 Sales $100
Cost $20 Cost $20
ME cost to WIP -$20 ME cost to WIP -$20 Custom Code 1
(499998) (499998)
New RA $90 New RA Key
(499011)
Custom Code -$90
Custom Code 2
(499011)
COGS (499211) $90 COGS (499211) $90 Custom Code 2

Real Experience. Real Advantage.

[ Some key RA configuration steps
 OKG1

 OKG2

 OKG3

 OKG4

Real Experience. Real Advantage.

[ Some key RA configuration steps (cont’d)
 SPRO

 OKG5

 OKG8

 OKG2 details

Real Experience. Real Advantage.

[ Implementation Steps
 Open CO periods for “Automat. WIP/results analysis” as far
back as needed (Auto RA) – OKP1(include manual as needed)
 Reverse RA for all periods/years – SAPKKA13 (program)
 Ensure FI period is current – OB52
 Post RA reversals to FI via project settlement – CJ88/CJ8G
 Validate RA accounts as needed
 Close CO periods to make current
 Change RA keys for all conversion projects
 Change plan data if applicable – CJR2
 Make any one- time manual entries if applicable (FB50-499998)
 Run catch up RA – KKA2/KKAJ and save
 Analyze RA and settle to FI CJ88/CJ8G 9

Real Experience. Real Advantage.

[ Implementation Steps-OKP1

10

Real Experience. Real Advantage.

[ Implementation Steps-SAPKKA13

11

Real Experience. Real Advantage.

[ Implementation Steps-SAPKKA13

12

Real Experience. Real Advantage.

[ Implementation Steps
 Open CO periods as far for “Automat. WIP/results analysis”
back as needed (Auto RA) – OKP1
 Reverse RA for all periods/years – SAPKKA13 (program)
 Ensure FI period is current – OB52
 Post RA reversals to FI via project settlement – CJ88/CJ8G
 Validate RA accounts as needed
 Close CO periods to make current
 Change RA keys for all conversion projects
 Change plan data if applicable – CJR2
 Make any one- time manual entries if applicable (FB50-499998)
 Run catch up RA – KKA2/KKAJ and save
 Analyze RA and settle to FI CJ88/CJ8G 13

Real Experience. Real Advantage.

[ Implementation Steps-CJ02

14

Real Experience. Real Advantage.

[ Implementation Steps
 Open CO periods for “Automat. WIP/results analysis” as far
back as needed (Auto RA) – OKP1
 Reverse RA for all periods/years – SAPKKA13
 Ensure FI period is current – OB52
 Post RA reversals to FI via project settlement – CJ88/CJ8G
 Validate RA accounts as needed
 Close CO periods to make current
 Change RA keys for all conversion projects
 Change plan data if applicable – CJR2
 Make any one- time manual entries if applicable (FB50-499998)
 Run catch up RA – KKA2/KKAJ and save
 Analyze RA and settle to FI CJ88/CJ8G 15

Real Experience. Real Advantage.

[ Implementation Steps-CJR2

16

Real Experience. Real Advantage.

[ Implementation Steps
 Open CO periods for “Automat. WIP/results analysis” as far
back as needed (Auto RA) – OKP1
 Reverse RA for all periods/years – SAPKKA13 (program)
 Ensure FI period is current – OB52
 Post RA reversals to FI via project settlement – CJ88/CJ8G
 Validate RA accounts as needed
 Close CO periods to make current
 Change RA keys for all conversion projects
 Change plan data if applicable
 Make any one- time manual entries if applicable (FB50-499998)
 Run catch up RA – KKA2/KKAJ and save
 Analyze RA and settle to FI CJ88/CJ8G 17

Real Experience. Real Advantage.

[ Implementation Steps-FB50

18

Real Experience. Real Advantage.

[ Implementation Steps-KKA2

19

Real Experience. Real Advantage.

[ Implementation Steps-CJ88/CJ8G

20

Real Experience. Real Advantage.

[ Implementation Steps-Custom Code 2

21

Real Experience. Real Advantage.

[ Learning Points
 Full reversal of old RA process or partial (depends on process)
 Open CO periods as far back as needed (Auto and manual RA)
 RA is an FI only posting
 Beware if the FI only account used has been inadvertently
converted to a cost element
 Results analysis stored in CO table (COEPB)
 Results analysis is a two step process (RA and settle)
 Moving regular costs to WIP and then posting COGS via RA
may improve performance in addition to convenience of
analysis (RA has to read only one cost element as opposed to
many)
22

Real Experience. Real Advantage.

[ Best Practices
 Understand the RA processes previously used and ascertain if
any manual entries occurred (may or may not have to
reversed)
 Reverse using SAP functionality and use test run to confirm the
requirements
 Configure the new RA keys and test them well in advance
 Exercise the methodical steps in a test instance before
production

23

Real Experience. Real Advantage.

[ Key Learnings
 Understand the old RA process and postings
 Test the new RA process well in advance
 Test the mass conversion in a test instance
 Get concurrence from Accounting
 Pick the right month to implement the conversion
 Use the first half of the month to convert to give enough time
before month end close
 SAPKKA13/CJ88 two step RA reversal process
 Carefully pick the right month and ensure sufficient time for
validation
 Methodology can be used on all contract types
24

Real Experience. Real Advantage.

[ Presenters Contact Info
 Raj Thyagarajan (nagaraja.thyagarajan@lmco.com)
 Karen Szu (karen.szu@lmco.com)

25

Real Experience. Real Advantage.

[
 Thank you for participating.
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For ongoing education on this area of focus, visit the
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]
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Real Experience. Real Advantage. 26