[ 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 Bs process).
Whats 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
Cost (4xxxxx)

$70

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
(499998)

-$20

ME cost to WIP
(499998)

-$20

Custom Code 1

New RA
(499011)

$90

New RA Key

Custom Code
(499011)

-$90

COGS (499211)

$90

COGS (499211)

$90

Custom Code 2
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 (contd)

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

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

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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

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Real Experience. Real Advantage.

[ Presenters Contact Info

Raj Thyagarajan (nagaraja.thyagarajan@lmco.com)
Karen Szu (karen.szu@lmco.com)

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Real Experience. Real Advantage.

Thank you for participating.

Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the
Year-Round Community page at www.asug.com/yrc

Real Experience. Real Advantage.

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