Over 20 years in China – First SAP Partner on the Mainland

The success of a rollout project is essentially characterized by the competence of the roll-out partner, the use of proven rollout methods and the availability of competent international support. The procedure of an international rollout requires the confrontation with very specific technical and organizational challenges in the project work and socio-emotional problems, which result from a change in the structures and working methods for the affected employees. We have over 20 years of experience from numerous successful rollout projects and a proven template-based transformation rollout method.

Webasto: HCM Roll-Out in 9 Different Chinese Provinces

To meet the increasing demand of the local market, the company was playing with the idea of an SAP HR project for a long time, aiming at improving HR data as well as time management via rolling out SAP templates from Germany to the Chinese branches. Adding to the complexity of the project, regional labor laws, salary, holiday leave and allowance structure differs entirely in each of these regions and respective branches. The successful implementation of the HR module brought a myriad of benefits: the realization of informational management magnificently enhances the standardization of processes and management.

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Global Template

Local Requirements

Bridging the GAAP

Many of our international customers are using SAP already in their headquarters and other countries. These systems can be used as a reference or template for the SAP introduction in China. The usage of these existing processes can simplify the project and also unify the way different subsidaries work worldwide. However, such a roll-out is not just a translation of the system into Chinese. Various legal and local requirements have to be implemented. With our rich experience in this kind of projects we know where the differences are and how to ensure a high system acceptance in China.

Battenfeld-Cincinnati: Rollout with an Adjusted Template

battenfeld-cincinnati’s global group was already using SAP as a unifying system, however with limited functionality which could not meet the enterprise’s demands. In China, they opted to implement SAP according to their adjusted global template,so that it complies with Chinese legal and local requirements.

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Navigating Local Legal Requirements

Foreign companies in China have to observe both the legal requirements and the company standards of their headquarters. The Chinese accounting standards define three mandatory accounting reports which are the basis to get the approval by the Chinese authority for the financial and ERP systems. The enterprises have to submit financial reports such as balance sheets, profit & lost statements, and cash flow reports. Furthermore, they have to define accounting fundamentals such as asset, revenue, expense, and profit.
Many Chinese business practices differ significantly from common international processes. Among other things, VAT already paid for returned goods can easily be reimbursed from the tax authorities. In China this process of getting this negative (so-called "red") VAT back is far more complex and therefore many customers choose to introduce their own process which balances future deliveries against it. Other examples for additional requirements are the two Chart of Accounts for internationally active companies, the interface to the Chinese "Golden Tax" system, or the taxation on free samples.

Are you planning to implement S/4 HANA?

A business division‘s duties often involves the sale or closing of business segments, such as plants or offices. Business data from the respective ERP and archive systems must be separated and transferred to a new system in an appropriate and consistent manner. When, for example, divisions are spun off or shut down, the data from the SAP software system must be removed and transferred to the new owner or insolvency administrator. Especially in companies that often move or sell divisions, IT should implement so-called carve-outs software.

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Rollout Methodology

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Business Process Analysis

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