Migration strategy for legacy RE Contracts which is eligible for deferrals

[amarnath_r_dasa]

Hello RE Experts

I have a real time requirment for Cutover Strategy.

My customer is migrating to SAP REFX and has several contracts on legacy system which are eligible for deferral accounting.

I need to have a strategy of migrating them to SAP.

Example:

Contract Tenure valid from 1.1. 2000 upto 31.12.2020.

Remaining Tenure is 6 years.

Current Contract Value is 1000000 which needs to be deferred for remaining tenure of 6 years

How do I migrate this contract to SAP and run a deferral program for remaining tenure?

My recommendation was:

1. Close the contract in the legacy system

2. Assuming the Golive is on 1.04.2014

3. Create a new contract in SAP from the date of golive and give the tenure as 31.12.2020.

4. Run the deferral progrom only for the remaining 5 years 8 months.

Pls advise

[former_member196871]

Hi Amarnath,

The migration strategy for the legacy contract will depend on each individual contract, depending how and when the payment is made with respect to your go-live date. If the next advance payment is to be made from the the month of go-live then your recommendation is correct.

You would need to reverse/ ignore previous deferred entries from your legacy system and re-post them in the RE-FX system.

Please refer the SAP note 980104 - Migration: Handling of accrual/deferral data , for any further details.

Also, adding to your recommendation, you may enter the contract start date and end date as the actual tenure i.e. 01.01.2000 to 31.12.2020 and enter the 'First Posting From' Date as the date of go-live.

Best Regards,

Hardik Sharma