6 Best Practices for Setting Up Retention Policies in SAP

Establishing effective data retention policies in SAP is essential for organizations to comply with legal, regulatory, and business requirements. A well-configured effective retention policy not only helps meet compliance standards but also enhances operational efficiency and data security.

Here are six best practices for setting up SAP retention policies:

1. Identify Data Types and Business Needs

The foundation of any drafting your policies is understanding the types of data your SAP systems handle. Begin by segmenting your data into categories such as financial records, customer information, employee data, and transactional data. This will help you understand the different regulatory and business requirements for each group.

Also engage key business stakeholders to ensure your retention policies align with both internal business objectives and external legal obligations.

2. Leverage SAP Information Lifecycle Management (ILM)

SAP ILM provides a robust framework for managing data retention policies automatically and efficiently. It enables organizations to define rule-based retention policies that apply to specific data sets based on factors such as time frames, regulatory needs, or business importance.

It also supports legal holds, which are essential during audits, litigation, or investigations. When legal holds are activated, the system ensures that relevant data is preserved and not deleted or modified until the hold is lifted.

Explore more about SAP ILM.

3. Ensure Compliance with Global and Industry-Specific Regulations

Companies operating across different regions must be aware of varying legal requirements governing data retention. Regulations such as GDPR, SOX, HIPAA, and local tax laws mandate specific retention periods for different types of data.

To meet these diverse requirements, it’s essential to customize SAP retention policies for different regions and business units.

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4. Automate Archiving Processes

Automating the data archiving process ensures that data is managed efficiently throughout its lifecycle. Data that needs to be retained for long-term storage but is no longer required for daily operations can be moved to more cost-effective secondary storage.

Explore the benefits of automated archiving and scheduling with SAP Data ASSIST by Auritas.

5. Implement Audit-Proof Solutions

Maintaining an audit trail is crucial for proving compliance with regulatory requirements. For that, companies can automate the logging of all actions taken on data. This creates a traceable record of when data was archived, deleted, or placed on legal hold. This is particularly important in industries such as finance or healthcare where regular audits are common.

6. Test and Monitor Retention Policies

Before deploying SAP retention policies in a live environment, conduct test runs to ensure that the correct data will be retained, archived, or deleted as intended. Simulating retention scenarios helps verify that policies are functioning correctly and reduces the likelihood of errors once the policies are active.

Additionally, regularly review and update retention policies to adapt to changes in regulatory requirements, business needs, or evolving industry standards.

By following these best practices for setting up SAP retention policies, organizations can effectively manage their data and minimize risks. Leveraging tools like SAP ILM allows for the creation of automated, customizable retention policies that address the specific needs of different data types and business functions, ultimately enhancing data security and operational efficiency.

Discover how SaskPower achieved 40% reduction in the database, ongoing growth control, and legal and regulatory compliance.