Transcript Main Account Code Business Rules

Data Standards
Workshop
Why CGAC/SFIS?
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Complies with Authoritative Guidance (OMB-A127, TFM, CGAC,
NDAA, DoDFMR, FASAB, GPRA etc.)
Interoperability and transparency
Leverages COTS capability
Provides standard configurations that can be used across the
department to reduce system implementation costs
Allows for Standard Interfaces which reduces costs associated
with maintenance and testing
Improves the efficiency of maintaining business systems, thereby
reducing costly maintenance and translation of non-standard data
Enables decision-makers to efficiently compare similar programs
and activities across DoD and entire Federal Government
Provides decision-makers the level of detail they require for
information retrieval and auditability
Links execution to performance, budgetary resources, and actual
financial information
Standardizes financial reporting data across DoD
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SFIS Full Operational Capability
What does SFIS compliance mean?
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Includes compliance with the SFIS business rules and values in the
BEA.
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All 71 data elements in SFIS have specific business rules that address
syntax, usage, and relationships.
Fulfill IRB SFIS condition requirements for implementation plan and
checklist.
Configured all required SFIS data elements in the system
For a target accounting system, IRB certification requires an
implementation plan that not only includes dates on when you will be
compliant but it also requires an implementation meeting with the
Enterprise Integration (EI) Team.
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During this EI meeting, the system is evaluated for SFIS compliance
which includes a data element by data element assessment to ensure
that the program has implemented the SFIS business rules, values, and
standard configuration guidance.
Compliance with SFIS USSGL Transaction Library requirements and
DoD Standard Reporting Chart of Accounts.
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CGAC/SFIS Scoping Guidelines
Must address financial information which agencies interface to/from
OMB and US Treasury. Consistent agency-to-agency financial
information which applies to all agencies that do business on a
regular basis.
• Must be able to specify a clear and concise definition, usage
and business need
• Must be able to specify a minimum and a maximum length
• Must be able to specify a data type
• Must be able to specify an organizational steward to manage
the data element
• Must be able to specify an authoritative source
• Must provide a federal enterprise standard (not unique to one
agency)
• Must be mandatory or conditional not optional
• Must be able to specify relationships to other data elements
• Must minimize customization issues for compliant software
packages
• For each element, must have specific implementable business
rules that address syntax, usage, and relationships
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Validation Methodology
• For each data element ensure SFIS business
rules have been met
• For each data element ensure values are
present
• The SFIS standard configuration guidance has
been followed or if not
• For accounting systems, the OUSD, (C)
Standard Chart of Accounts has been
implemented
• For accounting systems, the system’s posting
logic is consistent with the USSGL SFIS
Transaction Library posting logic
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USSGL Transaction Library Overview
An enterprise-wide standard set of detailed general ledger
transaction requirements compliant with FASAB, OMB and
Treasury that link all USSGL budgetary, proprietary, and
memorandum accounts to specific business events.
FFMIA Compliance: Standardizing at the Transaction Level:
• Incorporates TFM posting business rules for applicable
transactions, which describe required posting
relationships among transactions (e.g., Posting
conditional “if / then” relationships).
• Eliminates the “guesswork” by providing a Treasury
standard set of acceptable business events
• Identifies the applicable SFIS data elements as
mandatory, conditional, derived, or N/A
• Subsets multiple transactions into similar business
events.
• Aligns financial statements in a standardized format
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Data Standards: Defining, Enforcing
and State of Compliance
First: DEFINE
Second: MEASURE
Third: PLAN
Fourth: IMPLEMENT
BEA Data Standards Definition and Enforcement
Full Implementation and Compliance
SFIS Planning and Compliance
SFIS
Measured, Audited and Enforced
RPIR
ERP A
ERP B
Feeder
System C
Feeder
System A
ERP D
PDS
CHRIS
Unit of
Measure
Fully and Clearly Defined
ERP C
Feeder
System B
Lack of Standards
Contributes to
Material Weaknesses
Implementation Plan Fully Defined
Failure to Implement
Contributes to “on the ground”
Logistics Problems
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Current State Challenges
Loss of controls due to separation of accounting transactions
from entitlement transactions
Reconciliation problems associated with FO/BO transactions and
out-of-system disbursements
Excessive complexity in systems environment due to single
function systems
Business processes built along functional and system lines rather
than along the lines of end-to-end processes
“Multiple versions of the truth” due to data duplication and
overlaps
No clearly defined Target Environment
• Relative scope of ERP and enterprise systems not clearly defined
• Lack of standard processes and data create SOA challenges
GAO DoD Business System Modernization Findings (5/08):
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Display little standardization (and thus interoperability)
Have multiple systems performing the same tasks
Exhibit data duplication and redundancy across multiple systems
Require manual reentry of data into multiple systems
Enterprise Need: Single version of truth, traceability to transaction,
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daily cash reconciliation and daily Status of Funds reporting
Cross Reference Table
PR/PR Line Number/PR Line Funding ID
PO/PO Line Number/PO Line Funding ID
PIIN/CLIN/SLIN
The Procure-to-Pay process as
currently implemented
PR
PR Line
Number
PR Line
Funding ID
Purchase
Requisition
Purchase
Order
Disbursing
System
Unblock
Invoice
PIIN-CLIN-SLIN
Receipt
Validation From X-Ref
Goods
Receipt
Treasury
Disbursement
Disbursement
With Contract PIIN-CLIN-SLIN
Info Only
Invoice
Receipt
Expenditure
Blocked
Invoice
Use x-Ref
MATCH
From X-Ref
Contracting
Outside the
ERP
PR
PR Line
Number
PR Line
Funding ID
Confirmation
APVM
(Prevalidation)
PIIN
CLIN
SLIN
Receipt
Report
PIIN
CLIN
SLIN
Contract Writing
System
Manual
MOCAS System
Contract Admin
Contract Info
PIIN-CLIN-SLIN
EDA
Ready
To
Pay
File
Invoice
PIIN-CLIN-SLIN
Obligation
Validation
Goods Receipt
and Invoice
Receipt Outside
the ERP
Receivin
g
Activity
Receipt
Validation
By PIIN
CLIN SLIN
Contract Info
PIIN-CLIN-SLIN
Material
PIIN-CLIN-SLIN
Contract Info
PIIN-CLIN-SLIN
The Vendor
PPVM
(Prevalidation)
Invoice
PIIN-CLIN-SLIN
MOCAS System
Entitlement
Invoice
PIIN-CLIN-SLIN
WAWF
Invoice
PIIN-CLIN-SLIN
WAWF
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Probability multiplies
Possible Point of Failure in End To End Purchase to Pay Process
Individual Step Success Rate
Purchase Requisition to SPS
90.00%
Purchase Requisition to Cross Reference Table
90.00%
SPS to Purchase Order
90.00%
SPS to Cross Reference Table
90.00%
Purchase Order to Cross Reference Table
90.00%
SPS to Vendor
90.00%
SPS to EDA
90.00%
EDA to MOCAS
90.00%
WAWF to MOCAS - Receipt
90.00%
WAWF - Shipping Notice to ERP
90.00%
Shipping Notice Mapping to Cross Reference Table
90.00%
WAWF to MOCAS - Invoice
90.00%
WAWF to PPVM - PreValidation
90.00%
WAWF to APVM - PreValidation
90.00%
APVM to Cross Reference Table
90.00%
Accounting System to APVM
90.00%
APVM to MOCAS - Validation
90.00%
MOCAS to Disbursing System
90.00%
Disbursing System to Treasury
90.00%
Disbursement Feedback to ERP
90.00%
Percentage of Successful End To End Purchase To Pay
Transactions
12%
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Why end to end business processes?
Business and data flow end-to-end – not in silos
Capturing data at the source and retaining its integrity
end-to-end is the only way to achieve logistics
visibility and financial auditability
Consistent Application of Business Rules
Achieve True Business Process Re-engineering
The system is not about the technology, but rather
about the people, processes and then the
technology as an enabler to complete the end to end
business process
An effective and efficient end-to-end business process is the solution
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– not technological enablement of existing processes
End-to-End Business Flows
End-to-End Business Flows
Procure
Procure to
to Pay
Pay
• Execute Requisition
• Source Goods & Services
• Manage Contract
• Execute Purchase
• Perform Receipt, Acceptance & Return
• Process Invoice & Match
• Execute Disbursement
Plan
Plan to
to Stock
Stock
• Create Inventory Plan
• Determine Source
• Receive, Accept and
Warehouse Inventory
• Distribute and Pre-Position Inventory
• Perform Inventory Management
• Dispose of Inventory
Cost
Cost
Management
Management
• Establish Cost Accounting Procedures
• Develop Cost Methodology
• Perform Cost Assignment
• Perform Period End Close
• Develop Reports
Acquire
Acquire to
to Retire
Retire
Budget
Budgetto
to Report
Report
•Concept to Product
•Procure to Pay
• Placement into Service
• Manage Asset
• Dispose of Asset
• Perform Planning
• Perform Program Development
• Perform Budget Planning &
Formulation
• Distribute Budget
• Manage Budget
• Perform Reporting
Concept
Conceptto
to
Product
Product (R&D)
(R&D)
• Recognize Problem
• Define Capability
• Develop Product Concept
• Initiate Planning & Obtain Commitment
• Initiate Product Development
• Introduce Product
Proposal
Proposal to
to
Reward
Reward (Grants)
(Grants)
• Identify & Prioritize Needs
• Execution & Review of Grant Application
• Review & Award Grant Application
• Execute Grant
• Perform Management & Administration
Environmental
Environmental
Liability
Liability
• Identify Sites/Assets with
Environmental Liability
• Develop EL Cost Estimates
• Perform Environmental Cleanup,
Closure, or Disposal Action
• Report Environmental Liabilities
Market
Marketto
to
Prospect
Prospect
• Establish Marketing Plan
• Target Audiences
• Plan & Define Marketing
Campaigns
• Execute Marketing Campaigns
• Measure & Evaluates Marketing
Campaign Performance
Hire
Hire to
to Retire
Retire
• Manage Organization
• Acquire Human Resources
• Develop Human Resources
• Assign Human Resources
• Maintain Human Resources
• Separate or Retire Human Resources
Service
Service Request
Request
to
to Resolution
Resolution
• Identify Requirement
• Fund Requirement
• Source Service
• Schedule Service
• Diagnosis Repair
• Finalize Requirements
• Perform Service
• Close & Post Record
• Create Bill
• Return to Inventory or Use
Prospect
Prospect to
to
Order
Order
• Forecast Sales
• Generate Leads
• Negotiate Order
• Manage Accounts
• Service & Support Customer
Order
Order to
to Cash
Cash
• Manage Customers
• Accept Orders
• Prioritization of Orders
• Fulfill Orders
• Perform Distribution
• Manage Receivables
• Manage Cash Collection
Service
Service to
to
Satisfaction
Satisfaction
• Identify Requirements
• Establish Service Capability
• Provide Service
• Measure Customer Satisfaction &
Improve
Deployment
Deployment to
to
Redeployment/
Redeployment/
Retrograde
Retrograde
• Perform Planning
• Notify Organization
• Prepare for Deployment
• Execute Movements
• Perform Reception
• Execute In-Theatre Support
• Execute Redeployment and
Retrograde
• Execute Reset
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Updated: 3 May 2009
Material Weaknesses – DOD IG Report 2009
Linkage to End to End Processes
MW9
MW13
Reconciliation of
Nets Costs of Operations
to
MW2
Budget
MW10
Fund Balance
Statement of
with TreasuryBudget
Net Costs
to
Manage
Perform
Budget
Reporting
Report
Buyer and Seller
Perform
Planning
Perform
Program
Development
Perform Budget
Planning and
Formulation
Environmental
Liabilities
Distribute
Budget
MW12
Other
Accounting
Entries
MW1
Overarching:
DOD Financial Management
Systems
Buyer
Purchase
to
Pay
Execute
Requisition
Source
Goods and
Services
Manage
Contract
Intragovernmental
Eliminations
MW4
Inventory
Seller
MW4
Inventory
Manage
Customers
Accept
Orders
Prioritization
of Orders
Fulfill
Orders
Perform
Distribution
MW8
Accounts
Payable
Perform
Receipt,
Acceptance
& Return
Execute
Purchase
MW11
MW6
General Property, Plant
and Equipment
Process
Invoice and
Match
Execute
Disbursement
MW7
MW5
Govt Furnished
Operating Materials Material and Contractor
and Supplies
Acquired
Material
MW3
Accounts
Receivable
Manage
Receivables
MW11
Intragovernmental
Eliminations
Manage
Cash
Collections
Order
to 13
Cash
Enabling E2E Processes
Level 0
ENTERPRISE LEVEL
PURCHASE TO PAY
Enterprise
Level
END TO END BUSINESS PROCESS:
End to End Business Processes
Identifies
each major
process
area making
up the
E2EUP
process
Level
1
IDENTIFIES
EACH MAJOR
PROCESS AREA
MAKING
THE E2E
Execute
Requisition Execute
Requisition
Source
Source
Goods and
Goods and
Services
Services
Manage
Manager
Contracts
Contracts
Execute
Perform
Receipt
Perform Receipt
Process
Purchase
Purchase
Acceptance
Acceptance
Invoice and
and Return
Order
and Return
Match
Process
Invoice and
Execute
Match
Execute
Disbursement
Disbursement
Identifies process segments within major process areas
Level 2
IDENTIFIES PROCESS SEGMENTS IN EACH MAJOR PROCESS AREA
I
ß------------------------------------Operational Metrics--------------------------------à
MINIMUM DATA STANDARDS
ß---------------------------------Minimum BUSINESS
Data RULES
Standards---------------------------à
ß---------------------------------Business
Process
Rules-----------------------------à
OPERATIONAL
METRICS
STANDARD
SYSTEM
CONFIGURATION
ß------------------------------Standard System Configuration----------------------à
Level 3
Operational
Level
OPERATIONAL
LEVEL
Organization
specific process
a WITHIN
process
segment
ORGANIZATION
SPECIFICwithin
PROCESS
A PROCESS
SEGMENT
el III
Level 4
Level IV
COMPONENT SYSTEM IMPLEMENTATION
Component’s System Implementation
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P2P – E2E: Operational Metrics, Business
Rules and Minimum Data Standards
Execute
Requisition
Source
Goods and
Services
Manage
Contracts
Execute
Purchase
Perform
Receipt
Acceptance
and Return
Process
Invoice and
Match
Execute
Disbursement
OPERATIONAL METRICS
• Interest and Penalties Paid
• Timeliness of Reporting (Treasury)
• Cycle Time for P2P
• Timeliness of Payments
(Vendors)
• Reconciliation (Costs)
• Contract Lead Time
MINIMUM DATA
STANDARD (e.g.)
BUSINESS
RULES
• Troubled Disbursements
• Funds
Availability
• Approval of
Requisition
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•
Reqn Type
Reqn No.
Reqn Date
Reqn Name
Matl/Serv
Quantity
Price
LOA Info….
• Supplier
solicitation
compliant
with DFARS
• Contract
Actions in
accordance
with FAR/
DFARS
regulations
• Funds
Availability
• Receipt
Quantity not
to exceed
Order
Quantity
• Segregation
of Duties
• Prompt
Payment
Terms
• Solicitation
Type
• Sol Doc #
• Sol Doc Date
• Matl/Serv
• Quantity
• Price…..
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Contract #
Contract Date
Contract Type
Vendor Name
CLINs
SLINs
ELINs
Matl/Serv…..
PO Type
PO Doc #
PO Date
Vendor Name
CLINs
SLINs
ELINs
Matl/Serv…..
GR Doc #
FY
GR Date
Delivery Note
CLINs
SLINs
ELINs
Matl/Serv…..
Invoice Doc #
FY
Invoice Date
Delivery Note
CLINs
SLINs
ELINs
Matl/Serv…..
Schedule
Payee #
Payee Name
Payee Address
Payment
Amount
• Agency ID
• Type of
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Payment…..
BTA Center of Excellence (COE)
COE will be a working prototype
 Show case proof-of-concepts using the latest versions / enhancements of the
software
 COE will use real world data ( e.g., Funding, Organization structures, Sample
Contract data)
COE will be a test bed for solving common E2E Process problems
 Test Bed allows requirements validation, evaluation of potential solutions before
implementing it
COE will show the “realm of the possible” for E2E processes using ERP
functionality
 Enable senior decision makers to understand ERP Capabilities and formulate
“vision”
 Mitigate risks associated with system implementation by providing a uniform
starting point for configuration
COE will prepackage Business Process documentation
 Leverage reusable documentation and configuration to adapt to a component’s
specific needs
 COE content will be documented with analysis of different options, rationale and
recommendation
COE will provide a uniform starting point for configuration to comply with:
 Provide documentation on how to configure the system to implement SFIS, RPIR
requirements
 BEA Compliance
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Backup
 Backup Slides
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Current Financial Visibility
Challenge
AIR FORCE OPERATIONS AND MAINTENANCE
DEPT
57
FY
6
APPR SYM FC
3400
30
FY
6
OAC
47
OBAN
5A
RC/CC
110704
BA
04
EEIC
ADSN ESP
582.AA 503000 AB
PE
72806F
FCC
ARMY OPERATIONS AND MAINTENANCE
DEPT
21
FY
6
BSN
2020
OA
57
ASN
3106
AMSCO
EOR
325796.BD 26FB
MDEP FCA
QSUP CA200
SDN
GRE12340109003
APC
AB22
UIC
FSN
W0RNAA S34030
NAVY/MARINE CORPS - GENERAL
DEPT
17
FY
7
APPN
1105
SUBHEAD
0000
OC
026
BCN SUBALLOT AAA
TTC
63400 3
063340 1D
PAA
000151
CC
00560852000
• Lack of financial data standards across the Services
impedes the ability to analyze performance on an
enterprise-wide basis
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SFIS – Data Elements
Appropriation Account
Information
Budget Program
Information
Transactional
Information
Trading Partner
Information
Department Regular
Department Transfer
Main Account
Sub Account
Apportionment Category
Receipt Indicator
Sub Classification
Period of Availability
Reimbursable Flag
Fund Type
Advance Flag
Authority Type
Availability Time
Borrowing Source
Definite Indefinite Flag
Public Law Number
Program Report Code
TAFS Status
Year of Budget Authority
Direct Transfer Agency
Direct Transfer Account
Transfer To From
Deficiency Flag
Availability Type
Expiration Flag
Financing Account Indicator
Budget Function/Sub-Function
Budget Activity
Budget Sub-Activity
Budget Line Item
Major Acquisition
Object Class
Contingency Code
BEA Category Indicator
Line of Business
Program
Transaction Type
USSGL Account Number
Debit/Credit
Begin/End Indicator
Transaction Effective Date
Transaction Post Date
Transaction Amount
Exchange/Non-Exchange
Indicator
Custodial/Non-Custodial
Indicator
Foreign Currency Code
Country Code
Entity/Non-Entity Indicator
Covered/Uncovered Indicator
Current/Non-current
Demand Unique Identifier
Business Event Type Code
FMS Customer Code
FMS Case
FMS Line
Federal/Non-Federal Indicator
Trading Partner Indicator
Business Partner Number
Organization
Information
Organization Unique Identifier
Agency Disbursing Identifier
Agency Accounting Identifier
Cost Accounting
Information
Transaction Quantity
Asset Type
Asset Unique ID
Funding Center Identifier
Cost Center Identifier
Project Identifier
Activity Identifier
Work Order Number
Cost Element Code
Unit of Measure Code
MEPR Code
SFIS Webpage http://www.bta.mil/SFIS/sfis_resources.html
SFIS Library https://beis.csd.disa.mil/beis-xml/sfiscombo.xml
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Common Government-wide Accounting
Classification (CGAC)
• Background
• 2007 draft ConOps
• CGAC 2.0
• Scope, Purpose, Goal
• Changes (Additions, Deletions, Modifications)
• Way Forward
• Authoritative Guidance (OMB A-11, A-127, TFM)
• Implementation
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Authoritative Guidance for Arriving at SFIS Terms
National Defense Authorization Act
Treasury Financial Manual
OMB Circular A-127
DoD Financial Management Regulation (FMR): Volume One
Chapters Four and Seven
FASAB
GPRA
Office of Federal Financial Management (OFFM)
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Approach to Business Transformation
Enables decisionmaking
Efficiency of maintaining
business systems
reduces costly
maintenance and
Provides an Audit translation of non-standard
data
trail
BEA 3.1 – Financial Reporting
Legacy Accounting
Legacy Business Feeder
Target Business Feeder
Target Accounting
Appropriation
Business Partner
SFIS Components
Budget
Cost Accounting
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BEA 4.0 – High-Level Cost Accounting
BEA Updates
Organization
BEA 4.1 – Low-Level Cost Accounting
BEA 5.0 – Maintenance
Deployment Categories
SFIS Benefits
Standardizes
financial reporting
data across DoD
Transactional
Example of SFIS Business Rules and
Values Source (Main Account Code)
Main Account Code Business Rules:
 A Main Account Code must be associated with one Fund Type Code.
 Each Main Account Code must be associated with only one Budget
Function/Sub-Function Code.
 Each accounting system must store and maintain Department Transfer
Code values.
 Main Account Code must be 4 numeric characters. ex. 0740
 Main Account Code must be used for accounting classification,
general ledger posting, financial reporting, budgetary control, and
funds control.
 Each accounting system must store and maintain Main Account Code
values.
 A Main Account Code must be established in the accounting
classification structure when the appropriation is signed by the
President and will be maintained until available funding has been
canceled.
Main Account Code Values Source:
 http://fms.treas.gov/fastbook/
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SFIS Governance Structure (Core
Team)
OUSD (C)
Missile
Defense
Agency
• ODUSD
Defense Finance and
Accounting Service
Defense
Logistics
Agency
Special
Operations
Command
(P&B)
OUSD (AT&L)
• ODUSD
(I&E)
• ODUSD (DCFO)
• ODUSD (MR&MP)
•ODUSD (BIO)
• OUSD (ARA&RA)
OSD (PA&E)
OUSD (P&R)
Business
Transformation Agency
(Coordination and Support
Only)
Department
of the Air
Force
United States
Marine Corps
Department
of the Army
Department
of the Navy
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