Transcript Final Product: A Hybrid General Ledger

Lawson Roadshow
Preparing for July 1st
May 21, 2009
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Agenda
Lawson Project Overview: Phase One and Phase Two
Implementation of Phase One: Presentation by Deloitte Experts
Purchasing thru USC: Presentation by Clare Hansen
Medical Finance: Questions and Answers Session
Communications and Training Schedule
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Lawson Project Overview
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July 1st Implementation: Phase 1 Roll Out
Lawson General Ledger
• Data will feed from GE/Centricity (IDX), WEBBA (AIS) and University Payroll
(AISC2000) into Lawson to enable consolidated financial reporting for USC Clinical
Departments.
Lawson Asset Management
• Existing assets will be converted in detail, via the corporate asset transfer
agreements, and will follow the University capitalization policy.
• New assets will be identified at the time of purchase and subsequently recorded in
Lawson.
Lawson Human Resources
• Basic employee demographic data will be interfaced from University HR system
(AISC2000).
Standardized procurement process using USC Purchasing Services
Automated transfer of revenue information from IDX to Lawson General Ledger
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Future State: Phase 2 Functionality
Lawson Procurement
• An online procurement system including automated order placement, workflowenabled approvals, PO creation, goods/services receipts, accounts payable
• Opportunity to develop jointly with the hospital for one medical purchasing process
flow for all clinical locations
Lawson Accounts Payable
• Streamlined check creation process for patient refunds
Lawson Budgeting and Planning
• Will enable annual budget process to be done in Lawson and feed directly into the
University budget and payroll systems
• Provides enhanced tools and analysis for clinical budgeting
Lawson Activities Management
• Will enable tracking of financial entities at a greater level of detail than available in
the GL, e.g., by physician
Lawson Receivables / Billing
• Used to track non-IDX receivables and billings
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Evolving Functionality
Phase I
Phase 2
Reporting System Only
Transactional System
•
•
•
•
• Process transactions thru Lawson
All check disbursement thru USC
Purchasing thru USC
Payroll thru USC
Revenue billed thru IDX
Cash Basis Reporting
Accrual Based Reporting
• USC expense systems are cash basis
• No practice-wide collection data
available July 1 to value gross
charges
• Lawson procurement will create use of
Accounts Payable
• IDX install of Contracts Manager will
assist in charge valuation
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Final Product: A Hybrid General Ledger
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Final Product: A Hybrid General Ledger
USC/WEBBA
Lawson
Payroll
Integrated Financial Reports
Cash Management
Purchasing
System of Record
Patient Refunds
(Illustration of Final User Environment as of FY11)
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What’s Changing?
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Some of the changes you can expect in Finance (1 of 2)
Today
Tomorrow
Practice Plans maintain their own
general ledger using various systems
and software.
Medical Finance will maintain the
Practice Plans’ general ledgers.
• Journal entries and month end closing
will be performed by Medical Finance.
• Practice Plan personnel will be able to:
• Access Inquiry screens to view
account activity
• Access Reporting screens to
generate standard Balance Sheet
and Income Statement reports
Practice Plans write checks to pay
expenses and other bills.
• Practice Plans will submit check
requests through WEBBA, and USC
AP/Disbursement will make the
payment.
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Some of the changes you can expect in Finance (2 of 2)
Today
Tomorrow
Some Practice Plans invoice physicians
for a portion of the clinic overhead.
• Practice Plans will cover the cost of
approved clinic expenses, and can
internally cost allocate expenses to
physicians for expenses, if part of the
incentive plan.
• Doctors will not be writing checks to
the practice to cover expenses.
Practice Plans record and track assets
in various ways.
• Assets purchased by the Practice Plans
will be maintained in Lawson by
Medical Finance according to USC
asset management policies.
• Practice Plans can conduct inquiries
and run reports to view activity.
Some Practice Plans use accrual basis
accounting and some use cash basis
accounting.
• USC Care Medical Group, Inc. will use
cash basis accounting for the first year.
Accrual based financials will be
available after phase 2 of install.
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WEBBA – Lawson Accounting Crosswalk of Terminology
WEBBA
Lawson
Department
GL Company
Account
Accounting Unit
Object Code
Account
Lawson Accounting Unit Structure
Fund Group
(XX)
88
Department
(XXXX)
1234
Division or
Billing Area
(XXXX)
5678
Cost Center
(XXXX)
0000
Note:
• Cost Centers default to ‘0000’
• All IDX Revenues and Expenses from WEBBA will post to default Cost Centers
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The Lawson Hierarchy has 17 separate GL companies,
one for each practice.
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Sample Department Integrated Financial Statement
showing non-clinical and clinical accounts.
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Sample Balance Sheet
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Implementation of Phase 1:
Details from the Experts at Deloitte
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Lawson Finance
What is being installed?
Lawson General Ledger (GL) and Asset Management (AM) modules
What is the scope and how will it be used?
Cash basis of accounting until experience levels are determined
• Detailed asset tracking and depreciation capability
• Organization Chart Structure
• Establish Chart of Accounts
• Establish Organization Structure
• Manage GL
• Load FY 2010 Budgets
• Load GL Balance Sheet Beginning Balances
• Transaction Processing
• Cash Receipt load to GL from new IDX
• Cash Receipt load to GL from old IDX
• Payroll load to GL from University Payroll System
• Expense load to GL from Webba University System
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Lawson Finance
How will the department use it?
• The GL system will be a repository of financial data used to provide management
with reporting and inquiry
• The AM system will be used to store detail practice plan assets that will then
summarize and interface to the GL
What else is in it for you?
• Standard GL and AM Lawson Reporting and Inquiry capability
• Standard Configured Lawson Reports to provide Management with reporting at a
consolidated or divisional level
• Automated integration for Lawson modules
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Lawson will interface with WEBBA and IDX
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Revenue and Expense Interfaces
What is the scope and how will it be used?
• Revenue will be automatically interfaced from the new IDX system to the Lawson GL
on a daily basis.
• This interface will use a crosswalk to map revenue from your IDX Divisions
and/or Billing Areas to your Clinical Accounting Units in Lawson.
• Non-payroll expenses will be automatically interfaced from WEBBA to the Lawson
GL on a daily basis.
• This interface will post purchasing expenses from WEBBA in Lawson.
• Nonclinical academic and research expenses recorded in WEBBA will also be
included.
How will the department use it?
• These interfaces will occur automatically on a daily basis. There is no action needed
from the departments to post revenue and expenses in Lawson.
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Revenue and Expense Interfaces
What else is in it for you?
• These interfaces will allow P/L reporting in Lawson that includes clinical revenue
from IDX and expenses from WEBBA.
• Consolidated Clinical and Non-Clinical reporting will also be possible for each
department in Lawson with these interfaces.
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Human Resources and Payroll Interface
What is being installed?
The Lawson Human Resources and Payroll modules
What is the scope and how will it be used?
• The Lawson Human Resource and Payroll systems will act as a shadow system to
the USC Payroll system.
• The USC payroll system will send employee demographic, payroll gross wage
and general ledger allocation information to Lawson for anyone residing or
being paid out of the Clinical Departments at USC.
• No transactions will be entered into Lawson.
• The USC system will be the system of record for this data.
• Updates from USC Payroll to Lawson will be made on a daily and pay period
basis.
• The Clinical pay override process will be built into the Lawson system.
How will the department use it?
• The Lawson system will be used for reporting and for storing Clinical Pay overrides.
• It has been set up to mirror all USC systems’ data attributes and coding structure.
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Human Resources and Payroll Interface
What else is in it for you?
• USC Payroll wage expense allocation information will be interfaced to the Lawson
GL system and available for income statement reporting.
• You will be able to review allocations by account in the Lawson GL system and
drill back to the Lawson Payroll system to identify the employee wage expenses
which account for those amounts.
• This is not currently available in the USC Webba GL system.
• The Lawson GL system will store Payroll clinical expense wage allocations by Cost
Center, which today is not available in the USC Webba GL system.
• Workforce analysis and reporting will be available to provide information useful in
analysis of headcount, compensation and turnover for the Clinical departments.
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Medical Finance Team:
Question and Answer Session
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Frequently Asked Questions – Finance (1 of 3)
Q Will the Practice Plans have access to modify the General Ledger?
A No, changes to the GL will be made by Medical Finance. We are working on
procedures for departments to request journals and will communicate them
when they are available.
Q What reports will be available in Lawson?
A On July 1st, there will be two standard reports available: a standard balance
sheet and an income statement that includes clinical, non-clinical and combined
activity. After July 1st, additional reports may be created based on the needs of
the Practice Plans and USC Care.
Q Will we be able to report financial results by physician?
A On July 1st, there will not be a facility in Lawson for reporting results by
physician. Expenses can be allocated by cost center for tracking purposes. For
Wave 2, currently anticipated to go live February, 2010, the use of Lawson’s
Projects and Activities (AC) application is being considered for this purpose.
Q Can Lawson be used to report all finance activity for the Department?
A Yes, in order to create the integrated financial income statement for the
department, clinical and non-clinical activities will be interfaced into Lawson.
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Frequently Asked Questions – Finance (2 of 3)
Q What previous balances will be loaded into Lawson? When and how will this take
place?
A No historical income statement data will be entered in Lawson. After the
corporation books are closed June 30th, the departments will be asked to
provide financial details and we will upload beginning balance sheets into
Lawson.
Q How will receivables collected by the Practice Plans after July 1st be paid to USC
Care?
A Dates of service after July 1st will be remitted under the single USC Care tax
ID # and remitted to department USC accounts. For services prior to July 1st,
many payors have been billed with the corporations’ tax ID #s and lockbox
information. This cash will be remitted by payors to existing corporate banks
and lockboxes. A nightly sweep will be performed to transfer the cash to USC
Bank of America bank accounts and assigned to the departments clinical
accounts.
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How cash/revenue will flow from banks to USC
USC Care
B of A
Account
Lawson
Clinical 88
Account
USC Webba
88 Account
Lawson
Clinical 88
Account
USC Webba
88 Account
New IDX
Direct interface
Old Corp
Accounts
Old IDX
Download file
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Frequently Asked Questions – Finance (3 of 3)
Q How long after July 1st will we need to keep our existing accounting application
around to access historical data?
A The existing corporations will need to issue W-2s in January of 2010. As such
accounting systems should be closed at fiscal year end, but available for
calendar year end processing. Future access to historical data is up to the
department but we recommend 3 years.
Q When will our accounts be available in WEBBA?
A Accounts will be available on June 1st to begin issuance of form requisitions for
blanket and one-time P.O.s for fiscal year 2010. Transactions can be posted
after July 1, 2009.
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Communications & Training Schedule
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Two types of communications are planned to keep you in
the loop about Lawson.
Lawson Email Updates
• Beginning in early June, Administrators and Chairs will receive a brief email every
other week.
• Content will include updated FAQs, information about the project that is relevant to
the practice plans, and actions that need to be taken prior to July 1.
• The emails will be suitable to share with others in your organization who have
questions about how the Lawson implementation will impact them.
Roadshow 2
• A second Roadshow is planned for mid-June.
• Content will include details of corporate wind down and asset transfer processes.
• Lawson screen shots and descriptions of some of the new processes.
• Training will follow shortly thereafter to teach people how to use the system.
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Lawson training will begin June 24th
• Practice Plan users will attend three hours of classroom training to learn how to
navigate in Lawson, to perform inquiries and to request standard and configured
reports.
• Participants will receive materials they can reference after training to help them
use Lawson.
• Access to Lawson will be granted on July 1st to those who have completed
training.
• The invitation to enroll in training will be sent in early June via email to the system
users you identified during your Lawson meeting with the Deloitte consultants.
• Participants will self-register online.
• There will be several classes to choose from between June 24th and July 1st.
• Class size is limited to 15 participants.
• Training will take place at HSC.