Transcript Financial Overview - University of Kentucky

Financial Overview
FI_200
Online Course
Financial Overview Introduction
This is an online course that introduces the basic concepts of the Financial Modules in the IRIS System. This course is
intended to give you a high level overall perspective of finance in the IRIS system. It is not intended to be specific in any
one area.
If you have this course listed on your training plan, this course is available both via the web or classroom training.
A Student Guide is intended to accompany this course. It provides additional explanation and clarification to the
information presented on the slides. Please refer to the Student Guide as you proceed though this course.
There is also a Practice Guide available that provides all the procedures necessary to practice the demonstrations shown
in this course in the IRIS Training Sandbox and the way you will get comfortable with the IRIS system is through
practice… practice… practice.
The following are the components of the FI_200 Financial Overview Online Training Course:
FI_200 Financial Overview Online Training Course – Simulation
FI_200 Financial Overview – Student Guide
FI_200 Financial Overview – Practice Guide
FI_200 Financial Overview – IRIS Training Notification form
FI_200 Financial Overview – Course Evaluation
Important: When you have completed this course you will need to submit the completed IRIS Training Notification form
in order to get credit for the class.
Please also take a moment to complete the Course Evaluation and let us know what you liked, or didn’t like, about this
course.
Send any comments and suggestions to [email protected]
Remember the Training Sandbox is available 24/7 for you to practice the exercises contained in the Practice Guide as
many times as you like.
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Course Content
• Unit 1 - UK Processes and IRIS Components
• Unit 2 - Financial Accounting
• Unit 3 – Funds Management
• Unit 4 – Controlling
• Unit 5 - Grants Management
• Unit 6 – Business Warehouse Reporting
• Course Summary
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Learning Objectives
• You will understand at a high level:


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UK account structure
Financial document parking (JVs) and posting (DAVs)
Funds Management
Grants Management
Cost Management
• You will be able to:
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Display FM, CO, and GM Master Data
View Document Information
Generate FI, FM, and CO Reports
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Prerequisites and Roles
• Prerequisites:
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UK_100 IRIS/SAP Awareness & Navigation
• Roles:
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Financial users of the IRIS system
Financial analysts
Financial accounting users
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Unit 1
Unit 1 - UK Processes and IRIS
Components
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FI, FM, and CO Integration
Statutory Reporting
FI - Finance
Track Budgets &
Earmarked Funds
External
Reporting
FM - Funds Mgmt.
Company Codes
Business Areas
Encumbrance
Accounting
CO - Controlling
Cost Center, WBS
Element, Internal Order
Financial Mgmt Area,
Functional Areas
Management
Reporting
Funds Center, Funds
Controlling Area
Commitment items
Cost Center
Internal Order
General ledger accounts
FM Document
CO Document
Departmental
Cost Reporting
Primary Cost Elements
The FM & CO Documents are created by FI in the background.
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Postings to General Ledger Accounts
IRIS System
MM
Batch feeds
HR
Purchasing,
Hosp Inventory
Human
Resources
FI AP/AR
Payables &
Receivables
FI-GL
General
Ledger
SD
Sponsor
Billings
CM
GM
Manual Entry
Campus
Management
Grants
Management
PM
Most FI, FM, and CO documents are created
automatically internally.
Plant
Maintenance
Some FI documents such as JVs, Requisitions,
DAVs, etc. are created manually.
Automatic postings into FI-GL
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Key Terminology
IRIS has different names for the same data depending on the module.
IRIS MODULES
What it is
Actual or budgeted
revenue or expense
account
FI (Financial)
CO (Controlling)
FM (Funds
Management)
GM (Grants
Management)
GL Account
Cost Element
Commitment Item
Sponsored Class
Source of funding for a
Fund Center
Department level
revenues / expenses
Real (PPD) or statistical
cost object
Grant, Land Grant,
Capital Projects
Function or project for
how the funds will be
used
Fund
Cost Center
Funds Center
Internal Order
Internal Order
WBS Element
Grant
Functional Area
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Sponsored Program
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Numbering Scheme for Chart of Accounts
Master Data
IRIS # Scheme Example
Fund
0011000100
Cost Center
1012012830
Funds Center
1012012830
(Same as Cost Center)
WBS Element (Land Grant)
2350013000
WBS Element (Grants/Contracts)
3046835000
WBS Element (Capital Projects)
4011876100
Internal Order (Job Order)
806013140000
Internal Order (Statistical)
809013140000
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Unit 2
Financial Accounting
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Financial Accounting (FI)
• Financial Accounting module has several sub-ledgers.
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Accounts Payable and Accounts Receivable
Cost Centers, WBS Elements, Internal Orders, Grants
Vendors, Capital Projects
• Data flows from the sub-ledgers into the general ledger on a real
time basis via a reconciliation account.
• Every financial based transaction entered in IRIS needs information
such as a Company Code, a Business Area, Fund, and a GL Account.
Some are entered directly and others are derived from Master data.
• Revenue and expense GL items also need a Fund, and a CO cost
object (Cost Center, Internal Order or WBS Element).
• Business Warehouse is used to display financial ledgers by Fund
and Grant.
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General Ledger Account
• Transactions are posted in FI through the general ledger account.
• A general ledger account has a corresponding commitment item in
FM and a PCE (Primary Cost Element) in CO.
• General ledger accounts represent the WHAT of a transaction in CO.
• The FM & CO Documents are created by FI in the background.
Office supplies = 540334
FM
FI
Finance
GL Accounts
CO
Funds
Management
equals
Commitment
item
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Controlling
equals
Primary Cost
Element
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GL Account Numbering Convention
Range
Type
Number
Account Category
1xxxxx
Assets
11xxxx
Cash
2xxxxx
Liabilities
12xxxx
Investment
3xxxxx
Fund
13xxxx
Accounts Receivable
14xxxx
Loan Receivable
4xxxxx
Revenues
15xxxx
Inventory
5xxxxx
Expenses
16xxxx
Clearing
6xxxxx
Recharges
21xxxx
Accounts Payable
22xxxx
Payroll deposits
23xxxx
Accruals
24xxxx
Deferred income
31xxxx
Fund balance
7xxxxx
Transfers
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GL Account Numbering Convention
Number
Account Category
Number
Account Category
40xxxx
Tuition / Fees
51xxxx
Salary
41xxxx
Appropriations/ Grants
52xxxx
Benefits
420xxx
425xxx
Gifts
53xxxx
54xxxx
Operating Expense
43xxxx
Investment Income
55xxxx
56xxxx
Capital Expense
61xxxx
63xxxx
65xxxx
Recharges
74xxxx
75xxxx
Transfer
44xxxx
46xxxx
Sales and Services
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Department Authorization Voucher (DAV) Process
Form sent by department, then entered and posted by accounts payable.
Vendor
UK Department
Accounts Payable
Vendor sends
invoice for goods
or services
UK department
prepares IRIS
DAV Form &
attaches invoice
A/P audits and
posts invoice
using FB60
Payment created
(Document
Type KZ)
Vendor inquires
for payment
information
UK department
can verify check
payments FB03
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Accounts Payable
sends check to
vendor
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Journal Voucher Process
Entered and parked by department then posted by accounting.
General Accounting,
Hosp or SPA
UK Department
Journal
Voucher
UK department
completes FV50
attaches invoice
parks as complete
JV document,
approvals and
related docs
G/A audits
parked documents
and approvals
UK department
can change
parked document
with FBV2
UK department
can delete
parked document
with FBV0
UK department
can verify posted
document with
FB03
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G/A posts
parked
documents
Files
journal
vouchers
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Procard Editing Process
Procard re-charges are posted by departments.
The process starts when the Procard is used to purchase goods instead of a PO
Procard Bank
Procard bank
collects and
transmits charges
to UK overnight
UK Department
“parking”
UK Department
“posting”
Procard charges
create “parked
documents” using
default cost center
& GL account
UK departments
re-charge costs to
correct cost center &
GL account via Web
portal and parked
document is saved
as complete
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UK departments,
after approvals,
select and post
parked documents
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Document Types and Number Ranges
Documents are uniquely identified by a document type and number.
Document
Type
GL Account Document
Number Range
From
To
SA
0100000000
0199999999
Stock Materials (Hand fees)
ZH
0100000000
0199999999
Vendor Invoice
KR
1900000000
1999999999
Vendor Payment
KZ
1500000000
1599999999
Goods Issue
WA
4900000000
4999999999
Goods Receipt
WE
5000000000
5099999999
Invoice - Gross
RE
5100000000
5199999999
Invoice - Net
RN
5100000000
5199999999
Procard
YY
7700000000
7799999999
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IRIS Database
Financial Transaction
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Demonstration 2.1
Scenario
You want to know the balance for operating expense accounts for a specific month and fiscal
year to date.
Demonstration
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From the SAP main menu use transaction code
S_ALR_87012301 - GL Account Balance Display
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After entering the information click the Execute
icon.
Enter the Chart of Accounts, GL Accounts
range, and Company code fields.
For this demo we will use reporting period 2 of fiscal year 2006.
Fiscal years at UK are July 1st (reporting period 1) thru June 30th
(reporting period 12) and are know by the year they end.
So…reporting period 2 of fiscal year 2006 is actually August 2005.
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This is the GL Account Balance report for reporting period 2 of fiscal year 2006. It shows:
GL Accounts/names…debit/credit totals for period 2…debit/credit totals for YTD…total debit/credit balance.
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Demonstration 2.2
Scenario
You need to check the details for a particular document for your Cost Center.
Demonstration
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From the SAP main menu use transaction
code FBL3N – G/L Account Line Items
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To narrow the search to your Cost Center,
click on the Dynamic Selection
icon.
Enter the G/L account range, the Company code (if
necessary), select All items, and a date range.
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Double click Cost Center to make it
available on the right side.
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After entering the information click the Execute
icon.
The Cost Center is now highlighted to
indicate it is available search criteria on
the right side.
Enter the Cost Center number.
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In the search results, double
click on line item to drilldown
into document
Use the “sun going over the view
of the mountain” icon to display
the document overview.
View details about
the line item
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Unit 3
Funds Management
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Funds Management (FM) – Fund Centers
• Funds Management is used to organize and track revenue and
expense in budget format.
• Fund
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•
A self-balancing set of accounts used to budget and control costs
Identifies source and use of funding
Funds Center
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Represents organizational area of responsibility for budgeting revenue
and expenses.

Derived from Cost Center with one-to-one relationship
 Example: Cost Center and Funds Center - 1012084710 – IRIS Project
• Both Funds and Funds Center can be grouped for reporting purposes.
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Fund Master Data
Additional UK Fund Fields
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Funds Center Master Data
Additional UK Fund Center Fields
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FM Document Journal Report - FMRP_RFFMEP1AX
Enter criteria (grant, fund,
funds center, commitment
item, or functional area)
You can enter a
combination or range of the
above or leave blank for all
data.
You can further narrow
selection by date
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Funds Management – Document Journal Report
• Reports can be customized as needed. They can be:
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Totaled (e.g., Payment Budget field)
Subtotaled (e.g., Commitment Item field)
Sorted by any field
Exported to Excel
Emailed to someone
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Demonstration 3.1
Scenario
You need to find out what the functional area is that is associated with a particular Funds Center.
Demonstration
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From the SAP main menu use transaction
code FMSC - Display Funds Center
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Enter the Funds Center number
(and FM Area if necessary) and
press enter.
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FMSC displays Funds Center Master data. It has tabs of information and
one pushbutton. The Functional Area is shown on this additional screen.
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Demonstration 3.2
Scenario
You would like to see the documents entered for a fund center and then manipulate the report
data.
Demonstration
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From the SAP main menu use transaction
code FMRP_RFFMEP1AX – All Postings
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After entering the information click the Execute
icon.
Enter the FM Area if necessary
and the Funds Center number.
For this demo we will use reporting periods 1
to 12 of fiscal year 2006.
Reporting periods 1 to 12 of fiscal year 2006
is actually July 2005 through June 2006.
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This is the Document Journal Line Item report.
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To total the Payment Budget column, first identify
the column by clicking once on the column header
and then click on the Total icon.
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Once a column is totaled the sub-total icon appears. To sub-total
by GL Accounts, first identify the column by clicking once on the
column header and then click on the Sub-Total icon.
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The report is now totaled by the Payment Budget column and
sub-totaled by GL Accounts.
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To sub-total by Fund, identify the column by clicking once on the
column header and then click on the Sub-Total icon.
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The report is now totaled by the Payment Budget column and
sub-totaled by Fund.
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The report layout can be changed by clicking on the Change Layout icon.
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In the Change Layout dialog box, the right column shows the
columns that are now visible in the report and the left column
shows the columns that are now hidden. By moving columns
from one column to the other they will either become visible or
hidden in the report view. Sort orders and filters can also be set.
Many layouts can be saved for different report views. The various
saved layouts can then be used when required.
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Unit 4
Controlling
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Controlling (CO)
• Used primarily for internal, managerial reporting.
• Controlling Area is an organizational unit in which all cost
centers and all internal orders are assigned.

UK has one controlling area: UK00
• Most transaction processing occurs outside the CO module
but integrates with CO.
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Materials Management (requisitions, purchase orders)
Campus Management (student accounts)
Human Resources (payroll)
Financial Accounting (JVs, DAVs)
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Cost Centers and Internal Orders
• Cost Centers are areas of responsibility in which you capture costs.
• For reporting purposes Cost Centers are established in a “hierarchy”
called Cost Center groups or Nodes.
• Costs can only be posted directly to Cost Centers, not to Cost
Center groups or nodes.
• Internal Orders


Real
 Physical Plant Division
 Communications
 Dining Services
Statistical
 Used for information reporting purposes
 Postings need a real cost object, such as a Cost Center or WBS Element
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CO Master Data – Cost Centers
Cost Center Hierarchy
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Cost Centers
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Demonstration 4.1
Scenario
You would like to view the printing supplies GL account postings for your cost center and see the
relevant documents.
Demonstration
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From the SAP main menu use transaction
code KSB1 – Cost Centers: Actual Line Items
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After entering the information click the Execute
icon.
Enter the Cost Center and Cost Element in the fields.
For this demo we will use Posting Date
range from 10/01/2005 to 7/31/2007.
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This shows the Cost Element 540337 (Printing Supplies) for the Cost Center.
To view the relevant document(s) for the printing supplies account postings
simply double-click on the line item.
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After entering the information click the Execute
icon.
Leave the Cost Center and remove
the Cost Element in the fields.
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This shows all the Cost Elements for the Cost Center.
To view the relevant document(s) for any GL account
posting simply double-click on the line item.
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Unit 5
Grants Management
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Grants Management
• Used to plan and record all funding related to Sponsored
projects and Federal Ag appropriations.
• Integrated with other modules via Master data.
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Posting in the General Ledger (FI) are transferred automatically
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Manual invoices
Costs can be posted via Vendor Invoices (MM)
Budget is transferred to FM
• Billing and Payments
Resource Related Billing – to Grant Sponsors
Milestone and Periodic Billing of Grants
Posting of incoming payments from sponsors
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GM Master Data – Grant Master & Group
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Demonstration 5.1
Scenario
A grant award has been received from a sponsor. You need to display the grant to find information
about the various master data associated with this grant
Demonstration
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From the SAP main menu use transaction code
GMGRANTD - Grants Master = Display Only
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Enter the Grant number and press enter.
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The Grant Master data contains many tabs of information.
The General Data tab shows the sponsor, validity
dates, grant amount, and other information.
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The Dimensions tab shows the GM Fund Type,
Sponsored Programs, Sponsored Classes, and
other information.
Notice that the Sponsored Class is the same
number as the FI GL Account. The Sponsored
Class number shows either an “E” or “R” in front of
the number to indicate whether it is an expense or
revenue item.
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Unit 6
Unit 6 – Business Warehouse
Reporting
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BW Web Reporting
Business Warehouse is the long-term solution for IRIS reporting.
With a data warehouse as its core,
Business Warehouse offers tools for
data extraction, reporting, and
analysis; delivered Business
Content reports; and a web-based
user interface called Business
Explorer (BEx).
As with other IRIS modules, the
Business Warehouse
implementation will occur in
phases.
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Business Warehouse Courses for End-users
BEX_300 Business Warehouse: BEx-Web
This course is intended to familiarize users with the SAP Business Information Warehouse
(BW): Business Explorer Web Application (BEx-Web) environment.
BEX_305 SAP BW: Business Explorer-Analyzer for Power Users
This course is intended to familiarize users with the SAP Business Information Warehouse
(BW): Business Explorer-Analyzer (BEx-Analyzer). After attending this class, participants
should be able to create, run, modify, and save BEx Queries in the production
environment. Participants must pass a skills test to obtain the Power User Role in
Production.
BEX_310 Advanced Power Users
This course will review basic BEx reporting functions taught in BEX_305 and also cover
advanced functions. Note: BEX_305 must be taken before BEX_310.
CM_BEX_300, Campus Management BW Web Reporting
The course will cover the same content as the regular BEX_300 course, but will be geared
to CM users. Selected CM data will be used in queries in the class.
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Fund Center Balances – Budget vs Actual
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Course Summary
•You understand:



FI, FM, GM, and CO Master Data
Posting to AP and GL
UK account structure
•You are now able to:



Display FM, CO, and GM Master Data
View Document Information
Generate FI, FM, and CO Reports
Remember to submit the completed
IRIS Training Notification form.
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