Transcript Presentation - University of Tennessee system

University of Tennessee
Finance Business
Blueprint
11
Agenda
Business Blueprint Executive Summary
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Goal of Business Blueprint
Tools Used
Enterprise Structure
Module Overview
Business Fit
Issues / Gaps
Change Management / Training Concerns
Authorizations
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Business Blueprint Analysis
Goals
• Determine UT’s business process requirements
• Achieve a common understanding of how UT intends to
run its business within the framework of SAP R/3
• Deliver a record of results gathered
• Move into the next phase with enough information to
complete baseline configuration
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Business Blueprint Analysis
Tools
• Business Process Questions (by process)
– Standard questions regarding UT’s organizational structure,
processes and business needs
• Detailed Workshops
– Meetings with key users to discuss business processes and business
needs
• Customer Input Templates
– high level summary of Processes
• Business Process Transaction
– Business Process Master List (BPML)
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Business Blueprint Analysis
Activities
• Business Blueprint Workshops
• Detail Requirement Workshops
• Preparation of Business Blueprint Deliverables
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Creation and review of all Q&A questionnaire
Creation and review of CI Templates
Creation and review of BPMLs
Creation and review of RICES
Update issue log (which includes the major gaps).
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Financial Accounting
Enterprise Structure – General Ledger
Chart of
Accts UT
Assets
Liabilities
Company Code
UT
Fund
Balances
Rev enues
Expenditures
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Financial Accounting
Enterprise Structure - Controlling
Company Code UT
Cost Center
E011024001
Functional Area Instruction
Profit Center L011002401
Chemistry
Fund E011024001
Business Area
Cur Unrest E&G Knoxville
Fund Center U011002401
Chemistry
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Financial Accounting
Enterprise Structure – Project Systems
Company Code UT
Functional Area Research
Profit Center L011002401
Chemistry
WBS Element
B01001024
Fund
B01001024
WBS Element
R011024010
Fund
R011024010
Business Area
Cur Rest E&G Knoxville
Fund Center U011002401
Chemistry
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Financial Accounting
Enterprise Structure – Procurement
Univ of
Tennessee
UT
Company code
Central
Purch.Org.
UT
Purch. Organization
Plant
Storage
location
Knoxv ille
K
Depart.
K001...
Chattanooga
C
Martin
M
Memphis
H
UTSITullahoma
T
Depart...
C001...
Depart...
M001...
Depart...
H001
Depart...
T001
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General Ledger
• Chart of Accounts includes general ledger accounts, the
equivalent of object codes (expenditures, revenues, assets,
liabilities, and fund balances)
• Posting of journal entries to the General Ledger (direct and
through automatic account assignment from other
modules)
– Direct postings – journal entry (JV, TV, etc.)
– Automatic account assignments – payroll postings
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Special Purpose Ledger
• Balance Sheet and Revenue and Expenditure Reporting by
Fund
– Automatic cash offset posting
– Internal reporting by fund
• Balance Sheet and Revenue and Expenditure Reporting by
Fund Group and Budget entity
– For monthly Treasurer’s Report
– For external financial statements
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Asset Management
• Supports tracking and management of fixed assets
(equipment, buildings and land)
– Leased and owned equipment
– Sensitive item tracking
– Integration with MM to benefit from automatic
capitalization at time of goods/invoice receipt
– UT will have new functionality to meet GASB
requirements to depreciate their assets July 2001
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Cash Management
• Cash management manages UT’s short term cash flow and
Bank Ledger accounting
– Evaluate UT cash position
– Lockbox cash receipts
– Bank statement input and bank reconciliation
– Deposit handling and Cashed Check reconciliation
– Monitor cash inflows and outflows to ensure on
optimum amount of liquidity to meet required payments
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Controlling
• Provides collection of costs for unrestricted accounts
– Cost Centers – UT E & I accounts
– Profit Centers - UT departments
– Cost/Revenue Elements – expenditure and revenue
codes
– Departmental Planning for cost centers – plan vs actual
analysis
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Funds Management
• Provides monitoring and control of budgets for both state
and local appropriations as well as sponsored programs
– Commitment items – UT object codes
– Funds centers – UT organizational units
– Funds – UT accounts
– Budgeting at the fund level
– Funds availability control at the fund level
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Project Systems
• Project accounting (revenue and expenses) for UT
restricted funds
– Planning (dates, costs at the cost element level)
– Overhead calculation (F&A)
– Integration with FM (wbs element link to funds), AM
(plant funds will require AuC’s) and SD (sponsor
billing)
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Accounts Payable
• Single vendor master database ownership by A/P dept –
purchasing view updated by purchasing dept
• Invoice processing
– Processing of purchase order invoices via Logistics
Invoice Verification (LIV)
– On-line 3 way matching of invoice/PO/goods receipt
– Processing of direct vouchers without purchase order
• Automatic and manual payment process
– Manages payments based on frequency of payment runs
& payment terms specified in the vendor master record
or invoice
• Integration with Travel Management
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Sales and Distribution
• Supports billing of sponsor reimbursable funds
– Cost reimbursable (resource related billing)
– Schedule billing (example $15,000 each month)
– Item billing (example trial testing)
– Letter of credit (draw down)
– Retainage
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Accounts Receivable
• Single customer master database of sponsored projects
shared with Sales and Distribution
• Invoice processing for sponsored projects
– Integration with Sales and Distribution billing
– Supports accounting for manual billing
• Application of incoming payments for sponsored projects
• Supports dunning for sponsored projects
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Travel Management
• Employee and Guest Travel
– Travel Authorizations
– Travel Advances
– Entry and Approval of Trip Facts
– Travel Expense Accounting – posting to GL
– Reimbursement through Accounts Payable
– Incorporates University fiscal policy
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Purchasing
• Requisitions
– Electronic transmission of document to purchasing
(eliminates paper document)
– Electronic approval process
– Ability of department to review existing university
contracts on-line in determining requisition source
– Assignment of asset at point of requisition
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Purchasing
• Source Lists
– Identify and suggest potential sources based on
contracts
– Identify potential sources for bid lists
– Ability to identify sources based on info records and
flexible search parameters
– Information contained in central data base accessible to
all campus purchasing departments
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Purchasing
• Request for Quotation
– Generation of bidder list based on information records
maintained in SAP such as NIGP codes, recent
purchases, etc.
– Flexibility in evaluation of quotes received - line item
vs totals
– Departments can evaluate on-line vs. sending hard copy
for review
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Purchasing
• Purchase Orders
– Identify and suggest potential sources based on
contracts
– Identify potential sources for bid lists
– Ability to identify sources based on info records and
flexible search parameters
– Information contained in central data base accessible to
all campus purchasing departments
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Purchasing
• Contracts
– Available for review and maintenance on-line
– Ability to release order directly against contract without
requisition
– Better accountability of funds spent against contract
– Flexible agreement types (i.e. outline, blanket, etc.)
– Ability to review all campus contracts across UT
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Purchasing Matrix
Volume/Value
Annual
activity
Doc. Type
/Method
Low/Low
$3M
P-Card
High/Low or High
Note
Req
.
N/A
Request for Quotation
($2,000><10,000)
Optional
>$10,000 Required
Purchase
Orders
Funds
Avail.
Checking
Goods
Receipt
A/P-or
Department
N/A
N/A
N/A
N/A
Accts. Payable
OutlineValue (WK)
N/A
N/A
Release
Orders
(NB)
Yes
Yes
Depts.
N/A
Blanket
(FO)
N/A
N/A
Accts. Payable
Yes
Yes
Yes
Department
N/A
N/A
N/A
Department
Yes
Yes
N/A
Accts. Payable
High/Low
Note
OutlineValue (WK)
N/A
Low/High
(incl. Assets)
Note
Purchase
Order (NB)
Yes
High/Low
$100M
NonPurchase
Order
N/A
Personal
Services
Purchase
Order or
External
Order
Yes
Facilities /
Construction
Purchase
Order or
External
Order
Library-Books
Out of Scope
Yes
N/A
InsuranceContracts
Utilities
T-Club
Out of Scope
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Financial Accounting
Business Fit
In Scope
• Financial Accounting
– General Ledger
– Special Purpose Ledger
– Asset Management
– Cash Management
– Controlling
– Funds Management
– Project Systems
– Accounts Payable
• Materials Management
– Purchasing
• Sales and Distribution
– Billing for sponsored projects
• Accounts Receivable
– A/R for sponsored projects
• Travel Management
– Travel Expenses
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Financial Accounting
Business Fit
Out of Scope
• Inventory Management
• Real Estate Management
(Facilities)
• Investment Management
• Internal Orders
• PS Networks (scheduling,
resources, tasks, etc)
• General Accounts Receivable
(only sponsored receivables in
scope)
• Purchasing Material Master
• Purchasing B-to-B
Functionality (in RFP)
• Archiving
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Financial Accounting
Issues
• Import of Procurement card transactions into R/3 (Issue 8 –
functionality deficit)
• Funds availability checking (Issue 33 – process design)
• Creation of external reports such as CFDA, IPEDs, etc (Issue 68 –
functionality deficit)
• Data-level security for Finance (Issue 74 – process design)
• Support for cost sharing transactions in R/3 (Issue 106 – process
design and functionality deficit)
• Research and determine FAX software to acquire (Issue 113 - )
• Ability to track source of recoveries of payroll costs (Issue 118, 119 –
process design)
• Scope of University procurement processes (Issue 133 – project scope)
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Financial Accounting
Issues (cont.)
• Effort Certification processing (Issue 137, 155 – functionality deficit
and process design)
• Financial/technical/equipment reporting to Grant sponsors (Issue 157 –
functionality deficit)
• Budget transfers for mass salary changes (Issue 162 – functionality
deficit)
• What will be the commitment item group standard for unrestricted
accounts (Issue 166 – process design)
• Revenue recognition for restricted projects (Issue 178 – process
design)
• Accrued annual leave (Issue 186 – process design)
• Salary transfer vouchers (STV) (Issue 187 – process design)
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Financial Accounting
Change Management Concerns
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Terminology
Decentralization of Accounts Payable functions
Goods receipt (in some situations)
Departmental requisitioning online
Travel request and reimbursement decentralized
Budgets and planning
Departmental entry of service contracts
Departmental entry of assets for equipment
Workflow
Cash management for cash receipts
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Financial Accounting
Authorizations
• There will be user authorizations at the following levels:
– By fund/fund center/commitment item
– By transaction
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