Understanding IRIS Budget Vs. Actual Data

Understanding IRIS Budget Title Vs. Actual Data Or How to use Budget vs. Actual Name reports in IRIS Goals of the Presentation • Provide an introduction to SAP financial data • Explain how data differs among modules • Identify key elements of data and how users can find them • Demonstrate reports that show key data elements • Obtain feedback for improvement of reports Title Name 2 IRIS Financial System Components • The IRIS SAP Financial system has several components: – Financial Accounting (FI) – Special Purpose Ledger FI (FI-SPL) – Grant Accounting (GM) – Controlling (CO) – Funds Management (FM) • The Materials Management MM (MM) module posts encumbrances into GM and FM and goods receipts and Name invoices into FI Actuals • Data is extracted to the Encumbrances Business Warehouse (BW) for integrated reporting FI-SPL Title CO BW GM FM 3 Transaction Data Update Rules • Data in each SAP component are targeted to a particular use • When a transaction is posted in a source component it automatically creates transactions in all destination components based on defined update rules • The update rules define whether certain types of transactions will be posted to the destination component and what master data elements will be included in each transaction • Legitimate differences can exist among data in different components where the update rules are different Name • No data are created in BW. Data from other components are extracted to BW based on extraction rules Title 4 Overview of Data Differences • FI – Contains debit and credit transactions by GL account but does not have fund and business area (corporate entity) in AR and AP postings • FI-SPL – Contains all debit and credit transactions by fund and business area but does not have budget data • GM – Contains all debit and credit transactions and also budgets and encumbrances related to grants • CO – Contains only revenue and expense transactions (single-sided entries) by cost center, internal order and WBS element but no balance sheet postings, budgets or encumbrances • FM – Contains only revenue and expense transactions Name (single-sided entries), budgets, encumbrances and actuals for revenues, expenses, but no balance sheet postings • BW – Contains all data extracted to BW and ability to link data based on predefined reporting needs Title 5 Data Differences in Detail - FI • FI is the source component for financial transactions such as goods receipts, invoices, payroll postings, recharges and journal entries • Reports in the FI module use the Company Code, GL accounts, Business Areas and Functional areas to summarize transactions • FI also tracks transaction data for vendors and customers • FI reports and screens can be used to track status of transactions (e.g. parked vs. posted, unpaid vs. paid, cleared vs. un-cleared, Name etc.) • No budgets or encumbrances are available in FI Title 6 Data Differences in Detail – FI-SPL • FI-SPL contains all the accounting data needed for fund accounting • All transactions in SPL have fund and business area (corporate entity) • Balance sheets by fund and business area can only be created out of SPL data • SPL data are used to create UK’s financial statements in accordance with GASB 34 and 35 • At UK, all SPL data originate in financial accounting with Name no direct posting in SPL • FI-SPL does not contain budget and encumbrance data Title 7 Data Differences in Detail - GM • GM is a grant sub-ledger and summarizes transactions by grant, sponsored class and sponsored program • The GM sub-ledger includes budgets, encumbrances, actuals, indirect costs, revenues, sponsor billings, accounts receivable and cash drawdowns, etc. by grant • GM data are used to grant budgets availability checking • GM data are also used to create internal and sponsor reports by grant • A balance sheet by Grant can be created out of GM data Name Title 8 Data Differences in Detail - CO • CO data are used to show break-downs of revenues, expenses and internal allocations by cost center, internal order and WBS element • CO reports contain statistical (memorandum) transactions in addition to real (accounting) transactions • Real transactions can be reconciled to accounting but statistical transactions cannot • In CO, procurement costs for 3-way match Purchase Orders are updated only when the goods receipt is posted Name • At UK, CO data do not include budgets and encumbrances and are therefore not helpful to most users Title 9 Data Differences in Detail - FM • FM contains data needed for tracking budgets encumbrance and actuals • FM data are summarized by fund, fund center, commitment item (not to be confused with commitment), functional area and funded program • In FM, procurement costs for 3-way match Purchase Orders are updated either when the goods receipt is posted or when the invoice is posted, whichever comes first • User codes (statistical internal orders) are not available in FM nor are assets and liabilities. Name • Due to the availability of budget and encumbrance data FM data is better suited to UK departmental reporting Title 10 Budget Data in the FM Module • UK Budget data are entered in FM as a part of budget preparation and through changes and transfers. Budgets for FY 2006 were loaded into FM when IRIS went live • Budget data are summarized by Fund, Fund Center, Commitment Item, Functional Area and funded program • Budget data exist in Versions where the Current Budget is version 0, Original Budget is version 200, and budget being prepared is version 100. • The Budget Type classifies budget data into recurring and non-recurring Name • Budget summary data allows drill-down to budget entry documents which may be in the status preposted, posted or undone. Title 11 Encumbrance and Actual Data in FM • Encumbrances – FM includes the following encumbrances: – – – – Departmental encumbrances (Funds Reservations type F2) Job Order Encumbrances (Funds Reservations type F1) Requisition Encumbrances Purchase Order Encumbrances Title • Actuals – FM includes the following types of actuals: – Goods Receipts against POs – PO invoices and DAVs Name – Recharge entries and other Journal Vouchers 12 Period Based Encumbrance Tracking • Encumbrances and actuals are posted in transaction chains e.g. a PO Line refers to a requisition and goods receipts and invoices refer to a PO Line • Encumbrances may be changed through change transactions (e.g. account assignment changes) and through subsequent documents (e.g. goods receipt or invoice receipt). • Encumbrances are carried forward at year end • Since data once written to FM cannot be deleted, all changes, liquidations and carry forwards are posted as additional line items • The main goal is to protect the history and the audit trail • By applying the appropriate filters, the status of a particular encumbrance can be established at any time Name • Understanding the data is key to creating the appropriate filters Title 13 Period Based Encumbrance Tracking Example Transaction Create Requisition $100 Create Purchase Order $102 Change Account assignment on Purchase Order $102 FM Transaction Type Req #1xxxx Amount Type 0100 (Original) 0100 (Original) Amount $100 $102 Title PO #45xxxx Req #1xxxx PO #45xxxx 0200 (Reduction) 0600 (Reassignment Sender) 0650 (Reassignment Receiver) -$100 -$102 PO #45xxxx Name $102 14 Period Based Encumbrance Tracking Example Transaction Enter Goods Receipt $65 Enter Invoice $65 FM Transaction Type GR #51xxxx PO #45xxxx Amount Type 0100 (Original) 0200 (Reduction) 0100 (Original) 0200 (Reduction) 0300 (Carry Forward Old Year) 0350 (Carry Forward New Year) Amount $65 -$65 $65 -$65 -$37 Title Invoice 50xxxx GR #51xxxx Carry Forward Purchase Order $37 PO #45xxxx PO #45xxxx Name $37 15 Integrated Reporting in BW • The BW system contains three main areas of financial reporting for end users (role BWP_REPORTS_FINANCE) – Special Ledger – Funds Management/Budget Control – Grants Management • These groupings are based on the source of data Title Name 16 Funds Management Reports in BW Title Name 17 Funds Management Reports in BW • The Funds Management/Budget Control area contains reports to be used to monitor encumbrances and actuals against budgets • The Fund Center Balances: Budget vs Actual report shows the summary budget, actuals and encumbrances for a fund center or similar organizational grouping • The Fund Center Balances: Budget vs Actual report is supported by detail reports for: Title – Budget Entry documents – Encumbrances – FM Actuals • You can either drill-down from the summary reports to the detail reports or run detail reports directly • Drill-down from summary reports automatically transfers parameters Name to the detail report 18 Funds Management Reports in BW • The Capital Projects Ledger report shows the summary budget, encumbrances and actuals for capital project funds (range 0410000000 through 0419999999) • Detail reports are available for: – Budget Entry documents – Encumbrances – FM Actuals Title • You can either drill-down from the summary reports to the detail reports or run detail reports directly • Drill-down from summary reports automatically transfers parameters to the detail report Name • You can run detail reports directly to verify transactions by entering the parameters 19 Demo of Fund Center Balances: Title Budget Vs. Actuals Report Name Known Gaps in BW Reports • User code (Statistical Internal Orders) – Not available in FM data – Not currently available in FMBCS BW reports Title – Will be available in BW once details are loaded • Line item text in details – Not available in FMBCS BW reports – Will be available in BW line item reports once Name details are loaded 21 Title Questions? Name

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