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Presentation

VIEWS: 5 PAGES: 32

									University of Tennessee
      Finance Business
               Blueprint




                      11
                      Agenda
Business Blueprint Executive Summary
•   Goal of Business Blueprint
•   Tools Used
•   Enterprise Structure
•   Module Overview
•   Business Fit
•   Issues / Gaps
•   Change Management / Training Concerns
•   Authorizations
                                            2
     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

                                                        3
     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)                                  4
       Business Blueprint Analysis
                           Activities
• Business Blueprint Workshops
• Detail Requirement Workshops
• Preparation of Business Blueprint Deliverables
   –   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).


                                                           5
       Financial Accounting
Enterprise Structure – General Ledger

     Chart of
                          Assets
     Accts UT

                        Liabilities

                          Fund
    Company Code         Balances
        UT
                        Revenues

                        Expenditures




                                        6
       Financial Accounting
Enterprise Structure - Controlling
     Company Code UT          Functional Area Instruction




                              Profit Center L011002401
                                      Chemistry
        Cost Center
        E011024001


                                  Fund E011024001


        Business Area
   Cur Unrest E&G Knoxville   Fund Center U011002401
                                    Chemistry




                                                            7
          Financial Accounting
Enterprise Structure – Project Systems
                                           Functional Area Research
                  Company Code UT


                                           Profit Center L011002401
    WBS Element                                    Chemistry
     B01001024


                                                   Fund
                                                 B01001024
    WBS Element
    R011024010
                                                    Fund
                                                 R011024010

                      Business Area
                  Cur Rest E&G Knoxville   Fund Center U011002401
                                                 Chemistry




                                                                      8
             Financial Accounting
Enterprise Structure – Procurement
                                            Univ of
 Company code                             Tennessee
                                              UT




                                            Central
                                          Purch.Org.
 Purch. Organization
                                              UT




                                    Chatta-                                   UTSI-
                       Knoxville                       Martin   Memphis
 Plant                              nooga                                   Tullahoma
                          K                             M         H
                                      C                                          T

                       Depart.
                                   Depart...       Depart...    Depart...   Depart...
  Storage              K001...
 location
                                    C001...        M001...       H001        T001       9
                  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
                                                                 10
          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


                                                           11
              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


                                                         12
              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


                                                             13
                    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



                                                               14
              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



                                                              15
                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)




                                                           16
               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                          17
           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




                                                     18
            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




                                                            19
             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


                                                 20
                      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



                                                           21
                      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


                                                                22
                      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


                                                                23
                      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


                                                                24
                      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



                                                                  25
                                       Purchasing Matrix
Volume/Value       Annual     Doc. Type       Req    Request for Quotation   Purchase   Funds      Goods     A/P-or
                   activity   /Method         .      ($2,000><10,000)        Orders     Avail.     Receipt   Department
                                                     Optional                           Checking
                                                     >$10,000 Required

Low/Low            $3M        P-Card         N/A    N/A                      N/A        N/A        N/A       Accts. Payable
                   Note                             N/A
High/Low or High              Outline-        N/A                            Release    Yes        Yes       Depts.
                              Value (WK)                                     Orders
                                                                             (NB)

High/Low           Note       Outline-        N/A   N/A                      Blanket    N/A        N/A       Accts. Payable
                              Value (WK)                                     (FO)

Low/High           Note       Purchase        Yes    Yes                     Yes        Yes        Yes       Department
(incl. Assets)                Order (NB)

High/Low           $100M      Non-            N/A   N/A                      N/A        N/A        N/A       Department
                              Purchase
                              Order

Personal                      Purchase        Yes                            Yes        Yes        N/A       Accts. Payable
Services                      Order or
                              External
                              Order
Facilities /                  Purchase
Construction                  Order or
                              External
                              Order
Library-Books                 Out of Scope

Insurance-
Contracts

Utilities                     Out of Scope

T-Club
                                                                                                                              26
             Financial Accounting
                      Business Fit
          In Scope
• Financial Accounting        • Sales and Distribution
   – General Ledger              – Billing for sponsored projects
   – Special Purpose Ledger   • Accounts Receivable
   – Asset Management            – A/R for sponsored projects
   – Cash Management          • Travel Management
   – Controlling                 – Travel Expenses
   – Funds Management
   – Project Systems
   – Accounts Payable
• Materials Management
   – Purchasing                                                     27
               Financial Accounting
                        Business Fit
        Out of Scope
• Inventory Management             • Purchasing Material Master
• Real Estate Management           • Purchasing B-to-B
  (Facilities)                       Functionality (in RFP)
• Investment Management            • Archiving
• Internal Orders
• PS Networks (scheduling,
  resources, tasks, etc)
• General Accounts Receivable
  (only sponsored receivables in
  scope)

                                                                  28
               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)


                                                                             29
               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)


                                                                            30
             Financial Accounting
        Change Management Concerns
•   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
                                                     31
             Financial Accounting
                    Authorizations
• There will be user authorizations at the following levels:
      – By fund/fund center/commitment item
      – By transaction




                                                               32

								
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