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Document Sample
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
