Advanced Financial Accounting Solution Manual by bbr22470

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									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 IRISTraining@email.uky.edu
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.




                                                     FI_200 Financial Overview v7                                               2
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



                        FI_200 Financial Overview v7   3
Learning Objectives

• You will understand at a high level:
      UK account structure
      Financial document parking (JVs) and posting (DAVs)
      Funds Management
      Grants Management
      Cost Management


• You will be able to:
      Display FM, CO, and GM Master Data
      View Document Information
      Generate FI, FM, and CO Reports




                              FI_200 Financial Overview v7   4
Prerequisites and Roles

• Prerequisites:
      UK_100 IRIS/SAP Awareness & Navigation




• Roles:
      Financial users of the IRIS system
      Financial analysts
      Financial accounting users




                              FI_200 Financial Overview v7   5
Unit 1




    Unit 1 - UK Processes and IRIS
              Components


               FI_200 Financial Overview v7   6
FI, FM, and CO Integration
  Statutory Reporting

    FI - Finance                    Track Budgets &
                                   Earmarked Funds
       External
      Reporting                 FM - Funds Mgmt.                     Departmental
                                                                    Cost Reporting
    Company Codes                   Encumbrance
    Business Areas                   Accounting                   CO - Controlling

   Cost Center, WBS               Financial Mgmt Area,              Management
 Element, Internal Order            Functional Areas                 Reporting

General ledger accounts
                                  Funds Center, Funds                Controlling Area

           FM Document             Commitment items                    Cost Center
                                                                      Internal Order

                            CO Document
                                                                  Primary Cost Elements

                        The FM & CO Documents are created by FI in the background.
                                   FI_200 Financial Overview v7                           7
Postings to General Ledger Accounts
                 IRIS System
                  MM                                                 Batch feeds
            Purchasing,             HR
           Hosp Inventory          Human
                                  Resources

  FI AP/AR
   Payables &
   Receivables
                             FI-GL
                             General
      SD
    Sponsor                  Ledger
    Billings


          GM                        CM                               Manual Entry
        Grants                     Campus
      Management                 Management


                       PM                               Most FI, FM, and CO documents are created
                      Plant                             automatically internally.
                   Maintenance                          Some FI documents such as JVs, Requisitions,
                                                        DAVs, etc. are created manually.
    Automatic postings into FI-GL
                                      FI_200 Financial Overview v7                                     8
Key Terminology
       IRIS has different names for the same data depending on the module.

                                                             IRIS MODULES
      What it is                                                         FM (Funds           GM (Grants
                            FI (Financial)   CO (Controlling)
                                                                        Management)         Management)
Actual or budgeted
revenue or expense           GL Account        Cost Element            Commitment Item      Sponsored Class
account
Source of funding for a
                                                                               Fund
Fund Center

Department level
                                                Cost Center                 Funds Center
revenues / expenses

Real (PPD) or statistical
                                               Internal Order                                Internal Order
cost object

Grant, Land Grant,
                                               WBS Element                                       Grant
Capital Projects

Function or project for
how the funds will be                                                   Functional Area    Sponsored Program
used




                                             FI_200 Financial Overview v7                                      9
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




                                 FI_200 Financial Overview v7                     10
Unit 2




         Financial Accounting



               FI_200 Financial Overview v7   11
Financial Accounting (FI)
• Financial Accounting module has several sub-ledgers.
       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.




                                    FI_200 Financial Overview v7        12
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




           FI                           FM                                CO
                                    Funds
         Finance                                                       Controlling
                                  Management



                               Commitment                             Primary Cost
      GL Accounts    equals                                  equals
                                  item                                  Element


                              FI_200 Financial Overview v7                           13
GL Account Numbering Convention

  Range      Type                         Number        Account Category

  1xxxxx    Assets                        11xxxx               Cash

  2xxxxx   Liabilities                    12xxxx            Investment

                                          13xxxx        Accounts Receivable
  3xxxxx     Fund
                                          14xxxx          Loan Receivable
  4xxxxx   Revenues
                                          15xxxx             Inventory
  5xxxxx   Expenses                       16xxxx             Clearing

  6xxxxx   Recharges                      21xxxx         Accounts Payable

                                          22xxxx          Payroll deposits
  7xxxxx   Transfers
                                          23xxxx             Accruals

                                          24xxxx         Deferred income

                                          31xxxx           Fund balance

                         FI_200 Financial Overview v7                         14
GL Account Numbering Convention

 Number    Account Category                      Number       Account Category

 40xxxx       Tuition / Fees                      51xxxx           Salary

 41xxxx   Appropriations/ Grants                  52xxxx          Benefits

                                                  53xxxx
 420xxx                                                       Operating Expense
                  Gifts                           54xxxx
 425xxx
                                                  55xxxx
                                                               Capital Expense
 43xxxx     Investment Income                     56xxxx

 44xxxx                                           61xxxx
            Sales and Services                    63xxxx         Recharges
 46xxxx
                                                  65xxxx

                                                  74xxxx
                                                                  Transfer
                                                  75xxxx




                               FI_200 Financial Overview v7                       15
Department Authorization Voucher (DAV) Process
Form sent by department, then entered and posted by accounts payable.
     Vendor                  UK Department                 Accounts Payable

                                UK department
   Vendor sends                                              A/P audits and
                                 prepares IRIS
 invoice for goods                                            posts invoice
                                 DAV Form &
    or services                                                using FB60
                               attaches invoice




                                                             Payment created
                                                                (Document
                                                                 Type KZ)




  Vendor inquires              UK department                Accounts Payable
    for payment               can verify check               sends check to
    information               payments FB03                     vendor



                            FI_200 Financial Overview v7                       16
Journal Voucher Process
Entered and parked by department then posted by accounting.
                                                                         General Accounting,
                UK Department
                                                                            Hosp or SPA
                        UK department
      Journal                                        JV document,               G/A audits
                       completes FV50
      Voucher                                        approvals and          parked documents
                       attaches invoice
                                                      related docs            and approvals
                      parks as complete


                                                      UK department
                                                        can change
                                                     parked document
                                                         with FBV2
                                                                                G/A posts
                                                                                 parked
                                                      UK department            documents
                                                        can delete
                                                     parked document
                                                        with FBV0



                                                      UK department             Files
                                                     can verify posted         journal
                                                      document with           vouchers
                                                           FB03


                                FI_200 Financial Overview v7                                   17
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


                                     UK Department                  UK Department
     Procard Bank                      “parking”                      “posting”

                                       Procard charges
       Procard bank
                                        create “parked
        collects and
                                      documents” using
    transmits charges
                                      default cost center
      to UK overnight
                                        & GL account




                                       UK departments
                                      re-charge costs to
                                                                        UK departments,
                                     correct cost center &
                                                                        after approvals,
                                     GL account via Web
                                                                        select and post
                                      portal and parked
                                                                       parked documents
                                      document is saved
                                         as complete




                                     FI_200 Financial Overview v7                          18
Document Types and Number Ranges
Documents are uniquely identified by a document type and number.
                               Document              Number Range
 Financial Transaction
                                 Type                From            To

 GL Account Document             SA                  0100000000      0199999999

 Stock Materials (Hand fees)     ZH                  0100000000      0199999999

 Vendor Invoice                  KR                  1900000000      1999999999




                                                                                  IRIS Database
 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

                                      FI_200 Financial Overview v7                                19
Demonstration 2.1

Scenario
You want to know the balance for operating expense accounts for a specific month and fiscal
year to date.




                                                         Demonstration




                                       FI_200 Financial Overview v7                           20
From the SAP main menu use transaction code
S_ALR_87012301 - GL Account Balance Display




   FI_200 Financial Overview v7               21
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.




                    FI_200 Financial Overview v7                                 22
         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.




                                            FI_200 Financial Overview v7                                     23
Demonstration 2.2

Scenario
You need to check the details for a particular document for your Cost Center.




                                                          Demonstration




                                        FI_200 Financial Overview v7            24
From the SAP main menu use transaction
code FBL3N – G/L Account Line Items




   FI_200 Financial Overview v7          25
    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.




         FI_200 Financial Overview v7               26
Double click Cost Center to make it
available on the right side.




        FI_200 Financial Overview v7   27
                    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.




                                 FI_200 Financial Overview v7                  28
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


                                  FI_200 Financial Overview v7                                  29
Unit 3




         Funds Management



              FI_200 Financial Overview v7   30
Funds Management (FM) – Fund Centers
• Funds Management is used to organize and track revenue and
    expense in budget format.


• Fund
       A self-balancing set of accounts used to budget and control costs
       Identifies source and use of funding

•   Funds Center
       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.


                                   FI_200 Financial Overview v7                  31
Fund Master Data




                                                  Additional UK Fund Fields




                   FI_200 Financial Overview v7                               32
Funds Center Master Data



                                            Additional UK Fund Center Fields




                   FI_200 Financial Overview v7                                33
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




                       FI_200 Financial Overview v7                                  34
Funds Management – Document Journal Report
• Reports can be customized as needed. They can be:
         Totaled (e.g., Payment Budget field)
         Subtotaled (e.g., Commitment Item field)
         Sorted by any field
         Exported to Excel
         Emailed to someone




                                FI_200 Financial Overview v7   35
Demonstration 3.1

Scenario
You need to find out what the functional area is that is associated with a particular Funds Center.




                                                           Demonstration




                                         FI_200 Financial Overview v7                                 36
From the SAP main menu use transaction
code FMSC - Display Funds Center




   FI_200 Financial Overview v7          37
Enter the Funds Center number
(and FM Area if necessary) and
press enter.




        FI_200 Financial Overview v7   38
FMSC displays Funds Center Master data. It has tabs of information and
one pushbutton. The Functional Area is shown on this additional screen.


                                FI_200 Financial Overview v7              39
Demonstration 3.2

Scenario
You would like to see the documents entered for a fund center and then manipulate the report
data.




                                                         Demonstration




                                       FI_200 Financial Overview v7                            40
From the SAP main menu use transaction
code FMRP_RFFMEP1AX – All Postings




   FI_200 Financial Overview v7          41
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.




              FI_200 Financial Overview v7                                      42
   This is the Document Journal Line Item report.




FI_200 Financial Overview v7                        43
 To total the Payment Budget column, first identify
the column by clicking once on the column header
           and then click on the Total icon.




                FI_200 Financial Overview v7          44
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.




              FI_200 Financial Overview v7                          45
The report is now totaled by the Payment Budget column and
                sub-totaled by GL Accounts.




            FI_200 Financial Overview v7                     46
To sub-total by Fund, identify the column by clicking once on the
      column header and then click on the Sub-Total icon.




              FI_200 Financial Overview v7                          47
The report is now totaled by the Payment Budget column and
                     sub-totaled by Fund.




             FI_200 Financial Overview v7                    48
The report layout can be changed by clicking on the Change Layout icon.




              FI_200 Financial Overview v7                                49
  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.

  FI_200 Financial Overview v7                                        50
Unit 4




         Controlling



           FI_200 Financial Overview v7   51
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.
      Materials Management (requisitions, purchase orders)
      Campus Management (student accounts)
      Human Resources (payroll)
      Financial Accounting (JVs, DAVs)




                             FI_200 Financial Overview v7        52
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



                                 FI_200 Financial Overview v7                       53
CO Master Data – Cost Centers
      Cost Center Hierarchy                             Cost Centers




                         FI_200 Financial Overview v7                  54
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




                                        FI_200 Financial Overview v7                                55
From the SAP main menu use transaction
code KSB1 – Cost Centers: Actual Line Items




    FI_200 Financial Overview v7              56
   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.




FI_200 Financial Overview v7                                    57
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.




                           FI_200 Financial Overview v7                       58
   After entering the information click the Execute   icon.


    Leave the Cost Center and remove
    the Cost Element in the fields.




FI_200 Financial Overview v7                                  59
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.




                FI_200 Financial Overview v7            60
Unit 5




         Grants Management



              FI_200 Financial Overview v7   61
Grants Management

• Used to plan and record all funding related to Sponsored
  projects and Federal Ag appropriations.
• Integrated with other modules via Master data.
      Posting in the General Ledger (FI) are transferred automatically
      Costs can be posted via Vendor Invoices (MM)
      Budget is transferred to FM
• Billing and Payments
      Manual invoices
      Resource Related Billing – to Grant Sponsors
      Milestone and Periodic Billing of Grants
      Posting of incoming payments from sponsors




                              FI_200 Financial Overview v7                62
GM Master Data – Grant Master & Group




                   FI_200 Financial Overview v7   63
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




                                       FI_200 Financial Overview v7                                 64
From the SAP main menu use transaction code
GMGRANTD - Grants Master = Display Only




   FI_200 Financial Overview v7               65
Enter the Grant number and press enter.




          FI_200 Financial Overview v7    66
The Grant Master data contains many tabs of information.




   The General Data tab shows the sponsor, validity
   dates, grant amount, and other information.




      FI_200 Financial Overview v7                         67
       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.




FI_200 Financial Overview v7                                 68
Unit 6




     Unit 6 – Business Warehouse
               Reporting


               FI_200 Financial Overview v7   69
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.




                           FI_200 Financial Overview v7            70
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.




                                    FI_200 Financial Overview v7                            71
Fund Center Balances – Budget vs Actual




                   FI_200 Financial Overview v7   72
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.



                              FI_200 Financial Overview v7   73

								
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