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Integration Scenarios by jizhen1947

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									   Account NI
Integrated CRP2

    19th April 2007
Agenda
1.   Account NI Programme
2.   Background and Objectives
3.   Approach
4.   Department Role
5.   Feedback
6.   Scenarios
      I.    Catalogue Based Requisitioning
      II.   Non Catalogue Based Requisitioning for an agency
      III. Sales Invoice Processing to Accounting
      IV. Inter Department/Agency Transaction
      V.    Grants
      VI. Period End Time Table
7.   Q&A
8.   Next Steps
Account NI Programme
Wave 1 Timescales


        CRP2

    Design Documents
                        11/05
                        Design Freeze
                       Product Test

                                               Integration Test

                                           Mock Conversion Test

                                               Performance Test

                                                                          User Acceptance

                                                                                            Cut-over
                                                                                                       05/11
                                                                                                       Go-Live

April        May         June           July        August        Sept.           Oct.          Nov.
Account NI Programme
Wave 1 Timescales


   SSC SIPOCs

                   SSC User Procedures

          SSC Wave 1 Recruitment

    Department SIPOCs

                        DFP / OFMDFM User Procedures

                                                       Pilot Training

                                                                        SSC Training

                                                                                       Dept. Training

                                                                                       Readiness Test
                                                                                                         05/11
                                                                                                         Go-Live

April        May          June           July    August           Sept.           Oct.            Nov.
Account NI Programme
Waves 2 to 5


• Wave 2                              • Wave 4
  – Departments - DEL, DETI             – Departments – DE, DCAL, DARD
  – Design starts in June 2007          – Design starts in January 2008
  – Go Live in April 2008               – Go Live in November 2008



• Wave 3                              • Wave 5
  – Departments – DSD, DHSSPS           – Departments – DRD, DOE,
  – Design starts in September 2007       ROADS
  – Go Live in July 2008                – Design starts in June 2008
                                        – Go Live in April 2009
Background and Objectives

 System demonstration of key business processes under the
  Account NI common footprint.
 Demonstrate the roles and responsibilities of Departments,
  Retained Finance and Account NI
 Highlight process dependencies
 Disclose accounting entries generated by each transaction
 Emphasise key messages e.g. No PO, No Pay; Common Period
  End Close
 The scenarios in this session are not an exhaustive demonstration
  of all processes but demonstrate regular transactions
Approach

  The approach of this session is -
          Demonstrate end to end transactions using key business
           scenarios
          Live data entry of transactions on Oracle and Scanning
           Solution (Read Soft)
          Emphasis on tracking transaction flow between subledgers
           and the general ledger
          Online reporting from the reporting solution (Cognos) using
           the ‘GL Transaction Listing Report’
          Highlight key messages
Department Role


Wave 1 departments:
• Design sign-off

All other departments:
• Review the common-footprint to identify design gaps that
  need to be addressed either:
      − now
      − for future waves
Feedback Forms


• Feedback Forms

  – Complete and leave paper form behind TODAY

  AND / OR

  – Electronic form to be returned to damien.dean@dfpni.gov.uk
    within TWO Working Days
 Scenario I – Catalogue Based Requisitioning
 Scenario II – Non Catalogue Based Requisitioning
    for an agency
 Scenario III – Sales Invoice Processing to
    Accounting
 Scenario IV – Inter Department/ Agency
    Transaction
 Scenario V – Grants
 Scenario VI – Period End Time Table
   Catalogue Based Requisition - High
   Level Process Description
     Choose                                              PO - Purchase
                       Approve        PO automatically
  Catalogue &                                                Order
                      Requisition         created
Raise Requisition




  Enter Receipt
                     Transfer to GL    Receive Post      Scan Invoice
     Details




                    Resolve Invoice    Pay Supplier      Transfer to GL
   Match to PO
                        Holds


                                                           Account NI Activity
                       Bank
                    Reconciliation
                                                              Dept Activity
Key Process Benefits

     Self service requisitioning
     Pre Populated catalogues to standardise procurement
     Drive towards ‘No Purchase Order No Pay’
     PO receipting for automated capture of Accruals
     One time approval to spend at Requisition as opposed to Invoice
     Use of Security Rules and Cross Validation Rules to prevent
      incorrect account coding
     Default coding by procurement category
Catalogue Based Requisitioning –
Accounting Entries

 No   Event        Debit Entry                         Credit Entry

 1.   Approve      None
      PO
 2.   Goods        Charge A/c              £3,105.00   AP Accrual Expenses A/c   £3,105.00
      Receipt      010-01173-89220…                    010-00000-84600…

 3.   Invoice      AP Accrual Expenses A/c £3,105.00   AP Control A/c
      Accounting   010-00000-84600…                    010-00000-85100…          £3,648.38
                   VAT 010-00000-83500… £543.38

 4.   Payment      AP Control A/c          £3,648.38   Cash Clearing A/c         £3,648.38
                   010-00000-85100…                    010-00000-84090…

 5.   Bank         Cash Clearing A/c       £3,648.38   Bank A/c                  £3,648.38
      Recon        010-00000-84090…                    010-00000-83930…
Departmental Responsibility

       Follow Common Procurement process
       Timely processing of goods receipt
       Approval to spend based on requisitions
       Ensure accuracy of accounting before submitting requisition
        for approval
       Encourage suppliers to contact Service Management with
         queries
       Compliance to interface timetable and support exception
        handling process
 Scenario I – Catalogue Based Requisitioning
 Scenario II – Non Catalogue Based Requisitioning
    for an agency
 Scenario III – Sales Invoice Processing to
    Accounting
 Scenario IV – Inter Department/ Agency
    Transaction
 Scenario V – Grants
 Scenario VI – Period End Time Table
Procurement models
Current model
 No standard process in use across (or within) departments.
 Some areas have ‘Procurement specialists’ or ‘Buyers’. Others do not.
 Sourcing often performed by the person making the request.
 No integrated solution: contract through to procurement, receipt & payment.


Best Practice model
 Standardised procurement policy and process.
 The majority of purchasing from on-line catalogues.
 All sourcing for non-catalogue purchases performed by a centralised team of qualified
  ‘procurement specialists’.
 Integrated solution facilitating reporting on all procurement practice.
Best Practice Model
(for non-catalogue)
                      All requisitions for non-catalogue purchases will
                      go through a procurement specialist.
     Requisition      The requisition is submitted by the requestor.
                      After approval, this will be routed to a
                      procurement specialist who will source the
                      goods/service and create a Purchase Order. This
      Approver        PO is then re-approved.
                      The Account NI system has been designed to
                      support this model.
                      While this is procurement best practice it relies
     Procurement
       specialist
                      on the existence of centralised procurement
                      specialists.
                      This model requires Departmental agreement
                      and staffing. An interim model is required.
       System
                      Note: This model can be rolled-out on a
    Auto-generates
          PO          department by department basis.
Interim / Go live process


                             At go – live this will be the standard process for
         Requisition
                             all Purchases (including non-catalogue).

                             It does not rely on the online participation of a
                             procurement specialist.
         Approved
                             All sourcing will be carried out prior to raising a
                             requisition on the system.

          System             This will facilitate current procurement practices
       Auto-generates       Procurement
                             in each area. If a business area currently uses
             PO               specialist
                             local procurement specialists they can continue
                             to do so. When the procurement specialist has
                             sourced the purchase, the requestor can raise a
          Supplier           requisition online.
  Non Catalogue Based Requisition - High
  Level Process Description
  Choose Non                                             PO - Purchase
  Catalogue &         Approve         PO automatically
                     Requisition                             Order
Raise Requisition                         created




 Enter Receipt
    Details         Transfer to GL     Receive Post       Scan Invoice




                    Resolve Invoice    Pay Supplier      Transfer to GL
  Match to PO
                        Holds



                       Bank                                    Account NI Activity
                    Reconciliation
                                                                  Dept Activity
Key Process Benefits

     Automation of non catalogue requisitions
     Requestor receives notification for any receipt mismatch
     Recommended approach of one Physical payment Bank Account per
       Departmental Group (Operating Unit)
     Self service requisitioning
     Drive towards ‘No Purchase Order No Pay’
     PO receipting for automated capture of Accruals
     One time approval to spend at Requisition time as opposed to during
      Invoice processing
     Use of Security Rules and Cross Validation Rules to prevent
      incorrect account coding
Non Catalogue Based Requisitioning –
Accounting Entries

No.   Event         Debit Entry                       Credit Entry

1.    Reserve the
      PO
2.    Goods         Charge A/c              £898.00   AP Accrual Expenses A/c    £898.00
      Receipt       011-01911-32400…                  011-00000-84600…

3.    Invoice       AP Accrual Expenses A/c £898.00   AP Control A/c            £1,055.15
      Accounting    011-00000-84600…                  011-00000-85100…
                    VAT                     £157.15
                    011-00000-83500…
4.    Payment       AP Control A/c        £1,055.15   Cash Clearing A/c         £1,055.15
                    011-00000-85100…                  011-00000-84090…
5.    Bank          Cash Clearing A/c     £1,055.15   Bank A/c                  £1,055.15
      Recon         011-00000-84090…                  011-00000-83930…
 Scenario I – Catalogue Based Requisitioning
 Scenario II – Scenario II – Non Catalogue Based
    Requisitioning for an agency
 Scenario III – Sales Invoice Processing to
    Accounting
 Scenario IV – Inter Department/ Agency
    Transaction
 Scenario V – Grants
 Scenario VI – Period End Time Table
Sales Invoice Processing to Accounting
- High Level Process Description
                                                    Fund Transfer
     Request                        Issue Invoice
                   Enter Invoices                      Journal
   Sales Invoice                     to Customer
                                                       Entries


    Invoice
    Dispute          Apply AR          Bank
                                                       Bank
   Resolution        Receipts        Statement
                                                     Statement
                      against       Reconciliatio
                                                      Upload
                     Invoices            n
    Invoice
    Write Off
                                     Apply AP
                      Post to
                                     Payments
                      General
   Perform Debt                        against
                      Ledger
   Management                         Invoices
    Activities                                           Account NI
                                                          Activity

                     Report                             Dept Activity
                   Reconciliatio
    Reporting           n                                  Dept &
                                                         Account NI
Key Process Benefits
  Centralised invoice and receipt recording to ensure consistent
   processing

  Focused debt management process channelled through the Account NI,
   leveraging -

      o   Credit checks performed on new customers
      o   Use of Customer Statements
      o   Reminder Letters and
      o   Recording of collection calls

  Encourage use of Electronic payments - Direct Debit Payments
   through AR

  Use of standard memo lines to default correct account codes

  Use of Security Rules and Cross Validation Rules to prevent incorrect
   account coding
Sales Invoice Processing to Accounting
– Accounting Entries

No.   Event        Debit Entry                       Credit Entry

1.    Sales        Receivable A/c          £146.88   Income A/c              £125.00
      Invoice      010-00000-81800…                  010-01651-10310…
      raised                                         VAT                     £21.88
                                                     010-00000-83510...
2.    Receipt      Remitted Receipts A/c   £146.88   Receivable A/c          £146.88
      Raised &     010-00000-84080…                  010-00000-81800…
      Applied to
      Invoice
3.    Bank         Bank A/c                £146.88   Remitted Receipts A/c   £146.88
      Recon        010-00000-83930…                  010-00000-84080…
Departmental Responsibility


      Complete off line batch forms in time to request AR invoices
        for customers to ensure prompt cash collection
      Ensure all payments received are notified to Account NI
      Support Account NI in bank reconciliation
      Support Account NI in escalated invoice disputes
      Support Account NI in invoice write off decisions
      Compliance to interface schedule and resolution support
 Scenario I – Catalogue Based Requisitioning
 Scenario II – Non Catalogue Based Requisitioning
    for an agency
 Scenario III – Sales Invoice Processing to
    Accounting
 Scenario IV – Inter Department/ Agency
    Transaction
 Scenario V – Grants
 Scenario VI – Period End Time Table
    Inter Department/ Agency Transaction –
    High Level Process Description
                                                      Subject to types of spending




  Raise Requisition / PO                                 Charges paid                  Sales Invoice Raised
                                Receipting
    By Provider Dept                                      To Supplier                    by Provider Dept




Enter Sales Invoice          Sales Invoice                                                Account NI
                                                          Payment made
   and pass to             entered into AP for                                            download
                                                         By Receiver Dept
Account NI AP Team           Receiver Dept                                              Bank Statement




                                    AR receipt / AP                      AR Receipt
          Transfer to GL            Payment Bank                           entered            Account NI Activity
                                    Reconciliation                      for Provider
                                                                            Dept                 Dept Activity
Key Process Benefits

   Common treatment of all inter department/ agency charges
   Sub Ledger driven inter department transactions with drill down capability
   Additional sub ledger details to facilitate reporting including the reporting of
    Counter Party Identifier (CPID) information.
   Reconciliation of bank transactions generated in Accounts Payable and
    Accounts Receivable respectively.
   Reconciliation of cost pass through accounts
Inter Department/ Agency – Cost Pass
- Accounting Entries
 Provider Department

 No.   Event         Debit Entry                     Credit Entry

 1.    Invoice       Charge A/c           £720.00    AP Control A/c       £1,410.00
                     010-01564-32100…                010-00000-85100…
                     Cost Pass Through
                     010-01564-82320…      £480.00
                     VAT
                     010-00000-83500…      £210.00
 2.    Payment       AP Control A/c      £1,410.00   Cash Clearing A/c    £1,410.00
                     010-00000-85100…                010-00000-84090…
 3     Bank Recon.   Cash Clearing A/c   £1,410.00   Bank A/c             £1,410.00
                     010-00000-84090…                010-00000-83930…


 4.    Sales         Receivable A/c       £480.00    Cost Pass Through   £480.00
       Invoice       010-00000-81800…                010-01564-82320 …
Inter Department/ Agency – Cost Pass
- Accounting Entries (Cont’d)
Receiver Department

No.   Event     Debit Entry                       Credit Entry
5.    Invoice   Charge A/c              £480.00   AP Control A/c          £480.00
                020-05051-32100…                  020-00000-85100…
6.    Payment   AP Control A/c          £480.00   Cash Clearing A/c       £480.00
                020-00000-85100…                  020-00000-84090…
7     Bank      Cash Clearing A/c       £480.00   Bank A/c                £480.00
      Recon.    020-00000-84090…                  020-00000-83930…

Provider Department

No.   Event     Debit Entry                       Credit Entry

8.    Receipt   Remitted Receipts A/c   £480.00   Receivable A/c          £480.00
                010-00000-84080…                  010-00000-81800…
9     Bank      Bank A/c                £480.00   Remitted Receipts A/c    £480.00
      Recon.    010-00000-83930…                  010-00000-84080 …
Departmental Responsibility

    Provider Department raises Purchase Order (depending on the service to
     be procured) to third party Supplier on behalf of the receiver department.
    Provider Department receipts a ‘Cost-Pass Through’ Purchase Order to
     generate up to date accruals.
    Provider department raises an off-line form for a Sales Invoice to initiate a
     claw back for Goods/Services procured and paid.
    Receiver Department approves the corresponding invoice raised in
     Accounts Payable.
 Scenario I – Catalogue Based Requisitioning
 Scenario II – Non Catalogue Based Requisitioning
    for an agency
 Scenario III – Sales Invoice Processing to
    Accounting
 Scenario IV – Inter Department/ Agency
    Transaction
 Scenario V – Grants
 Scenario VI – Period End Time Table
 High Level Grants Process Description
   Off-Line Process


           Grant                Create Planned PO                        Create Release
                                                        Approve
         Application              (to represent a                        (to represent a
                                                       Planned PO
          & Award                Grant Agreement)                       Grant Instalment)




                      Approve          Enter Receipt
                      Release             Details




                                          Invoice
                                       automatically     Pay Grantee   Transfer to GL
                                         generated


Account NI Activity                                                    Run Reports

   Dept Activity
Key Process Benefits

     Grant approval routing based on workflow rules
     Approval based on pre defined approval limits and account range
      specifications
     Auto generation of default account codes from grants category
      definition
     Automated creation of Grant invoice and subsequent payments
      on recording of a receipt
     Use of Security Rules and Cross Validation Rules to prevent
      incorrect account coding
Summary of Grant Reports

 There will be 5 Grants reports which can be accessed using drill-down
  functionality:

 Grant Agreement Header Report
 This report will show information relating to the Grantee and PPO at a
  summary level. e.g. total commitment, total amount receipted and total
  amount billed.

 Grant Agreement Lines Report (drilled from Grant Agreement Header
  Report)
 This report will show information relating to the Planned PO line. E.g. line
  type (grants or retention), financial period/year, category, description and
  associated amounts.
Summary of Grant Reports (Cont’d)

 Grant Agreement Distributions Report (drilled from Grant Agreement
  Lines Report)
 This report will show information relating to the Instalment Distributions. E.g.
  Charge account, grant instalment amount released, receipted and billed.

 Grant Instalment Lines Report (drilled from Grant Agreement Lines
  Report)
 This report will show information relating to each Instalment line for a
  specified Grant E.g. Instalment Amount and if the grant instalment has been
  validated.

 Grant Instalment Distributions Report (drilled from Grant Instalment
  Lines Report)
 This report will show information relating to the Instalment Distributions. E.g.
  Charge account, grant instalment amount released, receipted and billed.
Departmental Responsibility

         Setting up a Grant as a Planned Purchase Order (PPO) on
          the system
         Raising Instalments against pre-approved Agreements
         Recording of receipts and auto invoice generation
         Periodic inspections to ensure instalment requests have
          been properly earned prior to Instalment approval
         Update cost centre information for default charge account
          on the PPO
         Additional offline calculation of Grant Accruals
 Scenario I – Catalogue Based Requisitioning
 Scenario II – Non Catalogue Based Requisitioning
    for an agency
 Scenario III – Sales Invoice Processing to
    Accounting
 Scenario IV – Inter Department/ Agency
    Transaction
 Scenario V – Grants
 Scenario VI – Period End Time Table
Key Process Benefits
    Common close time table across all departments and agencies
    Faster Close cycle driven by:
          Use of sub ledger to capture automated accruals
          Accurate data entry supported by tightly controlled cross
           validation rules & security rules
          In principle, sub ledger accounting is captured throughout the
           month as opposed to period end.
    Emphasis on correct data entry at source as opposed to General
      Ledger within the Period
    Drive away from previous period adjustments
    Period End Close - Key Points

•    Sub ledgers close at T+1
•    General ledger closes at T+6
•    Ensure all open purchase orders are received on Oracle prior to period end
•    Grant accruals are entered prior to period close as reversible journals
•    RFF update RAM templates and return to Account NI at period end
•    Departments run Budget Holder Report to review and resolve any
     discrepancies and ensure budget is up-to-date
•    Start to review draft trial balance at T+2
•    Ensure Orphan report is completed
       Proposed Period End Closing Timeline
T-0 =Last
                                               Period
working                                                                                    Outside
                                               close(SL)
day.                                                                                       Bodies
                                               Open new                                    balances
                                               Period(all)                                 return.
                                               FA
                                               Addition                       Calculate & Post        CED
     Issue
                             Final sub-        report                         Depric & CoC            mappings
     Timetables
                             ledger            issued                         costs*                  updated.
                   Issue     trans-             RFF to update Fixed Asset     RFF report              Report Checking.
                   GRN       actions .         Details*                       checking.
                   report              Reconcile
                                       SL
             RFF to process grant accruals, adjustments, budgets etc*                                 FA Reconciliation

                             All GRNs                                                      Outside
                             entered.                                                      Balances
                                                                                           upload     CED
                                                                                                      Return
                                 CPT
                                 account                             FA                    CED
                                 to be                                                     Journal                    Reports
                                                                     return
                                 cleared.                                                  run        GL Close        Scheduled.
                                                                     made


                                                                                                                                       * When a task
                                                                                                                                       covers more than
                                                                                                                                       one day it spans
                                                                                                                                       both am & pm.

     Year Start     T -4           T -0          T +1        T +2      T +3     T +4         T +5       T +6            T +7

       Issue      Process        Final         Sub Ledger       RFF update    FA Team      FA Team    CED report       Report
       Timetables adjustments    transaction   period           FA            update       finalise   issued. GL       checking.
                  , grant        s created     close            template.     RAM          RAM        Period close.    Reports
                  accrual etc.   in sub-                                                   update.                     scheduled
                                 ledger.                                                                               for overnight
                                                                                                                       run.
Departmental Responsibility

         Align month end processes with Account NI schedule.
         Minimise the use of manual journals as far as possible to
          ensure an efficient period end close
         Approve all documents (Purchase Requisitions, Invoices and
          Journals) to ensure timely accounting
         Prompt receipting of goods and services
         Submit exceptional manual accruals before cut off date e.g.
          Grants
Next Steps


• Friday 27th April 2007   FD Review

• Friday 4th May 2007      Formal FD close

• Friday 11th May 2007     Design Freeze

• Wed 16th May 2007        Account NI Board

								
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