"TITAN SAP Training"
Finance and Purchasing Overview 1 Finance & Purchasing Overview COURSE OVERVIEW Finance & Purchasing SAP Overview Overview Tarrant County Implementation Finance & Controlling Modules Materials Management Module Getting Help Accessing Training Materials 2 Finance & Purchasing Overview COURSE OBJECTIVES The Finance & Purchasing Overview course has two purposes: Introduce SAP and the finance and purchasing modules Prepare you for role-specific training courses Objectives of the course: Review SAP system and integration Understand Tarrant County implementation Become familiar with terms Provide a high level understanding of: ► General Ledger Functionality ► Accounts Receivable Functionality ► Accounts Payable Functionality ► Asset Accounting Functionality ► Controlling Functionality ► Grants Management Functionality ► Funds Management Functionality ► Materials Management Functionality How to get Help How to access training materials 3 Finance & Purchasing Overview Lesson 1: SAP Overview SAP stands for Systems, Applications, and Products The SAP system is a fully- integrated system where activities in one area generate activities in another area The system provides online, real-time information and one place for input of data 4 Finance & Purchasing Overview Modules in SAP SAP is made up of various functional modules Each module covers a different business function Tarrant County is using the following modules: CO Controlling FI Financial Accounting HR Human Resources/Payroll MM Materials Management GM Grants Management FM Funds Management TC is also using ESS (Employee Self Service) for employees to enter time and maintain personal information. 5 Finance & Purchasing Overview How They Work Together HR/Materials Other Management FI Module Financial Modules Modules ASSETS FUNDS PAYROLL MANAGEMENT ACCOUNT S PAYABLE PURCHASING CONTROLLING INVENTORY GRANTS MANAGEMENT ACCOUNTS MANAGEMENT RECEIVABL E 6 Finance & Purchasing Overview Integration in SAP System Integration ►When a transaction is executed in any module, SAP automatically updates data in all application modules that are affected ►Benefits of Integration Enables simplified business processes, standard data definition, and a common business language Simplified business processes enhance productivity to allow focus on value-added activities Data has to be entered only once and all related information is updated automatically Integration eliminates need for redundant analysis and reconciliation 7 Finance & Purchasing Overview Business Flow Integration Vendor Requisitioner Procurement Officer $$$$$ Receiver GL Accountant Budget Officer Asset Manager Accounts Payable Officer 8 Finance & Purchasing Overview Hitting the G/L Goods Receipt Goods Issue MM MM Direct Posting Invoice G/L Verification AP Customer Payments AR Charges MM Vendor Payments AP Charges AP Depreciation Vendor AA Invoices AP 9 Finance & Purchasing Overview Data SAP contains two types of information ► Master Data A collection of information about an object or person It is referenced whenever that object or person is used in an entry field This data does not normally change Examples are address and payment information for a vendor or customer ► Transactional Data Information associated with a specific business activity You enter this information in SAP Changes from day to day Examples are: – Invoices – Purchase requisition 10 Finance & Purchasing Overview Master Data vs. Transactional Data Master Records G/L Accounts Records that remain Customer Master Records Vendor Master Records in the system for an Grants Master Records extended period of Asset Masters time. Material Master Records Transaction Records Journal Entries Invoices Records a specific Payment event Requisitions 11 Finance & Purchasing Overview Examples of Master Data Tarrant County Purchase Order Vendor P.O. # 56789 Master Date: July 2, 2004 To: ABC Company, Data Vendor #1001 12345 Any street Any town, USA 54321 Qty $$ Widgets (material #15005), 10 bx 10.00 box of 10 Material Total 100.00 Master Data 12 Finance & Purchasing Overview Examples of Transactional Data Tarrant County Purchase Order P.O. # 56789 Date: July 2, 2004 To: ABC Company, Vendor #1001 12345 Any street Any town, USA 54321 Transactional Data Cost Center 987 Qty $$ Widgets (material #15005), 10 bx 10.00 box of 10 Total 100.00 13 Finance & Purchasing Overview Documents & Document Types A Document generally consists of a document header and line items. ► Document header – contains data that identifies a document and applies to the entire document. Date Document type Document number ► Line items – generally include Amount Account assignment Additional details specific to the transaction Document Types are located on the header portion of every document ► Distinguish between different business transactions ► Control document number assignment ► Help manage accounting documents 14 Finance & Purchasing Overview Document Structure The Accounting Illustration Document Document No: SAxxxxxx Header Date: 05/06/2004 Company Code: TC01 Currency: USD Revenue A/C DR CR Bank 10000 Citibank Line Items DR CR Sale 10000 Debits = Credits 15 Finance & Purchasing Overview Document A document type is a key that is used Types to classify accounting documents and distinguish between business Illustration transactions to be posted 16 Finance & Purchasing Overview Purchasing Document Types RFQ Purchase Requisition Purchase Approval Order Contract Master Data 17 Finance & Purchasing Overview Tarrant County Document Types Document Type Description AA Asset posting AB Accounting document DA Customer document DG Customer credit memo DR Customer invoice DZ Customer payment KA Vendor document KG Vendor credit memo KR Vendor invoice KZ Vendor payment SA G/L account document SB G/L account posting WA Goods issue WE Goods receipt 18 Finance & Purchasing Overview Terms Standard SAP terms: Application – computer program Client – unit in SAP system where data is input, changed, and managed Data – pieces of information; numbers or text ERP – Enterprise Resource Planning; designed to integrate and run all aspects of an organization Information – data that has been collected Integrated – transactions that are completed in one module or process trigger transactions in other modules Menu Path – sequence of menu selections that should be followed to get to a function or screen Module – portion of SAP system that carries out a specific business function Real-time – describes how data that has been entered into the system is available immediately after the transaction has been saved. Everyone has access to the same data. Session – instance of SAP; allows multi-tasking within system Transaction – screen or series of screens to create, display, or change data Transaction code – (t-code) unique identifier for each transaction that allows you to get to a transaction without going through the menu User role – assigned to each employee; set of activities used by the employee Variants – a saved set of personal selection criteria which can be used for lists and reports 19 Finance & Purchasing Overview Lesson 2: Tarrant County Implementation Tarrant County is implementing the following modules in SAP: Human Resources (HR) Takes care of payroll, time recording, applicant administration, and organization data. Supports the planning and control of personnel activities. In use since October 2003 Financial Accounting (FI) Designed for automated management and reporting of General Ledger (GL) Accounts Receivable (AR) Accounts Payable (AP) Asset Accounting (AA) External reporting, such as income statement and balance sheet Controlling (CO) Represents cost and revenue flows throughout the organization Aids in organizational decision making Supports internal reporting such as cost center reports 20 Finance & Purchasing Overview Tarrant County Implementation (cont’d) Tarrant County is implementing the following modules in SAP: Materials Management (MM) Supports the complete cycle of material flow, from the requisition to purchase to the warehousing and distribution Grants Management (GM) Manages the application, award, budget tracking, and closing of a grant Funds Management (FM) Supports the management of budgets Budget can be adapted to changes in conditions by entering releases, supplements, returns, and transfers Tracks expenses to budget Tarrant County is also using Employee Self-Service for employee entry and management of time, personal data, training & events, appraisals, and benefits enrollment. 21 Finance & Purchasing Overview Tarrant County Finance & Purchasing Modules Materials Funds Grants Financials Controlling Management Management Management (FI) (CO) (MM) (FM) (GM) General Purchasing Ledger Asset Accounting Inventory Accounts Payable Accounts Receivable 22 Finance & Purchasing Overview Organizational Elements The following organizational elements and codes are used in Tarrant County: ► Company Code – TC01 Organization unit where individual financial statements are created Self-contained Chart of Accounts ► Controlling Area – TC01 Self-contained organization unit where management of costs and revenues is performed ► Purchasing Organization – TC01 Organizational unit that procures materials or services ► Chart of Accounts – TC01 List of all General Ledger (GL) accounts used ► Plants Organizational unit for Admin and Stockrooms – Tarrant County Admin (all non-stock purchases) – TC01 – Sheriff (Stockroom) – TC04 – Justice Center (Stockroom) – TCJC – Central Supply (Stockroom) - TCCS 23 Finance & Purchasing Overview Tarrant County Organization Structure Chart of Accounts – TC01 FI • For all (AP, AR, GL, AA) process settings Controlling Area – TC01 • For management reporting CO module settings Purchasing Organization – TC01 • For all Purchasing settings MM Company Code – •Basic entity in SAP for a legal FI/MM entity TC01 Plant – TC01 Plant - TCJC MM • For all Logistics settings Plant – TC04 Plant - TCCS 24 Finance & Purchasing Overview Tarrant County Implementation Tarrant County terms: GASB – Governmental Accounting Standards Board Go-Live – date when SAP module is scheduled to run live in production system ► Phase I – 10/01/03 HR/Payroll ► Phase II – 07/06/04 Financial/Purchasing ► Phase III – 04/01/05 Budget Prep Legacy System – existing County system that either interfaces with SAP or provides data for start up of SAP Production System – live SAP system used for normal operations SME – subject matter expert; County employee who has experience or expertise in a specific functional area TITAN – Titan Integrated Task Access Network; County implementation of SAP system 25 Finance & Purchasing Overview Tarrant County Implementation Why Change?? Systems with duplicate data Have to use different systems to enter and get information Have to wait for processing to get data What Does Business Change Involve? Changing the way we work Changing our roles Changing the ‘tool’ 26 Finance & Purchasing Overview Tarrant County Implementation How Will Change Affect Us? Major changes such as Tarrant County is implementing will have an initial effect on peoples’ performance Over time, the benefits achieved will far outweigh the initial impacts Time Initial Maximum Continuous Change Benefits Improvement Achieved 27 Finance & Purchasing Overview Lesson 3: Finance & Controlling Modules 28 Finance & Purchasing Overview What is FI and CO? Financial Accounting (FI) and Controlling (CO) are independent components in the SAP system. The two components are tightly integrated and the data flow between them takes place on a regular basis. General FI Manages all financial accounts Ledger Accounts FI Manages vendor invoices Payable Accounts FI Manages customer billing Receivable FI Asset Manages fixed assets and Accounting depreciation CO Controlling Manages responsibility accounting 29 Finance & Purchasing Overview Reporting Overview Auditors EXTERNAL Journalists AGENCIES Media Tax Authorities Insurers FI Financial Accounting External Financial Analysts External Financial Statements Managerial Reports Internal CO Controlling Internal Tarrant County Management Tarrant County Employees 30 Finance & Purchasing Overview Financial Accounting (FI) The FI module is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable, asset accounting, and other sub-ledger accounts within the chart of accounts This is the key component structure of financial accounting Master General Accounts Accounts Fixed Periodic Records Ledger Payable Receivable Assets Processing 31 Finance & Purchasing Overview Financials (FI) General Ledger (GL) Financials (FI) General Ledger Asset Accounting Accounts Used for external Contains Payable reporting Accounts Receivable Document entry ► General Ledger Account Management Accounts ► Chart of accounts 32 Finance & Purchasing Overview General Ledger (GL) Roles & Responsibilities Financials (FI) General Ledger Asset Departments Accounting Accounts Payable Display general ledger accounts, documents, Accounts and line items Receivable Auditor Maintain G/L accounts Approve and post documents 33 Finance & Purchasing Overview Financials (FI) Accounts Receivable (AR) Financials (FI) General Processes cash receipt Ledger Contains Asset transactions for either Accounting ► Customers accounts receivable or Accounts ► Billing logic Payable revenue transactions Accounts ► Dunning Receivable Invoices or bills customer for amount due 34 Finance & Purchasing Overview Accounts Receivable (AR) Roles & Responsibilities Financials (FI) General Departments Ledger Asset Accounting Record cash receipts into Cash Journal Accounts Enter customer invoices / credit memos to create Payable receivables Accounts Receivable Auditor Check entries and posts cash journals Perform new customer setup 35 Finance & Purchasing Overview Financials (FI) Accounts Payable (AP) Financials (FI) General Ledger Process invoices Contains Asset Accounting Generate warrants/checks ► Vendors Accounts by due date or discount Payable ► Warrants date ► Checks Accounts Receivable Produce 1099 Reports 36 Finance & Purchasing Overview Accounts Payable (AP) Roles & Responsibilities Financials (FI) General Ledger Department Asset Enter Invoice Documents Accounting Park documents when invoice verification fails Accounts Payable Accounts Receivable Auditor Maintains Vendor Master Reviews entered documents (except parked documents) and releases invoices for payment Reviews parked documents to resolve problems; may contact the vendor, requisitioner or buyer. Issues checks for invoices with a free for payment status 37 Finance & Purchasing Overview Financials (FI) Asset Accounting (AA) Financials (FI) General Ledger Provides management of Contains Asset capitalized or tracked Accounting assets ► Tag numbers Accounts Payable Generates depreciation ► Asset Classes Accounts Receivable transactions for the ► Depreciation profiles general ledger ► Capitalized assets ► Tracked assets 38 Finance & Purchasing Overview Asset Accounting (AA) Roles & Responsibilities Financials (FI) General Ledger Asset Department Accounting Accounts Payable Create the asset shell at the requisition stage Accounts Receivable Auditor Maintain asset master records Issue asset tags for Capital and non-computer low value assets Update the records for additional information such as serial numbers Update Capital Asset record master data 39 Finance & Purchasing Overview Controlling (CO) The CO module represents the County’s flow of costs and revenue. It is also a management instrument for organizational decisions. A key tasks is the analysis of FI data. Variances can be determined by comparing actual data with plan data. This is the key component structure of Controlling: Cost Element Cost Center Internal Accounting Accounting Orders 40 Finance & Purchasing Overview Controlling (CO) Controlling (CO) Used for managerial Contains reporting or activity ► Cost Centers reporting ► Projects Used to collect and allocate ► Internal Orders costs 41 Finance & Purchasing Overview Controlling (CO) Roles & Responsibilities Controlling (CO) Department Display: CO reports Cost center/cost center group data Internal order/internal order group data Budget information for internal orders Auditor Display CO reports Create, change, and display: Cost centers/cost center groups Internal orders/internal order groups Internal order budget information 42 Finance & Purchasing Overview FI/CO, GM & FM Integration & Terms FI/CO GM FM Grant Grant Grant Fund Fund Fund Cost center, Sponsored Program Fund Center, Funded Functional Area Program, Functional Area Cost Elements & Sponsored Class Commitment Item GL Accounts Fiscal Year Budget Validity Period Fiscal Year 43 Finance & Purchasing Overview Grants Management (GM) Grants Management (GM) Plan, budget, identify, obtain, and record all funding related to awarded grants Differentiate between Contains: eligible and ineligible costs ► Grant lifecycles ► Grant details Bill and record sponsor ► Grant reports amounts Record and report all related costs, revenues, and required information 44 Finance & Purchasing Overview Grants Management (GM) Roles & Responsibilities Grants Management Department (GM) Display Grants Grant budgets Grant reports County Administrator’s Office Display Grants Grant budgets Grant reports Create grants Auditor All above Maintain grant master data Manage grant cycles Monitor grant postings 45 Finance & Purchasing Overview Funds Management (FM) Funds Management (FM) Maintains budgetary Contains control for all expense ► Funds activity ► Fund Centers ► Commitment Items $$$$$ Budget Officer 46 Finance & Purchasing Overview Funds Management Roles & Responsibilities Funds Department Management (FM) ‘Pre-post’ budget transfers for adjustment within their own level of departmental control Post transfers within budget control categories of commitment items Budget Office ‘Pre-post’ budget transfers between departments Generate report listing pre-posted transfers needing Commissioner’s Court approval Post transfers after approved by Commissioners Court Create supplement, return, and entry budget documents Auditor Create and change funds block Create and change funds reservation Create and change funds commitment 47 Finance & Purchasing Overview Lesson 4: Materials Management Module (MM) 48 Finance & Purchasing Overview Materials Management (MM) The MM application component supports the procurement and inventory functions occurring in day-to- day business operations such as: materials planning and control, purchasing, goods receiving, and inventory management. Invoice verification is an MM function but is executed by Accounts Payable. This is the key component structure of Materials Management: Invoice Master Inventory Purchasing Verification – Records Management (Done by AP) 49 Finance & Purchasing Overview Materials Management (MM) Purchasing is responsible for: ► External procurement of materials and services ► Determination of sources of supply (vendors) ► Monitoring deliveries from vendors Inventory Management is responsible for: ► Management of stocks ► Planning, entry, and documentation of all goods movements Key Terms ► A purchasing organization is an organizational unit that procures materials or services. It negotiates purchasing conditions for plants assigned to it. ► A plant is an operating unit that makes goods available for distribution. 50 Finance & Purchasing Overview Materials Management (MM) Purchasing Integration Materials Funds Grants Grants Financials Controlling Management (FI) Management Managemen Management (MM) (CO) (FM) (GM) (GM) Purchasing General Inventory Ledger Asset Log. Invoice Accounting Verification Accounts Payable 51 Finance & Purchasing Overview Materials Management (MM) Integration of Inventory Funds Grants Materials Financials Controlling Management Management Management (FI) (CO) (MM) (FM) (GM) Purchasing General Ledger Inventory Log. Invoice Asset Verification Accounting Accounts Payable 52 Finance & Purchasing Overview Materials Management (MM) Materials Management (MM) Purchasing Purchasing Inventory Use to order or contract Contains for goods or services. ► Requisitions Supports requests for ► RFQ quotes from vendors for ► Purchase orders goods ► Vendor Performance Processes receipt of goods ► Contracts ► Vendor 53 Finance & Purchasing Overview Materials Management (MM) Purchasing Roles & Responsibilities Materials Management Departments (MM) Create, change, display purchase requisitions Purchasing Material Service Inventory Asset Grant Create asset shell Approve purchase requisitions Post goods receipts Post service entry sheets View material mater, vendor master, and service master records Purchasing Department Display/report on vendor, material, and service master records Create, change, display purchase orders and RFQs Display/report on quotation and purchase order price histories Maintain bids, Info Records, source lists, outline agreements, and contracts 54 Finance & Purchasing Overview Materials Management (MM) Inventory Materials Management (MM) Use for supplies inventory Purchasing Supports storing and issuing goods from warehouses Inventory Contains MRP (materials requirement ► Plants planning) ► Delivery Addresses Physical inventory processing 55 Finance & Purchasing Overview Materials Management (MM) Inventory/Audit Contracts Roles & Responsibilities Materials Management (MM) Departments Purchasing Display/report on vendor master records, material master Inventory records, material documents, service master records, purchase orders, and contracts Process goods movements Goods receipt Goods issue Reversals Post service entry sheets Purchasing Department Display/report on vendor master records, material master records, material documents, service master records, purchase orders, RFQs, and contracts Create/change contracts Create/change purchase orders 56 Finance & Purchasing Overview Materials Management (MM) Inventory/Audit Contracts Roles & Responsibilities Materials Management (MM) Warehouse Stock Clerks Display/report on vendor master records, material master Purchasing records, material documents, service master records, purchase orders, and contracts Inventory Process goods movements Goods receipt Goods issue Reversals Run various inventory management reports Perform MRP (materials requirement planning) and post to funds management Perform/enter physical inventory counts Create, change, and display physical inventory documents Create purchase requisitions for stock replenishment Auditor Display/report on vendor master records, material master records, material documents, service master records, purchase orders, and contracts Create/change contracts Create/change purchase orders Process goods movements Post service entry sheets 57 Finance & Purchasing Overview Lesson 5: Getting Help 1 Review the on-line help in SAP 2 Review your training materials and notes. 3 Ask your peers or super user for assistance. 58 Finance & Purchasing Overview Tarrant County Help Problems with running tutorials? Training Mailbox – firstname.lastname@example.org After utilizing the various methods of help on the previous page, if you still have questions or problems or If you have problems at any time with accessing SAP, printing, computer or network problems, etc. Contact the Tarrant County IT Help Desk at 817-884-3507 59 Finance & Purchasing Overview Lesson 6: Accessing Training Materials All TITAN training materials for Finance & Purchasing are stored on the Tarrant County website This website is accessed through your Internet Explorer from any computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Materials website is: http://www.tarrantcounty.com/titan/lib/titan/training/index.asp Set up this website as a favorite in your web browser for quick future access Enter the URL above in the address field in your browser When you reach the website, go to Favorites>Add to Favorites in the Browser menu A pop-up window will be displayed with a default name for the site. Click OK. To access this site in the future, just click on the Favorites item in the browser menu and highlight the name for the website. You will go directly to the website. 60 Finance & Purchasing Overview Accessing Training Materials (cont’d) Review the instruction page to understand how to use the website Click on the Courseware link at the top of the Instruction page A Listing of Courses will be displayed Click on the Course Title to see a general description of the content of the course or Click on one of the buttons beside the Course Title to go directly to either the Overview, Quick Reference Cards, or Tutorials These training materials will be available for your use and reference at any time 61 Finance & Purchasing Overview Running Tutorials An additional learning tool is being provided with the Phase II SAP implementation -- Tutorials Tutorials are simulations of the SAP system that take you through a transaction step-by-step in a mock SAP environment These can be viewed in two ways: ► As a movie that takes you through the transaction in a demonstration, or ► As an interactive, hands-on practice session that stops at each step and directs you to make entries in fields or take actions per instructions provided by the wizard and in the bubbles Tutorials are provided with each course in the Finance and Purchasing training A list of the tutorials is provided at the end of each course. Go to the Training Materials website to access and run these tutorials. Detailed instructions are provided on the website when you click on the Tutorials button Happy Tutoring!! 62 Finance & Purchasing Overview Training Sandbox An SAP environment (Training Sandbox) where you can practice your skills in a real instance of SAP will be available after mid- June The sandbox can be accessed through the standard logon process discussed in Lesson 2 of the SAP Basic Navigation course The only differences are: Highlight the Training environment on the logon pad Click logon Enter 520 in the Client field Enter the same User Id and Password you are assigned for Production Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the Quick Reference Cards to walk you through the transactions. 63 Finance & Purchasing Overview COURSE SUMMARY Congratulations!! You have completed the Finance & Purchasing Overview and have reviewed the following topics: SAP system and integration Tarrant County implementation Terminology High level functionality: General Ledger Accounts Receivable Accounts Payable Asset Accounting Controlling Grants Management Funds Management Materials Management Getting Help Accessing training materials You are now ready to complete your role-specific training courses 64 Finance & Purchasing Overview