LaGOV LaGOV Version 1.0 Last updated: Sept 10, 2008 Agenda - PowerPoint PPT Presentation

Funds Management – – Period Period Funds Management Funds Management – Period End Processing End Processing End Processing FI- -FM FM- -006 006 FI FI-FM-006 October 8, 2008 October 8, 2008 October 8, 2008 LaGOV LaGOV Version 1.0 Last updated: Sept 10, 2008

Agenda  Logistics, Ground Rules & Introduction  Project Timeline  Workshop Objectives  Business Process Review – Process overview – AS-IS process flow – Current system alignment – Process improvement opportunities – SAP terms Glossary – SAP concepts & functionality – Business process flow – Leading practices – Enterprise readiness challenges  Next Steps – Action items  Questions 2

3 Before we get started ... Logistics

Ground Rules  Has everybody signed in?  Everybody participates – Blueprint is not a spectator sport  Silence means agreement  Focus is key – please turn off cell phones and close laptops  Challenge existing processes and mindsets  Offer suggestions and ideas  Think Enterprise & Integration  Ask questions at any time  One person at a time please  Timeliness – returning from break  Creativity, Cooperation and Compromise 4

Introduction  Roles  Process Analyst and Functional Consultant – lead and facilitate the discussions, and drive design decisions  Documenter – take detailed notes to support formal meeting minutes to be sent by the Process Analyst to all participants for review and feedback  Team Members – provide additional support for process discussions, address key integration touch points  Subject Matter Experts – advise project team members on the detailed business processes and participate in the decisions required to design the future business process of the State Round the Room Introductions Name Position Agency 5

Project Phases  Five Key Phases Preparation Realization Preparation Business Blueprint Go Live Support Project Final and • Strategy & Approach Defined • Development & Unit Testing • Go-Live Support • Project Team Training • Integration Testing • Performance Tuning • End-User Training Materials • Business Process Definition • User Acceptance • Development Requirements • Technical Testing • End-User Training • Conversion 6

Project Organization - Functional Teams Finance Leads Logistics Leads Linear Assets Leads Beverly Hodges – Finance Lead Belinda Rogers – Logistics Lead Mark Suarez – Agile Assets Lead Drew Thigpen – Finance Lead Jack Ladhur – Logistics Lead Charles Pilson – Consulting Lead Mary Ramsrud – Consulting Lead Brad Denham – Consulting Lead General Ledger Accounts Payable Accts Receivable Cash Management Fernando Figueroa Lucie Hidalgo Cost Accounting Richard Lozano Funds Management Grants Mgt Project Systems Asset Accounting Budget Prep Grantor Real Estate Mgt 7

Blueprint Objectives  Review and discuss the Current or AS-IS business processes • Which helps to drive out the Business requirements Business requirements • As well as the integration points integration points with other processes  Define Master Data • Address key integration points • Support organizational requirements • Consistent and appropriate use of data fields  Define Future or TO-BE business processes based on: • Best Practices inherent in SAP • Intellectual capital from other SAP implementations • State business requirements  Identify development requirements • Which could result in the need for a F orm, R eport, I nterface, C onversion, E nhancement, or W orkflow (FRICE-W)  Understand and communicate any organizational impacts / Enterprise Readiness challenges  Gather system security authorizations and district-wide training requirements 8

Work Session Objectives  Review FM Month End Activities  Opening / Closing FM Periods  Transferring Commitments to FI  Review Additional FM Year End Activities  Commitment and associated budget balance carry- forwards  Purchase Requisitions  Purchase Orders  FM Funds Reservations  Residual Budget Carry-Forwards  Fund Balance Carry-Forward 9

FM Sessions Session No of Schedul Description/Major Session # Overview of major Session Topics days e Business Process Group FM master data fields will be introduced. The use, mapping to legacy, naming convention and FI-FM-001 1 days 7-Aug FM Master Data maintenance process will be determined. Need to coordinate Budget Prep design with FM, GM, GTR and PS in ECC 6.0 for budget preparation and budget amendments. Define FM budgeting characteristics including Budget Budget Preparation, Versions, Budget Types/processes (Original, Carry Forward, Supplementary, Transfers & 17-18 FI-FM-002 2 days Amendments and Returns), Budget & Posting address (Budget Structures), Budget Doc types. Discuss options Sep Integration for Budget Amendments/Adjustments (AS-IS & TO-BE). Determine the frequency of “Plan” Retraction to SAP R3 (FM, GM, PS, HR-PBC) and update frequency of “Actual” data into BW cubes, from ECC and other systems Define budget control level (AVC addresses) in FM for departments/agencies, capital projects 22-23 Budget Availability and grant budgets (by FM Master Data) by fund and expense type. Define exceptions for FI-FM-003 2 days Oct and Control - General budget control. Define the FM standard and budget tolerance profiles used by SBBC. Review other FM functionality which may be useful in budget control Budget Availability Define budget control address for work orders from PM and Agile Assets. Determine use of FI-FM-004 1 day 13-Nov and Control - Work automatic reservations at time of order creation. Determine the process for creating related FM Orders master data and coordination with PM/Agile assets master data. FM Budget Process by which FM gets updated for actual expenditures (posting address) Consumption - Pre-encumbrances and encumbrances from MM FI-FM-005 1 day 1-Oct Expenses and FM Earmarked funds – type, use and liquidation process Encumbrances Use of non-consumable budget types for reservations Review FM Month End Activities including Opening / Closing FM Periods and Transferring FM Period End Commitments to FI-GL. Review Additional FM Year End Activities including Commitment and FI-FM-006 1.0 days 8-Oct Processing associated budget balance carry-forwards, Residual Budget Carry-Forwards and Fund Balance Carry-Forwards. Review requirements for budget basis reporting Budgetary Basis FI-FM-007 1 day 12-Nov Review current reports Reporting Determine To Be reports framework 10

SAP Glossary RESIDUAL BUDGET – TRANSFERRING Remaining / unused COMMITMENTS TO FI - Act of appropriation at year end. transferring commitments that Residual budgets = current exist only in FM to FI-GL fund budget – assigned budget (by balance accounts for reporting. actuals and encumbrances). Example: Purchase order Residual budgets can be carry- commitments. forward to new fiscal year, if desired and permitted ASSOCIATED BUDGET – Budget linked to commitments BUDGET BALANCE such as requisitions, purchases CARRY_FORWARD – The orders or funds reservations. closing of revenue and The carry-forward of expenses to fund balance commitments to a new fiscal accounts at year end. years carries with it the “associated” budget linked to those commitments. 11

Funds Management  Fund Accounting  Budgetary Controls FM FM  Budget Execution  Budgetary Basis Reporting  Commitment Accounting 12

Leading Practices • Centralization of period management and all year end carry-forward activities specifically when budget is being carried forward • Fiscal year change activities must be started at an early stage. Open commitments that are not going to be cleared in current year and not carried forward should be cleaned up on a timely basis. • Activities need to be coordinated with year end activities of other modules as part of the overall year end schedule. 13

FM Month End Steps – Open / Close FM Periods  Decision: Period Control will be used for budgeting (FI-FM-002 Workshop)  As part of the month end process, FM periods for budget and actual postings must be updated (i.e. opened and closed)  Proposal: FM period maintenance involves closing the current month and opening the next month for the following: 1) FM Update Periods (actual and commitment updates in FM) • FM will be kept open until the FI & CO periods are closed (after all month end transactions posted) • Month-end day will be determined in the Period End GL session 2) Budgeting Periods: • Day 0 (last day of current month): EOD open the next month for budget activities • Day X : Close out the current month for budgeting activities to coincide with FM Update Period in case of necessary budget adjustments to support actual / commitment updates – Month-end day will be determined in the Period End GL session 14