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iris.tennessee.edu iris.tennessee.edu Presentation Transcript

  • University of Tennessee Finance Business Blueprint 1
  • Agenda
    • Business Blueprint Executive Summary
    • Goal of Business Blueprint
    • Tools Used
    • Enterprise Structure
    • Module Overview
    • Business Fit
    • Issues / Gaps
    • Change Management / Training Concerns
    • Authorizations
  • Business Blueprint Analysis Goals
    • Determine UT’s business process requirements
    • A chieve a common understanding of how UT intends to run its business within the framework of SAP R/3
    • Deliver a record of results gathered
    • Move into the next phase with enough information to complete baseline configuration
  • Business Blueprint Analysis Tools
    • Business Process Questions (by process)
      • Standard questions regarding UT’s organizational structure, processes and business needs
    • Detailed Workshops
      • Meetings with key users to discuss business processes and business needs
    • Customer Input Templates
      • high level summary of Processes
    • Business Process Transaction
      • Business Process Master List (BPML)
  • Business Blueprint Analysis Activities
    • Business Blueprint Workshops
    • Detail Requirement Workshops
    • Preparation of Business Blueprint Deliverables
      • Creation and review of all Q&A questionnaire
      • Creation and review of CI Templates
      • Creation and review of BPMLs
      • Creation and review of RICES
      • Update issue log (which includes the major gaps).
  • Financial Accounting Enterprise Structure – General Ledger
  • Financial Accounting Enterprise Structure - Controlling
  • Financial Accounting Enterprise Structure – Project Systems
  • Financial Accounting Enterprise Structure – Procurement
  • General Ledger
    • Chart of Accounts includes general ledger accounts, the equivalent of object codes (expenditures, revenues, assets, liabilities, and fund balances)
    • Posting of journal entries to the General Ledger (direct and through automatic account assignment from other modules)
      • Direct postings – journal entry (JV, TV, etc.)
      • Automatic account assignments – payroll postings
  • Special Purpose Ledger
    • Balance Sheet and Revenue and Expenditure Reporting by Fund
      • Automatic cash offset posting
      • Internal reporting by fund
    • Balance Sheet and Revenue and Expenditure Reporting by Fund Group and Budget entity
      • For monthly Treasurer’s Report
      • For external financial statements
  • Asset Management
    • Supports tracking and management of fixed assets (equipment, buildings and land)
      • Leased and owned equipment
      • Sensitive item tracking
      • Integration with MM to benefit from automatic capitalization at time of goods/invoice receipt
      • UT will have new functionality to meet GASB requirements to depreciate their assets July 2001
  • Cash Management
    • Cash management manages UT’s short term cash flow and Bank Ledger accounting
      • Evaluate UT cash position
      • Lockbox cash receipts
      • Bank statement input and bank reconciliation
      • Deposit handling and Cashed Check reconciliation
      • Monitor cash inflows and outflows to ensure on optimum amount of liquidity to meet required payments
  • Controlling
    • Provides collection of costs for unrestricted accounts
      • Cost Centers – UT E & I accounts
      • Profit Centers - UT departments
      • Cost/Revenue Elements – expenditure and revenue codes
      • Departmental Planning for cost centers – plan vs actual analysis
  • Funds Management
    • Provides monitoring and control of budgets for both state and local appropriations as well as sponsored programs
      • Commitment items – UT object codes
      • Funds centers – UT organizational units
      • Funds – UT accounts
      • Budgeting at the fund level
      • Funds availability control at the fund level
  • Project Systems
    • Project accounting (revenue and expenses) for UT restricted funds
      • Planning (dates, costs at the cost element level)
      • Overhead calculation (F&A)
      • Integration with FM (wbs element link to funds), AM (plant funds will require AuC’s) and SD (sponsor billing)
  • Accounts Payable
    • Single vendor master database ownership by A/P dept – purchasing view updated by purchasing dept
    • Invoice processing
      • Processing of purchase order invoices via Logistics Invoice Verification (LIV)
      • On-line 3 way matching of invoice/PO/goods receipt
      • Processing of direct vouchers without purchase order
    • Automatic and manual payment process
      • Manages payments based on frequency of payment runs & payment terms specified in the vendor master record or invoice
    • Integration with Travel Management
  • Sales and Distribution
    • Supports billing of sponsor reimbursable funds
      • Cost reimbursable (resource related billing)
      • Schedule billing (example $15,000 each month)
      • Item billing (example trial testing)
      • Letter of credit (draw down)
      • Retainage
  • Accounts Receivable
    • Single customer master database of sponsored projects shared with Sales and Distribution
    • Invoice processing for sponsored projects
      • Integration with Sales and Distribution billing
      • Supports accounting for manual billing
    • Application of incoming payments for sponsored projects
    • Supports dunning for sponsored projects
  • Travel Management
    • Employee and Guest Travel
      • Travel Authorizations
      • Travel Advances
      • Entry and Approval of Trip Facts
      • Travel Expense Accounting – posting to GL
      • Reimbursement through Accounts Payable
      • Incorporates University fiscal policy
  • Purchasing
    • Requisitions
      • Electronic transmission of document to purchasing (eliminates paper document)
      • Electronic approval process
      • Ability of department to review existing university contracts on-line in determining requisition source
      • Assignment of asset at point of requisition
  • Purchasing
    • Source Lists
      • Identify and suggest potential sources based on contracts
      • Identify potential sources for bid lists
      • Ability to identify sources based on info records and flexible search parameters
      • Information contained in central data base accessible to all campus purchasing departments
  • Purchasing
    • Request for Quotation
      • Generation of bidder list based on information records maintained in SAP such as NIGP codes, recent purchases, etc.
      • Flexibility in evaluation of quotes received - line item vs totals
      • Departments can evaluate on-line vs. sending hard copy for review
  • Purchasing
    • Purchase Orders
      • Identify and suggest potential sources based on contracts
      • Identify potential sources for bid lists
      • Ability to identify sources based on info records and flexible search parameters
      • Information contained in central data base accessible to all campus purchasing departments
  • Purchasing
    • Contracts
      • Available for review and maintenance on-line
      • Ability to release order directly against contract without requisition
      • Better accountability of funds spent against contract
      • Flexible agreement types (i.e. outline, blanket, etc.)
      • Ability to review all campus contracts across UT
  • Purchasing Matrix Note Volume/Value Annual activity Doc. Type /Method Req. Request for Quotation ($2,000><10,000) Optional >$10,000 Required Purchase Orders Funds Avail. Checking Goods Receipt A/P-or Department Low/Low $3M P-Card N/A N/A N/A N/A N/A Accts. Payable High/Low or High Outline-Value (WK) N/A N/A Release Orders (NB) Yes Yes Depts. High/Low Note Outline-Value (WK) N/A N/A Blanket (FO) N/A N/A Accts. Payable Low/High (incl. Assets) Note Purchase Order (NB) Yes Yes Yes Yes Yes Department High/Low $100M Non- Purchase Order N/A N/A N/A N/A N/A Department Personal Services   Purchase Order or External Order Yes   Yes Yes N/A Accts. Payable Facilities / Construction   Purchase Order or External Order             Library-Books   Out of Scope             Insurance-Contracts                 Utilities   Out of Scope             T-Club                
  • Financial Accounting Business Fit
    • In Scope
    • Financial Accounting
      • General Ledger
      • Special Purpose Ledger
      • Asset Management
      • Cash Management
      • Controlling
      • Funds Management
      • Project Systems
      • Accounts Payable
    • Materials Management
      • Purchasing
    • Sales and Distribution
      • Billing for sponsored projects
    • Accounts Receivable
      • A/R for sponsored projects
    • Travel Management
      • Travel Expenses
    • Out of Scope
    • Inventory Management
    • Real Estate Management (Facilities)
    • Investment Management
    • Internal Orders
    • PS Networks (scheduling, resources, tasks, etc)
    • General Accounts Receivable (only sponsored receivables in scope)
    • Purchasing Material Master
    • Purchasing B-to-B Functionality (in RFP)
    • Archiving
    Financial Accounting Business Fit
    • Import of Procurement card transactions into R/3 (Issue 8 – functionality deficit)
    • Funds availability checking (Issue 33 – process design)
    • Creation of external reports such as CFDA, IPEDs, etc (Issue 68 – functionality deficit)
    • Data-level security for Finance (Issue 74 – process design)
    • Support for cost sharing transactions in R/3 (Issue 106 – process design and functionality deficit)
    • Research and determine FAX software to acquire (Issue 113 - )
    • Ability to track source of recoveries of payroll costs (Issue 118, 119 – process design)
    • Scope of University procurement processes (Issue 133 – project scope)
    Financial Accounting Issues
  • Financial Accounting Issues (cont.)
    • Effort Certification processing (Issue 137, 155 – functionality deficit and process design)
    • Financial/technical/equipment reporting to Grant sponsors (Issue 157 – functionality deficit)
    • Budget transfers for mass salary changes (Issue 162 – functionality deficit)
    • What will be the commitment item group standard for unrestricted accounts (Issue 166 – process design)
    • Revenue recognition for restricted projects (Issue 178 – process design)
    • Accrued annual leave (Issue 186 – process design)
    • Salary transfer vouchers (STV) (Issue 187 – process design)
  • Financial Accounting Change Management Concerns
    • Terminology
    • Decentralization of Accounts Payable functions
    • Goods receipt (in some situations)
    • Departmental requisitioning online
    • Travel request and reimbursement decentralized
    • Budgets and planning
    • Departmental entry of service contracts
    • Departmental entry of assets for equipment
    • Workflow
    • Cash management for cash receipts
  • Financial Accounting Authorizations
    • There will be user authorizations at the following levels:
        • By fund/fund center/commitment item
        • By transaction