Blueprint Finance Presentation

7/31/2019 Blueprint Finance Presentation

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Finance Business

Blueprint

1


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Agenda

Business Blueprint Executive Summary

Goal of Business Blueprint

Tools Used

Enterprise Structure

Module Overview

Business Fit Issues / Gaps

Change Management / Training Concerns

Authorizations


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Business Blueprint Analysis

Goals

Determine UTs business process requirements

Achieve a common understanding of how UT intends torun 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


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Tools Business Process Questions (by process)

Standard questions regarding UTs 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)


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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).


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Financial AccountingEnterprise StructureGeneral Ledger

Chart of

Accts UT

Company Code

UT

Assets

Liabilities

FundBalances

Revenues

Expenditures


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Financial AccountingEnterprise Structure - Controlling

Cost Center

E011024001

Functional Area Instruction

Profit Center L011002401

Chemistry

Fund E011024001

Fund Center U011002401

Chemistry

Business Area

Cur Unrest E&G Knoxville

Company Code UT


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Financial Accounting

Enterprise StructureProject Systems

Functional Area Research

Profit Center L011002401

Chemistry

Fund

B01001024

Fund Center U011002401

Chemistry

Company Code UT

Business Area

Cur Rest E&G Knoxville

WBS ElementB01001024

WBS ElementR011024010

FundR011024010


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Company code

Purch. Organization

Plant

Univ of

Tennessee

UT

Storage

location

Knoxville

K

Chatta-

nooga

C

Martin

MMemphis

H

UTSI-

Tullahoma

T

Depart.

K001...Depart...

C001...Depart...

M001...

Depart...

H001Depart...

T001

Central

Purch.Org.

UT


Enterprise StructureProcurement


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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 othermodules)

Direct postingsjournal entry (JV, TV, etc.)

Automatic account assignmentspayroll postings


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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 Treasurers Report For external financial statements


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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 GASBrequirements to depreciate their assets July 2001


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Cash Management

Cash management manages UTs short term cash flow andBank 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 onoptimum amount of liquidity to meet required payments


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Controlling

Provides collection of costs for unrestricted accounts

Cost CentersUT E & I accounts

Profit Centers - UT departments Cost/Revenue Elementsexpenditure and revenue

codes

Departmental Planning for cost centersplan vs actual

analysis


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Funds Management

Provides monitoring and control of budgets for both state

and local appropriations as well as sponsored programs

Commitment itemsUT object codes Funds centersUT organizational units

FundsUT accounts

Budgeting at the fund level

Funds availability control at the fund level


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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 AuCs) and SD (sponsor

billing)


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Accounts Payable

Single vendor master database ownership by A/P deptpurchasing view updated by purchasing dept

Invoice processing

Processing of purchase order invoices via LogisticsInvoice 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 recordor invoice

Integration with Travel Management


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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


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Accounts Receivable

Single customer master database of sponsored projectsshared 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


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Travel Management

Employee and Guest Travel

Travel Authorizations

Travel Advances

Entry and Approval of Trip Facts

Travel Expense Accountingposting to GL

Reimbursement through Accounts Payable

Incorporates University fiscal policy


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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


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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 toall campus purchasing departments


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Purchasing

Request for Quotation

Generation of bidder list based on information records

maintained in SAP such as NIGP codes, recentpurchases, etc.

Flexibility in evaluation of quotes received - line item

vs totals

Departments can evaluate on-line vs. sending hard copyfor review


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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 toall campus purchasing departments


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Purchasing

Contracts

Available for review and maintenance on-line

Ability to release order directly against contract withoutrequisition

Better accountability of funds spent against contract

Flexible agreement types (i.e. outline, blanket, etc.)

Ability to review all campus contracts across UT


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Purchasing Matrix

Note

Volume/Value Annualactivity

Doc. Type/Method

Req.

Request for Quotation($2,000>$10,000 Required

PurchaseOrders

FundsAvail.Checking

GoodsReceipt

A/P-orDepartment

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 ReleaseOrders(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 PurchaseOrder (NB)

Yes Yes Yes Yes Yes Department

High/Low $100M Non-PurchaseOrder

N/A N/A N/A N/A N/A Department

PersonalServices

PurchaseOrder orExternalOrder

Yes Yes Yes N/A Accts. Payable

Facilities /Construction PurchaseOrder orExternalOrder

Library-Books Out of Scope

Insurance-Contracts

Utilities Out of Scope

T-Club


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Business FitIn Scope


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


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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


Business Fit


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Import of Procurement card transactions into R/3 (Issue 8functionality deficit)

Funds availability checking (Issue 33process design)

Creation of external reports such as CFDA, IPEDs, etc (Issue 68

functionality deficit) Data-level security for Finance (Issue 74process design)

Support for cost sharing transactions in R/3 (Issue 106processdesign and functionality deficit)

Research and determine FAX software to acquire (Issue 113 - )

Ability to track source of recoveries of payroll costs (Issue 118, 119process design)

Scope of University procurement processes (Issue 133project scope)


Issues


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Issues (cont.) Effort Certification processing (Issue 137, 155functionality deficit

and process design)

Financial/technical/equipment reporting to Grant sponsors (Issue 157functionality deficit)

Budget transfers for mass salary changes (Issue 162functionalitydeficit)

What will be the commitment item group standard for unrestrictedaccounts (Issue 166process design)

Revenue recognition for restricted projects (Issue 178process

design) Accrued annual leave (Issue 186process design)

Salary transfer vouchers (STV) (Issue 187process design)


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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


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Authorizations

There will be user authorizations at the following levels:

By fund/fund center/commitment item

By transaction

Documents

Blueprint Finance Presentation