01 Control Data c

Process Confirmation –

Manage Accounting and Control Data

Project XYZ Initiative

April 18th , 2008

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Team Presentation Contents

• Key Count Summary

• Process Summary and Objectives

• Leading Practices and Key Features

• Process Optimization Opportunities

• As-Is and To-Be – Significant Process Changes

– Identified Gaps

– Policy and Board Rule Impacts

– Change Impacts

– Controls Framework

• As-Is and To-Be – Major System Changes

• To-Be Application Architecture Overview

• Key Development Objects

• Support Required from Steering Committee

• Implementation Challenges

• Appendix

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Key Count Summary

Item Count

Processes: 5

Tasks: 58

Work steps: 175

Roles: 2

Potential Development Objects (excluding reports):

41

SMAs: 8

Review Sessions: 30

Validation Sessions: 1

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Process Summary and Objectives

Summary

The Manage Accounting and Control Data (GL) and Expenditures and Expenses (CO) processes provide the framework for all business transactions. They are recorded in a software system that is fully integrated with the other operational areas such as procurement and payables, sales and receivables, projects, fixed assets and others, ensuring that the accounting data is always complete and accurate

Manage Accounting and Control Data (GL) is divided into three main Sub-processes:

• Manage the General Ledger Master Data includes all of the activities related to designing, implementing, and maintaining the accounting framework

• Process Accounting Transactions involves the actual updates to the General Ledger resulting from account postings generated from different sources including scheduled recurring entries, manual postings, and system interfaces

• Perform Closing finalizes financial data from subsystems, external systems (interfaces), manual journal vouchers, adjustment postings and automated processes, and to get them ready for reporting and financial analysis

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Process Summary and Objectives (Cont.) Summary (Cont.)

While Manage Accounting and Control Data (GL) provides a comprehensive picture for financial accounting, Expenditures and Expenses (CO) facilitates coordination, monitoring and optimization of all expenses in the organization

Controlling Expenditures and Expenses includes:

• Maintain Cost Centers and other Expense objects provides functions to administrate Cost Center/ Internal Orders and other expense objects where the expenses are controlled

• Report and Analyze Business Performance encompasses the Internal Management reporting to analyze cost flows

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Process Summary and Objectives (Cont.)

Objectives

• Maintain one single, global chart of accounts in accordance with Red Book policies

• Support centralized, efficient and standardized processes for financial master data creation, GL transactions and closing process to be utilized across Client X

• Provide the necessary tools and methods to prepare, approve and post real time to the general ledger electronically, ensuring the accuracy and completeness of the documents

• Establish a standardized and centralized process for closing to ensure proper reconciliation functions and accurate financial reporting

• Provide a comprehensive, flexible SAP information system which generates the financial statements and budget reports online/real-time with a complete audit trail of all the financial transactions

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Leading Practices and Key Features

Leading Practices• Single, standardized set of financial master data across the district

• Streamline General Ledger transaction and reporting process extending functionality across district and schools

Key Features

• A centralized maintenance of G/L accounts, established security control procedures around the same reducing data redundancy and ensuring data consistency across all SAP modules

• Streamlined and controlled approval process for manual or automated GL document processing

• Decentralized real-time integrated postings to GL from all the SAP modules, data entry directly into SAP by personnel throughout the district and schools

• Reconciliations are streamlined between central chart of accounts and other systems

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Leading Practices and Key Features (Cont.)

Key Features ( Cont.)

• Self serve online reporting functionality in SAP reducing the time invested in period end closing process

• Leverage dynamic configurable reporting: report selection can be adjusted using accounting element groups and the output format can be edited at the time of the execution without depending on IT resources

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Current and Future Service Delivery Model

• Decentralized master data maintenance

• Manual paper based process for Journal vouchers preparation, approval and posting

• Centralized journal voucher preparation and approval in accounting

• Weekly batch jobs from ITS for Journal voucher processing

• Stand alone systems with the need of extensive reconciliation

• Centralized master data maintenance

• Electronic journal vouchers approval and posting process

• Decentralized Journal voucher preparation across district and schools

• Journal vouchers in SAP will be either created online or interfaced from the legacy sub systems

• Integrated system with streamlined reconciliations across all SAP modules

Current Service Delivery Model Future Service Delivery Model

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Current and Future Service Delivery Model (Cont.)

• All the accounting entries entered into MSAF using aged programmatic accounting rules

• Decentralized period-end closing process

• Financial reporting processed in ITS for the various departments in Client X

• Repetitive\mass printing of reports leading to excessive consumption of paper

• Accounting rules replaced by automatic account assignments and other SAP standard functions

• Centralized period-end closing process administration

• Self-serve real time/near time reporting across district and schools

• Reports can be displayed on screen and printed only when necessary

Current Service Delivery Model Future Service Delivery Model

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Process Optimization Opportunities

• Process Optimization • Increased efficiency and control resulting from:

•Centralized maintenance of financial master data

•Effective process to approve journal vouchers

•Role/position based security

•Ability to track and record master data/ GL document changes providing a complete audit trail

• Financial information availability as it is needed by the Client X personnel

• Define and configure report variants to assist with the management of the reporting system more efficiently mitigating the performance issues

• Optimizes reporting process by reducing paper based reports and printing the reports as and when needed online

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Process Optimization Opportunities (Cont.)

• Other Efficiencies

• Minimizing manual data entry in the journal vouchers processing and analyzing reports-Proactive prevention of errors surrounding GL document processing and report analysis

• Increased data integrity through defaults and systematic field validation

• Retain all completed requests for auditing purposes, ensuring statutory and management reporting requirements

• Policies will help ensure that a consistent naming format is used for master data and that the master data elements are used for the correct purposes

• Real time integration among all modules of SAP with improved controls through system checks and balances across all functions

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As-Is and To-Be – Significant Process Changes (Cont.)

Master Data Administration• Decentralized financial master data

maintenance process focused mainly in Budgeting

• Inconsistent policy for financial master data creation and maintenance

• Informal approval process among various departments and subsystems in performing financial master data changes

• Inconsistent communication channel of data between all legacy subsystems

Master Data Administration• Centralized financial master data maintenance

in Accounting

• Established policy for financial master data creation and maintenance in SAP with roles and responsibilities clearly defined

• Establish a controlled approval process and provide increased efficiency of financial master data requests

• Ensured communication channel between SAP and other Client X sub systems for data consistency and accurate cross walk between them

As-Is To-Be

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GL Transaction Processing• Paper based journal voucher request

and approval

• Entering of journal vouchers concentrated mainly in Accounting

• Upload of large journal vouchers to the system centralized by ITS

Period end Closing Process• The closing schedule and

administrative activities performed by ITS

• ITS runs MSAF reports and provides the downloads to all the departments within Client X as requested

GL Transaction Processing• Electronic journal vouchers request and

approval

• Journal Vouchers are entered by the requestor directly in the system

• Large journal vouchers can be uploaded by the requestor

Period end Closing Process• Closing schedule and administrative activities

managed by accounting

• Extensive self serve online reporting available to all departments minimizing time delays in analyzing financial information during closing to a great extent

As-Is To-Be

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Period end Closing Process (Cont.)• Time consuming reconciliation processes

required to ensure accuracy of financial information

• System downtime during closing process

• Only one period/year open at any point of time for posting in MSAF

Reporting Maintenance Process• Generation of reports are requested to

ITS

Period end Closing Process (Cont.)• Automated reconciliation between Sub

ledgers/procurement/Payroll and Accounting systems

• No downtime during closing process

• Multiple periods/years open at any point of time for posting in SAP

Reporting Maintenance Process• All the reports are available online and updated

real time to provide accurate information and analysis at any point of time. Drilldown capabilities provide a complete audit trail of accessing the original document from the report itself

As-Is To-Be

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Identified GAPSInitial requirement Gap description Suggested Solution Decision

None None None None

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Policy Impacts

• Establish policies and procedures for the following:

– Guidelines and criteria for the creation, block and deletion of the financial master data, including operating chart of accounts

– Centralized master data request approval process, defining the roles of originators and approvers, and establish the procedure for additional data update and validation

– Maintenance tasks required to support legacy sub-systems (i.e., G/L master data required to support legacy sub-systems)

– Appropriate authorization roles and management of GL document requests

– Detailed guidelines and policies on new process which includes the interface results verification, other daily activities, opening and closing periods, period end adjustment postings into SAP, report analysis and reporting the final financial information after the closing process completion

– New process of decentralized preparation of GL transactions and centralized approval in Accounting

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Change Impacts

People

• Provide training to the appropriate Client X users on the following: System processes and integration

Personnel in the accounting department to administrate financial master data needs to understand the system functionality across the different modules

Personnel to enter accounting documents will need to get training the basic accounting and system functionality

New coding block for accounting

New closing process in accounting

Report capabilities across district and schools

Shifting responsibilities from ITS to controllers office

Shifting responsibilities from budget to controllers office

New function of financial master data maintenance in controllers office

Personnel throughout the district and schools enter journal vouchers online directly in SAP

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Change Impacts (Cont.)

Process• More sophisticated management of authorization to create, approve, post and display all

postings to GL. All the journal vouchers, transfer of expenditures, charge backs will be approved and entered into SAP system using GL transactions for document entry

• Centralized master data administration within the accounting department with a complete audit trail

• Self serve real time reporting providing accurate financial information at any point of time

• Sub-processes will primarily lead to consolidation of expense object master data, provide approval controls and changes in policy for creation of location codes and object codes in Controllers office

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Change Impacts (Cont.)

Technology• Required fields mandated prior to entering documents

• Audit capabilities at the document/line item, master record level

• Multi year and additional accounting periods possible

• Accounting documents cannot be posted unless budget rules are met

• Drill down capabilities from Summarized reports to the document that originated the transactions

• New tools required at district and schools to enter documents and attach supporting documentation

• Accounting rules replaced by SAP account determination and other standard functions.

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Controls Framework

Key Controls

• Application security restrictions on maintaining master data, processing journal vouchers with or without workflow approvals and generating financial statements

• System restrictions on deleting financial master data that have postings against them

• Validation rules will be used to preserve data integrity (Accounting string valid combinations)

• Custom workflow developed to facilitate journal vouchers approval process

• Audit trails for tracing financial master data changes and accounting document postings including the date, time and user who performed the activity

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Controls Framework (Cont.)

• Period – End closing process centrally administered in SAP by the accounting department and authorized roles would be permitted to post period end adjustment entries providing an accurate financial reporting results

• Role/position based security will be utilized to prevent unauthorized updates– Segregation of duties– Audit controls– Mitigating controls

• Role/position based security will be utilized to report financial information by school

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As-Is and To-Be – Significant System Changes

• Accounting/budget master data is defined in a single system

• Informal policy for master data creation, maintenance and data across the subsystems

• Search for transaction that generated financial figures is manual and time consuming

• Reporting downloads provided by ITS to departments from MSAF

• Mainframe oriented processing (using PF keys, and non-graphical menus/commands) that requires memorization of transaction codes and other functions

• Financial master data must be defined across all SAP modules

• Standardized enterprise structure definitions

• Drill down capability from summarized reports to the transaction that originated financial figures

• Self Serve online reporting available to all Client X users

• Graphical user interface enabled point and click navigation. Selectable drop down menus for data accuracy and usability

As-Is To-Be

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To-Be Application Architecture

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Key Development Objects

Name Description Implementation Requirements

GL-Journal voucher upload from Excel sheet to SAP

Upload of journal vouchers from excel spread sheet to SAP

(TM Interface ID: LD_INB_0021)

Inbound Interface

Cost Center Master Data Upload

Upload the fields needed for Cost Center master data in SAP using a LSMW (TM Conversion ID: LD_CONV_0001)

Conversion-LSMW

General Ledger Master Data Upload

Upload the fields needed for General Ledger master data in SAP using a LSMW (TM Conversion ID: LD_CONV_0002)

Conversion-LSMW

General Ledger Account balances

Conversion of general ledger account balances (includes GL, Fund and Grant balances) (TM Conversion ID: LD_CNV_0011)

Conversion

Summary Expenses or Revenues

Upload for Summary of Expenses/Revenues

(TM Conversion ID:LD_CNV_0012)

Conversion

Journal Voucher Approval

All journal vouchers must be reviewed and approved prior to posting it in the system (TM Workflow ID:LD_WKF_0001)

Workflow

Funds Reservation approval

All the funds reservation created by different user departments must be approved by the head of the department

Workflow

Interfaces –(Inbound and outbound) from SAP to Legacy Sub systems

All the legacy sub systems will be interfaced to SAP and vice versa for consistent and accurate financial reporting. All the potential interfaces are listed in the Appendix

Interfaces

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Support Required from Steering Committee

• Support the team on the proposed business process of a centralized accounting group responsible for managing financial master data and GL transactions processing

• Support mandatory training for all the users within the district who require system access based on their job responsibilities

• Support of the policy for master data, journal voucher approval process , and master data approval process

• Establish a stringent policies on the maintenance, integrity, accuracy of data across the legacy subsystems for a successful interface of data to SAP to reduce reconciliation issues during period-end closing process

• Support the team on the proposed centralized closing process for a faster closing and accurate financial information provided at period-end

• Assist in gaining District-wide acceptance for a standardized reporting process

• Allocate and encourage Client X resources for active participation in project activities

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Implementation Challenges

• User training and education on SAP functionality and integration points specially at schools

• Participation of key Client X resources in the different project activities

• Legacy systems data must be cleaned-up and reconciled with subsystems prior to migrating to SAP

• Availability of proper testing environment of legacy systems that will interface with SAP

• User training and education on data processing, audit, and correction capabilities

• Adoption of new system tools by M-D personnel

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Potential Key Development Objects (Appendix)

Name Description Implementation Requirements

GL - S & D Commodities JVs

S & D Commodities JVs to SAP

(ERP No. MSA - 39) (AS-IS Ref. No. 2) (TM Interface ID: LD_INB_0001)

Inbound Interface

GL - S&D, Expenses and Adjustments

S&D, Expenses, Adjustments JVs to SAP


Inbound Interface

GL - S&D, Expenses and Adjustments

S&D, Expenses, Adjustments JVs to SAP


Inbound Interface

GL - Textbooks JVs S & D Textbooks JVs to SAP


Inbound Interface

GL - Food Service Commodities JVs

Food Service Commodities JVs to SAP


Inbound Interface

GL - Food Service Accounting JVs

Food Service Accounting JVs to SAP


Inbound Interface

GL - Food Service Accounting JVs

Food Service Accounting JVs to SAP


Inbound Interface

GL - Transportation Fuel Dispensation JV’s

Transportation Fuel Dispensation JVs To SAP


Inbound Interface

GL - Transportation Cost Distribution JVs

Transportation Cost Distribution JVs to SAP


Inbound Interface

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Potential Key Development Objects (Appendix)Name Description Implementation

Requirements GL - Compass Cost Distribution JVs

Compass Cost Distribution JVs to SAP


Inbound Interface

GL - Compass Work Orders Expenses & Adjustments JV

Compass Work Orders, Expenses, Adjustments JVs to SAP


Inbound Interface

GL - TWS transactions TWS transactions to SAP to create an ETF file

(ERP No. MSAS - 104) (AS-IS Ref. No. 7) (TM Interface ID: LD_INB_0013)

Inbound Interface

GL - Payroll Transactions

Payroll Transactions To SAP


Inbound Interface

GL – Payroll Transactions

Payroll Transactions To SAP


Inbound Interface

FM - Online Budget Check from SDRQ

S&D inventory performs a budget check on available funds in SAP


Inbound Interface

FM - WCBU On-Line budget check

WCBU performs a budget check on available funds in SAP


Inbound Interface

FM – WCBU Capital Budget update

As capital budget entries are performed in WCBU, the update is made automatically in SAP (TM Interface ID: LD_INB_0018)

Inbound Interface

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Requirements FM - COMPASS Online Budget

COMPASS performs a budget check on available funds in SAP


Inbound Interface

FM - COGNOS BudgetCOGNOS Budget is developed in the interfaced system and loaded into SAP FM as a version, 1, 2 or 3 etc. (TM Interface ID: LD_INB_0020)

Inbound Interface

FM - Trust Agencies, Grants, Food Service Budgets

Trust Agencies, Grants, Food Service Budgets


Inbound Interface

GL -Journal voucher upload from excel sheet to SAP

Upload of journal vouchers from excel spread sheet to SAP


Inbound Interface

FM - VSAM PAC file to SAP to use in Budget Process

VSAM PAC file to SAP to use in creating Report Extract File


Inbound Interface

GL - Treasury Interface (TWS transactions)

TWS transactions with Document ID added from SAP to TWS

(ERP No. MSAS -103) (AS-IS Ref. No. 7) (TM Interface ID: LD_OUT_0001)

Outbound Interface

FM - COMPASS Online Budget Check

COMPASS Online Budget Check

(TM Interface ID: LD_OUT_0004)

Outbound Interface

FM - SAP to COGNOS Budget for budget development

Budget supplements transmitted back to COGNOS for planning purposes


Outbound Interface

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Requirements FM - ACRS Final Budget

Final expenditures by object will need to be transmitted as part of the feed


Outbound Interface

GL - Payroll Transactions

This file contains the GL information that was sent plus the Pay-in-doc-id information (TM Interface ID: LD_OUT_0007)

Outbound Interface

GL - Document ID's for payroll documents

Document ID's for payroll documents


Outbound Interface

GL - Account Centers Client X GL structure dictionary code book process. The file is created for synchronizing with HR Bas Header (TM Interface ID: LD_OUT_0009)

Outbound Interface

FM - Budget Available balance data

Budget Available balance data

(AS-IS Ref. No. 61) (TM Interface ID: LD_OUT_0010)

Outbound Interface

AFR and Budget Entry to Web Application

AFR and Budget Entry to Web Application


Outbound Interface

FM - Online Budget Check for Travel

Online Budget Check for Travel


Outbound Interface

FM - Budget actual expense and Commitments

Budget actual expense and Commitments from SAP to WCBU


Outbound Interface

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Requirements GL - Description information for reports and accumulators

This file contains the GL accounting structures and their descriptions

(ERP No. MSA -30) (AS-IS Ref. No. 58) (TM Interface ID: LD_OUT_0014)

Outbound Interface

GL - Account Centers validation and Available Balances

Account Centers validation and Available Balances

(ERP No. MSA -15) (AS-IS Ref. No. 59) (TM Interface ID: LD_OUT_0015)

Outbound Interface

Cost Center master Data Upload

Upload the fields needed for Cost Center master Data in SAP using a LSMW (TM Conversion ID: LD_CNV_0001)

Conversion - LSMW

General Ledger master Data Upload

Upload the fields needed for General Ledger master Data in SAP using a LSMW (TM Conversion ID: LD_CNV_0002)

Conversion - LSMW

General Ledger account balances

Conversion of general ledger account balances (Includes GL, Fund and Grant balances) (TM Conversion ID: LD_CNV_0011)

Conversion

Summary Expenses or Revenues

Upload for Summary of Expenses/Revenues

(TM Conversion ID: LD_CNV_0012)

Conversion

Journal voucher Approval

All journal vouchers must be reviewed and approved prior to posting it in the system (TM Workflow ID: LD_WKF_0001)

Workflow

Funds reservation approval

All the funds reservation created by different user departments must be approved by the head of the department (TM Workflow ID: LD_WKF_0002)

Workflow

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