blueprint-presentation-formal-1202306092134203-2

8/7/2019 blueprint-presentation-formal-1202306092134203-2

1/32

1

University of Tennessee

Finance Business

Blueprint

1


2/32

2

AgendaBusiness Blueprint Executive Summary

Goal of Business Blueprint Tools Used

Enterprise Structure

Module Overview

Business Fit Issues / Gaps

Change Management / Training Concerns

Authorizations


3/32

3

Business Blueprint AnalysisGoals

Determine UTs business process requirements

Achieve 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


4/32

4

Business Blueprint AnalysisTools

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)


5/32

5

Business Blueprint AnalysisActivities

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).


6/32

6

Financial AccountingEnterprise Structure General Ledger

Chart f

A t

CompanyCode

UT

A et

Liabilities

Fund

Balances

Revenues

Expenditures


7/32

7

Financial AccountingEnterprise Structure - Controlling

Cost Center

E011024001

Functional Area Instruction

Profit Center L011002401

Chemistry

Fund E011024001

Fund Center U011002401Chemistry

Business AreaCur Unrest E&G Knoxville

Company Code UT


8/32

8

Financial AccountingEnterprise Structure Project Systems

Functional Area Research

Profit Center L011002401Chemistry

FundB01001024

Fund Center U011002401Chemistry

Company Code UT

Business AreaCur Rest E&G Knoxville

WBS ElementB01001024

WBS ElementR011024010

FundR011024010


9/32

9

c

rc . Org iz ti

l t

i fT ss

T

t r gl c t i

illtt -g

M rtiM

M isH

T I-T ll

T

D rt....

D rt......

D rt...M ...

D rt...H

D rt...T

tr lrc .Org.

T

Financial AccountingEnterprise Structure Procurement


10/32

10

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 postings journal entry (JV, TV, etc.)

Automatic account assignments payroll postings


11/32

11

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


12/32

12

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


13/32

13

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


14/32

14

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


15/32

15

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


16/32


17/32

17

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 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


18/32

18

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


19/32

19

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


20/32

20

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


21/32

21

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


22/32

22

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


23/32

23

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


24/32

24

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


25/32

25

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


26/32


27/32


28/32

28

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-BFunctionality (in RFP)

Archiving

Financial AccountingBusiness Fit


29/32

29

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 (Issue68

functionality deficit)

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

Support for cost sharing transactions in R/3 (Issue 106 processdesign 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 AccountingIssues


30/32

30

Financial AccountingIssues (cont.)

Effort Certification processing (Issue 137, 155 functionality deficitand process design)

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

Budget transfers for mass salary changes (Issue 162 functionalitydeficit)

What will be the commitment item group standard for unrestrictedaccounts (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)


31/32

31

Financial AccountingChange 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


32/32

32

Financial AccountingAuthorizations

There will be user authorizations at the following levels:

By fund/fund center/commitment item

By transaction

blueprint-presentation-formal-1202306092134203-2

Documents