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  • Version 1.0

    Last updated: Sept 10, 2008

    Funds Management Period End Processing

    FI-FM-006

    October 8, 2008

    Funds Management Funds Management Period Period End ProcessingEnd Processing

    FIFI--FMFM--006006

    October 8, 2008October 8, 2008

    LaGOVLaGOV

  • 2

    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

  • 3

    Before we get started ...

    Logistics

  • 4

    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

  • 5

    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 IntroductionsName

    PositionAgency

  • 6

    Project Phases

    Five Key Phases

    Strategy & Approach Defined Project Team Training

    Business Process Definition Development Requirements

    Development & Unit Testing Integration Testing End-User Training Materials

    User Acceptance Technical Testing End-User Training Conversion

    Go-Live Support Performance Tuning

    Proj

    ect

    Prep

    arat

    ion

    Bus

    ines

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    rint

    Rea

    lizat

    ion

    Go

    Live

    an

    d Su

    ppor

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    Fina

    l Pr

    epar

    atio

    n

  • 7

    Finance LeadsBeverly Hodges Finance LeadDrew Thigpen Finance LeadMary Ramsrud Consulting Lead

    Logistics LeadsBelinda Rogers Logistics LeadJack Ladhur Logistics LeadBrad Denham Consulting Lead

    Linear Assets LeadsMark Suarez Agile Assets LeadCharles Pilson Consulting Lead

    General Ledger

    Accts Receivable

    Cost Accounting

    Grants Mgt

    Asset Accounting

    Real Estate Mgt

    Accounts Payable

    Cash Management

    Funds Management

    Project Systems

    Budget Prep

    Project Organization - Functional Teams

    Grantor

    Fernando FigueroaLucie HidalgoRichard Lozano

  • 8

    Blueprint Objectives

    Review and discuss the Current or AS-IS business processes Which helps to drive out the Business requirementsBusiness requirements As well as the integration pointsintegration 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 Form, Report, Interface, Conversion, Enhancement, or Workflow

    (FRICE-W)

    Understand and communicate any organizational impacts / Enterprise Readiness challenges

    Gather system security authorizations and district-wide training requirements

  • 9

    Work Session Objectives

    Review FM Month End ActivitiesOpening / Closing FM PeriodsTransferring Commitments to FI

    Review Additional FM Year End Activities

    Commitment and associated budget balance carry-

    forwardsPurchase RequisitionsPurchase OrdersFM Funds Reservations

    Residual Budget Carry-Forwards Fund Balance Carry-Forward

  • 10

    FM Sessions

    Session # No of daysSchedul

    e

    Session Description/Major Business Process Group

    Overview of major Session Topics

    FI-FM-001 1 days 7-Aug FM Master Data FM master data fields will be introduced. The use, mapping to legacy, naming convention and maintenance process will be determined.

    FI-FM-002 2 days 17-18 Sep

    Budget Preparation, Amendments and Integration

    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 Versions, Budget Types/processes (Original, Carry Forward, Supplementary, Transfers & Returns), Budget & Posting address (Budget Structures), Budget Doc types. Discuss options 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

    FI-FM-003 2 days 22-23OctBudget Availability and Control - General

    Define budget control level (AVC addresses) in FM for departments/agencies, capital projects and grant budgets (by FM Master Data) by fund and expense type. Define exceptions for budget control. Define the FM standard and budget tolerance profiles used by SBBC. Review other FM functionality which may be useful in budget control

    FI-FM-004 1 day 13-NovBudget Availability and Control - Work Orders

    Define budget control address for work orders from PM and Agile Assets. Determine use of automatic reservations at time of order creation. Determine the process for creating related FM master data and coordination with PM/Agile assets master data.

    FI-FM-005 1 day 1-Oct

    FM Budget Consumption - Expenses and Encumbrances

    Process by which FM gets updated for actual expenditures (posting address) Pre-encumbrances and encumbrances from MM FM Earmarked funds type, use and liquidation process Use of non-consumable budget types for reservations

    FI-FM-006 1.0 days 8-Oct FM Period End Processing

    Review FM Month End Activities including Opening / Closing FM Periods and Transferring Commitments to FI-GL. Review Additional FM Year End Activities including Commitment and associated budget balance carry-forwards, Residual Budget Carry-Forwards and Fund Balance Carry-Forwards.

    FI-FM-007 1 day 12-Nov Budgetary Basis Reporting

    Review requirements for budget basis reporting Review current reports Determine To Be reports framework

  • 11

    SAP Glossary

    RESIDUAL BUDGET Remaining / unused appropriation at year end. Residual budgets = current budget assigned budget (by actuals and encumbrances). Residual budgets can be carry- forward to new fiscal year, if desired and permitted

    BUDGET BALANCE CARRY_FORWARD The closing of revenue and expenses to fund balance accounts at year end.

    TRANSFERRING COMMITMENTS TO FI - Act of transferring commitments that exist only in FM to FI-GL fund balance accounts for reporting. Example: Purchase order commitments.

    ASSOCIATED BUDGET Budget linked to commitments such as requisitions, purchases orders or funds reservations. The carry-forward of commitments to a new fiscal years carries with it the associated budget linked to those commitments.

  • 12

    Funds Management

    FMFM

    Fund Accounting

    Budgetary Controls

    Budget Execution

    Budgetary Basis Reporting

    Commitment Accounting

  • 13

    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.

  • 14

    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

  • 15

    FM Month End Steps Transfer Open Commitments to FI-GL

    Involves transferring the balance of legally binding open commitments such as purchasing orders to the funds balance section of the balance sheet (by fund and if necessary business area)

    SAP transaction is executed to take balance of open commitments in FM ledger and adjust the reserved fund balance acc

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