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Last updated: Sept 10, 2008
Funds Management Period End Processing
October 8, 2008
Funds Management Funds Management Period Period End ProcessingEnd Processing
October 8, 2008October 8, 2008
Logistics, Ground Rules & Introduction
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
Before we get started ...
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
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
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
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
Real Estate Mgt
Project Organization - Functional Teams
Fernando FigueroaLucie HidalgoRichard Lozano
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
Understand and communicate any organizational impacts / Enterprise Readiness challenges
Gather system security authorizations and district-wide training requirements
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
Session # No of daysSchedul
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
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.
Budgetary Basis Reporting
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.
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
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