Public Sector Development Update

May 20, 2003

R3 Enterprise Patrick Thiele

Position Budgeting & Control Joe Chance

Budget Control System Joe Chance

Grants Management Joe Chance

Federal Financials Leslie StevensStephen Balsam

Procurement Matthew DixonPatrick Thiele

Detailed Agenda

R3 Enterprise

Patrick Thiele, Product Manager

3 phases took place during the Ramp-Up.(Started: July, September and November 2002)

~ 50% of the selected customers use new functionality in the SAP R/3 Enterprise Extensions

>220 customers were selected for Ramp-Up (worldwide)

26 customer have gone live

8active pilots on Unicode

Since January of 2003, after a successful Ramp-Up, R/3 Enterprise is now:

•In Unrestricted Shipment

•Available to All Customers

R/3 Enterprise—Ramp-Up Status

Ramp-Up

Customers felt comfortable with the Ramp-Up support

Compared to previous shipments we saw a benefit in the early training of SAP consultants and partners

SAP R/3 Enterprise

Customers have really experienced that the upgrade technology is smoother than ever before

Customers started from a SAP R/3 Release higher than 4.0B benefit from technical enhancements like the SAP Modification Assistant (available since 4.5B)

Up to now no major issues where reported by customers

Ramp-Up Status (2)

Productive Customers in the Americas Region…

American Chemical Society

Goodyear Tire & Rubber Company

IBM Corporation

John Muir / Mt. Diablo Health System

Metro-Goldwyn-Mayer Inc.

Vet Pharm Inc.

Ramp-Up Status (3)

Start Releases…

4.0B13%

3.1I6%

New13%

4.6C35%

4.5B22%

4.6B11%

Ramp-Up Status (4)

Industry Solutions Planned for use…

SAP R/3 Enterprise Financial Servicesis planned for use in 7 customer projects

SAP R/3 Enterprise Retailis planned for use in 6 customer projects

SAP R/3 Enterprise Global Tradeis planned for use in 6 customer projects

SAP R/3 Enterprise Public Servicesis planned for use in 32 customer projects

Ramp-Up Status (5)

John Muir/Mt. Diablo Health System is a premier healthcare provider with two acute care hospitals consisting of over 600 beds and numerous ancillary units servicing Contra Costa and Solona County California. The hospitals are recognized as preeminent centers for cardiac care, cancer care, high- and low-risk obstetrics, neurosciences and orthopedics. They are the first live customer in the United States on R/3 Enterprise.

First US Productive SAP R/3 Enterprise Customer

Project Scope– HR System upgrade from 4.0B– Improvement of specific areas of functionality:

• Personnel Administration• Organizational Management• Recruitment• Benefits• Time Recording• Time Evaluation• Payroll

– Implementation of Concurrent Employment (go-live Mar 03)

First US Productive SAP R/3 Enterprise Customer (2)

Project Staffing– EPI-USE America, Inc.– SAP America, Inc.

Project Schedule– Start: 22nd of July 2002 (Technology)– Start: 29th of August 2002 (Application)– Go-live: 24th of November 2002– 1st Payroll: 4th of December 2002

Resources Needed for Upgrade Project– EPI-USE Consulting: 1 Basis, 1 part-time ABAP– EPI-USE Consulting: 3 HR Application, 1 part time– SAP Consulting: ~ 5 weeks (Benefits consulting)

First US Productive SAP R/3 Enterprise Customer (3)

4.6B Core FM

IS-PS 4.61B

IS-PS 4.62x

4.6C Core FM

HR PS 4.61B

HR PS 4.62x

R/3Enterprise

EA-PS 1.10

Public Sector Migration to SAP R/3 Enterprise

Migration Summary – HR PS (4.62) is part of the SAP R/3 Enterprise Core – Funds Management (4.6C) moved from core to EA-PS– In releases 4.6C and before, Funds Management was

located in core in Financial Accounting In Enterprise, Funds Management is located as a separate component in Public Sector Management

– IS-PS (4.62) functionality moved to EA-PSR/3

Enterprise

EA-PS 1.10

Public Sector Migration to SAP R/3 Enterprise (2)

Click to add text

Funds Management located in Financial Accounting

SAP R/3 Core 4.6C & Before

Click to add text

Funds Management not Available

SAP R/3 Enterprise Core

Click to add text

Funds Management located in Public Sector Management

SAP R/3 Enterprise & EA-PS 1.10

Release Strategy

2002 2003 2004 2005 2006 2007

SAP Web AS 6.20

SAP R/3 Enterprise Core (4.7)

SAP R/3 EnterpriseExtension Set 1.10

Maintenance

Maintenance

SAP R/3 EnterpriseExtension Set 2.00

SAP Web AS 6.30

SP SP SP

Maintenance

Maintenance

SP SP

SAP R/3 EnterpriseExtension Set 3.00

Maintenance

SAP Web AS 6.40

Maintenance

SP SP SP

Maintenance

SAP R/3 Enterprise Release Cycle

Key Facts

- SAP R/3 Enterprise Extension Sets (SAP R/3 Enterprise

Extensions + R/3 Add-On) are released annually

- SAP R/3 Enterprise Extension Set 2.00 is planned for release

in Q3/2003

- Maintenance for each component through support packages

- R/3 Enterprise will be available to all SAP R/3 customers as

part of normal maintenance

Workshop: Funds Management: Processing, Organization & Configuration for the Public Sector (4.7) (IPS910)

http://www.sap.com/usa/education/curriculum/course.asp?cid=60092266

Workshop: Public Sector Delta/Data Migration (4.7) (WUS930)http://www.sap.com/usa/education/curriculum/course.asp?cid=60115598

Workshop: Public Services Academy (4.7) (TPSU10)http://www.sap.com/usa/education/curriculum/course.asp?cid=60105547

Workshop: Federal Processing & Configuration (4.6) (WUSFED)http://www.sap.com/usa/education/curriculum/course.asp?cid=60074320

Workshop: HR Public Sector Functionality (4.7) (WUSHPS)http://www.sap.com/usa/education/curriculum/course.asp?cid=60060599

Rollout Workshops

Workshop: Budget Control System (4.7) (WNAPSB)http://www.sap.com/usa/education/curriculum/course.asp?cid=60115376

Grants Management (Grantee Overview)• Dates & Location: tbd.

Workshop: Public Sector Collection & Disbursement (IPS510)http://www.sap.com/usa/education/curriculum/course.asp?cid=60119235

Workshop: IS-PS US Fund Accounting Workshop (WUS920)http://www.sap.com/usa/education/curriculum/course.asp?cid=60100329

For registration information, please contact mark.sherman@sap.com (Curriculum Manager/Public Services)

Rollout Workshops (2)

R/3 Enterprise alias: enterprise

Ramp-up Knowledge Transferalias: rkt

Solution Production alias: sp

Upgrade Focus Groupalias: ufg

New Release Strategyalias: releasestrategy

Ramp-up in generalalias: rampup

Online Knowledge Productsalias: okp

Safe Guardingalias: safeguarding

Sources of Information

Position Budgeting & Control

Joe Chance, Product Manager

HR

Needs to fill positionsto meet organizational

requirements

Finance

Has to keep expenditures within

budget

mySAP

Public Sector

Position

Budgeting

and Control

PBC Overview

Funds Management

Budget Planning

Position Budgeting and Control

Organizational Management

Budget Execution

Budget Monitoring

OrganizationalPlanning

OrganizationalAdministration

Position

Planning

Position

Execution

FTEPosition

PBC Overview

Commitment

Processor Personnel Cost Saving

FTE – Processor Assignment Rules HR-Budgeting

Rules

Workflow

Budget Preparation

Accounting DepartmentAccounting Department HR DepartmentHR Department

HRFM

CO

...

PBC Overview

HR

FM

Commitment Processor

HR

Master Data

HR

Organizational

management

HR

Payroll

HR

Personnel

Cost Planning

HR

Posting

transfer

CO GM

...

* * *

*

** **

Commitment Processor

Personnel Development

Funds Management

Master Data

Personnel Cost Planning

Create a Position

Global cost definition

Overall Cost Distribution

Cost compensation Planning

Available budget Check

Funds Reservation

Create a Position

Cost compensation Planning

Global cost definition

Vacant

Position Budgetingand Control

PBC

Process Review: Position

Personnel Development

Payroll

Master Data

Funds Management

Finance Accounting

Personnel Administration

Master Data

Recruit a Person

Assignment to the position

Payroll Simulation

Cost Distribution

Funds Reservation

Available budget Check

Payroll posting

Process Review: Person

Pers

on

PersonData Collector

Variant

Print Program

Personel Cost Planning

PositionData Collector

Variant

Print Program

Personel Cost Planning

Posi

tion

Financing Requirements

Financing Requirements

Financing

3 possible layouts Overview Amount Accounting

59000229

59000229

59000229

59000229

59000229

59000229

59000229

59000229

59000229

59000229

59000229

Object ID

MKXY000000151430000001.01.20025253.2531.01.200220S1

MKXY000000152430000001.01.20025253.2528.02.200220S1

MKXY000000153430000001.01.20025253.2531.03.200220S1

MKXY000000154430000001.01.20025253.2530.04.200220S1

MKXY000000155430000001.01.20025253.2531.05.200220S1

MKXY000000156430000001.01.20025253.2530.06.200220S1

MKXY000000157430000001.01.20025253.2531.07.200220S1

MKXY000000158430000001.01.20025253.2531.08.200220S1

MKXY000000159430000001.01.20025253.2530.09.200220S1

MKXY000000162430000001.01.20025253.2531.10.200220S1

MKXY000000163430000001.01.20025253.2530.11.200220S1

Fund CenterDocument Number

G/L accountDue DateAmountEnd dateRes. TypeObPV

59000229

59000229

59000229

59000229

59000229

59000229

59000229

59000229

59000229

59000229

59000229

Object ID

MKXY000000151430000001.01.20025253.2531.01.200220S1

MKXY000000152430000001.01.20025253.2528.02.200220S1

MKXY000000153430000001.01.20025253.2531.03.200220S1

MKXY000000154430000001.01.20025253.2530.04.200220S1

MKXY000000155430000001.01.20025253.2531.05.200220S1

MKXY000000156430000001.01.20025253.2530.06.200220S1

MKXY000000157430000001.01.20025253.2531.07.200220S1

MKXY000000158430000001.01.20025253.2531.08.200220S1

MKXY000000159430000001.01.20025253.2530.09.200220S1

MKXY000000162430000001.01.20025253.2531.10.200220S1

MKXY000000163430000001.01.20025253.2530.11.200220S1

Fund CenterDocument Number

G/L accountDue DateAmountEnd dateRes. TypeObPV

IT1516Financing Status

Funds Management Document Commitments

Funds Management Document

P recommitments

Financing Journal

• Reduced administration effort–Budget amounts don’t have to be replicated between Funds Management and Position Budgeting

• Delivered Configuation–PBC is delivered precustomized (minimal additional customizing is necessary)

• Flexibility and open architecture–Functions can easily be changed without modifications (BAdIs)

Benefits

• Reduced data input–Does not require additional data entry–Integrated in core process

• Automatic Creation of Encumbrances

–Funds Management, Controlling, Grants Management

• Less Training Effort–Only users who process posting need to be trained

Benefits

Budget Control System

Joe Chance, Product Manager

Budget preparation Budget execution

Budget changes documented by entry documents

Status ManagementCopy

Active availability control

Reporting BAPIs

FM account assignment /summation data oriented

budget planning

Carry Forward

Budget Control System

The budgeting workbench provides two main features• entry of budget modification (create a document)• management of existing FM budget documents

It supports a two steps process (park/post) with or without a workflow setting and the ability to handle drafts (hold)

The design offers • screen layout flexibility (layouts)• single entry screen for all business procedures• data selection (budget address, held & effective documents)• informative data (key figures)

Budget Workbench

Header area

Item area

Navigation area

Budget Workbench

Flexibility

Simplified use

Definition of rules for deriving the “check” objects (= control objects)

Definition of consumable budget (e.g. “active” version)

Centralized Customizing

No implicit rules

Availability Control

• AVC writes data to an availability control ledger. An availability control ledger is a specific view on (or aggregation of) a complete budget and the assigned budget consumptions.

The user activates one or several availability control ledgers for each budget category.

AVC ledger 2

Commitment

(delivered by SAP)

AVC ledger 1

Payment

(delivered by SAP)

AVC ledger 4

Commitment

(created by customer)

AVC ledger 3

Payment

(created by customer)

Availability Control

Define which values are relevant for availability control

Example: filters for budget values determine which kind of budget values define the consumable budget for postings

Budget version

Budget value type

Document state

Budget type

Availability Control Filters

Determine where budget consumptions are compared to the consumable budget ( definition of the control object)

Are attached to each availability ledger

Strategy

Control object

Budget object

Post budget

Posting object

Post actuals/commitments

Are defined as Strategies or Derived

Derivation Rules

Control object 1

Budget object

Post budget

Posting object

Post actuals/commitments

Control object 2

Control object 3

Control object 4

Strategies

Payroll posting

AVC Standard Ledger 9H

AVC Customer Ledger $2

AVC Customer Ledger $1

AVC Customer Ledger C1

Multi Level AVC

Grants Management

Joe Chance, Product Manager

Plan Costs Application Award Award Administration ReportingProposal

Plan ProjectSponsor Funding Reports

Master Data and

Budgeting

T I M E

Postings Billings

Sponsored Program Business Process

Grants Management

SponsoredProgram A

Ext.Fund XGrant 1

SponsoredProgram B

SponsoredProgram C

Ext.Fund X

Int.Fund 1

Grant 2

Ext.Fund Y

Int.Fund 1

Grant 3

Sponsor X

Sponsor Y

Ext.Fund YGrant 4

Class X

Class X

Class X

Overview

GM: Records Management

GM: Records Management

GM: Records Management

GM: Workflow

• Electronic notification for updates of the Grant master data Lifecycle and User statuses.

• Electronic approval for updating the Grant master data Lifecycle and User statuses.

• Electronic approval of budget documents.

• Facilitate review and approval procedures required to support the basic business processes for Grant master data and budgeting documents.

• Electronically capture and document the required approvals from the responsible person(s) before recording master data updates and budget documents.

• Provide date and time stamp for each step in the review and approval process for evaluate organizational efficiencies.

Federal Financials R/3 Enterprise with EA-PS 2.0

Leslie Stevens, Federal Civilian Industry Director

Stephen Balsam, Senior Associate for JFMIP

Budgetary Ledger

Reporting

Reimbursable Agreements

BW Integration

Future-Dated MM Documents

Miscellaneous

JFMIP Test Process

Overview

Enhanced to be compatible with new budget processor (Budget Control System—BCS) in FM

Derivation tool now the engine for driving the Budgetary Ledger accounting transactions (vs. OFBL tables)

Single program drives all year-end closing transactions, including budget documents and G/L postings

New tool for reconciling FM balances to budgetary and proprietary account balances

Budgetary Ledger

FACTS I and II updated for latest rules; usability enhanced

IPAC functionality for sending and receiving transactions through IPAC

Delivered templates for all Form & Content Financial Statements

New SF-132Enhanced SF-133 and SF-224

Reporting

SD Sales Orders with automated screening for advances and billings

Automatic Budget Posting automatically posts budget transactions in BCS from relevant documents, such as Sales Orders, A/R Invoices, Collections; replaces Revenue Increasing Budget functionality

Reimbursable Agreements

Delivered BW extractors and infocube for Ledger 95

Passes all Federal General Ledger account balances with full FACTS I and II attribute data to BW for reporting

BW Integration

Authorization controls to restrict future-dated requisitions and POs to authorized users

Program for mass posting of parked requisitions and POs once funding has been received (new year has begun)

Future-Dated MM Documents

Can limit types of transactions a user can post to a fund based on the status of that fund (e.g., unexpired vs. expired)

Effectives dates on Application of Funds and Functional Area data elements

Capture of vendor/customer ALC on master record for IPAC processing

Exclusion of invoice line items from Prompt Pay; entry of late reason codes on invoice entry

Miscellaneous

Enhanced functionality for tracking return of improper invoices to vendors, with appropriate adjustments to Prompt Pay calculations for late notification to vendor

Enhancement of program for identifying and cancelling commitment and obligation documents, providing tool for cleaning up old documents and freeing up funds throughout the year

Miscellaneous

Enhancements to Treasury confirmation processing, including assigning nonsequential check numbers to payments and limiting the number of payments on a schedule

Additional functionality for assigning whether payments are eligible for Treasury Offset

Consignment stock processing now integrated with FM, including funds check on the goods transfer

Miscellaneous

The CFO Council Recommended and the JFMIP Steering Committee Approved:

1. Separate Core Financial Software Qualification and Procurement Process

2. Establish a JFMIP PMO to Manage Process

3. Use Standard GSA Procurement ProcessCFO Council Provided ResourcesHistory

1999 – Core Requirements Updated1999 – First Round of Testing2000 – First Incremental Test2001 – Core Requirements Updated2003 – Second Round of Testing

JFMIP Qualification Test History

The Software Qualification The Software Qualification ProcessProcess

Key Inputs and Outputs

Clarified/Expanded Core Requirements

Expand test to test 100% of Core Requirements

Expand test to more fully test Core Requirements

Add test steps to process Treasury payment files

Test is much more comprehensive

Changes from 1999-2003 Test

Review 2003 Test Process, Determine Improvements Needed

Update Core Requirements in FY 2004

Develop New Test? Options:1. Completely develop new test.2. Update current test, add extra accounting periods for new/revised

requirements.3. Incremental test for new/revised

requirements, less frequent “full tests”.

Future Test Changes

Keep Software Offerings Aligned With Government Requirements.

Work with vendors and agencies to provide software that better meets agency needs.

JFMIP Goal

Procurement

Matthew Dixon, Director of NA PM/RIGPatrick Thiele, Product Manager

Purchase Requisition

release

RFQ / Offer

Purchase OrderGoods receipt

Invoice receipt

Commercial Procurement Process Flow Example: Requisition to Invoice

Majority of process and

format of transactions are

controlled by the Enterprise.

FM-Integration

Current Situation

Purchase Requisition

RFQ / Offer

Purchase Order/ Award

Goods receipt

Invoice receipt

Public Procurement Process

Budget Check / ApprovalBudget officer approval, annual appropriations

Prompt Payment

DFAS

Fed Biz Ops

FPDSFAMIS

FAR Clauses Content Management Capability

Modifications

Amendments

Requirement DefinitionStructured process, referral process, complex

ObligationIncremental funding

PIIN / SPIINCLIN / SubCLIN

LOA

Socio-economic policies

preferential programs

Receipt vs. AcceptanceSource Acceptance

Workload – emphasis on automated

Structured Bid Opening

Sourcing

Governmental procurement

practices driven by external

legislative and regulatory

requirements. Highly collaborative

processes dependent on

Inter-Enterprise relationships.

Vendor eligibility

What is Unique About Government Procurement Process? US Example

Supplier Relationship Management

Document Builder

• FAR Clause Management

• Contract File Management

• Contract Modifications

• Knowledge Base

•Solicitation and RFQ

• Operational Sourcing

• Government Reporting

• Supplier Qualification

• FAR Document Generation

• Design Collaboration

• Evaluation and Award

• Content & Catalog Management

Manual & Complex

Processing

Automated Processing

Contract Admin/Mgmt

Professional Purchasing

Government SRM

SAP R\3 Enterprise

• Financials• Materials Mgmt • Funds Mgmt

High Volume Transactions

Type of users / Complex Requirements & Regulations

Proposed Solution

Proposed Solution (Q4/2003) – SDP DLA

Automated Delivery Order Process: Overview

SAP R/3 Enterprise SAP SRM

Customer DLA Vendor

DemandPlanning

ComplexDocument Tool

Procure-ment

CreateSales Order

CreateRequisition

CreateEXTREQ

Sourcing

CreateContract

Solicitation

MRP Run

Create POCreate

Copy of POSales

Pocessing

ShipmentGoodsReceipt

Create GR

EnterInvoice

Billing

13

45 6

7

9

1011

8

13

18

15

20

electronic datae.g. MILSTRIP

Requisition

2

PurchaseOrder

PO12

Electronic GRdata

GR

16

Electronic orPaper Invoice

Invoice

19

1714

Automated SourcingAutomated Delivery Order ProcessConfigurable Sourcing Logic

Procurement Document Numbering (Support of PIIN / SPIIN)

PIIN: Procurement Instrument Identification Number (US)SPIIN: Supplementary Procurement Instrument Identification Number

Contract Enhancements Versioning (Modifications and Amendments) Workload Assignment Master Data Requirements (NSN)

Procurement Functionality – Shipment 1

Solicitation Posting Bidding Engine and Bid Evaluation Complex Document Generation (Document Builder)

Complex contract management.Generation of contract conditions following Federal and customer specific rulesUniform Contract FormatsProcurement Regulation Content Management

Federal Mandated Reporting Records Management Integration – Document assignment

Integration into SRM Vendor Registration (CCR)

Procurement Functionality – Shipment 2

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Session Code: 3107