FI Blueprint

7/30/2019 FI Blueprint

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HopkinsOne BP FI GL Blueprint

Version 0 1/10/2005 at 11:02 AM Page 1 of 28

Security Restrictions if Necessary

9.4 GENERAL LEDGER ACCOUNT

9.4.1 Overview

Various sub-ledgers and other modules in the integrated SAP environment update the General Ledger(GL) module. The GL area is responsible for the master data objects: Business Area, Chart of Accounts,transaction data: journal entry types, accruals, open item managed accounts, foreign currencytransactions and other key processes such as month end and year end closing, fiscal year carry-forwardand interface reconciliation.

The General Ledger Blueprint Design includes all facets of recording, classifying and managing financialtransactions within SAP. A series of focused Design Sessions were conducted in the following areas:

Business Area To define those enterprise organizational entities that require business areafunctionality and determine a logical schema for numbering.

Chart of Accounts To define the listing of General Ledger accounts that the enterprise will

require to record business transactions and determine a logical schema for numbering. Journal Entries To discuss the various ways financial transactions will be posted in SAP and

identify document types necessary to classify those transactions.

Open Item Management To discuss the strategy for managing open items within SAP.

Foreign Currency To discuss SAP functionality within the scope of the HopkinsOne project.

Fiscal Year and Posting Periods To define the posting periods within the enterprise fiscalyear and discuss the use of SAPs special posting periods to facilitate GL closing.

General Ledger Closing To discuss the sequence of events that are required to close theGeneral Ledger within SAP.

9.4.2 Detailed Functional Scope

See Business Process Master List in appendix C for detailed functional scope.

9.4.3 Business Requirements

See Requirements in appendix D for detailed requirements.

9.4.4 Questions & Answers

See appendix H for Questions and Answers

9.4.5 Leading Practices

The following leading practices were discussed as part of the overall Business Blueprint. Listed below arethe leading practices that have been incorporated into the design.

9.4.5a Incorporation of Leading Practices

Description Adoption

Consolidate and maintain one Chart of Accounts. Yes

Use a standardized, intelligent numbering scheme to classify accounts. Yes

Maintenance of the Chart of Accounts is centralized to ensure integrity of the intelligent numbering scheme andaccount strategy.

Yes

The account code numbering scheme consists of the lowest level of detail necessary to meet the various reporting Yes


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Description Adoptionrequirements of an organization.

Only complete (debit=credit) documents can be posted. SAP will not allow posting of unbalanced documents inthe general ledger.

Yes

Minimize the use of suspense accounts to auto-balance entries. Yes

Auto-create inter-company accounts r eceivable and payable. Yes

Perform monthly and annual close Yes

Develop and communicate comprehensive monthly and annual closing schedules Yes

Establish a pre-close meeting early in the closing cycle to discuss any unusual results with management andauditors

Yes

Establish monthly cutoffs to facilitate timely monthly closings Yes

Closing should be centrally controlled and managed to ensure that all steps are completed timely and in sequence Yes

Practice year-end closing steps well in advance of year-end with production data in a testing environment Yes

Closing schedule includes the closing of all modules and the closing should be controlled by Finance Yes

All adjust ing entri es should be posted in the ER P s ystem Yes

System should allow extended periods for adjusting entries to be posted. Yes

All l edgers and sub-ledgers should be upd ated real time s imultaneously t o eliminat e r econciliation iss ues. Yes

Transactions should be entered at the lowest level necessary to meet enterprise reporting requirements. Yes

Transactions should be entered at the point of origin within the enterprise. Yes

9.4.6 To-Be Design (Sub-Process)

The following sub-processes are discussed further in this section:

Chart of Accounts

Journal Entries

Open Item Management

Fiscal Year and Posting Periods

General Ledger Closing

Foreign Currency

General Ledger Security

9.4.6.1 Sub-process 1 - Chart of Accounts

9.4.6.1.1 Overview

General Ledger (GL) accounts are the structures that classify debit and credit values for accountingtransactions in the SAP Financials (FI) module and form the basis for creating financial statements andfulfilling other regulatory reporting requirements.

In order to properly use the FI functionality, GL accounts must represent types of financial postings(assets, liabilities, equity, revenues, expenses and transfers) and are created at the lowest possible levelto capture financial information, both for internal and external reconciliation, analysis and reporting. Thedata posted in various GL accounts can be grouped together using GL reporting groups for higher levelreporting within the SAP Special Ledger (SL) module.


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The GL accounts created for Johns Hopkins will be categorized by recommended best business practicesand result from feedback obtained from GL Master Data Design Sessions. Each of the GL accounts willbe assigned to a GL Account Group. GL Account Groups will help determine the number range for GLaccounts, categorize the accounts within logical categories, provide security for management of GL

accounts and determine suppress, display, optional and required fields within each GL account masterdata screens. The numbers for GL accounts will be sequentially assigned by the system within theparameters and pre-defined ranges controlled by the GL Account Group. The field length for GL accountis 10 characters. The recommended configuration of the GL account master records for Johns Hopkins is6 numeric digits as represented in the table below

9.4.6.1.1a Configuration of General Ledger Accounts

General Ledger Account Number Ranges Number attributes

Assets: 100000 199999

Liabilities: 200000 299999

Equity: 300000 399999

Revenues: 400000 499999

Fund Balance/Net Asset Transfers: 500000 599999

Expenses: 600000 699999

Unassigned: 700000 799999

Conversion Items:800000 899999

Secondary Cost Elements1: 900000 999999

Secondary Cost Elements are created and maintained inthe CO module. This listing represents the reservation ofthe number range for that purpose.

Six (6) digit numeric only externallygenerated logical numbering

Number ranges (first digit) defined for

major financial statement categories

Additional digits (second, third,) are

defined for further breakdowns within

major financial statement categorieswhere appropriate.

The standard data requirements to establish a GL account in SAP are as follows:

9.4.6.1.1b Standard Settings for Master Data

Date Fields Comments

General Ledger Account Number XXXXXX digit number

Company Code Company Code JHEN defaulted

Account Group Classify GL accounts into categories for authorizationand number range controls.

P&L or Balance Sheet Account Defines if the GL account is a P&L or Balance Sheetaccount.

GL Account Short Text Description of GL account useful to identify the accountusing matchcode, lookup or search.

GL Account Long Text Detailed description of GL account

Account Currency Account Currency USD will default f rom C ompany C ode

Field Status Group* Helps identify types of fields that are required ondocuments in SAP when posting using the GL account.

Commitment Item Commitment Items classify the budget according tofunctional criteria.

*Field Status Group suppresses, displays, and requires entry or makes entry optional based on GLaccounts.


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9.4.6.1.2 Process Flow

The maintenance of the Chart of Accounts will be a centralized function. The following process flowdepicts GL account creation.

Figure 9.4-1 GL Account Creation

New GL Account

is requested.

GL Account

request is

reviewed.

GL Account is

approved?

GL Account

Master is created.

SL Configuration is

updated.

Derivation rules

are updated.

GL Reporting

Groups are

updated in SL.

Requestor is

notified.

Requestor is

notified.No

Yes

Account

Assignment is

updated for allrelevant SAP

modules.

Create and link

Commitment

Items and Cost

Elements.


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9.4.6.1.3 Inputs and Outputs

9.4.6.1.3a Inputs and Outputs

Input to the Process Output to the Process

Request for new GL account Newly created GL account

GL account GL account validation file (3rd

party systems)

Derivation rules

Cost Elements for P&L account

Commitment items

9.4.6.1.4 Other Considerations

There are no other considerations noted for Chart of Accounts.

9.4.6.2 Sub-process 2 - Journal Entries

9.4.6.2.1 Overview

The Journal Entry process within the General Ledger includes transactions posted that are not originatedin an SAP sub-ledger (A/P, A/R), to record audit adjustments, adjustment postings to correct previouslyposted transactions, reversal of documents and certain recurring transactions and interface postings.SAP creates a document for each transaction posted in the system. Unique transaction codes aremaintained in the system to process journal entry and accruals. Following are some data attributes thatwill be required to process a journal entry in SAP system.

GL Account (Required)

Commitment item (Derived from GL account)

Business Area (Derived from CO object or entered manually)

Fund (May be derived for JHHS)

Functional Area (Derived)

Cost Center/ Internal Order/ WBS Element (Optional depending on type of GL accountprocessed. i.e. P&L)

Fund Center (Derived from cost center)

Grants (Derived from CO object)

Funded Program (Derived from WBS element)

Network from CO object or defaulted)

Document Types

Document types differentiate business transactions and control document sorting. Key uses of documenttypes within SAP include:

A number range for documents is specified based on each document type. One number rangecan be used for several document types. Document types are defined within each SAP modulefor the entire enterprise (company code level).


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Document type can be assigned to an authorization group. Thus, JH can use document types tocontrol the security on postings.

Document types assist in reporting.

The following document types are currently identified specific to the General Ledger:

9.4.6.2.1a General Ledger Document Types

SAP Doc Types Description of Business AccountingEvents

Document Number Range

SA Journal Entry Document Type 1000000000-1099999999

ZF Foreign Currency Journal Entry Document Type 1000000000-1099999999

AB Reversal Entry Document Type 1700000000-1799999999

AI Accrual Posting D ocument T ype 1000000000-1099999999

ZH Interface Document Type for JHHS 1000000000-1099999999

ZU Interface Documents Type for JHU 1000000000-1099999999

In addition to the General Ledger specific document types, document types will be defined for thefollowing areas within FI:

Accounts receivable

Accounts payable

Asset accounting

Consolidation

Materials Management and Sales and Distribution for: Goods receipt and issue, Incoming andoutgoing invoices

Invoicing

Travel Management

HR/ Payroll

Document Reversals

If a document has to be reversed, the document can be reversed through automated SAP reversaltransactions and a new document can be entered. SAP never deletes a document from the system. Adocument can be reversed only if the following conditions are met:

Contains no cleared items

Contains only vendor, customer, or G/L line items

Was posted within the FI system Values, such as business areas, cost centers, and fund are still valid within SAP master data

environment

The reversal of accrual documents (documents entered this month and reversed next month) will beprocessed with a SAP reversal transaction code.

When a document is reversed, the user will have to provide a reason code for the reversal for reportingand audit purposes. There are standard reason codes provided in SAP. Enterprise-wide reversal codes


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will be established if required in configuration. When a new SAP reversal document is generated, the usercan drill down to the original document from the reversal document. Document date, posting date, userinformation and system data entry date will be maintained as an audit trail. Within General Ledgerdocument reversal functionality will be used on as needed basis.

GL Transaction Posting Help

Multiple techniques and mechanisms exist within SAP to facilitate the posting process, simplifying dataentry for the user. Some of the techniques discussed during the sessions are noted below.

Match Codes

SAP provides users with help to identify field values through the match code search screen. Matchingcriteria details differ by field attribute. The user can also search within match code field utilizing wildcards. For example while searching in a 610xxx series GL account, a user can type 610* in the searchfield and the system will return a list containing all 610xxx series of account numbers.

Park and Hold Document

The user can use preliminary postings to enter and store incomplete documents in the system.Preliminary postings do not update any data in the system, such as amounts. The two types ofpreliminary postings are:

Parked Document

Hold Document

Parked documents provide the user with the ability to create a posting document, save it to facilitateadditional processes such as manager approval prior to posting. Parked documents can be posted eitherindividually or via a list. When posting several parked documents via a list, the system issues a list thatdetails each parked documents disposition, detailing a reason if the document could not be posted.Should a parked document reject upon posting, the list can be used to facilitate correction. A batch input

(SAPs ability to process multiple documents simultaneously.) session can be created from the list tosubsequently post the parked documents. Parked documents data is stored in a separate table fromstandard posting data. When a parked document is actually posted, the data from the parked document isdeleted from the parked documents database. The document data is then written to the standarddocuments posting database and the appropriate data is updated. Parked documents can be selectedfor reporting purposes and their status should be evaluated as part of the monthly close process.

Hold documents are user defined and managed. They are intended to be temporary in nature offering theuser the ability to save incomplete documents when necessary. Workflow functionality can not beconfigured for hold documents. Hold documents can only be displayed and posted by the user thatcreated them. Hold documents should be cleared as part of the monthly close process.

Recurring Documents (also known as Recurring Entries)

Recurring entries are business transactions that are repeated regularly, such as rent or insuranceexpenses. The following data never changes in recurring documents in SAP:

Posting Keys

GL Accounts

Line Item Amounts

When created, the Recurring Document itself does not post the accounting entry contained within it. TheRecurring Posting Program uses the Recurring Document as the basis for creating the actual Accounting


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Document via batch processing. The Recurring Document specifies exactly when the system shouldprocess a posting using the data contained in it. The validity period (date range) must be defined.

The three steps necessary to generate a recurring posting are:

Create a Recurring Document. Enter the data necessary for posting the Accounting Documentsuch as the posting keys, account numbers and amounts. Enter the control information that setsthe posting frequency or run schedule.

Run the Recurring Posting Program at the required times. The system will determine whichRecurring Documents are to be processed during each run period. The system will create abatch input session that contains data required posting the Accounting Documents and dataneeded to update the scheduling information in the Recurring Documents including the next rundate, number of runs processed so far and, if necessary, a deletion indicator.

Process the batch input session. The batch input session will post the Accounting Documents(the accounting entry is actually made) and update the scheduling information in the RecurringDocuments.

Sample Documents

A Sample Document is a model document that can be copied into a new SAP posting it is like a templatethat is stored in the system. In the Document Entry screen, a user can select a Sample Document thatwill automatically populate applicable fields. Once a Sample Document has been created and saved,only the amounts can be changed. Line Items cannot be added into the sample document itself. Toaccommodate new line items, a new Sample Document would have to be created that contains all of thedesired Line Items however, line items can be added to a FI document that is referencing a sampledocument.

When posting a document, only one Sample Document can be used at a time. Its Document Number inthe Document Entry Screen accesses it by utilizing the Post with reference function. Sample documentshave a separate number range. When you create a sample document, the system stores the documentbut does not update any transaction figures.

Account Assignment Model

An Account Assignment Model is a pattern for document entry. It can contain any number of line itemsand may include posted amounts. The Account Assignment Model is more flexible than RecurringDocuments or Sample Documents since it permits the user to add more line items and to change all thepre-assigned fields. The Account Assignment Model allows the user to enter items in list form usingscreen templates that are user-defined. Account Assignment Model will be primarily used for proprietaryentries. Some of the complex assignments that have many lines will be set up as account assignment.

The posting in the Account Assignment Model does not need to be complete. For example, in thedocument lines, the accounts may be pre-assigned in the model, but the cost center and amount fields

are left blank. These fields are filled when the model is actually used. The only mandatory field on theheader of an Account Assignment Model is the Name that is given by the user. Optional fields in the

Account Assignment Model include Currency, Chart of Accounts, Sample Text, Authorization andEquivalence Number Option. With the Account Assignment Model, multiple field assignments can beposted at one time. However, before a model can be created, a screen template must be defined. Thescreen template (variant) is where the user identifies the desired fields for the line layout.

At the time of posting, combination of multiple Account Assignment Modes can be copied within onedocument to add the same lines over and over again to create one SAP document posting. Other


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Account Assignment Models can be used during the same posting and more lines can be addedmanually.

Document Reversals

If a user has entered an incorrect document, the document can be reversed through automated SAPreversal transactions and a new document can be entered. The reversal of accrual documents(documents entered this month and reversed next month) will be processed with a SAP reversaltransaction code. When a new SAP reversal document is generated, the user can drill down to theoriginal document from the reversal document. Document date, posting date, user information andsystem data entry date will be maintained as an audit trail. Within General Ledger document reversalfunctionality will be used on as needed basis. A graphical representation of this flow is presented below.


The Journal Entry process within the General Ledger includes transactions posted that are not originatedin an SAP sub-ledger (A/P, A/R), to record audit adjustments, adjustment postings to correct previouslyposted transactions, reversal of documents and certain recurring transactions and interface postings.

SAP creates a document for each transaction posted in the system. Unique transaction codes aremaintained in the system to process journal entry and accruals. A Process flow has been defined for

journal entry posting, which will include original postings, adjustment entries, accruals, internal postingsfrom other SAP modules and external interface postings from third party systems. A graphicalrepresentation of this flow is presented below.

Figure 9.4-2 GL Journal Entry

Recording Journal Entry On-

Line In SAP

Adjustment entriesAccruals etc.

CO

DOCUMENT

P&L Postings

Crosswalk

Transaction FB50

Journal Entry

Document

Recorded In SAP

Modules Impacted and

Documents Created by GL

Posting in SAP

Inbound Interface Posting

Journal Entry in SAP FI-GL

ModuleBAI file bank recon entry

Patient Accounting System

Interface etc.

FM

DOCUMENT

Funds Update

Special LedgerDocument

Split Grant,

Business Area,

Fund

GRANT

DOCUMENT

-If Applicable

Spreadsheet Upload

(CATT)

Real Time Update


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SAP R/3 General Ledger JHHS Keane Account Validation File (SAP Account stringvalidation)

SAP R/3 General Ledger JHBMC Meditech Account Validation File

IDX Account Validation File

JHHCG Horizon Account Validation File

JHBMC CARE Account Validation File

JHU ISIS Account Validation File

JHU ECSI Account Validation File

JHHC OAO Account Validation File


There are no other considerations noted for journal entries.

9.4.6.3 Sub-process 3 - Open Item Management

9.4.6.3.1 Overview

A GL account is considered Open Item Managed when an original debit or credit posting is expecting tobe cleared by an offsetting matching credit or debit posting. Standard SAP transactions will be used toprocess and analyze open item managed accounts. Examples of accounts where this functionality isemployed are the Goods Receipt/ Invoice Received (GR/IR) clearing account related to purchasing andaccounts payable, bank clearing accounts and tax accounts.

SAP General Ledger Master Data includes an indicator that identifies all of the General Ledger accountsthat are open item managed. A Sort Key is also identified. The sort key facilitates the input of certainattributes in those transactions that the GL account is associated with. The attribute is entered in the

Assignment Field within the transaction line item. The attribute varies depending on the nature of theopen item management activity that is associated with the GL account. For example, the GR/IR accountattribute would be P.O. number while the bank clearing account attribute would be the check number.When the GR/IR Open Item Management clearing transaction is executed, the sort key and amount fieldsare matched on the goods receipt and the invoice receipt and the item is cleared and no longer open inthis account. It is important to note that cleared items are not deleted. Following are the three open itemmanaged accounts identified in the Blueprint Phase.

GR/IR Reconciliation Account 299xxx

Bank Reconciliation Clearing Accounts 1xxxx4 (all the G/L accounts will be mapped 1:1 to

individual bank accounts in realization.)

Tax Accounts 4xxxxx (all the G/L accounts will be mapped 1:1 to individual tax accounts inrealization.)

When an open item report is generated for analysis, only open items are selected and cleared items arenot displayed.


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Figure 9.4-3 GL Open Item Management

Identify Open Item Managed GL Account Numbers In SAP, for example:1) GR/IR Reconciliation Account

2) Bank Reconciliation Clearing Accounts (Per Bank Account)

3) Tax Accounts

Transaction F-03

Execute Auto Clearing Program To Clear Dr and Cr

Items On Open Item Managed Accounts

Treatment of items that do not

reconcile

Output1) Line Items That Match and Clear (Based on criteria like Check Number and

Amount for Bank Clearing, PO Num ber and Amount for GR/IR clearing account etc)

2) Report On Dr and Cr Line Items That Do Not Reconcile

For example:

Items for Purchasing department to analyze (for GR/IR

Account)

Items for Cash Management/ Bank Custodians (for Bank

Accounts)




Postings to open managed accounts Debit or Credit balance in open managed accounts

Clearing program execution to manage open item accounts Matching Debit and Credit cleared (not deleted) from the GL

account line items (Cleared items are marked with flagcleared and do not display in open item listing.)


There are no other considerations noted for open item management.

9.4.6.4 Sub-process 4 - Fiscal Years & Posting Periods

9.4.6.4.1 Overview

In order to post transactions in SAP R/3, it is necessary to define the Fiscal Year and the Posting Periodsthat will comprise the fiscal year. Fiscal year may correspond to calendar year if necessary. The fiscalyear is typically made up of twelve posting periods although it could be less than twelve periods underspecial circumstances (shortened fiscal year). In addition to the twelve posting periods that make up thefiscal year, SAP allows the definition of up to four special periods (Currently planned to be used) that areused to facilitate year end processing. HopkinsOne will have a single fiscal year that will start on July 1


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and end on June 30. In addition, HopkinsOne will have twelve posting periods that correspond to thetwelve calendar months and four special periods. These definitions will be saved in a Fiscal Year Variantthat will be assigned to the JHEN company code. (Note: A variant is a pre-defined set of parameters orselection criteria that is saved for future use.)

9.4.6.4.1a Fiscal Year Variant

Posting Period Calendar Month Period Dates

01 July July 1 July 31

02 August August 1 August 31

03 September September 1 September 30

04 October October 1 October 31

05 November November 1 November 30

06 December December 1 December 31

07 January January 1 January 31

08 February February 1 February 28 or 29

09 March March 1 March 31

10 April April 1 April 30

11 May May 1 May 31

12 June June 1 June 30

13 Special Period June 1 June 30




Each posting period will have a starting and ending date. Based on the posting date that is required onevery SAP transaction, the system will automatically determine the posting period. The special periodsallow transactions to be posted subsequent to the end of the fiscal year but reflect posting dates withinthat year. Transactions entered during all special periods must have a posting date that falls within thelast regular posting period. Typically, only one posting period is open and available to end users forposting at a time although SAP does not limit the number of periods that can be open at one time.

SAP R/3 Funds Management (FM), Controlling (CO) and Materials Management (MM) modules alsoutilize posting period functionality independent of Financial Accounting (FI). In order to assure theintegration between modules the opening and closing of posting periods will be centrally managed andcontrolled. Posting transactions in both regular posting periods and special periods is controlled through

the definition of Posting Period Variants. The posting period variants are linked to Authorization Groupsto determine the types of accounts that users have permission to post transactions. Authorization groupsare used by SAP to organize user roles and security to facilitate granting user access to specific functionswithin the system. Posting Period Variants must be defined separately for FI, FM, CO and MM. Thefollowing table represents several FI Posting Period Variants.

9.4.6.4.1b FI Posting Period Variants

Posting Period Variant GL Account Type Authorization Group

M Material To Be Determined


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Posting Period Variant GL Account Type Authorization Group

A Asset To Be Determined

C Cash To Be Determined

K Liability To Be Determined

D Revenue To Be Determined

S Expense To Be Determined

+ All GL Accounts Closing Specialist Group


Figure 9.4-4 Fiscal Years and Posting Periods

Company CodeFiscal Year

Variant

Regular Posting Periods (12)

July to June

Special Periods (4)

All posted in June

Posting Period

Variant

GL Account

Types


No inputs/outputs exist.

9.4.6.4.4 Other ConsiderationsNo other considerations noted for Fiscal Year and Posting Periods.

9.4.6.5 Sub-process 5 - General Ledger Closing

9.4.6.5.1 Overview

HopkinsOne has proposed a common closing procedure and closing calendar to be used throughout theenterprise. The closing processes are defined separately for month end and year end.

Month End Close

The month end close process starts on the last working day of the current period and will continue forseveral days into the subsequent period. The process will be managed by allowing the current period to

remain open while also opening the subsequent period to allow the posting of relevant transactions to thenew period. Transaction postings in any period can be limited to certain account types and users in orderto assure postings are made to the appropriate period. The calendar of events related to the close will bedetermined during realization at which time the security related to posting transactions will also bedefined. A summary of the steps required for closing has been developed and is presented in the tablebelow. The summary will be further refined and the closing steps and processes developed duringrealization.


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9.4.6.5.2a Monthly Close Summary

No. Closing Activity

1 Post Payroll

2 Execute Depreciation

3 Execute Recurring Entries/Postings

4 Execute Parked and Held Documents

5 Clear Workf low Backlog

6 Upload Bank BAI Files

7 Maintain GR/IR Account

8 Post Accruals

9 Execute CO Allocations

10 Execute FI/CO Reconciliation Ledger

11 Extract data to BW (SEM-BCS for consolidations)

12 Execute month end reports

13 Execute Technical SAP closing steps and programs

14 Close Posting Period

15 Period Management: Open New Period

Year End Close

Fiscal year end closing will follow the month end close process closely but will include several additionalprocesses. The year-end close will also utilize the special periods that will eliminate the requirement tokeep the last regular posting period open. Using the Posting Period Variants and Authorization Groups inconjunction with the special periods, the closing processes and activities can be further segregated andorganized in a way that is not available for month end processing. For example, routine closingprocesses such as the final payroll posting, recurring entries, and accrual entries could be assigned toperiod 13 while allocations could be assigned to period 14 and audit and other adjustments could beassigned to period 15. Period 16 would be reserved for running the technical year-end close processeswhich close out the year and prepare the carry-forward of balances to the new fiscal year.

9.4.6.5.3a Special Periods

SAP Posting Period Posting Date Comments

12 June 1 June 30 Perform all pre-closing steps (on or before June 30)

13 June 1 June 30 Perform routine closing steps (after June 30)

14 June 1 June 30 Execute allocations (after June 30)

15 June 1 June 30 Final adjustments and corrections (e.g. audit) (after June 30)

16 June 1 June 30 Year End Close program (after June 30)

00 July 1 July 01 Balances carried forward and system ready for posting in new fiscalyear (01)


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The table below represents a summary of the year-end closing activities for HopkinsOne. The summarywill be further refined and the closing calendar, detailed closing steps and detailed processes developedduring realization.

9.4.6.5.3b Year End Close Summary


1 Post Payroll

2 Execute Depreciation

3 Execute Recurring Entries/Postings

4 Execute Parked and Held Documents

5 Clear Workf low Backlog

6 Execute Interface Documents

7 Upload Bank BAI Files

8 Maintain GR/IR Account

9 Post Accruals

10 Execute Allocations

11 Execute FI/CO Reconciliation Ledger

12 Open Period 13

13 Execute and Analyze Reports

14 Close Regular Posting Period

15 Open Period 1 in New Fiscal Year

16 Period 13

17 Process interfaces not available for processing in the regular posting period

18 Process accruals and adjustments not available for processing in the regular posting period

19 Extract data to BW

20 Open Period 14

21 Close Period 13

22 Period 14

23 Execute allocations (if needed)

24 Execute FI/CO Reconciliation Ledger (if needed)

25 Extract data to BW

26 Open Period 15

27 Close Period 14

28 Period 15

29 Post final adjustments (if any)

30 Execute allocations (if needed)

31 Execute FI/CO Reconciliation Ledger (if needed)

32 Extract data to BW (consolidations in SEM-BCS)


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33 Open Period 16

34 Close Period 15

35 Period 16

36 Execute Final Closing Programs

37 Execute Archiving Programs

38 Close Period 16

39 Open New Period In next Fiscal Year

40 Extract data to BW (final consolidations in SEM-BCS)

41 Execute Year End Reports

In addition to activities and processes related to the external audit of the financial statements of thevarious HopkinsOne legal entities and affiliates, the year end close processing includes a series of stepsdesigned to prepare the account balances to be carried forward into the new fiscal year. Separateprograms are executed to carry forward the balances for GL accounts (balance sheet and profit & loss),customer accounts (A/R) and vendor accounts (A/P).

The balances for balance sheet, customer and vendor accounts are simply carried forward into the newfiscal year to their same respective GL accounts. Profit & Loss accounts are carried forward to retainedearnings/net asset accounts. The balances in the profit & loss accounts are set to zero. HopkinsOne hasdefined a series of four retained earnings/net asset accounts. Each profit & loss account will be mappedto one of the retained earnings accounts. The four accounts are:

311000 Unrestricted Net Assets

312000 Temporarily Restricted Net Assets

313000 Permanently Restricted Net Assets

320000 Retained Earnings


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Figure 9.4-5 Steps for Configuring and Process Closing

ConfigureFiscal Year Variant V6 July 1 to

June 30th

4 Special Periods 13-16

Configure

Assign Variant to Specific

Posting Period Intervals By

criteria of Authorization Group

(Security)

GL Account Type

Configure

Assign Company Code JHEN

to variant V6

Configure

Define Fiscal Year Variant

Specific For Posting Period

Configure

Assign Posting Period Variant

to Company Code

Open and Close

Period Every

Month In SAP

Execute Closing

and Carry Forward

Programs in SAP

Carry Out Pre Closing and

Closing Steps/ Procedures

In SAP

Generate Month End and

Year End Reports. Extract

Data For Consolidation and

Eliminations to SAP-BW

System


No inputs/outputs exist.


There are no other considerations noted for the Year End closing process.


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9.4.6.6 Sub-process 6 - Foreign Currency

9.4.6.6.1 Overview

The Blueprint design for foreign currency is presented within the context of the scope defined for the

HopkinsOne project. Specifically, direct access to SAP R/3 will not be permitted outside of the UnitedStates.

HopkinsOne will enable foreign currency data entry within vendor invoices to record expenses andreplenishment request related to foreign imprest bank accounts (Replenishment in USD). The currentsystem to track and process transactions from foreign imprest fund accounts will continue (Quickbookswhere applicable.) To facilitate reimbursement, these transactions will be summarized and uploaded toSAP Accounts Payable to create a vendor invoice. The invoice will subsequently be paid via the standardSAP payment program which will be configured to issue the disbursement according to the businessneeds of the foreign business unit requesting reimbursement. The upload of the foreign currencytransactions will be automated wherever possible.

When the vendor invoice is recorded, it will be recorded against the GL Account and Grant(s) that are

funding the imprest fund account. It will also record the funds and cost center (or other cost object) totrack the organizational entity that owns the imprest fund and to track the funding sources for thedisbursement. When payment is issued for the invoice, multiple invoices can be combined together toissue a single payment. According to current policy, payments will always be issued in USD.

The set up required in SAP to enable replenishment to foreign currency accounts is as follows:

Vendor Master Data Setup

Each of the foreign currency imprest fund accounts will be set up as a vendor in SAP. Information like thevendor address for the check, bank name and account, wiring information, and the custodian of theaccount will be derived from vendor master data when the replenishment requests are recorded.

Foreign Exchange Rate SetupWithin the SAP configuration each of the exchange rates for each currency pair (exchange to and fromthe foreign currency) has to be defined. HopkinsOne will also define the exchange rate valuation method(spot rate or average currency exchange rate) to be used to derive the conversion at the time of thepayment. Although the exchange rates must be maintained in SAP, all the exchange rate pairs do nothave to be maintained in SAP. HopkinsOne can use functionality called the inversion tool to calculate theopposite rate from a defined exchange rate. This method can be used only if the spot exchange ratemethod is used to calculate currency translation.

Recording Transactions

HopkinsOne will configure SAP to enable posting of transactions in foreign currency. Line item reportingin foreign currency will be available, but will be limited to transactions that were entered in foreigncurrency. The HopkinsOne Company Code currency (for financial reporting) will be USD. No open itemmanagement of foreign currency transactions will occur in the SAP system. All payments will be issued inUSD only. Specific document types will be developed to support this process within the FI module ofSAP (both GL and AP).


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Figure 9.4-6 Foreign Currency

Special Ledger

Document

Created in USD for

financial reporting

AP Invoice FB60

Summarized Expenses recorded

against foreign imprest account.

Transaction in USD.

Standard SAP Payment Program Pays Foreign Disbursement Invoices. Generates Checks, Wires in

USD currency only for replenishment.

Expense and Replenishment of foreign imprest fund bank account datareceived in US via Quicken flat file or manual reports.

Translation to USD done outside of SAP

AP Invoic e FB60

Summarized Expenses recorded

against foreign imprest account.

Foreign currency used to record

invoice transaction.

Special Ledger

Document

Created in USD for

financial reporting

Open Item translated to USD at

time of payment based on

exchange rate and foreign

currency valuation method

maintained in SAP foreignexchange table

Disbursement request sent to bank

9.4.6.6.3 Inputs and OutputsNo inputs/outputs exist for Foreign Currency.


There are no other considerations noted for Foreign Currency.

9.4.7 Internal Control Considerations

9.4.7a Internal Control Considerations

Process Objective PotentialRisks

Expected/Suggested Controls toMitigate Risk

Process 9.4.6.1- Chart of Accounts

Only valid changes are made to theGeneral Ledger master records. (validity)The General Ledger Chart of Accountsreflects Group requirements. New

accounts will be added to the Chart ofAccounts only if they are n ecessary andhave been approved to help ensure

efficient system processing and accuratetransaction processing.

Invalid changes are made to theGeneral Ledger master records.

Preventative Automated & Manual

A pr ocedure is established t hat allchanges to the General Ledger masterrecord are approved by SeniorManagement. SAP standard

functionality will insure that accountnumbers do not proliferate within thespecified account group ranges.


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All valid ch anges t o General Ledger m aster

records are processed. (completeness)

Not all valid changes to the

General Ledger master recordsare input and processed.

Preventative/Detective Manual andAutomated

SAP standard functionality does notallow for incomplete records to beposted. Standard SAP Reports will beavailable to verify changes made.


Changes to the General Ledger masterrecords / Chart of Accounts will be

communicated to the user community in atimely manner to prevent processingerrors.

System interruptions.Misallocations.

Corrective Automated (e.g. email)

A list of users affected by the changesmade to General Ledger master records

should be maintained. Before performinga change, the official making the changeshould notify and verify the change with

all these users to ensure that the changewill be properly implemented withoutcausing system interruption. Standard

SAP Reports are available to viewchanges.

Process 9.4.6.1- Chart of AccountsGeneral Ledger master record information

is recorded in a consistent and completefashion.

Incomplete data may be enteredin the General Ledger masterrecords. Critical fields that mustbe entered are not specified asmandatory.

Preventative Automated (Checklistapproach)

SAP standard functionality prohibitscreation of incomplete master records.These specific fields will be identifiedduring realization.


Modifications/ changes to General Ledgermaster records are correctly processed.(accuracy)

Changes to General Ledger

master records may be incorrectlyprocessed.

Preventative Manual & Automated

The official (responsible for maintenanceof General Ledger master records) shallprocess all requests for modification of

the General Ledger master records afterhaving checked the contents and theaccuracy of the data supplied. Each

change to General Ledger master

records is prepared from appropriatesource documents. SAP edits and

validates General Ledger master recordsonline, identified errors are correctedpromptly.

Process 9.4.6.1 Chart of Accounts

An audit tr ail will exis t f or all changes t o th e

Chart of Accounts. All changes to, anddeletion of General Ledger master recordsmust be properly logged, documented andretained.

Unauthorized changes to General

Ledger master records (includingcreation or deletion of accounts)

may go undetected. Errors incapturing General Ledger masterrecords are not timely identified.

No responsibility is assigned forregularly reviewing audit trails ofchange information. (No master

data amendment report isgenerated to ensure that the

information processed is correctand accurate.) Changes toGeneral Ledger master recordsare not supported by valid

documentation. Requireddocumentation is not retained formandatory retention periods.

Detective Manual & Automated

The Financial Accountant reviews the

General Ledger account change reporton a monthly basis to ensure changesare performed in compliance with

General Ledger maintenance requests.Changes to critical General Ledgermaster details are reviewed by senior

management. A master data amendmentreport showing data before and afterchanges is approved (based on a

comparison to source documents whereappropriate) by an independent person.

A SAP report is generated wit h d ate and

time of change, old and new values forfields and also the user who entered thechange. Procedures exist to retain all

documentation on any Chart of Accountsmaintenance requests.


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Process 9.4.6.2-Journal Entries

All adjustments are r ecorded when

identified and are subsequently accountedfor as having been processed to theGeneral Ledger. (c ompleteness) Journal

entries are subject to controls overcompleteness of processing.

Adjustments may not b e r ecorded.

Omission of valid journal entriesmay occur. Some required

(necessary) journal entries are notposted each month.

Preventative Automated

SAP will not permit processing of

incomplete journal entries. Updates tothe general ledger are real-time.

Process 9.4.6.2- Journal Entries

Adjustments are accur ately pr ocessed.

Journal entries should be preparedaccurately. (accuracy)

Incorrect line item details

(business area, tax code, costcentre) or amount are entered.

Entries may be incorrectly made.Adjustments may be inc orrectlyprepared or processed.Misstatement of General Ledgeraccount balances.


The officials (responsible for journal

entries) shall only process journal entriesafter having checked the contents andthe accuracy of the data supplied. Each

journal entr y is prepared f romappropriate source documents. SAPstandard functionality requires that all

transactions are in balance prior to beingposted to the General Ledger.

Process 9.4.6.2- Journal EntriesAdjustments and journal entries are

processed to the correct account.(classification) All journal entries includeadequate identification of the accounts inwhich they are to be recorded.

Adjustments are pr ocessed to theincorrect account. Incorrectdocument types or posting keysare entered resulting in posting to

the incorrect account. Insufficientaccount identification.

Preventative ManualUnique General Ledger account codes

are in use. Review and approval ofGeneral Ledger entries by appropriatemanagement level.

SAP Authorization and Approval.


Adjustment and journal entry information is

recorded in a consistent and completefashion. Entered transaction data iscomplete.

Essential fields are not designated

as mandatory to ensure completedata is captured and recorded.Edit and validation routines are

not used during data entry toensure transactions are valid.

Preventative Manual

Standard SAP edits and validates input

data on-line. SAP is configured torequire mandatory fields when capturingtransaction records through use of the

field status variants. Some of the keyfields within this area are General Ledgeraccount number, General Ledger

account name, Short Text, Type of

account (i.e. Balance Sheet, IncomeStatement, etc).


Adjustments (Journal entries) areadequately explained and supported.(validity) Explanation and support for anentry should be sufficient to enable the

person responsible for its review andapproval to reasonably perform thisfunction.

Manual entries are not

appropriately documented on avalid source document. Invalidentries may be made.

Preventative Manual

All j ournal entries (including non-systematic journals) are supported byadequate narratives and documents, andare reviewed and approved bymanagement.


General Ledger Journal entries should becaptured separate from the personinitiating the initial transaction. Preparation

and approval functions for journal entriesare segregated.

Fraud and error due to no

segregation of initiation,

execution, authorization andrecording of transaction.


Segregation of initiation, execution,authorization and recording of GeneralLedger transactions.

Review of General Ledger process issegregated from the processing function.

SAP Role Authorization and Approval.


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Reversal documents are appropriately

reversed.

Reversal documents are

processed with inaccurateamounts and not properly justified

or compliant with JHU costtransfer policy and procedures

Detective Automated & Manual

Standard SAP functionality requests a

reversal reason code for every documentand documents may only be reversedautomatically within the same period.

Manual policy to be implemented fortracking changes to documents fromother periods.


Interface document types are appropriatelyrecorded to ensure integrity and validity ofthe journal entry.

All interface journals s hould be receivedand processed in a timely manner.

External interface postings from

3rd party systems may not be

authentic and incorrectly recordedin the GL system.

Postings are not identified orrecorded timely.

Preventative Detective Automated &Manual

All entri es t o SAP from interfaces willhave their own document type and error

reports from interface entries that do notcome over for any reason will beavailable in real time.

Process 9.4.6.2- Journal EntriesRejected items require re-entry on a timelybasis subject to the same input controls asnew transactions. (completeness)

Rejected items not re-entered. Detective ManualAll r ejected items sh ould be reviewed f orerrors and re-entered in the samemanner under management supervision.


Open items, held or parked documents areresolved and processed timely.

Open items, held or parked

documents are not resolved andprocessed timely.

Detective Manual

Procedures are established to ensurethat all "parked" documents areinvestigated and either deleted or

processed by established cut-off timesprior to closing the accounting period.Un-posted documents are either deleted

or accrued as a part of the monthlyclosing checklist.

Process 9.6.4.3 Open Item Management

All essential actions are c ompleted prior toclosing and reporting.

Closing activities in other

applications are not completed

before the deadline for financialreporting. Payable andReceivable balances are notconfirmed (inter-company and

discrepancies with businesspartner records are not resolved).(Inter-business areaconfirmations, vendor and

customer reconciliations). Noadjustments for payables,receivables or the GR/IR clearing

account are made to ensure thebalance sheet is correct.Balances and open items in

foreign currencies are notvaluated before reports aregenerated. Open batch sessionsare not closed on a monthly basis.


The Financial Accountant will validate

that all closing activities are completedtimely throughout the close process. Thiswill help to ensure that all necessary

activities are completed in the propersequence prior to period end.


All G eneral L edger suspens e accountbalances are properly reallocated prior to

closing the accounting period to help ensurethat the period end ledger balances arecorrectly reflected.

General Ledger balances are

misstated (transactions processedin the incorrect period).


There are no suspense accounts built intothe general ledger going forward. Users

are expected to post to appropriate sourceaccounts.


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All journals ent ered will be posted prior to

the accounting period close to ensure thatall current period activity is reflected in thefinancial statements.



Detective Manual

The Financial Accountant will validate

that all closing activities are completedtimely throughout the close process.

Process 9.4.6.4-Fiscal Year and PostingPeriods

Notifications of changes to General Ledgermaster records are processed timely.(proper period) All new accounts will be

added in a timely manner so they areavailable for transaction processing in thecorrect period.

Changes to the General Ledger

master records are not processedtimely. Payroll may be incorrectlycomputed for the relevant period.

Preventative/Manual

A pr ocedure sh ould be established that

the change to General Ledger masterrecords is made within an establishedtime period after the source document

has been received. By processing thechange immediately after the sourcedocument has been received, theGeneral Ledger master record is kept

current and the possibility of incorrectchanges being made is minimized.Requests to change General Ledger

master record data are logged. The log isreviewed to ensure that all requestchanges are processed timely.

Process 9.4.6.4- Fiscal Year and PostingPeriods

Adjustments and journal entries areprocessed promptly and within the correctaccounting period. (proper period)

Incorrect posting dates areentered and entries posted to the

wrong period. Entries may beprocessed in the incorrectaccounting period.

Preventative/Manual

Financial documents can only be postedin periods which are opened in the SAPsystem. In SAP the Financial Calendar

functionality can be used to scheduleactivities / programmers that have to beperformed / run on certain dates (like the

creation of recurring entries). Definition ofthe actual calendar and scheduling thedates is performed for the entire client,

and not per company. Reconciliation ofGeneral Ledger accounts.

Process 9.4.6.5- G/L Closing

Reconcile books and records to ensuretheir internal consistency. (completeness,

accuracy and validity) All necessaryaccounts are reconciled to provideassurance on the reporting results.

Key General Ledger accounts

(particularly control accounts) arenot reconciled to sourcedocuments or ledgers on a regular

basis. Errors or irregularities maynot be detected. (Note: Risks forthis objective vary, depending on

the reconciliation procedures andthe nature of the information beingreconciled. Accordingly,

reconciliation procedures areidentified, where appropriate, inother cycles). Reconciliation tasks

are insufficient to result inaccurate financial statements.Differences (e.g. long outstanding

items) are not investigated, and /or explained - corrective action isnot taken.

Preventive Manual or Automated

Reconciliation of opening balances andcurrent activities to current period closing

balances. Compare critical details ofeach reconciliation entry to establishcriteria. Comparison may be done

manually or by use of computervalidation techniques. All differences areinvestigated, followed up and correctedon a timely basis.


General Ledger reconciliations are

prepared promptly by an authorizedcompany official.

Reconciliations are not performed

timely. Invalid adjustments arenot identified timely. Misallocatedpostings are not identified timely.


Pre-determined set time tables for thecompletion and review of reconciliations.


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Reconciliations of General Ledger

accounts are reviewed by management foraccuracy, validity and completeness andthe necessary adjustments made.

Reconciliations are not subject to

review to identify anomalies.Review process is not formalized

and accountability cannot beallocated.


All Gener al Ledger reconciliations are

reviewed, signed off and approved byauthorized management levels.


Processes are in place to ensure acomplete, accurate and timely closing andreporting activity. Allocations will be

processed in the proper sequence of themonth end close so calculations arecomputed correctly.

Closing schedules and

procedures for month-end and

year-end are not defined,published nor followed. Closingprocedures are not adequate to

guide users in performing jobresponsibilities in accordance withmanagement's intentions.

Appropriate approvals ar e not

required prior to closing a postingperiod. Periods are not closedafter all activity and reporting arecomplete.


A det ailed cl osing calendar including th eidentification of responsible parties isdeveloped and maintained for month /

year end closing by the FinancialAccountant. SAP technical cl osing st epswere done at a very high level and a

preliminary closing calendar wasidentified during the blueprint. Thecalendar lists all period closing tasks to

be completed in sequential order andwho has the responsibility for thecompletion of each task. For the year-

end closing, the following step isconsidered for inclusion into thedeveloped year-end target process.

(Note: some of the below steps may alsobe included in Month End): Carry forwardcustomer and vendor balances to next

year. Carry forward profit or loss andGeneral Ledger account balances to nextyear. Close the last month (posting

period) of the business year. Processinter-business area elimination entries.Post adjustments to the General Ledger.

Re-value open items posted in foreigncurrency. Re-value foreign currencyGeneral Ledger account balances. Sort

and summarize open items by ranges of

due date. Post any other requiredadjustments. Process Allocations. Print

balance sheet and profit and lossaccount.


All essential actions are c ompleted prior toclosing and reporting.

Closing activities in other

applications are not completedbefore the deadline for financialreporting. Payable and receivable

balances are not confirmed (inter-business area and discrepancieswith business partner records are

not resolved). (Inter-business areaconfirmations, vendor andcustomer reconciliations). No

adjustments for payables,receivables or the GR/IR clearing

account are made to ensure thebalance sheet is correct.Balances and open items inforeign currencies are not

valuated before reports aregenerated. Open batch sessionsare not closed on a monthly basis.


The Financial Accountant will validatethat all closing activities are completed

timely throughout the close process. Thiswill help to ensure that all necessaryactivities are completed in the propersequence prior to period end.


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All G eneral L edger suspens e account

balances are properly reallocated prior toclosing the accounting period to helpensure that the period end ledger balancesare correctly reflected.



Detective Manual or Automated

There are no suspense accounts built

into the general ledger going forward.Users are expected to post toappropriate source accounts.


All journals ent ered will be posted prior tothe accounting period close to ensure that

all current period activity is reflected in thefinancial statements.



Detective Manual or Automated

The Financial Accountant will validatethat all closing activities are completedtimely throughout the close process.


The General Ledger is periodically

balanced with the subsidiary Ledgers (AA,AP, and AR) and other modules of SAP(e.g. CO) to ensure proper reporting. All

amounts from subsidiary records areaccurately recorded in the General Ledger.

Transactions are only posted to detailaccounts because posting to summaryaccounts will result in inaccurate roll up offinancial data.

The General Ledger may be

incomplete or may contain otherinaccuracies.


Timely reconciliation of all subsidiary

records to the General Ledger. Allreconciling items are identified,investigated and cleared on a timely

basis. Management reviews allreconciliations and follows up on unusualmatters.

All financ ial data will b e enter ed throughFI (Design decision). Information forentities not using Scope will be enteredin Summary form, to accomplish neededconsolidations.

Process 9.4.6.6- Foreign Currency

Translation and consolidation of financial

reports should be accomplished accuratelyand promptly. Subsidiaries are accuratelyrecorded in the consolidated financialstatements.

Misstatement of the financial

statements due to: clerical errors,use of incorrect exchange rates,

omission / incorrect, eliminationand reclassification entries.


Management reviews the accounting for

its subsidiaries for consistency withapplicable and recent accountingpronouncements. Implement standard

elimination and reclassification entries.Implement standard translation andconsolidation formats. Consolidation,

reclassification, and other adjustments ofGeneral Ledger balances into financialstatement formats should be explained

and documented. Comparison of thenumber and amounts of reclassification,translation and elimination entries for the

current period with the prior period.Foreign Currency entries will have theirown document type and tables will bemaintained on a regular basis.

Process 9.4.6.6- Foreign Currency

Foreign exchange gains and losses arecalculated correctly and posted to thecorrect account.

Taxes and foreign exchange gainsand losses are calculated

incorrectly or posted to theincorrect account.

Preventive Automated

SAP can be configured and per foreigncurrency how much the exchange rate on

the document header may differ from the

exchange rate currently known in thesystem.


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Process 9.4.6.7- G/L Security

Only authorized users can access General

Ledger functions.

Authorizations f or G eneral Ledger

transaction activity (e.g. postingdocuments, adjustments,

reversing entries recurring entries,inter-business area transfers,open item clearing) are

inappropriately assigned. Theauthority to change currentsettings (open or close posting

periods, maintain currencytranslation rates) is inappropriatelyassigned. The authority to view,

enter, change or delete GeneralLedger related information in thesystem is not appropriately

restricted. Access to configurationinformation (e.g. General Ledgeraccount assignments, field status

variants, field status codes,

account groups) is notappropriately restricted.

Preventive Automated/ Manual

Through the use of SAP security

authorizations, access is restricted.Transactions for General Ledger masterrecord maintenance: FS01 --> FS06 -

Create, Change, Mark for deletion etc.Transactions for General Ledger posting:F-02 General Ledger account posting, F-

04 Post with clearing, FB02 Changedocument, FBDL Recurring document.

Process 9.4.6.7 G/L Security

Adjustments are reviewed and approved by

a responsible official (authorization). Alljournal entri es are reviewed and approvedby designated individuals at appropriate

levels in the entity. Approval should begiven to all, and only, those transactions /

journal entri es that meet management'sguidelines.

Unauthorized adjustments may be

processed. Processing of journalentries that are unacceptable to

management. Manual entries arenot approved. Journal entriesmay be made for the purposes of

misstating account balances orconcealing irregularities.

Preventative Manual

Check and approval of each journal entry

(prior to processing) by supervisorypersonnel who did not participate in itspreparation.


Review of General Ledger process issufficiently segregated from the processingfunction.

Fraud and error due to no

segregation of initiation,execution, authorization andrecording of transaction.

Preventative Manual/Automated

Review of General Ledger process issegregated from the processing function.

Through the use of SAP securityauthorizations.


Access to r ecords, cr itical f orms,processing areas, processing proceduresand computer system should be permitted

only in accordance with management'scriteria (which should provide forsegregation of duties).

Records may be destroyed or lost

this could result in an inability toprepare reliable financial and

operating reports. Records maybe misused or altered, to thedetriment of the entity or other

parties (vendors, customers,employees). Unauthorizedaccess which could lead to fraud

and error. Confidentialinformation viewed byunauthorized persons.

Preventive Manual/ Automated

Access to r ecords, cr itical f orms,processing areas, computer systems andprocessing procedures should be limited

to authorized personnel. Physicalcontrols exist which limit access tofinancial records to authorized

employees (Strong rooms, safes andlockable rooms should be used forstorage and filing. Keys should be

allocated to authorized employees andkept in a safe place.) SAP access to FIand other modules should be restrictedto authorized employees.


Remote printers or report distribution sitesare secured.

Remote printers or reportdistribution sites are not secured.

Preventive Manual

Access to r emote print ers and reportdistribution sites is adequately securedand restricted.


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9.4.8 Gaps

9.4.8a Gaps in functionality provided from SAP

GAP description C L E 3rd

W P Recommended Solution

Not Applicable

C Criticality, L Level of Effort, E Enhancement indication, 3rd

- 3rd Party Software, P Pending PMO approval, W Process solution

9.4.9 Open Design Issues

9.4.9a Open Design Issues

Issue Description Impact Additional Information

Identification of Detailed Closing Steps High

The implementation of a single enterprise wide closing

calendar will require the identification of the detailedsteps required to execute the monthly and year endclosing.

Detailed closing steps and their dependencies will be

identified in Realization phase. SAP Schedule Managermay be utilized to manage HopkinsOne Closing

Schedule based on the detailed requirements.

PMO decision to require monthly GAAP statement willassit in standardization of closing process in realizationphase.

Howard County General HospitalConsolidation with JHHS

High

Currently, the plan is to record HCGH monthly financial

activity in SAP on a summary level which would not

provide enough detail to identify all of the eliminationentries needed for financial statement consolidation.During Realization, detail analysis will be performed to

identify what level of detail needs to be interfaced intoSAP based on Consolidation reporting requirements.

Applied Physic s Lab Cons olidation withJHU

High

Currently, the plan is to record APL monthly financial

activity in SAP on a summary level which would notprovide enough detail to identify all of the eliminationentries needed for financial statement consolidation.

During Realization, detail analysis will be performed toidentify what level of detail needs to be interfaced intoSAP based on Consolidation reporting requirements

Foreign Access to SAP High

Some foreign business offices have limited access to

current systems and it is not yet clear whether thoseoffices will retain that same level of access to SAP.

Also, the curr ent sc ope definition addresses dat a entrylimitations but not data viewing. If foreign offices are tohave data viewing capabilities it is not clear how that will

be accomplished. Detail design will be finalized basedon PMOs review and approval of white paper issuecurrently written up by the International working group.

The School of Medicine , other divisions, aswell as Health System affiliates mayautomatically Tax on Investment Incomefor Certain Endowments and Gifts.

High

For Investment Income on certain Endowments and

Gifts, the School of Medicine, other divisions, as well as

Health System affiliates assess a "Tax" of 15%. The"taxed" dollars increase an established sinking fundaccount. The requirement is that we build a validation inSAP that requires establishing the 15% tax upon

recognition of the investment income on the identifiedEndowments and Gifts. This is an open design issue.

Non-Payroll Cost Transfers Aged GreaterThan 90 Days

Medium

Additional explanation requir ed f or transf ers done morethan 90 days past the original transaction.

Enhancement is identified but not approved. This will betracked by the HopkinsOne Sponsored Projects Team


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Issue Description Impact Additional Information

Non-Payroll Cost Transfers Data Capture

Medium

Fields will be required for this process (date field,

reason/reference code, and the document number at theline item level)

Possible enhancement is identified (if existing fieldscannot accommodate the needed data capture)

Non-Payroll Cost Transfers AdditionalInformation

Medium

Additional inf ormation will be required f or c ertain r easoncodes or GL accounts.

Enhancement is identified but not approved. This will betracked by the HopkinsOne Sponsored Projects Team

9.4.10 Authorization and User Role Considerations

Roles identified within GL area are as follows:

Role 1 Chart Of Accounts Master data Administrators

- Approval process for all master data objects must be defined in policy proceduredocumentation.

- Creation must be centrally controlled (SAP central support group-FI team members).

Role 2 Finance data viewer

- All GL accountants with SAP user ID can review all data including master data, transactionsand documents across entire FI module.

Role 3 Finance senior accountant

- GL accountant can prepare and post Journal entry.

Role 6 Finance technical interface processor.

- This functional role will be responsible for handling technical error in the interface.

- A system accountant will handle different types of errors like,

- If the interface does not execute, follows up on those issues.

- Interface is executed but some transactions fail creates error log

Role 9 Finance closing specialist

- SAP central support group will handle the close process/ programs centrally. Howeverfunctions that will be performed/supported outside the SAP central group like ability to postin special period 13-16 in SAP for adjustments, accruals etc, will be performed by this role.

Role 10 Finance report viewer

- One role mapped to execute and view financial reports within core SAP R/3 system.

Role 11 Finance report configuration specialist

- This person will be trained on report writer tool and can create report groups etc in SAPsystem. Also this can role can provide access to some reports that Role 10 above isrestricted from accessing in FI system.

- Please refer to Authorization Role Spreadsheet for role mapping to specific transactioncodes.

FI Blueprint

Documents

Transcript of FI Blueprint