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Finance Business
Blueprint
1
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Agenda
Business Blueprint Executive Summary
Goal of Business Blueprint
Tools Used
Enterprise Structure
Module Overview
Business Fit Issues / Gaps
Change Management / Training Concerns
Authorizations
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Business Blueprint Analysis
Goals
Determine UTs business process requirements
Achieve a common understanding of how UT intends torun its business within the framework of SAP R/3
Deliver a record of results gathered
Move into the next phase with enough information to
complete baseline configuration
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Business Blueprint Analysis
Tools Business Process Questions (by process)
Standard questions regarding UTs organizational structure,processes and business needs
Detailed Workshops Meetings with key users to discuss business processes and business
needs
Customer Input Templates high level summary of Processes
Business Process Transaction Business Process Master List (BPML)
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Business Blueprint Analysis
Activities
Business Blueprint Workshops
Detail Requirement Workshops
Preparation of Business Blueprint Deliverables
Creation and review of all Q&A questionnaire
Creation and review of CI Templates
Creation and review of BPMLs
Creation and review of RICES
Update issue log (which includes the major gaps).
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Financial AccountingEnterprise StructureGeneral Ledger
Chart of
Accts UT
Company Code
UT
Assets
Liabilities
FundBalances
Revenues
Expenditures
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Financial AccountingEnterprise Structure - Controlling
Cost Center
E011024001
Functional Area Instruction
Profit Center L011002401
Chemistry
Fund E011024001
Fund Center U011002401
Chemistry
Business Area
Cur Unrest E&G Knoxville
Company Code UT
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Financial Accounting
Enterprise StructureProject Systems
Functional Area Research
Profit Center L011002401
Chemistry
Fund
B01001024
Fund Center U011002401
Chemistry
Company Code UT
Business Area
Cur Rest E&G Knoxville
WBS ElementB01001024
WBS ElementR011024010
FundR011024010
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Company code
Purch. Organization
Plant
Univ of
Tennessee
UT
Storage
location
Knoxville
K
Chatta-
nooga
C
Martin
MMemphis
H
UTSI-
Tullahoma
T
Depart.
K001...Depart...
C001...Depart...
M001...
Depart...
H001Depart...
T001
Central
Purch.Org.
UT
Financial Accounting
Enterprise StructureProcurement
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General Ledger
Chart of Accounts includes general ledger accounts, the
equivalent of object codes (expenditures, revenues, assets,liabilities, and fund balances)
Posting of journal entries to the General Ledger (direct and
through automatic account assignment from othermodules)
Direct postingsjournal entry (JV, TV, etc.)
Automatic account assignmentspayroll postings
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Special Purpose Ledger
Balance Sheet and Revenue and Expenditure Reporting by
Fund
Automatic cash offset posting Internal reporting by fund
Balance Sheet and Revenue and Expenditure Reporting by
Fund Group and Budget entity
For monthly Treasurers Report For external financial statements
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Asset Management
Supports tracking and management of fixed assets
(equipment, buildings and land)
Leased and owned equipment Sensitive item tracking
Integration with MM to benefit from automatic
capitalization at time of goods/invoice receipt
UT will have new functionality to meet GASBrequirements to depreciate their assets July 2001
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Cash Management
Cash management manages UTs short term cash flow andBank Ledger accounting
Evaluate UT cash position Lockbox cash receipts
Bank statement input and bank reconciliation
Deposit handling and Cashed Check reconciliation
Monitor cash inflows and outflows to ensure onoptimum amount of liquidity to meet required payments
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Controlling
Provides collection of costs for unrestricted accounts
Cost CentersUT E & I accounts
Profit Centers - UT departments Cost/Revenue Elementsexpenditure and revenue
codes
Departmental Planning for cost centersplan vs actual
analysis
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Funds Management
Provides monitoring and control of budgets for both state
and local appropriations as well as sponsored programs
Commitment itemsUT object codes Funds centersUT organizational units
FundsUT accounts
Budgeting at the fund level
Funds availability control at the fund level
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Project Systems
Project accounting (revenue and expenses) for UT
restricted funds
Planning (dates, costs at the cost element level) Overhead calculation (F&A)
Integration with FM (wbs element link to funds), AM
(plant funds will require AuCs) and SD (sponsor
billing)
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Accounts Payable
Single vendor master database ownership by A/P deptpurchasing view updated by purchasing dept
Invoice processing
Processing of purchase order invoices via LogisticsInvoice Verification (LIV)
On-line 3 way matching of invoice/PO/goods receipt
Processing of direct vouchers without purchase order
Automatic and manual payment process Manages payments based on frequency of payment runs& payment terms specified in the vendor master recordor invoice
Integration with Travel Management
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Sales and Distribution
Supports billing of sponsor reimbursable funds
Cost reimbursable (resource related billing)
Schedule billing (example $15,000 each month) Item billing (example trial testing)
Letter of credit (draw down)
Retainage
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Accounts Receivable
Single customer master database of sponsored projectsshared with Sales and Distribution
Invoice processing for sponsored projects
Integration with Sales and Distribution billing
Supports accounting for manual billing
Application of incoming payments for sponsored projects
Supports dunning for sponsored projects
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Travel Management
Employee and Guest Travel
Travel Authorizations
Travel Advances
Entry and Approval of Trip Facts
Travel Expense Accountingposting to GL
Reimbursement through Accounts Payable
Incorporates University fiscal policy
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Purchasing
Requisitions
Electronic transmission of document to purchasing
(eliminates paper document) Electronic approval process
Ability of department to review existing university
contracts on-line in determining requisition source
Assignment of asset at point of requisition
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Purchasing
Source Lists
Identify and suggest potential sources based on
contracts Identify potential sources for bid lists
Ability to identify sources based on info records and
flexible search parameters
Information contained in central data base accessible toall campus purchasing departments
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Purchasing
Request for Quotation
Generation of bidder list based on information records
maintained in SAP such as NIGP codes, recentpurchases, etc.
Flexibility in evaluation of quotes received - line item
vs totals
Departments can evaluate on-line vs. sending hard copyfor review
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Purchasing
Purchase Orders
Identify and suggest potential sources based on
contracts Identify potential sources for bid lists
Ability to identify sources based on info records and
flexible search parameters
Information contained in central data base accessible toall campus purchasing departments
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Purchasing
Contracts
Available for review and maintenance on-line
Ability to release order directly against contract withoutrequisition
Better accountability of funds spent against contract
Flexible agreement types (i.e. outline, blanket, etc.)
Ability to review all campus contracts across UT
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Purchasing Matrix
Note
Volume/Value Annualactivity
Doc. Type/Method
Req.
Request for Quotation($2,000>$10,000 Required
PurchaseOrders
FundsAvail.Checking
GoodsReceipt
A/P-orDepartment
Low/Low $3M P-Card N/A N/A N/A N/A N/A Accts. Payable
High/Low or High Outline-Value (WK)
N/A N/A ReleaseOrders(NB)
Yes Yes Depts.
High/Low Note Outline-
Value (WK)
N/A N/A Blanket
(FO)
N/A N/A Accts. Payable
Low/High(incl. Assets)
Note PurchaseOrder (NB)
Yes Yes Yes Yes Yes Department
High/Low $100M Non-PurchaseOrder
N/A N/A N/A N/A N/A Department
PersonalServices
PurchaseOrder orExternalOrder
Yes Yes Yes N/A Accts. Payable
Facilities /Construction PurchaseOrder orExternalOrder
Library-Books Out of Scope
Insurance-Contracts
Utilities Out of Scope
T-Club
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Financial Accounting
Business FitIn Scope
Financial Accounting
General Ledger
Special Purpose Ledger
Asset Management
Cash Management
Controlling
Funds Management Project Systems
Accounts Payable
Materials Management
Purchasing
Sales and Distribution
Billing for sponsored projects
Accounts Receivable
A/R for sponsored projects
Travel Management
Travel Expenses
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Out of Scope Inventory Management
Real Estate Management
(Facilities)
Investment Management
Internal Orders
PS Networks (scheduling,
resources, tasks, etc) General Accounts Receivable
(only sponsored receivables in
scope)
Purchasing Material Master
Purchasing B-to-B
Functionality (in RFP)
Archiving
Financial Accounting
Business Fit
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Import of Procurement card transactions into R/3 (Issue 8functionality deficit)
Funds availability checking (Issue 33process design)
Creation of external reports such as CFDA, IPEDs, etc (Issue 68
functionality deficit) Data-level security for Finance (Issue 74process design)
Support for cost sharing transactions in R/3 (Issue 106processdesign and functionality deficit)
Research and determine FAX software to acquire (Issue 113 - )
Ability to track source of recoveries of payroll costs (Issue 118, 119process design)
Scope of University procurement processes (Issue 133project scope)
Financial Accounting
Issues
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Financial Accounting
Issues (cont.) Effort Certification processing (Issue 137, 155functionality deficit
and process design)
Financial/technical/equipment reporting to Grant sponsors (Issue 157functionality deficit)
Budget transfers for mass salary changes (Issue 162functionalitydeficit)
What will be the commitment item group standard for unrestrictedaccounts (Issue 166process design)
Revenue recognition for restricted projects (Issue 178process
design) Accrued annual leave (Issue 186process design)
Salary transfer vouchers (STV) (Issue 187process design)
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Financial Accounting
Change Management Concerns Terminology
Decentralization of Accounts Payable functions
Goods receipt (in some situations)
Departmental requisitioning online
Travel request and reimbursement decentralized
Budgets and planning
Departmental entry of service contracts
Departmental entry of assets for equipment
Workflow
Cash management for cash receipts
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Financial Accounting
Authorizations
There will be user authorizations at the following levels:
By fund/fund center/commitment item
By transaction
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