Process Confirmation

Manage Accounting
and Control Data
Project XYZ Initiative
April 18
th
, 2008
2
Team Presentation Contents
Key Count Summary
Process Summary and Objectives
Leading Practices and Key Features
Process Optimization Opportunities
As-Is and To-Be Significant Process Changes
Identified Gaps
Policy and Board Rule Impacts
Change Impacts
Controls Framework
As-Is and To-Be Major System Changes
To-Be Application Architecture Overview
Key Development Objects
Support Required from Steering Committee
Implementation Challenges
Appendix
3
Key Count Summary
Item Count
Processes: 5
Tasks: 58
Work steps: 175
Roles: 2
Potential Development Objects
(excluding reports):
41
SMAs: 8
Review Sessions: 30
Validation Sessions: 1
4
Process Summary and Objectives
Summary
The Manage Accounting and Control Data (GL) and Expenditures and
Expenses (CO) processes provide the framework for all business transactions.
They are recorded in a software system that is fully integrated with the other
operational areas such as procurement and payables, sales and receivables,
projects, fixed assets and others, ensuring that the accounting data is always
complete and accurate

Manage Accounting and Control Data (GL) is divided into three main Sub-processes:

Manage the General Ledger Master Data includes all of the activities related to
designing, implementing, and maintaining the accounting framework

Process Accounting Transactions involves the actual updates to the General
Ledger resulting from account postings generated from different sources
including scheduled recurring entries, manual postings, and system interfaces

Perform Closing finalizes financial data from subsystems, external systems
(interfaces), manual journal vouchers, adjustment postings and automated
processes, and to get them ready for reporting and financial analysis



5
Process Summary and Objectives (Cont.)
Summary (Cont.)

While Manage Accounting and Control Data (GL) provides a comprehensive picture
for financial accounting, Expenditures and Expenses (CO) facilitates coordination,
monitoring and optimization of all expenses in the organization

Controlling Expenditures and Expenses includes:

Maintain Cost Centers and other Expense objects provides functions to
administrate Cost Center/ Internal Orders and other expense objects where
the expenses are controlled

Report and Analyze Business Performance encompasses the Internal
Management reporting to analyze cost flows
6
Process Summary and Objectives (Cont.)
Objectives

Maintain one single, global chart of accounts in accordance with Red Book policies

Support centralized, efficient and standardized processes for financial master data
creation, GL transactions and closing process to be utilized across Client X

Provide the necessary tools and methods to prepare, approve and post real time to
the general ledger electronically, ensuring the accuracy and completeness of the
documents

Establish a standardized and centralized process for closing to ensure proper
reconciliation functions and accurate financial reporting

Provide a comprehensive, flexible SAP information system which generates the
financial statements and budget reports online/real-time with a complete audit trail of
all the financial transactions


7
Leading Practices and Key Features
Leading Practices
Single, standardized set of financial master data across the district

Streamline General Ledger transaction and reporting process extending functionality
across district and schools

Key Features

A centralized maintenance of G/L accounts, established security control procedures
around the same reducing data redundancy and ensuring data consistency across all
SAP modules

Streamlined and controlled approval process for manual or automated GL document
processing

Decentralized real-time integrated postings to GL from all the SAP modules, data
entry directly into SAP by personnel throughout the district and schools

Reconciliations are streamlined between central chart of accounts and other systems

8
Leading Practices and Key Features (Cont.)
Key Features ( Cont.)


Self serve online reporting functionality in SAP reducing the time invested in period
end closing process

Leverage dynamic configurable reporting: report selection can be adjusted using
accounting element groups and the output format can be edited at the time of the
execution without depending on IT resources



9
Current and Future Service Delivery Model
Decentralized master data maintenance

Manual paper based process for Journal
vouchers preparation, approval and
posting

Centralized journal voucher preparation
and approval in accounting

Weekly batch jobs from ITS for Journal
voucher processing

Stand alone systems with the need of
extensive reconciliation



Centralized master data maintenance

Electronic journal vouchers approval and
posting process

Decentralized Journal voucher preparation
across district and schools

Journal vouchers in SAP will be either created
online or interfaced from the legacy sub
systems

Integrated system with streamlined
reconciliations across all SAP modules


Current Service Delivery Model
Future Service Delivery Model
10
Current and Future Service Delivery Model (Cont.)

All the accounting entries entered into
MSAF using aged programmatic
accounting rules


Decentralized period-end closing process


Financial reporting processed in ITS for
the various departments in Client X


Repetitive\mass printing of reports leading
to excessive consumption of paper









Accounting rules replaced by automatic
account assignments and other SAP standard
functions


Centralized period-end closing process
administration


Self-serve real time/near time reporting across
district and schools


Reports can be displayed on screen and
printed only when necessary


Current Service Delivery Model
Future Service Delivery Model
11
Process Optimization Opportunities
Process Optimization
Increased efficiency and control resulting from:
Centralized maintenance of financial master data
Effective process to approve journal vouchers
Role/position based security
Ability to track and record master data/ GL document changes providing a
complete audit trail

Financial information availability as it is needed by the Client X personnel

Define and configure report variants to assist with the management of the reporting
system more efficiently mitigating the performance issues

Optimizes reporting process by reducing paper based reports and printing the reports
as and when needed online


12
Process Optimization Opportunities (Cont.)
Other Efficiencies

Minimizing manual data entry in the journal vouchers processing and analyzing reports
-Proactive prevention of errors surrounding GL document processing and report
analysis


Increased data integrity through defaults and systematic field validation


Retain all completed requests for auditing purposes, ensuring statutory and
management reporting requirements


Policies will help ensure that a consistent naming format is used for master data and
that the master data elements are used for the correct purposes


Real time integration among all modules of SAP with improved controls through
system checks and balances across all functions



13
As-Is and To-Be Significant Process Changes (Cont.)
Master Data Administration
Decentralized financial master data
maintenance process focused mainly in
Budgeting

Inconsistent policy for financial master
data creation and maintenance


Informal approval process among various
departments and subsystems in
performing financial master data changes

Inconsistent communication channel of
data between all legacy subsystems








Master Data Administration
Centralized financial master data maintenance
in Accounting


Established policy for financial master data
creation and maintenance in SAP with roles
and responsibilities clearly defined

Establish a controlled approval process and
provide increased efficiency of financial master
data requests

Ensured communication channel between SAP
and other Client X sub systems for data
consistency and accurate cross walk between
them




As-Is
To-Be
14
As-Is and To-Be Significant Process Changes (Cont.)
GL Transaction Processing
Paper based journal voucher request
and approval

Entering of journal vouchers
concentrated mainly in Accounting

Upload of large journal vouchers to the
system centralized by ITS


Period end Closing Process
The closing schedule and
administrative activities performed by
ITS

ITS runs MSAF reports and provides
the downloads to all the departments
within Client X as requested

GL Transaction Processing
Electronic journal vouchers request and
approval

Journal Vouchers are entered by the requestor
directly in the system

Large journal vouchers can be uploaded by the
requestor


Period end Closing Process
Closing schedule and administrative activities
managed by accounting


Extensive self serve online reporting available
to all departments minimizing time delays in
analyzing financial information during closing to
a great extent


As-Is
To-Be
15
As-Is and To-Be Significant Process Changes (Cont.)
Period end Closing Process (Cont.)
Time consuming reconciliation processes
required to ensure accuracy of financial
information

System downtime during closing process

Only one period/year open at any point of
time for posting in MSAF

Reporting Maintenance Process
Generation of reports are requested to
ITS




Period end Closing Process (Cont.)
Automated reconciliation between Sub
ledgers/procurement/Payroll and Accounting
systems

No downtime during closing process

Multiple periods/years open at any point of time
for posting in SAP

Reporting Maintenance Process
All the reports are available online and updated
real time to provide accurate information and
analysis at any point of time. Drilldown
capabilities provide a complete audit trail of
accessing the original document from the report
itself

As-Is To-Be
16
Identified GAPS
Initial requirement Gap description Suggested Solution Decision
None None None None
17
Policy Impacts
Establish policies and procedures for the following:

Guidelines and criteria for the creation, block and deletion of the financial master data,
including operating chart of accounts

Centralized master data request approval process, defining the roles of originators and
approvers, and establish the procedure for additional data update and validation

Maintenance tasks required to support legacy sub-systems (i.e., G/L master data
required to support legacy sub-systems)

Appropriate authorization roles and management of GL document requests

Detailed guidelines and policies on new process which includes the interface results
verification, other daily activities, opening and closing periods, period end adjustment
postings into SAP, report analysis and reporting the final financial information after the
closing process completion

New process of decentralized preparation of GL transactions and centralized approval
in Accounting

18
Change Impacts
People
Provide training to the appropriate Client X users on the following:
System processes and integration
Personnel in the accounting department to administrate financial master data
needs to understand the system functionality across the different modules
Personnel to enter accounting documents will need to get training the basic
accounting and system functionality
New coding block for accounting
New closing process in accounting
Report capabilities across district and schools

Shifting responsibilities from ITS to controllers office

Shifting responsibilities from budget to controllers office

New function of financial master data maintenance in controllers office

Personnel throughout the district and schools enter journal vouchers online directly in
SAP

19
Change Impacts (Cont.)
Process
More sophisticated management of authorization to create, approve, post and display all
postings to GL. All the journal vouchers, transfer of expenditures, charge backs will be
approved and entered into SAP system using GL transactions for document entry

Centralized master data administration within the accounting department with a complete
audit trail

Self serve real time reporting providing accurate financial information at any point of time

Sub-processes will primarily lead to consolidation of expense object master data, provide
approval controls and changes in policy for creation of location codes and object codes in
Controllers office


20
Change Impacts (Cont.)
Technology
Required fields mandated prior to entering documents

Audit capabilities at the document/line item, master record level

Multi year and additional accounting periods possible

Accounting documents cannot be posted unless budget rules are met

Drill down capabilities from Summarized reports to the document that originated the
transactions

New tools required at district and schools to enter documents and attach supporting
documentation

Accounting rules replaced by SAP account determination and other standard functions.






21
Controls Framework
Key Controls

Application security restrictions on maintaining master data, processing journal
vouchers with or without workflow approvals and generating financial statements

System restrictions on deleting financial master data that have postings against
them

Validation rules will be used to preserve data integrity (Accounting string valid
combinations)

Custom workflow developed to facilitate journal vouchers approval process

Audit trails for tracing financial master data changes and accounting document
postings including the date, time and user who performed the activity
22
Controls Framework (Cont.)
Period End closing process centrally administered in SAP by the accounting
department and authorized roles would be permitted to post period end adjustment
entries providing an accurate financial reporting results

Role/position based security will be utilized to prevent unauthorized updates
Segregation of duties
Audit controls
Mitigating controls


Role/position based security will be utilized to report financial information by school



23
As-Is and To-Be Significant System Changes
Accounting/budget master data is
defined in a single system

Informal policy for master data
creation, maintenance and data across
the subsystems

Search for transaction that generated
financial figures is manual and time
consuming

Reporting downloads provided by ITS
to departments from MSAF

Mainframe oriented processing (using
PF keys, and non-graphical
menus/commands) that requires
memorization of transaction codes and
other functions


Financial master data must be defined across
all SAP modules

Standardized enterprise structure definitions



Drill down capability from summarized reports
to the transaction that originated financial
figures

Self Serve online reporting available to all
Client X users

Graphical user interface enabled point and click
navigation. Selectable drop down menus for
data accuracy and usability





As-Is
To-Be
24
To-Be Application Architecture
25
Key Development Objects
Name
Description
Implementation
Requirements
GL-Journal voucher
upload from Excel
sheet to SAP
Upload of journal vouchers from excel spread sheet to SAP
(TM Interface ID: LD_INB_0021)
Inbound Interface
Cost Center Master
Data Upload
Upload the fields needed for Cost Center master data in SAP using a
LSMW (TM Conversion ID: LD_CONV_0001)
Conversion-LSMW
General Ledger Master
Data Upload
Upload the fields needed for General Ledger master data in SAP using a
LSMW (TM Conversion ID: LD_CONV_0002)
Conversion-LSMW
General Ledger
Account balances
Conversion of general ledger account balances (includes GL, Fund and
Grant balances) (TM Conversion ID: LD_CNV_0011)
Conversion
Summary Expenses or
Revenues
Upload for Summary of Expenses/Revenues
(TM Conversion ID:LD_CNV_0012)
Conversion
Journal Voucher
Approval
All journal vouchers must be reviewed and approved prior to posting it in the
system (TM Workflow ID:LD_WKF_0001)
Workflow
Funds Reservation
approval
All the funds reservation created by different user departments must be
approved by the head of the department
Workflow
Interfaces (Inbound
and outbound) from
SAP to Legacy Sub
systems
All the legacy sub systems will be interfaced to SAP and vice versa for
consistent and accurate financial reporting. All the potential interfaces are
listed in the Appendix
Interfaces
26
Support Required from Steering Committee
Support the team on the proposed business process of a centralized accounting
group responsible for managing financial master data and GL transactions
processing

Support mandatory training for all the users within the district who require system
access based on their job responsibilities

Support of the policy for master data, journal voucher approval process , and
master data approval process

Establish a stringent policies on the maintenance, integrity, accuracy of data
across the legacy subsystems for a successful interface of data to SAP to reduce
reconciliation issues during period-end closing process

Support the team on the proposed centralized closing process for a faster closing
and accurate financial information provided at period-end

Assist in gaining District-wide acceptance for a standardized reporting process

Allocate and encourage Client X resources for active participation in project
activities






27
Implementation Challenges
User training and education on SAP functionality and integration points specially at
schools

Participation of key Client X resources in the different project activities

Legacy systems data must be cleaned-up and reconciled with subsystems prior to
migrating to SAP

Availability of proper testing environment of legacy systems that will interface with
SAP

User training and education on data processing, audit, and correction capabilities

Adoption of new system tools by M-D personnel
28
Potential Key Development Objects (Appendix)
Name
Description
Implementation
Requirements
GL - S & D
Commodities JVs
S & D Commodities JVs to SAP
(ERP No. MSA - 39) (AS-IS Ref. No. 2) (TM Interface ID: LD_INB_0001)
Inbound Interface
GL - S&D, Expenses
and Adjustments
S&D, Expenses, Adjustments JVs to SAP
(ERP No. MSA - 40) (AS-IS Ref. No. 2) (TM Interface ID: LD_INB_0002)
Inbound Interface
GL - S&D, Expenses
and Adjustments
S&D, Expenses, Adjustments JVs to SAP
(ERP No. MSA - 41) (AS-IS Ref. No. 2) (TM Interface ID: LD_INB_0003)
Inbound Interface


GL - Textbooks JVs S & D Textbooks JVs to SAP
(ERP No. MSA - 3) (AS-IS Ref. No. 1) (TM Interface ID: LD_INB_0004)
Inbound Interface
GL - Food Service
Commodities JVs
Food Service Commodities JVs to SAP
(ERP No. MSA - 4) (AS-IS Ref. No. 1) (TM Interface ID: LD_INB_0005)
Inbound Interface


GL - Food Service
Accounting JVs
Food Service Accounting JVs to SAP
(ERP No. MSA - 5) (AS-IS Ref. No. 1) (TM Interface ID: LD_INB_0006)

Inbound Interface
GL - Food Service
Accounting JVs
Food Service Accounting JVs to SAP
(ERP No. MSA - 7) (AS-IS Ref. No. 1) (TM Interface ID: LD_INB_0007)
Inbound Interface


GL - Transportation
Fuel Dispensation
JVs
Transportation Fuel Dispensation JVs To SAP
(ERP No. MSA - 6) (AS-IS Ref. No. 2) (TM Interface ID: LD_INB_0008)
Inbound Interface
GL - Transportation
Cost Distribution JVs
Transportation Cost Distribution JVs to SAP
(ERP No. MSA - 11) (AS-IS Ref. No. 2) (TM Interface ID: LD_INB_0009)
Inbound Interface
29
Potential Key Development Objects (Appendix)
Name
Description
Implementation
Requirements
GL - Compass Cost
Distribution JVs
Compass Cost Distribution JVs to SAP
(ERP No. MSA - 8) (AS-IS Ref. No. 2) (TM Interface ID: LD_INB_0010)
Inbound Interface


GL - Compass Work
Orders Expenses &
Adjustments JV
Compass Work Orders, Expenses, Adjustments JVs to SAP
(ERP No. MSA - 10) (AS-IS Ref. No. 2) (TM Interface ID: LD_INB_0011)
Inbound Interface
GL - TWS transactions TWS transactions to SAP to create an ETF file
(ERP No. MSAS - 104) (AS-IS Ref. No. 7) (TM Interface ID: LD_INB_0013)
Inbound Interface
GL - Payroll
Transactions
Payroll Transactions To SAP
(ERP No. MSA - 54) (AS-IS Ref. No. 32) (TM Interface ID: LD_INB_0014)
Inbound Interface
GL Payroll
Transactions
Payroll Transactions To SAP
(ERP No. MSA - 55) (AS-IS Ref. No. 32) (TM Interface ID: LD_INB_0015)

Inbound Interface

FM - Online Budget
Check from SDRQ
S&D inventory performs a budget check on available funds in SAP
(TM Interface ID: LD_INB_0016)
Inbound Interface
FM - WCBU On-Line
budget check
WCBU performs a budget check on available funds in SAP
(TM Interface ID: LD_INB_0017)
Inbound Interface

FM WCBU Capital
Budget update
As capital budget entries are performed in WCBU, the update is made
automatically in SAP (TM Interface ID: LD_INB_0018)

Inbound Interface

30
Potential Key Development Objects (Appendix)
Name
Description
Implementation
Requirements
FM - COMPASS
Online Budget
COMPASS performs a budget check on available funds in SAP
(TM Interface ID: LD_INB_0019)
Inbound Interface


FM - COGNOS Budget COGNOS Budget is developed in the interfaced system and loaded into
SAP FM as a version, 1, 2 or 3 etc. (TM Interface ID: LD_INB_0020)
Inbound Interface
FM - Trust Agencies,
Grants, Food Service
Budgets
Trust Agencies, Grants, Food Service Budgets
(TM Interface ID: LD_INB_0021)

Inbound Interface
GL -Journal voucher
upload from excel
sheet to SAP
Upload of journal vouchers from excel spread sheet to SAP
(TM Interface ID: LD_INB_0022)

Inbound Interface
FM - VSAM PAC file to
SAP to use in Budget
Process
VSAM PAC file to SAP to use in creating Report Extract File
(ERP No. MSA - 22) (AS-IS Ref. No. 28) (TM Interface ID: LD_INB_0023)

Inbound Interface

GL - Treasury Interface
(TWS transactions)
TWS transactions with Document ID added from SAP to TWS
(ERP No. MSAS -103) (AS-IS Ref. No. 7) (TM Interface ID: LD_OUT_0001)

Outbound Interface
FM - COMPASS
Online Budget Check
COMPASS Online Budget Check
(TM Interface ID: LD_OUT_0004)
Outbound Interface
FM - SAP to COGNOS
Budget for budget
development
Budget supplements transmitted back to COGNOS for planning purposes
(TM Interface ID: LD_OUT_0005)

Outbound Interface

31
Potential Key Development Objects (Appendix)
Name
Description
Implementation
Requirements
FM - ACRS Final
Budget
Final expenditures by object will need to be transmitted as part of the feed
(TM Interface ID: LD_OUT_0006)
Outbound Interface


GL - Payroll
Transactions
This file contains the GL information that was sent plus the Pay-in-doc-id
information (TM Interface ID: LD_OUT_0007)

Outbound Interface
GL - Document ID's for
payroll documents
Document ID's for payroll documents
(TM Interface ID: LD_OUT_0008)

Outbound Interface
GL - Account Centers Client X GL structure dictionary code book process. The file is created for
synchronizing with HR Bas Header (TM Interface ID: LD_OUT_0009)

Outbound Interface
FM - Budget Available
balance data
Budget Available balance data
(AS-IS Ref. No. 61) (TM Interface ID: LD_OUT_0010)
Outbound Interface
AFR and Budget Entry
to Web Application
AFR and Budget Entry to Web Application
(TM Interface ID: LD_OUT_0011)

Outbound Interface
FM - Online Budget
Check for Travel
Online Budget Check for Travel
(TM Interface ID: LD_OUT_0012)
Outbound Interface
FM - Budget actual
expense and
Commitments
Budget actual expense and Commitments from SAP to WCBU
(TM Interface ID: LD_OUT_0013)

Outbound Interface

32
Potential Key Development Objects (Appendix)
Name
Description
Implementation
Requirements
GL - Description
information for reports
and accumulators
This file contains the GL accounting structures and their descriptions
(ERP No. MSA -30) (AS-IS Ref. No. 58) (TM Interface ID: LD_OUT_0014)
Outbound Interface


GL - Account Centers
validation and
Available Balances
Account Centers validation and Available Balances
(ERP No. MSA -15) (AS-IS Ref. No. 59) (TM Interface ID: LD_OUT_0015)
Outbound Interface
Cost Center master
Data Upload
Upload the fields needed for Cost Center master Data in SAP using a
LSMW (TM Conversion ID: LD_CNV_0001)
Conversion - LSMW
General Ledger master
Data Upload
Upload the fields needed for General Ledger master Data in SAP using a
LSMW (TM Conversion ID: LD_CNV_0002)

Conversion - LSMW
General Ledger
account balances
Conversion of general ledger account balances (Includes GL, Fund and
Grant balances) (TM Conversion ID: LD_CNV_0011)

Conversion
Summary Expenses or
Revenues
Upload for Summary of Expenses/Revenues
(TM Conversion ID: LD_CNV_0012)
Conversion
Journal voucher
Approval
All journal vouchers must be reviewed and approved prior to posting it in the
system (TM Workflow ID: LD_WKF_0001)

Workflow
Funds reservation
approval
All the funds reservation created by different user departments must be
approved by the head of the department (TM Workflow ID: LD_WKF_0002)

Workflow