Capture Cost SUPPLIES CONTRACTS SERVICES

Terminal Learning Objective Action: Capture Cost Conditions: You are a budget analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with: Define Cost and Determine Concepts Communicate the Cost Process Determine Cost on Cost Objects

Identify Roles Cost Allocation Processor Cost Plan Maintainer Cost Driver Controller Cost Driver Interface Processing Monitor Cost Recovery Processor

Define Key Terms Actual Cost Defense Travel System (DTS) Defense Civilian Payroll System (DCPS) Invoicing, Receipt, Acceptance and property Transfer (IRAPT) (Formally WAWF)

Define Cost Costs are defined as the monetary value or resources consumed to produce a program, project, or activity. Actual Cost: Is an amount determined on the basis of cost Incurred – distinguished from forecasted cost. Are captured through transactions that originate within GFEBS – and through interfaces between external systems.

Explain Cost Concept In GFEBS cost are collected on Cost Objects (WBS Elements, Internal Orders, or Cost Center). The Sender and Receiver relationship is established to allocate the collected cost to the benefiting cost centers over a given accounting period. This relationship allow both operations/resource managers to see who is benefitting from costs incurred and determine what are the major cost drivers to better meet their cost efficiency goals in the future. Cost Collection and Allocation: Cost Collection is the capture of costs as they are incurred.

Explain Concept (Cont.) Cost Allocation is the linking of fund expenditure data with functional and operational outcome, output, and performance data. Allocating the collected cost to the Cost Centers who consumed the resource based on their percentage of consumption. The GFEBS users set up Allocation or Settlement Rules, which establish Sender and Receiver relationship in GFEBS when the Cost Object is created. In the Allocation, the Sender is credited the amount of the allocation and the Receivers are debited the amount of the Allocation.

LSA #1 Check on Learning Q1: Costs are defined as the _______or _______ consumed to produce a program, project, or activity A1: Q2: Examples of Cost Objects include: A2: Show Slide #8: LSA #1 Check on Learning Facilitator's Note: Read and ask the following check on learning question and facilitate discussion on answers given. Note: Animated slide Q1: Costs are defined as the _______or _______ consumed to produce a program, project, or activity A1: Q2: Examples of Cost Objects include: A2:

LSA #1 Summary

Communicate the Cost Process Expense Elements Products and Services Payroll Organizations Business Process Cost Center Material Orders (Internal, Job Work) Supplies Activity Types Labor pools Equipment usage Facility usage Project WBS Element Equipment

Capture Cost in GFEBS by Cost Objects The Cost Object is the Fifth Element in the SFIS Line of Accounting.

Define/Explain Cost Objects A Cost Object is a Master Data Element where costs are collected. It is the Fifth Element in the SFIS LOA (also called: The Funded Program) A Cost Object is a management accounting term and is used when allocating Direct and Indirect Cost. Costs are collected in GFEBS via the Cost Object and then at the end of a given accounting period, the cost is allocated to the cost center who consumed the resources. Cost Objects include Cost Centers, Internal Orders, Work Breakdown Structure (WBS) Elements and Business Processes.

Compare Cost Objects VS. Legacy Data Elements

Compare Cost Object VS. Legacy Data Element (Cont.)

Cost Object - Cost Centers Is a unit of the organization from a costing perspective. These are used to collect costs. Cost Centers are used to track and manage costs for responsibility segment of the Army. Transaction Codes: KS01 – Create KS02 – Change KS03 - Display

Cost Object - WBS Elements Are activities in the Work Breakdown Structure used for planning and updating cost data. Is a deliverable-oriented decomposition of a project into smaller manageable components. The WBS provides the necessary framework for detailed cost estimating and control along with providing guidance for scheduling, development and control. Providing a common framework for the overall planning and control of a contract and is the basis for dividing work into definable increments from which the statement of work can be developed. The WBS Elements is a Project System Master Data Element. Transaction Code: CJ20N

Cost Object - Internal Orders A Cost Object used to plan, collect, monitor, and settle the costs of specific jobs and tasks. Are used to monitor the costs of short term, long term, and recurring activities or program that don’t require a work breakdown structure. Transaction Codes: KO01 – Create KO02 – Change KO03 - Display

Cost Object - Business Process A Cost Object used to capture costs of cross-functional activities. Business Process will enable the Army to allocate cost to receiving objects based on the rate of consumption. The execution of a given Business Process is the result of participation between multiple Cost Centers, as well as other objects. The Business Processes uses resources provided by the Cost Center(s) and their Activity Types. Can be linked together in a sender/receiver relationships to pass costs between one another to obtain the total cost of a process. Transaction Codes: CP01 – Create / CP02 – Change / CP03 - Display

LSA #2 Check on Learning a. Cut / Measure b. Track / Manage Q: A cost object is the 4th, 5th, or 6th element in the SFIS LOA. A: Q: Cost Centers are used to ___ and ___ costs for responsibility segment of the Army A: Q: T/F: Cost can be assigned either Directly or Indirectly a. Cut / Measure b. Track / Manage c. Lift / Shift Show Slide #19: LSA #2 Check on Learning Facilitator's Note: Read and ask the following check on learning question and facilitate discussion on answers given. Note: Animated slide Q1: Costs are defined as the _______or _______ consumed to produce a program, project, or activity A1: Q2: T or F: Cost Allocation is the capture of costs as they are incurred. A2:

LSA #2 Summary

Capture Cost on Cost Objects Cost Collection and Allocation depends on Cost Management Master Data Elements to create a cost structure that collects, allocates, and report costs properly. Cost Master Data Element types include: Cost Centers Cost and Revenue Elements Internal Orders Activity Types Statistical Key Figures (SKF)

Legacy Documents that inform GFEBS that an actual cost has occurred: Capturing Cost Legacy Documents that inform GFEBS that an actual cost has occurred: Miscellaneous Payment Invoice Contractual Invoice Goods Receipt Legacy Systems GFEBS

Using Journal Vouchers in GFEBS Journal voucher (i.e., journal entry) processing is limited in GFEBS. Are only used to make adjustments to the General Ledger during month-end processing. Instead of using Journal Vouchers, corrections should usually be made directly to the original document (i.e., a purchase order, goods receipts, funding authorization document, etc.), if it exists in GFEBS. Are used in rare cases in which an adjustment must to be made and the originating document does not exist or an extenuating circumstance occurs. Less than ten Journal Vouchers should be processed in GFEBS each month.

Capturing Payroll Actuals and Posting Payroll Results When a Payroll file is received – GFEBS posts the actual payroll commitments, obligations, expenses and disbursements (COED). The detailed payroll records are sent to GFEBS for reporting and reconciliation purposes. Once received by GFEBS – The Detailed Labor Costs Report and Payroll Audit Report is made available. Posting of Payroll Results – Upon receipt of a payroll file GFEBS will post actual payroll commitments, obligations, expenses and disbursement at a summary level in GFEBS.

Cost Capturing Interfaces DTS NMP DCPS GCSS- ARMY WAWF GFEBS is the System of Record for the General Fund. GFEBS Captures Cost through transactions performed in the system and through interfaces from feeder systems outside of GFEBS. Cost are collected via Cost Objects. LMP SPS OSMIS DMLSS WARS

Cost Capturing Interfaces (Cont.) The following are some examples of interfaces that feed the Controlling Module in GFEBS with cost information. Defense Travel System (DTS) Defense Civilian Payroll System (DCPS) Invoicing, Receipt, Acceptance and property Transfer (IRAPT) (Formally WAWF) Standard Procurement System (SPS) Procurement Desktop-Defense (PD2) (works with SPS to export data from Legacy Systems)

Cost Capturing Interfaces (Cont.) Operating and Support Management Information System (OSMIS) Worldwide Ammunitions Reporting System (WARS) Defense Medical Logistics Standard Support (DMLSS) Logistics Modernization Program (LMP) Global Combat Support System – Army (GCSS-ARMY) Inbound Cost of Consumption Interface from GCSS-A Inbound Equipment Activity Interface from GCSS-A Inbound Equipment Inventory by Unit/Weapons System from GCSS-A Inbound Equipment Usage Interface from GCSS-A National Maintenance Program (NMP) Foreign National Payroll (FNP)

Cost Capturing Interfaces (Cont.) German Foreign Forces Payroll Office (FFPO) Inbound Manual LNP from LNP Files (Countries unable to transmit Local Payroll files) Italian Local National Pay System (ILNPS) There are many other interface between external systems and GFEBS

LSA #3 Check on Learning Q1: What is a Journal Voucher? A1: Q2: DTS is an acronym for; A2: Q3: What is a secure web-based system for electronic invoicing, receipt and acceptance? A3: Show Slide #30: LSA #3 Check on Learning Facilitator's Note: Read and ask the following check on learning question and facilitate discussion on answers given. Note: Animated slide Q1: What is a Journal Voucher? A1: Q2: DTS is an acronym for; A2: Q3: What is a secure web-based system for electronic invoicing, receipt and acceptance? A3: Additional Questions; Q: What are the three Legacy Transactions that inform the Cost Module that an actual cost has been recorded? A: Q: What are the four T-Codes within GFEBS that inform the Cost Module that an actual cost has been recorded?

LSA #3 Summary

Questions?

TLO Summary Action: Capture Cost Conditions: You are a budget analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with: Define Cost and Determine Concepts Communicate the Cost Process Determine Cost on Cost Objects