CET CERN Expenditure Tracking Introduction to CET and basic financial concepts April 2006 IT-AIS-MDS IT-AIS-MDS

What do you learn today…? After the presentation, you should be able ... to know what is CET and how to access it to understand the purpose of the main CET reports to distinguish between payments, commitments, provisions etc. to get a better idea about financial transactions to use advanced features like virtual units and ranges to discover the flexibility of CET Information Centre

Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

Where to find CET Inside CERN use the following URL From outside CERN https://cet.cern.ch/

Some Words about CET Built for CERN to meet the Expenditure Tracking needs and challenges of the LHC construction Replaced BHT (Budget Holders Toolkit) in 2002 Gathers its data from the various financial applications used at CERN (mainly Qualiac) Data is extracted daily (extractions run during the night) CET (among other applications like HRT, SMT, IC, CFUtk etc.) is maintained and further extended by the AIS-MDS team: Per Gunnar Jönsson (SL) Chris Dixon (STAF) Jan Janke (STAF) Piotr Sliwa (FELL)

Status of book closing and extractions Main Menu Contracts Status of book closing and extractions Transactions Summaries Information Centre User Preferences

User Preferences

User Preferences

Column Selector Default Columns

Ordering Selector

Drilldown

Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

Basic Terminology H/w: CHF 3,000 Definitions…. Commitment: Amount agreed to pay H/w: CHF 3,000 Pay 20% On Order and 80% on Deliv. Payment on Budget Code: Amount charged to Budget Code Commitment : 3000 Payment to supplier: 600 Open Commit. : 2400 I would like to buy some Hardware Payment to Supplier: Amount paid on invoice Open Commitment: Commitment – Payment (Budget Code) 9 / 05 8 / 05

Basic Terminology H/w: CHF 3,000 Definitions…. Commitment: Amount agreed to pay H/w: CHF 3,000 Pay 20% On Order and 80% on Deliv. Year 2005 Commitment : 3000 Payment to supplier: 600 Provision: Paid on Budget Code: Open Commit. : Payment on Budget Code: Amount charged to Budget Code Budget: 1400 2005 2006 2,000.00 1,000.00 2000 Payment to Supplier: Amount paid on invoice 1000 Open Commitment: Commitment – Payment (Budget Code) Provisioned next year: Money from this year’s budget set aside for next year expenses 12 / 05 9 / 05 8 / 05

Basic Terminology H/w: CHF 3,000 Definitions…. Commitment: Amount agreed to pay H/w: CHF 3,000 Pay 20% On Order and 80% on Deliv. Year 2006 Commitment : 3000 Carry Over: Bill from supplier: Paid on Budget Code: Paid from Provision: Payment on Budget Code: Amount charged to Budget Code Budget: 1000 2400 2005 2006 2,000.00 1,000.00 1000 Payment to Supplier: Amount paid on invoice 1400 Open Commitment: Commitment - Payment 01 / 06 Provisioned next year: Money from this year’s budget set aside for next year expenses 12 / 05 Carry Over: Open Commitments at the end of last year 9 / 05 8 / 05 Paid on Provision: Amount paid on invoices using money provisioned last year

Annual vs. Pluri-Annual Commitment H/w: CHF 3,000 Special Offer : Pay 20% On Order and 80% on Deliv. Annual commitment 2005 2006 Pluri-annual commitment 2005 ? 2006 CHF 3000 CHF 2400 The chosen time period must not exceed one (financial) year.

Annual vs. Pluri-Annual Commitment H/w: CHF 3,000 Special Offer : Pay 20% On Order and 80% on Deliv. Annual commitment 2005 2006 Pluri-Annual ? Pluri-annual commitment 2005 ? 2006 CHF 3000 CHF 2400 CHF 5400 ?

Annual vs. Pluri-Annual Commitment H/w: CHF 3,000 Special Offer : Pay 20% On Order and 80% on Deliv. Pluri-annual commitment = payment Annual commitment 2005 CHF 3000 2006 CHF 2400 Pluri-annual commitment 2005 2006 CHF 600 CET automatically switches to the pluri-annual versions of the columns, if the time period refers to a time period not matching a single (financial) year. CHF 2400 More than one year is selected.

Terminology in a CET Example Summaries

Terminology in a CET Example CET Pivot

Terminology in a CET Example

Terminology in a CET Example Paid to Supplier Open Commit. Commitments Payments Budget

Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

Paid on Budget Code vs. Paid to Supplier According to our system we have paid you the full amount of 50K But we have only received 20K…

Paid on Budget Code vs. Paid to Supplier Paid to Supplier > Paid on Budget Code Invoice (partially) Paid on Provision Paid on Budget Code > Paid to Supplier Money has been provisioned

Provisioning Allocate money now for future expenses Used to balance accounts towards end of year DPOs are the experts on provisioning

Main Building Blocks of a Financial Transaction Cost Centre Nature Activity Code WHO? Cost Centre (Cost Accounting) Intersection Code 92640 (LHC Controls) Organic Unit AB-CO Project GCH PPA/Sub-PPA FHC-000 (LHC Machine) or a Team Account…

Main Building Blocks of a Financial Transaction Cost Centre Nature Activity Code WHAT? Nature Code (General Ledger) Posts 615 Entretien 6152220 Entretien routes 6152230 Entretien nettoyage 6152320 Entretien chauffage Category High level classification e.g. 61 - Consumables

Main Building Blocks of a Financial Transaction Cost Centre Nature Activity Code WHY? Activity Code (Analytical) Technologie du vide et des basses temperatures 66 Materiaux pour basses temperatures 667 Elements Cryogeniques

Main Building Blocks of a Financial Transaction Cost Centre Nature Activity Code Currency EUR Amount 25000 92640 AB-CO GCH FPC-000 6152290 Entretien divers 667 Elements Cryogeniques

Lifecycle of an Order User EDH Qualiac CET Budget Holder Goods Reception delivery User order request EDH workflow Purchasing invoice Qualiac authorise CET Finance Budget Holder instructions monitor Order EDH Pipe Paid Commit Open Status CA123 111235 0 0 3000 3000 30 Order EDH Pipe Paid Commit Open Status CA123 111235 3000 0 0 0 - Order EDH Pipe Paid Commit Open Status CA123 111235 0 0 3000 3000 73 Order EDH Pipe Paid Commit Open Status CA123 111235 0 2000 3000 1000 91 CET...

Pipeline & Order Status Shows "committed" expenses not yet in Qualiac … … from EDH, CFU Amounts are estimates Once an order is committed in Qualiac, it disappears from the pipeline Order Status Shows the financial status of a transaction

Most Important Order Statuses Code Description 30 Transfert en comptabilité, facturation 49 Réception 52 Edition bon de réception 72 Facture détaillée 91 Mise au paiement 96 Poubelle (DAI, codes supprimés) 97 Archivage

Flashback: Terminology in a CET Example Open Commit. Paid to Supplier Commitments Budget Payments Pipeline

Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

CERN Specialities in CET Contracts Contract data from CFU (Contract Follow-Up) and Qualiac Draft contract expenditure is integrated into the "pipeline" Contract life cycle: A divisional request (DR) is made to request money A market survey (MS) follows Invitation to tender (IT) Contract is concluded Contract is put into Qualiac Data of the draft contract available in CFU, but not in Qualiac!

CERN Specialities in CET Contracts Contract data from CFU (Contract Follow-Up) and Qualiac Draft contract expenditure is integrated into the "pipeline" Contract life cycle: A divisional request (DR) is made to request money A market survey (MS) follows Invitation to tender (IT) Contract is concluded Contract is put into Qualiac Data for all phases of a contract is available in CET.

Contracts in CET

Breakdown by Budget Code Forecasted Expenditure Contracts in CET Base Data FC Authorized Amount Paid to Supplier Breakdown by Budget Code Forecasted Expenditure

CERN Specialities in CET Team Accounting Separation of CERN and non-CERN money Accounting is very close to bank statements Cash flow, budget and balances Two main categories of team accounts T1…T4 Institutes, Teams etc. T5…T9 Collaborations, Experiments There is a big difference in how team codes of the different categories are handled Sign in balance columns is inversed compared to the rest of CET Negative amounts: Money owed to CERN Positive amounts: Balance in the team's favour

Team Accounting Teams T1…T4 with expenditure ceiling Followup of this account is a matter of ensuring that the payments and foreseen expenditure do not exceed the ceiling No details by activity code and nature available Teams T1…T4 without expenditure ceiling No agreed ceiling Spending is possible up to the limit of the 'cash' that is available in the 'cashflow' account Teams T5…T9 Details by activity code and nature are available No cashflow transactions available, instead cash flow balance is provided

Team Accounting in CET Four reports are dedicated to teams: Team Transactions Request For Funds Totals for Teams Team Graphs

Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

CET Advanced Features Virtual units Ranges Stored reports Create your own units for specific monitoring purposes. Ranges Query data for a range of values. Stored reports Store criterias for a particular report for easy reuse.

Advanced Features Virtual Units

Virtual Units Available in CET and HRT Can be used in all reports Container for different items of various types Persons Cost centres Organic and PPA units Experiments and institutes Projects Contracts Items of different types can be mixed up Are processed at the time a report is executed (runtime) Changing a virtual unit affects all reports it is used in

Editing Virtual Units

An additional budget code has been added. Editing Virtual Units An additional budget code has been added.

Using Virtual Units Instead of only querying the expenses for IT-AIS-MDS, the report will also search for expenses charged to the budget code 47115 (IT-AIS-HR). IT-AIS-MDS 47115

Ranges Use of ranges is possible in fields like Organic Unit, PPA Unit, Budget Code, Project, Experiment … Specify range limits by using a colon ':' Ranges only having a left or a right bound are accepted as well Two bounds - 47115:47118 Right bound - :47118 Left bound - 47115:

Advanced Features Stored Reports

Stored Reports All CET reports can be "stored" Very useful if a particular report is executed regularly and uses a non-trivial set of input criteria Storing a report means: Saving the criteria that have been defined for it Stored reports can be executed via the Report Folder Accessible from the main menu It is now possible to schedule stored reports for automated and unattended execution!

Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

CET Information Centre MDS is constantly asked to enhance existing report Add extra information to implement new reports Combination of reports A and B in both cases the enhancements are often of interest only for a few users Information Centre allows users to create reports themselves because they know best what they need Information Centre

Information Centre in Action Select the report to edit and click to open the editor. Create a new report Assign a name

Information Centre in Action Execute the report Get more information Check its performance

Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

The Data comes to you… Information Center Report 2) Click here to configure the report to be scheduled for automated execution. Information Center Report 1) Select the report you would like to be executed regularly.

The Data comes to you… Standard Report 2) Click here to configure the report to be scheduled for automated execution. 1) Select the report you would like to be executed regularly.

The Data comes to you… Configure how the scheduling should work…

The Data comes to you… Wait for the daily email, coming each morning…

Report Scheduling Pushing data vs. pulling data Use cases Instead of manually executing a report each time certain data is required, a report is executed automatically in regular intervals. The results of the report's execution are sent by email. More than one recipient for the report results can be defined. Use cases Overview of my section's or group's budget. What's in the pipeline and coming next ? What's the situation of the team accounts I am resposible for ? …

Report Scheduling What can be scheduled ? Almost everything ! Information Centre reports Standard CET (stored) reports What kind of execution intervals are available ? Daily, weekly, monthly For weekly and monthly execution, the concrete day can be chosen (i.e. day of the week or month). Where do I get more information ? On the web: http://ais.web.cern.ch/ais/apps/hrt/ReportScheduling/welcome.html

The End Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre 7 Report Scheduling (Pushing Data)

What was not covered Advanced team accounting Advanced contract analysis (draft contracts) EVM (Earned Value Management) More advanced financial analysis with CET

The End. Questions & answers Thank you for your attention "A bank is a place that will lend you money if you can prove that you don't need it." -- Bob Hope (British American Entertainer, 1903 - 2003)