Financial Structure Workshop November 9, 2000

Funds Management Area Chart of Accounts 1000 Controlling Area Company Code WM Company Code VIMS èEnterprise Model College of W&M Plant Facilities Mgmt Plant Residence Life Plant 2000 VIMS Plant WM Purch Org Cap Outlay P. Org.-xxxx G&C Misc WM - G&C 1000 VIMS- G&C Sales Area Distribution Channel Division Sales Organization VIMS Misc Bill 2100 WM Misc Bill MiscFacil Mgmt Purch

Funds Management Area Chart of Accounts 1000 Controlling Area Company Code WM Company Code VIMS èEnterprise Model College of W&M Plant Facilities Mgmt Plant Residence Life Plant 2000 VIMS Plant WM Purch Org Cap Outlay P. Org.-xxxx G&C Misc WM - G&C 1000 VIMS- G&C Sales Area Distribution Channel Division Sales Organization VIMS Misc Bill 2100 WM Misc Bill MiscFacil Mgmt Purch

Funds Management Area (FM) Chart of Accounts 1000 Company Code WM (FI) Company Code VIMS (FI) Controlling Area (CO) èEnterprise Model - Financial Structure

èEnterprise Model - Financial Structure Flow Primary posting FI Vendors Customers GL accounts FM Funds Fund Centers Commitment items Budget Process Cost centers Cost elements WBS CO

Funds Management Area èFunds Management l Fund Center Hierarchy l Commitment Item Hierarchy l Budgeting Process Note: SAP Fund is equivalent to Fund-Fund detail

èFunds Management - Fund Center Hierarchy l Fund Center Hierarchy is derived based on Program- Subprogram grouping necessary for State reporting Nodes Fund Centers

èFunds Management - Commitment Item Hierarchy l Grouping of types of revenues and expenditures within Funds Management l Create a budget by Commitment Item - Fund Center - Fund combination Printing Commitment Item Skilled Services Commitment Item W&M/VIMS Salary & Wages Contract Services RevenueExpenditure Commitment Item Hierarchy Budgeting Budget Values Primary Posting CR - Vendor DR - Printing Actual Values General Ledger Printing Commitment Item

èFunds Management - Budgeting Process Budget Entry Initial Transfer Supplement Returns CI/ FC/ Fund NB-Non Base EntryRel. CI/ FC/ Fund BB-Base Version EntryRel. CI/ FC/ Fund Active Budget EntryRel. Availability checking during postings Copied Entry Budget Office Departments Budget Office Release CO - Version 0 Act.Plan Cost element Cost Center Facilitates Reporting through Alternative Hierarchies

Controlling Area èControlling l Cost Center Hierarchy l Cost Element l Cost Objects n Cost Center n WBS Element n Internal Order

èControlling - Cost Center Hierarchy

èControlling - Cost Element FI CO FM 5xxxxx Secondary Cost Element 6xxxxx Secondary Cost Element General Ledger Accts Cost Element Commitment Item 4xxxxx Commitment Item 5xxxxx Commitment Item 6xxxxx Commitment Item 6 Digits xxxxxx 8xxxxx General Ledger (revenue) 8xxxxx Primary Revenue Element 8xxxxx Commitment Item Charge Overhead Assessment of Plant Costs Internal Order (Work Order) settlement 4xxxxx Primary Cost Element 4xxxxx General Ledger (expenses)

èControlling - Cost Objects CO FM Cost Center Fund Center WBS Element Internal Order Fund Center

èControlling - WBS elements l Collect costs and revenues for projects l Collect non financial project related data l Integration between Project System and Funds Management - each WBS element is linked to a Fund Center (budgeting, reporting)

èControlling - Internal Order l Collect costs for a short term event or specific service l Replace the current work order functionality l Integration between Controlling and Funds Management - each Internal Order is linked to the Fund Center for Facilities Management

Chart of Accounts 1000 Company Code WM Company Code VIMS èEnterprise Model - Financials l Chart of Accounts n General Ledger Accounts n Bank Accounts n Reconciliation Accounts

èFinancials - General Ledger Accounts Assets Liabilities Fund Balance Expenses Gain/Loss Revenue Closing 6 Digits xxxxxx

èFinancials - Bank Accounts l Memo Banks will be distinct general ledger accounts l Each Fund will be assigned to one of the following bank accounts

èFinancials - Reconciliation Accounts l Each Vendor and Customer will be assigned to a Reconciliation Account in the General Ledger Sub-Ledger General Ledger Account Account Customer Customer Customer Vendor Vendor Vendor

Project Systems èProject Systems (PS) l Project Header - Definition l WBS Elements

èProject Systems WBS element V.XXXXXX WBS element V.XXXXXX WBS element V.XXXXXX.01 WBS element V.XXXXXX.01 WBS element V.XXXXXX.02 WBS element V.XXXXXX.02 Project header V.XXXXXX Project header V.XXXXXX l Format - n W.xxxxxx.xx.xx (William & Mary) n V.xxxxxx.xx.xx (VIMS)

WBS element V.XXXXXX WBS element V.XXXXXX èProject Systems and Funds Management WBS element V.XXXXXX.01 WBS element V.XXXXXX.01 WBS element V.XXXXXX.02 WBS element V.XXXXXX.02 Project header V.XXXXXX Project header V.XXXXXX Fund center V.XXXXXX Fund center V.XXXXXX Fund center V.XXXXXX.01 Fund center V.XXXXXX.01 Fund center V.XXXXXX.02 Fund center V.XXXXXX.02 FMPS

èProject System and billing WBS element V.XXXXXX WBS element V.XXXXXX WBS element V.XXXXXX.01 WBS element V.XXXXXX.01 WBS element V.XXXXXX.02 WBS element V.XXXXXX.02 Project header V.XXXXXX Project header V.XXXXXX Sales Order Invoice $$$ Costs $$ Costs $

èPostings l Budget Entry l Purchase Order l Goods/Invoice Received l Payment

èFinancial Structure Flow: FI - CO - FM Primary posting FI Vendors Customers GL accounts FM Funds Fund Centers Commitment items Budget Process Cost centers Cost elements WBS CO

èPosting - Budget entry FM $ 1,000 $ 0.00 Budget Entry: Comm Item - Office Supplies Fund Center - Biology Admin Fund $ 1,000 $ 0.00 CO

èPosting - $200 Purchase Order Purchase Order entry in MM: Cost Object (CC, WBS, IO) Biology Admin Expense General Ledger Account Office Supplies Available $800 CO $ 0.00 Committed $ 200 $ 0.00 Committed $200 Available $800 Budget Check FM

èPosting - $200 Goods/Invoice Received FI Posting in AP Debit: CC GL Credit: Vendor No update of FM Available $800 CO $ 200

èPosting - $200 Payment Posting in AP FI Debit: Vendor Credit: Cash No update of CO FM $ 200 Available $ 800

èFinancial Structure Flow: FI - CO - FM Primary posting FI Vendors Customers GL accounts FM Funds Fund Centers Commitment items Budget Process Cost centers Cost elements WBS CO