Financial Structure Workshop

1. Financial Structure Workshop November 9, 2000

2. Funds Management Area - 5000 College of W&M Plant 1000 Controlling Area - 1000 Chart of Accounts 1000 Facilities Mgmt Plant 1100 Company Code WM - 0204 Company Code VIMS - 0268 VIMS Plant 2000 Residence Life Plant Cap OutlayP. Org.-xxxx WM Purch Org. 1000 Cap OutlayP. Org.-xxxx 1200 Sales Area VIMS Misc Bill 2100 WM Misc Bill 1100 WM - G&C 1000 VIMS- G&C 2000 Sales Organization 01 01 01 01 Distribution Channel Division 03 02 01 01 01 01 Purch Facil Mgmt Misc G&C G&C Misc Enterprise Model

3. Funds Management Area - 5000 College of W&M Plant 1000 Controlling Area - 1000 Chart of Accounts 1000 Facilities Mgmt Plant 1100 Company Code WM - 0204 Company Code VIMS - 0268 VIMS Plant 2000 Residence Life Plant Cap OutlayP. Org.-xxxx WM Purch Org. 1000 Cap OutlayP. Org.-xxxx 1200 Sales Area VIMS Misc Bill 2100 WM Misc Bill 1100 WM - G&C 1000 VIMS- G&C 2000 Sales Organization 01 01 01 01 Distribution Channel Division 03 02 01 01 01 01 Purch Facil Mgmt Misc G&C G&C Misc Enterprise Model

4. Cash Based Budgeting View Accrual Based Internal View Funds Management Area (FM) - 5000 Controlling Area (CO) - 1000 Chart of Accounts 1000 Company Code WM - 0204 (FI) Company Code VIMS - 0268 (FI) Accrual Based External View Enterprise Model - Financial Structure

5. Primary posting CO AP - AR - GL accrual based actuals FI Cost centers Vendors Customers WBS Cost elements GL accounts Budgets Cash based actuals Fund Centers Funds Commitment items Budget Process Budgets FM Enterprise Model - Financial Structure Flow

6. Funds Management Area - 5000 Funds Management • Fund Center Hierarchy • Commitment Item Hierarchy • Budgeting Process Note: SAP Fund is equivalent to Fund-Fund detail

7. Funds Management - Fund Center Hierarchy • Fund Center Hierarchy is derived based on Program-Subprogram grouping necessary for State reporting Nodes Fund Centers

8. Primary Posting CR - Vendor DR - Printing Budgeting General Ledger Printing-412150 Commitment Item 412150 • Printing Commitment Item 412150 • Skilled Services Commitment Item 412680 Budget Values Actual Values Funds Management - Commitment Item Hierarchy • Grouping of types of revenues and expenditures within Funds Management • Create a budget by Commitment Item - Fund Center - Fund combination Commitment Item Hierarchy W&M/VIMS Expenditure Revenue Contract Services 412000 Salary & Wages 411000

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

10. Controlling Controlling Area - 1000 • Cost Center Hierarchy • Cost Element • Cost Objects • Cost Center • WBS Element • Internal Order

11. Controlling - Cost Center Hierarchy

12. 6 Digits xxxxxx 4xxxxx Primary Cost Element 4xxxxx Commitment Item 5xxxxx Secondary Cost Element 5xxxxx Commitment Item • Charge Overhead • Assessment of Plant Costs • Internal Order (Work Order) settlement 6xxxxx Secondary Cost Element 6xxxxx Commitment Item 8xxxxx General Ledger (revenue) 8xxxxx Primary Revenue Element 8xxxxx Commitment Item Controlling - Cost Element FI CO FM General Ledger Accts Cost Element Commitment Item 4xxxxx General Ledger (expenses)

13. WBS Element Fund Center Internal Order Fund Center Controlling - Cost Objects CO FM Cost Center Fund Center

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

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

16. Chart of Accounts 1000 • Enterprise Model - Financials Company Code WM - 0204 Company Code VIMS - 0268 • Chart of Accounts • General Ledger Accounts • Bank Accounts • Reconciliation Accounts

17. Financials - General Ledger Accounts 6 Digits xxxxxx 100000-199999 Assets 200000-299999 Liabilities 300000-399999 Fund Balance 400000-499999 Expenses 700000-799999 Gain/Loss 800000-899999 Revenue 900000-999999 Closing

18. Financials - Bank Accounts • Memo Banks will be distinct general ledger accounts • Each Fund will be assigned to one of the following bank accounts

19. Financials - Reconciliation Accounts • Each Vendor and Customer will be assigned to a Reconciliation Account in the General Ledger Account 134020 Account 210010 General Ledger Customer 900169 Customer 700240 Customer 600010 Vendor 200120 Vendor 535273 Vendor 634002 Sub-Ledger

20. Project Systems (PS) Project Systems • Project Header - Definition • WBS Elements

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

22. Project Systems and Funds Management PS FM Project header V.XXXXXX WBS element V.XXXXXX Fund center V.XXXXXX WBS element V.XXXXXX.01 WBS element V.XXXXXX.02 Fund center V.XXXXXX.02 Fund center V.XXXXXX.01

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

24. Postings • Budget Entry • Purchase Order • Goods/Invoice Received • Payment

25. Primary posting CO AP - AR - GL accrual based actuals FI Cost centers Vendors Customers WBS Cost elements GL accounts Budgets Cash based actuals Fund Centers Funds Commitment items Budget Process Budgets FM Financial Structure Flow: FI - CO - FM

26. CO accrual based actuals $ 0.00 $ 1,000 Budgets Cost Element Cost Center Cash based actuals $ 0.00 $ 1,000 $ 1,000 Budgets FM Posting - Budget entry • Budget Entry: • Comm Item - Office Supplies 413120 • Fund Center - Biology Admin 1111200 • Fund - 0300

27. CO accrual based actuals $ 0.00 Committed $ 200 Cost Center Cost Element Available $800 Budgets Cash based actuals $ 0.00 Fund Center Comm Item BudgetCheck Committed $200 Available $800 Budgets FM Posting - $200 Purchase Order • Purchase Order entry in MM: • Cost Object (CC, WBS, IO) • Biology Admin - 1111200 • Expense General Ledger Account • Office Supplies - 413120

28. CO accrual based actuals $ 200 Available $800 Budgets Posting - $200 Goods/Invoice Received Posting in AP FI • Debit: • CC - 1111200 • GL - 413120 Cost Center Cost Element Credit: Vendor No update of FM

29. Posting - $200 Payment Posting in AP FI Debit: Vendor No update of CO Credit: Cash 110001 Cash based actuals Commitment Item $ 200 Available $ 800 Budgets FM

30. Financial Structure Flow: FI - CO - FM Primary posting CO AP - AR - GL accrual based actuals FI Cost centers Vendors Cost Center Cost Element Customers WBS Cost elements GL accounts Cost Center Cost Element Budgets Cash based actuals Commitment Item Fund Centers Fund Center Comm Item Funds Commitment items Budget Process Budgets FM