CET CERN Expenditure Tracking

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

2. 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

3. Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre

4. Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre

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

6. 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)

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

8. User Preferences

9. User Preferences

10. Column Selector Default Columns

11. Ordering Selector

12. Drilldown

13. Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre

14. I would like to buy some Hardware Commitment : 3000 Payment to supplier: 600 Open Commit. : 2400 Basic Terminology 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 Payment to Supplier:Amount paid on invoice Open Commitment:Commitment – Payment (Budget Code) 9 / 05 8 / 05

15. Budget: Basic Terminology 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 1400 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

16. Budget: Basic Terminology 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 1000 2400 Payment to Supplier:Amount paid on invoice 1000 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

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

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

19. Annual vs. Pluri-Annual Commitment H/w: CHF 3,000 Special Offer : Pay 20% On Order and 80% on Deliv. Pluri-annual commitment= payment 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.

20. Terminology in a CET Example Summaries

21. Terminology in a CET Example CET Pivot

22. Terminology in a CET Example

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

24. Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre

25. 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…

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

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

28. Cost Centre Activity Code Nature • 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

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

30. Cost Centre Activity Code Nature 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

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

32. delivery Goods Reception User request workflow order Qualiac EDH CET Purchasing invoice authorise Finance monitor Budget Holder instructions Lifecycle of an Order 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... 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 30

33. Pipeline & Order Status • Pipeline • 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

34. Most Important Order Statuses

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

36. Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre

37. 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 thedraft contractavailable in CFU, but notin Qualiac!

38. 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 allphases of acontract isavailable inCET.

39. Contracts in CET

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

41. 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 ofthe different categories are handled • Sign in balance columns is inversed compared tothe rest of CET • Negative amounts: Money owed to CERN • Positive amounts: Balance in the team's favour

42. 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 • No details by activity code and nature available • Teams T5…T9 • Details by activity code and nature are available • No cashflow transactions available, instead cash flow balance is provided

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

44. Agenda 1 CET Overview 2 Basic Terminology 3 Financial Concepts 4 CERN Specialities 5 Advanced Features 6 CET Information Centre

45. CET Advanced Features • Virtual units • 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.

46. Advanced Features Virtual Units

47. 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

48. Editing Virtual Units

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

50. Using Virtual Units Instead of only queryingthe expenses for IT-AIS-MDS, the reportwill also search forexpenses charged to thebudget code 47115 (IT-AIS-HR). IT-AIS-MDS 47115