Understanding IRIS Budget Vs. Actual Data

1. Understanding IRIS Budget Vs. Actual Data Or How to use Budget vs. Actual reports in IRIS

2. Goals of the Presentation • Provide an introduction to SAP financial data • Explain how data differs among modules • Identify key elements of data and how users can find them • Demonstrate reports that show key data elements • Obtain feedback for improvement of reports

3. FI-SPL BW FI CO MM GM FM Actuals Encumbrances IRIS Financial System Components • The IRIS SAP Financial system has several components: • Financial Accounting (FI) • Special Purpose Ledger (FI-SPL) • Grant Accounting (GM) • Controlling (CO) • Funds Management (FM) • The Materials Management (MM) module posts encumbrances into GM and FM and goods receipts and invoices into FI • Data is extracted to the Business Warehouse (BW) for integrated reporting

4. Transaction Data Update Rules • Data in each SAP component are targeted to a particular use • When a transaction is posted in a source component it automatically creates transactions in all destination components based on defined update rules • The update rules define whether certain types of transactions will be posted to the destination component and what master data elements will be included in each transaction • Legitimate differences can exist among data in different components where the update rules are different • No data are created in BW. Data from other components are extracted to BW based on extraction rules

5. Overview of Data Differences • FI – Contains debit and credit transactions by GL account but does not have fund and business area (corporate entity) in AR and AP postings • FI-SPL – Contains all debit and credit transactions by fund and business area but does not have budget data • GM – Contains all debit and credit transactions and also budgets and encumbrances related to grants • CO – Contains only revenue and expense transactions (single-sided entries) by cost center, internal order and WBS element but no balance sheet postings, budgets or encumbrances • FM – Contains only revenue and expense transactions (single-sided entries), budgets, encumbrances and actuals for revenues, expenses, but no balance sheet postings • BW – Contains all data extracted to BW and ability to link data based on predefined reporting needs

6. Data Differences in Detail - FI • FI is the source component for financial transactions such as goods receipts, invoices, payroll postings, recharges and journal entries • Reports in the FI module use the Company Code, GL accounts, Business Areas and Functional areas to summarize transactions • FI also tracks transaction data for vendors and customers • FI reports and screens can be used to track status of transactions (e.g. parked vs. posted, unpaid vs. paid, cleared vs. un-cleared, etc.) • No budgets or encumbrances are available in FI

7. Data Differences in Detail – FI-SPL • FI-SPL contains all the accounting data needed for fund accounting • All transactions in SPL have fund and business area (corporate entity) • Balance sheets by fund and business area can only be created out of SPL data • SPL data are used to create UK’s financial statements in accordance with GASB 34 and 35 • At UK, all SPL data originate in financial accounting with no direct posting in SPL • FI-SPL does not contain budget and encumbrance data

8. Data Differences in Detail - GM • GM is a grant sub-ledger and summarizes transactions by grant, sponsored class and sponsored program • The GM sub-ledger includes budgets, encumbrances, actuals, indirect costs, revenues, sponsor billings, accounts receivable and cash drawdowns, etc. by grant • GM data are used to grant budgets availability checking • GM data are also used to create internal and sponsor reports by grant • A balance sheet by Grant can be created out of GM data

9. Data Differences in Detail - CO • CO data are used to show break-downs of revenues, expenses and internal allocations by cost center, internal order and WBS element • CO reports contain statistical (memorandum) transactions in addition to real (accounting) transactions • Real transactions can be reconciled to accounting but statistical transactions cannot • In CO, procurement costs for 3-way match Purchase Orders are updated only when the goods receipt is posted • At UK, CO data do not include budgets and encumbrances and are therefore not helpful to most users

10. Data Differences in Detail - FM • FM contains data needed for tracking budgets encumbrance and actuals • FM data are summarized by fund, fund center, commitment item (not to be confused with commitment), functional area and funded program • In FM, procurement costs for 3-way match Purchase Orders are updated either when the goods receipt is posted or when the invoice is posted, whichever comes first • User codes (statistical internal orders) are not available in FM nor are assets and liabilities. • Due to the availability of budget and encumbrance data FM data is better suited to UK departmental reporting

11. Budget Data in the FM Module • UK Budget data are entered in FM as a part of budget preparation and through changes and transfers. Budgets for FY 2006 were loaded into FM when IRIS went live • Budget data are summarized by Fund, Fund Center, Commitment Item, Functional Area and funded program • Budget data exist in Versions where the Current Budget is version 0, Original Budget is version 200, and budget being prepared is version 100. • The Budget Type classifies budget data into recurring and non-recurring • Budget summary data allows drill-down to budget entry documents which may be in the status preposted, posted or undone.

12. Encumbrance and Actual Data in FM • Encumbrances – FM includes the following encumbrances: • Departmental encumbrances (Funds Reservations type F2) • Job Order Encumbrances (Funds Reservations type F1) • Requisition Encumbrances • Purchase Order Encumbrances • Actuals – FM includes the following types of actuals: • Goods Receipts against POs • PO invoices and DAVs • Recharge entries and other Journal Vouchers

13. Period Based Encumbrance Tracking • Encumbrances and actuals are posted in transaction chains e.g. a PO Line refers to a requisition and goods receipts and invoices refer to a PO Line • Encumbrances may be changed through change transactions (e.g. account assignment changes) and through subsequent documents (e.g. goods receipt or invoice receipt). • Encumbrances are carried forward at year end • Since data once written to FM cannot be deleted, all changes, liquidations and carry forwards are posted as additional line items • The main goal is to protect the history and the audit trail • By applying the appropriate filters, the status of a particular encumbrance can be established at any time • Understanding the data is key to creating the appropriate filters

14. Period Based Encumbrance Tracking Example

15. Period Based Encumbrance Tracking Example

16. Integrated Reporting in BW • The BW system contains three main areas of financial reporting for end users (role BWP_REPORTS_FINANCE) • Special Ledger • Funds Management/Budget Control • Grants Management • These groupings are based on the source of data

17. Funds Management Reports in BW

18. Funds Management Reports in BW • The Funds Management/Budget Control area contains reports to be used to monitor encumbrances and actuals against budgets • The Fund Center Balances: Budget vs Actual report shows the summary budget, actuals and encumbrances for a fund center or similar organizational grouping • The Fund Center Balances: Budget vs Actual report is supported by detail reports for: • Budget Entry documents • Encumbrances • FM Actuals • You can either drill-down from the summary reports to the detail reports or run detail reports directly • Drill-down from summary reports automatically transfers parameters to the detail report

19. Funds Management Reports in BW • The Capital Projects Ledger report shows the summary budget, encumbrances and actuals for capital project funds (range 0410000000 through 0419999999) • Detail reports are available for: • Budget Entry documents • Encumbrances • FM Actuals • You can either drill-down from the summary reports to the detail reports or run detail reports directly • Drill-down from summary reports automatically transfers parameters to the detail report • You can run detail reports directly to verify transactions by entering the parameters

20. Demo of Fund Center Balances: Budget Vs. Actuals Report

21. Known Gaps in BW Reports • User code (Statistical Internal Orders) • Not available in FM data • Not currently available in FMBCS BW reports • Will be available in BW once details are loaded • Line item text in details • Not available in FMBCS BW reports • Will be available in BW line item reports once details are loaded

22. Questions?