FI PS 009 Presentation
FI PS 009 Presentation
FI PS 009 Presentation
Capital
Capital Projects
Projects Periodic
Periodic Processing
Processing
November
November 12 -13, 2008
12-13, 2008
LaGOV
Version 1.0
Updated: 10/09/2008
Agenda
2
Logistics
3
Ground Rules
4
Introduction
Roles
Process Analyst and Functional Consultant – lead and
facilitate the discussions and drive design decisions
Documenter – take detailed notes to support the formal
meeting minutes to be sent by the Process Analyst to all
participants for review and feedback
Team Members – provide additional support for process
discussions, address key integration touch points
Subject Matter Experts – advise team members on the
detailed business process and participate in the decisions
required to design the future state business process
Realization
Preparation
Preparation
Business
Blueprint
Support
Go Live
Project
Final
and
• Strategy & Approach Defined • Development & Unit Testing • Go-Live Support
• Project Team Training • Integration Testing • Performance Tuning
• End-User Training Materials
6
Project Organization - Functional Teams
General Ledger
Accounts Payable
Accts Receivable
Cash Management
Cost Accounting
Funds Management
Charlie Davis
Grants Mgt
John Hodnett
Project Systems
Larry Hofstad
Asset Accounting Christine Lee
Grantor
Budget Prep
Real Estate Management
7
Blueprint Objectives
8
Future Work Sessions
Work
Title Business Process Goals Session
Date
- Automated settlements to Assets under Construction and final assets
Capital Projects Periodic - Process for project closeout 11/12/08-
FI-PS-009
Processing - Define roles and processes for defining settlement rules and executing 11/13/08
periodic processing
- Reporting requirements to effectively manage projects
11/19/08-
FI-PS-008 Project Management - Standard reports versus BI reports
- Detail the use of Networks and Activities for scheduling 11/20/08
9
Work Session Objectives
10
As-Is: Wooster Method
11
DOTD As-Is: Project Close-out
12
FPC –“As-Is” Process Overview
OSRAP reviews all Fund 075 expenditures per the 2G06 report to
determine which should be capitalized
Appropriate (> $100,000) projects/expenditures are classified as
“Construction-in-progress” until complete
FPC transmits Notice of Acceptance to OSRAP upon completion
OSRAP capitalizes appropriate expenditures based upon FPC
coding & description
– Projects under $100,000 are not capitalized.
– Discrete expenditures such as Superdome, Colleges, not capitalized
by the State
– Local Projects (Non-state Capital Outlay projects) are not capitalized
by the State
– Land purchases (by the State) are not subject to the $100,000
threshold for capitalization
13
CWPPRA- “As-Is” Process Overview
14
Current Systems Alignment
AFS
AGPS/CFMS
SLABS
PMFS
Excel
TOPS
STARS
Trns.port SiteManager
15
Process Improvement Opportunities
(Pain Points)
16
SAP Glossary
Asset Class - Main criterion for Capital Asset - Tangible property which
classifying fixed assets according cannot easily be converted into cash and
to legal and management which is usually held for a long period,
requirements. including real estate, equipment, etc
Asset Master Record (AMR) – Settlement- settlement is the process
Contains general information and where the actual costs incurred for a
valuation/depreciation rules for a WBS element, network, or activity are
specific item in the Asset allocated, in whole or in part, to one or
Accounting (AA) module. In SAP, it more receivers (e.g. from WBS to AuC,
also stores all the values and from AuC to final AMR)
transaction data for the item. Settlement Rule- distribution rules for
Asset Under Construction- a fixed interim settlements and final settlement
asset that is in the process of being to fixed assets
completed at the time the balance Settlement Profile- the central control
sheet is being produced – parameter for settlements
construction in progress
Cost element – Represents
General Ledger accounts in the
Controlling module.
17
Settlement Overview
FI
MM
Material withdrawal AM
Goods receipt
FI Settlement
rules:
Invoices
- Receivers
- Distribution
rule
CO - Settlement CO
Activity allocation,
transfers, distribution, parameters
overheads, process costs
PS PS
Confirmation
18
What is Settlement?
Settlement is a function in the Controlling module (CO) that transfers actual
costs from a WBS element to a receiver via Settlement Rules for accounting
and reporting purposes
Examples of settlement receivers:
– Cost Centers
– WBS elements
– Assets
Multiple Step Process: During the construction of the asset, costs from the
WBS element will be settled to an Asset Under Construction (AUC). Once
project is complete, settle values from AuC to Final Fixed Asset.
Asset will be shown in different balance sheet items depending on the phase it
is in (AUC vs. Useful Life)
WBS Settlement
Element Receiver
19
Settlement: Cost Element Overview
A cost element:
– Represents a financial posting to a cost object, such as a cost
center or a WBS element
– Explains “what” expense is incurred in the posting
– Resides in the Controlling (CO) module
20
Settlement of Project Costs
21
Indicators in the Settlement Profile
Project profile
Settlement rules:
– Specify the receiving object(s) to which a WBS element’s costs settle
– Determine the percentage of the WBS element’s total costs that are settled
to each receiving object
– Can be copied from an existing project to a new project at the time of
creation if the reference project contains settlement rules
– Must be properly created and reviewed to ensure that actual settlement is
performed successfully
23
Components of Settlement Rules
24
Settlement Rule
25
Decision
26
Multi-Level Settlement - Direct Settlement
Settlement Settlement
receiver receiver
PM
PM CO PP
CO PP
27
Generating the Settlement Rule for a WBS
Customer projects
B Settlement rules
and results analysis keys
for billing elements
Do not
settle
Cost projects
Settlement rule inherited from
Settlement rule in
higher-level WBS element
responsible/requesting cost center
28
Settlement: Summary vs. Line Item
Investment Measure
XY
Summary Settlement Line Item Settlement
Nr. Cost Amount
element
Asset 3 70%
Asset 1 70% 1 400 1000 Asset 4 30%
Asset 2 30% 2 400 4000 Asset 3 100%
Asset 1 100% 3 415 3000 Asset 3 60%
Asset 2 100% 4 615 2000 Asset 4 40%
Asset
Asset1:
1: Asset
Asset2:
2: Asset
Asset3:
3: Asset
Asset4:
4:
700
700 300
300 700
700 300
300
2.800
2.800 1.200
1.200 4.000
4.000
3.000
3.000 2.000
2.000 3.000
3.000 2.000
2.000
6.500
6.500 3.500
3.500 7.700
7.700 2.300
2.300
29
Periodic and Preliminary Settlement
WBS- Element
Settlement to
1 Cst.elem.1 2,500
controlling CO-receivers,
2 Cst.elem.2 8,000 e. g.
cost-centers,
3 Cst.elem.3 2,500 internal orders,
4 Cst.elem.4 3,500 WBS-elements,
...
5 Cst.elem.5 8,500
AuC
6 Cst.elem.6 9,700
7 Cst.elem.7 6,700 Remaining items
are assigned to
AuC
30
Settlement Methods
31
Project Status
32
TECO
33
Decision
STATUSES
DOTD FPC CPRA
Created Created Created
Released Released Released
Hold Hold
FHWA Statuses De-Authorized
Technically Complete Technically Complete Technically Complete
Closed Closed Closed
34
Asset Acquisition: Build
Create
CreateAMRAMR
oror
Update
UpdateAMR
AMR Settlement rules Attach
AttachExisting
ExistingAMR
AMR
AGILE Asset
(AuC)
(AuC) AuC – ‘final’ AMR
<CJ20N – Project Builder>
SAP: RE Object
Depreciation
Depreciation Retirement
Retirement
Posting
Posting
Transfer
Transfer
35
Scenarios
36
Linkage to Assets
37
Asset Threshold
38
Value accumulation
39
Asset Linkage: AuC to final AMR
40
AMR – Asset Value Display (Sample)
41
Draft To-Be
Create
Create Project Project
Project Systems PM/
Advise of
Update WBS Project
B Yes Month End Completion
Forward Request Status to
Land/Building/ Settlement (staged or
to create Master TECO all)
Data and Other ROW purchase
required?
Existing B
AMR?
Agency Real Estate &
Create RE
No
Administrator /
Update * /
Review AMR
for Capital Assets
42
Roles and Responsibilities
43
Enterprise Readiness Challenges
Training
– Extensive training will be required on project settlement and the
project close-out procedure
– Extensive training will be required for Asset Creation and
Update:
• Subnumbering by funding source
• At AuC and final AMR stages
– Project Managers (or equivalent) will be responsible for updating
project statuses, managing which actions can be performed
against the project at any given time
Evolving roles and responsibilities for project
management, cleanup, and closeout
44
Best Practices
45
Next Steps
46
Project Contacts
Larry Hofstad
– (225) 219-6796
– Larry.Hofstad@la.gov
John Hodnett
– (225) 219-6799
– John.Hodnett@la.gov
47
Questions?
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