1. Public Sector Development Update
May 20, 2003

2. Detailed Agenda
R3 Enterprise Patrick Thiele Position Budgeting & Control Joe Chance Budget Control System Joe Chance Grants Management Joe Chance Federal Financials Leslie Stevens Stephen Balsam Procurement Matthew Dixon Patrick Thiele

3. R3 Enterprise
Patrick Thiele, Product Manager

4. R/3 Enterprise—Ramp-Up Status
Since January of 2003, after a successful Ramp-Up, R/3 Enterprise is now:
In Unrestricted Shipment
Available to All Customers
3 phases took place during the Ramp-Up. (Started: July, September and November 2002)
>220 customers were selected for Ramp-Up (worldwide)
~ 50% of the selected customers use new functionality in the SAP R/3 Enterprise Extensions
8 active pilots on Unicode
26 customer have gone live

5. Ramp-Up Status (2) Ramp-Up
Customers felt comfortable with the Ramp-Up support
Compared to previous shipments we saw a benefit in the early training of SAP consultants and partners
SAP R/3 Enterprise
Customers have really experienced that the upgrade technology is smoother than ever before
Customers started from a SAP R/3 Release higher than B benefit from technical enhancements like the SAP Modification Assistant (available since 4.5B)
Up to now no major issues where reported by customers

6. Ramp-Up Status (3) Productive Customers in the Americas Region…
American Chemical Society
Goodyear Tire & Rubber Company
IBM Corporation
John Muir / Mt. Diablo Health System
Metro-Goldwyn-Mayer Inc.
Vet Pharm Inc.

7. Ramp-Up Status (4) Start Releases… 3.1I New 6% 4.0B 13% 13% 4.5B 4.6C
22%
35%
4.6B
11%

8. Ramp-Up Status (5) Industry Solutions Planned for use…
SAP R/3 Enterprise Financial Services is planned for use in 7 customer projects
SAP R/3 Enterprise Retail is planned for use in 6 customer projects
SAP R/3 Enterprise Global Trade is planned for use in 6 customer projects
SAP R/3 Enterprise Public Services is planned for use in 32 customer projects

9. First US Productive SAP R/3 Enterprise Customer
John Muir/Mt. Diablo Health System is a premier healthcare provider with two acute care hospitals consisting of over 600 beds and numerous ancillary units servicing Contra Costa and Solona County California. The hospitals are recognized as preeminent centers for cardiac care, cancer care, high- and low-risk obstetrics, neurosciences and orthopedics. They are the first live customer in the United States on R/3 Enterprise.

10. First US Productive SAP R/3 Enterprise Customer (2)
Project Scope
HR System upgrade from 4.0B
Improvement of specific areas of functionality:
Personnel Administration
Organizational Management
Recruitment
Benefits
Time Recording
Time Evaluation
Payroll
Implementation of Concurrent Employment (go-live Mar 03)

11. First US Productive SAP R/3 Enterprise Customer (3)
Project Staffing
EPI-USE America, Inc.
SAP America, Inc.
Project Schedule
Start: 22nd of July 2002 (Technology)
Start: 29th of August 2002 (Application)
Go-live: 24th of November 2002
1st Payroll: 4th of December 2002
Resources Needed for Upgrade Project
EPI-USE Consulting: 1 Basis, 1 part-time ABAP
EPI-USE Consulting: 3 HR Application, 1 part time
SAP Consulting: ~ 5 weeks (Benefits consulting)

12. Maintenance for SAP R/3 Standard Maintenance Standard Maintenance
Enter-
prise (Core 4.70)
Ramp-up
Standard Maintenance
Standard Maintenance
Standard Maintenance
Standard Maintenance
Extension of
Strd. Maint. (no extra fee)
Extension of
Standard Maint.
(1 year,
no extra fee)
4.6C
Ext.
4.6B
Standard Maintenance
Add.
ext.
Extended
Maint.
(+ 2 % add. fee)
Standard Maintenance
Extension of
Standard Maint. (no extra fee)
Add.
ext.
Extended
Maint.
(+ 2 % add. fee)
4.5B
Standard Maintenance
Extension of
Standard Maintenance (no extra fee)
Add.
ext.
Extended
Maint.
(+ 2 % add. fee)
4.0B
Standard Maintenance
Extension of
Standard Maintenance (no extra fee)
Add.
ext.
Extended
Maint.
(+ 2 % add. fee)
3.1I
4 months
May
Jun
May
Dec
Jun
Jun
Oct
Jun
Mar
Aug
Dec
Jun
Dec
Mar
Mar
1998
1999
2000
2001
2002
2003
2004
2005
2006
Extension of Standard Maintenance (no extra fee)
Additional extension of
Maintenance (no extra fee)
Extended Maintenance
(+ 2 % additional fee)

13. Maintenance for SAP R/3 Summary
Maintenance for 3.1I, 4.0B, 4.5B and 4.6B extended for four months (until December 31, 2003) with no extra fee
Extension of the maintenance for 3.1I, 4.0B, 4.5B and 4.6B thru December 31, 2004 for an additional 2% fee
Maintenance for 4.6C extended for one year (until March 31, 2006) with no extra fee

14. Public Sector Migration to SAP R/3 Enterprise
HR PS 4.61B
HR PS 4.62x
R/3
Enterprise
EA-PS 1.10
4.6B Core FM
4.6C Core FM
IS-PS 4.61B
IS-PS 4.62x

15. Public Sector Migration to SAP R/3 Enterprise (2)
Migration Summary
HR PS (4.62) is part of the SAP R/3 Enterprise Core
Funds Management (4.6C) moved from core to EA-PS
In releases 4.6C and before, Funds Management was located in core in Financial Accounting
In Enterprise, Funds Management is located as a separate component in Public Sector Management
IS-PS (4.62) functionality moved to EA-PS
R/3
Enterprise
EA-PS 1.10

16. Funds Management located in Financial Accounting
SAP R/3 Core 4.6C & Before
Click to add text
Funds Management located in Financial Accounting

17. Funds Management not Available
SAP R/3 Enterprise Core
Click to add text
Funds Management not Available

18. Funds Management located in Public Sector Management
SAP R/3 Enterprise & EA-PS 1.10
Click to add text
Funds Management located in Public Sector Management

19. Release Strategy SAP R/3 Enterprise Extension Set 1.10
Maintenance
SAP R/3 Enterprise Extension Set 2.00
SAP Web AS 6.30 SP
Maintenance SP
SAP R/3 Enterprise Extension Set 3.00
Maintenance
SAP Web AS 6.40
SAP R/3 Enterprise Extension Set 1.10
Maintenance
SAP R/3 Enterprise Core (4.7)
Maintenance
SAP Web AS 6.20

20. SAP R/3 Enterprise Release Cycle
Key Facts
- SAP R/3 Enterprise Extension Sets (SAP R/3 Enterprise Extensions + R/3 Add-On) are released annually
- SAP R/3 Enterprise Extension Set 2.00 is planned for release in Q3/2003
- Maintenance for each component through support packages
- R/3 Enterprise will be available to all SAP R/3 customers as part of normal maintenance

21. Rollout Workshops
Workshop: Funds Management: Processing, Organization & Configuration for the Public Sector (4.7) (IPS910)
Workshop: Public Sector Delta/Data Migration (4.7) (WUS930)
Workshop: Public Services Academy (4.7) (TPSU10)
Workshop: Federal Processing & Configuration (4.6) (WUSFED)
Workshop: HR Public Sector Functionality (4.7) (WUSHPS)

22. Rollout Workshops (2) Workshop: Budget Control System (4.7) (WNAPSB)
Grants Management (Grantee Overview)
Dates & Location: tbd.
Workshop: Public Sector Collection & Disbursement (IPS510)
Workshop: IS-PS US Fund Accounting Workshop (WUS920)
For registration information, please contact (Curriculum
Manager/Public Services)

23. Sources of Informationè
R/3 Enterprise
alias: enterprise è
Upgrade Focus Group
alias: ufg è
Ramp-up Knowledge Transfer
alias: rkt è
New Release Strategy
alias: releasestrategy è
Solution Production
alias: sp è
Ramp-up in general
alias: rampup è
Online Knowledge Products
alias: okp è
Safe Guarding
alias: safeguarding

24. Position Budgeting & Control
Joe Chance, Product Manager

25. PBC Overview Finance HR mySAP Public Sector Position Budgeting
Has to keep expenditures within budget
mySAP
Public Sector
Position
Budgeting
and Control HR
Needs to fill positions to meet organizational requirements

26. Organizational Management
PBC Overview
Funds
Management
Position
Budgeting and Control
Organizational Management
Budget
Planning
Organizational
Planning
Position
Planning
FTE Position
Budget
Execution
Organizational
Administration
Position
Execution
Budget
Monitoring

27. Accounting Department
PBC Overview
Accounting Department
HR Department FM CO
...
Commitment
Processor
Personnel Cost Saving
FTE – Processor
Assignment Rules
HR-Budgeting
Rules HR
Workflow
Budget Preparation

28. Commitment Processor * ** ** * * * HR Master Data Organizational
management
Payroll
Personnel
Cost Planning
Posting
transfer
Commitment Processor * FM CO GM
...

29. Process Review: Position
Personnel Development
Create a Position
Create a Position
PBC
Master Data
Vacant
Global cost definition
Global cost definition
Personnel Cost Planning
Cost compensation Planning
Cost compensation Planning
Overall Cost Distribution
Funds Management
Available budget Check
Position Budgeting and Control
Funds Reservation

30. Process Review: Person
Recruit a Person
Personnel Administration
Master Data
Assignment to the position
Personnel Development
Payroll Simulation
Payroll
Cost Distribution
Master Data
Payroll posting
Finance Accounting
Available budget Check
Funds Management
Funds Reservation

31. Financing Requirements Financing Requirements
Person
Data Collector Variant
Person
Personel Cost Planning
Print Program
Financing Requirements
Position
Data Collector Variant
Position
Personel Cost Planning
Print Program
Financing Requirements

32. Financing Journal

33. Reduced administration effort
Benefits
Reduced administration effort
Budget amounts don’t have to be replicated between Funds Management and Position Budgeting
Delivered Configuation
PBC is delivered precustomized (minimal additional customizing is necessary)
Flexibility and open architecture
Functions can easily be changed without modifications (BAdIs)

34. Automatic Creation of Encumbrances
Benefits
Reduced data input
Does not require additional data entry
Integrated in core process
Automatic Creation of Encumbrances
Funds Management, Controlling, Grants Management
Less Training Effort
Only users who process posting need to be trained

35. Budget Control System
Joe Chance, Product Manager

36. FM account assignment / summation data oriented budget planning
Budget Control System
Budget preparation
Budget execution
Budget changes documented by entry documents
FM account assignment / summation data oriented budget planning
Active availability control
Status Management
Copy
Carry Forward
Reporting
BAPIs

37. Budget Workbench The budgeting workbench provides two main features
entry of budget modification (create a document)
management of existing FM budget documents
It supports a two steps process (park/post) with or without a workflow setting and the ability to handle drafts (hold)
The design offers
screen layout flexibility (layouts)
single entry screen for all business procedures
data selection (budget address, held & effective documents)
informative data (key figures)

38. Budget Workbench
Header area
Item area
Navigation area

39. Flexibility Simplified use
Availability Control
Flexibility
Definition of rules for deriving the “check” objects (= control objects)
Definition of consumable budget (e.g. “active” version)
Simplified use
Centralized Customizing
No implicit rules

40. AVC writes data to an availability control ledger.
An availability control ledger is a specific view on (or aggregation of) a complete budget and the assigned budget consumptions.
The user activates one or several availability control ledgers for each budget category.
AVC ledger 2
Commitment
(delivered by SAP)
AVC ledger 1
Payment
AVC ledger 4
(created by customer)
AVC ledger 3

41. Availability Control Filters
Define which values are relevant for availability control
Example: filters for budget values determine which kind of budget values define the consumable budget for postings
Budget version
Budget value type
Document state
Budget type

42. Derivation Rules
Determine where budget consumptions are compared to the consumable budget ( definition of the control object)
Are attached to each availability ledger
Are defined as Strategies or Derived
Control object
Strategy
Budget object
Post budget
Posting object
Post actuals/commitments

43. Multi Level AVC Control object 4 Control object 3 Control object 2
AVC Standard Ledger 9H
Control object 3
AVC Customer Ledger $2
Control object 2
AVC Customer Ledger $1
Strategies
Control object 1
AVC Customer Ledger C1
Payroll posting
Budget object
Post budget
Posting object
Post actuals/commitments

44. Grants Management
Joe Chance, Product Manager

45. Sponsored Program Business Process
Grants Management
Sponsored Program Business Process
Award Administration
Proposal
Plan Costs
Application
Award
Reporting
T I M E
Master Data and Budgeting
Sponsor Funding
Postings Billings
Plan Project
Reports

46. Overview Sponsor X Sponsor Y Sponsored Program A Sponsored Program B
Ext.
Fund X
Grant 1
Sponsor X
Ext.
Fund X
Class X
Grant 2
Int.
Fund 1
Sponsored
Program B
Ext.
Fund Y
Class X
Grant 3
Int.
Fund 1
Sponsor Y
Sponsored
Program C
Ext.
Fund Y
Grant 4
Class X

47. GM: Records Management

48. GM: Records Management

49. GM: Records Management

50. GM: Workflow
Electronic notification for updates of the Grant master data Lifecycle and User statuses.
Electronic approval for updating the Grant master data Lifecycle and User statuses.
Electronic approval of budget documents.
Facilitate review and approval procedures required to support the basic business processes for Grant master data and budgeting documents.
Electronically capture and document the required approvals from the responsible person(s) before recording master data updates and budget documents.
Provide date and time stamp for each step in the review and approval process for evaluate organizational efficiencies.

51. Federal Financials R/3 Enterprise with EA-PS 2.0
Leslie Stevens, Federal Civilian Industry Director
Stephen Balsam, Senior Associate for JFMIP

52. Overview
Budgetary Ledger Reporting Reimbursable Agreements BW Integration Future-Dated MM Documents Miscellaneous JFMIP Test Process

53. Budgetary Ledger
Enhanced to be compatible with new budget processor (Budget Control System—BCS) in FM Derivation tool now the engine for driving the Budgetary Ledger accounting transactions (vs. OFBL tables) Single program drives all year-end closing transactions, including budget documents and G/L postings New tool for reconciling FM balances to budgetary and proprietary account balances

54. Reporting
FACTS I and II updated for latest rules; usability enhanced IPAC functionality for sending and receiving transactions through IPAC Delivered templates for all Form & Content Financial Statements New SF-132 Enhanced SF-133 and SF-224

55. Reimbursable Agreements
SD Sales Orders with automated screening for advances and billings Automatic Budget Posting automatically posts budget transactions in BCS from relevant documents, such as Sales Orders, A/R Invoices, Collections; replaces Revenue Increasing Budget functionality

56. BW Integration
Delivered BW extractors and infocube for Ledger 95 Passes all Federal General Ledger account balances with full FACTS I and II attribute data to BW for reporting

57. Future-Dated MM Documents
Authorization controls to restrict future-dated requisitions and POs to authorized users Program for mass posting of parked requisitions and POs once funding has been received (new year has begun)

58. Miscellaneous
Can limit types of transactions a user can post to a fund based on the status of that fund (e.g., unexpired vs. expired) Effectives dates on Application of Funds and Functional Area data elements Capture of vendor/customer ALC on master record for IPAC processing Exclusion of invoice line items from Prompt Pay; entry of late reason codes on invoice entry

59. Miscellaneous
Enhanced functionality for tracking return of improper invoices to vendors, with appropriate adjustments to Prompt Pay calculations for late notification to vendor Enhancement of program for identifying and cancelling commitment and obligation documents, providing tool for cleaning up old documents and freeing up funds throughout the year

60. Miscellaneous
Enhancements to Treasury confirmation processing, including assigning nonsequential check numbers to payments and limiting the number of payments on a schedule Additional functionality for assigning whether payments are eligible for Treasury Offset Consignment stock processing now integrated with FM, including funds check on the goods transfer

61. JFMIP Qualification Test History
The CFO Council Recommended and the JFMIP Steering Committee Approved: 1. Separate Core Financial Software Qualification and Procurement Process 2. Establish a JFMIP PMO to Manage Process 3. Use Standard GSA Procurement Process CFO Council Provided Resources History – Core Requirements Updated – First Round of Testing – First Incremental Test – Core Requirements Updated – Second Round of Testing

62. The Software Qualification Process
Key Inputs and Outputs
The steps are basic.
Establish the policy for testing (OMB, FAR, and JFMIP)
Update the requirements
Build the scripts test the scripts that test the requirements (along with all the set up data
Make sure its right
administer the test.

63. Changes from Test
Clarified/Expanded Core Requirements Expand test to test 100% of Core Requirements Expand test to more fully test Core Requirements Add test steps to process Treasury payment files Test is much more comprehensive

64. Future Test Changes
Review 2003 Test Process, Determine Improvements Needed Update Core Requirements in FY Develop New Test? Options: 1. Completely develop new test. 2. Update current test, add extra accounting periods for new/revised requirements. 3. Incremental test for new/revised requirements, less frequent “full tests”.

65. JFMIP Goal
Keep Software Offerings Aligned With Government Requirements. Work with vendors and agencies to provide software that better meets agency needs.

66. Procurement
Matthew Dixon, Director of NA PM/RIG Patrick Thiele, Product Manager

67. Current Situation
Commercial Procurement Process Flow Example: Requisition to Invoice
Purchase Requisition
Majority of process and
format of transactions are
controlled by the Enterprise.
FM-Integration
release
RFQ / Offer
Invoice
receipt
Purchase Order
Goods receipt

68. What is Unique About Government Procurement Process? US Example
Purchase Requisition
PIIN / SPIIN
CLIN / SubCLIN
LOA
Public Procurement Process
Requirement Definition
Structured process, referral process, complex
Sourcing
Budget Check / Approval
Budget officer approval, annual appropriations
Workload – emphasis on automated
DFAS
Governmental procurement
practices driven by external
legislative and regulatory
requirements. Highly collaborative
processes dependent on
Inter-Enterprise relationships.
RFQ / Offer
Invoice receipt
Structured Bid Opening
Prompt Payment
Fed Biz Ops
Amendments
Receipt vs. Acceptance
Source Acceptance
Socio-economic policies
preferential programs
Goods receipt
Vendor eligibility
Purchase Order/ Award
FPDS
FAMIS
Obligation
Incremental funding
FAR Clauses
Content Management Capability
Modifications

69. Supplier Relationship Management Professional Purchasing
Proposed Solution
Government SRM
Supplier Relationship Management
Supplier Qualification
Document Builder
Design Collaboration
FAR Clause Management
Solicitation and RFQ
FAR Document Generation
Contract File Management
Operational Sourcing
Knowledge Base
Content & Catalog Management
Contract Modifications
Evaluation and Award
Government Reporting
SAP R\3 Enterprise
Materials Mgmt
Funds Mgmt
Financials
Manual & Complex
Processing
Automated Processing
High Volume Transactions
Contract Admin/Mgmt
Professional Purchasing
Type of users / Complex Requirements & Regulations

70. Proposed Solution (Q4/2003) – SDP DLA
Shipment 1—Phase 1

71. Procurement Functionality – Shipment 1
Automated Sourcing
Automated Delivery Order Process
Configurable Sourcing Logic
Procurement Document Numbering (Support of PIIN / SPIIN)
PIIN: Procurement Instrument Identification Number (US)
SPIIN: Supplementary Procurement Instrument Identification Number
Contract Enhancements
Versioning (Modifications and Amendments)
Workload Assignment
Master Data Requirements (NSN)

72. Procurement Functionality – Shipment 2
Solicitation Posting
Bidding Engine and Bid Evaluation
Complex Document Generation (Document Builder)
Complex contract management. Generation of contract conditions following Federal and customer specific rules
Uniform Contract Formats
Procurement Regulation Content Management
Federal Mandated Reporting
Records Management Integration – Document assignment
Integration into SRM
Vendor Registration (CCR)

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Session Code: 3107