1. University of Tennessee Finance Business Blueprint1

2. Agenda Business Blueprint Executive Summary Goal of Business Blueprint
Tools Used
Enterprise Structure
Module Overview
Business Fit
Issues / Gaps
Change Management / Training Concerns
Authorizations

3. Business Blueprint Analysis Goals
Determine UT’s business process requirements
Achieve a common understanding of how UT intends to run its business within the framework of SAP R/3
Deliver a record of results gathered
Move into the next phase with enough information to complete baseline configuration

4. Business Blueprint Analysis Tools
Business Process Questions (by process)
Standard questions regarding UT’s organizational structure, processes and business needs
Detailed Workshops
Meetings with key users to discuss business processes and business needs
Customer Input Templates
high level summary of Processes
Business Process Transaction
Business Process Master List (BPML)

5. Business Blueprint Analysis Activities
Business Blueprint Workshops
Detail Requirement Workshops
Preparation of Business Blueprint Deliverables
Creation and review of all Q&A questionnaire
Creation and review of CI Templates
Creation and review of BPMLs
Creation and review of RICES
Update issue log (which includes the major gaps).

6. Financial Accounting Enterprise Structure – General Ledger

7. Financial Accounting Enterprise Structure - Controlling

8. Financial Accounting Enterprise Structure – Project Systems

9. Financial Accounting Enterprise Structure – Procurement

10. General Ledger
Chart of Accounts includes general ledger accounts, the equivalent of object codes (expenditures, revenues, assets, liabilities, and fund balances)
Posting of journal entries to the General Ledger (direct and through automatic account assignment from other modules)
Direct postings – journal entry (JV, TV, etc.)
Automatic account assignments – payroll postings

11. Special Purpose Ledger
Balance Sheet and Revenue and Expenditure Reporting by Fund
Automatic cash offset posting
Internal reporting by fund
Balance Sheet and Revenue and Expenditure Reporting by Fund Group and Budget entity
For monthly Treasurer’s Report
For external financial statements

12. Asset Management
Supports tracking and management of fixed assets (equipment, buildings and land)
Leased and owned equipment
Sensitive item tracking
Integration with MM to benefit from automatic capitalization at time of goods/invoice receipt
UT will have new functionality to meet GASB requirements to depreciate their assets July 2001

13. Cash Management
Cash management manages UT’s short term cash flow and Bank Ledger accounting
Evaluate UT cash position
Lockbox cash receipts
Bank statement input and bank reconciliation
Deposit handling and Cashed Check reconciliation
Monitor cash inflows and outflows to ensure on optimum amount of liquidity to meet required payments

14. Controlling Provides collection of costs for unrestricted accounts
Cost Centers – UT E & I accounts
Profit Centers - UT departments
Cost/Revenue Elements – expenditure and revenue codes
Departmental Planning for cost centers – plan vs actual analysis

15. Funds Management
Provides monitoring and control of budgets for both state and local appropriations as well as sponsored programs
Commitment items – UT object codes
Funds centers – UT organizational units
Funds – UT accounts
Budgeting at the fund level
Funds availability control at the fund level

16. Project Systems
Project accounting (revenue and expenses) for UT restricted funds
Planning (dates, costs at the cost element level)
Overhead calculation (F&A)
Integration with FM (wbs element link to funds), AM (plant funds will require AuC’s) and SD (sponsor billing)

17. Accounts Payable
Single vendor master database ownership by A/P dept – purchasing view updated by purchasing dept
Invoice processing
Processing of purchase order invoices via Logistics Invoice Verification (LIV)
On-line 3 way matching of invoice/PO/goods receipt
Processing of direct vouchers without purchase order
Automatic and manual payment process
Manages payments based on frequency of payment runs & payment terms specified in the vendor master record or invoice
Integration with Travel Management

18. Sales and Distribution
Supports billing of sponsor reimbursable funds
Cost reimbursable (resource related billing)
Schedule billing (example $15,000 each month)
Item billing (example trial testing)
Letter of credit (draw down)
Retainage

19. Accounts Receivable
Single customer master database of sponsored projects shared with Sales and Distribution
Invoice processing for sponsored projects
Integration with Sales and Distribution billing
Supports accounting for manual billing
Application of incoming payments for sponsored projects
Supports dunning for sponsored projects

20. Travel Management Employee and Guest Travel Travel Authorizations
Travel Advances
Entry and Approval of Trip Facts
Travel Expense Accounting – posting to GL
Reimbursement through Accounts Payable
Incorporates University fiscal policy

21. Purchasing Requisitions
Electronic transmission of document to purchasing (eliminates paper document)
Electronic approval process
Ability of department to review existing university contracts on-line in determining requisition source
Assignment of asset at point of requisition

22. Purchasing Source Lists
Identify and suggest potential sources based on contracts
Identify potential sources for bid lists
Ability to identify sources based on info records and flexible search parameters
Information contained in central data base accessible to all campus purchasing departments

23. Purchasing Request for Quotation
Generation of bidder list based on information records maintained in SAP such as NIGP codes, recent purchases, etc.
Flexibility in evaluation of quotes received - line item vs totals
Departments can evaluate on-line vs. sending hard copy for review

24. Purchasing Purchase Orders
Identify and suggest potential sources based on contracts
Identify potential sources for bid lists
Ability to identify sources based on info records and flexible search parameters
Information contained in central data base accessible to all campus purchasing departments

25. Purchasing Contracts Available for review and maintenance on-line
Ability to release order directly against contract without requisition
Better accountability of funds spent against contract
Flexible agreement types (i.e. outline, blanket, etc.)
Ability to review all campus contracts across UT

26. Purchasing Matrix Volume/Value Annual activity Doc. Type /Method Req.
Request for Quotation ($2,000><10,000) Optional
>$10,000 Required
Purchase Orders
Funds Avail. Checking
Goods Receipt
A/P-or Department
Low/Low
$3M
P-Card
N/A
Accts. Payable
High/Low or High
Outline-Value (WK)
Release Orders (NB)
Yes
Depts.
High/Low
Note
Blanket
(FO)
Low/High
(incl. Assets)
Purchase Order (NB)
Department
$100M
Non- Purchase Order
Personal Services
Purchase Order or External Order
Facilities / Construction
Library-Books
Out of Scope
Insurance-Contracts
Utilities
T-Club
Note

27. Financial Accounting Business Fit
In Scope
Financial Accounting
General Ledger
Special Purpose Ledger
Asset Management
Cash Management
Controlling
Funds Management
Project Systems
Accounts Payable
Materials Management
Purchasing
Sales and Distribution
Billing for sponsored projects
Accounts Receivable
A/R for sponsored projects
Travel Management
Travel Expenses

28. Financial Accounting Business Fit
Out of Scope
Inventory Management
Real Estate Management (Facilities)
Investment Management
Internal Orders
PS Networks (scheduling, resources, tasks, etc)
General Accounts Receivable (only sponsored receivables in scope)
Purchasing Material Master
Purchasing B-to-B Functionality (in RFP)
Archiving

29. Financial Accounting Issues
Import of Procurement card transactions into R/3 (Issue 8 – functionality deficit)
Funds availability checking (Issue 33 – process design)
Creation of external reports such as CFDA, IPEDs, etc (Issue 68 – functionality deficit)
Data-level security for Finance (Issue 74 – process design)
Support for cost sharing transactions in R/3 (Issue 106 – process design and functionality deficit)
Research and determine FAX software to acquire (Issue )
Ability to track source of recoveries of payroll costs (Issue 118, 119 – process design)
Scope of University procurement processes (Issue 133 – project scope)

30. Financial Accounting Issues (cont.)
Effort Certification processing (Issue 137, 155 – functionality deficit and process design)
Financial/technical/equipment reporting to Grant sponsors (Issue 157 – functionality deficit)
Budget transfers for mass salary changes (Issue 162 – functionality deficit)
What will be the commitment item group standard for unrestricted accounts (Issue 166 – process design)
Revenue recognition for restricted projects (Issue 178 – process design)
Accrued annual leave (Issue 186 – process design)
Salary transfer vouchers (STV) (Issue 187 – process design)

31. Financial Accounting Change Management Concerns
Terminology
Decentralization of Accounts Payable functions
Goods receipt (in some situations)
Departmental requisitioning online
Travel request and reimbursement decentralized
Budgets and planning
Departmental entry of service contracts
Departmental entry of assets for equipment
Workflow
Cash management for cash receipts

32. Financial Accounting Authorizations
There will be user authorizations at the following levels:
By fund/fund center/commitment item
By transaction