1. Identify Controlling-Close Settlements
Show Slide #1: Identify Controlling Close-Settlements
Title: Identify Controlling Close-Settlements
References:
DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation
DFAS-IN MANUAL FY, The Army Management Structure
GFEBS Performance Support Website (PSW)
Section I. Administrative Data
Academic Hours/Methods
03 hrs. / 30 min. DSL (small or large group discussion)
01 hrs. / 00 min. PE (Practical Exercise)
00 hrs. / 00 min. Test
00 hrs. / 00 min. Test Review
04 hrs. / 30 min. Total Hours
Section II. Introduction:
Method of Instruction: DSL - Discussion (large or small group)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 05 min.
Media: PowerPoint Presentation
Facilitator Material: Each primary facilitator should possess a lesson plan, evaluation sheet, scenario event list for exercises, and summary sheet containing the above noted references.
Learners Material: Learners should possess course handouts, access to all systems for exercises, summary sheet containing the above noted references portable laptop, and standard classroom supplies.
Note: "All required references and technical manuals will be provided by the local Command“
Motivator (Concrete Experience): Motivator: In Cost Management, the period end close process triggers a controlling close process where costs are settled to their corresponding cost objects based on settlement rules that were established when the cost object was created. The word “Control” implies that the entire undertaking consists of seeing that everything is to be carried out in accordance with the plan which has been adopted; in the orders which have been given, and the principles which have been laid down. Let us identify and understand the Controlling Close-Settlements Process within GFEBS. 1

2. Terminal Learning Objective
Action: Identify Controlling Close-Settlements
Conditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with:
Determine the Controlling Close Process and it’s Relation to Settlement Rules
Examine Reports Used to Facilitate Cost Variance Analysis
Show Slide #2: Terminal Learning Objective
Facilitator’s Note: Read/State the TLO
Action: Identify Controlling Close-Settlements
Conditions: You are a GFEBS data processor with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With at least 80% accuracy:
- Determine the Controlling Close Process and it’s Relation to Settlement Rules
- Examine Reports Used to Facilitate Cost Variance Analysis
Safety Requirement: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Risk Assessment Level: Low.
Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
Evaluation: You will be given a graded 25 question exam, which will cover this task. A passing score on the exam is 80%.
Instructional Lead-In: Throughout the Cost Course you have learned how effective our cost procedure are, when all procedure are in sequence. In Cost Management the Controlling Close-Process and Settlements move costs from Senders to Receivers based on criteria established when the cost objects were created. Again the word “Control” implies that the entire undertaking consists of seeing that everything is to be carried out in accordance with the plan which has been adopted 2

3. Key Terms Assessment * Distribution *
Actual Price Calculation in Cost Center Accounting *
Indirect Activity Allocation *
Settlement *
Overhead Calculation
Statistical Key Figure (SKFs) *
Template Allocation *
Overhead *
Show Slide #3: Key Terms
Section III. Presentation.
Learning Step / Activity 1. Determine the Controlling Close Process and it’s Relation to Settlement Rules
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 50 min.
Media: PowerPoint Presentation, Handout
NOTE: Learners should refer to any summary sheets and/or notes during this lesson.
Key Terms associated with Controlling Close-Settlements:
Actual price calculation in Cost Center Accounting: A GFEBS Period Closing function used to calculate actual rates based on actual costs and actual activities during a specified period.  
Assessment: A type of value based cost allocation that provides summary level detail of primary and secondary costs.
Direct Activity Allocation: An allocation method where activity quantities are known and allocated based on a rate defined for the activity type. (Quantity Based)
Distribution: A type of value based cost allocation that provides line item detail of primary costs.
Indirect Activity Allocation: An allocation method where Activity quantities are not known. But they are determined by the system based on receiving tracing factors, weighting factors, or fixed quantities. Once the quantity is entered, allocation between sender and receivers takes place. (Quantity Based)
Overhead: The overhead rate determines the extent the percentage-based or quantity-based overhead rate is applied to direct costs. It also specifies under which conditions (dependencies) the overhead rate is applied.
Overhead Calculation: Overhead calculation is a cost accounting method that is similar to the cost assessment method (standard and actual costing using full costs). Costs are not split into fixed and proportional costs. The system calculates wage costs using the fixed hourly rates determined in cost center planning. This is to evaluate the activity quantity structure of the work plan. The SAP system then applies remaining overhead costs to cost collectors or products, using overhead calculation.
Settlement: Settlements move costs from Internal Orders to other objects (e.g., Cost Centers or WBS Elements) based on specific settlement rules.
Statistical Key Figure (SKFs): A Statistical Key Figure is a cost object that can be used as the basis for internal allocations, such as Distributions and Assessments. It represents the amounts or quantities, such as the number of employees, telephones, or computers in a particular department, or the number of square feet in a building.
Target = Actual Allocation: A form of indirect activity allocation, used for cost centers and business processes. In this method, actual activity quantities to be allocated are not entered directly. GFEBS calculates this by using the plan activity inputs of the receivers. It also uses the operating rates of the cost centers receiving the activity type. Because Target = Actual Allocation is intended only for assigning actual values, activities to be allocated with this method must be assigned different activity type categories for planning and actual postings.
Template Allocation: An allocation method for cost centers, activity types, and business processes that uses a template with weighting factors such as rates and percentages. (Quantity Based)
Variance: The difference between planned vs. actual costs and/or outputs.
Direct Activity Allocation *
Variance *
Target = Actual Allocation * 3

4. Sample Process Flow Chart: Cost Management
Review FM Function Sample Process Flow Chart: Cost Management
Chart located in Student Documents
Show Slide #4: Sample Process Flow Chart: Cost Management
Facilitator’s Note: Review FM Functions Sample Process Flow Chart: Cost Management. Chart can be found in the Student Documents. 4

5. Sample Process Flow Chart: Cost Management (Cont.)
Performing Systems
Review FM Function Sample Process Flow Chart: Cost Management (Performing Systems)
Chart found in Student Documents
Show Slide #5: Sample Process Flow Chart: Cost Management (Cont.)
Facilitator’s Note: Review FM Function Sample Process Flow Chart: Cost Management (Performing Systems). Chart can be found in Student Documents.
Systems acronyms include:
Logistics Modernization Program (LMP)
Global Combat Support System – Army (GCSS-Army) 5

6. Controlling Close Process
In Cost Management, the period end close process triggers a controlling close process.
Costs are settled to their corresponding cost objects based on settlement rules that were established when the cost object was created.
After costs are settled to their corresponding cost objects
Variances are calculated based on planned and actual costs incurred to each cost object.
Overhead and cost reports are analyzed to determine how the actual costs incurred during the period compare to the costs planned for that period.
Show Slide #6: Controlling Close Process
Facilitator’s Note: Controlling Close: In Cost Management, the period end close process triggers a controlling close process where costs are settled to their corresponding cost objects based on settlement rules that were established when the cost object was created. An example would be: when costs posted on Internal Orders are settled back to other objects. Settlements move costs from the Internal Order or WBS Elements to other objects (i.e. Cost Centers) based on specific settlement rules. Settlement rules are established for the Internal Orders or WBS Elements when these objects are created. After costs are settled to their corresponding cost objects, variances are calculated based on planned and actual costs incurred to each cost object. Overhead and cost reports are analyzed to determine how the actual costs incurred during the period compare to the costs planned for that period. 6

7. Controlling-Close Process in GFEBS
Show Slide #7: Controlling Close Process in GFEBS
Facilitator’s Note: Review VG above with the students: Overview – Controlling Close Process in GFEBS. Began from right to left: Period-End Closing – Carry out Account Settlement and Carry out Distribution/Assessment - Calculate Variance on Cost Centers/Business Processes – Calculate Actual Prices/Reevaluate Assigned Quantities and Perform Manual Postings and Corrections – Analyze Overhead Cost – Evaluate Reports, Update Cost Model and Then Sent Cost Data to External Systems. 7

8. Carry Out Account Settlement
Cost posted on Internal Orders are settled back to other objects.
Costs from an Internal Order are moved to other objects (e.g. Cost Centers or WBS Elements).
Settlements rules are defined for Internal Orders when the Internal Orders are created.
Show Slide #8: Carry out Account Settlement
Facilitator’s Note: Carry Out Account Settlement: In this activity, costs posted on Internal Orders are settled back to other objects. Settlements move costs from an Internal Order to other objects (e.g., Cost Centers or WBS Elements) based on specific settlement rules. Settlement rules are defined for Internal Orders when the Internal Orders are created. They can be used for discrete events (with a fixed duration) or they can represent recurring activities or tasks. 8

9. Carry Out Account Settlement (Cont.)
Internal Orders can be used for discrete events (with a fixed duration) or (recurring activities or tasks).
This activity will initiate the settlement of costs from the Internal Order (Sending Object).
Settlements are arranged in sequence to coordinate the movements of costs from the Internal Orders to other receivers (objects).
Show Slide #9: Carry out Account Settlement (Cont.)
Facilitator’s Note: This activity will initiate the settlement of costs from the Internal Order (as a sending object) to defined receiver object or objects based on the settlement rules established for a particular Internal Order. Settlements are arranged in sequence to coordinate the movements of costs from Internal Orders to other receivers. In some cases, Internal Orders can receive settled and assigned costs from other objects. It is necessary to coordinate the timing of movements to the Internal Orders before completing the settlement of an object to ensure that all costs are assigned to the appropriate receivers. 9

10. Distribution / Assessment
There are some costs that must be distributed from cost object where the original posting was made to another cost object.
Distribution: Is a type of cost allocation that provides line item detail or primary costs.
Assessment: Is a type of cost allocation that provides summary level detail of Primary and Secondary costs.
Overhead costs are often collected in an overhead cost collector, and then spread out across an organization’s components (Receiving Cost Centers) and outputs using predefined rules.
Show Slide #10: Distribution/Assessment:
Facilitator’s Note: Distribution/Assessment: There are some costs that must be distributed from cost object where the original posting was made to another cost object. Recall that Overhead costs are often collected in an overhead cost collector, and then spread out across an organization’s components and outputs using predefined rules. Let us look again at the definition of Distribution and Assessment:
- Distribution: A type of cost allocation that provides line item detail of primary costs.
- Assessment: A type of cost allocation that provides summary level detail of primary and secondary costs.
Distribution, assessment, and process assessment are used for cost centers and business processes where direct activity allocation is not possible because the business transactions are so varied that it is impossible or difficult to define all the activity types. 10

11. LSA #1 Check on Learning
Q1: What process triggers a controlling close process?
A1: Period-End Close
Q2: T/F: Distribution is a type of cost allocation that provides line item detail or primary costs.
A2: True
Show Slide #11: LSA #1 Check on Learning
NOTE: Read and ask the following check on learning question and facilitate discussion on answers given.
NOTE: The answer to each question will appear when you hit enter.
Q: What process triggers a controlling close process?
A: Period end close
Q: T/F: Distribution is a type of cost allocation that provides line item detail or primary costs.
A: True 11

12. LSA #1 Summary 12 Show Slide #12: LSA #1 Summary
Facilitator's Note: On the first part of the lesson, we identified Key Terms involving “Controlling Close Settlements.” We then;
- Covered over the “Sample-Flow Chart” on Cost Mgt.
- Discussed the Controlling Close Process in GFEBS.
- Touched on “Carry-Out Account” settlements.
- Spoke on Distribution and Assessments in the GFEBS arena
“Or”
NOTE: Have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer. 12

13. Variance Analysis 13 Show Slide #13: Variance Analysis:
2. Learning Step / Activity 2. Examine Reports Used to Facilitate Cost Variance Analysis
Method of Instruction: DSL - Discussion (large or small group)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 00 hr. / 50 min.
Media: PowerPoint Presentation, Handout
NOTE: Discuss the Variance Analysis example on the slide. Inform the students that we will cover this in-depth with additional examples. 13

14. Calculate Variances on Cost Center and Business Processes
Variance analysis enables manage to:
Set planned costs by Cost Center, and Business Processes for a time period.
Analyze differences between planned costs, actual costs by cost center, and business processes.
Generate better costs plans, and for formulating budget requests
Set tolerance limits for variances.
- If a variance is above the tolerance limit set, the resource manager may examine ways to increase cost efficiency.
ID potential business process improvements and to reallocate resources.
Show Slide #14: Calculate Variances on Cost Center and Business Processes:
Facilitator’s Note: Calculate Variances on Cost Center and Business Processes: Cost analysis can begin after costs have been posted, currently, most of the Army’s cost variance analysis relates to budget execution. However, GFEBS enables management to monitor variances in full cost. For example, if more military personnel than planned worked on an SSP, this variance does not appear in an IMCOM Budget Execution Report because IMCOM does not pay for the personnel they use from their own funds. Additionally, there would be no budgetary effect on IMCOM’s budget. However, in a GFEBS cost report this appears as a cost variance. Variance analysis enables mangers to:
- Set planned costs by cost center, and business processes for a time period.
- Analyze differences between planned costs, actual costs by cost center, and business processes using standard reports.
- Generate better costs plans, and for formulating budget requests.
- Set tolerance limits for variances. If a variance is above the tolerance limit set by the user, the resource manager may examine ways to increase cost efficiency. Cost variance analysis helps management increase the efficiency of business operations. Cost Variance analysis enables managers to identify potential business process improvements and to reallocate resources. 14

15. Variance Reports
To facilitate variance analysis, several reports are used:
Types of Variance Reports:
-Cost Centers: Actual/Plan/Variance
-Orders: Actual/Plan/Variance
-Actual/Target/Variance
Show Slide #15: Variance Reports
Facilitator’s Note:
Cost Centers: Actual/Plan/Variance This report shows a comparison between actual cost and planned cost.
Orders: Actual/Plan/Variance This report shows a comparison between actual orders and planned orders.
Actual/Target/Variance: This report shows a comparison between actual cost and a particular cost objective. 15

16. Variance Analysis
Is calculated at the lowest level in the cost object hierarchy.
Can be performed for individual periods or across multiple periods.
Comparing cost variances over years enables operational and resource managers to evaluate progress in identifying their root causes of variance found.
Plan Cost – Actual Cost = Variance (775, – 850, = -75, and the (% of difference)
Show Slide #16: Variance Analysis
Facilitator’s Note: Variance Analysis: Variance is calculated at the lowest level in the cost object hierarchy. Variance analysis can be performed for individual periods or across multiple periods. Comparing cost variances over years enables operational and resource managers to evaluate progress in identifying their root causes. To give an example, a manager of a Dining Hall at Fort Bragg will analyze the planned compared to actual costs including labor, materials, and food. At the end of the period, he finds a variance associated with the Food costs posted to the cost center. He is able to drill down and find the root cause of this variance. In this case, the root cause is an increase in the price of rice.
Facilitator’s Note: In 2016, we witnessed higher than normal temperatures and unprecedented drought conditions. How do you think that will affect the price of corn? How will it affect the price of Beef, Pork, Chicken – the primary food source for those livestock is corn. Will this cause for an variance to show up and adjustment have to be made)? 16

17. Calculate Actual Price and Revaluate Assigned Quantities
Several Army organizations charge other government organizations standard rates for work performed for example:
- AMC charges standard rates for Depot Maintenance work
- ATEC uses standard rates when charging customers to perform tests
Real-time and accurate cost reporting allows leadership to reformulate standard rates so that they accurately reflect the cost incurred to perform a service.
If the price of materials rises, organizations must be able to adjust their rates to reflect the increased cost they expect to incur.
These rates are adjusted at the end of each period, but organizations can change as needed.
Show Slide #17: Calculate Actual Price and Revaluate Assigned Quantities
Facilitator’s Note: Calculate Actual Prices and Revaluate Assigned Quantities: Several Army organizations charge other government organizations standard rates for work performed, for example:
AMC charges standard rates for depot maintenance work. ATEC uses standard rates when charging customers to perform tests. These rates must include all the components of the full cost incurred by these organizations when performing work for customers. Organizations can also identify indirect costs when formulating rates, for example:
ATEC includes overhead in the rates charged to customers. Real-time and accurate cost reporting allows leadership to reformulate standard rates so that they accurately reflect the cost incurred to perform a service. Using this activity, these organizations will be able to recalculate these rates as their cost structures changes. Users can separate prices into various components – i.e. overhead costs, labor, and materials. They can analyze variances between the price set for the components, and the actual cost that their organization incurred by providing this service, for example:
If the price of fuel rises, organizations must be able to adjust their rates to reflect the increased cost they expect to incur. These rates are adjusted at the end of each period, but organizations can changed as needed. Another and most common example of the use of a standard rate is labor. Personnel working for a TDA organization enter their time in the civilian time tracking system, which is posted in GFEBS against the TDA organization’s cost center. The labor is associated with the appropriate TDA organization by applying the hours to a standard hourly rate. 17

18. Perform Manual Posting and Corrections
There are costs and pieces of non–financial data that are not stored in a system.
Users can enter information in GFEBS manually to capture the full costs.
- Foreign national payroll not interfacing with GFEBS will be entered manually.
- Due to incorrect postings that occurred due to errors in interface files or other user errors.
Only specific GFEBS users (defined by roles) will be able to manually enter postings and make corrections.
Show Slide #18: Perform Manual Posting and Corrections
Facilitator’s Note: Perform Manual Posting and Corrections: There are costs and pieces of non–financial data that are not stored in a system. Users can enter this information in GFEBS manually to capture the full costs. For example, foreign national payroll will be manually-entered in GFEBS. Also, incorrect postings may occur due to errors in interface files or other user errors.
(Note that only specific GFEBS users (defined by Roles) will be able to manually enter postings and make corrections). 18

19. Cost Reporting Benefits
Provides Resource and Operational manager’s greater visibility of resource usage
Reduce the need for user defined data queries
Provide managers with cost performance benchmarks
Costs are analyzed by:
Organizational Component
Business Process
The multiple uses of Reports:
Drive management decisions
Enable management to track costs at an operational level
Generate data for high-level reports
Two main types of reports:
Cost by Reports (SSP, installation, IMCOM Regions, Brigade, and schools)
Unit Cost Reports (Meals served, Repairs completed, Soldiers processed and supplies issued)
Show Slide #19: Cost Reporting Benefits
Facilitator’s Note: Cost reports provide resource and operational manager’s greater visibility of resource usage. GFEBS cost reports reduce the need for user defined data queries, and provide managers with cost performance benchmarks. Resource and operational managers use cost reports to report output and performance metrics. Managers can answer questions such as “How much will it cost to sustain a Stryker Brigade,” or “How will the addition of soldiers affect IMCOM’s barracks costs?” Cost Reporting ensures that decisions makers consider all relevant information. Full Cost Reporting enables meaningful variance analysis. Costs are analyzed by:
- Organizational Component
- Business Process
Requirements of organizational components and business processes vary; cost reports’ level of detail depends on the needs of the organization. For example, HQDA may run summary-level reports, while Resource Managers may use detailed level reports. Reports have multiple uses, and they:
- Drive management decisions
- Enable management to track costs at an operational level
- Generate data for high-level reports, such as the Government Performance Report Act and the President's Management Agenda (GPRA/PMA) Report. The two main types of reports are “Cost By Reports” and “Unit Cost” Reports:
- Cost by Reports: Service Support Program (SSP), Installation, IMCOM Region, Brigade, School.
- Unit Cost Reports: Meals served, Repairs completed, Soldiers processed, and Supplies issued.
NOTE: Inform the students that (The Cost by Report displays cost information by cost object and associated partner objects while the Unit Cost Report displays each unit of cost valuated by a Key Statistical Figure posted to a cost object. In addition to direct costs, users analyze costs that cannot be traced directly to an output. Users can determine how overhead costs are allocated to units and business processes. 19

20. Update the Cost Model
The Cost Model (CM) is refined and updated to reflect an organization’s business requirements.
As the Army’s organizational structure and mission evolve:
-Cost model is modified
-New reporting requirements may arise
-New master data elements may need to be added or changed
-Cost allocation rules may need to be revised
-Cost plans will be updated and improved
The (CM) is a document maintained by DASA-CE.
Show Slide #20: Update the Cost Model
Facilitator’s Note: Update the Cost Model: The cost model is refined and updated to reflect an organization’s business requirements. As the Army’s organizational structure, and mission evolve:
- The cost model is modified
- New reporting requirements may arise due to demands from external parties such as Congress, or from internal managements.
- New master data elements may need to be added or changed.
- Cost allocation rules may need to be revised
- Cost plans will be undated, and improved.
NOTE: The Cost Model is a document maintained by DASA-CE. 20

21. Sending Cost Data to External Systems
GFEBS sends certain Cost Data to external systems to facilitate cost analysis.
Example: GFEBS sends cost data solely to The Medical Expense and Performance Reporting System (MEPRS) EASi system.
Show Slide #21: Sending Cost Data to External Systems
Facilitator’s Note: Send Cost Data to External Systems: To facilitate cost analysis GFEBS sends certain Cost Data to external systems. For example, GFEBS sends cost data solely to The Medical Expense and Performance Reporting System (MEPRS) EASi system. 21

22. Conduct Practical Exercises
Show Slide #22: Conduct Practical Exercises
Practical Exercise / Define Obligation Management (01 Hour Apply)
Method of Instruction: PE - Practical Exercise (Hands-On/Written)
Facilitator to Learner Ratio: 1:25
Time of Instruction: 01 hrs. / 00 min.
Media: Printed Reference Material, Practical Exercise, Handout
General Information: (Introduction / Objective) this practical exercise simulates a scenario that measures your ability to properly generate multiple reports, such as the Cost Centers: Actual/Plan/Variance Report, the Orders: Actual/Plan/Variance Report, the Generate “Cost By” Report, and finally, the Unit Cost Report.
Special Instructions: N/A
As it will be so. 22 22

23. Walkthrough: Cost Centers: Actual/Plan/Variance Report
T-Code: S_ALR_
Conduct Practical Exercise 8.5
Use this procedure to generate a Cost Centers Actual/Plan/Variance report.
This report can be generated by entering a cost center, a range of cost centers,
cost center group, a cost element, range of cost elements, or cost element
groups. A Cost Center Actual/Plan/Variance report is a standard ECC report that
displays a side-by-side view of the actual and planned costs and their
associated cost variance for a Particular cost center as well as a drill-down view
of the originating transactions. Variance can be defined as the difference
between planned and actual costs and/or Outputs.
Show Slide #23: Walkthrough: Cost Centers: Actual/Plan/Variance Report
Facilitator’s Note: Students will conduct Practical Exercise 8.5 T-Code S_ALR_ Use this procedure to generate a Cost Centers Actual/Plan/Variance report. This report can be generated by entering a cost center, a range of cost centers, cost center group, a cost element, range of cost elements, or cost element groups. A Cost Center Actual/Plan/Variance report is a standard ECC report that displays a side-by-side view of the actual and planned costs and their associated cost variance for a Particular cost center as well as a drill-down view of the originating transactions. Variance can be defined as the difference between planned and actual costs and/or Outputs. 23

24. Walkthrough: Orders: Actual/Plan/Variance Report
T-Code: S_ALR_
Conduct Practical Exercise 8.6
Use this procedure to generate Orders: Actual/Plan/Variance report.
This report can be Generated by entering an order, range of orders, order group,
cost element, range of cost elements, or cost element group. The Orders:
Actual/Plan/Variance report is a standard ECC report that displays a side-by-
side view of the actual and planned costs and their associated cost variance for
a particular Internal Order as well as a drill-down view of the originating
transactions. A variance can be defined as the difference between planned and
actual costs and/or Outputs.
Show Slide #24: Walkthrough: Orders: Actual/Plan/Variance Report T-Code _ALR_
Facilitator’s Note: Students will conduct Practical Exercise 8.6 T-Code: S_ALR_ Use this procedure to generate Orders: Actual/Plan/Variance report. This report can be Generated by entering an order, range of orders, order group, cost element, range of cost elements, or cost element group. The Orders: Actual/Plan/Variance report is a standard ECC report that displays a side-by-side view of the actual and planned costs and their associated cost variance for a particular Internal Order as well as a drill-down view of the originating transactions. A variance can be defined as the difference between planned and actual costs and/or Outputs. 24

25. Walkthrough: Generate “Cost By” Report
T-Code: There is not a transaction code for this transaction – instead the report is pulled out of BI
Conduct Practical Exercise 8.7
Use Walkthrough User Procedure 5.1
Show Slide #25: Walkthrough: Generate “Cost By” Report
Facilitator’s Note: There is not a T-Code for this Transaction. Facilitator will pull the report from BI. Use Walkthrough User Procedure 5.1 25

26. Walkthrough: Generate “Unit Cost” Report
T-Code: There is not a transaction code for this transaction – instead the report is pulled out of BI
Conduct Practical Exercise 8.8
Use Walkthrough User Procedure 5.2
Show Slide #26: Walkthrough: Generate “Unit Cost” Report
Facilitator's Note: T-Code: There is not a transaction code for this transaction – instead the report is pulled out of BI. Conduct Practical Exercise 8.8. Again, Use Walkthrough User Procedure 5.2. Once again, leverage the information across the student in the classroom that may be used. When the information is leveraged, more students will benefit from the information. 26

27. LSA #2 Check on Learning
Q1: What happens to Internal Orders during the Controlling Close? A1: Costs posted on Internal Orders are settled back to other objects in GFEBS. Q2: What are Internal Orders used for in GFEBS? A2: Used to fund short-term reoccurring events. Q3: What is the Manual Direct Activity Allocation transaction used for? A3: To post or repost direct activities from one cost center to another
Show Slide #27: LSA #2 Check on Learning
NOTE: Read and ask the following check on learning question and facilitate discussion on answers given.
NOTE: The answer to each question will appear when you hit enter.
Q: What happens to Internal Orders during the Controlling Close?
A: Costs posted on Internal Orders are settled back to other
objects in GFEBS.
Q: What are Internal Orders used for in GFEBS?
A: Used to fund short-term reoccurring events.
Q: What is the Manual Direct Activity Allocation transaction used for?
A: To post or repost direct activities from one cost center to another
NOTE: Additional questions to ask the students;
Q: What must have occurred in GFEBS before a Work Order can be settled to its
corresponding cost object?
A: A Maintenance Work Order must have been created and a cost must have been posted to the order.
Q: What happens to the ‘Sender’ and ‘Receiver’ cost centers (Funds) in a Manual Direct Activity Allocation?
A: The ‘Sender’ cost center is credited with this amount while the ‘Receiver’ cost center is charged this amount.
Q: Where and how often is cost analysis performed?
A: At every level of the Army – and it is a continuous process that is performed on a daily basis.
Q: Internal Orders can be used for discrete events (with a fixed duration) or for.
A: Recurring activities or tasks
Q: What Army Office maintains the Cost Model (CM) in GFEBS?
A: DASA-CE
Q: What is the long text for the acronym “DASA-CE”?
A: Deputy Assistant Secretary of the Army - Cost and Economics 27

28. LSA #2 Summary 28 Show Slide #28: LSA #2 Summary
Facilitator's Note: On the final part of this lesson, we discussed key terms dealing with identifying Controlling Close Settlements. We also Discussed;
- Distribution and Assessment
- Variances Analysis
- How to Calculate Variances on Cost Center and Business Processes
- Calculating Actual Price and Revaluating Assigned Quantities
- Discussed Performing Manual Posting and Corrections
- Updating the Cost Model
- We defined and discussed Template Allocation
- We defined and discussed Accounts Settlement
- We defined and discussed Types of Variance Reports
- Finally, we reviewed the Controlling Close Process
Facilitator’s Note:
We performed the following Walkthrough Practical Exercises:
- S_ALR_ Cost Center – Actual/Plan/Variance Report
- S_ALR_ Order – Actual/Plan/Variance Report
We Pulled from BI and discussed various parts of the following reports;
- Cost by Report
- Unit Cost by Report
“Or”
NOTE: Have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer. 28

29. Questions? 29 Show Slide #29: Questions
Facilitator’s Note: Field any questions from the students to ensure the standards of the lesson are understood and have been met. 29

30. TLO Summary Action: Identify Controlling Close-Settlements
Conditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with:
Determine the Controlling Close Process and it’s Relation to Settlement Rules
Examine Reports Used to Facilitate Cost Variance Analysis
Show Slide #30: TLO Summary
NOTE: Reiterate TLO
Action: Identify Controlling Close-Settlements
Conditions: You are a GFEBS data processor with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With at least 80% accuracy:
- Determine the Controlling Close Process and it’s Relation to Settlement Rules
- Examine Reports Used to Facilitate Cost Variance Analysis 2