1. Enterprise Impact on Funds Management with BCS
Session
# 3101
John Bottriell and Patricia Coughlin Government of Canada

2. Background
IFMS Program Office is the centre for Research & Development for the Government of Canada implementations of SAP: (FI, CO, FM, MM, SD, PS, PM)
15 Installations
37,000 Users
12 Installations on version ISPS
1 Installation on version 4.6c + ISPS
2 Installations on version 4.6c Non ISPS

3. Plan: Implement Enterprise 4.7 EA-PS 2.0
FM ISPS Experience
Implemented SAP on version 3.0F ISPS 2
G of C has worked with various ISPS versions:
ISPS 2 to 6A
ISPS 4.02A C
Enterprise 4.7 EA-PS 1.1 (R&D only)
Plan: Implement Enterprise 4.7 EA-PS 2.0

4. TOPICS: Impact on FM with BCS
Comparison of Former Budgeting System (FBS) and Budget Control System
Budgeting
Budget Structure
Availability Control
FM Redesign in Government of Canada with our preliminary findings
BCS Overall Assessment

5. FBS vs BCS Budgeting
Master Data
Budget Processes
BCS Budget Changes
Budgeting Authorizations

6. Impacts FBS budget structure and reporting
FBS vs BCS FM Master Data
FBS
BCS
N/A
Fund
Funds Centre
Commitment Item
Functional Area
Funded Program
Grant (Grants Management)
Funds Application
Fund
Funds Centre
Commitment Item
Functional Area
N/A
Not unique to the FMA
Exists only in BCS
Impacts FBS budget structure and reporting

7. FBS vs BCS Budgeting Processes
Enter or Park:
Original
Supplement
Return
Transfer
Budgeting Workbench
(FMBB) includes all:
Prep
Enter
Return
Supplement
Transfer
Carry Over
Distribute or
Change in Hierarchy:
Original
Supplement
Return
No Hierarchies
No longer use the Distribute and Distributable or the Hierarchy for budget entry – Distributed values are not stored
Use Enjoy transaction concept within the Budget Workbench
One tcode with multiple processes – process carried as a data element on the ledger – accessible data for reporting
Note: This change impacts how your authorizations are defined.

8. BCS Budget Changes Mandatory for Budgeting: Budget Type
Budget Statuses - Budget Life Cycle
Document Types and Number Ranges:
Entry document
Budget Change document
Budget document family number
Configurable:
Layouts for budgeting transactions
Consistency checks for budget documents and budget objects
Budget Types:
Budget type is required for budgeting and assigned to Budget Process in configuration
Budget Statuses:
Must be defined (not optional) in order to post budgeting transactions using the Budgeting Workbench. Represent the phases of the budgeting life cycle.
Define the permitted budgeting processes for each phase within the budgeting life cycle. Once assigned by FM Area, fiscal year, and budget version, define the current active phase within the budgeting life cycle.
Document Types:
Entry document number range, defined by FM area and fiscal year with a unique interval may be defined per document type and document types may share number ranges
Layouts are configured to determine, default distribution key for period values, whether FM account assignment elements appear in document header or line item, whether budget type appears in document header or line item
Layouts are not linked to document type
Consistency Checks - customer defined through configuration for budget document and/or budget objects

9. BCS Budget Workbench

10. BCS Budgeting Authorizations
Budgeting Account Assignment
Budgeting Document Type
Budgeting Key Figure
Budgeting Status
Budget Version
Budgeting Account Assignment
Defines who is authorized to use FM account assignments in budgeting
Budgeting Document Type
Defines who is authorized to use the various document types in budgeting
Budgeting Key Figure
Defines who is authorized to use the various key figures in budgeting
Budgeting Status
Defines who is authorized to enter/change the budget for various budget processes/budget types
Budget Version
Defines who is authorized to use the various budget versions and budget categories

11. FBS vs BCS Budget Structure
BCS Master Data
Role for the Funds Centre Hierarchy
Budget Profile per fund
BCS Fund Type
BCS Budget Structure
Derivations in BCS - Relationship between Objects

12. YES (top node, superior node)
Role of Fund Centre Hierarchy
FBS
BCS
Budget Structure (Posting Object, Budget Object)
YES NO
Availability Control Object
Budgeting
Authorizations
Configuration
Derivation strategies
N/A
YES (top node, superior node)
Reporting
To Be Determined

13. Fund Type Available for FBS and BCS FBS Budget Profile not used by BCS
Fund Master for FBS and BCS
AVC is accomplished via derivation tool
Differences are defined via Fund type
Fund Type Available for FBS and BCS
Potential uses for Fund Type in BCS:
Planned as identifier of “annual” versus “overall” funds (EA-PS version 2)
Override the standard tolerance profile for an AVC ledger by fund type (i.e. no AVC, error message instead of warning message)
Derive budget objects from posting objects differently based on fund type
Derive availability control objects from budget objects differently based on fund type
Fund type is available as a source or condition field for the following BCS derivation strategies:
Account assignment derivation for budget addresses
Account assignment derivation for BADI additional budget lines
Account assignment derivation for availability control objects
Derivation strategy for activity groups
Derivation strategy for overriding the default tolerance profile
Substitution for budget entry documents
FBS Budget Profile not used by BCS

14. FBS Budget Structure and Definition of Relationships between Objects
Assignment
(Availability
Control) Objects (Profile 500 specific)
Posting
Object
Budget
Object

15. FBS vs BCS Budget Structure
FBS budget structure served two purposes:
Validation on permitted combinations
Relationships between posting objects and budget objects and AVC objects
BCS budget structure only serves one purpose: to identify permitted validation of posting object and budget object addresses
Defines the permitted combinations of FM account assignments for posting commitments and actuals (posting addresses) and posting of budget transactions (budget addresses)
New Mass processing tools for address creation and maintenance
NO RELATIONSHIPS DEFINED IN BCS VIA BUDGET STRUCTURE
Check cannot be activated by Fund or type of Fund.

16. BCS Derivation Strategies
Biggest Difference in BCS
Relationships are not automatically determined by master data hierarchies as in FBS
Derviation strategies are used to build object relationships between Posting Objects, Budget Objects, and Availability Control Objects via derivation strategies:
Account Assignment Derivation for Budget Addresses
Account Assignment Derivation of Availability Control Objects

17. BCS Ledgers & Coding Objects:
Posting Ledger
Budget Ledger
Availability Control Ledgers
Posting Object- elements for posting/parking commitments & actuals.
Posting
Object
Fund
Funds Centre
Commitment Item
Functional Area
Funded Program
FBS
BCS
Budget Object
Budget Object – elements for posting/parking budgets
Fund
Funds Centre
Commitment Item
Functional Area
Funded Program
Optional
AVC
Object
Availability Control Object - elements for AV control
Fund
Funds Centre
Commitment Item
Functional Area
Funded Program
N/A

18. BCS Relationships between Objects
No Derivation Strategies
Model 1
AVC
Object
All 3 objects
are the same
Budget Object
Derivations define the link between posting objects and budget objects.
Default relationship is 1:1.
Default 1:1:1
Posting
Object

19. BCS Relationships between Objects
AVC
Object
Model 2
AVC Object
and Budget
Object are
the same
Derivation Strategy
Budget Object
1:2:2
Derivation Strategies in BCS:
Substitutions for Budget Entry Documents
Additional Budget Lines
Posting Addresses to Budget Addresses
Budget Addresses to Availability Control Addresses
Overriding standard tolerance profile
Derivation of value types for Activity Groups (used for tolerance profiles)
Derivations define the link between posting objects and budget objects.
Use derivation strategy to map many posting object to one budget object.
Within one strategy, one posting object may map to only one budget object.
Requirements for Fund or type of Fund must be reflected within the derivation strategy.
Multiple derivation strategies can be created.
Derivation strategy is assigned by FM Area, fiscal year, and budget version.
Posting
Object
Posting
Object

20. BCS Relationships between Objects
Derivation Strategy
Model 3
AVC
Object
1:1:2
Budget Object
Budget Object
Budget
Object and
Posting
Object are
the same
Derivations define the link between budget objects and availability control objects.
Default relationship between budget object and availability control object is 1:1.
Use derivation strategy to map many budget objects to an availability control object.
Multiple derivation strategies can be created.
Derivation strategy is assigned by AVC Ledger, FM Area, and fiscal year (as of).
Requirements for Fund or type of Fund must be reflected within the derivation strategy.
Posting
Object
Posting
Object

21. BCS Relationships between Objects
Model 4
AVC
Object
All 3 objects
are different
Derivation Strategy
1:2:3
Budget Object
Budget Object
Derivation Strategy
Important message:
This design is flat with no hierarchies.
This is what makes reorganizations greatly simplified.
Posting
Object
Posting
Object
Posting
Object
Posting
Object

22. BCS Availability Control
Consumable Budget (What’s Available) -
Consumed Amounts (What’s Used) =
Available Budget (What’s Left)
Steps to Configure BCS AVC:
Define budget types
Create AVC ledgers
Define data source for consumed amounts
Define the consumable budget
Define activity groups
Define tolerance profiles
Define the attributes for AVC:
Assign the standard tolerance profile
Override the standard tolerance profile
Determine the AVC control object
Activate AVC

23. BCS vs FBS Ledgers Actual and Budget Ledger are same
AVC Ledgers are customer configurable
Posting Ledger
9A Payment Budget
9B Commitment Budget
Budget Ledger
9F Payment Budget
9G Commitment Budget
Availability Control Ledger
9H Payment Budget
9I Commitment Budget
?? Customer defined
…..
BCS AVC Ledger: Defined by AVC Ledger, FM Area, Fiscal Year (as of), and Budget Version.
Government of Canada Example of AVC Ledgers:
The AVC Ledgers for the G of C design will be copied from the 9H payment ledger in BCS and set up as follows:
AVC Ledger 1 will use Activity Group 1 and include Earmarked Funds, Purchase Requisitions, Purchase Orders, Down Payment Requests, Down Payments, Parked Complete Invoices, Invoices, and vouchers.
AVC Ledger 2 will use Activity Group 2 and include only invoices, vouchers, down payments and down payment requests.

24. What’s Available Filters for Consumable Budget AVC Ledger 1
“Commitment Budget”
AVC Ledger 2
“Payment Budget”
AVC Filter
Filters available for:
budget types (if you do not filter on budget type, system assumes all budget types for AVC Ledger)
posted budget or posted & pre-posted (parked) budget
Government of Canada Design
Ledger 1 has Budget Type 1 as Commitment Budget
Ledger 2 has Budget Type 2 as Payment Budget
Consumable Budget
Budget Type 1 =
= Budget Type 2
Government of Canada Design

25. Filters for Consumed Amounts
What’s Used
Filters for Consumed Amounts
AVC Ledger 1
“Commitment Budget”
AVC Ledger 2
“Payment Budget”
*Exclude value types not required
Earmarked Funds
Purchase Requisitions
Purchase Orders
Down Payment Requests
Down Payments
Parked Complete Invoices
Invoices
JVs
Down Payment Requests
Down Payments
Invoices
JVs
Consumed amounts defined by Activity Groups Data source for consumed amounts are defined by AVC Ledgers for:
Commitment/Actual Data or
Budget to Budget Data
EA-PS 1.1 Issue:
BCS Consumed amount against the consumable budget is always the total of all value types in the ledger
G of C has a need to consume and control on given set of value types by ledger
SAP will provide AVC filters to define the value types to be excluded from the consumed amount by AVC ledger
SAP will provide a modification for G of C for testing
Current Status:
SAP has provided a new IMG filter configuration to exclude value types that do not consume budget – this mod will be included in future releases
Government of Canada Design

26. Available Budget With BCS Tolerance Profiles
What’s Left
Available Budget With BCS Tolerance Profiles
AVC Ledger 1
“Commitment Budget”
AVC Ledger 2
“Payment Budget”
Activity Group 1
Activity Group 2
Default
Tolerance
Profile
For each applicable activity group, the tolerance profile defines:
Tolerance limit (usage % of consumable budget) and AVC action (Information, Warning, Warning and Mail, Error)
You can override the default tolerance profile by assigning a derivation strategy Multiple tolerance profile derivation strategies can be created.
to the AVC Ledger, FM Area, and Fiscal Year (as of).
Derive an alternative Tolerance Profile based on:
FM account assignment elements (Fund, Funds Centre, Commitment Item, Functional Area, Funded Program)
Fund Type
Commitment Item Category
Others….
100%
100%
Government of Canada Example

27. FM Redesign Government of Canada
FM Redesign Goals
FM Redesign Scope
Overall Assessment

28. New Budget Control System (BCS)
Why Now?
Opportunity for Change
Accounting change +
Upgrade
New FM master data
New Budget Control System (BCS) =
FM Redesign
FM Redesign Project - Current Status: Stage 3: Impact Analysis and Feasibility Study
Define Business Requirements
Determine High Level System Concepts
Conduct Impact Analysis & Feasibility Study
Determine Conversion Strategy
Define System Blueprint
Conduct Detailed Departmental Transition Analysis
System Detailed Design (May & June)
Committee Approvals
System Construction and Testing and Roll out with Beta Department

29. FM Redesign Goals - BCS Increase Ability to re-organize
Ability to meet central agency reporting requirements through use of new FM master data
Flexibility for budgeting and control
Reduce customization where possible
Standardize FM processes across G of C
Ability to perform concurrent AVC checks
The following pertains to the Former Budgeting System within the current Government of Canada environment
Re-organization
Top issue for the departments. Most departments re-organize their FM master data structure at least once a year.
Some departments would like to increase the # of change cycles.
Impact on all funds and previous fiscal years.
Time consuming and requires overtime because must be done after working hours
Budget Structure:
Viewing and updating the budget structure by fund is a major issue for six departments.
It is time consuming to update the budget structure because all possible combinations of funds center/commitment item per fund are included.
Cannot set posting objects for revenue elements in the budget structure.
Data issues:
Discrepancies between payment and commitment budgets and effort required to fix them
The program RFFMS200 currently causes errors in the payment program
Requires to re-profile commitments for current and future years.
Regular and frequent re-constructs and re-builds are required.

30. FM Redesign Goals – Update Profile Change
BCS has provided the ability for the G of C to change update profile and GR/IR update:
Eliminate need for two budget categories related budget and posting reconciliation
To eliminate and reduce update errors
Improve consistency in reporting (CO, FM and SPL Trial balance)
Enhance SAP support potential and reduce costs through the use of a more mainstream update profile
The following pertains to the Former Budgeting System within the current Government of Canada environment
Control in FBS:
The control against the payment budget usually resides at the top of the structure.
The control for the commitment budget usually resides at the lowest levels of the structure but it may vary.
Control is not flexible enough – only 1 point of control in hierarchy
Locking control problems may occur depending at what level the controls are situated
Dual Control (FM and IO/WBS) in 6 depts.
The following pertains to the Budget Control System within the future Government of Canada design
New master data:
Provide depts some flexibility with the use of new master data to plan, budget, control and report in FM and CO.
Provide a tool for more effective management from a results perspective;
Provide departments the ability to budget and report by new elements (GWAC/business-line) within FM;

31. Scope of G of C FM Redesign
Budget Control System (BCS)
FM Master Data:
Functional Area
Funded Program
Fund & Functional Area in Controlling module
Update profile change to a non-customer specific profile (impact analysis = 102)*
FM Update - Goods Receipt and/or Invoice Receipt*
* Consult with SAP if considering these changes. They are not recommended for change!
The following pertains to the Budget Control System within the future Government of Canada design
New Master Data Design:
Government of Canada plans to:
Activate both “FA” and “Funded Program”
Option of budgeting by either FA or Funded Program with no control.
Establish relevance by budget version
For “actuals”, support derivation of Funded Program from another element (e.g. functional area)
For “budgets”, support derivation of Funded Program from another element (optional)
Create Functional Area Groups if departments are interested in seeing a similar structure in CO.

32. BCS Overall Assessment
Master Data and Hierarchies:
Limited role for FM hierarchies
Simplified reorganization process,
Improved master data with significant reporting budgeting and control potential
Budget structure for posting object validation is not feasible for G of C larger departments because of the volume of master data. SAP provides an alternative BADI
Re-Organization:
Simplified
Hierarchy Independent Configuration
There’s no check for Budget Data on a Funds Centre move
Posting validation combinations:
Existing SAP requirement for all posting combinations is not practical for larger departments within G of C
G of C requirement is for posting validation on an exception basis by Fund
Looking to use an SAP BADI as an alternative solution
SAP alternative: programming and testing BADI:FMBS_VALID_ADDRESS
FM Status Management posting validation is no longer being developed. FM Status Management is missing Functional Area. No longer recommended by SAP.

33. BCS Overall Assessment
Availability Control:
Improved flexibility for availability control since it is not tied to the organizational structure
Improved BCS availability control with customer defined ledgers allow G of C to consider the move to a main stream update profile

34. BCS Overall Assessment
BCS Derivation Strategies
Plan your design carefully
Need to identify alternate solution to minimize maintenance of Derivation Strategies
Need to develop a report to graphically display the relationships from account assignment derivations
Derivation Strategies:
The related table data values need to be maintainable in the production environment on the application side:
EA-PS 1.1 tcodes exist, not on the menu
SAP may suppress (TBD)
G of C does not have logic in coded values example: ranges
Strategies are configuration and transported but related data tables need to be maintainable in the application side of SAP not configuration.
Groups/sets logic with the derivation tool were analyzed by the G of C team and it was found to be not advisable or feasible.
Plan your design carefully: simplify the data models, posting objects to budget objects and availability control objects as per your requirements

35. BCS Overall Assessment
Budgeting:
Improved budget entry screen that is customer definable
Improved planning in FM with integration to Excel
Improved FM budget document management
Improved Consistency Checks
Improved Authorizations

36. BCS Overall Assessment
BCS Reporting:
No FM Drill Down Reporting tool with BCS
Report Painter with Report Writer (EA-PS 2.0)
BW is SAP BCS reporting tool
Note: Additional impact and feasibility analysis on missing functionality will need to be completed (planned for EA-PS 2.0 early release)

37. BCS Overall Assessment
BCS Missing Functionality EA-PS 1.1
Releases - not required G of C new design
Overall budgets
Revenues increasing the budget (both aggregated and non-aggregated rules)
Reporting – G of C requires major review / rewrite
Conversion – totals based migration tools
Some delete functions in BCS configuration
The following delete functions are missing in BCS configuration:
1. Delete Account Assignment Derivation Strategy for Budget Addresses from Posting Addresses
2. Delete AVC ledger (only outside of BCS using SE16 to maintain table T881- not transportable)
3. Delete Account Assignment Derivation Strategy for Availability Control Objects from Budget Addresses (delete function for AVC strategies (FMAVCDERIO...) will be part of the EA-PS 2.0 shipment.)
4. Delete Derivation Strategy for Overriding the Standard Tolerance Profile
Note: All available in EA-PS 2.0

38. BCS Overall Assessment
SAP Strategy
SAP has indicated that a customer should experience no loss of functionality on a move from FBS to BCS.
Government of Canada
BCS provides opportunities for significant FM improvements within G of C. SAP has been very supportive of our FM Redesign

39. Information contacts
IFMS Program Office, Consulting and Audit Canada, Government of Canada:
Product Manager
Budget & Planning Lead

40. Questions?

41. Thank you for attending!
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Session Code: 3101