University of Tennessee

Finance Business
Blueprint

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

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 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

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 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) 4
 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).

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 Financial Accounting
Enterprise Structure – General Ledger

Chart of
Assets
Accts UT

Liabilities

Fund
Company Code Balances
UT
Revenues

Expenditures

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 Financial Accounting
Enterprise Structure - Controlling
Company Code UT Functional Area Instruction

Profit Center L011002401

Chemistry
Cost Center
E011024001

Fund E011024001

Business Area
Cur Unrest E&G Knoxvil e Fund Center U011002401
Chemistry

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 Financial Accounting
Enterprise Structure – Project Systems
Functional Area Research
Company Code UT

Profit Center L011002401

WBS Element Chemistry
B01001024

Fund
B01001024
WBS Element
R011024010
Fund
R011024010

Business Area
Cur Rest E&G Knoxvil e Fund Center U011002401
Chemistry

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 Financial Accounting
Enterprise Structure – Procurement
Univ of
Company code Tennessee
UT

Central
Purch.Org.
Purch. Organization
UT

Chatta- UTSI-
Knoxville Martin Memphis
Plant nooga Tullahoma
K M H
C T

Depart.
Depart... Depart... Depart... Depart...
Storage K001...
location
C001... M001... H001 T001
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 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

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 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

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 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

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 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

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 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

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 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

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 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)

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 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

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 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

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 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

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 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

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 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

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 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

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 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

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 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

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 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

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 Purchasing Matrix
Volume/Value Annual Doc. Type Req. Request for Quotation Purchase Funds Goods A/P-or
activity /Method ($2,000><10,000) Orders Avail. Receipt Department
Optional Checking
>$10,000 Required

Low/Low $3M P-Card N/A N/A N/A N/A N/A Accts. Payable
Note N/A
High/Low or High Outline- N/A Release Yes Yes Depts.
Value (WK) Orders
(NB)

High/Low Note Outline- N/A N/A Blanket N/A N/A Accts. Payable
Value (WK) (FO)

Low/High Note Purchase Yes Yes Yes Yes Yes Department

(incl. Assets) Order (NB)

High/Low $100M Non- N/A N/A N/A N/A N/A Department

Purchase
Order

Personal   Purchase Yes   Yes Yes N/A Accts. Payable

Services Order or
External
Order
Facilities /   Purchase            
Construction Order or
External
Order
Library-Books   Out of Scope            

Insurance-                
Contracts

Utilities   Out of Scope            

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

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

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 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 113 - )
• Ability to track source of recoveries of payroll costs (Issue 118, 119 –
process design)
• Scope of University procurement processes (Issue 133 – project scope)

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 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)

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

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