Finance & Purchasing Overview 1 Finance and Purchasing Overview.

Finance & Purchasing Overview1

Finance and Purchasing Finance and Purchasing

OverviewOverview


Finance & Finance & Purchasing Purchasing OverviewOverview

Finance & Finance & Purchasing Purchasing OverviewOverview

Materials Management ModuleMaterials Management ModuleMaterials Management ModuleMaterials Management Module

Getting HelpGetting HelpGetting HelpGetting Help

Finance & Controlling ModulesFinance & Controlling ModulesFinance & Controlling ModulesFinance & Controlling Modules

SAP OverviewSAP OverviewSAP OverviewSAP Overview

Tarrant County ImplementationTarrant County ImplementationTarrant County ImplementationTarrant County Implementation

COURSE OVERVIEWCOURSE OVERVIEW

Accessing Training MaterialsAccessing Training MaterialsAccessing Training MaterialsAccessing Training Materials


COURSE OBJECTIVESCOURSE OBJECTIVESThe Finance & Purchasing Overview course has two purposes:The Finance & Purchasing Overview course has two purposes:

Introduce SAP and the finance and purchasing modulesIntroduce SAP and the finance and purchasing modules Prepare you for role-specific training coursesPrepare you for role-specific training courses

Objectives of the course:Objectives of the course: Review SAP system and integrationReview SAP system and integration Understand Tarrant County implementationUnderstand Tarrant County implementation Become familiar with termsBecome familiar with terms Provide a high level understanding of:Provide a high level understanding of:

► General Ledger FunctionalityGeneral Ledger Functionality► Accounts Receivable FunctionalityAccounts Receivable Functionality► Accounts Payable FunctionalityAccounts Payable Functionality► Asset Accounting FunctionalityAsset Accounting Functionality► Controlling FunctionalityControlling Functionality► Grants Management FunctionalityGrants Management Functionality► Funds Management FunctionalityFunds Management Functionality► Materials Management FunctionalityMaterials Management Functionality

How to get HelpHow to get Help How to access training materialsHow to access training materials


Lesson 1: SAP OverviewLesson 1: SAP Overview

SAP stands for Systems, SAP stands for Systems, Applications, and ProductsApplications, and Products

The SAP system is a fully-The SAP system is a fully-integrated system where integrated system where activities in one area activities in one area generate activities in another generate activities in another areaarea

The system provides online, The system provides online, real-time information and real-time information and one place for input of dataone place for input of data


Modules in SAPModules in SAP SAP is made up of various functional SAP is made up of various functional

modules modules Each module covers a different business Each module covers a different business

functionfunction Tarrant County is using the following Tarrant County is using the following

modules:modules:

CO CO ControllingControllingFI FI Financial Financial Accounting Accounting HR HR Human Human Resources/PayrollResources/Payroll

MM MM Materials Materials ManagementManagement

GM GM Grants Grants ManagementManagement

FM FM Funds ManagementFunds Management

TC is also using ESS (Employee Self TC is also using ESS (Employee Self Service) for employees to enter time Service) for employees to enter time and maintain personal information. and maintain personal information.


FI ModuleFI ModuleOther Other

Financial Financial ModulesModules

HR/MaterialsHR/MaterialsManagement Management

ModulesModules

ACCOUNTSRECEIVABL

E

ACCOUNTS

PAYABLE

ASSETS FUNDS MANAGEMEN

T

CONTROLLING

GRANTSMANAGEMEN

T

How They Work TogetherHow They Work Together

PAYROLL

PURCHASING

INVENTORYMANAGEMEN

T


Integration in SAPIntegration in SAP

System IntegrationSystem Integration

►When a transaction is executed in any When a transaction is executed in any module,module,

SAP automatically updates data in all SAP automatically updates data in all application modules that are affectedapplication modules that are affected

►Benefits of IntegrationBenefits of Integration Enables simplified business processes, standard Enables simplified business processes, standard

data definition, and a common business languagedata definition, and a common business language Simplified business processes enhance productivity Simplified business processes enhance productivity

to allow focus on value-added activitiesto allow focus on value-added activities Data has to be entered only once and all related Data has to be entered only once and all related

information is updated automaticallyinformation is updated automatically Integration eliminates need for redundant analysis Integration eliminates need for redundant analysis

and reconciliationand reconciliation


Business Flow IntegrationBusiness Flow Integration

RequisitionerRequisitioner Procurement Procurement OfficerOfficer

Asset ManagerAsset Manager

$$$$$$$$$$

Budget OfficerBudget OfficerGL AccountantGL Accountant

VendorVendor

Accounts Accounts Payable OfficerPayable Officer

ReceiverReceiver


Invoice Verification AP

Direct PostingG/L

Customer Payments AR

Vendor Payments AP

DepreciationAA

Goods ReceiptMM

General

General

Ledger

Ledger

Goods IssueMM

Charges MM

ChargesAP

Vendor Invoices AP

Hitting the G/LHitting the G/L


DataData

SAP contains two types of informationSAP contains two types of information► Master DataMaster Data

A collection of information about an object or personA collection of information about an object or person It is referenced whenever that object or person is used in an It is referenced whenever that object or person is used in an

entry fieldentry field This data does not normally changeThis data does not normally change Examples are address and payment information for a vendor Examples are address and payment information for a vendor

or customeror customer

► Transactional DataTransactional Data Information associated with a specific business activityInformation associated with a specific business activity You enter this information in SAPYou enter this information in SAP Changes from day to dayChanges from day to day Examples are:Examples are:

– InvoicesInvoices– Purchase requisitionPurchase requisition


Master Data vs. Transactional Master Data vs. Transactional DataData

G/L AccountsG/L AccountsCustomer Master RecordsCustomer Master Records

Vendor Master RecordsVendor Master RecordsGrants Master RecordsGrants Master Records

Asset MastersAsset MastersMaterial Master RecordsMaterial Master Records

Journal EntriesJournal EntriesInvoicesInvoicesPaymentPayment

RequisitionsRequisitions

Master Records

Records that remainin the system for an extended period of time.

Transaction Records

Records a specific event


Examples of Master DataExamples of Master Data

Tarrant CountyPurchase Order

P.O. # 56789Date: July 2, 2004

Widgets (material #15005), box of 10

Qty $$

10 bx 10.00

Total 100.00

To: ABC Company, Vendor #1001 12345 Any street Any town, USA 54321

Vendor Master Data

Material Master Data


Examples of Transactional DataExamples of Transactional Data

Tarrant CountyPurchase Order

To: ABC Company, Vendor #1001 12345 Any street Any town, USA 54321

P.O. # 56789Date: July 2, 2004

Widgets (material #15005), box of 10

Qty $$

10 bx 10.00

Total 100.00

Cost Center 987

Transactional Data


Documents & Document TypesDocuments & Document Types A Document generally consists of a document header A Document generally consists of a document header

and line items. and line items. ► Document header – contains data that identifies a Document header – contains data that identifies a

document and applies to the entire document.document and applies to the entire document. DateDate Document typeDocument type Document numberDocument number

► Line items – generally includeLine items – generally include AmountAmount Account assignmentAccount assignment Additional details specific to the transactionAdditional details specific to the transaction

Document Types are located on the header portion of Document Types are located on the header portion of every documentevery document

► Distinguish between different business transactionsDistinguish between different business transactions► Control document number assignmentControl document number assignment► Help manage accounting documentsHelp manage accounting documents


Document No: SAxxxxxxDocument No: SAxxxxxxDate: 05/06/2004Date: 05/06/2004Company Code: TC01Company Code: TC01Currency: USDCurrency: USD

HeaderHeader

Line ItemsLine Items

The Accounting The Accounting DocumentDocument

Debits = CreditsDebits = Credits

Illustration

DocumentDocument

StructureStructure

Revenue A/C

Citibank

DR

DR

CR

CR

Bank 10000

Sale 10000


Illustration

Document

TypesA A document typedocument type is a key that is used is a key that is used to classify accounting documents to classify accounting documents and distinguish between business and distinguish between business transactions to be postedtransactions to be posted


Purchasing Document Purchasing Document TypesTypes

Master Data

Approval

PurchaseRequisition

RFQ

PurchaseOrder

Contract


Tarrant County Document TypesTarrant County Document Types

Document TypeDocument Type DescriptionDescriptionAAAA Asset postingAsset postingABAB Accounting documentAccounting documentDADA Customer documentCustomer documentDGDG Customer credit memoCustomer credit memoDRDR Customer invoiceCustomer invoiceDZDZ Customer paymentCustomer paymentKAKA Vendor documentVendor documentKGKG Vendor credit memoVendor credit memoKRKR Vendor invoiceVendor invoiceKZKZ Vendor paymentVendor paymentSASA G/L account documentG/L account documentSBSB G/L account postingG/L account postingWAWA Goods issueGoods issueWEWE Goods receiptGoods receipt


TermsTermsStandard SAP terms:Standard SAP terms: Application – computer programApplication – computer program

Client – unit in SAP system where data is input, changed, and managedClient – unit in SAP system where data is input, changed, and managed

Data – pieces of information; numbers or textData – pieces of information; numbers or text

ERP – Enterprise Resource Planning; designed to integrate and run all aspects of an ERP – Enterprise Resource Planning; designed to integrate and run all aspects of an organizationorganization

Information – data that has been collected Information – data that has been collected

Integrated – transactions that are completed in one module or process trigger transactions Integrated – transactions that are completed in one module or process trigger transactions in other modulesin other modules

Menu Path – sequence of menu selections that should be followed to get to a function or Menu Path – sequence of menu selections that should be followed to get to a function or screenscreen

Module – portion of SAP system that carries out a specific business functionModule – portion of SAP system that carries out a specific business function

Real-time – describes how data that has been entered into the system is available Real-time – describes how data that has been entered into the system is available immediately after the transaction has been saved. Everyone has access to the same immediately after the transaction has been saved. Everyone has access to the same data.data.

Session – instance of SAP; allows multi-tasking within systemSession – instance of SAP; allows multi-tasking within system

Transaction – screen or series of screens to create, display, or change dataTransaction – screen or series of screens to create, display, or change data

Transaction code – (t-code) unique identifier for each transaction that allows you to get to Transaction code – (t-code) unique identifier for each transaction that allows you to get to a transaction without going through the menua transaction without going through the menu

User role – assigned to each employee; set of activities used by the employeeUser role – assigned to each employee; set of activities used by the employee

Variants – a saved set of personal selection criteria which can be used for lists and reportsVariants – a saved set of personal selection criteria which can be used for lists and reports


Lesson 2: Tarrant County Lesson 2: Tarrant County ImplementationImplementation

Tarrant County is implementing the following modules in SAPTarrant County is implementing the following modules in SAP::

Human Resources (HR)Human Resources (HR) Takes care of payroll, time recording, applicant administration, and Takes care of payroll, time recording, applicant administration, and

organization data. Supports the planning and control of personnel organization data. Supports the planning and control of personnel activities.activities.

In use since October 2003In use since October 2003

Financial Accounting (FI)Financial Accounting (FI) Designed for automated management and reporting of Designed for automated management and reporting of

General Ledger (GL)General Ledger (GL) Accounts Receivable (AR)Accounts Receivable (AR) Accounts Payable (AP)Accounts Payable (AP) Asset Accounting (AA)Asset Accounting (AA)

External reporting, such as income statement and balance sheetExternal reporting, such as income statement and balance sheet

Controlling (CO)Controlling (CO) Represents cost and revenue flows throughout the organizationRepresents cost and revenue flows throughout the organization Aids in organizational decision makingAids in organizational decision making Supports internal reporting such as cost center reportsSupports internal reporting such as cost center reports


Tarrant County Implementation Tarrant County Implementation (cont’d)(cont’d)

Tarrant County is implementing the following modules in SAPTarrant County is implementing the following modules in SAP::

Materials Management (MM)Materials Management (MM) Supports the complete cycle of material flow, from the requisition Supports the complete cycle of material flow, from the requisition

to purchase to the warehousing and distributionto purchase to the warehousing and distribution

Grants Management (GM)Grants Management (GM) Manages the application, award, budget tracking, and closing of a Manages the application, award, budget tracking, and closing of a

grantgrant

Funds Management (FM)Funds Management (FM) Supports the management of budgetsSupports the management of budgets Budget can be adapted to changesBudget can be adapted to changes in conditions by entering in conditions by entering

releases, supplements, returns, and transfersreleases, supplements, returns, and transfers Tracks expenses to budgetTracks expenses to budget

Tarrant County is also using Employee Self-Service for employee entry Tarrant County is also using Employee Self-Service for employee entry and management of time, personal data, training & events, appraisals, and management of time, personal data, training & events, appraisals, and benefits enrollment.and benefits enrollment.


Tarrant County Finance & Purchasing Tarrant County Finance & Purchasing ModulesModules

Accounts Accounts PayablePayable

Asset Asset AccountingAccounting

General General LedgerLedger

AccountsAccountsReceivableReceivable

PurchasingPurchasing

InventoryInventory

MaterialsMaterialsManagemManagem

entent(MM)(MM)

ControllingControlling(CO)(CO)

FundsFundsManagemeManageme

ntnt(FM)(FM)

FinancialsFinancials(FI)(FI)

Grants Grants Management Management

(GM)(GM)


Organizational ElementsOrganizational Elements The following organizational elements and codes are used in The following organizational elements and codes are used in

Tarrant County:Tarrant County:

► Company Code – TC01Company Code – TC01 Organization unit where individual financial statements are createdOrganization unit where individual financial statements are created Self-contained Chart of AccountsSelf-contained Chart of Accounts

► Controlling Area – TC01Controlling Area – TC01 Self-contained organization unit where management of costs and revenues Self-contained organization unit where management of costs and revenues

is performedis performed

► Purchasing Organization – TC01Purchasing Organization – TC01 Organizational unit that procures materials or servicesOrganizational unit that procures materials or services

► Chart of Accounts – TC01Chart of Accounts – TC01 List of all General Ledger (GL) accounts usedList of all General Ledger (GL) accounts used

► PlantsPlants Organizational unit for Admin and StockroomsOrganizational unit for Admin and Stockrooms

– Tarrant County Admin (all non-stock purchases) – TC01Tarrant County Admin (all non-stock purchases) – TC01– Sheriff (Stockroom) – TC04Sheriff (Stockroom) – TC04– Justice Center (Stockroom) – TCJCJustice Center (Stockroom) – TCJC– Central Supply (Stockroom) - TCCSCentral Supply (Stockroom) - TCCS


Purchasing Organization – TC01Purchasing Organization – TC01

Chart of Accounts – TC01Chart of Accounts – TC01

Controlling Area – TC01Controlling Area – TC01

Company Code – Company Code – TC01TC01

FI/MM

MM

CO

FI • For all (AP, AR, GL, AA) For all (AP, AR, GL, AA) process settingsprocess settings

• For management reporting For management reporting module settingsmodule settings

• For all Purchasing settingsFor all Purchasing settings

•Basic entity in SAP for a legal Basic entity in SAP for a legal entityentity

Tarrant County Organization StructureTarrant County Organization Structure

Plant - TCCSPlant - TCCSPlant – TC04Plant – TC04

Plant - TCJCPlant - TCJCPlant – TC01Plant – TC01

MM • For all Logistics settingsFor all Logistics settings


Tarrant County ImplementationTarrant County Implementation

Tarrant County terms:Tarrant County terms:

GASB – Governmental Accounting Standards BoardGASB – Governmental Accounting Standards Board

Go-Live – date when SAP module is scheduled to run live in production Go-Live – date when SAP module is scheduled to run live in production systemsystem

► Phase I – 10/01/03Phase I – 10/01/03 HR/PayrollHR/Payroll► Phase II – 07/06/04Phase II – 07/06/04 Financial/PurchasingFinancial/Purchasing► Phase III – 04/01/05Phase III – 04/01/05 Budget PrepBudget Prep

Legacy System – existing County system that either interfaces with SAP or Legacy System – existing County system that either interfaces with SAP or provides data for start up of SAPprovides data for start up of SAP

Production System – live SAP system used for normal operationsProduction System – live SAP system used for normal operations

SME – subject matter expert; County employee who has experience or SME – subject matter expert; County employee who has experience or expertise in a specific functional areaexpertise in a specific functional area

TITAN – Titan Integrated Task Access Network; County implementation of TITAN – Titan Integrated Task Access Network; County implementation of SAP systemSAP system



Why Change??Why Change??

Systems with duplicate dataSystems with duplicate data Have to use different systems to Have to use different systems to

enter and get informationenter and get information Have to wait for processing to Have to wait for processing to

get dataget data

What Does Business Change Involve?What Does Business Change Involve?

Changing the way we workChanging the way we work Changing our rolesChanging our roles Changing the ‘tool’Changing the ‘tool’



How Will Change Affect Us?How Will Change Affect Us? Major changes such as Tarrant County is implementing will have an initial Major changes such as Tarrant County is implementing will have an initial

effect on peoples’ performanceeffect on peoples’ performance

Over time, the benefits achieved will far outweigh the initial impactsOver time, the benefits achieved will far outweigh the initial impacts

Time

MaximumBenefitsAchieved

ContinuousImprovement

Pro

du

ctiv

ity

Initial Change


Lesson 3: Finance & Controlling Lesson 3: Finance & Controlling Modules Modules


Manages vendor invoicesManages vendor invoices

Manages responsibility Manages responsibility accountingaccounting

Manages all financial Manages all financial accountsaccounts

Manages customer billingManages customer billing

Manages fixed assets and Manages fixed assets and depreciationdepreciation

Accounts Receivable

FIFI

Controlling

Accounts Payable

Asset Accounting

FIFI

COCO

FIFI

General Ledger

FIFI

What is FI and CO?What is FI and CO?Financial Accounting (FI) and Controlling (CO) are independent components in the Financial Accounting (FI) and Controlling (CO) are independent components in the SAP system. The two components are tightly integrated and the data flow SAP system. The two components are tightly integrated and the data flow between them takes place on a regular basis.between them takes place on a regular basis.


Internal

External

Journalists Media

EXTERNAL AGENCIES

Tarrant County Management

Insurers

Tax Authorities

Auditors

Managerial Reports

FIFinancial

Accounting

Tarrant CountyEmployees

Financial Statements

ExternalFinancial Analysts

Reporting OverviewReporting Overview

COControlling

Internal


Master

Records

General

Ledger

Accounts

Payable

Accounts

Receivable

Fixed

Assets

Periodic

Processing

Financial Accounting (FI)Financial Accounting (FI)

This is the key component structure of financial accounting

The FI module is designed for automated The FI module is designed for automated management and external reporting of general ledger, management and external reporting of general ledger, accounts receivable, accounts payable, asset accounts receivable, accounts payable, asset accounting, and other sub-ledger accounts within the accounting, and other sub-ledger accounts within the chart of accountschart of accounts


Financials (FI)Financials (FI)General Ledger (GL)General Ledger (GL)

Used for external Used for external reportingreporting

Document entryDocument entry

Account ManagementAccount Management

Used for external Used for external reportingreporting

Document entryDocument entry

Account ManagementAccount Management

ContainsContains

► General Ledger General Ledger AccountsAccounts

► Chart of accountsChart of accounts

General

General

Ledger

Ledger



General Ledger




General Ledger (GL)General Ledger (GL)Roles & ResponsibilitiesRoles & Responsibilities



General Ledger



DepartmentsDepartments

Display general ledger accounts, documents,Display general ledger accounts, documents, and line itemsand line items

AuditorAuditor

Maintain G/L accountsMaintain G/L accounts Approve and post documentsApprove and post documents


Financials (FI)Financials (FI)Accounts Receivable (AR)Accounts Receivable (AR)

Processes cash receipt Processes cash receipt transactions for either transactions for either accounts receivable or accounts receivable or revenue transactionsrevenue transactions

Invoices or bills customer Invoices or bills customer for amount duefor amount due

Processes cash receipt Processes cash receipt transactions for either transactions for either accounts receivable or accounts receivable or revenue transactionsrevenue transactions

Invoices or bills customer Invoices or bills customer for amount duefor amount due

ContainsContains

► CustomersCustomers► Billing logicBilling logic► DunningDunning




AccountsReceivable



Accounts Receivable (AR)Accounts Receivable (AR)Roles & ResponsibilitiesRoles & Responsibilities




AccountsReceivable


DepartmentsDepartments Record cash receipts into Cash JournalRecord cash receipts into Cash Journal Enter customer invoices / credit memos to Enter customer invoices / credit memos to

create receivablescreate receivables

AuditorAuditor Check entries and posts cash journalsCheck entries and posts cash journals Perform new customer setupPerform new customer setup


Financials (FI)Financials (FI)Accounts Payable (AP)Accounts Payable (AP)

Process invoicesProcess invoices

Generate Generate warrants/checks by due warrants/checks by due date or discount datedate or discount date

Produce 1099 ReportsProduce 1099 Reports

Process invoicesProcess invoices

Generate Generate warrants/checks by due warrants/checks by due date or discount datedate or discount date

Produce 1099 ReportsProduce 1099 Reports

ContainsContains

► VendorsVendors► WarrantsWarrants► ChecksChecks

Accounts Payable






Accounts Payable (AP)Accounts Payable (AP)Roles & ResponsibilitiesRoles & Responsibilities

Accounts Payable





Department Enter Invoice Documents Park documents when invoice verification fails

Auditor Maintains Vendor Master Reviews entered documents (except parked documents)

and releases invoices for payment Reviews parked documents to resolve problems; may

contact the vendor, requisitioner or buyer. Issues checks for invoices with a free for payment status


Financials (FI)Financials (FI)Asset Accounting (AA)Asset Accounting (AA)

Provides management of Provides management of capitalized or tracked capitalized or tracked assetsassets

Generates depreciation Generates depreciation transactions for the transactions for the general ledgergeneral ledger

Provides management of Provides management of capitalized or tracked capitalized or tracked assetsassets

Generates depreciation Generates depreciation transactions for the transactions for the general ledgergeneral ledger

ContainsContains

► Tag numbersTag numbers► Asset ClassesAsset Classes► Depreciation profilesDepreciation profiles► Capitalized assetsCapitalized assets► Tracked assetsTracked assets


Asset Accounting





Asset Accounting (AA)Asset Accounting (AA)Roles & ResponsibilitiesRoles & Responsibilities


Asset Accounting




Department

Create the asset shell at the requisition stage

AuditorMaintain asset master recordsIssue asset tags for Capital and non-computer low value assetsUpdate the records for additional information such as serial numbersUpdate Capital Asset record master data


Controlling (CO)Controlling (CO)

This is the key component structure of Controlling:This is the key component structure of Controlling:

The CO module represents the County’s flow of costs The CO module represents the County’s flow of costs and revenue. It is also a management instrument for and revenue. It is also a management instrument for organizational decisions. A key tasks is the analysis of organizational decisions. A key tasks is the analysis of FI data. Variances can be determined by comparing FI data. Variances can be determined by comparing actual data with plan data. actual data with plan data.

Cost Element

Accounting

Cost Center

Accounting

Internal

Orders


Controlling (CO)Controlling (CO)

Used for managerial Used for managerial reporting or activity reporting or activity reportingreporting

Used to collect and Used to collect and allocate costsallocate costs

Used for managerial Used for managerial reporting or activity reporting or activity reportingreporting

Used to collect and Used to collect and allocate costsallocate costs

ContainsContains

► Cost CentersCost Centers► ProjectsProjects► Internal OrdersInternal Orders



Controlling (CO)Controlling (CO)Roles & ResponsibilitiesRoles & Responsibilities


DepartmentDepartment

Display:Display:CO reportsCO reportsCost center/cost center group dataCost center/cost center group dataInternal order/internal order group dataInternal order/internal order group dataBudget information for internal ordersBudget information for internal orders

AuditorAuditor

Display CO reportsDisplay CO reports Create, change, and display: Create, change, and display:

Cost centers/cost center groupsCost centers/cost center groupsInternal orders/internal order groupsInternal orders/internal order groupsInternal order budget informationInternal order budget information


FI/CO, GM & FM Integration & TermsFI/CO, GM & FM Integration & Terms

FI/COFI/CO

GrantGrant

FundFund

Cost center, Cost center, Functional AreaFunctional Area

Cost Elements & Cost Elements & GL AccountsGL Accounts

Fiscal Fiscal YearYear

GMGM

GrantGrant

FundFund

Sponsored Sponsored ProgramProgram

Sponsored ClassSponsored Class

Budget Validity Budget Validity PeriodPeriod

FMFM

GrantGrant

FundFund

Fund Center, Fund Center, Funded Program, Funded Program, Functional AreaFunctional Area

Commitment ItemCommitment Item

Fiscal YearFiscal Year


Grants Management (GM)Grants Management (GM)

Plan, budget, identify, Plan, budget, identify, obtain, and record all obtain, and record all funding related to awarded funding related to awarded grantsgrants

Differentiate between Differentiate between eligible and ineligible costseligible and ineligible costs

Bill and record sponsor Bill and record sponsor amountsamounts

Record and report all Record and report all related costs, revenues, related costs, revenues, and required informationand required information

Plan, budget, identify, Plan, budget, identify, obtain, and record all obtain, and record all funding related to awarded funding related to awarded grantsgrants

Differentiate between Differentiate between eligible and ineligible costseligible and ineligible costs

Bill and record sponsor Bill and record sponsor amountsamounts

Record and report all Record and report all related costs, revenues, related costs, revenues, and required informationand required information

Grants Grants Management Management

(GM)(GM)

Contains:Contains:► Grant lifecyclesGrant lifecycles► Grant detailsGrant details► Grant reportsGrant reports


Grants Management (GM)Grants Management (GM)Roles & ResponsibilitiesRoles & Responsibilities Grants Grants

Management Management (GM)(GM)DepartmentDepartment

DisplayDisplayGrantsGrantsGrant budgetsGrant budgetsGrant reportsGrant reports

County Administrator’s OfficeCounty Administrator’s Office

DisplayDisplayGrantsGrantsGrant budgetsGrant budgetsGrant reportsGrant reports

Create grantsCreate grants

AuditorAuditor

All above All above Maintain grant master dataMaintain grant master data Manage grant cyclesManage grant cycles Monitor grant postingsMonitor grant postings


Funds Management (FM)Funds Management (FM)FundsFunds

ManagemManagementent

(FM)(FM)

Maintains budgetary Maintains budgetary control for all expense control for all expense activityactivity

Maintains budgetary Maintains budgetary control for all expense control for all expense activityactivity

ContainsContains

► FundsFunds► Fund CentersFund Centers► Commitment ItemsCommitment Items

$$$$$

Budget Officer


Funds ManagementFunds ManagementRoles & ResponsibilitiesRoles & Responsibilities

FundsFundsManagementManagement

(FM)(FM)DepartmentDepartment

‘‘Pre-post’ budget transfers for adjustmentPre-post’ budget transfers for adjustment within their own level of departmental controlwithin their own level of departmental control Post transfers within budget control Post transfers within budget control categories of commitment itemscategories of commitment items

Budget OfficeBudget Office

‘‘Pre-post’ budget transfers between Pre-post’ budget transfers between departmentsdepartments

Generate report listing pre-posted transfers Generate report listing pre-posted transfers needing Commissioner’s Court approvalneeding Commissioner’s Court approval

Post transfers after approved by Post transfers after approved by Commissioners CourtCommissioners Court

Create supplement, return, and entry budgetCreate supplement, return, and entry budget documentsdocuments

AuditorAuditor

Create and change funds blockCreate and change funds block Create and change funds reservationCreate and change funds reservation Create and change funds commitmentCreate and change funds commitment


Lesson 4: Materials Management Lesson 4: Materials Management Module (MM) Module (MM)


Materials Management (MM)Materials Management (MM) The MM application component supports the The MM application component supports the

procurement and inventory functions procurement and inventory functions occurring in day-to-day business operations such as: occurring in day-to-day business operations such as: materials planning and control, purchasing, goods materials planning and control, purchasing, goods receiving, and inventory management. Invoice receiving, and inventory management. Invoice verification is an MM function but is executed by verification is an MM function but is executed by Accounts Payable.Accounts Payable.

Master Records

This is the key component structure of Materials This is the key component structure of Materials Management:Management:

PurchasingInventory

Management

InvoiceVerification – (Done by AP)


Materials Management (MM)Materials Management (MM)

Purchasing is responsible for:Purchasing is responsible for:► External procurement of materials and servicesExternal procurement of materials and services► Determination of sources of supply (vendors)Determination of sources of supply (vendors)► Monitoring deliveries from vendorsMonitoring deliveries from vendors

Inventory Management is responsible for:Inventory Management is responsible for:► Management of stocksManagement of stocks► Planning, entry, and documentation of all goods movementsPlanning, entry, and documentation of all goods movements

Key TermsKey Terms► A purchasing organization is an organizational unit that A purchasing organization is an organizational unit that

procures materials or services. It negotiates purchasing procures materials or services. It negotiates purchasing conditions for plants assigned to it.conditions for plants assigned to it.

► A plant is an operating unit that makes goods available for A plant is an operating unit that makes goods available for distribution.distribution.



Purchasing Integration

Purchasing

MaterialsManagement

(MM)

Controlling(CO)

FundsManagement

(FM)

Financials(FI)

Asset Accounting

General LedgerInventory

Log. Invoice Verification

GrantsManagemen (GM)

Grants Management

(GM)

Accounts Payable



Integration of Inventory

Asset Accounting

General Ledger

MaterialsManagement

(MM)

Controlling(CO)

FundsManagement

(FM)Financials

(FI)

Purchasing

Log. Invoice Verification

Inventory

Grants Management

(GM)

Accounts Payable


Materials Management (MM) Materials Management (MM) PurchasingPurchasing

Use to order or contract Use to order or contract for goods or services.for goods or services.

Supports requests for Supports requests for quotes from vendors for quotes from vendors for goodsgoods

Processes receipt of Processes receipt of goodsgoods

Use to order or contract Use to order or contract for goods or services.for goods or services.

Supports requests for Supports requests for quotes from vendors for quotes from vendors for goodsgoods

Processes receipt of Processes receipt of goodsgoods

ContainsContains

► RequisitionsRequisitions► RFQRFQ► Purchase ordersPurchase orders► Vendor PerformanceVendor Performance► ContractsContracts► VendorVendor

Purchasing

Inventory

MaterialsManagement

(MM)


Materials Management (MM)Materials Management (MM)PurchasingPurchasing Roles & ResponsibilitiesRoles & Responsibilities

Purchasing

Inventory

MaterialsManagement

(MM)DepartmentsDepartments

Create, change, display purchase requisitionsCreate, change, display purchase requisitionsMaterialMaterialServiceServiceAssetAssetGrantGrant

Create asset shellCreate asset shell Approve purchase requisitionsApprove purchase requisitions Post goods receiptsPost goods receipts Post service entry sheetsPost service entry sheets View material mater, vendor master, and serviceView material mater, vendor master, and service master recordsmaster records

Purchasing DepartmentPurchasing Department

Display/report on vendor, material, and serviceDisplay/report on vendor, material, and service master recordsmaster records Create, change, display purchase orders and RFQsCreate, change, display purchase orders and RFQs Display/report on quotation and purchase order Display/report on quotation and purchase order price historiesprice histories Maintain bids, Info Records, source lists, outline Maintain bids, Info Records, source lists, outline agreements, and contractsagreements, and contracts


Materials Management (MM) Materials Management (MM) InventoryInventory

Use for supplies inventoryUse for supplies inventory

Supports storing and Supports storing and issuing goods from issuing goods from warehouseswarehouses

MRP (materials MRP (materials requirement planning)requirement planning)

Physical inventory Physical inventory processingprocessing

Use for supplies inventoryUse for supplies inventory

Supports storing and Supports storing and issuing goods from issuing goods from warehouseswarehouses

MRP (materials MRP (materials requirement planning)requirement planning)

Physical inventory Physical inventory processingprocessing

Purchasing

Inventory

MaterialsManagement

(MM)

ContainsContains

► PlantsPlants► Delivery AddressesDelivery Addresses


Materials Management (MM)Materials Management (MM)Inventory/Audit Contracts Roles & ResponsibilitiesInventory/Audit Contracts Roles & Responsibilities

Purchasing

Inventory

MaterialsManagement

(MM)

DepartmentsDepartments

Display/report on vendor master records, material Display/report on vendor master records, material master records, material documents, service master master records, material documents, service master records, purchase orders, and contractsrecords, purchase orders, and contracts

Process goods movementsProcess goods movementsGoods receiptGoods receiptGoods issueGoods issueReversalsReversals

Post service entry sheetsPost service entry sheets

Purchasing DepartmentPurchasing Department

Display/report on vendor master records, material masterDisplay/report on vendor master records, material master records, material documents, service master records, purchaserecords, material documents, service master records, purchase orders, RFQs, and contractsorders, RFQs, and contracts Create/change contractsCreate/change contracts Create/change purchase ordersCreate/change purchase orders


Materials Management (MM)Materials Management (MM)Inventory/Audit Contracts Roles & ResponsibilitiesInventory/Audit Contracts Roles & Responsibilities

Purchasing

Inventory

MaterialsManagement

(MM)

Warehouse Stock ClerksWarehouse Stock Clerks

Display/report on vendor master records, material Display/report on vendor master records, material master master

records, material documents, service master records, records, material documents, service master records, purchase orders, and contractspurchase orders, and contracts Process goods movementsProcess goods movements

Goods receiptGoods receiptGoods issueGoods issueReversalsReversals

Run various inventory management reportsRun various inventory management reports Perform MRP (materials requirement planning) and post Perform MRP (materials requirement planning) and post

to funds managementto funds management Perform/enter physical inventory countsPerform/enter physical inventory counts Create, change, and display physical inventory Create, change, and display physical inventory

documentsdocuments Create purchase requisitions for stock replenishmentCreate purchase requisitions for stock replenishment

AuditorAuditor

Display/report on vendor master records, material masterDisplay/report on vendor master records, material master records, material documents, service master records, purchaserecords, material documents, service master records, purchase orders, and contractsorders, and contracts Create/change contractsCreate/change contracts Create/change purchase ordersCreate/change purchase orders Process goods movementsProcess goods movements Post service entry sheetsPost service entry sheets


Lesson 5: Getting HelpLesson 5: Getting Help

1

2

3

Review the Review the on-line helpon-line help in SAP in SAP

Ask your Ask your peerspeers or or super usersuper user for assistance.for assistance.

Review your Review your training training materialsmaterials and notes. and notes.


Tarrant County HelpTarrant County Help

Problems with running tutorials?Problems with running tutorials? Training Mailbox –Training Mailbox – [email protected]@tarrantcounty.com

After utilizing the various methods of help on After utilizing the various methods of help on the previous page, if you still have questions or the previous page, if you still have questions or problems problems

oror

If you have problems at any time with accessing If you have problems at any time with accessing SAP, printing, computer or network problems, SAP, printing, computer or network problems, etc.etc.

Contact the Tarrant County IT Help Desk at Contact the Tarrant County IT Help Desk at 817-884-3507 817-884-3507


Lesson 6: Accessing Training MaterialsLesson 6: Accessing Training Materials

All All TITAN training materialsTITAN training materials for Finance & Purchasing are stored on the for Finance & Purchasing are stored on the Tarrant County websiteTarrant County website

This website is accessed through your Internet Explorer from any This website is accessed through your Internet Explorer from any computer that has internet access; you do not have to be on the computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Tarrant County network. The URL for direct link to the Training Materials website is:Materials website is:

http://www.tarrantcounty.com/titan/lib/titan/training/index.asphttp://www.tarrantcounty.com/titan/lib/titan/training/index.asp

Set up this website as a favorite in your web browser for quick future Set up this website as a favorite in your web browser for quick future accessaccess

Enter the URL above in the addressEnter the URL above in the address field in your browserfield in your browser When you reach the website, go toWhen you reach the website, go to Favorites>Add to FavoritesFavorites>Add to Favorites in the in the Browser menuBrowser menu A pop-up window will be displayed withA pop-up window will be displayed with a default name for the site. Click a default name for the site. Click OKOK.. To access this site in the future, justTo access this site in the future, just click on the Favorites item in the browser click on the Favorites item in the browser

menu and highlight the name for the menu and highlight the name for the website. You will go directly to the website. You will go directly to the website. website.


Accessing Training Materials Accessing Training Materials (cont’d)(cont’d)

Review the instruction page to understand how to use the websiteReview the instruction page to understand how to use the website

Click on the Click on the CoursewareCourseware link at the top of the Instruction page link at the top of the Instruction page

A A Listing of CoursesListing of Courses will be displayed will be displayed

Click on the Click on the Course TitleCourse Title to see a general description of the to see a general description of the content of the coursecontent of the course

oror

Click on one of the buttons beside the Course Title to go directly to Click on one of the buttons beside the Course Title to go directly to either the either the Overview, Quick Reference Cards, Overview, Quick Reference Cards, oror Tutorials Tutorials

These training materials will be available for your use and These training materials will be available for your use and reference at any timereference at any time


Running TutorialsRunning Tutorials An additional learning tool is being provided with the Phase II SAP An additional learning tool is being provided with the Phase II SAP

implementation -- implementation -- TutorialsTutorials Tutorials are simulations of the SAP system that take you through a Tutorials are simulations of the SAP system that take you through a

transaction step-by-step in a mock SAP environment transaction step-by-step in a mock SAP environment These can be viewed in two ways:These can be viewed in two ways:

► As a movie that takes you through the transaction in a demonstration, orAs a movie that takes you through the transaction in a demonstration, or► As an interactive, hands-on practice session that stops at each step and As an interactive, hands-on practice session that stops at each step and

directs you to make entries in fields or take actions per instructions directs you to make entries in fields or take actions per instructions provided by the provided by the wizardwizard and in the and in the bubblesbubbles

Tutorials are provided with each course in the Finance and Purchasing Tutorials are provided with each course in the Finance and Purchasing trainingtraining

A list of the tutorials is provided at the end of each course.A list of the tutorials is provided at the end of each course. Go to the Training Materials website to access and run these tutorials. Go to the Training Materials website to access and run these tutorials.

Detailed instructions are provided on the website when you click on Detailed instructions are provided on the website when you click on the Tutorials buttonthe Tutorials button

Happy Tutoring!!


Training SandboxTraining Sandbox

An SAP environment An SAP environment (Training Sandbox)(Training Sandbox) where you can practice your where you can practice your skills in a real instance of SAP will be available after mid-Juneskills in a real instance of SAP will be available after mid-June

The sandbox can be accessed through the standard logon process The sandbox can be accessed through the standard logon process discussed in discussed in Lesson 2Lesson 2 of the of the SAP Basic NavigationSAP Basic Navigation course course

The only differences are:The only differences are: Highlight the Training environment on Highlight the Training environment on

the logon padthe logon pad Click logonClick logon Enter Enter 520520 in the Client field in the Client field Enter the same User Id and Password Enter the same User Id and Password

you are assigned for Productionyou are assigned for Production

Feel free to practice any of the tasks in the basic navigation course and Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the any of the transactions included in other courses you take. Use the Quick Reference CardsQuick Reference Cards to walk you through the transactions. to walk you through the transactions.


COURSE SUMMARYCOURSE SUMMARY Congratulations!!Congratulations!! You have completed the Finance & Purchasing You have completed the Finance & Purchasing

Overview and have reviewed the following Overview and have reviewed the following topics:topics: SAP system and integrationSAP system and integration Tarrant County implementationTarrant County implementation TerminologyTerminology High level functionality:High level functionality:

General LedgerGeneral Ledger Accounts Receivable Accounts Receivable Accounts PayableAccounts Payable Asset AccountingAsset Accounting ControllingControlling Grants ManagementGrants Management Funds Management Funds Management Materials ManagementMaterials Management

Getting HelpGetting Help Accessing training materialsAccessing training materials

You are now ready to complete your role-specific You are now ready to complete your role-specific training coursestraining courses

Finance & Purchasing Overview 1 Finance and Purchasing Overview.

Documents

Transcript of Finance & Purchasing Overview 1 Finance and Purchasing Overview.