Master data

MAGIC PROJECT WORKSHOP AGENDA

FIN_GL_01 G/L MASTER DATA

PROJECT IDENTIFICATION

Project Name CPI/Project Number Project Type (CBI, Implementation, CSS, Upgrade, Internal, other)

MAGIC Implementation

Customer Name Customer Number Planned Start/Finish

State of Mississippi 600260

SAP Customer Partner Project Sponsor Program Manager

SAP Project Director Customer Project Director Partner Project Manager

Bill Bevil Becky Thompson

WORKSHOP DESCRIPTION

Workshop Name

FIN_GL_01 G/L Master Data

Workshop Purpose / Focus

Date Time Location

November 1, 2011 8:30 to 4:00 pm Regions Bank Bldg, 1420 Conference Room

WORKSHOP PARTICIPANTS

Facilitators Scribe

Mike Palvisak

Invitees

▪ Diane Langham ▪ Melissa Womack ▪ Margaret Jordan ▪ Jim Hurst ▪ Donna McFarland ▪ Shauna White ▪ Tessa Turner

▪ Janice Begin ▪ Simon Cherny ▪ John Cunningham ▪ Tamara Hillary ▪ Rene Montes ▪ Joshua Tillman ▪ Teresa Hayes

2

▪ Kay Martin ▪ Stephen Smith ▪ Michael Martin ▪ Robbie Coleman

▪ Bob Lowery ▪ Frances Davis ▪ Jessica Morris ▪ Nancy Jennings

WORKSHOP AGENDA

Time Agenda Item Presenter/Facilitator

15 Key Concept Review of the Split Processor decisions Mike Palvisak 15 Key Concept Review GL length, smart numbering

strategy Mike Palvisak

15 Account groups Mike Palvisak 20 Reconciliation accounts

-Assets -Customers -Vendors -Loans

Mike Palvisak

10 Fixed Asset number range reservations -Full Accrual range -Modified Accrual range

Mike Palvisak

5 Debt accounting number ranges Mike Palvisak 15 BREAK 15 Retained earnings/Fund balance accounts posting Mike Palvisak 30 SAP Master Data tabs and required fields

-Type/Description -Control Data - Information

Mike Palvisak

15 Authorization Groups Mike Palvisak 20 Field Status groups Mike Palvisak 45 Requirements traceability matrix references Mike Palvisak 10 Commitment Item assignment from GL Mike Palvisak 10 Cost Elements assignment from GL Mike Palvisak

ACTION ITEMS From previous workshops

Action Item Assigned to… Due Date

3

PRELIMINARY PROCESS INFORMATION

WORKSHOP DOCUMENTATION Item Description

ATTACHMENTS Item Description

Department of Finance and Administration Office of the Mississippi Management and Reporting System

Workshop Presentation – FIN_GL_01 G/L Master Data

November 1, 2011

1/3/2012 1

1. Workshop Ground Rules 2. Workshop Guiding Principles 3. Workshop Objectives 4. Workshop Agenda in Detail 5. Workshop Roles 6. Workshop Content 7. Workshop Wrap-up

1/3/2012 2

AGENDA

1/3/2012 3

• All participants should be familiar with the requirements and the topics to be covered;

• The workshop scribe is responsible for documenting the parking lot

issues and follow up questions; • The workshop facilitators are responsible for keeping the discussion

centered on the topic being discussed. If an issue is determined that cannot be resolved during the workshop, the facilitator will note the issue for future resolution and enter it into the workshop output document; and

• Parking of discussion item if the required knowledge is not in the

room.

Workshop Ground Rules

Workshop Guiding Principles

1/3/2012 4

Workshop Participant

– Demonstrate how requirements are met using Standard SAP functionality

– Utilize standard SAP functionality (80/20 rule)

– Avoid the “what won’t work” mindset

– Be attentive and open minded

– Explore questions and answers

– Encourage input from other participants

– Refrain from absolutes and mandates

– Focus on current issue being discussed

– Avoid “war stories”

– Manage cell phone, pagers & interruptions

– Keep the conversations to one at a time

Essential to dos: • Review Business Process Model • Update/Create process Flow

Diagrams • WS Output Documents • Identify RICEFW Objects • Document process

changes/implications • Solution Manager:

•Create Business Blueprint documents

• Identify Issues and Risks

Workshop Objectives

1/3/2012 5

• Reach agreement on: • Validate Balance Sheet/Operating design and splitting • G/L high level numbering and Account Group design • Understand required fields in G/L creation, master data access is controlled by security access to transactions • Understand Commitment Item and Cost Element relationships to the GL creation

• Next steps and assignments/timetables for G/L design

Workshop Agenda

1/3/2012 6

Date

Topics

Deliverables

Team Finance G/L

November 1, 2011

1. Key Concept Review of the Split Processor decisions

2. Key Concept Review GL length, smart numbering strategy

3. Account groups

4. Reconciliation accounts

5. Fixed Asset number range reservations

6. Debt accounting

Agree on the high level General Ledger design, length of field, smart numbering, account groups, reconciliation accounts, authorization groups, and field status. Assign design responsibilities and delivery dates to the appropriate SoMS personnel.

Workshop Agenda

1/3/2012 7

Date

Topics

Deliverables

Team Finance G/L

November 1, 2011

7. SAP Master Data tabs and required fields

8. Authorization Groups

9. Field Status groups

10. Commitment Item assignment from GL

11. Cost Elements assignment from GL

12. Requirements traceability matrix references

Agree on the high level General Ledger design, length of field, smart numbering, account groups, reconciliation accounts, authorization groups, and field status. Assign design responsibilities and delivery dates to the appropriate SoMS personnel.

Blueprint Workshop - Roles

1/3/2012 8

SAP Facilitator Mike Palvisak

Customer Facilitator Michael Martin

Scribe Tessa Turner

OCM Joshua Tillman

A successful workshop is the result of interaction and participation!

1/3/2012 9

1. Key Concept -Split Processor splitting and balancing decisions

• Recommended splitting and balancing dimensions

• Business Area • Fund • Grant

• Provides full financial statements and balance sheet reporting

1/3/2012 10

1.1 Splitting document example

Entry view New General Ledger view

1/3/2012 11

1.2 Balancing document example

1/3/2012 12

2. Key concept - GL length using smart numbering strategy, 8 digits recommended

Balance Sheet and Operating Statement

G/L starting account

GL ending account

Assets 10000000 19999999

Liabilities 20000000 29999999

Fund Balance 30000000 39999999

Revenues DOR Taxes Other Taxes

40000000 40010000 40850000

49999999 40399999 40999999

Expenses & Transfers Salaries, Wages &

60000000 60000000

89999999 60299999

Conversion & Other 90000000 99999999

1/3/2012 13

General Ledger Accounts for each bank account used with automated processing in SAP

• 1XXXX00 = Equity in Pooled Cash

• 1XXXXX0 = Main Bank Account • 1XXXXX1 = Regular Deposits • 1XXXXX2 = Incoming ACH • 1XXXXX3 = Incoming Wires • 1XXXXX4 = Incoming Credit Cards • 1XXXXX5 = Returned Items • 1XXXXX6 = Outgoing Checks • 1XXXXX7 = Outgoing ACH • 1XXXXX8 = Outgoing Wires • 1XXXXX9 = Other

2.1 GL length using smart numbering strategy for bank account future growth

1/3/2012 14

2.2 GL requirements

•G/L account is created to record financial transactions & the source of related postings •Source systems (other business transaction documents) will not immediately post to FI, such as requisitions, POs, funds reservations

• Budget posts in Funds Management using FM objects and FM documents

1/3/2012 15

3. Account Groups

• During G/L creation, an account group assignment is required • Account group determines:

• The interval in which the account number must be in the correct number range

• Which fields are required and optional entries when creating and changing master records.

16

3.1 Account Groups – Balance Sheet •

1/3/2012 17

3.2 Account Groups – Operating accounts

1/3/2012 18

4. G/L Reconciliation Accounts • SAP keeps subsidiary ledgers in balance with the general ledger

• The subsidiary ledger has one or more reconciliation accounts in the general ledger.

• Financial statements are always current without having to transfer totals from the subsidiary ledgers to the general ledger

1/3/2012 19

Balance Sheet and Operating Category

G/L Account Description

Assets • Checks Issued Reconciliation • Deposits Received Reconciliation • Inter-fund Cash Clearing • Accounts Receivable Reconciliation • Fixed Assets Reconciliation • Accumulated Depreciation

Liabilities • Goods Receipt/Goods Issued (GR/IR) • Accounts Payable Reconciliation

Fund Balance/Equity • Investment in General Fixed Assets

Revenues

• Proceeds from Asset Sale • Asset Sale Clearing • Gain on Sale of Fixed Assets (Modified)

Expenses • Depreciation Expense • Capital Outlay • Gain/Loss on Sale of Assets (Full)

4.1 G/L Reconciliation Accounts (not all-inclusive)

4.2 GR/IR Reconciliation account example

1/3/2012 20

1/3/2012 21

5. Fixed Asset number range reservations



GL ending account

Assets P P & E (Full) P P & E (Modified)*

16100000 17100000

16999999 17999999

Fund Balance Investment in General Fixed Assets*

33700000

33799999

Revenues Gain on Disposal

46040000

Expenses & Transfers Capital Outlay Depreciation Exp Loss on Disposal

63100000 78900000 78990000

63999999

*New account range

1/3/2012 22

6. Debt Accounting number ranges

Debt Service GL Accounts G/L starting account

GL ending account

Corporate Debt Securities, at Cost Corporate Debt Securities, at Market Corporate Equity Securities, at Cost Proceeds from Bonds and Notes State Aid Road Funds - Debt Service Loan Principal on Other Indebtedness Interest on Notes and GO Bonds Interest on Other Indebtedness (including lease-purchases)

11010000 11020000 11030000

47000000

64372000 65020000 65030000 65040000

47130000

1/3/2012 23

6.1 Retained Earnings/Fund Balance accounts



GL ending account

Fund Balance Restricted Unrestricted net assets Investment in General Fixed Assets* Reservations & Restricted

33500000 33600000 33700000

34050000

33599999

33799999

39900000

*New account range

Break

1/3/2012 24

1/3/2012 25

7. SAP Master Data tabs and required fields – Type/Description – Transaction FS00

1/3/2012 26

7.1 SAP Master Data tabs and required fields – Control Data

1/3/2012 27

Commitment Item creation will be discussed in topic 10 below

7.2 SAP Master Data tabs and required fields – Create/bank/interest

1/3/2012 28

7.3 SAP Master Data tabs and required fields – Key word/translation

1/3/2012 29

7.4 SAP Master Data tabs and required fields – Information (C/A)

1/3/2012 30

7.5 SAP Master Data tabs and required fields

1/3/2012 31

7.6 SAP Master Data – Fund – Transaction FM5I

1/3/2012 32

7.7 SAP Master Data – Fund – Transaction FM5I

Assign Budget Period

Fund Classification

1/3/2012 33

7.8 SAP Master Data – Other FM master data Functional Area - FM_FUNCTION

Funded Program -FMMEASURE

Funds Center FMSA

1/3/2012 34

8. Authorization Groups

• System needs to ensure that only authorized individuals have access to the system and update data

•Authorization group permits access to multiple data objects

•To pass an authorization test for an individual object, the user must satisfy the authorization check for each field in the object

•Authorization groups required for the General Ledger maintenance

1/3/2012 35

8.1 Authorization Groups access to FI accounts

1/3/2012 36

9. Field Status Group •The field status groups available are grouped together in a field status variant and assigned to the company code

•Fields can have the following statuses to apply on the JV screen: •Optional entry - you can enter data in the field •Mandatory entry - you must enter data in the field •Suppressed - the field does not appear

•Examples used as Optional, Mandatory or Suppressed are: •Invoice reference - Cost Center •WBS - Internal Order •Sales Order - Business Area •Business Area - Fund

1/3/2012 37

10. Commitment Item assignment to FM

•The Commitment Item master data must be created before the G/L creation if assigned here, such as a roll-up Commitment Item

1/3/2012 38

10.1 Commitment Item – Transaction FMCIA

1/3/2012 39

11. Create Cost Element during G/L maintenance

1/3/2012 40

11.1 Create Cost Element during G/L maintenance

1/3/2012 41

12. Requirements Tracking Matrix

1/3/2012 42

12.1 Master Data Ownership at SoMS

• What is the request process for new Master Data?

• Who will own Finance Master Data/timetable? •General Ledger •Business Areas

• Who will own Funds Management Master Data/timetable? •Fund •Functional Area •Funded Program •Funds Center •Commitment Item

Let’s verify that we are on the same page… Clarify any Strange Jargon

Validate Parking Lot Items

Record Key Decisions

Wrap-up

1/3/2012 44

+’s

What worked well today?

∆’s What can we improve for future meetings and project activities?

Plus/Delta

Questions

1/3/2012 45

Thank you!

1/3/2012 46

MAGIC Project WORKSHOP MINUTES/ OUTPUT DOCUMENT

FIN_GL_01 General Ledger

PROJECT IDENTIFICATION

Project Name CPI/Project Number Project Type (CBI, Implementation, CSS, Upgrade, Internal, other)

MAGIC Implementation

Customer Name Customer Number Planned Start/Finish

State of Mississippi 600260

SAP Customer Partner Project Sponsor Program Manager

SAP Project Director Customer Project Director Partner Project Manager

Bill Bevil Becky Thompson

GENERAL INFORMATION Workshop Title FIN_GL_01 General Ledger Workshop Facilitators Mike Palvisak and Michael Martin Process Owner Diane Langham Scribe Tessa Turner

ATTENDEES Name (including Role/Organization) Email Phone Michael Martin (DFA/MMRS) Mike Palvisak (SAP) Diane Langham (DFA/OFM) Susan Dodder (DFA/OFM) Tricia Ledford (DFA/MMRS) Kay Martin (DFA/MMRS) Bettie A. Fulgham (DFA/OFM) Robert Johnson (DFA/OFM) Cindy Ogletre (DFA/OFM) Margaret Jordan (DFA/OFM) Sarah Prewitt (DFA/OFM) Dianne Sturgis (DFA/OFM) Betty L. Smith (DFA/OFM) Melissa Womack (DFA/OFM) Nekeida McSwain (DFA/OFM) Stephen Smith (DFA/MMRS)

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Lee Womack (DFA/OFM) Kathy Piazza (DFA/OFM) Tessa Turner (SAP) Darryl Bowen (DFA/OFM) Rene Montes (STA)

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SUMMARY OF THE MEETING REFERENCE

DOCUMENTS FOR DETAILS REFER TO THE FOLLOWING BUSINESS PROCESS DESIGN DOCUMENT

GR/IR (goods receipt / invoice receipt) What do the transactions mean to MAGIC? In SAP, control for access provides access to transaction codes. It is not necessary to remember these transaction codes, as you can navigate to them through the main menu. Favorites can be created in a file folder for transactions you don’t want to memorize. The transactions represent the drop down menus and you can arrange them alphabetically or numerically

Question on Budget period master data- we’ll have a fund that must post from one fiscal year to the next, we don’t want to put its validity to the subequent year 6/30/YY because you only want it to be able to post to/ close out through July and August of the old year. SAP: Wouldn’t give fund the new budget year. If you knew you wouldn’t be posting beyond 2012 you would not give it a 2013 posting ability. You can do a mass change/ batch change, running a batch change for the budget period will be discussed in the Budget session. Mass update for updating the budget period on the fund master for budget period is available.

CAFR function- Want CAFR function as an attribute of the fund

Budgetary function- Want budgetary function as an attribute of the fund

Long text- you can view it but can you pull reports from it? If someone was indecisive on which GL account to use and wanted to find out more information on the different accounts without having to go through the master data and read through every description then a report on the long text would be helpful.

Authorization groups – ensures only authorized individuals have access to the system and update data- this is now a part of the Blueprint. Once we get the Blueprint template, then the security will be further discussed. Right now access will just be for people to add, change, and control master data – will be people like Diane and Melissa. Diane requested a security overview and we will look at scheduling one with her team.

With projects, you can let the agency create those, so for the creation of the WBS element, it is critical that the funding element is correct.

Is Business Area associated with the fund? No it is associated with the agency.

Requirements Tracking Matrix- Mike selected key RTM numbers where SAP functionality met the requirement and provided slides to demonstrate.

625074- System provides the ability to accumulate costs at User-defined levels of the Chart of Accounts. The user has the ability to determine what data fields they want to see (remove grant field, only view functional area, etc.) Diane believed the requirement was met, but not with this specific example.

625075- System provides ability to activate or inactivate Chart of Accounts elements based on effective date. You can lock it down so no one can post to it. Can budget period be blocked as well? Will be discussed in FM.

Shared fund concept- is this going to be a big change impact for Mississippi? Or will it change at all?

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DECISIONS ANSWERED REFERENCE

DOCUMENTS FOR DETAILS REFER TO THE FOLLOWING KEY DECISION DOCUMENT

High level General Ledger design was agreed to according to the presentation deck. The G/L length will be 8 characters.

Diane agreed the Business Areas, Funds and the General Ledger master data will be ready to load in the development client by mid January. Michael Martin will coordinate with Melissa Womack to meet this timetable.

DFA will be the owner of the Finance-related master data. There was not a decision on the ownership of the project-related master data & whether agencies will control it.

CHANGE IMPACT ITEM AREA IMPACTED 3 way matching and 1 GR/IR account Shared fund concept

ID ACTION/PARKING LOT ITEM OWNER DUE DATE FIN_GL_01-1 Review- SAP recommended splitting and balancing on Business

Area (Agency), Fund, and Grant. Follow up- Diane understood that we would also be splitting on project (WBS) in sandbox (Mike, Tamara, Diane, Rene). Diane requested a clarification on this topic.

M. Palvisak 11/3/2011

FIN_GL_01-2 (closed)

Batch job for changing budget period assignment to the Fund- (To be discussed in budget sessions)

M. Palvisak FIN_FM_01

11/1/2011 FM transaction provided after the session


CAFR function- Want CAFR function as an attribute of the fund. M. Palvisak 11/1/2011 noted for the development object


Budgetary function- Want budgetary function as an attribute of the fund.

M. Palvisk 11/1/2011 noted for the development object

FIN_GL_01-5 Long text was available to update in the GL master data, however can you view it and pull reports from it?

M. Palvisak 11/3/2011

Requirements for Blueprinting session FIN_GL_01

REQ ID REQUIREMENT625217 System has the ability to provide for the maintenance of funds on the GAAP and statutory fund structure.625231

transaction source.

625282 System provides the ability to search transactions on-line in real-time by various Chart of Accounts elements and document numbers (e.g., voucher number, purchase requisition number, purchase order number, etc.).

625287 System provides the ability to produce a report supporting periodic forecasting.

625289System provides the ability to calculate unclaimed property balance by Chart of Accounts element fields (e.g., Sub-object, Fund, etc.).

625290 System provides the ability to view daily balances on-line.625297 System provides the ability to provide on-line drill-down of journal entries.

625300System provides the ability to reconcile control accounts between modules/ledgers based on user-defined criteria.

625347System provides the ability to establish control accounts to maintain a balance between various systems (GA, AP, AR, etc.).

625349System provides the ability to make mass changes to journals and copy journal information to use for similar/recurring transactions.

625377System has the ability to permit the use of Chart of Accounts templates for transactions that use a common Chart of Accounts but differing transaction amounts (e.g., distribute a dollar amount by percentage).

627028 System provides the ability to maintain trust fund transactions regarding: Date requested and date issued

627029System provides the ability to maintain trust fund transactions regarding: Unit and Name of person requesting

627030 System provides the ability to maintain trust fund transactions regarding: Payee if different than requestor627031 System provides the ability to maintain trust fund transactions regarding: Amount627032 System provides the ability to maintain trust fund transactions regarding: Description627035 System provides the ability to maintain trust fund transactions regarding: Justification (250 characters)627036 System provides the ability to maintain trust fund transactions regarding: Approvals627100 System provides the ability to generate cash projections based on cash flow 'what if' analysis.627102 System provides the ability to maintain totals and subtotals of receipts and disbursements by month.627103 System provides the ability to retain history of receipt and disbursement dollar amounts.627104 System provides the ability to retain history of monthly projections.

627105System provides the ability to perform monthly projections using selected projection method (i.e., straight-line, proportionate allocation) down to individual item.

627106System provides the ability to combine multiple line items and apply projection parameters such as: change in billing/paying cycle from monthly to quarterly; change in tax rates; etc.

627107System provides the ability to prepare reports comparing cash flow projections to actual from line item to Agency level summary.

625067 System provides the ability to permit authorized users (State-wide and/or agency) to establish and maintain Chart of Accounts elements to meet state-wide and agency level accounting and financial reporting needs.

625068System provides the ability to establish and maintain Chart of Accounts elements in user maintained tables that do not require programming knowledge to establish or modify.






625069 System provides the ability to configure Chart of Accounts elements field lengths during installation.625070 System provides the ability to change Chart of Accounts elements field lengths on state budget year basis.

625071System provides the ability to meet state-wide and agency financial reporting needs through the Chart of Accounts

625072 System provides the ability to record transactions at all levels of the Chart of Accounts

625073System provides the ability to identify General Ledger accounts by "account type," (asset, liability, fund equity, revenue, expenditure, etc.) on all transactions.

625075 System provides the ability to activate or inactivate Chart of Accounts elements based on effective date.

625077System provides the ability to use effective dating when adding or deleting Chart of Accounts elements (at all levels).

625078 System provides the ability to validate transactions based on Chart of Accounts element effective dates625083 System provides the ability to record revenues by revenue object code

625085System has the ability to provide an optional level of detail below the state-wide expenditure / revenue minor-object codes, established for use by individual agencies at their discretion. The agency codes should automatically roll up to statewide codes.

625086System has the ability to provide an optional level of detail below the state-wide general ledger account (Balance Sheet Accounts), established for use by individual agencies at their discretion. The subsidiary general ledger account should automatically roll up to the state-wide general ledger account (Balance Sheet Accounts).

625087System provides the ability to copy accounts from one organizational unit to another to facilitate Chart of Accounts element maintenance.

625088System provides the ability to upload Chart of Accounts element records from third party products, including but not limited to: Microsoft Excel, Microsoft Access, and other accounting packages.

625089System has the ability to provide for Chart of Accounts element names to have a long description of at least 250 alphanumeric characters.

625090System has the ability to provide for Chart of Accounts element names to have a short description of at least 50 alphanumeric characters.

625092System provides the ability to present summary or detail level data on any combination of Chart of Accounts elements based on user-defined parameters.

625093 System provides the ability to infer the GAAP funds (code and name) based on state fund code.625094 System provides the ability to have multiple ledgers that are able to be updated simultaneously.625096 System provides the ability to track contract and project numbers in GL for reporting purposes.

625099System provides the ability to define Chart of Accounts element segment combinations for cross validation.

625100System provides the ability to establish Rules to determine whether fields are required, optional, or not allowed

625152System provides the ability to maintain a history of changes to Chart of Accounts element segment definitions and characteristics.

625153 System provides the ability to maintain each fund a self balancing set of accounts.

625158System provides the ability to perform an available cash edit by Fund, project, grant, program, activity or group of Funds.

625159 System provides the ability to process transactions that are exempt from cash available edits.625164 System provides the ability to have multiple bank accounts in a single fund.625165 System provides the ability to record and maintain the non-financial data for each unique fund.625168 System provides the ability to record the Source of Revenue625169 System provides the ability to record Acceptable Uses for the fund625296 System provides the ability to view/report on detailed voucher information.

Master data

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