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Master Data
(Financial)
PHASE II - Business Blueprint Interim Deliverable
This document defines a proposed enterprise structure and master data for the University within the
R/3 system. The organization structure is established to encapsulate and model the Financial, Human
Resources and Logistics data within the R/3 system. The proposed enterprise structure was modeled
after reviewing University financial reports, legacy system documentation, and best practices in
Higher Education as well as discussions with team members. It will be refined through a series of
meetings to discuss the business goals, organizational structure, and the high-level business
processes to be included in the University of Tennessees SAP R/3 system.
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Enterprise Structure
The Enterprise Structure in R/3 refers to the organizational structure of the Institution. The organizational elements
in this structure allow encapsulation of configuration settings and data in each module. For example, the company
code organizational element encapsulates the financial accounting settings and data in the financial accounting
module for an enterprise.
Each element in the R/3 enterprise structure is defined below. The R/3 module in which each organizational element
appears is given in parentheses next to its name. The proposed University of Tennessee organizational elements are
given under each organizational element.
Client (Cross Application)
A client in R/3 is a technical entity containing configuration, master data and transactions for an
organization. For example the organization may designate Client 100 in the production system PRD as the
client in which data may be entered. Other clients may be used for development, testing and training.
Proposal: The University will have only one production client in the productive system Client 100.
Company Code (Financial Accounting - FI)
The Company Code is the smallest organizational unit for which a complete self-contained set of accounts
can be drawn up for purposes of external reporting.
Proposal: The University will use only one Company Code - UT.
Business Area (Financial Accounting - FI)
Business areas are units, within an institution, for which a balance sheet and income statement can be
produced. In higher education, business areas are typically used to represent fund groups such as Current
Unrestricted, Current Restricted, etc. for which balance sheets and income statements are required.
In addition to balance sheets by fund groups, the University of Tennessee requires a separate internal
balance sheet and income statement for each budget entity such as Knoxville, Martin, Chattanooga, etc.
Proposal: The University will have business areas which represent a unique combination of Fund Group
and Budget Entity. All existing fund groups and budget entities will be set up as business areas. For asset
and liability entries, these business areas will be entered by users. For revenue and expenditure entries, these
business areas will be automatically defaulted from cost centers and WBS Elements. The following is a
sample partial list of business areas identified:
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Fund Group
Budget Entity
01 Knoxville
Business
Area
1101
01 Knoxville
01 Knoxville
1301
2101
01 Knoxville
01 Knoxville
01 Knoxville
01 Knoxville
01 Knoxville
01 Knoxville
01 Knoxville
01 Knoxville
01 Knoxville
01 Knoxville
02 Space Institute
2301
3001
4001
4501
5101
5201
5301
5401
6001
9001
1102
04 - Chattanooga
04 Chattanooga
1604
2604
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Functional Area
1010
1020
1030
1040
1050
1060
1070
1080
1090
1100
1110
1120
1130
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Client
Company
Code UT
Business Area
Business
Business
Area Area
Cur Unres E&G
Knoxville
Functional Area
Functional
AreaArea
Functional
Instruction
Figure 1
Controlling Area (Controlling - CO)
A Controlling Area in R/3 is the organizational unit within an institution, used to represent a closed system
for cost accounting purposes. A controlling area may include one or more company codes which must use
the same operative chart of accounts as the controlling area.
Proposal: The University of Tennessee will use only one Controlling Area UT. Company Code UT will be
assigned to Controlling Area UT.
Funds Management Area (Funds Management - FM)
A Funds Management Area in R/3 is the organizational unit within an institution, used to represent a closed
system for funds management and budgeting. A Funds Management Area may include one or more
company codes and one or more controlling areas.
Proposal: The University of Tennessee will use only one Funds Management Area UT. Company Code
UT and Controlling Area UT will be assigned to Funds Management Area UT.
Figure 2 shows the relationship between the Company Code, the Controlling Area and the Funds Management Area.
Company Code
UT
Controlling Area
UT
Figure 2
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Funds
Management
Area UT
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Master Data
Master data structures in R/3 represent data relating to individual objects, which remain unchanged over an extended
period of time. This allows such data to be created once and used many times. Master data is also used to validate
and classify transaction data for reporting.
Chart of
Accts UT
Assets
Liabilities
Fund
Balances
Company Code
UT
Revenues
Expenditures
Figure 3
Proposal: At the University of Tennessee several different existing codes will be mapped to R/3 General
Ledger Accounts.
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Existing Code
1. Assets
AXXXXXXXX
(e.g. A17010001 Cash on Hand
Treasurer)
2. Liabilities
AXXXXXXXX
(e.g. A01560005 A/P Knoxville)
Liability Account
Expenditure Account
Revenue Accounts
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Company Code UT
Cost Center
E011024001
Fund E011024001
Business Area
Cur Unrest E&G Knoxvil e
Figure 4
Work Breakdown Structure Element (WBS Element) and WBS Element Group
A WBS element is an element in a project work breakdown structure (WBS) and is used as a revenue and
cost collector for activities with discrete start and end dates. At least one WBS element must exist in a
project. A WBS element can be linked to a company code, a business area, a functional area (through
substitution), a fund, a fund center and a profit center allowing all these codes to be defaulted when a user
enters a WBS Element in a document. Costs and revenues posted to a WBS Element can be automatically
posted to the company code, business area, fund, fund center and profit center linked to the WBS Element.
Additionally, collected costs may be billed or automatically transferred to cost centers or GL Accounts
periodically.
There is no standard hierarchy required for WBS elements. WBS Elements can be grouped together into
WBS Element Groups for reporting.
Proposal: The University will use WBS Elements to collect revenues and costs associated with costreimbursable grants, and all other funds other than current unrestricted funds. Thus WBS elements will be
used to collect revenues and costs for current restricted funds, endowment, annuity and life income funds,
plant funds, loan funds and agency funds. For example a balance account for restricted funds (B Account)
with a nine-digit number, will be represented by a WBS Element with a nine-digit number. The nine-digit
number will be created by replacing the fourth and fifth digit with two zeros. E.g. Account B01991024 will
be represented by WBS Element B01001024. An expenditure account for restricted funds (R Account) with
a nine-digit number will be represented by a WBS Element with a ten-digit number. The ten-digit number
will be created by adding a zero in the eighth position. E.g. Account R01102410 will become WBS Element
R011024010. Related B and R accounts as in the above case will appear in the same project structure.
Figure 5 shows the relationships between a WBS Element and other master data and organizational
elements.
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Company Code UT
WBS Element
B01001024
Fund
B01001024
WBS Element
R011024010
Fund
R011024010
Business Area
Cur Rest E&G Knoxvil e
Figure 5
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Assets GL Account
Assets Commitmt
Item
Liabilities GL
Account
Liabilities
Commitmt Item
Fund Balance GL
Account
Fund Balance
Commitmt Item
Revenues GL
Account
Revenue Element
Revenues
Commitmt Item
Expenditures GL
Account
Primary Cost
Element
Primary Cost
Commitmt Item
Secondary Cost
Element
Secondary Cost
Commitmt Item
Figure 6
Fund
A fund represents the lowest level of funding requiring a budget. The fund master includes an application
of fund and one or more sources of funds. Budget rules can be specified separately for each fund.
Proposal: The University will use Funds for storing the budgets and actuals for all its accounts. Only one
application of fund will be created for the Current Unrestricted fund group but individual Sources of funds
will be created to represent each account. The current unrestricted sources of funds will have the same
numbers as the cost centers representing such accounts (seven-digit or ten-digit number). For all other fund
groups an application of fund and a source of funds will be created for each account. These sources and
applications of funds will have the same number as the WBS Element representing such accounts (ten-digit
number). Attributes such as the Vice-Chancellor and Dean/Department codes will be entered into user
defined fields on the fund master.
Name:
________________
________________
________________
Title:
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Signature:
_______________
_______________
_______________
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Date:
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