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

Business Blueprint Analysis

Goals
Determine UTs 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 UTs 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)

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).

Financial Accounting
Enterprise Structure General Ledger
Chart of
Accts UT

Assets
Liabilities

Company Code
UT

Fund
Balances
Revenues
Expenditures

Financial Accounting
Enterprise Structure - Controlling
Company Code UT

Cost Center
E011024001

Functional Area Instruction

Profit Center L011002401

Chemistry

Fund E011024001

Business Area
Cur Unrest E&G Knoxvil e

Fund Center U011002401

Chemistry

Financial Accounting
Enterprise Structure Project Systems
Company Code UT

Functional Area Research

Profit Center L011002401

Chemistry

WBS Element
B01001024

Fund
B01001024

WBS Element
R011024010

Fund
R011024010
Business Area
Cur Rest E&G Knoxvil e

Fund Center U011002401

Chemistry

Financial Accounting
Enterprise Structure Procurement
Univ of
Tennessee
UT

Company code

Central
Purch.Org.
UT

Purch. Organization

Knoxvil e
K

Plant

Storage
location

Depart.
K001...

Chattanooga
C

Martin
M

Memphis
H

UTSITullahoma
T

Depart...
C001...

Depart...
M001...

Depart...
H001

Depart...
T001

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 Treasurers 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 UTs 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 AuCs) 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
activity

Doc. Type
/Method

Low/Low

$3M

P-Card

High/Low or High

Note

Req.

N/A

Request for Quotation

($2,000><10,000)
Optional
>$10,000 Required

Purchase
Orders

Funds
Avail.
Checking

Goods
Receipt

A/P-or
Department

N/A

N/A

N/A

N/A

Accts. Payable

Outline-Value
(WK)

N/A

N/A

Release
Orders
(NB)

Yes

Yes

Depts.

N/A

Blanket
(FO)

N/A

N/A

Accts. Payable

Yes

Yes

Yes

Department

N/A

N/A

N/A

Department

Yes

Yes

N/A

Accts. Payable

High/Low

Note

Outline-Value
(WK)

N/A

Low/High
(incl. Assets)

Note

Purchase
Order (NB)

Yes

High/Low

$100M

NonPurchase
Order

N/A

Personal
Services

Purchase
Order or
External
Order

Yes

Facilities /
Construction

Purchase
Order or
External
Order

Library-Books

Out of Scope

Yes
N/A

InsuranceContracts
Utilities
T-Club

Out of Scope

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Financial Accounting
In Scope

Business Fit

Financial Accounting
General Ledger
Special Purpose Ledger
Asset Management
Cash Management
Controlling
Funds Management
Project Systems
Accounts Payable
Materials Management
Purchasing

Sales and Distribution

Billing for sponsored projects
Accounts Receivable
A/R for sponsored projects
Travel Management
Travel Expenses

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Financial Accounting
Business Fit
Out of Scope
Inventory Management
Real Estate Management
(Facilities)
Investment Management
Internal Orders
PS Networks (scheduling,
resources, tasks, etc)
General Accounts Receivable
(only sponsored receivables in
scope)

Purchasing Material Master

Purchasing B-to-B
Functionality (in RFP)
Archiving

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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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