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Copyright © United Nations
Umoja Services Delivery Overview
Umoja Services Delivery Overview – Version 2
Last Modified: 3-Sept-15 1
Copyright © United Nations Copyright © United Nations
Agenda
Copyright © United Nations
Course Introduction
Module 1: Introduction to Services Delivery and Cost Recovery
Module 2: Services Delivery Master Data
Module 3: Service Order Management
Module 4: Sales & Distribution
Course Summary
Course Assessment
Course Survey
2
Copyright © United Nations Copyright © United Nations
Course Overview
The purpose of the Umoja Services Delivery Overview course is to provide an overview the Umoja Services Delivery process. The Services Delivery process in Umoja includes Property Management, Service Order Management, Sales & Distribution, Cost Recovery and Allocation processes.
Prerequisite Review
You should have completed the following prerequisite courses:
• Umoja Overview
• Umoja ECC Navigation
Course Duration: 2 hours
3
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Course Objectives
After completing this course, you will be able to:
• Explain the Cost Recovery principles and the different methods
• Be knowledgeable of the Services Delivery Process
• Explain from a high level Services Order Management and Sales and Distribution Process
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Agenda
Copyright © United Nations
Course Introduction
Module 1: Introduction to Services Delivery and Cost Recovery
Module 2: Services Delivery Master Data
Module 3: Service Order Management
Module 4: Sales & Distribution
Course Summary
Course Assessment
Course Survey
5
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Module 1 Objectives
After completing this module, you will be able to:
• Explain Services Delivery from a high level
• Explain the principles and six methods of Cost Recovery
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Introduction to Services Delivery
UN entities provide services under mandates for other internal UN entities, external clients (includes UN entities without Umoja), and within its own entity. These services generally fall under the following categories:
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Note: Services Delivery will now encompass all property management processes. Please refer to SC119 Property Management Overview Course for this topic.
•These services may include HR, Financial, Facilities, Conference, Technology, Facilities
General Services
•Preventative, Periodic, and Reactive Maintenance e.g. Equipment or HVAC Repair
Maintenance Services
•Equipment Write-off, Impairment, Disposal
•Equipment Transfers, Assignment, Installation
Property Management
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How to determine it is a service?
When trying to determine whether an offering is a service, consider the following “can it be delivered internally, can it be procured, is it “non” material in nature.
Types of General Services:
• Human Resource Management – services that are broadly available to the UN Agencies such as training, medical and language services.
• Technology Management– Technology-based capabilities, such as email, wireless network, voice communications, and application hosting
• Financial Management– services that are typically back office functions such as cash and treasury management, payroll and financial accounting.
• Conference Management – Value-added activities to support the substantive program of work, such as conference facilities, security, catering, language and translation services.
• Facilities Management – cleaning, workspace remodeling, landscaping, furniture moving.
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Examples Types of Work & Services engaged by the UN
• At UNHQ, such work/services include
• Similar work/services are being provided by other duty stations
• Some work/services are more internally focused, while others are for general public & staff (i.e. Revenue Producing Activities)
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Common/Miscellaneous Services Garage Administration HR/Personnel/Counselling Services Book Shops
Records & Archive Help Desks Medical Services Public Information/Library
Catering Broadcasting Services Training Services Sales of Audio/Visual Products
Banking Services Special Events Sales of Publics/Ext. Publications
Commissary/Gift Center/Newsstand Building/Facilities Services Accounting Services Sales of Statistical Products
Mail, Pouch & Messenger Space Mgt. & Map/Drawing Services Financial/Treasury Services Visitor Services
Supplies Property Management Insurance Services
Travel/MovCon/Aviation Conference Services
Transportation PD Procurement Services
OIC
T
ICT Services Document Services
Warehouse Operations Publishing
Postal Services
OL
A
Legal Services DS
S
Security Services Interpreters/Translators
OC
SS
- C
om
merc
ial
Serv
ices
OC
SS
- F
acil
ity M
gt.
OH
RM
OP
PB
A
DP
ID
GA
CM
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Cost Recovery
Not all services provided by the service provider are covered by their allotted budgets. Therefore the provider must seek cost reimbursement from their clients (external or internal).
In Umoja, cost recovery transactions can be carried out in several ways; and charges can be applied at different stages of the service delivery process. The appropriate method to use depends on:
– whether the entity to be charged is an individual person on UN payroll, an organization “external” to the UN Secretariat or an organization “internal” to UN Secretariat;
– type of transactions;
– nature, volume and frequency of the service requests and/or services being provided; and
– type and regularity of the charges to be recovered.
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Major Benefits going forward
The benefits of a standardised cost recovery in Umoja:
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Prices/rates and services can be standardized, set and enforced globally
All payments to UN will be recorded against relevant revenue accounts, making it easier to track incoming revenue. For those that are considered as true cost recovery they will be posted to spendable-revenue accounts and re-allotted back to the budget owners
Support UN’s adoption of IPSAS, enabling accurate and compliant reporting on revenue generating activities (no netting of expenditure)
Work integration and streamlining - Instead of multiple invoices, a consolidated invoice can be issued to a customer for various services and/or for the same function/event
Improved budget information - a) A procurement activity on behalf of third party can be carried out without effect on the budget of the office who offers the service; and b) cost plans will be recorded for cost recovery instead of hidden as credits to expenditure.
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Cost Recovery Processes and Principles
• The Controller recently outlined the progressive implementation of a new approach to Service Cost Recovery and the related principles and processes in Umoja, which was circulated in December 2014 to all major entities who provide goods and services.
• These principles and processes will be the basis for all cost recovery processes and design. The next few slides will discuss the principles
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Cost Recovery Principles
# Principle
1
All recoveries will be recorded in Umoja as revenue (i.e., no netting of Expenses)
Internal chargebacks will also be recorded as revenue and then eliminated depending on intra-volume or inter-volume
– Non-spendable Revenue will be passed to Member States as per UN Financial Rules and Regulations as Miscellaneous Income
– Spendable Revenue can be allotted for additional expenditure
The determination of spendable and non-spendable revenue for each service/provider will be configured in Umoja in advance to the extent practicable, based on the approval of the Controller
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Spendable / Non-Spendable Revenue
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Non-Spendable Revenue
When budget is allotted to a service provider to provide services to a service recipient then there should be no cost reimbursement sought
Spendable Revenue
When there is no budget allotted or budget is allotted to the service recipient, then money recovered by the service provider shall be spendable
Spendable Revenue
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Cost Recovery Principles
# Principle
2
One of the challenges that some UN Service Providers and UN Service Recipients are facing is cash and liquidity issues
In Umoja, while commitments can be made and budgets can be consumed based on availability of funds, payments will not take place unless cash is also available in the relevant entity
System controls require that each fund and grant must have adequate cash available before a payment can be made
As interfund settlements happen automatically in Umoja, cash shortfalls cannot be covered by pending interfund settlements
3 • As such, any service provider or recipient who anticipates liquidity challenges will have to
seek the approval of the Controller, in advance, for setting up a cash management arrangement
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Cost Recovery Principles
# Principle
4
• The number of funds will be based on the financial statements, one fund per volume or entity with separate financial statement reporting requirements
• The period of the fund will follow the respective periods of the volumes
• Fund balances will be reviewed at the end of the period to determine whether balances can be carried forward to the next period
• All elements of coding block to be used to distinguish/isolate activities of different providers/services
• Allotments from spendable revenue need not go to budget officers, but funds movement to service provider by consuming budgets should not be done by service provider
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• The UN envisages a move towards a system of standardized services and rate structures
• This entails a move to a rate card and service cost approach which provides transparency to the cost recovery mechanism
• The relationship between Service Provider and Service Recipients will require pre-funding for services to be rendered, on the basis of cost plans, cash flow projections and service level agreements
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Cost Recovery Principles
# Principle
6
• To facilitate the implementation of the cost recovery mechanism, all service providers who use cost recovery shall seek prior approval of the Controller by providing the following information:
– Rate cards for services to be provided
– Cost Plans, including related budgets
– Liquidity forecasts/cash flow projections
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Selection of Appropriate Umoja Cost Recovery Methods
• Payroll deductions through Umoja Human Resources (HR) 1. Cost recovered from payroll?
• Charging internal cost centre or invoice external tenants for rent & lease-related items through Umoja Real Estate (RE)
2. Cost recovered from lease?
• Charging clients when Service Order is entered using Property Management (PM)
3. Ad-hoc service request with one-time cost to be recovered against it?
• Billing a client and create account receivable for an “external” client using Umoja Sales and Distribution (SD)
4. Cost to be invoiced to “external” clients directly?
• Post good issue against recipient's fund/cost center, or
• Use Stock Transport Order with recipient’s fund/cost center
5. Internal cost reimburse-ment in relation to good issue/transfer?
• Indirect Activity Allocation Cycle in Umoja Cost and Management Accounting (CO)
6. Cost to be charged to “internal” clients on a periodic basis?
HR
RE
PM
SD
LE
CO
The service provider selects the appropriate cost recovery method based on the activity and the client
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1. HR: Payroll Deductions
• Any expense to be recovered from staff member through payroll deduction, shall be recorded manually in or loaded onto Umoja Human Resources (HR)
• Payment or deduction can be one off or be applied periodically at an interval within the period specified
• Mass upload of payroll deduction records is possible through an FTP folder
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2. Real Estate (RE): Lease Out
• Any lease related cost recovery should be processed through the Umoja Real Estate (RE) module
– Lease Out – Internal should be created and used for lease related cost recovery from “internal” client (i.e. within Umoja)
– Lease Out – External should be created and used for lease related cost recovery from “external” client (i.e. external to Umoja)
• Condition Type is used to represent pricing element or item to be billed to the tenant (e.g. base rent , utilities etc.)
• Lease Administrator (RE.01) will be responsible for creating and administering the lease, including entering the Condition Type, Amount and Validity Period
• FM Approver (FM.02) role approve Lease Out - Internal
• Financial Accounting Senior User (GL/AP/AR) (FA.05) role will be responsible for posting and issuing of the invoice
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3. Service Order : Ad-Hoc Service Request
• Ad-hoc service requests should be handled through the Umoja Service Order Management process
• Once the request is received, a Planner will create a Service Order detailing the requirement of the client:
– Internal Services (activity type/rates)
– External requirements (Purchase Requisition/Framework Order)
– Material from Inventory
• The completed Service Order will generate costs in accordance with the order details, these may be charged against the Service Recipient’s budget.
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4. Sales & Distribution (SD): Billing Entities “External” to Umoja
• When billing an entity “external” to Umoja (i.e. other than lease) a Sales Order is created in the Umoja Sales and Distribution (SD) module
• The Sales Order is not a billing document.
• The Sales Order, when due, will be processed by a Financial Accounting Senior User (FA.05) to have an invoice issued and account receivable booked
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5. LE: Internal Goods Issue of Inventory/Transfer of Fixed Asset
• Goods Issue of Inventory
– Cost recovery happens automatically when issuing materials maintained in inventory in Umoja.
– The issuance happens at average moving price.
– Only possible in entities that use inventory management in Umoja.
• Transfer of Fixed Asset
– In order to perform cost recovery when transferring a fixed asset, an internal sale of the fixed asset needs to be recorded in the sending entity and a separate acquisition needs to be recorded in the receiving entity.
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6. CO: Internal Periodic Services
• Based on a Service Level Agreement or another form of formal agreement between the service provider and the service receiver.
• The agreement extends for a period of time and involves regular charges for services consumed at an established rate.
• Uses indirect activity allocation cycle to charge for the services.
• Multiple senders and receivers can be defined for the allocation cycle.
• Budget and cash are automatically consumed when executing the allocation cycle.
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Learning Checkpoint 1
Which of the following is NOT a method for Cost Recovery
Select the appropriate answer below:
A. CO: Internal Periodic Services
B. Service Order : Ad-Hoc Service Request
C. Bank Interest
D. HCM: Payroll Deductions
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Learning Checkpoint 1
Which of the following is NOT a Cost Recovery Method
Select the appropriate answer below:
A. CO: Internal Periodic Services
B. Service Order : Ad-Hoc Service Request
C. Bank Interest
D. HCM: Payroll Deductions
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Bank Interest is not a cost recovery method.
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Module 1 Summary
The key points covered in this module are listed below:
• UN entities provide services under mandates for other internal UN entities, external clients (includes UN entities without Umoja), and within its own entity
• Not all services provided by the service provider are covered by their allotted budgets. Therefore the provider must seek cost reimbursement from their clients this process is called cost recovery
• The six methods are:
– Payroll deductions through Umoja Human Resources (HR),
– Charging internal cost centre or invoice external tenants for rent & lease-related items through Umoja Real Estate (RE)
– Charging clients when Service Order is entered using Property Management (PM)
– Billing a client and create account receivable for an “external” client using Umoja Sales and Distribution (SD)
– Post good issue against recipient's fund/cost center, or Use Stock Transport Order with recipient’s fund/cost center
– Indirect Activity Allocation Cycle in Umoja Cost and Management Accounting (CO)
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Agenda
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Course Introduction
Module 1: Introduction to Services Delivery & Cost Recovery
Module 2: Services Delivery Master Data
Module 3: Service Order Management
Module 4: Sales & Distribution
Course Summary
Course Assessment
Course Survey
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Module 2 Objectives
After completing this module, you will be able to:
• Define Work Center
• Define Business Partner
• List the three condition types
• Explain plant and storage location
• Define Planner Group
• Explain activity types and rates
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Services Delivery: Master Data
• Master Data is fundamental business data that is common and applicable across multiple business functions, applications and transactions. The following are relevant to Services Delivery and Cost Recovery:
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Customer/ Business Partner
Material Pricing
(Material)
SKF & Rate (Activity Type)
For SD – Use with Customers external to Umoja
For PM/CS/CO: Use with Customers internal to Umoja
Allocation Cycle
Activity Type Work Center
SKF = Statistical Key Figures
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Work Center
A work center refers to the team responsible for performing the maintenance or service tasks in a particular plant. Depending on the nature of work or structure of the organization, a work center may be an individual department, a group of skilled craftsmen or a workshop. Every piece of equipment and functional location can be allocated to a work center to perform the maintenance tasks assigned to the object. The main functions of work centers are:
• Costing
• Scheduling
• Capacity Planning
Work Center
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Examples of Work Centers include:
Work Center
Work Center
• Construction Services
• Building Maintenance
• Facilities Management
• Electrical • Mechanical • HVAC • Water and Sanitation • Carpentry
Engineering
• Operations • Mechanical • Electrical • Body Shop • Tire Shop
Transport
• Telecommunication • Professional Services • Personal Computing • Network • Hosting • Email and
Collaboration • Application Support
IT
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Activity Type describes the services provided and are measured in units of time or quantity. Activity Types are used for recovering cost from clients considered “internal” to Umoja.
Activity Types are used in Service Orders to distinguish between real and statistical services. As mentioned in the previous module, Revenue that is Spendable does not need to be returned to the member states while Non-Spendable Revenue does.
Activity Type
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Activity Type
Activity Type Spendable / Non-Spendable Revenue Account
Real: N_ NSP
Real: R_ SP
Statistical: S_ SP and/or NSP
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Master Data: Statistical Key Figure
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A Statistical Key Figure (SKF):
• Is a quantity (for example, helicopter hours or square meters in a building)
• Is used to allocate costs during the month-end process. Quantities are first posted as a SKF (e.g. number of helicopter hours as they are incurred). At the end of the month, costs are calculated and allocated to the appropriate cost center
• It can be used for non-financial information that needs to be reported and is not recorded in any other system or required for cost allocation. For example, reporting the number of helicopter hours flown for a particular month at UNIFIL Aviation
Statistical Key Figure
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Activity types are tied to an appropriate work center by a rate. A rate consists of a Cost Center(s), Period(s), and the Amount(s). The Cost Center that is used for the Rate will match with the Work Center’s Cost Center.
Rates
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Rate
Period
Amount Cost
Center
Activity Type Work Center
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Cost Allocation Cycle
• A cost allocation where multiple senders allocate certain costs to multiple receivers based on the cost drivers or statistical key figures, including indirect activity allocation, assessment cycle and distribution cycle. It is normally run as part of the month-end closing process.
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Allocation Cycle
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Customer/ Business Partner
A Business Partner (BP) is an important Master Data element. It defines the person, group or organization with whom UN has a business interest.
Key components of the general BP Master Data include:
Business Partner
Unique ID number
Address, telephone number, email and
others
Currency, payment terms and payment
method
Payment Condition
Banking Information
Contact Information
BP Number
Banking details
Legacy System Reference#
Identification number
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Business Partner
Business partner (BP) record contains General Data utilized by all processes. BP Role Data is module-specific, and the UN Customer role data is used specifically with the Sales and Distribution Module. Below are the BP examples:
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Pricing
Condition Type
• Condition types are used to represent pricing elements such as prices, surcharges or handling fees in Umoja. They are:
- PR00 Price
- ZK07 Customer Administration Fee
- ZK09 Ship & Handling Fee
• Condition types are applied based on the key combination conditions and their validities specified in condition records
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Plant & Storage location
A plant is the location where materials are produced, purchased, stored, inventoried,
shipped, received and valuated or from which services are provided.
A storage location reflects the inventory owned by a particular Funds Center in a plant. It
also reflects the geographical locations that fall within the same plant.
One Funds Center can therefore have multiple storage locations.
However, no two Funds Center can share the same storage location.
Materials in inventory are managed in storage locations
Plant
PLANTS:
• Peacekeeping Mission, Special Political Mission • UNHQ • OAHs (UNON, UNOG, UNOV, etc) • Entities (UNEP, UN-HABITAT, etc)
STORAGE LOCATIONS:
• Plant-specific physical location • Site where goods are physically received and/or
stored • Site where “fund center” controls inventory – SAU for PK mission – Organizational Unit at HQ/OAHs (i.e. Section)
Storage Location
Material
Material
Material
Material
Storage Location
Material
Material
Material
Material
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• Each SD Planner belongs to a specific planner group. Planner Group is a group of employees responsible for the planning & processing of service requests and/or maintenance tasks in a particular Plant.
• Depending on the size and structure of your company, a Planner Group may be an individual department (for central work preparation), a group of skilled craftsmen or a workshop. There may be more than one Planner group in a particular plant.
• Every piece of equipment and functional location can be allocated to a Planner Group.
Planner Group
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Planner Groups may be responsible for a particular plant or on behalf of another plant if that plant does not have Planners. Each Planner group should utilize the appropriate Work Centers in each plant.
Planner Group
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Plant 2 Plant 1
Planner Group A
Planner Group B
Work Center 1
Work Center 2
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Learning Checkpoint 1
Planner Groups may be responsible for a particular plant or on behalf of another plant if that plant does not have Planners.
True or False? :
A. True
B. False
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Learning Checkpoint 1
Planner Groups may be responsible for a particular plant or on behalf of another plant if that plant does not have Planners.
True or False? :
A. True
B. False
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The statement is true because Planner Groups may be responsible for more than one plant.
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Module 2 Summary
The key points covered in this module are listed below:
• A work center refers to the maintenance team responsible for performing the maintenance tasks in a particular plant
• A Business Partner is an important Master Data element. It defines the person, group or organization with whom UN has a business interest
• Condition types are used to represent pricing elements such as prices, surcharges or handling fees in Umoja
• A plant is the location where materials are produced, purchased, stored, inventoried, shipped, received and valuated or from which services are provided. A storage location reflects the inventory owned by a particular Funds Center in a plant
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• Planner Group is a group of employees responsible for the planning & processing of service requests and/or maintenance tasks in a particular plant
• Activity Type describes the services provided and are measured in units of time or quantity. Activity types are tied to an appropriate work center by a rate
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Agenda
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Course Introduction
Module 1: Introduction to Services Delivery
Module 2: Services Delivery Master Data
Module 3: Service Order Management
Module 4: Sales and Distribution
Course Summary
Course Assessment
Course Survey
46
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Module 3 Objectives
After completing this module, you will be able to:
• Explain Services Order Management process
• Know the different ways services can be request
• Explain Service Order and Sub Service Order
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Service Order Management
• The service order management process handles all general and maintenance request between internal entities, within an entity or with external entities.
• Depending on the model to be adopted by various business units or entities, requests may be submitted via Umoja Notification, iNeed, gMeets email and/or telephone.
• Once the request is received, a Services Delivery (SD) Planner will create a Service Order, if necessary, with detail list of services to be provided by internal resources (i.e. Activity Type), services to be provided by external vendors (i.e. Service Master from established Procurement Contracts), stock items (i.e. Inventory) and/or non-stock items (i.e. Material Master)
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Roles & Responsibilities
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The following Umoja Enterprise roles are involved in the Services Delivery process:
SD Notification User
Responsible for creating, modifying, and canceling Umoja Notifications within the authorized Plant for:
• Equipment/property assignment, verification and write-offs
• Creation, change and/or update the equipment record
• General services to be provided by the UN and/or UN contracted vendors (for entities without iNeed)
SD Notification Approver
• Responsible for reviewing and approving/rejecting Umoja Notifications within the authorized Plant
• Directly update and/or cancel Notifications if not performed by Services Delivery Notification Users
• Review and ensure that the Notifications have been filled out correctly, with proper funding sources (if required) and in accordance with the service agreements (if established)
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Roles & Responsibilities
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The following Umoja Enterprise roles are involved in the Services Delivery process:
SD Planner
• Review the Notifications and generate Service Orders from these Notifications if required
• Create, plan cost, schedule and complete Service Orders
• Set equipment status for equipment related services
• Perform other Umoja transactions such as creation of Reservations, issue equipment or inventory, create and/or review Purchase Requisitions generated against the Service/Service Orders for procurement action
• Create, update and monitor the Task Lists, Maintenance Plans and Schedules
• Close Umoja Notifications upon completion of service provision
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Roles & Responsibilities
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The following Umoja Enterprise roles are involved in the Services Delivery process:
SD Order Releaser
• Review and ensure that the Service Orders are created correctly with appropriate activities and rates, funding sources and in accordance with the service agreements
• Approve Service Orders that do not require funding (i.e., internal cost recovery) from the Service Requestors
• Release Service Orders that have been approved
• Directly modify, update and/or cancel Service/Service Orders if not performed by Services Delivery Planner
• Review and Approve Task Lists and Maintenance Plans
• This Role has additional ability to update the Service Orders, maintain the equipment record (assign equipment and change the status/location), create and modify the material reservation, and schedule activities (date and duration) of the Service/Work
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Service Request
A Service Request informs the service provider that a specific service is requested.
All Service Requests should be processed through the Umoja Service Order Management process. Depending on the model to be adopted by various location and type of service, Service Requests may be submitted via:
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• Umoja Notification: Service Notification
• iNeed: Centralized service request system
• Email and/or telephone: External customers – Sales Order
• gMeets: Entities requesting for Conference Services that have this system
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Service Request
Entity with iNeed General & Maintenance Service Request: External Entity General & Maintenance Service Request: Entity without iNeed General & Maintenance Service Request:
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iNeed Request Service Order
Notification Service Order
Email/phone Service Order
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Service Order
Service Order
• Is used as part of Services Delivery process to handle general services and maintenance for entities internal or external of Umoja
• Tracks planning, scheduling, execution and completion of work
• Utilized as a cost collector and to bill other UN entities by defining the appropriate cost center
• Is created by SD Planner with reference to a Service Request whether it is a Umoja Notification, iNeed request etc.
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Service Order
Sub-Service Order
• Can be created in reference to a Main Order
• Is needed when cost need to be divided or allocated between different cost center or external entity
Example: When providing Conference Services for a UN entity and an agency outside of the UN, user will create a Sub-Service Order for each requester.
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Service Order Process
Create Service Order
Create Sub-Service Order
Approve Service Orders
Release Service Order
Service Order Confirmation
Complete Service Order
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The Service Order process with the responsible roles is as follows:
The next slides are some Services Delivery scenarios that go through the Service Order Management process.
SD Order Releaser SD.04
SD Planner SD.03 Funds Approver
FM.02 SD Planner SD.03
Note: If the service does not consume budget or is statistical, the Funds Approver does not need to approve the service order
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Services Delivery Scenario: Internal and External Client
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A UNON will provide conference services to a UN office and an external agency. Because there is more than one service requestor, costs should be billed separately via sub orders.
iNeed Request
Service Order
Sub Service Order
Process Service Order
1 2 3 5
Sub Service Order
Process Service Order
Sales Quotation/
Order
6 4 7
External Agency
1. The service requester request services from UNON through iNeed 2. A main service is created/approved/released to be used as a cost collector. 3. First Sub Order will account for services provided for the UN office 4. Second Sub Order will account for services provided for external agency 5. Sub order will process: necessary materials will be issue and labor is confirmed. Cost will
be settled against the service requestor’s cost center 6. Sub order will process: necessary materials will be issue and labor is confirmed. Cost will
be settled against the service provider’s cost center 7. Sales Quotation Order will be created against the sub-service order. Once the client
accepts, a Sales Order is created to bill external agency for the actual amount
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Services Delivery Scenario: Service Level Agreement
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iNeed Request
Service Order
Process Service Order
1 2 3
A UN entity has a service level agreement with ICT business unit to provide IT services. The agreement will define various conditions for providing services with specified financial and budgetary conditions; a fixed amount is billed as specified in the agreement.
1. The service request will be created in iNeed to inform ICT business unit to provide a specific IT service
2. A service order created and release. Cost will be posted to the ICT business unit since funds are budgeted
3. Once services are completed, settlement is done against the service requesters cost’s center
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Learning Checkpoint 1
Which is NOT a service request method?
Select the appropriate answer:
A. Umoja Service Notification
B. Skype
C. Email
D. gMeets
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Learning Checkpoint 1
Which is NOT a service request method?
Select the appropriate answer:
A. Umoja Service Notification
B. Skype
C. Email
D. gMeets
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The ways to request for services are Umoja Service Notification, iNeed, Email and/or telephone, gMeets
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Module 4 Summary
The key points covered in this module are listed below:
• All Service Requests should be processed through the Umoja Service Order Management process
– Umoja Notification
– iNeed
– Email and/or telephone
– gMeets
• Service Order used as part of Services Delivery process to handle general services and maintenance for entities internal or external of Umoja and tracks planning, scheduling, execution and completion of work
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Agenda
Copyright © United Nations
Course Introduction
Module 1: Introduction to Services Delivery and Cost Recovery
Module 2: Services Delivery Master Data
Module 3: Service Order Management
Module 4: Sales and Distribution
Course Summary
Course Assessment
Course Survey
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Module 4 Objectives
After completing this module, you will be able to:
• Explain the high level Sales & Distribution process
• List different types of Sales Documents
• Describe Sales Order
• Describe Quotation
• Describe Sales Contract
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Sales & Distribution
UN entities provide services and sell and/or donate materials to external clients. UN entities must be able to collect and bill their costs. Therefore, the UN utilizes the Sales & Distribution process to create Sales Documents and invoice costs to the external client.
The following are Services Delivery scenarios that relate to Sales and Distribution:
• Sales Order for Donation & Free of Charge
• Advaced Payment Request and Billing Plan
• Credit/Debit Memo
• Return Order & Processing of Returned Goods
• Sales Consignment Order
• Thrid-Party Procurement
• Resource Related Billing RRB Order
• Sales Order upload through iDocs for Commercial Activities
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Note: For more detailed information about Sales & Distribution, please refer to the SC391 Sales & Distribution course.
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Roles & Responsibilities
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The following Umoja Enterprise roles are involved in the Services Delivery process:
Sales & Distribution Master Data Maintainer
• Verifying a Business Partner
• Creating and maintaining Pricing Conditions
• Create standard texts for quotations, contracts, orders and invoices
• Create, delete, update and expire standard rates/pricing and pricing conditions
• Create, delete, and update Activity Type rates
Sales & Distribution User
• Create requests, quotations, contracts and orders
• Update requests, quotations, contracts and orders
• Cancel requests, quotations, contracts and orders
• Enter planned and/or actual usage quantities/charges (i.e., Statistical Key Figures) for period end execution of cost allocation cycle
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Roles & Responsibilities
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The following Umoja Enterprise roles are involved in the Services Delivery process:
Sales & Distribution
Approver
• Review and approve or reject requests, contracts, quotations and orders
• Update requests, contracts, quotations and orders if not return to Services Delivery User for modification
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Sales & Distribution Process
The high level Sales & Distribution process is as follows:
Sales Contract
Delivery Billing Sales Order Sales
Quotation
Note: There are variations to the process above based upon the different scenarios:
• There are pre-sales activities which include Sales Quotations and Contracts that may or may not be involved
• Notifications and Service Orders may be used as reference in creating Sales Documents
These will be discussed later in the course. Also for more details on the Delivery and Billing processes please refer to the Logistics and Financial Accounting courses.
Within this process, users, customers, materials/services and pricing conditions in the SD module are structured/categorized based on sales areas, which consist of Sales Organization, Distribution Channels and Divisions.
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SD User (SD.05) / SD Approver (SD.06)
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Sales Documents
There are Sales Documents that will be used in Umoja are:
Sales Order Quotation Sales Contract
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Sales Order
Sales Order
• A sales order is an electronic document that records an External Customer’s request and requirements of materials or services to be sold
• The sales orders contain all information needed to process the customer’s requests in the sales order processing phase and the subsequent phases of the customer order management cycle
• During processing of the sales order document, appropriate sales-related information is pulled from the customer master records, the material master records, and the condition master records (pricing/output)
• The sales document type controls the choice of documents that will be used in the follow-up delivery (delivery type) and billing processes (billing type)
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Sales Order
Sales Order
The UN Standard Order can be created directly or as reference again:
• Service or Maintenance Order
• Disposal Notification
• Sales Contract
• Quotation
• Other UN Standard Order
• Grant (i.e. for billing purpose)
Note: A Sales Order is not a billing document. When due, it will be processed by a Financial Accounting Senior User to have an invoice issued and account receiver booked.
Sales Order
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Quotation
Quotation
• A pre-sales activity where the entity creates a legally binding offer with a customer to deliver a product or provide a service within specified time and with certain fixed conditions
• The quotation typically includes information such as the customer name, validity date, prices, quantity delivery date and location of the goods or services inquired by the customer
• The information in a quotation document can be referenced or converted into a sales order document once accepted
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Sales Contract
Sales Contract
• A sales agreement that contains special conditions negotiated with an External Customer, for example, price, target value or target quantity
• A sales contract is valid for a specified period
• A sales order can be submitted to release products from the amount agreed in the contract
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Sales Order Types
Different Sales Order types are used for various scenarios:
• Standard Order (ZOR & ZOR1): Used in normal sales order processing. A delivery and invoice are the follow-up processing activities
• Customer Consignment Orders (ZKA, ZKB & ZKE): Used to initiate the consignment process. Consignment activities and documents will follow
• Return Order (ZRE): Used when materials are to be returned by the customer. A returns delivery and credit memo will follow
• Credit Memo Request (ZCR): Used to initiate the credit process. No delivery will follow. A credit memo will result during billing
• Debit Memo Request (ZDR): Used to initiate the debit process. No delivery will follow. A debit memo will result during billing
• Delivery Free of Charge Order (ZFD): Used when the customer will not be charged for the items on the order
• Resource Related Billing Orders (ZRB & ZRB2): Used when the customer is billed through a Service Order. The Activities, Materials & costs from the service order is transferred to the RRB Order for billing
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Quotation & Sales Contract Types
The Quotation types are:
• ZQ2 – UN Quotation – Manual
• Z1T – UN Quotation RBB
The Sales Contract types are:
• ZCN – UN Value Contract
• ZCN1 – UN Quantity Contract
• ZCN2 – UN Contract RBB
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Learning Checkpoint 1
What Sales Order type will be used for issuing credit memo request
<Instruction Text>
A. ZKA
B. ZFD
C. ZCR
D. ZDR
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Learning Checkpoint 1
What Sales Order type will be used for issuing credit memo request
<Instruction Text>
A. ZKA
B. ZFD
C. ZCR
D. ZDR
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ZCR is the Credit Memo Sales Order type.
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Module 4 Summary
The key points covered in this module are listed below:
• The high level Sales & Distribution process
• The Sales Documents are: Sales Order, Quotation and Sales Contract
• A Sales Order is an electronic document that records an External Customer’s request and requirements of materials or services to be sold
• A Quotation is a pre-sales activity where the entity creates a legally binding offer with a customer to deliver a product or provide a service within specified time and with certain fixed conditions
• A Sales Contract is a sales agreement that contains special conditions negotiated with an External Customer, for example, price, target value or target quantity
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Agenda
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Course Introduction
Module 1: Introduction to Services Delivery
Module 2: Services Delivery Master Data
Module 3: Sales & Distribution
Module 4: Services Delivery Scenarios
Course Summary
Course Assessment
Course Survey
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Course Summary
The key points covered in this course are listed below:
• The Services Delivery process in Umoja
• Cost Recovery and its principles and methods
• Relevant Master Data for Services Delivery
• The Services Order Management process
• The Sales & Distribution process
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Agenda
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Course Introduction
Module 1: Introduction to Services Delivery and Cost Recovery
Module 2: Services Delivery Master Data
Module 3: Service Order Management
Module 4: Sales & Distribution
Course Summary
Course Assessment
Course Survey
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Course Assessment
Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment.
To receive credit for completing this course, you must pass this assessment with a minimum score of 90%.
To complete the assessment you must return to the Learning Management System:
1. Log into Inspira
2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section
4. Click the Start link of the course assessment
5. Click the Submit button once you have completed the assessment
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Agenda
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Course Introduction
Module 1: Introduction to Services Delivery
Module 2: Services Delivery Master Data
Module 3: Sales & Distribution
Module 4: Services Delivery Scenarios
Course Summary
Course Assessment
Course Survey
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Course Survey
Your feedback is important to the continuous improvement of our training program.
Please complete the evaluation for this course using the following steps:
1. Log into Inspira
2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section
4. Click the Start link of the course survey
5. Click the Submit button once you have completed the course survey
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