ASAP Business Blueprint2

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Accelerated SAP - Business Blueprint[Customer logo]

ASAP Business BlueprintProject IRIS

Created by: Finance Team

Date of creation: May 25, 2000

Changed by:

Date of the last changes:

Version: Final

Report select options: Financial Team !siness l!eprint

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Accelerated SAP - Business Blueprint

Table of Contents

A. Organization............................................................................................................................................................10

1. Cross-application/central organizational units................................................................................................101.1. Client..............................................................................................................................................................101.2. Company........................................................................................................................................................101.3. Company Co e...............................................................................................................................................111.!. Business Area.................................................................................................................................................131.". #unctional Area..............................................................................................................................................1"1.$. #inancial %anagement Area..........................................................................................................................1$1.&. Controlling Area............................................................................................................................................1&1.'. Pro(it Center...................................................................................................................................................1'1.). Plant...............................................................................................................................................................20

2. Procurement........................................................................................................................................................222.1. Purc*asing +roup...........................................................................................................................................22

2.2. Purc*asing ,rgani-ation................................................................................................................................233. Sales and Distribution.........................................................................................................................................2

3.1. Sales Area......................................................................................................................................................2&3.2. Sales organi-ation..........................................................................................................................................2&

!. Pro"ect management...........................................................................................................................................2#!.1. BS /lement Applicant................................................................................................................................31!.2. Person Responsi le (or BS /lement...........................................................................................................32

$. %inancial Accounting..........................................................................................................................................32".1. C*art o( Accounts..........................................................................................................................................32

. &reasur'...............................................................................................................................................................3$$.1. reasury.........................................................................................................................................................3"

(. )nterprise Controlling........................................................................................................................................3&.1. imensions.....................................................................................................................................................3$&.2. Currencies Consoli ation4............................................................................................................................3$

#. Asset Accounting.................................................................................................................................................3'.1. epreciation area...........................................................................................................................................3&'.2. C*art o( epreciation.....................................................................................................................................3''.3. Asset class......................................................................................................................................................3'

B. General settings.......................................................................................................................................................39

1. Currencies............................................................................................................................................................3*

2. +nits o, measurement.........................................................................................................................................!0

C. Master data..............................................................................................................................................................401. eneral master records......................................................................................................................................!0

1.1. %aterial %aster..............................................................................................................................................!01.2. Ser5ice %aster................................................................................................................................................!$1.3. Customer %aster Recor ...............................................................................................................................!'1.!. 6en or %aster Recor ..................................................................................................................................."21.". Ban78Ban7 irectory R8#I..........................................................................................................................."'1.$. a9es..............................................................................................................................................................$1

2. Procurement........................................................................................................................................................ 12.1. Buyer..............................................................................................................................................................$1

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2.2. Purc*asing in(o recor ...................................................................................................................................$22.3. Con itions......................................................................................................................................................$32.!. Source :ist.....................................................................................................................................................$$2.". %o el Ser5ice Speci(ications.........................................................................................................................$'2.$. %essage Con itions.......................................................................................................................................$)2.&. eli5ery A ress............................................................................................................................................&02.'. Release Strategy ;it* Classi(ication..............................................................................................................&22.). 6en or /5aluation.........................................................................................................................................&3

3. Sales and Distribution.........................................................................................................................................($3.1. ,utput.............................................................................................................................................................&"

!. Pro"ect management...........................................................................................................................................($!.1. Stan ar structures.........................................................................................................................................&"

!.1.1. Stan ar BS.........................................................................................................................................&$!.2. +eneral...........................................................................................................................................................&&

!.2.1. PS te9t.....................................................................................................................................................&&!.3. Project structure.............................................................................................................................................&'

!.3.1. Responsi le Cost Center.........................................................................................................................&'!.3.2. Re


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1.1.2.'. ransmission o( S*ipping @oti(ications........................................................................................13'1.1.3. +oo s Receipt.......................................................................................................................................13)

1.1.3.1. +oo s Receipt Processing..............................................................................................................13)1.1.3.2. +oo s Receipt Processing ;it* Re(erence....................................................................................1!1

1.1.!. In5oice 6eri(ication..............................................................................................................................1!!1.1.!.1. In5oice Processing ;it* Re(erence................................................................................................1!"1.1.!.2. In5oice ,5er5ie;...........................................................................................................................1!'1.1.!.3. In5oice Release..............................................................................................................................1"0

1.2. Internal Procurement @ot in scope............................................................................................................1"31.2.1. Purc*ase Re


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3.1.1. Internal Project Initiation......................................................................................................................2223.1.1.1. Prepare Business Case (or Project.................................................................................................22&3.1.1.2. Project Appro5al............................................................................................................................230

3.2. Planning.......................................................................................................................................................2313.2.1. Structure................................................................................................................................................232

3.2.1.1. Project Structuring.........................................................................................................................23'3.2.2. Re5enue Planning.................................................................................................................................2!'

3.2.2.1. Re5enue Planning in or7 Brea7 o;n Structure.........................................................................2"13.2.3. Cost Planning........................................................................................................................................2"!

3.2.3.1. Cost Planning in or7 Brea7 o;n Structure................................................................................2"&3.2.!. Planning ates......................................................................................................................................2$)

3.2.!.1. %anual BS ate Planning..........................................................................................................2&13.3. /9ecution.....................................................................................................................................................2&!

3.3.1. Project Release......................................................................................................................................2&!3.3.1.1. Project Release...............................................................................................................................2&&

3.3.2. Billing see S section4........................................................................................................................2'13.3.2.1. Billing Re


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!.3.1.3. 6en or o;n Payment Clearing...................................................................................................3"2!.3.2. In5oices an Cre it %emos..................................................................................................................3"!

!.3.2.1. 6en or ocument Par7ing.............................................................................................................3""!.3.2.2. Par7e ocument Posting [6en ors].............................................................................................3"&!.3.2.3. In5oice Receipt..............................................................................................................................3")!.3.2.!. 6en or Cre it %emo.....................................................................................................................3$2!.3.2.". ocument Re5ersal........................................................................................................................3$!!.3.2.$. %ass Re5ersal................................................................................................................................3$"!.3.2.&. Recurring /ntry..............................................................................................................................3$&!.3.2.'. Internal rans(er Posting................................................................................................................3$)!.3.2.). Internal rans(er Posting ;it* Clearing.........................................................................................3&0

!.3.3. 6en or Account Analysis.....................................................................................................................3&2!.3.3.1. 6en or :ine Item Analysis............................................................................................................3&2!.3.3.2. Balance Analysis............................................................................................................................3&3!.3.3.3. 6en or Account /5aluations.........................................................................................................3&"

!.3.!. 6en or Payments..................................................................................................................................3&$!.3.!.1. 6en or Payment Re


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!.".1.3. %anual Account Statement............................................................................................................!3)!.".1.!. C*ec7 eposit ransaction............................................................................................................!!2!.".1.". Cas*e C*ec7s...............................................................................................................................!!"!.".1.$. :oc7 o9 ?SA4..............................................................................................................................!!&

!.".2. ,utgoings..............................................................................................................................................!"0!.".2.1. Payment ;it* Payment Re


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!.&.".1. Preparing #iscal Eear C*ange ,perations....................................................................................."")!.&.".2. ,pen Commitment ocument Selection......................................................................................."")!.&.".3. e(ine rans(er Rules...................................................................................................................."$3!.&.".!. Commitments ocuments Carry (or;ar ......................................................................................"$!!.&.".". Reset Commitments Carrie #or;ar ............................................................................................"$!!.&.".$. #un Balance Carry (or;ar .........................................................................................................."$!!.&.".&. etermining Bu get Carry (or;ar ..............................................................................................."$"

$. e enue and cost controlling...........................................................................................................................$ *".1. Pro(it an Cost Planning.............................................................................................................................."$)

".1.1. Cost an Acti5ity Planning..................................................................................................................."$)".1.1.1. Copy Plan (rom Pre5ious Eear to Cost Center Planning..............................................................."&1".1.1.2. Copy Actual ata to Cost Center Plan..........................................................................................."&!".1.1.3. Re e(inition o( Plan 6ersion.........................................................................................................."&'".1.1.!. rans(er o( Personnel Costs..........................................................................................................."'0".1.1.". Primary Cost Planning #ull Costs4..............................................................................................."'2".1.1.$. Primary Cost Planning Prop.8#i9e 4............................................................................................."'"".1.1.&. Secon ary Cost Planning #ull Costs4..........................................................................................."'&".1.1.'. Secon ary Cost Planning Prop.8#i9e 4.........................................................................................")0".1.1.). Resource Planning..........................................................................................................................")3".1.1.10. Perio ic Reposting o( Plan ata..................................................................................................")"

".1.1.11. Plan Cost istri ution..................................................................................................................")'. Asset Accounting...............................................................................................................................................$**$.1. =an ling #i9e Assets.................................................................................................................................$0"

$.1.1. Asset %aintenance................................................................................................................................$0&$.1.1.1. Creation o( %aster Recor (or angi le Assets.............................................................................$0'$.1.1.2. Creation o( +roup Asset................................................................................................................$0'$.1.1.3. Asset %aster Recor C*ange.........................................................................................................$0)$.1.1.!. %ass C*anges................................................................................................................................$0)

$.1.2. Receipts.................................................................................................................................................$10$.1.2.1. Processing o( Asset Ac


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$.2.2. Receipts.................................................................................................................................................$30$.2.2.1. Ac


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5) Are all companies mana'ed in ; compan! codes and is ; inte'ration $sed

A


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A #here will e onl! one le'al entit! i.e. #he niversit! o" #ennessee. -lease see(ompan! a ove).

2) 6hat are the le'al reportin' re>$irements that these companies have to compl! with

A #he niversit! o" #ennessee m$st report to all its constit$ents $nder the ,tandardsiss$ed ! the Government Acco$ntin' ,tandards Board GA,B). #hese standards arec$rrentl! ein' $pdated and new statements 3: and 35 have to e implemented ! ;< 2002.;inancial acco$ntin' in"ormation is also incl$ded in the nte'rated -ostCsecondar! Ed$cation*ata ,!stem -E*) ,$rve!.

3) 6hich companies are re>$ired to $se a stat$tor! chart o" acco$nts "or reportin'p$rposes

A # is re>$ired to report to the ,tate o" #ennessee accordin' to the #ennessee 4i'herEd$cation (ommission #4E() (hart. #he onl! stat$tor! chart o" acco$nts is the #4E(chart o" acco$nts.

:) *o all companies $se the same operatin' chart o" acco$nts

A


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compan! code. #his compan! code will e assi'ned to the compan! = #= and controllin'area = #=.

5. (han'es to Existin' r'ani%ation

#he niversit! o" #ennessee c$rrentl! operates as a sin'le le'al entit! and will contin$eto operate in this manner $sin' a sin'le compan! code.

?. ,pecial (onsiderations

&one noted at this time

@. -ro ect ,peci"ic ( ,ection

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1/3/ !siness $rea"!estions:

1) ;or which enterprise entities do !o$ wish to create individ$al internal alance sheetsand/or pro"it and loss statements or other internal reports -lease provide details o" !o$rreportin' re>$irements.

A #he niversit! re>$ires "$ll internal alance sheets "or each o" its 21 $d'etin' entities !"$nd 'ro$ps. -lease see list o" entities. #he "$nd 'ro$ps are

11 ($rrent nrestricted)13 A$xiliar! nrestricted)1? 4ospital nrestricted)

21 ($rrent estricted)23 A$xiliar! estricted)2? 4ospital estricted)30 Endowment):0 Di"e ncome):5 Ann$it!)51 nexpended -lant ;$nds)52 -lant ;$nds "or etirement o" nde tedness)53 -lant ;$nds "or enewal and eplacement)5: nvested in -lant ;$nds)?0 Doans)90 A'enc! ;$nds)

-lease see (ode ,$pport "or a list o" $d'etin' entities. nder the c$rrent streamlinin' planthe n$m er o" entities ma! e red$ced.

2) Are there entities within !o$r enterprise that are not independent le'al entities $tthat !o$ treat as independent le'al entities

A &o.



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:) *oes the or'ani%ation have to prod$ce se'mented "inancial statements "or p$ licreportin' e.'. ;A,C1: in the ,)

A $ired. n addition to alance sheets !"$nd 'ro$ps the niversit! o" #ennessee re>$ires a separate internal alance sheet andincome statement "or each $d'et entit! s$ch as noxville Fartin (hattanoo'a etc.

#he niversit! will have $siness areas that represent a $ni>$e com ination o" ;$ndGro$p and B$d'et Entit!. All existin' "$nd 'ro$ps and $d'et entities will e set $p as

$siness areas. ;or asset and lia ilit! entries these $siness areas will e entered !$sers. ;or reven$e and expendit$re entries these $siness areas will e a$tomaticall!de"a$lted "rom cost centers and 6B, Elements.

2. &amin' (onvention

#he namin' convention "or the $siness area the "irst two characters represent the;$nd Gro$p and the third and "orth characters represent the B$d'et Entit!. ;or example

$siness area 1301 is ($rrent nrestricted A$xiliar! ;$nds 13) "or noxville 01).

3. *e"inition o" r'ani%ational nits

A $siness area is an or'ani%ational $nit within acco$ntin' that represents a separatearea o" operations or responsi ilities in a $siness or'ani%ation. n hi'her ed$cation$siness areas are t!picall! $sed to represent "$nd 'ro$ps s$ch as ($rrent nrestricted

($rrent estricted etc. "or which alance sheets and income statements are re>$ired.

:. Assi'nment o" r'ani%ational nits

$it! and taxes man$all! to $siness areas i" !o$ do this indirectl!. 6e will $sethe split led'er to assi'n $siness areas across these t!pes o" acco$nts.


&one


6e will need to $se the split led'er "or alance sheets ! $siness areas


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1/5/ F!nctional $rea

"!estions:

1) *o !o$ need to str$ct$re the pro"it and loss statement accordin' to "$nctional areascost o" sales acco$ntin') s$ch as prod$ction sales mar7etin'

A


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#he ;$nctional Area is an or'ani%ational $nit in Acco$ntin' that classi"ies theexpendit$res o" an or'ani%ation ! "$nction. #he ;$nctional Area is a :Ccharacter "ieldderived ! expendit$re postin's to cost centers and 6B, elements.


#he "$nctional area is assi'ned to the cost center master record. 6hen postin' to a6B, element the "$nctional area will need to e derived ! a s$ stit$tion r$le ased onthe 6B, master data record.


&one


;$nctional areas will need to e derived ! ( o ects s$ch as cost centers and 6B,elements. 6e will need to con"i'$re a s$ stit$tion r$le or $ser exit "or this "$nctionalit!.


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1/4/ Financial Management $rea

"!estions: 1) 6hich "inancial mana'ement ;F) areas do !o$ want to $se

A #he niversit! has a sin'le $ni"ied $d'et and onl! one compan! code. As s$ch onl!one ;inancial Fana'ement Area is necessar!.

2) *o !o$ re>$ire "inancial eval$ations "or individ$al compan! codes or across severalcompan! codes

A ;inancial eval$ations are needed onl! "or one compan! code.

3) 6hich leadin' c$rrenc! sho$ld e $sed "or "inancial eval$ations

A nited ,tates *ollar ,*)

:) At which intervals do !o$ eval$ate planned and act$al val$es months wee7s etc.)

A As needed on a real time asis

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1/ / Controlling $rea

"!estions:

1) Are !o$ $sin' one centrali%ed controllin' s!stem or do !o$ "ollow a decentrali%edapproach with several independent controllin' s!stems

A #he niversit! o" #ennessee will e $tili%in' one controllin' area. #he controllin' arearepresents a closed s!stem "or cost acco$ntin' p$rposes. ;or example internal costallocations cannot occ$r o$tside o" a sin'le controllin' area. Additionall! a controllin' areacan $se onl! one operational chart o" acco$nts.

2) -rovided that compan! codes $se the same chart o" acco$nts and "iscal !ear variantwhich compan! code s) do !o$ want to assi'n to !o$r controllin' area s)

A ne compan! code will e implemented and will e assi'ned to the controllin' area.

:) nl! i" !o$ intend to $se pro"it centers ,ho$ld !o$r or'ani%ation elon' to one pro"itcenter 'ro$pin' even i" !o$ intend to $se m$ltiple controllin' areas

A ne -ro"it (enter 'ro$pin' will exist within the niversit! o" #ennesseeIs enterprisecontrollin' area.

5) " !o$ wish to have $ni"ied (ontrollin' which c$rrenc! or c$rrencies are !o$ plannin'to $se

A nl! one c$rrenc! will e maintained in the ,A- /3 s!stem , dollars.

?) n which c$rrencies sho$ld !o$r (ontrollin' e ased A , *ollars

@) 6hich companies are 'oin' to wor7 with which chart o" acco$nt

A ne operational chart o" acco$nt will e $tili%ed eca$se one compan! code willrepresent the le'al acco$ntin' view o" the or'ani%ation. A sin'le compan! code can onl! eassi'ned to one chart o" acco$nts. #he niversit! expendit$re acco$nts need to map on aman!CtoCone asis to the #ennessee 4i'her Ed$cation (ommission #4E() chart o"acco$nts.

C% Template:

1. General Explanation

A (ontrollin' Area is the or'ani%ational $nit within an instit$tion $sed to represent aclosed s!stem "or cost acco$ntin' p$rposes. A controllin' area ma! incl$de one or morecompan! codes that m$st $se the same operative chart o" acco$nts as the controllin'area. #he niversit! o" #ennessee will $se onl! one (ontrollin' Area J #K. (ompan!(ode # will e assi'ned to (ontrollin' Area #

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-ro"it (enters will e assi'ned to cost center and 6B, element master records.#here"ore costs and reven$es posted to cost centers and 6B, elements area$tomaticall! posted to pro"it centers. -ro"it (enters can also e entered man$all! onseveral t!pes o" transactions.


-ro"it (enters will e maintained centrall! within the (ontrollerIs ""ice.


#here ma! e a desire "or -ro"it (enters to e set $p at the -rincipal nvesti'ator - )level to report pro"it/loss on all pro ects associated with a - .


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1/-/ 6lant

"!estions:

1) Are all plants in the same co$ntr! Dist the plants and co$ntries.

A All plants are in the nited ,tates. #here will e onl! one plant #he niversit! o"

#ennessee #).

2) 6ill ne'ative ,toc7s e allowed in an! plants " !es speci"! the plants.

A &o.

3) *o !o$ need special plants "or !o$r maintenance wor7 apart "rom the commonlo'istics plants

A


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All the camp$ses/plants will e assi'ned to a sin'le compan! code J #K.


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2/ 6roc!rement2/1/ 6!rchasing 7ro!p

"!estions:

1) ,hall p$rchasin' 'ro$ps represent individ$al $!ers or 'ro$ps o" $!ers " 'ro$ps o"$!ers provide a list o" 'ro$ps.

A -$rchasin' 'ro$ps will mainl! represent individ$al $!ers. 4owever the s!stem m$st econ"i'$red to accommodate 'ro$ps as well as individ$al $!ers..

2) -rovide a list o" $!er names.

A (hattanoo'ao ert Fa!es C *irector

Farcene 6eddin'ton C -$rchasin' A'ent6illiam FadewellC B$!er

4ealth ,cience (enter Femphis),teve owland C *irector+ictor (r$tch"ield C Asst *irectorOo Ann ($mmin's C -$rchasin' A'ent

ne% ,tan"ill C -$rchasin' A'ent An'ela -atric7 C B$!er

noxville

Ooseph ;ornes C Exec$tive *irector*an Alexander C Assoc Exec *irOerr! 6ade C Assoc Exec *irForris 6ilson C Assistant *irector #helma 4ilton C Fana'er *avid Far7s C ,r. -$rchasin' A'entDisa -ate C B$!er

Fartin&anc! Bacon *irector 6anda Gri""in C B$!er



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#$llahoma6ilma ane C Fana'er

#his list is s$ ect to chan'e ased on movement o" personnel and identi"ication o" additionalnonCtraditional $!ers not c$rrentl! associated with p$rchasin' departments.

C% Template:


A p$rchasin' 'ro$p represents either a B$!er or B$!er Gro$p o" an! p$rchasin'department in ,A- /3.

A p$rchasin' 'ro$p I999I will e de"ined and descri ed as InonCassi'nedI. #heassi'nment o" a p$rchasin' 'ro$p will e accomplished at the -$rchasin' departmentlevel ased on inp$t "$rnished at the camp$s locations.


#he namin' convention "or p$rchasin' 'ro$ps is#he plant code will e part o" p$rchasin' 'ro$p code

#he "irst letter identi"!in' the plant code "ollowed ! a 2Cdi'it n$m er01 *avid Far7s B$!er in noxville).


A list o" all identi"ied B$!ers has een provided "or each camp$s. Each $!er at eachcamp$s will e created as a p$rchasin' 'ro$p within /3.


Each $!er will e associated/lin7ed with his plant code. ,ee a ove.


nstead o" creatin' the $!er code $sin' the initials or name intelli'ent lo'ic) o" the$!er the $!erIs code will e de"ined in ,A- /3 as an alphan$meric code as speci"ied

in the namin' convention listed a ove.


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@. -ro ect ,peci"ic ( section

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2/2/ 6!rchasing (rgani ation



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"!estions:

1) 6hich p$rchasin' departments exist in !o$r enterprise

A #here are esta lished p$rchasin' departments on the camp$ses that ma7e $p theniversit!P i.e. noxville (hattanoo'a 4ealth ,cience (enter Fartin and the ,pacenstit$te at #$llahoma.

2) " there is more than one department that handles all p$rchasin' speci"! whichdepartment s) ne'otiates pricin' terms and conditions with !o$r s$ppliers.

A $e tothe Di rar!P and 2) the noxville Boo7store "or reCsale items.

n 'eneral all departments have dele'ated a$thorit! to ma7e p$rchases $p to Q2 000 witho$tapproval or oversi'ht "rom the -$rchasin' department.

:) 4ow do the departments share the tas7 o" proc$rin' the 'oods and services re>$ired! the or'ani%ation

A *epartments s$ mit approved re>$isitions to p$rchasin' "or processin'. -$rchasin'departments ta7e the necessar! actions i.e. e>$est "or $otes (ontract research etc.) tot$rn the re>$isitions into p$rchase orders. *epartments receive prod$cts. *isp$tes arehandled ointl! ! the -$rchasin' department and the ori'inatin' department. *epartmentsreceive invoices and "orward them to Acco$nts -a!a le "or processin' and pa!ment.

5) 6here do !o$ proc$re materials/services in !o$r enterprise

A -roc$rement is handled ! several means(entral p$rchasin' departments as o$tlined a ove.*epartments have proc$rement a$thorit! o" $p to Q2 000 witho$t iddin' or 'oin'thro$'h the -$rchasin' department.

A separate contractin' "$nction has een esta lished $nder polic! statement 130"or contracted services.#he noxville Di rar! has proc$rement a$thorit! "or p$rchases o" ac>$isitionsPi.e. oo7s periodicals etc.#he noxville Boo7store does its own p$rchases "or resale items.#he ;acilities -lannin' section is responsi le "or proc$rement o" capital itemss$ch as $ildin's ma or renovations etc.-$rchases $nder Q2 000 can e handled directl! ! the departments witho$t'oin' thro$'h a -$rchasin' department.

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?) 6hich materials/services do !o$ proc$re

A All materials s$pplies e>$ipment and services that the niversit! ma! re>$ire.

@) ;or which enterprise entities do !o$ proc$re materials/services Dist thesematerials/services.

A ;or the niversit! o" #ennessee

8) *o !o$ have corporate and locali%ed p$rchasin' "$nctions

A #he p$rchasin' or'ani%ation at each camp$s cond$cts p$rchasin' "$nctions "orp$rchases over Q2 000. #he departments place orders "or items $nder Q2 000.

9) *o !o$ ne'otiate vendor pricin' at a corporate or local level

A ($rrentl! prices are ne'otiated at each camp$s independent o" each other. &omechanism is in place "or contract ne'otiations "or p$rchases across camp$ses.

10) 6here do !o$ proc$re materials/services in !o$r enterprise centrall!

A ($rrentl! there is no "ormal central proc$rement "or all camp$ses across the s!stem

11) 6hich materials/services do !o$ proc$re centrall!

A ,ee n$m er 10 a ove

12) ;or which enterprise areas do !o$ proc$re materials/external services centrall! Dist

these materials/services. A #he niversit! does not proc$re centrall!.

13) 6here do !o$ ne'otiate centrall! a'reed contracts "or the p$rchase o"materials/services in !o$r enterprise

A Each camp$s ne'otiates their own contractsP however the contracts ne'otiated at onecamp$s ma! e $sed ! other camp$ses.

1:) ;or which materials/external services do !o$ ne'otiate "ramewor7 contracts

A &$mero$s too man! to list in this doc$ment. A list o" contract items can e "$rnished.

15) 6hich enterprise entities can release orders a'ainst these contracts

A #hro$'h the $se o" lan7et p$rchase order camp$s departments and the -$rchasin'department can iss$e orders a'ainst contracts.

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1?) *o !o$ want to have proc$rement in partic$lar enterprise areas/ $siness areas orprod$ct 'ro$ps separated

A &/A

C% Template:


A central p$rchasin' or'ani%ation identi"ied as J #K will e esta lished. Each camp$swill e identi"ied as a plant e.'. "or noxville 4 "or Femphis etc.). -$rchasin'activities will contin$e to ta7e place at the plant level.


-$rchasin' r'ani%ation will e de"ined as = #=.


ne p$rchasin' or'ani%ation as indicated a ove in n$m er 2.


#he p$rchasin' or'ani%ation J #K will e assi'ned to the camp$ses/plants indicateda ove.


#he a ilit! to centrali%e contracts in order to levera'e the $!in' power o" the niversit!

will e availa le. eports in"ormation sharin' and real time processin' will e anotherenhancements to the present or'ani%ation.


&/A

@. -ro ect ,peci"ic ( section

&/A

/ 'ales and Distrib!tion

C% Template:


#he invoicin' activit! at the niversit! o" #ennessee is done ! the illin' o""ice on eachcamp$s. #hese activities sho$ld e separated as s$ch.

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,ales r'ani%ation #his wo$ld e J #K and correspond to #Is compan! code.

*istri $tion (hannel #here wo$ld e one distri $tion channel set $p "or #. two$ld e J01K.

*ivision #here wo$ld e one division "or each camp$s illin' o""icecorrespondin' to the $d'et entit! code that is $sed to $ild the $siness areaP"or example 01 wo$ld e noxville 02 wo$ld e the ,pace nstit$te and 0:wo$ld e (hattanoo'a.

/1/ 'ales $rea

"!estions:

1) *o !o$ need to 7eep the sales activities o" partic$lar enterprise areas/ $siness areasor prod$ct 'ro$ps completel! separate

A ($rrentl! # distin'$ishes illin's etween camp$ses. #his is s$ ect to chan'e. #hereis tal7 that some camp$ses will e consolidated with others.

:) 4ow is illin' handled on each camp$s s it centrali%ed "or # centrali%ed "or eachcamp$s or somethin' else

A ;or the most part all illin' is handled ! the illin' o""ice on each camp$s. ,ome illin'is done ! departments speci"icall! "or research tests per"ormed primaril! at the Femphiscamp$s).

5) 4ow do !o$ distin'$ish which pro ects elon' to which camp$s A ($rrentl! this is distin'$ished ! pro ect n$m er. ,ponsors can e shared etweencamp$ses so !o$ cannot tell ! sponsor.

/2/ 'ales organi ation

"!estions:

1) 6ho is responsi le "or salesCrelated components in the material and c$stomer masterdata

A #he person who sets $p the contract. ($rrentl! that is done in the (amp$s B$siness""ice or (ontrollerIs ""ice.

2) s a c$stomer assi'ned to one sales $nit or can he e addressed ! several sales$nits

A ($stomers can e addressed on all camp$ses.



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3/ 6ro8ect management

"!estions:

1) 6ill !o$ e $sin' the -, mod$le " !es consider the -, or'ani%ationalre>$irements in the overall desi'n o" the or'ani%ation.)

A $ire"inancial reportin' or illin'. Gi"ts need to e distin'$ished "rom the Grants H (ontracts "or"inancial reportin'. #hese are c$rrentl! H B acco$nts. Gi"t "$nds do not 'o thro$'h the preCaward s!stem no E proposal n$m er).

Gi"ts "$nded ! endowments ; acco$nts) -eriodic income to the acco$nt comes"rom the interest distri $tion o" endowment investments a >$arterl! $sinessprocess).

Gi"ts "$nded ! o$tside so$rces An!one can 'ive Q10 000 or Q10 a month that theniversit! can spend as a 'i"t or set $p an endowment and invest the principle.

Acco$nt set$p is done ! *evelopment ""ice at the camp$s level.

Appropriations ,$%an #hompson)(enters o" Excellence receive "$ndin' "rom state appropriations. #hese do not 'o thro$'hpreCaward s!stem. (ost sharin' a$tomatic trans"er. E acco$nt cost center acco$nt) islin7ed to allocation.(hairs o" Excellence receive "$ndin' "rom endowments held ! the ,tate. &ot in preCawards!stem.

Endowments are ; acco$nts that are permanent restricted "$nds to hold principle amo$nts. "the amo$nt is less than Q15 000 it is not an endowment. nterest 'ets distri $ted to di""erent"$nds B acco$nts) so there ma! not e a 1 1 relationship etween ; and B acco$nts. #hisma! e a ( allocation or o$rnal entr! in /3. 4ow does ; acco$nt "it into 6B,str$ct$re A special endowment t!pe is (hairs o" Excellence receive "$ndin' "rom twoso$rces state appropriation and private 'i"ts).

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A'enc! "$nds Gail and +erna) incl$de lead tr$sts where the principal remains with thedonor contractor retaina'e on the vendor side) individ$als $nder'oin' transplant operations

deposits) *epartment o" #ransportation passCthro$'h "$nds where # is the "iscal a'entathletic to$rnaments and "raternities.

n the #reas$rerIs report appendix N ) there are approximatel! @5 active a'enc! "$nds.Fan! a'enc! "$nds are still open and need to e closed as part o" clean $p.GailIs a'enc! "$nds a o$t 10 active acco$nts a !ear) have similar re>$irements to the 'rantsH contracts except "or "inancial reportin' listed as separate "$nds eca$se mone! reall!

elon's to a'enc! 'ro$p). A reportin' re>$irement is to separate a'enc! "$nds "romniversit! "$nds eca$se these "$nds are not # expenses # acts as the an7). +ernaIs

"$nds ma! have di""erent re>$irements. #hese are c$rrentl! & expense) H - alance)acco$nts. GailIs a'enc! "$nds * 'o thro$'h the preCaward s!stem E proposal n$m er).(!ndieIs a'enc! "$nds a o$t 30 active acco$nts a !ear) act as a an7 holdin' acco$nt.Fonies and interest are held and provided ac7 to the a'encies. ;$nds are trans"erred o$t o"the retaina'e portion o" the amo$nt owed to contractors. Fone! is distri $ted to the a'enc!"$nd "rom an expended plant "$nd each month. #he niversit! needs to e a le to report the

alance in the "$nd o" the principle mone! pl$s the interest earned min$s an! withdraws todate. &o illin'P ma! need to settle "rom one "$nd to anotherP no cost plannin'P and noindirect costs. ($rrentl! - is the alance and & is the expense. Alwa!s a 1 1 relationship.)#hese a'enc! "$nds do not 'o thro$'h the preCaward s!stem.4iliahIs a'enc! "$nds n$m er a o$t 10 active acco$nts a !ear.#ransplant a'enc! "$nds mi'ht e mana'ed ! Femphis a o$t 10 active acco$nts a !ear).Gi"ts a'enc! "$nds and 'rants H contracts ma! want to have a lower level o" detail "or the6B, str$ct$re Devel 3s).

(omments helpR

2) *o !o$r pro ects sometimes span m$ltiple compan! codes

A &o. ne compan! code will e $sed.

5) #he o ect class is $sed "or reconciliation p$rposes. 6hich o ect classes are relevant"or !o$r pro ects

A &one

?) #he $siness area on a 6B, element m$st e associated with the compan! code onthe 6B, element. *o !o$r pro ects/6B, elements span m$ltiple $siness areas

A


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9) t is onl! possi le to re"erence one pro"it center on a 6B, element. *o !o$ havereportin' re>$irements "or pro"it center acco$ntin' that will impact !o$r pro ect str$ct$re

A ,ponsored pro ects and a'enc! "$nds #hese pro ects ma! e mana'ed ! (oC- s whoreside in di""erent pro"it centers colle'es/departments) there"ore the 6B, elements will e

ro7en down to the - responsi ilit! level.

(enters/(hairs ,ame as GH(

#here sho$ld onl! e one pro"it center "or all o" the other 6B, str$ct$res.

C% Template:


-, will e $sed "or primaril! the acco$ntin' o" restricted acco$nts. #his incl$des 'rantsand contracts 'i"ts endowments a'enc! plant appropriation/chairs/centers li"eincome and loan "$nds. n addition pro ects can e created "or other pro ect acco$ntin'p$rposes i" necessar!.


-ro ect de"initions and 6B, elements will e named the same wa! the! are c$rrentl! in#Is le'ac! acco$nt s!stem C ! acco$nt n$m er. #he alance acco$nt will e the

pro ect de"inition and the D1 6B, and the rev/exp acco$nts will e the D2.


6ro8ects-ro ects are tas7s with special characteristics #he! are 'enerall! complex $ni>$e and involve a hi'h de'ree o" ris7. #he! have precise 'oals that are a'reed on ! the niversit! and the orderin'part!. #he! are limited in d$ration and are cost and capacit! intensive. #he! are s$ ect to certain >$alit! re>$irements. #he! are mostl! o" strate'ic importance "or the compan! carr!in' them o$t.

9or rea do+n 'tr!ct!rene o" the "irst steps in pro ect plannin' is to rea7 down the wor7 into tas7s and set $p a

hierarch!.#he criteria !o$ $se to classi"! and divide tas7s var! dependin' on the t!pe andcomplexit! o" the pro ect.

n the -ro ect ,!stem !o$ can plan the or'ani%ation o" the wor7 and people in !o$rpro ect with the+or brea do+n str!ct!re ;9 '


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Endowments/Di"e ncome #hese are mana'ed ! the #reas$rerIs ""ice investment 'ro$p.#he "$nds elon' to the overall niversit!. #he #reas$rer wo$ld e the responsi le person"or each "$nd.

3/2/ 6erson Responsible for 9 ' =lement

"!estions:

1) *o !o$ assi'n responsi le people pro ect mana'ers) to !o$r 6B, elements " !es$se the = esponsi le person= "ield. " !o$ $se this "ield in the pro ect de"inition the 6B,elements inherit the val$e entered there.)

A ,ponsored pro ects and a'enc! "$nds #he o""icial responsi le person s) are $s$all! the-rincipal nvesti'ator pro ect mana'er) and the *epartment 4ead or *ean. 6e wo$ld alsoli7e to assi'n the departmental oo77eeper (ontrollerIs ""ice or (amp$s B$siness ""iceacco$ntant and preCaward administrator to each pro ect 6B, element).

(enters/(hairs ,ame as sponsored pro ect and a'enc! "$nds.

-lant "$nds #he responsi le person wo$ld e the same person who has expendit$rea$thorit! on the pro ect see a ove).

Doans Doans do not elon' to an individ$al $t to a camp$s. #he B$rsar "or each camp$swo$ld e the responsi le person "or a loan "$nd.

Endowments/Di"e ncome Endowments/Di"e ncome ; and G) acco$nts do not elon' to anindivid$al $t to the overall niversit!. #he #reas$rer wo$ld e the responsi le person "oreach o" these acco$nts. #he related expendit$re acco$nts and B) are associated withcamp$ses and colle'es or departments. #h$s the responsi le person "or the expendit$reacco$nts wo$ld e the dean or department head.

5/ Financial $cco!nting

5/1/ Chart of $cco!nts

"!estions:

1) 6hich companies $se the same chart o" acco$nts

A niversit! o" #ennessee will $se one chart o" acco$nts "or all entities. 6e c$rrentl! haveone compan! code. " compan! codes were added the! wo$ld $se the same chart o"acco$nts.

2) 4ow man! nat$ral acco$nts will each chart o" acco$nts contain estimated)

A Approximatel! 500

3) 6hat is the doc$ment n$m erin' lo'ic

A Assets will e 100000 thro$'h 199999



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Dia ilities will e 200000 thro$'h 299999;$nd Balance will e 300000 thro$'h 399999Expendit$res will e :00000 thro$'h :99999

even$es will e @00000 thro$'h @99999

:) *escri e how the acco$nt n$m er is set $p "or example department nat$ralacco$nt).

A All six characters will represent a nat$ral acco$nt. ther attri $tes will e handled in$siness area cost center pro ects etc.

5) 6ill the chart o" acco$nts need to e approved " so ! whom

A #he (hart o" Acco$nts will need to e approved ! the (ontroller "or the niversit!.

?) 6hich maintenance lan'$a'e sho$ld e $sed "or each chart o" acco$nts

A niversit! o" #ennessee chart o" acco$nts will e maintained in En'lish.

@) 6hich additional lan'$a'es do !o$ wish to $se "or !o$r charts o" acco$nts

A &one

8) -lease provide !o$r c$rrent (hart o" Acco$nts.

A #he niversit! o" #ennessee (hart o" Acco$nts is $nder contraction ! Bill #hompsonand (ontroller on Faples. An al'orithm "or c$rrent expense o ect has een developed. Aro$'h dra"t o" income acco$nts is ein' reviewed. $r c$rrent asset acco$nts are ein'reviewed. #Is led'er activities are ein' reviewed to e mer'ed into the appropriate place.

C% Template:


#he (hart o" Acco$nts is a list o" all G/D acco$nts $sed ! one or several compan!codes. #he niversit! o" #ennessee plans "or all camp$ses and $nits re"erred to as= $d'et entities= to $se the same chart o" acco$nts. ($rrentl! # plans to have onl! onecompan! code "or the entire $niversit! and = $d'et entities= will e represented !

$siness areas.

;or each G/D acco$nt the chart o" acco$nts contains the acco$nt n$m er acco$nt

name and the in"ormation that controls how an acco$nt "$nctions and how a G/D acco$ntis created in a compan! code.

#he niversit! o" #ennessee will $se the (hart o" Acco$nts "or external "inancialreportin'. #he chart will e derived "rom #Ms three distinct ta les "or transaction codes.

Additional chart records will e derived "rom attri $tes incl$ded in le'ac! income acco$nt/3 e>$ivalent to cost center) master records. #he activit! transaction code ta le "or

expendit$res is a =nat$ral acco$nt= and can e "o$nd in (ode ,$pport 15@ in the le'ac!s!stem. #he led'er activit! transaction codes are allowed onl! "or and also re>$ired on"$nd alance acco$nts at the transaction level. #he! relate to income expense and "$ndtrans"ers and will e mer'ed into the appropriate section o" #Is /3 chart. #hese codes



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#he niversit! c$rrentl! permits departments to add two additional di'its to expenseo ects "or there own p$rposes. #his is similar to $ser reven$e code and we will need todetermine a method to accommodate this need.

#he niversit! will need to determine i" the proposed /3 chart will compl! with there>$irements o" GA,B statements 33 3: and 35.


&A

4/ Treas!ry4/1/ Treas!ry

"!estions:

1) Are an7 statements a$tomated or man$all! processed

A ,ee Ban7 Acco$ntin' section.

2) 4ow is li>$idit! mana'ed


3) 4ow are cash in"lows and o$t"lows mana'ed


:) Are loc7 oxes $tili%ed


5) Are chec7s deposited man$all! or electronicall!


?) s a ill o" exchan'e $tili%ed as a "orm o" shortCterm "inancin' A ill o" exchan'e isan instr$ment $sed "or "inancin'. A c$stomer pa!s an invoice $sin' a ill o" exchan'e

transaction and is there"ore a le to extend his or her pa!ment period.


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/ =nterprise Controlling/1/ Dimensions

"!estions:

1) 6hich consolidation t!pes do !o$ want to set

A S T (ompan! (onsolidationSNT B$siness Area (onsolidationSNT -ro"it (enter (onsolidationS T ,omethin' else

2) *e"ine the dimensions that !o$ want in the s!stem.

A &/A

/2/ C!rrencies ;Consolidation$ipment not deprecia le) Asset (lass ? ,ensitive E>$ipment 100U depreciation immediatel!) Asset (lass @ n"rastr$ct$re 5C50 !ears) Asset (lass 8 E>$ipment 5L !ears) Asset (lass 9 A'ric$lt$ral Fachiner! ) Asset (lass 10 +ehicles :C12 !ears) Asset (lass 11 Di rar! 4oldin's not deprecia le) Asset (lass 12 ,o"tware amorti%ation) Asset (lass 13 (omp$ters H -eripherals Asset (lass 1: 6or7s o" Art H 4istorical #reas$res not deprecia le) Asset (lass 15 Divestoc7 not deprecia le) Asset (lass 1? Government wned -ropert! not deprecia le) Asset (lass 1@ Deased E>$ipment


r'ani%ational $nits a ove will e attached to the # controllin' area and the #compan! code.


&/A

./1/ Depreciation area"!estions:

1) s there a distinction necessar! etween oo7 depreciation "or external alancesheet) and tax val$es "or a tax alance sheet)

A &o

2) *o !o$ re>$ire additional parallel val$ations "or !o$r assets e.'. "or consolidatedval$ation "or cost acco$ntin' p$rposes or "or stat$tor! reasons " so please speci"!

A E>$ipment B$ildin's and n"rastr$ct$re Boo7 tax and ;HA can e the same.

5) *o !o$ need to record depreciation "or p$rposes other than oo7 depreciation Acco$ntin' depreciation ,pecial reserves "or special depreciation

A E>$ipment sin' oo7 depreciation "or the ;HA rate proposal.B$ildin's -lan to $se oo7 depreciationDand &/A



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?) *o !o$ want the val$es "or these other viewpoints to e derived "rom the oo7depreciation area or another depreciation area "or example the cost acco$ntin' depreciationarea can e derived "rom indexed oo7 depreciation val$es)

A E>$ipment #he val$es m$st e the same.B$ildin's #he val$es m$st e the same.

./2/ Chart of Depreciation

"!estions:

1) n which co$ntries do !o$ mana'e "ixed assets

A nl! ,A

2) Are there an! stat$tor! asset val$ation re>$irements that wo$ld involve parallelval$ation in !o$r "inancial acco$ntin'

A All Assets &o

./ / $sset class

"!estions:

1) *escri e how !o$r "ixed assets are str$ct$red in the alance sheet

A Assets are cate'ori%ed in the "ollowin' areas land $ildin's improvement other than$ildin') e>$ipment li rar! holdin's livestoc7.

2) 4ow do !o$ classi"! !o$r "ixed assets at the moment 4ow do !o$ intend to classi"!!o$r assets in the "$t$re

A Asset (lass 1 Dand not deprecia le) Asset (lass 2 Dand mprovements 1? !ears) Asset (lass 3 B$ildin's 10 to 80 !ears) Asset (lass : Assets $nder (onstr$ction A$() "or B$ildin' not deprecia le) Asset (lass 5 Asset $nder (onstr$ction A$() "or E>$ipment not deprecia le) Asset (lass ? ,ensitive E>$ipment 100U depreciation immediatel!) Asset (lass @ n"rastr$ct$re 5C50 !ears) Asset (lass 8 E>$ipment 5L !ears) Asset (lass 9 A'ric$lt$ral Fachiner! ) Asset (lass 10 +ehicles :C12 !ears) Asset (lass 11 Di rar! 4oldin's not deprecia le) Asset (lass 12 ,o"tware amorti%ation) Asset (lass 13 (omp$ters H -eripherals Asset (lass 1: 6or7s o" Art H 4istorical #reas$res not deprecia le) Asset (lass 15 Divestoc7 not deprecia le) Asset (lass 1? Government wned -ropert! not deprecia le) Asset (lass 1@ Deased E>$ipment

3) 6ill !o$ mana'e "inancial assets in the asset acco$ntin' s!stem

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A E>$ipment $ipment ,trai'ht line is re>$ired C $se"$l li"e ! asset class. ,ee answer 2 a ove.B$ildin's ,trai'ht line is re>$ired C $se"$l li"e ! asset class. ,ee answer 2 a ove.Dand &/ A

n"rastr$ct$re

/ 7eneral settings

1/ C!rrencies

C% Template:

1. e>$irements/Expectations

#he niversit! o" #ennessee will post all transactions in , *ollars. #here"ore we willnot have a c$rrent need "or exchan'e rate calc$lations or maintenance.

2. General Explanations

All doc$ments within /3 will e posted in , *ollars.

3. ,!stem (on"i'$ration (onsiderations

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,* will e the onl! c$rrenc! posted in compan! #.

:. ,pecial (onsiderations

&one noted at this time

5. -ro ect ,peci"ic ( ,ection

&/A

2/ >nits of meas!rement

C% Template:


#he a ilit! to $se an! $nit o" meas$re that wo$ld e applica le to proc$rements o"vario$s t!pes o" materials.


3. ,!stem (on"i'$ration (onsiderations

Addition o" the #Cspeci"ic $nits o" meas$res identi"ied ! the vario$s p$rchasin'activities across the niversit!.

:. ,pecial (onsiderations

#he $se o" alternative $nits o" meas$re witho$t a material master.

5. -ro ect ,peci"ic ( ,ection

&/A

C/ Master data1/ 7eneral master records

1/1/ Material Master

"!estions:

1) 6hich departments/or'ani%ational $nits are responsi le "or maintainin' the materialdata

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A Faterial Faster will not maintained.

2) s master data common across all departments common master data)

A &o material master data will e maintained in the s!stem.

3) 6hat is the de"a$lt sales $nit in sales processin' and what are alternative sales $nits

A &/A

:) 6hich t!pes o" materials do !o$ distin'$ish etween examples accr$als >$antit!str$ct$res)

A ($rrentl! do not distin'$ish etween material t!pes.

5) 4ow do these t!pes di""er re'ardin' $siness processes stoc7 mana'ementproc$rement sales and so on) data maintained and persons responsi le

A Faterial Faster will not e maintained.

?) *o !o$ 'ro$p similar prod$cts to'ether "or example in divisions or material 'ro$ps)

A &o

@) *o !o$ maintain additional stat$ses "or !o$r materials s$ch as sales stat$s)

A &o

8) " !o$ have m$ltiple plants is !o$r material normall! s$pplied ! a speci"ic plant

A &o

9) *o !o$ maintain additional t!pes o" 'ro$pin' "or other processes "or example re atestatistics commission or pricin')

A &o

10) s the creation o" a m$ltiClevel hierarch! necessar! "or materials prod$ct hierarch!) A $antit! on !o$r materials " so what happensd$rin' sales order processin' i" a violation occ$rs

A &o and do not elieve that this wo$ld e applica le

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A &o

32) 6hat t!pes o" texts do !o$ maintain "or !o$r materials

A &one at this time

33) -lease descri e the process "or creatin' and addin' to material data. ncl$de releaseproced$re/stat$s important se>$ences a$tomatic noti"ications wor7"low) responsi ilitiesa$thori%ations involved s!stems and so on.

A ;ormal process not in place

3:) *escri e the chan'e process "or materials.

A &o process in place

35) 6hich crossCplant and plantCspeci"ic material stat$ses are necessar!

A As inventories are not in scope none needed at this time.

3?) *o !o$ need to c$stomi%e the appearance o" or add data "ields to the materialmaster record additional "ields c$stomi%ed material master "ield selection and c$stomerCspeci"ic "ield chec7s)

A Faterial master will not e maintained.

3@) *o !o$ $se classi"ication "or !o$r material masters ;or what reasons storin'

addition in"ormation search "$nctionalit! or variant con"i'$ration) A &o material master maintained.

38) *o !o$ classi"! standardi%ed parts ! loadin' * & classes and characteristic datarecords

A &o

39) *o !o$ have di""erent val$ation techni>$es "or example standard vers$s movin'avera'e) " so please explain which.

A &o

:0) *o !o$ have inventor! val$ed in di""erent c$rrencies at the same "acilit!

A &o

:1) Are !o$r materials taxa le

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individ$al is c$rrentl! assi'ned to material master maintenance. t is advisa le that acentrali%ed 'ro$p o" reso$rces will maintain the master records in the "$t$re.#he $sers in the -$rchasin' department will not have a$thori%ation to maintain themaster data.

?. *escription o" mprovements

&/A

@. *escription o" ;$nctional *e"icits

&/A

8. Approaches to (overin' ;$nctional *e"icits

&/A

9. &otes on ;$rther mprovements

&/A

10.,!stem (on"i'$ration (onsiderations

&/A

11.A$thori%ation and ser oles

&/A

12.-ro ect ,peci"ic ( ,ection

&/A

1/2/ 'er*ice Master

"!estions:

1) s it necessar! "or !o$ to proc$re services "rom external s$ppliers " so do !o$ want

to str$ct$re and mana'e these services 6hat 7ind o" services do !o$ proc$re A $irements/Expectations

,ervice masters *$e to the low vol$me o" activities p$rchases o" services will e

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&/A

1/ / C!stomer Master Record

"!estions:

1) 6hich t!pes o" $siness partners do !o$ have ;or example sole proprietor le'alperson emplo!ees "orei'n other

A #Is c$stomers "or sponsored pro ects incl$de sole proprietors le'al persons and"orei'n. #Is main c$stomers are 'overnmental a'encies. # divides its c$stomers into "o$rcate'ories as re>$ired "or "inancial reportin' "ederal 'overnment a'encies state'overnment a'encies local 'overnment a'encies and private companies or persons. Alar'e portion o" the sponsored awards is act$all! s$ contracts "rom a primar! ;ederal "$ndin'so$rce thro$'h another "$ndin' so$rce and then to #. # calls these awards ;ederal "lowCthro$'h "$nds and the! will e classi"ied as ;ederal.

2) 4ow man! active c$stomers do !o$ intend to trans"er to !o$r /3 ,!stem

A Approximatel! 500 C 1000. ($rrentl! the 'rant data ase a s$ sidiar! s!stem to #Isc$rrent G/D) ho$ses part o" the c$stomer in"ormation. #he c$stomers are arran'ed ! 5Cdi'italphan$meric a'enc! code. #he code is si'ht reco'ni%a le "or so$rce classi"ication. ;orexample the ,tate o" #& *epartment o" #ransportation is a'enc! code :0101. #he "irst twodi'its si'ni"! a so$rce classi"ication o" ,tate 'overnment a'enc!. #he remainin' three di'itsare randoml! assi'ned.

3) 6hich department s) are responsi le "or the maintenance o" c$stomer data

A #he c$rrent # s!stem has c$stomer attri $tes in two places C 1) on the pro ect G/D asattri $tes and 2) on the 'rant data ase as attri $tes. #he c$stomer master data in /3 will

e esta lished and maintained centrall! ! the (ontrollerIs ""ice.

,ince the (amp$s B$siness ""ices in addition to the (ontrollerIs ""ice will e $sin' thec$stomer master data and will e settin' $p pro ect str$ct$res the! m$st have access to viewthe c$stomer master data.

:) " more than one department descri e the responsi ilities o" each

A #he c$rrent # s!stem has c$stomer attri $tes in two places C 1) on the pro ect G/D as

attri $tes and 2) on the 'rant data ase as attri $tes. #he c$stomer master data in /3 wille esta lished and maintained centrall! ! the (ontrollerIs ""ice.

,ince the (amp$s B$siness ""ices in addition to the (ontrollerIs ""ice will e $sin' thec$stomer master data and will e settin' $p pro ect str$ct$res the! m$st have access to viewthe c$stomer master data.

5) *escri e !o$r partner "$nctions in detail.

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A # has several sponsors that mi'ht also have another $siness relationship with theniversit!. ;or example #CBattelle is the le'al entit! that mana'es the a7 id'e &ational

Da a *epartment o" Ener'! "acilit!. t is #Is lar'est sponsor. # also p$rchases researchservices "rom #CBattelle which ma7es them a vendor to the niversit!.

?) 6hich partner "$nctions are $sed "or the di""erent sales doc$ments

A Darr! donIt $nderstand this >$estion.

@) *o !o$r c$stomers have m$ltiple shipCtos and pa!ers

A


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1:) *o !o$ 'ro$p c$stomers accordin' to an! o" the "ollowin' criteria

A S T Geo'raphical locationS T -ro"ita ilit! se'mentS T ($stomer Gro$pS T ,ales o""iceS T ,ales Gro$pSNT thersS T &o 'ro$pin'

15) 6ill !o$ record contactCperson in"ormation on !o$r c$stomers

A


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2:) Are there an! disco$nts lin7ed to terms o" pa!ment s$ch as cash disco$nts

A &o.

25) *o !o$ have sales doc$ments in "orei'n c$rrencies *escri e how the exchan'erate is calc$lated.

A &o.

2?) 6hat 7ind o" pa!ments do !o$ 'et "rom !o$r c$stomer

A S T Bar SNT (redit cardSNT (hec7S T *own pa!mentSNT Electronic ;$nds #rans"er E;#)S T thers

2@) Are reminders sent 4ow lon' is the waitin' period

A


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32) *o !o$ $se the same str$ct$re o" c$stomer master records in all departments

A $ires an A/ s!stem "or sponsored pro ects onl! at this time. A/ and collectionnotes sho$ld e maintained and a'ed ! c$stomer camp$s pro ect and invoice n$m er.

# wo$ld li7e to access A/ "or reports >$eries and searches. ($stomer masterrecords are maintained centrall! $t viewed and $sed ! all camp$ses. # wo$ld li7ean a$tomated d$nnin' s!stem to replace existin' "$nctionalit!. nvoices will post to A/thro$'h ,* "rom camp$ses) and man$all! "or departmental illin's.

1/3/ Vendor Master Record

"!estions:

1) 6hat t!pes o" vendors do !o$ have domestic "orei'n pa!ment address etc.)

A +endor *B 5 di'it L alpha character) All - Is are written a'ainst +endor *BP vendorscan also e $sed "or nonC- transactionsP = = C e'$lar rec$rrin')P (lassi"ications Finorit!Cowned womanCowned small $siness lar'e $siness vendors mar7s one o" thesecate'ories when id application in sent in).

-a!ee *B 9 di'it C sometimes starts with =#=) sed "or nonC- transactionsP #xxxxxxxxCtemporar! n$m er intended to e $sed one time see V1)P ,ocial ,ec$rit! n$m ersC$sed "oremplo!ee travel reim $rsement and "or 1099 reporta le vendorsP ;ederal * n$m ers C "or1099 reporta le vendors

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+endor #!pes *omestic oth data ases) incl$din' tr$st remittances)P ;orei'n othdata ases)P ,t$dents -a!ee *B)P -atients -a!ee *B)P Emplo!ees -a!ee *B)P#emporaries -a!ee *B)

WW& #E #here are d$plicates within and etween the two data ases.

$r c$rrent de"inition o" a oneCtime vendor is a vendor that is expected to e $sed onl! onetime. 4owever c$rrentl! it is not eas! to determine i" a vendor is a =tr$e= oneCtime vendor.6hile there are some =tr$e= oneCtime vendors the -a!ee *B has ecome a wa! to assi'n avendor n$m er >$ic7l!. n the c$rrent -a!ee *B a vendor ma! e assi'ned a temporar!n$m er even i" it is alread! there with a real n$m er) and the temporar! n$m er can then

e $sed man! times.

-rovide sample o" each *B vendor master record "or each t!pe and classi"ication o" vendor! :/21/00.

2) 4ow man! active vendors do !o$ want to trans"er to /3

A #B* a"ter clean$p o" c$rrent data ases. n meetin' on :/19/00 determined the wa!sthat the clean$p will e handled. ($rrent sit$ation

-a!ee *B approximatel! 213 000 incl$des one time/temporar! vendors)+endor *B approximatel! @0 000

Contract DB:??#(TBD); may not have to convert; used for ALL contracts for routing (fortracking o!en" $% and com!&eted); on fi&e forever' Contracts i&& e added to the%urchasing system; *endor master records i&& e re+uired to faci&itate these contractagreements' 6ill not convert as it does not contain vendor master dateCt!pe in"ormation.

3) 4ow do !o$ want vendor n$m ers assi'ned in the /3 ,!stem &ame !o$r criteria "orman$al and a$tomatic n$m er assi'nment. *escri e the "ormat o" man$all! assi'ned vendorn$m ers.

A S T Alwa!s a$tomaticall! "rom the /3 ,!stemS T Alwa!s man$all! "rom the $ser SNT A$tomatic or man$al

(omments ;or the most part vendor master n$m ers can e internall! assi'ned. ($rrentl!1099Crelated vendors $se externall! assi'ned +endor *s i.e. ,,& or #axC *). n ,A- /3these 1099 vendors sho$ld "ollow the recommended internal vendor n$m erin' conventionand $tili%e the tax re"erence "ields as well as the 6ithholdin' tax "ields to or'ani%e 1099 H/or10:2 vendor data.

:) *o !o$ have plants that s$ppl! materials or services to other plants in other compan!codes

A


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( &; G A# & & #E, Altho$'h this re>$irement o$tlines the need to trans"er materialsand services "rom one department to another it "alls o$tside o" /3Is traditional interCcompan! interplant materials/services trans"er movements. #o $ild this process in the news!stem either a man$al o$rnal vo$cher proced$re will need to e "orm$lated or ana$tomated internal p$rchasin' proced$re will need to e con"i'$red to "acilitate these internal

$siness transaction processes. A o$rnal entr! with a speci"ic doc$ment t!pe will e $sed"or these internal trans"er vo$chers.

?) *o !o$ want to re"lect the or'ani%ational str$ct$re o" !o$r vendors in the /3 ,!stem

A & 6 &o/3 $irements to 'o thro$'h p$rchasin' "or thoset!pe items. #hese departments are noxville H (hattanoo'a Di rar! "or oo7s onl!)

noxville Boo7store oo7s and resale items) Femphis Fedical nit medical s$pplies) andnoxville #C(l$ resale items).

,ome o" these departments have their own external p$rchasin' s!stems to mana'e thisprocess separate "rom the niversit! s!stem. #hese are the noxville also $ses-roc$rement (ard "or ma orit! o" these items) and (hattanoo'a Di raries the noxvilleBoo7store a!tex ,o"tware -ac7a'e) and the Femphis Fedical nit Fedi#ech). 6e need

to determine i" these will contin$e to e handled externall! or i" the! will e incorporated into/3.

#he noxville Boo7store 7e!s their invoices into a!tex and s$ mits them electronicall! tothe chec7Cwritin' "ile. 4owever chec7s "or all s!stems are written ! the #reas$rerIs ""ice

Acco$nts -a!a le section. Are the vendors that are paid c$rrentl! incl$ded in the -a!ee *BPi.e. part o" the 213 000 vendors " not the! will need to e incl$ded into ,A- /3 i" chec7swill contin$e to e written "rom the new s!stem.)

( &; G A# & & #E, #!picall! and ideall!) there will onl! e one vendor master "ile.-lant speci"ic in"ormation can e incorporated in an! individ$al vendor master record. 6hennecessar! this sho$ld e the approach to "ollow to meet the needs o" niversit! o"#ennessee.

8) 6hen wor7in' with !o$r s$ppliers do !o$ deal with people with di""erent roles " !esindicate the appropriate roles.

A SNT rder recipientSNT Goods s$pplier SNT nvoicin' part!SNT -a!ment recipientSNT ther please speci"!

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9) *o !o$ emplo! di""erent pa!ment terms ! "acilit!

A &o

10) Are there an! vendorCspeci"ic instr$ctions or in"ormation that !o$ want to incl$de inp$rchasin' doc$ments

A


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A ilit! to maintain one vendor data ase "or oth A/- vendors and -$rchasin'vendors witho$t d$plication

;acilitate 1099 reportin' A ilit! to set $p vendor t!pes s$ch as emplo!ees st$dents patients oneCtime

vendors domestic and "orei'n +endor n$m ers sho$ld e assi'ned internall! ! s!stem A ilit! to search vendors ! ,,& and "ederal id n$m er A ilit! to c$t chec7s "or vendors not in vendor *B i.e. # Boo7store vendors C

a!tex) neCtime vendor ) A ilit! to maintain vendor classi"ications i.e. minorit! small $siness womanC

owned lar'e $siness) A ilit! to maintain de"a$lt data "or master record at vendor level wo$ld e hi'hl!

desira le $t will not e reali%ed in the initial ='oClive= since no material masterrecords will e set $p.


+endor Faster data consists o" three parts 1) General *ata which is the asic vendoracco$nt in"ormationP 2) -$rchasin' *ata which is the speci"ic vendor p$rchasin' datathat is $ni>$e to the vendor or $ni>$e to the vendor and to a speci"ic # plantP and 3)

Acco$ntin' (ompan! (ode) *ata which is the acco$ntin' in"ormation that A/- $ses topa! the vendor. #he +endor master records will e cate'ori%ed into speci"ic acco$ntin''ro$ps in order to control the activit! and "ield records that can e $sed "or a speci"icvendor. ;$rthermore lar'e vendors who have m$ltiple orderin'/shippin' and remit toaddresses can e partnered to'ether in a hierarchical "ashion so as to aid in the $!in'and pa!in' processes associated with those vendors.

($rrentl! there are vario$s n$m ers o" +endor Faster "iles $sed thro$'ho$t theniversit! o" #ennessee. #wo o" the primac! vendor data ases are the +endor *B $sed! -$rchasin') and the -a!ee *B $sed ! Acco$nts -a!a le). $ite a it o" anal!sis

and review will need to ta7e place prior to con"i'$rin' the ,A- /3 s!stem. #he -a!ee*B is extremel! lar'e 213 000) recordsP this is a 'ood si'n that there are o soletered$ndant and/or inacc$rate vendor master records that need to e removed or reCeditedprior to ein' copied into ,A- /3. ;$rthermore some data str$ct$re and operationalprocesses need to e "orm$lated as part o" an! on'oin' vendor maintenance processes.

3. &amin'/&$m erin' (onventions

;or the most part vendor master n$m ers can e internall! assi'ned. ($rrentl! 1099Crelated vendors -a!ee *B) $se externall! assi'ned vendor *s i.e. ,,& or #axC *).#he +endor *B p$rchasin' vendors) $se internall! assi'ned vendor ds. n ,A- /3these 1099 vendors sho$ld "ollow the recommended internal vendor n$m erin'convention and $tili%e the tax re"erence "ields as well as the 6ithholdin' tax "ields toor'ani%e 1099 vendor data.

:. ,pecial r'ani%ational (onsiderations

(entral ownership o" the +endor master data will e in Acco$nts -a!a le. #he-$rchasin' *epartment will e responsi le "or creatin' and chan'in' the -$rchasin'data. r'ani%ational processes need to e p$ lished which controls the creation andon'oin' maintenance o" the ,A- /3 +endor Faster ;ile.


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($rrentl! +endor *B is maintained ! -$rchasin' and the -a!ee *B is maintained ! A/-. -$rchasin' can onl! $pdate the -$rchasin' data while A/- can $pdate the-$rchasin' address and the A/- address. n the -a!ee *B an! camp$s $siness o""icecan add a vendor $t onl! the #reas$rerIs ""ice A/- ""ice can $pdate this in"ormation.Goin' "orward there will e onl! one central *B. Acco$nts -a!a le will create vendorscentrall! and -$rchasin' will maintain the -$rchasin' data.

?. *escription o" mprovements

Broader "$nctionalit! o" the +endor master desi'n and con"i'$ration allows theniversit! o" #ennessee to etter or'ani%e and maintain the +endor master

data ase. ,in'le vendor *B will allow "or red$ction or elimination o" d$plicate vendor n$m ers. #he = neC#ime +endor ;$nctionalit!= will red$ce the n$m er o" vendors in the *B

since tr$e oneCtime vendors will e set $p $nder a sin'le oneCtime vendor acco$nt.

@. *escription o" ;$nctional *e"icits

&one

8. Approaches to (overin' ;$nctional *e"icits

&/A

9. &otes on ;$rther mprovements

&one apparent at this time

10.,!stem (on"i'$ration (onsiderations

&eed to "orm$late the +endor acco$nt 'ro$ps in order to est mana'e the master data$sa'e. &eed to determine i" +endor -artner elationships is a $se"$l approach to thevendor maintenance schema. &eed to wor7 with the 4$man eso$rces H FaterialsFana'ement teams to ens$re that all components o" the +endor Faster data have eenade>$atel! de"ined.

11.A$thori%ation and ser oles

*ispla! "$nctionalit! "or $sers on department level except the views "or emplo!eevendors and an! other sensitive or con"idential vendor in"ormation) to incl$de oneCtimevendors set $p "or travel p$rposes.(reate and chan'e a$thori%ation "or the Acco$nts -a!a le department.(reate/chan'e/displa! -$rchasin' data "or the -$rchasin' department.


&/A

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1/5/ an ) an Directory TR)F%

"!estions:

1) *o !o$ want to create the an7 director! address and control data "or an7s and posto""ice an7s) man$all! or cop! it a$tomaticall!

A Fan$all!.

2) 6hich an7s and an7 acco$nts will !o$ e $sin' "or incomin' and o$t'oin'pa!ments

A All o$t'oin' pa!ments except pett! cash) will e "rom ;irst #ennessee Ban7 acco$nts.#he ;#B acco$nts incl$de the "ollowin'

-a!roll 00C00002?)*is $rsement 02?0851),t$dent e"$nd C Fartin 1000@9:98),t$dent e"$nd C (hattanoo'a 1000@9:8?),t$dent e"$nd C Femphis 1000@950:)

,t$dent e"$nd C noxville 10032@3:@);ed wires and A(4 de its are paid "rom the General Acco$nt 00C00015).

ncomin' "$nds are received in the vario$s depositor! an7 acco$nts across #ennessee.,ee also Ban7 Acco$ntin' $estionnaires.

3) n what c$rrencies are these acco$nts denominated

A , *ollars.

:) Are certain pa!ments handled ! more than one an7 correspondent

an7s/intermediar! an7s) A &o

C% Template:


#here are 3 primar! acco$nts -a!roll *is $rsement and General "or ;ed 6ires and A(4 *e its

# has a primar! an7in' relationship with ;irst #ennessee Ban7. # has 1 primary depository acco!nt where the! initiall! deposit noxville "$nds.

#he primar! depositor! acco$nt is their cash mana'ement acco$nt. # investsased on the alance in that acco$nt. ther an7 acco$nts are swept into this acco$nt. 6ires 'o o$t o" that acco$nt and o$r A(4 'oes in and o$t. &o chec7s are written "rom this acco$nt. 6or7in' capital investment p$rchases/sales are "rom this acco$nt.

Besides the primar! depositor! acco$nt at noxville there are other 1 st T? depositoryacco!nts at di""erent locations (oo7eville Femphis and (hattanoo'a).

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# has 1 main disb!rsements acco!nt "rom which onl! chec7s *+s and B+s) arewritten.#here is 1 payroll acco!nt which is YBA where # moves mone! to cover pa!rollpa!ments "rom the primar! depositor! acco$nt.#here is 1 primary in*estment acco!nt . #his represents cash that 1st #& investmentmana'ers have availa le to them to invest "or the niversit!.#here are 3 other @ $ acco!nts "or atch vo$chers B+s) "or which chec7s are writtento st$dents ! the camp$s B$rsars at noxville (hattanoo'a Fartin and Femphis.

#here is one depositor! acco$nt per location o" an7. All depositor! acco$ntsconcentrate to 1 st #& $t a minim$m alance is le"t in these acco$nts. niversit!personnel "rom the vario$s camp$ses call #im Fapes and in"orm him the amo$nt o" dail!activit! and then #im trans"ers the appropriate amo$nt.

Am,o$th Ban7 noxville &ashville) C 2 locations&ational Ban7 o" (ommerce 1 location(it! ,tate Fartin) 1 location we donIt download an! chec7s "rom this acco$nt.

nion -lanters (hattanoo'a Fartin) C 2 locations,$n#r$st (hattanoo'a)1st ;armers H Ferchants &ational (ol$m ia) C1 locationBan(orp ,o$th Oac7son Filan) C 2 locationsGreene (o$nt! Greenville)Ban7 o" America Greenville &ashville Dewis $r') C 3 locations($m erland (o$nt! (rossville) 1 location;irst nion &ational Ban7 ,prin'"ield);irst ,tate (ovin'ton) 1 location;irst &ational #$llahoma)

A' Extension (o$nt! A'enc! "$nds cash) ein' held across #& &ot act$all! a an7onl! a compilation o" cashCholdin's.)

# has *irect deposit responsi ilities with n$mero$s an7s.


n the /3 s!stem an7 master data is stored centrall! in the an7 director!. #he an7director! contains the an7 master data. ne sets $p an7 master data in /3 to store

an7 address data and control data there ! eliminatin' repetitio$s data entr!.Each an7 * is $ni>$e within a compan! code. ;or each an7 enter the an7 co$ntr!and either the an7 n$m er or an appropriate co$ntr!Cspeci"ic 7e!. #he s!stem $ses thisin"ormation to identi"! the correct an7 master data.

6hen one de"ines details "or the pa!ment pro'ram this necessitates enterin' the an7master data "or !o$r an7 details) one needs enter onl! the an7 *. n addition to the

an7 details one m$st also de"ine the an7 acco$nts that one has at oneIs an7. nede"ines these $nder an acco$nt * that is $ni>$e per compan! code and ho$se an7.#his acco$nt * can incorporate attri $tes o" the an7 acco$nt. ne will $se this * to e

a le to re"er to oneIs an7 acco$nt oth when enterin' speci"ications "or the pa!mentpro'ram and in G/D acco$nt master records. #he acco$nt data one enters comprises theacco$nt n$m er at oneIs an7 the c$rrenc! in which the acco$nt is mana'ed and an!additional co$ntr!Cspeci"ic data.

3. &amin'/&$m erin' (onventions

Documents

ASAP Business Blueprint2