Budget Maintenance Process Walkthrough

September 15, 2006

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Agenda

• Objectives and Introduction

• SAP Key Terms and Concepts

• Budget Maintenance Integration in the Employee Lifecycle

• High Level Budget Design

• SAP Account String Concepts

• Budget Planning and Maintenance Calendar

• Process Overview: SAP Budget Transfer Process

• Key Changes

• A Glance into SAP: Selected screenshots from SAP

• PBC Financial Flow

• Communications and Training Highlights

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Objectives

• Describe the overall Budget Maintenance process from an LAUSD perspective

• Explain integration points and how Budget Maintenance is organized in SAP

• Provide insight into Budget Maintenance process flow

• Communicate the Budget key change impacts

• Provide a first glance into the BPS folder

• Encourage feedback and provide opportunity to ask questions about BTS before training

• Provide practical information about training and communication

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SAP Key Terminology

SAP: The name of the software vendor and its core integrated product: “System Applications and Products” (SAP R/3)

BTS (Business Tools for Schools): The name of the project and the name of the new LAUSD system

Release 2: BTS is being implemented in 3 phases called “releases.” Release 2 will go-live (become active) on January 1, 2007 and includes payroll and time, human resources, benefits, budget and position control functionality

Human Resources (HR): An SAP module for optimizing and controlling workforce planning

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The Employee Lifecycle

Create Organizational

Structure

Create Budget & Position

Control

Identify Vacancy in

Organizational Structure

Hire Employees

Recruit Candidates

Identify Candidates

Administer Benefits

Report Time Run Payroll

Post to Finance

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SAP Budget - Related Key Terminology

Budget Planning & Simulation (BPS): SAP solution for Strategic Enterprise Management. BW/BPS is the abbreviation for Business Warehouse/Business Planning & Simulation. BW is a reporting tool that retrieves and integrates summarized and detail data from SAP

Position Budget Control (PBC): An SAP module for integrated personnel cost/budget planning

Personnel Cost Planning (PCP): An SAP module used for planning positions, salaries and benefits. PCP calculates planned cost based on Employee Master Data. Cost information is transferred to the BPS folders

Funds Management (FM): Where budgeted revenues and expenditures for individual areas of responsibility are managed. In FM, future funds movements are managed and controlled according to a distributed budget. FM prevents the exceeding of a budget

Examples of funds set up as master data in FM:

010 General Fund, 110 Adult Education, 120 Child Development

Delimiting: Delimiting is attaching an end date to a record. When you create or copy an infotype, the old data is not lost but is stored as history for reporting purposes

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ModuleBusiness Planning &

Simulation (BPS)Position Budget Control

(PBC)

SAP Sub-moduleBW/BPS – Business Planning & Simulations

Personnel Cost Planning

Position Budget Control

Supported Business Process

•Perform Financial Forecasting

•Perform Budget Planning

•Perform Budget Maintenance

•Calculate costs for positions, salaries and benefits

•Perform budget planning for positions

High Level Budget Design

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ModuleFinancial &

Controlling (FI & CO)Funds Management

(FM)Human

Resources (HR)

SAP Sub-module

CO – Project Systems

CO – Cost Center Accounting

CO – Internal Orders

CO – Cost Element Accounting

Funds Management

Grants Management

Payroll

Personnel Management

Personnel Development

Organization Management

Time Reporting

E-recruit

Supported Business Process

•Develop Facilities strategic plan

•Perform transaction process for actual revenue/expenditures

•Check if funding is available

•Commit funding for position and non-position items

•All functions associated with optimizing and controlling workforce administration

High Level Budget Design

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SACS-Compliant SAP Account String

Fund

333-4444

Commitment Item

(GL Account)

444422

Functional Area

4444-4444-1AAAA

Fund Center(Cost

Center)

5555522

SACS Fund (+)

SACS Resource

IFS Org (+)Cost

Center Extension

SACS Goal

SACS Function

IFS Program (+)

GL Account

Extension

SACS Object

Internal Order

123456789012

WBS Element

A-666666-22-333-22

Project PhaseSub-

Project

IFS Job Number

Funding Source

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SAP Master Data Integration

FIFinancial

Accounting(external accounting)

GMGrantee

Management(sponsor’s view/reporting

requirements)

FMFunds Management(budgetary accounting)

COControlling

(managerial/cost accounting)

GL Account

Grant

Functional Area

Business Area

Fund

Fiscal Year

Cost ElementPrimary & Secondary

Grant

Functional Area

Internal OrderWBS Element

Cost Center

Fund

Fiscal Year

Commitment Item

Grant

Functional Area

Funded Program

Funds Center

Fund

Fiscal Year

Sponsor Class

Grant

Sponsored Program

Fund

Budget Validity Period

Object

Grant

Area & Org

Program

Fund

IFS

Project & Job Number

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Budget Planning and Maintenance Calendar

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Central Office Planning and Maintenance Calendar

Month Planning 07/08 Maintenance

January 07

Budget Maintenance 06/07

February 07

March 07

April 07

Budget Planning 07/08May 07

June 07

July 07 Budget Plan Revisions 07/08August 07

September 07 Adopt Budget 07/08

October 07Budget Maintenance

07/08November 07

December 07

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Budget Planning and Maintenance Calendar

Month Planning Maintenance Norming

Jan FY08 Forecasting

FY07 Budget Maintenance

Feb FY08 Preliminary Budget

FY08 Enrollment RoadshowMar

Apr

Provisional Budget

Upload / Post

MayPosition Assignment

June

JulyFinal Budget Daily Teacher Norm

CalculationsAug

Sept Adopt Budget

OctFY08 Budget Maintenance

Norm Day

NovNorm Adjustments

Dec

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Human ResourcesFinance

Time

Job

Job

Vacancies

Benefits

Payroll

General Ledger (GL)

Organization Management

Org Unit = Cost Center

Job Job

eRecruitPosition·Fund·Grant·Planned Comp

Position·Fund·Grant·Planned Comp

Vacancies

Employee Master DataPosition Budget Control

(PBC)

Creates Pre Commitment, Commitment & Salary

Savings

Positionsto Fill

Controlling (CO) Job Cost

EstablishBudget

Filled Position Dollars

Payroll Actuals

Eligibility Check

of Hours

Hours to Internal Orders (Jobs)

Planned Compensation

Planned Comp

(vacancies)

Actual Comp(filled)

Budget

Personnel Cost Planning (PCP)

Calculate Position Salary &

Benefit Costs

Budget Planning & Simulation

(BPS)

Plan District Budget, Forecast Budget, Maintain

Budget

Personnel Administration

(PA)

Establish employee and assign to

Position

Fund Management (FM), Grants

Management (GM)

Position Budget Control (PBC): PreCommitments, Commitments & Salary Savings

Commitment Reduction

Vacancies

LegendFinanceModules

HR Modules

Budget Maintenance - Part of the Wider System Integration

Budget Maintenance

Budget Maintenance

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ExtractPosition Salary

& Fringe Benefits

Current Modified Budget

BPS Budget Maintenance Folder

Budget Adjustment FormTypes of Adjustments:

Position to PositionPosition to Non-positionNon-position to Position

Non-position to Non-position

Auto Create New Positions

Proposed

HR & Budget enter additional data as needed

Approval triggers HR notification

HR & Budget enter additional data as needed

AppropriateFiscal Staff

Administrator

Reviews Budget Adjustment Form

Human Resources

Approval triggers HR notification

Approval

FM

PBC Commitment

Processor

HR

HR is updated with new position information

Close aPosition

(RIF)

Budget Maintenance Information Flow and Activities

SAP Workflow Process

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What Has Changed?

Current Process New Process

• Create paper budget transfers

• Create online budget transfers which will be consistent for everyone

• IFS • SAP

• Open and/or close a position when there is a change to the funding source

• Once a position is created, you can defund the position. Budget will not need to open or close a position

• When a funding source changes for a position, the position number stays the same

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What Has Changed? (cont.)

Current Process New Process

• Not able to make budget revisions during black-out periods

• Ability to make budget revisions with minimal black-out periods

• During black-out periods, make TB in IFS and update BRASS later

• Use one system (2 modules), no need to update in two different systems

• Not always able to access position information when making personnel and budget decisions and changes

• Access integrated data for budget and employee positions when making personnel and budget decisions

• BRASS • Budget Planning & Simulations (BPS)

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Key Changes (Budget Maintenance)

Budget users will have to understand the account string structure for the funds they are dealing with

Budget users will access integrated data for budget and employee positions when making personnel budget decisions

Reports: Individuals who are identified as budget planners or budget maintainers will have access to standard BW reports

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Key Changes (Position Budget Control)

With SAP, several funding attributes can be attached to one position, therefore no need for multiple positions because of multiple funding sources

HR and Budget attributes will be populated automatically when a new position is created

When a position is closed, budget will defund the position, HR will delimit the position

Positions will be committed using actual employees‘ step and salary schedule

Immediate display of employee’s costs, and impact to Commitment Items and Budgets

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A Glance at SAP: Budget Planning Folders

• Budget layouts are divided into five folders:

• Budget Planning & Maintenance

• Revenue Planning Maintenance

• Growth Planning

• Reduction Planning & Maintenance

• Augmentation Planning

A folder contains budget layouts that are used to input and store the budget information that interacts with other information in the SAP system such as HR and Payroll

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Budget Maintenance Folder (Variables/Header-Section 1)

Header/Variable information for the budget transfer (section 1)

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Budget Maintenance Folder Layout (Section 2)

• The Budget Transfer Form resides in an MS Excel layout and will accept all standard Excel functions

• The header/variable information in section 1 populates in the first six rows of the Excel form (section 2)

ed version

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Budget Maintenance Folder Layout (Section 3)

• In this example, we:

• Perform a position to position transfer

• Close a manager/director position

• Create two new computer specialist/information developer positions

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Budget Maintenance Folder Layout (Section 3)

Note the Positive and Negative values in the From/To Amount field required to close one position and use the funds to open two new positions

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Position Budget Control Process Overview

PBC

HR OM&PAHR OM&PA

Position Data

Employee Data

PCPPCP

Data collection

PositionCost $

EmployeeCost $

PBCPBC

PBC Commitment Processor

FM/GMFM/GM

Original Budget

Pre-Commitm

ent Commitment

Actual Expenses

Available Balances

BPS Adopt Budget 10000 < 10000 >

PBC Vacant Position 6000 < 4000 >

PBC Filled Position 0 6500 < 3500 >

Payroll Employee Paid 100 6400 < 3600>

PBC

HR OM&PAHR OM&PA

Position Data

Employee Data

PCPPCP

Data collection

PositionCost $

EmployeeCost $

PCPPCP

Data collection

PositionCost $

EmployeeCost $

PBCPBC

PBC Commitment Processor

PBC Commitment Processor

FM/GMFM/GM

Original Budget

Pre-Commitm

ent Commitment

Actual Expenses

Available Balances

BPS Adopt Budget 10000 < 10000 >

PBC Vacant Position 6000 < 4000 >

PBC Filled Position 0 6500 < 3500 >

Payroll Employee Paid 100 6400 < 3600>

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Communications and Training Highlights

Aug Sept Oct. Nov

2006

Dec

End User Training

Jan

Go Live Campaign

Process Walkthroughs On- going specific messages

2007

My change and training guide

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Budget Training Curriculum

Basic Navigation

5 HoursWBL – 5

R3100Basic Navigation1 hr WBL

October - December 2006

BU200Revenue &

Expenditure Proj.8 hrs ELT

43 Hours

January - February 2007

BU250Budget Norming8 hrs ELT

BU270Specialized

Planning2 hrs ILT

BU280Budget

Planning5 hrs ILT

ILT – 15ELT – 28

BPS100Budget Planning

& Simulations1 hr WBL

BU220Prelim. Provisional

& Final Budgets8 hrs ILT

Budget

WI100Account String

Wizard1 hr WBL

BU230ResourceAllocation

8 hrs ELT

BU301Budget SystemAdmin (Part 2)

4 hrs ELT

Hours Grand Total 87

Target Audience Size 368

WBL = Web Based Learning

ILT = Instructor Led Training

RVC = Recorded Virtual Classroom

VC = Virtual Classroom

ELT = Expert Led Training

Budget

3 HoursWBL – 3

BU210Financial

Forecasting8 hr ELT

July 2007

MR200BTS Mgmt Reports

2 hr WBL

Budget & Position Control

ELT – 20ILT – 21

BU262Budget Maint.

Budget Services1 hr ILT

BU260Budget

Maintenance6 hrs ILT

41 Hours

BU300Budget SystemAdmin (Part 1) 4 hrs ELT

PC200Position Change

Processing8 hrs ELT

BU100Budget Overview

Central Office 4 hrs ILT

BU200Revenue & ExpenditureProjections

8 hrs ELT

BU105Budget Overview

Schools6 hrs ILT

BU265Budget Maint.

Schools4 hrs ILT

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More Project Information

• To learn about the BTS project:

– Check out the BTS Website (www.lausd.net/bts)– E-mail bts@lausd.net

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Questions

• Before leaving the room, please make sure that you have

– Signed in– Completed the process walkthrough assessment survey

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