Mosaic Information Session. A look at the finance and research finance systems launching in December 2013

Transcription

1 Mosaic Information Session A look at the finance and research finance systems launching in December 2013

2 Introduction

3 Agenda General Ledger, Chart of Accounts Commitment Control and Value-Added Tax Purchasing, Accounts Payable, and Reimbursements to Employees BREAK Customer Billing and Accounts Receivable Project Costing Grants (Research Post-Award)

4 Goals today Provide clarity about what is changing and answer your questions Provide you the information you need to speak confidently about Mosaic with your colleagues Encourage you to begin conversations with your teams

5 Overall Project Timeline

6 December Launch Timeline Design Finance & Research Finance (Post) Timeline Build Integration Testing Config Rice Cycle 1 (100% H + 75% M) Cycle 2 (Security + Portal) Cycle 3 (Conversion + Interfaces) Operational Testing 13-May 13-Jun 13-Jul 13-Aug 13-Sep 13-Oct 13-Nov 13-Dec 14-Jan Performance Testing Security User Acceptance Testing Training GoLive Preparation Including Stress Test (3x per test) Vulnerability scan Cycle 1 Cycle 2 Prepare Training Materials Deliver Training Technical Readiness Business Readiness Production Cutover Planning & Budgeting Reporting Hyperion Timeline 6 Draft - For Discussion Purposes Only

7 GL/COA/KK/VAT General Ledger Chart of Accounts Commitment Control Value Added Tax

8 GL module of PeopleSoft replaces FAS and Oracle journal entry

9 GL-010: Create and Process Journals Journals will be processed via the following methods: Online (manual) Journals Journals entered directly into the system Volume should decrease! PeopleSoft Excel Journal Entry upload Replaces current uploads now but checks data validity upfront vs. having to go through data control Journal Generator automatic journals from submodules or other suites or interfaces Raw data sent to Journal generator and processed in GL Import Journals External system interface journals Already a completed journal by the time it gets to GL

10 On line Journal

11 Journal Entry Approvals - Workflow Journal approvals similar to today s system Depending on the data in the journal entry, will go through a different approval workflow path Project related Journals Project Mgr. Capital, then Capital Accountant Project Mgr. Trust, then Trust Accountant Project Mgr. Research, then Research Office approval Journal Approvals (Dept., Program) If Program manager is different from Department manager, Program Manager approves Other Special Journals PDA Journals approval to Department Manager Balance Sheet accounts will go to central finance approval Transfer accounts will go to central finance approval Student account journals go to Student AR approval 11

12 GL-030: Review Financial Information Different methods to review financial information in PeopleSoft Delivered reports (like delivered e-reports now) Online within GL Online income statement within KK (like screen 32/44) Drill down capability within each of the above! Queries

13 GL Online Inquiry

14 KK summarized income statement

15 GL: Changes to Current Processes Use of adjustment periods for month end/year end closing Automated management of PDA via use of Open items Petty Cash process new process more in AP use of Open Items

16 COA Design McMaster COA group of Experts and GL team have defined: characteristics of each Chartfield, its structure, detailed definitions, values Worked with envelope managers from across the university to convert old COA department account numbers to new PeopleSoft Departments and Programs

17 Old to New Mapping Reminder Research/Capital/Trust: 5/7/8-xxxxx

18 OLD vs NEW COA Terminology FAS LEDGER ACCOUNT SUBCODE PEOPLESOFT FUND DEPARTMENT or DEPARTMENT + PROGRAM or DEPARTMENT + PROJECT ACCOUNT or PROGRAM (e.g. in our 9000 s series now) or PROJECT ACTIVITY (only for Projects)

19 NEW Chartfield String Operating/ Ancillary/Specifically Funded Fund (2) Account(6) Department(5) Program (5) = 18 e.g Capital/ Trust/Research Fund (2) Account (6) Department(5) Project (8) Project Activity (15) = 36 e.g Supplies

20 COA Chartfields Business Units 5 GL BU s e.g. McMaster (MAC01), Divinity(DIV01) Funds - 14 e.g. Operating, Research, Ancillary Account currently over 2000 subcodes reduced to less than 1000 more standardized structure required field and available for all to use Account Examples: Accounts Receivable Materials & Supplies Expense Sales Revenue

21 COA Chartfields cont. Department Uniquely identified responsibility unit of the University Approx. 500 reduced number due to introduction of the Program chartfield and more standardized use of accounts One definition no more multiple department codes throughout the university! Program New dimension available for recording activities within departments Approx. 20 Generic Programs and for Unique Programs E.g. Conference, Grad Support, Solar Car Project (Capital, Research, Trust) Converted projects will maintain old number with 10 in front of it Project Activity Defines the processes or actions necessary to complete the Project Other project chartfields include: PC BU, Source Type, Analysis Type

22 Translation Table for COA Pulp&Paper Research

23 KK (Commitment Control) Limited knowledge of the actual module itself necessary for most users Commitment transactions are generated out of other systems (eg. AP, HR) and most users will just see two commitment amounts on their online or static reports (pre-encumbrance/encumbrance) Capital budgeting process will be done through Commitment Control all other budgeting done in Hyperion Hyperion will update the Commitment Ledger in GL

24 VAT (HST) Main decision: use generic GST/HST and Provincial values Many manual calculations and j/e s done currently for HST will be automated in PeopleSoft System will track taxes by Province Internal vs external sales percentages used to calculate ITC and rebates upfront Less manual journal entries should be necessary

25 Purchasing, Accounts Payable, and Reimbursements to Employees

26 Purchasing Requisition Entry in PeopleSoft by Requester System validates information; e.g. chartfield, supplier, etc. Automated Approval workflow tied to EOI and Strategic Procurement thresholds Vendor Set-up and Management To be performed by Strategic Procurement New Vendor Request form being created

27 Purchasing Procurement Contracts to be handled by Strategic Procurement Involve SP at the beginning of the process Formal Process within PeopleSoft to handle RTV s (Returns to Vendor) that will be tied back to original PO

28 Purchasing System will auto source PO from the Requisition and auto dispatch PO to supplier Threshold to be determined Three way matching (PO, Receiving, Invoice) performed on all purchases greater than $2,500. Two way matching (Invoice, PO) on purchases less than $2,500

29 Accounts Payable Voucher Processing Non PO Invoices Requisitions) File upload (i.e. flat file) (e.g. Cheque Excel spreadsheet upload (Bookstore, Hospitality Services, Student Awards and Refunds) Decentralized voucher entry Voucher Processing PO Invoices Accounts Payable

30 Accounts Payable Payments Terms From net 45 to net 30 Payment Processing PO invoices cheque and EFT (Cdn $) = Monday All other payments Cheque = Tuesday and Thursday EFT (Cdn $) = Wednesday and Friday Drafts/Wires (i.e. foreign currencies) = Monday

31 Accounts Payable Acquisition Card (Pcard) BMO MasterCard Feed from BMO to PeopleSoft Reconciliation within PeopleSoft Petty Cash replenishment Process will not change significantly Will use internal bank as opposed to journal entry

32 Employee Reimbursement Travel Authorization To be used for pre approval of exceptions to policy (i.e. business class airfare) Use not mandatory Cash Advance No accountable advances; expenses reimbursed as they are incurred Encourage cash withdrawals using Diners card Exceptions: research study subjects, group travel, athletic team travel and where access to ATM not possible

33 Employee Reimbursement Expense Report Encourage self service Use of corporate credit card (Diners MasterCard) Daily feed from Diners to simplify data entry Payment by EFT to employees bank account on record in Payroll AP can pay Diners by EFT on behalf of cardholders Non Employees and Visitors Non PO Voucher

34 Employee Reimbursement Approval workflow to be utilized Feed of reporting hierarchy from HR Compliance review at beginning of workflow Tax (HST) calculations and rebates to be calculated within PeopleSoft Preparer can override if tax calc. incorrect

35 General End user will be able to query all transactions Document imaging to be utilized Automated workflow and notifications Ability to view where transaction is in approval workflow Ability to inquire entire payment cycle Data validation Overall greater transparency

36 Break

37 Customer Billing and Accounts Receivable

38 38 Finance Solution Overview

39 Detail Design Approach Billing / AR 39 Unique approach for AR BI due to remote and diverse business needs Each business area is unique and we met with all of the larger groups. Three general groups emerged: 1) May have entrenched business systems that can not be replaced by PeopleSoft BI Inventory Management, POS systems, scheduling or other specialties E.g. Bookstore, Athletics & Recreation, Media & Print Services (TBD) Solution becomes improved GL distribution More granular, more detailed descriptions, approvals 2) May have business systems that CAN be replaced Nuclear 3) No system, or does not produce a bill, and can adopt PeopleSoft BI / AR Catering Any University business area that needs to produce a Bill Smaller volume operations

40 Key Design Decisions 40 Business units are where transactions are stored, The following will be setup in AR/BI : Research Health Sciences Research General Nuclear Reactor Parking Finance General Health Sciences Print Services UTS Bookstore Athletics & Recreation Conference Services & Hospitality Library There will be two invoice (bill) layouts: Research layout Common McMaster layout

41 Key Design Decisions The Cashiering function will be replicated using PeopleSoft AR, financial coding details receipt generation. Similar to today, the distributed nature of receiving payments will continue however with greater autonomy, responsibility and accountability in the distributed business areas. The deposit entries will be completed locally, as well as the preparation of the physical deposit bag for the bank. Central finance will no longer need to recount or amalgamate the deposits. 41

42 Customizations Customizations Invoice layout Receipt layout Sponsor award number in AR Payment application Moneris ecommerce file load Bank Statement load 42

43 Issues Student Interim Process Student related transactions including receiving payments Will use online cashiering and maintain that process until Student Administration goes live 43

44 Key Process Changes Deposits not amalgamated, central finance does not check/close batch Where manual, bills migrate to PeopleSoft Payment application to detailed open items as opposed to an AR account 44

45 Process Improvements Billing! Centrally recorded AR, distributed process Improvements in internal cost transfer details (GL Interface) Bank reconciliation more automated Greater visibility of AR details 45

46 46 Billing Solution

47 Accounts Receivable (AR) Terminology PeopleSoft AR is created from a bill and represents an item to be paid Similar to, but not to be equated to an AR Balance Payment Application taking an individual payment and paying a specific item(s) Direct Journal taking a payment and creating a revenue journal Cashiering at the University cashiering is the function of receiving payments and recording the accounting for those payments. PeopleSoft does not have Cashiering but does have places to record payments received in either detail or summary, and in a two-step process payments are applied. 47

48 48 AR Solution

49 Cashiering 49 Walk up Enter deposit Direct Journal to revenue accounting Generate receipt Moneris Ecommerce centrally entering Moneris sales data to a revenue clearing account for each merchant Remote business areas Enter deposit (summary or detail as necessary) Apply payment either to open items or direct journal Create deposit slip Pickup for banking Central Finance Arranges delivery to bank Reconciles bank statement

50 Conversion Re-key customers where necessary No open AR item conversion Old systems will be closed out without converting open items No GL Impact No Bill conversion 50

51 Project Costing

52 PeopleSoft Project Costing Three purposes for this module Capital projects Trusts Research ( next presentation) Primary users: Capital : facility services Trusts : TFAIS users

53 PeopleSoft Project Costing What does it do? This module captures information related to a project, bringing all the information together in one place. It will receive information from the GL, P2P, travel and expense, AR and also allow entry of budgets and project attributes at the module level. Compensation will also flow from PeopleSoft HR when live.

54 PeopleSoft Project Costing Team has worked closely with key stakeholders to configure the system to receive the historical information from TFAIS and AiM Key stakeholders are currently completing System Integration Testing

55 PeopleSoft Project Costing Reporting Reports will be available from PeopleSoft but any report that will require information from other sources will be provided through the Data Warehouse Other user may view the status of their projects as now linked in the ERP

56

57 Research

58 PeopleSoft Grants Management Pre-Award (Proposal) Post-Award (Accounting) Proposal Development Review & Submission Awards Processing Award Management Compliance Close-Out Enter Basic Information Develop Narratives Route For Internal Approval Submit to Sponsor Negotiate and Accept Receive Award Notice Expend against award Perform Adjustments Submit Status Reports Monitor Funding Limits Review Account Activity Submit Final Report Develop Budget Identify Need for Special Reviews Comply with Assurances & Certifications Create Project / Award Authorize Pre-Award Spending Allocate Indirect Costs Manage Billing Review Status Inquiry Comply with Cost Allowability 58

59 59 To be Process Flow

60 Training

61 Training Training Will begin in mid-october and run through December Detailed training schedule will be made available at the end of September Multiple Training Styles Classroom Small Group Drop-in Online (delivered via Avenue to Learn) Written Documentation

62 Courses Work stream Total Number of Courses A/P 4 A/R Billing 9 ALL Modules 2 Commitment Control 2 General Ledger 12 PeopleSoft Overview 1 Procurement 4 Project costing 2 Research 5 Travel & Expense 2 Grand Total 43

63 Next Steps

64 Next Steps User Validation late August We will be conducting a user validation exercise to confirm security access for each user of the new system The Security and OCM team will distribute two documents to facilitate this process: An Excel spreadsheet containing users and PeopleSoft access based on current roles and current FAS access An accompanying instruction / information package to help complete the exercise McMaster University - Mosaic

65 Closing