How to Utilize Advanced Job Forecasting in JD Edwards

Transcription

1 How to Utilize Advanced Job Forecasting in JD Edwards Prepared by: Craig Davied, Grant Thornton GrantThornton Session ID:

2 Craig Davied Director, Technology Solutions Kansas City, MO Executive summary Craig is a Director with Grant Thornton in the Technology Solutions practice. He has over 18 years of consulting experience, across a diverse set of companies and industries. Craig's experiences include planning and program management of multi-faceted implementation projects, hands on management and implementation of ERP software packages, business process reengineering and system architecture design. Prior to Grant Thornton, Craig was a founding member of MarketSphere s JD Edwards practice in 2002 and was responsible for managing and delivering projects, practice development, solution design and staff management. He has deep experience with the processes and configuration of the JDE Finance and Distribution modules, specifically with the General Ledger, Accounts Payable, Accounts Receivable, Job Cost, Contract Billing, Procurement / Subcontracts, Sales, Inventory, and Advanced Pricing. Craig also has experience with multiple releases of the software. Prior to joining Grant Thornton Consulting from MarketSphere, Craig was an experienced consultant in a Big 5 consulting organization and has over 18 years of professional experience. Industries Consumer Products Retail Metals and Mining Mineral Exploration Drilling Construction Water Management Aggregates Pet Food/Manufacturing Textiles Public Utilities Inbound / Outbound Transportation Education Bachelor of Science in Business Administration / Finance, Kansas State University 2

3 About Grant Thornton We are the U.S. member firm of Grant Thornton International, a global organization of member firms providing audit, tax and advisory services to clients for more than 90 years. Over 10% revenue growth in the U.S. last year with a 13% increase in headcount $1.56bn revenues PEOPLE PARTNERS 35% of the companies on the 2015 Fortune 1000 list 39% of the companies on the 2015 Fortune 500 list 54% of the companies on the 2015 Fortune 100 list 25% of the companies on the Russell 2000 list OFFICES

4 Committed Oracle partner Specialized Partner of the Year, 2014 (EPM, NA) JD Edwards Excellence Award, 2015 Excellence Award, 2015 (Fusion Middleware Innovation at Serta Simmons Bedding) JD Edwards Excellence Award, 2016

5 About Grant Thornton Technology Solutions We help our clients integrate transactions to report on financial results and variances with governed standards. Services include: Business Intelligence Enterprise Performance Management Enterprise Resource Planning Human Capital Management Reporting and analytics strategy Governance and master data Foundation analytics Pre-built analytics Advanced analytics We help our clients transform data into usable information. Our services give clients better visibility into their business that enables actionable decisionmaking: Enterprise planning, forecasting and strategic planning Consolidations and financial reporting Profitability analysis Change assurance We help our clients manage transactional detail from every process within their business. Connecting this information with users and ensuring that it meets their specific needs are critical to enabling sound decision- making. Services include: System strategy Implementation Technology integration Upgrades, optimization, and support We help our clients develop an integrated approach for addressing current and future talent management issues. Our services provide our clients the flexibility to scale the solution or solutions to their business strategy, operating model, and culture. Specific services include: Assessments System strategy and implementation HR intelligence Upgrades, optimization, and support 5

6 About Grant Thornton JD Edwards Practice 80+ dedicated professionals Specialized functional resources PM and functional expertise Project management office Implementations Upgrades Mobile applications Third party integration architecture Business process reengineering Managed services (functional) Distribution THOUGHT LEADERSHIP Manufacturing Leading presenter at COLLABORATE, INFOCUS and OpenWorld conferences with dozens of education sessions spanning a broad range of topics HR / Payroll CAM ERP governance and data governance white papers and thought leadership series Project advisory Featured in PROFIT magazine JD Edwards Special Issue 2015 User materials and training Financials EXPERIENCE AND RECOGNITION CNC Development Technical Workflow Security management Private cloud Database management Security Development (FRICE) Data governance Transformation Master data management Industry point of view Reporting strategy Process excellence Benchmarking ERP governance Oracle JD Edwards recognized Grant Thornton with its 2015 JD Edwards Partner Excellence Award for Outstanding Upgrades and 2016 JD Edwards Partner Excellence Award for Vertical Industries Disaster recovery Gap assessment Proven methodology More than 200 JD Edwards implementations and upgrades Managed services (technical) Technical management Trusted business advisor Infrastructure / hosting Change management Cloud roadmap / strategy FASB planning Chart of accounts optimization 2016 Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd 6

7 Agenda Objectives Job Cost Overview Introduction to Advanced Job Forecasting 4. User Defined Methods of Computation 5. Job Forecasts Benefits of Using Forecasts Summary Activating the Advanced Job Forecasting System Advanced Job Forecasting Overview Creating Formulas for User Defined MoC s How to create User Defined Methods of Computation New Included MoC s within Advanced Job Forecasting Creating Job Forecasts Reviewing and Approving Job Forecasts Reviewing Job Forecast History 7

8 Objectives 8

9 Objectives To understand how to setup Advanced Job Forecasting within JD Edwards To understand the benefits this functionality can provide, as well as how this functionality can allow you to make better business decisions 9

10 Job Cost Overview 10

11 Background on Job Cost Here is the typical Job cost system process within JD Edwards: Job setup For integration with purchasing / subcontracts 2 1 Setup customer billing address Specific accounts needed to track costs Assign job # and general job info 4 3 Create job master Setup job site address $$/units assigned to accounts 5 Setup job accounts Setup job budgets Job setup is complete in JDE; work begins on jobsite 6 7 Actual transactions Payroll A/P vouchers Inventory issues Equipment entries Purchasing/subcontracts 8 Enter progress quantities (optional) 9 Invoice customer 10 Month end profit recognition Close job Job analysis 11

12 Background on Job Cost Setup job master Type of business unit Extended job master Key information Job number Job description Company Posting edit code Jobsite address Customer billing address Dates Category codes 12

13 Background on Job Cost Setup job accounts Cost code structures Cost code / Cost type Account description Alternate cost code Posting edit code Level of detail Unit of measure Method of computation Category codes Other account setup methods Copy from chart type Copy from job Export / Import 13

14 Background on Job Cost The job cost system shares the following files with the general accounting system: Data type Data file Description Job master F0006 Stores job master info Account master F0901 Stores cost code structure info Account balances Account ledger F0902 F0911 Stores account balance details related to the various ledgers associated with each account in your cost code structures Tracks revisions to account balance amounts and quantities by providing a detail audit trail of transactions 14

15 Background on Job Cost Example setup LOD Cost code 3 Cost type Description U/M Budgeted units Budgeted dollars Major activity LF Sub activity LF 3000 $ Labor MH Salaried labor MH Hourly labor MH Fringes LS Direct Materials LF 3000 $25, Subcontracts LS 1 $10,000 Legend Header account Detail account Header units = Overall quantities to complete Detail units = Units by cost type, related to the detailed transaction Notes Specific header and all detail accounts are linked because cost code is consistent between them Header accounts are available for level of detail 3 thru 7 15

16 Background on Job Cost Ledger types Ability to track units, as well as dollars Ledger type Amounts Units Ability to lock original budgets, yet have revised budgets accumulate Actual AA AU Projected finals are a separate ledger type Budget Original JA JU Ability to track purchasing & subcontract commitments *Budget Revised RA RU PA PU HA HU FA FU All ledger types are available for Job Status Inquiry column definitions as well Opportunity to have additional custom ledger types for other job related purposes Commitments Projected final Field progress (force) % of job complete Custom ledger type(s) F%???? 16

17 Background on Job Cost Method of computation Definition: Used to define the means by which to calculate job progress (projected final) information JDE offers over 15 different methods Each has specific situations where they apply Here are a few of the more widely utilized MOC s: Method D (Default) Greater of revised budgets OR actuals plus open commitments Based on amounts first and then units second Methods S (Summary) & I (Inclusion) S & I is used when you want to budget at a higher level of detail, but record actuals at a lower level within the same Cost Code. Method G (Revenue) Conservative approach To be able to recognize more revenue than what was budgeted, you must revise your billing estimate! 17

18 Background on Job Cost Method of computation A Account budget - Forced B Buyout or fixed price contracts C Percent complete from cost code header D Default E Estimate to complete F Forced G Budget default Forced H Labor quantity I Include L Labor N No projection O Override P Percent complete Q Quantities R Revenue - Unit price contract S Summary T Total U Remaining unit rate V Revenue - Absolute value MoC Explanation D Default Projected final Final == the the greater greater of: of: Revised budget Actuals + open commitments Percent complete = (actual / projected final) x 100 F Forced manually Manuallyenter enterone oneof ofthe the following: Percent complete and projected final amount and quantity Projected amount and quantity that the project is over or under S & I Summary & Inclusion inclusion S & I is used when you want to budget at a higher level of detail, but record actuals at a lower level within the same cost Cost code. Code. 18

19 Introduction to Advanced Job Forecasting 19

20 Advanced Job Forecasting Advanced Job Forecasting enhances your organizations ability to manage and track jobs / project cost and progress. We are able to perform the following: Real-time visibility of job financials (Budgets, actuals, open commitments, pending change orders, billing) Identify detailed remaining project work by project task (labor, material, other costs) Accurately assess remaining job costs through current/forecasted unit rates Minimize project cost and scope increases User-defined methods of computation Timely forecast updates through status checks Accurately forecast remaining project costs through forecasted unit rates Audit trail of forecast details and forecast history Forecast calculations tailored to your business 20

21 Activating the Advanced Job Forecasting system You must activate the Advanced Job Forecasting system before you can enter and process forecast data Advanced Job Forecasting is linked with other JD Edwards systems When activated the system creates these links between the systems Advanced Job Forecasting system code: 51F The following must exist in the F OneWorld system control file table Data item field: SY51F Use module field: Yes 21

22 Activating the Advanced Job Forecasting system Work with enterprise system control P99410 Data item: SY51F Use module: Yes 22

23 Advanced Job Forecasting Overview There are two main components to the Advanced Job Forecasting system in JD Edwards User defined Methods of Computation Create customized Methods of Computation to use in the job cost system or the Advanced Job Forecasting system Create advanced formulas to use in the user defined methods of computation Can add an additional level of flexibility on how final amounts are calculated Advanced Job Forecasting Create job forecasts based the accounts associated with a job Can create multiple forecasts for the same job Enter detailed forecast information to forecast final amounts Forecasts can be edited, reviewed, and approved through a change control process Approved forecasts can be used to update financial information for a job or project 23

24 User defined Methods of Computation 24

25 User Defined Methods of Computation As previously discussed Method of computation Definition: Used to define the means by which to calculate job progress (projected final) information JDE offers over 15 different methods Each has specific situations where they apply Here are a few of the more widely utilized MOC s: Method D (Default) Greater of revised budgets OR actuals plus open commitments Based on amounts first and then units second Methods S (Summary) & I (Inclusion) S & I is used when you want to budget at a higher level of detail, but record actuals at a lower level within the same Cost Code. Method G (Revenue) Conservative approach To be able to recognize more revenue than what was budgeted, you must revise your billing estimate! 25

26 User Defined Methods of Computation Below is the file layout of the Advanced Job Forecasting system as it pertains to user defined methods of computation: Data type Data file Description Formula definition F51F90 Stores formula components and operators User defined MOC definition F51F94 Stores user defined MoC definition details User defined MOC rules F51F95 Stores user defined MoC rule details, operators, formulas, and relationships 26

27 User Defined Methods of Computation Advanced Job Forecasting lets you create custom, more complex, methods of computation Set of sequential rules that can be based on values or formulas Formulas must be created prior to creating the user defined MoC These formulas can be used in the job cost system or within the Advanced Job Forecasting system Additional processing involved to update HA, HU, FA, and FU ledgers Both user defined and standard MoC s are stored in the 51/MC UDC Hard coded field = N for the User Defined MoC to function properly 27

28 User Defined Methods of Computation Prior to creating a user defined MoC, must define any necessary formulas first Formula definition application P51F90 W51F90A Accessed through G51F41 28

29 User Defined Methods of Computation Formula definition setup P51F90 W51F90B Required: Formula name Formula definition Create formula definition using different types of components and operators Components include Ledger types Billing amounts Revised budget amounts Revised budget units Numeric factor Other formulas Operators Add (+), subtract (-), multiply (*), divide (/) Display options Abbreviated text Full text Clear options Clear all Clear last component or operator selected 29

30 User Defined Methods of Computation Formula definition rules Formula must begin and end with a component, not an operator Formulas cannot contain consecutive components, must alternate between adding components and operators Max number of components allowed: 24 Cannot have more than one nested formula (No formula within formula within formula) Number factors can be positive or negative but no more than six characters long System will follow the standard mathematical order of operations from left to right 30

31 User Defined Methods of Computation Formula definition setup P51F90 W51F90B If you realize you have made a mistake, you can always use the Clear All or Clear Last buttons As you add components and operators they will appear in the formula definition window 31

32 User Defined Methods of Computation Once all necessary formulas have been created, users can create their custom method of computation The user defined MoC must be added to the UDC 51/MC prior to creation Will supplement the standard MoCs within the job cost system User defined MoC must have value of N in the hard coded field of the UDC 51/MC 32

33 User Defined Methods of Computation Work with user-defined methods of computation P51F95 W51F95A Also accessible through the G51F41 menu Allows use for already created user defined MoC s 33

34 SM13 Creating user-defined methods of computation for job forecasts Add user-defined method of computation P51F95 W51F95B Must select MoC from UDC 51/MC and Assign effective date Sequential list of rules Format of rules Operator: If, then, and, assign, or, else Formula or value Relationship: =, >, <,!,, <=, =>,!>, <!, System will color code rules for easy viewing Can insert rows above or below current rows 34

35 Slide 34 SM13 try and get screenshot with EACAP in Value Shujaat, Mohammad, 3/28/2017

36 User Defined Methods of Computation Once you are done you can set up cost codes to use the user defined method of computation in: Job cost system Advanced Job Forecasting system To ensure that the projected final amounts for these cost codes are up to date, you must do the following: Run R51F140 - Update projected final for user defined MoC program Accessible from the G51F40 menu Proof or final mode Updates the HA, HU, FA, FU ledgers in the F0911 and F0902 Note: Recommended to run after G/L post program (R09801) and frequently on scheduler 35

37 User Defined Methods of Computation Three new MoC s introduced only for use in Advanced Job Forecasting MoC Description W If current revised EAC is blank, then current projected final amount is equal to HA. If current revised EAC is not blank, then the current projected final amount and units are equal to current revised EAC amount and units. Y If current revised ETC is blank, then current projected final amount is equal to HA. If current revised ETC is not blank, then the current projected final amount and units are equal to current revised ETC amount/units + actual amount/units. Z If total remaining amount is blank, then current projected final amount is equal to HA. If total remaining amount is not blank, then the current projected final amount /units are equal total remaining amount/units + actual amount/units. 36

38 Summary Feature Standard MoC User Defined MoC Available to use in job cost system X X Available to use in Advanced Job Forecasting system X X Allows custom formulas MoC W, Y, Z X X Allows custom rules within MoC X Requires separate UBE for updating projected final amounts X Can automate or manually update projected final amounts X 37

39 Job Forecasts 38

40 Job Forecast Overview Advanced Job Forecasting allows you to create detailed forecasts based on a job within the job cost system Automatically import cost codes and cost types for a job, within a specific time period Each row will include a MoC retrieved from the F0901 Advanced Job Forecasting includes three new MoC s that can be used MoC Description W Update revised estimate at completion (EAC) amounts and units Y Update revised estimate to completion (ETC) amounts and units Z Update remaining work information for the account 39

41 Job Forecast Overview Table structure for Advanced Job Forecasting Data Type Data File Description Account master F0901 Stores cost code structure info Job forecast header F51F100 Stores forecast header Information Job forecast detail F51F110 Stores forecast detail information Remaining work F51F115 Stores remaining work records for MoC type Z accounts Forecast header history F51F120 Store forecast header history information (after approval) Forecast detail history F51F125 Store forecast detail history information (after approval) 40

42 Job Forecast Overview Forecast process 1 Select job & cost code structure from F0901 & F F51F100 Job Forecast header 2 Create job forecast header Update F0902 projected final balances F0902 Account balances 3 Create job forecast details 8 9 Update F0902 forecast balance F0902 Account balances F51F115 Remaining Work details F51F110 Job forecast details 4 7 Move forecast to approve F51F120 & F51F125 History files Add remaining work details Edit remaining work forecast F51F115 Remaining work details F51F120 & F51F125 History files 5 6 Move forecast to review Edit job forecast details (P51F100) F51F110 Job forecast details 41

43 Job Forecast Inputs Forecast will pull prior period ledger and current balances for transactions posed on or before thru G/L date for the ledgers: Standard ledgers Custom ledgers/inputs Prior forecasts Actuals (AA/AU) Pending change orders (Specified in processing options) Current revised estimate at completion Budgets (JA/JU) Additional ledger types (Specified in processing options) Current revised estimate to completion Open commitments (PA/PU) Current balances for billing amounts 42

44 SM28 Job Forecast Overview All inputs stored in F51F110 Table Not included EAC & ETC Users can hide zero amounts or zero current amounts Users can update each accounts MoC Using the following MoC s Standard MoC s New Advanced Job Forecasting MoC s (W, Y, Z) User defined MoC Changed MoC will update F0901 when forecast approved Once forecast is saved, system updates F51F100 and F51F110 tables If MOC = Z, system also updated F51F115 table No updates made to any financial tables at this time 43

45 Slide 43 SM28 Shujaat, Mohammad, 3/30/2017

46 Job Forecast Overview System allows edits to the forecast after saving Ability to refresh balances in a forecast for the following: Actuals(AA/AU) Budgets(JA/JU) Open commitments(pa/pu) Pending change orders (ledger type Specified in processing options) When forecast is ready for review, change status to review Recommended to use the same version of P51F100 for forecast until approval Different processing options from different versions may cause unexpected results 44

47 Job Forecast Overview Level of rollup can be set in the processing options of P51F100 based on F0901 level of detail (LOD) Default LOD 9 accounts rolled up to LOD 8 Optional LOD 8 & 9 accounts rolled up to LOD 7 Must use MoC W, Y, Z on roll up account All accounts being rolled MoC = I (inclusion) Must click Ok for account rollup data to process Recommended: Exit form and return 45

48 Creating a Job Forecast Work with job forecast P51F100 W51F100B Accessible through the G51F10 menu Add job forecast P51F100 W51F100C Forecast name Job Number Must exist in the F0006 job master file Thru G/L Date - if left blank will default system date System will load remaining work data from prior forecast, if approved forecast found 46

49 Creating a Job Forecast Display options Hide zero amounts Hide current zero amounts Enter forecast data on row for each account Fields eligible for modification depend on MoC MOC = W MOC = Y Current revised ETC amount & Units MOC = Z Current revised EAC amounts & Units Enter remaining work data Can also update Remark, TBC amounts and Units Can also set detailed accounts to be summarized under associated lower level accounts Based on processing options Summary rollup account must use MoC W, Y, or Z Detail accounts must use MoC = I 47

50 Creating a Job Forecast Form will display total and subtotal lines based on LOD Each time you save, system will update F51F110 table Change the forecast status to review once done 48

51 Entering Remaining Work Data For accounts where MoC = Z, must enter remaining work data Row exit -> Remaining work At bottom enter row for each remaining work item for the account Must complete at least to of the following fields Cost to complete Quantity and UM Fields Cost to Complete Rate Cost to Complete Amount System will calculate the other field Updating an existing line will cause the system to recalculate the fields When you save system will update Total Cost to Complete Total cost at Completion Optionally can update total remaining work Units field in the header SM26 SM27 49

52 Slide 49 SM26 manually entered amounts or units - how to do update or change when forecasts change or when actuals are booked Shujaat, Mohammad, 3/29/2017 SM27 when actuals and budgets are updated, how does the system handle the forecasted work out there Shujaat, Mohammad, 3/29/2017

53 Reviewing Forecast Data Typical forecast status flow Open In review (50) Approved (90) Optionally can also be approved to post to alternate ledger for final projected amount Open In review (50) Approved (90) Approved for alternate ledger (95) Can create custom statuses But system based on hard coded statuses: Open, review, approved 50

54 Review Job Forecasts Can prevent changes by disallowing them at review status Change control process Create change control process through JDE security Can only have one forecast per job at in review, approved, or approved for alternate ledger statuses All other forecasts must remain at open status Forecasts can be moved back to open from in review if edits are not allowed at in review status 51

55 Approving Job Forecasts Function/Update In review status Approved status Check to see if status change is allowed X X Write or update record in the forecast history tables X X Update Forecast Status in the forecast tables X X Update the F0902 and F0911 with forecast amounts for forecast ledger types (EAC, WTC, TBC, FB) X X Can also change projected final amounts for HU, HA, FA & FU ledgers in the F0911 & F0902 X System will update MoC in the F0901 if changed in forecast X 52

56 SM24 SM25 Approving Job Forecasts Forecasts can be moved to in review or approved by: Manually with the edit job forecast program (P51F100) Running the update job forecast status program (R51F110) Updates to F0901, F0902, F0911 can be controlled by processing options Can manually update using R51F130 Update projected final for forecast MoC Only if MoC = W, Y, or Z If using user defined MoC: Run R51F140 Update projected final for user defined MoC 53

57 Slide 53 SM24 Confirm if W, Y, Z are not transferred to Job Cost when updated with UBE Shujaat, Mohammad, 3/29/2017 SM25 Will the Projected final amounts and units be interactively updated while in the forecast screen Shujaat, Mohammad, 3/29/2017

58 Review Job Forecast History History tables written or updated when: Forecast is moved to in review Forecast is moved to approved Data is now stored in the following files: Forecast header history - F51F120 Forecast detail history - F51F125 Not updated when forecast is changed at the same status Version of P51F100 in the processing option will alter how data is displayed 54

59 Review Job Forecast History Work with job forecast history (P51F120 W51F120A) Must enter: Job number Forecast status When viewing can alter data displayed: Hide zero amounts Hide zero current amounts QBE 55

60 Benefits of Using Forecasts 56

61 Benefits of Using Forecasts Forecasts allow users to create different scenarios with their Job s to see how if will affect their projected final amounts (what If analysis) Manually enter details on remaining work data to update forecasts Ability to create user defined methods of computation to use within forecasts Ability to review and approve forecasts prior to updating projected finals (workflow) 57

62 Advanced Job Forecasting Summary 58

63 Advanced Job Forecasting Summary Advanced Job Forecasting itself introduces powerful new functionality Also adds new functionality to be used within job cost system Provides ability to create user defined methods of computation to be used within job cost or forecasting Provides ability to create forecasts based on jobs to project final amounts Provides custom ledger types Automatic updates to the GL Forecast history 59

64 Advanced Job Forecasting Summary Feature Job cost system Advanced Job Forecasting Create Jobs to track costs of Job components X Create work breakdown structure using cost codes and cost types X Use standard methods of computation to update G/L X X Use user defined methods of computation to update G/L X X Create multiple forecasts based on a single Job to forecast projected final amounts X Update F0902 ledger X X Update HA, HU, FA, FU ledgers in the F0911 & F0902 Tables X X 60

65 Q&A

66 Upcoming Events Find Grant Thornton at these upcoming events: April 11-13: Modern Finance Experience and HCM World in Boston, MA April 18 webcast: Finishing strong in the ASC 606 marathon: An in-depth look at designing for success April 19 webcast: Including Taleo in your Oracle ERP investment April 24-27: SuiteWorld in Las Vegas, NV May 17 webcast: Oracle Cloud HCM releases, patches and enhancements, oh my! June 6-9: OHUG global conference in Orlando, FL June 8 webcast: Project management for HCM Cloud implementations June 14 webcast: Getting to know all about you "Profile Management" June 18-21: HIUG Interact in Orlando, FL July 13 webcast: Oh the places you will go be a Maestro, with composer in the clouds Find your silver lining in the cloud: grantthornton.com/silverlining 62

67 Contact Me 63

68 Please Complete Your Session Evaluation Evaluate this session in your COLLABORATE app. Pull up this session and tap "Session Evaluation" to complete the survey. Session ID: