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The University of Tennessee Project IRIS

SAP R/3 Enterprise Structure and Master Data ( inancia!"


PHASE II - Business Blueprint Interim Deliverable

&his $ocument $e%ines a propose$ enterprise structure an$ master $ata %or the 'niversit( within the )/* s(stem# &he or+ani,ation structure is establishe$ to encapsulate an$ mo$el the -inancial. Human )esources an$ /o+istics $ata within the )/* s(stem# &he propose$ enterprise structure was mo$ele$ a%ter reviewin+ 'niversit( %inancial reports. le+ac( s(stem $ocumentation. an$ best practices in Hi+her E$ucation as well as $iscussions with team members# It will be re%ine$ throu+h a series o% meetin+s to $iscuss the business +oals. or+ani,ational structure. an$ the hi+h-level business processes to be inclu$e$ in the 'niversit( o% &ennessee0s SAP )/* s(stem#

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Enterprise Structure
&he Enterprise Structure in )/* re%ers to the or+ani,ational structure o% the Institution# &he or+ani,ational elements in this structure allow encapsulation o% con%i+uration settin+s an$ $ata in each mo$ule# -or e1ample. the compan( co$e or+ani,ational element encapsulates the %inancial accountin+ settin+s an$ $ata in the %inancial accountin+ mo$ule %or an enterprise# Each element in the )/* enterprise structure is $e%ine$ below# &he )/* mo$ule in which each or+ani,ational element appears is +iven in parentheses ne1t to its name# &he propose$ 'niversit( o% &ennessee or+ani,ational elements are +iven un$er each or+ani,ational element# $!ient ($ross App!ication" A client in )/* is a technical entit( containin+ con%i+uration. master $ata an$ transactions %or an or+ani,ation# -or e1ample the or+ani,ation ma( $esi+nate 2lient 1!! in the pro$uction s(stem P)D as the client in which $ata ma( be entere$# 3ther clients ma( be use$ %or $evelopment. testin+ an$ trainin+# Proposa!% &he 'niversit( will have onl( one pro$uction client in the pro$uctive s(stem 4 2lient 1!!# $o&pany $ode ( inancia! Accountin# ' I" &he 2ompan( 2o$e is the smallest or+ani,ational unit %or which a complete sel%-containe$ set o% accounts can be $rawn up %or purposes o% e1ternal reportin+# Proposa!% &he 'niversit( will use onl( one 2ompan( 2o$e - '&# (usiness Area ( inancia! Accountin# ' I" Business areas are units. within an institution. %or which a balance sheet an$ income statement can be pro$uce$# In hi+her e$ucation. business areas are t(picall( use$ to represent %un$ +roups such as 2urrent 'nrestricte$. 2urrent )estricte$. etc# %or which balance sheets an$ income statements are re5uire$# In a$$ition to balance sheets b( %un$ +roups. the 'niversit( o% &ennessee re5uires a separate internal balance sheet an$ income statement %or each bu$+et entit( such as 6no1ville. 7artin. 2hattanoo+a. etc# Proposa!% &he 'niversit( will have business areas which represent a uni5ue combination o% -un$ 8roup an$ Bu$+et Entit(# All e1istin+ %un$ +roups an$ bu$+et entities will be set up as business areas# -or asset an$ liabilit( entries. these business areas will be entere$ b( users# -or revenue an$ e1pen$iture entries. these business areas will be automaticall( $e%aulte$ %rom cost centers an$ 9BS Elements# &he %ollowin+ is a sample partial list o% business areas i$enti%ie$:

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und )roup 11 4 2urrent 'nrestricte$ E$ucational an$ 8eneral -un$s 1* 4 2urrent 'nrestricte$ Au1iliar( -un$s 21 4 2urrent )estricte$ E$ucational an$ 8eneral -un$s 2* 4 2urrent )estricte$ Au1iliar( -un$s *! 4 En$owment -un$s ;! 4 /i%e Income -un$s ; 4 Annuit( -un$s 1 4 'ne1pen$e$ Plant -un$ 2 4 Plant -un$s %or )etirement o% In$ebte$ness * 4 Plant -un$s %or )enewal an$ )eplacement ; 4 Investe$ in Plant -un$s <! 4 /oan -un$s =! 4 A+enc( -un$s 11 4 2urrent 'nrestricte$ E$ucational an$ 8eneral -un$s 1< 4 2urrent 'nrestricte$ Hospital -un$s 2< 4 2urrent )estricte$ Hospital -un$s

(ud#et Entity !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !1 4 6no1ville !2 4 Space Institute !; - 2hattanoo+a !; 4 2hattanoo+a

(usiness Area 11!1 1*!1 21!1 2*!1 *!!1 ;!!1 ; !1 1!1 2!1 *!1 ;!1 <!!1 =!!1 11!2 1<!; 2<!;

unctiona! Area ( inancia! Accountin# ' I" &he -unctional Area is an or+ani,ational unit in Accountin+ that classi%ies the e1pen$itures o% an or+ani,ation b( %unction# Proposa!% &he 'niversit( will use %unctional areas to enable reportin+ b( %unction# &hese %unctional areas will be $e%aulte$ %rom cost centers an$ 9BS Elements# &he %ollowin+ is a sample list o% %unctional areas: unction $ode !1 4 Instruction !2 4 )esearch !* 4 Public Service !; 4 Aca$emic Support ! 4 Stu$ent Services !< 4 Institutional Support !" 4 3peration an$ 7aintenance o% Ph(sical Plant !> 4 Scholarships an$ -ellowships != 4 Au1iliar( Enterprises 1! 4 Hospitals 11 4 Sta%% Bene%its 12 4 3ther E1pen$itures 1* 4 Service 2enters -i+ure 1 shows the %inancial accountin+ structures# unctiona! Area 1!1! 1!2! 1!*! 1!;! 1! ! 1!<! 1!"! 1!>! 1!=! 11!! 111! 112! 11*!

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Client

Co !an" Co#e UT

Business Area Business Business Area Area Cur Unres E&G Knoxville

Fun$tional Area Fun$tional Area Fun$tional Area %nstru$tion

-i+ure 1 $ontro!!in# Area ($ontro!!in# ' $*" A 2ontrollin+ Area in )/* is the or+ani,ational unit within an institution. use$ to represent a close$ s(stem %or cost accountin+ purposes# A controllin+ area ma( inclu$e one or more compan( co$es which must use the same operative chart o% accounts as the controllin+ area# Proposa!% &he 'niversit( o% &ennessee will use onl( one 2ontrollin+ Area 4 '&# 2ompan( 2o$e '& will be assi+ne$ to 2ontrollin+ Area '&# unds Mana#e&ent Area ( unds Mana#e&ent ' M" A -un$s 7ana+ement Area in )/* is the or+ani,ational unit within an institution. use$ to represent a close$ s(stem %or %un$s mana+ement an$ bu$+etin+# A -un$s 7ana+ement Area ma( inclu$e one or more compan( co$es an$ one or more controllin+ areas# Proposa!% &he 'niversit( o% &ennessee will use onl( one -un$s 7ana+ement Area 4 '&# 2ompan( 2o$e '& an$ 2ontrollin+ Area '& will be assi+ne$ to -un$s 7ana+ement Area '&# -i+ure 2 shows the relationship between the 2ompan( 2o$e. the 2ontrollin+ Area an$ the -un$s 7ana+ement Area#

Co !an" Co#e UT

Controllin& Area UT

Fun#s 'ana&e ent Area UT

-i+ure 2

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Master Data
7aster $ata structures in )/* represent $ata relatin+ to in$ivi$ual ob?ects. which remain unchan+e$ over an e1ten$e$ perio$ o% time# &his allows such $ata to be create$ once an$ use$ man( times# 7aster $ata is also use$ to vali$ate an$ classi%( transaction $ata %or reportin+#

Financial Accounting Master Data (FI)


$hart of Accounts &he 2hart o% Accounts is a collection o% +eneral le$+er accounts# Each compan( co$e is assi+ne$ to a chart o% accounts. an$ the controllin+ area is assi+ne$ to the same chart o% accounts# Proposa!% 3nl( one 2hart o% Accounts - '& will be use$ %or the 'niversit( o% &ennessee# 2ompan( 2o$e '& an$ 2ontrollin+ Area '& will be assi+ne$ to 2hart o% Accounts '&# )enera! +ed#er Accounts &he 8eneral /e$+er Accounts @8/ AccountsA are the structures that classi%( $ebit an$ cre$it values %or accountin+ transactions in the -I mo$ule an$ %orm the basis %or creatin+ the balance sheets an$ income statements# &here are %ive t(pes o% 8eneral /e$+er Accounts in )/* - assets. liabilities. %un$ balances. revenues an$ e1pen$itures# Asset. /iabilit( an$ -un$ Balance 8/ Accounts can be use$. in combination with business areas to create internal balance sheets b( business area# )evenue an$ E1pen$iture 8/ Accounts represent the hi+hest level at which revenues or e1pen$itures are recor$e$ b( the Institution# &he( can be use$ in combination with business areas an$ %unctional areas to create income statements b( %unction an$ business area# )evenue an$ e1pen$iture can also be %urther broBen $own in the 2ontrollin+ mo$ule# -i+ure * shows the relationship between the chart o% accounts an$ the compan( co$e:

C(art of A$$ts UT

Assets )ia*ilities

Co !an" Co#e UT

Fun# Balan$es Revenues


Ex!en#itures

-i+ure *

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Proposa!% At the 'niversit( o% &ennessee several $i%%erent e1istin+ co$es will be mappe$ to )/* 8eneral /e$+er Accounts# E,istin# $ode 1# Assets ACCCCCCCC @e#+# A1"!1!!!1 2ash on Han$ &reasurerA 2# /iabilities ACCCCCCCC @e#+# A!1 <!!! A/P 6no1villeA *# &(pe o% -un$ Balance or )eserve @e#+# == Balance or >; )eserve %or EncumbrancesA ;# E1pen$iture 3b?ect 2o$es @e#+# *=1 3peratin+ SuppliesA # /e$+er Activit( 2o$es %or E1pen$itures an$ &rans%ers 3ut @e#+# ! ! 2har+es %or )outine E1penseA <# 7a?or an$ 7inor Sources o% -un$s @e#+# !1!1 &uition an$ -ees )esi$ent EnrollmentA "# /e$+er activit( co$es %or Income an$ &rans%ers In @e#+# !!1 En$owment Income 4 '& En$owmentsA ># Income activit( co$es CC @e#+# !1 )entA )evenue Accounts "!!!!! throu+h "===== @e#+# "!1!1! &uition an$ -ees )esi$ent EnrollmentA Type of R/3 Account Asset Account Proposed -u&.er Ran#e 1!!!!! throu+h 1===== @e#+# 1!1!!1 2ash on Han$ D Business Area 111"A 2!!!!! throu+h 2===== @e#+# 2 <!! Accounts Pa(able D Business Area 11!1A *!!!!! throu+h *===== @e#+# *==!!! 'nreserve$ -un$ Balance or *>;!!! -un$ Balance )eserve$ %or EncumbrancesA ;!!!!! throu+h ;===== @e#+# ;*=1!! 3peratin+ SuppliesA

/iabilit( Account

-un$ Balance Account

E1pen$iture Account

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Controlling and Project System Master Data (CO, PS and PCA)


Revenue E!e&ents )evenue elements are use$ to classi%( revenues in 2ontrollin+# &he( are linBe$ to revenue 8/ accounts on a one-%or-one basis an$ have the same number an$ $escription# E#+# )evenue Element "!1!1! &uition an$ -ees )esi$ent represents 8/ Account "!1!1! &uition an$ -ees )esi$ent in 23# $ost E!e&ents 2ost elements are use$ to classi%( costs in 23 accor$in+ to ob?ect o% e1pen$iture# Primar( 2ost Elements represent e1pen$iture 8/ Accounts in 23# &he( are linBe$ to E1pen$iture 8/ accounts on a one-%or-one basis an$ have the same number an$ $escription# E#+# 2ost Element ;*=1!! 3peratin+ Supplies represents 8/ Account ;*=1!! 3peratin+ Supplies in 23# Proposa!% Primar( cost elements will be set up %or all e1pen$iture 8/ Accounts# Secon$ar( cost elements are use$ %or internal allocations within a controllin+ area such as overhea$# &hese cost elements are not $irectl( linBe$ to an E1pen$iture 8/ account# Proposa!% /e$+er Activit( 2o$es %or !1! -acilities an$ A$min 2osts an$ similar internall( allocation costs will be mappe$ to secon$ar( cost elements# Secon$ar( cost elements will be set up in the ran+e !!!!! to =====# E#+# !1!!! - -acilities an$ A$min 2osts# $ost $enter and $ost $enter /ierarchy A 2ost 2enter is a unit within a controllin+ area that represents a revenue an$ cost collector %or permanent activities# A cost center can be linBe$ to a compan( co$e. a business area. a %unctional area. a %un$. a %un$ center an$ a pro%it center allowin+ all these co$es to be automaticall( $e%aulte$ when a user enters a cost center in a $ocument# 2osts an$ revenues poste$ to a cost center can thus be automaticall( poste$ to the compan( co$e. business area. %un$. %un$ center an$ pro%it center linBe$ to the cost center# A stan$ar$ hierarch( o% cost centers is re5uire$ %or the controllin+ area an$ is use$ b( $rill-$own reports# In a$$ition 2ost 2enters ma( optionall( belon+ to a$$itional alternative hierarchies that can also be use$ b( $rill-$own reports# Proposa!% &he 'niversit( will use 2ost 2enters to represent its current unrestricte$ income an$ e1pen$iture accounts @I an$ E accountsA in )/*# All E accounts with seven-$i+it numbers will be represente$ b( cost centers with the same seven-$i+it number# All I an$ E accounts with nine-$i+it numbers will be represente$ b( cost centers with ten-$i+it numbers# &he ten-$i+it number will be create$ b( a$$in+ a ,ero in the ei+hth position in the ten-$i+it number# E#+# Account E!11!2;!1 will be represente$ b( cost center E!11!2;!!1# &he stan$ar$ cost center hierarch( will be use$ to represent the or+ani,ational +roupin+s to show -un$ 8roup EBu$+et Entit( E-unction E 2olle+e or Division E DepartmentE 2ost 2enter @" $i+itA E 2ost 2enter @1! $i+itA# An alternative hierarch( will be create$ to represent the State Appropriation hierarch(# -i+ure ; shows the relationship between a cost center an$ other master $ata an$ or+ani,ational elements#

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Com$any Code U%

Functional Area Instruction

Cost Center E0110+4001

Profit Center L011002401 Chemistry

Fund E011024001

Business Area Cur Unrest E& !no"#il e

Fund Center U011002401 Chemistry

-i+ure ; 0or1 (rea1do2n Structure E!e&ent (0(S E!e&ent" and 0(S E!e&ent )roup A 9BS element is an element in a pro?ect worB breaB$own structure @9BSA an$ is use$ as a revenue an$ cost collector %or activities with $iscrete start an$ en$ $ates# At least one 9BS element must e1ist in a pro?ect# A 9BS element can be linBe$ to a compan( co$e. a business area. a %unctional area @throu+h substitutionA. a %un$. a %un$ center an$ a pro%it center allowin+ all these co$es to be $e%aulte$ when a user enters a 9BS Element in a $ocument# 2osts an$ revenues poste$ to a 9BS Element can be automaticall( poste$ to the compan( co$e. business area. %un$. %un$ center an$ pro%it center linBe$ to the 9BS Element# A$$itionall(. collecte$ costs ma( be bille$ or automaticall( trans%erre$ to cost centers or 8/ Accounts perio$icall(# &here is no stan$ar$ hierarch( re5uire$ %or 9BS elements# 9BS Elements can be +roupe$ to+ether into 9BS Element 8roups %or reportin+# Proposa!% &he 'niversit( will use 9BS Elements to collect revenues an$ costs associate$ with costreimbursable +rants. an$ all other %un$s other than current unrestricte$ %un$s# &hus 9BS elements will be use$ to collect revenues an$ costs %or current restricte$ %un$s. en$owment. annuit( an$ li%e income %un$s. plant %un$s. loan %un$s an$ a+enc( %un$s# -or e1ample a balance account %or restricte$ %un$s @B AccountA with a nine-$i+it number. will be represente$ b( a 9BS Element with a nine-$i+it number# &he nine-$i+it number will be create$ b( replacin+ the %ourth an$ %i%th $i+it with two ,eros# E#+# Account B!1==1!2; will be represente$ b( 9BS Element B!1!!1!2;# An e1pen$iture account %or restricte$ %un$s @) AccountA with a nine-$i+it number will be represente$ b( a 9BS Element with a ten-$i+it number# &he ten-$i+it number will be create$ b( a$$in+ a ,ero in the ei+hth position# E#+# Account )!11!2;1! will become 9BS Element )!11!2;!1!# )elate$ B an$ ) accounts as in the above case will appear in the same pro?ect structure# -i+ure shows the relationships between a 9BS Element an$ other master $ata an$ or+ani,ational elements#

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Com$any Code U%

Functional Area &esearch

'B( Element B01001024

Profit Center L011002401 Chemistry

'B( Element &011024010

Fund B01001024

Fund &011024010 Business Area Cur &est E& !no"#il e

-i+ure

Fund Center U011002401 Chemistry

Profit $enter and Profit $enter /ierarchy A Pro%it 2enter is an or+ani,ational unit in )/*. within which costs an$ revenue can be anal(,e$# 2osts an$ revenues poste$ to cost centers an$ 9BS Elements can be automaticall( poste$ to pro%it centers# A stan$ar$ pro%it center hierarch( is re5uire$ an$ is use$ b( $rill-$own reports. an$ multiple alternative pro%it center hierarchies can be create$ to be use$ b( $rill-$own reports# Proposa!% &he 'niversit( will use Pro%it 2enters to represent its reportin+ or+ani,ation units in )/* so that reports can be create$ across cost centers an$ 9BS element b( or+ani,ational unit# &he pro%it center number will be base$ on the $epartment number# -or e1ample. $epartment !11!!2;!1 will be mappe$ to pro%it center /!11!!2;!1# &he stan$ar$ pro%it center hierarch( will be use$ to represent the reportin+ or+ani,ational +roupin+s to show Bu$+et Entit( E2olle+e or Division E Department#

Funds Management Master Data


$o&&it&ent Ite& and $o&&it&ent Ite& /ierarchy 2ommitment items represent bu$+et an$ %un$ accountin+ classi%ications o% 8/ Accounts an$ cost elements in the -un$s 7ana+ement 7o$ule# &he( are thus use$ to re%lect the t(pe o% revenues an$ e1pen$itures bein+ bu$+ete$ an$ also to $etail balances %or each %un$ in -7# Proposa!% &he 'niversit( will create 2ommitment items %or each Bu$+et 3b?ect 2o$e @two $i+itA# -or e1ample bu$+et ob?ect co$e 11 4 A$min an$ Pro%essional Salaries will be mappe$ to commitment item 11 A$min an$ Pro%essional Salaries# In a$$ition. all %un$ balance 8/ accounts will be mappe$ to -7 on a one%or-one basis an$ assets an$ liabilities 8/ accounts will be mappe$ to 2ommitment Items on a man(-to-one basis#

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-i+ure < shows the relationship between 8/ accounts. cost elements an$ commitment items:

Assets G) A$$ount )ia*ilities G) A$$ount Fun# Balan$e G) A$$ount Revenues G) A$$ount Ex!en#itures G) A$$ount Revenue Ele ent /ri ar" Cost Ele ent .e$on#ar" Cost Ele ent
und -i+ure <

Assets Co it t %te )ia*ilities Co it t %te Fun# Balan$e Co it t %te Revenues Co it t %te /ri ar" Cost Co it t %te .e$on#ar" Cost Co it t %te

A %un$ represents the lowest level o% %un$in+ re5uirin+ a bu$+et# &he %un$ master inclu$es an application o% %un$ an$ one or more sources o% %un$s# Bu$+et rules can be speci%ie$ separatel( %or each %un$# Proposa!% &he 'niversit( will use -un$s %or storin+ the bu$+ets an$ actuals %or all its accounts# 3nl( one application o% %un$ will be create$ %or the 2urrent 'nrestricte$ %un$ +roup but in$ivi$ual Sources o% %un$s will be create$ to represent each account# &he current unrestricte$ sources o% %un$s will have the same numbers as the cost centers representin+ such accounts @seven-$i+it or ten-$i+it numberA# -or all other %un$ +roups an application o% %un$ an$ a source o% %un$s will be create$ %or each account# &hese sources an$ applications o% %un$s will have the same number as the 9BS Element representin+ such accounts @ten-$i+it numberA# Attributes such as the Fice-2hancellor an$ Dean/Department co$es will be entere$ into user $e%ine$ %iel$s on the %un$ master# unds $enter and unds $enter /ierarchy A %un$ center is the or+ani,ational unit responsible %or preparin+ an$ monitorin+ the bu$+et %or one or more %un$s# -un$ centers are or+ani,e$ into a hierarch( alon+ which the bu$+et %lows# Since the bu$+et %lows alon+ the %un$ center hierarch(. no alternative hierarchies are allowe$# Proposa!% &he 'niversit( will create %un$ centers base$ on the reportin+ or+ani,ation hierarch( o% Bu$+et Entit(E 2olle+e or DivisionE Department# &he %un$ center number will be base$ on the $epartment number# -or e1ample. $epartment !11!!2;!1 will be mappe$ to %un$ center '!11!!2;!1#

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