om3 positionbudgeting control
DESCRIPTION
Position Budgeting Control-HyperionTRANSCRIPT
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1Position Budgeting & ControlHuman Resources and Finance
Ross Building
Room 136
1 p.m. 5 p.m.
October 18, 2005
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2Welcome!
Introductions of Group Name Department
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3Workshop Logistics
Tent Cards
Rest Rooms
Breaks
Parking Lot
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4Workshop Agenda
1. Discuss WorkshopObjectives
2. Overview of PBC
3. Review the ProposedFuture Process
4. Capture Issues in theParking Lot
5. Discuss Next Steps
6. Adjourn
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5Our Objective Today
Discover SAP terminology, definitions, and capabilities.
Specific opportunities for businesstransformation.
Validate Requirements for PBC
Identify gaps in requirements
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6What will come from this Meeting?
The output from this meeting includes
A Business Process Review Report.
To-Be Process Flowcharts.
Gap Analysis Report.
Functional Specifications Report
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7Lets Get Started!
Our topic today is
Position Budgeting & Control
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8What is PBC?
PBC is the abbreviation for PositionBudgeting and Control.
PBC resides in the HR modules ofSAP.
PBC forecasts future salary andbenefit costs per employee andestablishes commitments(encumbrances) by cost elements.
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9PBC is New SAP Functionality!
The OnePurdue team does not yet haveaccess to the PBC module.
Today, you will learn about assumedfunctionality. Assumptions are based onconversations with Texas State Universityand Johns Hopkins. Bearing Pointconsultants have also provided information.
We will not be able to show actual screenshots from SAP.
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Lets Review Cost Elements
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Core SAP Finance
Functional Area(4 Characters)
Functional Area(4 Characters)Functional Area
Sponsored Program(10 Characters)
Funded Program(10 Characters)
Internal Order(10 Characters)WBS Elements(24 Characters)
Funded ProgramInternal OrderWBS Element
Fund Center(10 Characters)
Fund Center(10 Characters)
Cost Center(10 characters)
Cost CenterFund Center
Fund(8 Characters)
Fund(8 Characters)Fund
Sponsored Class(5 Characters)
Commitment Item(5 Characters)
Cost Element(5 Characters)G/L Account
G/L Account(5 Characters)
Business Area(2 Characters)
Business Area(2 Characters)
Business Area(2 Characters)Business Area
Business Area(2 Characters)
Financial Mgmt Area(3 Characters)
Controlling Area(3 Characters)Company Code
Company Code(3 Characters)
GM(Grants Management)
FM(Funds Management)
CO(Controlling)
SL(Special Purpose)
FI(Financial)
Financial Master Data Integration
For display purposes only
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Why Implement PBC?
Enhanced fiscal management.
Replacement of the Compensationand Account Projection System(CAPS).
Provide salary commitmentinformation in the businesswarehouse. This will facilitateprojections in the Researcher portal(AIMS).
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Overview of PBC Process HR creates and manages positions.
As positions are filled and employee salarydistribution is established, the PBC commitmentprocessor will generate a commitment against therelevant cost element.
The commitment processor can be run daily,weekly, bi-weekly, or monthly.
A list of errors generated as a result of thecommitment process may be directed toresponsible parties via workflow for correction.
As actual payroll is posted, the commitment isreduced.
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Proposed PBC Requirements
Prior to holding this workshop,requirements were gathered fromprocess owners.
Process owners include John Shipley,John Beelke, and Lucia Anderson.
The following slides discuss therequirements identified for PBC.
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Staff Group CommitmentStaff Group CommitmentRequirementsRequirements
Tenured/Tenure Track, Clinical, Research,Visiting, Non TT LT 50%, & Emeritus Faculty
Limited Term and Continuing Lecturers Post Docs, Interns, Residents, Fellowships Clerical and Service Management, Administrative/Supervisory,
Professional, Professional Assistant, Non-Exempt Professionals
Graduate Staff, Residence Hall Counselors
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Staff Group CommitmentStaff Group CommitmentRequirementsRequirements
Open issue: Positive pay employees(employees that must report timethrough the time module to receive pay)may not be eligible for fundscommitments. Further research is beingconducted with SAP.
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Staff Groups Not Committed
Non Pays - Adjunct, Courtesy, Associate,Affiliate, Visiting Scholar, IPFW IU Faculty
Students
Temporary Clerical, Service, and A/Ppositions
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Pay Type CommitmentRequirements
Base Pay established on IT 08, Create BasePay.
Any other pay established on IT 14,Recurring Payments/Deductions, and IT 15,Additional Payments.
Recurring and additional payments couldinclude administrative supplements,special merit pay, overloads, etc.
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Funds CommitmentRequirement
All
SAP does not provide an option toencumber only certain funds.
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Positions CommitmentRequirement
Filled Only
Vacancies may be encumbered through PBCbut are considered out-of-scope for initialimplementation.
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Fringe Benefits CommitmentRequirement
Filled only, based on actual employeedeductions.
Open issue: We do not know how fringebenefits will be charged (central pool ordistribution account). This decision isneeded to determine impact on PBCprocess.
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FTE CommitmentRequirement
Committed amount should reflect theFTE of the position.
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Requirement for CommittedPeriods
Ability to commit across multiple fiscalyears (grant periods frequently cross fiscalyears).
Open issue: This is a planned SAPenhancement. Current PBC functionalityonly commits for fiscal year. SAP plans todeliver this functionality.
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Future Dated TransactionRequirements
Ability to establish commitments forplanned personnel actions such as salaryincreases, leaves or sabbaticals, EVPRschedule changes, etc.
Open issue: PBC will commit any futuredated personnel action established for theemployee. We must determine a strategyfor creating and managing future datedtransactions.
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Ad Hoc CommitmentRequirement
Ability to establish an ad-hoc commitmentto manage expenses for student ortemporary labor.
Open issue: PBC does not provide thisfunctionality.
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Cost Distribution Process
Three methods for distributing costs in SAP:
1. Each organizational unit (department) willprovide a default cost distribution. Thisdefault distribution may be inherited bythe employee holding the position linkedto the org unit.
2. Each assignment (employee-in-position)record may have a unique costdistribution. This distribution is capturedon IT 27, Create Cost Distribution.
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Cost Distribution Process cont.
Three methods for distributing costs in SAP:
3. Each positive pay employee may entertime and cost distribution through CATS(the time entry system).
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Cost Distribution Process cont.
We propose using IT 27 to capture costdistribution for all employees.
IT 27 will be used by PBC to forecast andcommit salary and fringe benefit expenses.
Open issue: Need the capability to updatedistribution data in decentralizedlocations.
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Cost Distribution Process cont.
Costs may be distributed per employee bycost center, fund, funds center, etc.
Each distribution line may be establishedfor a unique period of time.
Distribution may be established acrossfiscal years.
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IT 27 - Create Cost Distribution
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Roles & Responsibilities
Lets take a few minutes to discussthe roles and responsibilities that weenvision with PBC.
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Cost Distribution Manager
Establishes cost distribution on IT 27 for allrelevant employees in their area.
Serves as the point of contact for any errorsgenerated as a result of the PBCcommitment run.
Corrects distribution errors in a timelymanner to ensure that payroll posting is notdelayed.
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Commitment RunAdministrator
Responsible for carrying out the runs for theautomatic commitment creation.
Any error messages that can not be workflowed to a responsible person are defaultedto the run administrator for manual routing.
Verifies that all workflows are operating.Will restart any failed workflows.
May customize the automatic commitmentcreation.
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Payroll Simulation Manager
Responsible for the correct running ofpayroll simulation and the test transferof the payroll results to Accounting.
May be responsible for identifying androuting cost distribution errors toresponsible parties.
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PBC Accounting Manager
Responsible for processing the messagesissued during the document creationprocess.
Procures the funds required if anavailability control issue.
Arrangements an account assignment if afinancing issue.
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To-Be Process SlideProcess to Create Salary Encumbrances
PBC Accounting ManagerCommitment Run Administrator Payroll Simulation ManagerCost Distribution Manager
Salary distribution established for all employees
on IT 27 via Manager Self Service or Workflow
Commitment Processor runs per
schedule . The processor forecasts salary and benefit
expenses from IT 27 cost distribution
Start
Commitment Established in FM & GM
Errors Identified from Processor Run ?
NO
Yes Accounting Error
Fix Accounting Error Fix Payroll Error
Yes Payroll ErrorYes Distribution Error
Errors Corrected
End
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Thank you for Participating!
Sheryl GickOnePurdue1801 Kalberer RoadWest Lafayette, IN 47906(email: [email protected])
HR LeadSue Davis
Celeste Bailey (BP)
e-RecruitmentAmy Clawson
Venkat Mondreti (BP)
OM, PBCSusan Newton
Theresa Hairell(( BP)
PAPeggy Jasper
Theresa Hairell(( BP)
PayrollRick Miller
Troy Markusson (BP)
Time MgmtGene Farmer
Eric Herron (BP)
Debbie Dillman-Crowell Sheryl Gick Greg Gick Jane WhiteSue Gibson
BenefitsGale Rhodes
Cindy Brinsmaid (BP)
Julie Gregory TBD (BP)