FastFacts Feature Presentation

1. We are using audio during this session, so please dial in to our conference line… • Phone number: 877-468-2134 • Participant code: 182500 FastFactsFeature Presentation March 5, 2009 © 2009 The Johns Hopkins University. All rights reserved.

2. Today’s Topic • In today’s session, we’ll discuss: • An overview of commitments. • Defining commitments • Using document numbers to identify commitments • Researching commitments • Identifying and resolving ‘stuck’ commitments

3. Today’s Presenter • Art Kennedy • Senior accountant for the Office of Financial Quality Control (FQC) in JHU’s Controller’s Office

4. Session Segments • Presentation • Art will provide an overview of commitments. • During Art’s presentation, your phone will be muted. • Q&A • After the presentation, we’ll hold a Q&A session. • We’ll open up the phone lines, and you’ll be able to ask questions. • Art will answer as many of your questions as time allows.

5. Contact Us • If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: fastfacts@jhu.edu • You can also send us an instant message! • GoogleTalk – HopkinsFastFacts@gmail.com • AOL Instant Messenger – HopkinsFastFacts • MSN – FastFacts@jhu.edu

6. Survey • Survey • At the end of this FastFacts session, we’ll ask you to complete a short survey. • Your honest comments will help us to enhance and improve future FastFacts sessions.

7. Overview of Commitments

8. Agenda In today’s presentation, we’ll looking at: • Identifying various types of commitments. • Where to go to find more information on commitments. • Tips for researching commitments.

9. Defining Commitment • What is a commitment? • “An engagement to assume a financial obligation at some future date.” (Webster’s Online Dictionary, 2009) • At JHU, commitments might also be called: • Encumbrances (legacy CUFS). • Funds Commitments. • Funds Reservations.

10. Helpful BW Reports • BW Saved Favorites(http://www.controller.jhu.edu/H1/index.html) • Non Sponsored • Financial Summary • Commitment Reporting Detail • Sponsored • Revenue-Expense Summary • Payroll Commitments / Non Payroll Commitments • Differences • Summaries provide an overall view, a total for outstanding commitments, and drilldown capability. • BW Saved Favorite ‘Commitment’ reports provide details for ALL commitments. NOTE: Monthly distributed financial detail reports only contain commitments created in that month.

11. Non Sponsored - Financial Summary

12. Non Sponsored Commitment Reporting Detail (BW Saved Favorite)

13. Types of Commitments • Payroll commitments • Nonpayroll commitments

14. Payroll Commitments • These funds commitments are future salary and fringe encumbrances. • Payroll commitments have 10-digit document numbers that start with 9.

15. Researching Payroll Commitments • Use R3 transaction code FMZ3 (Display Funds Commitment).

16. Determining PERNR • Use FMZ3 to find the PERNR associated with a payroll commitment. • Click Environment, then click Original Document. • The PERNR displays in the Object ID field.

17. Nonpayroll Commitments • Common examples • Shopping carts • Purchase orders • Travel • Other

18. Shopping Carts • Shopping carts are funds reservations whose 10-digit document numbers start with 1. • Once they’re approved, shopping carts become purchase orders. • This shopping cart appears to be ‘stuck’—a shopping cart with this posting date would normally have become a purchase order by now (February 2009).

19. Researching Shopping Carts • Use R3 transaction code FMX3 (Display Funds Reservation).

20. ‘Stuck’ Shopping Carts • Although shopping carts can sometimes become ‘stuck,’ departments can usually delete shopping carts they no longer need. • Departments should delete unneeded shopping carts, unless a PO has already been created. • You can find instructions on deleting shopping carts on Supply Chain’s website (http://ssc.jhu.edu/supplychain/ support.html). • FQC can help with further research.

21. Purchase Orders • After a shopping cart has been approved, it becomes a purchase order. • Purchase orders are 10-digit numbers that start with 2. • There are various types of purchase orders. • Purchase orders for large quantities (BLPO) and extended durations (SPPO) remain open until the final portion of the expense is recognized.

22. Researching Purchase Orders • Use R3 transaction code ME23N (Display Purchase Order). • What’s wrong with this purchase order?

23. Closing Purchase Orders • If you’re sure that a PO should be closed, contact PO Maintenance (pomaintenance@jhu.edu). • Your request must include the following. • Purchase order number • Vendor name • Vendor number • Assurance that no further goods or invoices will be received • Reason for request to close PO • For more information on the ME23N transaction, visit the Supply Chain Support site (http://ssc.jhu.edu/supplychain/support.html).

24. Travel • Travel commitments are used for business trips commitments • The document number and subsequent reference number are also the TRIP transaction number. The first two digits specify the personnel area, and the remaining numbers are based on sequencing. • For example, business trip commitments 150xxxxx belong to the Whiting School of Engineering • You can research these commitments using R3 TRIP.

25. Identifying ‘Stuck’ Commitments • ‘Stuck’ commitment – a commitment that will never be used and needs to be removed. • Occasionally, commitments (e.g., payroll, shopping carts, purchase orders) become ‘stuck.’ • One way to identify these commitments is by the Posting Date.

26. Identifying and Resolving ‘Stuck’ Commitments • Department’s responsibility • Perform monthly reconciliation of BW financial statements to ensure that expenses have been appropriately charged. • If a commitment remains open on your cost object indefinitely, try to determine the problem. • Research commitments in R3. • Financial Quality Control (FQC) can assist with research and help you resolve problems. • fqchelp@jhu.edu • 410-516-3227

27. In Conclusion • Today’s presentation provided an overview of identifying and researching various types of commitments using R3 transaction codes. • It also discussed ‘stuck’ commitments and showed you how to resolve these issues. • Although we were using a non sponsored cost object for this session, the same procedures and transactions apply to sponsored programs. Grants cannot be closed with open commitments.

28. Resources • To determine which roles are associated with the transactions discussed today (FMZ3, FMX3, ME23N, and TRIP), visit: http://www.jhu.edu/hopkinsone/Support/documents/RoleMatrix.xls • Financial Quality Control – Controller’s Office • fqchelp@jhu.edu • 410-516-3277

29. Q&A • We’re going to open the phone lines now! • There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line. • We’ll be answering questions in the order that we receive them. • We’ll also be answering the questions that were emailed to us during the presentation. • If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

30. Thank You! • Thank you for participating! • We would love to hear from you. • Are there certain topics that you would like us to cover in future FastFacts sessions? • Would you like to be a FastFacts presenter? • Please email us at: fastfacts@jhu.edu

31. Survey • Before we close, please take the time to complete a short survey. • Your feedback will help us as we plan future FastFacts sessions. • Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/ Thanks again!