Financial Overview FI_200 Online Course

1. Financial Overview FI_200 Online Course

2. Financial Overview Introduction This is an online course that introduces the basic concepts of the Financial Modules in the IRIS System. This course is intended to give you a high level overall perspective of finance in the IRIS system. It is not intended to be specific in any one area. If you have this course listed on your training plan, this course is available both via the web or classroom training. A Student Guide is intended to accompany this course. It provides additional explanation and clarification to the information presented on the slides. Please refer to the Student Guide as you proceed though this course. There is also a Practice Guide available that provides all the procedures necessary to practice the demonstrations shown in this course in the IRIS Training Sandbox and the way you will get comfortable with the IRIS system is through practice… practice… practice. The following are the components of the FI_200 Financial Overview Online Training Course: FI_200 Financial Overview Online Training Course – Simulation FI_200 Financial Overview – Student Guide FI_200 Financial Overview – Practice Guide FI_200 Financial Overview – IRIS Exercises and Course Completion form FI_200 Financial Overview – Course Evaluation Important:When you have completed this course you will need to submit the completed IRIS Exercises and Course Completion form in order to get credit for the class. Please also take a moment to complete the Course Evaluation and let us know what you liked, or didn’t like, about this course. Send any comments and suggestions to IRISTraining@email.uky.edu Remember the Training Sandbox is available 24/7 for you to practice the exercises contained in the Practice Guide as many times as you like. FI_200 Financial Overview v10

3. Course Content • Unit 1 - UK Processes and IRIS Components • Unit 2 - Financial Accounting • Unit 3 – Funds Management • Unit 4 – Controlling • Unit 5 - Grants Management • Unit 6 – Business Warehouse Reporting • Course Summary FI_200 Financial Overview v10

4. Learning Objectives • You will understand at a high level: • UK account structure • Financial document parking (JVs) and posting (DAVs) • Funds Management • Grants Management • Cost Management • You will be able to: • Display FM, CO, and GM Master Data • View Document Information • Generate FI, FM, and CO Reports FI_200 Financial Overview v10

5. Prerequisites and Roles • Prerequisites: • UK_100 IRIS/SAP Awareness & Navigation • Roles: • Financial users of the IRIS system • Financial analysts • Financial accounting users FI_200 Financial Overview v10

6. Unit 1 Unit 1 - UK Processes and IRIS Components FI_200 Financial Overview v10

7. Statutory Reporting FI - Finance Track Budgets &Earmarked Funds ExternalReporting FM - Funds Mgmt. DepartmentalCost Reporting Encumbrance Accounting Company Codes Business Areas CO - Controlling ManagementReporting Financial Mgmt Area, Functional Areas Cost Center, WBS Element, Internal Order General ledger accounts Funds Center, Funds Controlling Area FM Document Commitment items Cost CenterInternal Order CO Document Primary Cost Elements The FM & CO Documents are created by FI in the background. FI, FM, and CO Integration FI_200 Financial Overview v10

8. Postings to General Ledger Accounts IRIS System MM Purchasing,Hosp Inventory Batch feeds HR HumanResources FI AP/AR Payables & Receivables FI-GL General Ledger SD SponsorBillings Manual Entry CM Campus Management GM GrantsManagement PM PlantMaintenance Most FI, FM, and CO documents are created automatically internally. Some FI documents such as JVs, Requisitions, DAVs, etc. are created manually. Automatic postings into FI-GL FI_200 Financial Overview v10

9. Key Terminology IRIS has different names for the same data depending on the module. FI_200 Financial Overview v10

10. Numbering Scheme for Chart of Accounts FI_200 Financial Overview v10

11. Unit 2 Financial Accounting FI_200 Financial Overview v10

12. Financial Accounting (FI) • Financial Accounting module has several sub-ledgers. • Accounts Payable and Accounts Receivable • Cost Centers, WBS Elements, Internal Orders, Grants • Vendors, Capital Projects • Data flows from the sub-ledgers into the general ledger on a real time basis via a reconciliation account. • Every financial based transaction entered in IRIS needs information such as a Company Code, a Business Area, Fund, and a GL Account. Some are entered directly and others are derived from Master data. • Revenue and expense GL items also need a Fund, and a CO cost object (Cost Center, Internal Order or WBS Element). • Business Warehouse is used to display financial ledgers by Fund and Grant. FI_200 Financial Overview v10

13. General Ledger Account • Transactions are posted in FI through the general ledger account. • A general ledger account has a corresponding commitment item in FM and a PCE (Primary Cost Element) in CO. • General ledger accounts represent the WHAT of a transaction in CO. • The FM & CO Documents are created by FI in the background. Office supplies = 540334 FI Finance FM Funds Management CO Controlling GL Accounts Commitment item Primary Cost Element equals equals FI_200 Financial Overview v10

14. GL Account Numbering Convention FI_200 Financial Overview v10

15. GL Account Numbering Convention FI_200 Financial Overview v10

16. Department Authorization Voucher (DAV) Process Form sent by department, then entered and posted by accounts payable. UK Department Vendor Accounts Payable UK department prepares IRIS DAV Form & attaches invoice Vendor sends invoice for goods or services A/P audits and posts invoice using FB60 Payment created (Document Type KZ) UK department can verify check payments FB03 Accounts Payable sends check to vendor Vendor inquires for payment information FI_200 Financial Overview v10

17. General Accounting, Hosp or SPA UK Department Journal Voucher UK department completes FV50 parks as complete JV document, approvals and related docs G/A audits parked documents and approvals UK department can change parked document with FBV2 G/A posts parked documents UK department can delete parked document with FBV0 UK department can verify posted document with FB03 Files journal vouchers Journal Voucher Process Entered and parked by department then posted by accounting. FI_200 Financial Overview v10

18. Procard Editing Process Procard re-charges are posted by departments. The process starts when the Procard is used to purchase goods instead of a PO UK Department “parking” UK Department “posting” Procard Bank Procard chargescreate “parkeddocuments” usingdefault cost center& GL account Procard bank collects and transmits charges to UK overnight UK departmentsre-charge costs tocorrect cost center &GL account via Webportal and parkeddocument is savedas complete UK departments, after approvals, select and post parked documents FI_200 Financial Overview v10

19. Number Range From To DocumentType Financial Transaction GL Account Document SA 0100000000 0199999999 Stock Materials (Hand fees) ZH 0100000000 0199999999 Vendor Invoice KR 1900000000 1999999999 Vendor Payment KZ 1500000000 1599999999 Goods Issue WA 4900000000 4999999999 Goods Receipt WE 5000000000 5099999999 Invoice - Gross RE 5100000000 5199999999 Invoice - Net RN 5100000000 5199999999 Procard YY 7700000000 7799999999 Document Types and Number Ranges Documents are uniquely identified by a document type and number. FI_200 Financial Overview v10

20. Demonstration Demonstration 2.1 Scenario You want to know the balance for operating expense accounts for a specific month and fiscal year to date. FI_200 Financial Overview v10

21. From the SAP main menu use transaction code S_ALR_87012301 - GL Account Balance Display

22. After entering the information click the Execute icon. Enter the Chart of Accounts, GL Accounts range, and Company code fields. For this demo we will use reporting period 2 of fiscal year 2006. Fiscal years at UK are July 1st (reporting period 1) thru June 30th (reporting period 12) and are know by the year they end. So…reporting period 2 of fiscal year 2006 is actually August 2005.

23. This is the GL Account Balance report for reporting period 2 of fiscal year 2006. It shows: GL Accounts/names…debit/credit totals for period 2…debit/credit totals for YTD…total debit/credit balance.

24. Demonstration Demonstration 2.2 Scenario You need to check the details for a particular document for your Cost Center. FI_200 Financial Overview v10

25. From the SAP main menu use transaction code FBL3N – G/L Account Line Items

26. To narrow the search to your Cost Center, click on the Dynamic Selection icon. Enter the G/L account range, the Company code (if necessary), select All items, and a date range.

27. Double click Cost Center to make it available on the right side.

28. After entering the information click the Execute icon. The Cost Center is now highlighted to indicate it is available search criteria on the right side. Enter the Cost Center number.

29. In the search results, double click a line item to drilldown into document Use the “sun going overthe view of the mountain” (overview) icon to display the document overview. View details about the line item

30. Unit 3 Funds Management FI_200 Financial Overview v10

31. Funds Management (FM) – Fund Centers • Funds Management is used to organize and track revenue and expense in budget format. • Fund • A self-balancing set of accounts used to budget and control costs • Identifies source and use of funding • Funds Center • Represents organizational area of responsibility for budgeting revenue and expenses. • Derived from Cost Center with one-to-one relationship • Example: Cost Center and Funds Center - 1012084710 – IRIS Project • Both Funds and Funds Center can be grouped for reporting purposes. FI_200 Financial Overview v10

32. Fund Master Data Additional UK Fund Fields FI_200 Financial Overview v10

33. Funds Center Master Data Additional UK Funds Center Fields FI_200 Financial Overview v10

34. FM Document Journal Report - FMRP_RFFMEP1AX Enter criteria (grant, fund, funds center, commitment item, or functional area) You can enter a combination, range, or group of the above or leave blank for all data You can further narrow the selection by date FI_200 Financial Overview v10

35. Funds Management – Document Journal Report • Reports can be customized as needed. They can be: • Totaled (e.g., Payment Budget field) • Subtotaled (e.g., Commitment Item field) • Sorted by any field • Exported to Excel • Emailed to someone FI_200 Financial Overview v10

36. Demonstration Demonstration 3.1 Scenario You need to find out what the functional area is that is associated with a particular Funds Center. FI_200 Financial Overview v10

37. From the SAP main menu use transaction code FMSC - Display Funds Center

38. Enter the Funds Center number (and FM Area if necessary) and press enter.

39. FMSC displays Funds Center Master data. It has tabs of information and one pushbutton. The Functional Area is shown on this additional screen.

40. Demonstration Demonstration 3.2 Scenario You would like to see the documents entered for a fund center and then manipulate the report data. FI_200 Financial Overview v10

41. From the SAP main menu use transaction code FMRP_RFFMEP1AX – All Postings

42. After entering the information click the Execute icon. Enter the FM Area if necessary and the Funds Center number. For this demo we will use reporting periods 1 to 12 of fiscal year 2006. Reporting periods 1 to 12 of fiscal year 2006 is actually July 2005 through June 2006.

43. This is the Document Journal Line Item report.

44. To total the Payment Budget column, first identify the column by clicking once on the column header and then click on the Total icon.

45. Once a column is totaled the sub-total icon appears. To sub-total by GL Accounts, first identify the column by clicking once on the column header and then click on the Sub-Total icon.

46. The report is now totaled by the Payment Budget column and sub-totaled by GL Accounts.

47. To sub-total by Fund, identify the column by clicking once on the column header and then click on the Sub-Total icon.

48. The report is now totaled by the Payment Budget column and sub-totaled by Fund.

49. The report layout can be changed by clicking on the Change Layout icon.

50. In the Change Layout dialog box, the right column shows the columns that are now visible in the report and the left column shows the columns that are now hidden. By moving columns from one column to the other they will either become visible or hidden in the report view. Sort orders and filters can also be set. Many layouts can be saved for different report views. The various saved layouts can then be used when required.