Account - McMaster University

Report
Mosaic Information Session
A look at the finance and research
finance systems launching in
December 2013
Introduction
Agenda
 General Ledger, Chart of Accounts
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Commitment Control and Value-Added Tax
Purchasing, Accounts Payable, and
Reimbursements to Employees
BREAK
Customer Billing and Accounts Receivable
Project Costing
Grants (Research Post-Award)
Goals today
 Provide clarity about what is changing and
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
answer your questions
Provide you the information you need to speak
confidently about Mosaic with your colleagues
Encourage you to begin conversations with
your teams
Overall Project Timeline
December Launch Timeline
Finance & Research Finance (Post) Timeline
13-May
13-Jun
6 13 20 27 3 10 17 24 1
Design
Config
Rice
Build
Integration Testing
Cycle 1 (100% H + 75% M)
Cycle 2 (Security + Portal)
Cycle 3 (Conversion + Interfaces)
Operational Testing
Performance Testing
Security
Including Stress Test (3x per test)
Vulnerability scan
User Acceptance Testing
Cycle 1
Cycle 2
Training
Prepare Training Materials
Deliver Training
GoLive Preparation
Technical Readiness
Business Readiness
Production Cutover
Hyperion Timeline
Planning & Budgeting
Reporting
6
Draft - For Discussion Purposes Only
13-Jul
13-Aug
8 15 22 29 5 12 19 26 2
13-Sep
13-Oct
13-Nov
9 16 23 30 7 14 21 28 4 11 18 25 2
13-Dec
14-Jan
9 16 23 30 6 13 20 27
GL/COA/KK/VAT
General Ledger
Chart of Accounts
Commitment Control
Value Added Tax
GL module of PeopleSoft
replaces FAS and Oracle journal entry
GL-010: Create and Process Journals
 Journals will be processed via the following methods:
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Online (manual) Journals
• Journals entered directly into the system
• Volume should decrease!
PeopleSoft Excel Journal Entry upload
• Replaces current ‘uploads’ now but checks data validity upfront vs.
having to go through data control
Journal Generator
• automatic journals from submodules or other suites or interfaces
• Raw data sent to Journal generator and processed in GL
Import Journals
• External system interface journals
• Already a completed journal by the time it gets to GL
On line Journal
Journal Entry Approvals - Workflow
 Journal approvals similar to today’s system
 Depending on the data in the journal entry, will go through a
different approval workflow path
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Project related Journals
 Project Mgr. Capital, then Capital Accountant
 Project Mgr. Trust, then Trust Accountant
 Project Mgr. Research, then Research Office approval
Journal Approvals (Dept., Program)
 If Program manager is different from Department manager,
Program Manager approves
Other Special Journals
• PDA Journals – approval to Department Manager
• Balance Sheet accounts will go to central finance approval
• Transfer accounts will go to central finance approval
• Student account journals go to Student AR approval
11
GL-030: Review Financial Information
 Different methods to review financial information in
PeopleSoft
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Delivered reports (like delivered e-reports now)
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Online within GL
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Online income statement within KK (like screen 32/44)
• Drill down capability within each of the above!

Queries
GL Online Inquiry
KK – summarized income statement
GL: Changes to Current Processes
 Use of adjustment periods for month end/year end
closing
 Automated management of PDA via use of Open items
 Petty Cash process – new process – more in AP – use
of Open Items
COA Design
 McMaster COA group of Experts and GL team have
defined:
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characteristics of each Chartfield,
its structure,
detailed definitions,
values
 Worked with envelope managers from across the
university to convert old COA department account
numbers to new PeopleSoft Departments and
Programs
Old to New Mapping Reminder
Research/Capital/Trust: 5/7/8-xxxxx
OLD vs NEW COA Terminology
FAS
PEOPLESOFT
LEDGER
FUND
ACCOUNT
DEPARTMENT
or DEPARTMENT + PROGRAM
or DEPARTMENT + PROJECT
SUBCODE
ACCOUNT
or PROGRAM
(e.g. in our 9000’s series now)
or PROJECT ACTIVITY
(only for Projects)
NEW Chartfield String
Operating/ Ancillary/Specifically Funded
Fund (2) Account(6)
e.g. 20 600001
Department(5)
10003
Program (5)
30006
= 18
Capital/ Trust/Research
Fund (2) Account (6)
e.g. 85 600001
Department(5)
10858
Project (8)
10889805
Project Activity (15)
Supplies
= 36
COA Chartfields
 Business Units – 5 GL BU’s
e.g. McMaster (MAC01), Divinity(DIV01)
 Funds - 14
 e.g. Operating, Research, Ancillary
Account Examples:
 Account
110000 – Accounts Receivable
 currently over 2000 subcodes
600001 – Materials & Supplies Expense
 reduced to less than 1000
450000 – Sales Revenue
 more standardized structure
 required field and available for all to use

COA Chartfields cont.
 Department
Uniquely identified responsibility unit of the University

Approx. 500
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reduced number due to introduction of the Program chartfield and
more standardized use of accounts

One ‘definition’ – no more multiple department codes throughout the
university!
Program

New dimension available for recording activities within departments

Approx. 20 Generic Programs and 500-600 for Unique Programs

E.g. Conference, Grad Support, Solar Car
Project (Capital, Research, Trust)
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Converted projects will maintain old number with ‘10’ in front of it
Project Activity
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Defines the processes or actions necessary to complete the Project
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Other project chartfields include: PC BU, Source Type, Analysis Type
Translation Table for COA
Pulp&Paper Research
KK (Commitment Control)
 Limited knowledge of the actual module itself necessary for most
users
 Commitment transactions are generated out of other systems (eg.
AP, HR) and most users will just see two commitment amounts on
their online or static reports (pre-encumbrance/encumbrance)
 Capital budgeting process will be done through Commitment
Control – all other budgeting done in Hyperion
 Hyperion will update the Commitment Ledger in GL
VAT (HST)
 Main decision: use generic GST/HST and Provincial values
 Many manual calculations and j/e’s done currently for HST – will
be automated in PeopleSoft
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System will track taxes by Province

Internal vs external sales percentages used to calculate ITC and
rebates upfront
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Less manual journal entries should be necessary
Purchasing, Accounts Payable, and
Reimbursements to Employees
Purchasing
 Requisition Entry in PeopleSoft
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by Requester
System validates information; e.g. chartfield, supplier, etc.
Automated Approval workflow tied to EOI and Strategic Procurement
thresholds
 Vendor Set-up and Management
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To be performed by Strategic Procurement
New Vendor Request form being created
Purchasing
 Procurement Contracts to be handled by Strategic
Procurement

Involve SP at the beginning of the process
 Formal Process within PeopleSoft to handle RTV’s
(Returns to Vendor) that will be tied back to original PO
Purchasing
 System will auto source PO from the Requisition and
auto dispatch PO to supplier

Threshold to be determined
 Three way matching (PO, Receiving, Invoice)
performed on all purchases greater than $2,500. Two
way matching (Invoice, PO) on purchases less than
$2,500
Accounts Payable
 Voucher Processing – Non PO Invoices (e.g. Cheque
Requisitions)
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File upload (i.e. flat file)
Excel spreadsheet upload (Bookstore, Hospitality Services, Student
Awards and Refunds)
Decentralized voucher entry
 Voucher Processing – PO Invoices

Accounts Payable
Accounts Payable
 Payments Terms
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From net 45 to net 30
 Payment Processing
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PO invoices
• cheque and EFT (Cdn $) = Monday
All other payments
• Cheque = Tuesday and Thursday
• EFT (Cdn $) = Wednesday and Friday
• Drafts/Wires (i.e. foreign currencies) = Monday
Accounts Payable
 Acquisition Card (Pcard) – BMO MasterCard
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Feed from BMO to PeopleSoft
Reconciliation within PeopleSoft
 Petty Cash replenishment
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Process will not change significantly
Will use “internal bank” as opposed to journal entry
Employee Reimbursement
 Travel Authorization

To be used for pre approval of exceptions to policy (i.e.
business class airfare)
• Use not mandatory
 Cash Advance
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No accountable advances; expenses reimbursed as they are
incurred
Encourage cash withdrawals using Diners card
Exceptions: research study subjects, group travel, athletic team
travel and where access to ATM not possible
Employee Reimbursement
 Expense Report
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Encourage self service
Use of corporate credit card (Diners MasterCard)
Daily feed from Diners to simplify data entry
Payment by EFT to employees bank account on record in
Payroll
AP can pay Diners by EFT on behalf of cardholders
 Non Employees and Visitors

Non PO Voucher
Employee Reimbursement
 Approval workflow to be utilized
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Feed of reporting hierarchy from HR
Compliance review at beginning of workflow
 Tax (HST) calculations and rebates to be
calculated within PeopleSoft

Preparer can override if tax calc. incorrect
General
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End user will be able to query all transactions
Document imaging to be utilized
Automated workflow and notifications
Ability to view where transaction is in approval workflow
Ability to inquire entire payment cycle
Data validation
Overall – greater transparency
Break
Customer Billing and
Accounts Receivable
Finance Solution Overview
38
Detail Design Approach – Billing / AR
Unique approach for AR BI due to remote and diverse business
needs
 Each business area is unique and we met with all of the larger
groups. Three general groups emerged:
1)
2)
3)
39
May have entrenched business systems that can not be replaced by
PeopleSoft BI
• Inventory Management, POS systems, scheduling or other specialties
• E.g. Bookstore, Athletics & Recreation, Media & Print Services (TBD)
• Solution becomes improved GL distribution
 More granular, more detailed descriptions, approvals
May have business systems that CAN be replaced
• Nuclear
No system, or does not produce a bill, and can adopt PeopleSoft BI / AR
• Catering
• Any University business area that needs to produce a Bill
• Smaller volume operations
Key Design Decisions
 Business units are where transactions are stored, The following
will be setup in AR/BI :
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Research Health Sciences
Research General
Nuclear Reactor
Parking
Finance – General
Health Sciences
Print Services
UTS
Bookstore
Athletics & Recreation
Conference Services & Hospitality
Library
 There will be two invoice (bill) layouts:

40

Research layout
Common McMaster layout
Key Design Decisions
 The Cashiering function will be replicated using PeopleSoft AR,
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financial coding details
receipt generation.
Similar to today, the distributed nature of receiving payments will continue
however with greater autonomy, responsibility and accountability in the
distributed business areas.
The deposit entries will be completed locally, as well as the preparation of
the physical deposit bag for the bank. Central finance will no longer need
to recount or amalgamate the deposits.
41
Customizations
Customizations
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42
Invoice layout
Receipt layout
Sponsor award number in AR Payment application
Moneris ecommerce file load
Bank Statement load
Issues
 Student Interim Process
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43
Student related transactions including receiving payments
Will use online cashiering and maintain that process until Student
Administration goes live
Key Process Changes
 Deposits not amalgamated, central finance does not check/close
batch
 Where manual, bills migrate to PeopleSoft
 Payment application to detailed open items as opposed to an AR
account
44
Process Improvements
 Billing!
 Centrally recorded AR, distributed process
 Improvements in internal cost transfer details (GL Interface)
 Bank reconciliation more automated
 Greater visibility of AR details
45
Billing Solution
46
Accounts Receivable (AR) Terminology
 PeopleSoft AR is created from a bill and represents an ‘item’ to be
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47
paid
Similar to, but not to be equated to an AR Balance
Payment Application – taking an individual payment and paying a
specific item(s)
Direct Journal – taking a payment and creating a revenue journal
Cashiering – at the University cashiering is the function of
receiving payments and recording the accounting for those
payments. PeopleSoft does not have ‘Cashiering’ but does have
places to record payments received in either detail or summary,
and in a two-step process payments are applied.
AR Solution
48
Cashiering
 Walk up

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Enter deposit
Direct Journal to revenue accounting
Generate receipt
 Moneris Ecommerce

centrally entering Moneris sales data to a revenue clearing account for
each merchant
 Remote business areas
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Enter deposit (summary or detail as necessary)
Apply payment either to open items or direct journal
Create deposit slip
Pickup for banking
 Central Finance
49
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Arranges delivery to bank
Reconciles bank statement
Conversion
 Re-key customers where necessary
 No open AR item conversion

Old systems will be closed out without converting open items
 No GL Impact
 No Bill conversion
50
Project Costing
PeopleSoft Project Costing
 Three purposes for this module
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Capital projects
Trusts
Research ( next presentation)
Primary users:
Capital : facility services
Trusts : TFAIS users
PeopleSoft Project Costing
 What does it do ?
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
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This module captures information related to a project , bringing
all the information together in one place.
It will receive information from the GL, P2P, travel and
expense, AR and also allow entry of budgets and project
attributes at the module level.
Compensation will also flow from PeopleSoft HR when live.
PeopleSoft Project Costing
 Team has worked closely with key stakeholders to configure the
system to receive the historical information from TFAIS and AiM
 Key stakeholders are currently completing System Integration
Testing
PeopleSoft Project Costing
 Reporting
 Reports will be available from PeopleSoft but any report that will
require information from other sources will be provided through the
Data Warehouse
 Other user may view the status of their projects as now linked in
the ERP
Research
PeopleSoft Grants Management
Pre-Award
(Proposal)
Proposal
Development
Awards
Processing
Award
Management
Compliance
Close-Out
Enter Basic
Information
Route For
Internal Approval
Negotiate and
Accept
Expend against award
Submit Status
Reports
Review Account Activity
Develop
Narratives
Submit to Sponsor
Receive Award
Notice
Perform Adjustments
Monitor Funding
Limits
Submit Final
Report
Create Project
/ Award
Allocate Indirect
Costs
Authorize Pre-Award
Spending
Manage Billing
Develop
Budget
Identify Need for Special
Reviews
Comply with Assurances
& Certifications
58
Review &
Submission
Post-Award
(Accounting)
Review Status
Inquiry
Comply with
Cost
Allowability
To be Process Flow
59
Training
Training
 Training
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Will begin in mid-October and run through December
Detailed training schedule will be made available at the end of
September
 Multiple Training Styles
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Classroom
Small Group
Drop-in
Online (delivered via Avenue to Learn)
Written Documentation
Courses
Work stream
Total Number of Courses
A/P
4
A/R Billing
9
ALL Modules
2
Commitment Control
2
General Ledger
12
PeopleSoft Overview
1
Procurement
4
Project costing
2
Research
5
Travel & Expense
2
Grand Total
43
Next Steps
Next Steps
 User Validation – late August


We will be conducting a ‘user validation’ exercise to confirm
security access for each user of the new system
The Security and OCM team will distribute two documents to
facilitate this process:
• An Excel spreadsheet containing users and PeopleSoft
access based on current roles and current FAS access
• An accompanying instruction / information package to help
complete the exercise
McMaster University - Mosaic
Closing

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