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SAP Upgrade: November 2006

An Introduction to the Budget Control System (BCS)

Report for November , 2006 General Information Sessions

SAP Upgrade November 2006 An Introduction to the Budget Control System INTRODUCTION: The SAP Upgrade planned for November 2006 will move UofT from version 4.6C of the SAP R/3 system to version 4.7 (aka Enterprise) of the SAP R/3 system. The planned Upgrade will not only move UofT from 4.6C to Enterprise, but will also move UofT from the current Funds Management (FM) module to the new Budget Control System (BCS) and as a result, the main impact of the Upgrade will be felt in the Funds Management module of the SAP system, with little or no impact on the other modules of the SAP system. The SAP menu paths and document entry screens for journal entries, invoices, purchase orders, cost center reporting, etc. remain relatively unchanged. For your reference, a small collection of screen shots comparing the current system (i.e. 4.6C) with the post upgrade system (i.e. 4.7) have been included with this report (see Appendix 1, pages 1-8). You will note that the significant changes occur largely in the budget processing area. (see Appendix 1, pages 4-8) This document will highlight some of the system and reporting changes that will be implemented as a result of the upgrade to Enterprise and the move to BCS, as well as provide information on the implementation plans for the Upgrade and the impact on Faculties and Divisions. BACKGROUND: Currently, the University of Toronto operates version 4.6C of the SAP R/3 system as the institutional Financial Information System; comprised largely of the following modules: Controlling (CO) Logistics Finance (including Financial Information (FI) and Funds Management (FM)) Human Resources (HRIS) Service Management Integrated with the SAP R/3 system are a number of custom modules developed by UofT. Among those modules, are the Development Information System (DIS), the Research Information System (RIS), and the B6 Salary Planning module. The current strategy for upgrading the Financial Information System is to schedule upgrades approximately 3 years apart. The reasons for this are: a. To strike a balance between the need to implement system improvements that benefit the end user and the amount of disruption the end user experiences due to scheduled system changes b. To ensure that system improvements are implemented in a timely fashion c. To ensure that, as much as possible, we are part of SAPs mainstream maintenance; SAP provides mainstream maintenance of each version for a specified period of time, which historically approximates 3 years. Extended and customer specific maintenance are available at an additional annual cost, however, it is limited in that new developments are not supported (impacting other modules such as UShop), and in the case of customer specific maintenance, legally mandated changes are not supported. SAP is planning on phasing out the R/3 version of its core system and replacing it with a product called mySAP ERP. By March 2009, mainstream maintenance support from SAP for all R/3 products will have
November 2006 SAP Upgrade; Information Session document

SAP Upgrade November 2006 An Introduction to the Budget Control System ended, at which point extended (or in some cases, customer specific) maintenance, for an additional annual cost, will be made available until March 2012. It is expected that, after March 2012, all existing SAP customers will have migrated to mySAP ERP. IMPACT OF THE UPGRADE ON THE UOFT FINANCIAL INFORMATION SYSTEM (FIS): As noted earlier in this document and demonstrated within Appendix 1, the main impact of the Upgrade will be felt in the Funds Management module. That impact will be comprised of the following: 1. Introduction of 2 new terms and corresponding acronyms: Former Budgeting System (FBS) Budget Control System (BCS) 2. The CFC hierarchy is now only used for reporting purposes 3. New flexibility in setting Availability Control (AVC) rules resulting in a favourable impact on budget reporting 4. New budget entry screen (Budget Workbench) provides flexibility in posting and reporting of budget documents, similar to that currently enjoyed with FI postings (i.e. journal entries, invoices, etc.) 1. Introduction of 2 new terms and corresponding acronyms: Former Budgeting System (FBS) -This term refers to all budget documents processed prior to the Upgrade Budget Control System (BCS) -This term refers to all budget documents processed after the Upgrade Why is the distinction important? Although there will be no change in how the system retrieves (and uses) the stored financial data pertaining to commitments & actuals, there will be a change in how the system retrieves (and uses) the stored budget data. Budget data processed prior to the Upgrade will continue to be stored and accessed using the old 4.6C system budget tables (now referred to as Former Budgeting System (FBS)). The budget documents processed after the Upgrade will be stored in new (different) system budget tables and have different characteristics from the budget documents processed prior to the Upgrade (i.e. CFC hierarchy no longer reported as part of the budget document display (Appendix 1 p. 8). Uof T reports, which have budget information as part of the report output have been modified to recognize and report on budget data stored in both the FBS and BCS system tables. The modification consists of the addition of 2 new radio buttons:
FBS- Select if historical (pre-upgrade) budget details/totals are required BCS- will be the default position and provide budget details/totals for fiscal year 2007 and all subsequent reporting periods.
November 2006 SAP Upgrade; Information Session document

SAP Upgrade November 2006 An Introduction to the Budget Control System 2. The CFC hierarchy is now only used for reporting purposes

Impact on budget reporting: Currently, the CFC hierarchy plays a part in the budget posting process, in that the budget travels up and down the CFC hierarchy before the actual budget dollars are posted to the specific CFC or CFC/fund combination. This dependency on the CFC hierarchy can be seen as part of all FBS budget documents (Appendix 1, p. 7) Budget documents posted using the BCS module no longer have this dependency (Appendix 1, p.8). Reports can now be written/modified to provide the same detailed line item information for budget transactions as is currently provided for financial transactions. This will facilitate the process of reconciling budget transactions for both central and divisional users. Impact on changes to the CFC hierarchy: With the elimination of the budget dependency on the CFC hierarchy, changes to the CFC hierarchy are facilitated as they are less resource intensive, making it possible to process changes to the CFC hierarchy on a more frequent basis. 3. New flexibility in setting Availability Control (AVC) rules resulting in a favourable impact on budget reporting Impact on AVC rules: Currently, the ONLY rule available for AVC is to have the budget control restricted to the commitment item (CI) to which the budget was posted. This required that all budget dollars, for which there was no specific restriction, (i.e. SUPPLIES), be posted to the EXPENSE-S commitment item in version 0 (i.e. current budget). The BCS module provides a little more flexibility in how the rules for AVC are set. We now have the option of continuing to maintain the status quo, i.e. AVC at CI where budget is loaded or we can set the AVC rule to check at the summary total budget amount within a cfc or cfc/fund irrespective of the CI to which the budget is posted (see Appendix 2, p 1-3). AVC rules in the BCS module have been set as follows: Rule 1 AVC checking will occur at the summary level within the EXPENSE-S commitment item hierarchy and at the specific commitment item EXP-UTFA for : All Operating fund accounts (CFC and Funds) All Capital fund accounts (CFC and Funds) All Ancillary fund accounts (CFC and Funds) All Trust fund accounts (Funds) Rule 2 AVC checking will occur at the commitment item where budget is loaded for: All Research fund accounts (Funds)

Impact on budget reporting: Since AVC checking is no longer restricted to the commitment item where budget is loaded (except for Research Funds), budgets can now be posted to the detailed commitment items (such as Supplies or
November 2006 SAP Upgrade; Information Session document

SAP Upgrade November 2006 An Introduction to the Budget Control System Travel) to provide better, more detailed variance analysis comparing current budget and the spending of that budget. (Appendix 2, p. 2-3) NOTE: Although, post-upgrade, it is no longer required that budget is loaded and maintained at summary commitment items such as EXPENSE-S, for the 2006-2007 fiscal reporting year, in the interest of maintaining consistency, it is recommended that no change be made to how budget transactions are posted to the commitment items, i.e. continue using the summary commitment item EXPENSE-S. For the 2007-2008 budget year the detailed commitment item view of the Original budget (i.e. version 1) will be copied and maintained in the Current budget (i.e. version 0). Thereafter, if the division so chooses, manual budget transactions can be posted to the specific (or summary, if they so wish) commitment items as appropriate. 4. New budget entry screen (Budget Workbench) provides similar flexibility in posting and reporting of budget documents to that currently enjoyed with FI postings (i.e. journal entries, invoices, etc.) Impact on processing of budget transactions: The new BCS module also introduces a new and better budget entry screen for use by both central and divisional users. The new screen is called the Budget Workbench and introduces several time saving features for those central/divisional users authorized to process budget transactions. Some of those features include create from reference budget document, editing options during processing through the use of the edit icon buttons (i.e. line items can be copied, deleted, sorted, filtered, etc.), customized budget entry screen templates to facilitate the document entry process, etc.. We will be holding training sessions for users authorized to process budget transactions towards the end of October/beginning of November. Impact on reporting of budget documents: The new BCS module also allows us to develop and implement a new budget document numbering system. Similar to invoice postings, where documents starting with 19 represent invoices paid without a P.O. and documents starting with a 51 represent invoices paid with a P.O., budget transactions will also be distinguishable through the document number. (see Appendix 3 for a complete listing) IMPLEMENTATION OF ENTERPRISE-BCS, NOVEMBER 2006: As you will have noted, there are some very basic and key differences between the workings/features of the new BCS module and our current version of FM (FBS). These differences stem, largely, from how the budget information is stored/used by the respective modules (i.e. BCS versus FBS). In order to maintain consistency in the reporting of budget data, be it year-to-date or life-to-date reporting for cfc/fund combinations, the following strategies have been implemented: Year to date reporting for CFC and non-Research Fund budgets: For fiscal year 2007: Budget totals as at October 2006 month end will be posted to the new BCS system budget tables. The budget totals will be posted by budget type such that the net budget $$ for each FBS budget type will be posted as a migration document in the BCS budget tables, as follows:
November 2006 SAP Upgrade; Information Session document

SAP Upgrade November 2006 An Introduction to the Budget Control System FBS (4.6C) budget types Original Budget Supplement Return Transfers-Sender Transfers-Receiver Carryforward-Sender Carryforward-Receiver ORIG SUPT RETN TRSDR TRRCV CFSDR CFRCV BCS (4.7) budget posting for Oct/06 totals Original Budget Supplement Return Transfers-Sender Transfers-Receiver Carryforward-Sender Carryforward-Receiver ORIM SUPM RETM TRSM TRRM CFSM CFRM

This will facilitate the consistent reporting of summary budget information for fiscal year 2007. Specific/detailed budget line items for May 2006 to October 2006 can still be viewed through the use of the new FBS radio button or through drill down via the migration document. For fiscal years 2006 and earlier: Detailed and summary budget data reporting can only be accessed by running reports using the FBS radio button on the report selection screen. For fiscal years 2008 and later: Detailed and summary budget data reporting will be available by running reports using the BCS radio button on the report selection screen. Year to date and Life to date reporting for Research Funds: Research services will be providing information on the reporting of research budgets. Historical research budget information has been moved to the new BCS system budget tables and therefore reports should only be run using the BCS radio button. If you have specific questions, please call your Research Analyst. Implementation schedule for the upgrade to Enterprise-BCS: The SAP system will be shut down at 5 pm on Thursday, October 26th and will be brought back up, in Enterprise-BCS mode, on November 1st, 2006. Please note that in order to run the Upgraded version of SAP, you will need to have the new SAP GUI installed. For more information on this, please refer to the AMS website http://www.ams.utoronto.ca/AMS_Help/Software.htm The RPT instance of SAP will be available to users Monday, October 30th and will reflect the preupgrade view (i.e. 4.6C version) of the October 2006 month end financial information. It is anticipated that this pre-upgrade view will be maintained in the RPT instance until close of business Wednesday, November 8th. During the SAP shut down period, the following activities will be taking place: Staff from AMS, Financial Services, Research Services and Planning & Budget will be: (Among other things) Monitoring and verifying the accuracy of the migration of budget data from the FBS tables to the BCS tables. Divisional users: Meeting their regular month end reconciliation and reporting responsibilities, using the RPT instance as the source of information. 5

November 2006 SAP Upgrade; Information Session document

Comparing the default SAP menus between the current version (4.6C) and the new BCS version (4.7):

Very similar, only difference is the location of the Funds Management area; -in 4.6C, located within Financial accounting -in 4.7, located outside of Financial Accounting

Appendix 1 - 1 of 8

Comparing the input screens for Journal Entries between the current version (4.6C) and the new BCS version (4.7):

Very similar, only difference is the naming of the Document Header Text field; -in 4.6C, its Shrt txt -in 4.7, its Doc. Header Text

Appendix 1 - 2 of 8

Comparing the input screens for Certified Invoices between the current version (4.6C) and the new BCS version (4.7):

Very similar, only difference is the location of 2 fields; the Reference and Doc. type fields; -in 4.6C -in 4.7

Appendix 1 - 3 of 8

Comparing the Funds Management menu between the current version (4.6C) and the new BCS version (4.7):

Very similar in all respects, with the notable exception of the budget entry screens. -in 4.6C, each budget type had its own screen -in 4.7, there is one main input screen through which all budgets are processed; similar to the Journal/Invoice input screen, the Doc type drives the screen layout and transaction authorization. (See pages 5-6 for samples)

Appendix 1 - 4 of 8

Current (4.6C) input screens for Budget Transfer transaction:

2 screens to navigate through Only one area for Text, so must be descriptive enough for both sides of the transfer

Appendix 1 - 5 of 8

New (BCS) input screens for Budget Transfer transaction:

The Additional Data tab contains the Template information of the 4.6C version

Single entry screen; very similar to the standard journal entry or invoice entry screens More Text options

Appendix 1 - 6 of 8

Comparing the Display screens for Budget documents between the current version (4.6C) and the new BCS version (4.7):

The current 4.6C version provides limited information; Budget document date Budget document number Budget Header text Also provided is the CFC hierarchy information of each CFC used in the transaction; in the past, this sometimes made it difficult to identify exactly which CFC accounts were actually used in the transaction.

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Comparing the Display screens for Budget documents between the current version (4.6C) and the new BCS version (4.7) (contd):

In the new 4.7 version, the same 4.6C information is provided, along with a few other key pieces of information such as; Type of budget document, Created by, Created on, Created at And the most important feature, is the absence of ANY hierarchy information in the document display

Appendix 1 - 8 of 8

Comparing the current FBS (4.6C) budget views to the budget views now possible in BCS (4.7):

In the current (FBS) system: Expenditures budget details by Commitment Item (CI) are only available in Budget-version 1. Due to the current AVC rules, expenditure budgets must be loaded on summary CI (i.e. EXPENSE-S) in Budget-version 0. Budget-version 0 is comprised of Original Budget (version 1) + all additional budget activity; since all budget is loaded on a summary CI, no detailed variance analysis is possible.

Appendix 2 - 1 of 3

Comparing the current FBS (4.6C) budget views to the budget views now possible in BCS (4.7) (contd):

In the new (BCS) system:


Expenditures budget details by Commitment Item (CI) are now available in Budget-version 0. Due to the new AVC rules, expenditure budgets can now be loaded on detailed CIs (i.e. HRIS-APPT) in Budget-version 0 without restricting the AVC to the specific CI. You will note that the budget loaded on the detailed CI is the same as Budget-version 1 on the previous page, with the non-Original budgets, loaded on the EXPENSE-S CI.

This is one view available using the detailed CI budgets in Version 0, another is demonstrated on the next page.

Appendix 2 - 2 of 3

Comparing the current FBS (4.6C) budget views to the budget views now possible in BCS (4.7) (contd): In the new (BCS) system (contd):
In the previous view, the budget loaded on the detailed CI was the same as Budget-version 1, with the non-Original budgets, loaded on the EXPENSE-S CI.

Another view, of the same detail, is distributing the non-Original budget amounts to the various CIs. In this case, the additional $10,000.52 was transferred from EXPENSE-S to TRAVEL. You will note that the $1,590.73 did not shift with the budget and is creating a negative variance. How is this possible? The postings for the 2 items making up the balance were made to G/L accounts which do not default to any of the CIs listed and therefore will be reported against the general EXPENSE-S CI. The negative variance for this particular line is possible because the TOTAL BUDGET still exceeds the TOTAL COMMITMENT/ACTUALS, leaving $62,286.40 still available for spending.

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SAP Upgrade to BCS: NEW BCS BUDGET CODES


Below are the budget document types and number ranges that will be used in the new Budget Control System (BCS). (Suggestions were solicited from representatives from Divisions, Central Financial Services and Planning & Budget
and where possible, incorporated into the final system coding.)

New BCS Budget codes and the Nov 2006 migration of budget totals: For all non-Research budgets: The migration budget documents will have the following characteristics: Document type = Document number range = Budget type = MIGR 9000000000 - 9999999999 Similar to the "regular" budget documents (see 1st chart below), with an "M" replacing the fourth character

Although a central reconciliation will be performed, it is expected that departments and divisions will want to confirm the accurate migration of their own budget documents/amounts. The sum of all "9" BCS budget documents will match the budget totals at October 2006 month end. The pre-Upgrade budget data will be available and maintained in the RPT instance for at least 1-2 days after the "GO-Live" date. For Research budgets: Research budgets will be migrated using a combination of document types and number ranges, as appropriate, based on the budget type and whether the budget has been released or not. Please note that reconciliation of the Research budgets between BCS and old FM will be performed by Research Services. Any questions regarding the migration of research budgets should be directed to Research Services. New BCS Budget codes for post-Upgrade budget documents: For Operating, Ancillary, Capital, Trust (1) and Research (2): FBS Description Original Budget Supplement Return Transfer (Sen) Transfer (Rec) Carryforward (Sen) Carryforward (Rec) Budget Type Orig Suppt Retur TrSdr TrRec FYCS FYCR Budget Type ORIG SUPL RETN TSFS TSFR CFWS CFWR

BCS Document type Number range ORIG 1000000000 SUPL 2000000000 RETN 3000000000 TRAN 4000000000 TRAN 4000000000 CFWD 5000000000 CFWD 5000000000

(1) Trust budget transactions generated by a system program: FBS Description (Trust) Supplement automated (Trust) Return automated Budget Type N/A N/A Budget Type SUPL RETN

BCS Document type Number range SYSM 6000000000 SYSM 6000000000

(2) Research budget transactions generated as a result of "Released Budget" will be coded as follows: FBS BCS Description Original Budget Supplement Return Transfer (Sen) Transfer (Rec) Released Budget Budget Type Orig Suppt Retur TrSdr TrRec Rel. Budget Type ORIG SUPL RETN TSFS TSFR RELE Document type Number range AUTO 7000000000 AUTO 7000000000 AUTO 7000000000 AUTO 7000000000 AUTO 7000000000 AUTO 7000000000

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