Accounts Payable Functional Review

1
Accounts Payable Functional Review
April 8, 2005
2
Agenda

• Welcome
• Introductions
• Objectives of the Functional Review
• Accounts Payable Overview
• Open Items
• Questions Comments

3
Welcome

• Introductions
• SCEIS Financial Team
• Tommy Watson twatson_at_sceis.sc.gov
• David Seigler dseigler_at_sceis.sc.gov
• Martin Taylor mtaylor_at_sceis.sc.gov
• Brian Wilson
• Jasmina Chhabra
• Jason Pybus

4
Objectives of the Functional Review

• Define Business Blueprint goal and process
• Provide participants with an overview of the
• Purpose of each functional section
• Workshops conducted for each functional section
• Requirements for the SCEIS system
• Design decisions and/or recommendations reached
• Benefits of the decisions and/or recommendations
• Open Items for each functional section
• Document any additional items that should be
  incorporated in the Business Blueprint
  documentation
• Obtain consensus that no requirement and/or issue
  has gone undocumented

5
Business Blueprint Workshops

• Business Blueprint Goal to capture the States
  business requirements based upon current
  processes and to document how SAP should be
  configured, utilizing industry best practices, to
  meet the States needs
• Business Blueprint Workshop Process
• SME (Subject Matter Expert) participants attend
  workshop session
• Review objectives for particular workshop
• Review and update RFP requirements
• Define To-Be process
• Workshop minutes document SMEs discussions,
  recommendations and Parking Lot/Open Items
  needing further research
• SME participants review minutes and FAR Template
  on-going
• Receive additional comments from SMEs
• FAR sent to SMEs (participants reviewers),
  liaisons, and Users Group for meeting invitation

6
Accounts Payable Overview
7
Accounts Payable Workshops Completed

• Accounts Payable Master Data (1/4/05)
• Accounts Payable General Invoicing (1/5/05)
• Accounts Payable Inter/Intra Agency Billing
  (1/6/05)
• Accounts Payable Advancement Accounts (1/6/05)
• Accounts Payable General Payment Process (1/6/05)
• Accounts Payable Reporting (1/24/05)
• Accounts Payable Imaging (1/25/05)
• Accounts Payable Interfaces (1/25/05)
• Accounts Payable Workflow (1/26/05)
• Accounts Payable Integration w/ MM/IM AR
  (1/27/05)

8
Accounts Payable Workshops - Goals Objectives
(part 1)

• Capture the States business processes for
• Vendor Master Records (additions, deletions,
  changes)
• General Payables Processes
• creating invoices, distributing invoices, vendor
  correspondences, accounting updates, audit checks
  for invoicing, interest calculation, late fees,
  payment terms, forms, reason codes, overall A/P
  tolerances, overpayments, underpayments and
  discounts.
• Accounts Payable workflow
• Types of payments issued by the Agencies
• Current future AP imaging process/needs
• Current future AP approval processes.
• Current future AP reporting needs

9
Accounts Payable Workshops - Goals Objectives
(part 2)

• Define Discuss SAPs
• Vendors
• Account Groups number ranges
• Workflow
• Document Overview
• Invoice Activities
• Outgoing Payment
• Document all existing Payable reports

10
Identified Requirements for SCEIS System (part 1)

• Central Vendor File
• W-9s required and received electronically
  preferred and directly interfaced, if approved
• Interfaced with IRS and SSA files
• Purge vendors if no activity within 2 years
• Default tolerance of zero on vendor master to
  prevent payments in excess of purchase order
• Streamlined mechanism to allow agencies to
  continue with procurement activities while
  waiting on W-9s
• Capture classification on vendors such as
  minority, federal, state, etc.

11
Identified Requirements for SCEIS System (part 2)

• Invoice Processing
• Dunning in AP for credits not utilized after a
  certain date will be required
• Warning to prevent the payment of invoices for a
  vendor when an outstanding credit exist within
  the Business Area/Agency
• Duplicate invoice checking
• Electronic invoices accepted
• Calculate and accrue use tax as applicable,
  utilizing external files/tables
• Calculate and distribute sales tax and/or freight
  as applicable, utilizing external files/tables
• Invoice cant exceed PO outside of acceptable
  tolerances and include alerts, where appropriate
• Automatic matching and pulling of data from the
  PO, if it exists. System should accommodate
  multiple invoices from a single PO
• Route scanned invoices for either electronic
  matching or manual entry
• Proposed system should provide for an optional
  matching process (one-way, two-way, or three-way,
  as required)

12
Identified Requirements for SCEIS System (part 3)

• Invoice Processing
• We must be able to capture information on
  advancements so that the CAFR can be prepared as
  needed
• Reduce the number of document types as much as
  possible and add these only as last resort as
  each is fully analyzed
• The State wants to scan/image documents received
  via fax without printing the fax first
• Ability to view a scanned invoice/document from
  the system (i.e. invoice)
• Electronic invoices must be accepted and
  interfaced to the system without manual
  intervention
• Ability to route invoices for electronic and/or
  manual entry and automatically match supporting
  imaged documents to proposed payment folders
  (i.e. voucher package)
• Eliminate the 1000.00 requirement on IDTs. All
  Inter/Intra billings will be done via IDT (i.e.
  not check processing)

13
Identified Requirements for SCEIS System (part 4)

• Invoice Processing
• Allow invoice entry for items without purchase
  orders (direct pays) and record against available
  budget
• User defined scheduling for recurring
  transactions, automatic release and retrieval at
  any time for data entry
• System should notify departments, automatically,
  that invoice has been recorded but placed on-hold
  awaiting receipt
• Provide the ability to setup a retainage by
  invoice, project, or contractor
• For any Intra-Agency billings that may be done as
  a journal entry, then the system will need to
  have flag to capture these so that the CAFR
  preparation can remove these transactions as
  needed
• Process Inter-Agency billings the same way as
  normal payable transactions will be done
• System must have capability for multiple
  electronic approval routings (i.e. workflow),
  based on agency needs

14
Identified Requirements for SCEIS System (part 5)

• Invoice Processing
• AP Personnel should have the ability to change
  codes (accounting streams), if needed. This
  should also release previous encumbered amounts
  when PO lines were copied in and subsequently
  changed. Notification of changes should go back
  via email automatically to the Buyer, if invoice
  was matched with reference.
• The system should not allow the goods receipts to
  exceed the PO quantity, nor should the AP
  invoiced quantity exceed the goods receipt
  quantity. This is for invoices matched with
  reference to POs.
• The State will only need one AP reconciliation
  account.
• Payments
• At least one level of systems approval must be _at_
  the agency before a document, proposed for CG
  review and payment, is received by the CGs
  Office.
• Must have flexibility to have payment runs done _at_
  anytime. Scheduling should also be available to
  avoid manual intervention.
• System should allow for cancellation of payment
  made in previous period and have proper GL
  transactions generated in the current period.
• System should allow for overflow to a separate
  remittance advice when the number of invoices
  exceed the space on the initial advice. Other
  pertinent information needed to vendors should be
  accommodated.

15
Identified Requirements for SCEIS System (part 6)

• Payments
• System must allow option to prepare either a
  single voucher for each invoice or combine based
  on the vendor, vendor site, by agency or any
  combination.
• Allow for the release of payment vouchers by
  batch, document, or individual line item.
• System should allow for unique voucher numbers to
  be automatically generated within each agency or
  combination across multiple agencies.
• Apply credit and debit memo amounts before
  producing a payment, but only if results in a
  positive payment.
• System should display check numbers and dates of
  payments.
• Generate payments, including automatic
  scheduling, based upon due dates and discounts
  dates to maximize interest earned and discounts.
  
• Proposed system should support backup
  withholdings.

16
Identified Requirements for SCEIS System (part 7)

• Reports
• CAFR which includes vendors, payroll, related
  benefits, intergovernmental (federal local
  govt.), claims, tax refunds, interfund payables
  (payments between agency), open item accounts
  payable listing is needed. Currently, State does
  not have details, and would rather have the
  details that the agency has today.
• Trial balance, aged payables (30, 60, 90 days),
  and open item list, by invoice , vendor name,
  vendor , PO , or account .
• Payables by cost center, fund, GL A/C, etc.
  across fiscal years.
• Vendor Types payment activities
• Segregate IDTs for reporting
• Ad hoc queries/reports available
• Inquire or report on both open and paid invoices,
  by vendor.
• Payments by purchase order, encumbrance, vendor,
  or other defined criteria.

17
High Level FlowsInvoice Manual Create
18
High Level FlowsInvoice Create Upload
19
High Level FlowsVendor Create Changes
20
High Level FlowsInvoice to Payment
21
High Level FlowsPayment Run
22
High Level FlowsIDT Process
23
Identified Benefits (part 1)

• A single Statewide vendor file will increase
  accuracy and eliminate duplication. Also,
  additional reporting needs and payment
  information will allow the State to better manage
  its vendors.
• Elimination of the required printing of a
  voucher. Only paper document in this process
  will be the original invoice, if not received
  electronically.
• Increased efficiencies in processing payments.
• No IDTs will result in checks (i.e. eliminate
  the 1,000 threshold).
• Increase the efficiencies with processing
  invoices.
• Pecking (priority) order on payment runs should
  consider IDTs first, so that revenues are
  recorded first.
• Improved reporting, both agency and statewide.
• Reduction in printing cost BW.
• Scheduled reports created and sent via email.

24
Identified Benefits (part 2)

• Improved efficiencies in processing between
  Agencies and Central Finance due to edits in one
  system
• Potential to leverage the paperless environment
  and archiving abilities
• All information coming from the system will be
  passed electronically, thereby, eliminating the
  manual process of paper movement today
• Eliminate the requirement for the Agency Finance
  Director to sign the payment request (i.e.
  today's voucher)
• CG will no longer receive paper voucher packet.
  Images will be forwarded electronically. No
  requirement to manually prepare supporting
  documentation for payment vouchers. System will
  automatically create voucher packet/payment
  request folder from imaged invoices

25
Open Items
26
Open Items Identified for Accounts Payable (part
1)

• Vendors not crediting the States account
  because the payment was transmitted
  electronically.
• This has been problematic in the current
  infrastructure. We will review further during
  implementation to determine how we may possibly
  enhance the information being sent to Vendors
  with their EFT payments to help them properly
  post payments being made to them
• How will Paul Jarvis, a State employee, get paid
  for the building he rents to DHEC if he is also a
  vendor doing business with the State?
• State employees would be treated as an outside
  Vendor in this scenario.

27
Open Items Identified for Accounts Payable (part
2)

• Obtain vendor data elements currently maintained
  by the CGs vendor file and agency vendor files.
• Name (ownership DBA) address business type,
  sole proprietorship/corporation federal ID/SSN
  email address status remit address contact
  information (name, phone , fax, etc.) SC
  Federal Minority vendor certification EDI
  functionality offshore indicator commodity
  code international indicator payment terms,
  etc.
• Roll up of invoices for a vendor options?
• Options range from a Statewide roll-up of
  invoices presented for payment and only one check
  being cut to the vendor for ALL outstanding
  invoices due, to an Agency level roll-up whereby
  one check is cut per Business Area for all
  outstanding invoices due, to no roll-up and one
  check per invoice.
• Current request is Agency level roll-up. Based on
  review of the success of this process, it is
  recommended that the Statewide roll-up be
  continuously reviewed for additional efficiencies
  that may be realized.

28
Open Items Identified for Accounts Payable (part
3)

• Obtain the law verbiage that states we must pay a
  vendor within 30 days of receipt of goods/invoice
  or face some late penalty percentage.
• STARS Disbursement Regulations, in accordance
  with SC Code of Laws Section 11-35-45, requires
  all vouchers for payment of purchases of
  goods/services to be delivered to the CGs Office
  within thirty work days from acceptance of the
  goods/services and proper invoice. Interest is
  applied to the unpaid balance beginning on the
  thirty-first workday.
• Obtain a list of vendor hold reasons from the CG
  and agencies.
• Email survey to Liaisons on 4/1/05
• Obtain of reasons why a vendor may become flagged
  as inactive.
• Email survey to Liaisons on 4/1/05
• Obtain list of Minority vendor criteria needed.
• Email survey to Liaisons on 4/1/05
• Obtain list of payment terms from CG and
  agencies.
• Email survey to Liaisons on 4/1/05

29
Open Items Identified for Accounts Payable (part
4)

• Estimate the additional workload that will be
  required by the CG/owner of the States vendor
  file.
• Significant work will be required up front in the
  original creation of Master Data for the system
  in regards to scrubbing data currently in the
  Vendor File, potential consolidating information
  in the Vendor File, and addition of data elements
  not currently within the Vendor
  File(i.e.payment terms by vendor, dunning
  terms etc) Maintenance level work is yet
  determined and will be affected by the level of
  functionality realized in regards to Vendor
  Self-Maintenance, Vendor enrollment via workflow
  from Business Areas
• Verify whether the State has the legal authority
  to apply credits to future invoices.
• State Agencys have the authority to apply a
  vendors credits to that same vendors invoices.
  However, we dont feel that a credit received by
  one agency should hold the payment of another
  agencys approved invoice. Having a central
  vendor file for the State, we will not be able to
  place holds on vendors to ensure that credits are
  taken at the very first opportunity. Therefore,
  some other process will need to be established to
  prevent missing these lost opportunities within
  an agency.

30
Open Items Identified for Accounts Payable (part
5)

• Create proposed flowchart for vendor master
  additions and changes.
• See process flow in FAR presentation
• Electronic notification to PO buyer/requestor
  when invoice is received, so that both parties
  are aware when invoice has been received and
  invoice placed on-hold for receipt.
• Can be accommodated either through Workflow or
  email.
• Tracking Discounts in Payments Runs. If payment
  in system is made and the check is cut, the error
  will occur in the system, prior to the check
  being cut. Determine when the discount gets
  grabbed/calculated (i.e. during payment run
  only?).
• System calculates the discount during the payment
  run.
• Find out what regulations exist to allow us to
  take discounts.
• Discount terms are normally listed on the invoice
  and that is the legal means in which they can be
  taken. By having centralized vendor maintenance,
  the State should be in a better position to
  request such discount terms. These terms will
  default from the vendor file, but can be
  over-ridden by an authorized user entering the
  invoice. The payment run cycle takes into
  consideration the optimum time to pay a vendor
  based on the terms.

31
Open Items Identified for Accounts Payable (part
6)

• Determine best way to prioritize payment workflow
  and allow Special items to take priority and be
  processed quickly.
• For items already in the system that need to be
  pulled and handled in a higher priority or
  expedited fashion, some form of communication
  with CG office needs to take place identifying
  the document and requesting special handling.
• For items not yet in the system that are being
  walked through which need to be processed in
  high priority, there are multiple optionsone
  recommendation is a Process Special document type
  that will be worked in higher priority at the CG
  office. The availability of this document type
  should be limited to those with higher levels of
  responsibility and authority, not to be used on a
  routine basis, but only in extenuating
  circumstancesthis option is not preferred due
  to the proliferation of doc types and the
  potential for user error to be heightened. The
  other option depends on the workflow
  functionality recommended by the technical team
  in regards as to how items will flow from the
  Business Areas to the CG/Audit process. The
  intent is to identify high priority items and
  pre-sort them in order of priority in the work
  queues for release to the payment run.

32
Open Items Identified for Accounts Payable (part
7)

• Allow mechanism for vendors, using BW (Business
  Warehouse) so that they can review their
  payments, primarily EDI, for proper account
  postings. Similar to what the Treasurers Office
  uses today.
• This functionality will be reviewed as an option
  in response to the issue regarding Vendors not
  properly applying payments to accounts. This will
  be further reviewed during implementation. This
  issue will also be further explored during the
  development of certain Vendor Self-Maintenance
  functionalities.
• What will be the mechanism to allow electronic
  invoices from vendors?
• SAP can accept electronic invoices. There will
  need to be a detailed functional spec written for
  each inbound interface during Realization. The
  interface will grab these files and a SAP routine
  will run that creates the invoice batch.
• Obtain listing of current Stars Transaction codes
  for BE.
• STARS Transaction Code Description Table Listing
  provided to BearingPoint

33
Open Items Identified for Accounts Payable (part
8)

• Determine if we should consolidate at a statewide
  level invoices for payment or allow consolidation
  only at the agency level. What is the cost
  involved with both alternatives?
• Due to experience with Vendors not properly
  giving credit for payments made, Agencies prefer
  to group/consolidate invoices for payment at the
  Agency level. We agree that this is a practical
  interim policy, however, this practice should be
  continually reviewed for potential change to a
  statewide methodology to determine if economies
  can be further realized via consolidation.
• How to deal with partial payments on an invoice
  unpaid balance remain encumbered and pay
  follow up invoice upon receipt of good?
• The system will not release encumbrances until
  the goods and/or services are received.
  Therefore, it is imperative that only the actual
  goods and/or services received be receipted.
  Vendor invoices can be paid partially, based upon
  what was received. Best business practice may be
  to request an amended invoice that reflects only
  what has been received or return the invoice back
  to the vendor noting that payment will not be
  made until all items are receipted.

34
Open Items Identified for Accounts Payable (part
9)

• Obtain copy of an IDT, regular payment, and
  claims payment (i.e. see attached vendor) for
  BE.
• Obtained and provided to BE.
• Obtain more information on the Dual payment
  process.
• This question arises out of the situation whereby
  two Business Areas share in the purchase and/or
  payment of a vendors invoice. Workflow and
  security necessary to handle these unique
  situations will be further developed during
  Realization.
• How can we suspend IDTs on the Payor Side of
  the transaction to hold payment until they are
  ready to pay, due to various timing / cash
  reasons
• This was a concern when the option of performing
  IDTs via a GL Journal Entry was being discussed.
  No longer applicable, since this option is not
  being entertained anymore.

35
Open Items Identified for Accounts Payable (part
10)

• Obtain copy of the regs referred to by Paul
  Jarvis stating that an agency is not to expend
  more than ¼ appropriation within a quarter
• Proviso 63.15 of Appropriations Act requires
  agencies to budget and allocate appropriations as
  quarterly allocation in order to provide
  controlled spending throughout the fiscal year
  and in order to avoid a year-end operating
  deficit.
• How will IDTs be processed during the interim
  phase-in period? E.g., IDT between one State
  agency on SAP the other not yet on SAP. Also,
  IDTs between agencies on SAP and agencies that
  will not be on SAP (colleges and universities).
• IDTs will, based on workshops held to-date, be
  processed just as they are today. In that the
  Receiving Agency will be recording a receivable
  and sending an invoice to the Paying Agency. The
  Paying Agency will enter their payment (i.e.
  coding information) and process the payment to
  the CGs Office. However, unlike today, no
  checks will be issued and the 1,000 threshold
  will no longer create an actual check. During
  the payment run, transactions that are being paid
  to State Agencies, which are on SAP, will not
  result in a check being cut. Instead, a revenue
  stream for payment will be extracted and the
  Receiving Agency receivable will be updated. If
  an Agency is not on SAP, then STARS will pass
  both the payment and receipt transaction to SAP.

36
Open Items Identified for Accounts Payable (part
11)

• Open items for IDT's if Billed incorrectly by
  billing agency and erroneously paid as billed,
  how to correct in the future? I.e..can the
  paying agency alter the document when paying?
• Several choices exist. The receiving agency
  could contact the billing agency and request a
  corrected copy (i.e. A/R) or the receiving agency
  could short pay. Short paying the invoice would
  identify that an existing inter/intra receivable
  remains outstanding.
• Closing packages currently have thresholds, this
  will go away in the new system, how does this
  impact comparability of data when reported in the
  Financial Statements?
• Although SAP will enable the State to record all
  of its payables at year-end, which will be more
  accurate than what we do today, the variation in
  consistent reporting will be immaterial for
  State-wide reporting. Therefore, little to no
  effect should result on the CAFR.
• Obtain copies of all AP reports currently used by
  the agencies.
• Email survey to Liaisons on 4/1/05

37
Open Items Identified for Accounts Payable (part
12)

• Agencies were asked to inquire if their Vendors
  can bill the State electronically. Particular
  interest in LARGE INVOICE type vendorsi.e.Bell
  south
• Email survey to Liaisons on 4/1/05
• Agencies expressed the need to attach certain
  sole source docs and emergency procurement
  docs in support of purchases and invoices.
• SAP allows attachments and images to documents.
  The invoice will be imaged along with any other
  documents, as required by the agency.
• Central Vendor File Maintenance will have to be
  able to handle non-web/non-fax documents from
  Vendors via the mail (flowchart this process).
• Refer to flowchart in FAR.

38
Open Items Identified for Accounts Payable (part
13)

• Identify the minimum required info to add a
  vendor. The W-9 doesnt contain all pertinent
  information needed like minority category, etc.
• Email survey to Liaisons on 4/1/05
• Questions arose regarding how Agencies are using
  Multi-Purpose codes and what were the various
  uses of them at different agencies, STATE should
  query the agencies to obtain a listing of how
  these codes are being used today.
• Email survey to Liaisons on 4/1/05

39
Open Items Identified for Accounts Payable (part
14)

• State needs a manner in which to process
  special when sending the items to CG so that
  they can be processed immediately instead of
  potentially being buried in a work
  queue.possible options are simple communication
  via phone/email to pull and process special or
  potentially a document type that designates it as
  highest priority.
• We will document a detailed process for this
  during the Agency Implementation Plan for the CG.
  (see comments on slide 30)
• Flowchart the process of invoices received,
  entered, approved and paid. Incorporate CGs
  approval Treasurers Office (include what
  happens with save as complete, post, etc.).
• Refer to flowchart in FAR.

40
Open Items Identified for Accounts Payable (part
15)

• Check with State Auditors Office on signatures
  required for vouchers. What do we need to
  document Agency Finance Directors delegation of
  an electronic signature authority?
• Sent email to State Auditors Office on 4/1/05
• Can the of steps (workflow) be defined by
  Business Area?
• Each workflow process can be customized however
  the State should attempt to standardize these
  processes.
• What happens with a vendor credit when the
  original expense (overpayment) occurred in the
  previous year?
• This would be a refund of prior year
  expenditures. (see additional comments on slide
  43)

41
Open Items Identified for Accounts Payable (part
16)

• Check/verify that save and park doesnt force
  reservation and/or what is done to allow an
  electronic document to be forwarded (via
  workflow) when funding is requested.
• Definitions
• Hold allows a user to save their work until
  they can come back to the document. For example,
  if someone wanted to leave for lunch or a
  meeting, then they could HOLD the document and
  assign it their own unique number/name until such
  time they could return to work on the document.
  Workflow is available and the system is not
  updated by any HOLD documents.
• Park allows a user to complete a document to
  the extent they can and initiate workflow so that
  the document can be passed electronically to
  someone else in the process. Workflow is
  available with PARK and the system is not updated
  by any PARK documents.
• Save allows a user to complete a document to
  the extent they can, as well as perform validity
  checks and reservation, while also initiating
  workflow so that the document can be passed
  electronically to someone else in the process.
  Workflow is available with SAVE and the system is
  updated by any SAVE documents.

42
Open Items Identified for Accounts Payable (part
17)

• Save as Complete allows a user to complete the
  process and the document is posted to the system.
  All validity checks and reservation occurs when
  this action is selected. Workflow is still
  available and the system is updated.
• Note that not all modules in SAP have all four
  options available.
• How will USE Tax be handled in the new system to
  create the accrual (i.e. fund reservation) at the
  time of payment, so that the monies are available
  to clear the accrual when DOR is paid.
• SAP has several options transaction lines can be
  flagged at AP entry to indicate that Use Tax is
  applicable and/or at the time the transaction in
  AP is entered, the applicable funding lines
  responsible for the Use Tax can be
  added/pro-rated and a credit line created to hold
  the accrual for monthly clearing. The second
  method ensures that funds for Use Tax are
  reserved at the time the invoice is paid, rather
  than waiting until month-end to record the impact
  against budget availability.
• Obtain list of vendor types/account groups from
  CG and agencies (i.e. employees non-state
  employees state agencies commercial hospital,
  non-profit, etc.).
• Email survey to Liaisons on 4/1/05

43
Post Workshop Feedback From SMEs

• All comments received were already being
  addressed by Open Items

44
List and Identify any Remaining Outstanding Items
(part 1)

• Tax Intercept Where it goes, how it gets
  reported, who is doing it, etc.
• This will be further defined in detail during
  Realization. It will be a combination of system
  processes and business processes.
• Determine proposed procedures for handling credit
  memos? Can we automatically apply them on any
  future invoices? What are the legalities
  associated with this for the State?
• This is a State business process action. State
  will need to answer legal question of application
  of credit memos. (see initial findings on slide
  28)
• Address the concern over the payable being booked
  (GR) in the old year, but never gets paid. What
  happens to AP balance? How will we clear this.
• Debit AP and Credit (depends) If immaterial,
  then some kind of misc. rev if material, then
  prior-per adjustment (but must receive CG's
  approval) --also, no direct postings should ever
  be allowed to fund balance in any circumstance

45
List and Identify any Remaining Outstanding Items
(part 2)

• Cross period postings. Examples may be invoices
  that we receive where the goods and/or services
  occur in two fiscal years. Also, how will we
  accommodate the processing of new year and old
  year transactions concurrently.
• During the month of July, SAP will have to have
  both fiscal years open so that transactions can
  be processed. No purchase orders or requisitions
  will be encumbered until such time that the new
  fiscal year budget is loaded. However, since
  this may not occur until just before the start of
  the new fiscal year, SAP does allow for these
  documents to be initiated and completed with the
  exception of encumbering funds. The Funds
  Management (FM) module in SAP has a program that
  can be run to take all of these documents, once
  the budget is loaded, and encumber them in mass.
  This will allow work to continue without any
  delays.
• Goods Receipt It is still unclear exactly how
  SAP will handle these situations. Worse case
  scenario is that the State will continue to do
  what is done today post the transaction in the
  period that benefits the most as long as no more
  than 12 payments, based on monthly billings, are
  recorded in a given fiscal year for items like
  utilities, etc. However, SAP may allow for goods
  receipt to be recorded in multiple periods (i.e.
  years). If this can be accommodated in SAP, then
  transactions can be recorded to the correct
  fiscal year more accurately and the States
  transactions, will more accurately reflect GAAP
  requirements.

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Non-FAR Open Items (part 1)

• Identify all agencies that are lump sum (i.e.
  payments made only for draws).
• List obtained and provided to BE.
• Obtain Travel advance rules and give to BE.
• Obtained and provided to BE.
• Archiving Schedule is still undetermined from a
  conversion standpoint. How frequently should BW
  be updated?
• This question will not be answered until after
  Blueprint. Blueprint will define the
  requirements for resources on the system like
  reports, users, interfaces, document storage,
  etc. A meeting was scheduled with State Archives
  to identify the existing requirements and what
  may be changed as a result of imaging and BW.
  The goal for the state is to eliminate the
  requirement to store any documents on paper,
  where feasible.

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Non-FAR Open Items (part 2)

• Potential Hardware Question exists at the Agency
  level regarding what infrastructure build-up they
  may experience in order to be able to handle the
  electronic document retentions which are
  currently paper and boxes.
• These questions will not be answered until after
  Blueprint. Blueprint will define the
  requirements for resources on the system like
  reports, users, interfaces, document storage,
  etc.

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Non-FAR Open Items (part 3)

• Keep all information in STARS and interface it to
  SAP, or get information into SAP when possible?
  The State was adamant that if an agency is
  transacting in STARS they will transact
  COMPLETELY within STARS and that the STARS data
  will be translated into SAP. The Translation
  from STARS to SAP will not affect the operations
  of the Agency and they will not have to be
  fluent in SAP to conduct business within two
  systems.
• Agencies not live on SAP will not be impacted in
  anyway. They will continue to process their
  transactions into STARS just as they do today.
  SCEIS will write an interface from STARS which
  will be loaded to SAP daily. However, non-live
  agencies have no responsibility for this
  interface or its accuracy. The interface will be
  necessary because the CAFR reporting will be
  coming from SAP. Therefore, all data must exist
  even though journal entries will be performed for
  non-live agencies that continue to submit closing
  packages for GAAP.

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Non-FAR Open Items (part 4)

• The State has a statewide standard 10 overage
  tolerance on printing, which is set by the State
  Printing Manual.
• This concern was raised when the decision to have
  no tolerance in AP, beyond tax or freight items,
  was discussed. The initial decision coming from
  the workshop was to not allow the invoice to
  exceed the purchase order, if applicable. In
  establishing this tolerance, then the concern
  over approved printing overages became a problem.
  The solution would be for the purchase order to
  be changed to reflect the overage and then
  process the invoice.
• Flowchart the creation of requisition process,
  utilizing agency release strategy.
• There is no way to do this for an enterprise
  system. It will be done on an agency by agency
  basis by the MM Team. Refer to MMs Requisition
  Functional Area Review on the SCEIS Web-page.

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Resolutions for Open Items Web Page
Resolutions of selected open items which arose
during the blueprint phase have been published on
the SCEIS website. These items are of general
project interest and/or have been frequently
asked. As the blueprint work continues, other
items will be added. Additional items are also
discussed in the FAR (functional area review)
presentations. To view go to
www.sceis.sc.govLinks to the Resolutions for
Open Items appear on the SCEIS Home,
Finance/Procurement, and workshop schedule pages.

Cost Center 1
Cost Center 2
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Next Steps for You Your Agency

• Identify impact of the SCEIS Accounts Payable on
  your agencys current business processes
• Identify any areas where holes may still exist
  in our defining the States Requirements for
  Accounts Payable

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Questions Answers