Orientation to Business Processes and Roles in eUMB Financials

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Orientation to Business Processes and Roles in
eUMB Financials
November 8, 2005
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Objectives

• Learn how business processes will be done in eUMB
  Financials
• Understand what part the various roles play in
  the business processes
• Consider the effects of eUMB Financials on
  departmental processes

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Introduction

• eUMB Financials is Phase 2 of UMBs multi-year
  initiative to replace our administrative systems
• The campus will move from FAS to eUMB Financials
  and replace several legacy systems
• eUMB Financials is a web-based, integrated system
• Several processes currently using paper will now
  be done on-line
• This is a work in progress

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Agenda

• Roles and Business Processes for
• Buying and paying for goods and services
• Maintaining financial records
• Depositing money and crediting income
• RAVEN as the users reporting tool
• Financials impact on HRMS Commitment Accounting
• Implementation schedule
• Requirements to use eUMB Financials

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Terms

• Chartstring Replaces FAS accounts
• Workflow Electronic routing and approval
• Worklist Items awaiting approval or denial
• Journal Voucher or IDT in FAS Journal Entry in
  eUMB Financials
• http//www.fincsvc.umaryland.edu/ps/index.cfm

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Chartstring Example
GLBU Project ID Owner Dept Program Fund
Account Tx Dept
PSUMB
10205000
181
151
10205000
00521747
3912
00184
PCBU Project ID Activity ID
Default
00521747
OK
Auto populated
Look-up button
SAVE
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Procurement Policy

• Policies as stated in the Corporate Purchasing
  Program, Users Guide remain in effect
• We will no longer use PO Express
• Requests for Payment (Check Requests) will come
  through Procurement Services and must comply with
  University policies
• The same person is not permitted to initiate and
  approve a requisition

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Requisition or Pro Card?

• Requisition
• Purchases that equal or exceed 5000
• Vendor does not accept Pro Card
• Requests for payment
• Pro Card
• Single transactions less than 5000

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Procurement Card Roles

• Viewer Reviews credit card transactions and runs
  procurement card reports. Does not have access to
  update any records.
• Re-allocator Reallocates charges to the
  appropriate chartstring. Reviews credit card
  transactions and run procurement card reports.

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Reallocation Business Process

• Each department will have a default chartstring
  for credit card purchases.
• The Re-allocator will go on-line in eUMB
  Financials and reallocate expenses from the
  default chartstring to the appropriate
  chartstring.
• The Re-allocator has until the 15th of the
  following month after the end date of the billing
  cycle to make changes by reallocation except for
  June expenses, which will be July 10th.

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Reallocation Business Process (Cont.)

• Departments may reallocate at any time and as
  often as they want prior to the 15th.
  Reallocations are processed nightly and will
  appear in RAVEN the following day.
• After the 15th, charges are posted to the General
  Ledger. After expenses are posted to the General
  Ledger, they can only be adjusted by Journal Entry

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Requisitioning Business Process
Procurement Services
Purchase Order
Deny
Quality Assurance
Accounts Payable
Approve
Documents
Department Requisition Approver
Deny
Approve
Documents
Receiver
Requisitioner
Submit for approval
Hard copy of documents
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Requisitioning Roles

• Requisitioner User logged on to eUMB Financials
  entering the requisition
• Department Requisition Approver User logged on
  to eUMB Financials who approves requisitions for
  the department.
• Receiver User logged on to eUMB Financials
  acknowledging receipt of goods or services.

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Requisitioning Business Process-Initiating

• Requisitions will be entered on-line by the
  Requisitioner
• Departments may have multiple Requisitioners
• Defaults the Ship To as the Requisitioner
• Departments can identify a Requester to ship to
  a different location than the Requisitioner
• Attach electronic and/or hard copy documents
• ORD will initiate requisitions for sub-recipients

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Requisitioning (Cont.)

• Before a completed requisition can be submitted,
  it must pass system edits and validation
• After the requisition is submitted, it is moved
  by workflow to the Department Requisition
  Approvers worklist and an email will be sent to
  each approver
• Departments may have multiple Approvers
• The Requisitioner and Approver can determine the
  status of a requisition via the Requisition
  Inquiry page

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Department Tree Structure

• 10000000 School of Medicine
• 10400000 Clinical Departments
• 10401000 Anesthesiology
• 10401010 General
• 10401020 Cardiac
• 10401030 Pediatrics
• 10401040 Pain
• 10401050 OB-GYN
• 10401060 Research
• 10401070 Kernan
• 10401080 Critical Care

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Multiple approvers in a department
Department 10401060 Anesthesiology-Research
Worklist
Worklist
Sam
Sally
Req. 1
Req. 1
Approver
Approver
Req. 2
Req. 2
email
Requisitions
email
Worklist
Fred
Requisitioner
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Requisitioning Business Process-Approving

• The Department Requisition Approver will access
  the requisition via their worklist
• The Approver can deny or approve the requisition
• The Approver cannot change the requisition
• If the Approver saves an approved requisition, it
  will move by workflow to Quality Assurance
• Quality Assurance will quality check the
  requisition approved requisitions will move by
  workflow to Procurement and the designated Buyer

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Quality Assurance- May deny requisition due to

• Incorrect fiscal year
• Inappropriate account (sub-code)
• Item description inappropriate for account
  (sub-code)
• Grant not active or the transaction outside grant
  dates
• Insufficient funds

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Requisitioning Business Process- Denying

• When the Department Requisition Approver denies a
  requisition, the requisition moves by workflow to
  the Requisitioner and he/she is notified by
  email. The Approver should make comments for
  denying requisition.
• When Quality Assurance denies a requisition, it
  moves by workflow to the Requisitioner and he/she
  notified by email. Quality Assurance will make
  comments on why the requisition was denied.
• The Requistioner accesses their worklist and can
  modify the requisition and resubmit it or cancel
  it. Only the Requisitioner can change the
  requisition.

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Requests for Payment Processed as Requisitions

• Different codes for regular requisition and
  requests for payment
• Hardcopy backup to be sent with the approved
  requisition
• Routing path same as a requisition requiring the
  same levels of approval
• Procurement will forward Purchase Order to
  Accounts Payable
• Examples study participants, postage meters,
  stipends, honoraria, moving expenses

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Requests for Payment Exceptions

• Financial Services will continue to process the
  following using existing procedures
• Emergency payments through the working fund
• Travel expenses
• Foreign wire transfers
• Forms modified for chartstring use

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Accounts Payable

• Receivers
• Receiver an electronic document
• Receiver person who acknowledges receipt
• Vouchers
• Encumbrances

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Receiving

• Verifying receipt of goods/services will be done
  on-line in eUMB Financials via the Receiver, an
  electronic document, instead of a paper receipt
• The role of Receiver is the person who goes
  on-line to acknowledge receipt
• Recommendation The person who is the
  Requisitioner should be the Receiver that
  individual knows the most about the requisition.

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Receiving (Cont.)

• The Receiver enters a Receiver into eUMB
  Financials for every regular requisition
• Receiver mandatory for payment
• AP must have Purchase Order, invoice and Receiver
  to pay vendor 3-way match
• AP has discretion for under 5000
• Timely response ensures timely payment

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Accounts Payable-Vouchers

• On-line payment voucher within eUMB Financials
• Source entry for Accounts Payable
• State of Maryland cuts checks
• On-line inquiry through drill down

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Encumbrances (Non-Payroll)

• A requisition approved by Quality Assurance
  creates a pre-encumbrance and reduces budget
  available
• A Purchase Order generated by Procurement creates
  an encumbrance and reduces pre-encumbrance
• A voucher payment by Accounts Payable reduces the
  encumbrance and creates an actual expense
• Encumbrances are increased or decreased by change
  orders submitted to Procurement

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Journal Entries and IDTs

• Journal Entries will be created on-line within
  the department and sent to Quality Assurance via
  workflow for review and approval.
• One level of approval at the department level
• Interdepartmental Transfer (IDT) will be handled
  as a Journal Entry. The department receiving the
  credit should create the entry after receiving
  approval from the department being debited.
• Departments will not receive notification of
  their chartstring being charged.

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Quality Assurance-Journal Entries may be denied
due to

• Incorrect fiscal year
• Inappropriate account (sub-code)
• Grant not active or the transaction outside grant
  dates

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Cashiers Office-Deposits

• Deposits will continue to be made at the
  Cashiers Office
• Deposit summary modified to use chartstring
• Credit card deposit on separate deposit summary
  from cash/checks deposits
• Continue to receive a receipt
• In person or by mail
• One receipt for each deposit summary

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Billing and Accounts Receivable

• Central billing process remains the same
• For grants billing, departments will continue to
  verify invoice prior to sending
• The Cashier will continue to receive and process
  payments crediting eUMB chartstrings

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What is RAVEN?(Reporting And Viewing ENterprise
Data)

• Primary source for financial information for end
  users (Budget vs. Actuals)
• Replaces FAS Web (going forward)
• Snapshot of data at a given point in time
• Downloadable for export to departmental systems

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How is RAVEN organized?

• A portfolio of eUMB pages
• Statement of Payroll Charges (SPC)
• Grants
• Pro Card
• Plant Funds

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Who has Access to RAVEN?

• Role based access to RAVEN pages
• eUMB security will control user access to RAVEN
  data by
• Department
• Award
• Project

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eUMB HRMS Commitment Accounting

• Valid chartstrings will be fed nightly from eUMB
  Financials to eUMB HRMS
• Account codes activated or inactivated by nightly
  feed
• EFP setup page includes additional information
  and allows user to auto populate chartstring
  through selection of Account Code or Project ID
• Queries and reports modified to run by Project ID
  and include display of full chartstring
• Statement of Payroll Charges (SPC) report part of
  RAVEN
• More information at Chart of Accounts Orientation
  session

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Conversion Timeline
(Accounts)
Mapping
(Chartstrings)
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Implementation Schedule

• Nov-Jan System integration testing
• Oct-Dec State interface testing
• Nov-Dec Validation of assigned roles
• Nov-Dec Chart of Accounts Orientation
• Jan-Feb User acceptance testing
• Jan-Feb Training for school/dept. users
• March 1 Go live

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To access eUMB Financials, you must

• attend orientations on business processes and new
  Chart of Accounts,
• have your roles and level of access verified by
  the appropriate department authority,
• attend the training session for each role you
  have been assigned.

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Roles and Training

• Everyone Introduction to eUMB Financials
• Requisitioner, Dept. Requisition Approver
  Working with Requisitions
• Receiver Receiving Goods and Services
• Pro Card Viewer and
• Pro Card Re-Allocator Pro Card Reallocation
• Dept. JE Initiator Working with Journal Entries
• RAVEN Introduction to RAVEN

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Internal Departmental Processes Moving from FAS
to eUMB Financials

• How will your department business processes be
  affected?
• Have you identified the appropriate individuals
  for the various roles?
• What will be the effect on shadow systems?
• What should you be doing to prepare clearing
  encumbrances, reconciling accounts, etc. ?

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Work in Progress !