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Slide 66 -
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1 Beverly Veit
May 27, 2008 DRAFT Navy ERP 2008 Update 2
Navy ERP in the DON and DoD Environment
Navy ERP Program Update
Navy ERP 101
Reference Materials
Navy ERP Terms/Glossary
DoD/DON Acronym List
Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee
TRANSCOM Logistics
ERP Air Force Logistics
ERP Navy ERP Army Logistics
ERP DLA Supply Chain & Financials
ERP DoD Financials
ERP Marine Corps Logistics
ERP Army
Financials
ERP DoD ERP Landscape Air Force Financials
ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices
Common data supports real time information exchange
Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status
Asset visibility allows better management of inventories
End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications
Facilitates federal financial, security standards compliance
Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases)
NAVSUP HQ, FISC, ICP – October 2008
SPAWAR HQ, SSC – October 2009
NAVSEA HQ (GF activities) – October 2010
NAVSEA WC (NWCF activities) – October 2011
1.1
NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites
Trained and Deployed to 14,265 users at 9 sites
14 web based courses; 65 instructor lead courses
99.8% Data Load success rate
21,000 Test scripts executed
13 million objects converted in Mock 5 testing (52.7M across all Mocks)
Completed NAVAIR 1.0 transition on 21 December 2007
Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports)
System Sustainment in progress
Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon:
Customer priority
Resource Availability
Logical / Technical dependencies
The first group, Release 1.0.1.1, included:
Open Obligation Report
Encumbrance Report
IF4/5/5a Budget Exhibits Report
These reports were made available to the end users March 2008
Release 1.0.1.2 included:
BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing
Relationship Query Report (Asset Management)
These reports were made available to the end users March 2008
Release 1.0.1.3 and 1.0.1.4 included:
Common Cost Management Framework (CCMF)
WARS extracts (exact objects in process of being identified)
These functionalities were made available to the end users April 2008
Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS.
11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR:
Performed only mission critical functions
Had limited access to systems. Vast majority of mission critical business transactions were manually performed
NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are:
- Contract/Vendor Pay
- Employee Pay
- Employee Travel
- Program Billing
- Financial Reporting
Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required.
(OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands.
12 Scheduled deployment October 2008.
Conversion Strategy
Limited financial data conversion to Navy ERP from legacy financial systems
STARS-HCM – NAVSUP HQ
STARS-FL – NAVICP, COMNEXCOM, NOLSC
DBMS – NAVSUP HQ, NAVICP, COMFISC
Complete open documents in legacy until retirement of system
At time of deployment NAVSUP will only process new business in Navy ERP
** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1.
Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation
Majority of funding executed to run organization (labor & transportation)
94.9% of funds expended in first 18 months
Legacy systems will be active 12 months after go live to support other commands
Preponderance of funding 3+ years for obligation
Majority of funding executed for development of weapon systems
Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009.
Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise.
STARS- FL - SPAWAR Norfolk & New Orleans
STARS-HCM - SPAWAR HQ
DIFMS - SPAWAR Charleston
CABRILLO - SPAWAR SSC-SD
Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization.
FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP.
Navy ERP Update - SPAWAR 15
Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS).
NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires.
NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts).
16
Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010.
Release 1.1 is Navy ERP’s Supply Solution:
Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS.
There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality.
NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides:
Standardized business processes running on an integrated application
A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS
NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS
NIMMS DIFMS
NIMMS DIFMS
DIFMS
DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information
End-to-end product management and improved interoperability Financial Management (Cabrillo)
50% reduction in annual cost of Business Systems support
Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement
Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS)
Elimination of job rejection notification delay from 20 days to immediate
Reduced total repair time by 16% -- from 96 to 81 days
Material inventory provided a one time saving of $2.4M
Program Management (Sigma)
66% improvement in financial statement processing time
Engineering Change Proposal (ECP) approval time decreased from 87-25 days
Retired 59 0f 72 legacy systems Aviation Supply (SMART)
1M+ inventory transactions with less than 0.5% error rate
Reduced warehouse refusal rate from 3.5% to 0.5%
Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures
Cost Centers
Job order numbers
Rates/Activity types
Cost Elements (ABC and secondary elements)
Budget Exhibits
Work Breakdown Structures
Chart of Accounts (GL)
Funding Document Process
Material Master
Vendor Master
Common Reporting –Business Warehouse
Standard Large Contracts Process
Standard MILSTRIP process
Standard Purchase Card process
Earned Value Management (EVM)
Standard Local Training process
Standard Travel process through DTS
Standard Award Initiation and Interface
Standard Qualifications
Standard non-NSPS Performance Appraisals
Training Catalog
Employee Self Service
Manager’s Self Service
Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts.
Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing.
Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern.
Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash).
Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset.
Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system
Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional).
Conversion of Data
Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability.
23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept.
A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access
Authorizations determine what level of access you have to the objects
Role
Security
What do I have access to do and see?
Training
What courses do I need to attend? 24 General ledger posting / analysis / reporting
Accounts receivable / accounts payable
Cash management/Billing
Management of posting periods and year end closing
Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning
Automatic funds availability control / checking
Assignment and management of cost and activity planning functions
Assignment and management of overhead allocation functions
Viewing actual costs by cost object (cost center, internal order, WBS, etc.)
Viewing and managing variances between planned cost and actual cost
Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements
Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred.
Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making.
26 Navy ERP Redesigned Processes 27
FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28
Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR.
Funds Allocation Terminology 29 DoD DoN NAVY
ECHELON 1
Company Code
1710 NAVSEA CFFC Other
Claimants NAVAIR NAVSUP SPAWAR NAVAIR
NWCF
Depot
Maintenance
Company Code
1781 NAVAIR
NWCF
Warfare
Centers
Company Code
1780 NAVAIR
General
Fund
Company Code
1719 NAVSEA
NWCF
Depot
Maintenance
Company Code
1784 NAVSEA
NWCF
Warfare Ctrs Company Code
1783 NAVSEA
General
Fund
Company Code
1724 NAVSUP
NWCF
Supply
Management
Company Code
1782 NAVSUP
General
Fund
Company Code
1723 SPAWAR
NWCF
Warfare
Centers
Company Code
1785 SPAWAR
General
Fund
Company Code
1739 CLF
General
Fund
Company Code
1767 CPF
General
Fund
Company Code
1767 OTHER
NWCF
Company Code
17XX OTHER
General
Fund
Company Code
17XX Company Code Structure 30 Company Code Structure 31
Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements.
HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code
X X Y Y
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Budget Object — funding is attached to 5 pieces of master data:
Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation.
Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization.
Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS
Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area.
Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level. Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters
Long vs. 4 New—5th dimension to the Budget Object 34
FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy.
Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of:
A document header: The part of a document that contains information valid for the entire document. Required data includes:
Document date
Document type
Company code
Currency/Rate (USD)
Line items: The part of a document that contains information about an item. Required data includes:
Posting key
GL account number
Amount
Debit or credit assignment
Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36
General Ledger — Account master records required to support financial management reporting.
Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate.
Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid.
Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program).
Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy
Budget Exhibit preparation available to all Organizations
PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS
The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount
Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion
Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds
Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity
38 Plan to Perform Where cost schedule and performance are maintained in the system
Where budgeting is performed
Where execution is performed
Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000
Provides the foundation for the POM submission and budget exhibits
Supports the A-11 process
Supports the transfer of funds from one command to another
Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers
39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions.
Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date.
Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period.
Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost.
Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process.
40
Project Structure/Management Functionality Program / project status controls
- Limits actions which can be performed
Open or release project for charging
Logistical close of projects
Temporarily lock a project from charging
Financial close of projects
Project simulation capability
Perform scheduled “what-if” analysis
Scheduling activities and events
Detailed project scheduling
Project milestone scheduling
Integrated program scheduling
Earned Value Management (EVM) 41 Plan to Perform WBS Element:
A deliverable-oriented project element that organizes and defines the scope of the project
WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services)
42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office
Appropriations: APN1, APN5, RDT&E, OM&N
Project Structures (Examples):– AN/APG-79 Airborne Radar System
Advanced Targeting Forward Looking Infrared (ATFLIR)
Block Upgrades
Advanced Crew Station
Mission Planning System
Digital Wingtip
Electronic Warfare
Signal Data Computer Replacement (SDCR)
Automated Maintenance Environment (AME)
Joint Helmet Mounted Cueing System
ARC-210
43 Funds Control activated at
- Fund
- Fund Center
- Functional Area
- Funded Program
Fund availability check performed at the funded program level
Funded Program represents sales order line item
Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level
If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at
Fund
Fund Center
Functional Area
Funded Program
Funded Program represents CPP Project / WBS Elements / Network Activity
Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level
If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed.
45 Plan to Perform Benefits Budget and Execution in the same system
Improved planning visibility across commands
Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008
All projects will be hard controlled within the assigned funded program
Simplified project structures - Ability to multiple fund WBS billing elements
Eliminate need to replicate structures based on incoming funding
Direct Projects will no longer require a separate WBS billing element for each sales order line item
Multiple sales orders can be assigned to a single WBS element
Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs
Projects linked to investment program structures to provide program management views
46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS)
Enhanced validations to help prevent user errors
Assignment of resources, by name if desired, to activities during planning
Project stock – planning, execution, and management of materials within projects
Final bill process for reimbursable sales orders
Funding transfers between commands will occur via MIPR or SF2276A
Ability to capture ALL project costs (including G&A and surcharges) prior to billing
Ability to automatically generate purchase requisitions from within project
Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO)
Automatically posts commitments (PR) and obligations (PO)
Workflow used to process and approve documents
Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program)
PR approval triggers automatic creation of the Purchase Order (PO)
Approved transactions released to interfaces (SPS, MILSTRIP)
Project stock and limited Manufacturing Resource Planning (MRP)
Goods Receipt - Allows the user to record purchased property items delivered.
When goods are delivered, they are entered into Navy ERP as a Goods Receipt.
The Goods Receipt will charge either a cost center or a project based on the PO
Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program)
48 Purchase-Card
P-Card buys and approval
EDI links to Citibank
Automated Reconciliation assistance (Paperless reconciliation)
Improved Internal Controls (separation of duties)
Goal: Decreased cycle time for PCard Invoice certifications
Plan to Pay 49 Material Master
The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records.
The material master is used by all components in Navy ERP Logistics.
Vendor Master
The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor
Terms of payment
Names of important contact persons (sales staff)
Accounting information*
The vendor master record is maintained by both Accounting and Procurement.
*In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger.
Plan to Pay 50 P-Card PR 51 P-Card PO 52
Accounts Payable/Accounts Receivable – Terminology Vendor — business partner that provides materials or services.
Invoice receipt date — specifies the date on which the invoice was received.
Invoice date — the date the vendor stamps on the invoice.
Document number — a 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year.
Account — key to identifying an account in the general ledger.
Accounts Receivable — Process of sending invoices to customers, receiving payment, and applying payment to the proper open receivables.
Customer —Navy ERP Code that identifies a customer. A customer is a business partner who orders goods and/or services. The customer number for Navy will reference the DODAAC number assigned from the DODAAF file.
Document number — A 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. 53 Accounts Payable Document number
(invoice) Vendor Document number (purchase order) Invoice receipt date Invoice date 54 Accounts Receivable Document number
(billing document) Document number
(sales order) 55 Accounts Receivable Document number
(sales order) Customer 56 Play to Pay Benefits Supply and maintenance in same system with integrated execution
Fully financially and logistically compliant for inventory, procurement, and tracking to include sponsor owned material (SOM)
Ability to reconcile credit card items (821 daily) and CITIBANK (810 monthly) statement within Navy ERP
Ability to systematically generate PRs from within a Project (PROMAN / MRP)
Single location and greater visibility of Project Stock Items
Ability to monitor and manage Project Material availability within a central location
Automated interface to Standard Procurement System (SPS) before converts PRs to POs systematically
Purchase Info Records programmatically created to link vendors to materials to facilitate the process of creating purchase orders for materials. Each Info Record indicates the current and historical vendor prices for a particular material
Automated Commitments and Obligations
Workflowed Approval and Release Strategies
Replaces manual process with automated Local ATP (Available to Promise)
Full I&S (Interchangeable and Substitute) functionality
Manage Vendor-owned material within the plant
Full Warehouse Management Capability
57 Acquire to Dispose Acquire Asset – Acquire asset through CPP authority, automated PR/PO, or manual acquisition.
Maintain Asset – Depreciate asset and track property accountability.
Dispose of Asset – Retire the asset and physically dispose.
This is the functionality for fixed assets accounting is held (DPAS)
This is where depreciation is calculated
This is where military property and minor property can be held
This can be connected with the planning process or the disposal process for full asset lifecycle 58 Acquire to Dispose Benefits Single system for Property, Plant and Equipment (PP&E) asset visibility, custodial tracking and financial accounting & reporting.
Eliminates multiple asset management legacy systems.
Provides complete asset visibility - both accounting and accountability.
Standardizes Navy asset management processes
Improves valuation accuracy for contributed, sponsor owned and purchased assets.
Solution for assets that is integrated with Finance General Ledger, Planning, and Materials Management.
Asset master records are automatically created from approved Purchase Requisitions (PRs) and have value posted upon goods receipt for statistical reporting of SOE and minor property.
Navy ERP asset master record information can be downloaded/uploaded to facilitate physical inventory counts and is easily integrated with automated information tracking (AIT) solutions.
Use of workflow notification for asset transfers between custodians and/or cost centers within the Navy.
Unposted/Unbarcoded report gives immediate visibility to newly created assets.
Improves reconciliation accuracy of PP&E sub ledger against General Ledger accounts.
59 Check In - Check Out Personnel Administration
Awards, leave requests, training requests
Personnel Time Management
Personnel time recording (WBS, cost)
Civilian Time and Attendance interfaced to DCPS for payroll
Employee Self Service / Manager’s Self Service
Leave requests (civilian)
Contact information
Time approval
Workflow approvals
Navy ERP will NOT be the HR system of record! 60 Time Keeping/Certification
Individuals will enter their time directly into Navy ERP on a weekly basis.
Supervisor, Certifier, or Team Leader certifies the time that has been recorded for employees on a weekly basis.
Once approved, the employee’s time record is available to be transferred to other SAP modules and copied to the Certification database for further processing.
All civilian time records must be certified. Non-certified civilian time records will not be sent to the Defense Civilian Payroll System (DCPS) interface.
Supervisor, acting supervisor, other designated user authorized to act as an alternate, will perform the certification processes.
The certification process for Military time data is optional. The decision to use the process is determined by the local command. Time Keeping/Time Certification 61 Direct Labor Transfers Labor Transfer Process
All direct and reimbursable labor is transferred to a network activity (network activities make up projects/WBS) and credited to the employees home cost center.
There are hard funding controls on all labor transfers. If there is insufficient funding on a project, the dollars will not transfer to the project, only the hours.
Funding Controls are set at the time labor is transferred and not at time entry.
Undistributed Labor
Failed labor transfers are identified as undistributed labor.
All labor expense associated with failed transfers remain in the employee’s home cost center, until funding become available on the project.
There are several custom reports that identify and control all undistributed labor.
Once funding becomes available the command can reprocess these failed transactions through a custom transaction (ZRCCC0007).
62 DCPS – Labor Interface Gross Pay (GPR) Processing
All labor is expensed to the employee’s home cost center.
Soft funding controls have been established– gross pay entries will not fail due to funding.
Errors or failures will mainly occur at the time of posting due to missing or erroneous line of account.
Unallocated Labor
These are GPR entries that fail to post to the Employee’s home cost center.
Labor analyst has the capability to correct and reprocess failed entries.
All entries that have not posted by month-end, are expensed to a default cost center for each command…..accounting for all labor expense for that month.
Once the unallocated labor is corrected and reprocessed to the employees home cost center, the month-end entry to the default cost center is reversed.
63 Check In Check Out Benefits Combines personnel data (DoD Civilian, Military, and Contractor) from multiple systems to provide enterprise wide accessibility and operational reporting.
Standardized/streamlined labor process provides for common schema with less overhead support.
Standardized custom time certification and transfer approval process.
Interfaces with authoritative DoD/DoN systems of record to ensure single point entry and data accuracy.
Reduce total cost of ownership through formal MOA’s and a common interface design.
Provides underlying structure for workflow enablement.
Personnel data reporting for supervisors and team leads.
Source Data Automation (SDA) interface as the authoritative system of record for civilian time and attendance recording to Defense Civilian Pay System (DCPS)
64 Post to Report Prepare Month-end & Year-end Closing
-Open/Close Periods in FI, FM and MM
-Clear Open Items in AP, AR and GL
-Asset Depreciation
-Cost Center Allocations
-Project Settlements
-Interfaces from DCAS, DTS and DCPS
Execute Month-end Closing
-FM Reconciliation and Reconstruction
-Outbound extracts to DCD, DONIBIS and DDRS
-Outbound ABC extract to SAS
Execute Year-end Closing
-Fiscal Year Change for Assets
-Asset close at Year-end by Company Code
-Close and reassign commitments
-Close unfilled obligations and budget accounts with residual balance
-Carry forward end of year balances
-Generate key reports
65 Monthly Reports Slide 66 Post to Report Benefits Navy ERP is the Accounting “System of Record” for all activities using NAVY ERP
Common Budget Structure and organization structure across entire Navy
We own our own “checkbook” for Vendor Pay – Navy ERP is the System of Entitlement
The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over/under spending their allocated budget amount
Significant process improvement over Legacy and the ability to leverage ECC 5.0 vastly improves the close process over Legacy (~500%)
Cross module integration between modules and budget execution. For example: When an end-user enters a contract, creates a PR and PO against the contract, and wants to view real-time funds availability after obligating the funds
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