SAP A

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• SAP A
• Fulton County Schools
• SAP Overview
• Version 1.0

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Course Objectives
Welcome to SAP Overview

• Why am I here?
• To understand
• what SAP is and how it will benefit FCS
• the structure of the SAP project
• which modules are being implemented
• basic terminology
• basic master data information
• how all three modules interact with one another
• the expectations for new SAP end-users
• the training plan
• Go Live and Ongoing Support

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Formalities

• Training Attendance Sheet
• Cell Phones
• Breaks, Lunches
• Restrooms
• Break Rooms, Water Fountain
• Room Temperature, Comfort Level
• Parking Lot, Questions and Answers

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Agenda

• Objectives
• Key Terms
• FCS and SAP Why?
• How is FCS using SAP
• Logistics Overview
• Finance Overview
• Human Resources Overview
• Training and Go Live

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Key Terms

• BPP Business Process Procedure
• A step-by-step process of how to perform a
  transaction in SAP
• Master Data
• Records that remain in the database over an
  extended period of time and are shared across
  applications
• ERP - Enterprise Resource Planning
• ERP systems integrate all data and processes of
  an organization into a unified system

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What is the A Project?

• Fulton County Schools has embarked upon a project
  to support on-going business operations
• Included in this project are
• Replacing aging and sub-optimal business systems
  in
• Human Resources (HR)
• Finance
• Logistics
• Implementing an Enterprise Resource Planning
  (ERP) system called SAP

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Why is FCS Changing Software Systems?

• We currently have a number of inefficient and
  redundant data management processes.
• Going to a new software system, like SAP, will
  help break the cycle of inefficiency.
• SAP will help to reduce paperwork, reduce
  duplicate manual processes, and implement more
  reliable and scalable solutions.
• SAP will be able to construct a foundation that
  will meet the future educational needs of an
  aggressively growing county.

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What Will We Achieve?

• Significantly improved FCS operations and
  management in
• Finance
• Personnel Administration
• Benefits Administration
• Payroll
• Pension Administration
• Purchasing
• Inventory Control
• Improved quality and access to informationfrom
  all levels of the organization
• Improved reliability and stability of the systems
  supporting key areas of FCS operations

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Whats the Benefit for You?

• A Best Business Practices information system
  that will provide
• Automation of manual processes
• Increased productivity
• Elimination of redundant work
• Data integrity data is entered once and used by
  all
• One system to learn and support
• Ability to report upon and analyze the
  organization as a whole, instead of one
  department at a time
• Ability to communicate with systems that are not
  partof SAP
• Data can be shared across modules without dual
  entry

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What is an ERP System?

• ERP stands for Enterprise Resource Planning
• Enterprise Resource Planning systems (ERPs)
  integrate all data and processes of an
  organization into a unified system
• A typical ERP system will use multiple components
  of computer software and hardware to achieve the
  integration
• A key ingredient of most ERP systems is the use
  of a unified database to store data for the
  various system modules
• By selecting specific components, a company can
  customize the ERP system to meet their needs

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What is SAP?

• SAP is the worlds largest ERP software company.
• SAP stands for Systems, Applications and Products
  for Data Processing.
• SAP has been implemented in more than 36,000
  companies with more than 12 million users.
• SAP is the worlds third-largest independent
  software supplier.
• SAP provides companies with the ability to have a
  common corporate database for a comprehensive
  range of applications.
• One database instead of databases for each
  department - that dont talk to each other!

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Who is on the A Team?

• There are four groups who are participating on
  the A Team
• Fulton County Schools
• Business Process Owners (BPOs)
• Subject Matter Experts (SMEs)
• Carefully selected people from FCS who have
  in-depth knowledge of the areas we want to
  improve
• CIBER Consultants
• CIBER is a global IT company with experience
  implementing SAP in the public sector
• EPI-USE
• EPI-USE is a global company with the US
  headquarters based in Atlanta that specializes in
  SAP HR and Payroll Implementations
• CP Assure
• A consulting firm that specializes in third-party
  oversight and assurance of large government
  capital projects

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Whats Been Done So Far?

• Teams of Subject Matter Experts (SMEs) were
  created from each of the areas to determine how
  to improve FCS using SAP
• Identified gaps and possibilities in the
  organization as well as within SAP
• Clarified possible solutions and business
  processes within SAP
• Developed extensive Blueprints of
• How FCS currently runs
• How FCS wants to run in the future
• How we can create our future design
• Extensive configuration and testing of the system

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Business Process Procedures (BPPs)

• The teams have also created a BPP for every SAP
  transaction
• BPPs are step-by-step instructions on how to
  perform transactions in SAP
• Information included in the BPPs
• Menu Path
• Transaction code
• Mandatory fields
• Prerequisites
• Helpful Hints
• Step-by-step instructions

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Phased Implementation

• The A Project is being implemented in two main
  phases
• Phase 1 will go live October 1, 2007 and
  includes
• Financials
• HCM (Human Capital Management) Org Management
• Logistics/Operations
• HCM January 1, 2008 HCM
• Time and Labor will be productive two weeks
  prior December 21, 2007.
• Phase 2 will go live in May 2008 and includes
• Employee Self Service/Manager Self Service
• Additional Plant Maintenance functionality

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Phase 1 Scope

• Financials
• General Ledger/Chart of Accounts
• Accounts Payable/Receivable
• Fixed Assets
• Project Systems Accounting
• Grants Accounting
• Funds Accounting
• Cash Management
• Financial Reporting
• Budgeting
• Enterprise Controlling

• Human Capital Management
• Personnel Management / Org Management
• Time Management (1/1/08)
• Position Budget Control (1/1/08)
• Personnel Administration (1/1/08)
• Benefits Administration (1/1/08)
• Payroll (1/1/08)

• Pension Management
• Pension Administration

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Phase 1 Scope (continued)

• Logistics (Operations)
• Purchasing
• Purchase Requisitions
• Purchase Orders
• Vendors
• Material Masters
• Purchasing Master Data
• Inventory Management / Control
• Project Systems
• Plant Maintenance
• Business Intelligence / Business Warehouse

• Technical
• Master Data Cleanup and Conversion
• Interfaces to Internal / External Systems
• Custom Reporting
• External (pre-formatted) Forms

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Phase 2 Scope

• Production Support of Phase I
• Financials
• Logistics
• Human Capital Management
• Technical Environment
• PensionGold
• Financials
• Integration of SRM (Supplier Relationship
  Management)

• Human Capital Management
• Employee Self Service
• Management Self Service
• Personal Development / Org Management
• e-Recruitment
• Pension
• Complete

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Phase 2 Scope (continued)

• Logistics (Operations)
• Plant Maintenance (Phase II)
• Supplier Relationship Management
• Enterprise Portal/Business Warehouse
• Support for ESS/MSS
• New Requirements

• Technical
• Master Data Cleanup and Conversion
• Interfaces to internal / External systems
• Custom Reporting
• External (pre-formatted) Forms
• SAP Hardware, Software, Operating System and
  Database

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PensionGold

• Comprehensive pension administration solution
  drawing on two decades of working with defined
  benefit retirement systems
• Comprehensive active member tracking
• Powerful benefit engine
• Full-featured benefit payroll system
• Allows flexibility to affect change only where
  needed
• Highly configurable, minimizing the need for code
  changes to accommodate changes in business
• Designed to easily accommodate future demands for
  new services and the new ways to deliver solutions

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Example of How SAP Will Work
Maintenance Supervisor can see there is no stock
on-hand and order more light bulbsLOG Purchasing
LOG Inventory Management
SAP determines the location of the light bulbPM
Master Data
Maintenance Supervisor assigns the tech PM Order
Processing
Maintenance Supervisor assigns the tech PM Order
Processing
A light bulb has blown so a user has created a
notification to have it changed (IW21)
Maintenance Supervisor can run a report on how
many times the light bulb has blown in the last
yearPM Notifications
Tech inputs his time on changing the light bulb
HR Time Management
SAP looks at the Cost Center to charge the cost
Finance
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Another Example of How SAP Works Together
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Master Data in SAP

• Master data is defined by SAP as records that
  remain in the database over an extended period of
  time and are shared across applications. By
  sharing records, the system processes information
  more efficiently and accurately.
• Examples include
• Personnel Record Created only one time and all
  changes/updates are made to the single record
• Equipment When a new piece of equipment is
  purchased, all information (such as a bill of
  material, task list, or maintenance history) is
  tied to the equipment record.
• Enter once and read many times!

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Master Data in SAP

• A central data object used to model materials,
  production resources and tools
• Master Data has a hierarchical structure with
  three organizational levels
• Client Data valid for all of FCS
• Plant A single code to represent all of FCS
• Storage Location Stores specific data for an
  FCS location (Administrative Center, Abbotts Hill
  ES, Maintenance South, etc)
• Makes it easier to organize information on
  materials
• Minimizes data redundancy

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Reporting in SAP

• A report can be generated for any data entered
  into SAP

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Lets take a look at the Logistics implementation
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Logistics Overview

• We will be implementing four areas or modules
  in SAP including

Purchasing Plant Maintenance
Project Systems Inventory Management
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Purchasing

• SAP requisitions will be utilized by authorized
  users to purchase the following items for
  consumption (use) at FCS
• General Supplies
• Computer Products and Services
• Foodstuffs (School Nutrition)
• Maintenance Parts (Facilities Services)
• Text Books and Instructional Material (Core
  Curriculum)
• Services (facility, food processing,
  professional, construction, and other general
  services, as needed)

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Purchasing Process Flow
Create/Maintain Requisitions
Material Vendor Master Data Requirements
Approve Requisitions
Create/Maintain Purchase Orders
Approve Purchase Orders
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Purchase Requisitions

• A purchase requisition is a request or
  instruction to the purchasing department to
  procure a certain quantity of a material, or a
  service, on or by a certain date
• Requisitions may be created by an individual who
  wishes to procure an item or service and are
  subjected to an approval procedure
• The requisition approval is given, based on
  dollar limits and authority. Approval of the
  requisition at the appropriate level will allow
  further processing of the requisition

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Vendor Selection and Contracts

• Purchasing has established contracts with
  selected vendors for discounts and preferred
  pricing.

Contract
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Goods Receipt

• Goods receipts update the physical inventory and
  accounting information for the material received.

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Invoice Verification

• SAP verifies that the price on the invoice
  matches the price on the purchase order, and the
  quantity invoiced matches the quantity received
  on the goods receipt. If the quantity or price
  differs, SAP will issue a warning message to FCS
  indicating the variance.

• Content
• Price
• Quantity

Vendor Invoice
Purchase Order
Goods Receipt
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Process Payment

• Once the invoice has been verified, payment is
  made to the vendor.

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Inventory Management

• Inventory Management (IM) is the MM sub-module
  that allows for recording the receipt of goods
  into an inventory stock, the transfer of goods
  and materials from location to location, and the
  issuance of goods out of the system to various
  consumption or scrap categories.
• As a component of Materials Management, IM is
  directly linked with Purchasing, and Invoice
  Verification.
• When a material is ordered from a vendor,
  Inventory Management allows the posting of the
  delivery as a goods receipt with reference to the
  purchase order.
• The other MM sub-module, Invoice Verification
  (IV) processes the vendors invoice upon its
  arrival. In IV, the quantities and values from
  the purchase order and the goods receipt
  document are checked to ensure that they match
  those in the invoice.

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Inventory Management Scope for Phase 1
External ProcurementPurchasing
Invoice Receipt
Goods Receipt
Inventory Management
Goods Issue
Transfer Posting
Invoice Verification
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Plant Maintenance

• The Plant Maintenance (PM) application will be
  used to capture maintenance work order history
  for all of the FCS and administrative buildings.
  PM will be utilized for maintenance request
  processing, preventive maintenance, and
  predictive maintenance, the materials and
  equipment refurbishment processing, and outside
  service work and contracts.
• In Phase 2, the application will also be used for
  leased equipment (portables), facilities rentals,
  easement requests, facilities scheduling,
  buildings and grounds alterations requests,
  facilities inspections by Environmental
  technicians, and utilities tracking.

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Notification Requests

• All buildings, down to the floor level, have been
  coded in SAP
• These are called Functional Locations
• Select SAP users will be able to create a
  Maintenance Notification requesting work be done
• The notification will include
• Where is the maintenance needed?
• What needs to be done?
• Who is requesting the maintenance?

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PS How will Project Systems be used at FCS?

• FCS will use Project Systems (PS) to capture and
  report the following data for capital projects
  (such as new school construction, and other
  infrastructure improvements)
• Encumbrances (from open procurement objects)
• Actual costs (from completed procurement objects)
• Budget (budgets as defined in SAP Funds
  Management)
• Electronic storage of hard copy documents
  uploaded to Project Structure in SAP-PS
• FCS will use Project Systems to settle (transfer)
  Actual costs to Assets Under Construction (AUC)
• FCS will use Project Systems to settle (transfer)
  Actual costs to Fixed Assets at the end of a
  project life

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Project Systems Life Cycle
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PS High-Level Business Processes

• Standard Project Maintenance
• Creating New Capital (Operative Projects)
• Creating funded programs and posting budget to
  projects
• Creating open encumbrance procurement objects
  linked to the project
• Creation of goods receipts and invoice receipts
  that create actual expenses
• Executing month-end and year-end settlement and
  project close settlement

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Questions and Answers
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Lets take a look at the Finance implementation
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Finance Overview

• We will be implementing eight finance-related
  areas or modules in SAP

• Assets Management
• Controlling
• Funds Management
• Grants Management

• General Ledger
• Accounts Payable
• Accounts Receivable
• Banking and Treasury

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General Ledger

• The central task of General Ledger accounting is
  to provide a place to store accounting data, and
  a source to generate a comprehensive set of
  external and internal financial reports.
• Recording all business transactions for FCS in a
  fully-integrated SAP system with all of the other
  operational areas of FCS ensures that the
  accounting data is always complete and accurate.
• All business-related processes that include
  financial data are recorded in the General
  Ledger, directly from the source component.
  (Example a receipt in reference to a Purchase
  Order)

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Accounts Payable

• The Accounts Payable application component
  records and administers accounting data for all
  vendors.
• It is also an integral part of the purchasing
  system, since deliveries and invoices are
  managed in the SAP-AP (AP) module.
• The AP module is one integrated component in the
  FI/CO area and is highly linked to Logistics.

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Accounts Payable Payments

• The specific types of payments will include
• General vendor payments
• Refunds vendor payments
• Payroll deduction (SAP HR 3rd party)
• Travel advances
• Expense payments to employees

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Accounts Receivable

• The Accounts Receivable application component
  records and administers the accounting data of
  all customers.
• All postings in accounts receivable are also
  recorded directly in the General Ledger.
  Different G/L accounts are updated, depending on
  the transaction involved. (Example receivables)
• Examples of accounts receivable include
• Money is due from the sponsor for the grant, and
  FCS wants to account for this when it is due.
  (Example set up a debtor and post to the grant)
• The customer banking information has changed
• Other revenue

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Banking and Treasury

• FCS will establish a bank directory and update
  the directory on a quarterly basis. The data will
  consist of the ABA number, bank name, and bank
  address. Controlled Pay files and manual check
  information will be sent to the bank after each
  check run.
• The bank directory is a database of all banks and
  other financial institutions, based on ABA
  routing numbers. This directory is needed to
  support all modules of SAP that use bank
  information.
• This central information will make the creation
  of other Master Data, such as house banks, vendor
  master records, and employee records more
  efficient and accurate.

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Banking and Treasury continued

• FCS will have three principle accounts
• Main
• Accounts Payable
• Payroll
• These will be set up to use electronic bank
  statements which will help with daily automatic
  reconciliation of the accounts. The Accounts
  Payable and Payroll will also be zero balance
  accounts, meaning that the balance in them at the
  end of the day will be transferred to the main
  account.

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Asset Management

• Asset Accounting is a sub-module in the Financial
  Accounting (FI) system.
• In the SAP system, assets are linked to
  equipment, and in turn, to a location.
• The asset acquisition process is streamlined to
  utilize purchase requisitions and purchase orders
  from the Material Management/Purchasing modules.
  This enables budget check, accounts automation,
  and integration between purchasing and fixed
  assets sub-ledger from the start of the
  purchasing cycle.
• Depreciation is performed monthly in the
  asset accounting module.

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Asset Exceptions

• All purchases are streamlined to use a
  requisition or purchase order from the
  MM/Purchasing component, with exceptions such
  as
• Donated assets
• Reinstatement of assets found
• Setting up forfeited assets
• Purchase of land
• These will be entered using an asset transaction
  which offsets the entries against a GL account.

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Controlling

• Controlling is an independent component in the
  FI/CO SAP area.
• Financial Accounting is responsible for the
  external accounting, and Controlling is
  responsible for the internal accounting in an
  organization.
• Internal Cost Management provides FCS with
  information for management decision-making. It.
  This involves recording both the consumption
  facilitates coordination, monitoring and
  optimization of all processes in an organization
  of costs and the services provided by an
  organization.

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Funds Management

• Funds Management is the repository of budgetary
  accounting. This accounting method focuses on
  controlling, tracking and reporting on the
  available, expendable, financial resources of an
  organization.
• Integrating the Materials Management and Funds
  Management components means that FCS can, for
  example, monitor and control procurement
  activities from the purchase requisition to the
  invoice.
• SAP Public Sector Funds Management solution
  guides users through the Creation and Controlling
  of budgets, and uses active availability control
  to monitor the appropriation of funds.

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Grants Management

• SAP Grants Management will help FCS manage
  sponsored programs, such as grants, from
  pre-award administration to post-award management
  and reporting.
• FCS will maintain master data for the sponsors of
  an organization, which, in turn, relates its
  financial structure to the financial and
  administrative requirements of the sponsor.
• Grants Management works in an integrated fashion
  with Logistics, Financials, and Human Resources.

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Questions and Answers
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Lets take a look at the Human Capital Management
implementation
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Human Capital Management (HCM)at Fulton County
Schools
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HCM The Employee Life Cycle
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HCM Implementation Approach

• PHASE 2
• Employee Self Service
• Manager Self Service
• e-Recruitment
• Personnel Development

• PHASE 1 (1/1/08)
• Personnel Administration
• Benefits
• Time Management
• Payroll
• Position Budgeting and Control

• PHASE 1 (10/1/07)
• Organizational Management

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HCM Structures
Organizational Structure Enterprise Structure Personnel Structure
This structure represents the organizational objects of FCS. Each object is defined with attributes that are inherited by the person attached to the position. This structure represent administrative groupings used to assign employees to specific pay scales, work calendars, benefit plans The structure is a description of the type of employment i.e. Full Time or Part Time, Retiree or Regular
Organizational Units i.e. Parklane Elementary Company Code As defined in Finance. Each employee is assigned to the company code FCS. Employee Group Define the type of employee i.e. Regular, Temporary, Board Member
Positions Positions represent the approved budgeted positions for each school year i.e. MAINT MECH 1-NONE (000) Personnel Area / Personnel sub-area Logical breakdown of groups by pay scale structures i.e. Support Services / 187A (Bus Drivers) Employee Sub-group Further define each type of employee i.e. Regular-Salaried, Temporary-Hourly
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Organizational Management

• Organizational Structure is created based on the
  annual budget
• The structure includes objects such as
• Organizational Units
• Positions
• Cost Centers
• Work Centers

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HCM The Position

• The position is the single most important object
  in HCM
• Each position is approved through the annual
  budget process
• The following attributes / relationships are
  assigned to positions
• Cost Center / Funding sources
• Organizational unit
• Job (job category)
• Qualification
• Person

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HCM The Position Example

• Position
• Begin 1/1/2006
• End 12/31/9999

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Infotypes

• An Infotype is a term that only exists in SAP HR
• It consists of a screen of related fields within
  the employee master record
• These Infotypes capture information about the
  employee including
• Employee Address
• Personal Data i.e. Name, SSN, Date of birth
• Calendar assigned to employee
• Payroll Master Data i.e. Tax data
• Benefits Information

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Personnel Actions

• Personnel actions are another form of Infotype
  maintenance
• Each personnel action is made up of a
  predetermined sequence of Infotype screens
  grouped into one action
• These actions are used in the human resources
  business processes such as
• hiring an employee
• terminating an employee
• changing an employees pay

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Benefits

• SAP will allow HR to administer the employees
  eligibility into benefits plans, process
  enrollment for new hire, open enrollment and life
  events
• Newly hired employees, who are benefits eligible,
  will automatically be defaulted into certain
  benefits plans
• Detailed employee enrollment confirmation will be
  generated from the system
• During Phase 2, employees will be able to enroll
  and manage their plans via employee self service
  (ESS). 

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Time Management

• The SAP Cross Application Timesheet (CATS) will
  be the central repository for all time data.
• Time recording for Phase 1 will be done as
  follows
• Transportation Paper timesheets will be keyed
  into the existing application and an interface
  will load the data into CATS
• School Based personnel Absences will be entered
  into CASE and an interface will load the time
  data into CATS
• Substitute Teachers Time worked by substitutes
  will be recorded in CASE and interfaced into CATS
• Non-school based personnel Time will be reported
  on timesheets and entered into CATS by
  timekeepers

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Payroll

• The Payroll module utilizes data from Personnel
  Administration, Benefits and Time Management to
  calculate gross and net pay for employees
• The Tax Reporter component generates all required
  state and federal tax forms, such as unemployment
  insurance reports and W-2s
• The integration between Payroll and Accounting
  groups posting-relevant information from the
  payroll results, creates summarized documents,
  and performs the relevant postings in the
  Accounting components
• The Third Party Remittance controls when and how
  payments are made from payroll to third parties

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Position Budgeting and Control

• The Position Budgeting and Control (PBC)
  component is used to tightly integrate HR data
  with the Funds Management component
• The PBC component will be used to automatically
  create and adjust commitments and pre-commitments
  in Funds Management for vacant positions and
  employees

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Questions and Answers
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Lets take a look at End User Training Go Live
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SAP Training

• A robust training plan has been developed to
  ensure students will understand
• How to perform business transactions
• When to perform business transactions
• Why to perform business transactions
• Training will focus on
• FCS policies
• Business processes
• SAP transactions
• Training will utilize a process-based approach
  (based on security role)

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End User Training

• Phase 1 trainees will have attended two courses
  as prerequisites before attending any functional
  training
• SAP Basic Navigation Course
• SAP Overview
• An integrated approach will be implemented for
  end-users which includes
• The goals of the A Project
• FCS Policies and Procedures
• BPPs
• Transaction-based guides
• Role-specific courses

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Course Structure

• Instructor-led classroom training
• Power Points with BPPs
• Tell, Show, Do methodology
• Systems refreshed nightly
• Assessment included
• Independent study labs
• Room monitors only
• No assessment

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Instructor-Led Training Classes

• Mandatory and Required before security role is
  issued
• Will include
• Instructor PowerPoints
• FCS Policies and Procedures
• BPPs
• Online, but not printed
• Transaction demos and exercises
• Focuses on How, When and Why
• Taught based on Demo, and Hands On
• Assessment to determine competency

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Course Format

• Tell Me
• Instructor will discuss the process,
  responsibilities, and describe the transactions
  -- EARS ON
• Show Me (demo)
• Instructor will demonstrate transactions -- HANDS
  OFF!!
• Let Me (hands on exercise)
• Student will complete transactions -- HANDS ON
• Support Me
• Trainers will be available to answer questions
  while students complete the exercises

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Practice Labs

• Classroom training is a prerequisite
• Based on a Day in the Life of the end user role
• Includes simulations of processes and
  transactions
• BPPs and Quick Reference Cards will be on-line
  for easy access
• Good as a refresher before Go Live

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One-On-One Training

• Functional teams will provide instruction to
  small audiences for end users, by functional role
  
• Course material will be created for future
  reference
• Includes BPPs and PowerPoint presentations
• Includes Testing and Assessment

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On-Going Support

• Once we Go Live with SAP there will be on-going
  support to help you including
• All BPPs will be located online for easy
  reference
• SAP has SAP Help for general information on SAP
  transactions
• Help Desk
• Go Live support plan

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Key Terms Review

• BPP Business Process Procedure
• A step-by-step process of how to do a transaction
  in SAP
• Master Data
• Records that remain in the database over an
  extended period of time and are shared across
  applications
• ERP - Enterprise Resource Planning
• ERP systems integrate all data and processes of
  an organization into a unified system

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Questions and Answers