General Fund Enterprise Business System GFEBS DFAS Rome Year End Customer Symposium

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General Fund Enterprise Business System (GFEBS)
DFAS Rome Year End Customer Symposium

• August 9, 2006

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GFEBS Project Office
GFEBS Project Officer 703.797.8980
GFEBS Director 703.797.8709
A Collaborative Team of PEO-EIS and ASA (FMC).
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What Is ERP?

• Enterprise Resource Planning (ERP) is a
  commercial-off-the-shelf (COTS) business solution
  leveraging industry best practices to automate,
  integrate, and standardize processes and data
  across the enterprise
• GFEBS is an Army-wide ERP solution
• integrating financial systems and functions
• providing increased visibility over financial
  information
• supporting portfolio management of financial
  systems
• leveraging commercial off-the-shelf business
  enterprise software
• supplying standard, real-time financial data and
  information

Improved Information for Financial Decision
Making.
? Accurate data is ERP backbone ? Will not
correct all problems being experienced ?
Requires adapting to process change and learning
new system
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Case for GFEBS
Integration Nightmare

• Deficiencies
• Lack of visibility of total program cost at all
  levels
• Limited visibility of real property (fixed asset
  valuation)
• No linkage between budget and performance
  information
• High rework rate for financial processes drives
  costs

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GFEBS Objectives

• Enable Army to receive an unqualified audit
  opinion on its annual financial statements
• Improve Army accountability and enable full cost
  management
• Achieve efficiencies and operate effectively
• Exchange information with customers and
  stakeholders
• Provide accurate, reliable, and timely financial
  information to Army decision makers to better
  train, equip, and sustain its force

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GFEBS Goodness

• Provide transaction based updating of the USSGL
• Provide reengineered business processes
• Provide an audit trail tracing all transactions
  to their source
• Provide a standard financial information
  structure
• Provide one-time data entry and sharing of
  information
• Provide real-time funds control
• Provide workflow management
• Provide direct charge capability with visibility
  of funding
• Provide identity of trading partners to enable
  intragovernmental eliminations
• Provide cost accounting capability
• Provide integrated vendor pay w/ automatic
  matching validation capability
• Provide capability to record accounts payable
  GR/IR
• Provide visibility and valuation of assets and
  inventory
• Provide single set of master data
• Provide real-time interface capability via XML
• Provide trial balance w/ attributes to support
  departmental reporting
• Provide for replacement of legacy systems

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Project Schedule
Release 1.1 Technology Demonstration (Real
Property) at IMA Garrison.
FY08
FY10
FY09
FY07
FY06
FY05
3
4
2
3
4
2
1
3
4
2
1
3
4
2
1
3
4
2
1
3
4
2
1
1
Release 1.2 Full capability at one IMA Garrison.
MS C
MS B
IPR
IPR
IPR
MS A
FDDR
Today
SI Award
SI RFQ
IBR
CDR
TRR
Release 1.3 Full capability at one installation
including Guard Reserves. Fielding at all
STANFINS locations.
TECH DEMO
Release 1.1
1
2
3
4
TEST
OTRR
OTRR
PDR
CDR
Rel 1.2, 1.3, 1.4
SYSTEM DEMO
ANALYSIS / DESIGN
PLAN
Rel 1.2
Limited
Release 1.4 Replace SOMARDS at one
installation. Fielding at all SOMARDS locations
Systems Integration Delivery Phases
BUILD
TEST
Deployment
IOTE
1. Planning 2. Analysis 3. Design 4. Build 5.
Test 6. Deploy
Rel 1.3
TEST
DEPLOY
BUILD
30-60 Days
Government Activity
LUT
Rel. 1.4
Releases Testing
TEST
DEPLOY
BUILD
IBR - Integrated Baseline Review MS A
Milestone A IOC Initial Operational
Capability RFQ Request for Quote PDR
Preliminary Design review MS B Milestone
B FOC Full Operational Capability SI
Systems Integration CDR Critical Design Review
MS C Milestone C IOTE Initial Operational
Test Evaluation LUT Limited User Test TRR
Test Readiness Review IPR In Progress Review
FDDR Full-Rate Deployment Decision Review
6/5/06
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GFEBS Change Management

• Builds commitment of Army users at each step
• Focuses on new business processes and roles
• Promotes user acceptance through early, active
  and ongoing communications and leadership
  involvement
• Reinforces ongoing commitment through on-site
  support after Go-Live

People are key to a successful ERP
Focus on employees in the organization to help
them make the transition from the as-is state to
the to-be state Direct efforts on sponsorship,
communication, process, organizational alignment,
and training
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SAP Components
The ECC System contains a large number of
modules, which combine to execute the business
management tasks of an organization. The
following figure shows SAP components and modules.
Comprehensive functionality
Integrated solutions
Open systems
Designed for all types of business
Client/server architecture
Enterprise data model
Multinational
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Release 1.1 - Scope

• Release 1.1 scope and focus was restricted to
  real property inventory and associated financial
  functionality
• Funds distribution to the IMA as it was related
  to and required for real property inventory
  functions
• Procurement actions related to real property
  inventory
• Capture partial costs associated to real
  property inventory e.g. Labor, Materials, and
  Contracts
• Invoice receipt and payment
• Reimbursable activity related to real property
  inventory
• General ledger postings for the above
  transactions
• Month-end/fiscal year-end closing processes
  related to real property inventory
• Full cost for IMA Fort Jackson will be captured
  during Release 1.2

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Real Property (Minor Construction) Today
6. Obligations recorded in STANFINS
5. Work order submitted in IFS
7. Invoices received in CAPS
STANFINS
4. Funds committed in IMA-Online
IMA-Online
CAPS
8. Disbursements performed in SRD-1
PBAS
SRD-1
3. Budget distributed in PBAS to IMA-Online
PROBE
9. Property recorded in IFS
DDRS
IFS
2. Budget approved in PROBE
10. Financials reported in DDRS
1. Budget Planned in IFS
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Real Property (Minor Construction) Tomorrow
6. Obligations recorded in GFEBS
5. Work order submitted in GFEBS
7. Invoices received in GFEBS
4. Funds committed in GFEBS
8. Disbursements performed in GFEBS
3. Budget distributed in GFEBS
GFEBS
9. Property recorded in GFEBS
2. Budget approved in GFEBS (R1.2)
10. Financials reported in GFEBS
1. Budget Planned in GFEBS (R1.2)
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Release 1.1 Scope Highlights

• Accountability over all Army assets and
  liabilities
• Real property inventory
• Compliance with OSD RPI Requirements (RPIR) 180
  Elements
• Conversion of existing real property inventory
• Assets
• Including construction-in-progress
• Depreciation
• Accountability over Army net position and
  operations
• USSGL
• Cost management
• Standard Financial Information Structure (SFIS)
• Formal Commitment
• Conversions
• Real Time
• Auditable
• Month-end and year-end processing

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Release 1.1 Scope Highlights

• Internal Controls
• Role segregation of duties
• Workflow approval certification
• Accountability of fund balance with U.S. Treasury
• Prevalidation
• Disbursing (Vendor Pay only)
• Funds Management
• Allocation from HQDA to Level V organization
• Positive funds control
• Integration of Services
• Master data management
• Vendor pay
• Real property to financials
• Direct charge
• Drill down capability
• Link from commitment to disbursement
• Single Sign-On, Web Based Solution
• Interim Authority To Operate (IATO) Granted
• Fully accredited data center

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Release 1.1 Fund Management Objects

• Fund identifies the appropriation, BAG, SAG,
  direct/reimb, FY
• OM11320D06 FY 06 OMA Real Property Maintenance
• OM OMA
• 1 BAG
• 132 SAG
• 0 Filler
• D Direct
• 06 FY
• Functional Area identifies MDEP, PE,
  contingency code if applicable
• QRPA760000000000 Real Property Maintenance
  Restoration Modernization
• Commitment Item identifies specific object
  class categories
• Labor, non-labor, travel, or all objects
• Funded Program reserves funds being used for
  work orders, sales orders, etc.
• Fund Center identifies organization receiving a
  distribution of funds
• A0000000000 HQDA (Level 1)
• AIM00000000 HQ IMA (Level 2)
• AIMJA000000 IMA, Fort Jackson (Level 3)
• AIMJAP00000 DPW (Level 4)
• AIMJAP20000 Operations Maintenance Division
  (Level 5)

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Organizational Relationships
GFEBS Funding Organizational Hierarchy
GFEBS Costing Organizational Hierarchy
Cost Ctr
HQDA
Fund Ctr
AFO00000000
Army Cmd
FC Lvl 2
UIC
CC Lvl 1
AFODI000000
FODI000000
CC Lvl 2
Division
FC Lvl 3
UIC
AFODIB00000
FODIB00000
Brigade
CC Lvl 3
FC Lvl 4
UIC
AFODIBN0000
FODIBN0000
CC Lvl 4
UIC
FC Lvl 5
AFODIBNC000
FODIBNC000
Company
FC Lvl 6
UIC
CC Lvl 5
AFODIBNCP00
FODIBNCP00
UIC
Platoon
FC Lvl 7
CC Lvl 6
AFODIBNCPS0
FODIBNCPS0
Squad
FC Lvl 8
UIC
CC Lvl 7
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Organizational Relationships
Funding Hierarchy
Costing Hierarchy
Cost Ctr
Fund Ctr
CC Lvl 1
FC Lvl 2
FC Lvl 3
CC Lvl 2
FC Lvl 4
CC Lvl 3
FC Lvl 5
CC Lvl 4
FC Lvl 6
CC Lvl 5
FC Lvl 7
CC Lvl 6
FC Lvl 8
CC Lvl 7
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Direct Charge Scenario Process Flow
IMA, Army Family Housing Operations
Army Buyer
Verify Fund Availability/ Negotiates Task
Disbursement
IMA, Dir. of Public Works (OM Funded)
Army Seller
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Direct Charge Benefits

• Posts transactions timely -- real-time data
• Enhances fund visibility to buyer and seller
• Reduces duplicate accounting transactions
  associated with Intra-Army reimbursables
• Enables potential elimination of Intra-Army
  reimbursable processing
• Is less complex -- one single process, one single
  system
• Allows drill down to the work order supporting
  the direct charge transfer and associated general
  ledger effects
• Reduces significantly data reconciliation
  requirements
• Enhances analysis and decision support
  capabilities
• Postures the Army for future intra-governmental
  transactions (IGT) implementation

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Direct Charge Opportunities

• Develop workflow process between the work order
  and funded program
• Create and distribute automatically the funded
  program when orders are received
• Eliminate Army-to-Army reimbursables to extent
  possible

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Cost Collection Example
Cost Center (Controlling module)
Asset (Asset Management Module)
Work Order (Plant Maintenance module)
Work Order 2234
Cost Center ABCD
Asset 1234
3
2
Labor 6,000 Materials
90,000 Shop Stock
2,000 Equipment 2,000
Current value 1,000,000 Work Order
costs 100,000
Payroll 6,200
4
1
Work Order 2234 lt6,000gt
3
1,100,000
100,000
200
Related Work Orders
4
Asset 1234 lt100,000gt
Work Order 2234 100,000
0
Costs of performing the activity are collected on
the Work Order Payroll is posted to the
organization Cost Center Labor hours are
confirmed against a work order offsets payroll
costs in the Organizations Cost Center At month
end, work order costs are posted against the
asset (if costs are to capitalized) or remain in
operating expenses
1
2
3
4

• Key Benefits
• Integrated Asset/Work Order costing
• Drill-down capabilities all work orders and
  associated costs by Asset all work orders by
  cost center (organization)

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Cost Management Report Formulation
Allocation Method (Sq Ft)
Indirect Cost
Internal Order (CLS/SSP)
Associated to pull CLS/SSP
BW Report
Real Estate
(Functional Location)
Direct Cost
Work Order (Maintenance)
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Benefits of BW Reports

• Provides cost management data vs obligation data
  for analysis
• Develops the facility maintenance cost
  (direct/indirect) in Business Warehouse (BW)
  Report
• Creates structured data store for use in cost
  modeling

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Cost Management Opportunities

• Define cost structures/hierarchies for the Army
• - Organizational
• - Weapon systems
• - Operational forces
• - Op Tempo calculations
• - Power projection
• - Contingency operations
• Apply definitive cost allocation rules
• Develop performance measures
• Aggregate cost by facility, sum by site/location
• Determine full cost for use in trade off modeling
  and analysis
• Provide visibility of alternatives and options
  via access to complete financial and cost data
  from lowest to highest levels
• Support leadership by optimizing readiness
  through rapid scenario cost analysis by
  projecting future costs vs resources projected
  going forward
• Reduce the requirements for manual data calls by
  using BW query capability

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Strategies and Guides

• Company Code
• Fund Master Structure
• Funds Management
• Budget Formulation Scope
• Cost Management
• Data Visibility
• Data Migration Conversion
• PPE
• Deployed Requirements
• GFEBS GCSS-A Standardization

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Conclusion

• GFEBS has successfully completed Release 1.1 and
  is now ready to proceed to the Technology
  Development Phase. Upon completion of Release
  1.2 Plan, Analyze, and Design, the project will
  move to System Development and Demonstration.