Post on 17-Aug-2015
transcript
Chargebacks: Reconciling Primavera Enterprise Actuals to the General LedgerPresenters: Matthew Friedman, Director of Integration Services - EcoSys ManagementJeffrey Finkiel, Senior Financial Analyst - Guardian Life Insurance
· Primavera Service Provider and Technology Partner
Have supported over 130 enterprise project management Implementations
EcoSys Financial Manager software: bridges project management with financial management
Headquarters in New York; Branch offices in London, Atlanta, San Francisco
EcoSys Management
· Headquarters in New York City · $41 Billion including subsidiaries· 5000 employees, 700 in IT, incl. Consultants· Provider of life, health, disability to individuals
and businesses · Has rigorously reduced IT spending through
strong financial control· Fifth largest mutual life insurance company in
US· 85 agencies around the country
Guardian Life Insurance
Providing Project Accountability via Chargebacks
Primavera Timesheets & Expenses
• Justification of Costs: Charging back to Department Profit Centers
• How to determine in your GL how to calculate the actual cost of doing business for a given month, by project
• Reconciliation: From Primavera Timesheets & Expenses to PeopleSoft General Ledger
PeopleSoft General Ledger
RECONCILIATION
Guardian Chargeback Rates & Costs
Rates are area specific. E.g. separate rates for Group, Life, Equity, etc.
Outside Svcs. - Emp, Expenses
Based upon the direct expense that needs to be recovered through project work
Method
Matt: See Excel SS (Sheet 2)
Current Guardian Financial Processes
Chargeback costs segregated
Business units split project funding by percentage
Results fed monthly through general ledger
Consolidated bill provided to business units by each IT division
Budgeting process incorporates commitments and targets on spending types (i.e. New development vs. Production support)
Tying Project Mgt to Financial Results - Overview - M
3. Resources Enter/Submit Timesheets> Log Tiemsheet Hours to Projects> Submit Timesheets or> Revise and Resubmit Timesheets
4. Timesheet Approval by COB Mondays> RMs Review Timesheet> RMs Reject/Approve Timesheets or> RMs Approve Resubmitted Timesheets
$$
4a. Actuals Applied to Projects by COB Tuesdays > PMs Apply Timesheet Actuals> PMs Update Project Plans, if needed
3a. PMs Log Expense Actuals> Start Activities> Log Actual Costs
6. Project Plan Updates> PMs Update/Clarify TeamPlay Information per Jeff Fikiel's Email Requests
$
8. General Ledger> CB App. Dev. Prog. Chargebacks Processed to ABC MainFrame Database> Reconciled Consultant Invoiced Costs Processed to CDS (Cash Disbursement System)
Pay to $
4b. VIC Feed> Consultant Timesheets Fed to Vendor Invoice Control Interface> Consultant Timesheets Reconciled to Received Invoices
8a. CB Reports> Monthly CB Project Actuals> Consolidate CB Report> YTD CB Aanalysis Report> Spend Type Analysis
7. Financial Manager – Final Run> Jeff Finkiel Generates Final FM GL Feed File for FM&C (PeopleSoft) 5. Financial Manager – Test Run
> Jeff Finkiel Begins 2 Iterations of FM GL Feed File Test Runs.> Jeff Finkiel contacts PMs Required to Resolve Questionable Entries.
Evolution of a process - M
Better Detail – Can catch many smaller issues.
Police the Projects – beyond the scope of what the CPMO does.
Ease of use for Non-PMs i.e. Finance People
Reports are scalable and easier to manipulate.
Improved Efficiencies from start to finish.
-No need to create individual SQL queries and export to Excel. Than combine these spreadsheets to come up with the required data that needs to be validated.
Past Method – 1st EcoSys Method - M
Resources entertimesheets
Project Managersenter expenses
Resourcetimesheetsapproved
Timesheets appliedto project plan byproject manager
First Business Day of Month: Financial Reporting runs
1) Script to Check Data2) Run script to execute stored procedure that generates G/L Feed Records and creates G/L feed file
G/L Feed file imported into ABC G/L system by FM&Cwhich contains chargeouts and chargebacks
Graph of 4 Systems – Accuracy & Labor Estimates
Business Days to Complete
14 days
5 days
10 days
2 days
0 2 4 6 8 10 12 14 16
Mainframe System
Remind by Changepoint
EcoSys PM
EcoSys FM
65% Accuracy
85% Accuracy
95% Accuracy
97-99% Accuracy
Timesheet to General Ledger - Overview
Resources Records Project Work by COB Fridays> Log Tiemsheet Hours to Projects
> Submit Timesheets or> Revise and Resubmit Timesheets
Timesheet Approval by COB Mondays> RMs Review Timesheet
> RMs Reject/Approve Timesheets or> RMs Approve Resubmitted Timesheets
$$
Actuals Applied to Projects by COB Tuesdays
> PMs Apply Timesheet Actuals> PMs Update Project Plans, if needed
PMs Log Expense Actuals> Start Activities
> Log Actual Costs
IT Finance Administrator Processes a Test GL Feed> GL Feed Test Runs.
> Contact PMs Required to Resolve Questionable Entries.
Project Plan Updates> PMs Update/Clarify Primavera
Information as per administrators Requests
IT Finance Admintrator Process GL Feed> Administrator Processes GL Feed File
from EcoSys FM
$
General Ledger> EcoSys FM generated file is entered into PeoplSoft GL
CB Reports from FM> Monthly CB Project Actuals
> CB and Non CB Project Costs> YTD CB Aanalysis Report
> Spend Type Analysis> Reconciled Consultant Invoiced Costs
7. Financial Manager – Final Run> Jeff Finkiel Generates Final FM GL Feed File for FM&C (PeopleSoft)
5. Financial Manager – Test Run> Jeff Finkiel Begins 2 Iterations of FM GL Feed File Test Runs.> Jeff Finkiel contacts PMs Required to Resolve Questionable Entries.
Profit Center Budget Allocations to IT Projects
CB System Timeline – Evolution Slide – SS – SS #1
Mainframe - ~1960’s – Dec. 1999
Changepoint Remind – Jan. 2000 – Dec. 2001
Guardian Purchases Primavera TeamPlay
EcoSys PM (SQL based process) - Jan. 2001 – Dec. 2006
EcoSys Financial Manager – Jan 2007 - Future
Mainframe Method
People entered timesheets into a crude spreadsheet on the MF.
All calculations done through the MF
MF sent file directly to ABC financial system (ABC was the insurance industry standard ledger system)
You were able to enter time to any project in your area.
Only check was a once daily generated report
Adjustments were completely manual
Needed to rely on the MF programmer to make adjustments
Standard reports