Mosaic Information Session

A look at the finance and research finance systems launching in

December 2013

Introduction

Agenda

General Ledger, Chart of Accounts Commitment Control and Value-Added Tax

Purchasing, Accounts Payable, andReimbursements to Employees

BREAK Customer Billing and Accounts Receivable  Project Costing Grants (Research Post-Award)

Goals today

Provide clarity about what is changing and answer your questions

Provide you the information you need to speak confidently about Mosaic with your colleagues

Encourage you to begin conversations with your teams

Overall Project Timeline

December Launch Timeline

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Finance & Research Finance (Post) Timeline13-May 13-Jun 13-Jul 13-Aug 13-Sep 13-Oct 13-Nov 13-Dec 14-Jan

6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27Design

Config                Rice        

Build                                      Integration Testing

Cycle 1 (100% H + 75% M)      Cycle 2 (Security + Portal)      Cycle 3 (Conversion + Interfaces)      Operational Testing    

Performance Testing Including Stress Test (3x per test)          Security Vulnerability scan          

User Acceptance TestingCycle 1      Cycle 2    

TrainingPrepare Training Materials                Deliver Training                                

GoLive PreparationTechnical Readiness  Business Readiness  

Production Cutover  

Hyperion Timeline

Planning & Budgeting                                                                             

Reporting                                                                              

Draft - For Discussion Purposes Only

GL/COA/KK/VAT

General LedgerChart of Accounts

Commitment ControlValue Added Tax

GL module of PeopleSoftreplaces FAS and Oracle journal entry

GL-010: Create and Process Journals Journals will be processed via the following methods:

Online (manual) Journals • Journals entered directly into the system• Volume should decrease!

PeopleSoft Excel Journal Entry upload• Replaces current ‘uploads’ now but checks data validity upfront vs.

having to go through data control Journal Generator

• automatic journals from submodules or other suites or interfaces• Raw data sent to Journal generator and processed in GL

Import Journals • External system interface journals • Already a completed journal by the time it gets to GL

On line Journal

Journal Entry Approvals - Workflow Journal approvals similar to today’s system Depending on the data in the journal entry, will go through a

different approval workflow path Project related Journals

Project Mgr. Capital, then Capital Accountant Project Mgr. Trust, then Trust Accountant Project Mgr. Research, then Research Office approval

Journal Approvals (Dept., Program) If Program manager is different from Department manager,

Program Manager approves Other Special Journals

• PDA Journals – approval to Department Manager• Balance Sheet accounts will go to central finance approval• Transfer accounts will go to central finance approval• Student account journals go to Student AR approval

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GL-030: Review Financial Information Different methods to review financial information in

PeopleSoft Delivered reports (like delivered e-reports now) Online within GL Online income statement within KK (like screen 32/44)

• Drill down capability within each of the above! Queries

GL Online Inquiry

KK – summarized income statement

GL: Changes to Current Processes

Use of adjustment periods for month end/year end

closing

Automated management of PDA via use of Open items

Petty Cash process – new process – more in AP – use

of Open Items

COA Design McMaster COA group of Experts and GL team have

defined: characteristics of each Chartfield, its structure, detailed definitions, values

Worked with envelope managers from across the university to convert old COA department account numbers to new PeopleSoft Departments and Programs

Old to New Mapping Reminder

Research/Capital/Trust: 5/7/8-xxxxx

OLD vs NEW COA Terminology

FAS PEOPLESOFTLEDGER FUNDACCOUNT DEPARTMENTor

DEPARTMENT + PROGRAM

or DEPARTMENT + PROJECTSUBCODE ACCOUNTor

PROGRAM (e.g. in our 9000’s series now)

or

PROJECT ACTIVITY (only for Projects)

NEW Chartfield String

Operating/ Ancillary/Specifically FundedFund (2) Account(6) Department(5) Program (5) = 18 e.g. 20 600001 10003 30006

Capital/ Trust/ResearchFund (2) Account (6) Department(5) Project (8) Project Activity (15) = 36 e.g. 85 600001 10858 10889805 Supplies

COA Chartfields Business Units – 5 GL BU’s

e.g. McMaster (MAC01), Divinity(DIV01) Funds - 14

e.g. Operating, Research, Ancillary Account

currently over 2000 subcodes reduced to less than 1000 more standardized structure required field and available for all to use

Account Examples:

110000 – Accounts Receivable

600001 – Materials & Supplies Expense

450000 – Sales Revenue

COA Chartfields cont. Department

Uniquely identified responsibility unit of the University Approx. 500 reduced number due to introduction of the Program chartfield and

more standardized use of accounts One ‘definition’ – no more multiple department codes throughout the

university! Program

New dimension available for recording activities within departments Approx. 20 Generic Programs and 500-600 for Unique Programs E.g. Conference, Grad Support, Solar Car

Project (Capital, Research, Trust) Converted projects will maintain old number with ‘10’ in front of it

Project Activity Defines the processes or actions necessary to complete the Project Other project chartfields include: PC BU, Source Type, Analysis Type

Translation Table for COA

Pulp&Paper Research

KK (Commitment Control)

Limited knowledge of the actual module itself necessary for most

users

Commitment transactions are generated out of other systems (eg.

AP, HR) and most users will just see two commitment amounts on

their online or static reports (pre-encumbrance/encumbrance)

Capital budgeting process will be done through Commitment

Control – all other budgeting done in Hyperion

Hyperion will update the Commitment Ledger in GL

VAT (HST)

Main decision: use generic GST/HST and Provincial values

Many manual calculations and j/e’s done currently for HST – will

be automated in PeopleSoft System will track taxes by Province

Internal vs external sales percentages used to calculate ITC and

rebates upfront

Less manual journal entries should be necessary

Purchasing, Accounts Payable, andReimbursements to Employees

Purchasing Requisition Entry in PeopleSoft

by Requester System validates information; e.g. chartfield, supplier, etc. Automated Approval workflow tied to EOI and Strategic Procurement

thresholds

Vendor Set-up and Management To be performed by Strategic Procurement New Vendor Request form being created

Purchasing Procurement Contracts to be handled by Strategic

Procurement Involve SP at the beginning of the process

Formal Process within PeopleSoft to handle RTV’s (Returns to Vendor) that will be tied back to original PO

Purchasing System will auto source PO from the Requisition and

auto dispatch PO to supplier Threshold to be determined

Three way matching (PO, Receiving, Invoice) performed on all purchases greater than $2,500. Two way matching (Invoice, PO) on purchases less than $2,500

Accounts Payable Voucher Processing – Non PO Invoices (e.g. Cheque

Requisitions) File upload (i.e. flat file) Excel spreadsheet upload (Bookstore, Hospitality Services, Student

Awards and Refunds) Decentralized voucher entry

Voucher Processing – PO Invoices Accounts Payable

Accounts Payable Payments Terms

From net 45 to net 30

Payment Processing PO invoices

• cheque and EFT (Cdn $) = Monday All other payments

• Cheque = Tuesday and Thursday• EFT (Cdn $) = Wednesday and Friday• Drafts/Wires (i.e. foreign currencies) = Monday

Accounts Payable Acquisition Card (Pcard) – BMO MasterCard

Feed from BMO to PeopleSoft Reconciliation within PeopleSoft

Petty Cash replenishment Process will not change significantly Will use “internal bank” as opposed to journal entry

Employee Reimbursement Travel Authorization

To be used for pre approval of exceptions to policy (i.e. business class airfare)• Use not mandatory

Cash Advance No accountable advances; expenses reimbursed as they are

incurred Encourage cash withdrawals using Diners card Exceptions: research study subjects, group travel, athletic team

travel and where access to ATM not possible

Employee Reimbursement Expense Report

Encourage self service Use of corporate credit card (Diners MasterCard) Daily feed from Diners to simplify data entry Payment by EFT to employees bank account on record in

Payroll AP can pay Diners by EFT on behalf of cardholders

Non Employees and Visitors Non PO Voucher

Employee Reimbursement

Approval workflow to be utilized Feed of reporting hierarchy from HR Compliance review at beginning of workflow

Tax (HST) calculations and rebates to be calculated within PeopleSoft Preparer can override if tax calc. incorrect

General End user will be able to query all transactions Document imaging to be utilized Automated workflow and notifications Ability to view where transaction is in approval workflow Ability to inquire entire payment cycle Data validation Overall – greater transparency

Break

Customer Billing and Accounts Receivable

Finance Solution Overview

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Detail Design Approach – Billing / ARUnique approach for AR BI due to remote and diverse business needs Each business area is unique and we met with all of the larger

groups. Three general groups emerged:1) May have entrenched business systems that can not be replaced by

PeopleSoft BI• Inventory Management, POS systems, scheduling or other specialties• E.g. Bookstore, Athletics & Recreation, Media & Print Services (TBD)• Solution becomes improved GL distribution

More granular, more detailed descriptions, approvals2) May have business systems that CAN be replaced

• Nuclear3) No system, or does not produce a bill, and can adopt PeopleSoft BI / AR

• Catering• Any University business area that needs to produce a Bill• Smaller volume operations

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Key Design Decisions Business units are where transactions are stored,  The following

will be setup in AR/BI :  Research Health Sciences Research General Nuclear Reactor Parking Finance – General Health Sciences Print Services UTS Bookstore Athletics & Recreation Conference Services & Hospitality Library

There will be two invoice (bill) layouts: Research layout Common McMaster layout40

Key Design Decisions The Cashiering function will be replicated using PeopleSoft AR,

financial coding details receipt generation. 

Similar to today, the distributed nature of receiving payments will continue however with greater autonomy, responsibility and accountability in the distributed business areas. 

The deposit entries will be completed locally, as well as the preparation of the physical deposit bag for the bank.  Central finance will no longer need to recount or amalgamate the deposits.

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Customizations

Customizations Invoice layout Receipt layout Sponsor award number in AR Payment application Moneris ecommerce file load Bank Statement load

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Issues Student Interim Process

Student related transactions including receiving payments Will use online cashiering and maintain that process until Student

Administration goes live

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Key Process Changes Deposits not amalgamated, central finance does not check/close

batch

Where manual, bills migrate to PeopleSoft

Payment application to detailed open items as opposed to an AR account

44

Process Improvements Billing!

Centrally recorded AR, distributed process

Improvements in internal cost transfer details (GL Interface)

Bank reconciliation more automated

Greater visibility of AR details

45

Billing Solution

46

Accounts Receivable (AR) Terminology PeopleSoft AR is created from a bill and represents an ‘item’ to be

paid Similar to, but not to be equated to an AR Balance Payment Application – taking an individual payment and paying a

specific item(s) Direct Journal – taking a payment and creating a revenue journal Cashiering – at the University cashiering is the function of

receiving payments and recording the accounting for those payments. PeopleSoft does not have ‘Cashiering’ but does have places to record payments received in either detail or summary, and in a two-step process payments are applied.

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AR Solution

48

Cashiering Walk up

Enter deposit Direct Journal to revenue accounting Generate receipt

Moneris  Ecommerce centrally entering Moneris sales data to a revenue clearing account for

each merchant Remote business areas

Enter deposit (summary or detail as necessary) Apply payment either to open items or direct journal Create deposit slip Pickup for banking

Central Finance Arranges delivery to bank Reconciles bank statement49

Conversion Re-key customers where necessary No open AR item conversion

Old systems will be closed out without converting open items No GL Impact No Bill conversion

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Project Costing

PeopleSoft Project Costing Three purposes for this module

Capital projects Trusts Research ( next presentation)

Primary users: Capital : facility services Trusts : TFAIS users

PeopleSoft Project Costing What does it do ?

This module captures information related to a project , bringing all the information together in one place.

It will receive information from the GL, P2P, travel and expense, AR and also allow entry of budgets and project attributes at the module level.

Compensation will also flow from PeopleSoft HR when live.

PeopleSoft Project Costing Team has worked closely with key stakeholders to configure the

system to receive the historical information from TFAIS and AiM Key stakeholders are currently completing System Integration

Testing

PeopleSoft Project Costing Reporting Reports will be available from PeopleSoft but any report that will

require information from other sources will be provided through the Data Warehouse

Other user may view the status of their projects as now linked in the ERP

Research

Review StatusInquiry

Expend against award

Perform Adjustments

Allocate IndirectCosts

Manage Billing

Negotiate andAccept

Receive AwardNotice

Create Project/ Award

Authorize Pre-AwardSpending

Submit StatusReports

Monitor FundingLimits

Review Account ActivityEnter Basic Information

DevelopNarratives

Develop Budget

Identify Need for Special Reviews

Comply with Assurances& Certifications

Route ForInternal Approval

Submit to Sponsor

Post-Award(Accounting)

Pre-Award(Proposal)

ProposalDevelopment

Review &Submission

AwardsProcessing

AwardManagement Compliance Close-Out

Submit FinalReport

Comply with Cost

Allowability

PeopleSoft Grants Management

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To be Process Flow

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Training

Training Training

Will begin in mid-October and run through December Detailed training schedule will be made available at the end of

September Multiple Training Styles

Classroom Small Group Drop-in Online (delivered via Avenue to Learn) Written Documentation

CoursesWork stream Total Number of CoursesA/P 4A/R Billing 9ALL Modules 2Commitment Control 2General Ledger 12PeopleSoft Overview 1Procurement 4Project costing 2Research 5Travel & Expense 2Grand Total 43

Next Steps

Next Steps User Validation – late August

We will be conducting a ‘user validation’ exercise to confirm security access for each user of the new system

The Security and OCM team will distribute two documents to facilitate this process:• An Excel spreadsheet containing users and PeopleSoft

access based on current roles and current FAS access• An accompanying instruction / information package to help

complete the exercise

McMaster University - Mosaic

Closing