Imprest Funds & Replenishments
FI -CM-007
FI-CM-007
Nov 19
2008
LaGOV
Logistics
Before we get started ...
2
Ground Rules
Has everybody signed in?
Everybody participates – blueprint is not a
spectator sport
Silence means agreement
Focus is key – please turn off cell phones and
close laptops
Challenge existing processes and mindsets
Offer suggestions and ideas
Think Enterprise
Ask questions at any time
One person at a time please
Timeliness – returning from break
Creativity, cooperation, and compromise
3
Introduction
Roles
Process Analyst and Functional Consultant – lead and
facilitate the discussions and drive design decisions
Documenter – take detailed notes to support the formal
meeting minutes to be sent by the Process Analyst to all
participants for review and feedback
Team Members – provide additional support for process
discussions, address key integration touch points
Subject Matter Experts – advise team members on the
detailed business process and participate in the decisions
required to design the future state business process
Round the Room Introductions
Name
Position
Agency
4
Project Phases
Five Key Phases
Realization
Preparation
Preparation
Business
Blueprint
Support
Go Live
Project
Final
and
• Strategy & Approach Defined • Development & Unit Testing • Go-Live Support
• Project Team Training • Integration Testing • Performance Tuning
• End-User Training Materials
• Business Process Definition • User Acceptance
• Development Requirements • Technical Testing
• End-User Training
• Conversion
5
Project Organization - Functional Teams
Finance Leads Logistics Leads Linear Assets Leads
Beverly Hodges – Finance Lead Belinda Rogers – Logistics Lead Mark Suarez – Agile Assets Lead
Drew Thigpen – Finance Lead Jack Ladhur – Logistics Lead Charles Pilson – Consulting Lead
Mary Ramsrud – Consulting Lead Brad Denham – Consulting Lead
General Ledger
Accounts Payable Katie O’Connor
Kandy Daniel
Accts Receivable Raj Govindarajulu
Cash Management
Cost Accounting
Funds Management
Grants Mgt
Project Systems
Asset Accounting
Budget Prep
Grantor
Real Estate Management
6
Blueprint Objectives
Review and discuss the current or As-Is business processes
• Which helps to drive out the Business requirements
• As well as the integration points with other processes
Define Master Data
• Address key integration points
• Support organizational requirements
• Consistent and appropriate use of data fields
Define Future or To-Be business processes based on:
• Best Practices inherent in SAP
• Intellectual capital from other SAP implementations
• State business requirements
Identify development requirements
• Which could result in the need for a form, report, interface,
conversion, enhancement, or workflow (FRICE-W)
Understand and communicate any organizational impacts / Enterprise
Readiness challenges
Gather system security authorizations and district-wide training
requirements
7
Cash Management Workshops
Session No of Session Description/Major Business Process
Schedule Overview of major Session Topics
# days Group
Review the state's current bank reconciliation
FI-CM- 1.5 27-Aug &
Bank Accounting process and match the standard processes in
002 days 28-Aug
SAP
Current Reports & frequency; standard reports
FI-CM- available in SAP;
1 day 16-Oct Cash Reporting & Forecasting
001 review current liquidity forecast; draw possible
scenarios in SAP
FI-CM-
Review the interfaces of Debt and Investment;
003 &
.5 day 30-Oct Debt & Investment Management & Interest determine what GL accounts might be needed
004 &
for posting
005
Offsite cash collection facilities;
Recording cash by Agency
FI-CM- Revenue Classification by Agency
1 day 18-Nov Cash Receipting (Revenue and Interfaces) Interfaces from Agency to Treasury Cash
006
posting
Imprest Accounts maintained by Agency
FI-CM-
1day 19-Nov Imprest Funds & Replenishments Replenishments of Cash by Agency
007
Cash Journal Postings
8
Work Session Objectives
Imprest Accounts - Uses by agency
Defining Cash Journal
Payment Process
Replenishment process
Roles and security requirements
Action Items & Next Steps
9
Process Improvement Opportunities
Ability to process real-time updates to the
general ledger
Use of account assignment templates, which
reduces time when entering data
Ability to print check at any time
Balance maintained in the system rather than
manually
10
Imprest Accounts
What are Imprest Accounts?
1. An Imprest expenditure bank account addresses one alternative for
handling small dollar purchases and Travel expenditure payments.
2. The Imprest Expenditure Bank Account Record records checks
issued and deposits made
3. Since no cash is to be kept on hand in operating an Imprest fund, a
checking account at bank is a requirement
4. Imprest Account Bank Records Include
Balance forward
Issued checks
Cancelled checks
Reimbursement Requests
5. Records are maintained in a financial system and ability to generate
checks from vendor invoice posted from cash journal
6. Reimbursements for the Imprest Accounts are made by using
Vendor Accounts.
11
Imprest Account
How Imprest Accounts Operate
A separate bank account is established for the Agency
Financial Policy of the Treasury will define when and how an
Imprest Account can be used
A designated amount is deposited to the account by the Treasury
The Agency records the invoices to vendor accounts through cash
Journal
Checks are then created for the invoices from Imprest A/C to pay
for small expenditures, Non Employee Travel Expenses & Other
payments.
To replenish the account, the agency processes a petty cash
reimbursement (PV).
12
Cash Journal
SAP provides a tool to enter, maintain, report and post invoices for Petty cash
and Imprest account transactions with the help of Cash Journal
All Imprest Accounts maintained by agencies may remain the same.
Cash Journal Tool can be used to enter and record the data of expenses and
receipts in SAP.
Cash Journal is a banking related accounting sub-ledger.
Cash Journal is a single screen transaction
For Non-Accounting users the complexity can be completely hidden
– Just select the type of transaction name eg: Supplies
– Enter the amount and cost items
– System automatically post the Dr & Cr as predefined behind the screens
Cash Payments and Cash Receipts are supported by Cash Journal
13
Cash Journal - Advantages
Some of the Benefits Include:
Filling in a 2-3 fields is sufficient to complete a cash transaction
A screen can be personalized as per the requirement of business and agency
Multiple cash journal can be maintained for one agency
Opening and closing balances, as well as total receipts and payments are
automatically calculated and displayed.
Cash Journal Entries and Transaction Receipts can be printed at the touch of
a button.
- Prints all transactions that were posted during the Display Period
- Prints a receipt for the selected entry
Status
- Entry saved posted to the General Ledger
- Entry saved in the Cash Journal
Accounting Documents
- Drills down to the Accounting Documents for entries that
have been posted to the General Ledger
14
Cash Journal – Uses
Cash Receipts:
• Revenue postings
• Cash receipts from the bank to cash account
Cash Payments:
• Recording Expenses
• Cash Transfers from cash account to the bank
• Vendor payments
Postings to One-Time Accounts
Print receipts and cash journal entries
Print Checks for Regular Vendor & One time Vendor
postings
15
Cash Journal – Single Screen
Cash Journal uses a single screen transaction
• All data is entered, displayed, changed, deleted and posted in one screen
• Saving in Cash Journal is similar to parking a document in sub-ledger and
not in GL
• Cash journal is maintained locally when the document is saved
• System calculates the balances automatically
• Follow-On documents arising from cash journal can be displayed
• Printing the cash journal entries posted in any time period is easy – with
just a click of a button
• Saved (parked) cash journal entries can be deleted with authorization of
the user exists
• Deleted documents within a time frame can also be viewed or displayed
• Before a document is posted, changes can be made in the save mode.
16
Cash Journal – Transactions
Below are standard accounting transaction types and
their associated postings:
Debit Credit
Expense (E) Expense Cash
Revenue (R) Cash Revenue
Cash transfer:
- Cash journal to bank (B) Bank Cash
- Bank to cash journal (C) Cash Bank
Accounts receivable (D):
- Incoming payment Cash A/R
Accounts payable (K):
- Vendors-outgoing payment A/P Cash
17
Cash Journal - Objectives
Data required to maintain a cash journal
Requirements Gathering at the end of sessions to effectively use a cash
journal will include
– Agency that require Journals
– Different types of activities at Imprest
– Identification of Vendor and GL Accounts needed
– Payment Process for vendors
– Replenishment process by agency
– Reports for cash journal
18
Cash Journal – Post to Vendor
• Vendor is used when we have to pay an employee or vendor already existing in the
system
19
Cash Journal – Post to One-Time Vendor
• One-Time vendor is used when paying an employee or vendor not existing in the
system and would not be used later on. (One-Time Vendor is a functionality where, no
master data has to be created, but vendor maintained and paid)
20
Cash Journal - Payments
Imprest payments are entered into SAP vendor accounts or one-time vendors
through cash journal
In One-Time Vendors all information including vendors name, address, bank
and tax information can be entered each time a posting is made
Once the Invoice is posted onto a vendor account – A manual payment
transaction is executed, checks can be created and printed
These payments can be made on-demand at any time
Checks can be printed at the agency
Cost objects are maintained for each expense line item and posted to GL
Check forms are maintained for each agency
Payments are made from the Imprest accounts which can be entered
manually by the user after the invoice is posted through cash journal
21
Cash Journal – Payment Requirements
If a payment needs to be made for vendors/one-time vendors in SAP, then
the following has to be maintained
1. All Imprest Bank Accounts has to maintained in SAP
2. Each bank account has to have a Bank GL A/C and a Sub Ledger
A/C
3. If same vendors will be used in future – Master data of vendors
needs to be maintained
4. Check Lots need to be maintained for each agency with check
number ranges
5. Various GL accounts have to be maintained for Expenses and
Revenue
6. Payment terms have to be maintained
22
Cash Journal – Make Payment
• Once the Invoice is posted – Transaction F-58 is used to make the payment for
Vendor
23
Reimburse Imprest Account
Reimburse Imprest Expenditure Account
Determine the Amount to be reimbursed
A PV document is generated for the amount to be
reimbursed
PV document is parked by user
PV document is approved and posted by agency approver
Agency is maintained as a vendor in the GL
Payment is made based on the payment terms and type on
the vendor account of agency
Agency deposits the check or validates the wire at bank
Agency records the reimbursement in the cash journal as
cash receipt to the Imprest Account GL
This will bring the balance of the cash journal to the
specified amount.
24
Reimbursement
Reimbursement In Detail
PV is created and posted to the Vendor A/C (Agency)
PV is paid from the disbursement account maintained at Treasury
A check or EFT will be processed to the Agency
Agency will then record the Reimbursement in the cash Journal
25
Cash Journal - Activity Flow
Cash Journal
Document
FI GL Post or
Account Save
FI DB Post Save
Customer /
Vendor Sub Print a
Ledger Document
26
Cash Journal - Postings & Reports
To post a cash journal transaction: FBCJ
– Switch to the relevant transaction type:
• Cash receipts,
• Cash payments,
– Choose a business transaction (Already created account assignment)
– Enter all required data (amount, Cost Centers, Vendor etc.)
– Save or Post your transaction,
– Print cash journal document
27
Cash Journal: Demo
Posting into a Cash Journal is shown in the following slides
Cash Journal Transaction in SAP: FBCJ
1. Company Code is Maintained – This will always be populated Initially after
the first time
2. Cash Journal is selected from the drop down box and any one CJ that we
have already defined is selected
28
Cash Journal: Demo
Relevant Posting Type is selected
1. Cash Payments
2. Cash Receipts
3. Check Receipts
29
Cash Journal: Demo
Relevant Business Transaction is used
1. Expense Offsetting
2. Non employee payment
30
Cash Journal: Demo
All required data is entered for cash receipts
1. Amount
2. Cost Object
3. Fund
4. Commitment Item: Cr side of GL Entry
31
Cash Journal: Demo
The saved Document can be
1. Posted after approval
2. Deleted
3. Modified and then posted
32
Cash Journal – Demo Print Cash Journal
The balances posted for any given date range can be printed and viewed with all
Dr and Cr
33
Reverse a Cash Journal Entry
Reversing and deleting a cash journal entry is possible
Document with cash movement, posted and updated in the
system cannot be deleted
A Reverse document has to be posted as offset
All saved documents that are not posted, can be deleted by
just selecting it and pressing delete.
34
Enterprise Readiness Challenges
SME & end-user education on GL account
numbers, structure and proper usage.
Creating Invoices and making payments
Acceptance and Change Management of the
new To-Be Process.
35
Next Steps
Prepare and send out meeting minutes to
invitees.
Draft Design Document is prepared.
Follow up on action items identified during the
workshop.
Schedule off-line meeting (s) to discuss areas of
special concern
Plan follow on workshops, as required.
Plan validation workshop.
Ensure all to-do’s are appropriately documented
36
Questions?
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37
Thank You
for
Your Participation!
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