Umoja Realisation Workshop Cluster 3

Nairobi, 24-28 February 2014

3.7 UNOJA FOUNDATION ORGANIZATIONAL STRUCTURE VIA

VTC FROM NEW YORK

3.8 PLAYBACK SESSIONS UNON PERSPECTIVE ON CODING

BLOCK
Agenda

Building Umoja in SAP

Umoja Foundation Process Overview
SAP Key Finance Terms
The SAP Coding Block
Umoja Coding Block Example
Overview of Major Changes (between Legacy and Umoja)
Major Conversion Activities

2
Building Umoja in SAP
Build

Enterprise Individual Master

structure module
Enter
data definition
configuration configuration & mapping transactions

Enterprise structure configuration: Defines the operational and

organisational system foundation for each major component (finance,
logistics, etc.). Impacts how transactions are processed, how balances
are aggregated and how reporting is generated.
The Umoja Enterprise Structure meets the compliance needs of the
UN (IPSAS / financial statement, reporting, auditing, controls) while
supporting efficient and flexible processes for operations.
Individual module configuration: Defines how each individual
module behaves and is used in the UN context.
Master data definition: Defines the reference data for each module,
for example for Finance and Budget the coding block elements (cost
centers, etc.). As long as legacy systems create financial transactions
their reference data needs to be mapped to the Umoja master data.
3
Umoja Foundation Process Overview
Financial Management
Budget Implementation FM
Grants Management GM
Services to the Public & Staff
Sales (third-party procurement
services and billing customers)
SD
Project Management
Project Initiation
Project Planning
Project Execution and
Performance Monitoring PS
Facilities Management
Real Estate Administration
Real Estate Planning
RE
Cost & Management Accounting Financial Accounting
Accounting for Specific Events and Accounts Payable FI-AP
Activities - Internal Orders Accounts Receivable FI-AR
Overhead Accounting - Cost Centre Asset Accounting
Accounting
FI &CO
General Ledger FI-AA
Taxes and Insurance FI-GL
Cash Management & Treasury
Bank Management
Cash and Liquidity Management
Investment Accounting
Treasury and Risk Management
Investments FI-TR
Source to Acquire
Requisition to Purchase Order
Low Value Acquisition
Contract Management SRM
Employ to Dispose
Receive to Distribute
Set Assembly and Execution
Inbound Processing
Equipment Assignment and Management
Outbound Processing MM
Equipment Maintenance and Operations Warehouse and Storage
Decommission and Disposal PM
4
SAP Finance Key Terms

Financial Accounting

Company Code
Functional Currency
Business Area
Leading, Non-Leading and ADB Ledgers
Transactions are recorded in the following Sub-Ledgers:
Accounts Payable
Accounts Receivable
Asset Accounting

Transactions are booked on an IPSAS basis

5
SAP Finance Key Terms

Controlling Area

SAP defines a Controlling Area as the umbrella in which

cost management activities are performed, i.e., cost
allocations and reporting. Controls boundaries in cost
center accounting and profit center accounting.
Commitments (Obligations) are not maintained in
Controlling

6
SAP Finance Key Terms

Financial Management Area

SAP defines a financial management area as the

organizational unit within an institution used to represent
budgeted and actual revenues and expenses;
Budgetary Appropriations and Allotments will be entered
in USD;
Funds Management will have revaluation of foreign
currency commitments.

7
SAP Finance Key Terms Funds Management

Fund - A separate and distinct fiscal/accounting object containing a self-

balancing set of accounts used to budget and control costs and to identify
source and use of funding. Financial data will be separated by Funds so that
certain activities can be performed or objectives achieved in accordance with
special regulations, restrictions, or limitations. Fund is not hierarchical. The
Fund is the lowest level at which a balance sheet can be created.

Fund types: Grouping of funds within Umoja. Fund type 10 regular budget,
fund type 20 peacekeeping, fund type 30 voluntary contributions
Commitment Item - the functional grouping of expenditures and revenues
within a financial management area in the Funds Management (FM) module.
This is one to one with a general ledger account in the Financial Accounting
module for revenue and expenses.

Funds Centre - an Organisational Unit within the Funds Management

module (responsibility areas, departments) that controls a budget. This is one
to one with cost centre.

8
SAP Finance Key Terms Funds Management

Functional Area - a master data element that is maintained within the Funds
Management (FM) module but is used in FI/CO as well to classify revenues
and expenditures of an organization by function. It is intended to represent a
functional view of an organization. Functional Area is not hierarchical and can
cross organizational entities. This is the programmatic view within Umoja. All
cost centres and fund centres are linked to a functional area.
Funded Programme program within Funds Management (FM) with an
operational purpose and defined time frame. They can range from simple
activities to complex projects and can cross the organizations fiscal years,
funding sources, and Organizational Units.
Budget Period - The validity period of a given budget. The Budget Period is
defined with a start and an end date. This element offers the flexibility to
maintain the budget validity, independently of the validity of the other master
data, notably Fund, and the fiscal year. Examples are P13 (1 July 2012- 30
June 2013), P14 (1 July 2013 30 June 2014) and B13 (RB 1 January 2012
31 December 2013).

9
Functional Area (FM): Programme & Budget Section
View
Budget Section hierarchy
Programme hierarchy
Programme 1
Part 1 Two different views
Budget Section 1 of the same elements

Budget Section 2 (bold lines are
Programme 15: ESCAP

Policy Making Organs
Part 5
programmatic elements)
Exec. direction and mgmt
Budget Section 18: ESCAP
Programme of work
Policy Making Organs
Environment and Development
Exec. direction and mgmt
Result 1
Programme of work
Output 1
Environment and Development


Technical Cooperation Env & Dev
Programme Support


Programme Support
Budget Section 22: Regular Prog. of techn. coop.

Regional and Subregional Advisory Service
Programme 27
Econ. and Social Dev. for Asia
Budget sections not being a programme Technical Cooperation Env & Dev
Income Sections
Tribunals Part 14
Budget Section 1, 7, 32, 33, 35, 36 Income Sections
Tribunals
Missions (not being a programme) Missions (not being a programme)
UNIFIL UNIFIL

Not a budget section nor a programme Not a budget section nor a programme
Brindisi Log Base Brindisi Log Base
Entebbe Regional Support Centre Entebbe Regional Support Centre

10
SAP Finance Key Terms Controlling

Cost Centres - Cost Centres that identify the smallest areas of ongoing cost
responsibility within a companys overall organisational structure, where budget control
may be implemented. Cost Centres can be assigned to only one company code
Profit Centres Profit Centres that represent an area of responsibility within a
company. It is typically a unit which monitors both costs and revenues and which
behaves as an independent operating unit for which a separate operating statement
and balance sheet can be calculated for external reporting. Profit Centres can be
assigned to multiple company codes.
Internal Orders - An internal order is used to monitor parts of the costs, and, on
certain occasions, the revenues of the organization. You can create an internal order to
monitor the costs of a time-restricted job or the costs (and revenues, if required) for the
production of an activity. Internal orders can also be used for the long-term monitoring
of costs`
Cost Elements Primary Cost Element - Provides segregation of cost by nature of
expense and are created one to one with corresponding P&L accounts and allow
simultaneous posting of FI and CO. Secondary Cost Element - Used to allocate cost
with in Controlling between cost objects and it exist in Controlling only with no
corresponding FI counterpart of posting.

11
SAP Finance Key Terms

Cost Centre Hierarchy

Contains a list of all Cost Centres that identify areas of ongoing cost
responsibility within a companys overall organizational structure, where
budget control may be implemented. Can be used for example: Controllers
Office may be top of OPPBA cost centre

Inhalation
Profit Centre Hierarchy
12%
Contains a list of all Profit Centres that represent an area of responsibility
within a company. It is typically a unit which monitors both costs and
revenues and which behaves as an independent operating unit for which
Solid Oral
a separate operating statement and balance sheet can be calculated for
external reporting. In the UN we are using them 50% as line of business
such as Human Resources, Engineering etc.

12
 Every module introduces
The SAP Coding Block elements to the coding block
and uses coding block
elements from other modules.

FI CO FM GM
Module
Financial Acc Controlling Funds Mgmt Grants Mgmt
Enterprise
Structure Code COMPANY CODE CO AREA FM AREA
GL acc related GL Account Cost Element Commitment Item Sponsored Class

Funding source Fund Fund Fund Fund

related Grant Grant Grant Grant
Cost Center
Business Area (org structure: Depart- Fund Center Fund Center
Coding Block Elements

ment, Division, Unit)

Organisational
& activity Internal Order
related Work Breakdown Funded Program Sponsored Program
Structure
Profit Center

Segment
Programmatic
Functional Area Functional Area Functional Area Functional Area

Grant Budget Validity

Financial period Fiscal Year Fiscal Year Fiscal Year
Period
related
Budget Period Budget Period Budget Period Budget Period

Legend: FI Entry Derived Derived or entered

13
As-is: Classification of IMIS account code elements

IMIS Umoja Umoja

Classification
account code GL account code Budget account code*
GL account GL account/
GL Account Commitment Item
Object code/class type of expense

Fund Fund
Fund Funding source
Grant Grant
These classifications
Cost Centerrepresent the main
Org. Unit or
Project /
Organisational & reporting and
Internal Order
Fundanalysis
Center
activity related
or requirements of the UN.
Funded Program
Activity
Project (WBSE)

Programme Programmatic Functional Area Functional Area

Fiscal Year
Fiscal Year Financial period Budget Period
Budget Period

14
To-be: Umoja Coding Block (account code)

The Umoja chart of

IMIS account Umoja accounts
Umoja combines the
Classification
code GL account code Budgetas-is GL code*
account accounts and
object codes into new GL
GL account GL account/
GL Account Commitmentaccounts.
Item
Object code/class type of expense
Grant to be used to track
Fund Fund
voluntary contribution.
Fund Funding source
Grant Grant
Internal Order and
Cost Center Project used for example
Org Unit or
Organisational & to support
Fund Centerdonor reporting.
Project / Internal Order
activity related Funded Program area more
Functional
Activity or
Project (WBSE) detailed than as-is
Programmes to provide
Programme Programmatic Functional Area Functional
detailedArea
programmatic
analysis.
Fiscal Year
Fiscal Year Financial period Budget Periodfiscal year;
Annual
Budget Period
budget periods define
General budget validity
Ledger

15
To-be: Umoja Coding Block (account code)

IMIS Umoja Umoja

Classification
account code GL account code Budget
The GLaccount code*
account code
GL account GL account/ is used by the General
GL Account Commitment Item
Ledger for financial
Object code/class type of expense
accounting. Only actual
Fund postingsFund
are recorded
Fund Funding source
Grant in the Grant
General Ledger
Cost Center not budgetary postings.
Org Unit or
Organisational & Fund Center
Project / Internal Order A separate budgetary
activity related Funded
Activity or ledgerProgram
records all
Project (WBSE) budget relevant
transactions (budget
Programme Programmatic Functional Area Functional Area
allotments & budget
consumption) in parallel
Fiscal Year
Fiscal Year Financial period to the General
Budget PeriodLedger.
Budget Period

General
Ledger

16
To-be: Umoja Coding Block (account code)

IMIS Umoja Umoja

Classification
account code GL account code Budget account code*
GL account GL account/
GL Account Commitment Item
Object code/class type of expense

Fund Fund
Fund Funding source
Grant Grant
Cost Center
Org Unit or
Organisational & Fund Center
Project / Internal Order
activity related Funded Program
Activity or
Project (WBSE)

Programme Programmatic Functional Area Functional Area

Fiscal Year
Fiscal Year Financial period Budget Period
Budget Period

General Budgetary
Ledger Ledger*

* Funds Management 17
To-be: Umoja Coding Block data entry example

Budget Allotment:
IMIS Umoja
Classification
account code Budget account code*
FT10_CLASS_135
Furniture and
GL acc/
Object class 022 Commitment Item Equipment sub
type of expense
class of 100 (022 in
IMIS)
Fund
Fund UNA Funding source 10UNA
Grant

Fund Center 10776

Organisational &
Org Unit 0006 DM Executive Office
activity related
Funded Program FPNR
13BD0006
Programme 6551 Programmatic Functional Area
Programme Support

Fiscal Year 2013 Financial period Budget Period B13

Umoja master data is preliminary 18

To-be: Umoja Coding Block data entry example

Purchase Requisition:
IMIS Umoja
Classification
account code GL account code
GL acc/ 747152010 from the material*
Object code 5011 GL Account
type of expense Consumable Furniture on the PO line item
Fund
Fund UNA Funding source 10UNA
Grant

Cost Center defaults from

Cost Center 0006 10776
or Cost Center
Project / - Organisational & DM Executive Office
Internal Order
Mission activity related
or
Activity - Project (WBSE)
-
13BD0006
Programme 6551 Programmatic Functional Area
Programme Support
defaults from
Fiscal Year 2013 Fund Type &
Fiscal Year 2013 Financial period posting date
Budget Period B13

19
Overview of Major Changes

General ledger for IPSAS actuals only

Accrual accounting for general ledger / financial accounting
Budgetary ledgers for budgetary performance reporting and
budgetary control
GL Account for purchases derived from material or service being
purchased.
Functional Area for more detailed programmatic analysis
Controlling module to support managerial accounting
Controlling module to support chargeback mechanisms for internal
parties.
Grants to track individual donor contributions

20
Major Conversion Activities

Create master data

Cost centres, fund centres, projects, grants, internal orders,
pricing, activity types, groupings and related hierarchies
Create crosswalk
Map existing legacy data to new Umoja data so it can be used
for transactional conversions and interfaces
Perform transactional conversions from legacy system:
Purchase Orders
Other obligations (OBMOS etc) and travel commitments
AP, AR and GL open items and balances
Fixed Assets
Allotment balances
Create user roles and mapping for workflow

21