Process Cost Centers, Cost Center Groups, Standard and Alternate Hierarchies, and Work - PowerPoint Presentation

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Process Cost Centers, Cost Center Groups, Standard and Alternate Hierarchies, and Work Breakdown Structure

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Action

:

Process Cost Centers, Cost Center Groups,

Standard Hierarchies and Alternate HierarchiesConditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actorsStandard: With a minimum of 80% accuracy, learners must demonstrate proficiency with:- Identify Cost Centers, Cost Center Components and It’s structural Organization- Communicate Standard and Alternate Hierarchies- Create and Fund a Funded Project

Terminal Learning ObjectiveSlide3

Cost Center

What is a Cost Center?A responsibility center that incurs costs.It has a manager accountable for those costs.Is the basis for the management optimization model. Used to reflect the business; it inputs; conversions, and output to support management decisions.Are the smallest unit of the organization from a costing perspective and collect costs.Typically capture day-to-day business transactions and postings from allocations.Reflects the structure of an organization in a way that is similar to a Table of Organization and Equipment (TOE) or Table of Distribution and Allowances (TDA) prescribes/authorizes certain personnel, equipment and structure.Provides a means to associate costs with mission performance.

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How a Cost Center Captures Cost

Expense Elements OrganizationsProducts and ServicesCost CenterActivity Types

Labor pools

Equipment usage

Facility usagePayrollMaterialSuppliesEquipment

4

Business

Process

Orders

(Internal,

Job

Work)

Project WBS

ElementSlide5

Creating a Cost Center

The standard hierarchy is the first step in the process:Before creating a cost center a standard hierarchy must exist.Reflect changes in the organizational structure.Provide unique cost information requirements.In GFEBS Cost Centers need the following, if it does not meet these criteria a Cost Center should not be created. - Have a Manager - Occupy Space - Have Employees Assigned

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Creating a Cost Center (Cont.)

Cost centers are created in a hierarchical structure similar to your organizational structure.Cost Centers must be linked to a Fund CentersCost Center codes can be a alpha-numeric or entirely numeric depending on your organization.Example: Deployable Organizations that will use Global Combat Support System (GCSS)-Army will have numeric cost centers.The basic components of cost centers are:Cost Center Code (8-10 alphanumeric code)Cost Center Name (short description, e.g., Garrison Name)Cost Center Description (long text description)User ResponsiblePerson ResponsibleDepartmentCost Center CategoryHierarchy AreaBusiness Area

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Cost Center – Custom Components

In addition to the basic cost center components.There are Custom Components used to further define and differentiate the cost centers.The custom components are Army-specific.Titles of Custom Components and function within GFEBS:Unit Identification Code (UIC): The UIC is a 6-digit alphanumeric code used to identify every unit within the Army. The UIC identifies TOE and TDA units. TDA and TOE Paragraph: Is a three to six –digit alphanumeric code that identifies an entity’s hierarchical level.TOE unit, all personnel are military, and the unit can be deployable.TDA organizations are considered non-deployable and the personnel can be military, civilian, or a combination of both.Defense Medical Identification System ID (DMIS ID): The Army Medical Command (MEDCOM) uses the DMIS ID to identify hospital systems and their buildings.

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Cost Center – Custom Components (Cont.)

Functional Designator Code (FDC): A code of up to five characters that identifies a cost center’s single, specific, recurring focus area. A cost center can have only one FDC.Can be used by multiple cost centersSupports reporting obligations and expenses by unique cost center attributes.Functional Cost Accounts (FCAs): Are five-digit codes that identify specific functions within an Army Management Structure Code/Project in eight functional areas.Reference (DFAS-IN) manual 37-100-FY for more information.Program Area: Can be assigned as an attribute to a cost object when an organization has command requirements to tract the execution of unique program transactions such as Training and Doctrine Command (TRADOC)Command Defined Field: Is available for each command. It is to be defined and used as needed.

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The Standard Hierarchy is a Tree-Like

structure that represents the organization and all of its organizational groups. A user cannot create a cost center if there is no standard hierarchy in place.Hierarchy consists of all cost centers in the system for a given period.Provide a means to associate costs with mission performance.Cost Centers may be added, deleted, or moved to other parts of the organization. Example: When a U.S. Forces Command (FORSCOM) Brigade deploys to a combat theater.9Cost Centers Structured OrganizationSlide10

In GFEBS every

Cost Center will have a corresponding Funds Center and every funds center must be linked to one or more cost centers.Funds Centers – Track and manage Budget values.Cost Centers – Track and manage cost.At the detailed operational level (low level) in GFEBS, there are many-to-one relationships between Cost Centers and Funds Centers. There may be multiple Cost Centers mapped to each Funds Center.GFEBS uses two different hierarchical organizational structures to distinguish budget management from cost management functions.Fund Center / Cost Center Relationship

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**Template Located in Student Material

Cost Center Template Request (Example)

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MEDCOM Fund Centers-Cost Centers

(Example)

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Cost centers are

created and grouped to form one of many organizational hierarchies to represent the structure of an organization from a costing point of view.Once the hierarchy is built, Cost Centers are created and assigned to Cost Center Groups within the hierarchy.Cost Center Groups are collections of Cost Centers that are similar in characteristics, used to build the Standard Hierarchy used for purposes, such as: *Planning / *Allocating / *Summarizing / *Reporting / *AnalyzingBenefits and Importance of Cost Center Groups: -Report can be executed using the Cost Center Group number instead of running multiple reports or executing allocations based on a list of Cost Centers -Update Cost Centers at one time -Allows flexibility for detailed, specific info to be disseminated -A tool for structuring other Cost Centers -Groups activities Army-wideCost Center Group Benefits

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LSA #1 Check on Learning

Q1: This Master Data Element is the smallest unit of the organization from a costing perspective and collect cost?A1: Q2: What must exist before the creation of a cost center?A2: Q3: TDA organizations are considered _____________ and the personnel can be military, civilian, or a combination of both?A3:

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LSA #1 Summary

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Conduct Practical Exercises

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Walkthrough

: Transaction Code KS01Conduct Practical Exercise 3.1Use this procedure to establish a Cost Center for a newly assigned unit/group within anOrganization to support their mission. A Cost Center is a cost collector used to capture

the cost of an organization, function, task, product, s

ervice, or customer.

A Cost Center represents a unit of an organization from a costing perspective. Practical Exercise: Create a Cost Center

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Walkthrough: Transaction Code: KSH1

Conduct Practical Exercise 3.2 Use this procedure to create a Cost Center Group. Cost center groups arrange cost centers forbetter analysis and used in allocation. They can be created and used for planning, allocation, analyzing, reporting and summarizing

costs for a particular grouping.

Perform

this procedure when a grouping of costs centers is necessary. This is normally a centralized function. Record/Document your Cost Center Group Number, you will need it to perform the next procedure.Practical Exercise: Create a Cost Center Group

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Walkthrough

: Transaction Code: KSH2Conduct Practical Exercise 3.3Use this procedure to change an existing Cost Center Group. Cost Center groups arrange cost centers for better analysis and reporting and used in allocation. They can be created and used for

planning,

a

llocation, analyzing, reporting and summarizing costs for a particular grouping. Perform this procedure when a cost center needs to be added or removed from the original cost center Group. Changing a cost center group can have consequences especially if they are being used forReporting, allocation structures and assessments / distributions. Therefore, groups should not be changed unless it is known where they are used.Practical Exercise: Change a Cost Center Group

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What is the Standard Hierarchy?

A tree-like structure that represents the organization Consists of all cost centers for a given periodRepresents the entire organizationStandard Hierarchies

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1. Object Mgr.

Button 2. Cost Center Search

Standard Hierarchy (Cont.)

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After the Standard Hierarchy is built, Cost Centers can be created and assigned to Cost Center Groups within the Hierarchy.

Once complete, the Standard Hierarchy consists of all Cost Centers within the system for a given period, and therefore represents the entire organization.GFEBS has one Standard Hierarchy but may have multiple Alternate Hierarchies. Standard Hierarchy (Cont.)

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Alternate Hierarchies are

created to group Cost Centers for reporting and analysis on specific activities outside the Standard Hierarchy.There May be multiple Alternate Hierarchies.The Alternate Hierarchy does not need to contain all Cost Centers.Alternate hierarchies consists of one or many cost center groups.Alternate hierarchies are created using the same transaction as Create Cost Center Groups.Alternate Hierarchy

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Screenshot of an Alternate Hierarchy Cost Center Group

Alternate Hierarchy (Cont.)

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Practical Exercise

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Walkthrough:

Transaction Code: OKENNConduct Practical Exercise 3.4Use this procedure to display data (organizational, description, person responsible, master Data attributes, etc), relevant to cost centers group hierarchies. The screens show what cost

centers are in h

ierarchy

group and what hierarchy group a cost center belongs to. Perform this procedure when you need to determine what cost centers are aligned in a specific hierarchy or what hierarchy a specific cost center falls under.Practical Exercise: Display Standard Hierarchy

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LSA #2 Check on Learning

Q1: Cost Center Groups are collections of Cost Centers that are similar in characteristics used to build the Standard Hierarchy, what purposes can these grouping assist the user?A1: Q2: In GFEBS there will be one Standard Hierarchy but may have multiple ___________ Hierarchies?A2: Q3: T/F: Alternate Hierarchy need to contain all Cost Centers?A3:

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LSA #2 Summary

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Create and Fund a Funded Project

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Direct Charge - Roles30Roles used for a Direct ChargeAccounts Receivables Reporter

Customer Order Processor

Customer Order ApproverSlide31

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T-CodesTITLEXD03CJ2ØNDisplay Customer

Create a Project and WBS Element (Direct Charge)

FMBB

Fund a Funded ProgramZSFC3Cuml. by FP (funded program) - Detail Direct Charge – Transaction CodesCJ2ØNMark Funded and ReleaseSlide32

Key TermsWork Breakdown Structure (WBS)Cost ObjectDirect Charge

Direct

Cite

Economy Act OrderFunded ProgramProject Accounting32Slide33

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Project OrderFunding Document/AuthorizationProject Planning

Sales

Order with

AdvanceSales Order without AdvanceMemorandum of Agreement – MOAInter Service Support Agreement - ISSA Key Terms (Cont.)Slide34

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Reimbursable Process Slide35

Reimbursable Decision Matrix

Will requesting activity’s funds be cited on original

Will requesting activity’s

funds be cited on

original

Automatic:

Create WBS using “REIM” Funded Program Type and Automatic Fund

(i.e. 2Ø2Ø1ØA**)

Create Sales Order: on Additional Data B tab, enter funding data (LOA) under “Non-General Fund Army Line of Accounting”

Automatic:

Create WBS using “REIM” Funded Program Type and Automatic Fund

(i.e. 2Ø2Ø1ØA**)

Create Sales Order: on Additional Data B tab, enter funding data (LOA) under “Non-General Fund Army Line of Accounting”

Direct Charge:

Create Direct Charge WBS using “DRCH” Funded Program Type and Direct Fund (i.e. 2Ø2Ø1ØD**)

Requestor inputs FMBB transaction to fund WBS.

Direct Cite:

Create WBS using “GENR” Funded Program Type “ZCITEZTFO” Fund

Create Sales Order: on Additional Data B tab, enter funding data (LOA) under “Non-General Fund Army Line of Accounting”

NO

YES

YES

YES

There are two types of reimbursable agreements, Automatic and Direct. (Unlike legacy, in GFEBS, how the agreement is accepted is dictated by how the funds will be

executed.)

(**)

= FY

Start

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NO

NO

Is requesting activity

funded through

GFEBS?Slide36

Sales Orders can be accepted with three types of

authorities:Direct Obligation Authority (DOA)Automatic Reimbursement Authority (ARA)Funded Reimbursable Authority (FRA)

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Reimbursable AuthoritiesSlide37

Reimbursable

Authorities (Cont.)Automatic Reimbursement Authority (ARA) ARA orders are used when the Requesting Agency must pay the Performing Agency the actual costs of the goods or services provided. The Performing Agency will invoice/bill the requesting agency for reimbursement after goods or services have been performed. (equivalent of accepting a MIPR as

Category I.)

Ex. 2Ø2Ø1Ø

AXX (XX) Funds do not expire.

Obligation Authority “Generated” based on receipt of order, controlled by Installation level, gives the performing organization the right to accept sales orders with no limits on the maximum amount of work that can be provided

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Funded Reimbursable Authority (FRA)

Obligation Authority “Generated” based on receipt of order, controlled by Installation level, it gives the performing organization the right to accept sales orders, with no limits on the maximum amount of work that can be provided.Funds are held in reserve until the revenue producing activities place orders. Controlled ceiling set by ACOM with amounts controlled by quarterly limits. Once this limit has been reached, the performing organization cannot create sales orders without requesting an increase in the amount specified on the funding document.

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Reimbursable Authorities (Cont.)Slide39

Ordering Procedures

An order must be created for the desired goods or services. For training purposes we will use the DD Form 448 and DD Form 448-2. Regardless of the form used, all orders must be documented. At a minimum the order must include the following: Certification of availability for purpose: Economy ActA description of the goods or services being orderedDelivery requirementsA fund citation (either direct or automatic)A payment provision. (Provide billing instruction and information)Duration of the agreementDollar limits and any authority to exceed applicable limits without specific approval from the ordering activity.

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Work Breakdown Structure

(WBS Element)The Program/Project WBS is the structure that encompasses the entire program or project. It usually consists of three levels of products/elements with associated work definitions. The three upper levels of the PWBS are defined below.Level 0 is the entire program/projectLevels 1 and 2 elements are the major product segments or subsections. Level 3 contains definable components or subsets of the level 2 elements.

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Work Execution - 6 stages of Expenditure Transactions

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Create Project Definition/Order and Work Breakdown Structure Element(Direct Charge)42 Follow the Numbers

CJ20N

Reimbursable: Direct ChargeSlide43

CJ2ØN

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3.

This is the “

Create” Project Definition Icon, single-click and select Project 4. from the menu.43

2.

For first time users, the “Welcome to Builder” pane along with parameter choice will Always show. Green Check both to proceed.

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4

3

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1.

Input T-code CJ20N- Enter

5.

Under Project Def. Input brief description and $$ of services being procured (**far right box)

This is found in Item 9b of DD Form 448

Create a WBS ElementSlide44

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1

1.

Description of services being procured

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2

2.

Under ‘

Project Profile

’ click drop-down and choose ‘

Mission Support

’

4.

Under ‘Responsibilities’ click drop-downs for both Person

Respons

. And Applicant no. and choose from list

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5.

Input projected project start and stop dates

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6.

Ordering Installation

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Save your work

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Create a WBS Element (Cont.)Slide45

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1.

Under ‘Worklist Description’ Single-Click the icon left of ‘

Last Projects Processed’2.

Double-Click your project definition title

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3.

Under ‘

ID and view selection’ single-

click

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4.

Locate the ‘Over’ tab and click

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5.

Begin to fill-in L1 information

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Create a WBS Element (Cont.)Slide46

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1. After WBS & Description input, scroll to the (R) to expose 2. Typ (S1) and

3.

PE

1

3

2

4.

Scroll again to expose

5.

CA… (always ARMY) and

6.

Resp. cost cntr

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7.

Press Enter when complete

Create a WBS Element (Cont.)Slide47

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1. Double-click your project to re-open

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2.

Click the ‘Customer Enhancement’ tab

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Create a WBS Element (Cont.)Slide48

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NOTE: Under the ‘Funding Data’ tab, this is to be completed by the Performer

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Check ‘Create Funded Program’

2. Under ‘Funded Program Type’ click the dropdown- Select Direct Charge

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3.

Under ‘Funded Program Start Date’ select today’s date

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On the menu bar, click ‘Save’

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5.

System generated message

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Create a WBS Element (Cont.)Slide49

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1. If not expanded, click triangle (L) of ‘Last Projects Processed’ to expose Project Definition

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2.

Double-click ‘Project Definition’ to expose WBS

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2

3.

Single-click your WBS

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Click ‘Customer Enhancement’ tab

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Create a WBS Element (Cont.)Slide50

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Input: 1. Functional Area; 2. Funds Center;

3.

Main Account;

4. Fund NOTE: Under the ‘Funding Data’ tab, this is to be completed by the Requestor’s Budget OfficeThis information defaults in.

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5.

Click the ‘Basic data’ tab

Create a WBS Element (Cont.)Slide51

1.

Ensure to place a in the ‘Acct asst elem.’ block

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2

2. Click ‘Save’ to end this process. Once again, a system generated message 3.

shows additions (changes) to the document .

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Create a WBS Element (Cont.)Slide52

Practical Exercise #1

52CJ2ØN: Create a Project and WBS elementSlide53

Fund a Funded Program(FMBB)

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Fund a Funded Program (Cont.)

FMBB11. Enter T-Code FMBB- Press ‘Enter’

2.

Click the dropdown in FM area, select ‘ARMY’ and Green Check it

23. Click the dropdown in ‘Layout Variant,’ select ‘ARMY 2’ and place Check 3a. in ‘Default Layout

’

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3a

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4.

Green check IOT populate the main screen

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Note:

Under the tab, fill out the following areas: 1. Click dropdown and select ‘Transfer.’ (sometimes defaults to ‘Enter’)

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2.

For ‘Version,’ Always choose zero

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3.

Under ‘Document Type’ Click the

Dropdown

and select ‘Allotment’

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4

.

Sender

Information: Enter Budget Type, Fund, and Commitment Item

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5

5

.

Receiver

Information: Enter Budget Type, Fund, and Commitment Item

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Fund a Funded Program (Cont.)Slide56

Note:

Immediately below, fill in both Sender (-) and Receiver (+) information. **Important: Ensure to change Receiver line to (+)

1.

Line 1:

Sender / Receiver column (-); Funds Center A76VV; Functional Area 131; Funded Program ARMY; Amount (of service); Description 12. Line 2: Sender / Receiver column (+); Funds Center A76VV; Functional Area 131; Funded Program is the Project #; Amount (for service); Description

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Fund a Funded Program (Cont.)Slide57

2.

System generated message after Doc. check 2

1

1

. On the menu bar, click ‘Check document’

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3.

On the menu bar, click ‘Post’

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System generated message after Post

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5.

Upon clicking Post, both lines copy over as the accounting part in the system (4119)

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Fund a Funded Program (Cont.)Slide58

Practical Exercise #2

58FMBB: Fund a Funded ProgramSlide59

Cumulative Status by FP Report (ZFSC3)

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FP: Cumulative Status Report 60

1

1.

Enter T-Code ‘ZFSC3’ hit enter

2.

Click dropdown in ‘

Financial Management Area

’, select ‘ARMY’

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Default

Default

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3.

Under the Fund section

on

the “Or value(s)’ line, input fund with

CURRENT FY

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4.

Under the Fund Center section

on

the ‘Or value(s)’ line, input fund center

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5.

On the menu bar, click ‘Execute’Slide61

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1. Under ‘Variation Characteristics’ select ‘Budget Type’

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2

2. Under ‘Budget Type,’ double-click the appropriate quarterly budget

FP: Cumulative Status Report Slide62

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1.

Report parameters

1

2.

2.

Scroll to view ENTIRE reporting columns

3.

Notice: The ‘Available Allotment has been debited the cost of the Course Upgrade

3.

FP: Cumulative Status Report Slide63

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1. This symbol (+) represents an expandable item (drill-down)

2.

Notice: S.0000031 has been expanded out (drilled-in) as far as possible.

3. This is the view when scrolled right

2

1

3

FP: Cumulative Status Report Slide64

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1

This is the full report, expanded out, depicting the debited $25,000 cost from the original $5,000,000,000.00

Available Allotment and credited towards the S.0000031 Project FP: Cumulative Status Report Slide65

Practical Exercise #3

65ZFSC3: Cumulative Status by FP ReportSlide66

WBS Element-Mark Funded and Release

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RELEASED

CJ20NSlide67

CJ2ØN

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1

1.

Enter T-Code CJ20N- Press ‘Enter’ 4. WBS is highlighted, more options are now available. Hover the mouse to view each one

3.

Your Level 1 WBS is now populated,

single

-click it

2.

Under ‘Work-List Description’ Double-click your definition

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WBS Element-Mark Funded

and Release Slide68

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1. Click ‘Menu’

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2

2.

Bring the mouse down and HOVER over ‘Edit’

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4

4.

Bring the mouse down and HOVER over

‘User Status’

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5.

Finally,

bring

the mouse down and HOVER over

‘Set & Pass On’

3.

Bring the mouse down and HOVER over

‘Status’

Mark Funded and Release (Cont.) Slide69

2.

User Status Display Message: Informational use only- Green check it1. User Status: Select- 10 FUND Funding Approved. Green Check it

1

2

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Mark Funded and Release (Cont.) Slide70

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1. Click ‘Menu’

3.

Bring the mouse down and HOVER over

‘Status’ 122. Bring the mouse down and HOVER over ‘Edit’

3

4.

Bring the mouse over and click ‘Release’

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5.

System Generated message (provided there are no errors)

5

Mark Funded and Release (Cont.) Slide71

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1

2.

System generated message: Annotate for personal records

2

1.

On the menu bar, click ‘Save’

Mark Funded and Release (Cont.) Slide72

Practical Exercise #4

72CJ20N: WBS Element- Mark Funded and ReleaseSlide73

LSA #3 Check on Learning

Q1: T-Code CJ2ØN is used to ______ a project definition? A1: Q2: During the FMBB Transfer, the budget version (allotment) will always be___. 0123Q3: Match the symbol to the correct answer: Create Project icon Project Definition icon WBS Level 1 icon

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LSA #3 Summary

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Questions?Slide76

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Action

:

: Process Cost Centers, Cost Center Groups, Standard Hierarchies and Alternate

HierarchiesConditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actorsStandard: With a minimum of 80% accuracy, learners must demonstrate proficiency with:- Identify Cost Centers, Cost Center Components and It’s structural Organization- Communicate Standard and Alternate Hierarchies- Create and Fund a Funded Project

TLO Summary