Navy ERP/SAP Cost Accounting

 Questions asked of NAVAIR/NAVSUP 1) What cost visibility do you have with Navy ERP that you didn't have in the legacy environment? 2) Are you using the Navy ERP managerial cost accounting functionality? a) If so, how? And, what can you do now that you couldnt in the legacy environment? b) If not, why? (Didnt know it exist, no need, etc.)  SAP Question What functionality do you offer that Navy ERP is not using, and how can we get them to use it?

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Feedback
 From the Commands NAVAIR asked for clarification, asked if we still had the presentation from Phil L. NAVSUP said they would get with their Finance Team and get back with me.  SAP ready and willing to help

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Challenge
 Open ended question we do know the following: Navy ERP has functionality to capture costs at the lowest levels Internally entitled contracts would have the cost collected more accurately than externally entitled. SAP has a lot more functionality to offer in this area

 The requirement needs to be defined What is the cost accounting requirement? How will it be used? What is the expected outcome?

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Quick Look gap analysis follows

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GAP Analysis (Components)

SAP CO Functionality
Profit Center Accounting

NAVY ERP CO Functionality

Out of scope Yes

Gap

Results
Full Gap

Overhead Cost Controlling (Cost Center, Cost Element, ABC, Internal Orders) Product Cost Controlling (Product Cost by Period/order/SO, Standard Cost Estimate, Simultaneous Costing, Period-End Closing, Material Ledger/Unit Costing) Profitability Analysis (Costing-Based/AccountBased)

In Scope

ABC

Partial

Out of scope

Yes

Full Gap

Out of scope

Yes

Full Gap

Reporting (R/3 Reporting, BW Reporting, Portal In Scope Solutions)

No

No Gap

Enterprising Controlling ( Profit Center Accounting, Consolidation, EIS/Business Planning)

In Scope

EIS/Business Planning

Partial

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GAP Analysis (Reporting for CO)

SAP CO Functionality
ABAP Listviewer Reporting (CO-OM, CO-PC COCOTool Offers Set of Generic Functions, Without Programming, Line Item Reports, Documents, Analysis of Incorrect Postings, Corrections) CO Summarization Reporting (CO-OM, CO-PC, PS Standardized / Flexible Cost Analysis of Cost Objects, Check of Data Consistency) Formatted Reporting with ReportWriter (CO-OM, CO-PC, Target/Actual Comparisons, Variances, Support of the Planning Process, Assessment Cycles, Target Costs) Drill Down Reporting (CO-PC, CO-PA, PS, Profitability Analysis for Operating Concerns, Reconciliation Reports to look for Posting Anomalies) State-of-the-art Data Warehouse Tool (Web Caching, Web Application Designer, Common Meta Data Repository)

NAVY ERP CO Functionality

In Scope No

Gap

Results

In Scope In Scope

No No

In Scope In Scope

No No No No

Predefined Content (Infocubes, Queries, Workbooks and Roles, Ready-to- In Scope run, Delta Extraction for Line Items) Customer Specific Solution (Data Merge from Different Applications and Systems, Flexible Definition of Aggregates, Mass Reporting for Cost Centers incl. Automatic User Profile Generation) Role-based Monitoring and Alerting (Cost Center Monitor, Internal Order Monitor, Internal Activity Allocation Monitor) Integration of Existing Reports (ReportWriter/Painter Reports via iViews, BW Reports via Web Templates) Integration of Business Tasks (Administrative Tasks via ISR Correction Posting Request, Master Data Change Request Planning Scenario) In Scope

In Scope In Scope In Scope

No No No

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Fit/Gap Findings

1.2 1 0.8 0.6 0.4 0.2 0 P ro f it a b ili t y A na ly s is E nt e rp ris in g C on t ro ll in g P ro f it C en t e r A c c o u n t in g O v e rh e a d C os t C on t ro ll in g P ro d u c t C os t C on t ro ll in g R ep o rt in g NAVY ERP CO Functionality SAP CO Functionality
0.5 0

Fit/Gap Findings
Profit Center Accounting Overhead Cost Controlling Product Cost Controlling Profitability Analysis 0 0 1 Enterprising Controlling Reporting

0.8

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Fit Results

Fit Results

17% Not Met 50% 33% Partially Met Fully Met

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Implications & Next Steps

 The fit / gap analysis contained in this document provides the information needed for FMO to base their answer to the question regarding the additional capabilities of SAP that the Navy ERP can use in cost and managerial accounting. It does not contain a recommendation to FMO, rather presents the facts regarding how well Navy ERP meet the needs of the SAP functionalities.  In either case, additional assessment based on scenarios, processes and steps is needed to obtain a comprehensive fit/gap analysis findings. FMO leadership should begin to consider how these vital assessment activities would be executed in conjunction with the ongoing requirements compliance project.

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Controlling
Reporting

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Integrated Labor Reporting

RCO1046_R001 Integrated Labor Reporting:  Gross Pay Error Report (RCO1046_R001) Status report on the disposition for each line item within the gross pay file (GPF) processing (Error, Failure, Repaired, Process, etc.)  CATSDB-Gross Pay File Comparison (RCO1047_R001) Compares entries in the CATSDB table and entries coming from the GPF.  Labor History Report (RCO1048_R001) Five report layouts in total detailing the employee, hours, dollars, overhead allocation, projects, etc.: Direct projects Overhead projects Sorted by Employees and projects worked Summary by Employee Display of all available fields  Military End Strength (RCO1050_R001) Military headcount by cost center and pay grade

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Integrated Labor Reporting contd.

 Actual Labor Reconciliation Report (RCO1051_R001) The report provides a reconciliation between accelerated leave accrued and leave taken along with accelerated fringe accrued and fringe paid.  Summary of Actual-Stabilized Labor by Pay Band(RCO1052_R001) This report will be used to formulate standard direct labor rates using actual earnings information, and to track, project, and report stabilized labor variances for each pay grade/step for the annual rate.  Civilian Hours Summary Work Year (RCO1056_R001) The report provides manpower (civilian, military, foreign national, or total) information stated in man-years, summarized by department, and division. The selection criterion is down to the personnel number and performing cost center.

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NOR (Net Operating Results) Report

 Net Operating Results (NOR) Report (RCO1082_R001) The NOR report is used to identify the various levels of overhead, capturing the labor hours and work years, applied revenue, overhead expenses and stabilized direct labor rate variance by competency department level breakout. Net Operating Results (NOR) Labor Report Net Operating Results (NOR) Summary Report by Department Net Operating Results (NOR) Detailed Report

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DCPS Gross Pay File Reconciliation

Standard Labor Rate v. Gross Pay File This report will compare the entries created by the gross pay file and the postings to the direct and reimbursable projects within SAP through the direct activity allocations. Defense Daily Expenditure File v. Gross Pay File This report will compare the entries from the gross pay file and the DDEF file. It will validate the accuracy between the labor expensed-not paid and the labor disbursement amount coming from Treasury.

.Report Format to be Determined

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Undistributed Labor Transaction

RCO1004_R005 Undistributed Labor Error Reports  Allows End user to generate reports on Labor Transfer errors (CATA) to PS or CO Objects  These are errors which are were not caught by Timesheet validations Availability Control Activity Type/Rate validity dates Order/Project currently being processed

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DONIBIS
 RFI1009_I001 DONIBIS: The requirement is for Navy ERP to provide an automated file to DONIBIS (DON Industrial Budgeting Information System) containing all the data needed to satisfy the financial and non-financial data requirements for monthly, semi-annual and annual working capital fund reporting. SAP will produce the file in a TXT format, which will be manually uploaded into the DONIBIS system. The DONIBIS reporting is still based on the old Navy chart of accounts (Navy four-digit GLA) and not on the new USSGL.

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SSR
 RCO1057_R001 SSR: The purpose of this program is the following: Executes custom table generation/update produces reports based upon user input SSR/Carryover Detail Extended Carryover Detail New Orders Detail SSR/Carryover by UIC SSR/ Carryover by Cost Center Standard Summary Sources of Revenue Report Expanded Summary Sources of Revenue Report Additional options (check box): Exclude carryover exceptions (Y/N)

Output options

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Cost Experience Report

RCO1049_R001 Cost Experience Report  WCF report Includes Commitments, Obligations, Costs and Hours by Expense Category: Direct CPP G&A Indirect Service Center Total  Includes Costs by Object Class Report can be generated at total activity level, department level, division level or cost center level by Expense Category and/or Object Class breakout

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CO Standard Reports
 Master Data Reports (Cost Elements, Cost Cents, Activity Types, & Internal Orders)  Cost Center Accounting (Plan/Actual & Actual/Actual Comparisons, Planning, Pricing, and Line Item Reports)  Internal Order Accounting (Plan/Actual & Actual/Actual Comparisons, Planning, Summarization, and Line Item Reports)  Activity Based Costing (Processes) (Plan/Actual Comparisons, Planning, Pricing,and Line Item Reports)

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CO Standard Reports
List: Processes Processes: Actual/plan/variance Processes: Breakdown by Partner List: Processes Bus. Processes: Planning Overview Business Processes: Act. Line Items Business Processes: Plan Line Items Business Processes: Master Data Rep. Business Alloc Structure Display List: Breakdown by process category Area: Orders Orders: Actual/plan/variance Orders: Current Period/Cumulative List: Orders List: Orders by Cost Element List: Cost Elements by Order Orders: Breakdown by Partner Orders: Actual/Plan/Commitments List: Actual/Plan/Commitments S_ALR_87011761 S_ALR_87011760 S_ALR_87011762 S_ALR_87011765 CPBL CPB1 CPBP CP13 CP20 S_ALR_87011771 S_ALR_87013643 S_ALR_87012993 S_ALR_87012994 S_ALR_87012995 S_ALR_87012996 S_ALR_87012997 S_ALR_87012998 S_ALR_87012999 S_ALR_87013000

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CO Standard Reports
Orders: Actual Yearly Comparison Orders: Actual Quarterly Comparison Orders: Actual Period Comparison Order: Planning Overview Orders: Plan Yearly Comparison Orders: Plan Quarterly Comparison Orders: Plan Period Comparison Orders: Actual Line Items Orders: Commitment Line Items Orders: Plan line items Orders: Budget Line Items Display budget document Master Data List Internal Orders Internal Orders: Coll. Displ. SettRu SObj: Actual/Plan/Variance SObj: Actual/Plan/Commitment SObj: Current/Cumulated/Total Orders: Breakdown by Period Orders: Actual/Plan/Price Variance Orders: Actual/Plan/Consumption S_ALR_87013001 S_ALR_87013002 S_ALR_87013003 KABL S_ALR_87013004 S_ALR_87013005 S_ALR_87013006 KOB1 KOB2 KOBP KOB4 KO2B KOK5 KOSRLIST_OR S_ALR_87013007 S_ALR_87013008 S_ALR_87013009 S_ALR_87013010 S_ALR_87013011 S_ALR_87013012

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CO Standard Reports
Orders: Actual TCrcy/OCrcy/GCrcy List: Cost Elements (True Postings) List: Actual Debit/Credit List: Plan Debit/Credit List: Cumulated Actual/Plan/Variance List: Total Plan/Actual/Commitments List: Budget/Actual/Commitments Controlling Documents: Run Selected Reports Cost Centers: Actual/Plan/Variance Area: Cost Centers Area: Cost Elements CCtrs: Current Period / Cumulative Cost Centers: Breakdown by partner Cost Centers: Breakdown by BusTrans Area: Activity Types Area: Statistical Key Figures Areas: Assigned Orders/WBS Elements Cost Centers: Act./Plan/Commitments Area: Actual/Plan/Commitments Cost Centers: Projection S_ALR_87013013 S_ALR_87013014 S_ALR_87013015 S_ALR_87013016 S_ALR_87013017 S_ALR_87013018 S_ALR_87013019 KSBB S_ALR_87013611 S_ALR_87013612 S_ALR_87013613 S_ALR_87013614 S_ALR_87013615 S_ALR_87013616 S_ALR_87013617 S_ALR_87013618 S_ALR_87013619 S_ALR_87013620 S_ALR_87013621 S_ALR_87013622

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CO Standard Reports
Cost Centers: Quarterly Comparison Cost Ctrs: Fiscal Year Comparison Cost Centers: Actual/Target/Variance Area: Cost Elements Cost Centers: Variances Cost Centers: Splitting Cost centers: Planning overview Activity Types: Reconciliation Activity Types: Plan receivers Cost centers: Activity prices Cost Centers: Actual Line Items Cost Centers: Commitment Line Items Cost Centers: Plan Line Items Controlling Documents: Actual Controlling Documents: Plan Cost Centers: Master Data Report Cost Elements: Master Data Report Activity Types: Master Data Report Stat.Key Figures: Master Data Report Cost Centers: Rolling Year S_ALR_87013623 S_ALR_87013624 S_ALR_87013625 S_ALR_87013626 S_ALR_87013627 S_ALR_87013628 KSBL S_ALR_87013629 S_ALR_87013630 KSBT KSB1 KSB2 KSBP KSB5 KABP KS13 KA23 KL13 KK04 S_ALR_87013631

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CO Standard Reports
Cost Centers: Average Costs Cost Centers: Act./Plan/Var./Prev.Yr Cost Centers: Currency Translation Area: Actual/Plan 2 Currencies Cost Centers: Object Comparison Area: Internal Business Volume Cost Centers: Curr./Cum./Total Year Cost Centers: Act/Target from Summ. CCtrs: Period Breakdown Actual/Plan CCtrs: Period Breakdown Act./Target Cost Centers: Breakdown Resources Cost Centers: Cost Component Split Stat. Key Figs: Period Breakdown Activity Types: Period Breakdown Activity Types: Scheduled/Plan Area: Actual/Budget/Commitments Run Selected Reports S_ALR_87013632 S_ALR_87013633 S_ALR_87013634 S_ALR_87013635 S_ALR_87013636 S_ALR_87013637 S_ALR_87013638 S_ALR_87013639 S_ALR_87013640 S_ALR_87013641 S_ALR_87013642 S_ALR_87013644 S_ALR_87013645 S_ALR_87013646 S_ALR_87013647 S_ALR_87013648 KOC2

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