Attachment E Transition Strategy for Migrating from As-Is Financial Model to To-Be Financial Model Documentation.pdf

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S/4 Planning Project

Documentation

Responsible Team Members

XXXXX

Transition Strategy for Migrating from As-Is Financial Model to To-Be Financial Model

Introduction

The following table outlines the steps for migrating from the current AASIS as-is financial model to the S/4HANA to-be Financial Model.

Step Action Item Discussion

Master Data Transition

1. Define the Segment Values Review the ACFR Columns to determine what segment values are required. Work with the DFA ACFR team to define which

AASIS funds are combined into ACFR Columns. Create a table that contains:

• Current AASIS Fund

• To-Be Segment Value

• To Be Segment Description

Transition Strategy for Migrating from As-Is Financial Model to To-Be Financial Model

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2. Review mapping of Fund and

Business Area

Review Custom AASIS Table ZMFB_FUND. This will serve as the starting point for step 3 below

3. Define the Profit Center

Values

Create the following Mapping table:

• Fund

• Business Areas

• Segment (from Step 1)

• Profit Center o 1st Two Character of Segment o Business Area value o “0000”

4. Facilitate the following

Business Decisions

• How will standard Profit Center Hierarchy be used?

o Option 0 – Flat Group (All Profit Centers point to the Same Node and Flexible Hierarchies are used to support different requirements) o Option 1 – Cabinet Level Node with each

Profit Center assigned to the Cabinet Node o Option 2 – Segment Level o Option 3 – Agency Node (to resolve multiple

Segments in an Agency, if this is an issue)

5. Determine which fields will be required and complete the attributes needed by the Profit Center

• Short Text

• Long Text

• User Responsible

• Person Respons.

• Department

• Profit Ctr Group

• Segment

• Authorization Group

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6. Define the to-be Funds Create a mapping table of the 7 character as-is Fund and the to-be 10 character to-be Fund:

• Current Fund

• To-Be Fund (AASIS Fund &”000”)

7. Using the current attributes of Fund, populate the to-be attributes (dropping the use of Application of

Funds)

8. Define the High-Level

Functional Areas

Work with ACFR to determine:

• The current list of ACFR Functions

• Define the high level ACFR Functions o Current ACFR Function o “000000000000”

• Short Description

• Long Description

9. Facilitate a business decision on what level of the Functional Area to assign to Cost Centers

Option 1 – Assign the high-level functional area

Option 2 – Default the high-level functional area and determine in conjunction with Agencies, what detailed level

Functional Areas are appropriate for each of their cost centers.

Option 3 – Require agencies to use lower-level functional areas for each of their cost centers

10. Define the Cost Centers Work with individual cabinets/agencies to document/update their organization chart down to the level of organizational accountability.

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11. Define how the attributes of the Cost Center will be used.

How will standard Cost Center Hierarchy be used?

a. Option 0 – Flat Group (All Cost Centers point to the Same Node and Flexible Hierarchies are used to support different requirements)

b. Option 1 – Agency Level Node

c. Option 2 – Cabinet Level Node and lower-level Agency Node

Change Field Status to Require the following fields:

• Functional Area

• Profit Center

Facilitate a business decision on the use of the following fields

• User Responsible

• Address information

12. Document the attributes of the cost center

• Short Description

• Long Description

• Person Responsible

• Cost Center Category o Open Question: What will we use this field for if it is required?

• Standard Hierarchy Node

• Currency

13. Determine which existing cost centers are organizational-based

Work with agencies to determine if the existing cost center aligns with the organization chart from prior step.

14. Build the mapping for as-is

Organizational-based Cost

Center

Build a table with the following mapping for the Cost Centers in the previous step to the to-be Cost Center/Fund/High-level

Funded Program.

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15. Define Grant Types Review the Funding Types suggested as the first character of the Grant in Numbering Conventions extracted from

Deliverable 07 - CoA and FMD Redesign.docx

16. Work with FI Lead to configure required fiscal year variants

Recommend 1 fiscal year period for each possible start and end period. Each should use the four special periods.

17. Facilitate a business decision on how the

External Fund will be used

Since SAP only allows one external fund per grant, the project team will need to facilitate a decision on how this field will be used if multiple state funds are used in support of grant matching requirements: define a new fund that will receive transfers in from the state funds or customize a solution in support of using multiple state funds. This decision may require a long lead time, if legislative changes are needed.

18. Define Sponsors

19. Document Fiscal Year variant for each Sponsor

(FY Start and FY End)

20. Define Default Sponsored

Programs per Sponsor

Note that one sponsor may use more than one definition of

Sponsored Programs based on their funding requirements

21. Define the Accounts

Structures

Complete the following activities:

• Review off-book ACFR entries and current reconciliations between modified and full accrual to determine missing GL Accounts

• Map the as-is GL Accounts/Commitment Items to the to-be GL Accounts/Commitment Items

• Map the unassigned commitment items to corresponding GL Accounts/Commitment

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• Map as-is PM Settlement Cost Elements to new to-be

GL Accounts

22. Define the Sponsored

Classes for each Sponsor

Note that one sponsor may use more than one definition of

Sponsored Classes based on their funding requirements. For each identified Sponsor/Accounting Groupings:

• Map as-is Sponsor Revenue and Expense Groupings and existing allowable General Ledger Accounts to to-be Sponsored Classes

• Map to-be Commitment Items to to-Be Sponsored

Classes (for derivation support)

23. Document active grants Work with individual Cabinets/Agencies to document grant awards that will be active at go-live.

24. Define the attributes for each Grant

Using the GMGRANT tabs as a starting point, build a data gathering tool to use with the Cabinets/Agencies to complete the required conversion information for each grant.

25. Facilitate a business decision on how the internal order and WBS

Elements will derive a grant value

Option 1: Custom Field

Option 2: User field with Custom Match Code

Option 3: Derivation Rule (each order mapped to a grant in derivation table)

26. Internal Orders for Grants Work with Individual Cabinets and Agencies to define one or more Internal Orders for each Grant Award that is expected to be active at go-live.

27. Complete the attributes for each Internal Order

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28. Facilitate a business discussion on what balances to convert for grants

Option One: Total Balances (Total Grant Budget less Total

Expenditures to date, plus Revenues to-date)

Option Two: Remaining Amount (Total Unexpended Budget, Open Encumbrances (from PO conversion)

Option Three (possible in different waves): Option Two (Wave

A), with statistical balances (unreleased budget with distinct doc type, historical statistical expenses and revenues to a

“Conversion” Sponsored Class) (Wave A or B, per business).

Preferred because you won’t have to manage integration with

Funds Management for budgeting consumed budget.

29. Internal Orders for

Standing Internal Orders

Work with Individual Cabinets and Agencies to define

Standing Internal Orders. Standing Internal Order are externally numbered based on agency defined conventions.

30. Facilitate a business discussion on what balances to convert for

Standing Orders

Option One: Total Expenditures to date, plus Revenues to-date offset to Fund Balance Contra Account

Option Two: Total Expenditures to date, plus Revenues to-date offset to Responsible Cost Center. (preferred because it simplifies the determination of profit center and segment).

Option Three: None

31. Complete the attributes for each Standing Internal

Order

32. Internal Orders for ad-hoc

Internal Orders

Work with Individual Cabinets and Agencies to define ad-hoc

Internal Orders. Ad-hoc Internal Order are sequentially numbered.

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33. Facilitate a business discussion on what balances to convert for Ad-

Hoc Orders

Option One: Total Expenditures to date, plus Revenues to-date offset to Fund Balance Contra Account

Option Two: Total Expenditures to date, plus Revenues to-date offset to Responsible Cost Center. (preferred because it simplifies the determination of profit center and segment).

Option Three: None

34. Complete the attributes for each Standing Internal

Order

35. Complete the mapping of

Real WBS Elements

Complete the mapping of as-is real WBS Elements/Fund/

Business Area/Cost Center/Funds Center/Functional Area to to-be WBS element/Fund/Profit Center/Responsible Cost center/Requesting Cost Center/Functional

Area/Grant/Sponsored Program/low-level Funded Program

In addition to defining the go-live transition mapping, this should also support defining the FM and GM Derivations for

Capital Projects

36. Complete the mapping of statistical internal Orders and WBS Elements

Complete the mapping of as-is statistical Internal Order/WBS

Elements/Fund/Business Area/Cost Center/Funds

Center/Functional Area/Grant to to-be Internal Order/Fund/

Profit Center/Responsible Cost center/Requesting Cost

Center/Functional Area/Grant/Sponsored Program/low-level

Funded Program

In addition to defining the go-live transition mapping, this

Capital Projects

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37. Identify Population of

Active Maintenance Orders

Work with Agencies to determine which Maintenance Orders will be active at Cutover.

38. Complete the mapping of as-is Maintenance Orders to to-Be Maintenance

Orders

Complete the mapping of as-is Maintenance Orders/Work

Center/Fund/Business Area/Responsible Cost

Center/Functional Locations (if needed)/Settlement Cost

Center/Settlement Fund/Funds Center/Functional Area/Grant to to-be Maintenance Order/Work Center/Fund/ Profit

Center/Responsible Cost center/Settlement Cost

Center/Settlement Fund/Functional Area/Grant/Sponsored

Program/High Level Funded Program

In addition to defining the go-live transition mapping, this

Maintenance Orders

39. Facilitate a business discussion to determine the scope for Fixed Asset

Conversion

Option 1: All Active (Unretired) Assets

Option 2: Still Depreciating Assets

40. Map As-Is Assets to To-Be

Assets

Map the current posted Asset/Sub/Fund/Business

Area/Depreciation Cost Center/Funds Center/Responsible

Cost Center/Internal Order/WBS Element/Business

Area/Grant/Functional Area to To-Be

Asset/Sub/Fund/Depreciation Cost Center/Responsible cost

Center/Internal Order/WBS Element/Segment/Profit

Center/Grant/Functional Area

Funded Program will need to be derived

Definitions

Term Definition

ETL data table Extract Transform and Load (ETL) tables serve as staging areas for conversion.

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Standard Migration Object

Standard Migration Objects are defined by SAP and provide a pre-defined platform and templates for conversion. It is not available for all objects (specifically lacking are public sector objects)

Assumptions

• The State will use a “New Implementation” aka Greenfield approach (discussed below)

• Models for all data structures will follow the numbering format described in Numbering Conventions extracted from Deliverable 07 - CoA and

FMD Redesign.docx

Mapping strategy and model(s)

1. There are no standard S/4HANA On-Premise Public Sector migration objects available

a. Migration of Public Sector information requires the use of

i. Custom programs

1. Master Data

a. Funds

b. Commitment Items (high-level budget control objects)

c. Funded Programs (high-level)

d. Functional Areas

e. Grants

f. Sponsored Programs

g. Sponsored Classes

2. Transactional Data

a. Budget

i. Funds Management

ii. Grants Management – Grantee

b. Earmarked funds

ii. Automatic master data creation (transaction FMMDAUTO)

1. Commitment Items (1:1 with General Ledger Accounts)

2. Funds Centers (1:1 with Cost Centers)

3. Funded Programs (low-level Internal Order or WBS Element programs)

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FIGURE 1 - S/4HANA MIGRATION APPROACHES

2. Error! Reference source not found. summarizes the different approaches available for migrating to a new SAP S/4HANA system

a. Standard SAP S/4HANA conversion (brownfield)

i. Migrate directly from an existing SAP system

1. SAP S/4HANA Migration Cockpit

ii. Direct migration of existing data

iii. Extremely limited data transformation

1. No Public Sector migration objects are available

a. Custom loading programs are required for transformed public sector master data

b. Selective Data Transformation (SDT)

i. Available for S/4HANA on-premise migrations

ii. Direct loading using various methodologies and tools (at extra cost)

1. Fully supported by SAP

a. SAP: Data Management and Landscape Transformation Services

2. Not covered by SAP support agreements

a. SNP (Schneider-Neureither & Partner SE): CrystalBridge platform and services (previously Datavard)

b. Natuvion

c. cbs (Corporate Business Solutions): ET Enterprise Transformer for SAP S/4HANA software and services

i. Successful comprehensive migration of a US-based public sector customers

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ii. Includes full migration of Special Ledger Fund Accounting information into the S/4HANA General Ledger (ACDOCA) with automatic balancing by Fund

iii. Data extraction from existing system

1. All system data or

2. Current data and a selected timeframe for historical information

iv. Transformation mappings and rules

v. Direct table data loading using transformed data

c. New SAP S/4HANA system (greenfield)

i. Without data transformation

1. Custom Conversion of Public Sector Specific transactional, balance and master data

a. Master Data

i. Funds

ii. Commitment Items (high-level budget control objects)

iii. Funded Programs (high-level)

iv. Functional Areas

v. Grants

vi. Sponsored Programs

vii. Sponsored Classes

b. Transactional Data

i. Budget

1. Funds Management

2. Grants Management – Grantee

ii. Earmarked funds

2. Direct transfer of current transactional, balance and master data

a. Objects to Transfer:

i. Ending Financial Balances,

ii. Grant and Project Balances for Active Grants and Projects,

iii. Master Data for new and existing non-public sector-specific Master Data structures

iv. Open Items for Customers/Vendors/Warrants and other "true" Open Item Managed Accounts

v. Open Contracts and Purchase Orders.

vi. Unretired Fixed Assets and balances.

vii. Inventory Balances

b. Staging tables populated using

i. Standard S/4HANA XML migration templates

1. Optimized Fiori App F3473 – Migrate Your Data (Migration Cockpit)

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ii. SAP HANA Studio

1. Data from Local File option

2. Import data from a local file (.csv, .xls, or .xlsx)

iii. Various automated tools

1. SAP Data Management and Landscape Transformation Services

2. SAP HANA Studio

a. SAP HANA Smart Data Integration (SDI)

3. Others

3. No Public Sector migration objects are available

a. Custom loading programs are required

ii. With data transformation

1. Transformation of current data

a. Staging tables populated and transformed using ETL (extract, transform, load) tools

i. SAP Data Management and Landscape Transformation Services

ii. SAP HANA Studio

1. SAP HANA Smart Data Integration (SDI)

iii. Other ETL tools

2. No Public Sector migration objects are available

a. Custom loading programs are required

d. Data mappings

i. Best supported using an ETL tool

ii. Required for all data structures relevant to the data being migrated

1. Active data structures (Greenfield implementation)

2. Active and all relevant historical data structures (Selective Data Transformation implementation)

iii. Should be made available to end users using a custom application (“wizard”)

1. Allows end users to enter their AASIS account assignments

2. Provides end users with the corresponding S/4HANA account assignments

3. Can be used to validate the new S/4HANA account assignments

iv. Foundation for determining and loading new S/4HANA derivation rule mappings

1. Funds Management

2. Grants Management – Grantee

3. Error! Reference source not found. summarizes relationships between the critical AASIS and S/4HANA financial data structures and recommended strategies for mapping, modeling, and S/4HANA migration.

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TABLE 1 - AS-IS TO TO-BE FINANCIAL MODEL SUMMARY

General Ledger Accounts (Xref: Step 21)

General Ledger Accounts will be created based on mapping existing accounts to a hierarchy as is used to group accounts for Financial Reporting.

Missing accounts will be manually defined:

• To help organize the Balance Carry-forward at year end close

• To further support maintaining multiple bases of accounting (for example, incorporating the full accrual accounting “off-book” ACFR Trial

Balance Adjustments)

• As-needed, to address S/4HANA specific accounting requirements, such as the state has to do with Cash in Bank accounts to support open-item management of incoming deposits and outgoing payments

• To support Cost Allocation

Additionally, as budgeted Expense or Other Financing Use accounts are defined, they will be manually renumbered to correspond with the Character

Code used for budgetary control.

Since Cost Element functionality has been combined into the S/4HANA GL Account, manual mapping of Cost Element Attributes will need to be manually assigned. For example, GL Account:

5060001000 - 10 PROFESSIONAL & ADMINISTRATIVE FEES

Could map to

5106010000 - PROFESSIONAL & ADMINISTRATIVE FEES

5 –Exp + 10 – Character 10 + 60 – Prof & Admin + 100 – Direct Exp + 0 - All Bases + 0 – Not an Allocation

5130030635 - 10 INTER-AGENCY TRANSFER OUT

Could map to

710901000000 - INTER-AGENCY TRANSFER OUT

7 – OFU + 10 – Character 10 + 90 - Transfers Out + 100100 - Interagency Transfers out + 0 - All Bases + 0 – Not an Allocation

As-Is Data Object(s)

To-Be Data Object(s)

Mapping Strategies Models Migration

General Ledger Account

(10 digits) + Cost Element

(10 digits)

General Ledger Account

(10 digits)

Manual restructuring and updating to simplify groupings and use, integrate / revise CO information, and enable automatic reconciliation of budgetary, modified accrual, and full accrual accounting bases

ETL data table Standard General Ledger Account migration object (staging table loaded from ETL tool) or SDT, manual flexible hierarchy groupings

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Commitment Item (Xref: Step 21)

Commitment Items will be hierarchically organized with the first level being the current character which will serve as the budgetary control level. The second level will be based on a new 1 to 1 relationship with the GL Account. The State will be able to take advantage of new functionality to reduce data maintenance by automating the creation of Level 2 Commitment Items for new or changed GL Accounts.

Child CI Parent (Control) CI

5106010000 - 10 PROFESSIONAL & ADMINISTRATIVE FEES Will report to: 10 PROFESSIONAL FEES AND SERVICES

710901000000 - INTER-AGENCY TRANSFER OUT Will report to: 10 PROFESSIONAL FEES AND SERVICES

As-Is Data Object(s)

To-Be Data Object(s)

Mapping Strategies Models Migration

Commitment Item (up to 24 digits, fiscal-year dependent)

Commitment Item (up to 10 digits, not fiscal-year dependent)

Manual definition of Character-level and exception-based Commitment Items. Exceptions may include budgeted balance sheet items like Sales and Use Tax clearing accounts, Inventory, fixed assets or reconciliation accounts used to maintain multiple bases of accounting.

ETL data table Custom program or SDT, manual assignment to standard and flexible hierarchy groupings

Automated for Commitment Items that are 1:1 with General Ledger Account

Created automatically using transaction FMMDAUTO (FM: Auto. Creation of Master Data), manual assignment to standard and flexible hierarchy groupings

Funds (Xref: Step 1,2,3,4,5,6,7)

The State’s current AASIS Fund will be expanded to 10 characters (trailing zeros to the current AASIS Fund Number used to support the migration to a number of new S/4 Master Data structures:

• Groupings of Funds for ACFR reporting will be used to define the new Segment

• Groupings of Funds for ACFR Segment reporting and Business Areas will be used to define the new Profit Center

• Master Data from the individual AASIS Funds that are active or that have a balance at conversion will be used to convert existing funds from the current 7 characters to 10 characters (to provide for growth of subfunds, if needed)

For Example:

HSC6101 - DFA Management Svc

Will map to HSC6101000 - DFA Management Svc

All Funds which currently are grouped to the Governmental Balance Sheet and SRECFB in the ACFR to represent different types of activities.

Will map to General Government Segment which will be used for the General Fund Financial Statement as well as for Governmental Activities on the Enterprise Wide ACFR Statements

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All funds which are mapped to the Non-Major Enterprise Funds Combining Statements

Will map to An individual segment for:

• Construction Assistance Revolving Loan Segment

• Public School Employee Health and Life Benefits Segment

All funds which are mapped to the Revolving Loan Funds and Other Enterprise Funds column of the Non-Major Enterprise Funds Combining Statements

Will map to Individually defined segments based on the nature of the activity supported by the individual funds.

ACFR Fund Grouping: General Government Business Area: 0610 - DEPT OF FINANCE AND ADMIN

Will map to Profit Center: 1006100000 – DEPT OF FINANCE AND ADMIN Segment: 100000000 – GENERAL GOVERNMENT

As-Is Data Object(s)

To-Be Data Object(s)

Mapping Strategies Models Migration

Fund (7 digits)

Fund (10 digits)

Automatic (structures) for funds that do not have an Authorization Object value of

DOA2/

Automatic definition of other field values based on AASIS ECC Funds

ETL data table Custom program or SDT, manual flexible hierarchy grouping

Fund (ACFR Fund Groupings)

Segment Manual based on current ACFR fund Groups

Excel

Manual configuration (requiring manual mapping strategy), manual assignment to flexible hierarchy groupings

Fund (ACFR Fund Groupings)

+ Business Area

Profit Center + Segment

Automatic mapping of ACFR Fund Groupings and current Business Areas to Profit Centers with automatic assignment of Segments to Profit Centers

Manual definition of other Profit Center fields

ETL data table

Standard Profit Center migration object (staging table), manual assignment to standard and flexible hierarchy groupings

Functional Areas - (Xref: Step 8,9,11,12,34,35,36,)

The current AASIS Functional Area is no longer useful, as it represents the ACFR Functions at the time of AASIS’ go-live and has not evolved to represent the ACFR Functions that are currently used. The strategy for migrating anything related to the ACFR Function will focus on using the ACFR functions that are current. These include:

• Using the Current ACFR Function (from the most recent ACFR) combined with the Agency (current Business Area) to create High Level Functional Areas, which will serve to define the default the Functional Area that are assigned to cost objects.

• Using the Current ACFR Function combined with the Agency and Cost Object to define and assign lower level Functional Areas

Function: GENERAL GOVERNMENT Business Area: 0610 DEPT OF FINANCE & ADMIN

Will map to Functional Area: ADMN000000000000 - ADMINISTRATION Profit Center: 1006100000 – DEPT OF FINANCE & ADMIN

Function: GENERAL GOVERNMENT Business Area: 0610 DEPT OF FINANCE & ADMIN

Will map to Functional Area: ADMNITSS00000000 – Admin/IT/System Support Profit Center: 1006100000 – DEPT OF FINANCE & ADMIN

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Cost Center: 383450 - INF SER 279 HSC6102 Order: I0610162 – System Support

Resp Cost/Funds Ctr: ASC Order: nnnnnnnnnnnn – System Support

As-Is Data Object(s)

To-Be Data Object(s)

Mapping Strategies Models Migration

ACFR mapping of Business Areas to

Function + Relevant Business Area

Functional Area (16 digits, high-level)

+ Relevant Profit Center

Use this combination of mappings to validate higher level master data structures such as Segments and Profit Centers.

This combination will be used for conversion purposes by defining the higher level profit centers and functional areas for lower level cost objects, and for validation of mapping of lower level cost objects to their corresponding attributes.

Manual mapping of structures and Automatic mapping to default Functional Area on Cost Centers, Orders, WBS Elements

ETL data table Custom program (Functional Area) or SDT manual assignment to flexible hierarchy grouping

Functional Area (up to 4 digits) +

Business Area + Cost Center + Order + WBS

Element

Functional Area (16 digits, lower-level) + Profit Center + Responsible/

Requesting Cost Center for Order or

WBS Element

Use this as-is combination of cost objects to create the to-be manual mapping of ACFR Function, Business Area and Cost Objects to lower-level Functional Areas on Cost Centers, Orders, WBS Elements

ETL data tables Custom program (Functional Area) or SDT, manual flexible hierarchy grouping

Cost Center/Funds Center (Steps 10,11,12,13,14)

The migration from the use of current Cost Center (Appropriation and Fund) to the future use of Cost Centers (Organization Units) will result in several transition activities:

• Working with Agencies to define their Organizational Cost Centers

• Mapping existing combinations of structures to the new Cost Centers/Funds Centers

Current Organization Chart

Will map to New Organizational Cost Centers

Current AASIS Cost Center: 383281 – AASIS 272 HSC6101 Business Area: 0610 – DEPT OF FINANCE & ADMIN Fund: HSC6101

Cost Center(s)/Funds Center(s): ASC As mapped by agency based on org chart

Profit Center: 1006100000 – DEPT OF FINANCE & ADMIN Fund: HSC6101000

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As-Is Data Object(s)

To-Be Data Object(s)

Mapping Strategies Models Migration

N/A Cost Centers

The definition of Cost Centers will not be based on existing master data. Definitions of Cost Centers and Assignment to Standard and Flexible Hierarchies will be in conjunction with Agencies based on their Organization Chart

ETL Data Table

Standard Cost Center migration object Manual Assignment to standard and flexible hierarchy groupings

Current AASIS Cost Center

(up to 10 digits) + Business Area + Fund

Cost Center (10 digits) + Profit

Center + Fund

This mapping will support two future uses:

• Support for an “as-is” translation of current cost centers to to-be Cost Center and Fund (transition wizard)

• Support for initial population of FMDerivation values for determining the appropriation within the Funded Program

Manual mapping for most combinations / Automatic for Profit Center (where there is single line of business for an agency) and Functional Area (from above mapping of Cost Objects to Functional Areas)

ETL data table

Standard Cost Center migration object (staging table) or SDT, manual assignment to standard and flexible hierarchy groupings

Funds Center (10 digits)

1:1 with Cost Center Created automatically using transaction FMMDAUTO (FM: Auto. Creation of Master Data), manual standard and flexible hierarchy groupings

High Level Funded Program for Organization Based Cost Centers (Step 14)

Migration of the Appropriation from the current Funds Center to the High Level Funded Program will take existing posted combinations of Funds Centers, Funds, ACFR Fund Groupings looked up from the fund and Business Areas and map them to a corresponding Profit Center (Agency) and High Level Funded Program. For example:

Cost Center: 383281 – AASIS 272 HSC6101 Fund: HSC6101 Funds Center: 272 ACFR Fund Grouping: Governmental Business Area 0610

Will map to

Fund HSC6101000 Profit Center 1006100000 High Level Funded Program: 272000100610000000000000 Cost Center(s)/Funds Center(s): ASC As mapped by agency based on org chart or Internal Order: <BLANK> or WBS Element: <BLANK>

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Object(s)

To-Be Data Object(s)

Mapping Strategies Models Migration

Funds Centers (3 - 7 digits)

+ Fund (ACFR Fund Groupings)

+ Business Area

Profit Center + Funded Program

(high-level)

Automatic (Manual for Business Areas across multiple ACFR groupings)

ETL data table Custom program (Funded Program) or SDT, manual flexible hierarchy grouping

Lower Level Cost Objects (non-Org Cost Centers/IO/WBS) and Lower Level Funded Programs (Steps 35,36)

While the High Level Funded Program will serve to direct Expenses to the correct appropriation, lower levels of Funded Programs will be established for each Internal Order or WBS element created. The creation of these lower level Funded Programs, both for conversion and for ongoing Funded Program Maintenance will be automated using the FMMDAUTO program

Cost Center: 383281 – AASIS 272 HSC6101 Order: I0610162 – System Support Fund: HSC6101 Funds Center: 272 ACFR Fund Grouping: Governmental Business Area 0610 Functional Area: ADMN

Will map to

Internal Order nnnnnnnnnnnn – System Support Profit Center 1006100000 Resp Cost Center(s): ASC Requesting Cost Center(s): ASC Fund HSC6101000 Low Level Funded Program: 27200010061nnnnnnnnnnnnn (System Support) Grant NRGRANT Functional Area ADMNITSS00000000 – Admin/IT/System Support Sponsored Program N/A

Object(s)

To-Be Data Object(s)

Mapping Strategies Models Migration

Cost Centers + Internal Orders

(statistical, up to 12 digits) +

Fund (ACFR Fund Groupings)

+ Business Area + Grant + Functional

Area

Internal Order (12 digits) + Profit

Center + Responsible Cost Center +

Requesting Cost Center + Fund + Functional Area

(appropriation) + Grant + Sponsored program

Manual mapping for most fields / Automatic mapping for Profit Center (where an agency has a single line of business) and default Functional Area updating (from above mapping of Cost Objects to lower level Functional Areas

ETL data table

Standard Internal Order migration object (staging table) or SDT, custom program (Sponsored Program) or SDT, manual flexible hierarchy groupings

Cost Centers + WBS Elements

(statistical, up to 14 digits without separators) + Fund

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(ACFR Fund Groupings) + Business Area +

Grant + Functional Area

Cost Centers + WBS Elements

(statistical, up to 14 digits without separators) + Internal Order (statistical) + Fund (ACFR Fund

Groupings) + Business Area + Grant +

Functional Area

Other Cost and FM Objects (Steps 35,36,37,38)

To-Be Data Object(s)

Mapping Strategies Models Migration

Internal Orders / Statistical Grant WBS Elements from above

(converted to new Internal Orders)

Low-Level Funded Programs (24 digits)

1:1 with Internal Order Created automatically using transaction FMMDAUTO (FM: Auto. Creation of Master Data), manual flexible hierarchy groupings

Maintenance Order (up to 12 digits) +

Fund (ACFR Fund Groupings) + Business Area + Cost

Center + Functional Area + Grant

Maintenance Order (up to 12 digits) +

Profit Center + Responsible [Cost

Center + Fund (appropriation)] + Functional Area +

Grant + Sponsored Program

Automatic mapping for most fields/ Manual mapping of Profit Center (if agency crosses multiple lines of business) and Cost Center (to newly defined org Cost Centers).

ETL data table

Standard Maintenance Order migration object (staging table) or SDT, custom program (Sponsored Program) or SDT, manual assignment of objects to flexible hierarchy groupings

Project Definitions + WBS Elements

(non-statistical, up to 14 digits without separators) + Fund

Project Definitions + WBS Elements

(12 digits) + Profit Center + Responsible

Cost Center +

Manual mapping for most fields/ Automatic mapping to Profit Center (single line of business) and default Functional Area updating

ETL data table

Standard Project and WBS Element migration objects (staging table) or SDT, custom program (Sponsored Program) or SDT, manual flexible hierarchy groupings

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(ACFR Fund Groupings) + Business Area + Cost Centers + Functional

Area + Grant

Requesting Cost Center + Fund

(appropriation) + Functional Area +

Grant + Sponsored Program

Non-statistical Project Definitions and WBS Elements from above

(converted to new Project Definitions and

WBS Elements)

Low-Level Funded Programs (24 digits

1:1 with Project Definition or WBS Element Created automatically using transaction FMMDAUTO (FM: Auto. Creation of Master Data), manual flexible hierarchy groupings

Assets (Steps 39,40)

To-Be Data Object(s)

Mapping Strategies Models Migration

Asset Master Records + Funds Center + Fund (ACFR Fund Groupings) + Business Area + Cost

Center + Functional Area + Grant + Internal Order + WBS Element

Asset Master + Cost Center + Fund + Functional Area

(appropriation) + Responsible Cost

Center + Profit Center + Grant + Internal

Order + WBS Element

Automatic (most fields) / Manual Profit Center (multiple lines of business) updating

ETL data table Standard Fixed Asset migration objects (staging tables) or SDT

Populations to be Migrated

1. Table 3 includes the estimated number of As-Is and To-Be financial data structures and other relevant information to be migrated from the State’s SAP ECC AASIS system to the new S/4HANA system. Currently active estimates (if attainable) are shown in parentheses and are relevant (instead of the initial historical estimates) for migrating data using a greenfield approach

TABLE 2 - ESTIMATED POPULATIONS OF DATA TO BE MIGRATED

As-Is Data Object(s) As-Is Population To-Be Data

To-Be Population

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General Ledger Account (10 digits)

[SKA1, SKAT, SKB1] +

Cost Element

(10 digits)

[CSKA, CSKB, CSKU]

Approx. 3,000 not blocked or marked for deletion

Approx. 2,000 not blocked or marked for deletion

General Ledger Account

(10 digits)

(Approx. 3,500 not blocked or marked for deletion)

Commitment Item (up to 14 digits, fiscal-year dependent)

[FMCI, FMCIT]

3,422 (149 in fiscal year 2024)

Commitment Item (up to 10 digits, not fiscal-year dependent)

Approx. 3,500 - 1:1 with G/L Accounts not blocked or marked for deletion

Approx. 105 character-level control in fiscal year 2024

ACFR reporting groupings [ACFR, including non-major activities]

Approx. 25 Segment

(10 digits) Approx. 25

Fund + Business Area (ACFR Fund Groupings)

[ZMFB_FUND]

129, 843 total entries (16,029 entries in 2022)

Profit Center (10 digits)

Approx. 400 – 500 (approx. 300 - 350 for 2022)

Fund (7 digits)

[FMFINCODE, FMFINT]

16,942 (4,475 valid to 6/30/2024)

Fund (10 digits)

16,942 (4,475 valid to 6/30/2024)

Functional Area (3 or 4 digits) + Relevant Business Area

[ZBA_FA]

17 (SAP)

16 (ACFR)

(16 digits, high-level ACFR reporting) +

Profit Center

(need to be reorganized, properly structured and aligned with ACFR reporting, assigned as the initial default

Functional Area to all relevant cost objects based on the Profit Center assignment)

Functional Area (3 or 4 digits) + Relevant Business Area +

Cost Center + Internal Order + WBS Element

[based on ECC postings in BSEG] n/a

(16 digits, low-level agency reporting) + Profit Center + Cost

Center + Internal Order + WBS

Element tbd (may add additional agency-specific Functional Areas that also need to be properly structured and aligned with ACFR reporting, as well as assigned the relevant S/4HANA cost objects)

Cost Centers (up to 10 digits)

[CSKS, CSKT]

44,579 (29,740 valid to 12/31/9999)

Cost Centers (10 digits) Approx. 15,000

(remove non-org) Funds Centers (10 digits)

Funds Centers 12, 512 Profit Center + Approx. 13,000

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(3 - 7 digits) + Business Area

[FMFCTR, FMFCTRT]

(2,925 valid to 6/30/2024)

• There are 30 seven-digit Funds Centers (in 2007 and 2010) that would need to be revised to six-digit codes for migration of historical information o The sixth digit for all of these is a zero “0”, which could be removed for S/4HANA

Funded Program (24 digits, high-level)

(Approx. 3,300 valid to 6/30/2024)

Cost Centers + Internal Orders (up to 12 digits) + Fund (ACFR Fund Groupings) + Business Area + Grant [AUFK, all order types except AS01, IB01, IT01, SM01, ST01, and WP01]

Approx. 34,000 (Approx. 27,500 not closed or completed)

Responsible Cost Center + Requesting Cost Center + Fund (appropriation) +

Grant + Profit Center + Internal

Order (12 digits)

Approx. 178,000 (Approx. 155,000 not closed or completed) [estimates = 2 x actuals]

Cost Centers + WBS Elements

(statistical, up to 14 digits without separators) + Fund (ACFR Fund

Groupings) + Business Area + Grant

[PRPS]

54,901 (Approx. 50,000 not technically completed)

Internal Orders / Statistical WBS Elements

85,901 (Approx. 77,500 not completed)

Low-Level Funded Programs (24 digits, automatically created from

S/4HANA Internal Orders using transaction

FMMDAUTO)

Approx. 178,000 (Approx. 155,000 not closed or completed) [estimates = 2 x actuals]

Maintenance Orders (9 digits) + Fund (ACFR Fund Groupings)

+ Business Area + Cost Centers

[AUFK, order types AS01, IB01, IT01, SM01, ST01, and WP01]

Approx. 35,000 (Approx. 20,000 active, not closed or completed)

Cost Center + Fund (appropriation) +

Profit Center + Maintenance Order

(1:1)

Approx. 35,000 (Approx. 20,000 active)

Project Definitions + WBS Elements (non-statistical, up to 14 digits without separators) + Fund (ACFR Fund

64,965 (approx. 60,000 not technically completed)

Project Definitions + WBS Elements

(12 digits) + Profit Center +

64,965 (approx. 60,000 not technically completed)

- 24 - 3/8/2024

Groupings) + Business Area + Cost Centers + Functional Area + Grant

[PROJ, PRPS]

Responsible Cost Center + Requesting Cost Center + Fund (appropriation) + Functional Area +

Grant

Low-Level Funded Programs (24 digits, automatically created using transaction

FMMDAUTO)

64,965 (approx. 60,000 not technically completed)

Asset Master Records + Funds Center + Fund (ACFR Fund Groupings) + Business

Area + Cost Center + Functional Area + Grant +

Internal Order + WBS Element

[ANLA, ANLZ)

789, 492 asset masters (approx. 220,000 active asset masters)

Asset Master Records (1:1) + Cost

Center + Fund (appropriation) + Responsible Cost

Center + Profit Center + Functional

Area + Grant + Internal Order +

WBS Element

Approx. 35,000 (Approx. 20,000 active)

Transition implications for each implementation approach

1. Brownfield implementation

a. Vendors and customers would need to be migrated to business partners in the AASIS system

b. ECC New General Ledger migration of the AASIS system

i. Performed at the beginning of the fiscal year

ii. All data would be migrated using the standard ECC New General Ledger migration process

iii. Document splitting and balancing would need to be updated to also include Segment, Profit Center, Grant, and Expense/Revenue Account (for cash flow reporting)

1. Summary Fund Accounting information in the Special Purpose Ledger would need to be manually balanced by Segment, Profit Center, Fund, Grant, and Expense/Revenue Account (for cash flow reporting)

a. Balancing entries manually created in the General Ledger

i. Fiscal year beginning balances

2. Open items supplemented for document splitting fields

a. Line item defaults required if multiple account assignments are used

- 25 - 3/8/2024

b. Beginning balance adjusted for impact of multiple account assignments defaults

c. All data would be migrated using the standard S/4HANA data migration process

i. S/4HANA migration is possible during the fiscal year

d. No historical data transformation would be possible

e. Revised, newly structured master data structures would be created and mixed with existing master data structures

f. Significant complexity managing historical vs. new data

i. Heterogenous data structures and groupings with overlapping master data structure numbering

ii. Customization duplication

2. Data redundancy (Special Purpose Ledger) Selective data transformation implementation

a. Migration is possible during the fiscal year

b. Vendors and customers would need to be migrated to business partners in the AASIS system

c. All AASIS data structures relevant for the historical data to be migrated would need to be mapped to / migrated as S/4HANA data structures for migration purposes

d. All or a subset of historical data would be migrated

i. AASIS data would be migrated to S/4HANA via direct table updating using the selective data transformation tool

1. Fund Accounting information in the Special Purpose Ledger would be migrated to the General Ledger using the selective data transformation tool

2. Automatic balancing of the General Ledger by Segment, Profit Center, Fund, Grant, and Expense/Revenue

Account (for cash flow reporting) would be done by fiscal year and month using the selective data transformation tool

ii. Migrated data would be updated for the relevant S/4HANA data structures by the selective data transformation tool based on the mapping files

e. Simplified, consistent data structures

i. Homogenous data structures and groupings with no overlapping master data structure numbering

ii. No duplication of customizations

iii. No data redundancy (no Special Purpose Ledger)

3. Greenfield implementation

a. Migration is best at the beginning of the fiscal year

b. Two options for migrating vendors and customers. One option would convert them directly into S/4HANA from an ETL

Mapping Table. Option two (preferred but would require implementing Enhancement Pack 8): copy production to a new system, implement EP8 and migrate vendors and customers to Business Partners in the copy of production to help cleanse the data, consolidate Business Partner Groups, and consolidate multiple roles into a single Business Partner, where possible.

c. Only currently active AASIS data structures would need to be mapped to / migrated as S/4HANA data structures

i. For example, funds would be considered active as long as they have an authorization group that is:

1. blank

- 26 - 3/8/2024

2. DOA1 with valid open items (e.g., outstanding warrants) that are not closed at cutover.

3. DOA2

d. Only beginning balances and open items are migrated

i. AASIS data would be extracted and cleansed

ii. Cleansed data to be loaded into S/4HANA would be updated for the relevant S/4HANA data structures using the data loading tool(s) based on the mapping files

iii. All postings would be automatically split and balanced by Segment, Profit Center, Fund, Grant, and Expense/Revenue Account (for cash flow reporting)

e. Simplified, consistent data structures

i. Homogenous data structures and groupings with no overlapping master data structure numbering

ii. No duplication of customizations

f. No data redundancy (no Special Purpose Ledger)

Organizational Change Management impacts

1. Table 34 documents the Organizational Change Management (OCM) impacts of transitioning from the As-Is to the To-Be Financial

Model

2. These OCM impacts can be mitigated using an account code “wizard”

a. Custom application that will allow end users to access the AASIS to S/4HANA data mappings

i. End users enter their existing AASIS account assignment(s)

ii. Provides end users with all relevant S/4HANA account assignments

1. With account assignments defaulted

a. From other master data

b. From substitution rules

2. With derived account assignments

a. Funds Management derivation rules

b. Grants Management derivation rules

b. Should also be used to validate the new S/4HANA data structures prior to migration

- 27 - 3/8/2024

TABLE 3 – ORGANIZATIONAL CHANGE MANAGEMENT IMPACTS

As-Is Data Object(s)

To-Be Data Object(s)

Organizational Change Management Impacts

General Ledger Account

(10 digits) + Cost Element

(10 digits)

General Ledger Account

(10 digits)

• Separate Cost Elements are no longer created o CO information is updated directly on relevant General Ledger Accounts

• Restructured and updated o Simplify groupings o Integrate CO information o Enable automatic reconciliation of budgetary, modified accrual, and full accrual accounting bases

• New flexible reporting groupings

Commitment Item (up to 14 digits)

Commitment Item

(up to 10 digits)

• No longer fiscal year-dependent o Not required to be created every year

• Most Commitment Items 1:1 with General Ledger Accounts o No longer manually assigned to the General Ledger Account master data o Derived 1:1 with the General Ledger Account with some exceptions (e.g., capital outlay) o Can be created/updated automatically using transaction FMMDAUTO (FM: Auto. Creation of Master Data) o Provides detailed budgetary reporting of fund balance, revenues, expenditures, other financing sources, and other financing uses

• Other required Commitment Items o Created manually o Character=level Commitment Items grouped in the standard hierarchy with relevant Commitment Items to enable high-level budget control o Budget Only Commitment Items will be alphanumeric and will not be included in FMDERIVE as a target commitment item (which will prevent consumption) o Budget transfer consistency checking validations to prevent unauthorized budget transfers between character-level Commitment items

• Statistical Commitment Items o No longer used for budget-relevant items (e.g., revenue) o Used to identify non-budget relevant fund balance, revenue, expense, other financing source, other financing use differences for automatic reconciliation of the budgetary, modified accrual, and full accrual bases of accounting

• New flexible reporting groupings

General Ledger Account

(10 digits) + Cost Element

(10 digits)

Sponsored Class (up to 20 digits)

• New 20-digit structure

• Structured to enable grant-related budgetary reporting and control by classification of revenue or expenditure

• Defined based on external sponsor requirements

• Derived during posting with automatic Funds Management vs. Grants Management budget reconciliation o Commitment Items

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Object(s)

To-Be Data Object(s)

Organizational Change Management Impacts

Commitment Item (up to 14 digits)

• New flexible hierarchy groupings

Fund (ACFR Fund Groupings)

Segment

• New 10-digit field (configuration) o Replaces the ACFR Fund Groupings

▪ Standard ACFR integration

• Fully-balances financial statements by Segment

• Flexible reporting groups o Segment Global Hierarchies

• Defaults from Profit Center o Must be properly assigned to the relevant Profit Centers prior to posting

• Flexible reporting groupings

Fund (ACFR Fund

Groupings) + Business Area

Profit Center

• New 10-digit field (master data) o Incorporates the ACFR Fund Groupings

▪ Aligned with / assigned to the relevant Segment

▪ Begins with the first two digits of the Segment o Replaces the Business Area

▪ Includes the four-digit Agency code as the third thru sixth digits

▪ Full financial statements by Agency

▪ Flexible reporting groups

• Flexible reporting groups o Profit Center Global Hierarchies o Profit Center Groups

• Assigned to (and default from) other account assignments o Cost Centers o Orders

▪ Internal Orders

▪ Maintenance Orders

▪ Sales Orders o Project Structures o Asset Masters o Material Masters o House Bank Accounts

• Entered for balance sheet accounts o If not defaulted from other account assignments o If not determined through automatic document splitting/balancing

• Flexible reporting groupings

• Future SAP for Public Sector functionality (if made available by SAP)

- 29 - 3/8/2024

Object(s)

To-Be Data Object(s)

Organizational Change Management Impacts o Reorganization of Profit Centers

▪ Transferring of existing account assignments to new Profit Centers

▪ Postings to adjust the results of transfers between Profit Centers

Application of Funds

(up to 16 digits) No longer used • No longer used

Fund (7 digits)

Fund (10 digits)

• Field size increased from seven to 10 digits o First seven digits of the S/4HANA Fund will be the AASIS Fund o Last three digits of the S/4HANA Fund will be zero-filled

• Directly entered instead of defaulting from other account assignments o No longer derived from Cost Centers or WBS Elements

• The assigned Customer for Fund may become a new Business Partner customer number if changed during the Business Partner migration

• New flexible reporting groupings

Grant (20 digits)

Grant (20 digits)

• Full integration and use of the SAP Grants Management – Grantee component o Grant-related master data will be centrally managed for proper integration and use

• Restructured Grant o First digit of the S/4HANA Grant will identify the type of grant funding o Last 19 digits of the S/4HANA Grant will be structured to enable simplified agency-specific identification and use

• Non-project grant funding o Grant will be derived from grant-related Internal Orders

• Project-related grant funding o Grant will be entered directly

• The assigned Customer for Fund may become a new Business Partner customer number if changed during the Business Partner migration

• New flexible reporting groupings

(up to 4 digits)

(16 digits)

• Created as master data instead of configuration

• Field size increased from three – four digits to 16 digits o High-level Functional Areas will be restructured and properly aligned with ACFR reporting, zero-filling unused digits o Lower-level Functional Areas to be created for agency-specific purposes, as required, zero-filling unused digits

• Initially defaulted from other account assignments o Functional Areas will be able to be directly entered for agency-specific purposes during posting, as required

• New flexible reporting groupings

Cost Center (up to 10 digits)

Cost Center (10 digits)

• Only used for organization-based structures o Aligned with organizational units

▪ Structured based on agency reporting requirements o 1:1 with Funds Centers

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Object(s)

To-Be Data Object(s)

Organizational Change Management Impacts

▪ Allows organization-based budgetary reporting

• No longer includes (nor derives) funding o Fund o Appropriation

• No longer assigned to Business Areas o Assigned to 10-digit S/4HANA Profit Centers, which includes agency code

• Assigned to restructured 16-digit Functional Areas o High-level Functional Areas restructured and properly aligned with ACFR reporting, o Lower-level Functional Areas to be created for agency-specific purposes, as required

• No longer used in conjunction with statistical Internal Orders and WBS Elements o Assigned to non-statistical Orders and WBS Elements

▪ Responsible Cost Center

▪ Requesting Cost Center

• New flexible hierarchy groupings

Funds Center (3 - 7 digits)

Funds Center (10 digits)

• No longer used for Appropriations

• Used for organization-based structures o 1:1 with Cost Centers

▪ Created automatically from Cost Centers using transaction FMMDAUTO (FM: Auto. Creation of Master Data) o Aligned with organizational units

▪ Structured based on agency reporting requirements

▪ Allows organization-based budgetary reporting

• No longer assigned to Business Areas

• New flexible hierarchy groupings

Internal Order (statistical, up to

12 digits)

Internal Order (non-statistical, 12 digits)

• WBS Elements no longer…