City’s_Accounting_System_and_SAP_Structure_.pdf
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- Attached to
- Financial Reporting Software
- Solicitation number
- RFP 26-0035
- Issued by
- Maricopa County, Phoenix City, Arizona
About this file
This is a financial reporting software solicitation document issued by the City of Phoenix, Arizona for a five-year contract commencing January 1, 2027. The City seeks an integrated financial reporting software solution capable of developing a complete Annual Comprehensive Financial Report (ACFR) that integrates with the City's existing SAP accounting system, which operates four modules: Financial Accounting (FI), Controlling/Costing (CO), Project Systems (PS), and Funds Management (FM) across multiple company codes including PHX, COPR, DCP, SROG, VIST, CIC2, and PHFC. The software must support 12-20 concurrent multi-user collaborators, facilitate data migration from legacy systems, and include desktop publishing capabilities. A non-mandatory pre-offer conference is scheduled for March 12, 2026 at 10:00 a.m. via Webex. Written inquiries are due March 27, 2026 at 2:00 p.m., and sealed offers are due April 3, 2026 at 2:00 p.m. The contract includes one optional one-year extension available at the City's sole discretion, with a potential aggregate term of six years.
Qualified vendors must have been in operation for a minimum of three years and demonstrate experience implementing ACFR software solutions in large municipalities, supported by three comparable references or case studies. The evaluation process occurs in two phases: Phase 1 assesses method of approach, capacity, and experience across 15 criteria worth 900 points, while Phase 2 evaluates pricing proposals. Offerors in the competitive range must provide a 90-minute demonstration at a City-determined Phoenix location. All prices must be firm and fixed for the initial contract year, with subsequent annual price increases permitted upon written request with 60 days' notice and supporting documentation. The City offers prompt payment discount options including either a percentage discount at 30 days or net 45 days, or immediate payment upon invoice approval through the Single Use Account Program. Insurance requirements include Commercial General Liability with a $2,000,000 general aggregate limit, Workers' Compensation statutory coverage, and Technology Errors and Omissions Liability with limits of $1,000,000 per claim and $1,000,000 annual aggregate. The solicitation does not identify an incumbent vendor. Contractors must comply with federal and local civil rights requirements and Disadvantaged Business Enterprise requirements under 49 C.F.R. Part 26, which mandate prompt payment to subcontractors within seven days of receipt of payment from the City. Vendors must complete a Vendor Security Maturity Questionnaire within seven days of notification and submit a complete Certificate of Insurance within 14 days of award recommendation. Federal certifications including Tax Liability Certification and potentially Debarment and Suspension Certification and Lobbying Certification are required for all offerors.
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City’s Accounting System and SAP Structure
The purpose of municipal governmental accounting is to provide complete, accurate and timely financial information in proper form to the people responsible for and concerned with the operations of the City. Management, at all levels, relies on financial information for daily decision making and for planning future operations. Budgeting, both in its preparation and execution phases, is dependent upon the availability of correct and properly classified financial data generated by the accounting system. Governmental operations must comply with various legal provisions. The accounting system provides management with the results of financial operations so that this determination can be made in an effective and timely manner. Other principal groups of persons are the general public, investors, investment brokers, bond rating services, other governmental units, educational and research organizations, and individuals whose professional activities include the study and improvement of public financial administration. Their interests and decisions are dependent upon the financial information produced by the municipal accounting system.
The SAP system is an integrated database, which is linked to many different modules (reporting areas) throughout the City. Financial Accounting uses four modules to input, sort and generate reports as shown below. Also, the hierarchy of data and use of data is different depending upon what SAP module you are working in.
SAP MODULE #1 PURPOSE / DESCRIPTION
FI - Financial Accounting External Financial Reporting
Company Code Legal reporting entities, see list included below
Business Area 4 digits - Captures detailed financial transactions for external (generally accepted accounting principles - GAAP) financial reporting.
General Ledger (G/L) Account 6 digits - Captures detailed financial transaction information. Same codes and descriptions as Commitment Items in FM and Primary Cost Elements in
CO.
SAP MODULE #2 PURPOSE / DESCRIPTION
CO - Controlling (Costing) Operating Cost Accounting
Controlling Area Cost accounting activity structure.
Cost Center (Expenditure) 10 digits - Generally starts with two-digit department number, then may be further divided into two-digit division, section, activity and sub activity.
Primary Cost Element 6 digits - Captures detailed financial and cost accounting transaction information. Same codes and descriptions as G/L Accounts in FI and Commitment Items in FM.
Secondary Cost Element 6 digits - Used for work order charges, cost allocations and settlements. Assigned to the 900000 - 999999 range. Not included in the G/L Accounts.
Profit Center (Revenue) 10 digits - Generally starts with two-digit department number, then may be further divided into two-digit division, section, activity and sub activity.
SAP MODULE #3 PURPOSE / DESCRIPTION
PS - Project Systems Capital Projects Funds Cost Accounting
Controlling Area Cost accounting activity structure.
Project 10 digits - The first two digits are alpha characters representing the department, next four characters represent organizational structure, remaining numbers assigned sequentially for each department.
WBS Element 10 digits - Linked to project number. Some have additional characters at the end indicating phase type (e.g., L = land, A = acquisition, P = pre-design, D = design, C = construction, W = warranty). This classification element allows grants and capital projects to be accounted for as separate entities for control and special reporting purposes.
Primary and Secondary Cost Elements See descriptions above.
SAP MODULE #4 PURPOSE / DESCRIPTION
FM - Funds Management Budgetary Accounting
Application of Funds 3 digits - Identifies high-level funding source for financial and cost accounting transactions.
Fund Usually, 4 digits - Identifies detailed funding source for financial and cost accounting transactions.
Funds Center 10 digits - Linked to organizational structures. Many
Funds Centers contain the 2-digit department, division and section numbers and may also be further identified by activity and sub-activity. However, the Funds Center should be verified in SAP as exceptions to this rule exists.
Commitment Item 6 digits - Captures detailed financial and cost accounting transaction information. Same codes and descriptions as G/L Accounts in FI and Primary Cost Elements in CO.
Subdivision of departments into divisions, sections, activities or sub activities is not mandatory. The level of classification depends on the individual requirements of each department. Most SAP Cost Centers and Profit Centers follow the organizational structure below. However, Gift Funds, Trust Funds and other specialized funds may follow a different structure.
General Ledger Accounts are grouped by the following ranges:
100000 - 199999 (Assets) 200000 - 299999 (Liabilities) 300000 - 399999 (Fund Equity) 400000 - 499999 (Revenues) 500000 - 599999 (Expenditures) 600000 - 699999 (Other Sources / Uses of Funds - including transfers) 700000 - 799999 (GAAP adjustments)
Company Codes Reporting Entity PHX Most transactions will be made to PHX (main operating entity) COPR City of Phoenix Employees’ Retirement Plan DCP Deferred Compensation Plan SROG SROG joint venture VIST Val Vista joint venture CIC2 Civic Improvement Corporation PHFC Phoenix Housing Finance Corporation
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