Business Services
UW SHARED FINANCIAL SYSTEM (PEOPLESOFT) IMPLEMENTATION
Background
The University of Wisconsin System has been actively in search of best business practices since 1995. One concentrated area of review has been financial systems, with the goal of identifying the most efficient and cost effective strategy for configuring and managing these systems. The current UW legacy system is a cash-based system, recording only revenue and expenditures. Generally accepted accounting principles for colleges and universities require accrual-based accounting. Thus, the current system does not meet our systemwide financial reporting responsibilities. A committee of systemwide representatives after surveying other multi-campus systems identified a shared software approach as the Best Business Practice for Financial Systems. PeopleSoft continues to have an increasing presence in the higher education financial software arena. As a result of the significant commitment across the UW System to PeopleSoft Student Information Systems, they became the vendor of choice.
The new system design has been limited to accommodating current processes to the extent possible within the delivered software. This is based on industry experience that shows that the cost of product upgrades increases significantly as local customizations increase. Thus, internal business processes should be re-engineered to work with the SFS rather than modifying SFS to work with current business processes. Compelling business needs must be identified for any change to be incorporated into the software code as originally delivered.
Implementation
Effective with fiscal year 2001 (beginning July 1, 2000), UW-Extension began operating with a new integrated suite of core financial system software (PeopleSoft) shared with other UW institutions. This new Shared Financial System (SFS) replaces the current legacy system maintained by the University Processing Center (UPC) and shared by seven (7) UW institutions (Extension, Madison, Milwaukee, Parkside, Green Bay, Colleges and System). UW-Madison will not implement the new system until fiscal year 2002 or later.
Using a systemwide phased in approach, the PeopleSoft General Ledger (GL); Accounts Payable (AP); and Purchasing (PO) Financial modules were all prototyped and implemented by UW-Platteville and UW-Whitewater on July 1, 1999. UW-Milwaukee was also involved in prototyping the AP and PO modules and UW Colleges the PO module for implementation on July 1, 1999. UW-Extension was selected as the pilot institution to prototype and implement Billing and Accounts Receivable (BI/AR) modules. The UW-Extension Business Services-Cashiers Office successfully implemented the BI/AR modules on February 1, 2000. The primary responsibility for the UW-Extension implementation of the GL, AP, and PO modules has also been assigned to Business Services staff in Accounting Services, Extramural Support, and Purchasing.
Operational and Procedural Changes
Accounting Code Structure
In SFS the individual fields in the accounting structure are called chartfields. The chartfields in SFS are essentially the same as the accounting codes used in the legacy system. The few differences are:
- The U (unit) part of UDDS is no longer needed because data is already segregated by University Business Unit. So, the SFS organizational code consists of D (division) D (department) and S (sub-department) only.
- New terminology is used for some of the chartfields.
- Some of the legacy system object class codes have been combined into one SFS Account code. Thus, there are fewer codes in SFS. If more detailed tracking is needed, a new field called Sub Classification can be used at the discretion of each institution. Initially, this new field will have limited use.
- The legacy 4-digit Account number code is a 7-digit field in SFS called Project/Grant with the 3-digit fund number (i.e. 133, 143, 144 or 161) preceding the 4-digit legacy account number.
The coding crosswalk between legacy and SFS and field size is as follows:
| Legacy Code | SFS Chartfield |
|---|---|
| Unit (1) | None |
| Fund (3) | Fund (3) |
| Div-Dept-Sub/Dept (6) | Organization (6) |
| Activity (1) | Program (1) |
| Object Class (4) | Account (4) |
| Account (4) | Project/Grant (7) |
| Non | Sub Classification (5) |
Object Class / Account Code
There were a significant number of changes to the legacy class codes to convert them to SFS account codes. Crosswalks from legacy to SFS and SFS to legacy have been developed. Three work groups were established: one for expenses, one for revenue, and one for the new asset/liability/equity codes. These groups focused on updating existing code definitions and preparing expanded definitions for the new codes resulting from the combining of multiple legacy class codes. The account code manual on the Business Services web site provides a link to the account codes, crosswalks and definitions used in SFS.
External Requisitions
External requisitions should continue to be processed for the purchase of materials/services with a cost greater then $5,000 from a non-UW vendor. External requisitions will continue to be processed by the UW-Extension Purchasing Department and should result in the issuance of a formal Purchase Order (PO). The PO amount (not the requisition amount) will be encumbered. The PO number and requisition number will continue to be the same.
Internal Requisitions
Internal requisitions may continue to be processed to order materials/services from another UW-Extension department or from another UW institution. There are certain UW service units that have established alternative procedures not requiring the issuance of an internal requisition (these units are detailed later).
Note: Internal requisitions will not be encumbered under SFS. All payments will be processed as direct charges using the coding string specified on the requisition.
Low Dollar Orders (LDO)
The LDO form can continue to be used to order materials/services with a total cost not exceeding $5,000.
Purchasing Card
The UW-Extension Purchasing Card Program will not be changed under SFS. The Purchasing Card will continue to be the preferred means for purchasing materials/services that do not exceed $5,000 in total costs.
Payment to Individual Report (PIR)
The PIR form should continue to be used for processing fee and related travel payments to individuals who are independent contractors. An electronic template of the PIR form with the revised coding terminology is available on the Business Services web site (see PIR site).
Travel Expense Report (TER)
The TER form should continue to be used for processing employee travel-related expenses. An electronic template of the TER form with the revised coding terminology is available on the Business Services web site (see TER site) for use with fiscal year 2001 transactions.
Non-centrex telephone service
Effective with fiscal year 2001 internal blanket order requisitions should not be processed for non-Centrex (not associated with Madison-based Centrex phone service, i.e. 262, 263, etc.) telephone service. UW-Extension Business Services-Accounting staff will be handling the accounts payable for these services using a central purchasing card. A monthly allocation function will distribute the costs to the assigned coding string. Historically, the monthly billings for non-Centrex phone service have been sent to DoIT in UW-Madison for payment using the coding string associated with internal blanket order requisitions submitted by UW-Extension departments.
The Low Dollar Order (LDO) form should be used to order new or to change existing non-Centrex telephone service. UW-Extension Purchasing staff should be contacted before issuing the LDO. If there is a contract involved, it must be approved and signed by UW-Extension Purchasing staff.
Cellular Phones
A new DOA contract has been issued for Cellular Phone Service and is listed on the UW-Extension Purchasing Services web site. County establishes the contract vendor. Cell phone users must sign up for the service under this contract, using the State of Wisconsin Cellular Authorization Form for the appropriate vendor. All cell phone service must be paid for with a Purchasing Card. Please list your purchasing card information on the authorization form. The completed authorization form must be submitted to UW-Extension Purchasing for approval.
Materials/Services from UW-Extension Departments
Internal requisitions remain the primary means of ordering materials/services from another UW-Extension department except for a few departments as noted below. Fiscal year 2001 procedures for UW-Extension service departments are as follows:
Conference Centers
Departments may continue to request services from the Conference Centers using an internal requisition. The Conference Centers will submit an internal invoice to the "buying" department. An authorized signatory for the "buying" department should sign the invoice and enter the complete coding string to be charged and forward with any required documentation to UW-Extension Business Services.
Departments may elect to use their Purchasing Card to pay Conference Center invoices. The Conference Centers will submit a statement to the "buying" department when a Purchasing Card is provided in advance. If the service involves a "Sponsored Event" the required documentation should be attached to the Cardholder's purchasing log.
Instructional Communications Systems
Procedures for ordering and paying for Instructional Communications Systems (ICS) will not change for fiscal year 2001. An internal requisition should still be processed and forwarded through regular administrative channels.
Bulk Mail
Procedures for ordering and paying for Bulk Mail services will not change for fiscal year 2001 except that Bulk Mail no longer accepts internal requisitions. Services should continue to be requested using the Bulk Mail order form which requires coding string information to be provided. Charges will be processed as direct costs to the specified accounting coding.
Mail Services
Internal requisitions should not be processed for mail services for FY 2001. If there is no change to the coding string that was used on FY 2000 requisitions, no action needs to be taken - Mail Services charges will be made directly to that coding string. For any coding string additions or changes, contact Pat Emmons at 262-7659. Mail Services will provide department's bar-coded Mail Service charge slips similar to those currently used.
Materials/Services from UW-Madison Departments
Materials Distribution Services (formerly Stores)
All UW-Extension departments that order supplies from MDS next fiscal year must use an MDS customer account number (MDS Web site is http://www.bussvc.wisc.edu/mds/mds.html) that will be associated with a coding string. MDS will process monthly direct charges to each customer based on supplies ordered. Monthly statements will continue to be provided.
Physical Plant
Internal requisitions should continue to be used to order services from Physical Plant.
Only one coding string is allowed per requisition.
UW-Madison Car Fleet
Internal blanket order requisitions should no longer be used to order services from UW-Madison Car Fleet. The Car Fleet Authorization & Report form should be completed for each trip. Car Fleet will submit monthly charges against the coding string entered on the Car Fleet Authorization & Report form. Note: Although the form has Department Chair and Dean/Director signature lines they do not have to be completed, only the Driver is required to sign the form.
Transportation Services
Internal requisitions should continue to be used to order parking permits from Transportation Services.
Only one coding string is allowed per requisition.
Division of Information Technology (DoIT)
Centrex Telephones
The process for requesting additions, deletions and changes to Centrex telephone line service will not change. They should be initiated by processing an internal requisition.
Only one coding string is allowed per requisition.
Services
An internal requisition should be used to order computer-related services from DoIT.
Only one coding string is allowed per requisition.
Printing Services
To order printing services, the DoIT Printing Services order form should be completed using Billing Option 1 "UDDS code for direct chargeback". Internal requisitions should no longer be used to order printing services from DoIT Printing Services.
Material Purchases
Departments should no longer submit internal blanket order requisitions to pay for materials/supplies from DoIT. The Purchasing Card is now accepted by DoIT for all sales and is the preferred method to pay for purchases by UW-Extension departments.
DOA Car Fleet
Staff with personally assigned DOA fleet cars should continue to prepare fiscal year external blanket requisitions to cover the monthly DOA service charges.
For short-term DOA fleet car use, a Low Dollar Order form should be taken to the DOA Fleet Office when the driver picks up the car. DOA shows the LDO number on it's monthly billing to UW-Extension. Since DOA provides only one central billing to UW-Extension, Accounting Services staff must use the LDO number to determine the appropriate coding string to be charged.
Payroll Interface
UW-Extension payroll operations will continue through the UW Processing Center using the current legacy payroll/benefits system. In 1998 a UW System committee researched best business practices for Appointment, Payroll, and Benefit Systems (APBS). A contract was signed with Lawson Software, a nationwide leader in hman resources management systems. The first phases of the project are targeted for implementation in fiscal year 2004.
UW System is also working on a new payroll interface system, which will interface information from APBS to the Shared Financial System. The payroll interface system is an accounting tool to record how employee payroll transactions are coded and to record adjustments to salary and fringe expenses that occur after a payroll has been recorded. The payroll interface system will provide business units more control over posting salary/fringe data and a variety of ways in which to access data and manage payroll related fiscal activity. Business units will be able to modify salary coding prior to having it posted to the accounting system. Fringe coding will be automatically be re-allocated based on changes made to the salary coding. Salary and fringe data will be posted to the general ledger at a summarized level; salary and fringe detail data will reside in a subsidiary ledger. It is anticipated that the payroll interface system will be implemented during the second quarter of fiscal year 2003. Procedures for processing salary payment transfer forms will be revised to meet the requirements of the new system.
Additional Information
Additional information about the new Shared Financial System can be found on the Business Services Web site (/business-services/). Questions may be directed to Aggie Trzebiatowski (265-6787), Bob Price (262-1979) or Mark Dorn (262-5975).