HopkinsOneBPFIGLBlueprint

9.4 GENERALLEDGERACCOUNT 9.4.1 Overview

Various subledgers and other modules in the integrated SAP environment update the General Ledger (GL)module.TheGLareaisresponsibleforthemasterdataobjects:BusinessArea,ChartofAccounts, transaction data: journal entry types, accruals, open item managed accounts, foreign currency transactionsandotherkeyprocessessuchasmonthendandyearendclosing,fiscalyearcarryforward andinterfacereconciliation. TheGeneralLedgerBlueprintDesignincludesallfacetsofrecording,classifyingandmanagingfinancial transactionswithinSAP.AseriesoffocusedDesignSessionswereconductedinthefollowingareas:

BusinessAreaTodefinethoseenterpriseorganizationalentitiesthatrequirebusinessarea
functionalityanddeterminealogicalschemafornumbering.

ChartofAccountsTodefinethelistingofGeneralLedgeraccountsthattheenterprisewill
requiretorecordbusinesstransactionsanddeterminealogicalschemafornumbering.

JournalEntriesTodiscussthevariouswaysfinancialtransactionswillbepostedinSAPand
identifydocumenttypesnecessarytoclassifythosetransactions.

OpenItemManagementTodiscussthestrategyformanagingopenitemswithinSAP. ForeignCurrencyTodiscussSAPfunctionalitywithinthescopeoftheHopkinsOneproject. FiscalYearandPostingPeriodsTodefinethepostingperiodswithintheenterprisefiscal

yearanddiscusstheuseofSAPsspecialpostingperiodstofacilitateGLclosing.

GeneralLedgerClosingTodiscussthesequenceofeventsthatarerequiredtoclosethe
GeneralLedgerwithinSAP.

9.4.2 DetailedFunctionalScope
SeeBusinessProcessMasterListinappendixCfordetailedfunctionalscope.

9.4.3 BusinessRequirements
SeeRequirementsinappendixDfordetailedrequirements.

9.4.4 Questions&Answers
SeeappendixHforQuestionsandAnswers

9.4.5 LeadingPractices
ThefollowingleadingpracticeswerediscussedaspartoftheoverallBusinessBlueprint.Listedbeloware theleadingpracticesthathavebeenincorporatedintothedesign.
9.4.5aIncorporationofLeadingPractices

Description
ConsolidateandmaintainoneChartofAccounts. Useastandardized,intelligentnumberingschemetoclassifyaccounts. MaintenanceoftheChartofAccountsiscentralizedtoensureintegrityoftheintelligentnumberingschemeand accountstrategy. Theaccountcodenumberingschemeconsistsofthelowestlevelofdetailnecessarytomeetthevariousreporting

Adoption
Yes Yes Yes Yes

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Description
requirementsofanorganization. Onlycomplete(debit=credit)documentscanbeposted.SAPwillnotallowpostingofunbalanceddocumentsin thegeneralledger. Minimizetheuseofsuspenseaccountstoautobalanceentries. Autocreateintercompanyaccountsreceivableandpayable. Performmonthlyandannualclose Developandcommunicatecomprehensivemonthlyandannualclosingschedules Establishapreclosemeetingearlyintheclosingcycletodiscussanyunusualresultswithmanagementand auditors Establishmonthlycutoffstofacilitatetimelymonthlyclosings Closingshouldbecentrallycontrolledandmanagedtoensurethatallstepsarecompletedtimelyandinsequence Practiceyearendclosingstepswellinadvanceofyearendwithproductiondatainatestingenvironment ClosingscheduleincludestheclosingofallmodulesandtheclosingshouldbecontrolledbyFinance AlladjustingentriesshouldbepostedintheERPsystem Systemshouldallowextendedperiodsforadjustingentriestobeposted. Allledgersandsubledgersshouldbeupdatedrealtimesimultaneouslytoeliminatereconciliationissues. Transactionsshouldbeenteredatthelowestlevelnecessarytomeetenterprisereportingrequirements. Transactionsshouldbeenteredatthepointoforiginwithintheenterprise.

Adoption
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

9.4.6 ToBeDesign(SubProcess)
Thefollowingsubprocessesarediscussedfurtherinthissection:

ChartofAccounts JournalEntries OpenItemManagement FiscalYearandPostingPeriods GeneralLedgerClosing ForeignCurrency GeneralLedgerSecurity 9.4.6.1 Subprocess1ChartofAccounts 9.4.6.1.1 Overview
General Ledger (GL) accounts are the structures that classify debit and credit values for accounting transactionsintheSAPFinancials(FI)moduleandformthebasisforcreatingfinancialstatementsand fulfillingotherregulatoryreportingrequirements. In order to properly use the FI functionality, GL accounts must represent types of financial postings (assets,liabilities,equity,revenues,expensesandtransfers)andarecreatedatthelowestpossiblelevel tocapturefinancialinformation,bothforinternalandexternalreconciliation,analysisandreporting.The datapostedinvariousGLaccountscanbegroupedtogetherusingGLreportinggroupsforhigherlevel reportingwithintheSAPSpecialLedger(SL)module.
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TheGLaccountscreatedforJohnsHopkinswillbecategorizedbyrecommendedbestbusinesspractices andresultfromfeedbackobtainedfromGLMasterDataDesignSessions.EachoftheGLaccountswill be assigned to a GL Account Group.GL AccountGroups will help determine the number rangeforGL accounts, categorize the accounts within logical categories, provide security for management of GL accounts and determine suppress, display, optional and required fields within each GL account master data screens. The numbers for GL accounts will be sequentially assigned by the system within the parametersandpredefinedrangescontrolledbytheGLAccountGroup.ThefieldlengthforGLaccount is10characters.TherecommendedconfigurationoftheGLaccountmasterrecordsforJohnsHopkinsis 6numericdigitsasrepresentedinthetablebelow
9.4.6.1.1aConfigurationofGeneralLedgerAccounts

GeneralLedgerAccountNumberRanges
Assets: Liabilities: Equity: Revenues: Expenses: Unassigned: 100000199999 200000299999 300000399999 400000499999 500000599999 600000699999 700000799999
1

Numberattributes

Six(6)digitnumericonlyexternally generatedlogicalnumbering Numberranges(firstdigit)definedfor majorfinancialstatementcategories Additionaldigits(second,third,)are definedforfurtherbreakdownswithin majorfinancialstatementcategories whereappropriate.

FundBalance/NetAssetTransfers:

ConversionItems:800000899999 SecondaryCostElements : 900000999999 SecondaryCostElementsarecreatedandmaintainedin theCOmodule.Thislistingrepresentsthereservationof thenumberrangeforthatpurpose.

ThestandarddatarequirementstoestablishaGLaccountinSAPareasfollows:
9.4.6.1.1bStandardSettingsforMasterData

DateFields
GeneralLedgerAccountNumber CompanyCode AccountGroup P&LorBalanceSheetAccount GLAccountShortText GLAccountLongText AccountCurrency FieldStatusGroup* CommitmentItem

Comments
XXXXXXdigitnumber CompanyCodeJHENdefaulted ClassifyGLaccountsintocategoriesforauthorization andnumberrangecontrols. DefinesiftheGLaccountisaP&LorBalanceSheet account. DescriptionofGLaccountusefultoidentifytheaccount usingmatchcode,lookuporsearch. DetaileddescriptionofGLaccount AccountCurrencyUSDwilldefaultfromCompanyCode Helpsidentifytypesoffieldsthatarerequiredon documentsinSAPwhenpostingusingtheGLaccount. CommitmentItemsclassifythebudgetaccordingto functionalcriteria.

*Field Status Group suppresses, displays, and requires entry or makes entry optional based on GL accounts.

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9.4.6.1.2 ProcessFlow
The maintenance of the Chart of Accounts will be a centralized function. The following process flow depictsGLaccountcreation.
Figure9.41GLAccountCreation

NewGLAccount isrequested.

GLAccount requestis reviewed.

Createandlink Commitment ItemsandCost Elements.

Requestoris notified.

No

GLAccountis approved?

SLConfigurationis updated.

Yes Derivationrules areupdated. GLAccount Masteriscreated. GLReporting Groupsare updatedinSL.

Requestoris notified.

Account Assignmentis updatedforall relevantSAP modules.

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9.4.6.1.3 InputsandOutputs
9.4.6.1.3aInputsandOutputs

InputtotheProcess
RequestfornewGLaccount GLaccount

OutputtotheProcess
NewlycreatedGLaccount GLaccountvalidationfile(3 partysystems) Derivationrules CostElementsforP&Laccount Commitmentitems
rd

9.4.6.1.4 OtherConsiderations
TherearenootherconsiderationsnotedforChartofAccounts.

9.4.6.2 Subprocess2JournalEntries 9.4.6.2.1 Overview

TheJournalEntryprocesswithintheGeneralLedgerincludestransactionspostedthatarenotoriginated inanSAPsubledger(A/P,A/R),torecordauditadjustments,adjustmentpostingstocorrectpreviously posted transactions, reversal of documents and certain recurring transactions and interface postings. SAP creates a document for each transaction posted in the system. Unique transaction codes are maintainedinthesystemtoprocessjournalentryandaccruals.Followingare somedataattributesthat willberequiredtoprocessajournalentryinSAPsystem.

GLAccount(Required) Commitmentitem(DerivedfromGLaccount) BusinessArea(DerivedfromCOobjectorenteredmanually) Fund(MaybederivedforJHHS) FunctionalArea(Derived) CostCenter/InternalOrder/WBSElement(OptionaldependingontypeofGLaccount

processed.i.e.P&L)

FundCenter(Derivedfromcostcenter) Grants(DerivedfromCOobject) FundedProgram(DerivedfromWBSelement) NetworkfromCOobjectordefaulted) DocumentTypes

Documenttypesdifferentiatebusinesstransactionsandcontroldocumentsorting.Keyusesofdocument typeswithinSAPinclude:

Anumberrangefordocumentsisspecifiedbasedoneachdocumenttype.Onenumberrange
canbeusedforseveraldocumenttypes.DocumenttypesaredefinedwithineachSAPmodule fortheentireenterprise(companycodelevel).

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Documenttypecanbeassignedtoanauthorizationgroup.Thus,JHcanusedocumenttypesto
controlthesecurityonpostings.

Documenttypesassistinreporting.
ThefollowingdocumenttypesarecurrentlyidentifiedspecifictotheGeneralLedger:
9.4.6.2.1aGeneralLedgerDocumentTypes

SAPDocTypes
SA ZF AB AI ZH ZU

DescriptionofBusinessAccounting Events
JournalEntryDocumentType ForeignCurrencyJournalEntryDocumentType ReversalEntryDocumentType AccrualPostingDocumentType InterfaceDocumentTypeforJHHS InterfaceDocumentsTypeforJHU

DocumentNumberRange
10000000001099999999 10000000001099999999 17000000001799999999 10000000001099999999 10000000001099999999 10000000001099999999

In addition to the General Ledger specific document types, document types will be defined for the followingareaswithinFI:

Accountsreceivable Accountspayable Assetaccounting Consolidation MaterialsManagementandSalesandDistributionfor:Goodsreceiptandissue,Incomingand

outgoinginvoices

Invoicing TravelManagement HR/Payroll DocumentReversals

If a document has to be reversed, the document can be reversed through automated SAP reversal transactionsandanewdocumentcanbeentered.SAPneverdeletesadocumentfromthesystem.A documentcanbereversedonlyifthefollowingconditionsaremet:

Containsnocleareditems Containsonlyvendor,customer,orG/Llineitems WaspostedwithintheFIsystem Values,suchasbusinessareas,costcenters,andfundarestillvalidwithinSAPmasterdata

environment The reversal of accrual documents (documents entered this month and reversed next month) will be processedwithaSAPreversaltransactioncode. Whenadocumentisreversed,theuserwillhavetoprovideareasoncodeforthereversalforreporting andauditpurposes.TherearestandardreasoncodesprovidedinSAP.Enterprisewidereversalcodes
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willbeestablishedifrequiredinconfiguration.WhenanewSAPreversaldocumentisgenerated,theuser can drill down to the original documentfrom the reversal document. Document date, posting date, user information and system data entry date will be maintained as an audit trail. Within General Ledger documentreversalfunctionalitywillbeusedonasneededbasis.

GLTransactionPostingHelp
Multiple techniques and mechanisms exist within SAP to facilitate the posting process, simplifying data entryfortheuser.Someofthetechniquesdiscussedduringthesessionsarenotedbelow.

MatchCodes
SAP provides users with help to identifyfieldvalues through the match code search screen. Matching criteria details differ by field attribute. The user can also search within match code field utilizing wild cards.Forexamplewhilesearchingina610xxxseriesGLaccount,ausercantype610*inthe search fieldandthesystemwillreturnalistcontainingall610xxxseriesofaccountnumbers.

ParkandHoldDocument
The user can use preliminary postings to enter and store incomplete documents in the system. Preliminary postings do not update any data in the system, such as amounts. The two types of preliminarypostingsare:

ParkedDocument HoldDocument
Parked documents provide the user with the ability to create a posting document, save it to facilitate additionalprocessessuchasmanagerapprovalpriortoposting.Parkeddocumentscanbepostedeither individuallyorviaalist.Whenpostingseveralparkeddocumentsviaalist,thesystemissuesalistthat details each parked documents disposition, detailing a reason if the document could not be posted. Shouldaparkeddocumentrejectuponposting,thelistcanbeusedtofacilitatecorrection.Abatchinput (SAPs ability to process multiple documents simultaneously.) session can be created from the list to subsequently post the parked documents. Parked documents data is stored in a separate table from standardpostingdata.Whenaparkeddocumentisactuallyposted,thedatafromtheparkeddocumentis deleted from the parked documents database. The document data is then written to the standard documentspostingdatabaseandthe appropriatedataisupdated.Parked documentscanbe selected forreportingpurposesandtheirstatusshouldbeevaluatedaspartofthemonthlycloseprocess. Holddocumentsareuserdefinedandmanaged.Theyareintendedtobetemporaryinnatureofferingthe user the ability to save incomplete documents when necessary. Workflow functionality can not be configured for hold documents. Hold documents can only be displayed and posted by the user that createdthem.Holddocumentsshouldbeclearedaspartofthemonthlycloseprocess.

RecurringDocuments(alsoknownasRecurringEntries)
Recurring entries are business transactions that are repeated regularly, such as rent or insurance expenses.ThefollowingdataneverchangesinrecurringdocumentsinSAP:

PostingKeys GLAccounts LineItemAmounts

Whencreated,theRecurringDocumentitselfdoesnotposttheaccountingentrycontainedwithinit.The RecurringPostingProgramusestheRecurringDocumentasthebasisforcreatingtheactualAccounting
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Document via batch processing. The Recurring Document specifies exactly when the system should processapostingusingthedatacontainedinit.Thevalidityperiod(daterange)mustbedefined. Thethreestepsnecessarytogeneratearecurringpostingare:

CreateaRecurringDocument.EnterthedatanecessaryforpostingtheAccountingDocument
suchasthepostingkeys,accountnumbersandamounts.Enterthecontrolinformationthatsets thepostingfrequencyorrunschedule.

RuntheRecurringPostingProgramattherequiredtimes.Thesystemwilldeterminewhich
RecurringDocumentsaretobeprocessedduringeachrunperiod.Thesystemwillcreatea batchinputsessionthatcontainsdatarequiredpostingtheAccountingDocumentsanddata neededtoupdatetheschedulinginformationintheRecurringDocumentsincludingthenextrun date,numberofrunsprocessedsofarand,ifnecessary,adeletionindicator.

Processthebatchinputsession.ThebatchinputsessionwillposttheAccountingDocuments
(theaccountingentryisactuallymade)andupdatetheschedulinginformationintheRecurring Documents.

SampleDocuments
ASampleDocumentisamodeldocumentthatcanbecopiedintoanewSAPpostingitislikeatemplate thatisstoredinthesystem.IntheDocumentEntryscreen,ausercanselectaSampleDocumentthat will automatically populate applicable fields. Once a Sample Document has been created and saved, only the amounts can be changed. Line Items cannot be added into the sample document itself. To accommodatenewlineitems,anewSampleDocumentwouldhavetobecreatedthatcontainsallofthe desired Line Items however, line items can be added to a FI document that is referencing a sample document. Whenpostingadocument,onlyoneSampleDocumentcanbeusedatatime.ItsDocumentNumberin theDocumentEntryScreenaccessesitbyutilizingthePostwithreferencefunction.Sampledocuments haveaseparatenumberrange.Whenyoucreateasampledocument,thesystemstoresthedocument butdoesnotupdateanytransactionfigures.

AccountAssignmentModel
AnAccountAssignmentModelisapatternfordocumententry.Itcancontainanynumberoflineitems and may include posted amounts. The Account Assignment Model is more flexible than Recurring DocumentsorSampleDocumentssinceitpermitstheusertoaddmorelineitemsandtochangeallthe preassigned fields. The Account Assignment Model allows the user to enter items in list form using screentemplatesthatareuserdefined.AccountAssignmentModelwillbeprimarilyusedforproprietary entries.Someofthecomplexassignmentsthathavemanylineswillbesetupasaccountassignment. The posting in the Account Assignment Model does not need to be complete. For example, in the documentlines, the accountsmay be preassigned in themodel, but the cost center and amountfields areleftblank.Thesefieldsarefilledwhenthemodelisactuallyused.The onlymandatoryfieldonthe header of an Account Assignment Model is the Name that is given by the user. Optional fields in the Account Assignment Model include Currency, Chart of Accounts, Sample Text, Authorization and Equivalence Number Option. With the Account Assignment Model, multiple field assignments can be postedatonetime.However,beforeamodelcanbecreated,ascreentemplatemustbedefined.The screentemplate(variant)iswheretheuseridentifiesthedesiredfieldsforthelinelayout. At the time of posting, combination of multiple Account Assignment Modes can be copied within one document to add the same lines over and over again to create one SAP document posting. Other

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Account Assignment Models can be used during the same posting and more lines can be added manually.

DocumentReversals
If a user has entered an incorrect document, the document can be reversed through automated SAP reversal transactions and a new document can be entered. The reversal of accrual documents (documents entered this month and reversed next month) will be processed with a SAP reversal transaction code. When a new SAP reversal document is generated, the user can drill down to the original document from the reversal document. Document date, posting date, user information and system data entry date will be maintained as an audit trail. Within General Ledger document reversal functionalitywillbeusedonasneededbasis.Agraphicalrepresentationofthisflowispresentedbelow.

9.4.6.2.2 ProcessFlow
TheJournalEntryprocesswithintheGeneralLedgerincludestransactionspostedthatarenotoriginated inanSAPsubledger(A/P,A/R),torecordauditadjustments,adjustmentpostingstocorrectpreviously posted transactions, reversal of documents and certain recurring transactions and interface postings. SAP creates a document for each transaction posted in the system. Unique transaction codes are maintained in the system to process journal entry and accruals. A Process flow has been defined for journal entry posting, which willinclude original postings, adjustment entries, accruals,internal postings from other SAP modules and external interface postings from third party systems. A graphical representationofthisflowispresentedbelow.
Figure9.42GLJournalEntry

SpreadsheetUpload (CATT) RecordingJournalEntryOn LineInSAP Adjustmententries Accrualsetc. InboundInterfacePosting JournalEntryinSAPFIGL Module BAIfilebankreconentry PatientAccountingSystem Interfaceetc.

Crosswalk

TransactionFB50 JournalEntry Document RecordedInSAP

RealTimeUpdate ModulesImpactedand DocumentsCreatedbyGL PostinginSAP

FM DOCUMENT FundsUpdate

SpecialLedger Document SplitGrant, BusinessArea, Fund

CO DOCUMENT P&LPostings

GRANT DOCUMENT IfApplicable

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9.4.6.2.3 InputsandOutputs
9.4.6.2.3aInputsandOutputs

InputtotheProcess
SAPR/3GeneralLedger SAPR/3GeneralLedger

OutputtotheProcess
JHHSKeaneAccountValidationFile(SAPAccountstring validation) JHBMCMeditechAccountValidationFile IDXAccountValidationFile JHHCGHorizonAccountValidationFile JHBMCCAREAccountValidationFile JHUISISAccountValidationFile JHUECSIAccountValidationFile JHHCOAOAccountValidationFile

9.4.6.2.4 OtherConsiderations
Therearenootherconsiderationsnotedforjournalentries.

9.4.6.3 Subprocess3OpenItemManagement 9.4.6.3.1 Overview

AGLaccountisconsideredOpenItemManagedwhenanoriginaldebitorcreditpostingisexpectingto beclearedbyanoffsettingmatchingcreditordebitposting.StandardSAPtransactionswillbeusedto process and analyze open item managed accounts. Examples of accounts where this functionality is employedaretheGoodsReceipt/InvoiceReceived(GR/IR)clearingaccountrelatedtopurchasingand accountspayable,bankclearingaccountsandtaxaccounts. SAPGeneralLedgerMasterDataincludesanindicatorthatidentifiesalloftheGeneralLedgeraccounts that are open itemmanaged. A Sort Keyis also identified. The sort keyfacilitates the input of certain attributes in those transactions that the GL account is associated with. The attribute is entered in the Assignment Field within the transaction line item. The attribute varies depending on the nature of the openitemmanagementactivitythatisassociatedwiththeGLaccount.Forexample,theGR/IRaccount attribute would be P.O. number while the bank clearing account attribute would be the check number. WhentheGR/IROpenItemManagementclearingtransactionisexecuted,thesortkeyandamountfields arematchedonthegoodsreceiptandtheinvoicereceiptandtheitemisclearedandnolongeropenin thisaccount.Itisimportanttonotethatcleareditemsarenotdeleted.Followingarethethreeopenitem managedaccountsidentifiedintheBlueprintPhase. GR/IRReconciliationAccount299xxx

Bank Reconciliation Clearing Accounts 1xxxx4 (all the G/L accounts will be mapped 1:1 to individualbankaccountsinrealization.) Tax Accounts 4xxxxx (all the G/L accounts will be mapped 1:1 to individual tax accounts in realization.) Whenanopenitemreportisgeneratedforanalysis,onlyopenitemsareselectedandcleareditemsare notdisplayed.

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9.4.6.3.2 ProcessFlow
Figure9.43GLOpenItemManagement IdentifyOpenItemManagedGLAccountNumbersInSAP,forexample: 1)GR/IRReconciliationAccount 2)BankReconciliationClearingAccounts(PerBankAccount) 3)TaxAccounts

TransactionF03 ExecuteAutoClearingProgramToClearDrandCr ItemsOnOpenItemManagedAccounts

Output 1)LineItemsThatMatchandClear(BasedoncriterialikeCheckNumberand AmountforBankClearing,PONumberandAmountforGR/IRclearingaccountetc) 2)ReportOnDrandCrLineItemsThatDoNotReconcile

Treatmentofitemsthatdonot reconcile

Forexample: ItemsforPurchasingdepartmenttoanalyze(forGR/IR Account) ItemsforCashManagement/BankCustodians(forBank Accounts)

9.4.6.3.3 InputsandOutputs
9.4.6.3.3aInputsandOutputs

InputtotheProcess
Postingstoopenmanagedaccounts Clearingprogramexecutiontomanageopenitemaccounts

OutputtotheProcess
DebitorCreditbalanceinopenmanagedaccounts MatchingDebitandCreditcleared(notdeleted)fromtheGL accountlineitems(Cleareditemsaremarkedwithflag clearedanddonotdisplayinopenitemlisting.)

9.4.6.3.4 OtherConsiderations
Therearenootherconsiderationsnotedforopenitemmanagement.

9.4.6.4 Subprocess4FiscalYears&PostingPeriods 9.4.6.4.1 Overview

InordertoposttransactionsinSAPR/3,itisnecessarytodefinetheFiscalYearandthePostingPeriods thatwillcomprisethefiscalyear.Fiscalyearmaycorrespondtocalendaryearifnecessary.Thefiscal year is typicallymade up of twelve posting periods although it could be less than twelve periods under specialcircumstances(shortenedfiscalyear).Inadditiontothetwelvepostingperiodsthatmakeupthe fiscalyear,SAPallowsthedefinitionofuptofourspecialperiods(Currentlyplannedtobeused)thatare usedtofacilitateyearendprocessing.HopkinsOnewillhaveasinglefiscalyearthatwillstartonJuly1
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and end on June 30. In addition, HopkinsOne will have twelve posting periods that correspond to the twelvecalendarmonthsandfourspecialperiods.ThesedefinitionswillbesavedinaFiscalYearVariant thatwillbeassignedtotheJHENcompanycode.(Note:Avariantisapredefinedsetofparametersor selectioncriteriathatissavedforfutureuse.)
9.4.6.4.1aFiscalYearVariant

PostingPeriod
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 July

CalendarMonth

PeriodDates
July1July31 August1August31 September1September30 October1October31 November1November30 December1December31 January1January31 February1February28or29 March1March31 April1April30 May1May31 June1June30 June1June30 June1June30 June1June30 June1June30

August September October November December January February March April May June SpecialPeriod SpecialPeriod SpecialPeriod SpecialPeriod

Eachpostingperiodwillhaveastartingandendingdate.Basedonthepostingdatethatisrequiredon everySAPtransaction,thesystemwillautomaticallydeterminethepostingperiod.The specialperiods allow transactions to be posted subsequent to the end of thefiscal year but reflect posting dates within thatyear.Transactionsenteredduringallspecialperiodsmusthaveapostingdatethatfallswithinthe last regular posting period. Typically, only one posting period is open and available to end users for postingatatimealthoughSAPdoesnotlimitthenumberofperiodsthatcanbeopenatonetime. SAP R/3 Funds Management (FM), Controlling (CO) and Materials Management (MM) modules also utilize posting period functionality independent of Financial Accounting (FI). In order to assure the integration between modules the opening and closing of posting periods will be centrallymanaged and controlled.Postingtransactionsinbothregularpostingperiodsandspecialperiodsiscontrolledthrough thedefinitionofPostingPeriodVariants.ThepostingperiodvariantsarelinkedtoAuthorizationGroups todeterminethetypesofaccountsthatusershavepermissiontoposttransactions.Authorizationgroups areusedbySAPtoorganizeuserrolesandsecuritytofacilitategrantinguseraccesstospecificfunctions within the system. Posting Period Variants must be defined separately for FI, FM, CO and MM. The followingtablerepresentsseveralFIPostingPeriodVariants.
9.4.6.4.1bFIPostingPeriodVariants

PostingPeriodVariant
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PostingPeriodVariant
A C K D S + Asset Cash Liability Revenue Expense

GLAccountType

AuthorizationGroup
To BeDetermined ToBeDetermined ToBeDetermined ToBeDetermined ToBeDetermined ClosingSpecialistGroup

AllGLAccounts

9.4.6.4.2 ProcessFlow
Figure9.44FiscalYearsandPostingPeriods

CompanyCode

FiscalYear Variant

RegularPostingPeriods(12) JulytoJune SpecialPeriods(4) AllpostedinJune

PostingPeriod Variant

GLAccount Types

9.4.6.4.3 InputsandOutputs
Noinputs/outputsexist.

9.4.6.4.4 OtherConsiderations
NootherconsiderationsnotedforFiscalYearandPostingPeriods.

9.4.6.5 Subprocess5GeneralLedgerClosing 9.4.6.5.1 Overview

HopkinsOnehasproposedacommonclosingprocedureandclosingcalendartobeusedthroughoutthe enterprise.Theclosingprocessesaredefinedseparatelyformonthendandyearend.

MonthEndClose
The month end close process starts on the last working day of the current period and will continuefor severaldaysintothesubsequentperiod.Theprocesswillbemanagedbyallowingthecurrentperiodto remainopenwhilealsoopeningthesubsequentperiodtoallowthepostingofrelevanttransactionstothe newperiod.Transactionpostingsinanyperiodcanbelimitedtocertainaccounttypesandusersinorder toassurepostingsaremadetotheappropriateperiod.Thecalendarofeventsrelatedtotheclosewillbe determined during realization at which time the security related to posting transactions will also be defined.Asummaryofthestepsrequiredforclosinghasbeendevelopedandispresentedinthetable below. The summary will be further refined and the closing steps and processes developed during realization.

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9.4.6.5.2aMonthlyCloseSummary

No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 PostPayroll

ClosingActivity
ExecuteDepreciation ExecuteRecurringEntries/Postings ExecuteParkedandHeldDocuments ClearWorkflowBacklog UploadBankBAIFiles MaintainGR/IRAccount PostAccruals ExecuteCOAllocations ExecuteFI/COReconciliationLedger ExtractdatatoBW(SEMBCSforconsolidations) Executemonthendreports ExecuteTechnicalSAPclosingstepsandprograms ClosePostingPeriod PeriodManagement:OpenNewPeriod

YearEndClose
Fiscalyearendclosingwillfollowthemonthendcloseprocesscloselybutwillincludeseveraladditional processes.Theyearendclose willalsoutilizethespecialperiodsthatwilleliminatetherequirementto keepthelastregularpostingperiodopen.UsingthePostingPeriodVariantsandAuthorizationGroupsin conjunctionwiththespecialperiods,theclosingprocessesandactivitiescanbefurthersegregatedand organized in a way that is not available for month end processing. For example, routine closing processes such as the final payroll posting, recurring entries, and accrual entries could be assigned to period 13 while allocations could be assigned to period 14 and audit and other adjustments could be assignedtoperiod15.Period16wouldbereservedforrunningthetechnicalyearendcloseprocesses whichcloseouttheyearandpreparethecarryforwardofbalancestothenewfiscalyear.
9.4.6.5.3aSpecialPeriods

SAPPostingPeriod
12 13 14 15 16 00

PostingDate
June1June30 June1June30 June1June30 June1June30 June1June30 July1July01

Comments
Performallpreclosingsteps(onorbeforeJune30) Performroutineclosingsteps(afterJune30) Executeallocations(afterJune30) Finaladjustmentsandcorrections(e.g.audit)(afterJune30) YearEndCloseprogram(afterJune30) Balancescarriedforwardandsystemreadyforpostinginnewfiscal year(01)

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ThetablebelowrepresentsasummaryoftheyearendclosingactivitiesforHopkinsOne.Thesummary willbefurtherrefinedandtheclosingcalendar,detailedclosingstepsanddetailedprocessesdeveloped duringrealization.

9.4.6.5.3bYearEndCloseSummary

No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 PostPayroll ExecuteDepreciation

ClosingActivity

ExecuteRecurringEntries/Postings ExecuteParkedandHeldDocuments ClearWorkflowBacklog ExecuteInterfaceDocuments UploadBankBAIFiles MaintainGR/IRAccount PostAccruals ExecuteAllocations ExecuteFI/COReconciliationLedger OpenPeriod13 ExecuteandAnalyzeReports CloseRegularPostingPeriod OpenPeriod1inNewFiscalYear Period13 Processinterfacesnotavailableforprocessingintheregularpostingperiod Processaccrualsandadjustmentsnotavailableforprocessingintheregularpostingperiod ExtractdatatoBW OpenPeriod14 ClosePeriod13 Period14 Executeallocations(ifneeded) ExecuteFI/COReconciliationLedger(ifneeded) ExtractdatatoBW OpenPeriod15 ClosePeriod14 Period15 Postfinaladjustments(ifany) Executeallocations(ifneeded) ExecuteFI/COReconciliationLedger(ifneeded) ExtractdatatoBW(consolidationsinSEMBCS)

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No.
33 34 35 36 37 38 39 40 41 OpenPeriod16 ClosePeriod15 Period16 ExecuteFinalClosingPrograms ExecuteArchivingPrograms ClosePeriod16

ClosingActivity

OpenNewPeriodInnextFiscalYear ExtractdatatoBW(finalconsolidationsinSEMBCS) ExecuteYearEndReports

In addition to activities and processes related to the external audit of the financial statements of the variousHopkinsOnelegalentitiesandaffiliates,theyearendcloseprocessingincludesaseriesofsteps designed to prepare the account balances to be carried forward into the new fiscal year. Separate programsareexecutedtocarryforwardthebalancesforGLaccounts(balancesheetandprofit&loss), customeraccounts(A/R)andvendoraccounts(A/P). Thebalancesforbalancesheet,customerandvendoraccountsaresimplycarriedforwardintothenew fiscalyeartotheirsamerespectiveGLaccounts.Profit&Lossaccountsarecarriedforwardtoretained earnings/netassetaccounts.Thebalancesintheprofit&lossaccountsaresettozero.HopkinsOnehas definedaseriesoffourretainedearnings/netassetaccounts.Eachprofit&lossaccountwillbemapped tooneoftheretainedearningsaccounts.Thefouraccountsare:

311000UnrestrictedNetAssets 312000TemporarilyRestrictedNetAssets 313000PermanentlyRestrictedNetAssets 320000RetainedEarnings

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9.4.6.5.2 ProcessFlow
Figure9.45StepsforConfiguringandProcessClosing

Configure FiscalYearVariantV6July1to June30th 4SpecialPeriods1316

Configure AssignCompanyCodeJHEN tovariantV6

Configure DefineFiscalYearVariant SpecificForPostingPeriod

CarryOutPreClosingand ClosingSteps/Procedures InSAP

Configure AssignVarianttoSpecific PostingPeriodIntervalsBy criteriaofAuthorizationGroup (Security) GLAccountType

GenerateMonthEndand YearEndReports.Extract DataForConsolidationand EliminationstoSAPBW System

Configure AssignPostingPeriodVariant toCompanyCode

OpenandClose PeriodEvery MonthInSAP

ExecuteClosing andCarryForward ProgramsinSAP

9.4.6.5.3 InputsandOutputs
Noinputs/outputsexist.

9.4.6.5.4 OtherConsiderations
TherearenootherconsiderationsnotedfortheYearEndclosingprocess.

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9.4.6.6 Subprocess6ForeignCurrency 9.4.6.6.1 Overview

The Blueprint design for foreign currency is presented within the context of the scope defined for the HopkinsOne project. Specifically, direct access to SAP R/3 will not be permitted outside of the United States. HopkinsOne will enable foreign currency data entry within vendor invoices to record expenses and replenishment request related to foreign imprest bank accounts (Replenishment in USD). The current system to track and process transactions fromforeign imprest fund accounts will continue (Quickbooks where applicable.) To facilitate reimbursement, these transactions will be summarized and uploaded to SAPAccountsPayabletocreateavendorinvoice.Theinvoicewillsubsequentlybepaidviathestandard SAP payment program which will be configured to issue the disbursement according to the business needs of the foreign business unit requesting reimbursement. The upload of the foreign currency transactionswillbeautomatedwhereverpossible. When thevendor invoice is recorded, it will be recorded against the GL Account and Grant(s) that are funding the imprest fund account. It will also record the funds and cost center (or other cost object) to track the organizational entity that owns the imprest fund and to track the funding sources for the disbursement. When payment is issued for the invoice, multiple invoices can be combined together to issueasinglepayment.Accordingtocurrentpolicy,paymentswillalwaysbeissuedinUSD. ThesetuprequiredinSAPtoenablereplenishmenttoforeigncurrencyaccountsisasfollows:

VendorMasterDataSetup
EachoftheforeigncurrencyimprestfundaccountswillbesetupasavendorinSAP.Informationlikethe vendor address for the check, bank name and account, wiring information, and the custodian of the accountwillbederivedfromvendormasterdatawhenthereplenishmentrequestsarerecorded.

ForeignExchangeRateSetup
WithintheSAPconfigurationeachoftheexchangeratesforeachcurrencypair(exchangetoandfrom theforeigncurrency)hastobedefined.HopkinsOnewillalsodefinetheexchangeratevaluationmethod (spot rate or average currency exchange rate) to be used to derive the conversion at the time of the payment. Although the exchange ratesmust be maintained in SAP, allthe exchange rate pairs do not havetobemaintainedinSAP.HopkinsOnecanusefunctionalitycalledtheinversiontooltocalculatethe opposite rate from a defined exchange rate. This method can be used only if the spot exchange rate methodisusedtocalculatecurrencytranslation.

RecordingTransactions
HopkinsOnewillconfigureSAPtoenablepostingoftransactionsinforeigncurrency.Lineitemreporting in foreign currency will be available, but will be limited to transactions that were entered in foreign currency.TheHopkinsOneCompanyCodecurrency(forfinancialreporting)willbeUSD. Noopenitem managementofforeigncurrencytransactionswilloccurintheSAPsystem.Allpaymentswillbeissuedin USD only. Specific document types will be developed to support this process within the FI module of SAP(bothGLandAP).

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9.4.6.6.2 ProcessFlow
Figure9.46ForeignCurrency
ExpenseandReplenishmentofforeignimprestfundbankaccountdata receivedinUSviaQuickenflatfileormanualreports.

TranslationtoUSDdoneoutsideofSAP

SpecialLedger Document CreatedinUSDfor financialreporting

APInvoiceFB60 SummarizedExpensesrecorded againstforeignimprestaccount. TransactioninUSD.

APInvoiceFB60 SummarizedExpensesrecorded againstforeignimprestaccount. Foreigncurrencyusedtorecord invoicetransaction.

SpecialLedger Document CreatedinUSDfor financialreporting

OpenItemtranslatedtoUSDat timeofpaymentbasedon exchangerateandforeign currencyvaluationmethod maintainedinSAPforeign exchangetable

StandardSAPPaymentProgramPaysForeignDisbursementInvoices.GeneratesChecks,Wiresin USDcurrencyonlyforreplenishment.

Disbursementrequestsenttobank

9.4.6.6.3 InputsandOutputs
Noinputs/outputsexistforForeignCurrency.

9.4.6.6.4 OtherConsiderations
TherearenootherconsiderationsnotedforForeignCurrency.

9.4.7 InternalControlConsiderations
9.4.7aInternalControlConsiderations

ProcessObjective
Process9.4.6.1ChartofAccounts Onlyvalidchangesaremadetothe GeneralLedgermasterrecords.(validity) TheGeneralLedgerChartofAccounts reflectsGrouprequirements.New accountswillbeaddedtotheChartof Accountsonlyiftheyarenecessaryand havebeenapprovedtohelpensure efficientsystemprocessingandaccurate transactionprocessing.

Potential Risks
Invalidchangesaremadetothe GeneralLedgermasterrecords.

Expected/SuggestedControlsto MitigateRisk
PreventativeAutomated&Manual Aprocedureisestablishedthatall changestotheGeneralLedgermaster recordareapprovedbySenior Management.SAPstandard functionalitywillinsurethataccount numbersdonotproliferatewithinthe specifiedaccountgroupranges.

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ProcessObjective
Process9.4.6.1ChartofAccounts AllvalidchangestoGeneralLedgermaster recordsareprocessed.(completeness)

Potential Risks
Notallvalidchangestothe GeneralLedgermasterrecords areinputandprocessed.

Expected/SuggestedControlsto MitigateRisk
Preventative/DetectiveManualand Automated SAPstandardfunctionalitydoesnot allowforincompleterecordstobe posted.StandardSAPReportswillbe availabletoverifychangesmade. CorrectiveAutomated(e.g.email) Alistofusersaffectedbythechanges madetoGeneralLedgermasterrecords shouldbemaintained.Beforeperforming achange,theofficialmakingthechange shouldnotifyandverifythechangewith alltheseuserstoensurethatthechange willbeproperlyimplementedwithout causingsysteminterruption.Standard SAPReportsareavailabletoview changes. PreventativeAutomated(Checklist approach) SAPstandardfunctionalityprohibits creationofincompletemasterrecords. Thesespecificfieldswillbeidentified duringrealization.

Process9.4.6.1ChartofAccounts ChangestotheGeneralLedgermaster records/ChartofAccountswillbe communicatedtotheusercommunityina timelymannertopreventprocessing errors.

Systeminterruptions. Misallocations.

Process9.4.6.1ChartofAccounts GeneralLedgermasterrecordinformation isrecordedinaconsistentandcomplete fashion.

Incompletedatamaybeentered intheGeneralLedgermaster records.Criticalfieldsthatmust beenteredarenotspecifiedas mandatory.

Process9.4.6.1ChartofAccounts Modifications/changestoGeneralLedger masterrecordsarecorrectlyprocessed. (accuracy)

ChangestoGeneralLedger masterrecordsmaybeincorrectly processed.

PreventativeManual&Automated Theofficial(responsibleformaintenance ofGeneralLedgermasterrecords)shall processallrequestsformodificationof theGeneralLedgermasterrecordsafter havingcheckedthecontentsandthe accuracyofthedatasupplied.Each changetoGeneralLedgermaster recordsispreparedfromappropriate sourcedocuments.SAPeditsand validatesGeneralLedgermasterrecords online,identifiederrorsarecorrected promptly. DetectiveManual&Automated TheFinancialAccountantreviewsthe GeneralLedgeraccountchangereport onamonthlybasistoensurechanges areperformedincompliancewith GeneralLedgermaintenancerequests. ChangestocriticalGeneralLedger masterdetailsarereviewedbysenior management.Amasterdataamendment reportshowingdatabeforeandafter changesisapproved(basedona comparisontosourcedocumentswhere appropriate)byanindependentperson. ASAPreportisgeneratedwithdateand timeofchange,oldandnewvaluesfor fieldsandalsotheuserwhoenteredthe change.Proceduresexisttoretainall documentationonanyChartofAccounts maintenancerequests.

Process9.4.6.1ChartofAccounts Anaudittrailwillexistforallchangestothe ChartofAccounts.Allchangesto,and deletionofGeneralLedgermasterrecords mustbeproperlylogged,documentedand retained.

UnauthorizedchangestoGeneral Ledgermasterrecords(including creationordeletionofaccounts) maygoundetected.Errorsin capturingGeneralLedgermaster recordsarenottimelyidentified. Noresponsibilityisassignedfor regularlyreviewingaudittrailsof changeinformation.(Nomaster dataamendmentreportis generatedtoensurethatthe informationprocessediscorrect andaccurate.)Changesto GeneralLedgermasterrecords arenotsupportedbyvalid documentation.Required documentationisnotretainedfor mandatoryretentionperiods.

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ProcessObjective
Process9.4.6.2JournalEntries Alladjustmentsarerecordedwhen identifiedandaresubsequentlyaccounted forashavingbeenprocessedtothe GeneralLedger.(completeness)Journal entriesaresubjecttocontrolsover completenessofprocessing. Process9.4.6.2JournalEntries Adjustmentsareaccuratelyprocessed. Journalentriesshouldbeprepared accurately.(accuracy)

Potential Risks
Adjustmentsmaynotberecorded. Omissionofvalidjournalentries mayoccur.Somerequired (necessary)journalentriesarenot postedeachmonth.

Expected/SuggestedControlsto MitigateRisk
PreventativeAutomated SAPwillnotpermitprocessingof incompletejournalentries.Updatesto thegeneralledgerarerealtime.

Incorrectlineitemdetails (businessarea,taxcode,cost centre)oramountareentered. Entriesmaybeincorrectlymade. Adjustmentsmaybeincorrectly preparedorprocessed. MisstatementofGeneralLedger accountbalances.

PreventativeAutomated Theofficials(responsibleforjournal entries)shallonlyprocessjournalentries afterhavingcheckedthecontentsand theaccuracyofthedatasupplied.Each journalentryispreparedfrom appropriatesourcedocuments.SAP standardfunctionalityrequiresthatall transactionsareinbalancepriortobeing postedtotheGeneralLedger. PreventativeManual UniqueGeneralLedgeraccountcodes areinuse.Reviewandapprovalof GeneralLedgerentriesbyappropriate managementlevel. SAPAuthorizationandApproval. PreventativeManual StandardSAPeditsandvalidatesinput dataonline.SAPisconfiguredto requiremandatoryfieldswhencapturing transactionrecordsthroughuseofthe fieldstatusvariants.Someofthekey fieldswithinthisareaareGeneralLedger accountnumber,GeneralLedger accountname,ShortText,Typeof account(i.e.BalanceSheet,Income Statement,etc). PreventativeManual Alljournalentries(includingnon systematicjournals)aresupportedby adequatenarrativesanddocuments,and arereviewedandapprovedby management.

Process9.4.6.2JournalEntries Adjustmentsandjournalentriesare processedtothecorrectaccount. (classification)Alljournalentriesinclude adequateidentificationoftheaccountsin whichtheyaretoberecorded. Process9.4.6.2JournalEntries Adjustmentandjournalentryinformationis recordedinaconsistentandcomplete fashion.Enteredtransactiondatais complete.

Adjustmentsareprocessedtothe incorrectaccount.Incorrect documenttypesorpostingkeys areenteredresultinginpostingto theincorrectaccount.Insufficient accountidentification. Essentialfieldsarenotdesignated asmandatorytoensurecomplete dataiscapturedandrecorded. Editandvalidationroutinesare notusedduringdataentryto ensuretransactionsarevalid.

Process9.4.6.2JournalEntries Adjustments(Journalentries)are adequatelyexplainedandsupported. (validity)Explanationandsupportforan entryshouldbesufficienttoenablethe personresponsibleforitsreviewand approvaltoreasonablyperformthis function. Process9.4.6.2JournalEntries GeneralLedgerJournalentriesshouldbe capturedseparatefromtheperson initiatingtheinitialtransaction.Preparation andapprovalfunctionsforjournalentries aresegregated.

Manualentriesarenot appropriatelydocumentedona validsourcedocument.Invalid entriesmaybemade.

Fraudanderrorduetono segregationofinitiation, execution,authorizationand recordingoftransaction.

PreventativeAutomated Segregationofinitiation,execution, authorizationandrecordingofGeneral Ledgertransactions. ReviewofGeneralLedgerprocessis segregatedfromtheprocessingfunction. SAPRoleAuthorizationandApproval.

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ProcessObjective
Process9.4.6.2JournalEntries Reversaldocumentsareappropriately reversed.

Potential Risks
Reversaldocumentsare processedwithinaccurate amountsandnotproperlyjustified orcompliantwithJHUcost transferpolicyandprocedures

Expected/SuggestedControlsto MitigateRisk
DetectiveAutomated&Manual StandardSAPfunctionalityrequestsa reversalreasoncodeforeverydocument anddocumentsmayonlybereversed automaticallywithinthesameperiod. Manualpolicytobeimplementedfor trackingchangestodocumentsfrom otherperiods. PreventativeDetectiveAutomated& Manual AllentriestoSAPfrominterfaceswill havetheirowndocumenttypeanderror reportsfrominterfaceentriesthatdonot comeoverforanyreasonwillbe availableinrealtime.

Process9.4.6.2JournalEntries Interfacedocumenttypesareappropriately recordedtoensureintegrityandvalidityof thejournalentry. Allinterfacejournalsshouldbereceived andprocessedinatimelymanner. Process9.4.6.2JournalEntries Rejecteditemsrequirereentryonatimely basissubjecttothesameinputcontrolsas newtransactions.(completeness) Process9.4.6.2JournalEntries Openitems,heldorparkeddocumentsare resolvedandprocessedtimely.

Externalinterfacepostingsfrom 3rdpartysystemsmaynotbe authenticandincorrectlyrecorded intheGLsystem. Postingsarenotidentifiedor recordedtimely.

Rejecteditemsnotreentered.

DetectiveManual Allrejecteditemsshouldbereviewedfor errorsandreenteredinthesame mannerundermanagementsupervision.

Openitems,heldorparked documentsarenotresolvedand processedtimely.

DetectiveManual Proceduresareestablishedtoensure thatall"parked"documentsare investigatedandeitherdeletedor processedbyestablishedcutofftimes priortoclosingtheaccountingperiod. Unposteddocumentsareeitherdeleted oraccruedasapartofthemonthly closingchecklist. DetectiveManual&Automated TheFinancialAccountantwillvalidate thatallclosingactivitiesarecompleted timelythroughoutthecloseprocess.This willhelptoensurethatallnecessary activitiesarecompletedintheproper sequencepriortoperiodend.

Process9.6.4.3OpenItemManagement Allessentialactionsarecompletedpriorto closingandreporting.

Closingactivitiesinother applicationsarenotcompleted beforethedeadlineforfinancial reporting.Payableand Receivablebalancesarenot confirmed(intercompanyand discrepancieswithbusiness partnerrecordsarenotresolved). (Interbusinessarea confirmations,vendorand customerreconciliations).No adjustmentsforpayables, receivablesortheGR/IRclearing accountaremadetoensurethe balancesheetiscorrect. Balancesandopenitemsin foreigncurrenciesarenot valuatedbeforereportsare generated.Openbatchsessions arenotclosedonamonthlybasis. GeneralLedgerbalancesare misstated(transactionsprocessed intheincorrectperiod).

Process9.6.4.3OpenItemManagement AllGeneralLedgersuspenseaccount balancesareproperlyreallocatedpriorto closingtheaccountingperiodtohelpensure thattheperiodendledgerbalancesare correctlyreflected.

DetectiveManual&Automated Therearenosuspenseaccountsbuiltinto thegeneralledgergoingforward.Users areexpectedtoposttoappropriatesource accounts.

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ProcessObjective
Process9.6.4.3OpenItemManagement Alljournalsenteredwillbepostedpriorto theaccountingperiodclosetoensurethat allcurrentperiodactivityisreflectedinthe financialstatements. Process9.4.6.4FiscalYearandPosting Periods NotificationsofchangestoGeneralLedger masterrecordsareprocessedtimely. (properperiod)Allnewaccountswillbe addedinatimelymannersotheyare availablefortransactionprocessinginthe correctperiod.

Potential Risks
GeneralLedgerbalancesare misstated(transactionsprocessed intheincorrectperiod).

Expected/SuggestedControlsto MitigateRisk
DetectiveManual TheFinancialAccountantwillvalidate thatallclosingactivitiesarecompleted timelythroughoutthecloseprocess.

ChangestotheGeneralLedger masterrecordsarenotprocessed timely.Payrollmaybeincorrectly computedfortherelevantperiod.

Preventative/Manual Aprocedureshouldbeestablishedthat thechangetoGeneralLedgermaster recordsismadewithinanestablished timeperiodafterthesourcedocument hasbeenreceived.Byprocessingthe changeimmediatelyafterthesource documenthasbeenreceived,the GeneralLedgermasterrecordiskept currentandthepossibilityofincorrect changesbeingmadeisminimized. RequeststochangeGeneralLedger masterrecorddataarelogged.Thelogis reviewedtoensurethatallrequest changesareprocessedtimely. Preventative/Manual Financialdocumentscanonlybeposted inperiodswhichareopenedintheSAP system.InSAPtheFinancialCalendar functionalitycanbeusedtoschedule activities/programmersthathavetobe performed/runoncertaindates(likethe creationofrecurringentries).Definitionof theactualcalendarandschedulingthe datesisperformedfortheentireclient, andnotpercompany.Reconciliationof GeneralLedgeraccounts.

Process9.4.6.4FiscalYearandPosting Periods Adjustmentsandjournalentriesare processedpromptlyandwithinthecorrect accountingperiod.(properperiod)

Incorrectpostingdatesare enteredandentriespostedtothe wrongperiod.Entriesmaybe processedintheincorrect accountingperiod.

Process9.4.6.5G/LClosing Reconcilebooksandrecordstoensure theirinternalconsistency.(completeness, accuracyandvalidity)Allnecessary accountsarereconciledtoprovide assuranceonthereportingresults.

KeyGeneralLedgeraccounts (particularlycontrolaccounts)are notreconciledtosource documentsorledgersonaregular basis.Errorsorirregularitiesmay notbedetected.(Note:Risksfor thisobjectivevary,dependingon thereconciliationproceduresand thenatureoftheinformationbeing reconciled.Accordingly, reconciliationproceduresare identified,whereappropriate,in othercycles).Reconciliationtasks areinsufficienttoresultin accuratefinancialstatements. Differences(e.g.longoutstanding items)arenotinvestigated,and/ orexplainedcorrectiveactionis nottaken. Reconciliationsarenotperformed timely. Invalidadjustmentsare notidentifiedtimely.Misallocated postingsarenotidentifiedtimely.

PreventiveManualorAutomated Reconciliationofopeningbalancesand currentactivitiestocurrentperiodclosing balances.Comparecriticaldetailsof eachreconciliationentrytoestablish criteria.Comparisonmaybedone manuallyorbyuseofcomputer validationtechniques.Alldifferencesare investigated,followedupandcorrected onatimelybasis.

Process9.4.6.5G/LClosing GeneralLedgerreconciliationsare preparedpromptlybyanauthorized companyofficial.

PreventiveManualorAutomated Predeterminedsettimetablesforthe completionandreviewofreconciliations.

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ProcessObjective
Process9.4.6.5G/LClosing ReconciliationsofGeneralLedger accountsarereviewedbymanagementfor accuracy,validityandcompletenessand thenecessaryadjustmentsmade. Process9.4.6.5G/LClosing Processesareinplacetoensurea complete,accurateandtimelyclosingand reportingactivity.Allocationswillbe processedinthepropersequenceofthe monthendclosesocalculationsare computedcorrectly.

Potential Risks
Reconciliationsarenotsubjectto reviewtoidentifyanomalies. Reviewprocessisnotformalized andaccountabilitycannotbe allocated. Closingschedulesand proceduresformonthendand yearendarenotdefined, publishednorfollowed.Closing proceduresarenotadequateto guideusersinperformingjob responsibilitiesinaccordancewith management'sintentions. Appropriateapprovalsarenot requiredpriortoclosingaposting period.Periodsarenotclosed afterallactivityandreportingare complete.

Expected/SuggestedControlsto MitigateRisk
PreventiveManualorAutomated AllGeneralLedgerreconciliationsare reviewed,signedoffandapprovedby authorizedmanagementlevels. PreventiveManualorAutomated Adetailedclosingcalendarincludingthe identificationofresponsiblepartiesis developedandmaintainedformonth/ yearendclosingbytheFinancial Accountant.SAPtechnicalclosingsteps weredoneataveryhighlevelanda preliminaryclosingcalendarwas identifiedduringtheblueprint.The calendarlistsallperiodclosingtasksto becompletedinsequentialorderand whohastheresponsibilityforthe completionofeachtask.Fortheyear endclosing,thefollowingstepis consideredforinclusionintothe developedyearendtargetprocess. (Note:someofthebelowstepsmayalso beincludedinMonthEnd):Carryforward customerandvendorbalancestonext year.Carryforwardprofitorlossand GeneralLedgeraccountbalancestonext year.Closethelastmonth(posting period)ofthebusinessyear.Process interbusinessareaeliminationentries. PostadjustmentstotheGeneralLedger. Revalueopenitemspostedinforeign currency.Revalueforeigncurrency GeneralLedgeraccountbalances.Sort andsummarizeopenitemsbyrangesof duedate.Postanyotherrequired adjustments.ProcessAllocations.Print balancesheetandprofitandloss account. PreventiveManualorAutomated TheFinancialAccountantwillvalidate thatallclosingactivitiesarecompleted timelythroughoutthecloseprocess.This willhelptoensurethatallnecessary activitiesarecompletedintheproper sequencepriortoperiodend.

Process9.4.6.5G/LClosing Allessentialactionsarecompletedpriorto closingandreporting.

Closingactivitiesinother applicationsarenotcompleted beforethedeadlineforfinancial reporting.Payableandreceivable balancesarenotconfirmed(inter businessareaanddiscrepancies withbusinesspartnerrecordsare notresolved).(Interbusinessarea confirmations,vendorand customerreconciliations).No adjustmentsforpayables, receivablesortheGR/IRclearing accountaremadetoensurethe balancesheetiscorrect. Balancesandopenitemsin foreigncurrenciesarenot valuatedbeforereportsare generated.Openbatchsessions arenotclosedonamonthlybasis.

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ProcessObjective
Process9.4.6.5G/LClosing AllGeneralLedgersuspenseaccount balancesareproperlyreallocatedpriorto closingtheaccountingperiodtohelp ensurethattheperiodendledgerbalances arecorrectlyreflected. Process9.4.6.5G/LClosing Alljournalsenteredwillbepostedpriorto theaccountingperiodclosetoensurethat allcurrentperiodactivityisreflectedinthe financialstatements. Process9.4.6.5G/LClosing TheGeneralLedgerisperiodically balancedwiththesubsidiaryLedgers(AA, AP,andAR)andothermodulesofSAP (e.g.CO)toensureproperreporting.All amountsfromsubsidiaryrecordsare accuratelyrecordedintheGeneralLedger. Transactionsareonlypostedtodetail accountsbecausepostingtosummary accountswillresultininaccuraterollupof financialdata.

Potential Risks
GeneralLedgerbalancesare misstated(transactionsprocessed intheincorrectperiod).

Expected/SuggestedControlsto MitigateRisk
DetectiveManualorAutomated Therearenosuspenseaccountsbuilt intothegeneralledgergoingforward. Usersareexpectedtopostto appropriatesourceaccounts. DetectiveManualorAutomated TheFinancialAccountantwillvalidate thatallclosingactivitiesarecompleted timelythroughoutthecloseprocess. PreventiveManualorAutomated Timelyreconciliationofallsubsidiary recordstotheGeneralLedger.All reconcilingitemsareidentified, investigatedandclearedonatimely basis.Managementreviewsall reconciliationsandfollowsuponunusual matters. Allfinancialdatawillbeenteredthrough FI(Designdecision).Informationfor entitiesnotusingScopewillbeentered inSummaryform,toaccomplishneeded consolidations.

GeneralLedgerbalancesare misstated(transactionsprocessed intheincorrectperiod).

TheGeneralLedgermaybe incompleteormaycontainother inaccuracies.

Process9.4.6.6ForeignCurrency Translationandconsolidationoffinancial reportsshouldbeaccomplishedaccurately andpromptly.Subsidiariesareaccurately recordedintheconsolidatedfinancial statements.

Misstatementofthefinancial statementsdueto:clericalerrors, useofincorrectexchangerates, omission/incorrect,elimination andreclassificationentries.

PreventativeAutomated Managementreviewstheaccountingfor itssubsidiariesforconsistencywith applicableandrecentaccounting pronouncements.Implementstandard eliminationandreclassificationentries. Implementstandardtranslationand consolidationformats.Consolidation, reclassification,andotheradjustmentsof GeneralLedgerbalancesintofinancial statementformatsshouldbeexplained anddocumented.Comparisonofthe numberandamountsofreclassification, translationandeliminationentriesforthe currentperiodwiththepriorperiod. ForeignCurrencyentrieswillhavetheir owndocumenttypeandtableswillbe maintainedonaregularbasis. PreventiveAutomated SAPcanbeconfiguredandperforeign currencyhowmuchtheexchangerateon thedocumentheadermaydifferfromthe exchangeratecurrentlyknowninthe system.

Process9.4.6.6ForeignCurrency Foreignexchangegainsandlossesare calculatedcorrectlyandpostedtothe correctaccount.

Taxesandforeignexchangegains andlossesarecalculated incorrectlyorpostedtothe incorrectaccount.

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ProcessObjective
Process9.4.6.7G/LSecurity OnlyauthorizeduserscanaccessGeneral Ledgerfunctions.

Potential Risks
AuthorizationsforGeneralLedger transactionactivity(e.g.posting documents,adjustments, reversingentriesrecurringentries, interbusinessareatransfers, openitemclearing)are inappropriatelyassigned.The authoritytochangecurrent settings(openorcloseposting periods,maintaincurrency translationrates)isinappropriately assigned.Theauthoritytoview, enter,changeordeleteGeneral Ledgerrelatedinformationinthe systemisnotappropriately restricted.Accesstoconfiguration information(e.g.GeneralLedger accountassignments,fieldstatus variants,fieldstatuscodes, accountgroups)isnot appropriatelyrestricted. Unauthorizedadjustmentsmaybe processed.Processingofjournal entriesthatareunacceptableto management.Manualentriesare notapproved.Journalentries maybemadeforthepurposesof misstatingaccountbalancesor concealingirregularities.

Expected/SuggestedControlsto MitigateRisk
PreventiveAutomated/Manual ThroughtheuseofSAPsecurity authorizations,accessisrestricted. TransactionsforGeneralLedgermaster recordmaintenance:FS01>FS06 Create,Change,Markfordeletionetc. TransactionsforGeneralLedgerposting: F02GeneralLedgeraccountposting,F 04Postwithclearing,FB02Change document,FBDLRecurringdocument.

Process9.4.6.7G/LSecurity Adjustmentsarereviewedandapprovedby aresponsibleofficial(authorization). All journalentriesarereviewedandapproved bydesignatedindividualsatappropriate levelsintheentity.Approvalshouldbe giventoall,andonly,thosetransactions/ journalentriesthatmeetmanagement's guidelines. Process9.4.6.7G/LSecurity ReviewofGeneralLedgerprocessis sufficientlysegregatedfromtheprocessing function.

PreventativeManual Checkandapprovalofeachjournalentry (priortoprocessing)bysupervisory personnelwhodidnotparticipateinits preparation.

Fraudanderrorduetono segregationofinitiation, execution,authorizationand recordingoftransaction.

PreventativeManual/Automated ReviewofGeneralLedgerprocessis segregatedfromtheprocessingfunction. ThroughtheuseofSAPsecurity authorizations.

Process9.4.6.7G/LSecurity Accesstorecords,criticalforms, processingareas,processingprocedures andcomputersystemshouldbepermitted onlyinaccordancewithmanagement's criteria(whichshouldprovidefor segregationofduties).

Recordsmaybedestroyedorlost thiscouldresultinaninabilityto preparereliablefinancialand operatingreports.Recordsmay bemisusedoraltered,tothe detrimentoftheentityorother parties(vendors,customers, employees).Unauthorized accesswhichcouldleadtofraud anderror.Confidential informationviewedby unauthorizedpersons.

PreventiveManual/Automated Accesstorecords,criticalforms, processingareas,computersystemsand processingproceduresshouldbelimited toauthorizedpersonnel.Physical controlsexistwhichlimitaccessto financialrecordstoauthorized employees(Strongrooms,safesand lockableroomsshouldbeusedfor storageandfiling.Keysshouldbe allocatedtoauthorizedemployeesand keptinasafeplace.)SAPaccesstoFI andothermodulesshouldberestricted toauthorizedemployees. PreventiveManual Accesstoremoteprintersandreport distributionsitesisadequatelysecured andrestricted.

Process9.4.6.7G/LSecurity Remoteprintersorreportdistributionsites aresecured.

Remoteprintersorreport distributionsitesarenotsecured.

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9.4.8 Gaps
9.4.8aGapsinfunctionalityprovidedfromSAP

GAPdescription
NotApplicable

L
rd

rd

RecommendedSolution

CCriticality,LLevelofEffort,EEnhancementindication,3 3rdPartySoftware,PPendingPMOapproval,W Processsolution

9.4.9 OpenDesignIssues
9.4.9aOpenDesignIssues

IssueDescription

Impact

AdditionalInformation
Theimplementationofasingleenterprisewideclosing calendarwillrequiretheidentificationofthedetailed stepsrequiredtoexecutethemonthlyandyearend closing. Detailedclosingstepsandtheirdependencieswillbe identifiedinRealizationphase.SAPScheduleManager maybeutilizedtomanageHopkinsOneClosing Schedulebasedonthedetailedrequirements. PMOdecisiontorequiremonthlyGAAPstatementwill assitinstandardizationofclosingprocessinrealization phase. Currently,theplanistorecordHCGHmonthlyfinancial activityinSAPonasummarylevelwhichwouldnot provideenoughdetailtoidentifyalloftheelimination entriesneededforfinancialstatementconsolidation. DuringRealization,detailanalysiswillbeperformedto identifywhatlevelofdetailneedstobeinterfacedinto SAPbasedonConsolidationreportingrequirements. Currently,theplanistorecordAPLmonthlyfinancial activityinSAPonasummarylevelwhichwouldnot provideenoughdetailtoidentifyalloftheelimination entriesneededforfinancialstatementconsolidation. DuringRealization,detailanalysiswillbeperformedto identifywhatlevelofdetailneedstobeinterfacedinto SAPbasedonConsolidationreportingrequirements Someforeignbusinessofficeshavelimitedaccessto currentsystemsanditisnotyetclearwhetherthose officeswillretainthatsamelevelofaccesstoSAP. Also,thecurrentscopedefinitionaddressesdataentry limitationsbutnotdataviewing.Ifforeignofficesareto havedataviewingcapabilitiesitisnotclearhowthatwill beaccomplished.Detaildesignwillbefinalizedbased onPMOsreviewandapprovalofwhitepaperissue currentlywrittenupbytheInternationalworkinggroup. ForInvestmentIncomeoncertainEndowmentsand Gifts,theSchoolofMedicine,otherdivisions,aswellas HealthSystemaffiliatesassessa"Tax"of15%.The "taxed"dollarsincreaseanestablishedsinkingfund account.Therequirementisthatwebuildavalidationin SAPthatrequiresestablishingthe15%taxupon recognitionoftheinvestmentincomeontheidentified EndowmentsandGifts.Thisisanopendesignissue. Additionalexplanationrequiredfortransfersdonemore than90dayspasttheoriginaltransaction. Enhancementisidentifiedbutnotapproved.Thiswillbe trackedbytheHopkinsOneSponsoredProjectsTeam

IdentificationofDetailedClosingSteps

High

HowardCountyGeneralHospital ConsolidationwithJHHS

High

AppliedPhysicsLabConsolidationwith JHU

High

ForeignAccesstoSAP

High

TheSchoolofMedicine,otherdivisions,as wellasHealthSystemaffiliatesmay High automaticallyTaxonInvestmentIncome forCertainEndowmentsandGifts.

NonPayrollCostTransfersAgedGreater Than90Days

Medium

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IssueDescription
NonPayrollCostTransfersDataCapture Medium

Impact

AdditionalInformation
Fieldswillberequiredforthisprocess(datefield, reason/referencecode,andthedocumentnumberatthe lineitemlevel) Possibleenhancementisidentified(ifexistingfields cannotaccommodatetheneededdatacapture)

NonPayrollCostTransfersAdditional Information

Medium

Additionalinformationwillberequiredforcertainreason codesorGLaccounts. Enhancementisidentifiedbutnotapproved.Thiswillbe trackedbytheHopkinsOneSponsoredProjectsTeam

9.4.10 AuthorizationandUserRoleConsiderations
RolesidentifiedwithinGLareaareasfollows:

Role1ChartOfAccountsMasterdataAdministrators
Approvalprocessforallmasterdataobjectsmustbedefinedinpolicyprocedure documentation. Creationmustbecentrallycontrolled(SAPcentralsupportgroupFIteammembers).

Role2Financedataviewer
AllGLaccountantswithSAPuserIDcanreviewalldataincludingmasterdata,transactions anddocumentsacrossentireFImodule.

Role3Financesenioraccountant
GLaccountantcanprepareandpostJournalentry.

Role6Financetechnicalinterfaceprocessor.
Thisfunctionalrolewillberesponsibleforhandlingtechnicalerrorintheinterface. Asystemaccountantwillhandledifferenttypesoferrorslike, Iftheinterfacedoesnotexecute,followsuponthoseissues. Interfaceisexecutedbutsometransactionsfailcreateserrorlog

Role9Financeclosingspecialist
SAPcentralsupportgroupwillhandlethecloseprocess/programscentrally.However functionsthatwillbeperformed/supportedoutsidetheSAPcentralgrouplikeabilitytopost inspecialperiod1316inSAPforadjustments,accrualsetc,willbeperformedbythisrole.

Role10Financereportviewer
OnerolemappedtoexecuteandviewfinancialreportswithincoreSAPR/3system.

Role11Financereportconfigurationspecialist
ThispersonwillbetrainedonreportwritertoolandcancreatereportgroupsetcinSAP system.AlsothiscanrolecanprovideaccesstosomereportsthatRole10aboveis restrictedfromaccessinginFIsystem. PleaserefertoAuthorizationRoleSpreadsheetforrolemappingtospecifictransaction codes.

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