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Cost management 101DASA-CE TrainingCM 101 TrainingSection 1: Cost Management OverviewWhat are costs and why is managing costs important?Armys overall objectivesChange enablers o support Cost ManagementThe process of Cost Management and how it differs from Budget ManagementSection 2: Cost Model ComponentsDefining the various cost objects (which replace APCs/JONOs) within a Cost Model, e.g. organizations, products, services, jobs, etc.Understanding decision points of where to capture informationSection 3: Cost Flow MethodsThe difference between cost capturing, allocations, and assignmentSection 4: Cost Model BuildReflecting organizational structuresReplacing APC/JonosMission #2: CM 101 Training22WAVE 8 Contingency (All Other)CNVMOCKCYCLECMBUILDCMTRNGHQDESIGNWAVE 7 NE (BRAC) & ARCNVMOCKCYCLECMBUILDCMTRNGHQDESIGNWAVE 6 ARNGCNVMOCKCYCLECM TRNG & BUILDHQ DESIGNWAVE 5 PAC, EUR & ARCNVMOCKCYCLECM TRNG & BUILDHQDESIGNWAVE 4 NECNVMOCKCYCLECMBUILDCMTRNGHQDESIGNWAVE 3 WECNVMOCKCYCLECMBUILDCMTRNGHQDESIGNWAVE 2 SECNVMOCKCYCLEFY2010FY2011FY2012234123411ONDJFMAMJJASONDJFMAMJJASONDJS(Macro-level)COST MANAGEMENT TRAINING3DASA-CE CM Schedule

3Deployment strategy involves

Releases -- refer to functionality in system Waves refer to systematic implementation over time Sites typically refer to forts or installations that include mission, installation and tenant organizations

Last updated 08/11/10DASA-CE CM Schedule(GFEBS GCSS-A CC file exchange)Wave CYCLEMOCKPRODGFEBS GO-LIVE Provide to GCSS-AReceive from GCSS - AProvide to GCSS-AReceive from GCSS - AProvide to GCSS-AReceive from GCSS - A38/9/108/20/1010/1/1049/8/109/21/1011/1/1011/15/101/1/11510/6/1010/20/1011/19/1012/9/102/7/112/18/114/1/1161/7/111/21/113/8/113/21/115/3/115/16/117/1/1174/6/114/19/116/7/116/20/118/8/118/19/1110/1/1187/6/117/19/118/4/118/17/1110/3/1110/17/111/1/124Team 1Team 2Team 4Team 5Consolidation TeamConversion TeamCOMMAND SITE POCSCREATECAPTURE TEAMSCONTROLDASA-CE CORE TEAMCONSOLIDATEGFEBS TEAMCONVERTCORRECTCORRECTCORRECTDATAVALIDATIONDATAVALIDATIONINPUTVALIDATIONOUTPUTVALIDATIONCM Master Data Build

Team 35DASA-CE / GFEBSDASA-CE / Army5Define Cost CentersCost Center CNV FileAcType Rate CNV FilePerform Faces to SpacesWalk ThruAPC/JONO FileIdentify Internal OrdersIdentify WBS ElementsInternal Order CNV FileWBS Element CNV FileMapped APC/JONO FileFaces to Spaces FileFMY1 GFEBS LOA For FCMDTS GFEBS LOAsAXOLGFEBS LOAsDCPSGFEBS LOA TOP LOADTime Tracking GFEBS LOATasksGFEBS CNV FilesField Mapping FileLegacy System UpdatesLEGENDCM Overview Process6Master Data: Cost CentersA Cost Center = Organization; which:Incurs costsHas a manager who is accountable for those costsHas a long life span of more than 1 year (typically years)Can be assigned informal budgetA Cost Center accounts for resources:People: Ops & Maintenance, DOIM IT Support, etc.Facilities: Warehouses, Hospitals, Office SpaceEquipment: IT server farm, Cranes/TrucksBlended: mix of resources within a organization, e.g. Vehicles and Mechanics

7Cost Center Master Data Elements

8Walk through how to determine the starting point for Cost Center; e.g. G3 FMS extract, Wire Charts, etc.Walk through each data element associated to the Cost Center for determination of valuesUnderstand the difference between the Cost Center Hierarchy and the Funding Distribution flow

APC / JONO Mapping to Cost Objects

The Paradigm ShiftArmy has committed to new information technology applications (i.e. ERPs) such as GFEBS, GCSS, LMP, etc.

Within these applications: APCs no longer exist

The core of everything that RMs currently rely on has now changed.

APC Master File10The limited cost culture that is present in the Army is embedded into the APC string.

GFEBS is eliminating the APC string but the analytical need still remains. DASA-CE has put together a team to build to cost management perspective, or the cost model to Army. 10SoWhats Next?..chaos, destruction and anarchy?

Or an opportunity to re-build with a link from legacy to GFEBS with APCs as the rosetta stone?

11Although the world is changing the APC is a key link. This change doesnt need to leave a wake of destruction but rather should offer an opportunity for change.11Preserving the APC Information Mapping to GFEBS

Why Map STANFINS APCs/SOMMARDS JONOs to GFEBS Cost Objects?Allows for retention of budget dataBegins a transition to a Cost CultureEnsures all cost management master data has been identifiedBegins building a dictionary to help translate from legacy-ese to GFEBS-ese to complete transition taskers.Provides a crosswalk for merging legacy data with GFEBS data for mid-year go-livesSupports generation of cheat-sheets for end user to know what to now use as their codes

12WHY MAP:

Going through this process helps RMs to understand How APCs are replaced within GFEBS by multiple different Budget & Cost Objects.Having Legacy APC codes mapped to GFEBS objects provides a crosswalk table that can be utilized by organizations to combine STANFINS data with GFEBS data when executions in both financial systems for the same fiscal year.Ensures all cost management master data has been identified to be created within the GFEBS conversion load sheets the capture teams generate.12Mapping ProcessThe APC Master File will go through the following process:APC File is pulled for the ASNs represented at each siteGFEBS Budget Data elements are addedFile is manipulated to include information for each command Additional fields added for GFEBS required taskers (e.g. DTS, AXOL, FCM, etc.) Different GFEBS cost objects columns are added which will replace the APC codes are put next to each APCIndicator representing that APC has been Mapped, Comments column is utilized to capture information between resources

136. Allows the file can be filtered throughout the process to focus on APCs for specific scenariosAPCs: Used to ReflectCreate/Control Budget AuthorityDFAS/STANFINS Journal VouchersTypes of expense, i.e. EORsReimbursable customersOrganizations/unitsEvents, e.g. mobilizations, chaplains retreat, hurricane, etc. & Other Items

1414Scenario #1: Budget LOA

Enter X in MAP columnEnter NA IN GFEBS in COMMENT column STANFINSGFEBSCreate Budget Address APC and push obligating authority to addressDistribute Budget from top down and where end generates Budget Address15Many of the APCs are generated to create the funding lines of accounting budget LOAs.

Sometimes they are listed as FAC 0s but more likely are FAC 3s with some logic in the APC code which indicates it is a funding LOA.

Scenario #2: DFAS/STANFINSRevenue Collection APCsAPCs for Unfunded Leave Journal VouchersAPCs for Unmatched Disbursements

Enter X in MAP columnEnter NA IN GFEBS in COMMENT column 16Scenario #3: Organizational viewMany of the FAC 3 APCs are utilized to represent an Organizational viewThese will be mapped to the Cost Center Code

3BCT2BCT1BCTMSECIVHR Civilian Employees DIVBNBN BN Enter X in MAP columnAPCDESCRIPCOST CENTERINTERNAL ORDERWBSMAPCOMMENTSRYBP88TH BSB PREDEPLOYMENTWJN4AAF1201 PREXUNIT CCRYBRCEILING USE ONLYXNA IN GFEBSRYBS88TH BSB HHDWC27T0XUNIT CCRYBT88TH BSBWC27AAXUNIT CCRYBU88TH BSB DISTRO40002435XUNIT CCRYBV88TH BSB MAINT CO40002440XUNIT CCRYCSHHC 1ST CSB40002243XUNIT CCTCG1G1 RETENTIONW6DHAAXG1 CCEnter Temporary CC Code in column DASA-CE CM Team Updates CC # once created in GFEBS17Organizations:

APC codes often did not go to the lowest level of the organization however within GFEBS there will be a codeSome organizations are generating DTS LOAs per cost centers (For TDA Orgs)Many APC typically map to a single cost center since organizations usually spend more than one budget LOA

17Scenario #4: CustomersAPCs representing customers are listed as FAC 8Reimbursables are supported using WBS Elements within GFEBS

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Scenario #4: CustomersReimbursables require the WBS Element to be associated with a Sales Order which generates the AuthorityNot Master Data created by DASA-CE Cost Master Data Team Created by users at field levelOnce manually created within GFEBS the corresponding WBS Element code can be associated with the APC code within the APC Mapping

Enter CREATE IN GFEBS in COMMENT column Enter X in MAP columnEnter WBS Element in column once createdEnter GFEBS in column until created19 19Scenario #5: EORsEOR data is captured and reportable currently without an APC and will not be mapped for GFEBSAPCs often created for CIV PAY these will not need to be mapped since replaced with the faces-to-spaces exercise

20Scenario #6: Products/Services and EventsSome FAC 3 APC codes represent Products/Services Produced by the command (e.g. TRADOC Courses, IMCOM SSPs, FORSCOM: Mobilizations, etc.)Mapped to Internal Orders if not Project-basedShort lived not perpetual in nature like an organization (e.g. Conference, Hurricane, Training Event)Can be informational only (called statistical orders) in which case usually an org/cost center is posted to as wellTypically only consume one budget LOA but can cross multiple if necessaryOften for types of travelMapped to WBS Elements if Project-based (e.g. IMCOM DPW SSPs, Exercises, PEO Projects, etc.)

2121GFEBS: Internal Order ExampleEnter NEW IO INTERNAL ORDER column Enter X in MAP columnDASA-CE CM Team updates IO # once created in GFEBSAPCDESCPTCost Center IOWBSMAPPEDCOMMENTS*DB6EPROVIDE CAC/ID CARD SERVICES10003473XTOP LOAD IODB8TPROVIDE CASUALTY OPERATIONS SVCSNEW IOXDB7EPROVIDE DEPLOYMENT CYCLE SERVICESNEW IOXDB8UPROVIDE PERSONNELL PROCESSING SERVICES10003476XTOP LOAD IODB8VPROVIDE MILPAY SERVICES10003477XTOP LOAD IODB8WPROVIDE PRE-TRANSITION SERVICES10003478XTOP LOAD IODB8FPROCESS INDIV PERS ACTION & MIL SERV10003479XTOP LOAD IODB7APROVIDE POST-TRANSITION SERVICES10003482XTOP LOAD IODB9KPROVIDE HUMAN CAPITAL SYSTEM AUTOMATION SER10003482XTOP LOAD IO* Example is IMCOM SSP Comments are command specific22APCs: Next StepsReview kinds of money for funding structures

Walk through APC file by scenarios

Identify additional scenarios if applicable

Document issues which need to be resolved

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