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FastFactsFeature Presentation

March 5, 2009

We are using audio during this session, so please dial in to our conference line…

Phone number: 877-468-2134 Participant code: 182500

© 2009 The Johns Hopkins University. All rights reserved.

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Today’s Topic

In today’s session, we’ll discuss:An overview of commitments.

Defining commitmentsUsing document numbers to identify commitmentsResearching commitmentsIdentifying and resolving ‘stuck’ commitments

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Today’s Presenter

Art KennedySenior accountant for the Office of Financial Quality Control (FQC) in JHU’s Controller’s Office

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Session Segments

PresentationArt will provide an overview of commitments.During Art’s presentation, your phone will be muted.

Q&AAfter the presentation, we’ll hold a Q&A session. We’ll open up the phone lines, and you’ll be able to ask questions. Art will answer as many of your questions as time allows.

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Contact Us

If you would like to submit a question during the presentation or if you’re having technical difficulties, you can email us at: fastfacts@jhu.eduYou can also send us an instant message!

GoogleTalk – HopkinsFastFacts@gmail.comAOL Instant Messenger – HopkinsFastFactsMSN – FastFacts@jhu.edu

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Survey

SurveyAt the end of this FastFacts session, we’ll ask you to complete a short survey. Your honest comments will help us to enhance and improve future FastFacts sessions.

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Overview of Commitments

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Agenda

In today’s presentation, we’ll looking at:Identifying various types of commitments.Where to go to find more information on commitments.Tips for researching commitments.

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Defining Commitment

What is a commitment?“An engagement to assume a financial obligation at some future date.” (Webster’s Online Dictionary, 2009)

At JHU, commitments might also be called:Encumbrances (legacy CUFS).

Funds Commitments.Funds Reservations.

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Helpful BW ReportsBW Saved Favorites (http://www.controller.jhu.edu/H1/index.html)

Non SponsoredFinancial SummaryCommitment Reporting Detail

Sponsored Revenue-Expense SummaryPayroll Commitments / Non Payroll Commitments

DifferencesSummaries provide an overall view, a total for outstanding commitments, and drilldown capability.BW Saved Favorite ‘Commitment’ reports provide details for ALL commitments.

NOTE: Monthly distributed financial detail reports only contain commitments created in that month.

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Non Sponsored - Financial Summary

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Non Sponsored Commitment Reporting Detail (BW Saved Favorite)

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Types of Commitments

Payroll commitmentsNonpayroll commitments

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Payroll Commitments

These funds commitments are future salary and fringe encumbrances.Payroll commitments have 10-digit document numbers that start with 9.

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Researching Payroll Commitments

Use R3 transaction code FMZ3 (Display Funds Commitment).

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Determining PERNRUse FMZ3 to find the PERNR associated with a payroll commitment.

Click Environment, then click Original Document. The PERNR displays in the Object ID field.

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Nonpayroll Commitments

Common examplesShopping cartsPurchase ordersTravelOther

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Shopping Carts

Shopping carts are funds reservations whose 10-digit document numbers start with 1.

Once they’re approved, shopping carts become purchase orders.This shopping cart appears to be ‘stuck’—a shopping cart with this posting date would normally have become a purchase order by now (February 2009).

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Researching Shopping Carts

Use R3 transaction code FMX3 (Display Funds Reservation).

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‘Stuck’ Shopping CartsAlthough shopping carts can sometimes become ‘stuck,’ departments can usually delete shopping carts they no longer need. Departments should delete unneeded shopping carts, unless a PO has already been created. You can find instructions on deleting shopping carts on Supply Chain’s website (http://ssc.jhu.edu/supplychain/

support.html).FQC can help with further research.

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Purchase OrdersAfter a shopping cart has been approved, it becomes a purchase order.Purchase orders are 10-digit numbers that start with 2.

There are various types of purchase orders.Purchase orders for large quantities (BLPO) and extended durations (SPPO) remain open until the final portion of the expense is recognized.

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Researching Purchase OrdersUse R3 transaction code ME23N (Display Purchase Order).

What’s wrong with this purchase order?

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Closing Purchase Orders

If you’re sure that a PO should be closed, contact PO Maintenance (pomaintenance@jhu.edu). Your request must include the following.

Purchase order numberVendor nameVendor numberAssurance that no further goods or invoices will be receivedReason for request to close PO

For more information on the ME23N transaction, visit the Supply Chain Support site (http://ssc.jhu.edu/supplychain/support.html).

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Travel

Travel commitments are used for business trips commitmentsThe document number and subsequent reference number are also the TRIP transaction number. The first two digits specify the personnel area, and the remaining numbers are based on sequencing.For example, business trip commitments 150xxxxx belong to the Whiting School of Engineering

You can research these commitments using R3 TRIP.

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Identifying ‘Stuck’ Commitments

‘Stuck’ commitment – a commitment that will never be used and needs to be removed.Occasionally, commitments (e.g., payroll, shopping carts, purchase orders) become ‘stuck.’

One way to identify these commitments is by the Posting Date.

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Identifying and Resolving ‘Stuck’ Commitments

Department’s responsibilityPerform monthly reconciliation of BW financial statements to ensure that expenses have been appropriately charged.If a commitment remains open on your cost object indefinitely, try to determine the problem.Research commitments in R3.

Financial Quality Control (FQC) can assist with research and help you resolve problems.

fqchelp@jhu.edu410-516-3227

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In Conclusion

Today’s presentation provided an overview of identifying and researching various types of commitments using R3 transaction codes.It also discussed ‘stuck’ commitments and showed you how to resolve these issues.Although we were using a non sponsored cost object for this session, the same procedures and transactions apply to sponsored programs. Grants cannot be closed with open commitments.

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Resources

To determine which roles are associated with the transactions discussed today (FMZ3, FMX3, ME23N, and TRIP), visit:

http://www.jhu.edu/hopkinsone/Support/documents/RoleMatrix.xls

Financial Quality Control – Controller’s Officefqchelp@jhu.edu410-516-3277

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Q&AWe’re going to open the phone lines now!There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line.We’ll be answering questions in the order that we receive them.We’ll also be answering the questions that were emailed to us during the presentation.If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.

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Thank You!

Thank you for participating!We would love to hear from you.

Are there certain topics that you would like us to cover in future FastFacts sessions?Would you like to be a FastFacts presenter?Please email us at: fastfacts@jhu.edu

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Survey

Before we close, please take the time to complete a short survey.Your feedback will help us as we plan future FastFacts sessions.Click this link to access the survey… http://connect.johnshopkins.edu/fastfactssurvey/

Thanks again!