AU TO M AT I N G YO U R I N T E R N A L B I L L I N G W I T H I N T E R U N I T B I L L I N G, WO R K F LOW, A N D M A N AG E R T R A N S AC T I O N R E V I E W

SESSION 18134

June 20, 2018

PRESENTERS

J.D. Kuwica

Program Director, OneLink Optimization

Kaiser Permanente

jeffrey.d.kuwica@kp.org

Jessica Mann

Practice Director, Grants Management

SpearMC Consulting

jessica.mann@spearmc.com

25 years – PeopleSoft Experience (FCM since r2.2)

Business Architect role at McDonnell Douglas/Boeing, Verizon Wireless, Countrywide Financials and KP

17 Years – PeopleSoft Consulting Experience

15 Years – Specialization in Grants Management

Grants, Project Costing, Contracts, Billing, Accounts Receivable, Commitment Control

# of Employees: 208,975

# of Physicians: 21,275

# of Hospitals: 39

Operational Rev: $72.7 billion

Annual Grants Fund.: $270M

Grants Programs: over 2500

KAISER PERMANENTE & ORACLE

Go-Live: PS 8.9 in Aug 2014

PeopleSoft Ver.: 9.2 Image 24

PeopleSoft Tools: 8.55.16

Modules: AP, AM, AR, BI, CA,

CM, EM, EX, GL, IN, KK, LA,

PC, PO, PV, SP, SS

▪ PeopleSoft FSCM, HCM, SCM, Grants Healthcare Research

▪ PeopleSoft Hosting on Oracle Cloud Infrastructure

▪ PeopleSoft & Tools Training

▪ Testing as a Service

▪ PeopleSoft Reseller since 2008

▪ PTF and Test Automation

▪ Oracle Hyperion and PBCS

▪ Oracle Business Intelligence

▪ PeopleSoft Managed Services

About Us

Founded in 2004, SpearMC specializes in:

▪ Labor Cost Distribution for Funded Research

▪ Transfer Pricing Agreements

▪ Effort Reporting for Grants

▪ Custom Financials Mapper for Growth and Acquisitions

▪ Billing Integration with Epic, Cerner, Kaufman Hall

▪ Hyperion Planning and PBCS integration with PeopleSoft

▪ PeopleSoft Clear Benefits

Focus on HealthcareSpearMC offers products and services that compliment and support Oracle applications.

2017 and 2018 HIUG Finance Community Sponsor

OVERVIEW

Like many healthcare organizations, Kaiser Permanente (KP) has various types of internal billings. It is common for one Grants Region at KP to sub-contract with another Region to perform a portion of an award. In addition, Projects and Grants can be funded from internal sources. As the number of KP regions grows and the volume of inter-regional sub-recipient billing and internal customer billing increases, it became important for KP to automate these types of approvals and billings.

AGENDA - PART 1

INTER-REGIONAL SUB-RECIPEINT BILLING SOLUTION USING INTER-UNIT BILLING AND BILLING INVOICE APPROVAL WORKFLOW

1. OVERVIEW

2. GOAL

3. SOLUTION OVERVIEW

4. CONFIGURATION

5. CHALLENGES/LESSONS LEARNED

AGENDA - PART 2

INTERNAL CUSTOMER BILLING SOLUTION USING MANAGER TRANSACTION REVIEW

1. OVERVIEW

2. GOAL

3. SOLUTION OVERVIEW

4. CONFIGURATION

5. CHALLENGES & LESSONS LEARNED

INTER-REGIONAL SUB-RECIPIENT BILLING (ISB)

OVERVIEW & GOALS

ISB OVERVIEW

It is common for the recipient of Federal Grants to

engage sub-recipients to perform some of the work. KP

Research Institutes (Prime) collaborates with other KP

regions (Sub) to carry out a large amount of the research

work.

Since both Prime and Sub KP Research Institutes entities

incur expense, it is appropriate that both recognize

revenue and expense. However, expense incurred by the

Prime paying the internal Sub should eliminate with the

revenue recognized by the Sub.

ISB GOALS

• Eliminate the process of printing and depositing of

checks to KP entities

• Continue to allow revenue to be recognized on both

sub and prime's GL (eliminated in consolidations)

• Eliminate inter-regional revenue and expense

consolidations timing issues

• Do not book anything to Prime's GLBU until the invoices

is approved by the prime

• Standardize business process and accounting as much

as possible across Grants Business Units (some of which

are not using GM/PC/CA/BI)

ISB SOLUTION OVERVIEW

• InterUnit Billing with Supplemental Data with a few

minor customizations

• IU Billing uses AP/AR Netting to eliminate paper checks

• Billing Invoice Approval and Invoice Supporting

Documents

• Custom approval page (to meet security requirements)

• Invoice approval eliminate timing delays in Eliminations

• Billing Spreadsheet Upload for KP Regions not yet

using GM/PC/CA/BI

• Revenue Reclass allocation to reclass revenue to inter-

regional at the time of billing (uses custom view)

• Eliminates manual accruals of Revenue

Go Live:

7/18/2018

ISB ACCOUNTING

ISB ACCOUNTING

INTER-REGIONAL SUB-RECIPEINT BILLING (ISB)

CUSTOMIZATION - IU

BILLING APPROVAL

ISB PROPOSAL

ISB PROPOSAL

Created new view which

allows the selection of IU

Grants Customers

ISB PROPOSAL

Created new Inter-regional Sub-recipient

Products to default a new Bill Type (used in

Billing Workflow and defaults specific

Invoice Numbering format)

ISB GENERATE AWARD

Customized the Generate Award

process to allow creating a Contract

for an InterUnit Customer when the

Contract Classification is Standard

ISB CONTRACT

Customized Contracts to allow saving

a Contract with an InterUnit Customer

on the Contracts Billing Options page

when the Contract Classification is not

Internal

ISB SUPPLEMENTAL DATA

Using Delivered Contract Line Supplemental to

store the Prime ChartField info to be charged.

In Scope Prime Example

Out of Scope Prime Example

ISB BILLING UPLOAD

Simplified the Billing Upload to minimize the

entry required by the end users and automates

the accounting distribution.

ISB BILLING UPLOAD

ISB APPROVAL ROUTING

Workflow Step (sequential) Skip Select

FDA

CO GA NCAL WA HI NW SCAL

Project Team - GM Y N X

Project Team - (1) PID, (2), PM, (3) PI Y N X X X

Project Team - PM Y N X

Billing Invoice Approver (Role) N Y X X X X X X

Billing Invoice Approver (Role) and Project Team –

GM

N Y X

FDA Approver (selected by Billing Invoice Approver) N N X X X X X X X

ISB DELIVERED APPROVAL PAGE

ISB DELIVERED APPROVAL PAGE

ISB WORKLIST

ISB CUSTOM APPROVAL PAGE

Fiscal Approver look up

validates based on Prime

ChartFields and Invoice

Total against existing

custom FDA tables

ISB CUSTOM APPROVAL PAGE

ChartFields displayed is dynamic

based on Supplemental Data

Configuration

ISB CUSTOM APPROVAL PAGE

ISB CUSTOM APPROVAL PAGE

ISB CUSTOM APPROVAL PAGE

ISB CUSTOM APPROVAL PAGE

ISB WORKLIST

ISB CUSTOM APPROVAL PAGE

ISB CUSTOM APPROVAL PAGE

INTER-REGIONAL SUB-RECIPEINT BILLING (ISB)

CONFIGURATION - IU

BILLING

SUPPLIER

CUSTOMER

INVOICE NUMBERING ID

BILL BY ID

BILL PLAN DEFAULT TEMPLATE

PRODUCT

PRODUCT RATE DEFAULTS

SYSTEM TRANSACTION MAP

ANALYSIS TYPE/ANALYSIS GROUP

ACCOUNTING RULES

ACCOUNTING RULES

INTERUNIT PAIRS

ACCOUNT

DEPOSIT TYPE

BANK

BANK BRANCH

BANK ACCOUNT

BILLING DEFINITION

SUPPLEMENTAL DATA

ALLOCATION STEP/GROUP

ALLOCATION STEP/GROUP

INTER-REGIONAL SUB-RECIPIENT BILLING (ISB)

CONFIGURATION –

BILLING APPROVAL

WORKFLOW

BILLING DEFINITION

APPROVAL PROCESS DEFINITION

USER LIST DEFINITION

USER LIST DEFINITION

INTER-REGIONAL SUB-RECIPIENT BILLING (ISB)

CHALLENGES AND

LESSIONED LEARNED

ISB CHALLENGES & LESSONS LEARNED

• Needed Image 24 for Billing Approval for Worksheets

and Contracts Supplemental Data

• Competing requirements for revenue

• Lengthy and integrated approval and testing process

• Billing Spreadsheet Upload Challenges

INTERNAL CUSTOMER BILLING (ICB) OVERVIEW & GOALS

ICB OVERVIEW

Internally funded projects are projects which are funded

by entities within Kaiser Permanente. While an award is

issued and invoices are created, no revenue is recorded

for the work performed on these projects, instead costs

are reimbursed by transferring the costs to the entity

providing the funds using an expense accounts.

ICB GOALS

• Automate cost reimbursement

• Simplify the billing/approval process

• Standardize business process and accounting as much

as possible across Grants Business Units (some of which

are not yet using GM/PC/CA/BI)

ICB SOLUTION OVERVIEW

• Manager Transaction Review and Accounting Rules with

custom security

• New view and queries for project review/approval

reporting

Go Live:

4/11/2018

ICB SOLUTION OVERVIEW

ICB SOLUTION OVERVIEW

GLBU/Affiliate,

Department and Location

for the KP Sponsor

• Who will be funding

the project

• Who is being charged

ICB SOLUTION OVERVIEWGLBU on the

transaction

GLBU on

the Project

Organizati

on =

• Who

will be

funding

the

project

• Who is

being

charged

INTERNAL CUSTOMER BILLING (ICB) CONFIGURATION

INSTALLATION OPTIONS

PROJECT TYPES

ANALYSIS TYPES/GROUPS

RATE SETS

ACCOUNT/COMBO EDITS

ACCOUNTING RULES

ACCOUNTING RULES

REVENUE/BILLING PLAN TEMPLATES

PRODUCTS

PRODUCT RATE DEFAULTS

PRODUCT TYPE SECURITY

PRODUCT TYPE STATUS PATH

INTERNAL CUSTOMER BILLING (ICB) CHALLENGES AND

LESSIONED LEARNED

ICB CHALLENGES & LESSONS LEARNED

• Manager Transaction Review limitations

• Unapprove bug

• F&A

• Transaction Adjustment

• Project Excel to CI upload

• PC Business Units with PCBU/Project/Activity optional

needing to be trained to enter Activity ID

• Update for new SetID required updates to queries not

joining to TableSet Control

CONCLUDING THOUGHTS ANY QUESTIONS?

QUESTIONS?

PRESENTERS

ALL INTERACT PRESENTATIONS WILL BE AVAILABLE FOR DOWNLOAD FROM THE CONFERENCE SITE

Presenter Title Company Email

J.D. Kuwica Business Architect,

OneLink Program

Kaiser Permanente jeffrey.d.kuwica@kp.org

Jessica Mann Practice Director –

Grants Management

SpearMC

Consulting

jessica.mann@spearmc.com

THANK YOU!