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Transcript of PS-DNA
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.
Compass for
FAM End UsersModule 5: Compass Project AccountingMay 2013
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.2
Module topics
Compass Project Accounting overview
Periodic Accounting Proportional Performance Accounting
Completed Performance Accounting
Amortization Accounting
Final accounting considerations
Labor expenses
Project Accounting and conclusion
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.4
Amortization process
HP accounting rule
Costs incurred during the Transition
phase of a project are not recognized
until Ongoing Delivery begins
Defer actual expenses to the
Sheet
Deferred expenses are poste
long-term or short-term amo
expense account
Amortized expenses are divid
over the life of the Ongoing D
once delivery begins
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.5
Compass amortization
RA key
PS-DNA
Key features
Automates deferral of expenses to long-term/short-term deferred accounts (19140100, 1512
Correctly defers and amortizes expenses incurred after amortization has started
Uses the historical accounting rate
Exceptions and special features
Is not a standard SAP RA key (custom code)
Separate batch job, and schedule, to standard RAdoes not run daily
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.6
Batch job schedule
Batch job for PS-DNA is scheduled to run twice a month, on WD-4 and on last calendar day at 1
time
For certain efforts, like migrations, additional PS-DNA jobs can be scheduled
Each fiscal year, the dates for PS-DNA job, standard, and others are published on: FI Jobs Calen
If the PS-DNA job run fails to complete successfully, a ticket is raised by GSAO to SPS (Services
Support Team) to investigate
If the PS-DNA job run is in Finished status, and if there are any PS-DNA errors, GSAO reports th
the country contacts (EngCOS/FAM) to get them cleared
After the errors are fixed, they will not appear in the error logs when the scheduled program ru
http://prime21.sharepoint.hp.com/teams/Q2C_BA_BP/Published%20BPs/FI_Jobs_Calendar.xlsxhttp://prime21.sharepoint.hp.com/teams/Q2C_BA_BP/Published%20BPs/FI_Jobs_Calendar.xlsxhttp://prime21.sharepoint.hp.com/teams/Q2C_BA_BP/Published%20BPs/FI_Jobs_Calendar.xlsxhttp://prime21.sharepoint.hp.com/teams/Q2C_BA_BP/Published%20BPs/FI_Jobs_Calendar.xlsx -
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.7
When to use amortization
Apply PS-DNA to WBS elements in:
Transition, Transformation, Build, and Manage phases Consulting projects under the umbrella of an outsourcing arrangement
Incremental projects and change orders that modify an existing outsourcing
agreement with addition of significant new scope, new services, or new
functionality beyond the base outsourcing agreement
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.8
Impact of PS-DNA on WBS design (1 of 3)
PS-NRA
PSPS-DNAPS-DNAPost costs and perform
amortization accounting at the
lowest level
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.9
Impact of PS-DNA on WBS design (2 of 3)
Labor costs must not be posted to a
lower level element with PS-DNA as
parent
PS-NRA
PS-DNAPS-DNA
Labor costs
This is a special rule that pertains to labor cost only
You cannot post labor cost to a lower level than PS-DNA
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.10
Impact of PS-DNA on WBS design (3 of 3)Third-party products requiring CAN
PS-NRA
PS-DNA
OPEN
PS-NRA
CANS
Labor or other costs posted on CAN WBS element will
not be considered for deferral
Labor and other non-CAN costs must be posted
directly on the parent DNA WBS element
Requires separate WBS element for CAN budget with
CAN-specific user status settings
Status codes CANS, CSSP, CCLS cannot be used on PS-
DNA element
Labor and no
poste
CAN Budget a
poste
NOTE: CAN process is covered in
detail in the Acquisitions lesson to
follow later in the course.
PS-NRA
PS-DNA must be at the lowest level in the hierarchy, EXCEPT in the
case of third-party Product acquisitions using CANS User Status
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.12
Accounts considered for deferral and amortizaSCS account AFM account Description
3304MP9999 33040200 Third-party products
3310MP9999 33100100 Third-party services
3327F*9999 33270100 Project expenses (used in US only)3327MP9999 33270100 Project expenses
3363MP9999 33630000 CATS IC labor transfer
336326xx99 33630000 OMEGA IC billings
3365MP9999 33650000 OMEGA Domestic billings
3370MP9999 33701100 Equipment/Other Overheads
337126* 33712600 Response Center Charges
3372MP9999 33720100 Cross charge from other BU
337326* 33732600 Cross charge from MSGD
3851MP9999 38510300 Freight outbound expense
3852MP9999 38520800 Freight inbound expense
3854MP9999 38540300 Warehousing expense
3326MP9999 33260100 HP labortrade delivery (manual postings)
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.13
WIP account usage
The following accounts are used in conjunction with WIP adjustments on PS-DNA
Account Description Business area usage
3345DA9999
(AFM: 33450000)
Cost of Sales adjustment account for Labor and
third-party Services (Work in Process Deferral,
Contra Cost of Sales)
All Compass business areas
1914MP9999
(AFM: 19140100)
Long-Term Deferred Direct Costs All Compass business areas
1512MP9999
(AFM: 15120100)
Short-Term Deferred Direct Costs All Compass business areas
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.15
Long-term and short-term cost deferrals
During deferral (status = OPEN)
The forecast start and end dates are used to calculate the amortization period (number of mon Any cost posting is divided by this number of months, then:
A value equal to 12 months is posted to short-term deferral
The remainder to long-term
During amortization (status = AMRT)
The remaining amortization period is calculated from the current date to the forecast end-date
If this is > 12 months, amortization is from long-term deferral If < 12 months, from short-term deferral
Amortization amount is the remaining deferred balance divided by remaining amortization mo
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.17
Amortization principles
The WBS element User
Status OPEN/AMRT andforecast start/enddates control thedeferral oramortization of costs
OPEN: Collect costsand defer
AMRT: Recognizeremaining deferredcost over remainingperiods
Amortization beginswhen user status ischanged to AMRT andnot on forecast startdate
Forecast en
controls th
periods ove
amortizatio
place
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.18
Amortization periods
Month 1 2 3 4 5 6 7 8
Status OPEN OPEN OPEN OPEN OPEN OPEN AMRT AMRT A
Forecast
Start Date
Costs incurred in months 1-6 will be
deferred and begin amortization in
month 7
Costs incurred in months 7-12 will
be amortized immediately
Costs incurred after month 12
should be posted to a new WBSe and
be recognized immediately and not
amortized
Amortization begins
when user status is
changed to AMRT and
not on forecast start date
User status controls when am
Forecast End Date controls th
periods for amortization
Forecast Start Date is not use
by SAP
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.19
Amortization example
Am
Costamo
Costamo
Costamo
Costs Posted in Amount Deferred Deferred BalanceRemaining
periodsRecognized
Remaining
Deferred
Mo. 1 $1,000.00 $1,000.00 $1,000.00 60 $0.00 $1,000.00
Mo. 2 $1,200.00 $1,200.00 $2,200.00 59 $0.00 $2,200.00
Mo. 3 $1,500.00 $1,500.00 $3,700.00 58 $0.00 $3,700.00
Mo. 4 $1,000.00 $1,000.00 $4,700.00 57 $0.00 $4,700.00
Mo. 5 $1,200.00 $1,200.00 $5,900.00 56 $0.00 $5,900.00
Mo. 6 $0.00 $0.00 $5,900.00 55 $107.27 $5,792.73
Mo. 7 $3,000.00 $3,000.00 $8,792.73 54 $162.83 $8,629.90
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.20
Amortization calculation
= periods from current period to forecast end date
Amortization amount this period
Total Incurred Cost Total Amortized To-Date
Remaining Amortization Periods
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PS-DNA user statusesUser status Impact with PS-DNA Notes
OPEN or NOLA Capitalization occursExpenses posted will be
deferred
PS-DNA will determine the po
posted to long-term or short-
accounts
AMRT Amortization occursExpense Recognition
takes place
PS-DNA uses the WBS forecas
datesto determine amortizat
WKAC Work Accepted: Any remaining deferrals on the
Balance Sheet will be reversed to the P&L
This user status must be used
status to CLSD
CLSD Closed: No postings allowed Must use WKAC before CLSD
Must be
applied in
sequence
IMPORTANT: PS-DNA job must be allowed to run between making any status changes.
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.22
PS-DNA golden rules
Always update User Status sequentially
OPEN
AMRT
WKAC
CLSD Do not skip the WKAC step
Do not go backward (such as AMRTOPEN)
Wait for PS-DNA to run between changes
Do not post manual JVs for expenses against 33450000 (WIP Adjustments Labor and third-par
without seeking support
Do not use PS-DNA for amortization of vendor prepayment
Separate Process Guide
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Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.
Thank you