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Introducing a New Chart
of Accounts to your
Enterprise
Session #31599
March 18, 2013
4:30 – 5:30
Mark R. McCabe
Finance Manager, Indianapolis Department of
Public Works
Served as Finance Lead on City of
Indianapolis/Marion County ERP Project from
June 2010 to November 2012
As consultant worked on State of Indiana
PeopleSoft implementation in 2007/2008
City of Indianapolis/Marion County initiated
ERP Project in 2009
Selected PeopleSoft 9.1
Project initiated June, 2010
Necessarily required introducing a new Chart
of Accounts (COA) to the enterprise
Enterprise Background
Project Highlights
Chart of Accounts Background, Issues
Detail Chartfields
Lessons Learned/Recommendations
Municipal Corporation
Mayor is the Executive
Public Safety
Public Works
Metropolitan Development
Parks and Recreation
Executive/Legislative
18 Independent Agencies
Elected offices include Auditor, Sheriff,
Treasurer, Prosecutor, Public Defender,
Assessor, Clerk, Recorder, Surveyor, Coroner
Combined City/County effort, shared project
between Information Services Agency, City
Controller Office and County Auditor Office
RFP Initiated: Mid 2009
Project Initiated: June, 2010
Original Go-Live Target: July 2011
Actual Go-Live: January 2012
Phase I: (Jan 2012)
General Ledger
Purchasing
Accounts Payable
Budgeting
HR
Payroll
Time and Labor
Phase II: (in progress)
Project Costing
Grants Module
Asset Management
AR/Billing
Cash/Treasury Mgmt
Mainframe system COA was similar structure
However, City and County used COA differently
County Agencies did not enter their own
transactions to system
Mainframe system used an “index
code” that aggregated multiple other
chartfields into one
Index Code was effectively another chartfield that
we had to introduce to the mapping tables. We
had previously assumed that the code was the
“sum of its parts” as the original design intended.
Field Required? Definition / Description
Fund Yes Classification of revenues or expenditures based on source,
purpose, or activity associated with the funds.
Department Yes Classification of Agency structure.
Account Yes Account represents “what” you are buying in a transaction, or
for revenue, what type of revenue is being recorded.
Program Yes Function of government for Comprehensive Annual Financial
Report (CAFR). Can be defined at a lower level for programs.
Project /
Activity
No To record transaction associated with Grants or Projects.
Site No Geographic location associated with a transaction.
Business Unit Yes Business Unit identifies the organizational entity in a
transaction (distinct from Department code). Note that BU
differs between General Ledger and Accounts
Payable/Purchasing transactions.
Bud Ref Yes The year with which the transaction funds are associated. Bud
Ref will almost always be the current calendar year.
COA Project Team should have a balance of:
System programming/development knowledge
Accounting knowledge/expertise
Institutional financial operations/management knowledge, experience
Authority to make decisions and enforce them
COA Project Team should learn the structure of the new system (as best you can) before you start the chartfield translation process
Understand (as best you can) how budgetary control works relative to COA structure
How does security/access to data work relative to COA structure?
Adhere to the structure of your new system in your COA design.
Avoid customization outside the recommended structure as much as possible
Recognize the critical relationship between the COA and reporting
Gathering reports and desired reports early in the project should assist in COA design
Is Payroll part of your ERP project?
If so, and Payroll operations is under HR (not Finance), be sure that your finance team is part of the HR/Payroll setup
Will your users be able to understand the new COA structure and use it correctly?
Your ability to get good information from your system is contingent on your data entry staff / requisition writers / voucher writers.
Do they know the codes they are suppose to enter?
What if they (or, will they be able to) enter “any code that works?”
Be sure your project staff fully understand the new structure in order to provide support and training to users
Terminology is important; create a list of terms early in your project and keep it up to date
What Excel sheets, interfacing systems, external systems, etc. have your old COA codes?
What processes will “break” if the new codes are not updated in an external system?
Mark McCabe
Finance Manager,
Department of Public Works
City of Indianapolis
mark.mccabe@indy.gov
This presentation and all
Alliance 2013 presentations
are available for download
from the Conference site at
www. alliance-conference.com
Presentations from previous meetings are also available
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