Account Assignment Model

A template for journal entries used to save keystrokes for repetitive entries. Account assignment models can simplify journal entries that are created monthly by entering and saving multiple sets of identical data. The Account Assignment Model can be modified during posting to add/delete/modify line items. They can be created by any user or centrally by Duke University and Duke Health System accounting areas.

Accounting Document

The accounting document represents the original financial document in the system. An accounting document can also be generated from the creation of another type of document in SAP, such as an Invoice document. Accounting documents always consist of a document header with general information about the entire document and at least two line items for the debit and credit. The balance of the document must equal zero.

Accounting Period

The period within a fiscal year during which transactions can be recorded. For Duke, the accounting period is the fiscal month, as defined in the Fiscal Calendar published by the Financial Services division.

Accrual and Deferral

Accrual and deferral provides a temporary allocation of revenues and expenses to determine the profit for the period. A distinction is made between accrued income and deferred income; accrued income includes expenses before the closing key date, insofar as they represent expenses for a particular time after that date.

Applicant

This is an attribute that exists in the PS module of SAP and it identifies the "Sponsor" of the project, such as NIH, DOE, Glaxo, etc.

Application Toolbar

The Application Toolbar is the fourth bar located beneath the Standard Toolbar at the top of the SAP screen. This Toolbar contains "shortcut" buttons (icons) for additional functions based on the screen displayed or task being performed in SAP.

Asset

An asset is defined as any building, land, equipment, or furnishings that qualifies as a capital item and is owned or leased by Duke. Every asset has an asset master record in SAP, which assigns an asset number and contains the company code, responsible cost center, location, and other information. An asset can be a simple asset or it can be represented by several asset master records (asset sub-numbers). In this case, the individual components (sub-numbers) are called assets.

Asset Class

The asset class is the main criterion for grouping fixed assets according to operational and legal requirements. Examples of asset classes at Duke include land, buildings and equipment, vehicles, and vessels. The asset class defines control parameters and default values for the depreciation calculation and other master data. Each asset master record is assigned to one and only one asset class.

Assigned JV Number

An Assigned JV number by design belongs to a department, not the contact person. This ensures the historical ability to identify the department responsible for any particular Journal Voucher.

Auxiliary

Enterprises that function in a subsidiary capacity providing services, materials or facilities to University and non-University elements. Generally speaking, they cover their own expenses. Examples are DUAA, DUFS, Golf Course, Press, etc.

BFR (Budget and Financial Reporting) Code

Departmental position code within the company code structure. Also referred to as "Organizational (Org.) Code".

The BFR code is a series of ten digit codes within the General Ledger that provides a five level organizational hierarchy structure. Every position and cost object at Duke will be linked to a BFR code at some level in the hierarchy.

BOT

Abbreviation for "Board of Trustees".

BPS (Budget Planning & Simulation)

BPS is a web-based module that replaced the use of "Pillar" for Budget Planning.

Chart of Accounts

Equivalent to Duke's set of object codes (old terminology), the Chart of Accounts (COA) in SAP contains a detailed list of G/L (general ledger) accounts within account categories. The COA includes G/L accounts for the categories of Assets, Liabilities, Fund Equity, Revenues, and Expenses. Only one COA, which is identified by the value "DUKE", exists in SAP for all the companies within Duke, although different G/L accounts can be configured by each company.

Command Code

A Command Code is a two or three-digit value, usually beginning with a forward slash ( / ), that when entered into the Command Field on a SAP screen, performs functions in like opening or closing sessions and transactions. So, a Command Code is yet another way to navigate the SAP system. Most Command Codes can be used alone or with a four-digit Transaction Code.

Command Field

A field located on the Menu bar of the most SAP screens. This field can be used to enter Transaction codes and/or Command codes to navigate the system instead of using lengthy menu paths.

Commitment

A commitment is the reservation of funds for a future expenditure. A commitment is created for both an electronic Purchase Requisition and a Purchase Order. The commitment amount will become an actual expense, when the goods are received (applicable for certain areas, such as Durham Regional Hospital and Raleigh Community Hospital with central receiving) or when the Invoice is paid against the Purchase Order.

Commitment Item

A commitment item represents the functional aspects (expenditure and revenue structures) within the Financial Management module. In other words, a commitment item in FM is the equivalent of a cost element in CO. Each cost element in CO must be assigned to a commitment item in FM, to ensure that FM receives the transaction information occurring for that cost element (e.g., cost element 646000 is linked to commitment item 646000).

Company Code

A company code is a four-digit code corresponding to an independent accounting or business unit within Duke. The company code is a division that maintains the accounting balances separately (separate set of books) and creates the legally required Balance Sheet and Profit & Loss Statement.

Controlling Area

Identifies the organization used for cost accounting purposes. All companies associated with Duke belong to the controlling area "DUKE". It is possible to carry out common controlling for more than one company code in a controlling area. Having all company codes in the same controlling area allows various assessment and allocations across companies. All companies must have the same fiscal year to be in the same controlling area.

Cost Center

Previously referred to as "Fund Code", the Cost Center defines the owner of costs or general operating expenses. Cost centers are organized by areas of responsibility. The Cost Centers are briefly outlined by Company Code as follows:

* In Company Code 0010 have seven-digit cost centers beginning with 15x, 168, 180, 190, 4xx, 5xx, 6xx, 8xx, and 9xx (such as example 157-3124). Some of DCRI's Cost Centers contain additional digits.

* Company Codes 0020, 0030, 0040, 0050 and 0060, have nine-digit Cost Centers (such as example 306060025).

Cost Center Group / Standard Hierarchy

A Cost Center Group is a grouping of one or more individual Cost Centers into areas of responsibility for reporting purposes. Each Cost Center Group is then grouped into other Cost Center Groups to ultimately create the Standard Hierarchy which includes all company codes for Duke (like an organizational chart for reporting with a top node value of "DUKE_CCA"). Each company code's Cost Center Groups are organized within the Standard Hierarchy as follows:

In Company Code 0010, the Cost Center Group "10" contains other Cost Center Groups, organized by ten-digit BFR (Budget Financial Responsibility) codes, and then by seven-digit fund code for within each BFR code.

In health system related Company Codes from 0020 - 0060, the top Cost Center Groups for each Company Code are the last two digits of each Company Code (e.g., Company Code 0030 is a Cost Center Group of "30"). These Cost Center Groups for each company are organized by areas of responsibility or service lines into eight digit Cost Center Groups, which contain other eight digit Cost Center Groups or individual nine-digit Cost Centers. All eight digit Cost Center Groups ultimately "roll-up" to the two digit Cost Center Group (last two digits of the Company Code).

Cost Element

A six-digit code that defines and classifies revenue or expenses/costs (usually equals Duke's old four-digit Object Code + two zeroes). The term "Revenue element" is also seen in the CO module to refer to codes for revenue.

Cost elements fall into two categories:

1. Primary Cost Elements = Used for initial postings of revenue and expense, and have corresponding G/L Accounts.2. Secondary Cost Elements = Used for allocations (movement of an initial posting to other "owners") of revenue and expense, and do not have corresponding G/L Accounts.

Cost Element Group

A grouping of a set of similar or like Cost Elements used to select transactions for reporting.

For example, the Cost Element Group of "6XXXXX" contains all Cost Elements from 600000 to 699999. Selecting this group on the initial screen of a report will generate a report showing any activity posted to all expense Cost Elements.

Another example, the Cost Element Group of "HSRPT", is comprised of many other Cost Element Groups and contains all Cost Elements for revenue and expenses, grouped specifically the way a Duke Health System company code needs to analyze revenue and expense. Selecting this group on the initial screen of a report will generate a report showing all revenue and expense activity grouped into subtotals for Health System reporting, such as Inpatient Revenue, Outpatient Revenue, Total Patient Revenue, etc. Each subtotal is a Cost Element Group as well.

The Cost Element Group of "DUKE_CE" is also comprised of many other Cost Element Groups and contains all Cost Elements for revenue and expense, grouped specifically the way that Duke University areas need to analyze revenue and expense. Selecting this group on the initial screen of a report will generate a report showing all revenue and expense activity grouped in subtotals. This group is intended more for University reporting, but can be used by the Health System as well.

Cost Object

The term Cost Object defines the "owner" of or responsible department for revenue, expense, or project related expense/revenue in financial modules.

Cost Objects are further defined by the following categories / terms:

Cost CenterDefines the owner of general operating expenses, allocated, loan, endowment, and agency cost objects.

Profit CenterDefines the owner of general revenue. For DUHS companies, the Profit Center also collects information from the corresponding cost center and WBS element, which allows DUHS to see revenue, expenses, and capital acquisitions in the Profit Center report.

WBS (Work Breakdown Structure) ElementDefines the owner of revenues and expenses for a project. Typically, projects have a limited duration of life, but can cross multiple fiscal years. A project for Duke includes restricted funds (research projects and clinical trials), plant funds (construction projects and DUHS capital acquisitions).

NOTE: DRH is not using PS for restricted funds and RCH does not have restricted funds.

All these terms replace the term "fund code" and "department number" used by various Duke companies in the past.

The Duke University Health System cost object number contains 9 digits:

* The first 2 digits represent the last two digits of the company code (e.g., 30 for Duke Hospital)

* The same 9 digit number is used for a department's Cost Center and Profit Center, so there is

now just one code to remember for revenues and expenses. There is a different WBS Element number for each Project, except for DUHS Capital Acquisitions prior to July 2000. NOTE: Duke Hospital and DUAP departments may still need to use the old seven digit fund code for some systems until they are converted to the SAP format.

The Duke University cost object number contains 7 digits:

* The cost object is either a Cost Center (expense collector for seven-digit funds beginning with 15x, 168,180, 190, 4xx, 5xx, 6xx, 8xx, and 9xx), Profit Center (revenue collector for seven-digit funds beginning with 11x and 14x funds), or WBS Element (expense and revenue collector for Project seven-digit funds beginning with 3xx or 7xx); and has the same digits and meaning as before SAP was implemented, except without the dash.

Cost Reimbursement Award

An award made on a cost-reimbursement basis refers to an award where the sponsor makes a commitment to award/obligate a specified amount but the actual money is not received by Duke until after the Office of Sponsored Programs (OSP) bills for the expenses incurred on the project. On a cost-reimbursement award, the Principal Investigator is allowed to spend the amount awarded/obligated and need not be concerned with the timing of when the actual money is received. For 30X through 38X WBS Elements, the amount awarded/obligated will be indicated in the AWARD column of the fund statement (SAP PDT Plan column).

Delimited (SAP)

The term delimited is related to the HR and Payroll information or Infotypes in the SAP system, and helps to track the history of the actions that have taken place regarding the HR and Payroll information or Infotypes. Information is never deleted from the system, but the information is delimited when a new piece of information is added or a change to existing information occurs in SAP. Therefore, the history of the information is captured. For instance, if someone receives a yearly increase in salary, the current rate of pay is delimited and a new rate is activated in the system. The dates of the record indicate if that record is delimited or not, since the delimited record will have an end date in the past and the active record that is not delimited will have an end date with the year of 9999 in the date field.

Depreciation

Amounts that are calculated to record the decline in value of the operating funds. Duke records depreciation for capital assets, equipment, and buildings.

Direct Codes Costs directly attributable to a specific project or activity. Examples are salaries & wages, supplies, equipment, personnel benefits, etc.

Document

An electronic record of a transaction. For example, whenever a journal entry (journal voucher) is created and either parked or posted in SAP, a document is created in the system. In addition, several documents can be created from one single action in the SAP system. For example,

when an "Invoice" is entered into SAP, which references a Purchase Order document in SAP, an Accounting document is also automatically created. Each document is linked to the other and provides different pieces of information.

In SAP, each document has it's own unique document number that is Company Code and Fiscal Year dependent. Document numbers are reused from fiscal year to fiscal year, and the same numbering scheme is used for each Company Code at Duke.

Document Date

The Document Date is the date in which the business transaction for the Document (e.g., a transfer of posting or the issue date of an invoice or payment) took place.

Note: It is possible that an invoice was issued with a Document Date of 6/15/98, entered into SAP on 7/15/98 (Entry Date) with a Posting Date of 6/30/98 (to post the Document in the previous fiscal year). Many times, all three of these dates are the same.

Document Type

The Document Date is the date in which the business transaction for the Document. A Document Type is a two-digit alpha code that helps to identify the type of Document being created or displayed for a transaction in SAP. The Document Type can be found in the header of a Document and also in column on most line item reports.

A few common examples are listed below:

NB = Regular or "normal business" Purchase RequisitionSA = A manually keyed journal entry (journal voucher)KN = Net Vendor, an invoice entered into SAP that DOES NOT reference to a Purchase Order document number, usually indicating a "standing order".RN = Net Vendor Invoice, an invoice entered into SAP that references to a Purchase Order document number.WA = Goods Issue indicating that materials have been issued from Inventory.

Duke Unique ID - DUID

The Duke Unique ID, also known as DUID, is a seven-digit number that identifies each employee at Duke and is used to replace the employee's Social Security Number in SAP and other systems at Duke. Your Duke ID can be found on the back of your Duke ID Card or the DUID website.

Employee Subgroup

Employment type, this will be DU in most cases. Other choices refer to pay designations for selected job families used primarily in the Duke University Health System. These options differentiate between weekday schedules or weekend option schedules for employees in job families 7, 10, 11, 15, 30, or 32. See Employee Subgroups

Endowment Expendable Code

An endowment expendable code, typically a WBS element found in the code series 39XXXXX (an "expendable fund"), is designated to receive endowment distributions (the "distributions") generated from a specific endowment cost center (code series 6XXXXXX). All distributions within an expendable fund must be used in accordance with the specific intent of the donor(s), set forth in the endowment agreement governing that endowment.

Entry Date

The Entry Date is the date the transaction was actually "permanently entered" into SAP.

Note: It is possible that an invoice was issued with a Document Date of 6/15/98, entered into SAP on 7/15/98 (Entry Date) with a Posting Date of 6/30/98 (to post the Document in the previous fiscal year). Many times, all three of these dates are the same.

Expense Cost Center

Cost Centers in the 15xxxxx thru 180xxxx series. Fiscal Year

The fiscal year begins July 1 and ends June 30. The fiscal year is divided into four quarters, each with three fiscal months. The first month of each quarter contains five weeks; the remaining two months each contain four weeks. Fiscal months begin on a Monday and end on a Sunday at midnight. The fiscal months of June and July will often deviate from this because the fiscal year always begins on July 1 and ends on June 30.

Fund

A Fund tracks balance sheet information by fund (fund code in old terminology), including expense and revenue balances. A Fund represents the basic unit that comprises the entire organizational and functional structure of Duke. A Fund must have a corresponding Cost Center, Profit Center, or WBS Element (Project) for transaction to be received.

Fund Code

See "Cost Center".

G/L Account

A G/L Account defines the type of balance sheet (asset, fund equity, liability), expense, or revenue category of a posted amount in SAP. Each G/L account represents one item in the entire Chart of Accounts. A G/L Account consists of six digits and is equivalent to the four-digit Object Code (old accounting terminology) plus two additional digits for further clarification. Usually the extra two digits are two zeros (for example, G/L Account 646000 is Office Supplies and has the same meaning as Object Code 6460). In general, if the two digits are "01", the amount is for an inventory item from the Materials Management/Services area of the Hospitals.

GAP (General Accounting Procedures)

Located on the Financial Services Website, the GAP provided instruction on topics such as Consultants (Engaging & Paying), Payroll Procedures, Plant & Equipment Procedures, Sponsored Projects Special Procedures, and Other Accounting Procedures.

Hierarchy Area

Departmental position code within the company code structure. For the Health System this is an eight-digit number.

HRIC

Stands for Human Resources Information Center

Info Subtype

Some Infotypes contain Info Subtypes as well, which further identify types of data related to an Infotype. For example, there are various Info Subtypes for the Address Infotype, to show the different addresses related to an employee, such as campus, permanent home, check, etc. The Education Infotype has ninety-eight Info Subtypes to show the highest level of education an employee might have achieved.

Infotype

An Infotype (Information Type) is a four digit number which identifies a screen of related data elements grouped according to content and effective date.

Some examples of Infotypes are:

Actions (0000)Contains a summary of all the actions regarding HR and Payroll that have occurred for an employee, including dates, descriptions, etc.

Organizational Assignment (0001)Contains organizational information, including the position number for the employee.

Personnel Data (0002)Contains personnel data for an employee, such as date of birth and social security number

Address (0006)Contains various screens (see below) with different types of addresses related to the employee, such as the permanent home address, the campus address, and the check address.

Basic Pay (0008)

Contains the current rate of pay information, as well as a history of past rates of pays and effective dates.

Education (0022) Contains the most current education level available for the employee.

Date Specifications (0041) Contains the continuous service date for an employee, as well as other dates regarding rate changes, position changes, etc.

Some Infotypes contain Info Subtypes as well, which further identify types of data related to an Infotype. For example, there are various Info Subtypes for the Address Infotype, to show the different addresses related to an employee, such as campus, permanent home, check, etc. The Education Infotype has ninety-eight Info Subtypes to show the highest level of education an employee might have achieved.

Journal Voucher / Journal Entry

Journal Vouchers are used to transfer amounts between accounts in order to distribute interdepartmental charges, reclassify, or correct data in the general ledger system. Entries may involve G/L account transfers within the same cost object (Cost Center , Profit Center , Internal Order, WBS element or Fund) or transfers between different cost objects.

Matchcode Search

A Matchcode Search in SAP, is a way to view a complete or partial list of all valid values for an Input Field and to select a value from that list for the field. A triangle symbol in the lower right corner of the Input Field usually indicates that a Matchcode Search is available. Searches can be done on numeric or text values, and allow the use of an asterisk (*) as a wildcard.

Menu Bar

The Menu Bar is the first bar located at the top of the SAP screen. While the Menu Bar contains menu paths for functions available from the current screen, this bar is no longer used as the primary tool for navigating to another screen in SAP. The User Menu displayed on the initial screen is a better way and more customized way to navigate for Duke. The Menu Bar options vary by the screen displayed or the task being performed in SAP. The Menu Bar also contains the buttons for managing the size and position of the window.

Modules

The SAP system consists of many application modules, each one offering different functionality, yet all integrated into one enterprise package.

Although Duke purchased a complete package of SAP modules for future use, the primary modules that Duke has or is in the process of implementing are:

AM: Asset ManagementCO: Controlling

FI: Financial AccountingFM: Funds ManagementHR: Human ResourcesMM: Materials ManagementPS: Project SystemWF: Workflow

Object

An individual element of information that exists in the system.

In the financial related modules, such as CO, an Object (or Object Number Structure) refers to the terms Cost Center or Profit Center, which represent the owner of a posted expense or revenue. This is the exact opposite meaning of "Object Code" used in Duke legacy systems, which refers to whether a posted amount is an asset, liability, expense, or revenue and does not define the owner of the posted amount.

In the HR module, Objects are the basic elements of information that collectively make up, or define, an Organizational Plan, where different types represent information that can be linked together.

Org Key - Organizational Key

On forms, this will be a 4-character field; it consists of the old "pay point" prefaced with two letters, depending on the organization.

DD Duke University and Duke Hospital DR Durham Regional Hospital departments RC Duke Raleigh Hospital departments

Organizational (Org.) Code

Departmental position code within the company code structure. Also referred to as "BFR Code".

The BFR code is a series of ten digit codes within the General Ledger that provides a five level organizational hierarchy structure. Every position and cost object at Duke will be linked to a BFR code at some level in the hierarchy.

Organizational Unit An organizational unit is an eight-digit number that represents the hierarchical organizational structure with regards to HR and Payroll in the SAP system. For example, these eight-digit numbers can represent a department within the School of Medicine or a school within the Provost area. One example of an organizational unit is 50000393, which represents Cardiology within the Department of Medicine.

The term Organizational Units pertains to the HR and Payroll functions for both the University and Health System companies, while the term Org. Units pertains to a similar concept of a hierarchical structure for financial reporting purposes for Duke University.

Personnel Area

A value that represents an organizational entity or location within Duke for HR and Payroll purposes, such as 1000 for Duke University, 1100 for the School of Medicine, 2000 for Duke Hospital, etc.

Plan

In SAP, the word Plan is synonymous with the word budget and planning with budgeting for general operating funds, like Cost Centers and Profit Centers. SAP offers several types of planning for internal reporting purposes. In the CO - Controlling module where Cost Center and Profit Center reports are generated, the Plan data is loaded monthly from the various budget systems for the Hospitals and University (such as Transition II).

Currently in the PS - Project Systems module, the term Plan represents the Award amount for 3xx Restricted Funds, i.e., Projects with an award amount. The PS module offers more Planning options, such as structure planning (at the WBS Element level), detailed planning by cost element, and detailed planning of secondary costs, using planned activity, quantity, and rates.

Plant

A Plant is an organizational unit within Duke where either materials are purchased or goods and services are provided. A key attribute in MM and AM modules, a four-digit Plant code corresponds to a Company Code (0010, 0020, 0030, etc.).

Some Plants include:

DUKE = Duke University (0010)DUHS = Duke University Health System (0020)DHSP = Duke Hospital (0030)DUAP = Duke University (0010) DRHS = Durham Regional Hospital (0050)DHRH = Duke Health Raleigh Hospital (0060)

Position Management

Position Management is handled though iForms and is a concept of position ownership by departments or major units, allowing them to better track and manage positions. Every position at Duke has a unique identifying number known as a "position management number" which will stay with the position throughout its "life" and is independent of the employee who may be filling the position. iForms is used for the processes of creating, modifying, deleting or reorganizing a position.

Posting Date

The Posting Date determines the posting period and defines in which fiscal period a document will post (regardless of the Document or Entry date). The periods that are permitted for posting are determined by Accounting Services. This is the date that G/L Account Balances are

updated. The Posting Date will override the Fiscal Period entered on a document if they are different.

Note: It is possible that an invoice was issued with a Document Date of 6/15/98, entered into SAP on 7/15/98 (Entry Date) with a Posting Date of 6/30/98 (to post the Document in the previous fiscal year). Many times, all three of these dates are the same.

Posting Key

A two-digit numeric key that controls the entry of document line items. The key specifies the following for example: account type, debit or credit posting, or layout of entry screens.

The most common examples are:

40 = Debit50 = Credit

Posting Period

The posting period is a period of time within a fiscal year during which transactions can be posted and transaction figures can be updated. Duke's posting periods are based on the Fiscal month periods per the Fiscal Calendar distributed by the Financial Services division.

Profit Center

A Profit Center represents an area of responsibility for which an independent operating profit is calculated, in other words, it defines the owner of general revenue. Profit Centers collect all postings of expense and revenue. For some Profit Centers, a limited balance sheet can also be viewed as well as expenses and revenues.

The Profit Centers vary between Duke University and the Health System Company Codes and are briefly outlined by Company Code as follows:

In Company Code 0010, the following seven-digit fund codes (old terminology) beginning with 11x and 140 are Profit Centers, such as example 140-3020. Currently, all expenses and revenues for Profit Centers are collected in or "roll up to" one Profit Center Group in the Standard Hierarchy. The Profit Center Group value is "1199998". As part of the phase to implement SAP for Duke University, more Profit Center Groups will be added to the Standard Hierarchy structure for better Profit Center reporting.

In Company Codes 0020, 0030, and 0040, all previous 130xxxx fund codes are mapped to nine-digit Profit Centers (such as example 306060025), regardless of whether the department is a revenue producer or not. Each department's Profit Center is also linked to the department's Cost Center and WBS Element for capital acquisitions. The Profit Centers are organized or grouped by areas of responsibility or service line and exist on the Standard Hierarchy (like an organizational chart) for Profit Centers.

In Company Code 0050 and 0060, all previous department numbers (four-digits and three-digits respectively) are mapped to nine-digit Profit Centers (such as examples 502090002 and

606060024), regardless of whether the department is a revenue producer or not. Each department's Profit Center is also linked to the department's Cost Center and WBS Element for capital acquisitions. The Profit Centers are organized or grouped by areas of responsibility or service line and exist on the Standard Hierarchy (like an organizational chart) for Profit Centers.

Project

A Project outlines all the pieces or steps of a project, including the Project Definition and the WBS (Work Breakdown Structure) in both a graphic and spreadsheet type format. At Duke, a Project is defined as any "fund code" with a beginning and ending date. Therefore, all fund codes beginning with 3xx and 7xx are managed as Projects in the PS module. These include the restricted funds, clinical trials (Duke Clinical Research Institute - DCRI), construction funds, and capital acquisitions (mainly for the Health system Company Codes 0020-0060).

Project Definition

The framework laid down for all of the objects created within a project. The Project Definition contains dates and other organizational information that is binding for the entire project.

Purchasing Group

A Purchasing Group is a grouping of departments or areas that purchase in SAP used for assigning Purchase Requisition approval rules. The Purchasing Group field is a required field on a Purchase Requisition and is assigned to each authorized SAP user that is part of that Purchasing Group. For example, several users from the same department or area may use the same Purchasing Group.

R/3

R/3 is an ERP system offered by the SAP company. The R/3 stands for real-time / three-tiered architecture, defined as follows:

The "R" in R/3 = real time. During real-time processing, data is processed immediately, the moment the data is entered into the system. This is different than a "batch mode", in which data is stored and all transactions are processed together, at a later time.The "3" in R/3 = A three-tier computer architecture comprised of three operational layers as outlined below. The SAP R/3 system uses a special type of client/server architecture consisting of three well-defined and separate processes, each running on a different platform :

Presentation: the user interface, which runs on the end user's computer (the client) and is actually seen on the end user's desktop. Application: the functional modules that actually process data. This middle tier runs on a server and is often called the application server. Database: a database management system (DBMS) that contains master data that Duke owns and stores the data required by the middle tier. This tier runs on a second server called the database server. The three-tier design has many advantages over traditional two-tier or single-tier designs, the chief ones being:

The added modularity makes it easier to modify or replace one tier without affecting the other tiers. Separating the application functions from the database functions makes it easier to implement load balancing.

Real Time

The "R" in R/3. Data is processed the moment it enters a system, as opposed to old-style "batch" processing where the information enters the system, is stored, and is processed at a later time.

Salary Setting

The Salary Setting Transaction in SAP is replacing the BPA system that was used for setting Faculty and Exempt salaries. It will be used to set individual salaries for the following types of employees:

-Faculty -Exempt (monthly) Staff -Non-Exempt (biweekly) Staff

SAP Salary Setting provides direct setting of employee rates for July 1 salary increases and should reduce the volume of Staff Change (PCN) forms. In addition to being fully integrated with the SAP HR-Payroll system, it offers an array of reporting and data entry capabilities. Security with the Salary Setting Transaction is identical to that of the Accounting View of Payroll report in SAP.

SAP

SAP (pronounced as spelled out) stands for Systems, Applications, and Products which is a translation from the German language of "Systemanalyse und Programmentwicklung". SAP is the German company that produces many different enterprise solution products, such as the iForms product that Duke purchased.

SAP Pay Periods

The SAP pay period for employees paid biweekly will be Period 17 of the 1-26 periods, and the pay period for employees paid monthly will be Period 8 of the 1-12 periods. You may reference the Duke University payroll schedule posted on the Corporate Payroll Website or the individual payroll schedule cards to determine the SAP pay period.

Service Category

(for company code 0010 (University) only)The third and fourth digits of the appropriate G/L account.

Service Type

(for company code 0010 (University) only)The first two digits of the appropriate G/L account.

Settlement

Currently, Duke is using Settlement in SAP to "settle" the expense of a major construction Project, such as a building, from a Project to an Asset (capital acquisition) once complete. Also, Settlement is being used for minor construction Projects (under $100,000) in SAP, to "settle" the expense of the Project to departments/divisions who are funding the Project. This Settlement is done monthly and replaces a manual Journal Voucher done monthly in the past.

Settlement works as follows: the costs incurred in a Project on one or more receivers is automatically accompanied by corresponding credit postings to the Project itself. The costs settled are recorded on the relevant receiver. Debit postings assigned to the Project remain on display even after Settlement. Settlement can be performed as a simulation or an update.

Site Leader

The person responsible for assuring that SAP is accessible, usable, and productive for a department's users.

Spread Codes

Spread codes define how the budget is distributed across the months. After budget development, the University Budget Office assigns the spread that was designated to a particular fund/G/L Account combination based upon the previous year spread. (For example, the initial spreads for the FY10 budget will be the same as those for FY09.) New fund/G/L Account combinations will receive the default 12 month spread (AAA). Spread codes can be changed in the budget modification file. Factors selected by the department and applied to the budget by G/L account within cost object; factors determine how the budget is calendarized throughout the fiscal year. Calendarization is reflected in SAP and BW.

Standard Toolbar

The Standard Toolbar is the second bar located directly under the Menu Bar at the top of the SAP screen. This Toolbar contains standard buttons (icons) for performing common functions, depending on the screen or task. Some functions include moving back to the previous screen, exiting a screen, canceling a transaction, and printing.

Storage Location

A Storage Location is a place where inventory items are stored. Examples include the STAT room and In-patient supply carts.

Technical Desktop Support The department support person, who provides the first contact for hardware and software support for SAP.

Three Tier

The "3" in R/3. SAP R/3 uses three-tier computer architecture as defined below. This is a special type of client/server architecture consisting of three well-defined and separate processes, each running on a different platform:

Presentation: the user interface, which runs on the end user's computer (the client) and is actually seen on the end user's desktop. Application: the functional modules that actually process data. This middle tier runs on a server and is often called the application server. Database: a database management system (DBMS) that contains master data that Duke owns and stores the data required by the middle tier. This tier runs on a second server called the database server. The three-tier design has many advantages over traditional two-tier or single-tier designs, the chief ones being:

The added modularity makes it easier to modify or replace one tier without affecting the other tiers. Separating the application functions from the database functions makes it easier to implement load balancing.1. The user interface, which runs on the end user's computer (the client).

Title Bar

The Title bar is the third bar from the top of each SAP screen and located directly below the Standard Toolbar. The Title Bar contains the name of the current screen displayed for the task or transaction being performed in SAP.

Transaction Code

A Transaction Code is a four digit, alpha-numeric value that can be entered in the Command Field and used as quicker way to navigate to a transaction screen in SAP, as opposed to using lengthy menu paths. The Transaction Code identifies a "transaction" in SAP and links all the screens related to that one transaction (e.g., ME51 = Create a Purchase Requisition, F-02 = Create/Post a Journal Entry, and PO03 = Maintain Job). Transaction Codes must be used in conjunction with Command Codes from any screen other than the initial SAP System screen.

The four-digit Transaction Code for a particular screen can easily be found once on that screen, by following the menu path: System > Status.

User Administrator

The primary administrative contact within an operational department for information about SAP. The User Administrator maintains User ID's, system access, and training schedules for department users of SAP.

WBS - Work Breakdown Structure / Work Breakdown Structure Element (WBSE)

The Work Breakdown Structure (known as WBS) is the hierarchical representation of activities and actions to be carried out on a Project. The activities and actions that make up the Work

Breakdown Structure are known as the WBS Elements. Revenue and expense transactions are posted to each WBS element (node) of the Project. Reporting can be done on each WBS Element or the WBS for the Project as a whole.

On forms, this code designates where the payroll and related expenses are charged. Note: nine digits for the Health System and seven digits for the University

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Finance Terms

Client: In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables.

Company Code: The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

Business Area: An organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated.

Enterprise structure: A portrayal of an enterprise's hierarchy. Logical enterprise structure, including the organizational units required to manage the SAP System such as plant or cost center.

Social enterprise structure, description of the way in which an enterprise is organized, in divisions or user departments. The HR application component portrays the social structure of an enterprise

fiscal year variant: A variant defining the relationship between the calendar and fiscal year. The fiscal year variant specifies the number of periods and special periods in a fiscal year and how the SAP System is to determine the assigned posting periods.

Fiscal Year: A period of usually 12 months, for which the company produces financial statements and takes inventory.

Annual displacement/Year shift: For the individual posting periods various entries may be necessary. For example, in the first six periods the fiscal year and calendar year may coincide, whereas for the remaining periods there may be a displacement of +1.

Chart of Accounts: Systematically organized list of all the G/L account master records that are required in a company codes. The COA contains the account number, the account name and control information for G/L account master record.

Financial statement version: A hierarchical positioning of G/L accounts. This positioning can be based on specific legal requirements for creating financial statements. It can also be a self-defined order.

Account group: An object that attributes that determine the creation of master records. The account group determines: The data that is relevant for the master record A number range from which numbers are selected for the master records.

Field status group: Field status groups control the additional account assignments and other fields that can be posted at the line item level for a G/L account.

Posting Key: A two-digit numerical key that determines the way line items are posted. This key determines several factors including the: Account type, Type of posting (debit or credit),Layout of entry screens .

Open item management: A stipulation that the items in an account must be used to clear other line items in the same account. Items must balance out to zero before they can be cleared. The account balance is therefore always equal to the sum of the open items.

Clearing: A procedure by which the open items belonging to one or more accounts are indicated as cleared (paid).

Reconciliation account: A G/L account, to which transactions in the subsidiary ledgers (such as in the customer, vendor or assets areas) are updated automatically.

Special G/L indicator: An indicator that identifies a special G/L transaction. Special G/L transactions include down payments and bills of exchange.

Special G/L transaction: The special transactions in accounts receivable and accounts payable that are shown separately in the general ledger and sub-ledger.

They include:

Bills of exchange Down payments Guarantees

House Bank: A business partner that represents a bank through which you can process your own internal transactions.

Document type: A key that distinguishes the business transactions to be posted. The document type determines where the document is stored as well as the account types to be posted.

Account type: A key that specifies the accounting area to which an account belongs.

Examples of account types are:

Asset accounts Customer accounts Vendor accounts G/L accounts

Dunning procedure: A pre-defined procedure specifying how customers or vendors are dunned.

For each procedure, the user defines

Number of dunning levels Dunning frequency Amount limits Texts for the dunning notices

Dunning level: A numeral indicating how often an item or an account has been dunned.

Dunning key: A tool that identifies items to be dunned separately, such as items you are not sure about or items for which payment information exists.

Year-end closing: An annual balance sheet and profit and loss statement, both of which must be created in accordance with the legal requirements of the country in question.

Standard accounting principles require that the following be listed:

All assets All debts, accruals, and deferrals All revenue and expenses

Month-end closing: The work that is performed at the end of a posting period.

Functional area: An organizational unit in Accounting that classifies the expenses of an organization by functions such as:

Administration Sales and distribution Marketing Production Research and development

Classification takes place to meet the needs of cost-of-sales accounting.

Noted item: A special item that does not affect any account balance. When you post a noted item, a document is generated. The item can be displayed using the line item display. Certain noted items are processed by the payment program or dunning program - for example, down payment requests.

Accrual and deferral: The assignment of an organization's receipts and expenditure to particular periods, for purposes of calculating the net income for a specific period.

A distinction is made between:

Accruals -

An accrual is any expenditure before the closing key date that represents an expense for any period after this date.

Deferral - Deferred income is any receipts before the closing key date that represent revenue for any period after this date.

Statistical posting: The posting of a special G/L transaction where the offsetting entry is made to a specified clearing account automatically (for example, received guarantees of payment).

Statistical postings create statistical line items only.

Valuation area: An organizational unit in Logistics subdividing an enterprise for the purpose of uniform and complete valuation of material stocks.

Chart of depreciation: An object that contains the defined depreciation areas. It also contains the rules for the evaluation of assets that are valid in a specific country or economic area. Each company code is allocated to one chart of depreciation. Several company codes can work with the same chart of depreciation. The chart of depreciation and the chart of accounts are completely independent of one another.

Asset class: The main criterion for classifying fixed assets according to legal and management requirements.

For each asset class, control parameters and default values can be defined for depreciation calculation and other master data.

Each asset master record must be assigned to one asset class.

Special asset classes are, for example:

Assets under construction Low-value assets Leased assets Financial assets Technical assets

Depreciation area: An area showing the valuation of a fixed asset for a particular purpose (for example, for individual financial statements, balance sheets for tax purposes, or management accounting values).

Depreciation key: A key for calculating depreciation amounts.

The depreciation key controls the following for each asset and for each depreciation area:

Automatic calculation of planned depreciation Automatic calculation of interest Maximum percentages for manual depreciation

The depreciation key is defined by specifying:

Calculation methods for ordinary and special depreciation, for interest and for the cutoff value

Various control parameters

Period control method: A system object that controls what assumptions the system makes when revaluating asset transactions that are posted partway through a period.

Using the period control method, for example, you can instruct the system only to start revaluating asset acquisitions in the first full month after their acquisition.

The period control method allows different sets of rules for different types of asset transactions, for example, acquisitions and transfers.

Depreciation base: The base value for calculating periodic depreciation.

The following base values are possible, for example:

Acquisition and production costs Net book value Replacement value