GFEBS Project Systems Course

Most execution takes place:

Automatically via interface

Project Structure - Design Concept (3 of 4)

A more useful WBS structure might look like this. This WBS Structure allows your command to answer questions such as: "How much are we spending on R&D?" "What is the total cost of producing a new engine and how does that compare with other aircraft we've built?" "Excluding the Engine, how much are we spending on testing?" "How much does the entire Airplane cost?"

True or False: A WBS element can have multiple lines of accounting (LOA).

False

Which of the following is NOT a use for Project Settlement?

Move funding from a Sales Order to a Funded Program

Which of the following is used to define the characteristics of a WBS element?

Operative Indicators

Funded Programs (1 of 5)

A Funded Program (FP) is the lowest level of the FM (Funds Management) chain. The diagram located at the right shows the LOA fields. The RM will "push" a certain amount of money to that FP based on the other LOA fields. The FP is then a pool of money with a hard stop (sometimes referred to as "fencing off the money") - that is, execution against that FP will not be allowed after the amount pushed to the FP has been exhausted. An FP can be on more than one WBS - usually on the same "WBS tree" (such as "Engine" in our "Build An Airplane" Example from the Structuring lesson). However, there is no reason you could not use an FP from another tree (for example, using an FP from Avionics for a WBS under "Engine"), though this can lead to confusion when viewing reports. In fact, you could use a Funded Program from an entirely different Project.

Funded Program Type

DRCH (Direct Charge)

BI (Business Intelligence)

BI (Business Intelligence): the data warehousing component of GFEBS) BI is not real-time, but is updated several times a day Example roles / reports are: Command Budget Reporter Costs Management Reporter BI Advanced Expert

Project / WBS Release

Before a WBS can be executed against, it must have its Account Assignment Indicator set and be set to a system status of REL (Released). In order to release a WBS, its user status must be set to FUND (See Project Funding lesson). Having a valid Line of Accounting (LOA) - otherwise known as funding data - is also required, but the selection of the Account Assignment Operative Indicator ensures this by making these fields required. You may release an entire project - which will in turn release all WBS's in the project (assuming they are all in the FUND status - otherwise an error will be generated). Similarly, if you release a WBS that has subordinate WBS's underneath it, it will try to release all subordinate WBS's. A system status of PREL (Partially Released) means that a project or WBS is not released, but at least one WBS underneath it is released

Designing a Project - Objectives

Before we can discuss Project Structure, we must first ask the question, "What is the purpose of a Project Structure?" A clear and unambiguous project structure must form the basis for its planning, funding, reporting, monitoring, control, and successful execution.

Operative Project

By copying one normal project (known as an "Operative Project") to another. This can be accomplished entirely within CJ20N.

Standard Projects

By using Templates (called "Standard Projects" in PS) which you create with transaction CJ91 as the source for creating a new operative project.

Hierarchical Funding in GFEBS (1 of 2)

By using the Copy Superior Funding checkbox, you can set a child or grandchild (subordinate or sub-subordinate) WBS to use the same Line of Accounting (LOA) and / or Funded Program (FP) as the parent / grandchild WBS. Note: For subordinate (Child) WBS's (or some of them) to use the same funded program, and therefore the same hard-stop on funds, as a superior WBS element, all you would have to do is accept the default of using all of the superior WBS's funding data, including Funded Program. Alternatively, you could create a separate funded program for one or more of the subordinate WBS's for them to have their own "fenced off" pool of money for that or (more likely) a different LOA.

Project Systems Reports (2 of 3)

C. Budget - See Funded Programs, Statement of Funds etc. Examples: FMMEASURED - Display Funded Program Details ZFSC1-6 (cumulative reports) ZFSNC1-6 (non-cumulative) Note: All of the reports listed above are ECC Reports, which are real-time. Many other reports, particularly around funding and financials can be found in BI (Business Intelligence) but are beyond the scope of this course. Many ECC reports can be run in the background. This can be particularly useful for long-running reports. You can start them running, or schedule them to start running at a certain time, log out, and retrieve the results when the report has completed and you log back in. See your local Help Desk about Background Execution of reports.

Funded Programs (3 of 5)

Characteristics of a Funded Program: A Funded Program (FP) has only one line of accounting (LOA). Has a specific amount of money allocated to it for that Functional Area, Funds Center, Main Account and Fund. An FP must have a start date (often the beginning of a Fiscal Year or the date of a MIPR (Reimbursable) contract) There are 10 Funded Program types in GFEBS.

Cost Planning (1 of 3)

Cost Planning is used to plan costs at the WBS level (though the cost may be viewed at an overall project level by the rollup of costs from bottom-up planning). There are multiple ways to conduct cost planning. This planning information is leveraged within GFEBS to assist in the budget formulation process and to compare cost estimates to actuals. The planning capability within Project Systems allows GFEBS users to plan overall, current year, or out to as many years out as required.

A good project structures supports which of the following?

Cost Reporting Funding / Funded Program Design Execution All of the above

The following are all basic features of Project Systems Reporting except:

Download graphical reports

Availability Control

During Availability Control, the corresponding assigned funds are calculated and checked against the budget using Funds Availability Control. Before a WBS can be executed against, commitment items are created and actual costs are incurred. If certain tolerance thresholds are breached (funds exceeded), this can trigger a hard stop in the GFEBS system. A hard stop in the GFEBS system is a process that stops all action on an item until the issue causing the hard stop has been resolved. Because GFEBS is an integrated, real time system, it is able to check fund availability and reserves funds so they are no longer available for other projects. NOTE: For a discussion for COED (Commitments, Obligations, Expenses and Disbursements), refer to Funds Management training courses, aids, and Online Help Procedures (OLHPs).

ECC (i.e., PS or Fund Management reports)

ECC (i.e., PS or Fund Management reports): real time reporting Example roles / reports are: CJI3 - Project Actuals Line Item S_ALR_87013532 - Plan/Actual/Variance ZFSC1-6 (cumulative Statement of Fund reports) ZFSNC1-6 (non-cumulative Statement of Fund Reports)

Hierarchical Funding in GFEBS (2 of 2)

Example - Let's say we have a level 2 (two levels down from the project definition) WBS A.1234567.1. We could set its LOA data to a specified set of values (which could refer to direct funding, reimbursable, Direct Cite or Direct Charge funding). We could then create a level 3 WBS underneath it - A.1234567.1.1. By default, "Copy Superior Funding" will be selected, so this level 3 WBS would use the same funding data as its parent - A.1234567.1. It would also use the same Funded Program, and therefore the same funding hard stop. The same would be true with a level 4 created beneath it - A.1234567.1.1.1

True or False: All of the important reports related to PS can be found within ECC:

False

True or False: Any WBS with a FUND User Status and a REL System Status can be executed against.

False

True or False: During project cost planning, both the project costs are estimated and the funds are allocated in the form of funds distribution to the correct LOA.

False

True or False: In PS, the terms "Project" and "Project Definition" are synonymous

False

True or False: It is very important to choose your method of cost planning that best needs your needs up front, as once you use Easy Cost Planning (ECP) you can no longer use Structure Planning (CJ40) for any WBS's which have ECP values.

False

True or False: Together with Funded Programs, Cost Plan values act as Availability Control (hard stops) against execution.

False

User Statuses (1 of 3)

For most commands, a WBS will have two user status states: PLAN - The WBS is in the planning stage. This is the user status a WBS has when it is first created. FUND - This is set by someone with sufficient GFEBS (Project Funds Approver) and organizational (e.g., G8) rights. This status should only be set when the LOA is finalized, and when the money is available to consume (e.g., a funded program has had funding amounts put into it via a FM process called FMBB). Once the user status has been set to FUND, it cannot be set back to plan. Changes to LOA after this point require contacting the Help Desk, who must make sure any execution (cost) is properly re-allocated, etc.

Project Systems Reports (3 of 3)

Four basic features of PS Reporting include: Basic selection parameters Dynamic selection parameters Customized report output Column Output Selection Ordering Filtering Download to other applications

WBS Elements - Operative Indicators

GFEBS uses Operative Indicators to define characteristics that control functionality of a WBS - they define whether a given WBS can or cannot be used in some very important processes. Click on each image for each process. Click on the note icon for more information.

Funded Programs - Design Concept (1 of 2)

How you structure your funding and Funded Programs is just as important as how you structure your WBSs in general as GFEBS is, at its core, a Funds Management system. In the next few pages, we will walk though an example - continuing to use our "Build An Airplane" project from the Structure lesson. We will then see an exercise to show you how to implement this funding / Funded Program design in CJ20N. When we left off, we had come up with a structure that met our reporting requirements (right). But we had given no thought to what kind of funding we had for the project.

Cost Planning (2 of 3)

In GFEBS, Cost Planning is generally carried out in one of two ways: Structure Planning Using transaction CJ40 - this allows you to put in plan values (overall, annual, or both) in any WBS which has it Planning Element Operative Indicator set. The cost model in GFEBS for Structure Planning is strictly bottom-up. All costs entered at a lower level aggregate to the levels above them. For this reason, a good practice is to only enter plan values at the lowest (execution) levels. Values entered at higher levels will be overwritten by the aggregated values of the levels beneath it if they exist. Easy Cost Planning (ECP) This allows you to easily enter values for cost at a WBS level broken out into Object Class Categories, such as Labor, Travel, etc. ECP also allows multi-year planning. ECP is available from within the Project Builder.

Status of Funds

In GFEBS, certain roles allow the use the transaction ZFSC1-6 (cumulative reports) and ZFSNC1-6 (non-cumulative) to produce the Funds Status Reports. These reports allow managers to see the effects of execution on available funding.

Work Breakdown Structure (WBS)

In a WBS, the groupings of work are described in the project as individual elements in a hierarchy. The work is broken down in the project, step-by-step, until the level of detail is reached necessary to carry it out. These groupings of works are WBS Elements. So in GFEBS, a Work Breakdown Structure is a hierarchical arrangement of WBS elements under a project definition. In GFEBS, there can only be one WBS directly below the Project Definition. This is known as the Level 1 WBS, and will have the same number (and usually name) as the Project Definition.

System Statuses

In addition to User Statuses, a WBS may have one or more System Statuses. Project Definitions have System Statuses as well: CRTD - Created REL - Released. Allows execution assuming the Account Assignment Indicator is set. Note: Release cannot be undone - even by the help desk. PREL - Partially released - this element is not released, but at least the WBS under it is. LKD - Locked. Prevents changes until it is reset. TECO - Technically Complete. Can be reset. CLSD - Closed. Can be reset. DLFL - Flagged For Deletion. Can be reset unless deletion has occurred.

Funding Types (2 of 2)

In all cases where you are using another organization's funding, you must create a funded program which corresponds to that funding. The funded program is set up in PS, Funds Management, or Sales and Distribution (Sales Order) with a specified dollar value which acts as a hard stop and prevents execution beyond what the payer's organization intended the performing organization to use.

Funded Programs (5 of 5)

In the case of Direct Charge, the performing organization creates the WBS, e-mails the Paying / Requesting organization, who enters the LOA, creates the FP, allocates money to the FP using transaction FMBB, and sets the User Status To Fund. The Payer then e-mails the Performing organization, who is responsible for release (though some organizations have come to an agreement that the Paying organization may release the WBS). This procedural requirement is to ensure that the paying organization is not paying for more than it intends to. Caution 1: Please note that checking the "Create Funded Program" checkbox will cause a Funded Program (empty - no dollars) to be created as soon as you save. Caution 2: Commands vary in their rules as to who can create a funded program. Normally, actually pushing money (allocation to a FP is ONLY done by the RM (Resource Manager) / Applicant - often a member of the G8 group of your command. Caution 3: If you are not an RM, always make FP design decisions in consultation with your RM, or leave the FP design and creation entirely up to them.

Funded Programs - Design Concept (2 of 2)

In the project below (a slightly simplified version of the Airplane project), we want to create our WBS structure similar to the items marked: CF1 -- funded by a single funded program of one Command Funding LOA CF2 -- funded by a different set of Command Funding LOA - generic ARMY FP REIM -- are funded by a Reimbursable but use CF1 LOA X -- Execution Available

What is a Project Definition? (2 of 2)

In the project definition, default values are maintained for a project, such as the settlement rule, Person Responsible, or Plant. The default values can then be copied for a new WBS elements created for this project. The default values will be copied into new WBS elements created for the project, but may be changed with the exception of Project Profile.

Planning

Is the structure sufficient to make both high-level and detailed cost plans if necessary?

Project Template

It is often convenient to create one project from another to avoid having to re-create the entire structure manually and re-enter all the data. This is especially true if you have many projects that are similar to one another, or if you are "rolling over" a project from one fiscal year to the next. You can create a project by copying from either a template (Standard Project) or a regular working project (known "Copying Operative.") Note that the term "template" is often used loosely to indicate either a standard project or an operative project whose purpose is to be a template. Copying Projects using either method is not described here in further detail - there are Job Aids and OLHP's that describe the processes. Click on the images for each type of project. Click on the note icon for more information.

User Statuses (2 of 3)

Note that execution cannot occur unless the following are true: The WBS is released and a WBS cannot be released unless it is set to FUND. See the Execution and Reporting section for more information on releasing WBS's. The WBS has its Account Assignment Operative Indicator set (this was covered in the Project Structure lesson). The Account Assignment flag will make the LOA (funding) fields required, so do not check it unless you will be responsible for entering the funding data and you know the funding data you want to enter. The FUND status should truly represent available funds. Just setting a status to FUND is not enough to ensure funds availability. Sometimes, sales orders have to be created, or additional Funds Management activities such as FMBB must occur.

TECO and closing

Often, near the end of a project's execution lifecycle, its system status will be changed from REL (released) to TECO (Technically Complete). The purpose of the TECO status is to freeze all changes to the WBS, but still allow last minute charges to accumulate to the project before it is CLOSED. Once the projects is closed, no actuals may be posted against it, nor may new Purchase Orders, Sales Orders, etc. be created which reference a WBS within the project.

Project Structure - Design Concept (2 of 4)

Often, projects will have multiple sources of funding. Let us suppose you had some money from your own command's funds, some Reimbursables paid by another organization, and some Direct Charge. We could build the structure to the right. After all, a WBS can only have one LOA (Line of Accounting) so we know we need at least 3, and since it is generally a best practice NOT to have execution at the Level 1 WBS, we have 4 WBS Elements. However, we are still "building to the funding structure" - we're only creating as many "cost buckets" as are necessary to capture costs with no regard for better reporting capabilities.

Project Systems Text and Documents

PS text and documents are objects that can be assigned to WBS elements. PS text are user-definable texts that are managed in a PS text catalog. The texts are classified into different text types. You can assign one or more WBS elements to PS text. Also, External documents in various formats (Excel, Word, PPT, BMP, and CAD) can be assigned to WBS elements.

Project Period-End Processing

Period-End Processing is the framework for carrying out period-related cost processing and reporting. It is used to ensure that all the data belonging to a period is determined, moved to its ultimate cost receiver object, and that data is available for Army controlling and reporting purposes. There are two main Period-End Processing processes that occur in Project Systems: Settlement Period End Reporting

Project Execution

Project Execution entails the collection of actual costs through the receiving or invoicing of goods and services as well as through the execution of labor. After a project (or, more specifically, some or all of its WBS elements) has been funded and approved, it is ready to be executed against. Note: Being "Funded" and having a User Status of FUND are not the same thing. See the next page and review the funding lesson for more detail. In general, most execution against WBS elements occurs via interfaces automatically (e.g., ATAAP, DTS, etc.). Manual posting (unposting/moving) is sometimes necessary, as is manual intervention when interface errors occur.

Project Planning

Project Planning enables the PS user to plan the entire project structure (Project Definition and WBS elements), in an integrated environment. Date planning is accomplished by entering dates into the Project Definition and / or WBS elements. These dates may be reviewed in the Project Builder or transaction CJ21. Cost Planning can be performed in one of three ways: From within Project Builder you may perform Easy Cost Planning (ECP) which features an easy to use HTML interface as well as more detailed grid view. Using transaction CJ40 (Structure Planning) you can perform bottom-up scheduling overall. Using transaction CJ40 (Structure Planning) you can perform bottom-up scheduling by period.

Project Systems Reports (1 of 3)

Project Systems includes reports offering different degrees of detail, summarizations, and views of current data. A. Structure - See and change project definitions and WBS's for one or more project. Note: Although they are being discussed here in the context of Project Execution and Reporting, these reports can be useful even before any execution has occurred. Examples: CN41N - Project Structure Overview CN42N - Project Definitions Overview CN43N - WBS Element Overview B. Financial - See actual postings, planned costs vs. actual etc. Examples: CJI3 - Actual Cost Line Items S_ALR_87013611 - Actual/Plan Variance by Cost Center

Period-End Processing COULD involve all of the following except what?

Releasing a WBS

Which process(es) occur during availability control?

Remaining funds in the Funded Program are determined. Execution is checked to see if it will cause the amount in the FP to be exceeded. If the FP will be exceeded, a "hard stop occurs" and the execution is disallowed. All of the above

Settlement Rules

Settlement rules determine how costs are settled. Default settlement rules could exist for a project profile, a project profile + Project type combination, or could be created to custom fit a particular command / cost center. Settlement can be run as often as a command wishes (e.g., monthly) and is also generally run as a part of project close.

Examples of Project Settlement (1 of 2)

Settlement to Asset Account: For investment / capital projects in which costs or a portion of costs must be capitalized and can be settled to assets under construction (AUC) and then transferred to completed assets. The values for these types of projects can be used for relevant depreciation. There are two settlement rules related to an AUC, generally: The initial settlement rule is automatically created the first time the settle transaction is run. During periodic settlement, the initial settlement rule determines how GFEBS settles costs from the WBS elements to the AUC. The final settlement rule is manually entered on a WBS element when it is ready for capitalization. During the final settlement, the final settlement rule determines how GFEBS settles costs from the AUC to the final asset master record.

Examples of Project Settlement (2 of 2)

Settlement to Cost Center: The costs of the project are periodically settled and final settlement to one or more cost centers. Settlement to Internal Order: The costs of the project are periodically settled and final settlement to one or more internal orders.

User Statuses (3 of 3)

Some Project Profiles, such as Capital Investments, have additional user statuses between PLAN and FUND: RAPP - Request Project Approval REJE - Rejected APPD - Approved These steps have to do with project approval overall. Most GFEBS users will not see these statuses.

Cost Planning (3 of 3)

Structure Planning and ECP are not mutually exclusive. Both could be done on the same project. You could, for instance, use Structure planning for a rough estimate early in the project lifecycle and use ECP later when more refined, categorized cost estimates are available. Both Structure and ECP Planning support versions, starting with a default version number 0. Finally, order cost planning can be done for maintenance orders. It is important to note that planned costs do not act as constraints or hard stops for execution of actual costs. Rather they are used for purposes of budget formulation and forecasting, as well as to run certain types of reports (Planned vs. Actuals etc)

Which of the following is necessary for a cost value to be entered against a particular WBS Element?

The Planning Element Indicator is set

Date Planning

The Project Scheduling Tool allows GFEBS to schedule a project timeline, either at the Project Definition or WBS Element level, to plan the correct project timeframe. WBS Element Scheduling characteristics include: Basic start and finish dates can be planned for the WBS elements. The dates can be extrapolated from lower to higher-level WBS elements, or passed on from higher to lower-level WBS elements. The consistency of scheduling data can be verified from within the WBS structure to avoid project delays. Dates may be entered at the project definition level. WBS dates that occur before or after these dates will trigger an error message to ensure scheduling consistency. For the Project definition, you can enter start and finish in addition to forecast start and finish dates. For the WBS, you can enter Basic start and dates, forecast dates, or once the WBS is released (see the Execution and Planning lesson) Actual dates.

What is a Work Breakdown Structure?

The WBS forms the basis for all subsequent planning tasks in the project. The emphasis is placed on: Planning Description Funding and Availability Control Costs and Fund Consumption Reporting Monitoring of costs, basic dates, and the statuses

PS "Execution" in GFEBS generally refers to

The accrual of actual costs to a PS Project

What is a project definition?

The project definition contains data used for the entire project. It contains default values which can be passed on to the WBS elements, or influence them, such as: Project Profile Project Control values (e.g., user status profile) Organizational data Planning parameters Settlement Rules Unique Project Number The Project Profile is often called the "DNA" of a PS project; it determines many attributes of the project. The Project Profile cannot be changed after project creation.

Funded Programs (4 of 5)

There are 10 Funded Program types in GFEBS, but the most commonly used are: GENR - To use your command's own funds - OMA, RDTE, etc. REIM - To use money from someone else via a contract with a MIPR document. In this case, the creation of the Sales Order is what pushes money to the FP. That is covered in detail in the Reimbursables Course. In this case, you still use the performing organization's LOA, not that of the payer / requestor. DRCH - (Direct Charge) To use money from someone else in GFEBS. This is accomplished by using the Paying / Requesting organization's LOA.

Project Structure

There are additional practical considerations concerning cost collection / execution and reporting. For instance, we could technically build a project structure that looks like this like the graphic (assuming we only had one source of funding). However, your command leadership would have no idea how expensive various components or phases of the project were. All execution would simply be posted against the single WBS. This is known as "building to the funding structure" and is NOT a best practice in GFEBS.

Funding Types (1 of 2)

There are ten funding types supported in Project Systems. The four most common are: Direct - You use your own funding (LOA) to fund a WBS Reimbursable - You use someone else's money via a MIPR. A sales order is created which references the WBS. Direct Cite - A specific case of Reimbursable. Also involves a sales order. Direct Charge - You use someone else's LOA on your WBS. There are specific procedures for doing this (e.g., the payer fills out the Funding tab) which protects the payer from funding more than they intend to. In general, if you are using another organization's funds and they are in GFEBS you should use Direct Charge. If they are not in GFEBS (certain parts of the Army, or any Navy, commercial etc. entity) a Reimbursable or Direct Cite should generally be used.

True or False: Reimbursable and Direct Charge are two types of funding scenarios within GFEBS.

True

True or False: Unlike cost planning, Funds Management involves allocating actual funds for projects - more specifically, to their funded programs.

True

WBS Elements

WBS elements are arranged hierarchically so that the most atomic work that can be described and funded with a single LOA (line of accounting) are at the bottom. Typically, execution (accrual of expenses) only occurs at this lowest level, though that does not have to be the case. Since the WBS is structured hierarchically, we're able to summarize and display the data for the corresponding higher-level WBS elements, or all the way up to the Project Definition level. Click on the note icon below for more information

Billing Element

WBS's that can be referenced on a Sales order for a reimbursable must be marked by checking the Billing Element Operative Indicator.

Account Assignment Element

WBS's that can have actual costs accrued (executed) against them must be marked by checking the Account Assignment Element Operative Indicator.

Planning Element

WBS's that can have planned costs entered against them must be marked by checking the Planning Element operative indicator.

Project Structure - Design Concept (4 of 4)

We will continue with this same example in the "Funding" lesson, addressing funding and WBS design practical considerations, once you've learned a bit more about funding concepts, particularly Funded Programs. Tip - you can always tell which level of WBS you are in GFEBS by counting the periods (decimals) in the WBS number.

Funded Programs (2 of 5)

When you create a WBS, by default the corresponding Funded Program has the same identifying number as the WBS, for example, A.1234567.1 All subordinate WBSs created under the parent WBS will have the same WBS as the parent by default, though you can change this. On the funding tab you will see a checkbox "Create Funded Program." This, in combination with the Copy Superior Funding checkbox, can be used to structure the Funded Programs in your project to suit your funds availability control and reporting needs. Note: There are general Funded Programs, such as the ARMY FP, which for some commands will be used as a larger pool of funding with less specific targets. However, a specific amount (hard stop will still exist within these) are "generalized" FPs for a given LOA. ARMY has a type of GENR and a FP Start Date of 01/01/1900 by convention. When you create a funded program (by clicking "Create Funded Program", then saving) it is not funded until someone with funding rights (such as the Project Funds Approver), allocates money to that Funded Program.

Project Funding Process

While project costs are estimated during project cost planning, it is in the Project Funding phase that funds are allocated in the form of funds distribution from the correct LOA to a Funded Program. To the bottom we have a graphic showing the process.

Funding

does the structure support the funding for the project? Keep in mind that a single WBS can only have a single Line of Accounting (LOA).

Reporting

is the structure clear and detailed enough to produce meaningful cost reports without being overly complex and burdensome? In general, a structure which will support proper reporting will also support execution (Cost Collection) well.