[Core Federal Financial System\
Software Qualification Test]{.smallcaps}

Oracle Test Execution Variances

[November 13, 2023]{.smallcaps}

# Contents {#contents .H1-No-Number .unnumbered}

[[Introduction 1]{.smallcaps}](#introduction)

[Variance Types 1](#variance-types)

[Posting Variances 3](#posting-variances)

[Variance 1: Budget Fiscal Year and Fund
3](#budget-fiscal-year-and-fund)

[Variance 2: Alternate Posting Model for Spending Transactions
7](#alternate-posting-model-for-spending-transactions)

[Variance 3: Use Of Sub-Accounts for Recording Funding Distributions
12](#use-of-sub-accounts-for-recording-funding-distributions)

[Variance 4: Alternate Posting Model Using Unexpired Accounts for
Recording Upward/Downward Adjustments
16](#alternate-posting-model-using-unexpired-accounts-for-recording-upwarddownward-adjustments)

[Variance 5: Memorandum Accounts Used for M Year, Travel Limitation,
Loan Subsidy Ceilings, Reimbursable Agreement W/O Advance, Receivable
Invoice
20](#memorandum-accounts-used-for-m-year-travel-limitation-loan-subsidy-ceilings-reimbursable-agreement-wo-advance-receivable-invoice)

[Process Variances 24](#process-variances)

[Variance 6: Rejection of Obligation Without Vendor Number
24](#rejection-of-obligation-without-vendor-number)

[Variance 7: Editing for Duplicate Invoice Number and Prior Year
Adjustment
26](#editing-for-duplicate-invoice-number-and-prior-year-adjustment)

[Variance 8: Imprest Fund Replenishment 28](#imprest-fund-replenishment)

[Variance 9: Re-Use of Same Invoice Number for Utility Payments
30](#re-use-of-same-invoice-number-for-utility-payments)

[Variance 10: Addition and Deactivation of an Accounting Classification
Code Structure Element
32](#addition-and-deactivation-of-an-accounting-classification-code-structure-element)

[Variance 11: Alternate Document Numbers for Reimbursable Orders
34](#alternate-document-numbers-for-reimbursable-orders)

[Variance 12: Unfunded Projects 37](#unfunded-projects)

[Variance 13: Cost Allocations 40](#cost-allocations)

[Variance 14: Record Payments Made Outside of the System
42](#record-payments-made-outside-of-the-system)

[Variance 15: Invoices and Receipts Associated with Constructive
Acceptance
45](#invoices-and-receipts-associated-with-constructive-acceptance)

[Variance 16: Obligation with Prior Commitment Where One Commitment
Becomes Multiple Obligations
46](#obligation-with-prior-commitment-where-one-commitment-becomes-multiple-obligations)

[Reporting Variances 48](#reporting-variances)

[Variance 17: IPAC Disbursements 48](#ipac-disbursements)

[Variance 18: FACTS Validation Edits 50](#facts-validation-edits)

[Variance 19: SF-133 Reports 52](#sf-133-reports)

[Variance 20: Document Status 54](#document-status)

## 

## Introduction

This document contains test variance information approved by the Joint
Financial Management Improvement Program (JFMIP) for testing:

**Oracle E-Business Suite 11i, Version 11i.9**

JFMIP employs a formal qualification test to determine whether subject
financial management system (FMS) products comply with all published
requirements.

For more information about testing in general and other key JFMIP
programs, please log on to our web site (www.jfmip.gov) or contact Mr.
Stephen Balsam (stephen.balsam@gsa.gov).

## Variance Types

Qualification test steps are designed to produce exact SGL posting and
reporting results. To maintain the integrity of the test process and
ensure that the expected results are achieved, the vendor is not allowed
to combine, separate, re-sequence, skip, or modify individual test
steps, posting effects, or other expected results without prior consent.

In cases where a product cannot process a step as specified, the vendor
can request a variance. Variance requests identify the affected steps,
the execution problem, and proposed alternative.

Table 1 contains types of variances and guidelines for how JFMIP will
view the proposed variances.

  -----------------------------------------------------------------------
  Table 1. Variance Categories        
  ----------------------------------- -----------------------------------
  Type of variance                    Guideline

  *Setup.* Setup variances can occur  Minor setup differences that can be
  when the vendor uses different      directly cross-walked to expected
  configuration or assumption data    results are generally allowed. The
  than what were provided in the test use of account code suffixes to
  plan.                               establish sub accounts would be
                                      considered acceptable variance
                                      provided these sub accounts roll up
                                      as intended and are not used for
                                      other unexpected posting results.
                                      Wholesale substitutions of
                                      specified fund codes, BOCs, SGL
                                      accounts, programs, and projects
                                      are not permitted.

  *Posting.* A posting variance can   If the FMS can be configured to use
  occur when a subject package is     the prescribed posting rules, JFMIP
  designed to post transactions in a  expects it to be tested that way
  manner different from the posting   (without a variance). An
  model specified by JFMIP. Note: the alternative-posting model may be
  test rules governing the use of     allowed, if the net effect of the
  alternate document numbers to       alternative model matches the
  reference SGL posting results are   specified result. The use of
  not considered a variance.          journal vouchers to accomplish
                                      posting results is prohibited
                                      unless specifically cited as being
                                      allowed in a given test step.

  *Execution.* A step execution       Execution variances may be
  variance can occur in cases where a acceptable if their initiation is
  tested package completes a test     automatic or system controlled,
  step using multiple separately      they achieve the expected results,
  initiated documents or batch        and do not cause a misstatement of
  processes.                          funds availability (real-time) or
                                      period-end financial position.

  *Function.* A functional variance   All tested functionality is
  occurs in cases where a tested      considered mandatory.
  package was not designed to support 
  a stated requirement (e.g., produce 
  a report, produce a query result.   
  or perform process control).        

  *Reporting.* A format variance      Treasury- and OMB-defined formats
  occurs when a package does not      cannot be changed. In cases where
  generate a required output report,  the test is based on an example
  query result, or transaction file   format, variances may be approved
  according to test step cited form   provided all requested information
  and content rules.                  is presented comprehensively.

  *Process.* A process variance       JFMIP expects differences in the
  occurs when the way a package       way an FMS handles complex posting
  handles a multi-step test case      processes. The basis for allowing a
  differs from the test-specified     process variance is whether the
  approach (e.g., starting balances,  intended result is achieved and
  year-end closing, API, cost         whether the end-to-end process is
  distribution).                      automatic.

                                      
  -----------------------------------------------------------------------

The following sections list details of each approved variance for this
vendor package test.

## Posting Variances

### Budget Fiscal Year and Fund

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

After reviewing the reasons as to why this variance was rejected, Oracle
realized that variances 15 and 16 should be combined to clarify how
budget fiscal year supplements the fiscal year component of the Treasury
Symbol. Oracle withdraws variance 16 and this variance is resubmitted.

This variance request is a "Global Request" that applies to all
transactions in relation to the budget fiscal year and fund segments of
the accounting flexfield. In the test, the budget fiscal year segment
indicates the fiscal year component of the Treasury Symbol; i.e. single
year, multi-year or no-year. Also, the fund segment value remains the
same for single-year and multi-year funds and the budget fiscal year
segment changes with each applicable year. For example, Fund 0100DA is
used for fiscal year 2002 and 2003.

Oracle Applications uses an alternative approach for these segments as
follows:

[Budget Fiscal Year]{.underline}

Oracle will use Budget Fiscal Year as the original year of apportionment
as follows: 1) for single year funds, the year would be the same as the
test script except the year would be a 4-digit year as opposed to
2-digit; 2) for multi-year and no-year funds, the year would change for
each apportioned year of the fund and would be a 4-digit year as opposed
to 2-digit.

[Fund]{.underline}

Oracle requires a different fund value for each year for a single-yr
fund, which is reflective of the changing Treasury Symbol associated to
that fund. In the example above, Fund 0100DA will be reported as
02-0100DA and 03-0100DA for the respective years. Similarly, multi-year
funds in Oracle would change as the Treasury Symbol changes. In the
JFMIP test script, Treasury Symbols 06 02/03 0101 and 06 03/04 0101 both
have fund value 0101 assigned to them. Oracle will reflect these fund
values as 02-03-0101 and 03-04-0101 respectively. No-year funds will not
change from the JFMIP test script values.

Oracle has provided a crosswalk detailing the test fund value compared
to Oracle's fund value for each Treasury Symbol used in the test. It
also indicates for each Treasury Symbol/fund value combination, the
associated test fiscal year values and Oracle's corresponding budget
fiscal year value.

#### B. Reason for Variance

Oracle's architecture does not allow a fund to be assigned to multiple
Treasury Symbols, but many funds may be assigned to one Treasury Symbol.
The model used in the test allows for the same fund to belong to
multiple Treasury Symbols and the combination of fiscal year and fund
determines the Treasury Symbol. Since a fund can only belong to one
Treasury Symbol within Oracle's architecture, the Treasury Symbol can be
derived from the fund segment alone and the fiscal year component of the
Treasury Symbol explicitly becomes part of the fund segment. In
addition, the fund values can be defined to easily identify the fiscal
year as seen in the crosswalk provided by Oracle. It would be
cost-prohibitive to change the software to accommodate the fund model
proposed by JFMIP.

Since the fiscal year component of the Treasury Symbol is defined as
part of fund within Oracle's architecture, the budget fiscal year that
Oracle provides is a supplement to the fund and fiscal year provided in
the test. Oracle implementations have traditionally used budget fiscal
year as year of apportionment to provide enhanced funds control and to
aid in reporting. Unobligated funds are carried forward to the next
fiscal year so that the original year of obligation is maintained for
enhanced reporting purposes. So in addition to including the fiscal year
component of the Treasury Symbol within the fund, Oracle provides the
ability to track the year of apportionment for no-year and multi-year
funds using the budget fiscal year segment.

#### C. Benefit to the Government

The proposed model benefits the Government in the following ways:

1.  The client's set of books would be balanced at the fund level as
    opposed to a higher Treasury account code level.

2.  It provides for an easier view of funds available balances because
    the fund is setup at a lower, more useful reporting level as opposed
    to the Treasury account code level which would cross multiple
    Treasury Symbols. Oracle Applications still allow users to access
    data at a higher level as needed by establishing parent-child
    relationships.

3.  It provides tighter budgetary controls and enhances funds tracking
    for external reporting as needed. For multi and no-year funds, the
    government will be able to track commitments, obligations and
    expenditures against the original year of apportionment allowing
    funds control to be maintained by budget fiscal year. This budget
    fiscal year will carry through the life-cycle of the document to
    assist in reporting outlays to current year and prior year
    obligations and to allow for other variations of reporting as
    needed.

4.  Oracle provides more capability and flexibility for reporting while
    meeting requirement CFA-01. Oracle's Fund is equivalent to reporting
    by Fund and Fiscal Year in the test. Oracle could also report by the
    test's equivalent of Fund by establishing parent-child
    relationships. For example, Oracle provides five internal funds for
    0100DA. They are 97-0100DA, 98-0100DA, 01-0100DA, 02-0100DA,
    03-0100DA. Through parent and child relationships, Oracle provides
    the ability to report on 0100DA, the equivalent of fund in the test.
    There are no specific outputs in the test that run by 0100DA without
    fiscal year.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

The table below represents the test Treasury Symbol, the test fund value
compared to Oracle's fund value, the test fiscal year values that would
be associated with the Treasury Symbol/fund value combination and
Oracle's corresponding budget fiscal year value.

+-------------------+-------------+---------------+---------+---------+
| TASF              | Fund        |               | BFY     |         |
+===================+=============+===============+=========+=========+
| JFMIP/Oracle      | JFMIP       | Oracle        | JFMIP   | Oracle  |
+-------------------+-------------+---------------+---------+---------+
| > 06 01 0100      | > 0100DA    | > 01-0100DA   | > 01    | > 2001  |
+-------------------+-------------+---------------+---------+---------+
| > 06 02 0100      | > 0100DA    | > 02-0100DA   | > 02    | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 02 0100      | > 0100DB    | > 02-0100DB   | > 02    | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 03 0100      | > 0100DA    | > 03-0100DA   | > 03    | > 2003  |
+-------------------+-------------+---------------+---------+---------+
| > 06 03 0100      | > 0100DB    | > 03-0100DB   | > 03    | > 2003  |
+-------------------+-------------+---------------+---------+---------+
| > 06 02 0100      | > 0100R     | > 02-0100R    | > 02    | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 03 0100      | > 0100R     | > 03-0100R    | > 03    | > 2003  |
+-------------------+-------------+---------------+---------+---------+
| > 06 98 0100      | > 0100DA    | > 98-0100DA   | > 98    | > 1998  |
+-------------------+-------------+---------------+---------+---------+
| > 06 97 0100      | > 0100DA    | > 97-0100DA   | > 97    | > 1997  |
+-------------------+-------------+---------------+---------+---------+
| > 06 01/02 0101   | > 0101      | > 01-02-0101  | > 01/02 | > 2001  |
+-------------------+-------------+---------------+---------+---------+
| >                 | >           | >             | > 01/02 | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 02/03 0101   | > 0101      | > 02-03-0101  | > 02/03 | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| >                 | >           | >             | > 02/03 | > 2003  |
+-------------------+-------------+---------------+---------+---------+
| > 06 03/04 0101   | > 0101      | > 03-04-0101  | > 03/04 | > 2003  |
+-------------------+-------------+---------------+---------+---------+
| > 06 01 0103      | > 0103      | > 0103        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 02 X 0105       | > 0105      | > 0105        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| >                 | >           | >             | > X     | > 2003  |
+-------------------+-------------+---------------+---------+---------+
| > 02 X 0107       | > 0107      | > 0107        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 02 X 0200       | > 0200R     | > 0200R       | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 02 X 0200       | > 0200D     | > 0200D       | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| >                 | >           | >             | > X     | > 2003  |
+-------------------+-------------+---------------+---------+---------+
| > 02 X 1100       | > 1100      | > 1100        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 02 X 2000       | > 2000      | > 2000        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 02 X 2100       | > 2100      | > 2100        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 02 X 2701       | > 2701      | > 2701        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 07 X 3100    | > 3100      | > 3100        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 F 3875       | > 3875      | > 3875        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 F 3885       | > 3885      | > 3885        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 X 4050       | > 4050      | > 4050        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 X 4150       | > 4150      | > 4150        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 X 4550       | > 4550      | > 4550        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 X 6010       | > 6010      | > 6010        | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 X 8105       | > 8105.001  | > 8105001     | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 X 8105       | > 8105.002  | > 8105002     | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 X 8105       | > 8105.003  | > 8105003     | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| > 06 X 8105       | > 8105.000  | > 8105000     | > X     | > 2002  |
+-------------------+-------------+---------------+---------+---------+
| >                 | >           | >             | > X     | > 2003  |
+-------------------+-------------+---------------+---------+---------+
|                   |             |               |         |         |
+-------------------+-------------+---------------+---------+---------+
|                   |             |               |         |         |
+-------------------+-------------+---------------+---------+---------+

###  Alternate Posting Model for Spending Transactions

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance request covers three related areas:

1.  Use of alternative USSGL sub-account

2.  Reversal of transaction codes on certain transaction types

3.  Combination of JFMIP's transaction codes into a single transaction
    code.

The three transaction types that this variance is concerned with are:
Commitments, Obligations, and Expenditures. Examples of these are as
follows:

+-----------------------+---+---+------------------------+--------------------+
| Account Transaction   |   | J |                        | Oracle's Entry     |
| Listing Published by  |   | F |                        |                    |
| FMS                   |   | M |                        |                    |
|                       |   | I |                        |                    |
|                       |   | P |                        |                    |
|                       |   | ' |                        |                    |
|                       |   | s |                        |                    |
|                       |   | E |                        |                    |
|                       |   | n |                        |                    |
|                       |   | t |                        |                    |
|                       |   | r |                        |                    |
|                       |   | y |                        |                    |
+=======================+===+===+========================+====================+
| A. Commitments        |   |   |                        |                    |
+-----------------------+---+---+------------------------+--------------------+
| Transaction           |   | T |                        | Transaction        |
| Code---B202           |   | r |                        | Code---B202        |
|                       |   | a |                        |                    |
| DR 4610               |   | n |                        | DR 461002          |
| Allotments---Realized |   | s |                        |                    |
| Resources             |   | a |                        | CR 470001          |
|                       |   | c |                        |                    |
| CR 4700 Commitments   |   | t |                        |                    |
|                       |   | i |                        |                    |
|                       |   | o |                        |                    |
|                       |   | n |                        |                    |
|                       |   | C |                        |                    |
|                       |   | o |                        |                    |
|                       |   | d |                        |                    |
|                       |   | e |                        |                    |
|                       |   | - |                        |                    |
|                       |   | - |                        |                    |
|                       |   | - |                        |                    |
|                       |   | B |                        |                    |
|                       |   | 2 |                        |                    |
|                       |   | 0 |                        |                    |
|                       |   | 2 |                        |                    |
|                       |   |   |                        |                    |
|                       |   | D |                        |                    |
|                       |   | R |                        |                    |
|                       |   | 4 |                        |                    |
|                       |   | 6 |                        |                    |
|                       |   | 1 |                        |                    |
|                       |   | 0 |                        |                    |
|                       |   | . |                        |                    |
|                       |   | 0 |                        |                    |
|                       |   | 1 |                        |                    |
|                       |   |   |                        |                    |
|                       |   | C |                        |                    |
|                       |   | R |                        |                    |
|                       |   | 4 |                        |                    |
|                       |   | 7 |                        |                    |
|                       |   | 0 |                        |                    |
|                       |   | 0 |                        |                    |
|                       |   | . |                        |                    |
|                       |   | 0 |                        |                    |
|                       |   | 1 |                        |                    |
+-----------------------+---+---+------------------------+--------------------+
| B.                    |   |   |                        |                    |
| Oblig                 |   |   |                        |                    |
| ations---Current-Year |   |   |                        |                    |
| undelivered orders    |   |   |                        |                    |
| without an advance    |   |   |                        |                    |
+-----------------------+---+---+------------------------+--------------------+
| Transaction           |   |   | Transaction            | DR 470001          |
| Code---B204           |   |   | Code---B204            |                    |
|                       |   |   |                        | CR 461002          |
| DR 4700 Commitments   |   |   | DR 4700.01             |                    |
|                       |   |   |                        | Transaction        |
| CR 4801 Undelivered   |   |   | CR 4801.01             | Code---B204        |
| Orders---Obligations, |   |   |                        |                    |
| unpaid                |   |   |                        | DR 461002          |
|                       |   |   |                        |                    |
|                       |   |   |                        | CR 480101          |
+-----------------------+---+---+------------------------+--------------------+
| C. Expenditures -     |   |   |                        |                    |
| Delivery of Goods and |   |   |                        |                    |
| Services and accrue a |   |   |                        |                    |
| liability and to      |   |   |                        |                    |
| record appropriations |   |   |                        |                    |
| used this fiscal      |   |   |                        |                    |
| year. Test PE2.5 is   |   |   |                        |                    |
| used as an example:   |   |   |                        |                    |
+-----------------------+---+---+------------------------+--------------------+
| Transaction           | T |   |                        | The system         |
| Code---B302 (delivery | r |   |                        | automatically      |
| of goods and          | a |   |                        | reverses the       |
| services)             | n |   |                        | obligations entry  |
|                       | s |   |                        | (i.e. transaction  |
| Budgetary Entry       | a |   |                        | code B204)         |
|                       | c |   |                        |                    |
| DR 4801 Undelivered   | t |   |                        | DR 480101          |
| Orders---Obligations, | i |   |                        |                    |
| unpaid                | o |   |                        | CR 461002          |
|                       | n |   |                        |                    |
| CR 4901 Delivered\    | C |   |                        |                    |
| Orders---Obligations, | o |   |                        |                    |
| unpaid                | d |   |                        |                    |
|                       | e |   |                        |                    |
|                       | - |   |                        |                    |
|                       | - |   |                        |                    |
|                       | - |   |                        |                    |
|                       | B |   |                        |                    |
|                       | 3 |   |                        |                    |
|                       | 0 |   |                        |                    |
|                       | 2 |   |                        |                    |
|                       | ( |   |                        |                    |
|                       | d |   |                        |                    |
|                       | e |   |                        |                    |
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|                       | ) |   |                        |                    |
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|                       | n |   |                        |                    |
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|                       | y |   |                        |                    |
|                       |   |   |                        |                    |
|                       | D |   |                        |                    |
|                       | R |   |                        |                    |
|                       | 4 |   |                        |                    |
|                       | 8 |   |                        |                    |
|                       | 0 |   |                        |                    |
|                       | 1 |   |                        |                    |
|                       | . |   |                        |                    |
|                       | 0 |   |                        |                    |
|                       | 1 |   |                        |                    |
|                       | - |   |                        |                    |
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+-----------------------+---+---+------------------------+--------------------+
| Proprietary Entry     |   |   |                        |                    |
|                       |   |   |                        |                    |
| DR 6100---Operating   |   |   |                        |                    |
| Expenses/Program      |   |   |                        |                    |
| Costs                 |   |   |                        |                    |
|                       |   |   |                        |                    |
| CR 2110---Accounts    |   |   |                        |                    |
| Payable               |   |   |                        |                    |
|                       |   |   |                        |                    |
| Transaction           |   |   |                        |                    |
| Code---B134           |   |   |                        |                    |
| (appropriations used  |   |   |                        |                    |
| this fiscal year)     |   |   |                        |                    |
|                       |   |   |                        |                    |
| DR 3107 Unexpended    |   |   |                        |                    |
| Appropriations---Used |   |   |                        |                    |
|                       |   |   |                        |                    |
| CR 5700---Expended    |   |   |                        |                    |
| Appropriations        |   |   |                        |                    |
+-----------------------+---+---+------------------------+--------------------+
|                       |   |   |                        |                    |
+-----------------------+---+---+------------------------+--------------------+
|                       |   |   |                        |                    |
+-----------------------+---+---+------------------------+--------------------+

The system generates the entry of two proprietary accounts on the
transaction, a liability account and a charge account, to be posted to
GL without a transaction code. These accounts can default from document
types or accounting events. Oracle will default the Proprietary CR entry
of transaction code B302 as the liability account and the DR entry of
transaction code B302 as the charge account.

DR 610001

CR 211001

A transaction code is then used for any additional SGL accounts.

Transaction Code---B302/B134

DR 461002

CR 490101

DR 310701

CR 570001

[Item 1. Use of alternative USSGL sub-account]{.underline}

Oracle will use the sub-account 461002 instead of 461001 in Commitment
transactions (Example A) with transaction code B202.

[Item 2. Reversal of transaction codes on certain transaction
types]{.underline}

As can be seen in Example B and C (above), the behavior of Oracle's
system is that the downstream activity in the
Commitment---Obligation---Expenditure cycle automatically reverses the
transaction code associated with the previous transaction.

[Item 3. Combination of JFMIP's transaction codes into a single
transaction code]{.underline}

As can be seen in Example C (above), a new transaction code
("B302/B134") is defined to address the use of two transaction codes in
the test script.

Oracle will provide a detailed crosswalk at the initial interview with
JFMIP detailing, by transaction, the applicable debit and credit pairs.

#### B. Reason for Variance

[Item 1. Use of alternative USSGL sub-account]{.underline}

The proposed use of sub-account 461002 provides easier access to the
beginning budget balance (461001) because spending activity is recorded
separately in account 461002. The two accounts together represent the
funds check level in accordance with the Antideficiency Act.

[Item 2. Reversal of transaction codes on certain transaction
types]{.underline}

Oracle Applications was architected to account for spending transactions
in the Commitment---Obligation---Expenditure cycle to always reverse the
transaction code of the originating/previous transaction.

It would be cost-prohibitive to change Oracle's approach.

[Item 3. Combination of JFMIP's transaction codes into a single
transaction code]{.underline}

Oracle Applications was architected to provide for only one transaction
code per transaction line. Within each transaction code, though, there
can be multiple pairs of debit/credit accounts listed. In this way,
Oracle Applications can accommodate the JFMIP approach of using multiple
transaction codes (with each transaction code having only one pair of
debit/credit accounts).

It would be cost-prohibitive to change Oracle's approach.

#### C. Benefit to the Government

[Item 1. Alternative USSGL sub-account]{.underline}

The proposed use of sub-accounts benefits the Government by providing
users easy access to the beginning budget balance and associated
spending documents at any level of the accounting classification code
structure either online or in standard reports.

[Item 2. Reversal of transaction codes on certain transaction
types]{.underline}

The reversal approach provides an effective audit trail up and down the
spending chain both online and in standard reports. As documents move
down the spending chain, Oracle Applications maintains an electronic
trail using internal database keys reducing the user's dependence on the
traditional paper trail.

[Item 3. Combination of JFMIP's transaction codes into a single
transaction code]{.underline}

Oracle Applications are capable of storing an unlimited number of debit
and credit pairs per transaction line allowing transaction codes to be
combined. This minimizes the user mistakes in selecting the incorrect
transaction codes. Combining transaction codes takes advantage of
Oracle's capabilities and facilitates manual or automatic data entry.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

[Item 1. Alternative USSGL sub-account]{.underline}

[A. Commitments]{.mark}

Oracle's debit account for transaction code B202 is 461002 whereas
JFMIP's debit account is 4610.01. Oracle proposes using 461002 for the
spending transactions. The net results are unchanged.

[Item 2. Reversal of transaction codes on certain transaction
types]{.underline}

There is no change to the test steps or net results, other than having
additional debit/credit pairs.

[Item 3. Combination of JFMIP's transaction codes into a single
transaction code]{.underline}

[C.]{.mark} Expenditures---Delivery of Goods and Services and accrue a
liability and to record appropriations used this fiscal year

Oracle will combine the two transaction codes into one transaction code.
B302 and B134 transaction codes designated by JFMIP will be combined
into Oracle's B302/B134 transaction code. The net results are unchanged.

Oracle will provide a detailed crosswalk at the initial interview with
JFMIP detailing, by transaction, the applicable debit and credit pairs.

### Use Of Sub-Accounts for Recording Funding Distributions

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance request covers the use of two related areas:

-   Alternative USSGL sub-accounts

-   Alternative document numberings.

[Item 1. Alternative USSGL sub-accounts]{.underline}

There are 5 transaction types that will use alternative sub-accounts.

+-----------------------+---+---+----------------------+---+----------------------+
| Account Transaction   |   |   | JFMIP's Entry        |   | Oracle's Entry       |
| Listing Published by  |   |   |                      |   |                      |
| FMS                   |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| A. Budgetary          |   |   |                      |   |                      |
| authority apportioned |   |   |                      |   |                      |
| by OMB and available  |   |   |                      |   |                      |
| for allotment         |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| Transaction           |   |   | Transaction          |   | Transaction          |
| Code---A116           |   |   | Code---A116          |   | Code---A116          |
|                       |   |   |                      |   |                      |
| DR 4450 Unapportioned |   |   | DR 4450.01           |   | DR 445002            |
| Authority             |   |   |                      |   |                      |
|                       |   |   | CR 4510.01           |   | CR 451001            |
| CR 4510               |   |   |                      |   |                      |
| Apportionments        |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| B. Anticipated        |   |   |                      |   |                      |
| resources apportioned |   |   |                      |   |                      |
| but not available for |   |   |                      |   |                      |
| use until they are    |   |   |                      |   |                      |
| realized              |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| Transaction           |   |   | Transaction          |   | Transaction          |
| Code---A118           |   |   | Code---A118          |   | Code---A118          |
|                       |   |   |                      |   |                      |
| DR 4450 Unapportioned |   |   | DR 4450.01           |   | DR 445002            |
| Authority             |   |   |                      |   |                      |
|                       |   |   | CR 4590.01           |   | CR 459001            |
| CR 4590               |   |   |                      |   |                      |
| Apportionments        |   |   |                      |   |                      |
| Unav                  |   |   |                      |   |                      |
| ailable---Anticipated |   |   |                      |   |                      |
| Resources             |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| C. Allotment of       |   |   |                      |   |                      |
| authority             |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| Transaction           |   | T |                      | T |                      |
| Code---A120           |   | r |                      | r |                      |
|                       |   | a |                      | a |                      |
| DR                    |   | n |                      | n |                      |
| 4510---Apportionments |   | s |                      | s |                      |
|                       |   | a |                      | a |                      |
| CR                    |   | c |                      | c |                      |
| 4610---               |   | t |                      | t |                      |
| Allotments---Realized |   | i |                      | i |                      |
| Resources             |   | o |                      | o |                      |
|                       |   | n |                      | n |                      |
|                       |   | C |                      | C |                      |
|                       |   | o |                      | o |                      |
|                       |   | d |                      | d |                      |
|                       |   | e |                      | e |                      |
|                       |   | - |                      | - |                      |
|                       |   | - |                      | - |                      |
|                       |   | - |                      | - |                      |
|                       |   | A |                      | A |                      |
|                       |   | 1 |                      | 1 |                      |
|                       |   | 2 |                      | 2 |                      |
|                       |   | 0 |                      | 0 |                      |
|                       |   |   |                      |   |                      |
|                       |   | D |                      | D |                      |
|                       |   | R |                      | R |                      |
|                       |   | 4 |                      | 4 |                      |
|                       |   | 5 |                      | 5 |                      |
|                       |   | 1 |                      | 1 |                      |
|                       |   | 0 |                      | 0 |                      |
|                       |   | . |                      | 0 |                      |
|                       |   | 0 |                      | 2 |                      |
|                       |   | 1 |                      |   |                      |
|                       |   |   |                      | C |                      |
|                       |   | C |                      | R |                      |
|                       |   | R |                      | 4 |                      |
|                       |   | 4 |                      | 6 |                      |
|                       |   | 6 |                      | 1 |                      |
|                       |   | 1 |                      | 0 |                      |
|                       |   | 0 |                      | 0 |                      |
|                       |   | . |                      | 1 |                      |
|                       |   | 0 |                      |   |                      |
|                       |   | 1 |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| D. Realization of     |   |   |                      |   |                      |
| previously            |   |   |                      |   |                      |
| anticipated and       |   |   |                      |   |                      |
| apportioned authority |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| Transaction           | T |   |                      | T |                      |
| Code---A122           | r |   |                      | r |                      |
|                       | a |   |                      | a |                      |
| DR                    | n |   |                      | n |                      |
| 4590---Apportionments | s |   |                      | s |                      |
| Unav                  | a |   |                      | a |                      |
| ailable---Anticipated | c |   |                      | c |                      |
| Resources             | t |   |                      | t |                      |
|                       | i |   |                      | i |                      |
| CR                    | o |   |                      | o |                      |
| 4610---               | n |   |                      | n |                      |
| Allotments---Realized | C |   |                      | C |                      |
| Resources             | o |   |                      | o |                      |
|                       | d |   |                      | d |                      |
|                       | e |   |                      | e |                      |
|                       | - |   |                      | - |                      |
|                       | - |   |                      | - |                      |
|                       | - |   |                      | - |                      |
|                       | A |   |                      | A |                      |
|                       | 1 |   |                      | 1 |                      |
|                       | 2 |   |                      | 2 |                      |
|                       | 2 |   |                      | 2 |                      |
|                       |   |   |                      |   |                      |
|                       | D |   |                      | D |                      |
|                       | R |   |                      | R |                      |
|                       | 4 |   |                      | 4 |                      |
|                       | 5 |   |                      | 5 |                      |
|                       | 9 |   |                      | 9 |                      |
|                       | 0 |   |                      | 0 |                      |
|                       | . |   |                      | 0 |                      |
|                       | 0 |   |                      | 2 |                      |
|                       | 1 |   |                      |   |                      |
|                       |   |   |                      | C |                      |
|                       | C |   |                      | R |                      |
|                       | R |   |                      | 4 |                      |
|                       | 4 |   |                      | 6 |                      |
|                       | 6 |   |                      | 1 |                      |
|                       | 1 |   |                      | 0 |                      |
|                       | 0 |   |                      | 0 |                      |
|                       | . |   |                      | 1 |                      |
|                       | 0 |   |                      |   |                      |
|                       | 1 |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| E. Realization of     |   |   |                      |   |                      |
| previously            |   |   |                      |   |                      |
| anticipated and       |   |   |                      |   |                      |
| apportioned authority |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
| Transaction           | T |   |                      | T |                      |
| Code---A122           | r |   |                      | r |                      |
|                       | a |   |                      | a |                      |
| DR                    | n |   |                      | n |                      |
| 4590---Apportionments | s |   |                      | s |                      |
| Unav                  | a |   |                      | a |                      |
| ailable---Anticipated | c |   |                      | c |                      |
| Resources             | t |   |                      | t |                      |
|                       | i |   |                      | i |                      |
| CR                    | o |   |                      | o |                      |
| 4510---               | n |   |                      | n |                      |
| Allotments---Realized | C |   |                      | C |                      |
| Resources             | o |   |                      | o |                      |
|                       | d |   |                      | d |                      |
|                       | e |   |                      | e |                      |
|                       | - |   |                      | - |                      |
|                       | - |   |                      | - |                      |
|                       | - |   |                      | - |                      |
|                       | A |   |                      | A |                      |
|                       | 1 |   |                      | 1 |                      |
|                       | 2 |   |                      | 2 |                      |
|                       | 2 |   |                      | 2 |                      |
|                       |   |   |                      | a |                      |
|                       | D |   |                      |   |                      |
|                       | R |   |                      | D |                      |
|                       | 4 |   |                      | R |                      |
|                       | 5 |   |                      | 4 |                      |
|                       | 9 |   |                      | 5 |                      |
|                       | 0 |   |                      | 9 |                      |
|                       | . |   |                      | 0 |                      |
|                       | 0 |   |                      | 0 |                      |
|                       | 1 |   |                      | 2 |                      |
|                       |   |   |                      |   |                      |
|                       | C |   |                      | C |                      |
|                       | R |   |                      | R |                      |
|                       | 4 |   |                      | 4 |                      |
|                       | 5 |   |                      | 5 |                      |
|                       | 1 |   |                      | 1 |                      |
|                       | 0 |   |                      | 0 |                      |
|                       | . |   |                      | 0 |                      |
|                       | 0 |   |                      | 1 |                      |
|                       | 1 |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
|                       |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+
|                       |   |   |                      |   |                      |
+-----------------------+---+---+----------------------+---+----------------------+

Since Transaction Code A122 can have different Credit accounts (see
Scenario D), Oracle has defined a new transaction code (A122a) for the
scenarios that should credit 451001 instead of 461001.

[Item 2. Alternative Document Numbering]{.underline}

The JFMIP test script requires downstream budget execution (BE)
transactions to do a complete reversal of a prior, related BE
transactions. For example, an allotment transaction requires a reversal
of both the apportionment and the appropriation transactions associated
with that allotment. After the reversals, the appropriation,
apportionment and allotment transactions are booked to the new
accounting string. Each transaction (including reversals) is booked with
a unique document number (per the test scripts).

Oracle allows users to reverse transactions to the original document,
i.e. there is no need to record a separate document for reversal
activities.

Oracle will provide a detailed crosswalk at the initial interview with
JFMIP detailing, by transaction, the applicable debit and credit pairs
and document numbers.

#### B. Reason for Variance

[Item 1. Alternative USSGL sub-accounts]{.underline}

The proposed use of sub-accounts allows Oracle to segregate the
beginning balances associated with each level of the budget execution
chain. For example, account 451001 would store only the
[beginning]{.underline} apportionment balance, while account 451002
would store the subsequent activity related to allotments. The two
accounts together represent the funds check level in accordance with the
Antideficiency Act.

[Item 2. Alternative Document Numbering]{.underline}

The proposed document numbering scheme eliminates the need to record
additional documents for reversals because both the original amount and
reversal amount are recorded as separate lines on the same document.

#### C. Benefit to the Government

[Item 1. Alternative USSGL sub-accounts]{.underline}

The proposed use of sub-accounts benefits the Government in two ways.
First, users will be able to easily access the beginning balance at any
level of the budget execution chain online or in standard reports. Users
will not have to weed through details to determine a beginning balance.
Second, this facilitates report definition because the majority of
Oracle Applications reports are based on SGL account balances. This
balance-based report approach results in exceptional performance because
Oracle's reporting engine does not need to read transaction level detail
to derive a beginning balance.

[Item 2. Alternative Document Numbering]{.underline}

The proposed document numbering scheme eliminates the need to record
additional documents for reversals because both the original amount and
reversal amount are recorded as separate lines on the same document.
This streamlines the audit trail by providing all document-related
activity on one document. The model also eliminates data entry error as
the original account strip is defaulted on adjustments to the document.
This activity is also available in online inquiries and standard
reports.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

[Item 1. Alternative USSGL sub-accounts]{.underline}

The changes are identified below.

-   Budgetary authority apportioned by OMB and available for allotment

> Oracle's debit account for transaction code A116 is 445002 whereas
> JFMIP's debit account is 4450.01. Oracle proposes using 445002 for the
> apportionment activity.

-   Anticipated resources apportioned but not available for use until
    they are realized

> Oracle's debit account for transaction code A118 is 445002 whereas
> JFMIP's debit account is 4450.01. Oracle proposes using 445002 for the
> apportionment activity.

-   Allotment of authority

> Oracle's debit account for transaction code A120 is 451002 whereas
> JFMIP's debit account is 4510.01. Oracle proposes using 451002 for the
> allotment activity.

-   Realization of previously anticipated and apportioned authority

> Oracle's debit account for transaction code A122 is 459002 whereas
> JFMIP's debit account is 4590.01. Oracle proposes using 459002 for the
> allotment activity.

-   Realization of previously anticipated and apportioned authority

> Oracle's debit account for transaction code A122a is 459002 whereas
> JFMIP's debit account is 4590.01. Oracle proposes using 459002 for the
> allotment activity.

[Item 2. Alternative Document Numbering]{.underline}

The proposed document numbering scheme will eliminate the need to enter
a document to record reversals related to budget execution "downstream"
transactions. We will simply enter a "decreasing" record on the original
document. Detail by test step is included in the document crosswalk that
will be provided at the JFMIP initial interview.

All other related Test items remain unaffected.

### Alternate Posting Model Using Unexpired Accounts for Recording Upward/Downward Adjustments

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance applies to the following Test Scripts:

[AO1.4, Cycle 17]{.underline}

Payment Supervisor User retrieves the suspended invoice document,
overrides the warning messages, and posts the document.

[AO2.2, Cycle 17]{.underline}

Receive correction notice for disbursement made outside of the system.
The original payment should have been recorded for \$11.00 more.

[AO3.3, Cycle 17]{.underline}

Record payment made to Todd Zuper (vendor V-10) outside of the system
for 130.5 hours of advisory services. Mark payment 'final'.

[AO5.3, Cycle 17]{.underline}

Receive invoice for prior year delivered orders. Perform three way
match, mark invoice as final, and warehouse payment.

[AO5.4, Cycle 17]{.underline}

Payment supervisor determines during review that invoice was erroneously
posted for \$210 instead of the \$215 which included shipping and
handling charges. Make corrections and re-warehouse payment.

[AO7.2, Cycle 17]{.underline}

Receive refund for prior year (over) payment made outside of the system.

[AO8.3, Cycle 17]{.underline}

Increase pre-payment to cover upgraded paper.

[AO9.1, Cycle 10]{.underline}

Record payment made through API where amount is less than original prior
year obligation and difference is deobligated.

[AO10.1, Cycle 10]{.underline}

Record disbursement to V-16 vendor made outside of the system.

This variance notes extra accounting entries in the 4610 and other
accounts (as noted below) for Prior Year Upward and Downward
transactions where these entries net to zero. If a transaction code is
entered on a particular transaction (i.e. purchase order or invoice),
the system does not change this transaction code from the way it was
originally setup or entered. Instead, the system supplements this
transaction with additional entries in the case of downward and upward
transactions.

For example, in transaction A010.1 a disbursement to the vendor was made
outside the system. A TC is entered on the invoice which generates the
following entries:

DR 4610.02

CR 4901.01

DR 3107.01

CR 5700.01

The system will identify that a prior year adjustment was made and add
an additional supplemental entry to this transaction for:

DR 4650.01

CR 4981.01

DR 4901.01

CR 4610.02

In doing this, the system creates extra 4901 entries (in this example)
and 4610 entries which net to zero. In this example the "offsetting"
account is 4901 which is expended/unpaid; however if the transaction
were unexpended/unpaid, the offsetting account would be 4801.
Subsequently if the transaction were unexpended/paid, the offsetting
account would be 4802 and expended/paid would be 4902. These offsetting
accounts are user-definable in setup.

These additional entries are generated by running a prior year
adjustment process. This process 1) selects prior year transactions, 2)
determines whether they are expended/unexpended, paid/unpaid,
anticipated/unanticipated, or expired/unexpired and then 3) assigns the
proper supplemental transaction code and 4) generates the additional
entries.

#### B. Reason for Variance

Oracle notes extra accounting entries in the 4610 and other accounts (as
noted above) for Prior Year Upward and Downward transactions where these
entries net to zero. When there is a downward or upward adjustment, the
system supplements the original transaction code entries with additional
entries. This Prior Year Adjustment Process is a concurrent process
which can be run as entries are posted in the GL and is seamless to the
end-user.

#### C. Benefit to the Government

The end-user does not need to be concerned with which transaction code
is being input on the original transaction. They do not need to
determine if the transaction is prior year, whether it was paid/unpaid,
expended/unexpended, etc to generate the correct accounting entries. The
Prior Year Adjustment Process is seamless to the end-user and produces
the correct accounting results. Although it produces some additional
entries, these entries net to zero. These additional entries are fully
auditable and reference the original document.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

The expected results will differ as follows. The debits and credits
reflected below are only in relation to the downward/upward adjustment
portion of the expected results. The italicized entries are those that
are Oracle's additional entries.

+----------+--------------+--------------+-------------+--------------+
| Test     | JFMIP        |              | Oracle      |              |
| Step     | Expected     |              | Expected    |              |
|          | Results      |              | Results     |              |
+==========+==============+==============+=============+==============+
|          | Debit        | Credit       | Debit       | Credit       |
|          | Accounts     | Accounts     | Accounts    | Accounts     |
+----------+--------------+--------------+-------------+--------------+
| AO1.4-   | 4650.01      | 4981.01      | 465001      | 498101       |
| --Upward |              |              |             |              |
| Adj. For |              |              | 461002      | 461002       |
| \$37     |              |              |             |              |
|          |              |              | 490101      | 490101       |
+----------+--------------+--------------+-------------+--------------+
| AO2.2-   | 4650.01      | 4982.01      | 465001      | 498201       |
| --Upward |              |              |             |              |
| Adj. For |              |              | 461002      | 461002       |
| \$11     |              |              |             |              |
|          |              |              | 490201      | 490201       |
+----------+--------------+--------------+-------------+--------------+
| AO3.3--- | 4871.01      | 4650.01      | 487101      | 465001       |
| Downward |              |              |             |              |
| Adj. For |              | .            | 461002      | 461002       |
| \$3475   |              |              |             |              |
|          |              |              | 480101      | 480101       |
+----------+--------------+--------------+-------------+--------------+
| AO5.3--- | 4971.01      | 4450.01      | No entry    | No entry     |
| Downward |              |              |             |              |
| Adj. For |              |              |             |              |
| \$3      |              |              |             |              |
+----------+--------------+--------------+-------------+--------------+
| AO5.4--  | 4450.01      | 4971.01      | No          | No entry     |
| -Reverse |              |              | entry---the |              |
| Downward | 4650.01      | 4981.01      | PYA process | 498101       |
| Adj. For |              |              | nets AO5.3  |              |
| \$3 And  |              |              | together    | 461002       |
| Upward   |              |              | with AO5.4  |              |
| Adj. For |              |              | step 1      | 490101       |
| #2       |              |              | which nets  |              |
|          |              |              | to zero and |              |
|          |              |              | there is no |              |
|          |              |              | entry       |              |
|          |              |              | generated   |              |
|          |              |              |             |              |
|          |              |              | 465001      |              |
|          |              |              |             |              |
|          |              |              | 461002      |              |
|          |              |              |             |              |
|          |              |              | 490101      |              |
+----------+--------------+--------------+-------------+--------------+
| AO7.2--- | 4972.01      | 4450.01      | 497201      | 445001       |
| Downward |              |              |             |              |
| Adj. For |              |              | 461002      | 461002       |
| \$21     |              |              |             |              |
|          |              |              | 490201      | 490201       |
+----------+--------------+--------------+-------------+--------------+
| AO8.3-   | 461001       | 488201       | 461002      | 488201       |
| --Upward |              |              |             |              |
| Adj. For |              |              | 461002      | 461002       |
| \$100    |              |              |             |              |
|          |              |              | 480201      | 480201       |
+----------+--------------+--------------+-------------+--------------+
| AO9.1--- | 4871.01      | 4450.01      | 487101      | 445001       |
| Downward |              |              |             |              |
| Adj. For |              |              | 461002      | 461002       |
| \$20     |              |              |             |              |
|          |              |              | 480101      | 480101       |
+----------+--------------+--------------+-------------+--------------+
| AO10.1-  | 4650.01      | 4981.01      | 465001      | 498101       |
| --Upward |              |              |             |              |
| Adj. For |              |              | 461002      | 461002       |
| \$51     |              |              |             |              |
|          |              |              | 490101      | 490101       |
+----------+--------------+--------------+-------------+--------------+
|          |              |              |             |              |
+----------+--------------+--------------+-------------+--------------+
|          |              |              |             |              |
+----------+--------------+--------------+-------------+--------------+

###  Memorandum Accounts Used for M Year, Travel Limitation, Loan Subsidy Ceilings, Reimbursable Agreement W/O Advance, Receivable Invoice

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This request deals with the following reports:

-   FACTS I Trial Balance

-   FACTS I Trial Balance Excel Output

-   FACTS II Trial Balance

-   FACTS II Trial Balance Excel Output

-   FACTS Transaction Register

-   FACTS Transaction Register Excel Output

-   Standard Trial Balance

-   Standard Trial Balance Excel Output.

Oracle records transactions to memorandum accounts (8000 series) during
the test. These accounts are for agency use. Since these accounts are
posted to general ledger, they will be reflected in the reports listed
above.

The memorandum accounts are used with the following types of
transactions:

-   travel limitation (FI1.30, FI1.31, FI1.32, FI1.33, and FM1.8)---no
    additional document numbers were used

-   loan subsidy ceiling (AL2.1, AL2.6 and AL2.9)---no additional
    document numbers were used

-   M-year legislation limit (AY7.2)---no additional document numbers
    were used

-   reimbursable order without advance (RO1.3 and RO1.10)---For
    Reimbursable Agreements without advances, Oracle used two documents,
    one to reflect the reimbursable agreement and one to record an order
    against that agreement. In RO1.3, document number 02-0100R-2002 was
    created to reflect the reimbursable agreement and RO1AR3.1 was used
    to record the \$100,0000 order against the agreement. In RO1.10,
    document number 02-0100R-2002a was created to reflect the
    incremental change of \$90,000 to agreement 02-0100R-2002 and
    RO1AR11.1 was used to record the order. The document crosswalk will
    be updated to include the document number 02-0100R-2002a instead of
    02-0100R-2003 and will be provided to JFMIP.

-   Receivable invoice (RO1.4)---In RO1.4 we created a Receivables
    Invoice transaction and referenced reimbursable agreement
    02-0100R-2002. The system automatically reverses the accounting
    entries for the amount of the invoice for transaction 02-0100R-2002
    created in test step RO1.3. These reversal entries are reflected in
    the transaction register as the original document number of
    02-0100R-2002. The document crosswalk will be updated to include
    document number 02-0100R-2002.

#### B. Reason for Variance

Since the memorandum accounts are for agency use, JFMIP does not include
memorandum accounts on the cycle reports. Oracle will include memorandum
accounts posted to general ledger on these reports.

The memorandum accounts will not be included on the files produced by
Oracle that are submitted to Treasury because Oracle has validations
that verify whether an account is eligible for FACTS I and II reporting,
which these are not.

#### C. Benefit to the Government

The memorandum accounts should be reported on the Standard Trial Balance
report since the accounts are part of the Trial Balance. They are also
displayed on the FACTS I and FACTS II Trial Balance reports without
FACTS attributes to allow for consistent reporting of balances between
the standard trial balance and the FACTS trial balances. Likewise, the
accounts will also be reported on the FACTS Transaction Register without
FACTS attributes since the report includes all transactions that
occurred within the accounting period specified.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

The following table illustrates the test steps where Oracle records to
memorandum accounts

  -----------------------------------------------------------------------------------
  Test Step Fund        DR Acct  CR Acct  Amt            JFMIP Doc   Oracle Doc
  --------- ----------- -------- -------- -------------- ----------- ----------------
  FI1.30    0           802501   803001   5,000,000.00   FI1FI30.1   FI1FI30.1

  FI1.31    0           803001   803501   200,000.00     FI1FI31.1   FI1FI31.1

  FI1.32    0           803001   803501   3,500,000.00   FI1FI32.1   FI1FI32.1

  FI1.33    0           803001   803501   1,300,000.00   FI1FI33.1   FI1FI33.1

  FM1.8     0           803501   803001   500,000.00     FM1FI8.1    FI1FI32.1

  AL2.1     4050        806201   806801   25,000.00      AL2OT1.1    AL2OT1.1

  AL2.6     4050        806201   806801   75,000.00      AL2OT6.1    AL2OT6.1

  AL2.9     4050        806801   806201   100,000.00     AL2NC5.1    AL2NC5.1

  RO1.3     02-0100R    802501   802501   100,000.00     N/A         02-0100R-2002

  RO1.4     02-0100R    802501   802501   10,000.00      N/A         02-0100R-2002

  RO1.10    03-0100R    802501   802501   90,000.00      N/A         02-0100R-2002a

  AY7.2     03-0100DA   898001   899001   15,000.00      AY7NC2.1    AY7VI1.1

                                                                     

                                                                     
  -----------------------------------------------------------------------------------

For all cycles where the cycle reports are run, memorandum accounts will
be included on the following reports:

-   FACTS I Trial Balance

-   FACTS I Trial Balance Excel Output

-   FACTS II Trial Balance

-   FACTS II Trial Balance Excel Output

-   FACTS Transaction Register

-   FACTS Transaction Register Excel Output

-   Standard Trial Balance

-   Standard Trial Balance Excel Output.

For RO1.3 and RO1.10, we will use the same document number that JFMIP
provided (RO1AR3.1 and RO1AR11.1) to record the entries related to the
orders issued against the reimbursable agreements. 02-0100R-2002 and
02-0100R-2002a were used to record the reimbursable agreements for RO1.3
and RO1.10, respectively. The document crosswalk will be updated to
include the document number 02-0100R-2002a instead of 02-0100R-2003 and
this crosswalk will be provided to JFMIP.

For RO1.4 by referencing the reimbursable agreement, the system
automatically reversed the entries for 02-0100R-2002 for the amount of
the invoice. The document crosswalk will be updated to include document
number 02-0100R-2002.

## Process Variances

### Rejection of Obligation Without Vendor Number

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This request deals with requirements CFB-16 and CFB-19, which state:

-   Provide immediate, on-line notification to the user of erroneous
    transactions. Advise reason for error and provide the ability to
    enter corrections on-line. (CFB‑16)

-   Validate the fields for all accounting classification elements
    required to process the transaction prior to posting. For example,
    fields pertaining to TAS/TAFS, object class, vendor code,
    organization, and others. (CFB‑19)

The specific test [steps]{.mark} that are to be considered are:

-   [AV1.1]{.mark}

This test step requires the application to omit the vendor name and
code, attempt to record an obligation, and get an error message. Oracle
is able to save a purchase order without a vendor, but is unable to
approve the purchase order without the vendor.

#### B. Reason for Variance

Oracle's architecture allows purchase orders to be saved without a
vendor. Purchase orders cannot be approved without a vendor; therefore,
purchase orders cannot be posted or accounted for without a vendor name
and code.

#### C. Benefit to the Government

The Government will benefit with this functionality by prohibiting the
posting of purchase orders without a vendors and complying with Audit
guidelines and procedures for proper accounting and posting of
purchasing transactions.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

-   AV1.1---Omit vendor name and code but attempt to record obligation
    of \$7,810 for the purchase of office furniture for Government wide
    Policy Bureau staff (org 12000). Receive edit error that obligation
    is missing a vendor number and demonstrate how the entry is
    prevented. Abandon the transaction, i.e., do not save it.

Oracle will save the purchase order without the vendor for the purchase
of office furniture for Government wide Policy Bureau staff. Then, the
purchase order will be submitted for approval without the vendor name or
code. The system will provide an error message that it cannot be
approved without a vendor name.

### Editing for Duplicate Invoice Number and Prior Year Adjustment

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance is associated with test step: AO1.2. Receive \$1537
invoice for prior year obligation where invoice is greater than
obligation. Attempt match, receive warning for duplicate invoice and
warning for "prior year---upward adjustment", and suspend transaction
for approval by user with appropriate authority.

The test step covers three primary areas: duplicate invoices, prior year
warnings, and transaction suspension. Oracle Payables does not allow a
duplicate invoice number by vendor. In this case, the system validation
is performed online preventing the user from further processing (this
validation also is provided for interfaced invoices). If the user cannot
enter and save the transaction, Oracle Payables will not proceed to the
next steps, which are, provide the prior year warning and suspend the
transaction. To comply with the script, we suggest entering a "dummy" or
"temporary" unique invoice number so that we could demonstrate the prior
year warning and transaction suspension. We intend to demonstrate the
prior year warning at the time of approval of the invoice as opposed to
the time of matching the document. The warning will also indicate the
transaction is for an expired fund in accordance with CFB-13. The
suspension capability will be demonstrated and is secured by
responsibility (i.e., user "role") and/or specific user since the
assumption for this test is that the Payment Clerk User does not have
supervisory authority to upward adjust "expired" funding.

#### B. Reason for Variance

Oracle Payables does not allow a duplicate invoice number by vendor. The
user cannot go past this point of data entry until the invoice number is
valid. To comply with the script, we suggest entering a "dummy" or
"temporary" unique invoice number so that we could demonstrate the prior
year warning and transaction suspension.

#### C. Benefit to the Government

The Government benefits from this approach in the following three
ways: 1) the front-end editing eliminates having to go back to
previously entered fields for correction, 2) it provides for a more
direct data-entry approach, and 3) it also prevents duplicate payments
of the same invoice.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

The document number will be entered per the script and Oracle will
demonstrate that an error message is received at the time of entering
the duplicate invoice number. Oracle will change the document number to
have an appended number to make the invoice number unique and proceed
entering the remainder of the invoice. Oracle will demonstrate that an
error message is received for the upward adjustment to an expired fund
at the time the invoice is submitted for approval at which time, the
invoice will be placed in suspense.

### Imprest Fund Replenishment

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This request deals with requirement PMB-19, which states:

-   Record obligations, expenses, assets, etc., associated with payments
    made through use of Imprest funds, third-party drafts, and
    Government credit cards. Establish payables to replenish the Imprest
    fund. (PMB‑19)

The specific test steps that are to be considered are:

-   PE21.3

-   PE21.4.

These test steps require the submission of a payment to replenish the
imprest fund and confirm the payment. Oracle will combine these two test
steps into one.

#### B. Reason for Variance

Since this payment has already been paid outside the financial systems,
Oracle will record the payment and confirmation as one step.

#### C. Benefit to the Government

The Government will be able to record payments from outside the
financial system.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

-   PE21.3---Record submission of SF-1166 payment schedule to Treasury
    for replenishment of the Imprest Fund.

    Oracle will combine this test step with PE21.4 and create a Manual
    Payment in the application in order to record the payment and the
    confirmation.

-   PE21.4---Record confirmation of SF-1166 payment that replenishes the
    Imprest Fund.

    Oracle will combine this test step with PE21.3 and create a Manual
    Payment in the application in order to record the payment and the
    confirmation.

### Re-Use of Same Invoice Number for Utility Payments

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This request deals with requirement PMC-20, which states:

-   Generate multiple payments using the same invoice number, to
    accommodate utility and telecommunication companies' use of an
    account number as a recurring invoice number. (PMC-20)

The specific test steps that are to be considered are:

-   PE11.1

-   PE11.3

-   PE11.5

-   PE12.1

-   PE12.2

-   PE12.4.

These test steps record recurring invoices for utility/telecommunication
companies. Oracle will use the same invoice number for each installment
payment and appends an additional, sequential number at the end of the
invoice number.

Oracle will provide a detailed crosswalk at the initial two-day
interview with JFMIP detailing JFMIP's document numbers and Oracle's
document numbers used in the test.

#### B. Reason for Variance

Oracle's architecture does not allow for duplicate invoice numbers.
Therefore, in the case of recurring invoices, the system will append an
extra identifier in the invoice number field in order to make the number
unique. For example, if the invoice number is 12345 for the recurring
obligation, it will be recorded in the system as 12345-01 for the first
installment, 12345-02 for the second installment, etc.

#### C. Benefit to the Government

This functionality benefits the Government because the system prevents
the entry of duplicate invoices. Without this restriction there is a
potential of paying the same invoice multiple times. For recurring
invoices, the Government does not have to enter different invoice
numbers, the system just adds an extra identifier to the original
invoice number. Therefore, a recurring invoice is easily tracked and can
be easily identified in the reports.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

-   PE11.1 Establish recurring lease agreement with GSA for fiscal
    year 2002. Funds are to be obligated/expended monthly at the
    beginning of each month. Obligations are set up on a recurring
    bases. There will be nine installments of \$3,200 each, charged as
    follows: \$3000 to Fund 0100DA, org 11000, BOC 2310; \$200 to Fund
    0100DA, org 13210, BOC 2310, Project FS01. IPAC payments are paid to
    GSA on the 15th of the month (contract number GSA-RNT-FY02).
    Document Number: PE11OT0

-   PE11.3 System generates first installment of recurring lease
    agreement transactions (established under document number PE11OT0,
    contract number GSA-RNT-FY02). Document Number: PE11AE1.

-   PE11.5 System generates second installment of recurring transactions
    established in PE11OT0. Document Number: PE11AE1

-   PE12.1 Establish terms and conditions for recurring utility expense
    (contract #RPC-UTIL-FY02). Document Number: PE12OT0

-   PE12.2 System generates first installment of recurring obligation
    (contract number RPC-UTIL-FY02, document number PE12OT0). Document
    Number: PE12OB1.

-   PE12.4 System generates second installment of recurring obligation
    (against contract RPC-UTIL-FY02, document number PE12OT0). Document
    Number: PE12OB2

    Oracle will add and extra identifier to the original invoice number
    for the document numbers for recurring invoices.

### Addition and Deactivation of an Accounting Classification Code Structure Element

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance applies to the following two Test Scripts:

[AC1.1, Cycle 11, Page 5]{.underline}

Add a new accounting classification element named "Spending Region" and
designate an effective date of 01/01/2003. The valid values are defined
in SA1.50 and can be derived from the "state" maintained in the "remit
to" address for the applicable vendor. The element is not required for
employee payroll or travel payments, but is required for all other
transactions involving obligations (i.e. obligations, obligation
adjustments, accrued expenditures, confirmations, etc.).

[AC2.9, Cycle 19, Page 8]{.underline}

Manually deactivate the spending region accounting classification
element so it is no longer a required field.

Test scripts AC1.1 and AC2.9 require the addition and deactivation of an
accounting classification code structure element.

The JFMIP Scripts dated 12/10/02 require the addition and disabling of
accounting classification structure (ACCS) elements. Oracle Applications
meet the requirements above with an alternative approach. Oracle's
Accounting Flexfield (i.e., ACCS) allows agencies to define up to 30
data elements (or segments), each 25 characters in length. Typically,
agencies do not require all 30 segments. At implementation, Oracle
suggests that agencies define an ACCS that is two or three segments
longer than required. For example, an agency may require five segments
but define eight segments. The additional segments provide for future
expansion without the high cost of reprogramming or changing source
code. For scenario AC1.1, we will store spending region table values in
a "future" segment of the ACCS. Each spending region value will carry a
beginning date of 01-JAN-2003. Transactions occurring before 01-JAN-2003
will automatically default a value "00" indicating the segment is
"Non-Applicable". Transactions occurring after scenario AC2.9, when the
segment is "disabled" will carry a default value of "00" once again
indicating that the segment is "Non-Applicable". Oracle employs this
methodology because all values in the ACCS are required. However, users
will not have to enter a value in the spending region at times when only
the default value is valid.

This processing of scenarios AC1.1 and AC2.9 will not change. For AC1.1,
Oracle will demonstrate the "future" segment and associated spending
region values. For AC2.9, Oracle will disable the spending region values
except for the default value "00".

#### B. Reason for Variance

The Accounting Flexfield provides agencies the flexibility to meet their
unique internal and external reporting requirements. To ensure accuracy,
the segments of the Accounting Flexfield are required on every
transaction having a financial impact. This functionality cannot be
changed without a heavy investment since it has far-reaching effects
across many Oracle Applications.

#### C. Benefit to the Government

The Accounting Flexfield (ACCS) is one of the most powerful tools in
Oracle Applications. Agencies determine, with configuration, the number
of ACCS elements required for both internal and external reporting.
Providing "future" segments allows agencies future expansion without
programming or changes to the source code. Additionally, the Accounting
Flexfield is completely upgradeable lowering the total cost of
ownership. Further, requiring a value for every segment of the ACCS on
every transaction ensures accurate online inquiry and reporting across
all modules because the data is consistent. In cases where a segment is
not required, the system will simply default a value of "0" or "NA" to
designate it as "Not Applicable" or "Default".

#### [D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)]{.mark} 

### Alternate Document Numbers for Reimbursable Orders

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance request applies to the following Test Scripts:

[RO1.3, Cycle 3, Page 54]{.underline}

Record an order without an advance.

[RO2.3, Cycle 4, Page 73]{.underline}

Record an order with an advance.

[RO3.3, Cycle 4, Page 75]{.underline}

Attempt to record an order without an advance. Demonstrate that the
entry rejects/provides a warning because the trading partner is
non-Federal.

[RO3.4, Cycle 4, Page 77]{.underline}

Attempt to record an order without an advance. Demonstrate that the
entry rejects/provides a warning because the trading partner is
non-Federal.

Oracle will record the reimbursable orders in the Oracle Order Entry
module. This variance request is for an alternative document numbering
scheme. The Oracle Order Entry module requires automatic, sequential
document numbering for orders interfaced to Oracle Accounts Receivable.
This option cannot be changed. Changing this functionality would pose a
significant cost burden to Oracle since the product was originally
architected that way. Oracle, therefore, requests a document numbering
variance.

Oracle will provide a detailed document number crosswalk at the initial
interview session on February 10.

#### B. Reason for Variance

The Oracle Order Entry module requires automatic, sequential document
numbering for orders interfaced to Oracle Accounts Receivable and cannot
easily be changed without significant re-development.

Oracle will provide a detailed document number crosswalk at the initial
interview session on February 10.

#### C. Benefit to the Government

Oracle provides functionality within Oracle Order Entry to account for
and execute reimbursable orders. However, orders must generate an
automatic, sequential document number for interface to Oracle
Receivables. If needed, users may use other seeded fields within Order
Entry to capture document numbers. Users may also define Descriptive
Flexfields to capture additional document numbers within Order Entry.
Descriptive Flexfields allow authorized users to add fields without
programming or customization and are automatically upgradeable release
to release. Although sequential numbering is required, users are still
able to capture document numbers using other fields and functionality
within the Oracle Applications.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

[RO1.3, Cycle 3, Page 54]{.underline}

Record an order without an advance.

Oracle will record the reimbursable orders in the Oracle Order Entry
module with an alternative document numbering scheme. Oracle will
provide a detailed document number crosswalk at the initial interview
session on February 10.

[RO2.3, Cycle 4, Page 73]{.underline}

Record an order with an advance.

Oracle will record the reimbursable orders in the Oracle Order Entry
module with an alternative document numbering scheme. Oracle will
provide a detailed document number crosswalk at the initial interview
session on February 10.

[RO3.3, Cycle 4, Page 75]{.underline}

Attempt to record an order without an advance. Demonstrate that the
entry rejects/provides a warning because the trading partner is
non-Federal.

Oracle will record the reimbursable orders in the Oracle Order Entry
module with an alternative document numbering scheme. Oracle will
provide a detailed document number crosswalk at the initial interview
session on February 10.

[RO3.4, Cycle 4, Page 77]{.underline}

Attempt to record an order without an advance. Demonstrate that the
entry rejects/provides a warning because the trading partner is
non-Federal.

Oracle will record the reimbursable orders in the Oracle Order Entry
module with an alternative document numbering scheme. Oracle will
provide a detailed document number crosswalk at the initial interview
session on February 10.

### Unfunded Projects

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance request applies to the following Test Scripts:

[PE23.1, Cycle 10, Page 8]{.underline}

Establish new project code for construction.

[PE23.2, Cycle 10, Page 9]{.underline}

Record obligation for construction contract with Carlton Corporation.

[PE23.3, Cycle 10, Page 12]{.underline}

Record advance made outside the system.

[PE23.4, Cycle 10, Page 15]{.underline}

Upon receipt of notice that excavation is complete, liquidate the
advance for \$6,375 and accrue \$2,125 for the unadvanced portion of the
obligation.

[PE23.5, Cycle 10, Page 18]{.underline}

Upon receipt of notice that construction tasks are complete, liquidate
the remaining advance for \$13,500 and accrue the balance of the
undelivered order for \$4,500.

[PE23.6, Cycle 10, Page 21]{.underline}

Upon receipt of approval to release contract hold-back, record payment
of balance of construction obligation. Payment was made outside the
system.

[PE23.7, Cycle 10, Page 23]{.underline}

Run query of all transactions associated with Construction Project CN01.

[PE24.1, Cycle 10, Page 24]{.underline}

Record an obligation which exceeds the funds available to the
Congressional Exchange Program. Demonstrate warning message and
override.

The JFMIP Test Scripts above relate to the establishment of a new,
unfunded project, CN01 (construction project). The scripts also provide
a separate and distinct "unfunded project" data element within the
accounting classification code structure. Oracle proposes an alternative
approach where both unfunded and funded projects are stored within the
same data element referred to as "Project" in the Test Scripts. During
test execution, Oracle will establish and record CN01 within the Project
segment for the test scenarios indicated above. Oracle General Ledger
will seamlessly differentiate between funded and unfunded projects using
funds control configuration. Specifically, unfunded projects will carry
only advisory or no funds control while funded projects will carry
absolute control. This is achieved without the need for an additional
data element. The description of the project values will indicate
whether it is funded or unfunded.

#### B. Reason for Variance

Oracle will take advantage of the functionality of the Accounting
Flexfield. With Oracle General Ledger, there is no need to add data
elements for the reasons indicated in the JFMIP Test Scripts.
Specifically, funds control, reporting, security, audit trail and
reconciliation are easily achieved without the need for an additional
segment to capture unfunded project.

#### C. Benefit to the Government

The Accounting Flexfield (ACCS) is one of the most powerful tools in
Oracle Applications. Agencies determine, with configuration, the number
of ACCS elements required for both internal and external reporting up to
30 segments, each 25 characters. Agencies may choose to include both
funded project and unfunded project segments. However, since these
elements really represent types of projects, Oracle suggests one
segment. This approach streamlines report configuration, online inquiry,
and technical maintenance (i.e., fewer ACCS combinations due to fewer
data elements) without loss of functionality including funds control,
reporting, security, audit trail and reconciliation.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

[PE23.1, Cycle 10, Page 8]{.underline}

Establish new project code for construction.

Oracle will establish and record CN01 within the Project segment.

[PE23.2, Cycle 10, Page 9]{.underline}

Record obligation for construction contract with Carlton Corporation.

Oracle will establish and record CN01 within the Project segment.

[PE23.3, Cycle 10, Page 12]{.underline}

Record advance made outside the system.

Oracle will establish and record CN01 within the Project segment.

[PE23.4, Cycle 10, Page 15]{.underline}

Upon receipt of notice that excavation is complete, liquidate the
advance for \$6,375 and accrue \$2,125 for the unadvanced portion of the
obligation.

Oracle will establish and record CN01 within the Project segment.

[PE23.5, Cycle 10, Page 18]{.underline}

Upon receipt of notice that construction tasks are complete, liquidate
the remaining advance for \$13,500 and accrue the balance of the
undelivered order for \$4,500.

Oracle will establish and record CN01 within the Project segment.

[PE23.6, Cycle 10, Page 21]{.underline}

Upon receipt of approval to release contract hold-back, record payment
of balance of construction obligation. Payment was made outside the
system.

Oracle will establish and record CN01 within the Project segment.

[PE23.7, Cycle 10, Page 23]{.underline}

Run query of all transactions associated with Construction Project CN01.

Oracle will establish and record CN01 within the Project segment.

[PE24.1, Cycle 10, Page 24]{.underline}

Record an obligation which exceeds the funds available to the
Congressional Exchange Program. Demonstrate warning message and
override.

Oracle will establish and record CN01 within the Project segment.

### Cost Allocations

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance applies to the following three Test Scripts:

[CM2.1, Cycle 7, Page 54]{.underline}

Perform mid-year cost allocations (accounting periods 0201---0206) for
full costing of organizational units, projects, and GPRA goals
(activities).

[CM3.1, Cycle 14, Page 6]{.underline}

Perform mid-year cost allocations (accounting periods 0207---0213) for
full costing of organizational units, projects, and GPRA goals
(activities).

[CM3.7, Cycle 14, Page 12]{.underline}

Reallocate FY 2002 costs and revenues to GPRA cost objects (prior fiscal
year).

Oracle proposes the following approach to recording the financial impact
of the cost allocations indicated above. The allocations will be
segregated as follows:

[Allocations In]{.underline}

660001: Allocation In---Table E1

660003: Allocation In---Table E2

660004: Allocation In---Table E3 and E4

[Allocations Out]{.underline}

660002: Allocation Out

660005: Allocation Out---E2 Project

For example, the allocations in Table E1 will debit the 660001 account
and credit the 660002 account at the lowest level of the accounting
classification code structure. If the amount allocated is a credit, then
the debits and credits will reverse. The allocations in Tables E2, E3
and E4 will follow the same logic except that a different offset account
(660005) will be used for the project allocations in Table E2.

#### B. Reason for Variance

In Oracle, cost allocations are designed to generate a general ledger
update. This facilitates an audit trail of the cost allocation process
and provides for reporting that is in part based on cost allocations
directly from the general ledger.

#### C. Benefit to the Government

Posting allocations to agency defined accounts (i.e. memo accounts) in
performing cost allocations allows agencies to segregate allocated costs
from direct operations costs. This allows agencies to better understand
and report the impact of allocations at the lowest level of the
accounting classification structure while maintaining the integrity of
externally reported results. In short, agencies can easily track costs
for internal *and* external reporting utilizing the same structure.

#### [D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)]{.mark} 

### Record Payments Made Outside of the System

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This variance is associated with test steps that attempt to record a
payment made outside the core system.

Oracle's architecture requires a payment to be matched to an invoice
before payment is made. For this reason, when recording a payment made
outside the system, an invoice will be recorded for payment/advance and
the disbursement transaction prior to recording the actual payment.

-   Accounting for invoice transactions debits the expense/asset and
    credits the liability account. For example:

  -----------------------------------------------------------------------
  Expense                              Asset
  ------------------------------------ ----------------------------------
  DR 610001                            DR145001

  CR 211001 (liability)                CR 211001 (liability)

                                       

                                       
  -----------------------------------------------------------------------

Transaction codes are also used to perform the budgetary and other
transaction accounting. Section E lists the transactions that are
impacted by this request.

-   Manual payments are entered to record the invoice as paid.

#### B. Reason for Variance

Oracle's architecture does not allow payments to be made without a
related invoice being recorded, as this flow supports a sound business
process for controlling payments and minimizing the potential for
fraudulent payments.

#### C. Benefit to the Government

The Government benefits from this approach because it provides greater
control over the accounting activities in the system and provides an
audit history.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

The following test steps are impacted by this request. The GL entries
have also been included as documented on the Oracle Document Number/SGL
Account Crosswalk.

+-------+-----------+----------+--------+----------+--------+--------+
| Test  | Oracle    |          |        | JFMIP    |        |        |
| Step  |           |          |        |          |        |        |
+=======+===========+==========+========+==========+========+========+
|       | Tr        | Debit\   | Credit | Tra      | Debit\ | Credit |
|       | ansaction | Accounts | Ac     | nsaction | Ac     | Ac     |
|       | Code      |          | counts | Code     | counts | counts |
+-------+-----------+----------+--------+----------+--------+--------+
| A     | B102/B134 | 461002   | 490201 | B102     | 610001 | 101001 |
| L2.12 |           |          |        |          | 461001 | 490201 |
|       |           | 610001   | 211001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 211001   | 212001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 212001   | 101001 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| A     | Inv (sys) | 610001   | 211001 | D106     | 465001 | 498101 |
| O10.1 |           |          |        |          | 610001 | 211001 |
|       | Ob-Rev    | 480101   | 461002 | B302     | 480101 | 490101 |
|       |           |          |        |          | 610001 | 211001 |
|       | Pay (sys) | 211001   | 101001 | B134     | 310701 | 570001 |
|       |           |          |        |          | 490101 | 490201 |
|       | B110DITc  | 490101   | 490201 | B110     | 211001 | 101001 |
|       |           |          |        |          |        |        |
|       | B302/B134 | 310701   | 570001 |          |        |        |
|       |           |          |        |          |        |        |
|       | PYA       | 461002   | 490101 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 465001   | 461002 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 490201   | 498101 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| AO2.1 | B107/B134 | 310701   | 570001 | B107     | 461001 | 490201 |
|       |           |          |        | B134     | 610001 | 101001 |
|       | Set up    | 460102   | 490201 |          | 310701 | 570001 |
|       |           |          |        |          |        |        |
|       |           | 610001   | 211001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 211001   | 101001 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| AO2.2 | Inv sys   | 610001   | 211001 | D126     | 465001 | 498201 |
|       |           |          |        | D134     | 610001 | 101001 |
|       | Pay Sys   | 211001   | 101001 |          | 310701 | 570001 |
|       |           |          |        |          |        |        |
|       | D126/B134 | 461002   | 490201 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 310701   | 570001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 465001   | 498201 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| AO3.3 | System    | 480101   | 461002 | B107     | 480101 | 490201 |
|       |           |          |        | B134     | 610001 | 101001 |
|       | B         | 610001   | 211001 | D120     | 310701 | 570001 |
|       | 404/B134a |          |        |          | 487101 | 465001 |
|       |           | 310701   | 570001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 461002   | 490201 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 487101   | 465001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 211001   | 101001 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| AO4.2 | B206;     | 480101   | 480201 | B206     | 480101 | 480201 |
|       |           |          |        |          | 141001 | 101001 |
|       | B308adv   | 212001   | 101001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 211001   | 212001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 141001   | 211001 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| AO7.1 | System    | 610001   | 211001 | B107     | 461001 | 490201 |
|       |           |          |        | B134     | 610001 | 101001 |
|       | B306/B134 | 461002   | 490101 |          | 310701 | 570001 |
|       |           |          |        |          |        |        |
|       | B110e     | 310701   | 570001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 211001   | 101001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 490101   | 490201 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| AO8.2 | System    | 145001   | 211001 | B206     | 480101 | 480201 |
|       |           |          |        |          | 145001 | 101001 |
|       | B206a     | 480101   | 480201 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 211001   | 101001 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| AO8.3 | System    | 145001   | 211001 | D122     | 465001 | 488201 |
|       |           |          |        |          | 145001 | 101001 |
|       | D122a     | 211001   | 101001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 465001   | 488201 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| AO9.2 | System    | 610001   | 211001 | D126     | 465001 | 498201 |
|       |           |          |        | D134     | 610001 | 101001 |
|       | D126/B134 | 211001   | 101001 |          | 310701 | 570001 |
|       |           |          |        |          |        |        |
|       |           | 310701   | 570001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 465001   | 498201 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| P     | B206a     | 480101   | 480201 | B206     | 480101 | 480201 |
| E16.2 |           |          |        |          | 145001 | 101001 |
|       |           | 145001   | 211001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 211001   | 101001 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
| P     | System    | 141001   | 211001 | B206     | 480101 | 480201 |
| E23.3 |           |          |        |          | 141001 | 101001 |
|       | B206a     | 211001   | 101001 |          |        |        |
|       |           |          |        |          |        |        |
|       |           | 480101   | 480201 |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
|       |           |          |        |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+
|       |           |          |        |          |        |        |
+-------+-----------+----------+--------+----------+--------+--------+

###  Invoices and Receipts Associated with Constructive Acceptance

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

For test PE15.4, an invoice is received and the step states the invoice
is proper and approved for payment but the acceptance of goods is
pending. The expected results indicate a payment due date is calculated
by the system. Oracle's system does not warehouse this invoice for
payment or calculate final payment date as all matching requirements
have not yet been met and therefore the invoice cannot yet be approved
for payment.

#### B. Reason for Variance

Oracle ensures compliance with 2/3/4-way matching by placing system
holds on a document until all matching criteria have been met. The due
date calculation process will not calculate a final payment date for the
invoice until all the criteria has been met and the invoice has been
properly validated and approved.

#### C. Benefit to the Government

System matching holds ensure that an invoice will not be released and
warehoused for payment until all required actions have occurred. This
ensures compliance with quality and inspection standards, as well as
improved cash forecasting as planned payment reports will only include
documents that have been properly approved and validated. Once all
criteria have been met, holds are automatically released by the system,
and the due date calculation program will schedule the invoice for
payment in compliance with prompt pay requirements.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

In test step PE15.4, the due date will not be shown per JFMIP's expected
results. When the matching criteria is met, the due date will be derived
as expected.

### Obligation with Prior Commitment Where One Commitment Becomes Multiple Obligations

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This process variance addresses the process for generating obligations
from commitments.

JFMIP requirement FME-35 states: Automatically link transactions in the
spending chain, and bring forward accounting and non-financial
information from one document to another, when the previously accepted
document is referenced (e.g., commitment to obligation, obligation to
receiving report). (FME‑36)

This requirement implies that the process is backward referential in
that when starting a new document in the chain (except commitments), a
reference is made *back* to the previous document in the chain and the
information is pulled forward.

Oracle's system follows this principle, except in the area of
commitments to obligations. In this case, the starting point is the
commitment document and information is *pushed* forward to the
obligating document(s). The information pushed forward covers all the
same types of accounting and non-financial information that is pulled
forward when creating an invoice from an obligation.

The function that is used to create obligations from commitments is
called "Autocreate". The Autocreate process allows you to select the
pool of commitments you wish to obligate against, make modifications if
necessary, and then automatically create one or more obligations.

#### B. Reason for Variance

This purpose of this process variance is to document the *push forward*
approach of accounting information from commitments to obligations.

#### C. Benefit to the Government

This approach to linking the commitment document to the obligation
document is most beneficial to those agencies that desire consolidated
purchasing. For example, an agency could have thousands of requisitions
for different items (i.e., computers) from different requestors in
different locations. The Autocreate feature previously described allows
buyers to select multiple commitments and create one or many obligations
allowing agencies to take full advantage of quantity discounts while
leveraging the receiving capability of Oracle Federal Purchasing. For
example, agencies can schedule delivery of these computers (multiple
shipments) to different locations as part of the purchase order detail.
This purchase order is simply referenced as computers are received by
the agency.

#### [D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)]{.mark}

## Reporting Variances

### IPAC Disbursements

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This request deals with requirement PMB-16, which states:

-   Automatically generate transactions to reflect disbursement activity
    initiated by other agencies and recorded in Central agency
    electronic systems (such as OPAC/IPAC). Capture related information
    required by the Central agency system for each transaction (e.g.,
    purchase order number, reimbursable agreement number, ALC).
    (PMC-27).

The specific test steps that are to be considered are:

-   PE11.7

-   PE11.8.

The assumption for PE11.7 states: This transaction is suspended due to
the lack of the accounting classification information.

Oracle will process the disbursement transaction from the IPAC file via
the Invoice API. In order to process the invoice, Oracle's prerequisite
is that the purchase order number is provided on the IPAC transaction
which is a valid data element for the IPAC file format. The accounting
classification is not a valid data element for the IPAC file format.
Based on the purchase order, the API process will automatically retrieve
the accounting classification from the purchase order line and will be
included on the invoice when it is imported through the API, thus it
would not fail and be suspended.

#### B. Reason for Variance

Since the IPAC file format does not include accounting classification as
a data element, Oracle has built the IPAC interface process for
disbursements where the purchase order number is required. It is the
agency's responsibility to communicate the correct purchase order number
to the billing agency for the IPAC transaction. Oracle's IPAC
Disbursement process validates the purchase order number; if the
purchase number is not valid, the process will produce a report which
lists invalid purchase orders or line numbers.

#### C. Benefit to the Government

This approach is more favorable to the Government because it allows for
a more automated approach when processing the disbursement files than
having to research the number of items which may fail due to a lack of
accounting classification. By matching on the purchase order, it
prevents the Government from finding the PO# and then manually entering
the correct accounting classification. With Oracle's approach, with the
correct purchase order, invoices can automatically be created with no
intervention by the user.

Furthermore, this approach provides for tighter edits to prevent
duplicate invoices or files being entered in the system if the purchase
order has already been matched.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

-   PE11.7 Load and process an IPAC file that contains GSA's collection
    of ITSA's February 2002 rental payment under contract number
    GSA-RNT-FY02. Record the disbursement. Assumptions: 1-This
    transaction is suspended due to the lack of accounting
    classification information. 2-See file provided separately for IPAC
    file specifics. A standard "agency specific" transaction should be
    used for all IPAC activity for the receiving agency. The debits and
    credits associated with this suspended transaction represent that
    transaction for the ITSA.

> The IPAC file will not be suspended since all of the invoices contain
> the accounting classification information. If there is a transaction
> without the accounting classification, that specific transaction will
> not be posted to the application.

-   PE11.8 Access the suspended IPAC disbursement transaction, add the
    accounting classification information, and post the disbursement.

> Since there are no suspended transactions (all the transactions will
> contain the accounting classification), Oracle will post the
> disbursements with the accounting classification.

### FACTS Validation Edits

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This request deals with requirement RB-04, which states:

-   Perform the validation edits specified by Treasury to ensure the
    accuracy of data transmitted for FACTS I and FACTS II reporting, (at
    least) on a monthly basis. See the FACTS II Client Bulk Users Guide
    for examples. (RB‑04)

The specific test steps that are to be considered are:

-   RM1.6

-   G23.1

-   G23.2.

Oracle associates authority type "S" to an SGL account. A business rule
is created to disallow the combination of "S" authority type account
with fund 8105. If the combination of "S" authority type with fund 8105
is entered, then an error is received. This on-line validation forces
the transaction to be entered correctly during data entry. Therefore,
these test steps will be performed differently by Oracle.

#### B. Reason for Variance

The current architecture within Oracle U.S. Federal Financials will
allow the setup of the validation rule that disallows the combination of
"S" authority type account with fund 8105.

#### C. Benefit to the Government

Oracle's system has an additional edit ensuring that the correct
authority type is used with the correct SGL account for the FACTS II
process prior to running the report. Once this validation is
established, the Government will have assurance that "Authority Type" is
associated to the correct SGL account and will not have to perform this
type of corrections after the FACTS II Year End Validation Report is
run.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

The following are the revisions to the test steps:

-   RM1.6---Move the funds collected from to the Trust Fund expenditure
    account. Assumption states: Use of value "S" for FACTS II Attribute
    Authority Type is intentional.

> Oracle will attempt to enter authority type of "S". An error message
> is received and authority type of "P" must be entered.

-   G23.1---Run the FACTS II Year End Validation reports

> The transaction from test step RM1.6 will not be included as an
> exception.

-   G23.2---Make the following corrections as a result of running the
    FACTS II year end validation report. Reclassify Authority type value
    from RM1.6 from "S" to "P".

> Oracle will not perform this test step.

### SF-133 Reports

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This request deals with requirement RB-01, which states:

-   Produce a monthly SF-133, Report on Budget Execution and Budgetary
    Resources, in the hard copy and electronic formats required by OMB.
    (RB‑03)

The specific test steps that are to be considered are:

-   RQ2.3

-   RA1.1.

The SF133 format in JFMIP's expected results is different than the
format provided in OMB A-11. In OMB's documentation, Part 4 Section 130,
Exhibit 130A has examples of the SF133. The differences are as follows:

-   In the expected results for the annual treasury symbols, there is an
    expired subtotal, an unexpired subtotal and a grand total line item.
    In OMB's form there are no subtotals.

-   For no-year treasury symbols, the expected results have the
    following columns: X, Unexpired Total, and Grand Total. In OMB's
    samples it only contains column X.

-   For multi-year treasury symbols, the expected results have two
    different treasury symbols with the same treasury account code
    printed on the same SF133 broken out as columns 0102, 0203,
    unexpired total and grand total. OMB's only example for multi-year
    only has one column for unexpired.

Oracle will produce the monthly SF133 per the guidance provided in OMB
A-11.

#### B. Reason for Variance

Oracle is producing the SF133 format required by OMB A-11.

#### C. Benefit to the Government

Oracle is producing the SF133 format required by OMB A-11.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

-   RQ2.3 Produce an SF-133 in both electronic and hard copy formats,
    for the quarter ended March 31.

-   RA1.1---Produce a hard copy SF-133 in the format specified by OMB.

The report, for both test cases, will not look like JFMIP's expect
results report, but will reflect those elements required by OMB A-11.

### Document Status

#### A. Description of Test Execution Variance

Specify the detailed ledger postings, alternative processing associated
with each affected test step or alternate document numbering system.

This request deals with the Document Status excel output listed in the
Test Plan published in January 2003. This is an excel output file that
will aid JFMIP with their reconciliation efforts. This excel output file
was not part of the requirements document published in November 2001. In
addition, in the December 9 meeting with Mark Johnson and Terrance
Wampler (Oracle), Karen Alderman stated that the excel output files are
not required, per se, but would be very helpful to JFMIP in their
reconciliation process (after the on-site period).

Oracle will not provide the Document Status excel output.

#### B. Reason for Variance

Oracle will not produce the Document Status excel output since it will
require significant development resources to produce such file. The
final data elements for this excel file were provided to Oracle in
November 2002. November 2002 was too late for Oracle to start
development work, go through the whole development process in building a
new file output with new data elements, and have it ready for our own
internal testing by January 2003.

We, at Oracle, understand the impact of not having a Document Status
excel output in the reconciliation efforts and would like to facilitate
these efforts by providing additional "out of the box" hardcopy reports
produced by our FMS. We will be happy to provide you with a list of our
reports and you can advise us which ones you would like for your
reconciliation efforts. Because you will have the other excel outputs
(Trial Balances and Transaction Register) and our hardcopy reports, we
expect that the reconciliation time frame is not impacted significantly.

#### C. Benefit to the Government

The excel output reports were built to benefit JFMIP in their
reconciliation efforts for the JFMIP test. Oracle will not be providing
the customized excel outputs to our clients.

#### D. Resulting Changes to the Test Materials (list individually by test step number, report name, or other reference)

Include changes to the setup data, test scripts, expected results,
system queries, and reports. Attach supporting documentation as needed.

[Cycle Reports]{.underline}

Oracle will not provide a Document Status excel output file as part of
the cycle reports.

###  {#section-1 .unnumbered}