closing in peoplesoft – finance 8.4 debbie brothwell, cal poly

Closing in PeopleSoft – Finance 8.4

Debbie Brothwell, Cal Poly

2004-2005 Year End Training

2

Summary

• Overview of Ledgers

• Data Review of Actuals & Encumbrances

• Obligation Accruals– Business Rules– Automated Process – GL-15– Manual Process

• Actual/Encumbrance Journals


3

Summary

• Year End Close Process– Close to Multiple Fund Equity– Roll Forward Revenue and Expense for

Project-to-Date Reporting– PO Rollover

• Required FNAT Key Maintenance• Review Helpful Queries & Allocations

– Abnormal Balances– Negative Expenditures– Closing Revolving Fund– Rolling Forward Budget


4

CSU Data Structure


5

Ledger Data Review

• Ledger KK Variance Report– Compares the actuals ledger in the

LEDGER to the KK_DTL_ACT ledger in LEDGER_KK

– Should be clean– Only an issue if your dept reports

come from here


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Ledger Variance Report


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Ledger Data Review

• CSU to Campus Validation Report– Compares Campus Business Unit to

CSU Business Unit– For Ledger KK_DTL_ENC helps

review encumbrance data


8

Ledger Data Review

• Sam 99 Reconciled all funds (including budgets)

• Sam 7 in the Campus Business Unit MUST = Sam 7 in the CSU Business Unit

• Sam 6 in the Campus Business Unit MUST = Sam 6 in the CSU Business Unit


9

Obligations Accruals• Business Rules for year end required reporting

– State–GL Account 3010 – Accounts Payable for ALL funds will include Posted Vouchers, Obligations AND Encumbrances

– FIRMS record type 10 for object code 201001 will include Posted Vouchers and Obligations…NOT Encumbrances

– FIRMS record type 15 for object code 201001 will be Year to date encumbrances (Accounting Period 1-12)

– FIRMS record type 16 for object code 201001 will be Project to date encumbrances (Accounting Period 0)

– Campuses on Finance 8.4 NO LONGER use FIRMS object codes 403001 or 403002


10

Changes to Accounts Payable

• SAM99 now includes encumbrances


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SAM99 Year End File to SCO

• The total of GL Amounts plus encumbrance offset will be sent as the total for AP-3010 in the SCO year end file– The campus no longer has to liquidate

encumbrance and create an actual.– The campus no longer has to record and

entry in 403001 and 403002• You may have upgraded data with 403002 –

map it to AP 201001• The sam99 will sum the encumbrance activity

and report is in the memo field


12

Year end Obligations• Goods and services received but not

yet invoiced (no voucher posted) must still be “obligated”

• For activity received within the Finance 8.4 application and automated process will create the journals to liquidate the encumbrance portion and record the AP Accrual

• Manual journals will need to be done for items that cannot be identified by the automated process

– Utilities– Retention– etc


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CSUGL15 Overview

• Run Control


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CSUGL15 Overview

Journal ID: YEOBL####Journal Date: 06/30/YYY1

Report ID:CSUGL015Batch ID: ENCOBL2001

Report of PO amount to be liquidated for obligations

FSPGJGEN

Journal GeneratorCOBOL SQL Process

CSU_YEC_ACT_LN

Template:YECACTOBL

CSU_YEC_ENC_LN

Template:YECENCOBL

Year-End Encumbrance SQR Process

CSUGL015

Journal ID: YAOBL####

Reporting Journal Generation

PO Business Unit Document ID Document Line Number Document Sched Nuumbrer Document Distrib Line NumGL Chartfield ValuesSum by Monetary Amount

CSU_KK_PO_AC_VW

PO Business Unit PO Number PO Line Number PO Sched Number PO Distrib Line NumReceived Quantity

RECV_LN_DISTRIB VCHR_ACCTG_LINE

PO Business Unit PO Number PO Line Number PO Sched Number PO Distrib Line NumVouchered Quantity

PO_LINE_DISTRIB

PO Business Unit PO Number PO Line Number PO Sched Number PO Distrib Line NumPO Quantity

PO Buisness Unit PO NumberPO Type

PO_HDR

Report ID:CSUGL015Batch ID: ENCREM2001*

Report of PO amount to be liquidated for completed PO

Report ID:CSUGL015Batch ID: ACTOBL2001

Report of PO amount to be accrued for obligations

* CSUGL015.SQR will generate report for batch ID ENCREMYYYY if there are remaining encumbrances . If campus runs this process without cleaning up the remaining encumbrances , in final mode (Report Only Mode option unchecked), the system will generate the ENCREM transactions and insert into the CSU _YEC_ENC_LN table. However, these transactions are NOT to be process through Journal Generator .

Journal ID: YEOBL####Journal Date: 07/01/YYY2


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CSUGL15 Configuration• Accounting Entry Definitions

– Define the new records• CSU_YEC_ACT_LN• CSU_YEC_ENC_LN

• Journal Template– YECACTOBL– YECENCOBL

• Journal Source– OBL

• Journal Mask– YEOBL– YAOBL


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Manual Obligations of Encumbered Amounts

• Liquidate obligation portion of encumbrance– Effective June 30, 2005

• Encumbrance Journal to Ledger KK_DTL_ENC• Record the amount as an accounts payable accrual –

obligation– Effective June 30, 2005

• Actuals Journal to Ledger ACTUALS• Re-encumber the obligation

– Effective July 1, 2005• Encumbrance Journal to Ledger KK_DTL_ENC

• Reverse the Accounts Payable Accrual– Effective July 1, 2005

• Actuals Journal to Ledger Actuals


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• Manual Obligation of Encumbered Amounts require THREE journals– Journals to the actuals ledger can be set up as

reversing journals• This journal will record the Accounts Payable accrual AND

reverse it

Journals to the Actuals Ledger can be set up as reversing Journals.


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• Encumbrance Journals are required to liquidate the encumbrance June 30 and to re-encumber it July 1

Encumbrance Journals are processed with the Ledger Group ACTUALS so that they will be edited by Combo Edits and controlled by open and closed periods


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• Journals to Liquidate the encumbrance can NOT be set up as reversing.– However, the software will let you do it.


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• Summary– Three journals are required

• 1 reversing journals for the accounts payable accrual (June 30, 2005) and the reversing accrual (July 1, 2006)

• 2 encumbrance journals– One dated June 30 to liquidate the

obligation portion of the encumbrance – One dated July 1 to re-encumber the

obligation portion of the encumbrance• For the Encumbrance journal dated July 1, use

the copy journal with reversing sign functionality


21

Don’t forget

• DO NOT use 403001 or 403002• There is no such thing as a REVERSING

ENCUMBRANCE journal– You need to do two – One dated June 30 and one

dated July 1• Use the Commitment Control hyperlink on the journal

to do encumbrance journals to the ACTUALS ledger– Do NOT do journals to the KK_DTL_ENC ledger

• The offset to encumbrances MUST BE accounts payable – FIRMS Object Code 201001

Legal Closing Rules and Process


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• Trees

• Effective Dates

• Chartfield Value Sets

• Close Rules

• Close Request

Year End Close Components


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Road to CloseFund Trees Chartfield Value Sets

Closing Rules Closing Request

“PTD”


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Year End Close

• FUND Tree Set-Up & ChartField Value Sets– Multiple Retained Earnings– Revenue and Expense Roll-Forward

• Actual Ledger Closing Rules

• Closing Request


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Closing to Multiple Retained Earnings Accounts

• Legal closing requirements specify that revenues and expenses close to different Fund Equity Accounts based on SCO Fund


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Closing Rules• Actual Closing Rules

– Net Income/Retained Earnings


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Closing to Multiple Fund Equity Accounts

• Multiple Retained Earnings Set up– Legal closing requirements specify that

revenues and expenses close to different Fund Equity Accounts based on SCO Fund

– Legal Closing Rules require the use of ChartField Value Sets

– ChartField Value Sets allow for the use of Trees to specify detail ChartField Values included in the Set


29

Sample Fund Tree Used by the CVS

Multiple Retained EarningsFund Tree


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Setting up the Close Rules - Trees are used by CVS and CVS are used in the Close Rule

Fund TreeChartfield Value Sets

Closing Rules


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Effective Dates Matter

• Effective Dates– Chartfields

• Funds & Accounts

– Trees• Nodes and their related values

– Chartfield Value Sets• Chartfields & Trees

– Closing Rules• All the above


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ChartField Value SetsSample recommended CVS


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ChartField Value Sets

Recommended CVS


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Rolling Forward Revenue & Expense for Project to Date

Reporting • Revenue and Expense

– CSU uses period 0 in LEDGER to record “project-to-date” expenditure and revenue actual data for SAM99, FIRMS, and SAM6 reporting

• Not ALL Funds– PeopleSoft Actual Ledger closing process

allows for roll-forward of revenues and expenses to Period 0 of the next Fiscal Year based on specified ChartField Value Sets

– ChartField Value Sets must be used, no options


35

Closing Rules• Actual Closing Rules

– Roll Forward Options


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Sample Fund Tree for Roll Forward

Project to Date RollforwardFund Tree


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ChartField Value Sets


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Review Close Rules

• Four Tabs– Close Options– Net Income/Retained Earnings– Journal Options– Roll Forward Options


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Closing Rules

• Actual Closing Rules– Closing Options


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Closing Options Tab• Actual Closing Rules

– Closing Options– Year End Close Options


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Closing Options Tab

• Store P/L Reversal Entries

– Closing entries for all accounts are stored in period 999. This option enables you to store P/L offsets in period 999 also.

– If you select Store P/L Reversal Entries, the system inserts ledger rows for the entries made to period 999 to close revenue and expense accounts. You can access these amounts using the General Ledger inquiry pages.

– If this option is not selected, offsets are not stored in period 999.


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Net Income/Retained Earnings Tab

– Net Income/Retained Earnings

CVS


43

Journal Options Tab

Recommended “Mask”

Recommended unique “Source”

Option is not recommended

Source must exist in both CMP and CSU


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Roll Forward Options Tab


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Closing Request - Run Control

In-sync

Remember to close ALL Business Units


46

CSU Data Structure


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PO Rollover

• CSU PO Rollover– Because all external reporting must come from

the current fiscal year of the “ledgers”, the CSU needed to “roll forward” the total encumbrance amount as of June 30, to the current year. This mod sums encumbrance activity in LEDGER_KK by FY, AP 0-12 and Chartfields and inserts the total in period 0 of LEDGER_KK for “Project to Date” Encumbrance totals

– Project to date Encumbrances will be reported with a different FIRMS Record Type (16)


48

PO Rollover

• CMS Baseline requires that all external reporting come from the CURRENT FISCAL YEAR– There is no functionality within

PEOPLESOFT 8.4 to “roll forward” encumbrance balances to the new Year

– Therefore, a CSU MOD


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PO Rollover

• Encumbrances/Pre-Encumbrances only• Encumbrances are recorded in LEDGER_KK• Unlike LEDGER, LEDGER_KK does not

“Close” • There is no period 0 in LEDGER_KK –

PeopleSoft vanilla• CSU uses period 0 in LEDGER to record

“project-to-date” expenditure and revenue actual data for SAM99, FIRMS, and SAM6 reporting


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PO Rollover

• PO rollover sums the encumbrance activity in LEDGER_KK and “INSERTS” the total into LEDGER_KK Period 0– Reminder: For campuses using

CSUGL015 in 7.5, a journal reversing the amounts recorded for encumbrances in period 998 needs to be posted in period 998 in each fiscal year that 998 encumbrances were posted before PO Rollover is run or the amounts in period 0 will be doubled – upgrade issue


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PO Rollover• Run at fiscal year end only • Must be run as part of upgrade to establish

period 0 in LEDGER_KK for the current year• Can be re-run over and over for the “as of date”

on the job but only one time for previous years– Example: if PO Rollover is run as of 6/30/2003 the

first time, it will insert period 0 for each fiscal year in ledger KK. If it was re-run as of 6/30/2003, the amount in 2003 period 0 would be re-calculated, but the amounts in 2001, period 0, and 2002, period 0 would not

• Upgrade issue only


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PO Rollover

• FIRMS reporting in 8.4 will be different for encumbrances– Current year encumbrances will be record

type 15 = LEDGER_KK accounting periods 1-12

– Project to date encumbrances will be record type 16 = LEDGER_KK accounting period 0

• Established by PO Rollover• PO Rollover must be run in both the CMP and

CSU Business Units


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CSU Data Structure


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Prior to running PO Rollover

• There should be values in Accounting Period zero for the previous years you have data in PeopleSoft but NOT for the future fiscal year– For the year ending June 30, 2005,

prior to running PO rollover there should be NO data in accounting period zero, fiscal year 2005


55

Run Control

Enter the “PeopleSoft”

Fiscal Year being closed.


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Sample Query Results AFTER PO Rollover

Note: Fiscal Year 2005 rows were generated by PO

Rollover


57

Po Rollover Review• When run for the first time as part of the

upgrade, this job will retroactively go back to each fiscal year in the ledger and “roll forward” the encumbrances into the appropriate Fiscal Year.– Only the year ending on June 30 of the as

of date on the run control can be re-run• Run each year end AFTER receipt accrual

has been run for all appropriate business units (XXCMP and XXCSU)

• If for some reason the last fiscal year has to be re-opened and encumbrance adjustments made, PO Rollover could be re-run for that fiscal year only - Not for previous years


58

Reminder

• PeopleSoft Vanilla DOES NOT HAVE an accounting period of “0” in Ledger KK– CSU creates and accounting period in

LEDGER KK for encumbrance and pre-encumbrance only

– Used by CSU to store “project to date” encumbrance amounts for external reporting requirements to the State of California and the Chancellor’s Office FIRMS data base


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• Clearing balances of reverting funds– Budget entries to reflect SCO reversion of

Remaining Spending Authority (RSA)– Accounting entries to clear “Accruals”– Charge Orders/Cancellations to clear

Encumbrances (PO’s) and Pre-Encumbrances (Req’s)

– Fund ChartField Inactivation Effective on Reversion Date + 1

– Trees “trimming” to eliminate inactive ChartFields Effective on Reversion Date + 1

Reverting Funds Maintenance


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Reverting Funds Maintenance

• Clearing balances of reverting funds– What happens if a campus doesn’t

perform the necessary steps?• Accruals will be sent to the controller• Data will be submitted in FIRMS• SAM99 will have an out of balance

condition in July of the new year• BAD BAD BAD BAD BAD


61

FNAT Key Maintenance

• Enterprise Revenue Fund FNAT Keys– Fund Processing Types

• 2102 – Proprietary: Enterprise Revenue Only – Auxiliary

– Sample: DRF - Housing Revenue

• 2103 – Proprietary: Enterprise Revenue Only - Departmental

– Sample: Continuing Ed Fund Revenue

• Non-Appropriated Funds FNAT Keys– CSU Fund 020– Sample: Escheat


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FNAT Key Maintenance• Enterprise Revenue Fund FNAT keys

– Fund Processing Type 2102• Proprietary: Enterprise Revenue Only - Auxiliary Enterprise

Type 1: “Q”Type 2: “R”


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– Fund Processing Type 2103• Proprietary: Enterprise Revenue Only – Departmental


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FNAT Key Maintenance

• Enterprise Revenue Fund FNAT keys

• Each year the FNAT key assigned to the Revenue fund needs to be changed to the FNAT key for the new appropriation year

• Effective Date the change July 1 of the new year

• Updating the FNAT Keys will correct the duplication of the amounts on the SAM99


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FUG Year-End Training• Enterprise Revenue Fund FNAT keys


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Summary of Non-Approp FNAT Key Maintenance


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Helpful Tips, Tricks & Queries

• Queries – Abnormal Balance– Negative Expenditures

• Allocations– Automatically Close Revolving Fund– Roll Budgets forward to Next Year


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More Detailed Information Available

closing in peoplesoft – finance 8.4 debbie brothwell, cal poly

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