Closing in PeopleSoft – Finance 8.4

1. Closing in PeopleSoft – Finance 8.4 Debbie Brothwell, Cal Poly

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

6. Ledger Variance Report

7. 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

11. 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

13. CSUGL15 Overview • Run Control

14. CSUGL15 Overview

15. 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

16. 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

17. Manual Obligations of Encumbered Amounts • 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.

18. Manual Obligations of Encumbered Amounts • 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

19. Manual Obligations of Encumbered Amounts • Journals to Liquidate the encumbrance can NOT be set up as reversing. • However, the software will let you do it.

20. Manual Obligations of Encumbered Amounts • 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

22. Legal Closing Rules and Process

23. Year End Close Components • Trees • Effective Dates • Chartfield Value Sets • Close Rules • Close Request

24. Road to Close Fund Trees Chartfield Value Sets “PTD” Closing Request Closing Rules

25. Year End Close • FUND Tree Set-Up & ChartField Value Sets • Multiple Retained Earnings • Revenue and Expense Roll-Forward • Actual Ledger Closing Rules • Closing Request

26. Closing to Multiple Retained Earnings Accounts • Legal closing requirements specify that revenues and expenses close to different Fund Equity Accounts based on SCO Fund

27. Closing Rules • Actual Closing Rules • Net Income/Retained Earnings

28. 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 Earnings Fund Tree

30. Setting up the Close Rules - Trees are used by CVS and CVS are used in the Close Rule Chartfield Value Sets Fund Tree Closing Rules

31. Effective Dates Matter • Effective Dates • Chartfields • Funds & Accounts • Trees • Nodes and their related values • Chartfield Value Sets • Chartfields & Trees • Closing Rules • All the above

32. ChartField Value Sets Sample recommended CVS

33. ChartField Value Sets Recommended CVS

34. 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

36. Sample Fund Tree for Roll Forward Project to Date Rollforward Fund Tree

37. ChartField Value Sets

38. Review Close Rules • Four Tabs • Close Options • Net Income/Retained Earnings • Journal Options • Roll Forward Options

39. Closing Rules • Actual Closing Rules • Closing Options

40. Closing Options Tab • Actual Closing Rules • Closing Options • Year End Close Options

41. 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.

42. Net Income/Retained Earnings Tab • Net Income/Retained Earnings CVS

43. Journal Options Tab Recommended “Mask” Recommended unique “Source” Option is not recommended Source mustexist in both CMP and CSU

44. Roll Forward Options Tab

45. Closing Request - Run Control Remember to close ALL Business Units In-sync

46. CSU Data Structure

47. 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

49. 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

50. 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