Setting Up Commitment Accounting Processing Control Tables

This chapter provides an overview of the commitment accounting setup and describes how to:

• Define fringe groups.

• Set up mapping templates.

• Map accounts.

• Define offset groups.

• Define budget benefits groups.

• Define position pools.

• Add or maintain commitment accounting-related message definitions.

Prerequisites

Before setting up Commitment Accounting processing control tables, you must:

• Configure system-level settings for Commitment Accounting on the Installation Table - Product page.

  On this page, enable encumbrance triggers to capture job data and position data changes that necessitate encumbrance adjustments, activate real-time budget checking, and choose whether to prevent users from saving certain critical changes without budget validation.

• Enable commitment accounting at the department level by selecting a series of check boxes on the Department Table − Comm. Acctg. and EG page (DEPARTMENT_TBL_CA).

  On this page, set up specifications about commitment accounting processing at the department level and indicate if the department should be taking the task information entered into the PeopleSoft Enterprise Time and Labor system into account during actuals distribution.

• Populate the Combination Code Table (VALID_COMBO_CODE).

• Create positions in PeopleSoft Enterprise Human Resources: Manage Positions, if you are using positions and budgeting by position.

See Also

Entering Application- and Industry-Specific Installation Information

Maintaining Departments

Setting Up and Working with ChartFields and ChartField Combinations

Creating Positions

Defining Fringe Groups

To define fringe groups, use the Fringe Group Table component (HP_FRINGE_GROUP).

Group fringe expenses (employer paid benefits and taxes) together into fringe groups. When you specify a fringe group on the Department Budget Earnings page (DEPT_BUDGET_ERN), the system will distribute the earnings, but not the fringe costs associated with the group, to the funding source you assigned to that particular earnings code.

This section discusses how to set up fringe groups to manage benefits and taxes fringe expenses.

See Also

Establishing Department Budgets for Employee Earnings

Pages Used to Define Fringe Groups

Setting Up Fringe Groups

Access the Fringe Group Table (Set Up HRMS, Product Related, Commitment Accounting, Fringe Costs, Fringe Group Table).

Benefits

US Taxes and Canadian Taxes

Setting Up Mapping Templates

To set up mapping templates, use the Deduction Account Template component (HP_DED_ACC_TMPL) and the Earnings Account Template component (HP_ERN_ACC_TMPL).

Set up one mapping template each for earnings and deductions. Use the mapping templates to define which fields can be used to create account code mappings for either earnings or deductions costs.

This section discusses how to:

• Set up earnings mapping templates.

• Set up deductions mapping templates.

Pages Used to Set Up Mapping Templates

Setting Up Earnings Mapping Templates

Access the Earnings Account Template page (Set Up HRMS, Product Related, Commitment Accounting, Fringe Costs, Earnings Account Template).

The instructions for setting up an earnings account template and a deductions account template are the same and both pages contain the same fields (although the Field Name list is different for each template). Follow the instructions below to set up either an earnings or a deductions account template.

To set up an earnings or deduction account template:

1. In the Account Default group box, select the Account and its SetID to be used as a default in earnings mapping.

   When the system is unable to map to an account using the criteria you enter on the Earnings Account Mapping Table (HP_ERN_ACCT) or the Deductions Account Mapping Table (HP_DED_ACCT), it will use the account you select here.

2. For each of the field names, indicate if the field name is required for account mapping.

   The system displays the required fields on the Earnings Account Mapping Table or Deductions Account Mapping Table and you must enter a search value for the required fields when you set up earnings or deductions account mappings.

3. If a field value is not required for account mapping, but may need to be used in some instances, select Used? Indicate the priority (starting with 1) in which the field should be used.

   The system will search using the required fields first and use the other fields only if required to narrow the search, and then in the order of priority.

Note. Remember that you only create one earnings and deductions mapping template. You need to meet all your earnings and deductions account mapping requirements with the fields you select here.

Setting Up Deductions Mapping Templates

To set up a deductions mapping template:

1. Access the Deductions Account Template page (Set Up HRMS, Product Related, Commitment Accounting, Fringe Costs, Deduction Account Template).

2. Set up a deductions mapping template for a selected account using the instructions in Setting up Earnings Mapping Templates.

Mapping Accounts

To map accounts, use the Deduction Acct Mapping Table component (HP_DED_ACCT), Earnings Account Mapping Table (HP_ERN_ACCT), and the Map Tax Accounts CAN component (HP_CTX_ACCT) or Map Tax Accounts USA component (HP_TAX_ACCT).

This section provides an overview of account mapping and discusses how to:

• Map earnings accounts.

• Map deductions accounts.

• (CAN) Map Canadian tax accounts.

• (USA) Map U.S. tax accounts.

Understanding Account Mapping

Combination codes, also known as account codes, are made up of a combination of ChartFields. When you specify a combination code as a funding source, the system funds the earnings, deductions, or tax cost from the ChartFields grouped under that combination code.

Account mapping enables you to direct the system to an account other than the one associated with the selected combination code to fund expenses that meet your mapping criteria. For example, you might want all the earnings in a department budget to be funded by the combination code and its associated account, except for those earnings from a particular job code that are part time, which you funded from a different account. To do this, you set up an earnings account mapping identifying the job code and part time status and tie it to the account you want the system to use instead.

When the Actuals Distribution process (PSPPFUND) distributes earnings, it will distribute part-time earnings from the selected job code to the account you mapped to, instead of the account associated with the combination code.

To create earnings and deductions account mappings, map field values to accounts. The Earnings Account Mapping Table page and the Deductions Account Mapping Table page display the fields you selected on the Earnings Account Template and Deductions Account Template pages. Select values for those fields. When the Actuals Distribution process processes earnings or deductions transactions that have those field values it will distribute the earnings or deductions to the account that you map to on the mapping tables.

To create Canadian tax account mapping on the Tax Account Mapping Table page (HP_CTX_ACCT), map a tax class and account (and the account's SetID) to a company and wage loss plan. When the Actuals Distribution process processes Canadian tax transactions that have the tax class value and the specified company and wage loss plan, it distributes the taxes to the account that you mapped to.

To create U.S. tax account mapping, map a tax class and account (and the account's SetID) to a company on the Tax Account Mapping Table page (HP_TAX_ACCT). When the Actuals Distribution process processes U.S. tax transactions that have the tax class value and the specified company, it distributes the taxes to the account that you mapped to.

Note. The Actuals Distribution process will only use account mapping information when you have selected the account override on Dept Budget Defaults page (DEPT_BUDGET_DFLT) for that department.

See Also

Setting Up the Department Budget

Pages Used to Map Accounts

Mapping Earnings Accounts

Access the Earnings Account Mapping Table page (Set Up HRMS, Product Related, Commitment Accounting, Fringe Costs, Earnings Account Mapping Table).

To map earnings field values to accounts:

1. Select the effective date and status of the earnings account mapping.

2. Select values in each of the fields displayed in the grid to map them to the earnings account. The grid only displays the fields you selected on the Earnings Account Template page.

Mapping Deduction Accounts

Access the Deduction Account Mapping Table page (Set Up HRMS, Product Related, Commitment Accounting, Fringe Costs, Deduction Acct Mapping Table, Deduction Account Mapping Table).

To map field values to deduction accounts:

1. Select the effective date and status of the deduction account mapping.

2. Select values in each of the fields displayed in the grid to map them to the deduction account. The grid only displays the fields you selected on the Deductions Account Template page, with the exception of Plan Type, which is required for deduction account mappings.

(CAN) Mapping Canadian Tax Accounts

Access the Tax Account Mapping Table page (Set Up HRMS, Product Related, Commitment Accounting, Fringe Costs, Tax Account Mapping Table CAN).

Canadian tax accounts are connected to companies and wage loss plans. Connect tax classes with accounts and map these rows to companies and wage loss plans.

To map companies and wage loss plans to tax classes and accounts:

1. Select the effective date of the tax account mapping.

2. Associate tax classes with accounts to map to this company and wage loss plan.

(USA) Mapping U.S. Tax Accounts

Access the Tax Account Mapping Table page (Set Up HRMS, Product Related, Commitment Accounting, Fringe Costs, Tax Account Mapping Table USA).

U.S. tax accounts are connected to companies. Connect tax classes with accounts and map these rows to companies.

To map companies to tax classes and accounts:

1. Select the effective date of the tax account mapping.

2. Associate tax classes with accounts to map to this company.

Defining Offset Groups

To define offset groups, use the Department Offset Groups component (DEPT_OFFSET).

This section provides an overview of offset groups and balancing transactions and describes how to set up offset groups.

Understanding Offset Groups

When encumbrance transactions are created in PeopleSoft Enterprise Human Resources for PeopleSoft Enterprise General Ledger, the system enforces balancing by creating an offsetting entry for each entry written (that is, for each debit transaction written by the system, the system creates an offsetting credit transaction). Unlike PeopleSoft Enterprise Financials, where revenues offset expenses, PeopleSoft Enterprise HRMS has only expenses. PeopleSoft Enterprise HRMS uses the Department Offset Groups (DEPT_OFFSET_GRP) to create offsetting entries so that the transactions are balanced when they are sent to general ledger.

The accounts you select on the Department Offset Groups page must be valid in general ledger. For example, if your general ledger has been set up so that salary expenses are offset by a liability account, then that account should be the value appearing in the Account field associated with the payroll activity ERN, Payroll Earnings. If you did not load the GL Account Table with values from PeopleSoft Enterprise General Ledger, it is recommended that you set up this table with the help of someone from general ledger.

Understanding Balancing Transactions

If you are not using commitment control, then for each encumbrances/pre-encumbrances debit transaction written, the system writes an equal/offsetting credit entry. With the exception of the account ChartField (which is looked up on the Department Offset Groups component), the credit transaction contains the same ChartFields as the debit transactions and is balanced on all ChartFields except for the account ChartField.

If the Prorate Liability Indicator on the ChartField Transaction Table page (ACCT_CD_TABLE) is selected (which is the default), then all journals passed from PeopleSoft Enterprise HRMS to the general ledger during actuals transactions are balanced by fund (and any other ChartField you might select with the exception of account), as long as no insufficient funds available errors are generated. In other words, the total debits charged toward a fund equal the credits charged toward that fund.

Expense transactions for earnings, employer deductions, and employer-paid taxes are created based on funding information (namely, the combination code) as established on the Department Budget component (DEPT_BUDGET_CN or DEPT_BUDGET) or as overridden at the Job Earnings Distribution or Paysheet level. Assuming that the Prorate Liability Indicator on the ChartField Transaction Table page is selected, all combination codes associated with earnings expenses, liability amounts for employee-paid deductions, employee-paid taxes, and employee net pay are allocated to the combination codes used for earnings in the same ratio as earnings are allocated. Only the account ChartField is replaced with the value on the corresponding Department Offset Group entry.

Similarly, the liability amounts for employer-paid taxes and employer-paid deductions are allocated against the combination codes used for tax and deduction expenses and in the same proportion as the expenses (the account ChartField is replaced with the value on the corresponding Department Offset Group entry).

Because Earnings = Net Pay + EE Deductions + EE Taxes, ER Deduction Expense = ER Deduction Liability, and ER Tax Expense = ER Tax Liability, the net result of this process is that the journals should balance on all ChartFields except for the account ChartField.

Deselecting a combination code's Prorate Liability Indicator may impact this balancing at the ChartField level because it prevents employee deduction, employee tax, or net pay liability from being allocated against that combination code. In other words, the employee liability is only allocated across the combination codes where the Prorate Liability Indicator is selected (in proportion with those earnings amounts).

See Also

Option 4: Using the Department Budget Table Component

Creating Positions

Working with Paysheets

Pages Used to Define Offset Groups

Setting Up Offset Groups

Access the Department Offset Groups page (Set Up HRMS, Product Related, Commitment Accounting, Budget Information, Department Offset Groups).

Payroll Activity	Select a valid payroll activity. You can associate more than one activity with a Department Offset Group. Add a new row to add more activities.
Account	Enter a valid account code. The code you select is the funding source for all plan types in the selected Payroll Activity, unless otherwise specified.

Plan Information

This group box appears when you select a Payroll Activity of Deduction.

Defining Budget Benefits Groups

To define budget benefits groups, use the Budget Benefits Groups component (BDGT_BENEF_GRP).

This section describes how to define budget benefits groups.

Page Used to Define Budget Benefits Groups

Assigning Benefit Plan Types to Budget Benefit Groups

Access the Budget Benefit Groups page (Set Up HRMS, Product Related, Commitment Accounting, Budget Information, Budget Benefit Groups).

Plan Type

Select one or more benefits plan types.

Defining Position Pools

To define position pools, use the Position Pool Table component (POOL_TBL).

Use the Position Pool Table page (POOL_TBL) to set up valid position pool IDs. Position pools enable you to establish groups of positions for budgeting purposes. You can then attach budget information and encumbrance calculation rules to specific position pools. Once you've set up position pool IDs, attach positions to position pools using the Position Pool ID field on the Position Data − Specific Information page (POSITION_DATA5). For example, if you want to budget for your implementation-related positions together, create an implementation team position pool ID on the Position Pool Table. Then attach this ID to each implementation-related position on the Position Data-Specific Information page.

Note. Position pools can't span departments. Each position in a position pool must be in the same department.

See Also

Entering Position-Specific Information

Page Used to Define Position Pools

Setting Up Position Pool IDs

Access the Position Pool Table page (Set Up HRMS, Product Related, Commitment Accounting, Budget Information, Position Pool Table).

Position Pool ID

Identifies a position pool. Assign positions to a position pool on the Position Data component (POSITION_DATA) and then set up budgets for position pools using the Commitment Accounting business process.

Adding or Maintaining Commitment Accounting-Related Message Definitions

To add or maintain commitment accounting-related message definitions, use the Encumbrance Message Table component (ENC_MESSAGE_TBL).

You can create errors messages for commitment accounting processing.

Page Used to Add or Maintain Commitment Accounting Business Process Messages