Managing Accruals for PeopleSoft Payables

This chapter provides an overview of accrual processing and discusses how to:

• Process accruals for PeopleSoft Payables.

• Delete accruals for PeopleSoft Payables.

Understanding Payables Accrual Processing

Accounting Entries for Period End Accruals will not be integrated with PC (project costing) and AM (asset management). the PC distribution status and AM distribution status for the PE accrual entries will be set to Ignore.

Eligibility for Accrual Processing

The following list provides eligibility requirements for processing Period End Accruals:

• The Accrue Unprocessed Vouchers at Period End checkbox and a Journal Generator template must be selected in the associated Payables business unit (Procurement Options).

• Vouchers that have not been previously posted in a postable status.

• Vouchers that match group control rules.

• Vouchers that match with Period End Accrual Options set up with valid statuses determined by Period End acrruals (matching options, budget check options, document tolerance options and approval options).

• Vouchers that have period end accrual entries posted that have been subsequently deleted.

• For vouchers created from receipts that have been accrued, the voucher will not be accrued. However, if the voucher has been created for an amount greater than the receipt, the difference between the receipt amount and the total voucher line amount will be accrued in the period end accrual process.

• Vouchers not in an error or recycle status.

• Vouchers not in a budget check error condition.

• Vouchers on payment hold.

Understanding Payables Accrual Entries

This section discusses:

Commitment Control entries for accruals.

Commitment Control Entries for Accruals

If budget checking is enabled at the Installation Options level for payables and on the Procurement Options page for period end accruals, create the expense and encumbrance reversal entries as needed. The high level rules are:

• If the voucher is created from a PO, and the voucher has not been budget checked, create an encumbrance relief and encumbrance relief reversal entry. The encumbrance entries will derive their ChartField values from the commitment control activity log entry for the PO. Create an expense and an expense reversal entry.

• If the voucher is created from a PO, and the voucher has been budget checked, do not create commitment control expense and encumbrance entries.

• If the voucher has not been created from a PO, and the voucher has been budget checked, do not create the commitment control expense entries.

• If the voucher has not been created from a PO, and the voucher has not been budget checked, create the commitment control expense and expense reversal entries.

Encumbrance Relief

The voucher, originating from a PO, will have an encumbrance entry in the commitment control activity record. The chartfield information found on the commitment control activity log for the encumbrance will be used to create the encumbrance relief entry.

Accounting entry rules:

• The accounting entry type or DST_ACCT_TYPE will be set to ENR.

• This accounting entry will not be journal generated to the General Ledger.

• The accounting date will be set to the accounting date on the run control record.

• The accounting entry will include the required fields to perform budget checking.

• The budget date will be determined by the Default Budget Date option in commitment control installation options.

  The options are Accounting Date Default or Predecessor Document Date Default. Where Accounting Date default has been setup, use the accounting date on the run control. For Predecessor Document Date Default use the Budget Date on the PO. The budget date is found on the PO distribution line.

Encumbrance Relief Reversal

The encumbrance relief reversal will be a copy of the encumbrance relief with the following exceptions:

• The amounts will be reversed.

• Accounting date will be derived by taking the accounting date from the run control, find the period that the run control falls in and then get the first day of the next period for the general ledger business unit default ledger.

• Budget date will be the same as the encumbrance relief entry.

• The accounting period will be the accounting period where the derived accounting date falls.

See Accounting Entries for Period End Accruals.

Processing Accruals for PeopleSoft Payables

This section lists prerequisites and discusses how to process accruals for PeopleSoft Payables.

Prerequisites

Before processing period end accruals you must:

• Define accrual information for each business unit.

• Define accounting entry templates.

• Define Journal Generator templates.

Pages Used for Processing Accruals for PeopleSoft Payables

Processing Accruals

Access the Period End Accrual Processing page (Accounts Payable, Batch Processes, Vouchers, Period End Accrual, Create Period End Accruals)

Accrual and Expense entries will be created along with the accompanying reversal entries in the next period.

Reviewing Period End Accrual Summary Information

Access the Review Period End Accrual Selection page (Click the Review Business Unit Details link on the Period End Accrual Processing page.)

The accrual reversal accounting date will be derived by selecting the first day of the next accounting period from the date provided in the run control. The system will create the accrual reversals by reversing the amounts found on the accrual entry and set the accounting date to reversal date. The system will create the expense reversal by reversing the amounts found on the expense entry.

The Review Period End Accrual selection allows users to review accrual information as well as any known errors that may be encountered will be listed such as:

• No journal generator template setup in the business unit setup

• Control check box at the BU level has not been checked and does not allow period end accruals.

• Periods for the applications are still open.

• Business unit is not enabled to process period end accruals.

Deleting Accruals for PeopleSoft Payables

Access the Period End Accrual Delete page (Accounts Payable, Batch Processes, Vouchers, Period End Accrual, Delete Period End Accruals).

There may be instances where the accounting entries have been created erroneously. If the accounting entries have not been journal generated, you can reverse the entries. If the accounting entries have been journal generated, any erroneous transactions will need to be reversed in General Ledger through a reversing journal transaction. If transactions have been budget checked by commitment control, these transactions will have to be zeroed out and budget checked after they have been reversed.

When the transactions are populated into the grid, users have the option to select the transactions they want to delete. The check box will be unavailable for selection if the accounting transaction has been journal generated. If you select transactions for deletion and they have been budget checked, the transactions will be updated to zero out the amounts and the system will set the budget checking status to not budget checked.

The delete selected rows button will delete all selected rows and their associated reversal row. If budget checking has been run on any transactions selected for deletion, users will receive a message that the budget checked transactions will need to be budget checked again to reverse any activity. If the rows have been budget checked, they will be updated to be budget checked again. The distribution status will be set to Ignore for all lines so they will not be selected by the Journal Generator program.