Understanding the CM/AP Reconciliation Tool
Set
This chapter discusses how to use the CM/AP Reconciliation tool set.
Understanding the CM/AP Reconciliation Tool
Set
Purchase order receipts to inventory can yield many inventory putaways. Each inventory putaway can yield many accounting entries, which generally debit an inventory asset account and credit the accrued liability account as specified on the purchase order receipt.
On the PeopleSoft Payables side, vouchers are entered to set up payment for vendor invoices. Each purchase order receipt to inventory can yield many vouchers from many vendors for the material and its landed cost charges. Each of those vouchers generally triggers a debit to accrued liability (as specified on the purchase order receipt) and a credit to accounts payable.
The CM/AP Reconciliation tool set helps with the task of ensuring that for each purchase order receipt, the entries to accrued liability from PeopleSoft Cost Management are reconciled with the entries from PeopleSoft Payables. These entries should offset, netting to zero. In practice, there are a number of situations where the accounting entries from the two sources do not offset:
Receipts are not yet put away.
Putaways and adjustments are not costed.
Putaways and adjustments are costed but accounting entries are not yet created.
Putaways and adjustments are costed and accounting entries are created, but are not picked up by the Journal Generator.
Receipts are not vouchered.
Receipts are vouchered but are not posted to voucher accounting lines.
Wait for final cost is in effect (select the Hold for Final Cost check box on the cost profile so that no costing of transactions occurs until the voucher is matched) if you run in midperiod mode (to minimize adjustments). In regular mode, the purchase order amounts post if the voucher is not yet processed.
Voucher amounts are different than the purchase order receipt amounts, and those matched cost adjustments are not yet processed through PeopleSoft Cost Management and passed on to the general ledger.
User-created journal entry to manually account for a difference.
Using the CM/AP Reconciliation Tool Set
The CM/AP Reconciliation tool set allows you to:
Run the CM/AP Reconciliation process (CM_APRECN) to match up PeopleSoft Cost Management entries for receipts against PeopleSoft Payable entries for receipts.
The CM/AP Reconciliation Summary provides inquiries into the receipts that do not offset each other, and drill-down capabilities through the details of those transactions. Also, there is an option to select receipts that should no longer be displayed on the reconciliation list. These receipts are designated by users as insignificant differences, or they are dealt with in some fashion, such as a manually entered journal entry. You can view and mark as reconciled the receipts having corresponding payables entries that do not balance to zero. You can also view and mark as reconciled the voucher entries that do not have corresponding costing entries but have been accounted for elsewhere.
Use the CM/AP Reconciliation Detail to view all detail information about PeopleSoft Payables transactions and PeopleSoft Cost Management transactions. You can also mark any discrepancies as reconciled.
Note. The CM/AP Reconciliation tool set does not perform reconciliation entries, but it does provide information necessary for you to understand and resolve reconciliation differences.
Pages Used to Reconcile PeopleSoft Cost
Management and Payables
|
Page Name |
Definition Name |
Navigation |
Usage |
|
CM_APRECN_REQ |
Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Reconcile Accrued Liability, CM/AP Reconcile |
Run the CM/AP Reconcile process, after which you can use inquiry pages to find Payables transactions that you need to reconcile with PeopleSoft Cost Management transactions. |
|
|
CM_APRECN_INQ |
Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Accrued Liability Summary, CM/AP Summary |
View summary information about discrepancies between Payables transactions and PeopleSoft Cost Management transactions. You can also mark the discrepancies as reconciled. ChartField security can be applied to this page. |
|
|
CM_APRECN_DETAIL |
Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Accrued Liability Details, CM/AP Detail |
View all detail information about Payables transactions and PeopleSoft Cost Management transactions from the request process. You can also mark any discrepancies as reconciled. ChartField security can be applied to this page. |
Running the CM/AP Reconciliation Process
Access the CM/AP Reconcile page (Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Reconcile Accrued Liability, CM/AP Reconcile).
Use the CM/AP Reconcile process (CM_APRECN) to match PeopleSoft Cost Management accounting entries (that are posted to the general ledger) to a matching entry in Payables accounting line table. This process reports any entries that cannot be matched. After running the CM/AP Reconcile process, use inquiry pages to find Payables transactions that you need to reconcile with PeopleSoft Cost Management transactions. There are many causes of discrepancy; for example, maybe you did not voucher a receipt, or you entered a voucher for an amount that differs from the amount on the purchase order. Actions like these can then cause the system to, for instance, not voucher a receipt, not post a vouchered receipt to the voucher accounting lines, not pick up an accounting line with the journal generator, or to post a voucher to the liability account without a receipt.
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Business Unit |
Enter your Inventory business unit. |
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Account |
Enter the number (ChartField) of an accrued liability account. The system accepts the number of any account used by both PeopleSoft Cost Management and PeopleSoft Payables. |
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Fiscal Year and Accounting Period |
Enter the time period to be used by this process. The system collects all receipts and vouchers from the first period of the fiscal year to the accounting period entered. Using this time period, the process:
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Include Prior Fiscal Years |
Select this check box to include all outstanding receipts from the prior fiscal year that have not yet been vouchered (non-reconciled receipts). |
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Delete All Previous Results |
Select if you want this run to delete the results of all previous runs. If the check box is not selected, only the data from the prior run of the selected Run Control ID and Request ID are deleted. |
Using the CM/AP Reconciliation Summary
Access the CM/AP Reconciliation Summary page (Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Accrued Liability Summary, CM/AP Summary).
After you run the CM/AP Reconcile process, you can view summary information about discrepancies between the costing balance in PeopleSoft Cost Management and the voucher balance in PeopleSoft Payables. You can also mark the discrepancies as reconciled. Balanced receipt lines are marked as reconciled and do not appear on the summary page. This component can display the following information:
Vouchers without costing entries.
Costing entries without vouchers.
Costing entries with voucher balances.
|
Error OK |
Select this check box to mark the discrepancies as reconciled. The receipt line does not appear in future runs. |
|
Item |
Displays the item ID. |
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Recv Unit |
Displays the receiving business unit attached to the receipt ID. |
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Payables Total |
Displays the payables accounting entries summed to the voucher line. A blank in the this field indicates that the receipt was not vouchered. |
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Inventory Total |
Displays the inventory accounting lines that are summed to the receipt schedule line. |
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Difference |
Displays the absolute value of the difference between the Payables Total field and the Inventory Total field. |
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Details |
Click this link to access the CM/AP Reconciliation Detail page where you can see the actual accounting entries for the receipt schedule line. |
|
AP Unit |
Displays the PeopleSoft Payables business unit. This field only displays if there are vouchers without costing entries. |
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Voucher |
Displays the voucher ID. Select this link to access the Voucher Inquiry page within PeopleSoft Payables where you can review the status of the voucher and any payment information. This field only displays if there are vouchers without costing entries. |
ChartField security can be applied to this page.
See Enabling ChartField Security.
Using the CM/AP Reconciliation Detail
Access the CM/AP Reconciliation Detail page (Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Accrued Liability Details, CM/AP Detail).
After you run the CM/AP Reconcile process, use this page to view all detail information about Payables transactions and PeopleSoft Cost Management transactions from the request process. You can also mark any discrepancies as reconciled.
The Reconciled check box is selected if the receipt and voucher are balanced; it is deselected if the receipt and voucher do not balance. Select Reconciled if the discrepancy for this transaction is acceptable.
Inventory Accrued Liability
Use the Transaction tab on this page to view and reconcile accrued liability transactions that have corresponding voucher entries that do not balance to zero. Click the Accounting Line link to drill to transaction details on the Inventory Transaction Entries page.
Use the first Accounttab on this page to view account information for accrued liability transactions having corresponding voucher entries that do not balance to zero.
Vouchers
Use the Distribution tab to view and reconcile voucher distribution lines having accrued liability transactions that do not balance to zero. Click the Voucher link to see details on the Voucher Inquiry page.
Use the second Account tab to view account information for voucher entries that do not have corresponding costing entries.
ChartField security can be applied to this page.
See Also