PeopleSoft Enterprise Promotions Management 9.1 PeopleBook

Updating Financial Information in PeopleSoft Promotions Management

This chapter provides an overview of the Accrual and Financial Update Application Engine process and discusses how to:

Perform the Accrual and Financial Update process.
Defining returns workflow notifications.

Understanding the Accrual and Financial Update Application Engine Process

The Accrual and Financial Update process (TD_FINUP) performs several important functions pertaining to the management of promotions. These functions include:

Accruing fund budget amounts and units for fixed, rolling, and zero-based accrual funds.
Updating information pertaining to promotional activity, such as fund balance, amounts incurred, and consumption actuals (which you can view on the Review Checkbook - Checkbook inquiry page or the Maintain Fund Accruals/Budget - Budget page).
Authorizing customer payments for promotional activity if the Promotions Management environment doesn't require payment authorizations to be entered manually.
Generating Promotions Management accrual transactions to be posted to General Ledger.
Notifying users about possible situations where a chargeback claim is necessary due to returns received against promotional activity.

You can perform one or all of these functions at the same time by selecting the run options to perform on the Accrual and Financial Update request page. In addition, you can have this process perform these functions by a particular Promotions Management setID, Promotions Management fund, or General Ledger business unit.

Accruing Budgeted Amounts for a Fund

This process option performs the fund accrual processing for funds that are associated with fixed, rolling, and zero-based accrual funding methods. The process reviews past shipments for fixed and rolling accrual types to determine the accrual amounts of the fund. The process also looks at current shipments to increase the fund amounts for rolling and zero-based accrual types.

Note. The Accrual and Financial Update process checks all shipments if the Shipments to Include option is set to All, or it checks shipments for promotional activity only if the Shipments to Include option is set to Promotion on the Maintain Fund Accruals/Budget - Accruals page.

The main purpose of this process is to regularly update the fund amount, so that account managers know the amount that is available to spend on promotional activities. You can view the results of this activity on the Maintain Funds - Budget page.

Updating Checkbook Information

This process option updates all of the information that is related to promotional activity. Plus, the system calculates the incurred unit handling and incurred unit value amounts for a consumption type merchandising activity that is associated with a customer promotion if you enter actual units redeemed for the activity. Then, using the defined checkbook IDs, you can view the different amounts that are associated with a checkbook definition on either the Review Checkbook - Checkbook inquiry page or the Maintain Fund Accruals/Budget - Budget page.

Using a checkbook enables you to view amount information that is associated with promotional activity, such as planned amounts, incurred amounts, and actual amounts.

Authorizing Customer Payments

The Accrual and Financial Update process also authorizes customer payments for promotional activity. This process is necessary if the Promotions Management environment doesn't require manual payment authorization for customer promotions and national allowances. This process option enables you to enter claims for payment to the customers without the additional step of authorizing the payment on the Payment Authorization page.

On the Create Customer-Specific Promo (create customer-specific promotion) and Create National Allowances component, there is a Payment Authorization Required option. If this option is selected, then the salesperson must manually authorize payments. If the option isn't selected, then the Accrual and Financial Update process automatically creates payment authorizations for all incurred liability when the Authorize Promotional Payments run option is selected for the run control ID. When payment authorizations are created automatically, the system maintains a history of the authorized amounts in the TD_PAYMENT_HIST table. You can view this history data on the Authorize Payments - Payment Authorization History page.

Generating General Ledger Accrual Transactions

After you create and ship sales orders using the promotional discounts that you defined in Promotions Management, you want to know what liabilities you have incurred to the customers. The process generates the actual accrual transactions and populates the Promotions Management GL Accrual transaction table (TD_ACCTG_ENTRY). The Journal Generator process takes the transactions from this table and posts them to General Ledger during period end processing.

Promotions Management supports the Always Inherit ChartField inheritance option to create balanced accounting transactions if the General Ledger unit is using balanced ChartFields.

The Accrual and Financial Update process generates general ledger accrual transactions for all expenses that are incurred and not paid. Returns are backed out of the incurred amount if the Backout Returns? option is selected on the Promotions Options - General Options page.

Understanding the General Ledger Accrual Business Process

The following procedure describes how the general ledger accrual transactions are created and processed to General Ledger using the Journal Generator process.

To use the general ledger accruals business process:

Create and ship sales orders using the off-invoice and bill back promotional discounts that you define in Promotions Management.
Run the Accrual and Financial Update process with the generate GL transaction option selected on the Accrual and Financial Update page.

The Accrual and Financial Update process populates the TD_ACCTG_ENTRY table with the general ledger accrual entries that are created by subtracting actual amounts and returned amounts from incurred amounts, and then adding chargeback amounts to the calculated amount.

Note. Incurred amounts are calculated from shipped sales orders with off-invoice or bill back promotional discounts, from lump sum discounts or insertion amounts where the first performance date has been reached, or from consumption merchandising activities where Incurred Units Redeemed have been recorded for the merchandising activity in the Specify Consumption Actuals component.

Actual amounts are calculated from invoiced sales orders with off-invoice promotional discounts, or from paying customer claims for bill back discounts, lump sum discounts, insertion amounts, or consumption merchandising activities where Actual Units Redeemed have been recorded for the merchandising activity in the Specify Consumption Actuals component.

Returned amounts are calculated from returned material authorizations for off-invoice and bill back promotional discounts that have been received into Inventory if the Backout Returns? option is selected on the Promotions Options - General Options page.

Chargeback amounts are calculated from customer claims with a chargeback payment method that have been processed through Billing.

Note. The Accrual and Financial Update process, with the generate GL transactions option selected, can be run at any time.
Run the PS/Fin Journal Generator process (FSPGJGEN) from the Journal Generator Request page.

The PS/Fin Journal Generator process uses the general ledger accrual transaction entries in the TD_ACCTG_ENTRY table as input to populate the Journal Entry tables that General Ledger uses. On the Journal Generator Request page, select TD_ACCRUE in the Template field and TDDEFN in the Accounting Definition Name field. The template that you select controls the accounting line source, journal date, and reversing entry at the beginning of the next period. The accounting definition identifies the system source that distributes data to the general ledger and the record and field names for the accounting entry table.

Note. The Reversal Code on the Journal Generator Template - Defaults page for the TD_ACCRUE template should be set to beginning of next period to ensure that accounting transactions are posted correctly.

Note. The Journal Generator process is typically run during period end processing.
Use the GL Accruals inquiry page to view the entries that are posted to General Ledger.

Returns Workflow Notifications

You can define workflow notifications to notify users when returns might cause a promotional chargeback situation. Users who are defined as contacts for customer specific promotions or national allowances can receive worklist or email notifications when the return amounts are greater than the incurred amount minus the actual amount.

For example, if claims have been paid for a promotion, but then returns are processed against the promotional activity, a chargeback should be entered because the customer was paid more than they should receive. After you define a workflow notification for returns, the system processes the notifications when you run the Accrual and Financial Update process. The system sends the notification one time for each chargeback situation.

See "Understanding PeopleSoft Workflow,"Enterprise PeopleTools PeopleBook: Workflow Technology.

Running the Accrual and Financial Update Application Engine Process

This section discusses how to run the Accrual and Financial Update process.

Page Used to Run the Accrual and Financial Update Process

Page Name	Definition Name	Navigation	Usage
Accrual and Financial Update	TD_FINUP_RQST	Promotions, Funds, Run Accrual/Financial Updates, Accrual and Financial Update Promotions, Payments, Run Accrual/Financial Updates, Accrual and Financial Update Promotions, Analysis, Run Accrual/Financial Updates, Accrual and Financial Update	Performing the Accrual and Financial Update Process. This includes accruing budgeted amounts for a fund, updating checkbook information, automatically authorizing customer payments, generating general ledger accrual transactions, and notifying users about possible situations where a chargeback claim may be necessary due to returns received against promotional activity.

Performing the Accrual and Financial Update Process

Access the Accrual and Financial Update process page (Promotions, Funds, Run Accrual/Financial Updates, Accrual and Financial Update).

Run By

Select the parameter for running this process. Values are:

GL Business Unit (general ledger business unit): Run this process by a General Ledger business unit that you specify. If you select this value, in the lower region of the page select one or more general ledger business units to process.
Promotions Management Fund: Run this process by a Promotions Management fund that you specify. If you select this value, in the lower region of the page select one or more setIDs and fund codes to process.
Promotions Management SetID: Run this process by a Promotions Management setID that you specify. If you select this value, in the lower region of page select one or more Promotions Management setIDs to process.

Run Options

Run Fund Accrual Processing	Select to perform fund accrual processing for funds that have either fixed, rolling, or zero-based accrual funding methods. If you select this check box, you can also select Skip Previously Run Fixed Acc. (skip previously run fixed accrual). During processing, the system verifies the setting for the Shipments to Include field on the Maintain Fund Accruals/Budget - Accruals page. This setting indicates whether the process should summarize all shipments for the accruals or only promotional shipments for the accruals. If the Include Returns Within Fund Accruals? check box is selected on the Maintain Funds - Fund Detail page, the system also backs out returns for the accruals. Note. Fixed funds that have been manually updated and protected are not included in the processing and will not be updated by the Accrual and Financial Update process.
Skip Previously Run Fixed Acc (skip previously run fixed accrual)	This option only applies to fixed accrual funds. Select if you previously ran the accrual processing for all funds with this funding method. When you initially run the accrual processing for a fixed accrual fund, the system determines the budgeted amount by looking at past shipments. The accrual process doesn't need to reprocess this information unless returns have been received and need to be processed. This option prevents the system from reprocessing previously processed information. Note. Depending on when you perform this process for a fixed accrual fund, the fixed accrual budgeted amount can vary between two completions of the same accrual process. For example, the accrual process might have been run for a period before all shipments and returns are posted. If a fixed fund accrual ran and refreshed every time, the values might have changed.
Update Checkbook Entries	Select to have the system perform all the processing to reflect the promotional activity. This process calculates information such as fund balance and amount incurred against the fund. In addition, if you have entered actual units redeemed for a consumption type merchandising activity, this option determines the incurred unit handling and incurred unit value amounts for that activity. You can see the results of this processing using the Review Checkbook - Checkbook inquiry page or the Maintain Fund Accruals/Budget - Budget page.
Authorize Promotional Payments	Select to automatically authorize customer payments based on the incurred amount for the promotional activity. After this process is complete, you can create customer claims without the additional step of authorizing the payment on the Payment Authorization page.
Generate GL Transactions (generate general ledger transactions)	Select to create the general ledger accrual transactions that post to the general ledger. This process populates the transactions on the Promotions Management GL Accrual Transaction table, and the General Ledger Journal Generator process reads the transactions from the table and posts them to General Ledger.
Returns Workflow Notification	Select to include workflow notifications for returns that might require a promotional chargeback claim to be entered. The workflow alerts users if a chargeback situation might be necessary because the payment amount is now greater than the incurred amount because of one or multiple returns received against the promotional activity.