Defining Accounting Entries

Use the following components to set up accounting entries:

  • Asset Book (BOOK_DEFN1).

  • Accounting Entry Template ID (AMAE_TMPL_ID_PNL).

  • Accounting Entry Template (DIST_TEMPLATE_DEFN).

  • Accounting Templates en Masse (RUN_AMAEMASS).

  • Accounting Entry Templates Report (RUN_AMAE1000)

  • Transfer Definition (IU_TRF_DEFN_TBL).

  • Transaction Codes (TRANSACTION_CODE).

  • Transaction Groups (TRANS_PNL_GRP).

  • Book Code (BOOK_CODE).

  • Acct (accounting) Template Book Code Reset (RUN_AM_BKC_RESET).

  • ChartField Mapping Templates (AM_CF_MAPPING).

This topic provides an overview of accounting entry options, lists the pages used to set up accounting entries, and discusses how to define Accounting Entries.

Page Name

Definition Name

Usage

Asset Book

BOOK_DEFN

Define asset books.

Accounting Entry Template IDs Page

AMAE_TMPL_ID_PNL

Create a template ID with options for depreciation features and distribution methods.

Accounting Entry Templates Page

DIST_TEMPLATE_DEFN

Add or modify accounting entry templates.

When accessing the Accounting Entry Templates page, you can use a transaction code as a key to determine what accounting entries to create.

Accounting Templates en Masse Page

RUN_AMAEMASS

Create one or multiple accounting entry templates for journal templates, cost types, transaction codes, and retirement disposal codes in a single process.

Accounting Entry Templates Report

RUN_AMAE1000

Run a report showing a list of accounting entry templates.

InterUnit Transfer Definition Page

IU_TRF_DEFN_TBL

Set up an InterUnit transfer definition.

Transaction Codes Page

TRANSACTION_CODE

Review or modify the transaction codes.

Transaction Groups

TRANS_GROUP_PNL

Set up transaction groups for purposes of allocating depreciation. For example, depreciation and prior period depreciation may be treated the same for allocations, so you can combine them into one transaction group.

Book Code

BOOK_CODE

Add book codes in pairs to facilitate multiple GAAP within the same chart of accounts.

Acct Template Book Code Update

RUN_AM_BKC_RESET

Reset accounting templates book codes in accounting templates.

ChartField Mapping Template

AM_CF_MAPPING

Create a ChartField map template to map dissimilar charts of accounts when entities have different ChartField structures.

PeopleSoft uses tables to support accounting entries for PeopleSoft Asset Management. Some tables are required for accounting entry processing and are noted as such. All others are optional.

Accounting Books

Defining asset books is required for accounting entry processing. Asset books are used to store financial information about assets such as cost history, depreciation rules, and retirement information.

An unlimited number of asset books per business unit can be defined. The number of books that you use depends on your reporting needs. Using multiple books enables you to keep separate cost and depreciation rules for each asset. Typically, organizations use at least two books: corporate and tax, also known as financial and fiscal. Your organization may need additional books if it does business in more than one state or country or uses any of the United States-recognized special tax treatments of accelerated current earnings (ACE) and alternative minimum tax (AMT).

Note: The depreciation criteria for each book are specified when you add assets or create asset profiles.

Accounting Entry Templates

The Accounting Entry template is the central table used for creating accounting entries to general ledger journals. Each is defined by an accounting entry template ID. When you add an accounting entry template, PeopleSoft Asset Management populates it with standard accounting entry types, based on the asset category, cost type, and transaction type that you specify. It also identifies each entry as either a debit or credit.

To begin, create accounting entry template IDs and if applicable in your business, mark the cost types for impairment and revaluation. For the SetID, create or select an existing accounting entry template to apply depreciation features and distribution methods. These features control what distribution types need to be set up in the accounting entry template.

PeopleSoft Asset Management enables you to create one or multiple accounting entry templates in a single operation. You may generate accounting entry templates for an asset category for all transaction types. You can generate templates for cost type, transaction code, and retirement disposal code.

Once you have defined the accounting entry template IDs, run the Create Accounting Templates en Masse Application Engine process (AMAEMASS) that generates accounting entry templates for all transaction types and user-defined cost type, transaction code, and disposal code.

Multiple GAAP and Book Codes

PeopleSoft delivers the ability to book accounting transactions according to different and often conflicting accounting principles for one Business Unit in one ledger and to maintain these entries in compliance with the rules of government and regulatory organizations. You can add book codes for PeopleSoft Asset Management to facilitate accounting entry processing.

Generally accepted accounting principles (GAAP) as determined in one country or jurisdiction often vary from country to country or by self-governing accounting bodies and jurisdictions. Consequently, organizations record and report their operations according to local accounting requirements as well as by rules applicable to parent corporations that are often under the rules of another national jurisdiction. PeopleSoft has provided the ability to maintain separate ledgers and ledger groups for different accounting principles, record transactions under varying statutory rules using Alternate Account and using MultiBook in PeopleSoft General Ledger and its subsystems for its automatic synchronization capabilities. A sometimes much favored method, especially within financial organizations, is defining book codes. This method enables you to simultaneously generate in one business unit and ledger all the relevant accounting entries for a transaction that addresses different local and corporate accounting rules.

You can use book codes to simultaneously generate sets of entries to record related transactions according to multiple GAAP for the same business unit in the same ledger. For example, where local and corporate accounting principles are not compatible, you define a local (L) and a corporate (C) book code. For those situations where requirements are alike, you define a code for both (B). You can attach these book codes to accounts as attributes. This results in separate permutations of accounts and book codes in which you simultaneously record related transactions under local, corporate, or both rules. You can choose to associate a single book code with one account value. Using this method, a unique account value must be created for each book code.

See Understanding Multiple GAAPs and Prior Period Adjustments.

Before you can define accounting entry processing, you must first complete the following task:

  • Define overall installation options to enable Book Code functionality. Use the Installation Options Overall (INSTALLATION_FS1) page.

  • Define ChartField accounts.

  • Define journals, ledgers and ledger groups.

Use the Transaction Codes page (TRANSACTION_CODE) to review or modify the transaction codes.

Image: Transaction Codes page

This example illustrates the fields and controls on the Transaction Codes page. You can find definitions for the fields and controls later on this page.

Transaction Codes page

Field or Control

Definition

Transaction Code

Enter a transaction code that identifies special asset transactions and that are used in combination with actions to create accounting entries. You can modify these codes by changing the description and short description. The transaction code associated with revaluation displays revaluation related distribution types for additions.

When you define accounting entry options for a book, you can choose to distribute by disposal code. If you choose this option, the disposal code appears by default as the transaction code. In this case, you must use the transaction codes from the delivered TableSet defined for the tubbiest that you are using. You must also define corresponding accounting entry templates.

Note: The standard transactions are predefined and delivered with PeopleSoft Asset Management. To modify the transaction types, use the Asset Management (INSTALLATION_AM) page of the Installation Options (INSTALLATION) component.

See Installation Options - Asset Management Page.

Use the Accounting Entry Template IDs page (AMAE_TMPL_ID_PNL) to create a template ID with options for depreciation features and distribution methods.

Image: Accounting Entry Template IDs page

This example illustrates the fields and controls on the Accounting Entry Template IDs page. You can find definitions for the fields and controls later on this page.

Accounting Entry Template IDs page

Field or Control

Definition

(FRA) Derogatory Depreciation

Select to accumulate derogatory depreciation. Used in France, derogatory depreciation represents the difference between two methods of depreciation (usually straight-line versus declining balance) applied to the same asset, where one method best reflects the economic depreciation and the other is used for tax reporting purposes.

(USA) Like Kind Exchange

Select to accumulate like kind exchange in support of the US 1031 Like-Kind Exchange guidelines issued by the Internal Revenue Service (IRS).

Note: Selecting this check box results in unrecognized gain and loss.

Revaluation

Select to accumulate differences derived from revaluation of tangible fixed assets and financial assets. This option not available if you have not selected the revaluation option on the Installation Options — Asset Management page.

(AUS) Net Method

When processing Australian net method revaluation, select this option to prevent the generation of Provision for Revaluation Contra (RC) accounting lines as a result of revaluation. When selected, the Run Depreciation Close Process (DEPR_CLOSE_RQST) will not create accounting line entries for rows with RC and Reversal of Depreciation (RD) distribution types, and DPR or PDP transaction types.

Book Code

Select this check box to apply book code to this accounting entry template ID. If it is not applicable, all generated entries will be created with no Book Code and all entries will post to General Ledger. If it is applicable, the book code functionality will be applied either for every book or none of them in the same ledger group by default. This field appears only if the Book Code feature is enabled at the system level within overall Installation Options.

Cap Threshold Processing (capitalization threshold processing)

Select to enable capitalization threshold processing at the accounting entry template ID level. This option appears only when the Capitalization Threshold feature is enabled at the system level within Installation Options.

See Defining Capitalization Threshold Processing

Federal Fund

Select this check box to enable Federal funds transfer distribution types on the Accounting Entry Templates page.

Create Gain/Loss Lines

Select this distribution method to distribute the accounting entries created by the template to gain and loss totals. There are two general methods of registering a fixed asset's sales. Create Gain/Loss Lines is used to reflect in only one account the gain or loss that the sale transaction represents for the company.

Create Net Book Value lines

Select this distribution method to distribute the accounting entries created by the template to net book value totals. There are two general methods of registering a fixed asset's sales. Create Net Book Value lines is used to reflect the proceeds of the sale in one account and the cost of sold asset in the other account. The PeopleSoft system provides the flexibility to generate entries for the wanted method.

Note: When setting up a new template or changing a template ID on a template that previously used either Gain/Loss or Net Book Value distribution, you may see a warning that the previous templates will be deleted. You have the option to go back and update the template instead.

Use the Accounting Entry Templates page (DIST_TEMPLATE_DEFN) to add or modify accounting entry templates.

Image: Accounting Entry Templates page

This example illustrates the fields and controls on the Accounting Entry Templates page. You can find definitions for the fields and controls later on this page.

Accounting Entry Templates page

Set up an accounting entry template for each possible combination of:

  • Asset category.

  • Cost type.

  • Transaction type.

  • Transaction code.

  • Accounting entry template ID.

Note: If you enter an asset into your system by using a combination of these values for which no accounting entry template exists, your accounting entry process fails when you next attempt to run it.

For each accounting entry type, select:

Field or Control

Definition

Journal Template

For recording actual transactions.

Budget Journal Template

For recording budget transactions.

Accounting Entries

Select the appropriate accounts and alternative accounts to be associated with each accounting entry type.

If Book Code functionality is set up at Accounting Entry Template IDs level, the Accounting Entry Templates page displays the Book Code related to that account.

Refresh icon

Click the refresh button to update the display after you enter changes.

Accounting Entry Types

Accounting entry types are set by the system. Each asset event has an associated set of accounting entry types.

For each possible combination of category, cost type, and transaction code, you must set up an accounting entry template for each of the following transaction types:

  • ACR: Accretion Expense.

  • ADD: Additions.

  • ADJ: Adjustments.

  • TRF: Transfers.

  • RCT: Recategorizations.

  • DPR: Depreciation expenses.

  • PDP: Prior period depreciation.

    Note: The DPR and PDP transaction types are used only on an accounting entry template with a blank transaction code.

  • PLP: Prior Lease Payment.

  • RET: Retirements (also used for processing reinstatements).

  • LPY: Lease payments.

  • INF: Inflation adjustment.

  • LEX: Lease Expense.

Book Code

Specify a book code for each account value.

The Allow Book Code Override option that is set on the Account (ACCOUNT) page determines whether this book code can be overridden on the transaction line. The Effective Date and Status fields on the Account page must match the settings for the account values to which the book code is attached. Assets take the most recent and active date to populate its templates. To avoid any situation where Book Code might generate unbalanced entries in General Ledger, a warning message is generated when the template is saved when there are paired distribution types with different Book Codes. Paired distribution types are those distribution types that play against other in order to balance the entry.

Use the Accounting Templates en Masse page (RUN_AMAEMASS) to create one or multiple accounting entry templates for journal templates, cost types, transaction codes, and retirement disposal codes in a single process.

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This example illustrates the fields and controls on the Accounting Templates en Masse page (1 of 5).

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This example illustrates the fields and controls on the Accounting Templates en Masse page (2 of 5).

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This example illustrates the fields and controls on the Accounting Templates en Masse page (3 of 5).

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This example illustrates the fields and controls on the Accounting Templates en Masse page (5 of 5).

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When you begin the process, the page displays your request ID and default process frequency. Select the SetID, account entry template ID, and category. Three actions can be carried out:

Field or Control

Definition

Delete All Cost Types

Select to erase all cost types displayed in the Cost Type group box.

Delete All Trans Codes (delete all transaction codes)

Select to erase all transaction codes displayed in the Transaction Codes group box.

Delete All Disposal Codes

Select to erase all disposal codes displayed in the Retirement Disposal Code group box.

Distribution Options

The page displays a distribution type list and corresponding account and alternate account specific to the template ID or category selected. The list is refreshed when these values change.

If Book Code functionality is set up at Accounting Entry Template ID level, the book code related to the account displays. The Allow Book Code Override option set on the Account page determines whether the book code can be overridden for each distribution type. This process populates the book codes using the criteria defined for the Accounting Entry Template.

If the book code column does not display, it is not selected at Accounting Entry Template ID level. The template uses the book code based on the accounts effective date set in the Account definition page.

SetID Options

The page includes expandable subpages of options determined by SetID.

Field or Control

Definition

Journal Template ID

(AM_JRNL_TMPL_SBP, RUN_AMAEMASS_02)

Select journal and budget journal templates for each type of transaction (add, adjust, and so forth).

Cost Type

(AM_COST_TYPE_SBP, RUN_AMAEMASS_03)

Select cost types for which templates should be generated (cost, margin, revaluation, and so forth). If cost types are not used, leave this field blank.

Transaction Codes

(AM_TRANS_CODE_SBP, RUN_AMAEMASS_04)

Select transaction codes for which templates should be generated (abandoned, inventory, donated, and so forth).

Retirement Disposal Code

(AM_RETDISP_CODE_SBP, RUN_AMAEMASS_05)

Select retirement code for which templates should be generated (abandoned, inventory, donated, and so forth).

Use the InterUnit Transfer Definition page (IU_TRF_DEFN_TBL) to set up an InterUnit transfer definition.

Image: InterUnit Transfer Definition page

This example illustrates the fields and controls on the InterUnit Transfer Definition page. You can find definitions for the fields and controls later on this page.

InterUnit Transfer Definition page

To begin, from the search dialog page, select the books used by the To Business Unit business unit.

Field or Control

Definition

From Book

Enter the book whose information you want to enter into the To Book. Then select the action that you want to use: Transfer or Add book. Usually you use the transfer action.

InterUnit transfer definitions act as templates to simplify performing InterUnit transfers.

InterUnit transfer definitions tell the system which books exist for the transfer from and transfer to business units, and what type of transactions the InterUnit transfer should generate for each book. If you are planning to perform many InterUnit transfers, it helps to first define all the possible InterUnit transfers.

For example, if you have three business units, US001, US002, and US003, and you expect to perform all possible InterUnit transfers, you would set up these six InterUnit transfer definitions:

Transfer From

Transfer To

US001

US002

US001

US003

US002

US001

US002

US003

US003

US001

US003

US002

When transferring from a business unit with two books to a business unit with three books, enter information into the extra To Book by using either the Add Book action or the Transfer Book action.

For example:

From Book

To Book

Action

Corporate

Local

Transfer Book

Federal

Reporting

Transfer Book

Corporate

Other

Add Book

The transactions generated to pass book information for InterUnit transfers differ depending on how many To Book entries a From Book is passing information to, and whether it is passing the information by using a transfer action or an add book action.

Note: Assets that are transferred to new business units by using the add action will have a cost row of zero on the new business unit until you run the Depreciation Calculation process (AM_DEPR_CALC). Running this process updates the asset's cost row with its net book value from the From Book.

When you use an asset profile, the book information appears by default from the profile.

Using a From Book Once

When a From Book is used once only, an add action generates a retirement for the From Book and an add to the To Book. A transfer action generates a transfer out for the From Book and a transfer in for the To Book.

The asset that is retired receives an asset status of Disposed.

Assets that are transferred between books by using the transfer action receive a status of Transferred:

From Book

From Trans

To Book

To Trans

Action

CORPORATE

Transfer Out

CORPORATE

Transfer In

Transfer Book

FEDERAL

Transfer Out

FEDERAL

Transfer In

Transfer Book

From Book

From Trans

To Book

To Trans

Action

CORPORATE

Transfer Out

CORPORATE

Transfer In

Transfer Book

FEDERAL

Retire

FEDERAL

Add

Add Book

From Book

From Trans

To Book

To Trans

Action

CORPORATE

Retire

CORPORATE

Add

Add Book

FEDERAL

Retire

FEDERAL

Add

Add Book

Using a From Book for Two or More Transfers

When a From Book is used for two or more transfer book actions, only one transfer out transaction is generated. Because this takes care of the cost on the From Book, no additional transfer outs are generated for that book.

Assets that are transferred between books by using the transfer book action receive a status of Transferred:

From Book

From Trans

To Book

To Trans

Action

CORPORATE

Transfer Out

CORPORATE

Transfer In

Transfer Book

CORPORATE

 

LOCAL

Transfer In

Transfer Book

Using a From Book for Both Transfer and Add

When a From Book is used for both a transfer and an add action, a transfer out is generated for the Transfer Book. Because this takes care of the cost on the From Book, the add action does not generate a retirement for that book.

Assets that are transferred between books by using the transfer book action receive a status of Transferred:

From Book

From Trans

To Book

To Trans

Action

CORPORATE

Transfer Out

CORPORATE

Transfer In

Transfer Book

CORPORATE

 

LOCAL

Add

Add Book

Using a From Book for Two or More Adds

When a From Book is used for two or more add actions, a retirement is generated for the first add action. Because this takes care of the cost on the From Book, no further retirements are generated for it.

The asset that was retired receives a status of Disposed:

From Book

From Trans

To Book

To Trans

Action

CORPORATE

Retire

CORPORATE

Add

Add Book

CORPORATE

 

LOCAL

Add

Add Book

Note: When you transfer from a business unit with three books to a business unit with two books, the cost information on the extra From Book is automatically retired. You do not need to enter an action.

See Understanding Adjusting, Transferring, Reversing, and Evaluating Assets.

Retiring a Book

Assets that are retired receive a status of Disposed:

From Book

From Trans

To Book

To Trans

Action

CORPORATE

Transfer Out

CORPORATE

Transfer In

Transfer Book

LOCAL

Transfer Out

LOCAL

Transfer In

Transfer Book

FEDERAL

Retire

 

 

 

See Understanding Asset Retirement.