Understanding Asset Information Flow
Each financial transaction that is entered into PeopleSoft Asset Management can be used to generate balanced accounting entries. These entries in turn can be summarized and written to a journal, which can then be rolled up and posted to the general ledger system.
Balanced accounting entries are generated from financial transactions and are the basis for creating journals that are posted to the general ledger. The primary sources of accounting entries within PeopleSoft Asset Management include:
Accounting entries that are created from financial transactions such as asset additions, adjustments, allocations or retirements.
Accounting entries that are created from depreciation close for a particular accounting period.
Accounting entries that are created from lease payments.
Others include processing transactions to adjust for inflation and accounting entries that are created from an active integration with other PeopleSoft products such as Billing, Purchasing, and Payables.
Each time financial asset information is entered or adjusted, PeopleSoft Asset Management creates an open transaction. This transaction remains open until accounting entries are created or depreciation is calculated for the transaction. The process for accounting entry creation generates accounting entries for all financial transactions that are not related to depreciation. The Depreciation Close process (AM_DPCLOSE) generates accounting entries for depreciation in a particular accounting period.
To create accounting entries:
Enter asset transactions.
Based on the context of the transaction that you enter, the system creates an open transaction with a transaction type such as Add, Transfer, Adjust, Retire, and so forth. These open transactions form a list of accounting entry or depreciation tasks to be processed.
Calculate depreciation for open transactions.
Create asset transaction accounting entries by running the Accounting Entry Creation process (AM_AMAEDIST), which applies the appropriate accounting entry templates to the open transactions that were created in step 1.
Selection of an accounting entry template is determined by the accounting entry template ID, category, cost type, transaction type, and transaction code of the asset transaction. You can run this process at any interval. You should run the process more than once a month to prevent the process from being slowed at period close time. Use Process Scheduler to schedule and automatically initiate these processes.
At the end of each accounting period, create depreciation accounting entries by running the Depreciation Close process; the process applies the depreciation (DPR) and prior depreciation period (PDP) accounting entry templates to the asset depreciation table.
Run this process only once for each accounting period, and only after all of the transaction activity for the period has been completed.
Reverse accounting entries by running the Depreciation Close process with the option Reverse Posted Entries selected.
This option reverses only those journal entries that have been created and posted to the general ledger, and creates reversal entries.
This diagram shows the processes for creating accounting entries: