Creating Accounting Entries

This topic provides an overview of the Depreciation Close process, lists common elements, and discusses how to create Accounting entries.

Page Name

Definition Name

Usage

Create Accounting Entries Page

AM_AMAEDIST_RQST

Set up and initiate a request or set of requests for accounting entry creation.

Run Depreciation Close Process Page

DEPR_CLOSE_RQST

Enter and initiate a depreciation close request or requests.

Closing Accounting Period Page

DEPR_CLOS_PD

Close accounting periods to ensure that you do not make any new transactions in the period.

Review Financial Entries - List

ASSET_DIST_LIST

Review accounting financial entries in summary list.

In the case where there are multiple "Future-dated" EFFDT, only the MAXIMUM effective-dated row will be displayed in the prompt for ACCOUNT in the Review Financial Entries component.

Review Financial Entries - Detail

ASSET_DIST_DETAIL

Review accounting financial entries in detail.

In the case where there are multiple "Future-dated" EFFDT, only the MAXIMUM effective-dated row will be displayed in the prompt for ACCOUNT in the Review Financial Entries component.

Review Operating Leases - List

ASSET_NF_DIST_LN

Review operating lease entries in summary list.

Review Operating Leases - Detail

LEASE_DIST_DETAIL

Review operating lease entries in summary list.

Review Asset Journals

AM_GL_DRILL

Review asset journal information.

Calculate Inflation - Request

DEPR_INF_RQST

Run a process to calculate inflation for assets.

Review Expense Entries - List

ASSET_NF_LIST

Review the expense entries (nonfinancial assets) that were created by running the Clearing Reconciliation process.

Review Expense Entries - Details

ASSET_NF_DET

Review the expense entry details (nonfinancial assets) that were created by running the Clearing Reconciliation process.

Clearing Reconciliation Page

AM_CLEREC_RQST

Run the process to reconcile the clearing account that is created by trackable assets from feeder systems against the expense account.

The Depreciation Close process generates period depreciation accounting entries for all depreciable assets in a particular accounting period, including lease payments and offset accounts for the period. Run this process only for an accounting period that has not yet been closed. You can reverse or rerun this process if errors are detected in the results. The flexible run parameters allow processing to close the period, reversing the output of the last posting run, or reversal with reprocessing of the close entries.

Open and close accounting periods are maintained in General Ledger and migrated to the financial subsystems. Each subsystem application can either use the periods that are created in General Ledger or update the open and close periods at the application business unit level.

When you run the Depreciation Close process, you have two options: Rerun Depreciation Close and Reverse Posted Entries. The following examples demonstrate how these options affect processing.

Example of the Rerun Depreciation Close Option

With Rerun Depreciation Close enabled and the journal entries not yet created, the Depreciation Close process creates a new accounting entry, as shown in this table, and deletes the existing one (if any). If the journal entries have already been created, depreciation close will neither delete nor generate entries. No actions occur.

DISTRIBUTION_TYPE

DTTM_STAMP

AMOUNT

GL_DISTRIB_STATUS

REVERSE_STATUS

REVERSE_DTTM_STAMP

Journal ID

Journal Dttm Stamp

AD

2009-09-05 14:25:20

–110.00

N

 

NULL

 

NULL

DE

2009-09-05 14:25:20

110.00

N

 

NULL

 

NULL

When the journal entries have been posted, the system updates the general ledger distribution status to D (done).

This table shows the results after the PeopleSoft General Ledger run:

DISTRIBUTION_TYPE

DTTM_STAMP

AMOUNT

GL_DISTRIB_STATUS

REVERSE_STATUS

REVERSE_DTTM_STAMP

Journal ID

Journal Dttm Stamp

AD

2009-09-05 14:25:20

–110.00

D

 

NULL

XX

Journal Dttmstamp

DE

2009-09-05 14:25:20

110.00

D

 

NULL

XX

Journal Dttmstamp

Example of the Reverse Posted Entries Option

When the Reverse Posted Entries option is selected and the journal entries have been created, the original entry is reversed with new rows inserted showing the reversed amounts. The new entries display the statuses R for reversal and X for reversed entries.

This table shows the original entry:

DISTRIBUTION_TYPE

DTTM_STAMP

AMOUNT

GL_DISTRIB_STATUS

REVERSE_STATUS

REVERSE_DTTM_STAMP

Journal ID

Journal Dttm Stamp

AD

2009-09-05 14:25:20

–110.00

D

X

NULL

XX

Journal Dttmstamp

DE

2009-09-05 14:25:20

110.00

D

X

NULL

XX

Journal Dttmstamp

This table shows the reversed entry:

DISTRIBUTION_TYPE

DTTM_STAMP

AMOUNT

GL_DISTRIB_STATUS

REVERSE_STATUS

REVERSE_DTTM_STAMP

Journal ID

Journal Dttm Stamp

AD

2009-09-12 17:37:25

110.00

N

R

2003-09-05 14:25:20

 

 

DE

2009-09-12 17:37:25

–110.00

N

R

2003-09-05 14:25:20

 

 

Example of Both the Rerun Depreciation Close and Reverse Posted Entries Options

When the Reverse Posted Entries and the Rerun Depreciation Close options are both selected, and the journal entries have been created, then the original entry is reversed as shown in the previous example, and a new accounting entry is created.

This table shows the original entry:

DISTRIBUTION_TYPE

DTTM_STAMP

AMOUNT

GL_DISTRIB_STATUS

REVERSE_STATUS

REVERSE_DTTM_STAMP

Journal ID

Journal Dttm Stamp

AD

2009-09-05 14:25:20

–110.00

D

X

NULL

XX

Journal Dttmstamp

DE

2009-09-05 14:25:20

110.00

D

X

NULL

XX

Journal Dttmstamp

This table shows the reversed entry:

DISTRIBUTION_TYPE

DTTM_STAMP

AMOUNT

GL_DISTRIB_STATUS

REVERSE_STATUS

REVERSE_DTTM_STAMP

Journal ID

Journal Dttm Stamp

AD

2009-09-12 17:37:25

110.00

N

R

2003-09-05 14:25:20

 

 

DE

2009-09-12 17:37:25

–110.00

N

R

2003-09-05 14:25:20

 

 

This table shows the results of the rerun with the new entry:

DISTRIBUTION_TYPE

DTTM_STAMP

AMOUNT

GL_DISTRIB_STATUS

REVERSE_STATUS

REVERSE_DTTM_STAMP

Journal ID

Journal Dttm Stamp

AD

2009-09-12 17:37:25

–140.00

N

 

NULL

 

NULL

DE

2009-09-12 17:37:25

140.00

N

 

NULL

 

NULL

Field or Control

Definition

Request ID

Displays the number of process requests that you have submitted.

Unit

Enter the business unit for which transactions are processed.

Book Name

Enter the book for which transactions are processed.

Currency

Displays the currency in which the transactions are processed, based on the base currency for the selected book or business unit.

Use the Create Accounting Entries page (AM_AMAEDIST_RQST) to set up and initiate a request or set of requests for accounting entry creation.

Image: Create Accounting Entries page

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

Create Accounting Entries page

Field or Control

Definition

Cost Summarize

Select to create cost summary while creating accounting entries.

From Asset ID and To Asset ID

Enter the transaction range to process.

Process GL Journal Generator

Select this option to enable the Journal Generator process (FS_JGEN) to run automatically once the Create Accounting Entries process (AM_AMAEDIST) completes.

See Understanding Journal Generator

SetID

Enter a setID for the Journal Generator process.

Accounting Definition Name

Enter an accounting definition name for the Journal Generator process.

Note: The system calls the Inter/IntraUnit central processor to create balanced accounting entries.

See Understanding PeopleSoft Interunit and Intraunit Functionality.

Use the Close Depreciation page (DEPR_CLOSE_RQST) to enter and initiate a depreciation close request or requests.

Image: Close Depreciation page

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

Close Depreciation page

Field or Control

Definition

Fiscal Year and Period

Enter the appropriate fiscal year and open periods to be closed.

Rerun Depreciation Close

Select to delete all existing accounting entries that haven't been generated as journal entries for depreciation expense and lease obligations for the specified business unit, book, fiscal year, and period. The system generates new entries.

To generate new journal entries and to reverse a journal entry, run a request with both Rerun Depreciation Close and Reverse Posted Entries options selected.

To rerun depreciation close for budgeted depreciation, run a request with both Rerun Depreciation Close and Create Budgeted Depreciation options selected.

Reverse Posted Entries

Select to reverse only those accounting entries that have been created and posted to the general ledger, including all existing accounting entries for depreciation expense and lease payments for the specified business unit, book, fiscal year, and period. The process creates reversal entries and marks the old entries with a status of Reversed. If journal entries have not been created, the entries marked Reversed are not used by the Journal Generator process.

To reverse entries that are created and post them again, use Reverse Posted Entries in tandem with Rerun Depreciation Close. When you do this, the original journal entry is reversed and a new entry is created.

When an entry has not been posted to the general ledger, use the rerun option. Reverse Posted Entries does not reverse unposted entries.

Create budgeted Depreciation

Displays the resulting accounting entries as budgeted depreciation and lease payments. These entries are posted to the budget ledger that is specified in the Business Unit Book options page when you run the Journal Generator process.

Process a range of assets

Select to process a specific range of assets for a business unit, book, fiscal year, and period. Use this option to split up a large volume of assets for a particular business unit and book. Because the program AM_DPCLOSE commits its work after each request, selecting this option accelerates the process. You can also use this selection with the parallel option to take advantage of servers that have parallel processors. This speeds up processing for large volumes of data.

For example, to increase throughput when creating depreciation accounting entries for 1,000,000 assets, you can enter 10 requests to process 100,000 assets each. Select Process in Parallel, and assign a processing sequence number to each process request. Processing sequence numbers must be unique.

Use care when specifying From asset ID and To asset ID processing parameters, as these parameters are inclusive. Overlapping can occur, and no edit is available to verify that you have set up inclusive asset ranges. For example, suppose that request 1 is processed from asset ID 0001 and to asset ID 0005. If request 2 is processed from asset ID 0005 and to asset ID 9999, asset 0005 is processed twice. You can use Query to verify ranges by counting the number of assets in total and number of assets per range.

Process GL Journal Generator

Select this option to enable the Journal Generator process (FS_JGEN) to run automatically once the Close Depreciation process (AM_DPCLOSE) completes.

See Understanding Journal Generator

SetID

Enter a setID for the Journal Generator process.

Accounting Definition Name

Enter an accounting definition name for the Journal Generator process.

Note: If you use the interface between PeopleSoft Asset Management and PeopleSoft Billing, accounting entries are created by these integrated transactions. How the entries are created is described in more detail in the PeopleSoft Billing documentation.

See Understanding How PeopleSoft Asset Management Integrates with Other Applications.

See Understanding Asset Management Business and Cash Generating Units.

See Understanding General Ledger Journal Entries.

See Understanding PeopleSoft Billing and Asset Management Integration.

Use the Close Accounting Period page (DEPR_CLOS_PD) to close accounting periods to ensure that you do not make any new transactions in the period.

Enter the year and period to be closed, and save the page. When a period has been closed, you cannot create additional depreciation-related accounting entries for that period.

See Understanding Interim and Year End Closing.

Use the Clearing Reconciliation page (AM_CLEREC_RQST) to run the process to reconcile the clearing account that is created by trackable assets from feeder systems against the expense account.

Image: Clearing Reconciliation page

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

Clearing Reconciliation page

PeopleSoft Asset Management provides an optional Capitalization Threshold feature that, once enabled, can automatically determine capitalization status of an asset, by profile, based on its cost or quantity according to limits that you define. The system classifies assets as capital, noncapital, or expense. The Clearing Reconciliation process (AM_CLEREC) provides a way to reconcile accounting entries for expensed assets.

See Capitalization Thresholds Page.

When assets came from other sources, a debit is usually recorded to a fixed asset account and a clearing account is credited that was previously debited in the source system. When an asset is deemed trackable because of the specified threshold, the asset ID is generated but no accounting activities take place. This reconciliation process provides a way to balance out the clearing account that was debited in the source system and debit the expense account instead. This is not applicable to expensed (trackable) assets that are entered directly in Asset Management with no clearing account.

Enter the parameters and run the process. The system searches noncapital assets for the specified parameters in the acquisition detail. For each noncapital row that matches the system source, the following entry is generated in the DIST_LN table:

Debit

Credit

Distribution Type

Expense Account

EX

Clearing Account

AP