Understanding Accounting Entry Setup

This topic discusses:

Business unit and book accounting entry options.
Accounting entry templates.
Depreciation close status.

Business unit and book accounting entry options are defined in the Establish Business Units component, and they control which business unit book is used to create accounting entries. Select one book for each business unit to create accounting entries.

Note: When processing accounting entries, you should understand the relationship between PeopleSoft Asset Management business units and PeopleSoft General Ledger business units. If you are using different business units for the applications because you use multiple ledgers, you must be sure to specify the ledger. The ledger is required when you are searching on the Asset Journals page. Failing to enter the value generates an error, and the journal lines for business units that are different do not appear, even though the PeopleSoft Asset Management entries are generated and posted to the journal tables.

See Understanding Asset Management Business and Cash Generating Units.

The accounting entry template is the central table that the system uses to create accounting entries, which are the basis for general ledger journals. The accounting entry template defines accounting entry types based on asset category, cost type, transaction type, transaction code, and accounting entry template ID. For each accounting entry type, you specify:

The accounts to use during accounting entry.
The journal template to use for recording actual transactions.
The budget journal template to use to record budget transactions.

When you add an accounting entry template in PeopleSoft Asset Management, the system populates it with standard accounting entry types (distribution types), based on the asset category, cost type, and action that is specified for all supported features that require accounting types.

If impairment and revaluation options are enabled at the installation level, you can specify within the cost type definition if you want to enable a given cost type for impairment or revaluation processing. If enabled, the system displays the appropriate impairment and revaluation related accounts at the Accounting Entry Template level.

Use the features within the Accounting Entry Template ID component to define accounting entry template IDs that include or exclude the appropriate accounting entry (distribution) types for each type of transaction. The accounting entry template IDs can be associated with business unit-level features such as the Book Code feature, the Derogatory Depreciation feature, the Like Kind Exchange feature, and the Revaluation feature.

Accounting entry types are delivered with the PeopleSoft system, and each asset event has an associated set of accounting entry types. For each combination of category, cost type, transaction code, and accounting entry template ID, you must set up an accounting entry template for the following transaction types:

Transaction Type	Description
AA	Accumulated amortization
ADD	Additions.
ADJ	Adjustments.
LN	Lease incentive.
LR	Lease remeasurement
TRF	Transfers.
RCT	Recategorizations.
DPR	Depreciation expense.
PDP	Prior period depreciation.
RE	Rent expense.
RET	Retirements (also used for processing reinstatements).
RT	Rent expense contra.
LPY	Lease payments.
INF	Inflation adjustment.
LEX	Lease expense.

Note: If you enter a transaction into the system with a combination of category, cost type, transaction code, and accounting entry template ID for which no accounting entry template exists, the accounting entry process will fail the next time it is run.

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

Accounting Entry Types (Distribution Types)

Asset Management creates accounting entries by using standard accounting entry types (distribution types), based on the asset category, cost type, and action that is specified for all supported features that require accounting entry types. The following tables list the accounting distribution types that are associated with each accounting entry feature.

Following are the distribution types for the ADD (addition) transaction type (if there is no 'X' for a distribution type (blank), that type is not applicable for the listed feature):

Type	Description	Basic	Expensed Asset	Lease	Derogatory	Like Kind Exchange	Revaluation
AD	Accumulated Depreciation	X					X
AP	Contra Asset	X	X				X
DD	Accumulated Derogatory Depreciation				X
DE	Depreciation Expense	X					X
DR	Derogatory Depreciation Reversal				X
DX	Derogatory Depreciation Expense				X
EX	Expense		X
FA	Fixed Asset	X					X
IV	Investment Property	X					X
IX	Investment Property Accumulated Depreciation Adjustment	X					X
LO	Lease Obligation			X
TI	Trade In	X					X
UR	Unrecognized Gain/Loss					X	X
RL	Recognized Loss					X	X
PR	Provision for Revaluation						X

Following are the distribution types for the ADJ (adjustment) transaction type:

Type	Description	Basic	Expensed Asset	Lease	Derogatory	Revaluation
AD	Accumulated Depreciation	X				X
AP	Contra Asset	X	X			X
DD	Accumulated Derogatory Depreciation				X
DE	Depreciation Expense	X				X
DR	Derogatory Depreciation Reversal				X
DX	Derogatory Depreciation Expense				X
EX	Expense		X
FA	Fixed Asset	X				X
IV	Investment Property	X				X
LO	Lease Obligation			X
PG	Investment Property Gain	X				X
PL	Investment Property Loss	X				X
PR	Provision for Revaluation					X
RD	Reversal of Depreciation					X
IM	Impairment Loss	X				X
IN	Impairment Contra					X

Here are the distribution types for the TRF (transfer) transaction type:

Type	Description	Basic	Derogatory	Like Kind Exchange	Revaluation
AD	Accumulated Depreciation	X		X
DD	Accumulated Derogatory Depreciation		X
DR	Derogatory Depreciation Reversal		X
DX	Derogatory Depreciation Expense		X
FA	Fixed Asset	X		X
IV	Investment Property	X		X
PR	Provision for Revaluation				X
RC	Provision for Revaluation Contra				X

Here are the distribution types for the RCT (recategorize) transaction type:

Type	Description	Basic	Derogatory	Like Kind Exchange	Revaluation
AD	Accumulated Depreciation	X		X
DD	Accumulated Derogatory Depreciation		X
DR	Derogatory Depreciation Reversal		X
DX	Derogatory Depreciation Expense		X
FA	Fixed Asset	X		X
IV	Investment Property	X		X
PR	Provision for Revaluation				X
RC	Provision for Revaluation Contra				X

Here are the distribution types for the RET (retire) transaction type:

Type	Description	Basic	Lease	Derogatory	Like Kind Exchange	Revaluation
AD	Accumulated Depreciation	X
AP	Contra Asset				X
BI	Proceeds to Billing Account	X (If Billing is installed)
CA	Proceeds	X
DD	Accumulated Derogatory Depreciation			X
DR	Derogatory Depreciation Reversal			X
DX	Derogatory Depreciation Expense			X
FA	Fixed Asset	X
GA	Gain	X
GL	Loss	X
IV	Investment Property	X
LG	Lease Guarantee Contra		X
LO	Lease Obligation		X
LU	Lease Guarantee Obligation		X
MA	Mortgage - Others				X
ML	Mortgage - Comp				X
NV	Net Book Value			X
PR	Provision for Revaluation					X
RC	Provision for Revaluation Contra					X
RD	Reversal of Depreciation					X
RG	Recognized Gain				X
RM	Removal Contra	X
SL	Sales of Fixed Asset			X
TI	Trade In	X
UG	Unrealized Gain				X
UL	Unrealized Loss				X

Here are the distribution types for the DPR (depreciation) transaction type:

Type	Description	Basic	Derogatory	Revaluation
AD	Accumulated Depreciation	X		X
DD	Accumulated Derogatory Depreciation		X
DE	Depreciation Expense	X		X
DR	Derogatory Depreciation Reversal		X
DX	Derogatory Depreciation Expense		X
RC	Provision for Revaluation Contra			X
RD	Reversal of Depreciation			X

Here are the distribution types for the PDP (prior period depreciation) transaction type:

Type	Description	Basic	Derogatory	Revaluation
AD	Accumulated Depreciation	X
DD	Accumulated Derogatory Depreciation		X
DE	Depreciation Expense	X
DR	Derogatory Depreciation Reversal		X
DX	Derogatory Depreciation Expense		X
RC	Provision for Revaluation Contra			X
RD	Reversal of Depreciation			X

Here are the distribution types for the LPY (lease payment) transaction type:

Type	Description	Lease
LC	Lease Interest Contra	X
LI	Lease Interest	X
LO	Lease Obligation	X
LP	Lease Obligation contra	X
VE	Variable Lease Expense Debit	X
VC	Variable Lease Expense Contra	X

Here are the distribution types for the INF (inflation) transaction type:

Type	Description	Basic
IA	Inflation Accum Depr	X
IB	Inflation Accum Depr	X
IC	Inflation Cost Adjustment	X
ID	Inflation Cost Adjustment	X
IG	Inflation Gain	X
IL	Inflation Loss	X
IP	Inflation Period Depr	X
IQ	Inflation Period Depr	X
IY	Inflation YTD Depr	X
IZ	Inflation YTD Depr	X

See Defining Accounting Entries.

See Creating PeopleSoft Asset Management Business Units.

You can run the Depreciation Close process only in an open period. You use the Business Unit/Book Definition page to determine which accounting periods have been closed. Select Depreciation Closed List to display all closed periods.

Note: Open and close accounting periods are maintained in General Ledger and migrated with 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.

See Defining and Updating Open Periods and Adjustment Periods.

See Open Period Update Page.

Understanding Accounting Entry Setup

Business Unit and Book Accounting Entry Options

Accounting Entry Templates

Accounting Entry Types (Distribution Types)

Depreciation Close Status