Processing Facilities and Administration Costs and Adjustments
This topic provides an overview of processing facilities and administration (F&A) costs and adjustments, and discusses the pages required to process F&A costs and adjustments.
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Page Name |
Definition Name |
Usage |
|---|---|---|
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RUN_GM_FA |
Process F&A costs. |
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|
GM_FA_INQ |
Display information about F&A errors. |
|
|
RUN_GM_RTRO_FA |
Generate F&A adjustment transactions and post transactions to the Grants, Contracts, and Project Costing tables. |
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GM_RFA_REVIEW |
Review generated F&A adjustment transactions and post the approved transactions to the Grants, Contracts, and Project Costing tables. |
This topic discusses:
F&A cost calculations.
Analysis types and cost sharing.
F&A processing.
Waived and cost-shared F&A lines.
How PeopleSoft Grants uses F&A rates at the post-award activity level.
F&A Cost Calculations
PeopleSoft Grants is delivered with a process that automatically calculates and stores F&A costs on all sponsor-funded amounts. You can also calculate waived and cost-shared F&A amounts.
The system processes PeopleSoft Grants lines based upon three criteria:
Grants check box.
When you establish a project, select the GM Object in the Grants Project field on the Project Definition page to indicate that the project is related to PeopleSoft Grants rather than to PeopleSoft Project Costing. The F&A process computes only PeopleSoft Grants-related lines.
F&A status (FA_STATUS).
When the system processes PeopleSoft Grants lines, it updates the FA_STATUS to prevent lines from being reprocessed. The process selects only those lines with an F&A status of N or with a blank status line. If you enter a line directly into the PeopleSoft Grants system, its default F&A status is N; however, the feeder systems don't assign a value to FA_STATUS, so all lines that come from feeder systems have a blank value.
FNA (facilities and administration) analysis group.
The F&A process selects its data based on analysis types that you include in the FNA analysis group. For example, if you want to calculate F&A on all lines initiating from the PeopleSoft Time & Labor and Accounts Payable applications, include PAY and ACT analysis types in the FNA analysis group. If you use an analysis group other than FNA, you must modify the process for it to run properly.
Analysis Types and Cost Sharing
PeopleSoft Grants enables you to select the analysis type with which a line is stamped when it comes into PeopleSoft Grants from a feeder system.
Observe these guidelines when using analysis types and cost sharing in PeopleSoft Grants:
Define analysis types on the Analysis Types page
To facilitate cost-sharing analysis and reporting, stamp incoming cost-sharing lines with unique analysis types.
Define cost-sharing analysis types on the Installation - Grants page
To determine which lines the system processes for F&A, group analysis types into analysis groups.
PeopleSoft Grants has hard-coded the FNA analysis group in the F&A process, so you should use this analysis group to group all F&A analysis types.
F&A Processing
Here is some general information about how the system processes F&A transactions:
The F&A process calculates F&A amounts at the transaction line level based on actual expense transaction amounts, F&A bases, and F&A rates.
You establish default bases and rates in the Maintain Institution and Maintain Sponsor components.
The system, however, ultimately uses the information on the Project Activity F&A Rates page for the actual computation.
The system uses the accounting date on the original transaction line to find the appropriate effective date and rate for the F&A calculation.
When the system processes a transaction for F&A, it updates the FA_STATUS to D to prevent it from re-extracting the same lines.
The process calculates F&A amounts for all sponsor-funded actual costs (this amount is stored in PeopleSoft Grants and PeopleSoft General Ledger).
For additional reporting and analysis, you can calculate F&A costs on waived and cost-shared amounts (these amounts are stored only in PeopleSoft Grants).
The process creates the various F&A lines in using this code:
Funded F&A Base x Funded F&A Rate = Sponsor F&A (Analysis Type SFA)The system creates the Sponsor F&A line with all of the ChartFields from the original line and replaces the account with the F&A account that you define on the F&A Options page
The system creates offset lines for the sponsor F&A line based on the department distribution percentages that you establish on the Project Department page and on the offset ChartFields that you define on the F&A Offset page
The business unit and project appear by default from the original transaction.
The system populates the account from the offset account value in the F&A Options page and populates all other ChartFields based on the values that you enter on the F&A Offset page.
The F&A process calls the Inter/IntraUnit processor and, based on the established balancing rules, gets any required due to and due from lines.
The system stores all F&A lines in PeopleSoft Grants and PeopleSoft General Ledger.
If you select the Edit Combinations check box on the Projects Options page the F&A process validates combination edits. The combination edit process is optional.
Based on the selections that you make within the Installed Products page the F&A process can be subject to commitment control.
If you elect to use PeopleSoft Commitment Control, the F&A expense lines are always budget-checked. In addition, you may also budget-check the revenue offset lines.
Waived and Cost-Shared F&A Lines
Here is some general information about how the system processes waived and cost-shared F&A lines:
In addition to computing sponsor-funded F&A, you can calculate waived and cost-shared F&A lines.
Define these options at the business unit level.
(Institution Base x Institution Rate) - (Funded Base x Funded Rate) or (Sponsor Base x Sponsor Rate) - (Funded Base x Funded Rate) = Waived F&A (Analysis Type WFA)The selection that you make in the Waived FA Calc Method group box on the Project Activity - Definition page determines whether the system calculates this amount using institution or sponsor information.
The WFA (waived facilities and administration) amount has no offset line and is stored only in the PeopleSoft Grants tables.
This computation captures the difference between the amount of F&A that could have optimally been recovered and the amount that was actually awarded by the sponsor.
(Cost Shared Amount x Institution Rate) or (Cost Shared Amount x Sponsor Rate) = Cost Shared F&A (Analysis Type CFA)The cost-shared F&A calculation is based upon whether you select the institution or sponsor option on the Project Activity - Definition page.
The CFA (cost share facilities and administration) line has no offset and is stored only in the PeopleSoft Grants tables. This computation allows for the full costing of grants expenditures.
PeopleSoft Grants stamps all F&A lines with the resource ID from the original transaction.
This provides a link between direct and F&A costs. The Resource ID From field contains this resource ID.
The system stores all lines created by the F&A process in an audit table that you can use for reconciliation and audit purposes.
The system stores all lines that fail the F&A process in an error table that you can use to make corrections.
You can view the error log online through the FA Error Interactive Report page
How PeopleSoft Grants Uses F&A Rates at the Post-Award Activity Level
The F&A Rates page stores the F&A bases and rates that the F&A process uses. Here's how the system uses F&A rates in post-award processing:
When you receive an award based on an existing proposal, the bases, rate type, effective dates, and rates appear by default from pre-award data in the system.
If you establish an award without performing the usual pre-award proposal procedures, the effective dates and rates appear by default based on the rate type that you enter manually.
You must make any other modifications, such as no-cost extensions and continuations, manually.
Note: Never select the same base for two different rate types under the same activity. Likewise, if you establish a base tree with duplicate accounts, never define two bases that contain the same account under the same project activity.
Throughout the life of a grant, you may find that you need to update the F&A rate associated with the grant due to a change in the agreement with a sponsor, a correction of an erroneous rate, or for other reasons. When this occurs, you must adjust the rate on the Project Activity - FA Rates page, recalculate the F&A costs, create adjustment bills, and adjust revenue figures.
PeopleSoft Grants provides you with F&A adjustment processing that enables you to:
Effective date the departmental percentage (pledged) on the Project Department page, enabling the F&A adjustment process to create accurate revenue offset entries based on the accounting date.
Process F&A adjustments based on new or updated F&A bases and F&A rates.
Generate F&A adjustment transactions for a single grant, project, activity or business unit.
Note: When Commitment Control is enabled for Grants and Project Costing, adjustment transactions are processed through Commitment Control and checked against control budgets.
Review F&A adjustment transactions prior to posting, with the ability to approve or delete the transactions.
Automatically post the approved F&A adjustment transactions to the Grants, Contracts, and Project Costing tables.
For more information, see:
Project Activity - FA Rates Page
Project - Project Department Page
Process Facilities Admin Adjustments Page
Facilities Admin Adjustments Review Page
Prerequisites
(Optional) Before using the Process Facilities Admin Adjustments page to generate F&A adjustment transactions, you may choose to set up a summarization template to identify the fields and level of summarization that the system should use when generating adjustment transactions.
If you do not define a summarization template, the system attempts to group transactions to create delta adjustments based on a list of predetermined fields, including the GL chartfields.
For more information, see:Summarization Template Page
Steps to Process F&A Adjustments
To process F&A adjustments:
Adjust the appropriate rate on the Project Activity - FA Rates page.
Generate F&A adjustment transactions using the Process Facilities Admin Adjustments page.
You can use the Process Facilities Admin Adjustments page to post F&A adjustment transactions to the Grants, Contracts, and Project Costing tables. Or you can send the transactions to the GM_RFA_STAGE_PR staging table for review and approval using the Facilities Admin Adjustments Review page.
Whether the adjustment transactions are posted directly to the permanent tables or the staging table, they are first processed through Commitment Control and checked against control budgets (when Commitment Control is enabled for Grants and Project Costing).
(Optional) Review F&A adjustment transactions and post the approved transactions to the Grants, Contracts, and Project Costing tables using the Facilities Admin Adjustments Review page.
For more information, see:
Project Activity - FA Rates Page
Use the Process Facilities Admin (process facilities administration) page (RUN_GM_FA) to process F&A costs.
Navigation:
This example illustrates the fields and controls on the Process Facilities Admin page. You can find definitions for the fields and controls later on this page.
Here is how the system processes F&A information from this page:
This run control page triggers a PeopleSoft Process Scheduler request. You can process the F&A using the All value in the Date Option field.
You can automate this request to run at certain times, such as on the 15th of every month; however, you must coordinate running this process with running other processes in your financials systems.
No upper limit is made to F&A amounts in PeopleSoft Grants; the budget checking process ascertains whether you have the funds, and that is the only validation.
After you run the F&A process in PeopleSoft Grants, run the Journal Generator to send sponsor F&A, its offsets, and any due to and due from lines to PeopleSoft General Ledger.
When the lines are in PeopleSoft General Ledger, you need to edit them and post them to a ledger.
Field or Control |
Description |
|---|---|
Exception Accounting Date |
Select to specify an accounting date other than the current date for F&A processing. When you select this option, a field appears in which you can select a date. The system assigns the date that you specify to all F&A lines created from this run control page. |
Use the FA Error Interactive Report (facilities administration error interactive report) page (GM_FA_INQ) to display information about F&A errors.
Navigation:
This example illustrates the fields and controls on the FA Error Interactive Report page. You can find definitions for the fields and controls later on this page.
Use the fields appearing in the Search Criteria for FA Error group box to search for errors in the F&A process. Click Search.
If errors occur during the F&A process for a particular business unit, project, or activity, it displays the information in the Facilities and Administration Inquiry group box.
Select the ID tab to view the business unit, project, activity, analysis type, and transaction ID.
Select the Chartfields tab to view the GL business unit, department, account, operating unit, fund, program, class, budget reference, product, affiliate, fund affiliate, and operating unit affiliate where the error occurred.
Select the Date and Amount tab to view the transaction date, accounting date, and amount. To view the budget status and error status, select the Errors tab.
Select the Errors tab to view the status of the error and the process instance to use to research the error that occurred when the Process Facilities Admin process was run.
Use the Process Facilities Admin Adjustments page (RUN_GM_RTRO_FA) to generate F&A adjustment transactions.
Navigation:
Process Facilities Admin Adjustments page
Use the Run button to automatically generate F&A adjustment transactions based on the selection criteria you define on this page:
If you selected the Requires Approval option, the adjustment transactions are sent to the GM_RFA_STAGE_PR staging table for review and approval using the Facilities Admin Adjustments Review page. If you did not select the Requires Approval option, the adjustment transactions post directly to the Grants, Contracts, and Project Costing tables.
If you selected the Requires Approval option to load adjustment transactions into the GM_RFA_STAGE_PR staging table, the RUN_GM_RTRO_FA process deletes any matching transactions already stored in the staging table. In other words, the process will not allow duplicate transactions to be generated and deletes any matching transactions from the staging table.
Whether the adjustment transactions are posted directly to the permanent tables or the staging table, they are first processed through Commitment Control and checked against control budgets (when Commitment Control is enabled for Grants and Project Costing).
Application Options
Use the fields in the Application Options group box to identify specific transactions for which you want to recalculate F&A costs and generate adjustment transactions.
Output Options
The Description, Accounting Date Option, and Accounting Date fields in the Output Options group box enable you to define display attributes for the adjustment transactions. The values you enter for these fields are stamped on the final adjustment transactions. If you leave these fields empty, the adjustment transactions use the description from the original source transaction.
Select the Requires Approval option to require that the adjustment transactions are sent to the GM_RFA_STAGE_PR staging table for review and approval using the Facilities Admin Adjustments Review page. If you select this option, the transactions will not immediately post to the Grants, Contracts, and Project Costing tables.
Select the Purge Existing Pending Approval option to delete all transactions in the staging table (GM_RFA_STAGE_PR).
Use the Facilities Admin Adjustments Review page (GM_RFA_REVIEW) to review F&A adjustment transactions and post the approved transactions to the Grants, Contracts, and Project Costing tables.
Navigation:
Facilities Admin Adjustments Review page
This page enables you to review generated F&A adjustment transactions stored in the GM_RFA_STAGE_PR staging table, mark transactions as Approved or Delete, and insert approved transactions into permanent Grants, Contracts, and Project Costing tables.
Use the Business Unit, Project, Activity, Award Business Unit, Contract, Customer ID, and Data Option fields to search for specific adjustment transactions. You can also use the Select Project Activities link as a component of your search criteria.
After inputting your search criteria, click the Search button to have search results appear in the F&A Adjustments Detail group box.
Use the Project Costing and Additional tabs in the F&A Adjustments Detail group box to review the F&A adjustment transactions:
Only sponsor F&A transactions are selectable, non sponsor transactions cannot be selected.
Select a transaction to set its approval status to Approved or Delete.
Non sponsor F&A transactions that are related to the sponsor F&A transaction inherit the approval status of the sponsor F&A transaction.
Related transactions are those that share the same ‘RESOURCE_ID_FROM’ value.
Select an approval status for the F&A adjustment transactions. You can choose from:
Approved: Transactions marked approved are eligible for insertion into permanent Grants, Contracts, and Project Costing tables.
Delete: Transactions marked ‘delete’ are eligible for deletion from the GM_RFA_STAGE_PR staging table, pending the successful completion of commitment control reversal (when Commitment Control is enabled for Grants and Project Costing). If the transaction fails commitment control reversal, it remains in the staging table with a delete status. In order for the transaction to be deleted, you must first complete the reversal through commitment control. If Commitment Control is not enabled, transactions marked ‘delete’ are immediately deleted from the staging table when you process the transactions.
Use the Update button to apply an approval status to the selected transaction and its related transactions.
Use the Process Transactions button to move approved transactions from the staging table to the permanent tables and delete those transactions marked as such from the staging table. The Process Transactions button calls the GM_RTRO_FA process.