Managing Different GAAPs in One Ledger
The method described here creates subsets of a ledger and enables you to simultaneously enter transactions to the subsets while maintaining their balances according to the accounting principles applicable to each subset.
To manage different GAAPs in one ledger, use these components: Installation Options (INSTALLATION), Book Code (BOOK_CODE, Ledger Codes (LEDGER_CODE),Adjustment Type (ADJUST_TYPE), Open Period Update (OPEN_PERIOD_UPDATE), Account (GL_ACCOUNT).
Use the ACCOUNT_CF component interface to load data into the tables for the Account component.
See Enterprise PeopleTools Documentation: PeopleSoft Setup Manager
This section discusses how to work with book codes, adjustment types, ledger codes and open periods.
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Page Name |
Definition Name |
Usage |
|---|---|---|
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INSTALLATION_FS1 |
Activate or deactivate Book Code as attribute. |
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OPR_DEF_TABLE_GL1 |
Enable the adjustment type to appear on the Create Journal Entries - Header page. |
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BOOK_CODE |
Identify subsets of ledger rows to segregate and maintain (in the same ledger) various accounting, recording and reporting requirements for transactions in different accounting environments. |
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GL_ACCOUNT |
Set up new account ChartField values and attach a book code as an attribute to the value. |
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LEDGER_CODE |
Assign book codes to ledger codes to create subsets of a detail ledger to record various required accounting treatments of a transaction that you want to record in a separate balancing set of accounts within the same ledger and business unit. |
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ADJUST_TYPE |
Define adjustment types associated with varying accounting treatments of prior period adjustments. |
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OPEN_PERIOD_SINGLE |
Open and close periods and adjustment periods and assign ledger codes and adjustment types. |
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BUSINESS_UNIT_LED1 |
Enable Update Open Periods by ledger code for detail ledgers for multiple GAAPs using book codes. |
Use the Installation Options - Overall page (INSTALLATION_FS1) to activate or deactivate Book Code as attribute.
Navigation:
Field or Control |
Description |
|---|---|
Active |
Select this check box in the Account Balancing Attributes group box to use book code as an account attribute. |
Use the User Preferences - General Ledger page (OPR_DEF_TABLE_GL1) to enable the adjustment type to appear on the Create Journal Entries - Header page.
Navigation:
Field or Control |
Description |
|---|---|
Enter Adjustment Type Journal |
Select this check box to display and use the Adjustment Type field on the Create Journal Entries - Header page. |
You can use the book code ChartField as an attribute to segregate local accounts from corporate accounts when there is divergence in accounting principles and to identify accounts if there is convergence of rules. For example, this table illustrates three possible permutations within one chart of accounts dictated by different accounting rules for a local and a corporate entity.
|
SetID |
Book_Code |
Description |
Short Description |
|---|---|---|---|
|
SHARE |
L |
Local Only |
Local |
|
SHARE |
C |
Corporate Only |
Corp |
|
SHARE |
B |
Both |
Both |
In this scenario, you record some transactions using the Local Only accounts, others using Corporate Only accounts, and some transactions that are compatible with both local and corporate accounting principles or are so related that they are necessarily recorded using the accounts in the Both category.
Local Only entries must balance within their book code.
Corporate Only entries must balance with other Corporate Only entries (within the Corporate Only book code).
Entries that meet both local and corporate accounting rules must balance with other both entries.
All processes that create balanced journal entries must adhere to these requirements.
Use the Account page (GL_ACCOUNT) to set up new account ChartField values and attach a book code as an attribute to the value.
Navigation:
Book Code is a balancing ChartField that you can add as an attribute of the Account ChartField to segregate accounts into various categories within one ledger. In this case it is used to group accounts within one ledger to serve various divisional or GAAP requirements.
Use the Ledger Code page (LEDGER_CODE) to assign book codes to ledger codes to create subsets of a detail ledger to record various required accounting treatments of a transaction that you want to record in a separate balancing set of accounts within the same ledger and business unit.
Navigation:
Use this page to create ledger codes and assign to them the applicable book codes to define subsets that segregate various accounting treatments of transactions.
Define ledger codes in which to group book codes to create subsets of a ledger. Each subset can represent a balance maintained according to accounting principles imposed on either a local or corporate entity. Each ledger code can contain one or more book codes as in this example:
|
SetID |
LEDGER_CODE |
BOOK_CODE |
Description |
|---|---|---|---|
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SHARE |
HQ |
B |
Headquarters Ledger Code |
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SHARE |
HQ |
C |
Headquarters Ledger Code |
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SHARE |
REG |
B |
Regulatory Ledger Code |
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SHARE |
REG |
L |
Regulatory Ledger Code |
Use the Adjustment Type page (ADJUST_TYPE) to define adjustment types associated with varying accounting treatments of prior period adjustments.
Navigation:
Define an adjustment type for each combination of ledger code and book code that share accounts with other ledger code and book code combinations involving different accounting rules (multiple GAAPs) that specify different rules for different closing dates and prior period adjustments.
Use the Open Period Update page (OPEN_PERIOD_SINGLE) to open and close periods and adjustment periods and assign ledger codes and adjustment types.
Navigation:
Field or Control |
Description |
|---|---|
Open Period(s) |
Associate Ledger Code and Adjust Type (adjustment type) with open periods and specify the open From and To dates for the period. |
Ledger Code |
Associate a Ledger Code and an Adjust Type (adjustment type) with one or more selected open periods and specify the open From and To dates for the period. |
Adjust Type (adjustment type) |
Associate an adjustment type with a ledger code with one or more selected open periods. Also, specify an adjustment type for a ledger code when its period closes earlier than that for other ledger codes within the same ledger. |
From Year, From Period, To Year, To Period |
Select the open period range that apply to these transaction codes. |
Note: The Ledger Code and Adjust Type fields only appear if you activated book codes in the Installation Options - Overall page, selected Enter Adjustment Type Journal in the User Preferences - General Ledger page, selected Update Open Periods by Ledger Code on the Ledger For A Unit - Definition page for detail ledgers.
Use the Ledgers For A Unit - Definition page (BUSINESS_UNIT_LED1) to enable Update Open Periods by ledger code for detail ledgers for multiple GAAPs using book codes.
Navigation:
Field or Control |
Description |
|---|---|
Update Open Periods |
Select By Ledger Code, if you elect to open and close periods by ledger code. If book code is not selected as an installation option on the Installation Options Overall page, the Update Periods by Ledger Code option will not be available and you can only open or close periods By Ledger Group. Note: Once you have decided to use the book code feature do not change it from on to off in the normal course of operations. However, this might occur at installation or first use of the feature. The update open periods function and book code options work together, if you change the book code option, then a corresponding change and save to open period is necessary. |