Creating Accounting Entries
The parameters for the Accounting Line Creation process are defined on the Cost Accounting Creation process page. The Accounting Line Creation job performs up to three processes in this order:
Field or Control |
Description |
|---|---|
Create Accounting Lines (CM_ACCTGLINE) |
This PeopleSoft Application Engine process retrieves costed transactions and finds the correct ChartField combinations to use for the debit and credit lines of each accounting entry. Results are stored in the CM_ACCTG_LINE table. |
Commitment Control Budget Processor (FS_BP_PROC) |
This process performs budget checking against the rows in CM_ACCTG_LINE table. Results are stored in the CM_ACCTG_LINE table. The BUDGET_HDR_STATUS and BUDGET_LINE_STATUS fields display the current budget checking state of the accounting entry. Budget checking does not apply to manufacturing transactions. |
Acquire IntraUnit Entries (CM_IU_ACCTG) |
This PeopleSoft Application Engine process calls the IU_PROCESSOR process which in turn creates balancing entries for intraunit transactions in the CM_ACCTG_LINE table. If commitment control is turned on for PeopleSoft Inventory, then the accounting entry must pass budget checking successfully before ChartField balancing is done. This process picks up any row with a status of N (not balanced) or E (error) in the CM_IU_STATUS field and attempts to create the balancing entries. The results are stored back in the CM_ACCTG_LINE table with a status of B (balanced), X (balancing not required), or E (error). |
Once the Accounting Line Creation process completes the preceding steps, the process verifies that the accounting entries were created for the debit and credit sets without error and the budget checking and ChartField balancing have been successfully completed or not required. The process then changes the GL_DISTRIB_STATUS of the transaction to N (none). With an N status, the transaction can now be picked up from the CM_ACCTG_LINE table by the Journal Generator process and sent to the general ledger system.
Numbering Sequence of the Accounting Lines
Within the Accounting Line Creation process, a substantial reduction in processing time can be achieved by using set-based processing to number the lines of the newly-created accounting entries. As delivered, the system uses row-by-row processing to create the sequential accounting line numbers. By performing additional set up steps you can switch from row-based processing to set-based processing to generate the line numbers. The set-based approach is optional. The delivered default option is the row-by-row approach.
Using the set-based processing method to generate the sequential accounting line number is significantly faster than row-based processing. However, set-based processing can produce gaps in numbering. For example, within one accounting entry with four lines, the lines can be numbered 1, 5, 6, and 11, rather than 1, 2, 3, and 4.
The Accounting Line Creation process retrieves costed transactions and finds the ChartFields to use for the debit and credit lines of each accounting entry. The results are stored in the CM_ACCTG_LINE table. The process always uses the date and time of the transaction and not the transaction date that was entered. Accounting entries can be manually back dated using the Edit Unposted Accounting Lines page.
The Accounting Line Creation process searches for the correct ChartField information to build the accounting entry lines. The system searches for the ChartFields based on this logic starting with the first step and continuing until a match is found:
If the transaction is an interunit transfer of inventory stock, then the ChartFields to define the intransit account, interunit receivables, and interunit payables balancing entries are derived from the method that you selected for interunit accounting.
The other parts of the accounting entries are derived from these pages.
If location accounting is used for the storage areas or production areas, the system first searches for the correct Storage Area Accounting page or Production Area Accounts page.
When the entries on these pages match the same key fields on the transaction, then the correct ChartFields are found to build the accounting entry. Often, these pages define just one side of the accounting entry and the other side is derived from the Accounting Rules page or the interunit transfer method. The system searches for the page by starting with the first rule and continuing until a match is found:
Rule
Unit
Area
Cost Element
1
Business Unit
Storage Area or Production Area
Cost Element
2
Business Unit
Storage Area or Production Area
Blank
The Accounting Line Creation process uses the Accounting Rules page (Account Distribution page) with the most specific information matching the transaction. There are some situations where more than one Accounting Rules page can match the transaction. In this case, the search for the correct Accounting Rules page uses the logic in this table starting with the first rule and going through all twelve rules. The system uses the first rule encountered that matches the transaction.
Rule
Unit
Trans Group
Item ID
Item Group
Distrib Type
Cost Element
1
Business Unit
Transaction Group
Item ID
Blank
Distribution Type
Cost Element
2
Business Unit
Transaction Group
Item ID
Blank
Distribution Type
Blank
3
Business Unit
Transaction Group
Item ID
Blank
Blank
Cost Element
4
Business Unit
Transaction Group
Item ID
Blank
Blank
Blank
5
Business Unit
Transaction Group
Blank
Item Group
Distribution Type
Cost Element
6
Business Unit
Transaction Group
Blank
Item Group
Distribution Type
Blank
7
Business Unit
Transaction Group
Blank
Item Group
Blank
Cost Element
8
Business Unit
Transaction Group
Blank
Item Group
Blank
Blank
9
Business Unit
Transaction Group
Blank
Blank
Distribution Type
Cost Element
10
Business Unit
Transaction Group
Blank
Blank
Distribution Type
Blank
11
Business Unit
Transaction Group
Blank
Blank
Blank
Cost Element
12
Business Unit
Transaction Group
Blank
Blank
Blank
Blank
ChartFields entered directly on the transaction override these rules. Often, this is just one side of the accounting entry.
Note: If the accounting pages have not been defined correctly, then the effected transactions are written to the error table. To view any errors occurring in the CM_ACCTG process, use the Accounting Line Errors page.
Commitment control enables you to check expenditures against a predefined budget. In PeopleSoft Cost Management, these expenditures typically occur when you expense inventory material to a department or expense account. Commitment control considers actual expenditures and imminent future obligations (encumbrances and pre-encumbrances). The option to use commitment control must be selected at both the installation and ledger group level. In multibook environments, only the primary ledger transactions should be checked against control budgets.
Note: Commitment control does not apply budget checking to manufacturing transactions.
If you are using commitment control, the accounting entries must pass budget checking before you can pass them to the general ledger system using the Journal Generator process. If you select the Budget Check Accounting Lines check box on the Accounting Line Creation process page, then the Commitment Control Processor process runs on the accounting lines in the CM_ACCTG_LINE table with a BUDGET_LINE_STATUS of N (not budget checked) or E (error in budget check). Once the line passes budget checking, the status changes to V (valid budget check). Entries that do not pass budget checking appear on the CM Transaction Exceptions - Header Exceptions page, where you can resolve the error status by adjusting or redirecting charges to alternate accounts or changing budget periods for the transactions if authorized to do so.
Note: The Budget Processor process (FSBKBDP3) considers all of the accounting lines in a transaction set together. If one accounting line fails the budget check, the Budget Processor process rejects the entire transaction set.
Commitment Control Statuses
The header of the transaction can have these statuses in the BUDGET_HDR_STATUS field:
|
Status |
Description |
|---|---|
|
N |
Not budget-checked. |
|
E |
Error: The transaction fails budget checking and does not update the control budget. |
|
V |
Valid: The transaction passes budget checking with no errors or warnings and updates the control budget. If commitment control is turned off, all transaction lines are set to V. |
The transaction line can have these statuses in the BUDGET_LINE_STATUS field:
|
Status |
Description |
|---|---|
|
N |
Not budget checked. |
|
E |
Error: The transaction line fails budget checking and does not update the control budget. |
|
W |
Warning: The transaction line completes budget checking successfully, but the transactions have warning exceptions. The transaction updates the control budget. The warnings can range from an overridden error to mismatched budget and accounting dates. It issues a warning if the transaction is over the budget amount but less than the tolerance amount. |
|
V |
Valid: The transaction line passes budget checking with no errors or warnings and the process creates the journal line for the control budget ledger. If commitment control is turned off, all transaction lines are set to V. |
The statuses in the CM_IU_INDICATOR field tell the Commitment Control Processor process whether to pick up the line. If you use the centralized interunit and intraunit processor to create intraunit ChartField balancing entries, then these accounting lines do not need to be budget checked.
|
Status |
Description |
|---|---|
|
N |
Not created by the central processor. This transaction is picked up by the Commitment Control Budget Processor process. |
|
Y |
Created by the central processor. The Commitment Control Budget Processor process is skipped. The budget statuses are set to V. |
Intraunit processing, or fund balancing, creates balancing entries for transfers between ChartFields (such as Fund) within the same business unit. Intraunit balancing can be performed on any ChartField within the business unit except Account. The ChartField Balancing process (CM_IU_ACCTG) compares debit and credit ChartFields (except Account) for the same item and cost element. If the ChartFields are not the same, the interunit receivable and interunit payable accounting entry is created. For example, suppose that these transactions are entered for the same item and cost element. The system is set up for intraunit balancing on the fund ChartField. The interunit receivable account is 4003 and the interunit payable account is 4002 for this transaction:
|
|
Account |
Fund |
Dept ID |
Program |
Class |
Bdgt Pd |
|---|---|---|---|---|---|---|
|
Expense |
5002 |
100 |
20 |
88 |
10 |
2000 |
|
Inventory |
1001 |
200 |
30 |
99 |
20 |
2000 |
The Accounting Line Creation process creates this interunit receivable and interunit payable transaction:
|
|
Account |
Fund |
DeptID |
Program |
Class |
Bdgt Pd |
|---|---|---|---|---|---|---|
|
Offsetting Inventory |
4003 |
200 |
30 |
99 |
20 |
2000 |
|
Offsetting Expense |
4002 |
100 |
20 |
88 |
10 |
2000 |
Set up the PeopleSoft system to use intraunit accounting. If you are using intraunit ChartField balancing, you must balance the intraunit accounting entries before you can pass them to the general ledger system using the Journal Generator process. If you are also using commitment control, the accounting entries must pass budget checking before they are available to perform ChartField balancing.
To perform ChartField balancing using the Accounting Line Creation process, select the Acquire IntraUnit Entries check box on the Accounting Line Creation process page. This check box is selected by default. The Intraunit Balancing process runs on the accounting lines in the CM_ACCTG_LINE table with a BUDGET_LINE_STATUS of Vand a CM_IU_STATUS of N (not balanced), or E (error). Once the intraunit transaction has been balanced successfully, the CM_IU_STATUS changes to B (balanced) or to X (balancing not required). Entries that could not be balanced are given the status of E (error) and appear on the Edit Unposted Accounting Lines page where you can resolve the error status.
Note: On the intraunit transaction, if the ChartField that you are balancing on changes after the ChartField Balancing process, then the system resets the CM_IU_STATUS to N (not balanced) and the transaction must be rerun by the ChartField Balancing process.
Intraunit ChartField Balancing Statuses
The transaction can have these statuses in the CM_IU_STATUS field:
|
Status |
Description |
|---|---|
|
N |
Not balanced |
|
B |
Balanced |
|
P |
In process |
|
E |
Error |
|
I |
Ignore. The line is not an intraunit transaction. |
|
X |
Balancing not required. |
|
S |
Staged |
|
H |
Hold for other business unit affiliates. |
The Set GL Distrib Status (general ledger distribution status) process in the Accounting Line Creation job insures that the accounting entries are not passed to the general ledger system until they are complete. The process also updates the status of accounting entries as they are picked up and used by the Journal Generator process. All rows that have a budget check status of V (valid) and an intraunit ChartField balancing status of B, I, or X will have their GL Distrib Status (general ledger distribution) set to N (ready).
GL Distribution Statuses
The transactions can have these statuses in the GL_DISTRIB_STATUS field:
|
Status |
Description |
|---|---|
|
D |
Distributed. The entries are posted to the general ledger system. They no longer appear on the Edit Unposted Accounting Lines page. |
|
H |
Hold. These lines are not yet ready to be picked up by the Journal Generator. |
|
N |
None; not yet processed. The accounting entries are created without error and (if applicable) the budget checking and ChartField balancing complete successfully. The Journal Generator process can now pick up the entries. |