Using Entry Event Codes for Upward and Downward Adjustments in Unexpired and Expired Funding

Upward and downward adjustments include adjustments for both unexpired and expired funding. Each has entry event configuration to handle different accounting.

Adjustments for unexpired funding are very similar to adjustments for expired funding where changes to purchase order or voucher transactions are recorded as upward or downward adjustments. The difference is that the funding is still current for unexpired adjustments and therefore the accounting is not the same. To be considered unexpired, the Unexpired checkbox must be selected for the Prior Year Adjustment ChartField on the Budget Definition page, and the budget date must fall between the Begin and Expiration dates as defined on the Budget Definition page. Additionally, for new POs or vouchers the Budget Fiscal Year must be less than the Accounting Fiscal Year. For a PO change order or Voucher adjustment, the Original Budget Fiscal Year must be less than the Adjustment Accounting Fiscal Year.

Funding is designated as expired on the Prior Year Adjustment ChartField tab of the Commitment Control Budget Definition page. If the budget date on a PO or voucher is between the defined expired and end dates, the funding is considered expired and could be subject to upward or downward adjustment accounting.

In the following cases, the system must automatically generate separate budgetary debit and credit accounts for U.S. federal government adjustments to POs and vouchers that are processed after the funding has an unexpired or expired status:

  • When an existing PO is either increased or decreased in a period during which the funding has changed to unexpired or expired state.

  • When a new PO is entered against a period in which funding has changed to an unexpired or expired state and no goods, services, or invoices were received.

  • When a voucher is processed against an existing PO for more or less than the PO amount in a period during which the funding has changed to an unexpired or expired state.

  • When a voucher that is not tied to a PO is entered in a period during which the funding has changed to an unexpired or expired state.

  • When an adjustment voucher is entered in a period during which the funding has changed to an unexpired or expired state.

This section discusses:

  • Entry event definitions for upward and downward adjustments in PeopleSoft Purchasing and Payables.

  • Upward and downward adjustments in PeopleSoft Purchasing.

  • Upward and downward adjustments in PeopleSoft Payables.

  • Upward and downward adjustment reversals.

To generate these budgetary debit and credit accounts, you select an entry event code when you enter the adjustment to the PO or when you enter the PO voucher that points to the predefined entry event source transaction definitions and the predefined entry event processes and steps.

Before you can enter and process these upward and downward adjustments in an unexpired or expired funding period, you must:

  • Set up an Prior Year Adjustment ChartField for your budgets.

    Navigate to Commitment Control, and then Define Control Budgets, and then Budget Definitions, and then Prior Year Adjustment ChartField to access the Prior Year Adjustment page. The information that you enter on this page determines whether a fund is unexpired or expired when you run the budget processor for a document.

  • Create entry event data to use in Purchasing or Payables to automatically generate and update the budgetary debit or credit accounts for the adjustment if the fund is unexpired or expired.

  • Verify that the users who enter and process the Purchasing or Payables upward and downward adjustments have permission to override budget-checking errors for expired-year funding.

See User Preferences - General Ledger Page.

See Entry Event Page.

Entry Event Definitions for Upward and Downward Adjustments in PeopleSoft Purchasing and Payables

Access the Budget Definitions - Prior Year Adjustment ChartField page (Commitment Control, Define Control Budgets, Budget Definitions, Prior Year Adjustment ChartField).

To use entry events for creating budgetary account adjustments in Purchasing and Payables:

  1. Verify that the following entry event source definitions exist.

    WARNING:

    These values are predefined; do not change them.

    Entry Event Source Definition Description Source Record Target Record Temporary Record

    PO_POADJUP

    PO expired upward adjustment.

    EE_PO_UP_VW

    EE_PO_ACCTG_LN

    EE_PO_TMP

    PO_POADJDN

    PO expired downward adjustment.

    EE_PO_DN_VW

    EE_PO_ACCTG_LN

    EE_PO_TMP

    PO_UPUX

    PO unexpired upward adjustment

    EE_PO_UP_UX_VW

    EE_PO_ACCTG_LN

    EE_PO_TMP

    PO_DNUX

    PO unexpired downward adjustment

    EE_PO_DN_UX_VW

    EE_PO_ACCTG_LN

    EE_PO_TMP

    PO_UXCLADJ

    PO unexpired close adjustment

    EE_PO_UXCLS_VW

    EE_PO_ACCTG_LN

    EE_PO_TMP

    AP_VCHADJ

    Voucher upward or downward adjustment.

    EE_VCH_TMP

    EE_VCH_ACCTG_LN

    NA

  2. Verify that the following entry event process steps exist for these entry event processes.

    WARNING:

    These values are predefined; do not change them.

    Entry Event Process Process Steps Process Step Description Process Step Characteristics

    POPOST

    POUP

    PO expired upward adjustment.

    • Entry event source transaction: PO_POADJUP.

    • Field name and value: BALANCING_LINE, Y.

    • Field name and value: CLOSED_VALUE, N.

    POPOST

    PODN

    PO expired downward adjustment.

    • Entry event source transaction: PO_POADJDN.

    • Field name and value: BALANCING_LINE, Y.

    POPOST

    POUPUX

    PO unexpired upward adjustment.

    • Entry Event source transaction: PO_UPUX.

    • Field name and value: BALANCING_LINE, Y.

    POPOST

    PODNUX

    PO unexpired downward adjustment.

    • Entry event source transaction: PO_DNUX.

    • Field name and value: BALANCE_LINE, Y.

    VCHRPOST

    ACRDN

    Voucher expired downward adjustment.

    • Entry event source transaction: AP_VCHADJ.

    • Field name and value: DST_ACCT_TYPE, APA.

    • Field name and value: POSTING_PROCESS, ACCR.

    VCHRPOST

    ACRUP

    Voucher expired upward adjustment.

    • Entry event source transaction: AP_VCHADJ.

    • Field name and value: DST_ACCT_TYPE, APA.

    • Field name and value: POSTING_PROCESS, ACCR.

    VCHRPOST

    ACRUPUX

    Voucher unexpired downward adjustment.

    • Entry event source transaction: AP_VCHADJ.

    • Field name and value: DST_ACCT_TYPE, APA.

    • Field name and value: POSTING_PROCESS, ACCR.

    VCHRPOST

    ACRDNUX

    Voucher unexpired downward adjustment.

    • Entry event source transaction: AP_VCHADJ.

    • Field name and value: DST_ACCT_TYPE, APA.

    • Field name and value: POSTING_PROCESS, ACCR..

  3. Use the entry event codes for the predefined upward and downward adjustments as the basis for setting up your own entry event codes.

Upward and Downward Adjustments Processing in PeopleSoft Purchasing

This section discusses how to process upward and downward adjustments in Purchasing.

PO upward and downward adjustments are initiated by any change to a PO that applies to expired or unexpired year funding.

Here are some important considerations:

  • The accounting date entered on the Purchase Order Header page is used for the accounting date on the resulting entry event transactions.

    The budget date on the PO distribution line is checked against the Prior Year Adjustment ChartField dates and attributes to determine whether funding is current, unexpired, or expired. Changing the budget date can affect whether the funding is in an expired year. Changing the accounting or budget date for funding subject to unexpired can affect whether the funding changes to an unexpired state.

  • If a PO has expired-year funding and has been budget-checked in current year, but the entry events have never been generated, the adjustment amount is calculated by taking the current budget-checked PO amount minus the last amount budget-checked in the current year.

  • If a PO has expired-year funding and has never been budget-checked while in the current year, no adjustments are necessary.

See PeopleSoft Purchasing: Purchasing Options Page.

See “Creating Requisitions Online” in the PeopleSoft Purchasing documentation PeopleSoft Purchasing: Understanding the Requisition Business Process.

Here is an example of upward adjustment for unexpired funding. Suppose the existing PO, PO 2, is for 7,000.00 USD against a fund subject to unexpired funding adjustments. Due to a contract adjustment, the PO increases to 8,600.00 USD. The organization received no goods, services, or invoices. The budget date is between the begin and expiration dates on the Prior Year Adjustment ChartFields tab of the Budget Definition page and the Original Budget Fiscal Year is less than the Adjustment Fiscal Year. This would be classified as an unexpired upward adjustment.

To enter and process the PO for the unexpired upward adjustment:

  1. Enter the 1,600.00 USD upward adjustment change order to PO 2.

  2. Approve the PO change order.

  3. Budget check the PO change order. The budget processor checks the Prior Year Adjustment ChartField attributes and dates to see if the funding is subject to unexpired.

  4. Once the PO passes budget checking, run the entry event processor to generate the entry events.

The EE processor checks to see if the Original Budget Fiscal Year is less than the Adjustment Accounting Fiscal Year and therefore, requires unexpired adjustment accounting. The system calculates the difference between the PO current amount and the lines posted to the Entry Event accounting line record.

In this example, the entry event processor generates the following budgetary accounting lines:

  • 4450 (Allotments - Unexpired Authority) — $1,600.00.

  • 4881 (Upward Adjustment of Prior Year Unpaid Unexpended Obs) — <$1,600.00> .

  • Proprietary accounting entries: NONE.

Here is an example of upward adjustment for expired funding. Suppose that the existing PO called PO 1 is for 7,000.00 USD against an expired fund. Due to a contract adjustment, the PO increases to 8,600.00 USD. The organization received no goods, services, or invoices. Budget date is between the expired and end dates on the Prior Year Adjustment ChartFields tab on the Budget Definition page. This would be an expired upward adjustment to the PO.

To enter and process the PO for the expired upward adjustment:

  1. Enter the 1,600.00 USD upward adjustment change order to PO #1.

  2. Approve the PO change order.

    The Commitment Control budget processor checks the Prior Year Adjustment ChartField to see if this change applies to expired-year funding. If the fund year has expired, the budget processor issues an error and stops processing.

  3. Check the budget error messages.

  4. If the error message indicates that budget checking failed because the fund year has expired, then override the budget error.

  5. Rerun the budget processor to ensure that the budget information is valid.

  6. Once the budget is valid, run the entry event processor to generate the entry events.

    The system calculates the difference between the PO's current amount and the lines posted to the entry event accounting line record.

    Note:

    Your standard general ledger budgetary accounts may be different than the accounts used in this example.

    In this example, the entry event processor generates the following budgetary accounting lines:

    • 4650 (Allotments - Expired Authority) - $1,600.00.

    • 4881 (Upward Adjust of Prior Year Unpaid Unexpended Obs) - <$1,600.00>.

    • Proprietary accounting entries: NONE.

See “Creating Requisitions Online” in the PeopleSoft Purchasing documentation PeopleSoft Purchasing: Understanding the Requisition Business Process.

Upward and Downward Adjustments Processing in PeopleSoft Payables

This section discusses how to process upward and downward adjustments for Payables.

Payables voucher upward adjustments are created when:

  • The PO voucher is greater than the PO.

  • The voucher has no PO associated with it but has unexpired or expired year funding.

  • The PO voucher is less than the PO and is marked as final.

Here are some important considerations:

  • If a voucher is finalized at the header level, all voucher distribution lines in the voucher can have adjustments.

  • If the voucher is finalized at the line level, all voucher distributions for the line can have adjustments.

  • If the voucher is finalized at the distribution level, only distributions that are marked as final can have adjustments.

  • If a PO is in unexpired funding and the voucher is in unexpired funding (current year), no adjustments to the voucher are necessary.

  • If the PO is in expired-year funding and the voucher is in expired funding, no adjustments need to be made to the voucher.

  • If the voucher has not been created from a PO and the voucher is in unexpired or expired funding, there should be an adjustment for the full amount of the voucher.

Note:

Your standard general ledger budgetary accounts and proprietary accounts may be different than the accounts used in these examples.

Here is an example for expired funding. Suppose that a PO exists for 8, 600.00 USD against an expired fund. A PO voucher was created for 9,000.00 USD against the PO.

Use these steps to enter and process the voucher for the upward adjustment:

  1. Ensure that the PO voucher was entered into Payables for 9,000.00 USD and applies to expired-year funding.

  2. The budget processor fails the PO voucher.

  3. Budget checking fails and issues a budget-checking error for the voucher indicating that the voucher applies to an expired funding year. Unexpired funding will not cause a budget checking failure.

  4. Override the budget checking for this voucher.

  5. Run budget checking again to ensure that the voucher budget status is valid.

  6. Run Voucher Posting to generate the proprietary accounting entries.

    • 6100 (Operating Expense) - 9,000.00 USD

    • 2110 (Accounts Payable) - <9,000.00> USD

  7. Run the entry event processor to generate the accounting entries.

    The processor calculates the difference between the voucher and the PO and adjusts the budgetary entries upward.

The system generates the following budgetary entries:

  • 4650 (Allotments - Expired Authority) - 400.00 USD

  • 4881 (Upward Adjust of Prior Year Unpaid Unexpended Obs.) - <400.00> USD

  • 4801 (Unexpended Obligations - Unpaid) - 9,000.00 USD

  • 4901 (Unexpended Authority) <9,000.00> USD

  • 3100 (Unexpended Appropriations) - 9,000.00 USD

  • 5700 (Expended Appropriations) - <9,000.00> USD

Payables voucher downward adjustments are created when the following characteristics apply to the voucher:

  • The PO voucher is less than the PO.

  • The voucher has unexpired or expired year funding.

  • The voucher is marked final.

For example, a PO exists for 4,700.00 USD against an expired fund. A PO voucher is processed against the PO for 2,700.00 USD.

Use these steps to enter and process the voucher for the expired downward adjustment:

  1. Ensure that the PO voucher is entered into Payables for 2,700.00 USD and applies to expired-year funding.

  2. Because the PO amount is greater than the voucher amount, the commitment control budget processor does not issue an error, and it passes the budget checking.

  3. Run Voucher Posting to generate the following accounting entries.

    • 6100 (Operating Expense) - 2,700.00 USD

    • 2110 (Accounts Payable) - <2,700.00> USD

  4. Run the entry event processor to generate the following accounting entries.

    The processor calculates the difference between the voucher and the PO and adjusts the budgetary entries downward.

The system generates the following budgetary entries:

  • 4871 (Downward Adjustment of Prior Year - Unpaid Unexpended Obs) - 2000.00 USD

  • 4650 (Allotments - Expired Authority) - <2000.00> USD

  • 4801 (Unexpended Obligations - Unpaid) - 2,700.00 USD

  • 4901 (Unexpended Authority) <2,700.00> USD

  • 3100 (Unexpended Appropriations) - 2,700.00 USD

  • 5700 (Expended Appropriations) - <2,700.00> USD

See “Entering and Processing Vouchers Online: General Voucher Entry Information” in PeopleSoft Payables: Entering Regular Vouchers.

Upward and Downward Adjustments Reversals

This section discusses how the system handles upward and downward adjustments reversals.

Reversal processing for entry event generated adjustments is required when the voucher has been posted and:

  • The voucher is unposted, then any adjustments created for a voucher are reversed.

  • The voucher is partialized, then the voucher is selected for reverse processing based on:

    • Whether the voucher is budget checked and in unexpired or expired year funding.

    • Whether the voucher has been posted at least once.

    • Whether the voucher is partialized at the distribution level.

      If so, only final distributions that have been processed can have adjustments.

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