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PeopleSoft Year End Finance Accrual Process

Presented by SDCOE CRC | June 23, 2016

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Webinar Topics

  • Scenarios 1, 2, 3, and 4
  • Year End Reminders
  • How to Receive Items with June Date
  • Timelines
  • FAQs

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Scenarios

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Accrual Process – Scenario 1

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PO

Receipt

2016

2017

PO

Receipt

PO

Voucher

DR Expense

CR 9510

DR 9510

CR Expense

PO Rollover

Receipt Accrual Process is done by Financial Accounting

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Accrual Process – Scenario 1B

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PO

Receipt

2016

2017

PO

Receipt

PO

Voucher

DR Expense

CR 9510

DR 9510

CR Expense

Create an Accrual Entry

PO Rollover

Create an Accrual Reversing Entry

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Accrual Process – Scenario 2

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Service POs or Amount Only POs

2016

2017

Service POs or Amount Only POs

PO Voucher

Amount Only

Create an Accrual Entry

DR Expense

CR 9510

DR 9510

CR Expense

Create an Accrual Reversing Entry

PO Rollover

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Accrual Process – Scenario 3

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Close all POs or

No POs

2016

2017

Create an Accrual Entry

Create an Accrual Reversing Entry

DR Expense

CR 9510

DR 9510

CR Expense

Create Direct Voucher using an Expense Account

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Accrual Process – Scenario 4

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2016

2017

Create an Accrual Entry

No need to create a reversing entry. The Direct Voucher will offset or clear your 9510 account

DR Expense

CR 9510

Create Direct Voucher using the 9510 account

Close POs or

No POs

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Year End Reminders

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Liability Accruals

  • Accrue to object 9510
  • Beginning Balances roll to 9510
  • Pay liabilities out of 9510
  • Reversing journal entries

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Receipt Accrual Requirements

  • Applies to items physically received by June 30, but not paid by June 30
  • Applies to districts with “Receiving Required” POs
  • Applies to POs with line items (physical goods to be received)
  • Enter receipts with June date by July 7th at 5p.m.
  • Roll POs from 1516 to 1617
  • Financial Accounting will run the Receipt Accrual process on July 8th
  • Notify Financial Accounting via email if you plan to opt out from this process.

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PO Rollover

  • Applies to POs in Dispatched status
  • This process identifies all POs ready to roll
  • Closes encumbrances in prior year
  • Opens encumbrances in current year
  • Payments can now be applied
  • Only POs roll not requisitions
  • Requisitions are finalized during the rollover process
  • Financial Accounting will roll POs on July 8

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How to Receive Items with June Date

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Receive items with June date

  • On the Add/Update Receipts page, enter June date in the Receipt Date field.
  • Click on the Header Details link.
  • Change the Receipt Date to a June date. Click OK.
  • Complete the receipt.

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Timelines

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Year End Timeline

  • June 29th at 12noon – Last day to submit your vouchers for approval to the SDCOE Commercial warrants department to receive a warrant issued on June 30th.
  • PO Vouchers
    • Example 1: PO amount is $500, Voucher amount is $400. Use the final function to release the remaining balance on the PO.

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Year End Timeline

  • PO Vouchers
    • Example 2: PO has two lines. You will only pay one line with the full amount. Using the final function will not close the second line.

Here are your options:

      • Manually close the PO using the override function
      • Cancel the second line on the PO page. If PO line item is sourced from a requisition line, make sure that you select the option to do not re-source the line.

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Year End Timeline

  • June 30th – Last warrant due date of the current year.
  • June 30th – At 9 pm, two reconciliation job processes will run.
    • PO reconciliation job process will run to close qualified POs.
    • Requisition reconciliation job process will run to close qualified requisitions.

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Year End Timeline

  • From July 1st to July 7th :
    • Receive items using the June date, if applies to your district.
    • Do not close POs for receipt accruals, if applies to your district.
    • Manually close non-qualified POs using the override function via the Buyer’s Workbench page. Nonqualified POs are POs that were not fully received or fully matched.
      • Example: Blanket POs with remaining encumbrance balance that were not final flagged at the voucher level.

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Year End Timeline

  • From July 1st to July 7th :
    • Manually close non-qualified requisition using the override function via the Requester’s Workbench page.
    • Nonqualified requisitions are requisitions that were not fully sourced and it still has open quantities or pre-encumbrances. Note that you can only override closing a requisition when the associated PO is completed or closed.

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Year End Timeline

  • July 7th – Last day when qualified POs are closed by the PO reconciliation process.
  • July 7th – Last day when qualified requisitions are closed by the Requisition reconciliation process.
  • July 8th – Financial Accounting will run the PO Rollover and Receipt Accrual processes.
  • Financial Accounting will send you reports

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FAQs

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FAQs

  • Q: What options should I use for AP accruals?�A: It is your decision. You decide what works best for your district.
  • Q: We have PO’s that will not be received by June. Do we close these PO’s or leave them open?�A: It is your district decision. You can opt to close the POs and go back to choose from accrual process scenario 3 or 4
  • Q: How can I check for my 9510 entries? �A: You can use the FAR_GL_DETAILS query.

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FAQs

  • Q: What happens in Scenario 1 if the invoice comes in different than the PO amount that was accrued?�A: If it's within the 10% tolerance (or your district tolerance) then it should go through. If it is not within the tolerance, you can change the match for that specific line (match status) in the PO page.
  • Q: What is the recommended scenario to use for big districts with a lot of accruals?�A: Depending on the resources you have and how you are able to manage POs, this is your district’s decision depending on the type of PO.�From Natalie (Financial Accounting): All 3 scenarios, depending on the type of PO.
  • Q: Do we need to use all the different scenarios in accruals or just one scenario will be okay?�A: It's up to your district. We are providing you the different scenarios on how it works in PeopleSoft. You will need to apply your business process.
  • Q: If the POs are not closed in 2015-16, are they going to show in year end report (encumbrances)?�A: If you look at they by July 9, if they qualify they will be rolled over.

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FAQs

  • Q: If we roll a PO and then decide it needs to be closed are there instructions to clear the entries from both years?�A: You will have to reverse those journal entries. See the General Ledger guide.
  • Q: Yesterday Claudia said that she may not have time to approve all voucher even if they are entered in the correct time frame. She said that they have 5 days to approve. If we enter by June 29th there are no guarantees that it will be approved to come out on June 30th.�A: Those payments will have to be accrued
  • Q: What is the first day that we can enter POs in July for 2016-17?�A: You can start entering POs for 2016-17 now. You have to request from FAR that they open the accounting period.
  • Q: What is the complete object for 9510 to pay liabilities?�A: 9510000
  • Q: Can POs be “closed” to wipe of any remaining encumbrance after 7/7?�A: On July 8 accounting will run the accrual process and if you didn't close any POs and has a remaining encumbrance these will roll over.
  • Q: When does the PO roll happen? 7/8?�A: Yes PO roll will be 7/8/16.

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FAQs

  • Q: Is there a way to mass close POs?�A: Yes, it was taught at the Purchasing Year End class. Go to the Buyer Workbench page.
  • Q: So if we choose to NOT roll POs and to have you roll the POs we identify only, once that is done on July 8, then can we go in using buyer workbench to close all the rest, say between July 9 - 15?�A: If not closed by 7/8 then they will roll then you can close them
  • Q: What is it we can opt out of, Natalie?�A: From Natalie (Financial Accounting): Districts can opt out of receipt accrual, not PO rollover.
  • Q: So regardless of what accrual process we choose, if we have open 15-16 POs on 07-07, they will be rolled over into 16-17?�A: Yes. If they are qualified to role - approved or dispatched status, budget is valid.
  • Q: Are they going to accrue the full amount of the PO?�A: Yes. Items that were received.

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FAQs

  • Q: How do you enter the manual accruals, in 989?�A: You will enter manual accruals in Period 998.
  • Q: Do we receive a report of what is accrued through the auto process?�A: Yes.
  • Q: On 7/8, do all pre-encumbrances and encumbrances go to $0 in 2016?�A: If you have closed your non-qual POS and non-qual reqs then it will be 0 by that time. If you are unable to take care of them, they will be left open.
  • Q: To clarify, if there is no receiving, will the PO still roll?�A: If the PO is still open and has a remaining balance, it will still roll.
  • Q: What was the sales tax # again?�A: Use tax 9510996.

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