introduction to peoplesoft 9.0 accounting

Metropolitan Transportation Authority Introduction to PeopleSoft 9.0 Accounting, 1

Introduction to PeopleSoft 9.0 Accounting


Course Overview• Audience:

– All MTA Agencies

• Prerequisites:– Introduction to PeopleSoft 9.0

• Course Lessons:– Introduction to Chart of Accounts– PeopleSoft 9.0 General Ledger Integration Points– Introduction to Month End Processes– Monitoring the Accounting Process


Introduction to Chart of Accounts

After completing this lesson, you will:Understand the PeopleSoft 9.0 Chart of Accounts.

Develop a basic understanding of ChartField descriptions and uses.

Describe the benefits of PeopleSoft 9.0 ChartField entry.


Introduction to ChartFields• ChartFields Defined:

– In PeopleSoft, the fields that store the charts of accounts and provide the system with the basic structure to segregate and categorize transactional, actuals and budget data are called ChartFields.

• Key Concepts:– Each ChartField has its own attributes for maximum efficiency and flexibility

in recording, reporting and analyzing its intended category of data. While a particular ChartField represents only one category of data, it stores many values that are used to further categorize that data.

– ChartField value sets can be arranged with the same name but different SetIDs for different groups of business units. For example, DeptID values are agency specific.

– ChartField strings are the backbone of the General Ledger since they are centrally used in reporting, data consolidation and closing processes.

– ChartField strings are made up of data fields called ChartFields.– BSC General Accounting performs all ChartField maintenance centrally.

• Agency prepares ChartField Maintenance Request Form.• BSC processes request and makes required changes.


ChartField BenefitsUsing PeopleSoft 9.0 for ChartField data entry andmaintenance has the following benefits:• Creates standardization across all agency business

transactions for ledger accounts.• Reduces cycle times for financial closing and transaction

processing.• Allows all agency transactions to be processed within the

same General Ledger under different Business Units.• Lowers system infrastructure costs.


PeopleSoft 9.0 ChartFieldsThe following PeopleSoft 9.0 ChartFields are available for the MTAagencies to record and consolidate all General Ledger transactions:

PS ChartField ChartField Label MTA Description

GL BUSINESS UNIT GL Business Unit GL Business Units represent a legal or a reporting entity on the Actuals ledger.

ACCOUNT AccountAccount classifies the nature of a transaction into five account types (asset, liability, equity, revenue andexpense). This value is shared across the MTA agencies.

OPERATING_UNIT Cost Ctr Operating Unit represents a Cost Center.

DEPTID Resp Center Responsibility Center will represent a Management Center.

PROGRAM_CODE Function CodeFunction Codes represent a work type description that breaks expenses into various purpose categoriesthat can cross all Departments within an Agency.

AFFILIATE Affiliate Affiliate represents a GL Business Unit used for direct Intercompany Accounting.

PC BUSINESS UNIT PC Business UnitPC Business Unit organizes project activity independently of the constraints of standard Accountingprocedures for financial posting of the organization.

PROJECT_ID Project Project represents a Project or Task.

ACTIVITY_ID ActivityActivity represents a Work Order or Job Number at a more detailed level than the Project ChartField. Specific activities are pre-selected based on the Project ID.

BUDGET_REF Budg RefBudget Reference distinguishes between Operating Expenses/Budgets and Operating CapitalExpenses/Budgets. MTAHQ uses the Budget Reference ChartField exclusively.

* The ChartFields above represent a subset of the total ChartFields available to Users.


The ChartField information is located within the PeopleSoft line area for all transactions that flow into the General Ledger:

ChartField Location

Header

Line

•Agency Business Unit (BU)

1

1+

•Accounting ChartField String


ChartField LinesThe PeopleSoft Accounting lines area contain the General Ledger Chart of Accounts information:

Enter GL ChartField information in the Lines region.


The process for modifying a ChartField value requires a series of interactions between the BSC and agencies. This process includes:

ChartField Modification

Agency submits ChartField

Maintenance Request Form to

BSC.

BSC reviews and validates requested

change.

Data in conflictwith existing

configuration?

BSC implements changes.

No

BSC works with agency to reach agreement about

ChartField modification: Chart

of Accounts Committee.

Yes

Note: DOE is being stored in the CHARTFIELD1 location.


Lesson SummaryIn this lesson, you have learned: The purpose of PeopleSoft 9.0 Chart of Accounts. A basic understanding of ChartField descriptions

and uses. The benefits of PeopleSoft 9.0 ChartField entry.


Introduction to Combination Editing

After completing this lesson, you will:Develop a basic understanding of combination editing.

Describe the benefits of combination editing.

Understand the combination editing process.


Introduction to Combination Edits• Overview:

– Combinations of ChartField values can be edited to determine which accounts are applicable to specific departments, funds, or operating units.

– Combination edits confirm the validity of the relationship between two or more ChartField values.

– The validity of a particular ChartField combination is determined by combination rules set up in PeopleSoft by the BSC.

• Benefits:– Maintains discipline over accounting transactions.– Reduces additional account analysis.– Eliminates posting of invalid ChartField combinations

through creation of combination editing rules.


Combination Edit OverviewCombination editing occurs after single field validation is complete.• Single Field Validation

– PeopleSoft functionality checks each individual ChartField value to validate whether it exists for the specified Business Unit.

• Combination Editing– PeopleSoft functionality checks combinations of ChartField

values against predefined combination editing rules to determine whether the ChartField combination is valid.


Combination Editing Process

User enters a combination of

ChartField values.

PeopleSoft compares ChartField

values against combination rules.

Valid ChartField combinations are

processed in PeopleSoft

Accounting.

Invalid ChartField combination results in data failure and must be corrected for transaction to

proceed.

ChartField combination

valid?

Yes

No


Combination Edits in PeopleSoftPeopleSoft 9.0 ChartField combination editing automatically compares ChartField values to the rules governing ChartFields.

Combination editing confirms the validity between two or more data elements.

Valid combination of values results in ‘V’ status. The BSC will post valid Journal entries.


Combination Data Failure If a combination of ChartField values does not meet the combination edit

rules, then data entry fails. This is called a hard stop.

Invalid combination of values results in ‘E’ (Error) status.

Note: Clicking on the Journal Status provides additional detail on the error. Alternatively, a user may click on the Errors tab to view the errors.


Identify and Resolve ErrorsThe following table provides examples of valid versus invalid combinations of ChartField values:

ChartField Combination Rule

Valid ChartField Combination Example

Invalid ChartField Combination Example

Process for Resolving Invalid Combination

Project Costing Business Unit, Project and Activity fields must all be populated across agencies.

Project Costing Business Unit, Project, and Activity fields are all populated with accurate values.

Project field is left blank.

BSC or agency Accounting Clerk checks error tab to view systematic error response. BSC or agency Accounting Clerk enters a valid Project field value.

A Project ID must be tied to the correct Affiliate in order to access the appropriate GL Account.

Project ID: A02A0110Affiliate: LIRRDGL Account: 061202

Project ID: A02A0110Affiliate: NYCTRGL Account: 061202

Project ID A02A0110 is tied to Affiliate LIRRD. BSC or agency Accounting Clerk checks error tab to view systematic error response. BSC or agency Accounting Clerk enters a a valid Project ID and Affiliate combination in order to access the appropriate GL Account.


Lesson SummaryIn this lesson, you have learned: A basic understanding of combination editing. The benefits of combination editing. The combination editing process.


Introduction to Inter-company Processing

After completing this lesson, you will:Describe how Inter-company transactions are processed.

Understand the benefits of PeopleSoft 9.0 Inter-company processing.


Introduction to Inter-company Processing

• Overview:– All Accounts Payable, Journal Spreadsheet, and Payroll transactions

will be processed using PeopleSoft Inter-company functionality.– Users create transactions across multiple business units without

manually entering the Inter-company balancing entries.

• Benefits:– Avoidance of manual entry of transactions through automation.– Consistency in daily and month end processing.– Common reporting, consolidations, and reconciliation processes.– Inter-company data entry managed in automated fashion thus reducing

workload on Accounting staff.– Flow of transactional data from agency subsystems into a single,

consolidated Accounting system.


Inter-company Transactions

GeneralLedger

Purchasing-Purchase Orders

-Purchasing Receipts

Payroll-Pay PeriodTransactions

Accounts Payable-Vouchers

Inter-company transactions will interface into the General Ledger from the following subsystems:


Processing Inter-company transactions in PeopleSoft results in the following changes:

Processing Intercompany Transactions in PeopleSoft

Current MTA Process

•Interfacing of Inter-company transactions does not exist between agencies.

•Inter-company transactions are manually processed by individual agencies.

Future MTA Process

•Accounts Payable, Payroll, and Journal Spreadsheet transactions will be interfaced through PeopleSoft 9.0 Inter-company functionality.

•Inventory, Revenue, Accounts Receivable, and Treasury data will continue to be processed manually.


Inter-company journal entries are processed using the InterUnit functionality in PeopleSoft:

Processing Inter-company Transactions in PeopleSoft

The system automatically inserts these entries once Intercompany Journal lines are entered and processed.


Lesson SummaryIn this lesson, you have learned: A description of how Inter-company transactions are

processed. The benefits of Inter-company processing in

PeopleSoft 9.0.


PeopleSoft 9.0 General Ledger Integration Points

After completing this lesson, you will:Develop a basic understanding of the interdependencies that exist within Accounting.Describe key integration points with PeopleSoft 9.0 modules.


PeopleSoft 9.0 Financial Module Integration

The BSC centralizes specific core financial modules, resulting in a single interfacing system:

Accounts Payable

General Ledger

Inventory

Purchasing BSC PeopleSoft Functionality


PeopleSoft 9.0 Finance areas have specific integration points. Data interfaces into the General Ledger to create a consolidated financial management system.

PeopleSoft 9.0 Finance Integration Points

Inventory

ProjectCosting

AccountsReceivable/

Billing

AccountsPayable

AssetManagement

GeneralLedger

DealManagement

AGENCIES

BSC

HEADQUARTERS and B&T

PurchasingCash

Management


Lesson SummaryIn this lesson, you have learned: A basic understanding of the interdependencies that

exist within Accounting. Key integration points with PeopleSoft 9.0 modules.


Introduction to Month End Processes

After completing this lesson, you will:Understand the basic month end processes for each module.


Month End Responsibilities• Overview:

– All core PeopleSoft 9.0 modules have specific month end responsibilities.

– The following diagram illustrates the key activities for the month-end process and responsible parties:


Month End Responsibilities

• Benefits:– Common reporting, consolidation, and

reconciliation processes.– Month end data entry managed in automated

fashion thus reducing workload on Accounting staff.

– Flow of month end transactional data from agency subsystems into a single, consolidated system.

– Possible acceleration of consolidated Financial reporting.


Month End ResponsibilitiesEnd users with responsibilities in PeopleSoft 9.0 modules have specific month end responsibilities:


Lesson SummaryIn this lesson, you have learned: A basic understanding of the month end processes

for each module.


Monitoring the Accounting Process

After completing this lesson, you will:Identify Service Level Agreements and Metrics


Many important Service Level Agreements (SLAs) and metrics are measured through out the PeopleSoft 9.0 Accounting process. These SLAs and metrics are used to clearly define the services provided, balance customer needs with operating efficiency goals, and clearly define the responsibilities for service delivery for both the BSC and the agencies.



Lesson SummaryIn this lesson, you have learned: A basic understanding of the Accounting SLAs.


Course SummaryNow that you have completed this course, let’s review what you have learned:

• An introduction to PeopleSoft Chart of Accounts and ChartFields.

• A basic understanding of Combination Edits.• An overview of how Inter-company transactions

will be processed.• A summary of the month end processes for each

module.


Course Conclusion• Helpful Resources

– Job Aids: Month End Close Calendar and Ownership


Course Evaluation

All training participants are required to complete an online course evaluation upon course completion. Evaluations are based on course content and are meant to measure the key information and objectives of the course.

To access the evaluation for Introduction to PeopleSoft 9.0 Accounting, please use the link below:

http://www.surveymonkey.com/s/Intro_Accounting


Questions?

For questions, please contact [email protected].

Evaluation link: http://www.surveymonkey.com/s/Intro_Accounting


You have completed the Introduction to PeopleSoft 9.0 Accounting course.

NAME: ____________________________________

DATE: __________________

Congratulations!

introduction to peoplesoft 9.0 accounting

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