Understanding Chart of Accounts and chartfields

Chart field configuration activities Standard chartfield configuration Navigation Setup Financials/Supply Chain | Common definitions | Design chartfields |Configure | Standard configuration Advanced chartfields Configuration Add new chartfields Delete chartfields Resize chartfields Rename chartfields Navigation Setup Financials/Supply Chain | Common definitions | Design chartfields | Configure | Advanced Configuration Configuring SetID Navigation PeopleTools | Utilities | Administration | TableSet IDs Configuring TableSet Control Navigation PeopleTools | Utilities | Administration | TableSet Control

Understanding accounting structure. Ledgers and Journals

Billing module creates accounting entries for sales invoices for customers; Asset Management module creates accounting entries for fixed asset addition and depreciation activities Expenses module creates accounting entries for each employee expense report that is processed Each PeopleSoft module has a dedicated table to store these accounting entries Once the accounting entries are created by a module, a batch process known as Journal Generator performs subsequent activities. It performs three critical tasks as part of the journal processing lifecycle: Journal creation: Journal Generator process transforms these accounting entries into Journals. A journal can be considered as a collection and summarized form of multiple accounting entries. Journal edit: This process validates created journals based on the validation criteria to ensure that there are no accounting errors. If any errors are found, those journals are accordingly marked. They can be processed further only after their errors are manually resolved. Successfully validated journals are eligible for posting. Journal posting: This process ensures that amounts in the journals are posted to appropriate General Ledger accounts. In other words, the Journal Post process updates the final account balances in General Ledger. These final account balances are then reported through financial statements such as Income statement and Balance sheet by the organization. Note
PeopleSoft applications always denote credit amounts by a negative sign

Configuring ledgers and Journal Generator

A typical PeopleSoft Financials implementation requires the following configuration activities:

Set up a GL Business Units Configure ledger templates Configure Detail ledgers Configure Detail ledger groups Configure Ledgers for a unit Configure Journal sources Configure Accounting entry definitions Configure Journal templates
Configuring ledger templates A Ledger Template can be considered to be a framework of a ledgers attributes Rather than using a ledger template for an individual ledger, it is linked to a Ledger Group (Ledger group can have one primary ledger and (if needed) up to nine secondary ledgers) It essentially specifies various records and fields for a ledger that the system needs to report. Navigation

General Ledger | Ledgers | Templates

Configuring ledgers Navigation

General Ledger | Ledgers | Detail Ledgers

Configuring ledger groups

General Ledger | Ledgers | Ledger groups

Grouping multiple ledgers in a similar group (well see why we need to do this), specifying the edit tables for the relevant chartfields being used in the ledger, and specifying chartfield balancing options.

Having multiple currency requirements is just one of the possible reasons we need to define multiple ledgers in a group. When there are multiple ledgers in a ledger group, one ledger needs to be designated as the primary ledger Others are designated as secondary ledgers. PeopleSoft allows up to nine secondary ledgers in a ledger group In other words, there can be a maximum of 10 ledgers in a group

Configuring ledgers for a Business Unit GL BU can not only have multiple ledgers (or ledger groups) associated with it, but it can also have ledgers belonging to different types. It is possible that a BU may need to have a ledger group to maintain its budgets, another to record its accounting transactions. It also may have 2 different ledger groups to record transactions in different currencies. Navigation

Set Up Financials/Supply Chain | Business Unit Related | General Ledger |Ledgers For a Unit There are three types of ledgers that can be selected here: Detail ledgers, Summary ledger, and Commitment control ledger.
Detail ledgers are used to record actual accounting transactions. Summary ledgers on the other hand record only summarized versions of detailed accounting transactions. Commitment control ledgers record control budgets.

Configuring journal sources Navigation

Configuring accounting entry definitions Navigation

Configuring journal templates Navigation