1. Prepared by: Session ID: Allocations-Not Just For GL Len Romberg Technology Solutions Manger Grant Thornton len.romberg@us.gt.com Using alternate data sources and outputs 102260

2. About your Presenter Len Romberg  14 years as a Controller, Financial Analyst and Budget Manager in the manufacturing and distribution sectors.  20 th year implementing PeopleSoft financials across many industries in the public and private sectors 22 PeopleSoft projects: 12 commercial sector; 10 public sector engagements  Certified General Ledger consultant  MBA, Northeastern University

3. Session Agenda 1.Allocation usage and purpose 2.Review basic concepts 3. Discuss alternate allocations types

4. Sample Allocation Uses Allocate revenues and costs across departments, business units, etc. Create eliminations entries Create Expense (or revenue) recognition from Project Costing to GL Create Payroll accrual entries Create accrual based on requisitions and purchase orders in Project Costing Pooling allocations (Insurance industry) Payroll entries (Pension, Medical Insurance, Taxes) – create journals Transfer budgets from Commitment Control to Ledger for monthly reporting Transfer budget data Grants/Project Costing to Commitment Control

5. Organizations Using Allocations Have implemented allocations to fulfill various requirements for: Banks Publishing company Advertising agency City and county governments Transportation Insurance companies

6. Allocations – Free Form Module Standard Process: Select LEDGER lines >>> Copy or Allocate on some basis >>> Create Journals This is a GL to GL allocation – Most common allocation Allocations can be structured and used differently!

7. Allocations – Reviewing Basics Allocation Structure POOLBASIS TARGET/ OFFSET POOL – defines what source data is allocated BASIS – defines how the source data is allocated TARGET/OFFSET – defines result or output of the Allocations (most often a journal)

8. Allocation Types Copy – Used to copy amounts to the target. There can be row and amount summarization and percentages applied. Prorata with Record Basis – The basis is defined in transactional table data often using a journal with statistical accounts to define a basis Fixed Basis – Uses percentages defined on the Basis page to allocate the pool Arithmetic Operation – Uses standard math (add/subtract/multiply/divide) between the Pool and Basis to calculate the target. Spread Even – Divides the Pool evenly using the basis definition.

9. The Allocation Pool (source data to allocate) The Allocation Pool: What data is allocated Most common set up

10. Ledger Group is most common Any Table – using JOURNAL LINE or any other transaction table. Will often need to define a custom view to obtain the fields you want and that are required for the process to work.

11. The Allocation Basis: How the data is allocated

12. The Allocation Target and Offset – Output/Result Most common set up

13. Most Common Scenario: General Ledger to General Ledger Alternate scenarios to be considered: 1. Project Costing to Project Costing 2. Accounts Payable to General Ledger 3. Accounts Payable to Project Costing

14. 1. Project Costing to Project Costing Scenario: Re-allocating expenses before running Capitalization to Asset Management Move applicable expenses to an Analysis Type: "CAP" Scenario requires allocating from one central department to multiple departments. The Assets should be capitalized reflecting the allocated departments

15. Pool Definition PeopleSoft has a delivered view of the PROJ_RESOURCE table that validates Fiscal Periods and enables Time Span usage Pool Select uses: ANALYSIS TYPE PROJECT BUSINESS UNIT

16. Scenario Simulated Data: $77,700 to be re-allocated based on the following basis before capitalization:

17. Allocation Results Amounts allocated to the 3 departments Accounting Date is month end date Analysis Type uniquely defined as "CAP" Eliminate Source Type

18. Must haves: * Transaction ID definition * Recommend Currency Code definitions Additional for this scenario: * Accounting Date * Analysis Type The Allocation Target – – Output/Result

19. PeopleSoft provides delivered temporary tables for Project Costing The Allocation Batch Records

20. The Allocation Amount Fields Note: Not all fields require a definition

21. 2. Accounts Payable to General Ledger Scenario: Creating a month-end expense accrual (organizations that may not have Purchasing or another way to create an automated accrual) Key requirements: Custom view for the Pool Record Custom Temp Table Redefine Pool Amount Fields

22. Allocation Type: Copy Select "Any Table" Custom view of the Voucher Table – where the vouchers are NOT posted

23. Creating the View: VOUCHER table Must Haves: Join to calendar table (CAL_DETP_TBL) for Fiscal Year and Accounting Period Amount Fields Currency Code fields Business Unit, Business Unit GL

24. SQL for the view Select only vouchers that are NOT POSTED (POST_STATUS = U) -- Accounting Entries not yet created

25. Need a "Custom" Temp Table for the Pool Payables is not a module with delivered Allocation tables

26. Pool Temp Table Must Haves: Start by copying the Pool record – View – save as record type: Temporary Table add the PROCESS_INSTANCE field Amount fields must have a "Currency Control Field" assigned

27. In this example, GROSS_AMT and GROSS_AMT_BSE require a Currency Control Field

28. Defining the Amount Fields Update your Amount and Base Amount definitions based on the view

29. Target and Offset Definition Requirements Minimum definition requires LEDGER, BUSINESS UNIT and ACCOUNT

30. Output Options (Defining the Journal Header) Journal Mask and Reference are optional but recommended Journal Source is Required. ALO is delivered, you can define and use other Sources Edit and Post options: if processing large volumes, you may want separate post or edit and post processes.

31. The Actual Journal Header produced by the Allocation

32. Compare the Pool Data (from Query) to the output Journal Lines:

33. 3. Accounts Payable to Project Costing Scenario: Expenses routinely interface to Project Costing using the Project coded on the Distribution Lines Due to a matrix type organization, the organization's projects transactions need to post to multiple projects. I.T. manages 2 projects, but the expenses of those projects are also allocated to Sales Region projects. Only one can be coded on the voucher distribution line and that one will interface to Project Costing through the AP_TO_PC program. The second project will receive its transactions through allocations.

34. Source transactions interfaced to Project Costing (BAP) in the delivered AP to PC program. -- The allocation will be designed to pick up only lines where the Account = 132000 Sample Source Payables Data

35. The Allocation Pool: What data is allocated

36. A look at the SQL building the custom view Non-techies: you can build this in Query and "copy/paste"

37. The Allocation Basis: How the data is allocated Must define a transaction table that has the basis field (Project ID here) Identify the "alternate" projects and their allocation portion

38. The Allocation Target – – Output/Result Important to completely define the target rows!

39. The Allocation Batch Records Note the custom temp tables needed. You can often copy a delivered table and add needed fields

40. The same transactions are now posted to multiple projects in Project Costing

41. Summary: Keys to Creative Allocation Usage Identifying/creating a Pool – may require a custom view Use Query to design/build the views Will require different Temp tables – copy from your view or delivered temp tables (don't change the delivered tables) Need to update Amount fields Identify output (Target/Offset) data rows completely (will help reporting, analysis, audit, reconciliation)

42. Session ID: Please complete the session evaluation 102260