1. Year End Obligations Legal Basis Reporting Workshop May 2009

2. 2 Summary Obligation Accruals Business Rules Automated Process – GL-15 Manual Process Actual/Encumbrance Journals Helpful Query Review

3. 3 Business Rules Business Rules for year end required reporting State GL Account 3010 – Accounts Payable for ALL funds will include Posted Vouchers, Obligations AND Encumbrances FIRMS record type 10 for object code 201001 will include Posted Vouchers and Obligations…NOT Encumbrances FIRMS record type 15 for object code 201001 will be Year to date encumbrances (Accounting Period 1-12) FIRMS record type 16 for object code 201001 will be Project to date encumbrances (Accounting Period 0)

4. 4 Accounts Payable to the State includes Encumbrances for Governmental Funds

5. 5 CSU Data Structure

6. 6 Year end Obligations Goods and services received but not yet invoiced (no voucher posted) must still be “obligated” For activity received within the Finance 8.4 application an automated process will create the journals to liquidate the encumbrance portion and record the AP Accrual Manual journals will need to be done for items that cannot be identified by the automated process Utilities Retention etc

7. 7 CSUGL015 – Year End Obligations Automated process within PeopleSoft Should be run in report mode only until ready to actually process journals Journals are created for Items received on Purchase Orders not yet Invoiced Liquidates Encumbrance as of June 30 Creates a July 1 Encumbrance Journal to re-establish encumbrance Creates Actuals journal as of June 30 Reverses July 1 Automated Process

8. 8 CSUGL15 CSU Year End Obligations – Run Control

9. 9 CSUGL015 – Year End Obligations – Output (Report) This report shows the PO amounts to be liquidated for obligation

10. 10 CSUGL015 – Year End Obligations – Output (Report) This report shows the PO amounts to be accrued for obligations

11. 11 CSUGL15 Overview

12. 12 Manual Obligations of Encumbered Amounts Liquidate obligation portion of encumbrance Effective June 30, 2008 Encumbrance Journal to Ledger KK_DTL_ENC Record the amount as an accounts payable accrual – obligation Effective June 30, 2008 Actuals Journal to Ledger ACTUALS Re-encumber the obligation Effective July 1, 2008 Encumbrance Journal to Ledger KK_DTL_ENC Reverse the Accounts Payable Accrual Effective July 1, 2008 Actuals Journal to Ledger Actuals Manual Process

13. 13 Manual Obligations of Encumbered Amounts (con’t) Manual Obligation of Encumbered Amounts require THREE journals Journals to the Actuals ledger can be set up as reversing journals This journal will record the Accounts Payable accrual AND reverse it Journals to the Actuals Ledger can be set up as reversing Journals.

14. 14 Manual Obligations of Encumbered Amounts Encumbrance Journals are required to liquidate the encumbrance June 30 and to re- encumber it July 1 Encumbrance Journals are processed with the Ledger Group ACTUALS so that they will be edited by Combo Edits and controlled by open and closed periods

15. 15 Manual Obligations of Encumbered Amounts Journals to Liquidate the encumbrance can NOT be set up as reversing, even though the software will allow it…

16. 16 Manual Obligations of Encumbered Amounts Summary Three journals are required 1 reversing journals for the accounts payable accrual (June 30, 2009) and the reversing accrual (July 1, 2009) 2 encumbrance journals One dated June 30 to liquidate the obligation portion of the encumbrance One dated July 1 to re-encumber the obligation portion of the encumbrance For the Encumbrance journal dated July 1, use the copy journal with reversing sign functionality

17. 17 Reimbursed Activity Another “Encumbrance” Journal In order to zero out Reimbursed Activity at year end for amounts related to encumbrances, an encumbrance journal needs to be processed eliminating all encumbrance amounts from Reimbursed Activity Helpful Query

18. 18 Query to Identify Reimbursed Activity Encumbrances

19. 19 FIELDS

20. 20 Criteria

21. 21 Having Criteria

22. 22 Output Download to excel to prepare encumbrance journals (6-30-2009) and reversing journal (7-1-2009)

23. 23 Don’t forget Run CSUGL015 in report mode ONLY until ready to process journals Three journals are required for manual obligations of encumbered amounts There is no such thing as a REVERSING ENCUMBRANCE journal You need to do two – One dated June 30 and one dated July 1 Use the Commitment Control hyperlink on the journal to do encumbrance journals to the ACTUALS ledger Do NOT do journals to the KK_DTL_ENC ledger The offset to encumbrances MUST BE accounts payable – FIRMS Object Code 201001 Can set up a unique campus value Review

24. 24 Reference http://cms.calstate.edu/04_Applications/04B_Finan ce/FIS90/FIS90_PSWD- 01/FIS90_BPGs/GeneralLedger/FIS90_BPG_Ye arEndEncumbrancesandAccrualsProcessing_20 080122.doc