1. AM GAAP Accounting Entries Carmen Arreguin, CMS Functional Analyst/Progmr., CO Sherry Pickering, Director, Fiscal Services, CSUEB April 24, 2015

2. Learning Objectives Grasp the CSU AM Process Flow Review the state and GAAP reporting requirements for capitalized fixed assets Define the PeopleSoft, CFS configuration and derivation steps involved in the process Review the common activities that require manual adjustment entries in the GAAP ledger for fixed assets April 2015Year-End GAAP Training2

3. April 2015Year-End GAAP Training3 AM Dist Line FY/AP Update Process Load Capital Asset Table Process Load Capital Asset Table Process FIRMS Derivation Process Complete PeopleSoft AM Month-End Reporting Tables Reporting Tables Load Depr Rept & Net Book Value Process Load Depr Rept & Net Book Value Process Reports Support for GAAP PBC 80 & 81 CSU Reporting Tables CSU Reporting Tables Reports 18 & 18s GAAP Derivation Process FIRMS Table CSU_FIRMS_AL_AM FIRMS Table CSU_FIRMS_AL_AM GAAP Table CSU_FIRMS_AL_AM GAAP Table CSU_FIRMS_AL_AM Report 19 AM Accounting Line Table DIST_LN AM Accounting Line Table DIST_LN 501 Job Process General Leger GAAP Lookup/Replace Table CSU AM PROCESS FLOW

4. Legal Requirement Depreciation expense is not recognized Assets and accumulated depreciation are recorded in a “memo” fund April 2015Year-End GAAP Training4

5. Legal Requirement (cont.) Acquire an asset Dr Operating Expense Cr Cash Dr Fixed Asset Cr Investment in Fixed Asset – Equity Depreciate an asset Cr Investment in Fixed Asset - Equity Cr Accumulated Depreciation in Fixed Asset April 2015Year-End GAAP Training5

6. Memo Fund – SCO 0997.CSU Fund 501 April 2015Year-End GAAP Training6 Acquire an asset in the CSU Dr Operating Expense Cr Cash Dr Fixed Asset Cr Investment in Fixed Asset – Equity Depreciate an asset Cr Investment in Fixed Asset - Equity Cr Accumulated Depreciation in Fixed Asset 501 485

7. Memo Fund (cont.) April 2015Year-End GAAP Training7

8. Memo Fund (cont.) April 2015Year-End GAAP Training8

9. GAAP Requirement April 2015Year-End GAAP Training9 Legal Addition Adjusted for GAAP Dr Operating Expense Transfer Out Cr Cash Dr Fixed Asset Cr Investment in Fixed Asset – Equity Transfer In Depreciation expense is recognized. Dr Investment in Fixed Asset – Equity Depr. Exp. Cr Accumulated Depreciation in Fixed Asset 811 881

10. PeopleSoft Accounting Entries Asset Categories and Asset Transaction Types (TRANS_TYPE) control the debit and credit for each accounting entry Categories – ex. Equip Transaction Types – ex. ADD, DPR, RET Profile – ex. Equipment – Computer April 2015Year-End GAAP Training10

11. PeopleSoft Accounting Entries (cont.) Within a transaction type, the accounts for the debits and credits are established by Distribution Types (DISTRIBUTION_TYPE) ex. FA, AD, DE, AP & GL April 2015Year-End GAAP Training11

12. PeopleSoft Accounting Entries (cont.) April 2015Year-End GAAP Training12

13. PeopleSoft Accounting Entries (cont.) Acquire an asset Accounts Payable Dr Operating Expense Cr Cash AM Accounting Dr FA – Fixed Asset Cr AP – Contra Asset April 2015Year-End GAAP Training13

14. CSU AM Design Accounting entries generated by AM are not posted to xxCMP or xxCSU AM is derived to xxCSU CSU_FIRMS_AL_AM derivation rules from DIST_LN Transaction Type (TRANS_TYPE) and Distribution Type (DISTRIBUTION_TYPE) are retained April 2015Year-End GAAP Training14

15. CSU AM Design (cont.) Legal requirements supported by 501 accounting entries modification CSU Fixed Asset Entries>Fixed Asset Entry Creation GAAP requirements supported by AM derivation April 2015Year-End GAAP Training15

16. CSU AM Design – GAAP AM Derivation April 2015Year-End GAAP Training16

17. Common Reasons for GAAP AM Adjustments PY GAAP Adjustments for additions or retirements Reverse PY adjustment April 2015Year-End GAAP Training17

18. Prior Period Adjustments Page Updates April 2015Year-End GAAP Training18

19. Common Reasons for GAAP AM Adjustments Gifts Reclassify the credit to expense to a credit to “Grants and Gifts, Capital Revenue” if no entry to legal. If entries in Chapter 39 section 3.3 used, no GAAP adjustment needed April 2015Year-End GAAP Training19

20. Common Reasons for GAAP AM Adjustments (cont.) Current year capitalization of CWIP or PWIP recognized in a prior reporting year Original expense eliminated in the year of the CWIP or PWIP addition As the ADD is processed the system will book the elimination again Find the elimination entries in the derivation tables and book an adjustment April 2015Year-End GAAP Training20

21. Prior Period Adjustments Page Updates April 2015Year-End GAAP Training21

22. Common Reasons for GAAP AM Adjustments Fixes to AM assets – incorrect profile/acquisition fund at point of entry Original expense elimination entry will occur as many times as an ADD or ADJ transaction was entered into AM Find gross up entries in the derivation tables and book an adjustment April 2015Year-End GAAP Training22

23. Other entries that will require adjustments Any transaction where the expense recorded derived NACUBO program code using Rule 2 Any asset that is added where the original expenses were recorded Salaries, benefits or other accounts that do not derive to 722004 – Supplies & Other Services April 2015Year-End GAAP Training23

24. Tables used in these processes AM_DIST_LN CSU_FIRMS_AL_AM CSU_GAAP_AL_AM April 2015Year-End GAAP Training24

25. References Legal Manual http://www.calstate.edu/SFSR/Y-E- R_Instructions/Legal- Manual/LegalManual/Chpt_39_Fixed_Assets_FINAL.doc http://www.calstate.edu/SFSR/Y-E- R_Instructions/Legal- Manual/LegalManual/Chpt_39_Fixed_Assets_FINAL.doc Legal Objects for Fixed Asset Reporting http://www.calstate.edu/SFSR/Y-E-R_Instructions/Legal- Manual/LegalManual/Appendix_10_Table_of_Fixed_Ass et_and_Accumulated_Depreciation_Amortization_Object _Codes_FINAL.doc http://www.calstate.edu/SFSR/Y-E-R_Instructions/Legal- Manual/LegalManual/Appendix_10_Table_of_Fixed_Ass et_and_Accumulated_Depreciation_Amortization_Object _Codes_FINAL.doc April 2015Year-End GAAP Training25

26. References April 2015Year-End GAAP Training26 AM T-Accounts ADD, ADJ, RET and DPR

27. www.calstate.edu April 2015Year-End GAAP Training27