Year End Encumbrance Processing PeopleSoft 7.5

1. Year End Encumbrance ProcessingPeopleSoft 7.5 Presented by Letitia Coate Controller Sonoma State University June 8, 2004

2. Year End Encumbrance ProcessingPeopleSoft 7.5 • Agenda • CSUGL015 Encumbrance Process – 7.5 • Encumbrance Categories • Processing Encumbrance Categories • Set-up Requirements • General Ledger Entries • Questions Slide 2

3. CSUGL015 Encumbrance Process • Job CSUGL015 Year End Encumbrance Process • Go, CSU Administer Integration, Manage CO/State Requirements • Process, Year End Encumbrance Slide 3

4. CSUGL015 Encumbrance Process

5. Encumbrance Categories • CSUGL015 Categorizes Encumbrances: • Remaining – Purchase Orders that are completed; cannot be liquidated. • Obligations – Purchase Orders where goods/services received; invoice not received. • Governmental Encumbrances – Not obligations; belong to Governmental Funds. • Non-Governmental Encumbrances – Not obligations; belong to Non-governmental Funds. Slide 5

6. Processing Encumbrance Categories • Remaining • Creates a reversing encumbrance journal entry that liquidates encumbrance for closing year. • Encumbrance is restored in Period 1 of new year. Slide 6

7. Processing Encumbrance Categories • Obligations • Creates a reversing encumbrance journal entry that liquidates encumbrance for closing year. • Encumbrance is restored in Period 1 of new year. • Creates a reversing posted total journal entry that records encumbrance as a payable (201801) in closing year. • Payable is reversed in Period 1 of new year. Slide 7

8. Processing Encumbrance Categories • Governmental Encumbrances • Creates a reversing encumbrance journal entry that liquidates encumbrance for closing year. • Encumbrance is restored in Period 1 of new year. • Creates a reversing posted total journal entry that records encumbrance as a payable (201809) in closing year. • Payable is reversed in Period 1 of new year. Slide 8

9. Processing Encumbrance Categories • Non-governmental Encumbrances • Creates a non-reversing encumbrance journal entry that moves the encumbrance to Period 998 in new fiscal year. • Does not create a posted total journal entry. • Reserve for Encumbrance Account must be set as an Expense type account for this process. Slide 9

10. Set-up Requirements for CSUGL015 • Key Set-up Elements • “STANDARD” Accounting Entry Template – Encumbrance Offset (Encumbrance Reserve Account • Accounting Entry Definitions • Journal Sources • Journal Generator Templates • Refer to CSU Year End Business Process – Legal Closing Process Guide for specific set-up instructions. • Web address for documentation: http://cms.calstate.edu/T5_FUGYEInfo.asp Slide 10

11. General Ledger • “Posted Total” Journal Entries for SAM99 (Memo Entry) • Non-Reversing Journal Entry for Governmental and Non-Governmental Funds; Accounts to use: • 403002 <Reserve for Encumbrance> • 403001 Encumbrances • Account Type = Expense for both accounts • State GL Mapping: • 403002 = 53500000 Reserve for Encumbrances • 403001 = 61500000 Encumbrances Slide 11

12. Questions Slide 12