AM GAAP Accounting Entries

Carmen Arreguin, CMS Functional Analyst/Progmr., CO

Sherry Pickering, Director, Fiscal Services, CSUEB

April 24, 2015

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 2015 Year-End GAAP Training 2

April 2015 Year-End GAAP Training 3

AM Dist Line FY/AP Update Process

Load Capital AssetTable Process

FIRMS Derivation Process

Complete PeopleSoft AM Month-End

ReportingTables

Load Depr Rept &Net Book Value Process

ReportsSupport for GAAP PBC

80 & 81

CSU ReportingTables

Reports18 & 18s

GAAP Derivation Process

FIRMS Table

CSU_FIRMS_AL_AM

GAAP Table

CSU_FIRMS_AL_AM

Report 19

AM Accounting Line

TableDIST_LN

501 Job Process

General Leger

GAAP Lookup/Replace

Table

CSU AM PROCESS FLOW

Legal Requirement

• Depreciation expense is not recognized • Assets and accumulated depreciation are

recorded in a “memo” fund

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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

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Memo Fund – SCO 0997.CSU Fund 501

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• 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

501

485

Memo Fund (cont.)

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Memo Fund (cont.)

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GAAP Requirement

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• 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

811

881

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

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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

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PeopleSoft Accounting Entries (cont.)

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PeopleSoft Accounting Entries (cont.)• Acquire an asset

• Accounts Payable• Dr Operating Expense

• Cr Cash

• AM Accounting

• Dr FA – Fixed Asset

• Cr AP – Contra Asset

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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

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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

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CSU AM Design – GAAP AM Derivation

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Common Reasons for GAAP AM Adjustments

• PY GAAP Adjustments for additions or retirements• Reverse PY adjustment

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Prior Period Adjustments Page Updates

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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

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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

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Prior Period Adjustments Page Updates

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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

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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

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Tables used in these processes

• AM_DIST_LN

• CSU_FIRMS_AL_AM

• CSU_GAAP_AL_AM

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References

• Legal Manual 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_Asset_and_Accumulated_Depreciation_Amortization_Object_Codes_FINAL.doc

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References

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Microsoft Excel 97-2003 Worksheet

AM T-Accounts ADD, ADJ, RET and DPR

www.calstate.edu

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