reconciling project costing to the general ledger
TRANSCRIPT
Prepared by:
Session ID:
Reconciling Project Costing to the
General Ledger
Millie Babicz
Managing Director
SpearMC Consulting
@SpearMC
Functional Reconciliation/Analysis Tips & Tricks
101270
Agenda
• About Us
• Introduction
• Reconciliation Steps
• Other Reconciliation/Analysis Tips & Tricks
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About SpearMC
Your Presenter
• ERP Implementation Specialist at KPMG for 13 years before joining
SpearMC in 2007
• PeopleSoft Financials, Financial Control and Reporting Expert
• Certified PeopleSoft Financials
• 20 Years Experience in Project / Program Management
Millie Babicz, CPAManaging Director
866-SPEARMC x802
www.SpearMC.com
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About SpearMC
Founded in 2004, SpearMC is a technology and
professional services firm specializing in
• PeopleSoft Financials and Supply Chain Management
• PeopleSoft Human Capital Management and Payroll
• ERP Architecture and Application Development
• Project and Program Management (PMO)
• Change Management
• ERP Training
• Mobile Technology
• Maximo Enterprise Asset
• Oracle Business Intelligence
5
About SpearMC
Regional offices in Chicago, Denver, Houston,
Seattle and San Francisco
• We focus on local market delivery and capability development in line with
industry focus areas unique to the regions we serve.
• Our local and well-connected network of top-tier business analysts,
technical leads, developers and project managers keep travel cost to a
minimum.
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About SpearMC
• PeopleSoft Specialization
Oracle Gold Partner Since 2008
• Applications Reseller
• Hardware Reseller
IBM Advance Business Partner
Introduction
Project Costing Integration
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Reconciliation Steps
Reconciliation Steps
• Determine Scope
• Identify Variances at Summary Level
• Identify Cause of Variances
• Determine How to Correct Existing Errors
• Determine How to Prevent Future Errors
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Determine Scope
Determine Scope
• Identify the type of transactions that will be reconciled
o Expenses, Revenue, Transfers
• Identify the ChartFields that will be reconciled
• Identify Analysis Types for each type of transaction
o Consider creating a new Analysis Group (s) for reconciliation/reporting
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Determine Scope
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Budget (BUD)
Actual Cost (ACT)
GL Expense (GLE)
Indirect Cost (SFA)
Billable Amt (BIL)
Billed Amt (BLD)
Fixed Rev (FRV)
Fixed Billed (FBD)
Budget (BUD)
Actual Cost (ACT)
GL Expense (GLE)
Indirect Cost (SFA)
Billable Amt (BIL)
Billed Amt (BLD)
Fixed Rev (FRV)
Fixed Billed (FBD)
Budget (BUD)
Actual Cost (ACT)
GL Expense (GLE)
Indirect Cost (SFA)
Billable Amt (BIL)
Billed Amt (BLD)
Fixed Rev (FRV)
Fixed Billed (FBD)
Budget (BUD)
Actual Cost (ACT)
GL Expense (GLE)
Indirect Cost (SFA)
Billable Amt (BIL)
Billed Amt (BLD)
Fixed Rev (FRV)
Fixed Billed (FBD)
Projects
Activities Activities
Transactions Transactions Transactions Transactions
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Determine Scope
• Identify Project Costing field/fields to be used for determining Accounting
Period
o E.g. Accounting Dt
o Note: must easier to reconcile as of a point in time (closed period if
possible)
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Determine Scope
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PC/CA GL Staging Table (CA_ACCTG_LN_PC) can be used to:
• Obtain the Accounting Dt for As Incurred Revenue (as the revenue may not be recognized in the same period as the original cost
• Obtain the account for cost/revenue created in PC (Pricing)
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Accounting Dt An Type Account GL Distrib Amount
1/15/2015 ACT 527500 I $500
1/15/2015 IND 527500 D $100
1/15/2015 BIL 527500 D $500
1/15/2015 BIL 527500 D $100
Accounting Dt An Type Account Amount
1/15/2015 IND 593110 $100
1/15/2015 IND 493999 <$100>
2/28/2015 BIL 132900 $500
2/28/2015 BIL 432034 <$500>
2/28/2015 BIL 132900 $100
2/28/2015 BIL 432034 <$100>
Proj Resource PC/CA GL Staging Table
Determine Scope
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Type 1/1 – 1/2015 2/1 – 2/28/15
Total Cost $600 $0
Total Revenue $0 $600
In this example, the PC cost and revenue would be reported as:
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Accounting Dt An Type Account GL Distrib Amount
1/15/2015 ACT 527500 I $500
1/15/2015 IND 527500 D $100
1/15/2015 BIL 527500 D $500
1/15/2015 BIL 527500 D $100
Accounting Dt An Type Account Amount
1/15/2015 IND 593110 $100
1/15/2015 IND 493999 <$100>
2/28/2015 BIL 132900 $500
2/28/2015 BIL 432034 <$500>
2/28/2015 BIL 132900 $100
2/28/2015 BIL 432034 <$100>
Proj Resource PC/CA GL Staging Table
Determine Scope
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Accounting Date Tip: For Cost Collection from the GL, Date Type
not only can be used to filter down journal entries to bring into PC but
it also populates the Accounting Date field in PC (Proj Resource)
with the field value of the specified data type - either Journal Date or
Posted Date). Default is Posted Date.
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Identify Variances at Summary Level
Identify Variances at Summary Level
• Build report/query to identify PC to GL variances at the ChartField string
summary
o E.g. PCBU - Project – Activity – Fund – Account
• Options:
o Query with multiple unions that reports balances in the PC and GL.
Utilize Pivot table to obtain variances
o Custom Report
o Custom View which allow you to build a query reporting variances only
o Composite Query (PeopleTools 8.54)
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Identify Variances at Summary Level
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Identify Variances at Summary Level
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• Keep in mind that the Analysis Group set up determines how
the Amounts are brought into Proj Resource for GL
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Identify Variances at Summary Level
• As of 9.2, Direct Journal transactions can be loaded to Project
Costing during the Receivables to Project Costing interface
process (PC_AR_TO_PC).
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Identify Variances at Summary Level
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• As of 9.2, Bills that are entered directly into PeopleSoft
Billing can be loaded to Project Costing during the Billing to
Project Costing interface process (PC_BI_TO_PC)
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Cause of Variances
Cause of Variance
• Build query to identify variances by Journal ID
• Three possible types of variances
1. In PC but not in GL
2. In GL but not in PC
3. In both but the amounts are different
• Start with one project and one variance.
• Research variance to determine cause.
• Once the variance is understood, create query to find error for all projects.
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Cause of Variance
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Cause of Variance
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Cause of Variance
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Cause of Variance
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Cause of Variance
• PC to GL template can be helpful to linking each variance to the variance
reason to explain all variances
• Tip: Start with the easy variances (not the largest and most complex.)
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Cause of Variance
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Correct Existing Errors
Correct Existing Errors
• Correct in the source system when possible
• Easy/In progress errors:
o Process accounting or journal generate
o Post Journals
o Run or process allocation
• GL Only Entry
• PC Only Entry (Add Transaction)
• Correct Analysis Type-Account mismatch via JE
• Correct Jrnl/Accounting Date mismatch via JE
• Update customization or create new fix
o External journal updated to set PC Distrib Status to N
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Prevent Future Errors
Prevent Future Errors
• Add additional checks/queries to Month End Close
• Create/update combo edits
• Update customizations
• Update batch schedule
• Change in business process
• New customizations
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Other Reconciliation/Analysis Tips & Tricks
Other Reconciliation/Analysis
Tips & Tricks
• Pivot Table (Excel)
• Concatenate (Excel)
• VLOOKUP Function (Excel)
• WorkCenters (9.2)
• Reconciliation Workbench (9.1)
o Project Recon Workbench
o Contracts Reconciliation Summary
o Subsystem Reconciliation
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• Pivot table
o Very quick way to summarize and analyze data in Excel.
o Drag and drop wizard allows you to easily move between less to more
detail.
o Page fields allow you to filter summarized results to a specific value.
o Fast way to shift data presented in rows to columns.
o Fast way to shift between amounts versus count.
Other Reconciliation/Analysis
Tips & Tricks
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Other Reconciliation/Analysis
Tips & Tricks
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Other Reconciliation/Analysis
Tips & Tricks
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Other Reconciliation/Analysis
Tips & Tricks
• Concatenate
o Allows you to merge one or more Excel cells or text together as one
value.
o For the PC to GL reconciliation template, concatenated the string
Project – Activity – Account – Fund as one value so that Vlookup could
be used to link each variance to the variance reasons.
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Other Reconciliation/Analysis
Tips & Tricks
• VLOOKUP Function
o Allows you to “search the first column of a range of cells, and then
return a value from any cell on the same row of the range.” in Excel.
o Used VLOOKUP to add or subtract each variance reason until all
variances were fully explained.
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Other Reconciliation/Analysis
Tips & Tricks
1.) Look up this value…2.) in this Column
3.) and when
you find the
value, display
the value in
the 6th column.
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Other Reconciliation/Analysis
Tips & Tricks
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WorkCenters v9.2
• WC’s are central work area designed for the end user.
• The WorkCenter is intended to provide access to key
components within the Financials and Supply Chain
application
• Delivers information that a user needs to take action
on, such as exceptions, reports and queries.
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Other Reconciliation/Analysis
Tips & Tricks
WorkCenters v9.2 My Work: Critical Exceptions/Work you need to complete
Work Area: Workspace to do your work
Links: Other links you may need to use to complete work
Other important Reports/Queries
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Other Reconciliation/Analysis
Tips & Tricks
Reconciliation
• The Reconciliation Summary page allows you to view the results from the Reconciliation
Summary process.
• This page provides the difference between billing and revenue at the detail level as well as the
attributes that are related to retainages, withholdings, limits, and fees. The information provided
on this page enables you to determine where to complete the remaining process, or to make an
adjustment.
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Other Reconciliation/Analysis
Tips & Tricks
Reconciliation
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Other Reconciliation/Analysis
Tips & Tricks
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SpearMC Online Resources
• SpearMC online Tools & Resources can be found at
www.spearmc.com
51
SpearMC Presentations at Reconnect
Wednesday, July 20 @ 9:15 – 10:15 am
• Powerful PeopleSoft 9.2 Composite &
Connected Query
• Session ID: 101230
• Presented by Randy Johnson
Wednesday, July 20 @ 10:45 – 11:45 am
• How Oracle BI Publisher Serves your
PeopleSoft Reporting Needs
• Session ID: 101150
• Presented by Randy Johnson
Wednesday, July 20 @ 1:00 – 2:30 pm
• Extending PeopleSoft WorkCenters to
your Utility Supplier Partners
• Session ID: 101240
• Presented by Randy Johnson
Thursday, July 21 @ 9:15 – 10:15 am
• Reconciling Project Costing to the
General Ledger and Functional
Reconciliation/Analysis Tips & Tricks
• Session ID: 101180
• Presented by Millie Babicz
Thursday, July 21 @ 11:00 am – 12:30 pm
• Deep Dive into nVision and Query for
PeopleSoft 9.2 (Tools 8.54)
• Session ID: 101180
• Presented by Millie Babicz
52
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101270