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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
April 2015 Year-End GAAP Training 4
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 2015 Year-End GAAP Training 5
Memo Fund – SCO 0997.CSU Fund 501
April 2015 Year-End GAAP Training 6
• 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.)
April 2015 Year-End GAAP Training 7
Memo Fund (cont.)
April 2015 Year-End GAAP Training 8
GAAP Requirement
April 2015 Year-End GAAP Training 9
• 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
April 2015 Year-End GAAP Training 10
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 2015 Year-End GAAP Training 11
PeopleSoft Accounting Entries (cont.)
April 2015 Year-End GAAP Training 12
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 2015 Year-End GAAP Training 13
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 2015 Year-End GAAP Training 14
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 2015 Year-End GAAP Training 15
CSU AM Design – GAAP AM Derivation
April 2015 Year-End GAAP Training 16
Common Reasons for GAAP AM Adjustments
• PY GAAP Adjustments for additions or retirements• Reverse PY adjustment
April 2015 Year-End GAAP Training 17
Prior Period Adjustments Page Updates
April 2015 Year-End GAAP Training 18
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 2015 Year-End GAAP Training 19
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 2015 Year-End GAAP Training 20
Prior Period Adjustments Page Updates
April 2015 Year-End GAAP Training 21
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 2015 Year-End GAAP Training 22
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 2015 Year-End GAAP Training 23
Tables used in these processes
• AM_DIST_LN
• CSU_FIRMS_AL_AM
• CSU_GAAP_AL_AM
April 2015 Year-End GAAP Training 24
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
April 2015 Year-End GAAP Training 25
References
April 2015 Year-End GAAP Training 26
Microsoft Excel 97-2003 Worksheet
AM T-Accounts ADD, ADJ, RET and DPR