Defining Your Organizational Structure

This chapter provides an overview of organizational structure requirements and discusses how to:

• Set up general options.

• Define business units.

• Define account types and accounts.

• Define ledger templates.

• Establish ledgers.

• Define models and scenarios.

• Create trees.

Understanding Organizational Structure Requirements

Before you can define consolidation rules and establish consolidation models, you need to define the supporting data that describes your organizational structure, including:

• General options.

  These include installation options, country and state information, accounting calendars, timespans, currency-related tables, user defaults, units of measurement, market rates, accounts, and so on.

• Business units.

• Ledger templates and ledgers.

• Models and scenarios.

• Account types and accounts.

• Trees.

Note. These topics are covered in detail in the PeopleSoft Enterprise Performance Management Foundation for Analytical Applications and Performance Management Warehouse 8.9 PeopleBook. The information covered in this chapter provides supplemental details that are specific to Global Consolidations.

See Also

Getting Started with PeopleSoft Enterprise Performance Management Warehouse

Setting Up General Options

There are several supporting objects that you must establish within PeopleSoft Enterprise Performance Warehouse that are used by Global Consolidations. Refer to the PeopleSoft Enterprise Performance Warehouse 8.9 PeopleBook. for details.

See Setting Up EPM Foundation.

Defining Business Units

This section provides an overview of business units and discusses how to establish business units for Global Consolidations.

Understanding Business Units

Business units in Global Consolidations can be legal entities, a portion of a legal entity, or a collection point for consolidation specific entries. There are several categories of business units used in Global Consolidations, and it is important to understand how they differ, and the terms used to refer to them.

Page Used to Define Business Units

Establishing Business Units for PeopleSoft Global Consolidations

Access the Warehouse Business Unit page.

This page is described in detail in the PeopleSoft Enterprise Performance Warehouse PeopleBook. The Business Unit Type group box is particularly important to PeopleSoft Enterprise Global Consolidations, and includes these options:

This example shows a simple consolidation tree:

In the example, AMERI, USCON, E1300, and E1330 could be set up as nonprocessing business units. The root node ('10000' in this case) typically is a common consolidated business unit, but that is not a requirement.

See Also

Setting Up Warehouse Business Units

Defining Account Types and Accounts

This section provides an overview of account types and accounts and discusses how to:

• Define account types.

• Define accounts.

Understanding Account Types and Accounts

Accounts categorize monetary values stored in ledgers; they classify the nature of a transaction. Typically you load subsidiary ledger accounts by using PeopleSoft Enterprise Performance Warehouse, but you may need to create the accounts used by your consolidation ledger.

Account types categorize accounts that normally appear on a balance sheet versus those that appear on an income statement, and also specify whether or not accounts are balance forward accounts. You need to define your organization's account types and assign the balance forward flag appropriately. When you define a new account, you associate it with an account type.

See Also

Setting Up Warehouse Business Units

Setting Up Account Information

Pages Used to Define Account Types and Accounts

Defining Account Types

Access the Account Types page.

Balance Forward

Select to store balance forward amounts for this account type. For example, typically you define asset, liability, and equity accounts as balance forward accounts, but not revenue or expense accounts. When you define accounts by using the Accounts page, the accounts adopt the balance forward attribute of the account type that you assign to them.

Defining Accounts

Access the Accounts page.

Monetary Account Type

Select the account type associated with this account.

Within the Account region, indicate which application this account is associated with.

The remaining fields on this page do not apply to PeopleSoft Enterprise Global Consolidations.

Defining Ledger Templates

This section provides an overview of ledger templates and discusses how to:

• Define consolidation ledger templates.

• Define source subsidiary ledger templates.

• Define spreadsheet/manual entry ledger templates.

See Also

Defining Performance Ledger Templates

Understanding Ledger Templates

A ledger template is similar to metadata; it describes the physical structure of ledger record objects, and designates which database records a ledger uses. In addition, for consolidation ledgers, it defines the ledger format and consolidation processing method.

Ledgers for which you need to establish ledger templates are:

• Consolidation ledgers.

  Contain the data used as input into consolidation processing. The source subsidiary ledger data is moved into the consolidation ledger during ledger preparation. The consolidation ledger is updated when you run the consolidation processes.

• Source subsidiary ledgers.

  Contain subsidiary data prior to consolidations. The ledger preparation process converts the subsidiary ledger data to the common consolidation ledger structure, then moves the data into the consolidation ledger. Each subsidiary ledger with a unique structure must have its own separate ledger template.

• Other ledgers: for example, performance ledgers, budgeting ledgers, and spreadsheet/manual entry ledgers that you opt to use.

Consolidation Ledger Format

On the ledger template, you specify whether a consolidation ledger uses either a financial statement format or a trial balance format.

The manner in which the financial statement format stores and processes ledger data is:

• Balance sheet account types, including balance sheet memo items, are end-of-period balances, and no period activity amounts are calculated.

• Income statement, other change in capital, and income statement memo account types are period activity amounts.

• The balance sheet is fully balanced (all changes in equity, such as net income, are closed to the balance sheet each period).

• All changes to equity on the balance sheet are included in the income statement or statement of change in shareholders equity.

  That is, last period equity plus this period change in equity equals this period equity.

• The Balance Forward check box on the Account Type page controls how the account data is stored and processed:

  • If the Balance Forward check box is selected, the data for that account type is stored and processed as an end-of-period balance.

  • If the Balance Forward check box is not selected, the data for the account type is stored and processed as a period activity amount.

The manner in which the trial balance format stores and processes ledger data is:

• All account types are stored as period-activity amounts.

  (End-of-period balances for balance sheet account types can be calculated for inquiry and reporting purposes.)

• The entire set of accounts (all account types except memo items) are used in balancing monetary amounts; the balancing account type rule specifies which accounts must balance.

End-of-period balances reflect the account balances as of the end of the reporting period; prior period balances are irrelevant. End-of-period balances are usually associated with balance sheet data. Period activity amounts reflect the activity on an account over the duration of an accounting period; amounts from multiple periods may be accumulated for quarter-to-date and year-to-date (YTD) reporting.

Processing Options for Consolidation Ledgers

At the consolidation ledger template level you establish whether to run the consolidation processes using YTD data or data for a single period. This option applies only to trial balance format ledger templates.

If the processing method is set to use YTD data, all periods less than or equal to the period specified in the run control are processed for the specified fiscal year. A reversal batch is also created for the next period with the amounts reversed, so that when you process that next period, duplicate data is not created (because you will be running for all periods up to and including that period, each time that you run). When posting the journals for the run, you must make sure that the reversal batch is also posted.

If the processing method is set to use period data, only the specified period is processed. This method is more efficient, but includes only ledger data for the period specified in the run control. With this method, if you plan to run the engines by using the proforma option, which includes journals that have not been posted, the journals created in prior periods are not included.

When processing financial statement format ledgers, the system uses the end-of-period balance for balance forward accounts, and the period activity amounts for non-balance forward accounts.

Note. Once you establish the processing method and ledger format, don't change them.

See Also

Defining Performance Ledger Templates

Pages Used to Define Ledger Templates

Defining Consolidation Ledger Templates

Access the Ledger Template page.

General instructions for defining ledger templates appear in the PeopleSoft Enterprise Performance Warehouse PeopleBook. The following information applies specifically to ledger templates created for use with Global Consolidations.

To define a ledger template for a consolidation ledger (CLED):

1. Access the Ledger Template page, specifying the ledger template ID.

2. Select the Detail option.

   Consolidation ledgers must be detail ledgers.

3. Select Consolidation Ledger in the EPM Ledger Type field.

4. Select the Used in Consolidations check box, if applicable.

   This is optional for a consolidation ledger. The purpose of Used in Consolidations is to indicate EPM ledger types—other than consolidation ledgers—that are used in consolidations. If the EPM Ledger Type field is Consolidation Ledger or Consolidation Source Ledger, then the Used in Consolidations check box is not necessary because either of these EPM ledger types, by definition, indicate they are consolidation ledgers.

5. Select the ledger record.

   This is the database record that you create for the consolidation ledger (GC_CLED_MGT_F00 or a clone based on this record).

6. Select the journal line record.

   This is the database record that you create for the journal table ( GC_JRNL_MGT_F00 or a clone based on this record).

7. Complete the Ledger Template - ChartFields page.

8. Complete the Ledger Template - Edit and Post Variables page.

   The database records are GC_CLED_MG1_T, GC_CLED_MG2_T, GC_CLED_MG3_T, and GC_CLED_MG4_T, for temp tables 1–4, respectively or cloned versions of these temp tables if your consolidation ledger structure was modified.

9. Access the Ledger Template - Consolidation Variables page, and select the database record that you defined for each of these objects.

   The Source Staging and Source TSE Record tables are not used by a consolidation ledger (CLED) and should be left blank; the remaining fields are required.

   See Establishing Required Record Objects.

10. Select the ledger format option and the processing method.

    Financial-statement-based ledger formats must use the Use period data processing method.

    See Understanding Ledger Templates.

11. Select flow processing if you want to use data flows for consolidations.

    After selecting the flow processing option, enter the Flow Activity Record, Flow Input Record, Flow Activity Work, and Flow Activity Work2 data base records that you defined for each of these objects.

    The Flow Activity Record value is GC_FLOW_MGT_F00.

    The Flow Input Record value is GC_FLIN_MGT_F00.

    The Flow Activity Work value is GC_FLOW_MG2_T.

    The Flow Activity Work2 value is GC_FLOW_MG3_T.

See Also

Establishing Required Record Objects

Defining Source Subsidiary Ledger Templates

You also must define ledger templates for all subsidiary ledgers used as source data for consolidations. This information is used by the ledger preparation engine to locate the source data during processing. To define a source subsidiary ledger template:

1. Complete the Ledger Template page:

   1. Select the EPM ledger type.

      Select Consolidation Source Ledger for non-PeopleSoft source ledgers. The other ledger types listed are PeopleSoft ledgers; select the appropriate type if your source ledger is from another PeopleSoft application.

   2. Select the Used in Consolidations check box.

   3. Specify the ledger record.

      This should be the database record that contains the source ledger data such as PS_LEDGER.

   4. Do not complete the Journal Line field.

2. Access the Ledger Template - Consolidation Variables page, and specify the database record used for the source staging ledger.

   The remaining fields on the page do not apply to source subsidiary ledger templates.

Defining Spreadsheet/Manual Entry Ledger Templates

You also must define ledger templates for all spreadsheet/manual entry ledgers used as source data for consolidations. This information is used by the ledger preparation engine to locate the source data during processing. To define a spreadsheet/manual entry ledger template:

General instructions for defining ledger templates appear in the PeopleSoft Enterprise Performance Warehouse 8.9 PeopleBook. The following information applies specifically to ledger templates created for use with PeopleSoft Enterprise Global Consolidations.

1. Complete the Ledger Template page:

   1. Select the EPM ledger type.

      Select Spreadsheet Input Ledger for spreadsheet/manual entry ledgers. The other ledger types listed are PeopleSoft ledgers; select the appropriate type if your source ledger is from another PeopleSoft application.

   2. Select the Detail option.

      Consolidation ledgers must be detail ledgers.

   3. Select the Used in Consolidations check box.

   4. Select the ledger record.

      This should be the database record that contains the spreadsheet/manual entry ledger data.

      In this case the record is GC_LEDMANL_F00.

   5. Select the Journal Line record.

      In this case the record is PF_JRNL_F00.

2. Complete the Ledger Template - ChartFields page.

3. Access the Ledger Template - Consolidation Variables page, and specify the database record used for the source staging ledger and source TSE record.

   The database record used for the source staging ledger is GC_SLED_MANL.

   The database record used for the source TSE record is GC_TSE_MANL_FLD.

   The remaining fields on the page do not apply to spreadsheet/manual entry ledger templates.

Establishing Ledgers

This section provides an overview of ledgers and discusses how to define consolidation ledgers or consolidation source ledgers.

Understanding Ledgers

Once you've defined ledger templates for your consolidation ledger, spreadsheet/manual entry ledgers, and consolidation source ledgers, you create the ledgers with which to associate them. These ledgers are always detail ledgers. When establishing a ledger, you indicate whether it must balance. For trial balance format ledgers, you also need to specify the format in which the data is received, by account type.

The rules that apply to the relationship between the source subsidiary ledgers and the consolidation ledger are:

• If your consolidation ledger is in financial statement format, then source data maps to balance forward account types must contain period end balances, and source subsidiary ledger data that maps to non-balance forward account types must contain period activity.

• If your consolidation ledger is in trial balance format, the source subsidiary ledger data can be either period end balances (also referred to as YTD balances) or period activity; indicate on the ledger definition for each source subsidiary which account types are received as YTD amounts.

  During ledger preparation processing, the YTD amounts are converted to current period activity. If none of the account types are received as YTD, then the system assumes that the source subsidiary ledger balances are for period activity.

• Period 0 is required for trial balance format.

Account balances are stored in the consolidation ledger as debit or credit values (positive and negative amounts). You must load the source ledger into the warehouse with the account balances as debit or credit amounts.

Pages Used to Establish Ledgers

Defining Consolidation Ledgers or Consolidation Source Ledgers

Access the Detail Ledger - Definition page.

1. Enter the description, and select the ledger template used by this ledger.

2. Optionally, complete the remaining fields on this page, which vary depending on the EPM ledger type of the associated ledger template (specified on the Ledger Template page):

   Ledger	Enter the name of the detail ledger. This field acts as a filter, and associates only the subset of data from the database ledger record defined by the specified ledger to this ledger. This field is available when the EPM ledger type is a non-EPM source ledger, such as Standard General Ledger, or when the EPM ledger type is set to Consolidation Source.
   Budgeting Scenario	Indicate to which budgeting scenario this ledger is associated. (Applies only when the EPM ledger type is set to one of the budget ledger types.) This field acts as a filter, and associates only the subset of data from the database ledger record defined by the specified budgeting scenario to this ledger.
   Scenario ID	(Optional) Specify a scenario for this ledger. The scenario acts as a filter, and associates only the subset of data from the database ledger record defined by the scenario to this ledger. This option applies only to these EPM ledger types: consolidation ledger, performance management ledger, and planning ledger. If the EPM ledger type is Consolidation Ledger, the scenario ID is optional, and typically you leave it blank. For consolidation source ledgers based on an EPM ledger (the EPM ledger type is Performance Management or Planning Ledger and the Used in Consolidations field is selected), enter a scenario ID to use the data defined by that scenario as input for consolidations.

3. Access the Detail Ledger - Consolidations page.

4. Select Balanced Ledger if you require that accounting entries balance for this ledger.

   If this check box is not selected, the system permits unbalanced accounting entries.

5. If any of the balances for the various account types in the ledger are received as YTD amounts, select the account type in the Account Types Received as YTD grid, adding rows as needed.

6. In the Contact List for Consolidation Processes region specify who to contact for information about the different phases of consolidations, by ledger business unit.

   For each row, indicate the ledger business unit, the employee ID of the contact person, the functional area for which the contact person is responsible, the contact person's work phone number, email address, department, and location, and any comments.

You associate a consolidation ledger with a common consolidation business unit when you establish a consolidation model.

See Also

Establishing Consolidation Models

Defining Models and Scenarios

This section provides an overview of models and scenarios and discusses how to set up models and scenarios.

Understanding Models and Scenarios

Models and scenarios group together related rules that are used as a unit of work when processing. A model is a categorization within which you group related data. Models are associated with a scenario. A scenario represents a related set of data to treat as a distinct group—such as budget, actual, or forecast—to process together. Models and scenarios are established in the PeopleSoft Enterprise Performance Warehouse.

Pages Used to Define Models and Scenarios

Setting Up Models and Scenarios

To set up models and scenarios:

1. Define models.

   You must create a model definition before you can further define the model as a consolidation model.

2. Define scenarios by using the Scenario Definition page.

   When creating the scenario for use with consolidations, select the Consolidated check box.

3. Associate a scenario with the common consolidation business unit by using the Warehouse Business Unit Scenario Definition page.

Creating Trees

This section provides an overview of how trees are used in Global Consolidations and discusses how to create trees.

Understanding Trees

Trees are used in Global Consolidations to describe your consolidation structure, for reporting, and for defining ChartField value sets. For detailed information about creating trees, see the PeopleTools Tree Manager documentation.

See Enterprise PeopleTools PeopleBook: PeopleSoft Tree Manager

Guidelines for Consolidation Trees

You create consolidation trees to depict the hierarchical relationship of the entities within a consolidation. You must define a different consolidation tree for each unique dimension by which you consolidate. For example, to create two consolidation models—one that consolidates by business unit and one that consolidates by department—you would need a separate tree for each. You assign one consolidation tree per consolidation model. When you process consolidations, you specify which node of the tree (and its descendents) to consolidate. Consolidation trees are node-oriented trees.

Each branch or parent node in your consolidation tree must include one, and only one, elimination entity. Journal entries created during consolidation processing are booked to the elimination entity. This is a “logical” object that must be defined within the dimension table of the consolidation dimension. For example, if your consolidation dimension is department, then you need to create a “logical” elimination department at each node of the consolidation tree. If you are consolidating by business unit, you need to create a business unit definition for the elimination entity. Typically the root node of a business unit consolidation tree would be your common consolidation business unit, but that is not a requirement.

When processing close rules, flows, eliminations, equitization, and non-controlling interest, the system uses the tree structure to determine where to book the resulting journal entries. Elimination and non-controlling interest book the entries for each entity in the consolidation tree at the corresponding elimination node. Equitization records the reversing entries in the elimination node; the equitization entries are booked to the parent. In cases where transactions occur between business units (or other consolidation dimension) located at different levels of the tree, the application engines use the lowest common elimination entity between parent and subsidiary to book the entries.

Establishing Other Trees

Besides the consolidation tree, there are other trees that you need to define. For example, you use an account tree when establishing ChartField value sets to specify a group of particular accounts. You must create a business unit tree for the consolidation model even when you are consolidating by a dimension other than business unit. In addition, trees are used for some inquiry pages as reporting trees, and control the level at which information is grouped. Trees used as inquiry page reporting trees must be defined with the Use of Levels field set to strictly enforced.

Defining Tree Metadata

You must establish metadata for each tree that you define. Within the PeopleSoft Enterprise Performance Warehouse framework, the metadata is used when running processes and using inquiry pages. Refer to the PeopleSoft Enterprise Performance Warehouse PeopleBook for information about setting up metadata.

See Setting Up and Flattening Tree Metadata.

Pages Used to Create Trees

Establishing Trees

Access the Tree Manager page.

For detailed information about creating trees, see the PeopleSoft Tree Manager documentation.

See Enterprise PeopleTools PeopleBook: PeopleSoft Tree Manager