Reconciling PeopleSoft Cost Management and Payables

This chapter discusses how to use the CM/AP Reconciliation tool set.

Understanding the CM/AP Reconciliation Tool Set

Purchase order receipts to inventory can yield many inventory putaways. Each inventory putaway can yield many accounting entries, which generally debit an inventory asset account and credit the accrued liability account as specified on the purchase order receipt.

On the PeopleSoft Payables side, vouchers are entered to set up payment for vendor invoices. Each purchase order receipt to inventory can yield many vouchers from many vendors for the material and its landed cost charges. Each of those vouchers generally triggers a debit to accrued liability (as specified on the purchase order receipt) and a credit to accounts payable.

The CM/AP Reconciliation tool set helps with the task of ensuring that for each purchase order receipt, the entries to accrued liability from PeopleSoft Cost Management are reconciled with the entries from PeopleSoft Payables. These entries should offset, netting to zero. In practice, there are a number of situations where the accounting entries from the two sources do not offset:

Receipts are not yet put away.
Putaways and adjustments are not costed.
Putaways and adjustments are costed but accounting entries are not yet created.
Putaways and adjustments are costed and accounting entries are created, but are not picked up by the Journal Generator.
Receipts are not vouchered.
Receipts are vouchered but are not posted to voucher accounting lines.
Wait for final cost is in effect (select the Hold for Final Cost check box on the cost profile so that no costing of transactions occurs until the voucher is matched) if you run in midperiod mode (to minimize adjustments). In regular mode, the purchase order amounts post if the voucher is not yet processed.
Voucher amounts are different than the purchase order receipt amounts, and those matched cost adjustments are not yet processed through PeopleSoft Cost Management and passed on to the general ledger.
User-created journal entry to manually account for a difference.

Using the CM/AP Reconciliation Tool Set

The CM/AP Reconciliation tool set allows you to:

Run the CM/AP Reconciliation process (CM_APRECN) to match up PeopleSoft Cost Management entries for receipts against PeopleSoft Payable entries for receipts.
The CM/AP Reconciliation Summary provides inquiries into the receipts that do not offset each other, and drill-down capabilities through the details of those transactions. Also, there is an option to select receipts that should no longer be displayed on the reconciliation list. These receipts are designated by users as insignificant differences, or they are dealt with in some fashion, such as a manually entered journal entry. You can view and mark as reconciled the receipts having corresponding payables entries that do not balance to zero. You can also view and mark as reconciled the voucher entries that do not have corresponding costing entries but have been accounted for elsewhere.
Use the CM/AP Reconciliation Detail to view all detail information about PeopleSoft Payables transactions and PeopleSoft Cost Management transactions. You can also mark any discrepancies as reconciled.

Note. The CM/AP Reconciliation tool set doesn't perform reconciliation entries, but it does provide information necessary for you to understand and resolve reconciliation differences.

Pages Used to Reconcile PeopleSoft Cost Management and Payables

Page Name	Object Name	Navigation	Usage
CM/AP Reconcile	CM_APRECN_REQ	Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Reconcile Accrued Liability, CM/AP Reconcile	Run the CM/AP Reconcile process, after which you can use inquiry pages to find Payables transactions that you need to reconcile with PeopleSoft Cost Management transactions.
CM/AP Reconciliation Summary	CM_APRECN_INQ	Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Accrued Liability Summary, CM/AP Summary	View summary information about discrepancies between Payables transactions and PeopleSoft Cost Management transactions. You can also mark the discrepancies as reconciled.
CM/AP Reconciliation Detail	CM_APRECN_DETAIL	Cost Accounting, Inventory and Mfg Accounting, Analyze Inventory Accounting, Accrued Liability Details, CM/AP Detail	View all detail information about Payables transactions and PeopleSoft Cost Management transactions from the request process. You can also mark any discrepancies as reconciled.

Running the CM/AP Reconciliation Process

Access the CM/AP Reconcile page.

Use the CM/AP Reconcile process (CM_APRECN) to match PeopleSoft Cost Management accounting entries (that are posted to the general ledger) to a matching entry in Payables accounting line table. This process reports any entries that cannot be matched. After running the CM/AP Reconcile process, use inquiry pages to find Payables transactions that you need to reconcile with PeopleSoft Cost Management transactions. There are many causes of discrepancy; for example, maybe you did not voucher a receipt, or you entered a voucher for an amount that differs from the amount on the purchase order. Actions like these can then cause the system to, for instance, not voucher a receipt, not post a vouchered receipt to the voucher accounting lines, not pick up an accounting line with the journal generator, or to post a voucher to the liability account without a receipt.

Account

Enter the number (ChartField) of an accrued liability account. The system accepts the number of any account used by both PeopleSoft Cost Management and PeopleSoft Payables.

Fiscal Year and Accounting Period

Enter the time period to be used by this process. The system collects all receipts and vouchers from the first period of the fiscal year to the accounting period entered. Using this time period, the process:

Collects all receipts with the accrued liability account named in the Account field and marked as distributed to the general ledger.
Collects all vouchers matched to the receipts selected.
Collects all vouchers with the accrued liability account named in the Account field and marked as distributed to the general ledger.

Delete All Previous Results

Select if you want this run to delete the results of all previous runs. If the check box is not selected, only the data from the prior run of the selected Run Control ID and Request ID are deleted.

Using the CM/AP Reconciliation Summary

Access the CM/AP Reconciliation Summary page.

After you run the CM/AP Reconcile process, you can view summary information about discrepancies between PeopleSoft Payables transactions and PeopleSoft Cost Management transactions. You can also mark the discrepancies as reconciled.

Balanced receipt lines are marked as reconciled and do not appear on the summary page.

You can view the unbalanced receipts by total (summed to the receipt sequence number) or you can view account information. You can view unbalanced vouchers by voucher line or you can view account information. The tab that you select for receipts is independent of the tab that you select for vouchers.

Select Error OK if the discrepancy is acceptable and you do not want the receipt line to appear in future runs. The Receipt schedule is then considered reconciled.

Click the Details button at the end of a line to see the actual accounting entries for the receipt schedule line in the CM/AP Reconciliation Detail page.

Costing Entries with Voucher Balance

Use the Totals tab on this page to view and mark as reconciled the receivers having corresponding payables entries that do not balance to zero. This grid includes receivers having corresponding payables entries that do not balance to zero. A blank in the Payables Total column indicates that the system did not voucher the receipt; a value in the Payables Total column is the accounting entries summed to the voucher line. The Inventory Total column displays the accounting lines that are summed to the Receipt Schedule line, and the Difference column displays the absolute value of the difference between the payables total and the inventory total.

Use the first Account tab on this page to view account information for receivers having corresponding payables entries that do not balance to zero.

Voucher Entries Without Costing Entries

Use the Vouchertab on this page to view and mark as reconciled the voucher entries that do not have corresponding costing accounting entries or do not have a receipt that is associated to the voucher. Select Error OK if the discrepancy is acceptable and you do not want the voucher entry to appear in future runs. The Voucher line is then considered reconciled.

Use the second Account tab to view account information for voucher entries that do not have corresponding costing entries.

Using the CM/AP Reconciliation Detail

Access the CM/AP Reconciliation Detail page.

After you run the CM/AP Reconcile process, use this page to view all detail information about Payables transactions and PeopleSoft Cost Management transactions from the request process. You can also mark any discrepancies as reconciled.

The Reconciled check box is selected if the receipt and voucher are balanced; it is clear if the receipt and voucher do not balance. Select Reconciled if the discrepancy for this transaction is acceptable.

Inventory Accrued Liability

Use the Transaction tab on this page to view and reconcile accrued liability transactions that have corresponding voucher entries that do not balance to zero. Click the Accounting Line link to drill to transaction details on the Inventory Transaction Entries page.

Use the first Accounttab on this page to view account information for accrued liability transactions having corresponding voucher entries that do not balance to zero.

Vouchers

Use the Distribution tab to view and reconcile voucher distribution lines having accrued liability transactions that do not balance to zero. Click the Voucher link to see details on the Voucher Inquiry page.

Use the second Account tab to view account information for voucher entries that do not have corresponding costing entries.