5/12/2015 © SpearMC Consulting 1 © 2014 SpearMC Consulting
Reconciling Project Costing to the General Ledger
& Functional Reconciliation/Analysis Tips & Tricks
PS NW RUG – May 12, 2015
Agenda
About SpearMC
PC to GL Reconciliation Introduction
Reconciliation Steps
Other Reconciliation/Analysis Tips & Tricks
© 2014 SpearMC Consulting
2
About SpearMC
© 2014 SpearMC Consulting 3
© 2014 SpearMC Consulting
4
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
About SpearMC
© 2014 SpearMC Consulting
5
We focus on local market delivery and capability
development in line with industry focus areas unique to the regions we serve.
Regional offices in Chicago, Oklahoma City, Seattle and San Francisco
About SpearMC
Our local and well-connected network of top-tier
business analysts, technical leads, developers and project managers keep travel cost to a minimum.
© 2014 SpearMC Consulting
6
Oracle Gold Partner since 2008:
Gold Level Partner
PeopleSoft Specialization
Applications Reseller
Hardware Reseller
About SpearMC
Services and Competencies
© 2014 SpearMC Consulting 7
© 2014 SpearMC Consulting
8
Technology and Business Consulting
Full-service ERP and BI Selection, Implementation and Integration
o PeopleSoft
o JD Edwards
o Oracle EBS
o Hyperion
o Dynamics AX
ERP Training
IT Transformation and Strategy
Infrastructure and Architecture
ERP Application Development
Capability Assessment
Services and Competencies
© 2014 SpearMC Consulting
9
Program and Project Management
Business Transformation
Project Management Office
Project Portfolio Management
Change Management
Operations Improvement (Six Sigma, Lean)
CIO and CTO Advisory Services
Strategy for Pricing and Revenue Enhancement
Services and Competencies
Methods and Tools
© 2014 SpearMC Consulting 10
© 2014 SpearMC Consulting
11
Needs Analysis Assess Staffing Requirements
IT Strategy and Transformation
ERP Selection and Integration
Business Transformation
Project Management
Complement Existing Expertise
Capability Assessment
Methods and Tools
© 2014 SpearMC Consulting
12
Continuous Improvement
Six Sigma and Lean
Agile Project Management Techniques
Change Management
Tools, best practices and proven management techniques include:
Methods and Tools
13
Marcus Bode, CPA Managing Director [email protected] 866-SPEARMC x801 www.SpearMC.com
Your Presenter
Co-founded SpearMC Consulting in 2002 PeopleSoft Financials, Cash Management and Procure-to-Pay Expert Certified PeopleSoft v9.1 Financials 20+ Years Experience…majority PeopleSoft
© 2015 SpearMC Consulting
14
Jessica Mann Practice Director – Grants Management [email protected] 866-SPEARMC x815 www.SpearMC.com
Your Presenter
15 Years – PeopleSoft Consulting Experience 12 Years – Specialty in PeopleSoft Grants
Management
Grants Project Costing Contracts
© 2015 SpearMC Consulting
Billing Accounts Receivable Commitment Control
PC to GL Reconciliation Introduction
© 2014 SpearMC Consulting 15
© 2014 SpearMC Consulting
16
Project Costing Integration
Reconciliation Steps
© 2014 SpearMC Consulting 17
© 2014 SpearMC Consulting
18
• Determine Scope
• Identify Variances at Summary Level
• Identify Cause of Variances
• Determine How to Correct Existing Errors
• Determine How to Prevent Future Errors
Reconciliation Steps
Determine Scope
© 2014 SpearMC Consulting 19
© 2014 SpearMC Consulting
20
• Identify the type of transactions that will be reconciled
• Expenses, Revenue, Transfers
• Identify the ChartFields that will be reconciled
• Identify Analysis Types for each type of transaction
• Consider creating a new Analysis Group (s) for reconciliation/reporting
Determine Scope
© 2014 SpearMC Consulting
21
Determine Scope
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
© 2014 SpearMC Consulting
22
• Identify Project Costing field/fields to be used for determining Accounting Period
• E.g. Accounting Dt
• Note: must easier to reconcile as of a point in time (closed period if possible)
Determine Scope
© 2014 SpearMC Consulting
Determine Scope
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
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)
© 2014 SpearMC Consulting
Determine Scope
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
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:
© 2014 SpearMC Consulting
25
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.
Determine Scope
Identify Variances at Summary Level
© 2014 SpearMC Consulting 26
© 2014 SpearMC Consulting
27
• Build report/query to identify PC to GL variances at the ChartField string summary
• E.g. PCBU - Project – Activity – Fund – Account
• Options:
• Query with multiple unions that reports balances in the PC and GL. Utilize Pivot table to obtain variances
• Custom Report
• Custom View which allow you to build a query reporting variances only
• Composite Query (PeopleTools 8.54)
Identify Variances at Summary Level
© 2014 SpearMC Consulting
28
Identify Variances at Summary Level
© 2014 SpearMC Consulting
29
Identify Variances at Summary Level
• Keep in mind that the Analysis Group set up determines how the Amounts are brought into Proj Resource for GL
© 2014 SpearMC Consulting
30
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).
© 2014 SpearMC Consulting
31
Identify Variances at Summary Level
• 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) (Billing Plan no longer needs to be entered.)
© 2014 SpearMC Consulting
32
Identify Variances at Summary Level
Cause of Variances
© 2014 SpearMC Consulting 33
© 2014 SpearMC Consulting
34
• 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
Cause of Variance
© 2014 SpearMC Consulting
35
• Continue process until all variances are explained
Cause of Variance
© 2014 SpearMC Consulting
36
Cause of Variance
© 2014 SpearMC Consulting
37
Cause of Variance
© 2014 SpearMC Consulting
38
Cause of Variance
© 2014 SpearMC Consulting
39
Cause of Variance
© 2014 SpearMC Consulting
40
Cause of Variance
© 2014 SpearMC Consulting
41
• 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.)
Cause of Variance
© 2014 SpearMC Consulting
42
Cause of Variance
© 2014 SpearMC Consulting
43
Cause of Variance
Template Demo
Correct Existing Errors
© 2014 SpearMC Consulting 44
© 2014 SpearMC Consulting
45
• Easy/In progress errors: • Process accounting or journal generate • Post Journals • 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
• External journal updated to set PC Distrib Status to N
Correct Existing Errors
Prevent Future Errors
© 2014 SpearMC Consulting 46
© 2014 SpearMC Consulting
47
• Add additional checks/queries to Month End Close
• Create/update combo edits • Update customizations • Update batch • New customizations
Prevent Future Errors
Other Reconciliation/Analysis Tips & Tricks
© 2014 SpearMC Consulting 48
© 2014 SpearMC Consulting
49
• Pivot Table (Excel)
• Concatenate (Excel)
• VlookUp (Excel)
• WorkCenters (9.2)
• Reconciliation Workbench (9.1)
• Project Recon Workbench
• Contracts Reconciliation Summary
• Subsystem Reconciliation/Assignment
Other Reconciliation/Analysis Tips & Tricks
© 2014 SpearMC Consulting
50
Pivot table • Very quick way to summarize and analyze data in
Excel. • Drag and drop wizard allows you to easily move
between less to more detail. • Page fields allow you to filter summarized results
to a specific value. • Fast way to shift data presented in rows to
columns. • Fast way to shift between amounts versus count.
Other Reconciliation/Analysis Tips & Tricks
© 2014 SpearMC Consulting
51
Pivot table • Very quick way to summarize and analyze data in
Excel. • Drag and drop wizard allows you to easily move
between less to more detail. • Page fields allow you to filter summarized results
to a specific value. • Fast way to shift data presented in rows to
columns. • Fast way to shift between amounts versus count.
Other Reconciliation/Analysis Tips & Tricks
© 2014 SpearMC Consulting
52
Other Reconciliation/Analysis Tips & Tricks
© 2014 SpearMC Consulting
53
Other Reconciliation/Analysis Tips & Tricks
© 2014 SpearMC Consulting
54
Other Reconciliation/Analysis Tips & Tricks
© 2014 SpearMC Consulting
55
Other Reconciliation/Analysis Tips & Tricks
Concatenate • Allows you to merge one or more Excel cells or text
together as one value. • 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.
© 2014 SpearMC Consulting
56
Other Reconciliation/Analysis Tips & Tricks
Vlookup • 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.
• Used Vlookup to add or subtract each variance reason until all variances were fully explained.
• Tips List where you are looking for a value must be sorted. Sometimes adding a prefix to make all data consistent
can be helpful (see Concatenate). S60134606013460472106629 S29_ABC_FY20143161585527500265
© 2014 SpearMC Consulting
57
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.
© 2014 SpearMC Consulting
58
Other Reconciliation/Analysis Tips & Tricks
WorkCenters 9.2
• 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.
© 2014 SpearMC Consulting
59
Other Reconciliation/Analysis Tips & Tricks
WorkCenters 9.2 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
© 2014 SpearMC Consulting
60
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.
© 2014 SpearMC Consulting
61
Other Reconciliation/Analysis Tips & Tricks
Reconciliation
© 2014 SpearMC Consulting
62
Other Reconciliation/Analysis Tips & Tricks
Reconciliation
63
Get in touch.
Jessica Mann Practice Director – Grants Management
866-SPEARMC X815
www.SpearMC.com
© 2014 SpearMC Consulting
Thank You.