Accounting Fundamentals

By Shailendra Garg

What is Accounts ?

Accounting is the art of recording,

summarizing, reporting, and
analyzing financial transactions.

By Shailendra Garg

Double Entry Accounting System

Each transaction that is entered

consists of debits and credits.

And the total debits must equal the

total credits

By Shailendra Garg

Types of Accounts
Accounts

Real Accounts

Personal Accounts
By Shailendra Garg

Nominal Accounts

REAL ACCOUNTS

Accounts for the things

which are physically
visible but are not human
being.

Example : Flat (Tangible)

Pen a/c debited
Cash a/c credited

By Shailendra Garg

RULE NO:- 1
REAL ACCOUNTS

DEBIT WHAT COMES IN

CREDIT WHAT GOES OUT

By Shailendra Garg

PERSONAL ACCOUNTS

Related to any
person or Legal
Entity.
Example : Service
Shails A/c debited
Company a/c
credited

By Shailendra Garg

RULE NO:- 2
PERSONAL ACCOUNTS

DEBIT THE RECEIVER

CREDIT THE GIVER

By Shailendra Garg

NOMINAL ACCOUNTS

Accounts which
are neither Real
nor Personal.
Generally its a
result of activity
between the
Personal & Real
Accounts.
Example :

COMPANY

By Shailendra Garg

CUSTOME

rSUPPLIER

RULE NO:- 3
NOMINAL ACCOUNTS

DEBIT ALL EXPENSES

CREDIT ALL INCOMES

By Shailendra Garg

Scenarios:
Books of Account : HCL
A) HCL bought Laptop worth $ 1000
from Toshiba.
B) HCL paid the amount due to
Toshiba by cheque.
By Shailendra Garg

Books of Account : HCL

A) HCL has to pay a salary of $ 1000 to David.
B) HCL paid the Salary by Cash.

By Shailendra Garg

What are the Ledgers ?

Ledgers store posted general ledger journals for a
set of chartfield values by accounting period and
fiscal year.

By Shailendra Garg

ChartFields

The backbone of your general ledger is the chart of accounts,

the fields and values that provide a common language for
identifying your company's business transactions.
A chart of accounts represents how a business gathers, stores,
combines, and uses financial information in the course of its
operations
A well-designed chart of accounts:

Supports audit and control of financial transactions.

Provides flexibility for management reporting and analysis.
Anticipates growth and maintenance needs.
Facilitates an efficient data processing flow

In PeopleSoft General Ledger, the components (fields) that

make up your chart of accounts and provide it with an
overall structure are called ChartFields.

By Shailendra Garg

Name

Field

Definition

Account

ACCOUNT

Classifies the nature of a

transaction. This field is required.
Use it for corporate accounts.

Alternate Account

ALTACCT

Classifies the nature of a

transaction for regulatory
authorities. Use it for statutory
accounts.

Operating Unit

OPERATING_UNIT

Can be used to indicate a

location, such as a distribution
warehouse or a sales center.

Department

DEPTID

Can be used to indicate who is

responsible for or affected by the
transaction.

Product

PRODUCT

Captures additional information

useful for profitability and cash
flow analysis, for example.

By Shailendra Garg

Name

Field

Definition

Project ID

PROJECT_ID

Captures additional information

useful for project accounting.

Statistics Code

STATISTICS_COD
E

Identifies non-monetary amounts.

Statistic codes are associated
with a specific unit of measure.

Scenario

SCENARIO

Identifies different budget

iterations that use different
assumptions.

Currency Code

CURRENCY_CD

Identifies currencies.

Affiliate

AFFILIATE

Used as one approach for

InterUnit journal processing and
consolidated reporting. Provides a
way to map transactions between
business units while using a
single intercompany account.

By Shailendra Garg

Account Types

By Shailendra Garg

Speed Types
Often you'll have common transactions in which you enter the same combination of ChartField values
repeatedly. By creating shortcut keys called Speed Types for these frequently used ChartField
combinations, you can greatly increase journal entry efficiency and reduce errors
For Example

By Shailendra Garg

ChartField Combination
Editing
ChartField Combination Editing defines the following:1. Combination Definitions of two or more ChartFields for a Business Unit and
Ledger Group
2. Combination Editing Rules to determine the combinations of values that are
valid for these ChartFields.

With Combination Editing you create definitions and rules that govern which
ChartFields and ChartField value combinations are valid or invalid

By Shailendra Garg

Combo Definition
Use the Combo Definition (combination definition) page to define the combination of
ChartFields to edit.

By Shailendra Garg

Combo Rule
Use the Combo Definition (combination definition) page to define the combination of ChartFields to
edit.

Use the ChartField Combination Rule 1 page to specify the SetID and name for the Combination Rule as well as to specify
the combination definition and effective dates for the rule
Selecting the Open Effective Date To check box enables you to define the rule as having what amounts to an open-ended
datethat is, the field becomes unavailable and the rule will display the date 01/01/2099. If you want to specify an end
date, you can clear this check box and enter a valid date in the Effective Date To field.
The Effective Date for Prompting defaults to the current date; however, you can use this field to enter an effective date
for prompting detail ChartField values and PeopleSoft Trees dated on or prior to this date. Since there is a range of dates
rather than an effective date on the page, you may want to enter ChartFields from any time period within the range. Here
you can specify the date from which to prompt for these ChartFields.

By Shailendra Garg

Accounting calendar
Accounting calendar defines the time
periods to which you post your
transactions for different ledger group
and business unit combinations..

By Shailendra Garg

Different Types of Calendar

Detail Calendar: Controls the number and duration of accounting
periods in a fiscal year.It also identifies the adjustment periods for
the calendar.Transactions are posted to the open period that
corresponds to the journal date.
Summary Calendar: Groups or combines periods from a detail calendar
for reporting purposes.
Business Calendar: Identifies holidays and non working days.

By Shailendra Garg

How to connect Business

Calendar with a BU?
Business Calendar is specified in the Holiday List field on General
Ledger Definition page.

By Shailendra Garg

Associating Detail Calendar with

a Business Unit
On Ledgers For A Unit page, specify the Calendar ID with each Ledger group
associated with a business unit.

By Shailendra Garg

Updating Open Periods

On Open period update page, the open periods for a business
unit and ledger group can be updated.

If Adjustment Year is not entered here, you will not be able to enter any adjustment
journals for these open periods.

By Shailendra Garg

Detail calendar

By Shailendra Garg

Business Calendar

Specify the
working days.

List of Holidays

By Shailendra Garg

What is Journal Generator?

PeopleSoft General Ledger can receive and process
journals from other systemsboth non-PeopleSoft systems
and PeopleSoft applications such as Financials, HRMS,
Distribution, and Manufacturing. Through the Journal
Generator (FSPGJGEN), each of these systems can create
journal entries for posting to your general ledger

By Shailendra Garg

General
Ledger

Converting Accounting Entries In To People Soft

Journals

Journal

A
En cco
tr unt
ie in
s
g

g
tin
un
co es
Ac ntri
E

Generator

Accounting

AP

Accounting

Entry table

AR

Entry table

Treasury
Non

AM

People SoftPurchase

Billing

By Shailendra Garg

PeopleSoft

What is Accounting Entry Table?

Accounting Entry table holds accounting entries

which are picked up by Journal Generator for
creating the journals.

By Shailendra Garg

What is the Structure of

Accounting Entry Table?
For the Journal Generator to extract data correctly from the Accounting Entry
Table for journal generation, the following fields are required on that table

By Shailendra Garg

Sum Up
Accounting Entries

Source System

Journals

Journal
General Ledger

Generator

Accounting

Template

Entry table

(Default values)

Accounting Entry Table

Commitment Control amount Type

Journal Header defaults

Journal Line defaults

System Source
Summarization options
Chart Field Mapping

1. How to summarize
2. What to summarize

Multi Book Order

3. Alternate Summarization

By Shailendra Garg

Thank You

By Shailendra Garg