PeopleSoft Chartfield Fund and Department will be unique strings by department

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1 PDA/MPDA Identifiers in PeopleSoft related to PDAs include: PeopleSoft Account for all PDA expenditure PeopleSoft Account for all MPDA expenditure PeopleSoft Account used as a contra account to the PDA/MPDA entitlement PeopleSoft Chartfield Fund and Department will be unique strings by department PeopleSoft Chartfield Open Item Key is another field that will hold the unique employee number and be used to tie the PDA/MPDA to the individual. Conversion Process 1) The total of each Department s individual 5xxx PDA/MPDA YTD balance spent will be imported (debit) in to PeopleSoft Account / as a Lump Sum for each Department and Program. 2) The lump sum in account / will be cleared by Journal entry and debited to the same account using the Open Item Keys for each individual to record the current year s spending. 3) The revised budget with the current year s entitlement and balance carried forward will be credited to account / using the Open Item Keys for each individual, with the offsetting debit to the contra account. The result in the Open Item Keys will be a credit with the balance remaining to spend. After HR Go-Live After HR Go-live, PDA and MPDA tracking will be integrated with the HR Time and Labour module of PeopleSoft. Details on the conversion process will be provided before HR go-live. 1

2 PDA/MPDA Interim Process until HR Go-Live Interim Process to Create a new PDA/MPDA, Similar to the conversion process, to create a new PDA/MPDA, the department administrator will create a Journal entry crediting the MPDA Account (590000/590010) and unique open key identifier, and debiting the contra account. No budget entries are required. Interim Process Approval of Expenditure Expenditure from PDA/MPDA must be approved by Employee s Manager through the standard workflow process in PeopleSoft. Payment is processed/approved by the Department Manager, using Travel & Expense, Journal Entry or Cheque voucher. In the interim period, as in the current period, if the PDA/MPDA is overdrawn, the Open Item Key will have a debit balance. The PeopleSoft will not be set up to check if the transaction is good/bad based on available balance rules. The Department Administrator will be able to see the budget entitlement and current year expenditures in the account by open item key identifier and will use their judgment and knowledge of future year allocation borrowing. Interim Process to Track Entitlement Similar to current state, the department administrator will be able to look at a report which will show Budget (entitlement), Actual (spend only) by each employee s open item key. PeopleSoft navigation: Main menu > Finance > General Ledger > Open Items > Open Item Listing Report Interim Process At Year-End 1) Balance forward will be retained in the Open Item Keys. 2) Department administrators should credit each employee s Open Item Key with the current year s entitlement at the beginning of the year, with the debit to the contra account

3 McMaster University Mosaic Project Interim PDA Tracking

4 Year 1 Year 2 Account 2xxxxx Budget Actual Budget Adjusted Budget Actual Current State Allocation 100, , , , ,000 Carry forward PDA ,700 1,700 Other - - 6,000 6,000 6,000 Available to spend 100, , , , ,700 Expenses PDA One subcode for each employee Carry forward ,000 1, ,000 2,100 1, , ,600 2,000 3, ,100 Total PDA expense 4,000 2,300 1,700 4,000 5,700 2,000 3,700 Other expense 90,000 90,000 90,000 90,000 90,000 Total expense 94,000 92,300 94,000 95,700 92,000 Account balance 6,000 7,700 12,000 12,000 15,700 Annual entitlement entered in budget Budget less actual spending in each subcode determines each employee s available balance to carry forward Carry forward amount for each employee is added to adjusted budget when known PDA may be a dedicated account or part of a larger budget Carry forw ard

5 Desired State PDA/MPDA tracked by person in PeopleSoft Human Resources Module Not available until HR Go-live summer 2014

6 New Interim Process until HR Go-Live Expense for all employees recorded in one account per PDA type Faculty PDA MPDA LPDA Clinical PDA Individual PDA tracked through OPEN ITEMS All PDA transactions posted to GL will include employee number Budget and Actual to date will be transferred from current PDA/MPDA on conversion

7 Track PDA/MPDA in Open Items Year 1 Year 2 Open Items in PeopleSoft Adjusted Program Budget Actual Budget Budget Actual PDA 1 PDA 2 Total Allocation 4,000 4,000 4,000 4,000 4,000 Year 1 Carry forward Entitlement (2,000) (2,000) (4,000) PDA ,700 1,700 Spending 1, ,300 Available to spend 4,000 4,000 4,000 5,700 5,700 Balance (100) (1,600) (1,700) Year 2 Expenses Entitlement (2,000) (2,000) (4,000) PDA ,000 (1,700) 4,000 5,700 (2,000) Spending 1, ,000 PDA contra 4,000 4,000 Balance (600) (3,100) (3,700) Total expense 4,000 2,300 4,000 5,700 2,000 Program balance - 1, ,700 Debit (Credit) Annual entitlement in PDA account by employee number Balance in account and program reflects total unspent balance Open items reflect unspent balance by employee Only required until HR goes live

8 Conversion Process On Go-Live Mosaic Team will upload budget and actual to date for each PDA/MPDA Nets individual entitlement against spending Contra account used to offset entitlement (similar to 0991) Difference will appear in Open Items by employee number At Year-end Spring of 2014 Close PDA/MDA Account to to Contra. Reverse PDA Closing to re-populate Open Items. More detail in Year-end memo.

9 Conversion Process In order to set up balances by employee, employee numbers are matched to active FAS subcodes FAS balances as of November 30 will be converted to each employee s ID in open items Current year entitlement and balance carried forward will be credited based on the budget in their FAS subcode, less Current year actual spending

10 FAS Current entitlement & balance forward set up in budget Balance forward = Budget Actual spending Expense to department = Actual spending M/PDA Process Accounting Change Budget Actual Balance Subcode 5500 Year 1 2,000 1, Year 2 Carry forward 500 Current year 2,000 Total 2,500 1,500 1,000 PeopleSoft Current entitlement & balance forward actually credited to open item Contra account offsets entitlement Balance forward = Amount remaining in open item Expense to department = Actual spending Actual Open Item Actual Open Item Year 1 Year 2 Account Carry forward (credit) (500) Entitlement (credit) (2,000) (2,000) (2,000) (2,000) Spending 1,500 1,500 1,500 1,500 Employee balance (500) (500) (500) (1,000) Contra account 2,000 2,000 Department expense 1,500 1,500

11 Tracking Entitlement in Open Items Benefits Individual balances automatically tracked Employees can view their balances online Easier to determine funding required for PDA program Simplifies conversion to HR module Easy to reconcile individual balances to program total Challenges All PDA/MPDA journal entries must include employee number Accounting for contra account at year-end

12 Open item report in PeopleSoft shows transactions and balance by employee ID M/PDA Process Reports Main menu > Finance > General Ledger > Open Items > Open Item Listing Report

13 M/PDA Process What s my new M/PDA number? All current subcodes will be converted to: Account for PDA (subcodes ) Account for MPDA (subcodes ) Table with PS chartfield equivalent for FAS 6 digit accounts will be posted Sample chartfield string FAS PeopleSoft Account Subcode BU Fund Account Dept Program Open Item MAC Department/program identifier - will change depending on legacy account PDA expense identifier - use for PDA and for MPDA Employee identifier employee number

14 Questions?