Sonoma State University - CMS Finance
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Month End Closing
PeopleSoft Functionality
PeopleSoft General Ledger delivers significant flexibility for the period end closing
processes. This document covers month-end closing procedures and concepts.
Business Process Overview
The PeopleSoft closing process is basically a calendar technique providing enhanced
month end close flexibility not available in CSU legacy systems. PeopleSoft allows
many accounting periods to be open simultaneously. This flexibility enables us to
process transactions for the current period while we close a prior period. At Sonoma,
the Associate Vice President determines monthly closing policy. Closing operations for
the five Business Units is the responsibility of the University Controller.
Open Period Function
PeopleSoft General Ledger enables us to keep any number of accounting periods (and
fiscal years) open at one time allowing for data input to any open period. This same
flexibility makes it reasonably simple to close accounting periods, thus maintaining
control over journal posting.
Fiscal periods are numbered within PeopleSoft General Ledger as follows:
 Period 0
Contains the beginning balances of each year. (System use only.)
 Periods 901-912 Contain adjusting entries. Primarily used for GAAP.
 Period 998
Contains adjusting entries. They can be excluded or included in
reports and inquiries.
 Period 999
Contains the results of year end closing, i.e. transferring revenues
and expenditures into Fund Equity. (System use only.)
 Periods 1-12
These periods correspond to each month in the Fiscal Year. For
the CSU, Period 1 is July and Period 12 is the following June.
At Sonoma, the University Controller is responsible for maintaining open periods for all
Business Units. (SOCMP, SOASI, SOFDN, SOSSE, SOSUI) Typically, we use Open
Periods Mass Update functionality to manage open periods. Here are the steps
involved in that process:
Last Update 09/27/2011
Sonoma State University - CMS Finance
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Navigation: Set Up Financials/Supply Chain>Business Unit Related>General
Ledger>Open Periods>Open Periods Mass Update
Select Business Unit, Indicate GL for the PS Product, Put a % (the Percent sign) in
Ledger Group, Click Search, Click Select All, Indicate Open From Year/Period and
Through Year/Period, Click Apply. This choice can be migrated to Selected
Subsystems (AP, BI and AR at SSU). Note: Individual subsystems can be closed
before the GL closes as subsystem processing is completed.
Finally, check to ensure that the requested changes have been applied accurately to a
Business Unit and its “products”.
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Sonoma State University - CMS Finance
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Navigation: Set Up Financials/Supply Chain>Business Unit Related>General
Ledger>Open Periods>Open Periods Display
ChartField Maintenance
Consideration should be given to ensure that Chartfield Maintenance is occurring prior
to month end close and that effective dates are used appropriately. When Chartfield
changes occur during the current period, reports can be impacted adversely if
ChartFields are not managed properly. (i.e., balances excluded because they were
outside the range of current queries and/or Tree definitions based on effective dates).
At Sonoma, the Financial Information System Manager is responsible for maintaining
the integrity of ChartFields. That position works with the University Controller to
oversee Design ChartFields page entries, initiate Tree modifications, manage campus
ChartField Request records and maintain the integrity of ChartField mapping. The
Financial Information System Manager is responsible for Attribute Build and Combo
Build processes and ensures that they are functioning properly and included in our
nightly processes.
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SSU Month End Closing Process
Achieving efficiency, maximizing consistent rules among all five Sonoma State
University Business Units, complying with State and CSU guidelines, maintaining the
quality and integrity of campus financial records and ensuring the accuracy and
timeliness of all reconciliations are the primary objectives that guide our business
practices.
Each month the University Controller sends an email to Financial Services staff to
inform them of the closing date. Typically, the closing time is noon on the sixth
business day of the month following the period that is being closed. We refer to this as
the Soft Close. At that time, no additional transactions should be given an accounting
date within the period being closed.
Special Considerations
The Accounts Payable Manger directs the AP staff to stop entering prior month
vouchers into the AP system on the fourth business day after month end. During the
next two business days, the AP Manager budget checks and posts the remaining prior
month’s vouchers. During the evening of the sixth business day, the final AP
transactions for the prior month are Journal Generated and posted to the General
Ledger.
During the morning of the seventh business day, the Sponsored Programs
Administration Manager runs the Indirect Cost process and posts associated Journal
Entries. IDC is always the final transaction posted to the SOCMP General Ledger for
the period being closed. When that is completed, the University Controller closes the
period in SOCMP and advises Financial Services staff that SOCMP is closed for the
previous month. This is the Hard Close. At this point, no other prior period
transactions can post to SOCMP’s General Ledger. At that time, we are ready to derive
SOCMP to SOCSU.
As final transactions are posted in the Auxiliary Business Units, Auxiliary Accountants
advise the Deputy Controller - Auxiliaries that each Business Unit’s work is complete for
the prior month. The University Controller closes the period for each Business Unit and
confirms that the close is final.
The day after completion of each Business Unit’s monthly close, Financial Services staff
advise end users that their monthly reports are available for review in the Data
Warehouse.
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Campus Checklist of Monthly Closing Activities
Subject to Review, Update and Continuous Improvement
To ensure quality, these activities must occur on a regular basis during the course of
each month
Cash Receipts and Accounts Receivable
Enter Cash Receipts and prepare deposits daily
Book Accounts Receivable, analyze and adjust as needed
List, balance and reconcile dishonored checks
Reconcile Financial Aid programs
Balance and Adjust Uncleared Accounts
Reconcile Student Fees to the GL
Purchasing and Accounts Payable
Verify all Req’s/PO’s/Vouchers have been processed/posted
Run encumbrance and PO system reports and reconcile to the GL
Review and expedite open orders
Run and submit claims for reimbursement by the SCO
Input CD 102’s - Reconcile Claims
Prepare Open Item Reconciliation
Review Backup Withholding
Sponsored Programs
Run IDC and post Journal Entries at month end after all processing completes
Budget
Prepare Analysis of Allocation orders
Ensure that all department budget transfer requests are posted
Ensure that the month’s Allocations and Cross Postings are recorded on campus
books
Validate LCD transactions and post HRS JE to the GL
General Accounting
Retrieve and Load the SAM 99 Files - mid month and month end
Once loaded, check balances randomly against the Tab Run to ensure file
integrity
Process SCO JE's for the month being closed as they are issued
Use CIRS/ACL on line, View Direct, SAM99 files loaded into PS
Query the SAM99 Tape Table in PS to verify that SSU has processed all SCO
JE's
Query campus Fund Balance Clearing transactions and Interagency transactions
to ensure they are posted correctly
Process Campus JE's/Reclass Requests as they are submitted to Financial
Services
Prepare Pre Close SAM 99 reconciliation by SCO Fund
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Process correcting entries identified during the prior month's reconciliations
Process Chargebacks - Postage, Facilities, Public Safety, IT, Phone
Process all pending PFA's
Retrieve the Pay file from the SCO and submit for LCD processing
Review LCD Payroll Clearance report Reconcile LCD Clearance amounts to Tab
Run
Review Wells Fargo CEO to reconcile receipts daily
Retrieve and Load Paid Checks Files
Record CO/CMO CPO’s in CSU Fund 541 and detail PS funds
Prepare Pre Close Bank Reconciliation
Prepare Pre Close reconciliations for Due To/Due From’s and Transfers In/Out
Use the Data Warehouse and queries to review Trust Cash and Fund Balances
Resolve deficits before close
Review Journal status daily to confirm that all Journals have been posted and
that no Journals are in Error or Incomplete status. Resolve errors as they occur
Verify Journal Generator has fed all subsystem current month Journal Entries
Verify accuracy of Subsystem feeds – Recon to GL
Cash Receipts and Accounts Receivable
Purchasing and Accounts Payable
Verify fixed asset entries
Items occurring after month end close:
Finalize SAM 99 Reconciliation
Finalize Fund Balance Clearing and Interagency Transactions Reconciliations
Finalize Bank and Investment Reconciliations
Finalize Due To/Due From’s and Transfers In/Out Reconciliations
Reconcile Revolving Fund
Derive SOCSU monthly Ensure that BU’s are in Sync
Prepare entries to clear any SOCSU issues
Submit FIRMS quarterly
Prepare Correcting Entries and PFA’s as needed
Submit PFA’s needed to clear DT/DF’s expeditiously
Validate SCO cash sufficiency
Re review Trust Cash and Fund Balances
Advise end users to run month end reports in the Data Warehouse
Last Update 09/27/2011