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Optimizing Your PeopleSoft Investment

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Optimizing your PeopleSoft investment just as you do with your car’s maintenance schedule will reap the most rewards. When you buy a new car, you get in, drive, and fill up when needed. You fix things when they go wrong. If you follow that routine, your car will serve its purpose. You’ll have met your transportation needs. However, if you do a little extra (change your oil, follow a preventative maintenance routine, and learn about all the features of your car), you’ll get more enjoyment and a longer life out of your investment.

Oracle has committed to enhancing and supporting PeopleSoft through at least the year 2030, which means there are and will be many new features to help support your business.

Once you’ve successfully implemented PeopleSoft, you can do your general maintenance. You can upgrade when needed, and PeopleSoft will serve your needs. However, Oracle is making significant investments into enhancing and expanding the capability of PeopleSoft on a regular basis by way of PUM updates. Knowing what is included in the PUM’s and understanding how they can benefit your organization can add value to your PeopleSoft software. PUM’s will extend the life by staying current with capabilities and technology.

This sounds like a great idea, but we all know in real life, it’s not always that simple. Everyone is busy, and it’s not always easy to step back and really analyze how you’re using PeopleSoft. Is its current use still aligned to the overall goals of the business? Business needs change over time. Periodically making the time to take a top to bottom view of your PeopleSoft environment can bring significant value to your organization.

When most organizations implement a system as significant as PeopleSoft, they do a thorough self-evaluation to document their business needs or bring in an outside firm to help with that process. They end up with a system that is closely aligned to the business. By optimizing your PeopleSoft investment now, you can reap the continuing value well into the future.

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My Favorite PeopleSoft Lease Administration Transactions, Part III

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Hello again everyone! Welcome to Part III in the blog series, “My Favorite PeopleSoft Lease Administration Transactions.” In my previous blog, we took an in-depth look at the straight-line accounting entries on a lease with quarterly payments. In Part III, we will examine straight-line accounting entries with a much less conventional payment stream.

Here are the specifics:

Before entering this lease into PeopleSoft, I thought the biggest challenge would be to have PeopleSoft calculate the straight-line entries. However, that worked out very well. The system calculated the correct amounts (down to the penny) despite the unusual payment stream. That is what makes this lease one of my favorite lease transactions in PeopleSoft Lease Administration so far.

Lease Explanation:

The property lease has been structured with the large deferred payments towards the end of the lease and the smaller payments up front. This lease was not structured with the usual, smooth payment stream over the life of the lease that we normally see. Instead, the payment stream strictly reflects a finance decision to defer the payments toward the end of the lease.

Next, for the purposes of this blog, I will only be discussing the straight-line entries. I will not be discussing other lease calculations such as PVLP or ROU balances.

Moving on let’s look at the average monthly lease amount. This came to $537,202.49 which will be the monthly lease expense over the life of the lease. Remember the lease is 168 months long. We are only making payments during 5 of those months. This leaves us with 163 months that do not have a payment. In those months, the lease expense amount will be completely provided by the straight-line accounting entries as shown below.

I have filtered the results from the PeopleSoft straight-line table to display only the 5 months with payments. The straight-line adjustment in column 3 is the difference between column 1 (the payment amount) and column 2 (the straight-line amount).

From the table above and per the process with PeopleSoft, each of these payments will be expensed in the month of payment. Then in order to hit the monthly straight-line amount, PeopleSoft will create an adjusting journal entry as well. For example, here are the journal entries for January 2019. Take special note that the two entries to Lease Expense net to the straight-line amount from the above table: $537,202.49.

Likewise, these would be the journal entries for the first balloon payment in May 2021. The same rule applies here as well. The net amount booked to the Lease Expense account will also be the same straight-line amount: $537,202.49.

Lastly, the table below is a larger extract from the PeopleSoft straight-line table for the first 18 months of the lease. This should provide a better picture of the straight-line journal entries that will be created each month and provide the required data for expense forecasting as well.

In closing, almost every lease that I have encountered so far has a relatively smooth recurring payment schedule.  Although this lease was different, it was very good to see PeopleSoft sort out the straight-line entries correctly. If you have any questions at all or would like to have more information on the straight-line process, please let me know.

This now concludes part III of the blog series, “My Favorite PeopleSoft Lease Administration Transactions.” As always, thank you for reading and be sure to read my final installment in this series & our other Lease Administration Blogs.

Steven Brenner, CPA
Senior Principal Consultant
MIPRO Consulting

The PeopleSoft Partner Summit at COLLABORATE 19

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New this year, Oracle held their annual PeopleSoft Partner Summit at the end of COLLABORATE 19. The PeopleSoft Partner Summit is an opportunity for Oracle and the PeopleSoft Partner community to exchange ideas and information. Both at COLLABORATE 19 and at the Partner Summit, configuration and de-customization were large elements of the messaging. Although a […]

My Favorite PeopleSoft Lease Administration Transactions, Part II

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Hello again everyone! Welcome to Part II in the blog series, “My Favorite PeopleSoft Lease Administration Transactions.” In Part I, we looked at amending a multi-asset lease to remove an asset. In this installment, we will look at a lease with quarterly payments. We will also review how Lease Administration creates straight-line accounting entries. Additionally, […]

Ideas for MOSC – My Oracle Support Community

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I have an idea! But what should I do with it? Ideas. We all have them. Some of them end up as customizations to our software. Others end up as simply dreams. But some lucky thoughts may end up on the MOSC – My Oracle Support Community. Ultimately, they may even end up as part […]

Customizations May Not Be Taboo Anymore

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Recently, I met with a customer who was considering implementing a new PeopleSoft module. The attendees included a functional executive, several of her managers, and two IT managers. At the beginning of the meeting, the executive announced that no matter what was decided, she did not want any customizations to the software. Generally, history and […]

My Favorite PeopleSoft Lease Administration Transactions, Part I

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Welcome! I would like to introduce my next blog series, “My Favorite PeopleSoft Lease Administration Transactions.” With the new accounting rules taking effect this year, I’ve had plenty of opportunity to work with PeopleSoft Lease Administration using PUM 27 to 30 (especially PUM’s 28 to 30 over the past six months). As a consultant and […]

Supplier Scorecard

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The enhanced Supplier Scorecard feature was delivered in FSCM PUM Image 29. It is now possible to define and incorporate Key Performance Indicator (KPI) questions and Weighted Scores into templates and evaluations for a supplier. This enhancement allows you to view and analyze objective and subjective questions with a completed Supplier Evaluation Scorecard. You can […]

2019 Sources of PeopleSoft Info and Networking

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It might surprise you that organizations are still selecting PeopleSoft as a brand-new solution for their financials, supply chain, and human resources system. These “net new customers” choose PeopleSoft over other options to replace their current ERP systems. Personally, I am aware of two in the last thirty days. The PeopleSoft community continues to be […]

Simple Journal

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A new Journal Entry feature in Fluid was delivered in FSCM PUM Image 29 called Simple Journal. Through configuration, this feature allows customers to restrict and control the fields displayed on the Fluid Journal page. These setting are based on the need or function of the user. It simplifies the data entry from an end-user […]

Planning to implement your ASC842/IFRS 16 lease accounting solution in 2019? PeopleSoft can help!

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Since 2019 is now upon us, some organizations have already implemented PeopleSoft Lease Administration. Some are in the final stages for go-live preparation. Some organizations have not yet started to implement a solution and are targeting 2019 to do so. The good news is that PeopleSoft has you covered regardless of your project go-live target […]