Statistical Accounts in PeopleSoft

There are numerous ways in PeopleSoft to allocate indirect costs to different departments, or operating units or any other Chartfields. Today we will discuss using Statistical Accounts to do this.

Suppose, if the Staff Welfare Expenses is Rs.12000/- per month and you need to allocate this amount proportionately based on the number of head counts for each department – say 4 departments 14000, 13000, 12000, 10000 having 40, 30, 20 and 10 head counts respectively for that month. In this scenario, you can perform following steps to achieve this:

Step 1 : Create the Statistical Account

Navigation: Set Up Financials/Supply Chain>Common Definitions>Design ChartFields>Define Values>ChartField Values- Accounts Page
Create the statistical account chartfield value by selecting statistical account checkbox and also provide the Unit of Measurement value.

Step 2 : Create Journal Entries by using Statistical Account

Navigation: General Ledger>Journals>Journal Entry>Create/Update Journal Entries-Lines Page
Next step is to create, edit and post the journal lines by selecting statistical account, UOM and statistical amount.

Step 3: Create Allocation Step

Navigation: Allocations>Define and Perform Allocations>Define Allocation Step
Choose the allocation type as “Prorata with Record Basis” and also provide appropriate values in allocation POOL, TARGET, OFFSET, OUTPUT OPTION page. In Basis page, provide these 4 departments.

Step 4: Create Allocation Group

Navigation: General Ledger>Journals>Journal Entry>Create/Update Journal Entries-Lines Page
Create the Allocation Group and add the allocation step created in step 3

Step 5: Run the allocation request process

Navigation: Allocations>Define and Perform Allocations>Request Allocation>Allocation Request
One Allocation Journal Entry will be created after successfully running the allocation request process.

Before running allocation process, Staff Welfare Expenses is Rs.12,000/- is accounted without having any department.

After running allocation process, journal entry nullify the previous staff welfare expenses of Rs.12000 of having NULL department value and distribute this amount based on the head counts of each department.