Use this subtask to change the owning organization or to view information about any changes to the owning organization. To change an owning organization, make the change in the Owning Org field and save the Basic Info tab. The Org History subtask will automatically display when you save the change to the owning organization. You must enter information in this subtask before you can proceed.
If you change the Owning Org field in the Basic Info tab, this subtask will be activated so that you can complete the change information. You will need to run the Process Organization Changes utility after you have changed the owning organization. Posting revenue after making a change to the original owning organization can cause the revenue in the General Ledger to be overstated. The utility will make the necessary changes to the Accounts Receivable and Project tables so that the revenue and receivables information is properly stated.
How do changes in the owning organization cause problems with the revenue in the General Ledger?
Changes to the owning organization cause problems in the General Ledger because the Post Revenue process (Projects\Process\Post) uses the project/account/organization combination to post revenue. The Post Revenue process summarizes the amount of year-to-date revenue in the PROJ_SUM table by the revenue level of the project, the project's owning organization, and the revenue account in the project's account group.
The system then locates the same project/account/organization combination in the General Ledger and compares the year-to-date amount with the year-to-date amount from the PROJ_SUM table. The system posts the difference between the two amounts. If the owning organization of the project is changed, the year-to-date amount in the General Ledger is zero and the system will post the entire year-to-date revenue from the PROJ_SUM table. Since the year-to-date revenue through the previous period has been posted to the General Ledger with the old owning organization, the revenue is doubled through the current period.
The Process Organization Changes utility will create a journal entry that will move the year-to-date revenue to the new owning organization.
You need to run the Process Organization Changes utility even if you are posting revenue by performing organization. The system posts revenue adjustments and over-ceiling amounts to the owning organization of the project. Therefore, revenue could be overstated by the amount of the revenue adjustments and over-ceiling amounts if the owning organization is changed in the middle of the fiscal year.
The Process Organization Changes utility will display a message stating that no journal entry was created if there were no revenue adjustments or over-ceiling amounts during the year.
What does the Process Organization Changes do?
The Process Organization Changes utility creates journal entries to reclassify the revenue in the General Ledger from the old owning organization to the new owning organization for revenue and accounts receivable.
The system will display an error message stating that no journal entry has been created if no changes to the General Ledger are needed.
Use the fields in this table window to enter information about changes in the owning organization. The previous owning organization will automatically display. You must enter the new owning organization, the effective fiscal year, period and subperiod, and the retroactive selection. The remaining fields will be populated by the Process Organization Changes utility.
This non-editable field displays the previous owning organization.
This non-editable field displays the new owning organization that you entered in the Owning Organization field in the Basic Info tab.
Enter, or use Lookup to select, the open fiscal year to be the first effective fiscal year of this owning organization change.
Enter, or use Lookup to select, the open fiscal period to be the first effective period of the owning organization change.
Enter, or use Lookup to select, the open subperiod to be the first effective subperiod of the owning organization change.
Select "Y" (Yes) if you want this organization change to include all posted items up to and including the selected fiscal year, period, and subperiod. Select "N" (No) if you want this organization change to include only those items posted after the selected fiscal year, period, and subperiod.
This non-editable field displays "N" (No) when the journal entry has not been created and "Y" (Yes) after the journal entry has been posted to the General Ledger. The Process Organization Changes utility creates the journal entry. Once you have posted the journal entry created by this process, the system will automatically change this flag to "Y."
After you have created the General Ledger journal entry, the number will display in this non-editable field. This journal entry number is created by the Process Organization Changes utility.
This non-editable field displays "N" (No) when Accounts Receivable tables have not been updated with this organization change information. To change this column to "Y" (Yes), save the Basic Project Info screen and run the Process Organization Changes screen.
Select the Update A/R History radio button when you run the Process Organization Changes screen.
This non-editable field displays the date on which the owning organization was changed on the main screen. This field is for audit purposes.
This non-editable field displays the name of the user who changed the owning organization. This field is for audit purposes.
Changes to this screen update the ORG_HIST (Organization History) table.