Setting Up PeopleSoft Payables Business Units

This chapter provides an overview of PeopleSoft Payables business units and discusses how to:

Define procurement controls for general ledger business units.
Define PeopleSoft Payables business units.
Define PeopleSoft Payables business unit options by setID.

Understanding PeopleSoft Payables Business Units

This section discusses:

PeopleSoft Payables business unit overview.
Responsibilities.
PeopleSoft General Ledger business unit considerations.
TableSets.
PeopleSoft Payables control hierarchy.
Questions to ask.
PeopleSoft Payables business unit setup steps.

PeopleSoft Payables Business Unit Overview

In a PeopleSoft system, a business unit is an operational subset of an organization that enables you to plan operations based on the way the organization functions.

Before you implement an application for an organization, determine how the business operates. To make the most of the PeopleSoft system's flexibility, you have to decide how to map operational business structures to the PeopleSoft application.

Some of the characteristics of PeopleSoft Payables business units can affect how you define them in the implementation of the application. This section discusses some of these key traits of business units so that you can decide the best way to use them.

Responsibilities

You can set up separate business units even if you don’t need them for processing. For example, one department in an organization may be responsible for a particular group of vendors, or particular types of vouchers, and you might want a separate business unit for that department. Alternatively, you might group certain types of vendors for analytical reasons, even though the vendors' payables are processed in the same way as other vendors' payables. Or you might want to maintain control and balances at a lower level than the entire organization level.

PeopleSoft General Ledger Business Unit Considerations

You must define each business unit in PeopleSoft Payables and in PeopleSoft General Ledger or the third-party general ledger system that you use. A PeopleSoft Payables business unit must be associated with a general ledger business unit.

General ledger business units define the accounting processing for their associated PeopleSoft Payables business units.
PeopleSoft Payables business units have few accounting controls; they have mostly operational defaults and controls.

The association does not need to be one-to-one; you can consolidate multiple PeopleSoft Payables business units in one general ledger business unit. However, you cannot have a single PeopleSoft Payables business unit that is associated with multiple general ledger business units.

Depending on the operating, accounting, and reporting requirements, you may want to have PeopleSoft Payables business units that are defined differently from the general ledger business units. Nevertheless, when you determine how many business units you need, be sure to consider the general ledger.

TableSets

Before you set up the business units, decide on the TableSet structure and establish setIDs.

When you plan the business unit structure, you need to understand TableSets, which are used in all PeopleSoft Financials applications.

The accounting structure and processing rules for each PeopleSoft application that you use are defined in a series of control tables. A TableSet is a group of rows shared across control tables and identified by the same setID, on which you define the accounting structure for each business unit. For a business unit to process transactions, it must have an associated TableSet.

Several business units can share the control data in a TableSet; for example, vendors are defined by setID, and you can set up any number of business units to share the vendors in a setID.

Consider this relationship in simplified terms: the business unit contains all the actual data, and the TableSet contains the rules by which the data is processed. A setID identifies each TableSet. You can have as many setIDs as you like, but having numerous setIDs makes TableSet sharing more complex. Create at least one setID even if you do not take advantage of TableSet sharing. Some organizations need only one setID.

Warning! In general, create setIDs and business unit names that are five characters long. Performance degradation can occur (depending on the operating system) if setIDs or business units have fewer than five characters.

See Also

Enterprise PeopleTools PeopleBook: PeopleSoft Application Designer

PeopleSoft Payables Control Hierarchy

A business unit is the broadest element in the PeopleSoft Payables system. All other entities fall beneath it in the control hierarchy. It is therefore the highest level from which default information can be derived. The system automatically uses the information that you specify at the business unit level unless you override it at lower levels in the application, such as the origin, control group, vendor, or voucher levels.

As you set up processing options at levels below the business unit level, notice that the first option for most functions is Default. Selecting this option points the PeopleSoft Payables system to the next higher level in the control hierarchy to obtain the value. For example, when you define voucher and payment options for voucher origins, you can have each category obtain the default values from the rules that are already defined at the business unit level.

See Also

PeopleSoft Payables Control Hierarchy

Questions to Ask

Every organization has different requirements. However, after you review this chapter, you must examine the organization’s existing structures and determine how many business units you need. Then ask yourself the following questions:

Is there any reason why the proposed business unit structure cannot work?
Does this structure preclude the organization from using any functionality?
Does the structure restrict reporting capabilities?
Does the structure require too much data to be processed on a given night?
Is the level of data processing acceptable?

PeopleSoft Payables Business Unit Setup Steps

Use the following steps to set up PeopleSoft Payables business units:

Define general ledger business units.

(This is a prerequisite; consequently, it is not discussed in this chapter.)

See Defining General Ledger Business Units.
Set up procurement accounting controls for general ledger business units using the Procurement Controls component (BUS_UNIT_INTFC2).

See Defining Procurement Controls for General Ledger Business Units.
Define the PeopleSoft Payables business unit in the Payables Definition component (BUS_UNIT_TBL_AP).

See Defining PeopleSoft Payables Business Units.
Define Payables options for PeopleSoft Payables business units by setID in the Payables Options component (BU_CTLB).

See Defining PeopleSoft Payables Business Unit Options by SetID.

Defining Procurement Controls for General Ledger Business Units

Once you have defined the general ledger business units, you must define the procurement accounting controls for each general ledger business unit that is associated with the PeopleSoft Payables business units. These settings determine how the PeopleSoft Payables business units interfaces with the general ledger. You define these controls in the Procurement Control component.

To set up your procurement controls, use the Procurement Control component (BUS_UNIT_INTFC2).

To load data into the tables for the Procurement Control component, use the EM_BUS_UNIT_INTFC component interface.

This section provides an overview of discount accounting controls, lists prerequisites, and discusses how to:

Select general controls.
Set up nonmerchandise charges.
Define general ledger templates.
Select evaluated receipt settlement (ERS) options.
Select withholding options.
Specify withholding ChartFields.

Note. The Document Types page appears only if document sequencing is enabled for the general ledger business unit.

Understanding Discount Accounting Controls

The General Controls page in the Procurement Control component contains numerous options for setting up accounting controls for discounts lost. This section discusses how to use some of these options.

Discount Lost Accrual

The Accrue Discounts Lost check box on the General Controls page in the Procurement Control component enables you to accrue at net but also to accrue the potential discount lost. If you take the discount later, the system reverses the discount lost.

When accounting at net in PeopleSoft Payables, you can account for lost discounts in one of two ways:

Account for lost discounts during payment posting.
Account for lost discounts during voucher posting.

If you account for lost discounts during payment posting, both the accounts payables offset account and the expense distribution accounts are recorded during the accrual entry net of discount. When the payment is made for this voucher, if the discount is still available, no additional entries are necessary beyond the normal payment entries. If the discount is not taken, a discount lost is recorded to a discount lost control account. The system creates accounting entries as follows:

Event	Account	Debit Amount	Credit Amount
Voucher Entry	Accounts Payables		1,080
	Expense	1,080
Payment with discount taken	Accounts Payables	1,080
	Cash		1,080
Payment without discount	Accounts Payables	1,080
	Cash		1,100
	Discount Lost (Expense)	20

If you account for lost discounts during voucher posting, the accounts payable offset account is booked at the gross amount, while the expense distribution accounts are booked at the net amount. This method of accounting is specifically designed to meet German and Austrian accounting requirements, but other countries may need to use it as well. The difference is booked to the discount lost control account. If the discount is not taken, no additional entries are necessary beyond the normal payment entries, because the discount lost has already been booked. If the discount is taken, then an offset to the discount lost must be created to ensure that no discount lost has been booked. The system creates accounting entries as follows:

Event	Account	Debit Amount	Credit Amount
Voucher Entry	Accounts Payables		1,100
	Expense	980
	VAT Input	100
	Discount Lost (Expense)	20
Payment without discount	Accounts Payables	1,100
	Cash		1,100
Payment with discount taken	Accounts Payables	1,100
	Cash		1,078
	Discount Expense		20
	VAT Adjustment		2

Discount Memo Account

The Record Discount Memo Account check box on the General Controls page in the Procurement Control component enables you to set up the system to post discount entries at the time of payment using memo accounts. Using this method, if users accrue at gross but later lose the discount, the system generates entries to the discount lost and discount lost memo accounts. You can set up the system to generate similar entries to the discount earned and discount earned memo accounts when accruing at net.

You can post discount entries using memo accounts in one of two ways:

Accounting at gross.
Accounting at net.

If you account at gross for a general ledger business unit (using the vouchering general ledger business unit) the system creates accounting entries as follows:

Event	Account	Debit Amount	Credit Amount
Voucher Entry	Accounts Payables		1,000
	Expense	1,000
Payment without discount	Accounts Payables	1,000
	Cash		1,000
	Discount Lost	20
	Discount Lost Memo		20
Payment with discount taken	Accounts Payables	1,000
	Cash		980
	Discount Earned		20

If you select accounting at net for a general ledger business unit (using the vouchering general ledger business unit), the system uses the Record Discount Memo option in conjunction with the Accrue Discount Lost option to determine the accounting entries:

Example 1: Voucher Entered at Net with 2 Percent Discount:

In this scenario, it is assumed that the Accrue Discount Lost check box is not selected.

Event	Account	Debit Amount	Credit Amount
Voucher Entry	Accounts Payables		980
	Expense	980
Payment without discount	Accounts Payables	980
	Cash		1,000
	Discount Lost	20
Payment with discount taken	Accounts Payables	980
	Cash		980
	Discount Earned		20
	Discount Earned Memo	20

Example 2: Voucher Entered at Net with 2 Percent Discount:

In this scenario, it is assumed that the Accrue Discount Lost check box is selected.

Event	Account	Debit Amount	Credit Amount
Voucher Entry	Accounts Payables		1,000
	Expense	980
	Discount Lost	20
Payment without discount	Accounts Payables	1,000
	Cash		1,000
Payment with discount taken	Accounts Payables	1,000
	Cash		980
	Discount Lost		20
	Discount Earned		20
	Discount Earned Memo	20

Note. This method of accounting is specifically designed to meet German and Austrian accounting requirements, but other countries may need to use it as well.

Prerequisites

Before defining procurement accounting controls for PeopleSoft Payables business units, you must:

Define a posting method on the Installation Options - Payables page.
Define journal templates on the Journal Generator Templates pages.
Define a combination edit template for vouchers and set up ChartField combination editing.
Define standard cost charges on the Misc Charge / Landed Cost Defn (miscellaneous charge/landed cost definition) page.
Set up withholding entities, types, and jurisdictions, as well as withholding business unit categories

Setting Up for Journal Generator

Editing ChartField Combinations

Defining Miscellaneous Charges and Landed Costs

Pages Used to Define Procurement Controls for General Ledger Business Units

Page Name	Object Name	Navigation	Usage
Procurement Control - General Controls	BUS_UNIT_INTFC1	Set Up Financials/Supply Chain, Business Unit Related, Procurement, Procurement Control, General Controls	Specify how accounting entries are processed.
Procurement Control - Non-Merch Charges (procurement control - nonmerchandise charges)	BUS_UNIT_INTFC3	Set Up Financials/Supply Chain, Business Unit Related, Procurement, Procurement Control, Non-Merch Charges	Define proration, allocation, and expensing options for nonmerchandise charges.
Procurement Control - GL Templates (procurement control - general ledger templates)	BUS_UNIT_INTFC6	Set Up Financials/Supply Chain, Business Unit Related, Procurement, Procurement Control, GL Templates	Specify the payables journal templates.
Procurement Control - ERS Options (procurement control - evaluated receipt settlement options)	BUS_UNIT_INTFC5	Set Up Financials/Supply Chain, Business Unit Related, Procurement, Procurement Control, ERS Options	Enable ERS processing for the general ledger business unit and select the self-billed invoice (SBI) document option.
Procurement Control - Withholding	BU_WTHD_JUR	Set Up Financials/Supply Chain, Business Unit Related, Procurement, Procurement Control, Withholding	Specify general ledger business unit withholding setup options. The withholding process uses this information to determine the withholding entities to which you report or for which you act as a collection agent.
Withholding ChartFields	WTHD_BU_CF	Click the ChartFields link on the Procurement Control - Withholding page.	Set up accounting ChartField parameters. Specify general ledger information for each withholding class; indicate where the withholding amounts are going with respect to general ledger.

Selecting General Controls

Access the Procurement Control - General Controls page.

Early Payment Discount and Late Payment Charges

All of the fields in this group box are used during posting and none can be overridden, except the accounting policy, which you can override when you create a voucher.

Accounting Policy

Select an option to use as a default for vouchers. You can override the accounting policy when you create a voucher. Options are:

Gross: The system uses the gross amount of vouchers as the basis for accounting; any discounts taken are recognized as discounts earned.

Net: The system uses the net amount of vouchers as the basis for accounting. Any discounts that you lose are recognized as discounts lost.

Accrue Discounts Lost

Select to account at net per German and Austrian requirements. If you select this option, the system accounts for lost discounts during voucher posting. If you don’t select this option, the system accounts for lost discounts during payment posting.

Record Discount Memo Account

Select this option to record both discount earned and discount lost at payment creation regardless of whether you account at net or gross.

See Understanding Discount Accounting Controls.

Discount Allocation Policy

Use the fields in this group box to determine how discounts are charged.

Allocate Discounts

Select to have the system use the account from the accounting entry template and create all other ChartFields based on the inheritance rule for the setID associated with the general ledger business unit of the distribution line. (The system uses the PeopleSoft Payables distribution-level entries inheritance group).

The discount lines inherit the general ledger business unit of the distribution lines.

Prorate Discounts

Select to have the system create discount entries on separate lines using the account and all other ChartFields on the distribution lines for the voucher.

The discount lines inherit the general ledger business unit of the distribution lines.

Expense Discounts

Select to have the system use the account from the accounting entry template and create all other ChartFields based on the inheritance rule for the setID associated with the general ledger business unit of the vouchering business unit. (The system uses the PeopleSoft Payables header-level entries inheritance group).

The discount line uses the general ledger business unit of the vouchering business unit.

Note. This option is available only if you use the summary control posting method.

Late Payment Allocation Policy

Use the fields in this group box to determine how late charges are applied.

Allocate Late Charges

Select to allocate late interest charges.

If you select this option, the system uses the late interest charges account from the accounting entry template and creates all other ChartFields based on the inheritance rule for the setID associated with the general ledger business unit of the distribution line. (The system uses the PeopleSoft Payables distribution-level entries inheritance group).

The late charge lines inherit the general ledger business unit of the distribution lines.

Prorate Late Charges

Select to prorate late interest charges.

If you select this option, the system creates late interest charge entries on separate lines using the account and all other ChartFields on the distribution lines for the voucher.

The late interest lines inherit the general ledger business unit of the distribution lines.

See Defining Late Interest Charges.

Document Tolerance

Enable Document Tolerance

Select to enable document tolerance checking for the selected general ledger business unit.

See Running Document Tolerances.

Combination Edit Template

Template

Select the combination edit template that the Voucher Build Application Engine process (AP_VCHRBLD) uses. This is used only for batch voucher editing and is not necessary for online voucher entry because the system handles combination editing for online entry differently.

See Setting Up Combination Editing.

Accounting Controls

Accounting Date Edit Option

Specify whether future-dated accounting entries are allowed. Options are:

Error Message: Select to control which users have the authority to enter accounting dates beyond the current date for vouchers.

No Message: Select to enable all users to enter accounting dates beyond the current date for vouchers without receiving a warning or error message.

Warning Message: Select to display a warning message when users enter accounting dates beyond the current date for voucher.

Allow Unpost Paid Vouchers

Select to enable users to unpost vouchers that have been partially or fully paid.

See Unposting Vouchers.

See Also

Defining Payables User Preferences

Setting Up Nonmerchandise Charges

Access the Procurement Control - Non-Merch Charges page.

Proration and Allocation of Nonmerchandise Charges

To understand the options on this page, you need to understand how proration and allocation of nonmerchandise amounts work.

During voucher entry, nonmerchandise amounts are prorated to each distribution line based on some ratio of total expense to the merchandise or other value on the distribution lines of the voucher, or they are not prorated. This depends on the charge code, which you set up in the Misc Charge/Landed Cost Defn (miscellaneous charge/landed cost definition) component (CM_LC_COMPONENT). If non merchandise amounts are not prorated, you can specify on the Procurement Control - Non-Merch Charges page whether to allocate them to separate accounting lines or to record them to summary expense accounts. This table describes what happens when you prorate, allocate, or expense (neither prorate or allocate) nonmerchandise charges:

Action	Result
Prorate	Records the prorated amount along with the merchandise amounts on the distribution line. If you prorate nonmerchandise amounts, the amounts charged to the distribution lines are added to merchandise amounts on the distribution lines, and the total is posted to the distribution ChartFields.
Allocate	Creates separate accounting entries for the nonmerchandise amount for the distribution line. If you allocate nonmerchandise amounts, the amounts charged to the distribution lines are posted to the appropriate nonmerchandise accounts from the accounting template, and the other ChartField values are based on the inheritance rules. ChartField inheritance is defined at the ledger group level and on the ChartField Inheritance page.
Expense (non-prorate/non-allocate)	Records the amounts to summary expense accounts. If you use summary control posting, you have two options for nonprorated charges. You can either expense the charges at the header, or allocate them to the distribution lines. You allocate them by selecting the Allocate check box on the Non-Merch Charges page in the Procurement Accounting Controls component. If you use detail offset posting, you have only one option for nonprorated charges. You must allocate them. For this reason, the Allocate check box is selected and unavailable for entry on the Non-Merch Charges page in the Procurement Accounting Controls component.

Default Nonmerchandise Charge Codes

Use the fields in this group box to set the defaults for the nonmerchandise charges on the voucher. The charge codes that you select here are automatically populated in the vouchers that you create for the business unit. They determine where the nonmerchandise amounts are charged.

Each of the fields in this group box has a drop-down list box that displays the available charge codes for that nonmerchandise charge. You define the codes for these nonmerchandise charges on the Misc Charge/Landed Cost Definition page. When you select a charge code, you define the proration. The available charge codes are prorated (PR) or not prorated (NP), unless you have defined more charge codes on the Misc Charge/Landed Cost Definition page.

Note. The charge codes that you select here are only defaults. You can override these charge codes on the voucher itself.

Non-Prorated Allocation Policy

The fields in this group box determine whether a nonprorated nonmerchandise charge is allocated or charged as a nonprorated expense for a particular general ledger business unit.

If you use detail offset posting, this check box is automatically selected and display-only because you cannot expense nonmerchandise amounts with detail offset posting.

If you use summary control posting, you can select this check box to allocate the nonmerchandise charges to the distribution line, or you can clear the check box to expense the charges to the header.

Note. Unlike the charge codes, the allocation options cannot be overridden at voucher creation time. If you select a nonprorate option as the default here or on the voucher, the system uses the allocation option that you select here to either allocate or expense the nonmerchandise amount.

Allocate Sales Tax	Select to have the system create separate accounting entries for nonprorated sales tax amounts for the distribution line; the appropriate ChartFields are inherited.
Allocate Use Tax	Select to have the system create separate accounting entries for nonprorated use tax amounts for the distribution line; the appropriate ChartFields are inherited.
Allocate Freight	Select to have the system create separate accounting entries for nonprorated freight amounts for the distribution line; the appropriate ChartFields are inherited.
Allocate Miscellaneous Charges	Select to have the system create separate accounting entries for nonprorated miscellaneous charge amounts for the distribution line; the appropriate ChartFields are inherited.

VAT Non Recoverable Policy

Use the fields in this group box to set the defaults for the nonrecoverable VAT charges on the voucher. The charge code that you select here automatically appears on the vouchers that you create for the business unit. You can override it on the voucher.

VAT Non-Recovery Charge

Select from the delivered options or additional charge codes that you define on the Misc Charge/Landed Cost Definition page. Options are:

NRVATNP (do not prorate nonrecoverable VAT): Nonrecoverable (taxable) VAT is not prorated to the distribution line ChartFields.

NRVATPR (prorate nonrecoverable VAT): Nonrecoverable VAT is prorated to the ChartFields on the distribution line.

Allocate Non-Recoverable VAT

Select to have the system create separate accounting entries for the nonrecoverable VAT amount for the distribution line. This check box applies only to nonprorated nonrecoverable VAT charge codes.

The VAT nonrecoverable amount is posted to the account defined on the VAT accounting template (VAT Code - Accounting Information page), and the other ChartField values appear automatically based on the ChartField inheritance rules.

If you are using summary control posting and you want to expense nonprorated nonrecoverable VAT charges at the voucher header, then do not select this check box.

You can override this option when creating vouchers.

See Also

Entering Nonmerchandise Charge Details

Establishing the PeopleSoft Payables VAT Default Hierarchy

Defining Miscellaneous Charges and Landed Costs

Defining General Ledger Templates

Access the Procurement Control - GL Templates page.

Payables Journal Templates

Specify the PeopleSoft Payables journal templates to use for the general ledger business unit. These templates define the summarization rules for creating journals that are passed to the general ledger. The PeopleSoft Payables system creates one journal each for accruals, payments, payment cancellations, manual closures, revaluations, and cash clearings; you must specify a different journal template for each.

Purchasing Journal Templates

Receipt Accrual	Select the journal template to use for receipt accrual in PeopleSoft Purchasing. The standard template that is provided for receipt accrual is REC_ACCRUE.
Procard	Select the journal template to use for procurement card processing in PeopleSoft Purchasing. The standard template provided for procurement card is ProCard.

See Also

Using Receipt Accrual

Using Procurement Cards

Using the Journal Entry Template to Show Journal Line Columns and Define Copy Down Options

Selecting ERS Options

Access the Procurement Control - ERS Options page.

ERS Option

ERS is a process by which the Voucher Build process builds vouchers from procurement receipt records. If you plan to use the Voucher Build process to create ERS vouchers for business units associated with this general ledger business unit, then you need to set the ERS option to Allow ERS.

ERS Invoice Date Option

Select the method that the system uses to create the ERS voucher invoice date. Options are:

Frt Terms (freight terms): The freight terms determine whether to use the receipt or the shipment date as the invoice date.

Recv Date (receiver date): The system uses the receiver data.

SBI Numbering Options

Select to define how the system groups SBIs. Options are:

Group Vouchers (Auto-Num) (group [auto-number]): The system groups ERS vouchers in a single SBI voucher.

Individual Vchr - Invoice Number (individual voucher - invoice number): The SBI contains information from only a single voucher. The system generates the SBI number by combining the invoice number with the ERS sequence number.

Individual Voucher (Auto-Num) (individual voucher [auto-number]): The SBI contains information from only a single voucher. The system assigns the next available SBI number based on the invoicing location.

ERS Tax Type

Select to indicate the type of tax to which the vouchers are subject. Options are No Taxes, Sales Tax, Use Tax, and VAT.

See Also

Processing Self-Billed Invoices

Processing Batch Vouchers

Selecting Withholding Options

Access the Procurement Control - Withholding page.

Specify the general ledger business unit’s relationship to the various withholding entities for whom you withhold. These tax authorities use this information to determine your relationship with them. Enter the applicable information for each combination of withholding entity, type, jurisdiction, and business unit category.

Note. The withholding entity and class information is related to the information defined on the Withholding Entity page. Therefore, the effective date used on this page must be greater than or equal to the effective date on the Withholding Entity page.

Collection Agent Flag	Select if you are a collection agent for the entity.
Last Certificate Number	Enter the last certificate number for the entity.
(ARG) Codigo DGR	Used exclusively in Argentina. This field is for information purposes only and does not trigger any action.
ChartFields	Click to access the Withholding ChartFields page to set up accounting parameters.

Specifying Withholding ChartFields

Access the Withholding ChartFields page.

Because withholding ChartFields are defined at the business unit level, you can specify ChartFields for every withholding entity, type, and jurisdiction.

Note. For each withholding class, you must specify the account ChartField. The system displays an error message upon saving if you have not populated the Account field.

Withholding Class

Displays the withholding classes defined for the withholding entity, type, and jurisdiction. The system automatically populates this field based on what you define on the Withholding Entity page. You can delete a withholding class if you have deleted the class on the Withholding Entity page. Otherwise, the delete button is not available.

Note. When you add a new withholding class for an entity on the Withholding Entity page, the system populates this page with the new withholding class. The system populates the Account field with the account for the minimum withholding class of the entity. If the system is unable to determine a valid account, you must manually insert the account on this page. For example, you define account 230000 for withholding class 01 and account 235000 for withholding class 02. When you add a new withholding class 03 on the Withholding Entity page, the system populates the account with 230000 for the withholding class 03 on the Withholding ChartFields page (the account defined for the minimum withholding class, in this example, 01).

When you delete a withholding class for an entity on the Withholding Entity page, the system displays a warning message stating that you must delete the withholding class from the Procurement Control - Withholding page as well.

Account

Select the account to be used as the withholding liability account in general ledger. This field is required. You can also select the ChartFields associated with the account you selected, as appropriate.

Note. The account is based on the TableSet control of the business unit rather than the setID of the withholding entity.

See Also

Defining Withholding Entities

Defining PeopleSoft Payables Business Units

To set up your PeopleSoft Payables business units, use the Payables Definition component (BUS_UNIT_TBL_AP).

To load data into the tables for the Payables Definition component, use the EM_BUS_UNIT_AP component interface.

This section describes how to:

Create a new PeopleSoft Payables business unit.
Link PeopleSoft Payables business units with general ledger business units.
Update open periods.
Establish tax options.
Set voucher build options.
Establish matching options.
Define payment options.
Set up numbering.
Define summary invoice controls.

Page Used to Define PeopleSoft Payables Business Units

Page Name	Object Name	Navigation	Usage
Payables Definition - Definition	BUS_UNIT_TBL_AP1	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Definition	Create a new business unit, link it with a general ledger business unit, and assign a location code to the unit. Select the accounting template and posting options for the business unit.
Business Unit ID Numbers	BU_ID_NBRS_AP_SEC	Click the ID Numbers link on the Payables Definition - Definition page.	Specify ID numbers to associate with the business unit.
Open Period Update	OPEN_PERIOD_SINGLE	Click the Update Open Periods link on the Payables Definition - Definition page. Set Up Financials/Supply Chain, Business Unit Related, General Ledger, Open Periods, Open Period Update	Update the open periods for a business unit.
Payables Definition - Tax Options	BUS_UNIT_TBL_AP2	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Definition, Tax Options	Specify sales and use tax options and VAT options for the business unit.
Payables Definition - Voucher Build	BUS_UNIT_TBL_AP3	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Definition, Voucher Build	Specify default options for the Voucher Build Application Engine process (AP_VCHRBLD) for the business unit.
Payables Definition - Matching	BUS_UNIT_TBL_AP4	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Definition, Matching	Specify the matching options for the business unit.
Payables Definition - Payments	BUS_UNIT_TBL_AP5	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Definition, Payments	Specify payment options for the business unit.
Payables Definition - Numbering	BUS_UNIT_TBL_AP6	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Definition, Numbering	Specify auto-numbering options for the business unit.
Payables Definition - Summary Invoice	BUS_UNIT_TBL_AP7	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Definition, Summary Invoice	Specify summary invoice tolerance controls for the business unit.

Creating a New Business Unit

Access the Payables Definition - Definition page.

To create a new PeopleSoft Payables business unit:

On the Add Search page in the Payables Definition component, enter the business unit ID for the PeopleSoft Payables business unit that you want to create, and click Add.

Note. Use business unit IDs that are five characters long to optimize system performance.
Enter a description and short description of the business unit and specify a default setID.

The setID can be the value of another existing business unit whose setID you want to copy for the business unit that you are adding. Alternatively, by entering the ID of the new business unit that you are creating, you can also establish a new empty setID having the same name as the business unit.

See TableSets.

Note. Most other fields on the page are unavailable and must be completed after you have finished creating the business unit.
Click Create BU to create the PeopleSoft Payables business unit and, if applicable, the new setID.

The system automatically creates the business unit. If you have completed the general ledger business unit setup, the procurement controls, and other relevant control table data, you can continue to complete the business unit definition.

Understanding PeopleSoft Payables Business Units

Linking PeopleSoft Payables Business Units with General Ledger Business Units

Access the Payables Definition - Definition page.

Enter the general ledger business unit information on the Payables Definition - Definition page.

Accounting Information

GL Business Unit (general ledger business unit)	Select the general ledger business unit to which you want to assign the PeopleSoft Payables business unit. Each line of distribution that you enter for a voucher can be charged to this general ledger business unit—the charge to business unit. The charge to business unit automatically appears as the general ledger business unit associated with the PeopleSoft Payables business unit that owns the voucher. You can charge vouchers to general ledger business units other than the default of the vouching business unit for a given distribution line. When the charge to general ledger business unit differs from the general ledger business unit of the vouching business unit, PeopleSoft Payables automatically creates interunit payables and receivables entries to reflect the business transaction. ChartField values on the distribution line that you enter are validated against the ChartField tables valid for the charge to general ledger business unit. For payment accounting, each bank account has a cash and cash clearing account associated with it. These accounts are tied to a particular general ledger business unit. The system enables you to pay vouchers of multiple PeopleSoft Payables business units from one bank account. If you do this, the system creates interunit payables and receivables automatically based on the payment interunit account on the general ledger business unit.
Accounting Entry Template	Select the template to associate with the PeopleSoft Payables business unit. The accounting entry template identifies the offset accounts that the system uses to balance payables transactions. It also identifies the accounts that the system uses to allocate nonmerchandise charges. You set it up on the Accounting Entry Template page. Other ChartField values can be inherited from the accounting entry template depending on the ChartField inheritance setup.
Ship To	Enter the default ship to location. The ship to location determines how the sales and use tax appear by default on the voucher in a sales and use tax environment, and how the VAT appears by default on the voucher in a VAT environment. You define ship to locations in the Ship To Locations component. You can override this default at lower levels in the PeopleSoft Payables control hierarchy.
Update Open Periods	Click to access the Open Periods Update page, where you can specify open and closed periods for this business unit that differ from that of the general ledger business unit. See Updating Open Periods.

Posting Option

Post Date Indicator	Select to identify which transactions are eligible for posting. Options are: Post All Transactions: The system posts all transactions eligible for posting. Use Accounting Date: The system selects transactions for posting based on the accounting date option specified on the Payables Options - Payables Options Page. Use Current Date: The system selects transactions for posting based on the date of the transaction. Use Specific Date: The system uses the date that you enter on this page to select transactions for posting. Keep in mind that if you enter a specific date here, all voucher transactions entered for business units using this setID have the same accounting date.
Open for Voucher Posting	Select to post any vouchers or payments in the business unit.
Post Unapproved Vouchers	Select to post vouchers regardless of their approval status. If you do not want to post vouchers before they have been approved, you must clear this check box.
Post Unmatched Vouchers	Select to post vouchers regardless of their matching status. If you do not want to post vouchers before they have been successfully matched, you must clear this check box.

Miscellaneous

Location

Enter a code to indicate which address defined on the Location Definition page prints on payment forms for the business unit.

ID Numbers

Click to access the Business Unit ID Numbers page, where you can associate various ID numbers with the PeopleSoft Payables business unit.

You select an identifier type, such as Dun & Bradstreet Number, from a drop-down list in the Standard ID Qualifier field, and enter the ID number for each identifier type that you select.

Revaluation Posting Option

Revalue Option

Select to specify the level of detail for revaluation entries. Options are:

Unit: The system groups entries by business unit. There is only one entry for the business unit.

Vendor: The system groups entries by business unit and vendor. There are entries for each business unit and vendor combination.

Voucher: There is an entry for each voucher.

See Also

Running Voucher and Payment Posting

Managing Voucher Line Tax Information with Taxware and Vertex

Processing Value Added Tax (VAT) in PeopleSoft Payables

Processing Multiple Currencies in PeopleSoft Payables

Creating Accounting Entry Templates

Setting Up Locations

Defining Ship To Locations

Updating Open Periods

Access the Open Period Update page.

The normal default open period dates for each PeopleSoft Payables business unit are the same as the dates for the general ledger business unit with which it is associated. Use this page when you want an accounting period in PeopleSoft Payables to open or close at a different time from that of an accounting period in PeopleSoft General Ledger.

From Year and To Year	Define the open period dates by entering a fiscal year (or fiscal year calendar ID number) in the From and To fields.
From Period and To Period	Define the open periods by entering an accounting period in both the From Period and To Period fields.
Begin Lag and End Lag	Enter the lag days for the beginning and end of the open periods. Lag days must be entered as a negative number. To understand how PeopleSoft Payables calculates lag days, assume that period 2 begins February 1, 2006, and you enter −3 in the Begin Lag field. The system calculates the first open date to be January 29, 2006. If you were to define your lag days in this way, a voucher entered into the system on January 29, 2006 would get a default accounting date of February 1, 2006 instead of January 29, 2006. If you really want it to be January 29, you can override the default at entry time. The accounting date on the voucher is the accounting date the Voucher Posting Application Engine process (AP_PSTVCHR) and the Journal Generator Application Engine process (FS_JGEN) will use to calculate the accounting period. The system uses the end lag days to close the open period prior to the actual end of the period. Use lag days to close the accounts payable month to transactions before you close the general ledger month. Lag days only apply to the first and last open accounting periods. Important! Lag days functionality only applies when you use a voucher's current date as the accounting date. If you override the current date on a voucher, lag days functionality is disabled for that transaction. Likewise, if you select a specific accounting date at any of the following PeopleSoft Payables hierarchy levels—business unit (Payables Options), voucher origin, or control group—and that specific date prepopulates the voucher, lag days functionality is disabled for that voucher.
First Open and Last Open	The system calculates these dates based on the beginning and end of the open periods and the lag days. The system uses these dates to determine the first and last valid dates for transactions for the period. The first open date is based on the beginning date for the from year and from period, plus lag days. For example, suppose that the period starts April 1 and you specify –3 as the Begin Lag value, the system calculates the first open date of the period to be March 29. The last open date is calculated similarly. You can override the first open and last open dates. Changing the date does not change the lag days. This enables you to override the calculated period start date for one time only. When the next mass update occurs, the first open date is calculated as defined.

Warning! The system issues a warning message if you select a closing date for the PeopleSoft Payables business unit that is later than the closing date for the general ledger business unit. If you do select a closing date for the PeopleSoft Payables business unit that is later than the closing date for the general ledger business unit, any transactions entered after the general ledger business unit closing date is not transferred to the general ledger.

Understanding Accounting Calendars Based on Open and Close Periods

Establishing Tax Options

Access the Payables Definition - Tax Options page.

Sales and Use Taxes

Hide Sales Use Tax	Select to prevent the sales and use tax fields from appearing on any vouchers for the business unit. You can use this option if this business unit does not process sales and use tax transactions.
Sales and Use Tax Edit Message	This message appears if there is a discrepancy between entered and calculated sales tax amounts on the voucher. Options are: Error: The system displays an error message describing the exceeded tolerance amounts and the calculated sales tax amount, and it places the voucher in a recycle status. You must accept the calculated amount. No Message: No message appears. You can save the voucher, but tolerance checking is not performed. Warning: The system displays an informational message when sales tax tolerances have been exceeded, but you can still save the voucher with the exceeded amount. You set up sales tax tolerance amounts or percentages on the Payables Options - Tax Options page.
Difference Option	Select to specify how discrepancies are addressed between tax amounts that are entered by users and tax amounts that are calculated by the system. Options are: Accrue: The system creates use tax charges for the voucher line whenever the calculated sales tax is greater than the sales tax input. This option enables both sales tax and use tax to be applied to a voucher line. N/A (not applicable): If sales tax is applicable, the sales tax amount that is entered on the voucher is applied to the voucher line, even if the amount is different from the calculated sales tax. The system does not calculate use tax. If you use Taxware or Vertex software, you must select this option.
Ultimate Use Code	Enter a code to override the default tax rate that is based on the ship to location. Entering a value indicates that the final use of the taxed item results in a different tax rate within the same ship to or usage destination.

Value Added Tax

Hide Value Added Tax

Select to prevent the VAT fields from appearing on any vouchers for the business unit. You can use this option if the business unit does not process VAT transactions.

Note. Leave this check box cleared for all PeopleSoft Payables business units that are VAT-enabled by virtue of being mapped to a PeopleSoft General Ledger business unit that is part of a VAT entity.

Value Added Tax Edit Message

Select to determine whether a message appears when tolerances set at the payables options level are exceeded. Options are:

Error Msg (error message): An error message appears when you save the voucher.

None: No message appears, and you can save the voucher.

Warning: A warning message appears, but you can save the voucher.

VAT Default

Click to access the VAT Defaults Setup page.

The VAT Defaults Setup page is a common page used to set up VAT defaults for all PeopleSoft applications that process VAT transactions. You can define PeopleSoft Payables VAT business unit defaults, specifically, VAT apportionment control.

Note. These settings can also be set by accessing the VAT Defaults component directly and selecting the AP Business Unit driver.

Note. There is also VAT default setup by setID on the Payables Options - Tax Options page.

Taxware or Vertex

If you have installed a third-party tax application, the Sales and Use Taxes group box contains a Tax Vendor check box. If you select this option, an additional group box appears, labeled either Taxware or Vertex, depending on the third-party application that you have installed and selected on the Installation Options - Overall page.

The Taxware or Vertex group box enables you to enter tax application data. In addition, a row of use tax liability ChartFields also appears. The values that you enter in these group boxes are passed to Taxware or Vertex and used in their respective tax calculation algorithms.

Company and Division	Enter the business unit in these fields. You must ensure that the business unit in the PeopleSoft system is identical to the company and division in Taxware or Vertex.
Posting Option	Select to designate which transactions are posted to the register in Taxware or Vertex. Options are: Accrued Transactions Only: Use tax transactions. All Transactions: All taxable and exempt transactions. Taxable Transactions Only: Sales and use tax transactions.
Freight Terms Code	Select to determine the point of order origin. This field is used only by Taxware. These codes are defined by the user on the Freight Terms page. You must ensure that the freight terms code is identical in Taxware and in the PeopleSoft system.
Ship Via Code	These codes are defined by the user on the Ship Via Codes page and are used by both Taxware and Vertex. You must ensure that the PeopleSoft code is identical to the code in Taxware or Vertex.
Use Freight Product Code	Select only if the tax vendor is Taxware. This field indicates that Taxware uses a freight product code from the Taxware application.
Freight Product Code	Enter a value only if the tax vendor is Vertex. Enter a code from the Vertex application.

Use Tax Liability

This is used only when PeopleSoft Payables is integrated with Taxware or Vertex. All accrued use taxes are posted to one account, and you determine which tax agencies to pay by using the register in Taxware or Vertex. Enter the ChartField values that define the accounting distribution line for use tax.

Processing Value Added Tax (VAT) in PeopleSoft Payables

Defining Freight Terms

Defining Shipping Codes

Working with VAT

Defining Sales and Use Tax Options

Setting Voucher Build Options

Access the Payables Definition - Voucher Build page.

Recurring Voucher Release Date

Contract Release Date Option

Select to specify which date the system uses to determine whether to build vouchers for contracts. The Voucher Build process builds vouchers for contracts with dates on or before the date generated by the contract date option.

Options are:

Curr Dt (current date): Use the current date.

No Date: Do not use any date option.

Specify: Specify a date in the Contract Release Date field.

Evaluated Receipt Settlement

You can override the default ERS settings for the business unit. The defaults are set on the Procurement Control - ERS Options page for the general ledger business unit associated with the PeopleSoft Payables business unit.

Adjustments

RTV Debit Memo (return to vendor debit memo)

Select to indicate how return to vendor debit adjustments are handled for the business unit.

If you select this check box, specify one of the following options in the RTV Adjustment Option field:

Create: Automatic RTV adjustments are made and vouchers are created in the voucher tables. The RTV vouchers are then available for payment as a credit with all of the other vouchers.

No Adj (no adjustment): No automatic adjustments are created. You must manually create a voucher to create a credit payment.

Stage: Vouchers with automatic adjustments are first staged in the quick invoice tables, enabling you to review the voucher for pre-edit errors prior to actual voucher creation.

Note. With the Commitment Control feature enabled and the RTV Debit Memo check box selected, you cannot select No Adj (no adjustment). Doing so causes the system to generate an invalid combination warning message.

Selecting options here also determines how the PeopleSoft Purchasing’s RTV Reconciliation Application Engine process (PO_RTVRECON) handles asset retirement transactions to the Asset Management interface. If you select No Adj (no adjustment option), the RTV Reconciliation process generates the asset retirement transactions received by Asset Management. However, if you select Create (create adjustment) or Stage (stage to pending file), PeopleSoft Payables generates the asset retirement transactions received by Asset Management.

See Also

Selecting ERS Options

Processing Batch Vouchers

Using Voucher and Order Contracts

Reviewing and Updating Quick Invoices, Staged Vouchers, and Vouchers with Pre-Edit Errors

Establishing Matching Options

Access the Payables Definition - Matching page.

Note. You must establish document association criteria on the Document Association Rules page before you can select options here.

Matching Criteria

Document Association

Enter a value to determine how the system associates purchase orders and receipts to vouchers. Set up the document association criteria on the Document Association Rules page.

Match Delay Days

Enter the number of days the system waits to include EDI and XML invoices in the Matching Application Engine process (AP_MATCH). The system adds the number of match delay days to the entry date to determine the match due date. The Matching process selects only the vouchers that are ready to be matched as of that date.

Note. Match delay days are only applicable to EDI and XML invoices. Override the number of match delay days at the origin, control group, vendor, or voucher level.

Matching for Voucher Approval

Select to have the Matching process set matched vouchers to Approved and bypass the voucher approval process.

Note. If you undo a matched voucher with this option selected, the Matching process updates the approval status on that voucher to Pending.

Additional Page Elements

Copy Gross Amount to Voucher

Select to have the system copy the total merchandise amount from a purchase order or receiver to the gross amount field on the voucher when you use a copy worksheet or the Copy PO function to copy a purchase order or receiver to a voucher.

By selecting this option, you indicate that, for all vouchers in the business unit, the system displays in the voucher header the corresponding total merchandise amount for the receiver or purchase order lines copied to the voucher lines. If you clear this check box, the gross amount is blank for vouchers in this business unit after you copy predecessor documents to the voucher. In that case, you enter the gross amount from the vendor's invoice.

Note. Sales tax, use tax, and VAT amounts are not included in the total amount copied to the voucher's gross amount field.

Defining Payment Options

Access the Payables Definition - Payments page.

Payment Calendar

Specify Calendar at Bank Level	Select to have the system use the payment calendar specified at the bank level to process all vouchers for the business unit. If you process payments for the business unit from multiple banks that use different calendars, this option provides more flexibility than specifying a calendar.
Specify Calendar	Select to have the system use the calendar that you specify here to process all payments for the business unit.

Schedule Pay Date Validation

Use Business Day

Select to enable the Go Next or Prior Business Day option.

Go Next or Prior Business Day

Select Next or Prior to have the system schedule the date as the next or prior day if the scheduled due date of a voucher for the business unit falls on a nonbusiness day in the business calendar. Then, if the holiday option is also enabled, the system schedules the date as due after the holiday or due before the holiday, according to the holiday option that you select.

When the Use Business Day check box is not selected but the holiday option is enabled, if the scheduled due date of a voucher in this business unit falls on a holiday, the system schedules the date as the next or prior business day according to the holiday option only.

Payment Options

Do Not Mix with other Units

Select to keep the business unit separate from other business units when you make payments to vendors.

If you do not select this option, the PeopleSoft Payables system enables you to combine payments for vouchers that originate in multiple business units. In other words, you can print one check to a vendor to satisfy multiple vouchers from multiple business units.

Important! This option applies only to payments handled through the regular pay cycle processes. During the Payment Selection process, the system checks for items marked with this option. As such, this option does not apply to express payments as they are created outside of the regular pay cycle schedule.

Payment Terms Basis Date Type

Specify a date that the system uses in conjunction with the voucher payment terms to calculate the net due date, discount due date (if applicable), and the scheduled due date.

Options are:

Acct Date (accounting date).
Doc Date (document date—date voucher is entered).
Inv Date (invoice date).
Recpt Date (receipt date).
Ship Date.
User Date (user-specified date).

Note. The system populates the appropriate date on the Payment Terms page. However, you are required to enter a basis date if you select User Date.

Late Interest Charges

Late Charge Option

Select to determine whether late charges are applied. Options are:

Compute Charges: The system calculates late charges.

Not Applicable: The system does not calculate late charges.

Late Charge Code

Select a late charge code. The system uses the code you select here as the basis for calculating late charges.

Early Payment Reason Code and Late Payment Reason Code

Select an early and late payment reason code. You set these up on the Payment Reason Code page.

See Also

Defining Payment Reason Codes

Setting Up Numbering

Access the Payables Definition - Numbering page.

Voucher Numbering

Voucher Numbering

Select to have the system number all vouchers automatically.

When you add a voucher, the ID field appears automatically as NEXT; when you save the voucher, the system assigns the next sequential number.

Control Group Numbering

Select this option to have the system number all control groups automatically.

When you add a control group, the ID field appears automatically as NEXT; when you save the control group, the system assigns the next sequential number.

Last Voucher Number

Last Voucher Number	Displays the last voucher number assigned in the PeopleSoft Payables system.
Group ID last assigned	Displays the last control group ID assigned in the PeopleSoft Payables system.

Note. Suppose that you have a legacy system, and you want to adjust the auto-numbering to begin at a specific ID to accommodate this. To do so, write-enable the Last Voucher Number field, the Group ID last assigned field, or both. Use PeopleSoft Application Designer to open the BUS_UNIT_TBL_AP6 page and use the Change Use dialog box to clear Display Only. Save the changes. Return to the Payables Definition - Numbering page, and enter the number or numbers at which you want the system to start auto-numbering. Return to PeopleSoft Application Designer and reselect Display Only. The auto-numbering function begins at the number that you entered, and the system increments it by one for the next voucher or control group that you enter.

(USF) Treasury Symbol Attribute

Treasury Symbol Attribute

Enter the treasury symbol ChartField attribute to associate treasury account symbols with specific fund codes. Use the ChartField Attribute and ChartField Attribute Values pages to define the treasury account symbols. When you perform this setup, treasury account symbols are stored for all transactions that are associated with fund codes.

Treasury account symbols represent summary accounts established by the U.S. Treasury Department for each appropriation and fund showing transactions to such accounts. Each account provides the framework for establishing a set of balanced accounts on the books of the respective federal agency.

Defining Summary Invoice Controls

Access the Payables Definition - Summary Invoice page.

Tolerance Percent Over

Specify the percent acceptable for the input merchandise amount to exceed the merchandise amount copied from the source document.

Tolerance Percent Under

Specify the percent acceptable for the input merchandise amount to be less than the merchandise amount copied from the source document.

Tolerance Amount Over

Specify the amount acceptable for the input merchandise amount to exceed the merchandise amount copied from the source document.

Tolerance Amount Under

Specify the amount acceptable for the input merchandise amount to be less than the merchandise amount copied from the source document.

Tolerance Currency Code

Specify the currency code for the tolerance amounts. Foreign currency transactions will be converted to the specified currency for tolerance comparison.

Rate Type

Specify the currency rate type to use for converting foreign currency transactions to the specified tolerance currency code.

Tolerance Misc Charge Code (tolerance miscellaneous charge code)

Specify the miscellaneous charge code to use for applying differences that are within tolerance. The miscellaneous charge code defines whether the tolerance amount is a nonprorated charge or prorated to the expense distribution lines.

Note. You must define a unique miscellaneous charge code on the Misc Charge/Landed Cost Defn page prior to specifying the tolerance miscellaneous charge code. If you define the miscellaneous charge code as nonprorated, define the ChartField to distribute the tolerance amounts on the Accounting Template Entry page.

See Also

Entering Summary Invoices

Defining Miscellaneous Charges and Landed Costs

Creating Accounting Entry Templates

Defining PeopleSoft Payables Business Unit Options by SetID

To set up your PeopleSoft Payables business unit options by SetID, use the Payables Options component (BU_CTLB).

To load data into the tables for the Payables Options component, use the EM_BU_CTLB component interface.

This section provides an overview of payables business unit setup by setID and discusses how to:

Establish accounting date options.
Define the voucher approval rules, default currency, and single payment master vendor.
Define voucher error-handling options.
Selecting payment options.
Selecting tax options.

Understanding PeopleSoft Payables Business Unit Setup by SetID

You continue the business unit setup by defining business unit parameters in the Payables Options component, which defines the defaults at the setID level. All business units assigned to the setID use the defaults that you specify in this component.

Note. Before you can complete the business unit setup in the Payables Options component, you must set up the control tables common to all PeopleSoft applications and use the Payables Definition component to establish the PeopleSoft Payables business units.

Note. You must also define processing options for the PeopleSoft Payables business units.

See Defining Procurement Options.

Pages Used to Define PeopleSoft Payables Business Unit Options by SetID

Page Name	Object Name	Navigation	Usage
Payables Options - Payables Options	BU_AP_OPT_ACCTG	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Options	Define accounting date options for PeopleSoft Payables business units sharing the setID.
Payables Options - Vouchering Options 1	BU_AP_OPT_VCHR1	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Options, Vouchering Options 1	Enter the voucher approval rules, currencies, and single payment master vendor for the setID.
Payables Options - Vouchering Options 2	BU_AP_OPT_VCHR2	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Options, Vouchering Options 2	Specify the actions that the system takes when it encounters duplicate invoices, incorrect ChartFields, and vouchers with unbalanced lines.
Payables Options - Payment Options	BU_AP_OPT_PYMNT	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Options, Payment Options	Specify the default payment terms, payment method, and bank account for the setID. These options control the defaults for vendors and individual vouchers.
Holiday Processing Options	HOL_PROC_SEC	Click the Holiday Options link on the Payables Options - Payment Options page.	Specify the holiday processing options for the setID.
Payables Options - Tax Options	BU_AP_OPT_TAX	Set Up Financials/Supply Chain, Business Unit Related, Payables, Payables Options, Tax Options	Specify sales tax, use tax, and VAT options for the setID.

Establishing Accounting Date Options

Access the Payables Options - Payables Options page.

Specify the accounting date option that the system uses for the setID. This setting controls default values (through the default hierarchy) on individual vouchers. The accounting date controls the period in which the accounting entry information appears in the general ledger. It largely determines when an accounting entry is selected for journal generation.

Use Current Date	Select to have the system apply the date of the transaction as the accounting date.
Use Specific Date	Select to have the system use the date that you enter on this page to determine which period to use for posting the transactions. Keep in mind that if you enter a specific date here, all voucher transactions entered for business units using the setID will have the same accounting date.

Defining the Voucher Approval Rules, Default Currency, and Single Payment Master Vendor

Access the Payables Options - Vouchering Options 1 page.

Pre-Approved

Select to implement voucher preapproval at the business unit level. Any voucher entered for a business unit assigned to a setID with Pre-Approved as the approval rule is automatically approved for payment. You can override this setting at the origin, control group, or vendor level of the control hierarchy.

Specify

Select to implement voucher approval using PeopleSoft Workflow. If you select this option, you can use the business processes and rule sets supplied with the system. However, you may need to modify the rules, roles, and routings to suit the organization. Set up business processes, rule sets, and routings using the Virtual Approver feature.

Business Process

Enter a business process name to identify the purpose of the workflow; for example, Process Voucher Approval.

Rule Set

Enter a rule set name to identify the steps of the process that a voucher undergoes as it is processed by workflow for approval; for example, Payment Approval Rule Set 1.

Route Denials To

Enter the roles to which denied vouchers are routed through workflow.

Currency

Enter the default voucher currency for the business units assigned to this setID. This is the transaction currency that the system uses by default on vouchers for these business units. You can select alternate currencies when you enter vouchers if you have multicurrency bank accounts. You can also select alternate currencies when you enter vendor information. The vendor currency then appears by default on vouchers that are entered into the system for a particular vendor.

Rate Type

Enter the rate type that the system uses for all vouchers generated for business units using the setID. Rate types are defined on the Market Rate Type page.

Single Payment Vendor ID

Enter the single payment vendor ID, or master vendor, that the business units using the setID use on vouchers for one-time vendors who are not set up in the system. You set up the single payment vendor by setID in the Vendor Information component (VNDR_ID).

This single-payment vendor defaults onto the voucher. For online vouchers, you can override it when you enter the voucher. For vouchers processed by the Voucher Build process, you can override it by specifying a single payment master vendor ID as the vendor in the source data that you stage be processed.

You can override most of these options throughout the control hierarchy at the origin, control group, vendor, and voucher level.

See Also

Approving Vouchers

Processing Landed Cost Transactions

Processing Document Sequencing in PeopleSoft Payables

Entering Single Payment Vendors

Enterprise PeopleTools PeopleBook: Workflow Technology

Defining Voucher Error-Handling Options

Access the Payables Options - Vouchering Options 2 page.

Select one of the following actions to indicate how the system handles errors when checking for duplicate information, validating ChartFields and ChartField combinations, or balancing vouchers:

Reject	Select to have the system reject the voucher; you cannot save the voucher until the error is fixed. Note. The Voucher Build process treats rejected vouchers as recycle vouchers.
Recycle	Select to save your work without enabling the voucher to be posted until the error is corrected. The system displays a message to this effect. Note. You can search for and correct vouchers in recycle status in both the online Voucher component (VCHR_EXPRESS) and the Voucher Maintenance component (VCHR_CORRECTION).
Warning	The system issues a warning but enables you to save, post, and pay the voucher. Note. The Voucher Build process passes vouchers that fail warning edits without providing a warning.
No Edits	Select to bypass ChartField editing.

Duplicate Invoice Checking

Depending on the options that you select here, the system checks each voucher that is entered for a business unit for duplicates. It can check for duplicate invoice numbers, invoice dates, or any combination of the options listed here.

If you select multiple options, the system performs an AND check. For example, if you select invoice number and invoice date, the system finds a duplicate if the invoice number and invoice date are the same. The system does not find a duplicate, however, if the invoice number is the same but not the date. The more variables that you select, the less likely it is that the system will identify duplicate vouchers.

If any of these variables are found to have values that already exist in the voucher tables, you can have the system reject, recycle, or issue a warning when the voucher is saved.

In addition, if you enable duplicate invoice checking for a business unit, the system also performs a preliminary check when you add vouchers. The system checks against the voucher table to see if any existing vouchers already contain the entered invoice number. If it finds any that do, it issues a warning message before displaying the Invoice Information page. This preliminary check ensures that you do not discover a duplicate invoice number after you enter all of the voucher information.

Note. Duplicate invoice checking is not case-sensitive when matching invoice IDs.

ChartField Editing

Select the appropriate ChartField editing options to determine the action that the system takes when a voucher’s ChartFields do not match the ChartFields available to the business unit.

Edit Combinations

Select to use ChartField combination editing.

Note. If you plan to use ChartField combination editing, it is important that you select the Edit Combinations check box in addition to one of the ChartField editing options. Selecting this option enables ChartField combination editing to validate against the ChartFields that you define during setup. If this option is not selected, and you have only selected the reject, recycle or warning option, ChartField combination editing checks only that you entered valid, single ChartField values on the vouchers.

Voucher Balancing

Specify whether the system should reject or recycle vouchers that are not in balance.

See Also

Editing ChartField Combinations

Selecting Payment Options

Access the Payables Options - Payment Options page.

Holiday Options

Click to open the Holiday Processing Options page, where you can establish bank holiday processing for this setID.

The system calculates bank holidays using the business calendar defined on the Business Calendars page. Options for holiday processing are:

Due After Holiday: The system takes any bank holidays into consideration when it calculates the scheduled due date and delays payment until after the bank holiday. Use the Days field to enter the number of days after the holiday that the payment can be made.

Due Before Holiday: The system takes any bank holidays into consideration when it calculates the scheduled due date and makes the payment before the bank holiday. Use the Days field to enter the number of days before the holiday that the payment can be made.

Not Applicable: The PeopleSoft Payables system does not take bank holidays into consideration when it calculates payment due dates.

If you select the Due After Holiday option, you can also select the Allow due date in next month option to enable a payment to be made in the next month. If you don’t select this option and the payment date after a holiday does fall in the next month, the system schedules the payment before the holiday. For example, you would not select this option if you want payments to be made after a holiday but not in the next month when a holiday falls at the end of a month.

Note. Normally, holiday options appear by default from the PeopleSoft Payables business unit level and are carried over to the vendor level and then to the voucher level. However, if a user specifies holiday options during the bank account setup, the bank account options override the default value on the voucher.

Terms

Select the default payment terms ID and payment method for the setID. The preferred payment method options are:

Automated Clearing House	Select to create an electronic file containing the required clearinghouse information. You send all applicable payments in one file to a clearinghouse. The clearinghouse then sends the payments to the vendor’s bank.
Direct Debit	Select to make a payment directly to the vendor’s bank account through electronic transfers for specific goods or services. While contractual, the payments can be for different amounts and can vary over periodic intervals.
Draft - Customer EFT (draft - customer electronic funds transfer)	Select to create EFT files instead of printed drafts. You send the file to your bank when the draft payment is due.
Draft - Customer Initiated	Select to have the system produce a draft before the draft due date. It details the draft identification number, the draft amount, and the draft maturity date, and you send it to the vendor. About 10 days before the draft maturity date, the vendor submits the draft to its bank for collection. The vendor’s bank asks your bank to honor the draft. The vendor submits the draft to your bank for verification. Once your bank verifies the funds, it pays the draft.
Draft - Vendor Initiated	Select to have the vendor initiate payment and have the draft drawn against your bank account with a future due date. Upon the settlement date of the draft, you can assume that the whole amount of the draft has been withdrawn from your account.
Electronic Funds Transfer (EFT)	Select to create an electronic file containing the required bank and payment information. You send all applicable payments in one file to your bank for payment. The bank then sends the payments to your vendor’s bank
Giro - EFT	Select to create an output data file containing the payment information. You send the output data file to the bank electronically or on taped media. This payment method is primarily used in Singapore.
Giro - Manual	Select to use a type of remittance slip that is handled as a manual payment. Accept Giro is a standard format used in the Netherlands that has an invoice with a tear-off portion. The tear-off section displays all of the information necessary to execute a payment. You detach the tear-off portion and send it to your bank for payment to the vendor. Your bank sends payment to the vendor’s bank, and the vendor’s account information is updated.
Letter of Credit	Select to use an agreement issued by a bank at the request of its client and add the bank’s promise of payment to your promise. The letter of credit frequently requires congruity with a number of terms, conditions, or events before the vendor can collect payment. All vouchers that have the same letter of credit ID are grouped in a single payment. Only those payments for which you have selected the L/C Advice option on the Preferences page of the Payment Selection Criteria component (PYCYCL_DEFN) have a printed letter of credit advice.
Manual Check	Select to use the manual payment functionality, which records into the system a check that was typed or handwritten outside of the system.
System Check	Select to use scheduled payments that require a printed paper check and remittance advice.
Wire Transfer	Select to create an electronic payment from your bank account to the vendor’s bank account. Wires can be created by running pay cycle processes to process your wire transfer payments and also by Pay Cycle Manager using PeopleSoft Financial Gateway.

See Setting Up Payment Formats and Payment Forms.

Discount Delay Days

Discount delay days enable you to specify extra days to process checks when you know that most or all of the vendors for these business unit are lenient with due dates. In calculating the due date for discount and net, the system checks the payment terms and payment terms basis date. Based on the terms, it calculates the discount and net date. It adds the discount and net delay days, as specified by the control hierarchy, to yield the updated discount date and net date.

Net	Enter the number of delay days for net payment. A delay of 5 days provides extra time to make the net payment.
Discount	Enter the number of delay days for discount payment. If you enter 2 delay days, you can process payments two days later than the discount due date and still have the PeopleSoft Payables system take the discount.

You define payment terms on the Payment Terms page.

Prepay/Third/Claim Pay Terms

Prepay/Third/Claim Pay Terms	Specify the default prepayment, third-party, or claim (claimback) payment terms ID for the setID.
Automatically Apply Prepayment	Select this check box to enable the system to apply unapplied vouchers to prepayments automatically during the Voucher Posting process.

Prepayments and claimbacks have some restrictions on payment terms. For example, you cannot use discounts or multiple payment terms with prepayments or claimbacks. If you select an invalid value from the list of available options, the system issues an error message indicating that the selected terms cannot be used.

Note. If you do not populate this field, the payment terms for prepaid vouchers for the setID appear as blank in the Voucher component. You can enter or override payment terms for prepaid vouchers at the voucher level.

Payment terms for third-party vouchers cannot include a discount.

Draft Sight

Draft Sight

Enter the sight code. This code references the agreed upon payment terms between you and the vendor for draft payments. It is similar to accounts payable and accounts receivable payment terms, such as NET30, except that it does not use discounts. Use the Sight Codes page to establish sight codes.

Draft Issue Approval Required

Select to specify that the status Approved is required before accounting entries can be generated for drafts using the Payment Posting Application Engine process (AP_PSTPYMNT).

If you select this check box, approval is required before accounting entries can be generated. All payments must have DFT_STATUS = ‘A’ (approved). If you do not select this check box, approval is not required for payment posting, and payments can have draft status of either C (created) or A (approved).

Payment Bank Options

Select a default payment bank, bank account, and handling code for the setID. You define these codes on the Payment Handling Codes page. Some examples are:

Handling Code	Name	Short Name
HD	High Dollar Payment	High $
IN	Internal Distribution	Internal
PO	Route to Purchasing	Purchasing
RE	Regular Payments	Regular

(USF) Pay Sched/Date Calculation

Pay Schedule Type

Select the default schedule payment type for the business units sharing the setID. You can override this setting at the origin, vendor, and voucher levels of the control hierarchy. Options are:

Manual: Indicates that the agency can cut checks to pay the vendor directly. If you select this option, the Pay Cycle Application Engine process (AP_APY2015) does not process payment schedules for this business unit.

Other: Indicates that the payments cover nontransportation expenses.

Transport: Indicates that the payments cover transportation expenses.

Date Calculation Basis

Specify whether the system calculates the payment date using the federal prompt payment criteria. The following values are delivered with the system:

(none)
Agricultural Commodities
Dairy
Meat
Poultry
Prompt Pay Basis

See Also

Defining Business Calendars

Defining Collection Methods

Defining Procurement Options

Scheduling and Creating Voucher Payments for Online Vouchers

Sight Codes

Setting Pay Cycle Preferences

Setting Up Payment Formats and Payment Forms

(USF) Processing PeopleSoft Payables for U.S. Federal Agencies

Selecting Tax Options

Access the Payables Options - Tax Options page.

The sales tax tolerance determines the allowable difference between the sum of the sales tax calculated for each voucher line and the total amount entered in the voucher header. If there is a discrepancy, the system compares the amount of difference against the sales tax tolerance rules that you specify here. You determine how the system handles such discrepancies for a PeopleSoft Payables business unit on the Payables Definition - Tax Options page. On the same page, you can also determine whether to handle any discrepancy in entered and calculated sales tax by accruing the difference as use tax.

Percent

Enter a value to define the tolerance as a percent of the gross amount. Enter a percent value in this field.

Amount

Enter a value to define the tolerance as a fixed amount. Enter an amount in this field.

The system checks against the percentage first, and if it is out of tolerance, it then checks against the amount. If both are exceeded, a warning or error is issued (according to the discrepancy handling that you set up on the Payables Definition - Tax Options page). If the percent is exceeded and the amount is not—as in the case of a low voucher amount—the tolerance is met and the voucher is saved without issuing a warning.

Currency Code and Rate Type

Enter the currency code and rate type for the tolerance amount.

VAT Options

In this group box, you establish the following defaults for all PeopleSoft Payables business units that share the setID:

Physical nature (whether the default is for goods or services).
Where services performed (the country in which services purchased by the business unit are most often performed).

Physical Nature	Select the default physical nature for transactions. Options are Intangible/Services and Physical Goods. For many countries, you must report the sale or purchase of goods separately from services.
Where Service Performed	Enter the default location for where a service is most often performed; that is, the place at which the VAT liability is incurred. Options are Buyer's Location, Ship From Location, Ship To Location, and Supplier's Location.
VAT Default	Click to access the VAT Defaults Setup page. The VAT Defaults Setup page is a common page used to set up VAT defaults for all PeopleSoft applications that process VAT transactions. On this page, you can define PeopleSoft Payables VAT defaults for the business units sharing the setID (as applicable). In PeopleSoft Payables, several of these defaults can be overridden at the voucher origin level, control group level, vendor level, and the voucher itself. Defaults are defined by VAT reporting country and defaulting state. These defaults include: VAT applicability. VAT declaration point Goods declaration point. Services declaration point. VAT use type. VAT tolerance currency, rate, amount, percentage. VAT calculation type. VAT transaction type defaults. VAT code defaults. Other options can only be overridden at certain points in the control hierarchy: The VAT tolerance check indicator parameters can be overridden at the voucher origin level, control group level, and vendor level, but not on the voucher itself. The allow override recovery/rebate parameters cannot be overridden at any lower level in the hierarchy. Note. These settings can also be set by accessing the VAT Defaults component directly and selecting the AP Options driver.
VAT Service Treatment Setup	Click to access the Services VAT Treatment Drivers Setup page. The Services VAT Treatment Drivers Setup page is a common page used to set up VAT services treatment for all PeopleSoft applications that process VAT transactions. If you are required to implement special handling for services, you can specify PeopleSoft Payables VAT service treatment defaults on this page (as applicable). Establish the following PeopleSoft Payables VAT defaults for the business units shared by the setID: VAT service type (freight or other). VAT place of supply driver. Services VAT defaults are defined by the seller's location country and state. Note. These settings can also be set by accessing the VAT Service Treatment Setup component directly and selecting the AP Options driver.

ERS Option	ERS is a process by which the Voucher Build process builds vouchers from procurement receipt records. If you plan to use the Voucher Build process to create ERS vouchers for business units associated with this general ledger business unit, then you need to set the ERS option to Allow ERS.
ERS Invoice Date Option	Select the method that the system uses to create the ERS voucher invoice date. Options are: Frt Terms (freight terms): The freight terms determine whether to use the receipt or the shipment date as the invoice date. Recv Date (receiver date): The system uses the receiver data.
SBI Numbering Options	Select to define how the system groups SBIs. Options are: Group Vouchers (Auto-Num) (group [auto-number]): The system groups ERS vouchers in a single SBI voucher. Individual Vchr - Invoice Number (individual voucher - invoice number): The SBI contains information from only a single voucher. The system generates the SBI number by combining the invoice number with the ERS sequence number. Individual Voucher (Auto-Num) (individual voucher [auto-number]): The SBI contains information from only a single voucher. The system assigns the next available SBI number based on the invoicing location.
ERS Tax Type	Select to indicate the type of tax to which the vouchers are subject. Options are No Taxes, Sales Tax, Use Tax, and VAT.

Tolerance Percent Over	Specify the percent acceptable for the input merchandise amount to exceed the merchandise amount copied from the source document.
Tolerance Percent Under	Specify the percent acceptable for the input merchandise amount to be less than the merchandise amount copied from the source document.
Tolerance Amount Over	Specify the amount acceptable for the input merchandise amount to exceed the merchandise amount copied from the source document.
Tolerance Amount Under	Specify the amount acceptable for the input merchandise amount to be less than the merchandise amount copied from the source document.
Tolerance Currency Code	Specify the currency code for the tolerance amounts. Foreign currency transactions will be converted to the specified currency for tolerance comparison.
Rate Type	Specify the currency rate type to use for converting foreign currency transactions to the specified tolerance currency code.
Tolerance Misc Charge Code (tolerance miscellaneous charge code)	Specify the miscellaneous charge code to use for applying differences that are within tolerance. The miscellaneous charge code defines whether the tolerance amount is a nonprorated charge or prorated to the expense distribution lines.

Pre-Approved	Select to implement voucher preapproval at the business unit level. Any voucher entered for a business unit assigned to a setID with Pre-Approved as the approval rule is automatically approved for payment. You can override this setting at the origin, control group, or vendor level of the control hierarchy.
Specify	Select to implement voucher approval using PeopleSoft Workflow. If you select this option, you can use the business processes and rule sets supplied with the system. However, you may need to modify the rules, roles, and routings to suit the organization. Set up business processes, rule sets, and routings using the Virtual Approver feature.
Business Process	Enter a business process name to identify the purpose of the workflow; for example, Process Voucher Approval.
Rule Set	Enter a rule set name to identify the steps of the process that a voucher undergoes as it is processed by workflow for approval; for example, Payment Approval Rule Set 1.
Route Denials To	Enter the roles to which denied vouchers are routed through workflow.
Currency	Enter the default voucher currency for the business units assigned to this setID. This is the transaction currency that the system uses by default on vouchers for these business units. You can select alternate currencies when you enter vouchers if you have multicurrency bank accounts. You can also select alternate currencies when you enter vendor information. The vendor currency then appears by default on vouchers that are entered into the system for a particular vendor.
Rate Type	Enter the rate type that the system uses for all vouchers generated for business units using the setID. Rate types are defined on the Market Rate Type page.
Single Payment Vendor ID	Enter the single payment vendor ID, or master vendor, that the business units using the setID use on vouchers for one-time vendors who are not set up in the system. You set up the single payment vendor by setID in the Vendor Information component (VNDR_ID). This single-payment vendor defaults onto the voucher. For online vouchers, you can override it when you enter the voucher. For vouchers processed by the Voucher Build process, you can override it by specifying a single payment master vendor ID as the vendor in the source data that you stage be processed.