Defining PeopleSoft Receivables Processing Options

This chapter provides an overview of PeopleSoft Receivables processing options, lists prerequisites, and discusses how to:

• Set up system functions.

• Set up entry types and reasons.

• Set up distribution codes.

• Set up item entry types.

• Set up automatic entry types.

• Set up item and automatic entry types for revenue estimate processing.

• Set up group types and group origins.

• Set up ChartField combination editing.

Note. The tasks described in this chapter are required. You must complete them to implement receivables.

Understanding PeopleSoft Receivables Processing Options

Before you enter or process items and payments, you must set up the tables that form the foundation of your PeopleSoft Receivables system. Some of these tables apply to both receivables and payments; some apply to only one.

PeopleSoft Receivables creates and maintains the System Functions table (PS_ENTRY_USE_TBL), and you cannot modify it. The Entry Type table (PS_ENTRY_TYPE), Automatic Entry Type table (PS_AUTO_ENTRY_TBL), and Item Entry Type table (PS_ITEM_ENTRY_TBL) define subsets of the system functions and determine the structure for reporting, tracking, and general ledger processing.

System functions represent all the processes and actions that are possible for both receivables and payments. Entry types are set up for each sort of transaction that you anticipate. You associate system functions with entry types through subsets of automatic entry types and item entry types. Item entry types make up a subset of system functions that involve the entry of invoices, credit memos, and debit memos. Automatic entry types take care of all the rest—entry types for all of the worksheets and batch processes that generate pending items.

Note. You must set up entry types as either item entry types or automatic entry types before you can use them.

Prerequisites

Before you can set up receivables processing options, you must:

• Set up TableSets.

  See "Planning Records, Control Tables, and TableSets" in the Enterprise PeopleTools PeopleBook: PeopleSoft Application Designer.

• Define ChartFields.

See Also

Defining and Using ChartFields

Setting Up System Functions

To define system functions, use the System Functions component (ENTRY_USE_TABLE).

This section provides an overview of system functions and discusses how to:

• Select system function attributes.

• Review rules for value-added taxes (VAT) processing.

• Review system function accounting entries.

Understanding System Functions

System functions are the activities that your PeopleSoft Receivables system supports. The System Functions table lists the system functions and describes how the system generates accounting entries for the general ledger. Each system function has an accounting entry definition that indicates how the system creates accounting entries. You cannot change these accounting entries—they are system-defined entries. Specify the user-defined entries either in an item entry or automatic entry template or during processing on the Accounting Entries pages.

Each system function is prefixed with a two-letter identifier describing the part of the system that uses the function:

This table lists the system function parameters that may be helpful when you map entry types and automatic entry types to system functions:

Note. NA means not applicable.

Pages Used to Set Up System Functions

Viewing System Function Attributes

Access the System Functions 1 page (Set Up Financials/Supply Chain, Product Related, Receivables, Options, System Functions, System Functions 1).

Activity Type	Select an activity type that indicates how system functions are classified. You must associate each system function with an activity type. You can assign an activity type to more than one system function. This structure determines how the system presents data on the Unit Activity page and the Unit Activity report.
Activity Type/Origin/Bank Code	When you view the inquiry page by activity type and origin, the system uses the Activity Type/Origin/Bank Code field to determine whether to break the category down by origin or bank code. This determines how the system displays information on the Unit Activity page. For example, suppose that you select Billing for the activity type and Breakdown by Origin for the Activity Type/Origin/Bank Code field. On the Unit Activity page, under Activity Type/Origin/Bank Code, you will see that billing activity came from two different origins, OBILL and XBILL. The individual totals for each origin appear on the page. If you choose not to break down by origin, select Do Not Break Down By Origin for system functions IT-01 and IT-02. The Unit Activity page lists billing without an origin—meaning that the system has bundled together all the billing transactions, rather than breaking them into totals under their associated origin IDs. As another example, if you select Breakdown by Origin for the WS-01 system function, you will see a separate row for each bank account for the payment activity. If you select Do Not Break Down By Origin, all the payment activities are combined in one row.
Entry Function	Displays a system-defined value. It can be either Auto Entry (automatic entry) or Item Entry. Item entry types identify pending items created during online item entry or by an external interface. The system uses item entry types to handle processing when you directly build a pending item—during online entry or when an interface process constructs groups of pending items. When you enter or build pending items that make up a group, you use entry types that you have specifically enabled for use as item entry types. Item entry types take two forms: Positive amounts (IT-01, FC-01). Negative amounts (IT-02). Automatic entry types work in the background to translate instructions for overdue charging, payments, maintenance, transfers, direct debits, and drafts into pending items. When you initiate an online or background process for these types of groups (such as selecting an item on one of the worksheets, or running the Payment Predictor process or the Automatic Maintenance process), the system creates the necessary pending item using the information that you defined on the automatic entry type for that action. For example, every time you select an item for payment on the payment worksheet, the system uses the entry type, entry reason, and accounting entry information from the WS-01 (Pay An Item) automatic entry type to create the pending item. Automatic entry types fall into the following categories: Overdue charges (prefaced with FC). Maintenance worksheet (prefaced with MT). Payment worksheet (prefaced with WS). Transfer worksheet (prefaced with TR). Direct debit management (prefaced with DD). Draft management (prefaced with DM).
Natural Sign	Displays a positive (+) or negative (–) sign, which. the system applies to pending items to determine the effect that a system function has on the customer balance. The only unsigned system functions are transfers, offsets, direct debits, and drafts (they can be said to offset an item), because their sign varies with the sign of the item being offset, transferred, or included in draft and direct debit processing. Debit memos must be positive, and credit memos must be negative.
Effect on VAT Processing (effect on Value Added Tax processing)	Indicates how VAT balances are adjusted for the system function.
VAT Distribution Type (Value Added Tax distribution type)	Click to view the account types that you selected for each declaration point for the system function.
Automatically Creates New Item	Displays the system setting. If this option is selected, the system creates a new item for activities that occur in the background. These system functions are all automatic entry types: new debits and credits, prepayments, on-account payments, deductions, and adjustments for overpayments and underpayments.
Automatically Creates 2nd Item	Displays the system-setting. If selected, it enables write-off of remaining debits and credits on the maintenance worksheet and by the Automatic Maintenance process, or write-off of overpayments and underpayments on the payment worksheet and draft worksheet, and by the Payment Predictor process.
Allow Entry Reason Prompting	Displays the system setting. If selected, it indicates that entry types tied to the system function can require an entry reason. Entry types define activity, and entry reasons enable you to further qualify the activity. So if a system function enables you to require an entry reason, you can generate reports, run aging, and view history at a greater level of detail.
Supports Auto Numbering (supports automatic numbering)	Displays the system setting. If selected, it enables you to enter a prefix and starting number for pending items. For example, these system functions could be assigned: PR: Prepayments. AO: Overpayment adjustments. AU: Underpayment adjustments. DE: Deductions. OA: On-account payments.

Reviewing Rules for VAT Processing

Access the VAT Distribution Type page. (Click the VAT Distribution Type button on the System Functions 1 page.)

The values determine how to update the VAT tables for the system function. If more than one row is in the grid, the processing varies depending on the declaration point.

Reviewing System Function Accounting Entries

Access the System Functions 2 page. (Set Up Financials/Supply Chain, Product Related, Receivables, Options, System Functions, System Functions 2.)

System-Defined Entries

The system-defined entries fall into one of two categories:

• Two lines are defined: one for the accounts receivable entry and one for the cash entry.

  In this case, the system generates a balanced accounting entry by itself. Cash system functions related to the payment worksheet, drafts, and direct debits fall into this category. Also, system functions related to the maintenance and transfer worksheet and the Automatic Maintenance process define two lines: one for the accounts receivable account and one for a control account.

• A single line is defined: either a debit or credit for the accounts receivable entry.

  Write-offs, discounts, and item entry system functions require two-sided accounting entries to be posted; therefore, you must create user-defined lines for the offsetting entries on your templates or during processing.

Revenue Estimate Attributes

If you selected the Receivables check box in the Enabled Commitment Control group box on the Installation Options – Products page, the Revenue Estimate Attributes group box appears. The revenue estimate attributes define whether source transactions for the control budget should be generated and if so, how.

Setting Up Entry Types and Reasons

To define entry types and reasons, use the Entry Type component (ENTRY_TYPE_TABLE1).

This section provides overviews of entry types and entry reasons and discusses how to:

• Define entry types.

• Define entry reasons.

See Also

Entry Types and Reasons

Understanding Entry Types

Thinking through and defining a comprehensive set of entry types is second in importance only to defining business units and tablesets. An entry type categorizes your pending items and the system uses them to create or update items. The Receivable Update Application Engine process (ARUPDATE) uses pending items along with associated entry types and reasons to create or update items and to maintain customer balances.

During processing, you sometimes enter pending items directly—for example, when you enter an invoice, a debit memo, or a credit memo. Sometimes the system creates pending items for you based on commands that you provide. For example, it creates deductions and on-account payments in the background as you use the payment worksheet or the Payment Predictor process.

To use all of the PeopleSoft Receivables processing and payment features, at a minimum you must accommodate the following entry types. You can assign a single entry type to several functions and you can name them whatever you want.

• Adjust underpayment.

• Adjustment overpayment.

• Credit memo.

• Debit memo.

• Deduction.

• Earned discount.

• Overdue charge.

• Invoice.

• Maintenance credit.

• Maintenance debit.

• Offset customer's debits and credits.

• On-account.

• Payment.

• Prepayment.

• Refund credit.

• Refund remaining credit.

• Unapplied cash.

• Unearned discount.

• Write-off.

• Write off a credit.

• Write off overpayment.

• Write off remaining credit.

• Write off remaining debit.

• Write off underpayment.

This table lists the entry types that you must create if you process direct debits or drafts:

Note. You must create either an item entry type or automatic entry type for each entry type before you can use them.

If you use the vendor rebate claim functionality in PeopleSoft Purchasing or the claim back functionality in PeopleSoft Order Management, you might want to create unique entry types for the interface items to identify them on the payment worksheet or on inquiries and reports.

Entry Types and Reasons for Partial Payments

PeopleSoft Receivables delivers entry types and reasons in the sample database. If you use the Payment Predictor process to apply your payments, the #DTL_TLR algorithm group uses these entry types and reasons to determine how to create accounting entries for underpayment, overpayment, and discount conditions. You must use these entry types and reasons when you create your automatic entry types if you want to process partial payments and discounts correctly.

Important! If you cannot use these entry types and reasons due to your business practices, you need to change the SQL for the #DTL_TLR algorithm group. You should, however, avoid making these changes.

PeopleSoft delivers these entry types:

PeopleSoft delivers these entry reasons:

When you set up automatic entry types for these system functions, you must use these entry type and reason combinations:

The #DTL_TLR algorithm group uses a default system function for overpayments, underpayments, and unearned discounts. However, you can override the default system function for each business unit on the Predictor Detail Options page by assigning a different entry type and reason. The entry type and reason that you assign must be consistent with the intended usage of the system function. For example, adjust overpayment should not be used with an underpayment entry type and reason.

See Also

Using #DETAIL and #DTL_TLR for Partial Payments and Deductions

Understanding Entry Reasons

Use different entry reasons to set up different accounting entry templates for different conditions.

Some of the entry types that create entries in the background accommodate the use of an entry reason; others do not. Use entry reasons for:

• Invoice or debit memos.

• Credit memos.

• Overdue charges.

• Prepayments.

• On-account payments.

• Deductions.

• Write-offs (debits and credits, remaining debits and credits, underpayments, and overpayments).

• Adjustments for underpayments and overpayments.

• Remaining credit refunds.

• Credit refunds.

• Creating new debits.

• Creating new credits.

• Offsetting items.

• Draft bank fees.

Note. You specify whether entry reasons are required on the Item Entry Type - Selection page and the Automatic Entry Type - Selection page.

You can also use entry reasons for reporting or inquiry purposes to further identify items.

Entry Reasons for Vendor Rebate and Claimback Processing

You must set up entry reasons for any entry types that you use to pay or offset items for vendor rebate and claimback processing.

For the entry types that you associate with the Pay an Item (WS-01 and DM-01), and Offset an Item (MT-01) system functions, you must create a minimum of two entry reasons:

• An entry reason that is used to pay or offset the base amount of the item.

• An entry reason that is used to pay or offset the VAT amount for an item.

You can create as many entry reasons as you want, but you must create at least one for the base amount and one for the VAT amount for each entry type that you use to pay or offset items for vendor rebate and claimback processing. When you create automatic entry types for the WS-01, DM-01, and MT–01 system functions, you must enter all of these entry reasons on the Automatic Entry Type - Selection page. When you apply a payment to a vendor rebate claim or claimback item on the payment worksheet, you create two entries in the payment worksheet for each item if the business unit for the item requires VAT. One entry is for the base amount of the item and one entry is for the VAT amount. You assign the appropriate entry reason to each line. When you apply a draft to a claimback or vendor rebate claim on the draft worksheet or offset a claimback or vendor rebate claim on the maintenance worksheet, you follow the same procedure.

Note. If you have no business units that require VAT, you do not need to create an entry reason to record the VAT amount for an item and you do not need to create two entries on the worksheets.

Note. If the receivables business unit does not require VAT, you create only one entry for the base amount. You must enter the entry reasons to use for the business unit on the AR Integration page. The system enables you to select only the entry reasons associated with the item's business unit on the worksheets.

When you run the AR Rebate Notification Application Engine process (AR_REBATE) to update the claim management workbench, the process sends the base amount and the VAT amount for each item paid or offset. When you run the Claim Settlement process for AP Application Engine process (PO_CLMSETTLE_AP) on the claim management workbench, the process uses this information to generates the base and VAT distribution lines when it creates adjustment vouchers or claimback vouchers.

See Running the AR Rebate Notification Process.

See Working with Claimbacks.

See Understanding Vendor Rebates.

See Defining Account Receivables Integration Options for Vendor Rebates.

Pages Used to Set Up Entry Types and Reasons

Defining Entry Types

Access the Entry Type page. (Set Up Financials/Supply Chain, Product Related, Receivables, Options, Entry Type, Entry Type.)

Don't Post Duplicate Entries	This check box handles: Timing: An adjustment to an invoice is posted before the invoice. Duplication: Two entries with the same entry type attempt to update an item. Select when you post a subsequent event—such as a debit memo or a credit memo—that has the same business unit, customer ID, item ID, and item line as the invoice before you post the invoice. This occurs if: You are converting closed item detail from your previous receivables system. The feeder billing systems cannot guarantee sequencing. Your business often generates related transactions such as an invoice and a credit memo together. Normally, the system creates an Item record for each new item with its entry type. Subsequent entries create item activity lines but do not alter the entry type on the Item table (PS_ITEM). If the original item is a debit or credit memo instead of an invoice, then the debit or credit memo entry type will be on the Item record. What you really want is the invoice entry type. You need to have the appropriate entry type on the Item record, because entry types determine aging redirection, correspondence inclusion, and weighted average days late calculations. If a prepayment or credit memo posts first and the invoice posts second, you need to update the Item record with the entry type and date of the invoice. Selecting the Don't Post Duplicate Entries check box for an entry type means that: The entry type takes precedence over whatever entry type exists on the Item record (unless the entry type on the Item record also has the option selected). Selecting this check box enables you to use the invoice entry type as the controlling entry type, even though the invoice was not posted first. Select only for those entry types that represent an invoice. After you post a pending item, other pending items with this selected option are not posted against this item, because any given item can have only one dominant pending item. The system catches duplicate invoices for a particular business unit or customer combination. The Receivable Update process does not post a second pending item that also has the option selected against the same business unit, customer ID, item ID, and item line combination. Note. Be sure that you select this check box only for invoice type or dominant transaction types and that only dominant entry types can be posted against an item.
Exclude From Days Late Calcs (exclude from days late calculations)	Select to exclude items with this entry type from history calculations for average days late and weighted average days late.
Aging Category	Enter an aging category in which to place items, rather than aging them normally. Note. If you define a rule for aging deductions, disputes, or collections in an aging ID other than aging normally, that rule takes precedence over a category that you select here.
Summary Category	Select a summary category to place items in a different summary category from the one associated with the aging category.
Include in Dunning, Include in Overdue Charging, and Include in Statements	Select to include items with the entry type in dunning letters, on overdue charge invoices, and on statements. In the delivered system, all entry types are included; deselect the check boxes to exclude those that you do not want to appear in correspondence. This applies only to the entry type on the item itself, not to item activities.
Include in Drafts, Include in Direct Debits, and Profile ID	Select to include items of this entry type in drafts and direct debits. If you select Include Direct Debits, enter a profile ID to use a specific direct debit profile for all items using this entry type. Otherwise, leave Profile ID blank to use the profile ID assigned to the customer. If you enter a profile ID, you must select the Use Entry Type field on the Direct Debit Profile page.

See Also

Setting Up Direct Debit Profiles

Understanding Aging Setup

Defining Entry Reasons

Access the Entry Reason page. (Set Up Financials/Supply Chain, Product Related, Receivables, Options, Entry Type, Entry Reason.)

For each entry type that you define, you can set up as many valid entry reasons as needed.

Setting Up Distribution Codes

Distribution codes simplify the process of generating accounting entries by defining a valid combination of ChartField values.

To define distribution codes, use the Distribution Code component (DST_CODE_TABLE).

This section discusses how to:

1. Define distribution codes.

2. Link draft distribution codes to AR distribution codes.

Pages Used to Set Up Distribution Codes

Defining Distribution Codes

Access the Distribution Code page. (Set Up Financials/Supply Chain, Common Definitions, Distribution Accounting, Distribution Code, Distribution Code.)

Distribution Type

Select a value that indicates how the system will use the account. Values are: AR (accounts receivable): The system uses this value for pending items. You must assign default distribution codes for pending item groups. The system obtains the default distribution codes using the following hierarchy: From the entry reason on the Item Entry Type - Selection page for billing groups or the entry reason on the Automatic Entry Type - Selection page for payment, draft, maintenance, and overdue charges groups. From the customer on the General Information - Bill To Options page. From the business unit on the Receivables Definition - Accounting Options 1 page. The Revaluation Application Engine process (AR_REVAL) also uses the AR distribution type to create accounting entries. Create a separate distribution code if you use translation ledgers. Disc Draft (discounted drafts): The receivable account for discounted drafts. Select or enter this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page. Dishonor: The receivable account for dishonored drafts. Specify this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page. Doubtful: The receivable account for doubtful receivables. Specify this code on the Receivables Definition - Accounting Options 1 page. Draft Liab (draft liability): The draft liability account for drafts discounted with recourse. Specify this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page. Draft: The receivable account for items that have been applied to any draft. Specify this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page. Maint Ctrl (maintenance control): Used to create the offsetting entry for transactions in maintenance groups. Specify this code on the Receivables Definition - Accounting Options 2 page. Real G/L (realized gain and loss): Used behind the scenes by the maintenance and payment worksheets and draft processing to create adjusting entries for multicurrency processing. You can define as many distribution codes as you choose, but each business unit can have only one realized gain and one realized loss code. Translation for a realized gain or loss for translation ledgers also uses this value. If you want to track realized gains and losses separately you must create separate distribution codes for realized gains and realized losses. Specify these codes on the Receivables Definition - Accounting Options 1 page and the Receivables Definition - Options 2 page. Refund Ctrl (refund control): This value is the ChartField combination used to record the liability for a refund. Specify this code on the Receivables Definition - Accounting Options 2 page. If you use the commitment control option, the system does not update either the Recognized or Collected budget if you use an expense account. Instead, the system updates an Expense budget. Remit Drft (remitted drafts): The receivable account for nondiscounted drafts that have been remitted to the bank. Specify this code on the Receivables Definition - Accounting Options 2 page and override it by draft type and business unit on the Draft Type Distribution Codes page. Round: The system uses this value when you apply a payment to an item on the payment worksheet for which the currency differs from the currency of the item or when the payment and item are in the same currency, but differ from the base currency of the business unit. The Receivable Update process posts any remaining amount from the currency conversion to this rounding account. Specify this code on the Receivables Definition - Accounting Options 1 page. Trans Ctrl (transfer control): The system uses this value to create the offsetting entry for transactions in transfer groups. Specify this code on the Receivables Definition - Accounting Options 2 page. Unreal G/L (unrealized gain and loss): Used only during revaluation. This code enables you to summarize gains and losses into one line that updates the unrealized gain and loss account. If you want to track unrealized gains and losses separately, you need to create separate distribution codes for unrealized gains and unrealized losses. Specify these codes on the Receivables Definition - Accounting Options 2 page.

Unbilled AR Distribution Code

Select if the distribution type is AR and you have unbilled accounts receivables. This field is available only when the distribution type is AR.

Note. PeopleSoft Receivables does not directly use these distribution types: Corp Vchr, Cust Dep, Dfr Disc, Dfr Rev, Dfr Surch, Discount, DM New Opr, DM Orig CR, DM Orig De, DM Orig Op, Dst no GL, GST, Match Ctrl, IU Pay, IU Rec, Reim, Coll, Revenue, Reverse, Reverse CR, Reverse DR, Sales/Use, Send Back, Surcharge, and Unbill AR, Unbill Dsc, and UnflCOwAdv. PeopleSoft Receivables also does not use these distribution types: Cash, Cash Ctrl, Disc Ctrl, and Draft Ctrl. PeopleSoft Receivables uses the ChartFields that you assign to the bank account on the External Accounts page for cash and cash control accounting entries.

ChartField Values

Enter the combination of ChartField values that the general ledger uses to process activity with the distribution code unless your inheritance setup overrides the distribution code.

See Also

Defining Business Unit Defaults for Individual Business Units

Defining External Account Information

Linking Draft Distribution Codes to AR Distribution Codes

Access the Draft Details page. (Click the Draft Distribution Codes button on the Distribution Code page.)

If you link draft distribution codes to an accounts receivable distribution code, the system uses that code to create accounting entries. Otherwise, it uses the codes that you assign to a draft type and business unit combination.

Setting Up Item Entry Types

The system uses item entry types for items that you enter online or receive through an interface. By mapping entry types to system functions, you create item entry types.

To define item entry types, use the Item Entry Type component (ITEM_ENTRY_TABLE2).

This section discusses how to:

1. Define item entry types.

2. Define accounting templates for item entry types.

Pages Used to Set Up Item Entry Types

Defining Item Entry Types

Access the Item Entry Type - Selection page. (Set Up Financials/Supply Chain, Product Related, Receivables, Payments, Item Entry Type, Selection.)

System Function ID	Enter the system function to associate with the entry type. You can have more than one item entry type per system function. For example, system function IT-02 defines the process for entering a credit memo. You can map multiple entry types—CR1 and CR2—to IT-02, representing different kinds of credit memos.
Distribute to GL	Select to distribute accounting entries for this item type to the general ledger. Your accounting entry design determines whether you use this feature.
Require Reason	Select to require users to enter a value in the Entry Reason field every time they use this item entry type during pending item entry and on the maintenance and payment worksheets. If you deselect this check box, the system automatically adds a row to the Entry Reason Detail grid that has no entry reason. If Require Reason is selected, every row in the grid must have an entry reason.
AR Distribution Code	Select a distribution code if the accounts receivable ChartField combination is different for each combination of entry type and entry reason. The distribution code governs the default ChartFields used in generating system-defined accounting entries for items bearing the item entry type and the specified type and reason combination. If the accounts receivable account is the same for all combinations, set a default accounts receivable distribution code on the Account Options 1 page. If the accounts receivable account varies by item, you can enter it on the Pending Item 1 page for individual pending items.
Rev Estimate (revenue estimate)	If you selected the Receivables check box in the Enable Commitment Control group box on the Installation Options – Products page, and the system function that you selected for the item entry type indicates that the revenue bucket is user-defined, you must specify whether to update the collected or recognized bucket or both buckets. If the bucket that you update varies under certain circumstances, create two entry reasons and select a different bucket for each entry reason. If the system function defines the bucket, the field is unavailable.

Defining Accounting Templates for Item Entry Type Accounting Templates

Access the Item Entry Type - Accounting Template page. (Set Up Financials/Supply Chain, Product Related, Receivables, Payments, Item Entry Type, Accounting Template.)

Entries Must Balance

If this check box is selected, you must define 100 percent of the accounting entries and enter an account for every line in the User Defined Entries grid. You can override the default account after the lines are created during processing. Deselect this check box to leave the user-defined entries blank and complete them during processing. If you have defined ChartField inheritance options on the Receivables Revaluation (AR Reval) and Billing (AR/BI) groups as Always Inherit or Inherit within BU, you cannot insert multiple user-defined lines for the following system functions: MT-02: Write off a credit. MT-03: Write off a debit. WS-02: Take earned discount. WS-03: Take unearned discount. WS-09: Write off an item.

System Controlled Entries

The information for system-defined accounting entries comes from the system function table and the distribution codes. It also stipulates that the system distributes the entire amount to AR either as a credit (–) or a debit (+).

User-Defined Entries

User-defined entries are specific to your particular organization and are not always required. You provide defaults for the template, but you can change any information on the user-defined entries after you generate accounting entries. Enter the ChartField values for the revenue line, as needed. You cannot specify a statistical account for any item entry accounting templates.

Note. If you selected the Receivables check box in the Enable Commitment Control group box on the Installation Options - Products page, you must use ChartFields that are in the control budget ledger as well.

If you want to vary the ChartField combinations entered at a level lower than the entry type and entry reason, you have two options:

• Enter a number of user-defined lines without a percentage (unbalanced) with all of the possible accounts that you might use.

  Once these lines are created, delete the ones that you do not want and add monetary amounts to the remaining lines.

• Do not enter user-defined lines on the template, and deselect Entries Must Balance.

  Users can enter these lines on the appropriate Accounting Entries page after the system-defined lines are created.

Setting Up Automatic Entry Types

To define automatic entry types, use the Automatic Entry Type component (AUTO_ENTRY_TABLE2).

This section provides an overview of automatic entry types and discusses how to:

1. Define automatic entry types.

2. Define accounting templates for automatic entry types.

Understanding Automatic Entry Types

Automatic entry types define how the system assigns entry types to pending items created in the background. When you use online pages to tell the system what to do—for example, create a deduction or place a payment on account—the system uses automatic entry types. Batch processes that generate pending items also use entry types.

Automatic entry types are related to the subset of system functions that includes transfers, drafts, direct debits, overdue charges, and worksheet functions. To enable the use of an underlying system function, you must:

• Map the system function to an entry type.

  You can assign only one entry type to a system function, but you can associate the same entry type with multiple system functions. For example, you can associate the Dishonor Draft entry type with different system functions based on your organization's needs.

• Define how the system creates accounting entries.

Pages Used to Set Up Automatic Entry Types

Defining Automatic Entry Types

Access the Automatic Entry Type - Selection page. (Set Up Financials/Supply Chain, Product Related, Receivables, Payments, Automatic Entry Type, Selection.)

Entry Type	Select the entry type that is appropriate for pending items that the system creates for the system function. Each automatic entry type assigns only one entry type to a pending item.
Distribute to GL	Select to distribute accounting entries for this item type to general ledger. Your accounting entry design determines whether you use this feature.
Require Reason	Select this check box if you want the system to require an entry reason when it uses this automatic entry type. For example, if a cash applier creates a write-off on the payment worksheet, this setting determines whether the cash applier must supply an entry reason.
Predictor Reason	If you selected Require Reason, enter the entry reason that the Payment Predictor process assigns to all items that it creates using the system function for the automatic entry type. When a payment predictor method specifies conditions under which it creates an item, the method itself contains the system function it uses for the item, but does not specify an entry reason. It uses the entry reason that you supply. This applies only to these system functions: WS-04: Prepay an item. WS-05: Place an amount on account. WS-06: Adjust remaining overpayment. WS-07: Adjust remaining underpayment. WS-08: Create a deduction. WS-10: Write off an overpayment. WS-11: Write off an underpayment.
Automatic Maintenance Reason	If you selected Require Reason, enter the entry reason that the Automatic Maintenance process assigns to all items that it creates using the system function. This applies only to these system functions: MT-02: Write off a credit. MT-03: Write off a debit. MT-04: Create new debit. MT-05: Create new credit. MT-06: Write off remaining credit. MT-07: Write off remaining debit.

Entry Reasons

The Entry Reasons grid contains the valid entry type and entry reason combinations.

For example, suppose the user selects the following entries on a maintenance worksheet:

The Revenue Estimate process then generates these source transactions:

You also need to create two entry reasons for MT-09 (refund of a credit):

• One for a credit memo refund (from an IT-02 item activity) that reverses the entry in the recognized bucket.

• One for cash or a non-IT-02 item activity that does not update any revenue bucket.

Defining Automatic Entry Type Accounting Templates

Access the Automatic Entry Type - Accounting Template page. (Set Up Financials/Supply Chain, Product Related, Receivables, Payments, Automatic Entry Type, Accounting Template.)

System-Defined Entries

The information for system-defined accounting entries comes from the system function table and the distribution codes. It also stipulates that the system distribute the entire amount to AR either as a credit (–) or a debit (+).

User-Defined Entries

User-defined entries are specific to your particular organization and are not always required. You provide defaults for the template, but you can change any information on the user-defined entries after you generate accounting entries. Enter the ChartField values for the revenue line, as needed. You cannot specify a statistical account for any automatic entry accounting template. For some automatic entry types, you do not define the user-defined entries. In this case, the user-defined grid is not available.

If you want to vary the ChartField combination at a level lower than the entry type and reason, you have two options:

• Enter a number of user-defined lines without a percentage (unbalanced) with all of the accounts that you might use.

  Then, when the lines are created, delete the ones that you do not want, and add dollar amounts to the remaining lines.

• Do not enter user-defined lines on the template, and deselect Entries Must Balance.

  Operators can enter these lines on the appropriate Accounting Entries page after the system-defined lines are created.

Note. If you selected the Receivables check box in the Enable Commitment Control group box on the Installation Options – Products page, you must use ChartFields that are in the control budget ledger as well.

Setting Up Item and Automatic Entry Types for Revenue Estimate Processing

Revenue Estimate processing creates the source transactions for the revenue entries to control budgets. A budget in PeopleSoft Receivables is a fixed income allocation (that is, a revenue estimate) with two monetary buckets:

• Recognized revenue is revenue that has been billed to the customer but for which payment has not yet been received.

• Collected revenue is cash that has been received as payment.

See Using Commitment Control Processing in PeopleSoft Receivables.

The entry type (or the combination of the entry type and reason) defines how and when to generate source transactions based on preset values in the system function. The system function specifies whether the bucket that the process updates is user-defined on the item entry type or an automatic entry type. If it is not user-defined, the system function specifies whether to:

• Update the recognized revenue bucket.

• Update the collected revenue bucket.

• Update both revenue buckets.

Note. When the user enters the item information, the user must enter the correct entry type and reason to update the correct buckets.

System Function Attributes

This table lists the revenue estimate definitions for each system function. Oracle sets these defaults for PeopleSoft Receivables and you cannot modify them. If the bucket to update is user-defined, the information in the table suggests how to set up the item entry type or automatic entry type associated with the system function.

Setting Up Group Types and Group Origins

To define group types and group origin IDs, use the Group Type (GROUP_TYPE_TABLE) and Origin (ORIGIN_TABLE1) components.

This section provides overview of group types and group origins and discusses how to:

• Define group types.

• Define group origin IDs.

Understanding Group Types

A group is a postable entity, a collection of pending items that are ready to post. Groups that you enter, such as billing groups, as well as groups that are created during processing—such as transfers, offsets, overdue charges and payments—must be assigned a group type. You must establish codes to categorize the types of groups that you process. Reports that list group activity use group types to sort and select information.

You must establish a minimum of eight group types: B, D, F, M, P, T, U, and X. You can establish as many additional group types as you need for query and reporting purposes. If you do not establish the group types, the corresponding function is not authorized.

If you use the vendor rebate functionality in PeopleSoft Purchasing, you must establish a group type using R as the code. If you use the claimback functionality in PeopleSoft Order Management, you must establish a group type using C as the code. The AR Rebate Notification process looks at the group type for the original item associated with a Pay an Item (WS-01 or DM-01) or Offset (MT-01) activity to determine whether to send notification that the original item was paid or offset. Then the process sends notification of the payment or offset to PeopleSoft Purchasing or PeopleSoft Order Management. You assign these group types to a business unit on the AR Integration page. PeopleSoft Purchasing and PeopleSoft Order Management assign the appropriate group type to the claims (items) based on the business unit for the claim.

This table lists the group types that you must set up:

See Also

Understanding Vendor Rebates

Working with Claimbacks

Understanding Group Origins

You might have three origin IDs: one for external billing, one for online billing and adjustments, and the required PS_AR origin ID for system-generated groups. If you use the vendor rebate claim functionality in PeopleSoft Purchasing and the claimback functionality in PeopleSoft Order Management, you should set up two additional origin IDs to identify these items. Assign the vendor rebate and claimback origin IDs to a business unit on the AR Integration page. PeopleSoft Purchasing and PeopleSoft Order Management assign the appropriate origin ID to the claims (items) based on the business unit for the claim.

The system uses the origin IDs to classify groups of pending items based on how they are created or brought into the system. You can view the origin IDs for items on inquiry pages.

Pages Used to Set Up Group Types and Group Origins

Defining Group Types

Access the Group Type page. (Set Up Financials/Supply Chain, Product Related, Receivables, Options, Group Type, Group Type.)

Journal Template	Select the journal template to use to create journals for your general ledger. Templates summarize your receivables accounting entries and determine the journal header, date options, and other characteristics. If you plan to generate only one format of journal entry from PeopleSoft Receivables, you can set up a single journal template and associate it with each group type. You can have a different journal format for each group type.
Document Type	Select a document type if you are using document sequencing.
Transaction Type	You can vary the opening and closing period for a receivables business unit for specific types of transactions from the periods for the general ledger business unit that is associated with the receivables business unit. Select the transaction type to associate with items created for the group type. Values are: ARD (AR direct journals): Use for direct journal payments. ARI (AR items): Use for overdue charge and billing groups. ARM (AR maintenance): Use for maintenance and transfer groups. ARP (AR payments): Use for payment, draft, and direct debit groups. ARU (AR unpost): Use for unpost groups. DEF (default): Use when you want to use the default opening and closing periods for the business units and do not want unique periods for the group type.

See Also

Using Document Sequencing in PeopleSoft Receivables

Defining Group Origin IDs

Access the Origin page. (Set Up Financials/Supply Chain, Product Related, Receivables, Options, Origin, Origin, or Set Up Financials/Supply Chain, Product Related, Billing, Setup, Origin, Origin.)

Origin Type

Select an origin type. Values are: Billing: When you enter a billing group, the origin represents the source of the group, such as a particular billing system. Billing groups can be brought into the system online or through an external interface. If you plan to enter billing information online, as well as bring it into the system through an interface, you must establish a minimum of two billing origins. Also, use Billing for item interfaces from PeopleSoft Purchasing and PeopleSoft Order Management. System: System groups are created in the background during processing. They include Payment, Maintenance, Transfer, Overdue Charge, Drafts, and Unpost. The system assigns an origin ID of PS_AR to such groups. You must establish this origin ID, and it must be named PS_AR.

Origin Method

Indicates whether you enter the group online or receive it from an external source, such as items coming from a billing, purchasing, or order management interface.

Important! You cannot change an origin type after you save it.

Setting Up ChartField Combination Editing

This section provides an overview of ChartField combination editing and discusses how to set up ChartField combination editing.

You track receivables transactions based on the ChartField combinations that you define when you set up ChartField combination editing in PeopleSoft General Ledger. PeopleSoft General Ledger uses your accounts in combination with other ChartFields to create journal entries. In PeopleSoft Receivables, ChartField combination editing provides a method to validate online and batch accounting entries.

By defining valid combinations, you can filter entries before you post them to ledgers, saving time and effort during reconciliation and closing. The Journal Editing Application Engine process (GL_JEDIT) also performs the final validation of journal entries before you post them to the ledger.

To set up ChartField combination editing:

1. Review the system-defined ChartField editing templates.

2. Create ChartField combination definitions.

3. Create combination edit rules.

   The combination edit rule defines which ChartFields can be used in combination with an anchor ChartField.

4. Create combination edit groups.

5. Enable ChartField editing for business units on the Receivables Options - General 2 page.

6. Ensure that the ChartField combinations for the Cash and Cash Control lines for the bank on the External Accounts page conform to the combination rules.

7. Ensure that the ChartField combinations for distribution codes, item entry accounting templates, and automatic entry accounting template conform to the combination rules.

See Also

Editing ChartField Combinations

ChartField Combination Editing in PeopleSoft Receivables

The components in PeopleSoft Receivables where the accounting entries appear and ChartField combination editing is validated are:

• Accounts Receivable, Pending Items, Online Items:

  • Online Items, Group Entry

  • Online Items, Single Item

  • Online Items, Large Group

  • Online Items, Overdue Charge Items

  • External Items, Group Entry

  • External Items, Single Item

  • External Items, Large Group

• Accounts Receivable, Payments, Review Payments, Deposit Accounting Entries

• Accounts Receivable, Receivables Maintenance, Maintenance Worksheet, Update Accounting Entries

• Accounts Receivable, Receivables Maintenance, Transfer Worksheet, Update Accounting Entries

• • Accounts Receivable, Receivables Update, Correct Posting Errors

  Note. After run the Receivable Update if the Accounting Entries have an invalid ChartField Combination, the transaction is marked in error, and it is necessary go to the Correct Posting Errors page to rectify it. You have to save the transaction first in these pages in order to see the ChartField Combination Editing detail.

  • Online items

  • External items

  • Overdue charge items

  • Worksheet

  • Transfer

  • Direct debit

  • Direct debit accounting entries

  • Draft

  • Draft accounting entries

  • Payment.

• Accounts Receivable, Payments, Direct Journal Payments, Create Accounting Entries

  Note. The validation for the ChartField Combination Editing is performed for direct journal accounting entries when these accounting entries are set to Complete.