This chapter provides an overview of the expense system operational structure and discusses how to configure business units for PeopleSoft Expenses.
PeopleSoft applications define a business unit as an operational subset of your organization, which enables you to plan operations around the way you work. PeopleSoft Expenses uses general ledger business units to establish defaults such as minimum receipt amounts, cash advance limits, time reporting options and thresholds, journal templates, automatic approval thresholds, and PeopleSoft Commitment Control and value-added tax (VAT) options.
Before you implement an application for your organization, consider how your business operates. To make the most of the flexible PeopleSoft application design, you must first decide how you want to map your operational business structures for PeopleSoft Expenses.
To set up business units and setIDs for PeopleSoft Expenses, use the following components:
Expenses Definition (BUS_UNIT_TBL_EX.GBL)
Expenses Options (BUS_UNIT_OPT_EX.GBL)
Use the BUS_UNIT_TBL_EX component interface to load data into the tables for the PeopleSoft Expenses Definition component.
This section discusses how to:
Configure a business unit for PeopleSoft Expenses.
Define specifications for a business unit.
Assign privilege templates to a business unit.
Define VAT parameters for a business unit.
Define payment defaults for a setID.
Page Name |
Definition Name |
Navigation |
Usage |
BUS_UNIT_TBL_EX1 |
Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition |
Define a PeopleSoft Expenses business unit. |
|
BUS_UNIT_TBL_EX2 |
Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition Select Business Unit 2. |
Designate business unit specifications for journal templates, time reporting, automatic approval thresholds, project time options, and grace periods. |
|
EX_BU_PRIV |
Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition Select Business Unit Privileges. |
Assign privilege templates to a business unit. |
|
BUS_UNIT_TBL_EX3 |
Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition Select VAT Options. |
Establish VAT parameters for the business unit. |
|
BUS_UNIT_OPT_EX |
Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Options |
Establish payment defaults, Commitment Control options, and approval preferences for a setID. |
Access the Expenses Definition - Business Unit 1 page (Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition, Business Unit 1 tab).
Click to display the Open Period Update (OPEN_PERIOD_SINGLE) page and define open period beginning and ending dates for PeopleSoft Expenses that are different from open period date ranges in PeopleSoft General Ledger. This feature enables you to control the transactions created and submitted with a specific accounting date. The accounting date of the transaction is checked against the begin and end dates of the open period defined for the fiscal year to verify whether the transaction is eligible for submission. |
Default Information
Receipt Amount
Specify the minimum expense amount for which a receipt is required. For example, if you enter 75 EUR, employees from this business unit must provide receipts for expenses over 75 EUR. |
Total Amount Limits
Enter a maximum amount for an expense report. If the Amount Exceeded refinement is selected on the Approval Refinement Template page, PeopleSoft Expenses directs expense reports that exceed this amount to the auditor. The prepayment amount applies to all approvers types before payment. The system default is 0 for both fields, which means that no limits are placed on these values. |
Advance Options
Select if this business unit uses cash advances. If this option is selected, enter a value in the Max Advance Amount for BU (maximum advance amount for the business unit) field. If you do not select the Allow Advance check box, the system prevents employees in this business unit from creating cash advances. If you change the Allow Advance or Max Advance Amount for BU field, PeopleSoft Expenses automatically updates the employee profiles. |
Payroll Gross Up Estimate
Enter a percentage to use for tax calculations. For example, if an employee is to receive a net amount of 1,000 GBP and the gross up estimate for taxes is 20 percent, you would pay the employee 1,200 GBP. When your organization agrees to pay a taxable lump sum for expenses such as moving costs, you can ensure that the employee receives the correct amount by estimating the percentage of tax and adding the amount to the committed amount. The percentage that you enter in this field is an estimate of the liability to your organization. The payroll system determines the actual grossed up amount. |
Payment Information
Dun & Bradstreet assigns this optional field for tracking purposes. |
|
Location |
Select a business unit address to print on payment forms. |
Expense Report Doc Type (Expense Report Document Type)
Cash Advance Doc Type (Cash Advance Document Type)
Override
Select to allow anyone in this business unit to ignore location amounts associated with expense types. If this option is not selected, employees in this business unit can enter amounts up to the authorized amount plus the benchmark tolerance for any expense type. If employees enter amounts above the authorized amount plus the benchmark tolerance, the system requires them to enter an exception comment. |
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Select to allow an employee in this business unit to enter any amount for an expense type that is a per diem expense type. If he or she exceeds the authorized amount plus the benchmark tolerance, the system requires the employee to enter an exception comment. If this option is not selected, employees in this business unit can enter an amount up to the authorized amount plus the benchmark tolerance for an expense type that is a per diem expense type. If an employee tries to enter an amount above the authorized amount plus the benchmark tolerance, the system displays an error message. |
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Select to disable the requirement to enforce DCAA audit requirements for a general ledger business unit. Note. PeopleSoft Expenses displays this check box if DCAA Enabled is selected on the Installation Options - Expenses page. |
Accrue Unprocessed Expenses |
Select to enable period end accrual processing for expense sheets. Note. A journal generator template for period end accruals must be established on the Expenses Definition - Business Unit 2 page to enable this functionality. |
Accrue Wallet Entries |
Select to enable period end accrual processing for MyWallet transactions. Note. A journal generator template for period end accruals must be established on the Expenses Definition - Business Unit 2 page to enable this functionality. |
Accrue for Billable Expenses |
Select to enable period end accrual processing for billable expenses. |
Commitment Control for Accrual |
Select to enable commitment control for accrual processing. When this option is selected, expense and encumbrance relief entries are created during the Period End Accruals process for PeopleSoft Expenses. |
See Managing Period End Accruals for PeopleSoft Expenses.
Access the Expenses Definition - Business Unit 2 page (Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition; select the Business Unit 2 tab).
Select the templates for the business unit to use for accruals, payments, closes, period end accruals, and cancels. Your system may have different templates if you use different accounting entry journals for PeopleSoft Expenses.
Note. The template that is selected for the Period End Accruals field cannot create reversal entries.
Establish the number of days after which employees must submit expense transactions for processing:
Time Reporting Options
Time Report Period |
Select the frequency with which employees in this business unit report their work hours. This parameter is used for time reports to determine the number of days to display for time entry. The default is Weekly; you can also select Daily, Bi-Weekly, or Semi-Monthly. |
Ending Day of Period |
The default is Friday. This field signifies the ending day for the time reporting period. This field applies only to weekly and biweekly time collection frequencies. Note. If you use PeopleSoft Forecast Collection, the forecast collection ending day on the Forecast Configuration page must match this ending day. |
Hours Per Day |
Enter the number of hours that make up a work day for the business unit. The default value is eight, but the value can be overridden to enter a longer or shorter work day. When an employee enters his or her time on the Time Report Summary page, the system uses the value entered in this field to calculate the employee's overtime each day. |
Time Grid Display
Select to display the project grid, the policy grid, or both on time reports. If you select to display the project or policy grid, PeopleSoft Expenses hides the other grid and the totals and functionality in the hidden grid will be inaccessible on time reports.
Time Report Thresholds
Establish thresholds for PeopleSoft Expenses to issue warnings or error messages if employees submit time reports over or under the required number of hours for a time reporting period. You can set time reporting thresholds by general ledger business unit or by employee.
See Maintaining Employee Organizational Data.
Alert Actions |
Select to issue warnings or errors for employees who submit time reports that are less than the minimum number of hours or greater than the maximum number of hours for a time reporting period. |
Per Period Thresholds |
Enter the minimum and maximum number of hours for a time reporting period for PeopleSoft Expenses to use to issue warnings or errors. |
Project Time Options
Select Project ChartFields Display |
Select to display PeopleSoft Project Costing ChartField codes or descriptions on time reports. |
Disable Entry of Future Project Hours |
Select to prohibit employees in the general ledger business unit from entering time against projects on a time report that has not yet been worked . |
Allow Entry of Estimate to Complete |
PeopleSoft Expenses displays this check box if PeopleSoft Program Management is installed. Select to enable employees in the general ledger business unit to view remaining work hours for their projects and enter a new estimate of hours to complete projects on their time reports. If you do not select the check box, PeopleSoft Expenses does not display the Remaining Work and New Estimate fields on the Time Report Summary page. |
Auto Approval Thresholds
The options in this group box are active only when the Auto Approve option is selected on the Transaction Definition page for the expense report, travel authorization, and cash advance transaction type.
Monetary Amount Threshold |
If the total amount of the expense report, travel authorization, or cash advance is less than or equal to the monetary threshold amount, PeopleSoft Expenses automatically approves the transaction. If you do not enter an amount in this field, PeopleSoft Expenses does not automatically approve the transactions, even if you enabled the automatic approval functionality. |
% Variance from Travel Auth (percent variance from travel authorization) |
Enter a variance percentage for PeopleSoft Expenses to automatically approve expense reports created from travel authorizations. PeopleSoft Expenses calculates the difference between the expense report total amount and the travel authorization total amount as a percentage. If the percent difference is less than or equal to the percent variance, PeopleSoft Expenses automatically approves the expense report. If you do not enter a percent variance, PeopleSoft Expenses does not automatically approve expense reports based on its variance from the travel authorization, even if you enabled the automatic approval functionality. If the amount of the expense transaction exceeds the variance, but is within the monetary amount threshold, PeopleSoft Expenses automatically approves the expense report. |
Note. If PeopleSoft Commitment Control is enabled, PeopleSoft
Expenses does not automatically approve expense reports if the option to require
a valid budget checking status prior to approval is enforced and the budget
status is set to require budget checking.
The Monetary Amount Threshold and %
Variance from Travel Auth fields are not available if you disable
automatic approval for all transaction types.
Select to indicate that transactions can be approved automatically only when no risk is involved. The use of this option depends upon whether your business unit uses risk templates and you must enter a value in the Monetary Amount Threshold field. |
Distance Accumulation Calendar
PeopleSoft Expenses enables you to accumulate automobile distance based on a fiscal or calendar year. When employees enter an automobile mileage expense on an expense report and specify the distance traveled, PeopleSoft Expenses looks at the calendar specified for the employees' business unit to determine which year to add the distance to.
When employees enter an expense date for an automobile mileage expense on expense reports and the distance rate is variable, PeopleSoft Expenses validates the date against the calendar that you establish on the Expenses Definition - Business Unit 2 page and updates the accumulated distance for the appropriate year.
Use Calendar Year |
Select to use the calendar year (January through December) to accumulate automobile distance. |
Use Specified Calendar |
Select to specify a detail calendar defined on the Calendar Periods page (DETAIL_CALENDAR1). The calendar that you specify determines how PeopleSoft Expenses accumulates automobile distance for employees within the business unit. Warning! If you change options and employees in the business unit have accumulated miles or kilometers, PeopleSoft Expenses displays a warning that the change could invalidate the existing accumulated distance data. |
Access the Business Unit Privileges page (Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition, Business Unit Privileges).
Use this page to assign a privilege template to a business unit for each transaction type.
Transaction Type |
Select a transaction. Options include Expense Report, Time Report, and Travel Authorization. |
Privilege Template |
Select a template for the transaction. This template is used as the default template for all employees in the business unit. |
See Maintaining Employee Privilege Templates.
Access the Expenses Definition - VAT Options page (Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition, select the VAT Options tab).
VAT Fields
Physical Nature |
Select Goods or Services for VAT treatment. |
Record Foreign VAT (record foreign value-added tax) |
Select to record foreign VAT on expense sheets, regardless of whether you enabled VAT at the business unit level. This is for customers who want to record and reclaim foreign VAT. |
Prorate Non-Recoverable VAT (prorate nonrecoverable value-added tax) |
PeopleSoft Expenses generates an accounting line for nonrecoverable VAT. If this check box is deselected, nonrecoverable VAT is charged to the nonrecoverable VAT account designated in the VAT code definition. When this option is selected, nonrecoverable VAT is charged as an expense to the general ledger ChartFields that are indicated in the expense report accounting detail page. |
Allocate Non-Recoverable VAT (allocate nonrecoverable value-added tax) |
If this option is selected, the accounting comes from the VAT template. If deselected, the accounting comes from the VAT accounting template. Note. The Allocate Non-Recoverable VAT check box is active only if the Prorate Non-Recoverable VAT check box is deselected. |
VAT Default |
Click to access the VAT Defaults Setup page. The VAT Default Setup page is a common page used to set up VAT defaulting for all PeopleSoft applications that are processing VAT transactions. On this page you can define the PeopleSoft Expenses business unit defaults, as applicable. See Working with VAT. |
Access the Expenses Options page (Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Options).
Payment Details
Select a rate type to perform exchange rate calculations.
If a business unit associated with this setID makes expense payments to employees, the Bank Code, Bank Account, and Payment Method fields establish defaults.
Accounting Date
Select Use Current Date as your accounting date or select Use Specific Date to open a field and enter a date.
Commitment Control Options
Require budget checking prior to approval for Expense Reports |
If this option is selected, you cannot approve expense reports until you budget check the transactions and they pass with a valid budget status. If multiple approvers exist, only the first approver is required to budget check successfully prior to approval. If an approver modifies any of the accounting details, budget checking is required again to reflect the changes. This option applies only to business units that are enabled for commitment control. |
Require budget checking prior to approval for Travel Authorizations |
If this option is selected, you cannot approve travel authorizations until you budget check the transactions and they pass with a valid budget status. This option applies only to business units that are enabled for commitment control. |
Approval Preferences
Select a preference for how you want PeopleSoft Expenses to behave when approving expense transactions. Although approvers can approve transactions at a summary level, they can also drill down to individual transactions to perform their approval actions. The approval preference determines the behavior of the system after approvers perform their approval actions.
After Approval Action |
Select Proceed to Next Transaction to access the next expense transaction that is available for approval action, or select Return to List to return the approver to the Summary Approvals page from which he or she drilled down. |