This chapter provides an overview of PeopleSoft Receivables business units and discusses how to:
Create a receivables business unit.
Define business unit defaults by setID.
Define business unit defaults for individual business units.
Note. This chapter is required. You must complete the tasks discussed in this chapter to implement PeopleSoft Receivables.
A business unit represents a high-level organization of business information that can be shared across a set of applications. You can use a business unit to define regional or departmental units in an organization.
To understand how PeopleSoft Receivables uses business units, consider how PeopleSoft General Ledger uses them. A business unit in PeopleSoft General Ledger is a subset of your organization that keeps its own set of books or ledgers. A receivables business unit is a subset of your organization that has its own set of customer balances. Each receivables business unit has its own defined group of valid customer balances, its own way of aging and reporting on those customers, and its own item and payment processing guidelines.
The system stores each business unit's financial transactions, such as invoices and payments, in tables that are keyed by business unit ID. This ensures that the data for one business unit remains separate from the data for other business units—even though the data exists in the same physical database table.
This section discusses:
Types of business units.
PeopleSoft Tree Manager.
TableSets.
Default hierarchies.
Business unit setup process flow.
See Also
How you define a business unit depends on your industry, statutory requirements, regulatory reporting demands, and operating responsibilities. For example, a bank might treat different branches as separate business units, but a manufacturer might segregate the finances of each plant or division. Multinational organizations might separate their operations into geographic business units because of the necessities of conducting business globally. Highly diversified organizations might define each subsidiary or cost center as a business unit.
You use a tool called Tree Manager to group business units together into a hierarchical structure. Tree Manager and your business unit structure provide a mechanism for defining reporting parameters.
A business unit is the smallest structural unit that can be represented in Tree Manager. This is important because certain reports use the relationships defined in Tree Manager to sort and sum amounts. These amounts can include:
PeopleSoft Receivables subtotals for each business unit at the lowest level.
Further subtotals for each grouping of business units—that is, for each level of the tree.
A grand total of an organization's receivables.
Example
Suppose that an organization consists of 12 different companies, each represented by a business unit. You group these companies into three lines of business. Each business line is a subsidiary of the organization. In addition, you have a separate corporate business unit. All of these units—the 12 in 3 subsidiaries and the corporate business unit—roll up into the organization at the top of the hierarchy. You can report at any level of the hierarchy.
Tree Manager enables you to establish hierarchical structures called trees. Using this tool, you can group business units together and define the relationships between them.
Note. PeopleSoft Receivables uses trees to define corporate customer structures and to summarize information for aging reports.
See Also
PeopleTools PeopleBook: PeopleSoft Tree Manager
When you plan your business unit structure, you need to be familiar with TableSets, which are used in all PeopleSoft Financials products.
The accounting structure and processing rules for each PeopleSoft application are defined in a series of control tables. A TableSet is a group of rows across control tables, identified by the same setID, on which you define the accounting structure for each of your business units, aging rules, entry types and reasons, payment terms, credit and receivables personnel, and so forth. For a business unit to process transactions, it must have an associated TableSet.
You can think of business units and TableSets in the following simplified terms:
A business unit contains all the actual data.
A TableSet contains the rules by which the data is processed.
A setID identifies each TableSet. You can have as many setIDs as you want. However, using numerous setIDs creates complex TableSet sharing. You must create at least one setID, even if you do not use TableSet sharing.
A business unit is the highest level in the hierarchy and you must set default values for business units. All other entities fall beneath them in the hierarchy. Some of the attributes set at the business unit level may be set at lower levels in the hierarchy, such as the customer or item level, but are not required.
Default hierarchies exist throughout the system. Any time that a default hierarchy exists, you can:
Leave information blank at lower levels, because defaults are inherited from the next higher level.
Override information set at higher levels by entering different information at the lower levels.
Example
To understand default hierarchies, consider the example of payment terms. When you enter a pending item, you can specify payment terms on the Pending Item 1 page. If you do not specify payment terms there, the system checks the customer level to see if payment terms are defined for the customer. If payment terms do not appear at the customer level, the system uses the payment terms that you defined at the business unit level on the Receivables Options - Payment Options page.
Follow these steps to set up business units:
Create the receivables business unit and its associated TableSet on the Receivables Definition - Business Unit Definition page.
Set up a general ledger business unit.
Set up an Accounts Payable business unit if you use refund processing.
Set up the common application tables and core PeopleSoft Receivables tables.
Define the default processing values for each business unit at the setID level and for individual business units.
Use the Receivables Options component (BUS_UNIT_OPT_AR1) to define defaults at the setID level. All business units assigned to a setID use the defaults that you provide there. Use the Receivables Definition component (BUS_UNIT_TBL_AR) to define defaults for specific business units.
You must define a business unit and associate it with a setID before you set up other tables.
This section lists prerequisites and discusses how to create a business unit.
Before you set up business units, you must decide on your TableSet structure and set up setIDs.
See the documentation on planning records and TableSets in the PeopleTools PeopleBook: PeopleSoft Application Designer Developer's Guide.
Page Name |
Definition Name |
Navigation |
Usage |
BUS_UNIT_TBL_AR1 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definition, Business Unit Definition |
Create a new business unit. |
Access the Business Unit Definition page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definition, Business Unit Definition).
To define business unit defaults, use the Receivables Options component (BUS_UNIT_OPT_AR1).
This section discusses how to:
Define general options.
Define additional general options.
Define payment options.
Define value-added tax (VAT) defaults.
Define Payment Predictor options.
Select default currency options.
Define defaults for customer historical trends.
Page Name |
Definition Name |
Navigation |
Usage |
BUS_UNIT_OPT_AR1 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, General 1 |
Define history options, aging options, correspondence information, Intra-Governmental Payment and Collection (IPAC) Systems information, write-off tolerances for customer account maintenance, and other general information. |
|
BUS_UNIT_OPT_AR3 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, General 2 |
Enter options for payment interfaces, commitment control accounting, and ChartField combination editing. |
|
BUS_UNIT_OPT_AR2 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, Payment Options |
Define defaults for payment processing, grace days, deduction dates, revaluation, and worksheets. |
|
BUS_UNIT_OPT_AR5 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, VAT Defaults |
Define the defaults for VAT processing. |
|
BUS_UNIT_OPT_AR6 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, Predictor Detail Options |
Define the maximum write-off amounts and discount tolerances for the #DTL_TLR algorithm group. Specify the default entry type and reason that the Payment Predictor process (ARPREDCT) uses to create accounting entries for partial payments and discounts when it executes the algorithm group. |
|
BUS_UNIT_OPT_AR7 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, Currency Display Options |
Specify the default currency that appears on some of the inquiry pages, the maintenance and transfer worksheets, and the run control pages for dunning letters and statements. |
|
BUS_UNIT_OPT_AR8 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, Customer Trend Options |
Define the historical statistics that you want to appear on the Customer Trend 1 page, Customer Trend 2 page, and Customer Trend 3 page. |
Access the Receivables Options - General 1 page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, General 1).
Note. The Billing ALC and Sender DO fields are available only if you select the AR IPAC Interface check box on the Installation Options - Receivables page.
Write-off Tolerances
You must specify the tolerances that the maintenance worksheet and Automatic Maintenance process use to write off items.
Maximum Write-Off Amount |
Enter the maximum amount that you can write off for either an individual item or for the remaining balance for a match group. The process writes off an amount less than or equal to the maximum amount if the amount does not exceed the percentage of the original amount for the item. For example, if you enter an amount of 25.00, the process writes off amounts up to 25.00. However, if you enter a maximum write-off percent of 10 and the total original amount of an item is 240.00, the system will not write off more than 24.00. For no limit, enter all 9s. |
Maximum Write-Off Percent |
For the maintenance worksheet, enter the maximum percentage of the item amount that the system can write off. The write-off percent applies only to write-offs for individual items, not for remaining amounts for items or match groups. For the Automatic Maintenance process, enter the maximum percentage that the remaining balance can be for a match group. The process adds the total debits or totals credits and divides the higher amount by the remaining balance for the match group to determine the percentage that can be written off. The maximum percentage that you can enter is 100. For no limit, enter 100. |
Minimum Days Until Write-Off |
Enter the minimum age of items before you can write them off on the worksheet or the process automatically writes them off. For example, if you enter 30, you cannot write off an item until it has been in the system for 30 days. For no limit, enter 0. |
You can also define the tolerances for each customer on the Bill To Options page. The default tolerances for customers is no limit. You must define tolerances for each entry reason on the Automatic Entry Type - Selection page for the following entry types:
Write off a credit (MT-02).
Write off a debit (MT-03).
Write off remaining credit (MT-06).
Write off remaining debit (MT-07).
Because the system always uses the most restrictive tolerance requirement regardless of the level for which you define tolerances, you will probably want to use the least restrictive tolerance at the business unit level. For example, suppose that you set up the following write-off tolerances for the deduction write-off amount:
Level |
Amount |
Business unit: FRA06 |
100.00 |
Customer: FRA08 |
50.00 |
Entry reason: PROMO |
75.00 |
In this example, the system uses the write-off tolerance for the customer to determine the maximum write-off amount because it is the most restrictive.
Access the Receivables Options - General 2 page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, General 2).
Bank Holiday Options
Accounting Date Option
Accounting Date Option |
Select to have the system issue a warning if the user enters a date other than the current date for transactions in this business unit. |
Revenue Estimate Options
You can choose to synchronize the budget date and allow users to override the budget date independently. The following table describes the actions of the system in each case:
Synchronize Budget Date Field |
Override Budget Date Field |
Description |
Actuals and Reporting Ledgers (PENDING_DST, ITEM_DST) |
Revenue Estimate Ledger (AR_CC_TRAN) |
Cleared |
Cleared |
You cannot override the budget date. The system uses the accounting date as the budget date on all transactions. |
The accounting date is used as the budget date on all transactions. |
The accounting date is used as the budget date on all transactions. |
Cleared |
Selected |
You can override the budget date for any transaction. |
The accounting date is used as the budget date on all transactions, but the user can override the budget date. |
The accounting date and the budget date match their values in ITEM_DST. |
Selected |
Cleared |
Use the same date for entries in the collected budget as the date in the recognized budget. Note. This selection only affects the budget ledger. |
The accounting date is used as the budget date on all transactions. |
The system uses the original budget date from the recognized revenue for the budget date related to entries affecting the collected revenue. Note. The budget and reporting ledgers are not synchronized, only the budget date for the recognized revenue and collected revenue. |
Selected |
Selected |
You can only override the budget date for pending item entry transactions. |
The accounting date is used as the budget date, but you can override the date as required for:
For all other transactions, the budget date is populated based upon the recognized revenue budget date. |
The accounting date and the budget date match their values in ITEM_DST. The system uses the original budget date from the recognized revenue for the budget date related to entries affecting the collected revenue. Note. The budget ledger and actuals ledger dates are the same. |
Edit Combinations |
Select to enable ChartField combination editing for business units with this setID and select one of two methods for handling errors. |
Recycle |
Select to display an error message for accounting entries that you create online. You can save the accounting entries, but you cannot post them until you correct the errors or fix the combination edit rule on the Rule Definition page. The system changes the posting action for the group to Do Not Post and sets the edit status to Error. If you generate accounting entries by running the Receivable Update process, the process creates an entry in the message log. You must use the error correction pages to correct the errors before you can post them. |
Warning |
Select to display a warning message for accounting entries that you create online. You can choose whether to correct the accounting entries or to post them without correction. The Receivable Update process adds a warning message to the message log for batch accounting entries and posts the group. |
See Editing ChartField Combinations.
Item Entry Display Options
Order Number Update, PO Number Update (purchase order number update), and Contract Number Update |
Select to enable users to update the Order Number, Purchase Order, and Contract Number fields on the View/Update Item Details - Detail 2 page. Note. You can update these fields only if you are working with Item Entry Type transactions that are typically interfaced from external billing systems. You cannot update these fields for other transactions. |
Access the Receivables Options - Payment Options page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, Payment Options).
Payment Method |
Select the default payment method for items. Options are: Check, Credit Card, Direct Debit, Draft, Electronic Funds Transfer, or Giro - EFT. Override the value for individual customers, items or payments. Note. If you receive payments using a payment interface, such as an electronic data interchange (EDI), lockbox, or bank statement, select Check or Electronic Funds Transfer. If you receive electronic payments for acceptgiro attachments, select Giro - EFT. |
Payment Predictor Method |
Select the method that the Payment Predictor process uses if you do not specify a method at the customer level. The payment predictor method defines the rules that the process uses to apply payments and to make adjustments such as write-off items. See Defining Payment Predictor Methods. If you want to use Payment Predictor to apply all payments from a particular bank account, select the Payment Predictor check box on the External Accounts - Account Information page. Override this default, and select or deselect Payment Predictor for individual payments, using the deposit entry pages. |
Format Currency |
Select the default currency that the system uses for receivables processing. |
Rate Type |
Select the exchange rate type that the system uses to perform currency conversion. Override the default at the customer level or when you enter pending items, enter deposits, create maintenance worksheets, or create customer-initiated drafts. |
Payment Terms ID |
Select the default payment terms for the business unit. Override the default at the customer level or when you enter pending items. Define payment terms on the Payment Terms page. The payment terms determine the item due date and discount information. |
Partial Payment Disabled |
Enter a value that determines whether you can modify the amount on the payment worksheet to create a partial payment. The default is N, which enables users to create partial payments. Enter Y if you do not want users to create partial payments. |
Due Grace Days |
Enter the number of days beyond the due date that a customer can pay without the payment being considered late. The Overdue Charges Application Engine process (AR_OVRDUE) uses due grace days to determine whether an item is overdue. If the item's due date is May 1, 2003 and you run the process on May 2, 2003, the process does not create an overdue charge if you enter 5 for the due grace days. However, after the grace days pass, the system calculates overdue charges from the item's due date. The Aging process uses grace days to determine in which aging category to place an item. For example, you enter 5 days and an item is 22 days old. You have aging categories for 10, 20, and 30 days. The item would be in the aging category for 10 days, because the system subtracts five days from the age. |
Discount Grace Days |
Enter the number of days beyond the discount date that a customer is still eligible for an earned discount. Payment worksheets, express deposits, and the Payment Predictor process use discount grace days to calculate discounts. Override the due grace days and discount grace days for a customer on the Bill To Options page and for individual items during pending item entry or item maintenance. |
Select this check box to activate approval workflow for write-offs entered on the payment worksheet, maintenance worksheet, or draft worksheet. This approval workflow is controlled by the Approval Framework feature in PeopleSoft Enterprise Components. The user is not able to set the worksheet to post until the write-off amount is approved. Both the approver and the worksheet user can set the worksheet to post after approval is granted. |
|
Item Transfer Date |
Select the option that the system uses to determine the accounting date for transfer activities when you transfer items from one customer to another. Options are: Item Date: The accounting date of the original item. System: The current system date. |
Deduction Due Date |
Select the type of date that the system uses to determine the due date of the new item created for a referenced deduction. Select Acctng Dt (accounting date) if the due date is to be the accounting date of the payment. Select Item Dt (item date) to carry over the original item due date. |
Deduction Reason |
Select the default deduction reason to assign to new deductions that the Payment Predictor process or payment and draft worksheet create. Users can override the reason when they create the deduction on the payment worksheet or on the View/Update Item Details - Detail 1 page. Use a generic reason as the default reason and override it as needed. Note. You can also create unique deduction reasons for each entry reason for the Deduction entry type. If you do this, the system assigns the appropriate deduction reasons for deductions that you create on the payment or draft worksheet. |
Reference Qualifier Code |
Select the type of remittance information generally provided by customers, such as document, item, or bill of lading. This is the default value for identifying items to include in the payment, draft, maintenance, and transfer worksheets. You can override the value at the customer level. |
(USF) Entity Code and Receivable Type |
Enter the default code that identifies the government agency to which you submit the Receivables Due from the Public report and the code that categorizes the types of receivables that are included on the report. This value is the default for items. These fields are available only if you select the Receivables Due From Public check box on the Installation Options - Receivables page. |
Revaluation Process Level |
Select the level where the revaluation process occurs. Options are: B (business unit), C (customer ID), or I (item). You must specify a revaluation level to summarize revaluation information by a specific level according to these rules:
|
Confirm After n Days |
Enter the default number of days that a prenote will be automatically confirmed by the system.
|
Access the Receivables Options - VAT Defaults page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, VAT Defaults).
Note. The VAT Defaults Setup and Services VAT Treatment Defaults Setup pages are described in detail in the PeopleSoft Global Options and Reports PeopleBook.
See Also
Access the Receivable Options - Predictor Detail Options page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, Predictor Detail Options).
The Payment Predictor process uses the tolerances that you specify to write off or adjust an underpayment or overpayment or to adjust the discount amount when you run a payment predictor method that executes the #DTL_TLR or #DTL_TPM algorithm groups. The system uses these tolerances for underpayments to determine whether to write off or adjust the balance, or make a partial payment if the Partial Payment Switch check box on the Bill To Options page for the customer is selected. If you deselect the Partial Payment Switch check box, it only uses the tolerances to determine whether to write off or adjust the balance. The tolerances apply to individual items not to all invoices paid by the payment.
Invoice Tolerance Amount |
Enter the maximum amount of an underpayment or overpayment that the Payment Predictor process can write off. The Payment Predictor process can write off an amount below the invoice tolerance amount if it does not exceed the percentage of the payment or item. For example, suppose that you receive a payment of 1,000.00 EUR. You enter 25.00 EUR for the invoice tolerance amount, and you enter .01 in the Percent field. The Payment Predictor process applies the payment to a 1,023.00 EUR item. It does not write off the remaining amount of the item because 23.00 EUR is larger than 1 percent of the 1,023.00 EUR item. Note. The currency is the format currency that you entered on the Payment Options page. |
Percent |
Enter the maximum percentage to write off. You can use decimals in the percentage. If you enter .25 this equals .0025. If you enter 1.00 this equals 1 percent. |
Discount Tolerance Amount |
Enter the maximum amount of an unearned discount that the Payment Predictor process can take. To take unearned discounts, users must select the Disc field on the Detail Reference Information page for the payment and enter the discount amount. Note. The currency is the format currency that you enter on the Payment Options page. |
Percent |
Enter the maximum percentage that the Payment Predictor process can add to the payment terms. You can use decimals in the percentage. If you enter .25 this equals .0025. If you enter 1.00 this equals 1 percent. |
Last Entry Date |
Displays the date on which the page was last changed. |
Control Bus Unit and Customer (control business unit and customer) |
Click the down arrow to display these values:
|
Assigning Default Entry Types and Reasons
Enter the entry type and entry reason codes that you want to use to override the defaults for the system function. The following table provides a list of conditions that are in the Exception Type field and the default system function that the Payment Predictor process uses for the condition. It also provides other system functions that you can use for the exception type and the entry type and reason to enter if you want the Payment Predictor process to use that system function.
Condition |
Default System Function |
Possible System Functions |
Entry Type and Reason |
Invoice amount or percent overage within tolerance |
WS-10 (Write-off an Overpayment) |
WS-09 (Write-off an Item) WS-06 (Adjust Remaining Overpayment) WS-10 (Write-off an Overpayment) |
WO and IOIT AO and IOIT WAO and IOIT |
Invoice amount or percent overage exceeds tolerance |
WS-05 (Place Amount on Account) |
WS-05 (Place Amount on Account) WS-04 (Prepay an Item) WS-06 (Adjust Remaining Overpayment) |
OA and IOET PR and IOET AO and IOET |
Invoice amount or percent underage within tolerance |
WS-11 (Write-off an Underpayment) |
WS-09 (Write-off an Item) WS-07 (Adjust Remaining Underpayment) WS-11 (Write-off an Underpayment) |
WO and IUIT AU and IUIT WAU and IUIT |
Invoice amount or percent underage exceeds tolerance |
WS-08 (Create a Deduction) |
WS-08 (Create a Deduction) |
DED and IUET |
Discount amount or percent overage within tolerance |
WS-11 (Write-off an Underpayment) |
WS-09 (Write-off an Item) WS-07 (Adjust Remaining Underpayment) WS-11 (Write-off an Underpayment) |
WO and DOIT AU and DOIT WAU and DOIT |
Discount amount or percent overage exceeds tolerance |
WS-08 (Create a Deduction) |
WS-08 (Create a Deduction) |
DED and DOET |
Discount amount or percent underage within tolerance |
WS-10 (Write-off an Overpayment) |
WS-09 (Write-off an Item) WS-06 (Adjust Remaining Overpayment) WS-10 (Write-off an Overpayment) |
WO and DUIT AO and DUIT WAU and DUIT |
Discount amount or percent underage exceeds tolerance |
WS-05 (Place Amount on Account) |
WS-05 (Place Amount on Account) WS-04 (Prepay an Item) WS-06 (Adjust Remaining Overpayment) |
OA and DUET PR and DUET AO and DUET |
Select Generate Worksheet on this page and in payment predictor methods where you use the #DTL_TLR algorithm group to generate a worksheet when the condition occurs. This enables you to review the payment application before you post it.
Note. If you use the #DTL_TLR algorithm group in a payment predictor method, the Payment Predictor process uses default entry types and reasons (for each system function) for underpayment, overpayment, and discount conditions. However, you can override the defaults by business unit based on their setID. You must assign these entry types and reasons to the system function on the Automatic Entry Type - Selection page.
See Also
Using #DETAIL and #DTL_TLR for Partial Payments and Deductions
Setting Up Automatic Entry Types
Access the Receivables Options - Currency Display Options page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, Currency Display Options).
AR Display Currency
Use an AR Display Currency (use an accounts receivable display currency) |
Select to enable the associated currency options. Use these options to determine which currency transaction and balance amounts appear in the PeopleSoft Receivables inquiry pages, and to determine the default currency that appears on the run control pages for statements and dunning letter processes. Options are: Business Unit Currency: The system displays amounts in the format currency for the business unit that you defined on the Receivables Options - Payment Options page, and the system uses the exchange rate type for the business unit to convert the amount. The business unit currency is usually the same as the base currency. Customer Default Currency: The system displays amounts in the default currency for the customer and uses the exchange rate type for the customer to convert the amount. You define customer currency defaults on the Miscellaneous General Info page for the customer. Other: The system displays amounts in the currency that you specify, and the system uses the exchange rate type that you specify to convert the amounts. Only this option enables you to change the display currency for inquiry pages and the dunning letter and statement run control pages when you access them. |
AR Display Currency in Worksheet Pages
The values that you enter here determine the default values that display on the Currency Conversion page for maintenance, payment, and transfer worksheets. You can override the values at the worksheet level if needed. The values are used to convert the item amounts to a different currency and they display in the Conversion Amount - Currency field if you use the Currency Conversion page to convert them.
Currency Code |
Enter the default currency for converting item amounts. |
Rate Type |
Specify the exchange rate that the system uses to convert currency amounts on worksheets. |
Effective Date |
Specify whether the conversion date should be the current date (As of Today), or the Accounting Date for the item. |
Access the Receivables Options - Customer Trend Options page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Options, Customer Trend Options).
Enter the history ID that you want to use to calculate the historical data for each of the trend pages along with the heading label that you want to display for the data on the trend pages. You use the trend pages to compare historical data for different history IDs. Enter either system-defined or user-defined history IDs.
The Customer Trend 1 and Customer Trend 2 pages can display up to three historical statistics for history IDs that track amounts, such as High Balance Amount, and the Customer Trend 3 page can display up to six historical statistics for history IDs that track the number of days, such as average days late.
To define business unit defaults, use the Receivables Definition component.
This section discusses how to:
Establish the general ledger business unit defaults.
Define multicurrency processing options, distribution codes, and journal templates.
Define additional accounting options.
Select bank and payment interface options.
(USF) Define debt management information.
Important! Changing the GL business unit for a Receivables business unit when open items exist may result in an error during processing. Verify that there are no open items for the Receivables business unit before changing the GL business unit.
Page Name |
Definition Name |
Navigation |
Usage |
BUS_UNIT_TBL_AR1 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definition, Business Unit Definition |
Link a PeopleSoft Receivables business unit with a PeopleSoft General Ledger business unit and assign a location code to the unit. You also define the base currency and automatic numbering options for the business unit. |
|
BUS_UNIT_TBL_AR2 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definitions, Accounting Options 1 |
Define the open accounting periods for the business unit, assign a direct journal template to the unit, assign the accounts receivable distribution codes to the unit, and define multicurrency processing options. |
|
BUS_UNIT_TBL_AR3 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definitions, Accounting Options 2 |
Specify the distribution codes used to create accounting entries for draft processing and refund processing. Also, define defaults for direct debit and refund processing. |
|
BUS_UNIT_TBL_AR4 |
Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definitions, Bank/Payment Options |
Specify business unit defaults for due dates that fall on holidays. If you use discounted drafts, specify the default entry type for bank fees. |
|
DMS_BU_SEC |
Click the DMS Definition link on the Receivables Definition - Bank/Payment Options page. The link is available only if you selected the DMS Interface field on the Installation Options - Receivables page. |
(USF) Map fields and specify outbound and inbound file processing requirements for the Debt Management Service (DMS) interface. |
Access the Receivables Definition - Business Unit Definition page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definition, Business Unit Definition).
See Also
Access the Receivables Definition - Accounting Options 1 page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definitions, Accounting Options 1).
Update Open Periods |
Click to access the Open Period Update page, where you update the opening and closing period for a business unit. You can use same period dates for all transactions or use different dates for specific types of transactions. You link the transaction type to group types on the Group Type page. The normal default opening and closing period dates for each PeopleSoft Receivables business unit are the same as the PeopleSoft General Ledger business unit with which it is associated. Use this option when you want an accounting period in PeopleSoft Receivables to close at a different time than an accounting period in PeopleSoft General Ledger. The system automatically issues a warning message if the closing date for an application business unit and transaction type is later than the closing date for the PeopleSoft General Ledger business unit. Note. You receive a warning message if unapplied payments or unposted pending items exist and the accounting date falls in a closed period. See Defining and Updating Open Periods and Adjustment Periods. |
AR Distribution Code (accounts receivable distribution code) |
Enter the default accounts receivable distribution code for the business unit. This code determines the ChartFields that the system uses when generating system-defined accounting entries for pending items. For billing groups, override the default distribution code on the Pending Item 1 page, on the Item Entry Type - Selection page, or on the customer General Information - Bill To Options 1 page. For payment, draft, maintenance, and overdue charge groups, override the business unit default on the Automatic Entry Type - Selection page or on the customer General Information - Bill To Options 1 page. |
Doubtful Distribution Code |
Select a distribution code for items for which you do not expect to receive payments and to transfer those items to the Doubtful Receivable account. |
Direct Journal |
Select the journal generator template that the Journal Generator Application Engine process (FS_JGEN) uses to create journal entries for directly journaled payments. Define the template on the Journal Generator - Defaults page. |
Cash Control |
Select the journal generator template that the Journal Generator process uses to create journal entries for cash control entries. Define the template on the Journal Generator - Defaults page. |
Realized Gain Code |
Enter a distribution code that maintenance and payment worksheets use to create adjusting entries for multicurrency processing. Each business unit can have only one realized gain code. |
Realized Loss Code |
Enter a distribution code that maintenance and payment worksheets use to create adjusting entries for multicurrency processing. Each business unit can have only one realized loss code. |
Unrealized Gain Code |
Enter a distribution code that the Revaluation Application Engine process (AR_REVAL) uses to create revaluation entries for unrealized gain. |
Unrealized Loss Code |
Enter a distribution code that the Revaluation process uses to create revaluation entries for unrealized loss. |
Translate Distribution Code |
Enter a distribution code that the Revaluation process uses to create accounting entries for adjustments to translation ledgers. |
Translate Realized Gain Code and Translate Realized Loss Code |
Enter distribution codes that the system uses to create accounting entries for multibook translation ledgers if there is a translation adjustment. |
Default Revaluation Doc Type (default revaluation document type) |
Enter the default revaluation document type for document sequencing. |
Rounding Account Code |
Enter the distribution code that the Receivable Update process uses when you:
The process posts any leftover amount from the currency conversion to the ChartFields that are assigned to the distribution code. |
Journal Template |
Select the journal generator template that the Journal Generator process uses to create journal entries for the accounting entries that the revaluation process produces. |
Access the Receivable Definition - Accounting Options 2 page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definitions, Accounting Options 2).
Cash Control Method |
Select a timing method, if you use cash control accounting, which records a debit to cash and a credit to cash control before the receipts are applied to accounts receivable. The methods differ only in the timing of the creation of the initial accounting entry that debits cash. All other aspects of cash control accounting are treated the same way under the methods. Options are: Bank Reconciliation: This method is used primarily in European countries. It requires the creation of the cash control entry when the payment is reconciled on a bank statement. Payment Entry: The preferred method in the U.S. It creates the cash control entry when the payment is received. None: The system always debits the cash account and credits the PeopleSoft Receivables account when you apply the payment. The system does not create cash control entries. |
Auto-Remit Direct Debits |
Select to have the Create Direct Debits Application Engine process (AR_DIRDEBIT) automatically change the status to Remitted for direct debits without exceptions in the run. If any of the direct debits that the process creates contain exceptions, their status is Pending Approval on the direct debit worksheet. Override this selection for each run request on the Request Parameters page. |
VAT Adjustment on Advance Pymt |
Select this check box to include the VAT amount of a prepayment in the Accounts Receivable Pre-Paid account. See VAT Adjustment for Advance Payments and On-Account Payments. |
Draft AR Distribution Code (draft accounts receivable distribution code) |
Select the distribution code that the system uses to move the draft item from the original PeopleSoft Receivables account to the Draft PeopleSoft Receivables account. |
Remitted Draft Receivable Code |
Enter the distribution code that the system uses to identify the PeopleSoft Receivables account when you remit a draft. |
Draft Discount Receivable Code |
Enter the distribution code that the system uses to identify the PeopleSoft Receivables account for a discounted draft. |
Draft Discount Liability Code |
Enter the distribution code that the system uses to identify the Liability account when you discount a draft with or without recourse. |
Dishonored Draft Code |
Enter the distribution code that the system uses to identify the Dishonored Receivables account when you dishonor a draft. |
Refund Distribution Code |
Enter the distribution code that the system uses to create accounting entries for refunds. Note. If you have PeopleSoft Payables installed, you must complete the Refund Distribution Code, AP Unit, and AP Origin ID fields before you can process refunds. If PeopleSoft Payables is not installed, these fields are optional. |
Control Distribution Code |
Select the default distribution code for the offset entry for transactions in maintenance and transfer groups. You can override the value on maintenance or transfer worksheets. Enter separate codes for maintenance and transfer worksheets. Important! You cannot build the worksheets if you do not assign a default value to the business unit. |
AP Unit (Accounts Payable unit) |
Select the PeopleSoft Payables business unit for which you want to create vouchers for credit items that you refund from the PeopleSoft Receivables business unit. For Payables refund processing, the receivables business unit and associated Payables business unit must share the same PeopleSoft General Ledger business unit. |
AP Origin ID (Accounts Payable origin ID) |
Enter the source of the voucher. Note. Before you can enter values in the AP Unit and AP Origin ID fields, you must select a PeopleSoft General Ledger business unit on the Business Unit Definition page and click Save. |
See Also
Understanding the Create Direct Debits Application Engine Process
Defining Journal Generator Template Defaults
Access the Receivables Definition - Bank/Payment Options page (Set Up Financials/Supply Chain, Business Unit Related, Receivables, Receivables Definitions, Bank/Payment Options).
The Bank Holiday Options are the same as the ones on the Receivables Options - General 2 page. If you enter values for a specific business unit they override the values for the setID.
Entry Type |
Select the default entry type to use for the bank fees or interest on discounted drafts, if you process discounted drafts. Discounted drafts are drafts for which you receive the funds prior to the due date. Define entry types on the Entry Type page. The Receivable Update process uses the entry type to create accounting entries for the bank fees on the discount date. |
Entry Type, Entry Reason, and System Function ID |
Enter the information that provides the default values that the Payment Loader Application Engine process (AR_PAYLOAD) uses for adjustments reason translation. If the process cannot find the adjustment reason code in the lockbox, EDI file, or bank statement in the Adjustment Reason table (ADJ_REASON_TBL), it uses the values that you provide for the business unit for the entry type, entry reason, and system function. |
Miscellaneous Payment Options
(NLD) AcceptGiro Type |
Select A/S Contract to print statements and dunning letters on the acceptgiro form. Otherwise, select None. If you select A/S Contract and you enter this business unit on the run control pages, the system prints statements and dunning letters on the A/S Contract Type acceptgiro form. You can choose not to print the statements and dunning letters on the acceptgiro form when you run the Statements Application Engine process (AR_STMTS) or the AR Dunning process (AR_DUNNING). |
(NLD) Payment Reference Sequence |
Enter the payment reference number to print on the acceptgiro form. When you print statements or dunning letters on acceptgiro forms, the process increments this number by one and adds a check digit. The process also adds this reference number, including the check digit, to the Item table (PS_ITEM) for each item on the statement or dunning letter. If the item already has a payment reference number, the process overrides the number. The bank typically sends the payment reference number with the payment. This enables you to apply payments to items using Payment Predictor if you use detail algorithm groups or to match payments to items on the payment worksheet. |
(USF) DMS Information (Debt Management Service information) |
Click to access the DMS Definition page, where you map fields and specify the outbound and inbound file processing requirements. This link is available only if you have selected the DMS Interface check box on the Installation Options - Receivables page. |
Credit Card Payment Profile
Credit Card Profile |
(Optional) Select the profile used to control batch processing of credit card payments. Any profile entered here may be overridden at the customer level on the Bill To Options page of the Customer component. |
Bank and Account |
Identify which bank accounts receive deposits for credit card payments. |
See Also
Access the DMS Definition page (click the DMS Definition link on the Receivables Definition - Bank/Payment Options page).
Agency ID |
Enter the agency identifier code assigned by the DMS for the organization. |
File Sequence Number |
Enter the original sequence number for the files that you submit to the DMS. The system increments the number after each successful process. |
Number of days and Basis Date |
Enter the number of days past the date in the Basis Date field that the system uses to determine whether to automatically send the outstanding debt to the DMS. The default is 180 days. Values for the basis date are Accounting Date, As of Date, Due Date, or Item Date. |
Primary private collection agency, Secondary private collection agency, and Judgement taken on debt |
Enter a collection code that you defined on the Collection Code page to identify the collection agencies to which you submit collections for this business unit. If you enter values in these fields, the system sends a supplemental record to the DMS that includes the date and the amount of the debt that was sent to the collection agency. |
Transaction Type, Entry Type, and Entry Reason |
Select each transaction type that you receive in inbound files from the DMS and associate it with the entry type and entry reason that you want used to create items for the transactions in the Pending Item table (PS_PENDING_ITEM). Options are: Adjustment Transaction-Down: Negative adjustment transaction for amounts less than 0. Adjustment Transaction-Up: Positive adjustment transaction that is greater than 0. Offset: An offset that is treated as a payment in PeopleSoft Receivables. Payment: Partial payment that is applied to the net balance. |
Collection Code |
Select the code for the collection agency that you assign to items that you do not send to the DMS. |