This chapter provides an overview of interunit and intraunit processing in Oracle's PeopleSoft General Ledger and discusses how to:
Use the Journal Edit Application Engine process (GL_JEDIT) to initiate the Inter/Intraunit Processor Application Engine process (IU_PROCESSOR).
Generate suspense correction journal lines for inter/intraunit transactions.
Copy inter/intraunit journals.
Create inter/intraunit journal entries.
Create inter/intraunit allocation journals.
Perform inter/intraunit consolidations.
Import inter/intraunit transactions using a flat-file journal import.
Import inter/intraunit transactions using a spreadsheet journal import.
PeopleSoft General Ledger enables you to use a minimal number of journal entry lines to record a transaction between related entities. You do not have to enter all the lines that are required to fully balance the entry. Several processes handle unbalanced entries, such as:
Spreadsheet journal entry.
Flat-file journal import.
For each of these processes, the Journal Edit process initiates the Inter/Intraunit Processor to complete the entries automatically.
Inter/Intraunit accounting occurs at the general ledger business unit level, independent of the individual product or feeder system business unit definitions.
Inter/Intraunit transactions are balanced by general ledger business unit and are also balanced by any of the ChartFields that can be designated as balancing ChartFields, such as the Fund ChartField or the Department ChartField. Use the Ledger Groups - Balancing page to determine which of these ChartFields are balancing ChartFields according to your accounting requirements.
You can use inheritance or due-to and due-from balancing to achieve inter/intraunit balancing.
Inter/Intraunit due-to and due-from entries are generated with respect to an anchor value. You determine the anchor ChartField value when making intraunit journal entries. The anchor value for interunit entries is the business unit entered on the journal header.
General Ledger also supports interunit accounting among general ledger business units with different base currencies.
You can set up direct interunit accounting or indirect interunit accounting. If you use direct interunit accounting, the general ledger business units use their own intercompany accounts to record the interunit transaction. If you use indirect interunit accounting, the general ledger business units use the intercompany accounts of the other business units involved.
Note. If you are using alternate accounts, you must use direct interunit accounting.
Using Interunit and Intraunit Accounting and ChartField Inheritance
Creating Interunit and Intraunit Journal Entries
The Journal Edit process calls the Inter/Intraunit Processor process to generate balancing due-to and due-from journal lines after secondary ledger lines are created, currency is translated, value-added tax (VAT) is maintained, the Transaction Set Editor has completed validating the transactions, and edit and amount suspense processing is performed. After calling the Inter/Intraunit Processor process, the Journal Edit process calls Entry Event Processor Application Engine process (FS_EVENTGEN) to process the entry events. It then checks the balancing of the journal and performs balance suspense related processing.
Note. The Journal Edit process performs ChartField combination editing prior to generating the interunit and intraunit lines. Therefore, the system-generated lines are not edited for ChartField combinations. For this reason, it is important to remember to assign the respective journal lines to the appropriate anchor group; otherwise, the system-generated balancing lines may retrieve incorrect balancing ChartField values. In the event that you forget to assign journal lines to the proper IU Group, the Journal Edit process retrieves the default balancing values that you define as the Inheritance Defaults in the General Ledger Definition - Inter/IntraUnit page. Therefore, it is equally important to define the Inheritance Defaults for business units that are to be involved in these transactions.
See Using ChartField Inheritance.
Requesting Journal Edits
The Journal Edit process creates edit and amount suspense correction journal lines before calling the Inter/Intraunit Processor process. Edit and amount suspense correction lines are created before the Inter/Intraunit Processor process creates balancing entries.
Using the Journal Suspense Correction Option
PeopleSoft functionality supports copying of inter/intraunit journal entries.
Copying Journal Entries
The predefined General Ledger system transaction definition GLJ (general ledger journal) enables you to enter and process entry events with inter/intraunit transactions.
The definition GLJ enables you to map multiple transaction fields to create additional subsets or categorizations of an inter/intraunit transaction. The transaction code value appears by default from the system transaction map for GLJ. You can override the default by entering transaction codes on the Journal Entry - Header page.
You can organize inter/intraunit journal entries in inter/intraunit groups and assign anchor business unit and anchor ChartField values that the system uses to create balancing entries.
The PeopleSoft functionality provides several balancing methods, and you can assign affiliate ChartFields to manage inter/intraunit entries.
Using Standard ChartField Configuration
Choosing Affiliate ChartField Values
Creating Interunit and Intraunit Journal Entries
Using Entry Events in General Ledger
When you allocate business units in the pool to other business units, the Allocation process creates interunit journals and calls the Journal Edit process to create the balancing due-to and due-from journal lines.
See Setting Up Interunit and Intraunit Allocations.
PeopleSoft functionality supports inter/intraunit consolidations and the use of affiliate ChartFields.
See Selecting an Approach to Intercompany and Intracompany Transactions.
PeopleSoft functionality supports inter/intraunit flat-file journal import.
Using the Flat File Journal Import Process
PeopleSoft functionality supports inter/intraunit spreadsheet journal import by including the IU Group (inter/intraunit group) field and the IU Anchor (inter/intraunit anchor) field.
Using Spreadsheet Journal Import