Billing Definition - Business Unit 1

BUS_UNIT_TBL_BI

Set Up Financials/Supply Chain, Business Unit Related, Billing, Billing Definition, Business Unit 1

Define new PeopleSoft Billing business units, modify existing business units, establish VAT billing business units, and establish a link with a General Ledger business unit and a Receivables business unit.

Billing Definition - Business Unit 2

BUS_UNIT_TBL_BI2

Set Up Financials/Supply Chain, Business Unit Related, Billing, Billing Definition, Business Unit 2

Define tax control and deferred revenue options, and establish default debit and credit entry types and reasons.

Billing Definition - Business Unit 3

BUS_UNIT_TBL_BI3

Set Up Financials/Supply Chain, Business Unit Related, Billing, Billing Definition, Business Unit 3

At the business unit level, set defaults for the Unbilled Revenue Accrual process and defaults for document sequencing.

Billing Definition - Business Unit 4

BUS_UNIT_TBL_BI4

Set Up Financials/Supply Chain, Business Unit Related, Billing, Billing Definition, Business Unit 4

Enable PeopleSoft Billing business units for VAT and FSS.

Set the Invoice Approval Options and enable the attach invoice image option.

Billing Options - Billing Business Unit Options

BUS_UNIT_OPT_BI

Set Up Financials/Supply Chain, Business Unit Related, Billing, Billing Options, Billing Business Unit Options

Establish PeopleSoft Billing business unit options, or review existing business unit options.

Default SetID

Select a new or existing setID.

Description

Displays a description that PeopleSoft Billing uses throughout the system in prompt lists, reports, online inquiries, and other pages. PeopleSoft Billing uses the short description on pages and online inquiries with limited display space. If you establish a business unit with the same name as one that exists in PeopleSoft General Ledger or Receivables, the system uses the default description.

Create BU (create business unit)

Click to have the system create a default relationship between the business unit and setID. If you have already set up a PeopleSoft General Ledger business unit or a Receivables business unit with the same name, this button does not appear, and you do not need to provide a default setID because it already exists for the business unit. After you click this button, the Default SetID field no longer appears. You can override this option for specific record groups at a later time. However, you should set the defaults at the highest level possible to avoid unnecessary work later.

Location Code

Select a code to represent the location of the billing business unit. The system uses this code for the default ship-from country and state, as well as the default seller's VAT country and state on VAT invoices. You define location codes on the Location - Location Definition page.

AR Business Unit (accounts receivable business unit)

Select a Receivables business unit to associate with the Billing business unit.

GL Business Unit (general ledger business unit)

When you select an accounts receivable business unit, the system populates this field with the General Ledger business unit with which the Receivables business unit is associated. The relationship between a Billing business unit and a General Ledger business unit is inherited from Receivables. If you do not have PeopleSoft Receivables installed, enter any value in these two fields; the system validates against tables.

If the GL business unit is tied to a VAT entity, the system populates the identifier of that entity in the VAT Reporting Entity field on the Billing Definition - Business Unit 4 page, indicating that this is a VAT-enabled PeopleSoft Billing business unit. If this value is not tied to a VAT entity, the VAT fields on the Billing Definition - Business Unit 4 page are not displayed.

Base Currency

Displays the base currency of the General Ledger business unit if you have installed PeopleSoft Receivables or General Ledger. Additionally, the system uses this currency as the default billing currency for the business unit. You can select a different default billing currency, if appropriate.

Billing Currency

Displays the base currency of the General Ledger business unit. You can select a different value that the system uses as the default billing currency when the currency is not specified on the bill and the customer has no assigned currency.

Journal Template

Select a value to use when transferring balances to the General Ledger application.

Update Open Periods

Click to access the Open Periods page, where you can edit the parameters of an open period.

Invoice Number ID

Enter the default value for this business unit.

Page Series ID

Enter a value to enable navigation through the same set of bill entry pages in the same order for any bill of this business unit.

Accounting Display Template

Select to control the display of ChartFields.

AR Creates GL Acct Entries (accounts receivable creates general ledger accounting entries)

Select to disable validation requirements for values defined for each revenue line of a bill when changing status to RDY (ready). PeopleSoft Receivables creates accounting entries. PeopleSoft Billing does not track accounting information.

BI Creates GL Acct Entries (billing creates general ledger accounting entries)

PeopleSoft Billing creates General Ledger accounting entries.

No GL Acct Entries (no general ledger accounting entries)

PeopleSoft Billing does not create General Ledger accounting entries.

Header is AR Open Item (header is accounts receivable open item)

PeopleSoft Billing creates a single open item for each bill.

Bill Line is AR Open Item (bill line is accounts receivable open item)

PeopleSoft Billing creates an open item entry for each bill line.

No AR Open Items (no accounts receivable open items)

Billing does not create Receivables open items.

Use Header for Distribution

The system sends item distribution to Receivables from the bill header. This option is valid only if you select Header is AR Open Item for the accounts receivable level.

Use Line for Distribution

The system sends item distribution to Receivables from the bill lines. This option is valid for both accounts receivable level options: Header is AR Open Item and Bill Line is AR Open Item. If you use this option with Header is AR Open Item, you can have one open item in Receivables and nevertheless use different Receivables account distribution for each bill line.

Use Tax Vendor

Select to associate the business unit with the tax vendor that you define on the Installation Options - Overall/GL (installation options - overall and general ledger) page. You select this option to indicate that third-party tax vendor software calculates taxes for billing transactions in this business unit.

Note. This field is disabled if the Billing business unit is associated with a VAT entity.

If you do not select the Use Tax Vendor option, no additional controls appear in the Bus Unit Tax Controls (business unit tax controls) group box.

Company

Enter the company code that you set up for this business unit in the tax vendor system. This code will be associated with all bills you create in this business unit. The system reports the taxes calculated in this business unit under the selected company code in the tax vendor's system.

Division

Enter the division code setup for this business unit, if applicable. Set up division codes in the tax vendor system.

Ord Accept (order acceptance) and Ord Origin (order origin)

Enter the bill line default order-acceptance and order-origin locations to be used in third-party software tax calculations for bills that you create in this business unit.

Calc Use Tax on Free Items (calculate use tax on free items)

Select the check box to specify whether use taxes should be accrued for free items.

Sales/Use

Provide the distribution code for the sales tax liability account.

(CND) GST (goods and services tax)

Provide the distribution code for the Canadian goods and services tax liability account. The GST control is only displayed for a business unit using Canadian dollars as its billing currency.

Note. To calculate Canadian taxes through a third-party tax vendor, do not associate the Billing business unit with a GL unit linked to a VAT entity.

Use Tax Dist (use tax distribution code)

Provide the distribution code for the accrued use tax.

Use Tax Offset

Provide the distribution code for use tax offset.

Note. The Use Tax Offset account may be an accounts payable distribution code.

AP Origin ID (accounts payable origin ID)

If you use a third-party tax provider in PeopleSoft Billing, no tax codes are available to pass to PeopleSoft Payables. Therefore, you need voucher entry intervention to enter the tax information. Set up a unique ID to identify vouchers that require manual intervention.

If you do not have PeopleSoft Payables installed, you cannot take advantage of voucher functionality, and the Generate AP Voucher (generate accounts payable voucher) option on the System Transaction Map - Transaction Options page is unavailable. If you do not select the Generate AP Voucher option, you must provide payables distribution information for the InterUnit pair. This enables the Load GL Interface (load general ledger interface) process to generate accounting entries for the InterUnit payables and expense entries. Configure the system to extract data from the PeopleSoft Billing tables to create vouchers.

Enable Deferred Revenues

Before you can generate deferred accounting entries, select this option, and define the future period accounting dates. These definitions tell the system whether it can generate deferred revenue entries and which accounting date to use for future-dated accounting entries. Set these definitions at the same level that you set the general ledger options. In other words, if the general ledger options are set at the business unit level, set this option and the future period accounting dates at the business unit level.

1

By Days Within Range

The system divides the number of revenue days in the period by the number of days in the range.

2

Evenly Using All Pds (evenly using all periods)

The system divides the total invoice line amount by the number of periods in the range. Revenue is recognized in equal portions for each accounting period, regardless of the number of days in each period.

3

Evenly Using Mid-period Rule

The system divides the total invoice line amount by the number of recognizable periods in the range. The number of recognizable periods is derived from applying rules to start and end days and the mid-period day to determine whether the first and the last periods are recognizable or excluded from the calculations.

The Mid-Period # of Days field becomes available for entry. Enter the day in an accounting period that determines whether the accounting period is fully recognizable or not recognizable at all. Specify the mid-period day here, or enable the system to assign the date. The system defines the mid-period day by dividing the number of days in the accounting period by two and rounding to the nearest whole number.

4

Evenly/Partial by Days

Revenue is recognized in steps. The system prorates first and last periods by dividing the total number of days in the period by the total number of days in the range. The revenue recognized for these partial periods is deducted from the total. The remainder revenue is divided equally between the total number of fully recognizable periods.

5

User Defined Proration Method

This option is available to create a configured proration method.

DR Entry Type (debit entry type), Reason (debit entry reason), CR Entry Type (credit entry type), and Reason (credit entry reason)

Assign values to these fields to define the default accounting entries for debit and credit activity generated by this business unit. Only those values predefined in PeopleSoft Receivables appear. To add accounts receivable entry types and entry reasons, access the Entry Type page and Entry Reason page. You are required to assign both at the business unit level because these fields are optional at all other levels. Providing them at the business unit level (the top of the default hierarchy) ensures that the Load AR Pending Items (load accounts receivable pending items) process always has entry type and reason values to pass to PeopleSoft Receivables. Passing an entry type and reason is required by the PeopleSoft Receivables system for further processing of pending items.

Entry Event

Define the default entry event code for the corresponding business unit. Options include only those values identified with the Receivable Update process (ARUPDATE). This field appears only if entry events are defined as Required or Optional in the Billing field on the Installation Options - Entry Event page.

Enable Unbilled Rev Accrual (enable unbilled revenue accrual)

Select to enable accrual processing for the business unit. When you select this option, define a default unbilled accounts receivable distribution code and an accrued journal template. Only those journal templates that are set up to autoreverse are available for selection.

Include Status

Define which bill statuses to include in the accrual. You can define multiple statuses by inserting a row for each additional status. The following statuses are eligible for accrual: Finalized, Hold, New Bill, Pend Apprv (pending approval), and Ready.

Accrue Bills at This Level

Select to accrue bills by business unit. To enable unbilled revenue accrual at the business unit level for certain bill types only, do not select this option. Instead, set up unbilled revenue accrual for the bill type (on the Bill Type 3 page).

Document Sequencing Defaults

Enter the document type that you want to associate with the invoice types listed. The journal code that you associate with the document type on the General Options Document Type page becomes the default code.

VAT Reporting Entity

If the business unit is enabled for VAT, this field is populated. The default information appears if you link the PeopleSoft Billing business unit to a General Ledger business unit, that is already associated with a VAT entity, on the Billing Definition - Business Unit 1 page.

This is required for VAT Billing business units. If this field is blank, the business unit is not set up for VAT.

Physical Nature

Indicates whether a VAT billing business unit is for goods or services. Physical nature is required for billing business units that are tied to a VAT entity.

This field appears only when the billing business unit's associated general ledger business unit is associated with a VAT entity.

Where Service Performed

Indicates the location where the service is physically performed. Where Service Performed is required for billing business units that are tied to a VAT entity. Options are: Buyer's Location, Ship From Location, ship-to Location, or Supplier's Location.

This field appears only when the billing business unit's associated general ledger business unit is associated with a VAT entity.

VAT Default Setup

Click to access the VAT Defaults Setup page.

The VAT Defaults Setup page is a common page used to set up VAT defaulting for all PeopleSoft applications processing VAT transactions. On this page you can define business unit VAT defaults per VAT registration country and state, as applicable.

This link appears only when the billing business unit's associated general ledger business unit is associated with a VAT entity.

VAT Service Treatment Setup

Click to access the Services VAT Treatment Drivers Setup page.

The Services VAT Treatment Drivers Setup is a common page used to set up VAT services treatment for all PeopleSoft applications processing VAT transactions. If you are required to implement special handling for services, you can specify business unit VAT service treatment defaults on this page for the location country and state of the supplier, as applicable.

This link appears only when the billing business unit's associated general ledger business unit is associated with a VAT entity.

(NLD) Acceptgiro Type

Displays the acceptgiro contract type. The Acceptgiro Type field will be displayed only if an acceptgiro contract is set for the Receivables business unit associated with the Billing business unit. If no contract type is displayed, the business unit will not be able to generate acceptgiro invoices.

Financial Sanctions Screening

Select to indicate that the bills that are associated with this billing business unit are processed through the Financial Sanctions Screening (FSS) check during the Screen for Denied Parties process or the Bill Finalization process. This option is activated when you select Enable at Business Unit in the Order To Cash field on the Overall Installation Options - Financial Sanctions Options page.

See Setting Financial Sanctions Options.

Enable Invoice Approvals

Select to enable the approval process for a business unit. A second flag Only Submit Credits for Approval will be enabled when the Enable Invoice Approvals flag is checked. If the second flag is checked, then only bills that have a negative invoice amount, or at least one negative line amount, will be submitted for approvals.

When invoice approvals is enabled, you will also need to define a Process ID to be used in the approval process. The process ID defines the criteria and rules for your approval process. PeopleSoft Billing uses the Enterprise Components Approval framework to process invoice approvals. The process can be customized to meet your company's business needs.

Attach Invoice Image Option

Select this option to retain an image of the invoice that is generated when the invoice is printed.

If the invoice format is a BI publisher and the invoice has been finalized, the print program can be run and the PDF output of the invoice will be attached to the invoice header.

Billing Origin ID

Displays the source of PeopleSoft Billing items that are loaded into the PeopleSoft Receivables system. If you use PeopleSoft Receivables, you should have already set this up on the Group Origins page. Ensure that the origin type is Billing and the origin method is External. If you are not using Receivables, you can enter any value here; the system does not validate the value.

Group Type

Specify a group type. This value is used to interact with PeopleSoft Receivables. If you have PeopleSoft Receivables installed, you must specify a valid group type as established on the Group Type page. If you are not using PeopleSoft Receivables, you can enter any value here; the system does not validate the value.

Pay Terms for Fully Paid Bill

Select a payment term for invoices that are fully paid and do not have a discount for early payment. Selecting this payment term ensures that the discount for early payment is not applied during the Accounts Receivable payment application process. The potential result of not selecting this payment term could result in outstanding credits in Accounts Receivable.

Exchange Rate Type

Displays the group of exchange rates that the system uses when it converts bill currency amounts to the base currency of the PeopleSoft General Ledger or Receivables system. This default value is drawn from the Miscellaneous General Info page, where it is a required field. You can override the default here. If the system does not populate this field with a default value, return to the Miscellaneous General Info page, and select a default value.

Note. Select the default exchange rate type at the customer level. Failure to select the default exchange rate type at the customer level on the Miscellaneous General Info page can cause unreliable results in the default hierarchy.