Setting Up Divisions

There are two types of divisions referenced on an obligation type: a division and a GL division.

• General Ledger divisions typically comprise individual entities (e.g., companies) in your general ledger. You must set up a GL division for each such entity. The GL division's sole purpose in the system is to define the accounting period associated with financial transactions linked to obligations associated with the GL division (obligations are associated with GL divisions via their obligation type). The system cares about accounting periods in order to prevent a user from booking moneys to closed periods. It also uses accounting periods when it produces the flat file that contains the consolidated journal entry that is interfaced to your general ledger (refer to The GL Interface for more information).

• A division is used to separate business rules and can often be associated with a jurisdiction. The definition of a jurisdiction is a geographic-oriented entity with unique business rules. Another example of where you may use separate divisions is when your tax authority is responsible for other types of debt in the system, such as state university debts or child support debts. You must set up a division for each segmentation in your authority where business rules may differ.

Division is also referenced on obligation, location and account.

• The division on obligation is actually part of the obligation's obligation type. Because obligation type controls many business rules, all business rules that are on the obligation type can be thought of as being defined for a given jurisdiction and obligation type combination. Refer to Defining Obligation Types for more information.

• The division on location defines the jurisdiction in which the location is located. This jurisdiction controls the types of obligations that can be associated with the location.

• The division on account when combined with the account's account type defines the jurisdiction that governs financial business rules (e.g., the bill's due date). Refer to Setting Up Account Types for more information about these rules. The division on account can also play a part in the addressee of To Do entries associated with the account. To assign To Do entries to a role based on the division, simply link the To Do type to the division. Refer to To Do Entries Reference A Role for more information.

The following topics describe the pages used to maintain a division.

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