Defining Business Units

This section provides an overview of business units and discusses how to establish business units for Global Consolidations.

Page Used to Define Business Units

Page Name	Definition Name	Navigation	Usage
Warehouse Business Unit	BUS_UNIT_TBL_PF1	select EPM Foundation, then select Business Metadata, then select Business Framework, then select Warehouse Business Units	Establish warehouse business units and specify their base currency and type.

Understanding Business Units

Business units in Global Consolidations can be legal entities, a portion of a legal entity, or a collection point for consolidation-specific entries. Several categories of business units are used in Global Consolidations. It is important to understand how they differ and the terms used to refer to them.

Warehouse Business Unit

Represents a strategic view of an organization that is used for reporting and analysis by PeopleSoft EPM. Because ledger records are associated with a business unit, each set of ledger data that you load into PeopleSoft EPM must be associated with a warehouse business unit. Each of your subsidiary business units must be defined as a warehouse business unit.

Common Consolidation Business Unit

A warehouse business unit that is associated with a consolidation ledger. This is the highest level business unit, to which all subsidiary amounts are consolidated. To designate that a business unit is a common consolidation business unit, on the Warehouse Business Unit page, in the Business Unit Type group box, select the Consolidated check box.

The system uses this business unit to determine the SetID, which is the key in defining the common calendar and common chart of accounts for the consolidation model. This is the business unit that you specify when entering the parameters for running the consolidation engines. Even though consolidations can be performed on any dimension, or ChartField, a common consolidation business unit is always required.

You must define a warehouse business unit for each subsidiary, affiliate, and consolidation tree node. You will also need to establish warehouse business units to hold elimination results for each node on the consolidation tree.

See Defining Elimination Entities.

Warehouse Business Unit Page

Use the Warehouse Business Unit page (BUS_UNIT_TBL_PF1) to establish warehouse business units and specify their base currency and type.

Navigation

select EPM Foundation, then select Business Metadata, then select Business Framework, then select Warehouse Business Units

Image: Warehouse Business Unit page

This example illustrates the fields and controls on the Warehouse Business Unit page. You can find definitions for the fields and controls later on this page.

This page is described in detail in the PeopleSoft Enterprise Performance Management Fundamentals Documentaion. The Business Unit Type group box is particularly important to PeopleSoft Global Consolidations, and includes these options:

Consolidated

Select to indicate a business unit to which you are associating a consolidation ledger. For example, when you are defining a common consolidation business unit, you would select this check box. Typically you would not select this check box for subsidiary business units.

Non-Processing

Select to disable this business unit from running processes; as a result, the business unit does not appear as a valid business unit in the drop-down list boxes on run control pages. When consolidating by business unit, you may select this check box for business units on your consolidation tree that are used as summarization nodes or as elimination business units, as long as you do not intend to use those business units for additional processing. Selecting this check box in Add mode disables the Create BU button.

In general, elimination entities for ledger business units should be marked as non-processing to ensure that elimination entities are not selected when the system populates the ledger preparation rule with business units to be processed.

This example shows a simple consolidation tree and how business units are hierarchically arranged on the tree:

Image: Sample business unit consolidation tree

This example illustrates the fields and controls on the Sample business unit consolidation tree. You can find definitions for the fields and controls later on this page.

In the example, AMERI and USCON are summarization nodes, so they should be set up as non-processing business units. Business units E1000, E1300, and E1330 are elimination business units, and they should also be set up as non-processing business units. The root node, business unit 10000 in this example, is the common consolidation business unit.

Note: It is not a requirement for the common consolidation business unit to be the root node on the consolidation tree.