Understanding the Accounting Environment Setup

Voucher Accounting Entries

The Affiliate ChartField displays the affiliate business unit that has been charged. If you change the PeopleSoft General Ledger business unit on the distribution line on the Invoice Information page, the system populates the Affiliate ChartField during the Voucher Posting process.

This table lists accounting entries for the voucher when you are using the direct balancing method:

In the direct balancing method, the system charges the business unit's ChartFields. In the previous table, PeopleSoft General Ledger business unit US001 uses account 100103 as its interunit payable account. In the direct balancing method, the system charges account 100103 (its own account).

This table lists the accounting entries for the voucher when you are using the indirect balancing method:

When you use indirect balancing method, the system charges the affiliate business unit's ChartFields instead of the business unit's ChartFields.

This table lists the accounting entries for the voucher when you are using the pairs balancing method:

In the pairs balancing method, the system charges the business units that are defined for the pair of business units involved in the transaction. In the previous table, the interunit payable account is defined as account 100103 for the US001:US003 pair, and the interunit receivable account is defined as account 100105.

Payment Accounting Entries

This table lists the accounting entries for the payments when you are using the direct balancing method:

This table lists the accounting entries for the payments when you are using the indirect balancing method:

This table lists the accounting entries for the payments when you are using the pairs balancing method:

Summary Control Posting Method

The Summary Control posting method balances vouchers at the voucher header level, rather than the individual lines, with summary control accounts such as the accounts payable accrual account for each voucher. It also creates summary expense accounts for nonmerchandise expenses like freight and sales and use tax if you elect not to prorate or allocate these nonmerchandise amounts to the voucher distribution lines. The Summary Control posting method creates one summary accounts payables accrual entry for all of the distribution lines.

The Summary Control posting method creates one summary cash distribution entry for each cash account defined on the External Banks page.

Detail Offset Posting Method

The Detail Offset posting method balances each individual voucher distribution line. During the posting processes, offsets to the distribution lines and cash entries inherit the nonaccount ChartField values based on the established inheritance rules.

Offsets to the distribution lines inherit the nonaccount ChartField values and any other balanced ChartField values from the distribution line. Nonbalancing and nonaccount ChartFields also follow inheritance rules. The Detail Offset posting method creates accounts payable accrual entries for each distribution line.

Because each distribution line is balanced with an offsetting accounts payable accrual account, payments must be allocated to the distribution lines to properly relieve the accounts payable liability. This is done during the Payment Posting process.

Using ChartField Inheritance with Posting Methods

The Detail Offset posting method can inherit header level ChartField values from the distribution line because each distribution line has its own accounts payable accrual (APA) entry.

The Summary Control posting method cannot use inheritance for header level ChartFields. Because the system creates only one APA entry for multiple distribution lines, it does not know from which distribution line to inherit the ChartField values.

Example 1: Summary Control Posting Inheritance (Allocate Freight)

This scenario assumes:

• Allocate freight.

• Only the fund code is balanced.

• No interunit accounting.

• PeopleSoft Payables header level entries, such as APA, inheritance options:

  Field	Inheritance Option
  FUND_CODE	Use Unit Definition
  DEPTID	Use Unit Definition
  PRODUCT	Use Unit Definition
  All Others	Do Not Inherit

• PeopleSoft Payables distribution level entries, such as freight (FRG), inheritance options:

  Field	Inheritance Option
  OPERATING_UNIT	Always Inherit
  FUND_CODE	Always Inherit
  DEPTID	Use Unit Definition
  PRODUCT	Inherit Within Unit
  All Others	Do Not Inherit

This table illustrates the accounting results after running the Voucher Posting process:

Example 2: Summary Control Posting Inheritance (Expense Freight)

This scenario assumes:

• Expense freight.

• Only the fund code is balanced.

• No interunit accounting.

• PeopleSoft Payables header level entries, such as APA, inheritance options:

  Field	Inheritance Option
  FUND_CODE	Use Unit Definition
  DEPTID	Use Unit Definition
  PRODUCT	Use Unit Definition
  All Others	Do Not Inherit

• PeopleSoft Payables distribution level entries, such as FRG, inheritance options:

  Field	Inheritance Option
  OPERATING_UNIT	Always Inherit
  FUND_CODE	Always Inherit
  DEPTID	Use Unit Definition
  PRODUCT	Inherit Within Unit
  All Others	Do Not Inherit

This table lists the accounting results after running the Voucher Posting process:

Example 3: Detail Offset Posting Inheritance

This scenario assumes:

• Allocate freight.

• No interunit accounting.

• PeopleSoft Payables header level entries, such as APA, inheritance options:

  Field	Inheritance Option
  FUND_CODE	Always Inherit
  DEPTID	Inherit Within Unit
  PRODUCT	Use Unit Definition
  All Others	Do Not Inherit

• PeopleSoft Payables distribution level entries, such as FRG, inheritance options:

  Field	Inheritance Option
  OPERATING_UNIT	Always Inherit
  FUND_CODE	Always Inherit
  DEPTID	Use Unit Definition
  PRODUCT	Inherit Within Unit
  All Others	Do Not Inherit

The accounting results after running the Voucher Posting process: