Understanding PeopleSoft Billing Business Units

Before you begin using a PeopleSoft Billing system, you must create a PeopleSoft Billing business unit, which is the backbone of the system. In PeopleSoft Billing, a business unit is an operational subset of an organization. You can use business units to plan operations around the way that the organization functions.

A PeopleSoft Billing business unit passes PeopleSoft Receivables data to a Receivables business unit; and then passes accounting information to a PeopleSoft General Ledger business unit. Therefore, you must establish these business units before you establish PeopleSoft Billing business units, and you must link the Billing business units to both a General Ledger business unit and a Receivables business unit. Perform this operation irrespective of whether you use PeopleSoft General Ledger and Receivables or third-party applications.

If you use PeopleSoft Receivables, the Receivables implementation team should have already set up a Receivables business unit for you. If not, you must set up a dummy Receivables business unit for the PeopleSoft Billing system to function properly.