PeopleSoft Payables Accounting Entries

The following accounting entry examples are based upon certain assumptions:

  • Examples are based upon a single line voucher with the following details:

    • The business unit is DEU01.

    • The gross amount is 10,000.

    • The transaction currency and base currency is EUR.

    • Discount is 2 percent.

    • Distribution general ledger DEU01.

  • Payments are made in the same currency as the voucher.

  • Payments are made from a bank owned by the vouchering business unit.

  • Accounting is at gross.

  • The Summary Control value is specified as the default posting method.

  • Two sets of payment posting results are shown: discount not taken and discount taken.

    In actual posting, only one entry is created.

Field or Control

Description

Discount

The discount transaction accounts for discounts that are taken (or not taken) at the time of payment. The two discount distribution account types are mutually exclusive. The setting of the Account At field on the General Controls page determines which discount distribution account type is used:

Gross: The gross amount of vouchers is used as the basis for accounting. Any discounts taken are recognized as discounts earned. Discounts not taken are not reflected.

Net: The net amount of vouchers is used as the basis for accounting. Any discounts that you lose are recognized as discounts lost.

Discounts are charged depending on the option selected in the Discount Allocation Policy group box on the General Controls page. Options include: Allocate Discounts, Prorate Discounts, and Expenses Discounts.

The standard transaction accounts for the liability, the expense distribution, and the cash payment.