Interunit and Intraunit Accounting
This topic provides an overview of interunit and intraunit accounting and discusses:
Interunit and intraunit setup
Interunit accounting entries
Intraunit accounting entries
PeopleSoft Receivables creates interunit accounting entries for these transactions:
Payments made on the payment, draft, and direct debit worksheet or using the Payment Predictor Application Engine process (ARPREDCT), where the payment, draft, or direct debit is processed using a bank account that reflects a general ledger business unit that differs from the item's general ledger business unit.
Transactions entered on the maintenance worksheet or created by the Automatic Maintenance Application Engine process (AR_AUTOMNT) to offset items from other general ledger business units.
Items transferred from one business unit to another, where the general ledger business units are different.
Direct journal transactions where the deposit is processed using a bank account that reflects a general ledger business unit that differs from the general ledger business unit where revenue is recorded.
The system populates the ChartFields for interunit accounting entries based on the rules that you specify.
Note: If you enable the Use Affiliate option for the Business Unit ChartField for a ledger group, the system populates the Affiliate ChartField with the other business unit involved in the transaction. Otherwise, it leaves the Affiliate ChartField blank.
PeopleSoft Receivables creates intraunit accounting entries for the following transactions if you enable ChartField balancing for a ledger group on the Ledger Groups - Balancing page and if balancing ChartField values in the transactions differ in any of the distribution lines:
Transactions on the payment, draft, or direct debit worksheet or transactions created by the Payment Predictor process.
IntraUnit entries are created only when monetary amounts are not balanced between the IntraUnit related fields. It is recommended that your system be set up so that the IntraUnit Balancing Entries check box is selected on the Ledger Groups - Balancing page, and that Use Affiliate is specified for at least one field.
Transactions on the maintenance worksheet or transactions created by the Automatic Maintenance process, such as refunds and offsetting items with different balanced ChartFields.
Transactions on the transfer worksheet.
Direct journal transactions.
When you generate accounting entries, the Pending Group Generator Application Engine process (AR_PGG_SERV) calls the central processor (IU_PROCESSOR) to create the interunit and intraunit accounting entries.
Setup for interunit and intraunit accounting entries is linked to the business unit definition for general ledger. PeopleSoft Receivables uses the setup for the general ledger business unit associated with each receivables business unit.
Note: If you plan to use discounts and multibook, then you need to have the same ledger group set up for both business units.
PeopleSoft Receivables provides three unique system transaction definitions that define specific rules for receivables transactions:
Receivables Item (ARIT): Used for all other receivables transactions.
Receivables Transfer (ARTR): Used for transfers.
Receivables Direct Journal (ARDJ): Used for direct journal payments.
You should not modify these definitions unless you modify your application. These system transaction definitions are mapped to the system-defined transaction code for general transactions on the System Transaction Map page.
Important! You should also specify the general ledger business unit for customers that you marked as interunit customers on the General Information - Bill To Options page. The system uses the general ledger business unit for the To customer when you transfer items to a new customer to generate the interunit accounting entries.
You must also define distribution codes for maintenance control and assign the default distribution code to each business unit.
Note: Summarization is an installation option for interunit and intraunit distribution lines that do not use Affiliate ChartFields. Using summarization, you can reduce the number of interunit and intraunit distribution lines when segregation of amounts is not required.
This section provides examples of interunit accounting entries for payment, maintenance, and transfer groups. The following accounting entries are shown without summarization.
Interunit Accounting Entries for Payment Groups
The following interunit example could apply to payments, prepayments, on-account transactions, overpayments, underpayments, and deductions. You apply a 980.00 USD payment to a 1,000.00 USD item and create a write-off for the underpayment for 20.00 USD.
This table displays accounting entries for the payment application:
GL Unit |
Account |
Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
US003 |
100003 |
|
Cash |
1000.00 |
|
US001 |
120000 |
|
Receivables (AR) |
|
1000.00 |
US003 |
100103 |
US001 |
Interunit |
|
1000.00 |
US001 |
100105 |
US003 |
Interunit |
1000.00 |
|
This table displays accounting entries for the underpayment adjustment:
GL Unit |
Account |
Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
US001 |
100003 |
|
Cash |
|
20.00 |
US003 |
120000 |
|
AR |
20.00 |
|
US001 |
100105 |
US003 |
Interunit |
20.00 |
|
US003 |
100103 |
US001 |
Interunit |
|
20.00 |
This table displays accounting entries for the write-off. The write-off entries do not require interunit accounting entries:
GL Unit |
Account |
Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
US001 |
673000 |
|
User-defined (revenue) |
20.00 |
|
US001 |
120000 |
|
AR |
|
20.00 |
Interunit Accounting Entries for Maintenance Groups
When you create a maintenance group, you specify the anchor business unit for interunit transactions.
The following example shows the accounting entries for offsetting items. You offset a 1,000.00 USD debit memo with two credit memos. one for 400.00 USD and one for 600.00 USD. The anchor business unit for the maintenance group is US001:
GL Unit |
Account |
Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
US001 |
120000 |
|
AR |
|
1000.00 |
US001 |
125000 |
|
Offset |
1000.00 |
|
US002 |
110000 |
|
AR |
400.00 |
|
US001 |
125000 |
|
Offset |
|
400.00 |
US003 |
115000 |
|
AR |
600.00 |
|
US001 |
125000 |
|
Offset |
|
600.00 |
US002 |
100103 |
US001 |
Interunit |
|
400.00 |
US001 |
100105 |
US002 |
Interunit |
400.00 |
|
US003 |
100103 |
US001 |
Interunit |
|
600.00 |
US001 |
100105 |
US003 |
Interunit |
600.00 |
|
Interunit Accounting Entries for Transfer Groups
The following example shows the accounting lines that would be generated if you transferred an item from the US001 business unit and customer USA01 to the US003 business unit and customer USA01:
GL Unit |
Account |
Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
US001 |
120006 |
|
AR |
|
1000.00 |
US001 |
100100 |
US003 |
Interunit |
1000.00 |
|
US003 |
120006 |
|
AR |
1000.00 |
|
US003 |
200200 |
US001 |
Interunit |
|
1000.00 |
Note: Because the interunit entries balance the transaction, no offset entries are necessary.
This section provides examples of intraunit accounting entries for payment, maintenance, and transfer groups. The following accounting entries are shown without summarization.
Intraunit Accounting Entries for Payment Groups
The following intraunit examples could apply to payments, prepayments, on-account transactions, overpayments, and underpayments.
In the first example, you apply a 1,960.00 USD payment associated with a nonpooled bank account to a 1,960.00 USD item. This table displays the accounting entries:
Account |
Fund |
Fund Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
100004 |
199 |
|
Cash |
1960.00 |
|
110000 |
100 |
|
AR |
|
1960.00 |
100040 |
199 |
100 |
IntraUnit (Due To) |
|
1960.00 |
100040 |
100 |
199 |
IntraUnit (Due From) |
1960.00 |
|
In the second example, you apply a 1,500.00 USD payment associated with a cash control bank account to a 1,500.00 USD item. This table displays the accounting entries that the system generates when you save the deposit with the payment:
Account |
Fund |
Fund Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
100002 |
200 |
|
Cash |
1500.00 |
|
100023 |
200 |
|
Cash Control |
|
1500.00 |
This table displays the accounting entries that the system generates when you apply the payment to the item:
Account |
Fund |
Fund Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
100023 |
200 |
|
Cash Control |
1500.00 |
|
110010 |
100 |
|
AR |
|
1500.00 |
100065 |
200 |
100 |
Due To |
|
1500.00 |
100067 |
100 |
200 |
Due From |
1500.00 |
|
The system generates the intraunit accounting entries for cash control banks by comparing the fund on the Cash line (created when you save the deposit) to the fund on the AR line (created when you apply the payment to the item).
Intraunit Accounting Entries for Maintenance Groups
The first example displays intraunit accounting entries for a refund of a 4,500.00 USD credit memo:
Account |
Fund |
Fund Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
200004 |
200 |
|
Refund Control |
|
4500.00 |
110010 |
100 |
|
AR |
4500.00 |
|
100040 |
200 |
100 |
Due To |
4500.00 |
|
100040 |
100 |
200 |
Due From |
|
4500.00 |
The second example displays the accounting entries for a match of a debit memo to a credit memo with different funds. The debit memo is 1,000.00 USD, and the credit memo is –1,000.00 USD:
Account |
Fund |
Fund Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
110010 |
100 |
|
AR |
|
1000.00 |
125000 |
200 |
|
Offset |
1000.00 |
|
110010 |
200 |
|
AR |
1000.00 |
|
125000 |
200 |
|
Offset |
|
1000.00 |
100040 |
200 |
100 |
Due To |
|
1000.00 |
100040 |
100 |
200 |
Due From |
1000.00 |
|
Note: When you match (offset) multiple funds using the maintenance worksheet or the Automatic Maintenance process, the system creates only one Due To and Due From entry for each fund. A set of entries in not created for each AR line.
Intraunit Accounting Entries for Transfer Groups
The following example shows the accounting lines that would be generated if you transferred an item from the FED01 business unit and customer 1000 to the FED01 business unit and customer 1002:
Account |
Fund |
Fund Affiliate |
Type |
Debit Amount |
Credit Amount |
---|---|---|---|---|---|
8035 |
|
|
Offset |
1000.00 |
|
1310 |
100 |
|
AR |
|
1000.00 |
1030 |
100 |
|
Intraunit |
1000.00 |
|
2030 |
|
F100 |
Intraunit |
|
1000.00 |
8035 |
|
|
Offset |
|
1000.00 |
1310 |
100 |
|
AR |
1000.00 |
|
1030 |
100 |
|
Intraunit |
|
1000.00 |
2030 |
|
F100 |
Intraunit |
1000.00 |
|