Defining Legal Entities
To define legal entities, use the Legal Entity component (CA_LEGAL_PNLG_GBL).
This section provides an overview of legal entities and discusses how to define a legal entity.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
CA_LEGAL_PNL |
Define legal entities. You use legal entities on the Contract - General page to identify the legal entity within your company that owns (that is, signed) the contract. |
Use legal entities in PeopleSoft Contracts to track the legal entity within your company who signs a particular contract. The contract header contains two important pieces of information: the PeopleSoft Contracts business unit designating the group within your company that is processing the contract and the legal entity designating which group within your company signed the contract. Your company's tax department can then keep track of who signed the contract in case a reassignment is necessary, as in the case of a reorganization of your company's business structure. The contract header also contains a region code that you can use to divide your business into smaller or larger areas. The region code is also useful for operational purposes, such as sales and customer service.
These examples describe ways in which you can designate the legal entity on a contract.
Example 1
Two legal entities can sell products and services and assign those products and services to the same PeopleSoft Contracts business unit. For this example, the Legal Entity field enables you to specify on the contract the legal entity that signed the contract.
The first sale is by PeopleSoft USA to Cracker Barrel Restaurant. The contract header details are:
|
Field Name |
Value |
|---|---|
|
Contracts Business Unit |
PSOFT |
|
Sold to Customer ID |
Cracker Barrel Restaurant |
|
Legal Entity |
PSUSA |
The second sale to the same customer is by Vantive. The contract header details are:
|
Field Name |
Value |
|---|---|
|
Contracts Business Unit |
PSOFT |
|
Sold to Customer ID |
Cracker Barrel Restaurant |
|
Legal Entity |
VANTIVE |
Example 2
One legal entity can sell products and services and assign those products and services to a separate PeopleSoft Contracts business unit. In this example, the Legal Entity field enables you to identify all the contracts signed by a legal entity across multiple PeopleSoft Contracts business units.
PSLATIN sells products and services to Cracker Barrel Restaurant in Mexico. The contract header details are:
|
Field Name |
Value |
|---|---|
|
Contracts Business Unit |
PSMEX |
|
Sold to Customer ID |
Cracker Barrel Restaurant |
|
Legal Entity |
PSLATIN |
PSLATIN sells products and services to Cracker Barrel Restaurant in Brazil. The business process dictates that this company write separate contracts for different countries within its legal jurisdiction. The contract header details are:
|
Field Name |
Value |
|---|---|
|
Contracts Business Unit |
PSBZL |
|
Sold to Customer ID |
Cracker Barrel Restaurant |
|
Legal Entity |
PSLATIN |
Example 3
A contract is sold to a company that is acquired by another company. For this example, the Legal Entity field enables you to keep a historical record of the legal entities involved with a given contract.
Intrepid sold goods and services to Cracker Barrel Restaurant, and then Intrepid was acquired by PeopleSoft. Upon data entry and conversion to the system, the contract is entered in the following way:
|
Field Name |
Value |
|---|---|
|
Contracts Business Unit |
PSOFT |
|
Sold to Customer ID |
Cracker Barrel Restaurant |
|
Legal Entity |
INTREPID |
An assignment letter is sent to welcome the customer to PeopleSoft, informing the customer that PeopleSoft is reassigning the contract to PeopleSoft. This change is made to the contract via amendment processing. The contract header details are:
|
Field Name |
Value |
|---|---|
|
Contracts Business Unit |
PSOFT |
|
Sold to Customer ID |
Cracker Barrel Restaurant |
|
Legal Entity |
PSUSA |
Use the Legal Entity page (CA_LEGAL_PNL) to define legal entities.
You use legal entities on the Contract - General page to identify the legal entity within your company that owns (that is, signed) the contract.
Navigation:
Enter a description for each legal entity that you create.
Note: Legal entities in PeopleSoft Contracts are not directly linked to the legal entities in PeopleSoft General Ledger.