Understanding General Ledger Business Units and Options

This topic provides an overview of Oracle's PeopleSoft General Ledger business units and options and discusses how to:

  • Define General Ledger business units.

  • Define journal processing options for a business unit.

  • Define currency options for a business unit.

  • Define approval options for a business unit.

  • Define interunit and intraunit options for a business unit.

  • Enable journal audit logging.

  • Enable ChartField security.

Before you implement PeopleSoft General Ledger, examine how the business operates—that is, how work is performed—and decide how you want to map the operational business structures to General Ledger.

This section lists prerequisites and includes the following:

  • General Ledger business units.

  • Average daily balance (ADB) incremental calculation method.

  • Journal processing options for a business unit.

  • Value-added tax (VAT) options.

Before you set up business units, decide on the TableSet structure and set up your SetIDs.

Before you set up the Balance Suspense, Edit Suspense, and Amount Suspense ChartFields, define the account balancing groups.

See also PeopleTools: PeopleSoft Application Designer Developer's Guide, "Creating Record Definitions".

When you define the operational business structure that a General Ledger business unit represents, note the functions that correspond to individual business units:

  • Entering, approving, and maintaining journal transactions.

  • Requesting background processing.

  • Requesting reports.

  • Defining ChartFields.

  • Creating interunit journal transactions.

  • Defining journal entry error and approval processing.

  • Specifying a single base currency.

  • Specifying tableset sharing.

  • Enforcing security.

When you create a run control request for ADB calculation, you select an ADB definition and period type. If the values that you enter on the run control match a specified ADB definition and period type combination, the process uses the incremental calculation method. Otherwise, the system uses the ad hoc method.

When you define a business unit, you can determine how the system processes a journal entry for that business unit. In General Ledger, you can specify these processing options at the business unit, ledger, or journal entry source level. Processing options defined for a ledger override those defined for a business unit. Options defined for a source override those defined for both a ledger and business unit.

Set journal options for the following types of errors:

Term

Definition

Journal Balance Errors

When you define ledgers, specify them as balanced or unbalanced. Journal entries for balanced ledgers, such as an actuals ledger, must be in balance before posting. A journal balance error occurs when an unbalanced journal is targeted to a balanced ledger.

Journal Edit Errors

When you edit journals, General Ledger verifies that all ChartField values are valid as of the journal date. A journal edit error occurs if you enter an invalid ChartField value or combination on the journal lines. This error category also includes other line errors, such as a blank currency code or an invalid OpenItem reference value.

Control Total Errors

When you edit journals, any amounts entered on the Journal Entry Totals page are checked against the actual totals of the journal line amounts.

Journal Amount Errors

Foreign amounts and monetary amounts in a journal line must have the same sign. This error processing verifies that all amounts are either positive or negative.

Journal Date Errors

The journal date is validated against the open period. An error is generated if the journal date entered is not within the specified open period.

To enable VAT processing in General Ledger, you must first set up your VAT environment. VAT setup in General Ledger involves setting defaults and parameter controls and applying them at the business unit, journal source, and account levels.