Interunit and Intraunit Accounting

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

Interunit and Intraunit Accounting

Interunit and Intraunit Overview

Interunit and Intraunit Setup

Interunit Accounting Entries