Organizational and Legal Categorization of Transactions

PeopleSoft provides functionality to distinguish between Inter Entity and Intra Entity transactions within the interunit category, enabling you to apply the required accounting treatment. However, while there may be different legal entities, all business units in an interunit transaction must share the same ledger group name to generate interunit entries.

The following terms define transactions between and within business units:

Term	Definition
InterEntity	A transaction involving two or more General Ledger business units, when each related business unit represents a separate legal entity.
IntraEntity	Transactions involving two or more General Ledger business units, when all business units are part of the same legal entity.
InterUnit	Any transactions involving two or more General Ledger business units within the same ledger group. These can be either InterEntity or IntraEntity, depending on how the business units are defined and how they are mapped in the legal entity hierarchy.
IntraUnit	A transaction within a single General Ledger business unit that involves more than one value in a lower level Balancing ChartField, such as a Fund or Department. The generic description of intraunit can be substituted with more specific terms, such as inter operating unit, inter department, or inter fund, depending on which ChartField requires balancing within a business unit.

For intraunit activity, the available Accounting Entry Types on the IntraUnit Template page are intraunit receivable and intraunit payable. Additional Accounting Entry Types are available only for Transaction Codes mapped to specific System Transactions. These include intraunit expense and intraunit revenue for the Billing Invoice System Transaction, and IntraUnit In Transit for the Cost Management InterUnit Transfer System Transaction.

For interunit activity, the available Accounting Entry Types on the InterUnit Template page depend on whether you choose to use the legal entity option for your installation. The following table is an example of possible organizational and legal relationships between several business units:

Business Unit	Belongs to Legal Entity Unit
USLE1	USLE1
USLE2	USLE2
US001	US001
US002	USLE1
US003	USLE1
US004	US001
US005	US001
US006	USLE2

In this example USLE1 and USLE2 represent two legal entities to which several of the business units belong. Note that US004 and US005 belong to the US001 legal entity.

If you select the Use Legal Entity for InterUnit option on the Installation Options - Overall page, the following selected combinations illustrate possible Accounting Entry Types applicable to various combinations of inter and intraunit transactions for the business units involved:

Transactions Between	Applicable Accounting Entry Types Using Legal Entity
USLE1 and US003	IntraEntity Payable and Receivable
US004 and US005	IntraEntity Payable and Receivable
US001 and USLE2	InterEntity Payable and Receivable
US006 and US003	InterEntity Payable and Receivable

If you do not select the Use Legal Entity for interunit option, the following selected combinations illustrate the possible Accounting Entry Types applicable to various combinations of inter and intraunit transactions for the business units involved:

Transactions Between	Applicable Accounting Entry Types Not Using Legal Entity
USLE1 and US003	InterUnit Payable and Receivable
US004 and US005	InterUnit Payable and Receivable
US001 and USLE2	InterUnit Payable and Receivable
US006 and US003	InterUnit Payable and Receivable