Setting Up InterUnit Processing at the General Ledger Business Unit Level

If you have business scenarios where the InterUnit accounting requirement does not vary among transacting business units, set up InterUnit processing at General Ledger (GL) business unit level.

To set up InterUnit processing at GL business unit level:

  1. Access the General Ledger Definition - Inter/IntraUnit page.

  2. Specify the InterUnit template.

    The system uses the value that you select in the InterUnit Template field to retrieve ChartFields for the offsetting entries. When the InterUnit method is defined as direct, ChartField values that are retrieved are of the offsetting InterUnit entry for the same business unit. If the InterUnit method is defined as indirect, ChartField values that are retrieved are of the offsetting InterUnit entry for the counter business unit in an InterUnit transaction. Consequently, this template must be defined for the SetIDs that are used by each affiliate business unit with which you have InterUnit billing transaction.

    Note:

    When you assign ChartField values for the InterUnit and IntraUnit templates, use the same ChartFields for the transaction codes that you map to system transactions BIDFRAE and BIIVC. The BIDFRAE and BIIVC system transactions are used together in preparing accounting entries for PeopleSoft Billing and should have common values. One approach to ensure that common values exist is to assign the same transaction code to BIDFRAE and BIIVC.

  3. Specify the (IntraUnit) template.

    Select a value in the IntraUnit Template field if the corresponding business unit has ledgers that require IntraUnit balancing. The central InterUnit and IntraUnit processor retrieves the IntraUnit payable and the IntraUnit receivable from the template that is associated with the business unit.

  4. Specify a legal entity unit if you elect to use legal entity definitions at the installation level.

    InterUnit transactions between two business units that are associated with the same legal entity business unit are considered IntraEntity; transactions between two business units that are associated with different legal entity business units are considered InterEntity.

  5. Establish default values for each ChartField that is to be used in product-specific inheritance processing.

  6. Specify the AP business unit in the InterUnit Billing Options group box.

    The AP Business Unit represents the business unit in which the InterUnit Voucher is recorded. This business unit is the bill-to business unit in an InterUnit billing transaction.

  7. Specify the supplier and location in the InterUnit Billing Options group box.

    The Supplier ID and Location fields represent the values that are used on the AP voucher, which refer to the bill-from General Ledger business unit.

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