Commitment Control and Inter Application Dependencies

Since some PeopleSoft applications depend on each other to perform key functions, you may have to do some additional setup if you enable Commitment Control for one but not for the other interdependent applications.  Some PeopleSoft application from different product line might rely on PeopleSoft Financials and Supply Chain Management applications to handle Commitment Control processing for them.

PeopleSoft Inventory and PeopleSoft Purchasing Dependencies

If you use both Inventory and Purchasing and you do not enable Commitment Control for Purchasing, you need to modify the source transaction definition for Inventory. Delete the value in the Referenced Source Transaction field on the Source Transactions - Definition page for the CM_TRNXTN source transaction definition. The Budget Processor uses this field to liquidate pre-encumbrances and encumbrances.

If you use both applications and you do not enable Commitment Control for Inventory, the system does not liquidate requisitions that would have been liquidated by inventory transactions. If you must liquidate a purchasing transaction in the Commitment Control ledger, you can create a general ledger journal to reverse the amount. This procedure is not recommended.

Note:

You enable Commitment Control for Inventory; however, Cost Management actually creates the source transactions for Inventory.

PeopleSoft Payables and PeopleSoft Purchasing Dependencies

If you use both Payables and Purchasing and you do not enable Commitment Control for Purchasing, modify the source transaction definition for Payables so that the system does not expect to liquidate encumbrances. Delete the value in the Referenced Source Transaction field on the Source Transactions - Definition page for the following source transaction definitions:

  • AP_ACCT_LN

  • AP_ACCTDSE

  • AP_VCHR_NP

  • AP_VOUCHER

The Budget Processor uses the Referenced Source Transaction field to liquidate pre-encumbrances and encumbrances.

PeopleSoft Billing and PeopleSoft Receivables Dependencies

Revenue source transactions come from Billing and Receivables. Billing updates only recognized revenue ledgers, and Receivables can update both recognized and (or) collected revenue ledgers.

The way Billing and Receivables update the Commitment Control ledgers depends on which application you enable for Commitment Control and the General Ledger options you select at the system level, business-unit level, and bill-type level for accounting entry generation.

If you enable Commitment Control for both Billing and Receivables, the system does the following, depending on the General Ledger entries option:

  • If Billing creates the general ledger accounting entries, the system uses the source transactions in Billing to update recognized revenue ledgers. It uses the source transactions in PeopleSoft Receivables to update collected revenue ledgers. The system uses the ChartFields for the billing transaction for the collected revenue transactions.

  • If Receivables creates the general ledger accounting entries, the system uses the source transactions in Receivables to update both recognized revenue and collected revenue.

  • If you select the option to create no general ledger accounting entries, the system uses the source transactions in Receivables to update both recognized revenue and collected revenue.

Depending on the General Ledger option, if you enable Commitment Control for Billing but not Receivables, the system does the following :

  • If Billing creates the general ledger accounting entries, the system uses the source transactions in Billing to update recognized revenue.

    The system does not update collected revenue.

  • If Receivables creates the general ledger accounting entries, the system does not track recognized or collected revenue.

  • If you select the Billing option to create no general ledger accounting entries, the system does not track recognized or collected revenue.

If you enable Commitment Control for Receivables but not Billing, the system does the following, depending on the General Ledger option:

  • If Billing creates the general ledger accounting entries, the system does not update recognized revenue.

    The system uses the source transactions in Receivables to update collected revenue and uses the billing transaction ChartField values to identify the collected revenue transactions.

  • If Receivables creates the general ledger accounting entries, the system uses the source transactions in Receivables to update both recognized revenue and collected revenue.

  • If you select the option in Receivables to create no general ledger accounting entries, the system uses the source transactions in Receivables to update both recognized revenue and collected revenue.

Depending on the General Ledger option, if you enable Commitment Control for Billing but you do not have Receivables installed, the system does the following:

  • If Billing creates the general ledger accounting entries, the system uses the source transactions in Billing to update recognized revenue.

    The system does not update collected revenue.

  • If you select the option in Billing to create no general ledger accounting entries, the system tracks neither recognized nor collected revenue.

If you do not have Billing installed and you enable Commitment Control for Receivables, the system uses the source transactions in Receivables to update both recognized and collected revenue.

PeopleSoft Time and Labor and PeopleSoft Project Costing Dependencies

You can enable Commitment Control for Project Costing to update Commitment Control ledgers with Time and Labor transactions. After interfacing Time and Labor transactions to the Transaction Interface table in Projects, run the PROJ_RESOURCE loader process (PC_INTFEDIT) in Projects that loads the time and labor transactions and calls the Budget Processor to budget check these transactions. You can override the transactions just as you would override any other Project Costing transaction that failed budget checking.