Accounting Distributions for Interunit Transfers

When you define a PeopleSoft Contracts business unit, you associate it with a PeopleSoft General Ledger business unit. When you select a product onto a contract line, the system populates the Accounting Distribution page with the distribution code that you defined for that product. The system also populates the GL Unit field for that contract line with the PeopleSoft General Ledger business unit that you defined for that PeopleSoft Contracts business unit. For contract lines where PeopleSoft Billing manages revenue, the GL Unit field is not editable. When PeopleSoft Contracts manages revenue for a contract line, you can change the PeopleSoft General Ledger business unit on an accounting distribution line to a PeopleSoft General Ledger business unit different from the one associated with the PeopleSoft Contracts business unit. When you do this, the system generates interunit transfer entries. Interunit transfers enable you to specify revenue to be booked to a PeopleSoft General Ledger business unit that is different from the one originally defined on the contract.

Note:

Interunit transfers are enabled only for revenue line distributions; they are not enabled for the contract asset and contract liability entries. The system does not book any balance sheet entries to a PeopleSoft General Ledger business unit other than the one to which the contract's PeopleSoft Contracts business unit is linked.