Accounting Entries in PeopleSoft Billing

You associate each contract line with a billing plan. You associate each billing plan with a PeopleSoft Billing business unit; the system limits the valid PeopleSoft Billing business units to those that share the same PeopleSoft General Ledger business unit as the contract's PeopleSoft Contracts business unit.

When the system generates billing activity for a billing plan, each bill row sent to PeopleSoft Billing is associated with its billing plan's PeopleSoft Billing business unit. PeopleSoft Billing then generates accounting entries based on the PeopleSoft General Ledger business unit that is mapped to the bill row's PeopleSoft Billing business unit. Because the system has enforced the rule that the PeopleSoft Billing business unit must share the PeopleSoft General Ledger business unit with the PeopleSoft Contracts business unit, the accounting entry that is made by PeopleSoft Billing for this bill row hits the same PeopleSoft General Ledger business unit as the accounting entry that was made by PeopleSoft Contracts for this contract line. No interunit entries are generated for accounting done from PeopleSoft Billing as it relates to PeopleSoft Contracts activity. Thus, if a contract line is designated for PeopleSoft Billing to manage revenue, the PeopleSoft General Ledger business unit is unavailable on the revenue accounting distribution for that contract line.