Understanding Inter/Intraunit Processing in General Ledger

PeopleSoft General Ledger enables you to use a minimal number of journal entry lines to record a transaction between related entities. You do not have to enter all the lines that are required to fully balance the entry. Several processes handle unbalanced entries, such as:

• Journal entry.

• Spreadsheet journal entry.

• Flat-file journal import.

• Inter/Intraunit allocations.

For each of these processes, the Journal Edit process initiates the Inter/Intraunit Processor to complete the entries automatically.

Inter/Intraunit accounting occurs at the general ledger business unit level, independent of the individual product or feeder system business unit definitions.

Inter/Intraunit transactions are balanced by general ledger business unit and are also balanced by any of the ChartFields that can be designated as balancing ChartFields, such as the Fund ChartField or the Department ChartField. Use the Ledger Groups - Balancing page to determine which of these ChartFields are balancing ChartFields according to your accounting requirements.

You can use inheritance or due-to and due-from balancing to achieve inter/intraunit balancing.

Inter/Intraunit due-to and due-from entries are generated with respect to an anchor value. You determine the anchor ChartField value when making intraunit journal entries. The anchor value for interunit entries is the business unit entered on the journal header.

General Ledger also supports interunit accounting among general ledger business units with different base currencies.

You can set up direct interunit accounting or indirect interunit accounting. If you use direct interunit accounting, the general ledger business units use their own intercompany accounts to record the interunit transaction. If you use indirect interunit accounting, the general ledger business units use the intercompany accounts of the other business units involved.

Note:

If you are using alternate accounts, you must use direct interunit accounting.