Distribution Codes

PeopleSoft Order Management does not post entries directly to PeopleSoft General Ledger ChartFields except for incurred revenue from claimback claims. Instead, you select distribution codes that determine the accounts to debit and credit for invoice transactions, and the system passes the information to PeopleSoft General Ledger by way of PeopleSoft Billing. PeopleSoft Inventory manages the account distribution for the inventory transactions involved with a sale.

Set up distribution codes in PeopleSoft Billing or PeopleSoft Receivables. The codes reflect detailed account distribution information. Sales transactions are broken into discounts, revenue, and surcharges for distribution purposes. The entries in the discount distribution code, revenue distribution code, and surcharge distribution code fields establish the distribution code for each element of the transaction. Defaults for these fields may come from one of four places:

• If you have associated discount and surcharge distribution IDs with your price rules, and the price rules are used for line or schedule pricing adjustments, then the system uses the discount and surcharge distribution IDs from the price rule.

  If multiple price rules are used, and each price rule has a different discount and surcharge ID, each portion of the adjustment is allocated to the distribution IDs on the price rule. The system then selects the revenue account according to the hierarchy described in the next paragraphs. If no distribution IDs for discounts or surcharges are on the price rules, the default hierarchy also applies.

• If you have established distribution rules and sets based on the elements of a sales order—customer, product, region, and so on—and the system finds a match with a distribution set, the default distribution codes come from that set.

  The distribution rule code used to determine matches on the distribution sets is defined on the PeopleSoft Order Management business unit Accounting and Billing page.

• If the distribution rule does not find a match, or if there is no distribution rule defined on the PeopleSoft Order Management business unit, the default for the distribution codes comes from the PeopleSoft Inventory business unit if the Inventory business unit has an associated PeopleSoft Billing business unit.

• If the PeopleSoft Inventory business unit does not have an associated PeopleSoft Billing business unit, the default for the distribution codes comes from the PeopleSoft Order Management Accounting and Billing page.

Note:

You can enter distribution percentages on the order schedule Distribution Percentages page to allocate a portion of the revenue, discount, and surcharge postings across multiple distribution IDs. This optional feature enables you to charge different departments or accounts for discounts taken on an order, or to allocate revenue across departments. The allocation percentages must add up to 100 percent.

You can change the entries during order entry on the Distribution Accounts page.

Note:

If your price rules carry the distribution IDs for adjustments to the order line and schedule, you do not see the distribution IDs on the Distribution Accounts page. When distribution IDs are derived from a price rule, you cannot modify them. They are applied at billing time.