Interunit Accounting Setup in PeopleSoft Payables
Interunit transactions enable you to balance by the PeopleSoft General Ledger business unit. The system generates interunit due-to and due-from entries with respect to an anchor business unit. PeopleSoft Payables derives the anchor business unit from the context of the transaction.
Intraunit transactions enable you to balance on ChartFields other than the PeopleSoft General Ledger business unit. You can select how many and which ChartFields require balancing. You can achieve Intraunit balancing through inheritance or due-to and due-from balancing.
PeopleSoft Payables uses the Centralized Inter/IntraUnit Application Engine process (IU_PROCESSOR) to process intraunit and interunit accounting. This central processor generates interunit and intraunit accounting entries for all PeopleSoft financial products. In PeopleSoft Payables, both the Voucher Posting and Payment Posting Application Engine processes (AP_PSTVCHR and AP_PSTPYMNT, respectively) call the central processor to process the interunit and intraunit accounting entries. To enable PeopleSoft Payables to call the Centralized Inter/IntraUnit processor, you must complete several set up pages in the Inter/IntraUnits component.
Interunit accounting tracks interunit payables and receivables among PeopleSoft General Ledger business units. Interunit accounting occurs at the PeopleSoft General Ledger business unit level, independent of the PeopleSoft Payables business unit definition.
PeopleSoft Payables:
-
Does not require netted interunit distribution and payments within the same general ledger account.
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Separates distribution and payment interunit entries.
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Supports interunit accounting among PeopleSoft General Ledger business units with different base currencies.
When you enter invoices for a vouchering (PeopleSoft Payables) business unit, the charged-to distribution (PeopleSoft General Ledger) business unit associated with that vouchering business unit appears by default in the GL Unit field on the distribution lines of the voucher. You can override that PeopleSoft General Ledger business unit. The PeopleSoft Payables business unit is the entity to which the supplier liability is recorded. The PeopleSoft General Ledger business unit is the entity to which the distribution line is recorded.
Note:
When you enter interunit vouchers on the Invoice Information page, the header budget status changes from Valid to Not Chck'd (not checked). Run the Budget Processor COBOL process (FSPKBDP) to reset the status to Valid to make the voucher eligible for the Voucher Posting process.
If you prorate or allocate the nonmerchandise items, the system charges the PeopleSoft General Ledger business unit with both the merchandise costs and the nonmerchandise costs. If you do not prorate or allocate, the system charges all nonmerchandise items to the PeopleSoft Payables business unit and the merchandise to the PeopleSoft General Ledger business unit.
Balancing ChartFields and their relationship to a balanced set of accounts or books is central to interunit and intraunit processing, as well as ChartField inheritance. You can set up direct, indirect, or pairs balancing methods. If you use the direct balancing method, the system retrieves the due-to and due-from ChartFields that are used to balance each business unit in the transaction are retrieved the business unit's own inter/intraunit template definition. If you use the indirect balancing method, the system retrieves the due-to and due-from ChartFields from the affiliate business unit's inter/intraunit template definition. If you use the pairs balancing method, the system retrieves the due-to and due-from ChartFields from a definition for the pair of business units that are involved in the transaction. Pairs are defined on the InterUnit Pair Maintenance page.
Note:
If your environment uses alternate accounts, use the direct balancing method.
Voucher Accounting Entries
The Affiliate ChartField displays the affiliate business unit that has been charged. If you change the PeopleSoft General Ledger business unit on the distribution line on the Invoice Information page, the system populates the Affiliate ChartField during the Voucher Posting process.
This table lists accounting entries for the voucher when you are using the direct balancing method:
| Descr | Ledger | GL Unit | Affiliate | Acct |
|---|---|---|---|---|
|
Expense Distribution |
ACTUAL |
US001 |
|
631000 |
|
InterUnit Payable |
ACTUAL |
US001 |
US003 |
100103 |
|
InterUnit Receivable |
ACTUAL |
US003 |
US001 |
100105 |
|
Accounts Payable |
ACTUAL |
US003 |
|
200000 |
In the direct balancing method, the system charges the business unit's ChartFields. In the previous table, PeopleSoft General Ledger business unit US001 uses account 100103 as its interunit payable account. In the direct balancing method, the system charges account 100103 (its own account).
This table lists the accounting entries for the voucher when you are using the indirect balancing method:
| Descr | Ledger | GL Unit | Affiliate | Acct |
|---|---|---|---|---|
|
Expense Distribution |
ACTUAL |
US001 |
|
631000 |
|
InterUnit Payable |
ACTUAL |
US001 |
US003 |
100105 |
|
InterUnit Receivable |
ACTUAL |
US003 |
US001 |
100103 |
|
Accounts Payable |
ACTUAL |
US003 |
|
200000 |
When you use indirect balancing method, the system charges the affiliate business unit's ChartFields instead of the business unit's ChartFields.
This table lists the accounting entries for the voucher when you are using the pairs balancing method:
| Descr | Ledger | GL Unit | Affiliate | Acct |
|---|---|---|---|---|
|
Expense Distribution |
ACTUAL |
US001 |
|
631000 |
|
InterUnit Payable |
ACTUAL |
US001 |
US003 |
100103 |
|
InterUnit Receivable |
ACTUAL |
US003 |
US001 |
100105 |
|
Accounts Payable |
ACTUAL |
US003 |
|
200000 |
In the pairs balancing method, the system charges the business units that are defined for the pair of business units involved in the transaction. In the previous table, the interunit payable account is defined as account 100103 for the US001:US003 pair, and the interunit receivable account is defined as account 100105.
Payment Accounting Entries
This table lists the accounting entries for the payments when you are using the direct balancing method:
| Descr | Ledger | GL Unit | Affiliate | Acct |
|---|---|---|---|---|
|
Accounts Payable |
ACTUAL |
US001 |
|
200000 |
|
InterUnit Payment Due To |
ACTUAL |
US001 |
US003 |
100103 |
|
InterUnit Payment Receivable |
ACTUAL |
US003 |
US001 |
100105 |
|
Cash Distribution |
ACTUAL |
US003 |
|
100041 |
This table lists the accounting entries for the payments when you are using the indirect balancing method:
| Descr | Ledger | GL Unit | Affiliate | Acct |
|---|---|---|---|---|
|
Accounts Payable |
ACTUAL |
US001 |
|
200000 |
|
InterUnit Payment Due To |
ACTUAL |
US001 |
US003 |
100105 |
|
InterUnit Payment Receivable |
ACTUAL |
US003 |
US001 |
100103 |
|
Cash Distribution |
ACTUAL |
US003 |
|
100041 |
This table lists the accounting entries for the payments when you are using the pairs balancing method:
| Descr | Ledger | GL Unit | Affiliate | Acct |
|---|---|---|---|---|
|
Expense Distribution |
ACTUAL |
US001 |
|
631000 |
|
InterUnit Payable |
ACTUAL |
US001 |
US003 |
100103 |
|
InterUnit Receivable |
ACTUAL |
US003 |
US001 |
100105 |
|
Accounts Payable |
ACTUAL |
US003 |
|
200000 |