PeopleSoft General Ledger Business Unit Considerations

You must define each business unit in PeopleSoft Payables and in PeopleSoft General Ledger or the third-party general ledger system that you use. A PeopleSoft Payables business unit must be associated with a general ledger business unit.

• General ledger business units define the accounting processing for their associated PeopleSoft Payables business units.

• PeopleSoft Payables business units have few accounting controls; they have mostly operational defaults and controls.

The association does not need to be one-to-one; you can consolidate multiple PeopleSoft Payables business units in one general ledger business unit. However, you cannot have a single PeopleSoft Payables business unit that is associated with multiple general ledger business units.

Depending on the operating, accounting, and reporting requirements, you may want to have PeopleSoft Payables business units that are defined differently from the general ledger business units. Nevertheless, when you determine how many business units you need, be sure to consider the general ledger.