Posting Method Definition

PeopleSoft Payables supports two posting methods of balancing voucher accruals and payments entries. These flexible posting methods define which ChartField values are inherited from the corresponding accounting entries. Define a posting method on the Installation Options - Payables page. The two posting methods are:

  • Summary Control posting method.

  • Detail Offset posting method.

Summary Control Posting Method

The Summary Control posting method balances vouchers at the voucher header level, rather than the individual lines, with summary control accounts such as the accounts payable accrual account for each voucher. It also creates summary expense accounts for nonmerchandise expenses like freight and sales and use tax if you elect not to prorate or allocate these nonmerchandise amounts to the voucher distribution lines. The Summary Control posting method creates one summary accounts payables accrual entry for all of the distribution lines.

The Summary Control posting method creates one summary cash distribution entry for each cash account defined on the External Banks page.

Note:

The Payment Posting process is not dependent on the Voucher Posting process.

Detail Offset Posting Method

The Detail Offset posting method balances each individual voucher distribution line. During the posting processes, offsets to the distribution lines and cash entries inherit the nonaccount ChartField values based on the established inheritance rules.

Offsets to the distribution lines inherit the nonaccount ChartField values and any other balanced ChartField values from the distribution line. Nonbalancing and nonaccount ChartFields also follow inheritance rules. The Detail Offset posting method creates accounts payable accrual entries for each distribution line.

Because each distribution line is balanced with an offsetting accounts payable accrual account, payments must be allocated to the distribution lines to properly relieve the accounts payable liability. This is done during the Payment Posting process.

Note:

The Payment Posting process does not depend on the Voucher Posting process.

The Detail Offset posting method does not support the expensing of nonmerchandise charges, early payment discounts, or discounts earned or lost. These charges are allocated, or prorated, back to the distribution line rather than being posted to summary accounts.

Using ChartField Inheritance with Posting Methods

The Detail Offset posting method can inherit header level ChartField values from the distribution line because each distribution line has its own accounts payable accrual (APA) entry.

The Summary Control posting method cannot use inheritance for header level ChartFields. Because the system creates only one APA entry for multiple distribution lines, it does not know from which distribution line to inherit the ChartField values.

Example 1: Summary Control Posting Inheritance (Allocate Freight)

This scenario assumes:

  • Allocate freight.

  • Only the fund code is balanced.

  • No interunit accounting.

  • PeopleSoft Payables header level entries, such as APA, inheritance options:

    Field Inheritance Option

    FUND_CODE

    Use Unit Definition

    DEPTID

    Use Unit Definition

    PRODUCT

    Use Unit Definition

    All Others

    Do Not Inherit

  • PeopleSoft Payables distribution level entries, such as freight (FRG), inheritance options:

    Field Inheritance Option

    OPERATING_UNIT

    Always Inherit

    FUND_CODE

    Always Inherit

    DEPTID

    Use Unit Definition

    PRODUCT

    Inherit Within Unit

    All Others

    Do Not Inherit

This table illustrates the accounting results after running the Voucher Posting process:

Vchr/Distr Line Num Distr Acct Type Acct Op Unit Fund Code DeptID Product Others

1 / 1

DST

621100

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

1 / 1

FRG

635000

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from Inter/IntraUnit page in the General Ledger Definition component (BUS_UNIT_TBL_GL).

Inherits from voucher distribution line.

Inherits from accounting entry template.

1 / 2

DST

621100

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

1 / 2

FRG

635000

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from Inter/IntraUnit page in General Ledger Definition component.

Inherits from voucher distribution line.

Inherits from accounting entry template.

99999 / 1

APA

200000

Inherits from accounting entry template

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from accounting entry template.

Example 2: Summary Control Posting Inheritance (Expense Freight)

This scenario assumes:

  • Expense freight.

  • Only the fund code is balanced.

  • No interunit accounting.

  • PeopleSoft Payables header level entries, such as APA, inheritance options:

    Field Inheritance Option

    FUND_CODE

    Use Unit Definition

    DEPTID

    Use Unit Definition

    PRODUCT

    Use Unit Definition

    All Others

    Do Not Inherit

  • PeopleSoft Payables distribution level entries, such as FRG, inheritance options:

    Field Inheritance Option

    OPERATING_UNIT

    Always Inherit

    FUND_CODE

    Always Inherit

    DEPTID

    Use Unit Definition

    PRODUCT

    Inherit Within Unit

    All Others

    Do Not Inherit

This table lists the accounting results after running the Voucher Posting process:

Vchr/Distr Line Num Distr Acct Type Acct Op Unit Fund Code DeptID Product Others

1 / 1

DST

621100

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

1 / 2

DST

621100

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

99999 / 1

APA

200000

Inherits from accounting entry template.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from accounting entry template.

99999 / 1

FRG

635000

Inherits from accounting entry template.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from accounting entry template.

Example 3: Detail Offset Posting Inheritance

This scenario assumes:

  • Allocate freight.

  • No interunit accounting.

  • PeopleSoft Payables header level entries, such as APA, inheritance options:

    Field Inheritance Option

    FUND_CODE

    Always Inherit

    DEPTID

    Inherit Within Unit

    PRODUCT

    Use Unit Definition

    All Others

    Do Not Inherit

  • PeopleSoft Payables distribution level entries, such as FRG, inheritance options:

    Field Inheritance Option

    OPERATING_UNIT

    Always Inherit

    FUND_CODE

    Always Inherit

    DEPTID

    Use Unit Definition

    PRODUCT

    Inherit Within Unit

    All Others

    Do Not Inherit

The accounting results after running the Voucher Posting process:

Vchr/Distr Line Num Distr Acct Type Acct Op Unit Fund Code DeptID Product Others

1 / 1

APA

200000

Inherits from accounting entry template

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from accounting entry template.

1 / 1

DST

621100

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

1 / 1

FRG

635000

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from voucher distribution line.

Inherits from accounting entry template.

1 / 2

APA

200000

Inherits from accounting entry template

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from accounting entry template.

1 / 2

DST

621100

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from voucher distribution line.

1 / 2

FRG

635000

Inherits from voucher distribution line.

Inherits from voucher distribution line.

Inherits from Inter/IntraUnit page in the General Ledger Definition component.

Inherits from voucher distribution line.

Inherits from accounting entry template.

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