Accounting Entry Creation

You can create pending item accounting entries online or during background processing when the Receivables Update process runs. When you run Receivables Update to post pending item groups, the Pending Group Generator Application Engine process (AR_PGG_SERV) creates accounting entries if they are not present. Normally, you run the Receivables Update process to create accounting entries. But if you must review them, create them online.

Note:

To create entries for all pending items in the group, use the Group Action page.

The system creates accounting entries based on the templates that you defined during setup. If your setup includes inheritance options, the inheritance options that you selected override the defaults in the templates.

Accounting entries follow the formats defined for item entry types on the Accounting Template page. Each type of transaction—credit memo, debit memo, invoice, and so on—has its own template. The accounting templates can define all transaction accounting entries or only one side of the accounting entries (that is, only the debit side or only the credit side). If a template defines only one side, the system cannot create balanced accounting entries. You must create the accounting entries online and supply the lines needed to make the entries balance. If your templates contain multiple user-defined lines and you create entries online, you can manually allocate the amount of the item across the accounting lines. If you create entries during background processing, the accounting lines cannot be balanced, and you must use the error correction pages to manually allocate the amount across the accounting lines.

If you enabled ChartField combination editing for the business unit on the Receivables Options - General 2 page, the system edits for errors. You cannot post the accounting entries until you fix the error if you selected Recycle in the ChartField Editing group box.

For Create a Debit Memo (IT-01) and Create Credit Memo (IT-02) pending items created online or interfaced from another system, you can modify the ChartField combination for the receivables (AR) line and the user-defined line on the Accounting Entries page for the pending item group. For Overdue Charges (FC-01) items, you can modify only the user-defined line.

See Setting Up Item Entry Types.

Accounting Entries for VAT

For each item in PeopleSoft Receivables, VAT information is stored on VAT lines. The system usually generates one VAT accounting entry for each VAT line on the pending item. If ChartField combinations are the same across multiple accounting entries, the system generates one VAT accounting entry with the amounts summarized.

You establish the VAT ChartField combination at the tax code level on the Value Added Tax Code - Accounting Information page. PeopleSoft Receivables has VAT accounts for each type of VAT liability—an intermediate account and a final account. Within a tax code you can have a different ChartField combination for intermediate VAT and final VAT. You can also define different ChartField combinations for VAT output for discounts and credit adjustments to output VAT.

The term declaration point refers to the time when you report VAT to the tax authorities—at invoice time, at delivery, at the time of payment, or at the accounting date of the transaction. For a declaration point of invoice, delivery, or accounting date, the system creates entries to final VAT during pending item entry. For a declaration point of payment, the system creates entries to intermediate VAT during pending item entry. The default value for the declaration point is determined by values defined in the VAT Defaults Setup page. The system uses the following values, with the shown override capabilities, to determine the default value for the declaration point:

  • VAT entity.

  • PeopleSoft Receivables business unit options (overrides VAT entity).

  • Customer (overrides PeopleSoft Receivables business unit options).

  • Customer location (overrides customer).