General Ledger Distribution

You must associate each PeopleSoft Receivables business unit with a PeopleSoft General Ledger business unit. The association does not need to be one-to-one. You can consolidate multiple PeopleSoft Receivables business units under one PeopleSoft General Ledger business unit. However, you cannot split a PeopleSoft Receivables business unit to associate it with multiple PeopleSoft General Ledger business units. Consider general ledger distribution when determining how many business units you need.

This diagram illustrates that you can consolidate multiple PeopleSoft Receivables business units under one PeopleSoft General Ledger business unit.

If you use PeopleSoft applications for all financial business processes, typically the PeopleSoft Receivables business units are the same as the PeopleSoft General Ledger business units. You set up PeopleSoft General Ledger first and then set up PeopleSoft Receivables to mirror PeopleSoft General Ledger. If you use a different general ledger system, you may not use the business unit concept. In this case, think carefully about how you will distribute from PeopleSoft Receivables to your general ledger.