Understanding Accounting Entry Creation

This table lists and describes types of transactions for which you create accounting entries.

Transaction Type	What the System Does
Group item entry	In the group item entry environment, the system enables the recording of an unlimited number of accounts receivable debit or credit entries and an unlimited number of offsetting entries of the opposite sign. The system also creates entries to VAT liability accounts if you use VAT processing. The system creates accounting entries for India taxes if you enter the items in PeopleSoft Receivables or if your billing system does not generate the accounting entries.
Worksheets	In the payment worksheet, in addition to cash and accounts receivable, the system creates entries to VAT liability accounts if you use VAT processing with a payment declaration point. The system also allows an unlimited number of debit entries for write-off activity. The system calculates realized gain or loss entries in a multicurrency application. It creates interunit and intraunit entries when needed. In the maintenance worksheet, the system records entries to accounts receivable and allows an unlimited number of debit entries for write-off activity. The system calculates realized gain or loss entries in a multicurrency application. It creates interunit and intraunit entries when needed. The system also creates entries to VAT liability accounts when appropriate if you use VAT processing with a payment declaration point. In the transfer worksheet, the system creates accounting entries when transferring items. It creates interunit and intraunit entries when needed.
Unpost	The unpost process reverses entries that are originally recorded. It does not require use of the Pending Group Generator Application Engine process (AR_PGG_SERV).

Transaction Type

What the System Does

Group item entry

In the group item entry environment, the system enables the recording of an unlimited number of accounts receivable debit or credit entries and an unlimited number of offsetting entries of the opposite sign. The system also creates entries to VAT liability accounts if you use VAT processing.

The system creates accounting entries for India taxes if you enter the items in PeopleSoft Receivables or if your billing system does not generate the accounting entries.

Worksheets

In the payment worksheet, in addition to cash and accounts receivable, the system creates entries to VAT liability accounts if you use VAT processing with a payment declaration point. The system also allows an unlimited number of debit entries for write-off activity. The system calculates realized gain or loss entries in a multicurrency application. It creates interunit and intraunit entries when needed.

In the maintenance worksheet, the system records entries to accounts receivable and allows an unlimited number of debit entries for write-off activity. The system calculates realized gain or loss entries in a multicurrency application. It creates interunit and intraunit entries when needed. The system also creates entries to VAT liability accounts when appropriate if you use VAT processing with a payment declaration point.

In the transfer worksheet, the system creates accounting entries when transferring items. It creates interunit and intraunit entries when needed.

Unpost

The unpost process reverses entries that are originally recorded. It does not require use of the Pending Group Generator Application Engine process (AR_PGG_SERV).

You can create accounting entries in background processing. In the production environment, this is the normal way to create the entries. In addition, the Pending Group Generator process creates accounting entries for external groups (if the interface does not populate the Pending Distribution table (PS_PENDING_DST) and also creates the accounting entries that result from draft, direct debit, overdue charge, Automatic Maintenance, and Payment Predictor processing.

When the Pending Group Generator process creates accounting entries for external groups, it uses the Item Entry Type Accounting templates that you establish for entry types.

Note:

The only way to create accounting entries that post without operator intervention—apart from populating PS_PENDING_DST directly in the interface—is to have only two lines on the accounting template, specified for use as a balanced entry.

Accounting Entry Approach

You need to make several decisions about how you will use the accounting entry capabilities of PeopleSoft Receivables. You should decide:

Whether your billing system and PeopleSoft Receivables will work together or separately to send accounting entries to your general ledger system.
Whether you will create accounting entries for pending items that are interfaced from your billing system directly in your billing interface program or you will enable PeopleSoft Receivables to create them for you.
How you will provide accounting entry information for items that you convert from your existing system.

Your decisions will also be influenced by whether you need to use more than one accounts receivable (AR) line for each pending item.

Background Processing Flow

If you use the Pending Group Generator process to create accounting entries for external groups, you must provide values in more fields on PS_PENDING_ITEM than if the interface populates PS_PENDING_DST directly. The process runs before the posting step of Receivable Update, so default values that the Receivables Update processes supply are not available when the process creates the accounting entries. The same is true for converting or interfacing in a multicurrency environment; you must populate additional multicurrency fields if you create accounting entries during the Receivables Update process.

The interface tables indicate which fields on PS_PENDING_ITEM must have values for the Pending Group Generator process to create accounting entries.

Related Topics

Your Accounting Entry Approach