Understanding PeopleSoft Receivables Business Units

A business unit represents a high-level organization of business information that can be shared across a set of applications. You can use a business unit to define regional or departmental units in an organization.

To understand how PeopleSoft Receivables uses business units, consider how PeopleSoft General Ledger uses them. A business unit in PeopleSoft General Ledger is a subset of your organization that keeps its own set of books or ledgers. A receivables business unit is a subset of your organization that has its own set of customer balances. Each receivables business unit has its own defined group of valid customer balances, its own way of aging and reporting on those customers, and its own item and payment processing guidelines.

The system stores each business unit's financial transactions, such as invoices and payments, in tables that are keyed by business unit ID. This ensures that the data for one business unit remains separate from the data for other business units—even though the data exists in the same physical database table.

This section discusses:

• Types of business units.

• PeopleSoft Tree Manager.

• TableSets.

• Default hierarchies.

• Business unit setup process flow.