Your Accounting Entry Approach

You need to make several decisions about how you use the accounting entry capabilities of PeopleSoft Receivables, including:

  • How your billing system and PeopleSoft Receivables work together or separately to send accounting entries to your general ledger system.

  • Whether you create accounting entries for pending items that are imported from your billing system directly in your billing interface program or enable PeopleSoft Receivables to create them for you.

  • How you provide accounting entry information for items that you convert from your existing system.

These decisions depend on whether you use more than one accounts receivable line for each pending item.

General Ledger Interface Approaches

Three common patterns are available for importing receivables-type accounting entry information.

  • Method 1: Billing to general ledger.

    Your billing system creates detailed accounting entries for receivables and revenue-related ChartField combinations and distributes them to your general ledger. PeopleSoft Receivables stores enough information about the receivable and VAT accounting entries that are sent to the general ledger to be able to support the creation of accounting entries during subsequent processing.

  • Method 2: Control accounting.

    The billing system creates and distributes detailed revenue-related accounting entries to your general ledger, but offsets these entries using a receivables control ChartField combination. Then PeopleSoft Receivables creates accounting entries for billing-related transactions from the offset to the control account and updates the receivables ChartField combination.

  • Method 3: Billing to receivables to general ledger.

    PeopleSoft Billing does not send accounting entry information to general ledger. The information goes directly to the PeopleSoft Receivables system, which distributes accounting entries to the general ledger and also uses them for subsequent processing.

Method 1: Billing to General Ledger

If you use this approach, the purpose of the accounting entries that PeopleSoft Receivables stores is to support the creation of subsequent accounting entries.

If you use only one receivables ChartField combination for each pending item, you can choose to have the Pending Group Generator Application Engine process (AR_PGG_SERV) generate these accounting entries for you by using an item entry template. You establish the baseline for subsequent processing, but prevent distribution by indicating on the item entry template that PeopleSoft Receivables will not distribute the accounting entries to the general ledger.

If you require more than one receivables ChartField combination for each pending item, PeopleSoft Receivables will not generate these accounting entries for you. Instead, you must populate PS_PENDING_DST with one or more lines that correspond to the open balance that is in each receivables ChartField combination to offset those amounts at payment or maintenance time. Use a flag on PS_PENDING_DST to indicate that PeopleSoft Receivables should not distribute the accounting entries to the general ledger. Because PeopleSoft Receivables does not distribute the accounting entries that you create, you can import only the lines that you need. A balanced entry is not required.

Method 2: Control Accounting

If you use this approach, the accounting entries that PeopleSoft Receivables stores have two purposes:

  • To be distributed to the general ledger to clear the receivables control ChartField combination.

  • To support the creation of subsequent accounting entries.

If you use only one receivables ChartField combination for each pending item, you can choose to have the Pending Group Generator process create these accounting entries for you through the use of an item entry template. The accounting template limits you to only two lines that are used for a balanced entry. Indicate on the template that PeopleSoft Receivables distributes the accounting entries to PeopleSoft General Ledger.

If you require more than one receivables ChartField combination for each pending item, PeopleSoft Receivables does not generate these accounting entries for you. You must populate PS_PENDING_DST directly as part of your billing interface program, indicating that PeopleSoft Receivables distributes the accounting entries to the general ledger. In this case, you must provide a fully balanced set of accounting entries.

Method 3: PeopleSoft Billing to PeopleSoft Receivables to PeopleSoft General Ledger

If you use this approach, the accounting entries that PeopleSoft Receivables stores have two purposes:

  • To be distributed to the general ledger.

  • To support the creation of subsequent accounting entries.

If you use only one receivables ChartField combination for each pending item and you have only one offsetting line, you can choose to have the Pending Group Generator process create these accounting entries for you through the use of an item entry template. Because you are limited to only two lines on the accounting entry template, you will not likely use this approach to create accounting entries that have the level of detail that the billing system usually provides. Indicate on the template that the accounting entries are distributed to the general ledger.

If you require more than one receivables ChartField combination for each pending item or more than one offsetting line, PeopleSoft Receivables cannot generate these accounting entries for you. Populate PS_PENDING_DST directly as part of your billing interface program, indicating that PeopleSoft Receivables distributes the accounting entries to the general ledger. In this case, you must provide a fully balanced set of accounting entries.

Conversion Implications

When you convert open or closed items from your current receivables system, you must establish the accounting entries that are required for subsequent processing, but you will not distribute them to the general ledger. This is similar to the ongoing processing that occurs in method 1, billing to general ledger.

If you do not distribute the accounting entries for converted items but you want to distribute them when importing ongoing billing information, you do not have to establish different entry types. Specify that PeopleSoft Receivables distributes accounting entries to the general ledger. Then for your conversion groups only, set values to prevent the resulting accounting entries from being distributed to the general ledger.

Populating PS_PENDING_DST

You can choose to have your interface programs populate PS_PENDING_DST concurrently with PS_GROUP_CONTROL and PS_PENDING_ITEM. This gives you control of the accounting entries so that entries that are too complicated for the templates to generate can be brought in from an interacting system.

Note:

If you decide to create accounting entries within PeopleSoft Receivables as part of your background conversion or interface processing, you must supply additional field values on the pending item to support this processing.

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