In this topic, you will learn how to understand the payables control hierarchy.
Steps:
The PeopleSoft Payables Control Hierarchy is composed of five levels: Business Unit, Voucher Origin, Control Group, Supplier, and Voucher. The hierarchy increases the ease of data entry and allows users to set up defaults in the database. In PeopleSoft Payables, business units are the highest level of a hierarchy of defaults, called the control hierarchy, which facilitates both voucher entry and payment processing.
Step 1When default values are entered and processing rules are selected on the levels that govern this default hierarchy, the system initially validates the information and then validates it again during transaction processing to verify it is using the correct values assigned at the level designated by the user.
Step 2A PeopleSoft Payables business unit is an independent processing entity. Each business unit acts as a separate area of control, representing the primary level at which system tables can be controlled independently.
Depending on business requirements, users can set up business units to share core control tables such as calendars, payment terms, and suppliers. PeopleSoft’s TableSet processing handles this automatically, eliminating the need to maintain multiple sets of data for each business unit.
Step 3Each transaction entered into PeopleSoft Payables must come from a valid origin, such as online or batch, that is defined on the Voucher Origin table. Organizations must have at least one origin, and each user must be associated with an origin. You can set up control values at the voucher origin level to override business unit defaults and automatically appear at lower levels in the control hierarchy.
Step 4In PeopleSoft Payables, control groups are a means of grouping vouchers to maintain tight control over them. Control groups also enable you to post several groups of vouchers in one easy step.
You might also use control groups to divide large numbers of vouchers among data entry clerks while retaining centralized control over voucher processing. You could also use control groups to take advantage of separate processing rules for vouchers from different suppliers for different business units.
Step 5Organizations can define a set of suppliers for each business unit or share suppliers across one or more business units. Suppliers can have multiple addresses and multiple locations.
The free-form address feature provides maximum flexibility for entering even the most complex supplier address. Addresses are the physical addresses of the supplier, whereas locations represent a unique way of doing business. It is at the location level that payment terms and banking information are defined for the supplier.
Suppliers can be associated with other suppliers in the system, and if they are also using PeopleSoft Receivables, they can associate a Payables supplier with a Receivables customer for reporting purposes.
Step 6Vouchers are at the bottom of the hierarchy. Vouchers are unpaid invoices, prepaid invoices, or adjustments entered into the system from voucher origins. They can either be entered manually using the online pages or automatically using batch processes delivered with PeopleSoft Payables. Each voucher is assigned a unique identifier either automatically or manually; the identifier provides a means for tracking all invoices, adjustments, and payments through the system.
PeopleSoft Payables gives organizations maximum control over voucher processing, enabling them to control voucher header information.
The system:
• Checks for duplicate invoices.
• Calculates and confirms taxes.
• Converts the transaction currency to your base currency.
• Assigns default payment terms and payment dates.
Step 7In summary, the control hierarchy is composed of five levels: Business Unit, Origin, Control Group, Vendor, and Voucher. The business unit level is the highest level at which a default can be set up. This facilitates both voucher entry and payment processing.