Appendix: Calculating India Excise, Sales Tax, and VAT in PeopleSoft Billing

This appendix discusses how to:

• Import India excise duty, sales tax, and value-added tax (VAT) information into the PeopleSoft Billing tables.

• Calculate India excise duties, sales tax, and VAT in bill entry.

• Change the status of bill lines with excise duty, sales tax, and VAT.

• Calculate final taxes and print taxes on invoices.

• Prepare to generate India excise, sales tax, and VAT accounting entries.

• Create accounting entries for excise duties, sales tax, and VAT in PeopleSoft Billing.

• Pass excise duties, sales tax, and VAT information to PeopleSoft Receivables.

• Calculate excise duties, sales tax, and VAT for bill adjustments.

• Calculate taxes for returned material authorizations (RMAs) in PeopleSoft Billing.

• Run the Billing Excise, Sales Tax, and VAT Determination process.

• Review Billing Tax Determination and Calculation process errors.

See Also

(IND) Setting Up Excise Duty, Customs Duty, Sales Tax, and VAT

(IND) Processing Customs, Excise Duties, Sales Tax, and VAT for India

Importing Excise Duty, Sales Tax, and VAT Information into the PeopleSoft Billing Tables

PeopleSoft Order Management can pass India excise duty, sales tax, and VAT-related data to the PeopleSoft Billing application through the Billing interface.

Note. The PeopleSoft Billing system does not accept India excise, sales tax, or VAT data on invoices from any source except PeopleSoft Order Management.

This section provides an overview of excise duty, sales tax, and VAT data processing in the Billing interface, and discusses how to:

• Populate the Billing interface tables.

• Define tax parameter default status.

• Correct Billing interface errors.

Understanding Excise Duty, Sales Tax, and VAT Data Processing in the Billing Interface

The Billing interface staging area supports the online bill data structure and stores one or more rows of data for each line of chargeable activity that is sent to PeopleSoft Billing. The type of data that you store in the Billing interface is characterized by one of seven transaction types. The transaction type EXSD represents India excise duty, sales tax, and VAT detail transactions.

The Billing Business Unit Tax Indicator

In PeopleSoft Billing, you can apply only a single method for tax calculation to each invoice. The invoice can be subject to standard taxes, including U.S. sales tax and value-added tax (VAT), subject to third-party taxation when the business unit is associated with a third-party tax vendor, or associated with India tax processing. These methods are mutually exclusive. For example, if PeopleSoft Billing identifies that an invoice requires PeopleSoft VAT processing, the system assumes that the invoice requires no India tax processing.

Note. India VAT is handled by India tax processing.

You must bill sales order shipments with excise, India sales tax, or VAT applicability under a Billing business unit that is associated with an organization's tax location.

For example, consider the following PeopleSoft Inventory, Order Management, and Billing business units called IND01, which are all associated with an organization tax location. Imagine also that the following additional Billing business units exist:

• IND02, which is not associated with an organization tax location.

• FRA01, which is associated with a VAT entity.

If a sales order shipment is associated with the Inventory business unit IND01, you should not bill the sales order shipment under billing business units IND02 or FRA01, because these business units are not associated with an organization tax location. If you bill this sales order shipment under IND02 or FRA01, PeopleSoft Billing does not display or calculate the India taxes correctly for this shipment. Even if previously calculated excise duty for the shipment exists, PeopleSoft Billing does not display the excise duty if the shipment is billed under a business unit that is not associated with an organization tax location.

The correct procedure is to bill the shipment under the Billing business unit IND01, which is tied to an organization tax location. If the PeopleSoft Inventory or Order Management business units are tied to an organization tax location, you must also associate their respective Billing business units to an organization tax location to ensure that the appropriate tax processing occurs in PeopleSoft Billing.

The Billing Interface process or online bill entry determines the type of tax to which the Billing business unit is subject and populates the billing business unit tax indicator (BI_BU_TAX_IND) field with one the following values:

Bill-By Functionality

PeopleSoft Billing uses the bill-by identifier to define how to group billing activity when it is added to a bill through the Billing Interface. You can define the bill-by identifier at the customer, bill source, bill type, and business unit levels.

Use the following fields as bill-by fields when you require India tax processing to ensure that the invoices have bill lines that share the same associated state tax authority:

• SHIP_FROM_BU

• SHIP_TO_CUST_ID

• BUSINESS_UNIT_OM

To associate one excise invoice to one commercial invoice, you must also add EXD_INVOICE_NO as a bill-by field.

See Also

Understanding the Billing Interface Staging Area

Using the Bill-By Identifier with the Billing Interface

Populating the Billing Interface Tables

The following tables describe how the Billing interface staging tables (INTFC_BI, INTFC_BI2, and INTFC_BI_EXSD) are populated by the Populate Billing process (OMBILL). Because PeopleSoft Order Management performs tax determination for excise, sales tax, and VAT, the Populate Billing process populates the related fields that are in the staging table so that the Billing system knows what input parameters are used for the tax determination.

Note. The Billing interface staging table fields that begin with the EXS prefix represent excise, sales tax, and VAT. When the EXS_TAX_TYPE is sales, all EXS fields are populated with sales tax or VAT-related data. When EXS_TAX_TYPE is excise, all EXS fields are populated with excise tax-related data.

See Also

Setting Up the Billing Interface

Determining Tax Parameter Default Status

The Billing Interface process expects all excise, sales tax, and VAT defaults to be passed by PeopleSoft Order Management, for all sales order transactions except RMAs. The Billing Interface process sets an Excise, Sales Tax, and VAT Defaults Applied flag (EXS_DFLTS_APPLIED) to facilitate later processing in PeopleSoft Billing. The interface process sets the value of this flag to one of the following values:

Correcting Billing Interface Errors

To verify data integrity, the Billing Interface process performs edit checks on the data that is presented to the interface staging area. If the Billing Interface process finds an error, it marks the LOAD_STATUS_BI for all related rows as ERR (error). The Billing Interface process also marks the ERROR_STATUS_BI column with a more specific error condition. On the Correct Interface Errors page, review the errors and take the appropriate action to correct the error. The following Billing interface errors table contains information that is specific to India excise duty and sales tax error conditions.

See Also

Correcting Billing Interface Process Errors

Calculating Excise Duties, Sales Tax, and VAT in Bill Entry

This section provides an overview of excise duty, sales tax, and VAT calculation in bill entry and discusses how to review excise duty, sales tax, and VAT details in bill entry.

See Also

Entering Bills Online

Using Express Billing

Understanding Excise Duty, Sales Tax, and VAT Calculation in Bill Entry

Bills that PeopleSoft Order Management and Inventory pass through the Billing interface can have excise duty and sales tax that was previously calculated. A bill line with an associated excise invoice number indicates that excise duty, sales tax, and VAT are calculated outside of the PeopleSoft Billing application. In this scenario, you cannot modify the tax parameters. Parameters such as quantity, unit price, amounts, tax parameters, and tax rate codes are not available for edit.

Adding New Bills in Bill Entry

When you add new bills in bill entry or express bill entry, and the Billing business unit requires India tax processing, PeopleSoft Billing calls the Tax Determination process to determine excise, sales tax, and VAT applicability and to determine the appropriate tax rate codes and components for each bill line. PeopleSoft Billing functionality enables you to modify some tax parameters, including the tax rate codes and the parameters that determine the tax rate codes.

Note. To automatically initiate the algorithm that makes excise, sales tax, and VAT information appear by default on the Standard Billing - Line - Tax/Excise Info page, you must enter a value in the Identifier field when you first add a bill line to a bill that requires India tax processing.

When India sales taxes apply, you must associate all bill lines that are on an invoice with the same sales tax authority code. When you add a bill line with sales tax applicability, the system compares the sales tax or VAT authority code that is returned for the line with the sales tax or VAT authority code that is on the bill header. If the header value is blank, the system populates the header sales tax or VAT authority code with the line value. If the header and line sales tax or VAT authority codes are different, the system displays an error message for the line. To correct an error, you can change the ship-to customer or ship-to customer address. You can also delete the line and add it to a different invoice as long as that invoice has the same associated sales tax or VAT authority.

Modifying Excise Duty, Sales Tax, and VAT on the Bill Header

Use the following table to determine when you can modify excise, sales tax, and VAT information on the bill header and to review the impact that those changes have:

Modifying Excise Duty, Sales Tax, and VAT on Bill Lines

Use the following table to determine when you can modify excise, sales tax, and VAT on the bill line and to review the impact those changes have:

Note. The system calls the Tax Determination process for modifications that are noted in the preceding table only if the tax defaults are determined initially (if EXS_DFLTS_APPLIED = Y). Otherwise, you must click the Get Tax Defaults button to update the excise duty and sales tax rate codes and details with the modifications that are noted in the preceding table.

Reviewing Excise Duty, Sales Tax, and VAT Online

You can review excise duty, sales tax, and VAT information in the bill entry and express bill entry components on the Standard Billing - Line - Tax/Excise Info page, which displays the parameters that determine the tax rate codes, including the tax rate codes and the components that comprise the tax rate codes. When the Order Management system passes a bill line with an associated excise invoice number to the Billing system, the line appears with the previously calculated tax amounts. Bill lines with no associated excise invoice number appear with no tax amounts unless you calculate tax amounts online through bill summary or by running the Pro Forma Pre-process and Finalization process (BIIVC000).

Calculating Taxes in Bill Summary

When a bill requires India tax processing (the business unit tax indicator value is 2), the Bill Summary page displays the total excise duty, the total sales tax, and the VAT amounts. You can click the Calculate Taxes button to call the Tax Calculation process and calculate the excise duty, sales tax, and VAT for corresponding bill lines that are excise or tax applicable.

When the Order Management system passes an excise invoice number and tax amount on a bill line, the Billing system performs no tax calculations for the corresponding bill line. However, the system uses the tax amounts that are on these lines to calculate the total excise, sales tax, and VAT amounts at the bill header level.

Note. Tax calculation bill lines are not included with tax applicability flags that are blank or defined as N, or where the tax rate codes are blank.

Copying Bills

When you copy a bill with excise duty, sales tax, and VAT, the system copies the original bill information, including any discounts, surcharges, notes, tax details, and accounting distributions, from one bill to the next. The system does not copy the excise invoice number and excise line number. It creates the new bill with a status of new, a blank invoice date, and a current date in the Date Bill Added field.

Calculating Taxes for Bill Adjustments

PeopleSoft Billing performs no tax calculations on adjustment credit bills or on adjustment credit lines, because credit bills and credit lines have taxes that are calculated for the original bill. However, the system copies the existing taxes and uses the tax amounts that are on these lines to calculate the total excise, sales tax, and VAT amounts that are at the bill header level.

See Also

Copying Bill Information

Pages Used to Review and Calculate Excise Duties, Sales Tax, and VAT in Bill Entry

Reviewing Excise Duty, Sales Tax, and VAT Details in Bill Entry

Access the Standard Billing - Line - Tax/Excise Info page (Billing, Maintain Bills, Standard Billing, Line - Tax/Excise Info).

Note. If the business unit tax indicator that is at the bill header has a value other than 2 (a value of 2 in the BI_BU_TAX_IND field indicates that India tax processing is required), no fields that are on this page are available for entry.

Excise/Sales Tax/VAT Details

In this grid, the system displays tax component information, including tax percentages and amounts, when these values are previously calculated for the bill line.

Changing the Status of Bill Lines with Excise Duty, Sales Tax, and VAT

When a bill is changed online or in batch processing to ready for invoicing status, the system performs validations to ensure that the tax applicability, tax rate codes, and tax components were previously determined (if the bill is excise duty, sales tax, or VAT applicable). The Finalization process requires that this information be present when it calculates the final taxes on the bill.

When a bill requires India tax processing (the business unit tax indicator value is 2), the following conditions must be met to save a bill:

• If the line is excise tax applicable and an excise tax rate code exists on the line, excise tax details must also exist on the BI_LINE_EXS_DTL for the excise rate code.

  You can enter the excise tax rate code manually and click the Refresh button to get the excise tax details, or click the Get Tax Defaults button on the Standard Billing - Line - Excise/Sales Tax Info page.

• If the line is sales tax or VAT applicable and a tax rate code exists on the line, sales tax or VAT details must also exist on the BI_LINE_EXS_DTL for the tax rate code.

  You can enter the tax rate code manually and click the Refresh button to get the sales tax or VAT details, or click the Get Tax Defaults button on the Standard Billing - Line - Tax/Excise Info page.

The following additional conditions must be met to change the status of a bill to ready:

• If the excise invoice number (BI_LINE. EXD_INVOICE_NO) is not populated:

  • The excise tax applicable flag (BI_LINE. EXD_APPL_FLG) and tax applicable flag (BI_LINE. STX_APPL_FLG) must be populated.

    To populate the excise and tax applicable flags, you can click the Get Tax Defaults button on the Standard Billing - Line - Tax/Excise Info page.

  • If you set the excise tax applicable flag or the tax applicable flag to yes, the tax defaults applied flag (BI_LINE. EXD_DFLTS_APPLIED) must also be set to yes.

    To populate the tax defaults applied flag, you can click the Get Tax Defaults button on the Standard Billing - Line - Tax/Excise Info page.

  • If you set the excise tax applicable flag or the tax applicable flag to yes, you must populate the tax transaction type (BI_LINE. EXS_TAX_TXN_TYPE).

    To populate the tax transaction type, you can manually enter the tax transaction type or click the Get Tax Defaults button that is on the Standard Billing - Line - Tax/Excise Info page.

  • If the bill line is excise tax applicable and the default excise tax rate code is blank, the system displays a warning message. You can enter an excise tax rate code on the bill line or accept the blank value.

  • If the bill line is tax applicable and the default sales tax rate code is blank, the system displays a warning message. You can enter a sales tax rate code on the bill line or accept the blank value.

• If the excise invoice number is populated, the system assumes that the line has all the tax information that is necessary for ready status.

  PeopleSoft Billing does not calculate taxes for these bill lines.

• All bill lines that are tax applicable and are grouped on the same invoice must share the same tax authority code.

Note. Tax amounts are not calculated in bill entry. To review initial tax amounts for bills without an associated excise invoice number, calculate taxes on the Bill Summary page by clicking the Calculate Taxes button. You can also generate a pro forma invoice to review the calculated preliminary taxes.

Calculating Final Taxes and Printing Taxes on Invoices

This section provides overviews of final tax calculation and invoice tax detail display.

Understanding Final Tax Calculation

If an invoice requires India excise duty, sales tax, and VAT calculation, the Finalization process (BIIVC000) calls the Tax Calculation common process and updates the invoice total amounts for those lines with no associated excise invoice number.

When the Finalization process calculates final taxes, all information that the Tax Calculation process requires must be available and saved in the appropriate PeopleSoft Billing tables. If this information is not available, the Finalization process marks the affected invoices in error, and requires you to provide the necessary information before the invoices can be finalized.

Note. If a bill line has no associated excise invoice number and amount, and both tax applicability flags are defined as no, the Finalization process does not include the bill line in excise duty, sales tax, or VAT calculation.

Understanding Invoice Tax Detail Display

PeopleSoft Billing invoice print processes retrieve the following India tax processing detail fields for display on the commercial invoice:

• The customer's central excise, central sales tax, and local sales tax registration numbers from the CUST_ADDR_EXS table.

  Processing stops if:

  1. Excise duties exist but no central excise registration number exists.

  2. Sales taxes exist but no central or local sales tax registration numbers exist.

• All detail lines from the BI_LINE_EXS_DTL.

  The tax type can be excise tax, central sales tax, local sales tax, or VAT, and any given invoice can have both excise and sales or VAT taxes.

  Excise duties appear first, followed by central sales tax, local sales tax, and VAT.

  Invoice print processes populate the tax percentage column for an associated component code only when the calculation scheme is defined as percentage.

• The total excise duty and tax amounts from the BI_HDR table.

  If no excise duties or taxes applied to the bill line, no excise duties or tax totals appear on the invoice.

  If excise duties or taxes applied to the bill line net to zero, excise duties or tax totals appear as zero on the invoice.

• The form names (where form direction is buyer to seller) from the STX_FORM_CD_DTL table.

Note. The system prints no India tax processing details on Crystal, PeopleSoft Project Costing invoice formats, PeopleSoft Contracts invoice formats and XML Publisher invoice formats.

Preparing to Generate India Excise, Sales Tax, and VAT Accounting Entries

The PeopleSoft Billing Pre-Load process (BIPRELD) creates accounting entry staging rows in the BI_ACCT_LN_STG table for excise and tax information, to be picked up by the Load GL process (BILDGL01) and the Load AR process (BILDAR01) when PeopleSoft Billing creates accounting entries. The Pre-Load process inserts one excise tax distribution row (EXD) for each excise duty applicable bill line, and one sales tax distribution row (STX) for each sales tax component detail row that is on the BI_LINE_EXS_DTL table. The Pre-Load process obtains ChartField values for the excise accounting entries from the tax location definition, and obtains ChartField values for sales tax accounting entries from the tax component code definition. If PeopleSoft Billing does not create accounting entries, the Pre-Load process does not create any entries in the BI_ACCT_LN_STG for any bills.

Note. PeopleSoft Billing performs no ChartField inheritance processing or combination edits for excise or India tax accounting entries.

Creating Accounting Entries for Excise Duties, Sales Tax, and VAT in PeopleSoft Billing

The PeopleSoft Billing Load GL Accounting Entries process (BILDGL01) inserts accounting rows for excise duty accounting entries (EXD) and sales tax accounting entries (STX) into the BI_ACCT_ENTRY table. The Load GL process creates an excise duty tax distribution row in BI_ACCT_ENTRY for each excise duty applicable row in BI_LINE, and creates a sales tax distribution row in BI_ACCT_ENTRY for each sales tax applicable row in BI_LINE.

See Also

Integrating with PeopleSoft Receivables, General Ledger, and Accounts Payable

Passing Excise Duties, Sales Tax, and VAT Information to PeopleSoft Receivables

The PeopleSoft Billing Load AR process (BILDAR01) populates rows in the PeopleSoft Receivable pending item tables PENDING_TAX and PENDING_TAX_DTL, and populates columns in the PENDING_ITEM table to support excise duty, sales tax, and VAT processing.

Regardless of how you define the AR level on the Installation Options - Billing - GL/AR Options page (either Header is AR Open Item or Bill Line is AR Open Item), if the bill line has an excise applicable value of Yes (EXD_APPL_FLG = Y) or a tax applicable value of Yes (STX_APPL_FLG = Y) the Load AR process inserts an excise duty and tax row in the PENDING_TAX table for each excise duty and tax line on the BI_LINE table, and inserts a row in the PENDING_TAX_DTL for each excise duty and tax detail line on the BI_LINE_EXS_DTL table.

Additionally, the process inserts rows into the PENDING_DST table for the ChartField distribution based on the excise duty and tax detail entries. The Load AR process inserts rows for all bill lines with appropriate tax calculation codes, even if the calculated excise and tax amounts are zero.

When PeopleSoft Billing creates accounting entries, the process populates the PENDING_DST table with ChartField values that it selects from the BI_ACCT_LN_STG table, which is populated by the Billing Preload process (BIPRELD). If neither PeopleSoft Billing or Receivables create accounting entries, the process obtains excise and tax accounting entry ChartField values from:

• The tax location definition, when excise is applicable.

• The tax component code definition, when tax is applicable.

Note. PeopleSoft Billing performs no ChartField inheritance processing or combination edits for excise or tax accounting entries.

See Also

Integrating with PeopleSoft Receivables, General Ledger, and Accounts Payable

Calculating Excise Duties, Sales Tax, and VAT for Bill Adjustments

In the Billing system, you can create a full bill adjustment or a line adjustment. When creating a full bill adjustment, you can create just a full bill credit, or create a full bill credit with a full bill rebill. You can modify the rebill to reflect any differences that are necessary from the original bill.

When creating a line adjustment, you can create a credit line for a selected line, or create a credit line and a rebill line for a selected line. Additionally, when creating line adjustments, you can create a net adjustment for a selected line. When creating a net adjustment, you copy the initial values of the original bill line and modify those specific values on the line to make a net change to the original billing. For example, if an original bill line contains ten items at 2 USD each, but you intend the bill line to contain nine items at 2 USD each, you can make a net adjustment to credit one item at 2 USD each.

Calculating Excise Duty, Sales Tax, and VAT on Credit Bills and Credit Lines

The Bill Adjustment process credits the entire amount, including taxes. Whenever you create a credit adjustment (full bill credit or credit line), the system uses the taxes that are copied from the original invoice. You can make no modifications on a credit bill or adjustment credit line, and PeopleSoft Billing performs no tax calculations on adjustment credit bills or adjustment credit lines. However, the system uses the tax amounts that are on these lines to calculate the total excise and tax amounts at the bill header level.

Calculating Excise Duty, Sales Tax, and VAT on Rebills and Rebill Lines

To determine the impact of modifications that are made in bill entry to a rebill, refer the tables that are in the Modifying Excise Duty and Sales Tax on the Bill Header and Modifying Excise Duty and Sales Tax on Bill Lines sections.

Calculating Taxes for RMAs in PeopleSoft Billing

You can create RMA activity in the Order Management system by referring to sales order history. For this activity, the PeopleSoft Billing RMA Adjustment process (BIRMAADJ) copies all tax parameters that are from the original invoice when creating the adjustment invoice activity. However, if the original invoice contains an excise invoice number, this information is not copied onto the adjustment invoice.

RMA activity can also be created without reference to sales order history. In this case, PeopleSoft Billing determines the tax rules and calculates the taxes. When creating the adjustment invoice activity for these RMA lines, you must initiate the Tax Determination process after the RMA adjustment process to apply default parameters for those RMA invoices with no tax defaults applied. You can elect to always run the Tax Determination process when creating RMA adjustments. The process does not select bill lines with tax details that are supplied from the sales order history.

Note. The Tax Determination process performs no tax calculations. In PeopleSoft Billing, the Finalization process calls the Tax Calculation process to calculate final taxes.

Pages Used to Calculate Taxes for RMAs in PeopleSoft Billing

See Also

Working With PeopleSoft Order Management

Managing Returned Material

Running the Billing Excise, Sales Tax, and VAT Determination Process

Run the Billing Excise, Sales Tax, and VAT Determination batch Application Engine process (BIEXSDFLT) following the RMA Adjustment (BIRMAADJ) and Billing Interface (BIIF0001) processes to perform excise and sales tax determination for invoices that are created by the RMA adjustment process. The Finalization process (BIIVC000) does not select invoices where India excise, sales tax, and VAT defaults have not been applied (EXS_DFLTS_APPLIED = N). The Billing Excise, Sales Tax, and VAT Determination process does not perform tax calculations; it calls the common Tax Determination process for default parameters.

This section provides an overview of the Billing Excise, Sales Tax, and VAT Determination process and lists pages used to run the Billing Excise, Sales Tax, and VAT Determination process.

Note. You can initiate the Billing Excise, Sales Tax, and VAT Determination process from three different pages. See Pages Used to Run the Billing Excise, Sales Tax, and VAT Determination Process.

The Billing Excise, Sales Tax and VAT determination process should be run only for RMA adjustment invoices. (Standard invoices for sales orders will have already had India excise and sales tax information supplied by default through either Order Management or Inventory processes).

Understanding the Billing Excise, Sales Tax, and VAT Determination Process

The Billing Excise, Sales Tax, and VAT Determination process:

1. Identifies bill headers and bill lines that need excise and sales tax determination, and updates those bill header and bill line records with a process instance number.

2. Populates the EXS_TXDLB_TAO table and calls the common Tax Determination process. Prior to calling this function, the calling application must:

   • Set the tax calculation date (TAX_CALC_DT) for each selected bill line. The calling application populates TAX_CALC_DT with BI_LINE. SHIP_DATE if it is not null, or populates it with BI_HDR. INVOICE_DT if it is not null; otherwise, the application populates it with the system date.

   • Set Trading Partner Type (EXS_TPRTNR_TYPE) to C (customer).

   • Set Trading Partner SetID (EXS_TPRTNR_SETID) to the setID that is associated with the Billing business unit.

   • Set Trading Partner ID (EXS_TPRTNR_ID) to BI_LINE. SHIP_TO_CUST_ID if it is not blank; otherwise, set it to BI_HDR. BILL_TO_CUST_ID.

   • Set Trading Partner Location (ADDRESS_SEQ_NUM) to BI_LINE. SHIP_TO_ADDR_NUM if it is not blank; otherwise, set it to BI_HDR. ADDRESS_SEQ_NUM.

   • Set the Item and Product Kit Use flag (EXS_PROD_KIT_USE) to P (product kit), I (items), or N (not applicable), in that order.

   • Set Item or Product SetID (EXS_ITM_PROD_SETID). Use the Inventory business unit for items and the Order Management business unit for product kits, or leave it blank if neither product kit nor Inventory item ID is available.

   • Set, in the following order, Item or Product Kit ID (EXS_ITM_PROD_ID) to Product Kit (PRODUCT_KIT_ID) or Inventory Item ID (INV_ITEM_ID), or leave it blank if neither product kit nor item ID is available.

   • Determine which business unit value to use for tax determination, and set the ORG_BU_TYPE value accordingly. If an Inventory business unit exists, use the Inventory business unit. If no Inventory business unit exists, use the Order Management business unit. If no Order Management business unit exists, use the Billing business unit.

   • Determine ship-from country, ship-from state, ship-to country, and ship-to state.

3. Retrieves the Tax Determination output parameters from the transaction line parent table (EXS_TXDLB_TAO) and passes them to the bill line table (BI_LINE).

4. Inserts a row into the application transaction child detail table (BI_LINE_EXS_DTL) for each row that is returned by the Tax Determination process in the transaction line child detail temporary table.

5. Performs the necessary validations for each transaction line.

6. Sets the Excise, Sales Tax, and VAT Defaults Applied flag (EXS_DFLTS_APPLIED) to reflect the value that the Tax Determination common process returns.

   • Sets EXS_DFLTS_APPLIED to Y when either excise, sales tax, or VAT is applicable and the bill line has no error.

   • Leaves EXS_DFLTS_APPLIED unchanged if a bill line has an error

7. Logs messages to report the number of bills that are processed successfully and the number of bills that are in error.

8. Performs final updates.

   • Sets the bill header's bill status to pending if the bill header is marked with an error.

   • Resets the process instance to zero for bill headers that are marked for excise, sales tax, and VAT determination processing (see step 2).

   • Resets the process instance to zero for bill lines that are marked for excise, sales tax, and VAT determination processing (see step 2).

Page Used to Run the Billing Excise, Sales Tax, and VAT Determination Process

Reviewing Billing Tax Determination and Calculation Process Errors

The following table contains tax determination and calculation error statuses written to ERROR_STATUS_BI that are specific to India tax processing: