This chapter provides an overview of value-added taxes (VAT) and describes how to:
Define VAT transaction types.
Set up VAT authorities and tax codes.
Define VAT countries.
Set up VAT entities.
Define VAT use types and apportionment.
Establish VAT defaults.
Manage VAT on interunit transactions.
Load the VAT transaction table.
Generate VAT reports.
This section provides an overview of Oracle's PeopleSoft Enterprise VAT functionality and discusses:
Taxable status and VAT rates.
VAT reporting and accounting.
VAT recoverability.
VAT defaults.
Producing VAT reports.
VAT environment setup.
Under many different names VAT is in use in over 130 countries around the world. VAT is a governmental sales tax, a straight percentage that is added to the cost of a good or service. VAT can be inclusive, in which case VAT is included in the price of a good or service, or exclusive, in which case VAT needs to be added to the price of a good or service.
The core concept of VAT is very simple. At each step in the supply chain, VAT is calculated by multiplying the cost of the good or service by the tax rate, and charged by the seller to the buyer, while at each step in the supply chain except the last, the buyer can normally recover the VAT incurred. VAT charged by the seller and remitted to the government is referred to as output VAT, while VAT incurred by the purchaser and potentially recoverable from the government is referred to as input VAT. However, the application of the tax can be quite complex, as each country has specific requirements. PeopleSoft global VAT functionality fully supports these specific requirements.
In order to implement VAT effectively in Oracle's PeopleSoft Enterprise Financials and Supply Chain applications, it is essential that you fully understand the legislation governing VAT in the applicable countries prior to implementation.
To use VAT in PeopleSoft applications, you must first set up the VAT environment. You can then create various VAT documents, such as sales orders, customer invoices, purchase orders, and vouchers. You can also record VAT for employee expense reports, asset retirements (in case of sale), bank fees incurred, and general ledger journal entries.
The VAT on these documents and transactions is calculated based upon the information you enter. For example, the VAT codes you enter determine the VAT rates the system uses to calculate the VAT amount. In PeopleSoft Purchasing, Payables, Treasury, Expenses, and General Ledger, the VAT use type you enter partly determines the amount of VAT that is recoverable.
The VAT information on all transactions and documents is loaded into the VAT transaction table by a background process and by a second process into the VAT reporting tables, from which you can create VAT returns and other VAT reports.
PeopleSoft software enables an organization to effectively administer VAT by:
Charging VAT on invoices to customers, recording VAT collected from customers, and paying and recording VAT charged by suppliers.
Determining what percentage of VAT paid on purchases is recoverable to offset the amount of output VAT that must be sent to VAT authorities.
Accounting for and reporting both the VAT paid on purchases and the VAT collected on sales.
In order to do this, you must be able to enter transactions into the system, correctly calculating and recording the VAT. You must also be able to report VAT correctly on the VAT return as well as account for it correctly.
In PeopleSoft Enterprise applications, you identify the taxable status for a given transaction by specifying the VAT applicability for a transaction line. The following system-defined values are provided:
VAT Applicability |
Description |
Taxable |
VAT is chargeable either at a zero or non-zero rate. |
Exempt |
Item is non-taxable or exempt from VAT and no VAT is charged. |
Exonerated |
Used when the purchasing organization has been exonerated from paying VAT. This is the same as taxable at a zero rate. |
Outside Scope of VAT |
Item is outside the scope of VAT and no VAT is charged. |
Suspended |
Used when the purchasing organization has been granted suspension from paying VAT. This is the same as taxable at a zero-rate. |
VAT-Only |
This is only applicable within PeopleSoft Payables when you enter a third-party voucher and within PeopleSoft General Ledger when you enter a journal line against a VAT account. |
Not Applicable |
This is only valid for transactions that are completely non-VAT applicable. |
For taxable lines, VAT must be calculated at the rate applicable to the good or service being sold or purchased, as defined by the tax authorities in each country.
Within the PeopleSoft VAT environment you define VAT rates at the VAT authority. One or more VAT authorities may be combined under one VAT code. The total of the VAT rates specified on all the associated authorities is the VAT rate applicable to that VAT code. A VAT code is applied to a transaction line, which enables VAT for that line to be calculated at the rate specified for that VAT code.
There are three key VAT setup elements that facilitate VAT accounting and reporting: VAT codes, VAT accounting entry types, and VAT transaction types. These are used in combination by the PeopleSoft VAT report definitions to determine the information to be included on each line of the VAT return. To facilitate reconciliation between the general ledger and the VAT return, these are also used in combination to determine the ChartFields to which VAT amounts are posted.
You use VAT codes to specify the rate at which VAT is calculated.
The VAT rate is frequently the key to reporting VAT because VAT amounts must often be reported separately by VAT rate on a VAT return. Therefore, the VAT code is part of the reporting definition.
To facilitate reconciliation between the general ledger and the VAT return, VAT amounts are usually recorded separately by VAT rate in the general ledger. For this reason, you define VAT accounting information (also referred to as the VAT accounting template) by VAT code.
In addition to requiring that VAT amounts be reported separately by VAT rate, your VAT return may require that VAT amounts for certain types of transactions be reported separately. For example, you may need to report adjustments made to VAT or VAT recorded on advance payments separately.
Again, to facilitate reconciliation between the general ledger and the VAT return, VAT amounts are usually recorded separately in the general ledger for each of the different types of transactions.
VAT accounting entry types are one of the mechanisms used to enable the correct reporting and accounting of these transactions. These are system-defined values that identify the different types of VAT accounting entries that may be required (for example, input recoverable, input discount adjustments, output, output on credit memos, or output for purchases).
When you define VAT reports, VAT accounting entry types are used to identify the general types of transactions that should be included on any given line on the VAT return. For example, you might specify that input recoverable VAT amounts should be included on one line of the return while output VAT amounts should be included on another line.
For accounting purposes, you define VAT accounting information for each of the VAT accounting entry types defined in the VAT accounting template. The accounting entry types available in this template are determined by the PeopleSoft applications you have installed. Not all of the VAT accounting entry types apply to your organization, so you may simply define dummy VAT accounts for those that do not apply.
Note. This chapter includes a table that lists the delivered VAT accounting entry types.
You use VAT transaction types to classify and categorize transactions at a more detailed level for both VAT reporting and accounting. These are specified for each transaction line when you enter a transaction.
You define the VAT transaction types you need for your VAT setup. PeopleSoft software also provides a set of VAT transaction types as sample data.
In your VAT reporting definition, you use VAT transaction types to fine-tune the information you want to include on a given line on the VAT return. You can do this by specifically including, or effectively excluding, certain types of transactions. For example, if you are located within the European Union (EU), you may need to report self-assessed output VAT for intra-EU acquisitions on one line in the return, while reporting self-assessed output VAT for services provided by foreign vendors on another line. For both lines on the report, you indicate that you want to include transaction lines with a VAT accounting entry type indicating VAT Output on Purchase. For the first line, you also indicate that you want to include only those transactions that are flagged with a VAT transaction type indicating an intra-EU acquisition. For the second line, you indicate that you want to include only lines flagged with a VAT transaction type indicating a service provided by a foreign vendor.
For accounting purposes, VAT accounting information defined for each given VAT accounting entry type is applicable for all VAT transaction types unless it is overridden at the more detailed VAT transaction type level. But in the cases where you need to record VAT amounts in the general ledger at the more detailed level, you can indicate that VAT amounts for a given VAT accounting entry type be posted to different sets of ChartFields defined for each specific VAT transaction type.
Another key component you must put in place are the rules that determine whether or not input or purchase VAT may be recovered, and if so, how much.
Whether or not the VAT paid on any given purchase is recoverable depends on two factors: the nature of the purchased goods or services and how the purchased goods or services are to be used. In some countries, you cannot fully recover the VAT paid for specific items, regardless of how they are used. For example, in the United Kingdom, you are unable to recover input VAT incurred on business entertainment expenses regardless of the taxable status of your business activities. You can achieve this within PeopleSoft VAT defaults setup by defining inventory items and expense types that are not 100% recoverable.
If the goods or services are used in a taxable activity (for example, activity that ultimately results in the production of a taxable product), then VAT paid on the purchase of those goods or services is recoverable. But if the goods or services are used in a non-taxable or exempt activity (for example, activity that ultimately results in the production of a non-taxable product), then the VAT paid on the purchase of those goods or services is not recoverable. Sometimes purchased goods or services are used in a mixture of taxable and exempt activity. In this case, the VAT paid on the purchase of those goods or services would be partially recoverable.
In Canada, certain public service organizations, categorized as public service body types, are eligible to reclaim an additional portion of their input VAT that would normally be non-recoverable. This is called a rebate. Each Canadian VAT authority has established its own set of rebate percentages by public service body type to be used in the calculation of VAT rebates.
Two ways you define the usage portion of recoverability are the VAT use type and VAT apportionment.
The VAT use type identifies the end use of a given purchase by defining how much of a given activity or use is taxable, and how much of that activity is exempt, based on the tax status of the goods or services ultimately produced from those procured. In general, you specify the use type for each transaction line, thereby indicating how the purchased good or service on that line is used.
You can specify the ratio of taxable activity to non-taxable activity directly on the use type, or you can specify that mixed apportionment be used to define the ratio of taxable to non-taxable activity at the ChartField level, if you are required to calculate recoverability at a detailed level.
The VAT use type must also be linked to a public service body type in order for public service type organizations in Canada to retrieve the appropriate rebate percentage for transactions with exempt activity.
VAT apportionment is based on the idea that the usage of a given good or service can be determined based on the business unit or the ChartFields to which the purchase or expense is charged. In other words, usage can be determined based on which business unit, department, or project might be using the purchased item.
You do not need to set up VAT apportionment information unless you are required to calculate your recoverable VAT at a very detailed level. If you elect to use VAT apportionment to calculate recoverability, you first determine a priority 1 ChartField and a priority 2 ChartField to be used in determining recoverability (for example, department or project). You may choose to define the ratio of taxable to non-taxable activity only at the business unit level. VAT apportionment information defined at the business unit level can be overridden by information defined at the more detailed ChartField level. When defining VAT information for either the priority 1 or priority 2 ChartField, you specify the ratio of taxable activity to non-taxable activity for any given ChartField value (or portion of a ChartField value—for example, all department IDs that begin with 10).
When a VAT use type that indicates VAT apportionment is specified for a line, the system looks for a match in the VAT apportionment data for the value specified first in the priority 1 ChartField, and if not found, then second in the priority 2 ChartField. If a match is still not found, the system looks for a match in the business unit. If a match is found, the system uses the ratio of taxable to exempt activity defined for that ChartField or business unit value to calculate the recovery and rebate. However, if no match is found, the system treats the line as 100% non-recoverable. For this reason, it is imperative that you specify enough VAT apportionment data so that a match is always found.
The system uses either the transaction business unit, the transaction's general ledger business unit, or the distribution line general ledger business unit to access VAT apportionment information, based on the type of business unit you define as the VAT apportionment control for the PeopleSoft Payables, Purchasing, General Ledger, Expenses, and Treasury business unit VAT drivers in the common VAT defaults table.
Calculating Recovery and Rebate
In addition to the rebate rates defined for public service bodies (PSB), and any recovery rate that may have been defined for the individual item or expense, the system uses the percentages defined for taxable and exempt activity to calculate the recovery and rebate percentages that are then used to calculate the recoverable and rebate VAT as follows:
VAT recovery percent is calculated as ((item recovery percent/100) x (taxable activity/100)) x 100
VAT recovery amount is then calculated as (gross VAT amount x (VAT recovery percent/100))
VAT rebate percent is calculated as ((item recovery percent/100) x (exempt activity percent/100)) x PSB type rebate rate
VAT rebate amount is then calculated as (gross VAT amount x (VAT rebate percent /100))
For example, for a school in Ontario, Canada, the rebate rate is 68%. If the school incurred input VAT in the amount of CAD 250.00 for an item that had been defined as recoverable at 50%, and was associated with a VAT use type with a taxable activity percent of 75%, the result would be the following:
VAT recovery percent = ((50/100) x (75/100)) x 100 = (.5 x .75) x100 = 37.5 = 37.5% VAT recovery amount = 250.00 x (37.5/100) = 250.00 x .375 = 93.75 VAT rebate percent = ((50/100) x (25/100)) x 68 = (.5 x .25) x 68 = 8.5 = 8.5% VAT rebate amount = 250.00 x (8.5/100) = 250.00 x .085 = 21.25
(When you calculate the VAT rebate amount, the rebate percentage is applied against the gross VAT amount, rather than the non-recoverable VAT amount, because the exempt activity percentage has already been taken into account when you originally calculated the rebate percentage.)
Let's look at another example involving the calculation of the PSB type rebate rate with a VAT code that is made up of multiple VAT authorities, each with its own individual rebate rate. In this example the rebate rate is calculated as (sum (VAT authority rebate rate x VAT authority tax rate) for each VAT authority within the VAT Code) / (sum (VAT authority tax rate) for each VAT authority within the VAT Code).
If our school had been in New Brunswick, the PSB rebate rate would be calculated as
((68 x 7) + (0 x 8)) / (7 + 8) = 476 / 15 = 31.73
Based on the VAT rules that apply in different business scenarios, the system is designed to automatically populate as much VAT information about a transaction as possible. In order for the system to determine which scenario and VAT rules are applicable to a given transaction, you need to have set up various VAT defaults, and other VAT-related pieces of information.
PeopleSoft software delivers a VAT defaulting structure that:
Defines most of the setup structure as predefined system data, including the fields relevant to VAT, the VAT drivers such as items, products, customers, vendors, and business units for which certain VAT defaults can be specified and the transaction-specific defaulting hierarchies.
Stores as user data the individual factors that comprise much of the VAT rules, for example, how VAT must be calculated, when VAT must be declared, how VAT must be recorded, and whether or not purchase VAT may be recovered. Data considered to be an attribute of VAT drivers, for example customer VAT registration information, is stored on the application VAT defaults table, while all VAT default data is stored in a common VAT defaults table.
Contains the logic dictated by the various VAT authorities to determine the VAT information that is conditionally based on a combination of factors. For example, once all the country, VAT registration, and VAT exception data is retrieved, the system can figure out the VAT treatment. The system automatically populates as much VAT information on a transaction as possible, either retrieved from the stored defaults or derived from the logic, based on the VAT values already on the transaction.
Note. This chapter contains a table listing the VAT drivers for which you can define defaults and the associated VAT controls and defaults.
VAT Defaulting and the Organizational Structure
VAT drivers and the organizational structure affect VAT transactions:
The VAT country is the highest level in the VAT structure. You identify all countries that have a VAT system, and in which you have a presence or a trading partner. The system uses these VAT country definitions to determine whether or not VAT is applicable to a given transaction and, if so, which rules should apply. |
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VAT entities represent the level within your organization at which the VAT return is filed. Each VAT entity includes one or more PeopleSoft General Ledger business units. For each VAT entity, VAT registration and other country-specific information may be defined for each country in which the VAT entity is registered. You may also indicate whether your organization has been granted any VAT exceptions (exoneration or suspension) from paying VAT. |
|
PeopleSoft General Ledger business units provide the link between the application business units and the VAT entity. One or more PeopleSoft General Ledger business units constitute a VAT entity. All PeopleSoft Asset Management, Order Management, Billing, Receivables, Purchasing, Payables, Treasury, and Expenses application business units mapped to the PeopleSoft General Ledger business unit or units in the entity are VAT-enabled. Transactions entered for PeopleSoft General Ledger, Asset Management, Billing, Receivables, Payables, Treasury and Expenses are available for reporting by that VAT entity. |
|
Vendors, customers, and banks |
These represent your trading partners. You enter VAT registration information for the customers, vendors, and banks that are registered for VAT. You can also specify if your customers have been granted any VAT exceptions (exoneration or suspension) from paying VAT, or if VAT suspension is recognized and supported by your vendors or banks. |
Application-specific VAT drivers |
These comprise the levels in the default hierarchy that are specific to each application that processes VAT transactions. Examples include voucher origin and voucher control group for PeopleSoft Payables, bill source and bill type for PeopleSoft Billing, and journal source for PeopleSoft General Ledger. |
Transaction line identifiers and groups |
These represent the goods and services being procured, incurred, received, sold, and reported. Examples include inventory items, item categories, expense types, products, product groups, charge codes, charge code groups, and general ledger accounts. |
VAT Reporting and Registration Countries
Before the system can determine the VAT treatment, it must first determine the VAT reporting country and, if applicable, the VAT registration country for the trading partner.
For sales and procurement transactions where the physical nature is goods, this is done by determining whether or not each trading partner is registered in either the ship to and/or ship from countries taking into account the rules that apply both within and outside of the European Union.
For sales and procurement transactions where the physical nature is services, the process is more complex. For freight transport services taking place within the European Union, the system again determines whether each trading partner is registered in either the ship to and/or ship from countries. For other types of services, the system looks at where each trading partner has established their business, where the service is physically performed, and where the VAT is most often liable for the type of service being provided.
If the system is unable to determine the VAT reporting country based on the applicable rules, it uses the VAT registration country designated as the home country for the VAT entity. If no country has been defined as the home country, the system displays an error message. A valid VAT reporting country must be specified in order to allow processing to continue.
The VAT reporting country is also important because it is the main driver for retrieval of VAT defaults from the VAT defaults table.
Services Place of Supply Country
The place of the supply country is another factor in determining the VAT treatment for sales and procurement transactions with a physical nature of services. This is the country in which the VAT is liable for the service. The system determines the place of supply country by looking at the countries in which both trading partners are registered for VAT, the countries in which both trading partners have established their business, the type of service being provided (freight transport or other), and where the VAT is most often liable for the type of service being provided.
You also need to consider if the purchasing organization has been granted some type of exemption from paying VAT. These exemptions, referred to within PeopleSoft software as VAT exceptions, take the form of either an exoneration or suspension from paying VAT. An organization may be exonerated from paying VAT because of the nature of its business. For example, a government agency may be granted exoneration from paying VAT. Or, in certain countries such as France, an organization may be granted a temporary suspension from paying VAT because it regularly has a much higher level of recoverable input VAT (as opposed to output VAT) and would always receive a large VAT refund. By granting suspension from paying the input VAT, the refund is either reduced or eliminated.
You can specify if a VAT exception is applicable to a customer or VAT entity, as the purchasing organization and, if so, if that exception is an exoneration or suspension from paying VAT. If a valid exception is applicable to a transaction, the transaction uses this information to apply the appropriate default zero-rate VAT code and VAT transaction type.
Once the VAT reporting country is known, the main driver for processing VAT on sales and procurement transactions is the VAT treatment. This determines which default values should be applied, and also controls, to some extent, the availability of some VAT-related fields.
In addition, for many countries there is a requirement to report the sale and purchase of goods separately from services. To support this requirement, PeopleSoft software enables you to distinguish between transactions involving goods and transactions involving services.
In the case of a sale of goods for example, when the system determines the VAT treatment, it looks first at the combination of the ship-from and ship-to countries. The system then looks at the countries in which the buyer and seller are registered for VAT. If the ship-from and ship-to countries are the same, and in procurement, if the vendor is registered for VAT in that country, the transaction is treated as domestic. If the vendor is not registered for VAT, the transaction is treated as outside the scope of VAT. If the ship-from and ship-to countries are different, the system determines if both countries are located within the European Union. If so, the system looks at the VAT registration for each trading partner to determine if the transaction should be treated as an intra-EU sale or purchase, distance sale, domestic, or outside the scope of VAT. If either or both of the countries are located outside of the European Union, and in procurement, if the vendor is not registered in the ship-to country, then the transaction would be treated as an export or import. If the vendor is registered in the ship-to country, the transaction is again treated as domestic.
The determination of the treatment of services for the purposes of VAT varies a great deal more than for the treatment for goods. For services, when both the supplier and the customer are located in the same country and the services are physically performed in that country, the treatment is the same as the domestic VAT treatment for goods. However, the VAT treatment for services differs from the VAT treatment for goods when the services are performed by a foreign supplier (a supplier not registered in the customer’s country).
In the case of services that are performed by a foreign supplier, there are no tangible goods that can be stopped at the border. In order to deal with this, the requirement in many countries is for the customer to self-assess the VAT due on the supply of services. While this procedure is similar to that for intra-EU acquisition, there are differences. Intra-EU acquisition only applies when goods are moving between countries within the European Union and when both trading partners are registered for VAT in the European Union. The requirement to self-assess VAT on services performed by foreign suppliers exists for both European Union and non-European Union countries. Additionally, for customers in European Union countries, VAT may be self-assessed on services performed by any supplier that is not located and not registered in the customer’s country—whether or not that supplier is located in the European Union.
Part of the process of determining whether the customer must self assess the VAT is determining the place of supply of the service, as described above. For service purchases, if the VAT reporting country is the same as the place of supply country, the purchasing organization records VAT on the purchase transaction. Whether this is self-assessed or not depends on whether the vendor is also registered in the place of supply country. If the place of supply country is different from the VAT reporting country, the transaction is recorded as outside of scope. For the sales of services, if the VAT reporting country is the same as the place of supply country, VAT is charged to the customer, as applicable. However, if the place of supply country is different from the VAT reporting country, the sale transaction is treated as either outside of scope or zero-rated, based on how the VAT reporting country is defined in the VAT country table.
Within PeopleSoft software, detail VAT treatment values on the transaction lines are used for applying the precise defaults applicable to the transaction lines. Each of these detail VAT treatment values are associated with a VAT treatment group. The system tracks the VAT treatment group on the header for PeopleSoft Billing, Receivables, and Payables transactions. The VAT treatment group allows individual transaction lines to be grouped together into invoices during batch processes and validates the detail line VAT treatment values on the transaction lines.
Once the VAT reporting country, VAT exception type, and VAT treatment for a transaction are known, the system is able to retrieve the defaults from the defaults table based on the VAT drivers on the transaction. In general, most of the fields contained within the VAT Controls groups boxes on the transaction entry VAT pages are populated based on values retrieved for the VAT reporting country from the defaults table.
To populate the values within the VAT Details group box on the transaction line entry VAT pages, the system retrieves the VAT applicable value from the defaults table, and uses this along with VAT exception type and VAT treatment to determine the VAT applicability for the transaction line.
Once the VAT applicability for a line is derived, that value, along with the VAT treatment, is used in combination with the transaction-specific default hierarchy to retrieve the default VAT code and VAT transaction type values respectively from the common VAT defaults table.
PeopleSoft software VAT default structure is specifically designed to hold the most frequently used value on the driver at the top of the hierarchy and exceptions to this on drivers at lower levels. Default processing on transactions looks through the hierarchy starting at the bottom and stops once a value is found.
The system also makes some initial, basic assumptions about VAT suspension and VAT recoverability that would be applicable to each line:
Within procurement, prior to taking usage into account, all items are assumed to be 100% recoverable.
When recording foreign VAT in expenses, all expense types are assumed to be 100% reclaimable.
For transactions where the purchasing organization has been granted suspension from paying VAT, all lines are assumed to be subject to VAT suspension.
However, you can define exceptions to these assumptions:
You may define any item or expense type that, due to the nature of the item or expense, is not 100% recoverable.
You may define any expense type that, due to the nature of the expense when recording foreign VAT, is not 100% reclaimable.
You can define any sales line identifiers (products, charge codes, discounts, surcharges, inventory item, labor type or generic identifiers), sales line identifier groups (VAT product groups, charge code VAT groups, CRM service type or inventory item group), asset classes, Treasury accounting templates, items or item categories that are not subject to VAT suspension.
In other words, you can define certain VAT driver values that may still be taxable, regardless of whether the buyer has been granted suspension.
Note. Run the VAT 3000 report after setting up defaults to validate VAT default setup data and to expose any inconsistencies and missing default values.
Overriding VAT Defaults and Settings
In some very rare, specific cases, the system might not be able to default all VAT values as desired. Therefore, to enable the correct recording of a transaction, you can always override any default value on the transaction entry VAT pages. This is discussed in greater detail later in this chapter and in the application-specific PeopleBooks.
See Overriding VAT Defaults and Controls on Transaction Entry VAT Pages.
Once you enter transactions into the system, you must be able to report those transactions on a VAT return. PeopleSoft software provides processes and report definitions to enable you to do this.
VAT Transaction Loader |
Once you have run all the individual processes within each product to finalize the transactions, you run the VAT Transaction Loader process to load the VAT information into the VAT transaction table. |
VAT Report Definitions |
VAT report definitions enable you to define the information that should appear on each line of the VAT report and are used by the VAT Report Extract process to produce VAT reports. PeopleSoft software delivers predefined reports for several countries, or you may create your own. Note. A VAT report definition is necessary for setting up and running the VAT Transaction Report. |
VAT Report Extract |
The VAT Report Extract process uses your VAT report definitions to determine which transactions should be included on a given VAT report, and to copy information for the specific report instance from the VAT transaction table into the VAT reporting tables. |
Printing VAT Reports |
After you have run the VAT Report Extract, you can print reports. You have the option of running the report either as a draft, final, or reprint. |
VAT Transaction Report |
This report provides a detailed list of the transactions that are accumulated in the various lines and boxes of a VAT return and is used to audit the return values. The report can be run from the same page as the VAT return at the same time or it can be run before or after the VAT return. However, it must be run after the VAT report extract. Note. A VAT report definition is necessary for the setting up and running of the VAT Transaction Report. The transaction report uses the same and related tables as the VAT report definition but the transaction report setup is accessed through a separate component and page. |
VAT Reconciliation |
PeopleSoft software also provides several VAT reconciliation reports as well as audit file extracts to assist in reconciling your VAT or conducting audits. |
For the system to track and process VAT, you must first set up some basic information: VAT transaction types, VAT authorities, VAT codes and their associated VAT accounting templates, VAT countries, VAT entities, VAT use types, and VAT default. Each piece builds upon the next so, for the basic setup, it’s important to implement each piece in the following order:
VAT transaction types.
VAT rates, VAT codes, and VAT accounting information.
VAT countries.
VAT entities.
VAT use types.
VAT apportionment if you have complex requirements for recovering input VAT.
VAT defaults.
In addition to the information you must set up, PeopleSoft software delivers multiple accounting entry types for VAT accounting and reporting with every application. You cannot add your own.
Note. You should use only one setID for all your VAT setup. If VAT codes and transaction types are set up under multiple setIDs, an invalid VAT code or transaction type could default onto a transaction entered for a business unit that is using a different setID for VAT.
This table lists the VAT accounting entry types:
Accounting Entry Type |
Description |
PeopleSoft Applications |
VAT Reporting |
Accounting |
VI |
VAT Input Identifies input VAT transaction lines in the VAT transaction table. These lines are flagged as either VIR on the source transactions in PeopleSoft Payables and PeopleSoft Expenses, but may be flagged as VIR, VIN, or VIB on the original source transactions in PeopleSoft General Ledger. These items are flagged as VI on the original source transactions within PeopleSoft Treasury. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
Yes |
No |
VIB |
VAT Input Rebate Identifies accounting entries for input VAT rebate amounts. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
No |
Yes |
VIC |
VAT Input Credit Identifies input VAT credit transaction lines in the VAT transaction table. These lines are flagged as VICR on the source transactions in PeopleSoft Payables. |
PeopleSoft Payables |
Yes |
No |
VICB |
VAT Input Rebate Credit Identifies accounting entries for input VAT rebate credit amounts. |
PeopleSoft Payables |
No |
Yes |
VICN |
VAT Input Non-Recoverable Credit Identifies the accounting entry for non-recoverable input VAT credit. |
PeopleSoft Payables |
No |
Yes |
VICR |
VAT Input Recoverable Credit Identifies the accounting entry for recoverable input VAT credit. When a VAT transaction is loaded to the transaction table, it is stored with the VAT distribution account type of VIC. |
PeopleSoft Payables |
No |
Yes |
VID |
VAT Input Discount Identifies adjustments to input VAT in the VAT transaction table due to taking a cash discount when VAT is recalculated at time of payment. These lines are flagged as VIDR on the original source transactions. |
PeopleSoft Payables |
Yes |
No |
VIDA |
VAT Discount Taken on Purchases Identifies the accounting entry that backs out the portion of the discount attributable to input VAT from the discount earned account when you recalculate VAT at the time of payment and a cash discount is taken. |
Peoplesoft Payables |
No |
Yes |
VIDN |
VAT Input Discount Non-Recoverable Identifies the accounting entry for the non-recoverable portion of the input VAT discount adjustment. |
PeopleSoft Payables |
No |
Yes |
VIDR |
VAT Input Discount Recoverable Identifies the accounting entry for the recoverable portion of the input VAT discount adjustment. These entries are stored in the VAT transaction table as VID. |
PeopleSoft Payables |
No |
Yes |
VIIN |
VAT Input Intermediate Non-Recoverable Identifies the intermediate accounting entry created at invoice time for non-recoverable input VAT when VAT is declared at time of payment. |
PeopleSoft Payables, General Ledger |
Used for Italian VAT register only. |
Yes |
VIIR |
VAT Input Intermediate Recoverable Identifies the intermediate accounting entry created at invoice time for recoverable input VAT when VAT is declared at time of payment. |
PeopleSoft Payables, General Ledger |
Used for Italian VAT register only. |
Yes |
VIN |
VAT Input Non-Recoverable Identifies the accounting entry for non-recoverable input VAT. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
No |
Yes |
VINT |
VAT Input Non-Taxable Identifies non-taxable transaction lines in the VAT transaction table that are generated when the VAT applicability is exempt or outside the scope of VAT. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
Yes |
No |
VIR |
VAT Input Recoverable Identifies the accounting entry for recoverable input VAT. For PeopleSoft Payables, Expenses, and General Ledger, when a VAT transaction is loaded to the transaction table, it is stored with the VAT distribution account type of VI. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
No |
Yes |
VIW |
VAT Input Write-Off Identifies the VAT transaction entries in the VAT transaction table for the write-off of input VAT. These lines are flagged as VIWR on the original source transactions. |
PeopleSoft Payables |
Yes |
No |
VIWB |
VAT Input Rebate Write-Off Identifies the accounting entry for the write-off of rebate input VAT. |
PeopleSoft Payables |
No |
Yes |
VIWN |
VAT Input Write-Off Non-Recoverable Identifies the accounting entry for the write-off of non-recoverable input VAT. |
PeopleSoft Payables |
No |
Yes |
VIWR |
VAT Input Write-Off Recoverable Identifies the accounting entry for the write-off of recoverable input VAT. |
PeopleSoft Payables |
No |
Yes |
VO |
VAT Output Identifies the accounting entry for output VAT and to identify the output VAT transaction lines in the VAT transaction table. |
PeopleSoft Billing, Receivables, General Ledger, Asset Management |
Yes |
Yes |
VOCP |
VAT Output for Purchases Credit Identifies the accounting entry created for a credit against output VAT when you record both input and output VAT for a purchase. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Payables |
Yes |
Yes |
VIRC |
VAT Input Reclaimable Identifies the accounting entry for reclaimable foreign VAT recorded on employee expense sheets. |
PeopleSoft Expenses |
No |
Yes |
VOD |
VAT Output Discount Identifies the accounting entry for adjustments to output VAT due to taking a cash discount when VAT is recalculated at time of payment. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Receivables |
Yes |
Yes |
VOI |
VAT Output Intermediate Identifies the intermediate accounting entry created at invoice time for output VAT when VAT is declared at time of payment. |
PeopleSoft Billing, Receivables, General Ledger |
Used for Italian VAT register only. |
Yes |
VONT |
VAT Output Non-Taxable Identifies non-taxable transaction entries in the VAT transaction table that are generated when the VAT applicability is exempt or outside the scope of VAT. |
PeopleSoft Receivables, Billing, General Ledger, Asset Management |
Yes |
No |
VOP |
VAT Output for Purchases Identifies the accounting entry created for output VAT when you record both input and output VAT for a purchase. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Payables, Treasury Management, General Ledger |
Yes |
Yes |
VOW |
VAT Output Write-Off Identifies the accounting entry for the write-off of output VAT. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Receivables |
Yes |
Yes |
VOWP |
VAT Output for Purchases Write-Off Identifies the accounting entry created for write-off of output VAT when you record both input and output VAT for a purchase. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Payables |
Yes |
Yes |
VODP |
VAT Output Purchase Adjustment Identifies the accounting entry for the adjustment to output VAT when you record both input and output VAT for a purchase, and for recalculating VAT at the time of payment when a cash discount is taken. |
PeopleSoft Payables |
Yes |
Yes |
VOIP |
VAT Output Intermediate for Purchase Identifies the intermediate accounting entry created at invoice time for output VAT when you record both input and output VAT on a purchase and when VAT is declared at time of payment. |
PeopleSoft Payables |
Used for Italian VAT register only. |
Yes |
VOAP |
VAT Output Advance Payments Identifies the accounting entry for output VAT on an advance payment. |
PeopleSoft Receivables |
Yes |
Yes |
VOC |
VAT Output for Credits Identifies the accounting for output VAT when a credit note is generated from PeopleSoft Billing. |
PeopleSoft Billing, Receivables |
Yes |
Yes |
VORE |
VAT Output Asset Reinstatement Identifies the accounting entry for output VAT for asset reinstatement. |
PeopleSoft Asset Management |
Yes |
Yes |
To define VAT transaction types, use the VAT Transaction Type component (VAT_TXN_CD).
This section provides an overview of VAT transaction type setup and discusses how to set up VAT transactions types.
See Also
VAT transaction types classify each transaction for use in VAT reporting and accounting.
The account to which VAT is posted and the box on the VAT return in which a transaction amount is included are determined by the combination of the VAT code, VAT transaction type, and the VAT accounting entry type.
In VAT report definitions, VAT transaction types are used to include (or exclude) specific types of transactions in a line of a report, such as domestic purchases or exports.
You can set up VAT accounting to apply to all VAT transaction types by default, or to apply to specific VAT transaction types.
Example: VAT for Asset Purchases
To account for and separately report VAT paid on the purchase of fixed assets, create a VAT transaction type of ASPU for asset purchase. Then define the VAT accounting information that applies specifically to the applicable VAT code, the VAT accounting entry type, and the new VAT transaction type of ASPU. Finally, update your VAT report definition so that only transactions with a VAT transaction type of ASPU appear on the asset purchases line.
Note. VAT transaction types do not control any transaction processing. They are only used to categorize transactions for accounting and reporting. For example, simply specifying EXEMPT as the VAT transaction type for your customer does not prevent your customer from being charged VAT on the invoice. Whether or not the customer is charged VAT depends on the VAT treatment, the VAT applicability of the transaction line, and the taxable status of the customer.
Page Name |
Object Name |
Navigation |
Usage |
VAT_TXN_CD |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Transaction Type |
Create or update VAT transaction types. |
Access the VAT Transaction Type page.
Enter a description and short description.
For EU VAT transactions, specifies if and how an output VAT transaction should be reported on the EC sales list report, which lists a company's intra-European community sales. For VAT transaction types related to input VAT, select Not Applicable. For output VAT, select Normal EC Sales, Ship After Process, Ship for Process, Triangulation, or for non-EU-related transaction types Not Applicable. |
To set up VAT authorities and tax codes, use the following components:
Express VAT Code (EX_TAX_CD_VAT).
Value Added Tax Authority (TAX_AUTHORITY_VAT).
Value Added Tax Code (TAX_CODE_VAT).
VAT Accounts by Business Unit (TAX_BU_CODE_VAT).
Use the TAX_CODE_VAT component interface to load data into the tables for the Value Added Tax Code component, and use the TAX_BU_CODE_VAT component interface to load data into the tables for the VAT Accounts by Business Unit component.
This section provides an overview of VAT authority and tax code setup and discusses how to:
Define VAT codes using the Express VAT Code page.
Define VAT authorities.
Define VAT codes using the Value Added Tax Code page.
Define VAT accounting information.
Specify ChartFields for VAT transactions types using Express Setup.
Enter VAT ChartFields for VAT transaction type exceptions.
Define VAT accounts by general ledger business unit (optional).
Defining VAT rates, VAT codes, and VAT accounting involves:
Defining VAT rates on the VAT authority tables.
Defining VAT codes by associating the VAT authorities with those VAT codes.
Specifying VAT accounting information for each VAT code.
Defining VAT Authorities
You create one VAT authority for each different VAT rate that you require, then associate one or more of these VAT authorities with a VAT code. The VAT rate associated with the VAT code is the total of the rates specified on all the associated VAT authorities. In most countries, you would specify only one VAT authority with a given VAT code. However, in some cases, you may want to indicate that a single VAT rate really consists of more than one component; and in this case, you would specify multiple VAT authorities for the VAT code. An example would be Canada's Harmonized Sales Tax (HST), which is comprised of a federal component of Goods and Services Tax (GST) and a provincial component for those provinces participating in the HST.
Defining VAT Codes and VAT Accounting Information
In many cases, to balance VAT account balances in PeopleSoft General Ledger to your VAT return, VAT must be accounted for separately for each VAT rate. For this reason, when you define each VAT code, you must also define the VAT accounts to be used for posting the VAT recorded at that rate. For each VAT code, VAT accounting information must be specified for each of the VAT accounting entry types. These VAT accounting entry types represent the different types of VAT accounting entries that may be required throughout the system.
When defined at the VAT accounting entry type level, the accounting information defined for a given accounting entry type applies to the combination of that VAT accounting entry type and all VAT transaction types. However, if you need to account for VAT at a more detailed level, you can override the VAT accounting information defined at the VAT accounting entry type level and, instead, define the accounting information for specific VAT transaction types.
Methods for VAT Authority, VAT Code, and VAT Accounting Setup
PeopleSoft software provides two methods for setting up VAT authorities, VAT codes, and VAT accounting information:
Use the Express VAT Code page to define the VAT authority and VAT code at the same time.
You use this method if you only need to define a single VAT authority for each VAT code. You simply enter the VAT rate you want associated with the VAT code and the system automatically creates the VAT authority. With this method, you specify default input VAT and output VAT accounts, and these defaults are populated to the appropriate VAT accounting entry types. At this point, you need to update only the information for individual VAT accounting entry types where the default does not apply.
Use the VAT Authority page to define VAT authorities and then define VAT codes and associate the VAT authorities using the Value Added Tax Code component.
With this method you set up your accounting information on the Value Added Tax Code component. You can either use the Express Setup page to specify default input VAT and output VAT accounting that the system populates to all VAT accounting entry types, or you can individually update the VAT accounting information for each VAT accounting entry type.
If you are a public service type organization in Canada, you may also be entitled to a rebate on your input VAT. VAT rebates are calculated based on statutory rebate rates defined for each type of public service organization or Public Service Body by each Canadian VAT authority. Because VAT codes for Canada may be made up of more than one VAT authority, you define the rebate rates for each applicable Public Service Body Type using the Value Added Tax Authority component.
If you are using more than one general ledger business unit and more than one chart of accounts, you can also set up VAT accounts by VAT code and general ledger business unit. You can specify a default set of input and output VAT ChartFields, or set up exceptions for specific VAT transaction types.
Note. You should define a single setID for VAT information. This single setID enables access to only one chart of accounts when you define VAT account information by VAT code. When you define VAT accounts by VAT code and general ledger business unit, the system uses the business unit value to access the ChartFields. This way, you can define VAT accounting information in each different chart of accounts as needed.
Page Name |
Object Name |
Navigation |
Usage |
EX_TAX_CD_VAT |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Express VAT Code |
Quickly set up a VAT code by entering the required tax rate and having the system automatically create the associated VAT authority. |
|
TAX_AUTHORITY_VAT |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Authority, Value Added Tax Authorities |
Create VAT authority tax percentages by effective date. Create one VAT authority for each different tax rate. |
|
TAX_AUTHORITY_PSB |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Authority, Value Added Tax Authorities, Public Service Body Type |
For Canada, specify rebate rates for each applicable public service body type for a VAT authority. |
|
TAX_CODE_VAT |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Code, Value Added Tax Code |
Create or update VAT codes and select which VAT authorities to associate with the VAT code. |
|
TAX_ACCTG_VAT |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Code, Value Added Tax Code, Accounting Information |
Specify accounts and ChartFields used when recording VAT for a VAT code. |
|
TAX_ACCTG_EXPRESS |
Click the Express Setup link on the Accounting Information page. |
Specify a default set of input and output VAT ChartFields for a VAT code. |
|
TAX_ACCTG_VAT_DTL |
Click a VAT accounting entry type on the Accounting Information page or on the VAT Accounts by Business Unit page. |
Define ChartFields for specific VAT transaction type exceptions. |
|
TAX_BUACT_VAT |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Accounts by Business Unit, VAT Accounts by Business Unit |
Set up VAT accounts by VAT code and general ledger business unit. |
|
TAX_BUACT_EXPRESS |
Click the Express Setup link on the VAT Accounts by Business Unit page. |
Specify a default set of input and output VAT ChartFields for a VAT code and general ledger business unit. |
Access the Express VAT Code page.
Enter the VAT code you are adding, a description and short description
Note. If you have PeopleSoft Billing, the short description prints on the bills.
Effective Date |
Effective date for the tax percentage. |
Percent |
Enter the tax rate as a percentage. |
Tax Authority |
When you save this page, the system automatically assigns a tax authority and populates this field. |
Input and Output |
Enter the default account for input and output tax in the Account group box. You can also enter a default account for input and output tax in the Alt Account (alternate account) group box. |
Note. After you create a VAT code using this page, use the VAT authority and VAT code setup pages to complete setup of VAT the authority and tax code and to make any adjustments. For example, for Canada, you can set rebate rates for each public service body.
Access the Value Added Tax Authorities page.
Enter a description and short description.
Enter the effective date, status, and tax percent. You may add multiple rows to this page enabling you to enter new values if tax rates change.
Note. Create a different tax authority for each VAT rate used in a country.
Establishing Public Service Body Type Rebates (CAN)
For Canadian public service organizations, access the Public Service Body Type page.
VAT PSB Type (VAT public service body type) |
Select the appropriate public service body type. Valid values are: Charitable, Colleges, Hospital, Municipal, Non-Profit, School, and University. |
VAT Rebate Rate |
Enter the percentage set by Canadian law for rebates on input (non-recoverable) VAT. |
Note. You must create at least one VAT use type using the VAT Use Type component for each public service body type that you create.
Access the Value Added Tax Code page.
SetID and VAT Tax Code |
Enter the setID and VAT tax code. |
Percent |
Displays the total percentage based on the selected tax authority or authorities entered in the Authority Information group box. |
Description and Short Description |
Enter a description and short description. If you have PeopleSoft Billing, the short description prints on the bills. |
Authority |
Select the tax authority to which this VAT code is linked. A description and the associated tax percentage display. |
Note. You can associate one or more VAT authorities with a VAT code. The VAT rate associated with the VAT code is the total of the rates specified for the associated VAT authorities. For example, if you include two VAT authorities under a single VAT code, the first at 7 percent and the second at 8 percent, the rates combine for a total of 15 percent.
Usually you set up one tax authority for each VAT code. If you need to link more than one VAT authority to one tax code, add more rows.
The total percentage (at the top of the page) updates automatically whenever you add or modify VAT authorities and whenever you update the tax authority tables.
Access the Value Added Tax Code - Accounting Information page.
Express Setup |
Click to access the VAT Accounting Express Setup page to quickly set up default values for input and output VAT ChartFields. The system applies these defaults to all the applicable VAT accounting entry types. |
VAT Accounting Entry Type |
Lists all the VAT accounting entries that apply to the PeopleSoft applications that you installed. For example, if your installation includes only sales-related applications (such as PeopleSoft Order Management, Billing, and Receivables), you see only accounting entry types that are related to output VAT on sales. Clicking on any of the VAT accounting entry types listed opens the VAT Accounting Exceptions page on which you can define specific ChartFields for VAT transaction type exceptions. Note. You can specify a single set of ChartFields for a VAT code using the Accounting Information or Express Setup page, and the system uses those values for all VAT transaction types used with that VAT code. However, if a certain type of transaction must be reported separately, then it is easier to reconcile the VAT reports to the general ledger if these transactions are posted to separate ChartFields. |
All Values |
Select to display all values when you click account. Otherwise the system only displays those accounts that have been flagged in PeopleSoft General Ledger as VAT accounts. |
Account |
You must provide values for all the account ChartFields listed. You cannot save the page without recording an account number for each available field. If a particular account type is not applicable in your environment based on the applications installed, populate the Account field with a dummy value. |
Alt Act (alternate account), Oper Unit (operating unit), Fund, Dept (department), Program, Class, Bud Ref (budget reference), Product, Project, Affiliate, Fund Affil (fund affiliate), and Oper Unit Affil (operating unit affiliate) |
These are optional ChartFields that you can populate as needed. |
Access the VAT Accounting Express Setup page.
Setup Input VAT |
Select to specify the ChartField information to be used for recording input VAT. |
Setup Output VAT |
Select to specify the ChartField information to be used for recording output VAT. |
Specify the appropriate ChartField values. Click OK to return to the Accounting Information page.
Access the VAT Accounting Exceptions page.
Type |
VAT transaction type for which you want to define an exception. |
All Values |
If you do not select this check box, you see only those accounts that have been flagged in PeopleSoft General Ledger as VAT accounts. Select the check box if you want to view all account values. |
Enter the ChartField information you want to modify for the account type.
Click OK to save your changes and return to the Accounting Information page.
Access the VAT Accounts by Business Unit page.
Delete |
Click to delete all entries for this combination of general ledger business unit and VAT code. For example, if you enter a set of defaults for a general ledger business unit and later decide this is not necessary, you would access this page for the general ledger business unit and use the Delete button to delete all entries. |
Express Setup |
Click to access the VAT Accounting Express Setup page to quickly set up default values for input and output VAT ChartFields. The system applies these defaults to all the applicable VAT accounting entry types. |
VAT Accounting Entry Type |
Lists all the VAT accounting entries that apply to the PeopleSoft applications that you installed. For example, if your installation includes only sales-related applications (such as PeopleSoft Order Management, Billing, and Receivables), you see only accounting entry types that are related to output VAT on sales. Clicking on any of the VAT accounting entry types listed opens the VAT Accounting Exceptions page on which you can define specific ChartFields for VAT transaction type exceptions. Note. You can specify a single set of ChartFields for a VAT code using the Accounting Information or Express Setup page, and the system uses those values for all VAT transaction types used with that VAT code. However, if a certain type of transaction must be reported separately, then it is easier to reconcile the VAT reports to the general ledger if these transactions are posted to separate ChartFields. |
All Values |
Select to display all values when you click account. Otherwise the system displays only those accounts that have been flagged in PeopleSoft General Ledger as VAT accounts. |
Account |
You must provide values for all the account ChartFields listed. You cannot save the page without recording an account number for each available field. If a particular account type is not applicable in your environment based on the applications installed, populate the Account field with a dummy value. |
Alt Act (alternate account), Oper Unit (operating unit), Fund, Dept (department), Program, Class, Bud Ref (budget reference), Product, Project, Affiliate, Fund Affil (fund affiliate), and Oper Unit Affil (operating unit affiliate) |
These are optional ChartFields that you can populate as needed. |
To define VAT countries, use the VAT Country Definition component (COUNTRY_VAT).
This section discusses how to define VAT countries.
Page Name |
Object Name |
Navigation |
Usage |
COUNTRY_VAT_PNL |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Country Options |
Define countries in which you or your trading partners are located and which are subject to VAT. |
Access the VAT Country Options page.
VAT Return ID Type |
Specify the type of VAT registration ID that the system should use when filling out your VAT return. If you use your VAT registration ID, select VAT. If you use a local tax ID, select Local. You define the IDs on the VAT entity. |
EC Sales List ID Type |
If your organization uses the EC sales list report, specify the type of VAT registration ID that the system should use on the report. If you use your EU VAT Registration ID, select VAT. If you use a local tax ID, select Local. |
Treat Exported Service As |
Use to define the handling of transactions for the sale of international services. Specify the treatment as either Zero-Rate or Outside the scope of VAT. |
Service For Foreign Buyer |
For services supplied domestically to a foreign buyer, specify whether to treat this service as a Domestic transaction or as a deemed Export. |
Record VAT on Import Goods As |
For imported goods, specify whether to record the VAT as Inpt/Outpt (input/output) VAT to self-assess the VAT, or Input Only, which is assumed to be zero because the customs VAT is recorded on a third-party voucher. |
Use VAT Suspension |
Select if this country grants suspension from VAT to qualifying organizations. |
Track VAT by Province, Track VAT by Department, or Track VAT by Bundesland |
Select if this country tracks VAT at a subcountry level. Note. The exact wording of this field depends on how you defined the state label for this country on the main Country page. |
VAT Default |
Click this link to access the VAT Defaults Setup page. The system transfers you directly to the VAT Defaults Setup component with the applicable fields for the VAT country driver and entered VAT country. Here you can specify VAT defaults for the country. Note. This is the same page you can access using the VAT Defaults Setup component described later in this chapter. |
See Also
Setting Up and Maintaining VAT Defaults
To set up VAT entities, use the VAT Entity ID component (VAT_ENTITY_ID).
Use the VAT_ENTITY_ID component interface to load data into the tables for the VAT Entity ID component.
This section provides an overview of VAT entity setup and discusses how to:
Enter VAT entity identification information.
Specify VAT report addresses.
Define VAT exceptions.
Define VAT report details.
VAT entities are the level within your organization at which the VAT return is filed. You can associate one or more PeopleSoft General Ledger business units with a VAT entity. The PeopleSoft Asset Management, Billing, Receivables, Purchasing, Payables, Expenses, Treasury, and, indirectly, Order Management business units associated with those general ledger business units are then VAT-enabled and all of the transactions for PeopleSoft Asset Management, Billing, Receivables, Payables, Expenses, and Treasury are available for reporting by the VAT entity.
Because the VAT entity is the entity that reports VAT, the following parameters related to filing the VAT return are recorded here:
VAT addresses.
VAT exceptions (exoneration or suspension).
VAT report details
Intrastat report details.
Here’s how you set up VAT entities:
Create a VAT entity.
A VAT entity can have multiple business units associated with it, but a general ledger business unit cannot be associated with more than one VAT entity.
Define the address to be used by the organization.
Indicate if the VAT entity is exempt from paying VAT in a particular country.
VAT entities are purchasing organizations, so they are sometimes granted an exemption from paying VAT because of the nature of their business. The exemption may be temporary or permanent. For example, most governments grant government agencies a permanent exoneration from paying VAT because the agencies are part of the government. In France, a VAT entity may be granted a temporary suspension from paying VAT if it regularly receives a large VAT refund. The government may grant a temporary suspension to reduce or eliminate the refund.
Define VAT report details, such as the contact information printed on reports and the process used to run reports.
Page Name |
Object Name |
Navigation |
Usage |
VAT_ENTITY_ID |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Entity, Identification |
Define or update VAT entities used to report VAT. |
|
VAT_ENT_ADDR_SEC |
Click the VAT Addresses link on the Identification page. |
Specify VAT report addresses. |
|
VAT_ENT_EXCPTN_SEC |
Click the Exception Details link on the Identification page. |
Indicate if the VAT entity has been granted an exoneration or suspension from paying VAT in this country. |
|
VAT_ENT_VATRPT_SEC |
Click the VAT Report Details link on the Identification page. |
Define the contact information you want printed on your VAT reports and the processes used to generate your reports. |
Access the Identification page.
VAT Entity |
Code identifying the VAT reporting entity. |
Description and Short Description |
Enter a description and short description. |
Use this group box to specify every country where this VAT entity is registered. To add more countries, add more rows. You may only select from countries defined on the VAT Country Definition page.
Country |
Select the country in which this VAT entity is registered. |
Name 1 and Name 2 |
Enter the names used by the VAT entity in a country. |
Home Country |
If selected, designates the home country. If you enter multiple countries, only one county may be the home country. |
VAT Registration ID |
The two-character country code for this country displays to the left of this field, so you do not need to include this code as part of your ID. For European Community countries, the registration ID you enter here prints on each invoice for intra-EC sales. |
Administrative ID |
Used in reports. For France, use Siren.. For Australia, use the GST branch ID, if applicable. For Canada, use the account identifier. |
Local VAT ID |
Enter if required. In most countries, the VAT registration ID and the local VAT ID are the same. |
Region |
Region in which the entity is located. |
Location SetID and Location |
Location and location setID for this entity. |
Accounting Scheme |
Specifies how you account for VAT in conjunction with the VAT declaration point. Non-cash (Accrual) is used when the declaration point is at invoice, delivery, or accounting date and Cash Accounting when the declaration point is at payment. Note. This field is for informational purposes only and is used on the Australian BAS report. |
VAT Default |
Click to access the VAT Defaults Setup page. The system transfers you directly to the VAT Defaults Setup component with the applicable fields for the VAT entity registration driver and entered VAT entity. Here you can specify VAT defaulting for the entity. Note. This is the same page you can access using the VAT Defaults Setup component described later in this chapter. |
VAT Addresses |
Click to access the VAT Report Addresses page on which you can indicate the address to use on the VAT return. |
Exception Details |
Click to access the VAT Entity - Exceptions page on which you can indicate if the VAT entity should be permanently or temporarily excused from paying VAT. |
VAT Report Details |
Click to access the VAT Entity - VAT Reports page on which you can enter the contact name, telephone number, and other identifying information you want printed on reports. You can also use this page to select the processes used to generate reports. |
Intrastat Report Details |
Click to access the Intrastat Reporting Details page on which you can enter the contact name, telephone number, and other identifying information you want printed on reports. You can also use this page to select the processes used to generate Intrastat reports. Note. This page is not discussed in this section. See the Intrastat chapter in this PeopleBook for more detailed information on Intrastat reporting. |
Use this group box to link the VAT entity to one or more general ledger business units. A VAT entity can have multiple business units associated with it, but a general ledger business unit cannot be associated with more than one VAT entity.
Note. For PeopleSoft Billing, linking a general ledger business unit to a VAT entity on this page does not automatically enable VAT for any PeopleSoft Billing business units already associated with the general ledger business unit. After you link the general ledger business unit to a VAT entity, you must go to the Billing Business Unit page to relink your Billing business unit to this general ledger business unit.
See Also
Setting Up and Running Intrastat Reports
Access the VAT Report Addresses page.
Note. You use this page to specify report addresses for your VAT return. These addresses can be used differently by each country. For example, in Germany, this page is used to print the address to which the VAT return is sent. Elsewhere, it is used to print the address of the reporting organization.
Report Type |
Select the type of VAT report. Values are: Other, Return, or Sales List (for the EC sales list). |
Location SetID and Location Code |
Select the location setID and code to use for the address. |
You can add multiple rows for different report types. Click OK to save your changes and return to the Identification page.
Access the VAT Entity - Exceptions page.
Effective Date and Status |
Specify the effective date and status for each exception you enter. |
End Date |
Enter the date the exoneration or suspension ends, if applicable. |
Select the type of exception. Options are: None. Exonerated: Select if the VAT entity is permanently excused from paying VAT. Suspended: Select if the VAT entity is temporarily excused from paying VAT. |
|
Sometimes a government issues a certificate to show proof of an exception. Use this field to enter the VAT Certificate ID that was issued. |
Note. Generally, when an organization receives a temporary suspension from paying VAT, the suspension applies until a specific date or until the organization reaches a specified purchasing limit. Any limit based on the amount of purchases is not tracked in the PeopleSoft system; you must track it manually.
Click OK to save your changes and return to the Identification page.
Access the VAT Entity - VAT Reports page.
Reporting Currency |
Select the currency that should print on VAT returns for this country. If reporting currency amounts have not been entered on the transaction and if the transaction and base currencies differ from the reporting currency, conversion occurs when the report extract runs. |
Contact Name, Telephone, Ext, Fax Number, Vat Email Contact |
Enter the applicable contact information. |
Process Type |
Select the applicable process type for the report. |
Process Name |
Select the process name for this report. |
Click OK to save your changes and return to the Identification page.
Note. You cannot run a VAT report unless you specify a process type and name on this page. You define a VAT report using the VAT
Report Definition component described later in this chapter.
In addition, the VAT Transaction report cannot be used for an entity unless it is also defined here.
To define VAT use types and apportionment, use the VAT Use Type component (VAT_USE_ID) and the VAT Apportionment component (VAT_APORT).
This section provides an overview of VAT use type and apportionment setup and discusses how to:
Define VAT use types.
Define VAT apportionment.
A VAT use type categorizes the use of a good or service by the tax status of the activity in which it is used—the tax status of the goods or services ultimately produced from those procured. VAT use is one of the main determinants in the recoverability of input VAT.
Note. If you are a public service organization in Canada and are eligible to receive a rebate on input VAT, you need to enter a public service body type. If more than one public service body type is applicable to your organization, at least one VAT use type is required for each public service body type selected.
You can specify the ratio of taxable activity to non-taxable activity directly on the use type, or you can specify that mixed apportionment be used to define the ratio of taxable to non-taxable activity at the ChartField level.
If you select the mixed apportionment check box, you must have completed VAT apportionment prior to entering transactions for the selection to be valid. When you select this VAT use type on a transaction, the taxable and exempt percentages apply to the calculation of recoverable and rebate VAT only if, on the transaction, either the business unit specified as the VAT apportionment control or one of the two ChartFields defined as priority ChartFields for VAT apportionment contains a value defined under VAT apportionment. If neither the business unit nor either of the ChartFields contains a value defined for VAT apportionment, the VAT recovery and VAT rebate percentages will be zero, resulting in all VAT being recorded as non-recoverable. For this reason, it is imperative that you specify enough VAT Apportionment data so that a match is always found
VAT apportionment is a mechanism that enables recoverability to be determined based on either the VAT apportionment control business unit or one of the two priority ChartFields you specify on the VAT Apportionment page and to which a transaction is posted. For each business unit, Priority 1 or Priority 2 ChartField value, you enter the percentage of activity that is taxable or exempt. The system automatically calculates the other value, so that the total of the percentages equals 100. When this business unit or ChartField value is entered on a transaction together with a VAT use type that indicates that mixed apportionment is applicable, the corresponding taxable activity and exempt activity percentages is used to calculate recoverable, rebatable, and non-recoverable VAT.
VAT apportionment setup is not required to establish your VAT environment. However, if you are unable to identify the taxable and exempt portions of a given activity for purposes of determining recoverability, it enables you to apportion that activity by general ledger business unit or ChartField. Typically, VAT apportionment is used by organizations with very complex recoverability issues. The concept behind VAT apportionment is that usage can be determined by business unit or ChartField, enabling usage to vary based on a business unit, department or project in which the purchase is to be used. VAT apportionment is not a mechanism for distributing VAT across multiple VAT accounts.
When you set up your VAT environment, you need to consider whether or not VAT on a good or service is recoverable, and if so, to what extent.
Here’s how you set up VAT rebates and recovery:
Define the VAT use type and indicate if a given purchase will be used in an activity that is anywhere from 100 percent taxable to 100 percent exempt.
Specify the ratio of taxable activity to non-taxable activity directly on the use type, or you can specify that mixed apportionment be used to define the ratio of taxable to non-taxable activity at the ChartField level.
Define VAT apportionment if you require that recoverability be determined based on the business unit or ChartField to which the purchase or expense is being posted.
You must set up VAT apportionment if you have defined any VAT use types as using mixed apportionment. You must also make sure that you have specified the type of business unit to be used as the VAT apportionment control for each of your VAT-enabled PeopleSoft Payables, Purchasing, General Ledger, Expenses, and Treasury business units. You set this up for each applicable business unit VAT driver in the common VAT defaults table.
Note. If your organization does not require tracking VAT recoverability at this level, it is not necessary to set up VAT apportionment information. VAT apportionment is used by organizations with very complex recoverability issues. The concept behind VAT apportionment is that usage can be determined by business unit or ChartField, enabling usage to vary based on a business unit, department or project in which the purchase is to be used. VAT apportionment is not a mechanism for distributing VAT across multiple VAT accounts.
Page Name |
Object Name |
Navigation |
Usage |
VAT_USE_ID |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Use Type |
Add or modify VAT use types. |
|
VAT_APORT_BASE |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Apportionment |
Define VAT apportionment. |
Access the VAT Use Type page.
Enter an effective date, status, description, and short description.
Indicate if a given purchase will be used in an activity that is anywhere from 100 percent taxable to 100 percent exempt. Values are: Use: Select to base the VAT recovery percentage on the activity percentages from the VAT use type. Mixed App. (mixed apportionment): Select to base the VAT recovery percentage on mixed-use apportionment by general ledger business unit or ChartField. The taxable and exempt percentages apply to the calculation of recoverable and rebate VAT only if, on the transaction, the general ledger business unit or one of the two ChartFields that are defined as priority ChartFields for VAT apportionment contains a value that is defined under VAT apportionment. If neither the general ledger business unit nor either of the ChartFields contains a value that is defined for VAT apportionment, the VAT recovery and rebate percentages are zero, resulting in all VAT being recorded as non-recoverable. For this reason, it is imperative that you specify enough VAT Apportionment data so that a match is always found. The VAT recoverability for each transaction line is determined by associating a VAT use type with that line. The VAT use type is supplied by the system for each transaction line through the VAT default hierarchy. |
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If you selected a use type of Use enter the percentage of activity that is taxable. |
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When you enter a value in VAT Taxable %, the system automatically populates this field so that the sum of the two fields is 100. |
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If you are a public service organization in Canada and are eligible to receive a rebate on input VAT, enter a public service body type. The public service body type determines the rebate rate. Values are: Charitable, Colleges, Hospital, Municipal, Non-Profit, School, and University. |
Note. If your organization consists of more than one public service body type, each public service body type requires at least one VAT use type.
Access the VAT Apportionment page.
The ChartField you enter here is the first ChartField the system uses when it attempts to retrieve VAT recovery data from VAT apportionment. For example, if you define the priority 1 ChartField as Project, the system attempts to find a row in the VAT apportionment table where the priority 1 ChartField value resembles the project ID from the transaction. |
|
ChartField Priority 2 |
Enter the ChartField to use in a second pass when the first attempt to retrieve VAT recovery data from VAT apportionment is unsuccessful. |
You can equate ChartField priority 1 to the lowest level in the PeopleSoft control hierarchy, and ChartField priority 2 to the next highest level. Priority 1 takes precedence when found, then priority 2, while the business unit acts as the default.
Note. VAT apportionment does not use the combination of the priority 1 and priority 2 ChartFields and business unit. The system first looks for a match in the VAT apportionment data for the priority 1 ChartField value. If it finds no match, it looks for a match in the VAT apportionment data for the priority 2 ChartField. If it still finds no match, it looks for a match in the business unit.
VAT Apportionment Detail
Use this grid to specify values for the ChartFields, for one or more business units. The business units may be transaction business units or PeopleSoft General Ledger business units. The system uses either the transaction business unit, the transaction's general ledger business unit, or the distribution line general ledger business unit to access VAT apportionment information, based on the type of business unit you define as the VAT apportionment control for the PeopleSoft Payables, Purchasing, General Ledger, Expenses, and Treasury business unit VAT drivers in the common VAT defaults table.
ChartField Option |
Select either BU Only, Value 1 or Value 2. Selecting Value 1 enables you to enter a priority 1 value. Selecting Value 2 enables you to enter a priority 2 value. |
Priority 1 and Priority 2 |
If you selected Value 1 for the ChartField Option, you can enter a value in the Priority 1 field. If you selected Value 2, you can enter a value in the Priority 2 field. The value you enter can be any number of characters up to the length of the largest ChartField that the system uses when it attempts to find a match with the ChartField values on the transaction. The priority 1 and 2 values represent the significant beginning characters that must match exactly. For example, if the ChartField Priority 1 is Project ID and you enter a priority 1 value of 12, any project ID on a transaction starting with 12 matches this VAT apportionment row. |
The system looks at the transaction ChartField value, and then looks for a match. If it finds a match in VAT apportionment, it stops. If it does not find a match in VAT apportionment, it removes the last character of the transaction ChartField value and looks again for a match. It repeats this process until it finds a match or there are no more characters to remove. If it does not find a match in VAT apportionment for either the priority 1 or priority 2 ChartField, it then looks for an exact match for the business unit. If it still does not find a match, the VAT recovery and rebate percentages default to zero, resulting in all VAT being recorded as non-recoverable. For this reason, it is imperative that you specify enough VAT Apportionment data so that a match is always found
To establish VAT defaults, use the following components:
VAT Defaults Setup (VAT_DFLT_SRCH_DTL).
Service VAT Sub-Search (VAT_DEF_SER_SEARCH).
This section provides an overview of VAT defaults setup and discusses how to:
Access the VAT Defaults Setup page.
Set up and maintain VAT defaults.
Copy VAT default setup.
Review VAT field descriptions by VAT driver.
Access the Service VAT Treatment Defaults Setup page.
Set up and maintain service VAT treatment drivers.
Copy service VAT treatment drivers.
Validate VAT default setup.
Override VAT defaults and controls on transaction entry VAT pages.
See Also
By providing common components for establishing VAT defaults for all installed applications that process VAT transactions, PeopleSoft software provides the tax expert in your organization with the ability to see and access all VAT default setup from a shared menu. In addition, this same default setup can be accessed from the various application pages.
Note. Run the VAT 3000 report after setting up defaults to validate VAT default setup data and to exposes any inconsistencies and missing default values.
VAT Defaults
VAT defaults may be defined for many VAT drivers, and these VAT drivers make up all the levels of the defaults hierarchy. Common default records are used to store the hierarchical default data in such a way as to make retrieval of the appropriate defaults efficient. For example, a VAT default specified for an item, expense type, or product should be used before a default for a category or product group. Furthermore, within in each VAT driver defaults specified by country and state are more specific and come before defaults by country only, which in turn are more specific and come before defaults where both the country and state are blank.
You can establish VAT settings for all applicable VAT drivers using the VAT Defaults Setup component. You access the component by first selecting a VAT driver. The drivers available to you are based on the applications installed. A sub-search page opens on which you can enter more specific search criteria or driver keys. Clicking the search button opens the VAT Defaults Setup page. The default VAT data that displays is determined by the combination of the VAT driver and VAT driver keys. You then enter the required defaults and any optional defaults as needed and save the changes.
Service VAT Treatment Defaults
If you need to establish default values for the additional VAT treatment determinants specific for services, you can do this using the Services VAT Treatment Defaults Setup component. Like the VAT Defaults setup component, this component uses VAT drivers to default the values at various levels of the hierarchy. For any applicable driver, you may define the place of supply of the service or the place where the VAT is liable, whether it is the supplier's countries, customer's countries, or the place where the service is actually performed depending on the type of service. You can also specify whether the service is freight transport or other.
Understanding VAT Drivers, VAT Driver Keys, and the Default Hierarchy for VAT Defaults
The following table lists the VAT drivers and associated VAT driver keys in VAT default hierarchy sequence from most specific to least specific for the VAT Defaults component. This table also indicates which drivers also control defaults for the services VAT treatment:
VAT Driver |
VAT Driver Keys |
PeopleSoft Application |
Country |
State |
Applicable to Regular VAT Defaults |
Applicable to Services VAT Treatment Defaults |
Item BU |
Item SetID Item ID Business Unit |
Purchasing |
Optional |
Optional |
Yes |
No |
Item |
Item SetID Item ID |
Purchasing, Payables |
Optional |
Optional |
Yes |
Yes |
Expense Type |
SetID Expense Type |
Expenses |
Optional |
Optional |
Yes |
No |
Sales Line Identifier |
SetID Table Identifier Identifier |
Billing, Order Management, CRM |
Optional |
Optional |
Yes |
Yes |
Account ChartField |
Account SetID Account |
General Ledger |
Optional |
Optional |
Yes |
No |
Item Category |
Item SetID Category Code |
Purchasing |
Optional |
Optional |
Yes |
Yes |
Sales Line Identifier Group |
Identifier Group SetID Table Identifier Identifier Group |
Billing, Order Management, CRM |
Optional |
Optional |
Yes |
Yes |
Journal Source |
Source SetID Source |
General Ledger |
Optional |
Optional |
Yes |
No |
Accounting Template |
Accounting Template SetID Accounting Template ID |
Treasury |
Optional |
Optional |
Yes |
No |
Asset Class |
Asset SetID Asset Class |
Asset Management |
Optional |
Optional |
Yes |
No |
Bank Branch |
Bank SetID Bank Code Branch Name |
Treasury |
Optional |
Optional |
Yes |
No |
Vendor Location |
Vendor SetID Vendor ID Vendor Location |
Purchasing, Payables |
Optional |
Optional |
Yes |
Yes |
Customer Location |
Customer SetID Customer ID Address Sequence Number |
Receivables, Asset Management, Billing, Order Management |
Optional |
Optional |
Yes |
Yes |
Bank |
Bank SetID Bank Code |
Treasury |
Optional |
Optional |
Yes |
No |
Vendor |
Vendor SetID Vendor ID |
Purchasing, Payables |
Optional |
Optional |
Yes |
Yes |
Credit Card Provider |
Vendor SetID Credit Card Vendor |
Purchasing |
Optional |
Optional |
Yes |
No |
Customer |
Customer SetID Customer ID |
Receivables, Asset Management, Billing, Order Management |
Optional |
Optional |
Yes |
Yes |
Voucher Control Group |
Business Unit Control Group ID |
Payables |
Optional |
Optional |
Yes |
Yes |
Bill Source |
Bill Source SetID Bill Source ID |
Billing |
Optional |
Optional |
Yes |
Yes |
Voucher Origin |
Origin SetID Origin |
Payables |
Optional |
Optional |
Yes |
Yes |
Bill Type |
Bill Source SetID Bill Type ID |
Billing |
Optional |
Optional |
Yes |
Yes |
AM Business Unit |
Business Unit |
Asset Management |
Optional |
Optional |
Yes |
No |
AP Business Unit |
Business Unit |
Payables |
Optional |
Optional |
Yes |
No |
BI Business Unit |
Business Unit |
Billing |
Optional |
Optional |
Yes |
Yes |
Expenses Business Unit |
Business Unit |
Expenses |
Optional |
Optional |
Yes |
No |
GL Business Unit |
Business Unit |
General Ledger |
Optional |
Optional |
Yes |
No |
OM Business Unit |
Business Unit |
Order Management |
Optional |
Optional |
Yes |
Yes |
PO Business Unit |
Business Unit |
Purchasing |
Optional |
Optional |
Yes |
No |
Treasury Options |
Business Unit |
Treasury |
Optional |
Optional |
Yes |
No |
AP Options |
SetID |
Payables |
Optional |
Optional |
Yes |
Yes |
AR Options |
SetID |
Receivables |
Optional |
Optional |
Yes |
Yes |
PO Options |
SetID Process Option ID |
Purchasing |
Optional |
Optional |
Yes |
Yes |
VAT Entity Registration |
VAT Entity Country |
All |
Required |
Optional |
Yes |
No |
VAT Country |
Country |
All |
Not applicable |
Optional |
Yes |
No |
Page Name |
Object Name |
Navigation |
Usage |
VAT_DEFAULT_SEARCH |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Defaults Select the VAT driver and click Search. |
Enter VAT driver keys, or country and state information, as applicable. |
|
VAT_DEFAULTS_DTL |
Enter search criteria on the VAT Default Sub-Search page and click Search. |
Enter VAT default information. The fields displayed, default values, and data required vary based on the VAT driver and VAT driver keys entered. |
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VAT_DFLT_SRCH_COPY |
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Copy data from an existing VAT default or service VAT treatment default setup to the current VAT driver and driver keys combination. |
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VAT_DEFAULT_DTLSEC |
Click any of the row links returned by the search on the Copy VAT Defaults From page. |
View the details from which to copy. |
|
VAT_DEFAULT_SEARCH |
Setup Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Service VAT Treatment Defaults. Select a VAT driver and click Search. |
Enter VAT driver keys, and country or state information, as applicable. |
|
VAT_DEFAULTS_DTL |
Enter search criteria on the Service VAT Treatment Defaults Sub-Search page and click Search. |
Enter VAT default information for service VAT treatment. |
|
VAT Set Up Validation Report |
RUN_LC_VATCHK |
Set Up Financial/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Setup Validation Report |
Validate VAT default setup data and exposes inconsistencies and missing default values. |
To access the VAT Defaults Setup page:
Navigate to Setup Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Defaults.
A search window appears.
Select the VAT Driver you want to maintain or set up and click Search.
The VAT drivers listed are based on the installed applications. A VAT Default Sub-Search page appears.
Optionally, enter any or all of the VAT driver keys that display, the VAT reporting country, and default state or province, as applicable.
Click Search.
The system opens the VAT Defaults Setup page and displays all VAT default data for the rows matching the VAT driver option selected and VAT driver keys entered.
In addition, the system only displays the applicable VAT default fields.
Access the VAT Defaults Setup page.
Note. The VAT default fields that display vary based on the VAT driver. In addition, the VAT default data is based on the VAT driver and VAT driver keys used to access this page.
Use the page to specify a value for all the required fields, for any fields requiring an overall default at the top of the VAT default hierarchy, or for any fields requiring an exception to the value specified for a VAT driver higher up in the VAT default hierarchy.
You can insert rows for any or all of the VAT driver keys as well as the VAT country or state. You can also delete any existing rows.
Return to VAT Defaults Sub-Search |
Click to return to the sub-search page on which you can enter different VAT driver keys. |
If you are inserting a row for a VAT driver key, select this check box to copy all the VAT defaults from the previous row to the new row. Otherwise, all VAT default fields for the new row are blank. |
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Click to access the Copy VAT Defaults From page which you can use to copy VAT default specifications from another key combination for the same VAT driver. |
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Select the country or countries for which you are defining VAT defaulting. For regular defaults, defaults are obtained for the VAT reporting country. For service VAT treatment defaults, defaults are obtained for the supplier's location country. |
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As applicable, enter the state for which you want to define defaulting values. |
|
Default Details |
Enter the effective date, status, and, if applicable, the VAT setID. |
Note. The remaining fields on the page vary based on the combination of VAT driver and VAT driver keys. See the section on VAT fields for details of the fields that display and the VAT drivers for which they display in hierarchy order.
See Also
Reviewing VAT Field Descriptions by VAT Driver
Access the Copy VAT Defaults From page.
Copy From Search Criteria |
Enter the criteria on which you want to search. You can search by setID, VAT reporting country, and defaulting state. |
Search |
Click to retrieve the results based on the criteria entered. The results display in the Copy From Results group box. |
Copy From Results |
In the Copy From Results group box, either click the link for any of the results returned to view the details of the VAT setup from which to copy on the Copy VAT Defaults Setup page. Once you have viewed the details, you can click Copy to copy the VAT setup. The system returns you to the VAT Defaults Setup page with the copied fields. Or you can select the appropriate radio button for any of the results returned and click Copy to copy from the selected row. The system returns you to the VAT Defaults Setup page with the copied fields. |
The following tables list the available VAT fields, field descriptions, and VAT drivers for which they display. The drivers are listed in reverse hierarchy order, from least specific to most specific. The tables also indicate on which driver the VAT field is required. Fields can be overridden at lower levels of the hierarchy as needed.
This table lists the fields by VAT driver that control how and when VAT is applied and calculated:
Field |
Description |
VAT Driver |
VAT Applicable |
Select the appropriate VAT status. Values are: Taxable Exempt (not subject to VAT) Outside of Scope of VAT |
VAT Country Driver (required) PO Options AR Options AP Options Treasury Options Order Management Business Unit General Ledger Business Unit Expenses Business Unit Billing Business Unit Asset Management Business Unit Bill Type Voucher Origin Bill Source Voucher Control Group Customer Vendor Bank Customer Location Vendor Location Bank Branch Asset Class Accounting Template Journal Source Sales Line Identifier Group
|
VAT Applicable (continued) |
Select the appropriate VAT status. Values are: Taxable Exempt (not subject to VAT) Outside of Scope of VAT |
Item Category Account ChartField Expense Type Item Sales Line Identifier
|
VAT Rounding Rule |
Specify the VAT rounding rule you want to use: Natural Round: Amounts are rounded normally (up or down) to the precision specified for the currency code. For example, for a currency defined with two decimal places, 157.4659 would round up to 157.47, but 157.4649 would round down to 157.46. Round Down: Amounts are rounded down. Round Up: Rounds up and limits rounding precision to one additional decimal place. For example, for a currency defined with 2 decimal places, 157.4659 would round up to 157.47, but 157.4609 would be rounded down to 157.46. |
VAT Country Driver (required) VAT Entity Registration Vendor Vendor Location |
Select when you want VAT transaction information for goods to be recognized for reporting purposes. At Invoice Time: VAT is recognized at time of invoice. At Payment Time: VAT is recognized at time of payment. At Delivery Time: VAT is recognized at time of delivery. At Accounting Date: VAT is recognized as of the accounting date. |
VAT Entity Registration (required) PO Options AR Options AP Options Order Management Business Unit Billing Business Unit Asset Management Business Unit Bill Type Voucher Origin Bill Source Voucher Control Group Customer Vendor Customer Location Vendor Location |
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Select when you want VAT transaction information for services to be recognized for reporting purposes. At Invoice Time: VAT is recognized at time of invoice. At Payment Time: VAT is recognized at time of payment. At Delivery Time: VAT is recognized at time of delivery. At Accounting Date: VAT is recognized as of the accounting date. |
VAT Entity Registration (required) PO Options AR Options AP Options Order Management Business Unit Billing Business Unit Bill Type Voucher Origin Bill Source Voucher Control Group Customer Vendor Customer Location Vendor Location |
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Select how to calculate VAT. Gross: The system calculates VAT before it applies any early payment discounts. Net: The system calculates VAT after it deducts early payment discounts. If there are two percentage discounts, the system uses the larger of the two when it calculates VAT. The system does not use discount amounts, only discount percentages. |
VAT Entity Registration (required) |
|
Select to include freight charges for purchase orders and vouchers when the system calculates VAT. |
VAT Entity Registration (required) |
|
Select to include miscellaneous charges (for example, customs fees, insurance, or handling fees) on purchase orders and vouchers when the system calculates VAT. |
VAT Entity Registration (required) |
|
Select if you are calculating VAT at gross and you want to recalculate VAT at payment time to allow for any early payment discounts. Selecting this field causes the system to adjust the VAT amount at the time of payment if the discount has been taken |
VAT Entity Registration (required) |
|
(VAT on advance payment) |
Select the VAT on Adv Pay fields if you want to record VAT on advance payments in PeopleSoft Payables or Receivables. You can select when to record the VAT based on your declaration point, for example at invoice, delivery, or accounting date. You must always specify that VAT be recorded on advance payments when declaration is at payment. |
VAT Entity Registration (required) |
Select to enable the input of VAT and taxable amounts in the reporting currency on vouchers, treasury fees, and general ledger journals, and to enable printing of base currency amounts on sales invoices. |
VAT Entity Registration (required) |
|
Select the type of calculation you want the system to use. Exclusive: VAT is calculated on top of the entered transaction amount, since it excludes any VAT. Inclusive: VAT is calculated from within the entered transaction amount, since it already includes the VAT. |
AP Options (required) Treasury Options (required) General Ledger Business Unit (required) Asset Management Business Unit (required) Voucher Origin Voucher Control Group Vendor Bank Vendor Location Bank Branch Accounting Template Journal Source Account ChartField |
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Select to enable the override of calculated VAT recovery and rebate percentages on a transaction. Do Not Allow Override Override Both Recvry/Rebate % (override both the recovery and rebate percentage Override Rebate % Only Override Recovery % Only |
PO Options (required) AP Options (required) Treasury Options (required) General Ledger Business Unit (required) Expenses Business Unit (required) |
|
Use to enter the recovery rate for any items or expense types for which you cannot fully recover VAT in this country. |
Expense Type Item |
|
Item VAT Recovery Rate Default = zero |
Use if the VAT recovery rate for an item or expense type is zero. |
Expense Type Item |
Specify the reclaim percent for an expense type for which foreign VAT is not fully reclaimable in this country. |
Expense Type |
|
VAT Reclaim Percent Default = zero |
Use if a VAT reclaim percent for an expense type is zero. |
Expense Type |
Select the appropriate use type to define the split between taxable and exempt activity. |
PO Options (required) AP Options (required) Treasury Options (required) General Ledger Business Unit (required) Expenses Business Unit (required) Voucher Origin Voucher Control Group Vendor Bank Vendor Location Bank Branch Accounting Template Journal Source Item Category Account ChartField Expense Type Item Item BU |
|
Select the appropriate apportionment control to apply, as applicable. Distribution GL Business Unit: If you select this value, the system uses the general ledger business unit on the distribution line to search for the taxable and exempt percentages. Transaction Business Unit: If you select this value, the system uses the applicable transaction business unit to search for the taxable and exempt percentages. Transaction GL Business Unit: If you select this value, the system uses the general ledger business unit to which the applicable transaction business unit is mapped to search for the taxable and exempt percentages. |
Purchasing Business Unit (required) General Ledger Business Unit (required) Expenses Business Unit (required) Payables Business Unit (required) |
|
Select the appropriate VAT accounting entry type for the account. This is applicable only to accounts designated as VAT Accounts. It is not applicable for accounts designated as VAT Applicable. |
Account ChartField |
|
Select the country where the supply of a service is liable to VAT. |
Treasury Options (required) Bank Bank Branch Accounting Template |
|
VAT Place of Supply State |
Select the state where the supply of a service is liable to VAT. |
Treasury Options Bank Bank Branch Accounting Template |
Select the currency for currency conversion of VAT tolerance amounts. |
AR Options AP Options Treasury Options General Ledger Business Unit Expenses Business Unit Voucher Origin Voucher Control Group Credit Card Provider Vendor Bank Vendor Location Bank Branch Accounting Template Journal Source Account ChartField |
|
Select the exchange rate type for currency conversion of VAT tolerance amounts. |
AR Options AP Options Treasury Options General Ledger Business Unit Expenses Business Unit Voucher Origin Voucher Control Group Credit Card Provider Vendor Bank Vendor Location Bank Branch Accounting Template Journal Source Account ChartField |
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You can enter the allowable amount of difference between the entered VAT amount and the calculated VAT amount. |
AR Options AP Options Treasury Options General Ledger Business Unit Expenses Business Unit Voucher Origin Voucher Control Group Credit Card Provider Vendor Bank Vendor Location Bank Branch Accounting Template Journal Source Account ChartField |
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You can enter the allowable percentage of difference between the entered VAT amount and the calculated VAT amount. |
AR Options AP Options Treasury Options General Ledger Business Unit Expenses Business Unit Voucher Origin Voucher Control Group Credit Card Provider Vendor Bank Vendor Location Bank Branch Accounting Template Journal Source Account ChartField |
|
VAT Tolerance Amount Default = zero |
Use if a VAT tolerance amount value is zero. |
AR Options AP Options Treasury Options General Ledger Business Unit Expenses Business Unit Voucher Origin Voucher Control Group Credit Card Provider Vendor Bank Vendor Location Bank Branch Accounting Template Journal Source Account ChartField |
VAT Tolerance Percentage Default = zero |
Use if a VAT tolerance percentage value is zero. |
AR Options AP Options Treasury Options General Ledger Business Unit Expenses Business Unit Voucher Origin Voucher Control Group Credit Card Provider Vendor Bank Vendor Location Bank Branch Accounting Template Journal Source Account ChartField |
Select if not subject to suspension from VAT. |
Asset Class Accounting Template Sales Line Identifier Group
Item Category Sales Line Identifier
Item |
|
Select this option to record and report one or more types of input VAT (Input Rebate, Input Recoverable, Input Non-recoverable, and others.) on transactions containing this VAT driver value. |
Account ChartField (required) |
|
Select this option to record and report one or more types of output VAT (Output, Output Intermediate, Output for Purchases) on transactions containing this VAT driver value. |
Account ChartField (required) |
VAT codes specify the rate at which VAT is calculated. The following table lists the available VAT code default fields and the VAT driver for which they are available. Select the most frequently used VAT code for each VAT code field at the highest level of the VAT default hierarchy, and then specify exceptions at the lower levels of the hierarchy as necessary.
Default Field |
Description |
VAT Driver |
Select the VAT code for purchases of taxable goods. |
VAT Country PO Options AP Options Expenses Business Unit Voucher Origin Voucher Control Group Vendor Vendor Location Item Category Expense Type Item |
|
Select the VAT code for purchases of taxable services. |
VAT Country PO Options AP Options Treasury Options Expenses Business Unit Voucher Origin Voucher Control Group Vendor Bank Vendor Location Bank Branch Accounting Template Item Category Expense Type Item |
|
Select the VAT code for sales of taxable goods. |
VAT Country AR Options Order Management Business Unit Billing Business Unit Asset Management Business Unit Bill Type Bill Source Customer Customer Location Asset Class Sales Line Identifier Group
Sales Line Identifier
|
|
Select the VAT code for sales of taxable services. |
VAT Country AR Options Order Management Business Unit Billing Business Unit Bill Type Bill Source Customer Customer Location Sales Line Identifier Group
Sales Line Identifier
|
|
Select the VAT code for general ledger transactions of physical goods. |
General Ledger Business Unit (required) Journal Source Account ChartField |
|
Select the VAT code for general ledger transactions of services. |
General Ledger Business Unit (required) Journal Source Account ChartField |
|
Select the zero-rate VAT code for exonerated, suspended or other zero-rated transactions. |
VAT Country |
VAT Transaction Types Defaults
VAT transaction types classify and categorize transactions at a more detailed level for both VAT reporting and accounting. The following table lists the available types of VAT transaction type defaults and the VAT drivers for which they are available. Select the most frequently used VAT transaction type for each VAT Transaction Type field at the highest level of the VAT default hierarchy, and then specify exceptions at the lower levels of the hierarchy as necessary.
Default VAT Transaction Type Field |
Field Description |
VAT Driver Option |
Domestic Goods Purchases |
Purchase of goods within the same country. |
VAT Entity Registration (required) PO Options AP Options Expenses Business Unit Voucher Origin Voucher Control Group Vendor Vendor Location Item Category Expense Type Item |
Domestic Goods Sales |
Sale of goods within the same country. |
VAT Entity Registration (required) AR Options Order Management Business Unit Billing Business Unit Asset Management Business Unit Bill Type Bill Source Customer Customer Location Asset Class Sales Line Identifier Group
Sales Line Identifier
|
Domestic Services Purchases |
Purchase of services within the same country. |
VAT Entity Registration (required) PO Options AP Options Treasury Options Expenses Business Unit Voucher Origin Voucher Control Group Vendor Bank Vendor Location Bank Branch Accounting Template Item Category Expense Type Item |
Domestic Services Sales |
Sale of services within the same country. |
VAT Entity Registration (required) AR Options Order Management Business Unit Billing Business Unit Bill Type Bill Source Customer Customer Location Sales Line Identifier Group
Sales Line Identifier
|
Deemed Services Exports |
Services that are provided in the country in which the supplier is located and registered for VAT to a customer located in another country. The supply of these services must be zero-rated. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Bill Type Bill Source Customer Customer Location Sales Line Identifier Group
Sales Line Identifier
|
EU Goods Distance Sales |
Sale of goods between EU countries in which the supplier is registered in an EU country and the purchaser is not registered in an EU country. The VAT rate charged is the rate applicable in the supplier's country. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Asset Management Business Unit Bill Type Bill Source Customer Customer Location Asset Class Sales Line Identifier Group
Sales Line Identifier
|
EU Acquisitions |
Acquisition of goods within the European Union. |
VAT Entity Registration PO Options AP Options Voucher Origin Voucher Control Group Vendor Vendor Location Item Category Item |
EU Goods Sales |
Sale of goods within the European Union. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Asset Management Business Unit Bill Type Bill Source Customer Customer Location Asset Class Sales Line Identifier Group
Sales Line Identifier
|
EU Services Purchases |
Purchase of services within the EU. |
VAT Entity Registration PO Options AP Options Treasury Options Voucher Origin Voucher Control Group Vendor Bank Vendor Location Bank Branch Accounting Template Item Category Item |
EU Sales, Simplification |
This treatment is used for the transaction between an intermediary and the purchaser in cases when there is a sale of goods between EU countries involving three parties: the purchaser, an intermediary (bill-from) supplier, and the actual goods supplier. Each party is located in a different EU country and registered in his own country, and not in either of the other two countries. The only difference between this VAT treatment and that applied to normal EU sales is that the supplier is required to print a different message on the invoice referencing the statute that applies to triangulation, rather than the one that references the statute for normal EU sales. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Asset Management Business Unit Bill Type Bill Source Customer Customer Location Asset Class Sales Line Identifier Group
Sales Line Identifier
|
Exempt |
Subject to exemption from VAT. |
VAT Entity Registration PO Options AR Options AP Options Treasury Options Order Management Business Unit General Ledger Business Unit Expenses Business Unit Billing Business Unit Asset Management Business Unit Bill Type Voucher Origin Bill Source Voucher Control Group Customer Vendor Bank Customer Location Vendor Location Bank Branch Asset Class Accounting Template Journal Source Sales Line Identifier Group
Item Category Account ChartField |
Exempt (continued) |
Subject to exemption from VAT. |
Sales Line Identifier
Expense Type Item |
Exonerated |
Subject to exoneration from VAT. |
VAT Entity Registration PO Options AR Options AP Options Treasury Options Order Management Business Unit General Ledger Business Unit Billing Business Unit Asset Management Business Unit Bill Type Voucher Origin Bill Source Voucher Control Group Customer Vendor Bank Customer Location Vendor Location Bank Branch Asset Class Accounting Template Journal Source Sales Line Identifier Group
Item Category Account ChartField |
Exonerated (continued) |
Subject to exoneration from VAT. |
Sales Line Identifier
Item |
Foreign Goods Expenses |
Expenses on foreign goods. |
VAT Entity Registration Expenses Business Unit Expense Type |
Foreign Services Expenses |
Expenses on foreign services. |
VAT Entity Registration Expenses Business Unit Expense Type |
General Ledger Goods |
VAT transaction type exclusively for General Ledger. |
General Ledger Business Unit (required) Journal Source Account ChartField |
General Ledger Services |
VAT transaction type exclusively for General Ledger. |
General Ledger Business Unit (required) Journal Source Account ChartField |
Goods Exports |
Export of goods. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Asset Management Business Unit Bill Type Bill Source Customer Customer Location Asset Class Sales Line Identifier Group
Sales Line Identifier
|
Out of Scope EU Service Sales |
Sale of services within the EU that are designated as outside of the scope of VAT. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Bill Type Bill Source Customer Customer Location Sales Line Identifier Group
Sales Line Identifier
|
Out of Scope |
Outside of the scope of VAT. |
VAT Entity Registration PO Options AR Options AP Options Treasury Options Order Management Business Unit General Ledger Business Unit Expenses Business Unit Billing Business Unit Asset Management Business Unit Bill Type Voucher Origin Bill Source Voucher Control Group Customer Vendor Bank Customer Location Vendor Location Bank Branch Asset Class Accounting Template Journal Source Sales Line Identifier Group
Item Category Account ChartField |
Out of Scope (continued) |
Outside of scope of VAT. |
Sales Line Identifier
Expense Type Item |
Out of Scope Services Exports |
Export of services designated as outside of the scope of VAT. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Bill Type Bill Source Customer Customer Location Sales Line Identifier Group
Sales Line Identifier
|
Self-Assessed Goods Imports |
Imported goods subject to self-assessed VAT. |
VAT Entity Registration PO Options AP Options Voucher Origin Voucher Control Group Vendor Vendor Location Item Category Item |
Self-Assessed Services Imports |
Import of services subject to self-assessed VAT. |
VAT Entity Registration PO Options AP Options Treasury Options Voucher Origin Voucher Control Group Vendor Bank Vendor Location Bank Branch Accounting Template Item Category Item |
Suspended |
Subject to suspension from VAT. |
VAT Entity Registration PO Options AR Options AP Options Treasury Options Order Management Business Unit General Ledger Business Unit Billing Business Unit Asset Management Business Unit Bill Type Voucher Origin Bill Source Voucher Control Group Customer Vendor Bank Customer Location Vendor Location Bank Branch Asset Class Accounting Template Journal Source Sales Line Identifier Group
Item Category Account ChartField |
Suspended (continued) |
Subject to suspension from VAT. |
Sales Line Identifier
Item |
Zero-rated EU Service Sales |
Sale of services within the EU subject to zero-rated VAT. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Bill Type Bill Source Customer Customer Location Sales Line Identifier Group
Sales Line Identifier
|
Zero-rated Goods Imports |
Import of goods subject to zero-rated VAT. |
VAT Entity Registration PO Options AP Options Voucher Origin Voucher Control Group Vendor Vendor Location Item Category Item |
Zero-rated Services Exports |
Export of services subject to zero-rated VAT. |
VAT Entity Registration AR Options Order Management Business Unit Billing Business Unit Bill Type Bill Source Customer Customer Location Sales Line Identifier Group
Sales Line Identifier
|
To access the Service VAT Treatment Defaults Setup page:
Navigate to Setup Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Service VAT Treatment Defaults.
A search window appears.
Select the VAT Driver you want to maintain or set up and click Search.
The VAT drivers listed are based on the installed applications. A Service VAT Treatment Defaults Sub-Search page appears.
Note. The VAT drivers table provided previously in this section lists the VAT drivers on which you can specify service VAT treatment defaults.
Optionally enter any or all of the VAT driver keys that display, the supplier's location country, and supplier's location state, as applicable, and then click Search.
The system opens the Service VAT Treatment Defaults Setup page and displays all service VAT treatment default data for the rows matching the VAT driver selected and VAT driver keys entered.
Access the Service VAT Treatment Defaults Setup page.
You can insert rows for any or all of the VAT driver keys as well as the supplier's location country or state. You can also delete any existing rows.
Return to Service VAT Sub-Search |
Click to return to the sub-search page on which you can enter different VAT driver keys. |
Copy Values to New Rows |
If you are inserting a row for a VAT driver key, select this check box to copy all the VAT defaults from the previous row to the new row. Otherwise, all VAT default fields for the new row will be blank. |
Copy Defaults From |
Click to access the Copy Service VAT Treatment Defaults From page which you can use to copy the VAT defaults from another key combination for the same VAT driver. |
Displays the location country of the seller (supplier). |
|
Seller Location State |
As applicable, enter the seller's location state. |
Default Details |
Enter the effective date and status. |
For the applicable VAT drivers you can set the type of service by selecting from the following: Freight Transport Other |
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For the applicable VAT drivers you can specify the usual place of supply (the place where VAT liability most often occurs) from the following: Buyer's Countries Supplier's Countries Where Physically Performed. |
See Also
Reviewing VAT Field Descriptions by VAT Driver
Access the Copy Service VAT Treatment Defaults From page.
Copy From Search Criteria |
Enter the criteria on which you want to search. You can search by setID, seller location country, and seller location state. |
Search |
Click to retrieve the results based on the criteria entered. The results display in the Copy From Results group box. |
Copy From Results |
In the Copy From Results group box, either click the link for any of the results returned to view the details of the VAT setup from which to copy on the Copy VAT Defaults Setup page. Once you have viewed the details, you can click Copy to copy the VAT setup. The system returns you to the Service VAT Treatment Defaults Setup page with the copied fields. Or you can select the appropriate radio button for any of the results returned and click Copy to copy from the selected row. The system returns you to the Service VAT Treatment Defaults Setup page with the copied fields. |
Access the VAT Validation Report page.
Run the VAT 3000 VAT Set Up Validation report to confirm that VAT defaults have been set up correctly and that defaults that are required at the highest levels in the hierarchy have been defined.
Language |
Specify the language in which you want to run the report. |
As of Date |
Specify the as of date to be compared against the effective dates on the default setups to identify incorrect or missing setup on or before the specified date. |
Access the applicable transaction entry VAT page from the PeopleSoft application. The name of the page varies based on the application. The following example shows the Invoice Line VAT Information page accessed from a voucher line in PeopleSoft Payables.
You can override default VAT settings on individual transactions from the applicable PeopleSoft application pages. For example, you can override VAT settings for a voucher line by accessing the Invoice Line VAT Information page from the Voucher component. While the fields that display on this page may vary based on the application, the page behaves in much the same way.
Note. The VAT defaults display in descending order of impact. If you change any settings on this page, you should work from the top of the page to the bottom clicking the Adjust Affected VAT Defaults button at the appropriate time or times.
Expand All Sections |
Click to expand all the sections on the page. The sections are collapsed by default. |
Collapse All Sections |
Click to collapse all sections on the page. |
A section at the bottom of the page enables you to adjust the VAT defaults based on changes you make on this page or to reset all VAT defaults.
Clicking this button retains certain changes to VAT defaults while adjusting other VAT defaults affected by the changes. The changes retained depends on the changes you have made as described below. Two examples are provided at the end of this section. |
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Clicking this button resets all the VAT defaults. You can reset the defaults at This and all lower levels in the transaction hierarchy, All lower levels only, or This level only. Transaction hierarchy can differ. For example, if you are dealing with the voucher header VAT page, all lower levels refers to the voucher lines and the distribution lines. However, if you are on the voucher line VAT page, all lower levels refers to the distribution lines. |
Physical Nature
Indicates whether an object is a good or a service. For many countries there is a requirement to report the sale and/or purchase of goods separately from services. |
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Click this button to override the default physical nature. This changes the value of the physical nature which determines the VAT treatment and resets all the VAT defaults at this level. |
The VAT location fields are populated by the applications. Values in these fields are never affected by changes to any of the VAT default fields and are never updated when you click the Change Physical Nature, Adjust Affected VAT Defaults, or Reset All VAT Defaults buttons. The possible VAT locations are:
Bank country
Buyer's Location Country
Buyer's Location State
Consumption Country
Consumption State
Location Country
Location State
Seller's Location Country
Seller's Location State
Service Performed Country
Service Performed State
Ship From Country
Ship From State
Ship To Country
Ship To State
Ship To VAT Rgstrn Country
The fields for VAT registration defaults include:
Reporting Country
Default State
Bank, Customer, or Vendor Registration Country
Bank, Customer, or Vendor Registration ID
Exception Type
Exception Certificate ID
Any changes you make to these values with the exception of the exception type and exception certificate ID affect all VAT default settings if you click the Adjust Affected VAT Defaults button after making changes.
If you change the exception type only the VAT transaction type and VAT code defaults are adjusted if you click the Adjust Affected VAT Defaults button.
If you change the default setting in the Calc on Advance Payments field and click the Adjust Affected VAT Defaults button, the system updates all VAT default settings.
Changes to any other VAT control fields do not affect other VAT defaults. Also, if you change any of the following fields and click the Adjust Affected VAT Defaults button, your changes will be lost if you have also changed fields that affect the VAT control fields:
Calculate at Gross or Net
Recalculate at Payment.
Calculation Type
Declaration Point
Declaration Date
Accounting Entry Type
Rounding Rule
Non-Recovery Charge
Use Type
Apportionment Control
Recovery Source
Rebate Source
Reclaim Percent
Include Freight
Include Miscellaneous
In Reporting Currency
No VAT Receipt
Prorate Non-Recoverable
Allocate Non-Recoverable
Place of Supply Country |
If the transaction is for a service, these fields show the place of supply (the place where VAT liability occurs) country and state for the service. This value is used to help determine the VAT treatment. If you change these settings and click the Adjust Affected VAT Defaults button, the system changes all VAT default settings. |
Treatment |
If you change this value and click the Adjust Affected VAT Defaults button, the system only updates the VAT transaction type and VAT code, Record Input VAT, and Record Output VAT, where applicable. |
Treatment Group |
This field is available on the voucher header, AR pending item and Billing invoice header VAT pages. It is also tracked on POs, sales orders, and asset retirements, so that the value can be copied to vouchers and bills, but it is not shown on the VAT pages. For the transactions where treatment group is shown on the header VAT page, the VAT treatment values on all the lines for a given transaction must be members of the treatment group on the header. Clicking the Adjust Affected VAT Defaults button after making a change to the treatment group does not update any other VAT defaults. The main impact of changing the value is on the validation of the VAT treatment on the lines. In addition, changing the treatment group on the header will not affect or change the value of the treatment on the lines. |
These examples illustrate the behavior of the VAT defaults:
Example 1
The user overrides the Calculate at Gross or Net field and clicks the Adjust Affected VAT Defaults button. The system does nothing, because Calculate at Gross or Net is a VAT control field that does not affect any other VAT defaults. The user then overrides the vendor registration country and clicks the Adjust Affected VAT Defaults button once more. This time the system adjusts all the VAT defaults except the change to the vendor registration country. This includes the Calculate at Gross or Net field which the user must override again, if necessary.
Example 2
The user overrides the vendor registration country and clicks the Adjust Affected VAT Defaults button. The system adjusts all VAT defaults except the change to the vendor registration country and vendor registration ID. The user then overrides the place of supply settings and clicks the Adjust Affected VAT Defaults button once more. The system adjusts all VAT defaults except the service type, place of supply, vendor registration country, and vendor registration ID.
See Also
To manage VAT on interunit transactions, use the Business Unit Interunit Option component (VAT_BU_OPT) and the Business Unit Interunit Pairs component (VAT_BU_PAIR).
This section provides an overview of VAT on interunit transactions and discusses how to:
Specify accounting for VAT on interunit transactions by setID.
Handle exceptions to the accounting for VAT on interunit transactions for general ledger business unit pairs.
PeopleSoft software enables you to manage how you account for and report VAT on interunit transactions, including those that cross legal entities and VAT jurisdictions.
VAT accounting entries are divided into the following three types, or accounting entry groups:
Non-recoverable input VAT.
Other input VAT.
Output VAT.
Note. Output VAT recorded on purchases is included with other input VAT to ensure that the input VAT and associated output VAT are recorded together.
When entering transactions in PeopleSoft Payables, Expenses, and General Ledger, the transactions as a whole are associated with a general ledger business unit. However, you can enter a different general ledger business unit on the distribution line.
You use general ledger business unit source options to specify where you want the different types of VAT accounting entries to be posted. You can specify the general ledger business unit to be used for each of the three types of VAT accounting entries for interunit transactions as follows:
Distribution Line GL Business Unit.
This allows the specified type of accounting entry to be posted to the general ledger business unit on the associated distribution line.
Transaction (header) GL Business Unit.
This allows the specified type of accounting entry to be posted to the general ledger business unit associated with the transaction as a whole.
In addition, there are two ways to set up the general ledger business unit source options:
By setID.
This approach allows the same set of options to be shared by multiple general ledger business units. If you are using legal entities, you are able to set up separate sets of options for transactions that take place between two general ledger business units within the same legal entity and for transactions that take place between two general ledger business units that are in different legal entities. If you are not using legal entities, the options you specify are applicable to all types of interunit transactions.
By specific pairs of from and to general ledger business units.
The options defined for a specific pair of general ledger business units always override the options defined at the more general, setID level.
Note. It is only necessary to define options at this level for exceptions to what you defined at the setID level.
On the Procurement Accounting Controls, Expenses Business Unit, and General Ledger Business Unit pages, you are able to specify if non-recoverable VAT should be prorated and posted to the expense distribution ChartFields. If you have specified that non-recoverable VAT is to be prorated, then the non-recoverable VAT is always posted by the system to the Distribution Line GL Business unit along with the expense, regardless of the general ledger business unit option you define for non-recoverable VAT.
This example illustrates how an Italian business unit might generally record costs on behalf of business units in other VAT jurisdictions and how an exception in the handling of VAT for another Italian business unit is accomplished.
If an Italian business unit incurring costs for other business units must record, account for and report VAT, but the actual expense must be recorded in the other business units, you specify on the VAT Business Unit Option page for the Italian setID that the Transaction (header) GL Business Unit is used for each of the three different VAT accounting entry groups. This results in all the VAT accounting entries being created for the Italian business unit allowing the reportable VAT to be included on the VAT return for the Italian VAT entity. Only the actual expense is accounted for as an interunit entry between the Italian and other business units.
However, if business units other than the Italian business unit are generally required to record, account for, and report the VAT, you specify that the Distribution Line GL Business unit is to be used for each of the different VAT accounting entry groups. This enables you to create all the VAT accounting entries for the other business units, and, if appropriate, report them on the VAT return for the other VAT entities.
If the requirement is that the recoverable VAT be recorded by the Italian business unit, but any non-recoverable VAT be passed to the other business unit as part of the cost, you specify that the Transaction (header) GL Business unit be used for Other Input VAT, while the Distribution Line GL Business unit be used for Non-Recoverable Input VAT. In this case, the accounting entry for the recoverable VAT is created for the Italian business unit, while the accounting entry for the non-recoverable VAT is created for the other business unit. The recoverable VAT is then available to be reported on the VAT return for the Italian VAT entity.
Because the options you select on the VAT Business Unit Option are intended to govern how the VAT on most but perhaps not all interunit transactions is handled for the business units comprising the setID, you can define exceptions for transactions between specific business units on the VAT Business Unit Pairs page. For example, if an Italian business unit generally records, accounts for, and reports VAT on transactions with business units in other countries, but this is not intended to be the case for another Italian business unit, you can create the exception between the two business units by specifying the Distribution Line GL Business Unit as the source for the to Italian business unit.
Page Name |
Object Name |
Navigation |
Usage |
VAT_BU_OPT |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Business Unit Interunit Option |
Specify whether VAT on interunit transactions should be posted to the distribution line GL business unit or the transaction header GL business unit If you are using legal entities, you specify these options for IntraEntity and InterEntity. Otherwise, you specify these options for interunit. These settings determine which business units do the recording and reporting of VAT on interunit transactions. |
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VAT_BU_PAIR |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, Business Unit Interunit Pairs |
Enter exceptions to the VAT business unit options settings for specific business unit pairs. |
Access the Business Unit Interunit Option page.
SetID |
Specify how a business unit records each of the three types of VAT accounting entries by setID. Enter the setID that represents one or more general ledger business units that will be accounting for VAT on interunit transactions in the same way. |
InterEntity GL Business Unit Source and IntraEntity GL Business Source |
If you set up the system to use legal entities, you can specify the business unit source options separately for InterEntity and IntraEntity transactions. If the system is not using legal entities, you specify these options for interunit transactions. |
Distribution Line GL Business |
Select this option for each VAT accounting entry type that you want posted to the general ledger business unit at the distribution line level. For example, within PeopleSoft Accounts Payable this is the general ledger business unit specified on the distribution line. |
Transaction GL Business |
Select this option for each VAT accounting entry type that you want posted to the transaction, or header business unit. For example, within PeopleSoft Accounts Payable this is the general ledger business unit associated with the voucher as a whole. In other words, it is the general ledger business unit with which the vouchering Payables business unit is associated. |
Access the Business Unit Interunit Pairs page.
From GL Business Unit |
Enter the business unit for which you are creating the exception or exceptions. |
To GL Business Unit |
Enter business units that are exceptions. For example, if the from general ledger business unit generally records, accounts for, and reports VAT on interunit transactions involving VAT, you can specify that this be done instead by the to general ledger business unit when you select Distribution Line GL Business unit for each of the VAT accounting types. You can add multiple exception business units. |
Distribution Line GL Business |
Select this option for each VAT accounting entry type that you want posted to the general ledger business unit at the distribution line level. For example, within PeopleSoft Accounts Payable this is the general ledger business unit specified on the distribution line. |
Transaction GL Business Unit |
Select this option for each VAT accounting entry type that you want posted to the transaction, or header business unit. For example, within PeopleSoft Accounts Payable this is the general ledger business unit associated with the voucher as a whole. In other words, it is the general ledger business unit with which the vouchering Payables business unit is associated. |
This section provides an overview of VAT transaction table load, lists prerequisites, and discusses how to:
Set up the run request for the VAT Transaction Loader process (FS_VATUPDFS).
Run the VAT Transaction Loader process.
The VAT transaction table stores the detailed transaction information required for VAT reporting and is the primary source of information for all VAT reports. VAT transaction information is loaded into the VAT transaction table from PeopleSoft Payables, Billing, Receivables, Expenses, Treasury, General Ledger, and Asset Management through a background process. For each product, the transaction loader uses a VAT transaction source definition to determine what information should be selected from which tables. These VAT transaction source definitions are delivered with the PeopleSoft system.
To keep the VAT transaction table current, you need to periodically run the VAT Transaction Loader background Application Engine process (FS_VATUPDFS) that updates the VAT transaction table using VAT transaction information from PeopleSoft applications.
Before you run the process, the PeopleSoft application that is the VAT transaction source must have VAT-applicable transactions. You may also need to run application-specific processes to prepare the VAT transactions for the VAT transaction table.
See the PeopleSoft application PeopleBook for more information on whether you need to do this for the applications you have installed.
The following application processes must run on transactions before the transactions can be picked up the by the VAT Transaction Loader:
PeopleSoft Payables
Voucher Posting and, if applicable, Payment Posting.
PeopleSoft Receivables
Receivable Update.
PeopleSoft General Ledger
Journal Edit and Posting.
PeopleSoft Expenses
Post Liabilities.
PeopleSoft Treasury
Automated Accounting.
PeopleSoft Billing
Finalization and Currency Conversion.
PeopleSoft Asset Management
Calculate Depreciation and Create Accounting Entries.
Page Name |
Object Name |
Navigation |
Usage |
VAT_UPD_REQUEST |
VAT and Intrastat, Value Added Tax, VAT Processes, Transaction Loader, VAT Transaction Loader Rqst |
Run the Transaction Loader process that updates the VAT transaction table. |
Access the VAT Transaction Loader Rqst page.
Use this page to establish the parameters including run frequency and time for running the VAT Transaction Loader to update the VAT transaction table for the applicable entities, products, and business units.
Before setting up your run request or run requests, evaluate when you want to run the loader and for what VAT entities, products, and business units.
Process Frequency |
Select the appropriate frequency for the run request. |
VAT Entity |
Select the VAT entity for which you want to load VAT transaction data. |
All Products |
Select to run the process for all products. Otherwise you can specify a specific product or products for this run request using the Specify Products group box. |
Specify Products |
Specify the PeopleSoft application or applications for which you want to run the process. Add more rows as needed to add more applications to the list. |
All Business Units |
Select to run the process for every business unit associated with the selected VAT entity. Otherwise you can specify a business unit or business units using the Specify BUs group box. |
Specify BUs (specify business units) |
Specify the business unit or units for which you want to run the process. Add more rows as needed to add more business units to the list. |
You can include multiple entities on a request by adding new rows and specifying the applicable product and business unit settings.
Note. Create additional run control IDs as needed for different combinations of VAT entities, VAT transaction sources, and business units.
When you run the Transaction Loader process, the steps the process takes depends on the PeopleSoft application selected as the VAT transaction source. This table outlines the processing steps for each transaction source:
VAT Transaction Source |
Transaction Loader Process |
Links |
Inserts records in the VAT/ Billing cross-reference table to enable cross-referencing between the VAT transaction table and PeopleSoft Billing tables. Changes the VAT distribution status on the bill line to D for all the selected bill lines that processed successfully. The VAT transaction loader does not pick up bill lines until after the bills that contain those lines are invoiced, and the currency conversion process runs against the bills. Inserts records into the VAT transaction table for each valid VAT transaction that comes from the bill lines, and obtains the VAT document ID from the VAT entity. |
For each business transaction that is written to the VAT transaction table, the VAT/Billing cross-reference table (VAT_XREF_BI) enables linking between the VAT transaction record to the original business transaction. For PeopleSoft Billing, this links the entries in the VAT transaction table to the invoice that generated them. |
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Inserts records into the VAT/Item cross-reference table to enable cross-referencing between the VAT transaction table and PeopleSoft Receivables tables. Changes the VAT distribution status on the item activity VAT entry to D for all the selected item VAT lines that were successfully processed. The VAT Transaction Loader process does not pick up lines until after the Receivable Update process has successfully distributed them. Inserts records into the VAT transaction table for each valid VAT transaction that comes from the item VAT lines, and obtains the VAT document ID from the VAT entity. |
For each business transaction that is written to the VAT transaction table, the VAT/Item cross-reference table (VAT_XREF_ITEM) enables drillback from the VAT transaction record to the original business transaction and vice versa. For PeopleSoft Receivables, this links the entries in the VAT transaction table to the items that generated them. |
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Inserts records into the VAT/Voucher cross-reference table to enable cross-referencing between the VAT transaction table and PeopleSoft Payables tables. Changes the VAT distribution status on the voucher accounting line to D for all the selected voucher accounting lines that were successfully processed. Because the VAT transaction loader picks up information from the voucher accounting line, voucher and/or payment posting must be run before you run the Transaction Loader process. Inserts records into the VAT transaction table for each valid VAT transaction that comes from the voucher accounting lines and obtains the VAT document ID from the VAT entity. |
For each business transaction that is written to the VAT transaction table, the VAT/Voucher cross-reference table (VAT_XREF_VCHR) enables drillback from the VAT transaction record to the original business transaction and vice versa. For PeopleSoft Payables, this links the entries in the VAT transaction table to the voucher or payment that generated them. |
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Inserts records into the VAT/Journal Line cross-reference table (VAT_XREF_JRNL) to enable cross-referencing between the VAT transaction table and PeopleSoft General Ledger tables. Changes the VAT distribution status on the journal VAT line to D for all the selected journal VAT lines that were successfully processed. The VAT Transaction Loader does not pick up journal VAT lines until after the Journal Post process has validated and posted them and set the distribution status to N. Inserts records into the VAT transaction table for each valid VAT transaction that comes from the journal VAT lines and obtains the VAT document ID from the VAT entity. |
For each business transaction that is written to the VAT transaction table, the VAT/Journal Line cross-reference table (VAT_XREF_JRNL) enables drillback from the VAT transaction record to the original business transaction and vice versa. For PeopleSoft General Ledger, this links the entries in the VAT transaction table to the journal entry that generated them. |
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Inserts records into the VAT/Expense Accounting Entry cross-reference table to enable cross-referencing between the VAT transaction table and PeopleSoft Expenses tables. Changes the VAT distribution status on the accounting entry line to D for all the selected expense accounting lines that were successfully processed. Because the VAT Transaction Loader picks up information from the expense sheet accounting line, the Post Liabilities process must be run before running the Transaction Loader process. Inserts records into the VAT transaction table for each valid VAT transaction that comes from the expense accounting entries, and obtains the VAT document ID from the VAT entity. |
For each business transaction that is written to the VAT transaction table, the VAT/Expense Accounting Entry cross-reference table (VAT_XREF_EX) enables drillback from the VAT transaction record to the original business transaction and vice versa. For PeopleSoft Expenses, this links the entries in the VAT transaction table to the expense report accounting entries that generated them. |
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Inserts records into the VAT/Treasury cross-reference table to enable cross-referencing between the VAT transaction table and your bank statement transactions. Changes the VAT distribution status on the bank statement transaction to D for all the selected bank statement transactions that were successfully processed. Inserts records into the VAT transaction table for each valid VAT transaction that comes from the treasury transaction tables, and obtains the VAT document ID from the VAT entity. |
For each business transaction that the system writes to the VAT transaction table, the VAT/Treasury cross-reference table (VAT_XREF_TR) enables you to drill back from the VAT transaction record to the original business transaction and vice versa. For PeopleSoft Treasury, this links the entries in the VAT transaction table to the bank statement transactions that generated them. |
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Inserts records into the VAT/Asset Management cross-reference table to enable cross-referencing between the VAT transaction table and asset retirement transactions. Changes the VAT distribution status on the asset retirement transaction to D for all the selected asset retirement transactions that were successfully processed. After retiring an asset, Depreciation Calculation (AMDPCALC) and Create Accounting Entries (AMAEDIST) must be run before running Transaction Loader. Inserts records into the VAT transaction table for each valid VAT transaction that comes from the asset retirement tables, and obtains the VAT document ID from the VAT entity. |
For each business transaction that the system writes to the VAT transaction table, the VAT/Asset Management cross-reference table (VAT_XREF_AM) enables drillback from the VAT transaction record to the original business transaction and vice versa. For PeopleSoft Asset Management, this links the entries in the VAT transaction table to the asset retirement transactions that generated them. |
Note. In PeopleSoft Asset Management if you retire an asset in Asset Management and pass the information onto Billing, the VAT Transaction Loader does not get the VAT information from Asset Management but from the bill created in PeopleSoft Billing. However, if the retirement transaction remains in PeopleSoft Asset Management, the VAT Transaction Loader picks up the VAT information from Asset Management.
PeopleSoft Asset Management and VAT
Although VAT is recorded when you retire an asset, PeopleSoft Asset Management does not generate a financial document such as a VAT invoice. You have the option to send an asset retirement transaction to PeopleSoft Billing where an invoice is automatically generated. In this case, no VAT information is loaded into the VAT Transaction Table from PeopleSoft Asset Management. The invoice transaction is picked up by the VAT Transaction Loader from PeopleSoft Billing instead.
However, you also have the option to not send the retirement transaction to Billing and to not have the invoice generated automatically, In this case, if you want to manually record the sale of a retired asset in PeopleSoft Billing and PeopleSoft Receivables, you may record the VAT applicable to that sale a second time. In this case, you must ensure that the VAT does not get reported on your VAT return twice.
To avoid this, instead of using the VAT recorded in PeopleSoft Asset Management to generate your VAT return, you may prefer to simply use that information to assist you in entering the invoice for the sale of the asset in PeopleSoft Billing or PeopleSoft Receivables. In this situation, you may not want to copy VAT into the VAT transaction table for PeopleSoft Asset Management. (When you run the Transaction Loader, do not select PeopleSoft Asset Management as a VAT transaction source.)
If you do not want to include PeopleSoft Asset Management VAT transactions on your VAT return, assign a specific VAT transaction type to your asset retirement transactions. Then you can either exclude that VAT transaction type on any line in the VAT report definition or include it on an additional unprinted line on the VAT report definition.
To generate VAT reports, use the VAT Report Definition component (VAT_RPT_ID1), the VAT Return XML Data (AUS) component (VAT_XML_NODE) and the VAT Transaction Report component (LC_RPT_SETUP_GBL).
This section provides an overview of VAT reports, lists prerequisites, and discusses how to:
Review predefined VAT report definitions.
Create or update a VAT report definition.
Complete the VAT Transaction Report Setup.
(AUS) Maintain XML meta-data for the e-BAS report.
Run the VAT Report Extract (VAT1001).
Run reports used for producing a VAT return and auditing its line items.
Run VAT reconciliation reports (VAT2000).
Create VAT audit file extracts.
(AUS) Run the electronic return for the e-BAS (VAT0650).
(ITA) Generate Italian sales and purchases VAT registers.
So that you can comply with government regulations, PeopleSoft software provides VAT reports for you to use in the preparation of your VAT returns.
PeopleSoft software delivers:
Predefined VAT returns for Australia, Belgium, Canada, France, Germany, Italy, Luxembourg, Spain, the Netherlands, Switzerland, and the United Kingdom.
Prior to running these reports in your system, you must first modify the report definitions by specifying the information you want to print on each of the lines, based on the VAT codes and VAT transaction types you have defined in your system.
A VAT transaction SQR report (VAT0150.SQR).
This report lists all VAT transactions for the selected period by customer, vendor, and other sources.
A Crystal report for the EC Sales List.
This report lists all sales made to customers in a foreign country within the EU.
VAT reconciliation reports.
A VAT transaction XMLP report for details of the accumulated amount on each VAT report line.
VAT audit file extracts and reports for tax auditing purposes.
Creating and Defining VAT Return Reports
You can use any of the predefined Crystal reports or the SQR transaction report by linking each report to your VAT entity. You can also modify or write a VAT Crystal or SQR report and run the modified report by linking it to the VAT entity.
Creating a VAT return report is a three-step process:
Create a report definition that includes the VAT codes and VAT transaction types you created, and the system-defined VAT accounting entry types.
You must create a VAT report definition for each type of VAT report you want to generate.
Run the VAT Report Extract process that applies your VAT report definitions to the VAT transaction data in the VAT reporting tables.
This process selects transactions from the VAT transaction table and stores VAT transaction information in the VAT reporting tables. You run the Report Extract for a specific VAT entity and country, indicating the type of report you want to produce as well as various date selection criteria. Each time you run the Report Extract process, a report instance is created. The transactions in the VAT transaction table that were selected by the Report Extract process are all linked to this report instance.
Run and print VAT return reports for a VAT entity.
To define VAT reports:
Determine what information is required on your VAT report on a line-by-line basis.
You might start by using an empty official tax return form to determine which information you want to print on each line of your VAT report.
Specify, for each line on your report, a combination of values for the VAT codes, VAT transaction types, and VAT accounting entry types for which you want the VAT report to print transactions.
Create or modify a corresponding Crystal or SQR report.
There are three different types of return reports that can be produced:
VAT returns
EC sales lists
Other
Any given VAT transaction can only be selected once to appear on a report with a return report type of VAT return and once to appear on a return report with a report type of EC Sales List. However, prior to printing these types of return reports as final reports, the report instance can be deleted, enabling you to select the VAT transactions again for that report type. A VAT transaction can be selected to appear on any number of return reports with a report type of Other.
When you print a return report, you select the report instance for the report you want to produce. You have three print options:
Draft |
This option enables you to print your return report for purposes of review without finalizing it. At this point, you can still delete the report instance and start over. |
Final |
Once you print a return report as final, you can no longer delete the report instance. For VAT return or EC sales list reports, the VAT transactions cannot be selected again to appear in a report with that specific report type. |
Reprint |
This option enables you to reprint a return report that has previously been printed as final. |
Understanding the VAT Transaction Report
PeopleSoft Enterprise VAT functionality provides for the reporting of VAT data from ledgers and tables based on country specific report layouts, which are referred to as VAT report definitions. These definitions are used in the preparations of the actual VAT returns. Most VAT report definitions are designed to report accumulated amounts by specific transaction types, such as sales, purchases, export, import, and domestic transactions from the VAT related tables at various VAT rates.
The VAT Transaction Report provides the details of the totals on VAT returns for use in audits and for the justification of the accumulated amounts that are reported in VAT returns. The VAT transaction report can provide a list of all transactions accumulated for a specific line or box on a delivered VAT return if the VAT return does not have embedded logic or formulas that prevents a direct reconciliation with the related, or underlying, transactions. The VAT transaction report is built from and based on the same set of data from which the VAT return values are derived for a specific line or box on the VAT return but instead of giving a summarized amount, it retrieves the detailed information.
Information comes from the reporting tables (VAT_RPT_INSTx), the VAT transaction table (VAT_TXN_TBL), and the VAT Cross Reference tables with source transactions (VAT_XREF_xxxx). Additionally, you have the ability to drill down to the source transaction in AP, AR, BI, GL, TR, EX or AM. The VAT transaction report is a single generic report for all country specific VAT returns. It uses the VAT report definition to assimilate and present the VAT return data. So, any new delivered VAT returns will automatically be a candidate for generation of the VAT transaction report as long as the return uses a VAT report definition.
However, some additional setup is required to allow for a relevant reconciliation between the vat return and the transaction report. The detail report is dependent on the VAT reporting architecture including VAT report definitions, VAT transaction loader, VAT extract and the VAT return run control page. The VAT Transaction Loader and VAT extract processes must be used to populate the VAT reporting tables, otherwise the VAT transaction detail report is not able to retrieve data.
If you are using an in-house, or customized, VAT reporting solution you will not be able to use them to generate the VAT Transaction detail report.
The transaction report is based on XML Publisher technology and the output format can be either an Excel spreadsheet, html, or a pdf file.
You can use the Burst by Report Line option to produce multiple smaller output files by VAT report line item or amount rather than a large single output file, and thereby make the report more manageable. This is particularly useful if you want to produce a Microsoft Excel report but the limit of 64,000 lines might present a problem.
Oracle PeopleSoft provides XML Publisher functionality and delivers two XML report definition templates.
The Burst Transaction Report definition (LC_RPT_VAT_B) is provided for use by the system when you select the Burst by Report Line option and allows multiple transaction reports to be generated by individual VAT report line item.
The VAT Transaction Report definition (LC_RPT_VAT_N) is provided for use by the system when bursting is not used because the size of the report is not an issue.
Whether or not you use bursting, if a resulting report contains more than the maximum number of transactions specified on the run control and the output format is Excel, then the report automatically uses the default output format specified on the report definition page. However, if that default is Excel, then the system will automatically use the pdf format. When using bursting, the limit is applied based on the number of transactions existing for a single report line. If you are not using bursting, then the limit is applied based on the number of transactions for the entire report.
You can readily change the default output format type on the report definition page; however, changing other parameters should be done advisedly because it may prevent the transaction report from being properly produced.
Some VAT returns may use complex formulas or if-then or end-if instructions to calculate amounts. Such complex algorithms are not supported by the VAT transaction report, and so this report may not be able to justify all lines for all VAT returns. In addition, if a VAT return has lines or boxes that do not have a VAT report definition line associated with them, such as lines that are just totals or have complex logic that cannot be translated into a VAT report definition line, then the lines by their very nature will not show up on the VAT transaction report.
Use the run control page (VAT_RPT_INST1) that is used to launch VAT returns to also run the VAT Transaction Report. This enables you to use the same set of data to produce the VAT Transaction Report and the official VAT return at the same time.
Reporting VAT on Third-Party Vouchers
When creating a VAT report definition that includes recording VAT on third-party vouchers confirm that the transactions are included correctly and only once.
Both the voucher lines from the original supplier invoice and the third-party voucher are loaded into the VAT transaction table. Confirm that the VAT transaction type that is specified on the third-party voucher differs from the value that the original invoice specifies. This allows you to distinguish between the two lines and to determine which one to include on any given line in the VAT return.
You can set up defaults to allow different VAT transaction types to default onto your transactions automatically. You can do this by defining a specific set of default VAT transaction types for each third-party vendor.
Before you can generate and run reports:
If you are generating reconciliation reports and audit extracts, the following PeopleSoft applications must have generated accounting transactions: PeopleSoft Receivables, Billing, Payables, Expenses, Asset Management, Treasury, and General Ledger.
Additionally, some products must have generated accounting entries prior to running the VAT Transaction Loader. Refer to the specific PeopleSoft application PeopleBook for details on whether this is required for the particular application.
The VAT Transaction Loader process must have loaded VAT transactions into the VAT transaction table.
Language |
Select the language for the report. |
Run |
Click the run button to define the parameters (date, time, frequency) for running your reports. |
Page Name |
Object Name |
Navigation |
Usage |
VAT_RPT_ID1 |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Report Definition, VAT Report Definition |
Create or update a VAT report definition by defining the lines to be included in the VAT report. |
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VAT_RPT_ID2 |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Report Definition, VAT Report Definition, Line Criteria |
Define the fields that should be used as the selection criteria for each line that you defined on the VAT Report Definition page. |
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LC_RPT_SETUP |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Transaction Report Setup, Vat Transaction Report Setup |
Set up for the VAT transaction report that provides details of the amounts making up the totals on VAT returns for use in audits and for the justification of the accumulated amounts that are reported on VAT returns. |
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VAT_XML_NODE_ENTRY |
Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Return XML Tags, VAT Return XML Tags |
(AUS) Maintain XML metadata for the electronic Business Activity Statement (e-BAS). If the Australian Tax Office (ATO) changes the e-BAS, use this page to update the format. |
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VAT_XML_NODE_SEC |
Click the Detail button on the VAT Return XML Tags page. |
(AUS) View or update meta-data details for the e-BAS report. |
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VAT_RPT_RQST |
VAT and Intrastat, Value Added Tax, VAT Processes, Report Extract, VAT Report Extract |
Run the VAT Report Extract process (VAT1001) to extract specific VAT transactions to the VAT reporting tables in preparation for printing VAT reports. |
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VAT_RPT_INST1 |
VAT and Intrastat, Value Added Tax, VAT Reports, Return and Other Reports, VAT Reports |
Run reports used in producing and reconciling your VAT return, including the VAT Transaction report for line item detail. |
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VAT_RPT_INST_DTL |
Click the Details link on the VAT Reports page. |
View information about a report instance, including the run parameters and reporting history. |
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RUN_VAT2000 |
VAT and Intrastat, Value Added Tax, VAT Reports, Reconciliation Reports, VAT Reconciliation Rpt |
Run the VAT Reconciliation report (VAT2000) to help in the reconciliation of your VAT accounts and for tax auditing purposes. |
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RUN_VAT2000_EXT |
VAT and Intrastat, Value Added Tax, VAT Reports, Audit File Extracts, VAT Audit File Extracts |
Create VAT audit file extracts containing VAT transaction information to be used for tax auditing purposes. |
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VAT_RPTG_RQST2 |
VAT and Intrastat, Value Added Tax, VAT Reports, Electronic Return |
(AUS) Run the electronic return for the e-BAS (electronic Business Activity Statement ) (VAT0650). After you run a final VAT report, run this process to create a flat file for transmission. |
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VAT_REGISTER_RQST |
VAT and Intrastat, Value Added Tax, VAT Reports, VAT Register ITA |
(ITA) Generate Italian sales and purchases VAT registers (VAT0910). |
Although you can create your own VAT returns and reports using the VAT Report Definition component, PeopleSoft software also delivers predefined VAT returns for a number of countries. The following table lists the predefined VAT report definitions provided with PeopleSoft software:
Report ID |
Definition |
CAVATRPT |
VAT report for Canada. |
VAT return for the United Kingdom. |
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Access the VAT Report Definition page.
Enter a description, short description, and setID.
Line and Description |
Enter the number of each report line you add and a description for the line. |
Include in Report Total |
Select if you want the transaction to be included in the calculations. |
Note. For the predelivered VAT Returns defined by PeopleSoft applications, it is important to note that the line number on the report definition corresponds to the line numbers or box numbers on the appropriate Crystal layouts. Depending on the layout for each country, those numbers are not necessarily sequential, and the numbers do not necessarily start with one. Before you make changes to the report definition, print a sample report to get an understanding of line numbers and box numbers, if applicable, and the information required on each line of the VAT Return.
Defining Data Selection Criteria for Each Report Line
Access the VAT Report Definition - Line Criteria page.
For each VAT line you define line criteria.
The key element in defining your VAT report is the selection of the combinations of VAT code, VAT accounting entry type, and VAT transaction type for which you want VAT amounts or taxable amounts included on your report.
Field Name |
For each line, specify which fields should be used as selection criteria using this field. The values are: VAT Accounting Entry Type, VAT Code, and VAT Transaction Type. Depending on which field name you select, the Criteria group box presents a field where you can indicate the specific VAT codes, accounting entry types, or transaction types to be included on each line. You do not need to specify selection criteria for all three fields. When a given field is not selected, the system selects all field values for that field. |
Depending on your field selection, you can define the following:
VAT Field Name Selection |
VAT Reporting Definition Field Values |
VAT Accounting Entry Type |
VAT accounting entries to include. |
VAT Code |
VAT codes to include. |
VAT Transaction Type |
VAT transaction types to include. |
You may want to start by specifying the types of VAT transactions that should be included on that line. Select the VAT accounting entry type to indicate the general types of VAT entries that should be selected, such as VAT Output (VO) or VAT Input (VI). Select the VAT transaction type to include, or effectively exclude, specific types of VAT transactions, such as domestic purchases or exports. Once you have determined the types of transactions that should be selected for a given line, select the VAT code if you only require VAT information for specific VAT rates to be reported on that line.
By combining these selection criteria, you can fine tune the information that appears on each line. For example, you may have specified that transactions with VAT accounting entry types of VO (VAT output) and VOP (VAT output on purchases) should be selected. You might then further specify that, for those VAT accounting entry types, only transactions with VAT transaction types that indicate domestic sales and services provided by foreign vendors should be selected. On another line, you can again specify the selection of transactions with VAT accounting entry types of VOP, but this time also indicating that only transactions with VAT transaction types that indicate intra-EU acquisitions should be selected. By not specifying any VAT codes for these lines, you are enabling the selection of transactions with all VAT codes that meet the other specified selection criteria.
Warning! When reporting VAT included on third-party vouchers, you must be very careful to make sure that these transactions are included correctly—and are included only once.
See Understanding VAT Reports.
Access the VAT Transaction Report Setup page.
This page is populated automatically based on an existing report definition. However, additional setup determining what information is reported for each line and how it will be displayed must still be defined. VAT report definition rows may not be added or deleted from this page. Because the data set is shared with the VAT report definition, addition or deletion of VAT report lines is done using the VAT report definition component.
Report ID |
Select the desired VAT report. |
Line Number andDescription |
Displays the VAT report line number and its description as defined by the VAT report definition. |
Official Line ID |
Enter the official line ID if the Line Number field does not match the line identifier that appears on the specified VAT return. This can occur because the Line Number field (VAT_RPT_LINE_NBR) is numeric and the official line number contains characters, or because the official line number is the sum of several vat report definition lines. For example, in the delivered Belgium VAT report, BEVATRTN, the first line number is 00, which cannot be stored in the current Line Number field because it is a numeric field. The value in this field is used in the group header and total. This value automatically defaults to the Line Number. You can override this value with the required Official Line ID value if required. The Internal Line ID in the detail section of the report shows the actual internal Line Number for reconciliation purposes. |
Include lines in total |
Enter report definition lines that are to be merged in the line number. This is a free text field, which means the detail section can contain data coming from several vat report definition lines. Enter the real VAT report definition Line Number here, not the Official Line ID. Each line number must be separated by a comma. This real vat report definition line value is shown in the Internal Line ID column of the report detail section even if accumulated in another report definition line. If the Include lines in total field is empty, the field is ignored. When line numbers are entered here, transactions associated with those VAT report definition line numbers are included in the current vat report definition line detail information. An error message is issued at save time if the field syntax is incorrect. The system checks that only integers and commas are entered in the field. Formulas that are defined for the current, main report line are applied to all report lines that are included in the current line. If formulas are defined for lines that are included in another line, those formulas apply only to the line where the formula is defined. |
Hide Line |
Select to hide a vat report definition line for the vat transaction report. This is helpful when lines are defined to be included in another line total but do not show up on the vat return themselves. |
No Direct Total Match |
Select for vat report definition lines that cannot allow a direct reconciliation between the vat return and the vat transaction report. This is mainly due to a vat report definition having formulas embedded in the VAT Crystal report. In such cases, the transactions and their totals are still listed, along with a comment stating that transaction totals might not match the VAT return value due to complex formulas. |
Column Number |
Defines the order of the amount columns in the report line. Numeric only, it must be sequential and less than 4. |
Description |
This description is shown as the column header on the VAT Transaction report. This label is prefixed by an * when formulas, absolute values, modifiers, and so on are used to modify the amount. |
Amount Type |
Select VAT amounts to be reported in the vat transaction report. For each vat report definition line, up to 3 amount columns can be printed on the justification report. Each of these refers to a specific vat amount or formula:
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Abs (absolute) |
Select the check box if the absolute value of an amount is to be used. |
Operator |
Use the operator in conjunction with the Modifier field. Select one of the 4 basic operators (+, -, *, or /) if the vat report line requires that you to apply these calculations. The amount printed in this column on the vat transaction report will be the final outcome after these calculation are applied. The original amount type is not printed. If visibility of the original amount is required, an additional column may be defined to display it. |
Modifier |
Use this field in conjunction with the Operator field by specifying the amount by which the Amount type selected from the drop down list should be modified. For example, if the Amount type output is 100 and the operator is * and the modifier is 11, the final result printed in that column will be 1100. This is a numeric field. If you select / as the operator, zero cannot be chosen as a modifier. If you leave the operator blank, the modifier value is ignored. |
See Understanding VAT Reports.
Access the VAT Return XML Tags page.
Enter an effective date and status.
Maintaining XML Meta-Data
Description |
Enter a description for the e-BAS (electronic Business Activity Statement) XML definition. For example, the version of the e-BAS from the ATO (Australian Tax Office) that you are currently using. |
Renumber From |
If you add rows, use this field to specify the sequence number where you want to insert the new row and the system will renumber all of the subsequent rows when you click the Renumber button. |
Renumber |
Click to execute renumbering of the rows. |
Sequence Number |
Identifies each node detail and determines the row sequence in the file. The sequence numbers must be contiguous. |
Level |
Enter to determine the hierarchy (indentation) of the row sequence. |
XML Tag |
Enter the XML Tag descriptor for the type of XML data: field, value, edit state, field list, origin, or ECI (electronic commerce interface). |
Parent Seq # (parent sequence number) |
Enter the parent to the level you select. |
Detail |
Click to access the XML Note Detail page to view XML meta-data details. |
Viewing or Updating Meta-Data Details
Access the XML Node Detail page.
XML Source |
Select the appropriate XML source from the following options: Source: XML detail. None: No value specified. Array: Cells G1 to G20 of the BAS (Business Activity Statement). Constant: Constant value specified. Field Val (field value): Permits specification of a field from the VAT_RPT_INST1 table. Runtime: Value defined on the Electronic Return run request page on which you define parameters for generating the e-BAS flat file. This page is described later in this section. |
XML Detail |
Enter a description for the XML source you are defining. For example, if you select Array as the XML source, use the XML detail to describe the placement of the source in the cells. |
XML Attribute and XML Detail |
Enter the XML attribute according to the XML source you select. For example, if you select Field Val as the XML source, enter the XML ID that describes the type of cell. Enter the XML Detail according to the XML source you select. Again, for example, if you select Field Val as the XML source, enter the field number of the report. |
Access the VAT Report Extract page.
Here you set up your run requests for extracting data in preparation for printing your VAT report.
Enter a description and short description.
VAT Entity and Country |
Select the entity and country for which you want to extract VAT transaction data. |
Report ID |
Enter the name of the report for which you are running the report extract. |
Report Type |
Select the type of report. Valid values are: Other: Select to produce any type of report other than a VAT Return or EC Sales List. Use to select the same VAT transactions repeatedly. Return: Select to report the VAT transactions in the specified date range on a VAT Return. You can make this selection only one time. If you have already selected Return for the transactions in the specified range, the process will not pick up these transactions again. Sales List: Select to report the VAT transactions in the specified date range on an EC Sales List report. You can make this selection only one time. If you’ve already selected Sales List for the transactions in the specified range, the process will not pick up these transactions again. |
Rate Type |
Specify the currency exchange rate type the system should use to convert VAT amounts into the reporting currency. |
Report Date |
Enter the date you run the report. |
Report From Date and Report Thru Date (report through date) |
Enter the date range to print on the report as the date range of the return you are submitting. |
Select Transactions From and Select Transactions Thru (select transactions through) |
Enter the date range to determine the transactions selected for the report. You can use these fields to extend the transaction selection beyond the date range for the tax return. For example, if you had missed some transactions from a previous quarter, you can include the missed transactions in the current quarter’s figures by including the previous quarter in the date range you define. Only the missed transactions are added to the current quarter’s figures. |
You are now ready to run the extract process.
Each time you run the VAT report extract process, the system creates a report instance. The transactions in the VAT transaction table are linked to this report instance. You select the report instance you want to use when you are preparing to run your VAT report on the VAT Reports page.
Access the VAT Reports page.
Print As |
Select from the following values: Draft: You can reprint the report as many times as necessary. Final: Print a final report. Reprint: If you have printed a report as final, you can reprint the report as many times as needed. |
VAT Entity and Country |
Specify a VAT entity and country for the report. The system retrieves only those report instances run for this entity and country combination. |
Refresh |
Click to retrieve the report instances created by the VAT Report Extract process for the specified entity and country combination. The report instances display in the VAT Reporting Results group box. |
VAT Reporting Results |
Displays the report ID, a description of the report, the report date, report type, and the instance for each report extract that has been run for this VAT entity and country combination. |
Select |
Click this check box for the report instance for which you want to print the VAT report. |
Details |
Click to access the Detail page to view details for a report instance. |
Note. For VAT returns and EC sales lists, any given VAT transaction can be selected only once for a report. However, prior to printing these types of reports as final reports, the report instance can be deleted, enabling you to select the VAT transactions again for that report type. For other types of reports, this restriction does not apply.
Transaction Report Options
After completing the VAT Transaction Report Setup page, you may specify additional options for producing the VAT Transaction Report that shows line item details for the VAT return. The transaction report can be run at the same time or before or after you run the VAT report using the same run control page (VAT_RPT_INST1) that is used to run the VAT report.
As with the VAT return, a report ID and process instance must be selected in the VAT reporting result grid to launch the VAT transaction report.
Note. The same set of data can be selected to provide both the transaction report and the VAT return report in the same run; however, the VAT transaction report options only apply to the VAT transaction report. While the VAT transaction report may or may not be run at the same time as the VAT report, the transaction report must be run after the VAT extract.
Use Filter Options |
Click this check box and the From Line and To Line become available with associated lookup for the line values. |
From Line and To Line |
Select line values to run the report for one or a range of VAT report definition lines. Use the search function to retrieve valid line numbers based on the report ID present in the VAT reporting results scroll area. If multiple reports are present in that grid, the prompt can retrieve values from all the vat report definitions. No edit is performed to ensure that the from and to values are for the same report. Ensure that the from line number is less than or equal to the to line number, otherwise an error is issued. If the specified report lines do not exist for the report definition, the report retrieves nothing. If both fields are empty the system treats this as an entry of zero, and only returns lines with a line number of 0. If you do not want to use the filter option, clear the Use Filter Options check box. If the from field is not specified but the to line is specified, lines are considered to be designated from the beginning. If the to line field is not specified but the from line is specified, values are considered as all lines until the end. By default, if the to line field is empty, it is populated with the from line value when the from value is changed. |
Sorting Criteria |
Enter criteria to sort detailed transactions within a VAT report line. You can specify up to 3 sorting criteria for the report detail section. The same field value cannot be used more than once in the grid and no more than 3 rows can be present in the grid at save time. The main report section is by VAT report line definition. These lines are printed in the sequential order as determined by the report definition. Sorting criteria applies to the transactions listed for each report line. |
Sort Order |
Enter a number used to determine the order in which the sort criteria fields are applied. |
Order By |
Enter the name of the fields to be used as sorting criteria. The same field value cannot be used more than once in the grid and no more than 3 rows can be present in the grid at save time. If no rows are present in the grid, no user defined sorting criteria is used. Because database field names are used, be aware that fields like CUST_ID and VENDOR_ID show up in the same third party field in the report output. Because a transaction only points to either a vendor or customer, it might be better to use both fields in conjunction. Also, some transactions do not involve a third party and the sort criteria will be ineffective for such transactions. Note. The main report section is by VAT report line definition. These lines are printed in sequential order as determined by the report definition. Sorting criteria applies to the transactions listed for each report line. |
Maximum Transaction Count |
Use this field to split the output data to accommodate the MicroSoft Excel format limit of 64,000 lines per spreadsheet. If the selected output type is Excel and the number of rows entered in this field is reached, the default output format is used instead. However, if the default output format is Excel, then pdf is used. This enables the system to work around the Excel limit. If the field is left blank, it is ignored by the process. Note. Because report output includes headers and totals, these rows must also be taken into consideration in the 64,000 limit. For example, if 63500 transaction rows are found in the table, it is likely that the overall number of rows might exceed the 64,000 lines due to rows required by the headers and totals. |
Burst by Report Line |
Click to split up the report output by report line. This enables you to produce multiple smaller output files rather than a single huge output file. Bursting by report line is especially advantageous when the output type is xls. When bursting is used, the maximum transaction count is checked by report line for the output file and not by report. Additionally, if Excel has been specified as the output format and Burst by Report Line is used, the default output format or pdf will be used only if any given report line exceeds the specified maximum number of transaction lines. |
Viewing Report Instance Details
Access the VAT Reports - Detail page.
Report ID and Description |
ID and a description of the report definition used for the report extract. |
Report Date and Report Type |
Date of the report extract and type of report extract run. |
Process Instance |
Process instance for the report extract assigned by the system. The VAT transactions are linked to this process instance. |
Run Date and Time |
Date and time on which the report extract was run. |
Report Transactions From and Report Thru Date (report through date) |
Date range of the transactions selected for the report extract. |
Country |
Country for which the report extract was run. |
VAT Registration ID |
Associated VAT registration ID for that country which will print on the report. |
VAT Reporting History |
Lists the printing history. |
Lists the transactions that are not included in the report and why. Use this section to associate transactions not selected with the report instances to prevent those transactions from being treated as exceptions for future reports. The transactions may include: Transactions that exist in the VAT transaction table for the date range entered on the extract page, but do not meet the criteria specified by the VAT report definition. This does not necessarily indicate that the transactions are in error. For example, transactions indicated as outside of the scope of VAT may exist in the VAT transaction table, but printing them on a VAT return may not be required. Note. You can prevent transactions that are not required on a VAT return from being specified as exceptions in the first place by
creating an additional line on your VAT report definition to pick up these additional transactions. In this way, the transactions
do not show up as exceptions, but also do not appear on the report. |
|
Lists the missing exchange rates needed to calculate the VAT amounts displayed. |
Note. The Transactions Not Selected and No Exchange Rates Available fields only display if there are exceptions.
If a transaction has not been selected in error or if no exchange rate exists, you must correct the problem that caused the error, delete the report instance, and rerun the VAT report extract. This enables all the previously selected transactions plus the transactions flagged as exceptions to be selected for the report.
Once you have reviewed the instance details and are satisfied that you have selected the correct instance, you are now ready to run the VAT report.
Access the VAT Reconciliation Rpt page.
VAT Report Type |
Select from the following: Account Balance Reconciliation: For a specified range of VAT-applicable accounts and dates, allows comparison of the amount of expected VAT to the amount of VAT that was actually posted for VAT transactions that have been recorded in PeopleSoft Payables, Receivables, Billing, Asset Management, Expenses, Treasury, and General Ledger. This report also allows the total amount of posted VAT reported for each VAT account to be compared to the GL balance for that VAT account. Account/VAT Account Recon (Account/VAT Account Reconciliation): For a specified range of accounts and dates, lists the taxable basis amounts as well as corresponding VAT amounts calculated from VAT transactions that have been posted by PeopleSoft Payables, Receivables, Billing, Asset Management, Expenses, Treasury, and General Ledger. Taxable Basis Reconciliation: Verifies that the VAT Basis amounts stored on the VAT Transaction Table, multiplied by the appropriate VAT percentage, is equal to the actual VAT amount also stored on the same table. VAT Transaction Reconciliation: Provides an overview of VAT transactions generated by PeopleSoft Payables, Receivables, Billing, Asset Management, Expenses, Treasury, and General Ledger applications and verifies if those transactions have been reported on a VAT Return Report. Zero VAT Justification: Illustrates why no VAT was collected or paid. |
Report Detail |
If you are running the Taxable Basis Reconciliation, the VAT Transaction Reconciliation report, or the Account Balance Reconciliation report, select if you want to view the report as Summary or Detail. If you select Detail, the report prints one line for each VAT transaction. If you select Summary, VAT information is printed on an aggregated level. Note. The Zero VAT Justification and Account/VAT Account Recon reports are always detail reports. |
Print Exceptions Only |
For the Taxable Basis Reconciliation report, the VAT Transaction Reconciliation report, or the Account Balance Reconciliation report, select to display discrepancies. This table lists the content for each of these reports if printed as an exception: |
Report |
Content of the Report |
Taxable Basis Reconciliation report |
Transactions for which the posted VAT amount and the calculated VAT amount (calculated as VAT basis amount multiplied by the VAT percentage) differ. |
VAT Transaction Reconciliation report |
Transactions that have not yet been printed on a final VAT return report. |
Summary option for the Account Balance Reconciliation report |
Accounts for which the general ledger balance does not match the total taxable basis amount. |
Detail option for the Account Balance Reconciliation report |
Detail lines for accounts with a difference between the GL balance and total taxable basis amount, as well as all detail transactions for which the accounting date falls into a different fiscal period than the VAT declaration date. |
VAT Entity and Country |
Select the VAT entity and country combination for which you want to generate the reconciliation report. |
Business Unit |
If applicable, you can also run this report for a specific business unit. |
Alternative Sort Criteria |
If you are running either the Taxable Basis Reconciliation or the Zero VAT Justification report, select to sort by discrepancies in descending order. For the Taxable Basis Reconciliation report, transactions are sorted by the difference amount calculated as the posted VAT amount minus calculated VAT amount. For the Zero VAT Justification report, transactions are sorted by VAT basis amount. |
Tolerance Amt (tolerance amount) |
If you are running the VAT Transaction Reconciliation report, you can enter a tolerance amount. VAT transactions are printed only when the posted VAT amount and the calculated VAT amount (calculated as VAT basis amount multiplied by the VAT percentage) differ by more than the amount entered. |
Report From Date and Report Thru Date (report through date) |
Specify the date range for the transactions to include in the report. |
Select By |
Use this group box to enter a range of ChartFields to include if you are running either the Account Balance Reconciliation or Account/VAT Account Recon report. |
You are now ready to run the VAT reconciliation report.
See Also
PeopleSoft Financials Global Reports
Access the VAT Audit File Extracts page.
Select the VAT extract type from the following:
VAT Extract Type |
Description |
AP, GL, Expenses, Treasury |
Extracts PeopleSoft Payables, General Ledger, Expenses and Treasury VAT data from the Payables, General Ledger, Expenses, and Treasury tables. |
Asset Mgmt Transactions |
Extracts asset retirement VAT data from the Asset Management tables. |
Billing Transactions |
Extracts Billing VAT data from the Billing tables. |
General Ledger Journals |
Extracts General Ledger journal data from the General Ledger tables. |
Input VAT Transactions |
Extracts VAT Input transactions from the VAT transaction table for Payables, Treasury, and Expenses, and both VAT Input and Output transactions for General Ledger. It also retrieves information from the corresponding source tables. For example, for Payables transactions it retrieves the related voucher and vendor information. |
Output VAT Transactions |
Extracts VAT Output transactions from the VAT transaction table for Asset Management, Receivables, and Billing. It also retrieves information from the corresponding source tables. For example, for Billing transactions it retrieves the related sales invoice and customer information. |
Receivables Transactions |
Extracts Receivables VAT data from the Receivables tables. |
VAT Entity and Country |
Select the VAT entity and country combination for which you want to generate the audit extract report. |
Business Unit |
If applicable, you can also run this report for a specific business unit. |
Output File Name |
Enter the path and file name for the extract file. |
Print Summary Totals |
Select to summarizes the data content of the extract files in the report. |
Report From Date and Report Thru Date (report through date) |
Specify the date range for selecting transactions for this report. |
Refresh |
Click to populate the ChartField Selection group box with a listing of ChartFields. |
Include CF (include ChartField) |
Select to include the listed ChartField in the report. |
You are now ready to run the VAT audit report.
See Also
PeopleSoft Financials Global Reports
Access the Electronic Return page.
Note. The VAT report for the BAS (Business Activity Statement) must be printed as final before the data can be extracted into the flat file for submission to the ATO (Australian Tax Office).
Process Instance |
Select an instance from the list of finalized BAS report instances. The report instances are listed in descending order with the most recent report listed first. |
Report ID |
Select the report ID for the report. |
Output Destination |
Enter the directory to which the file is written. You can include the file name. However, do not include the file name if you want to use a field value as the file name. You specify this by selecting the File Identifier check box in the VAT Reporting - XML Detail group box. |
XML ID |
Select an XML ID from the available options. |
Fetch |
Click to load the fields specified at runtime and display the VAT reporting XML detail. |
Sequence Number and Description |
The sequence number displays the DIN (document identification number), which is typically a runtime variable. The DIN is a unique number given to each tax period return and is not stored in the PeopleSoft application because of its dynamic nature. To include a DIN as the file name, select the File Identifier check box for that DIN. |
XML Detail |
Displays the runtime field values. Enter or change runtime values here. |
File Identifier |
Select this check box to use the DIN as the electronic file name. |
You are now ready to run the electronic return.
See Also
PeopleSoft Financials Global Reports
Access the VAT Register ITA page.
VAT Reporting Entity and VAT Reporting Country |
Select the VAT entity and country combination for which you want to generate the report. |
VAT Register Type |
Select from the following: VAT Purchases Register and VAT Sales Register. |
Journal Code |
Select the journal code. |
Document Type |
Use to select the document type to use for the selected journal code. This is optional. |
Exchange Rate Type |
Select the type of exchange rate you want the system to use to convert VAT amounts into the reporting currency. |
From Document Date and To Document Date |
Use to specify the date range for the documents to be included. |
Detail or Summary |
Select whether to run a Detail or Summary report. |
You are now ready to run the report.
See Also
PeopleSoft Financials Global Reports