PeopleSoft Enterprise Cash Management 9.1 PeopleBook

Processing VAT Transactions in Treasury Management

This chapter provides an overview of processing Value Added Tax (VAT) in Treasury Management, provides the prerequisite tasks to setup and process VAT, and discusses how to:

Set up VAT for Treasury Management.
Edit VAT External Transaction details.
Create VAT transactions for fees.
Create VAT transactions using Automatic Reconciliation.
Manage VAT accounting.
Process final Treasury Management VAT transactions.

Understanding VAT Processing in Treasury Management

The VAT functionality in Treasury Management enables you to automatically process VAT accounting entries for VAT applicable transactions. Your use of VAT in Treasury Management deals in large part with setting defaults and applying these at the business unit, bank, bank branch, and accounting template levels. The objective is to calculate and create a variety of VAT accounting entries to record not only the tax, but also simultaneously record the recoverable, nonrecoverable, and rebate portions of the VAT at the accounting line level.

For PeopleSoft applications, primarily all of the VAT calculation values are derived from the VAT global defaulting architecture. The VAT defaulting architecture uses VAT Drivers, which are certain information elements on a VAT transaction that determine or "drive" the VAT processing for that transaction. (See the section Treasury Management VAT Drivers Table in this chapter for a list of Treasury specific VAT drivers.) To establish a VAT defaulting hierarchy, you must first define the overall VAT environment for your system, and then define Treasury Management VAT driver defaults on the global setup pages. For Treasury Management VAT processing, these global setup pages are accessed from the Bank Information, Bank Branch Information, Accounting Templates, and Treasury Options pages.

Treasury Management transaction sources affected by VAT are fees and interest sources. You generate or enter these transactions on the External Transactions - Treasury VAT Processing page or the Fee Entry (Fee Generator) page. When force reconciling transactions in the Automatic Reconciliation Exceptions (Bank Statement Processing) page, VAT transactions are created, where applicable, as the balancing external transaction is created (likewise, in the Bank Statement Accounting process, VAT transactions are created for any applicable external transaction created).

Though VAT is applicable to both goods and services, Treasury Management records VAT only on service transactions. As such, the Physical Nature field shown on certain pages always displays the value Services.

Once the setup, transactional, and accounting information is in the system, you can also run inquiries and reports on your VAT information.

As shown in the illustration, the four Treasury Management setup pages derive VAT calculation values from the primary default architecture. These VAT values are then used by the system when calculating VAT for Treasury Management accounting entries.

Important! Refer to the following documentation before establishing the primary VAT defaulting hierarchy for your system and setting up VAT for calculating Treasury Management transactions.

See Working with VAT.

Here's how to work with VAT in Treasury Management, from start to finish:

Define all VAT setup information, both on general system and Treasury Management specific pages.
Create VAT entries on either the External Transactions or Fee Generator pages (or automatically through the Automatic Reconciliation Exception page or the Bank Statement Accounting process).
Process VAT accounting through the Automated Accounting page.
View VAT information on VAT Accounting Summary or VAT Inquiry pages.
Process VAT transactions through the system using the VAT Transaction Loader page.
Create VAT reports.

Prerequisites

You need to establish VAT processing options in both your PeopleSoft system and in General Ledger.

Setting Up VAT for Treasury Management

Though the Treasury VAT Options and VAT Defaults links display on the Treasury VAT setup pages (the VAT Defaults link on the Bank Information, Bank Branch Information, and Accounting Template pages; both links on the Treasury Options page) you can access the Treasury VAT Options and VAT Defaults pages only when the selected business unit is VAT-enabled.

This section discusses how to:

Define Treasury business unit VAT processing defaults.
Define bank VAT processing defaults.
Define bank branch VAT processing defaults.
Define Treasury accounting template VAT processing defaults.

Prerequisites

Before specifying Treasury Management VAT options for a treasury management business unit, you must enable VAT for that business unit. A treasury management business unit is VAT-enabled after you link the general ledger business unit representing the treasury business unit to a VAT Entity.

Working with VAT

Pages Used to Set Up VAT for Treasury Management

Page Name	Definition Name	Navigation	Usage
Treasury VAT Options	TRV_BU_UNIT_OPT_TR	Set Up Financials/Supply Chain, Business Unit Related, Treasury, Treasury Options Click Treasury VAT Options on the Treasury Options page.	Define specific VAT processing options for a Treasury business unit. Note. The Treasury VAT Options link is enabled only if the General Ledger business unit representing the Treasury business unit is linked to a VAT Entity. See Processing Value-Added Tax Transactions in General Ledger.
VAT Defaults Setup (for Treasury business units)	VAT_DEFAULTS_DTL	Set Up Financials/Supply Chain, Business Unit Related, Treasury, Treasury Options Click VAT Defaults on the Treasury Options page.	Specify default VAT options for a Treasury business unit. Note. The VAT Defaults link on the Treasury Options page is enabled only if the General Ledger business unit representing the Treasury business unit is linked to a VAT entity. See Establishing VAT Defaults.
VAT Defaults Setup (for banks)	VAT_DEFAULTS_DTL	Banking, Banks and Branches, Bank Information Click VAT Defaults on the Bank Information page.	Specify VAT default options at the bank level. See Defining Bank Information.
Bank Branch Information	BANK_BRNCHPNL	Banking, Banks and Branches, Bank Branch Information	Set up the bank branch and define VAT registration options. See Defining Bank Branches.
VAT Defaults Setup (for bank branches)	VAT_DEFAULTS_DTL	Banking, Banks and Branches, Bank Branch Information Click VAT Defaults on the Bank Branch Information page.	Specify default VAT information for a bank branch. See Establishing VAT Defaults.
Template	TRA_TMPL_DETL	Cash Management, Treasury Accounting, Accounting Templates	Define general accounting template and template line information, including VAT template line information. See Entering Accounting Template Information.
VAT Defaults Setup (for accounting templates)	VAT_DEFAULTS_DTL	Cash Management, Treasury Accounting, Accounting Templates Click VAT Defaults on the Template page.	Define VAT default processing options for a Treasury Management accounting template. Note. The Treasury VAT Defaults link is enabled only for BSP and Fee Source type accounting templates.

Defining Treasury Business Unit VAT Options

Access the VAT Options page (Set Up Financials/Supply Chain, Business Unit Related, Treasury, Treasury Options. Click Treasury VAT Options on the Treasury Options page).

VAT Edit Msgs (VAT edit messages)

VAT edit messages are used to indicate if VAT tolerance messages are errors, warnings, or not displayed. This is a business unit-only default and applies directly to a transaction.

Error Message: A message displays, and you must correct the tolerance error to proceed with a transaction.

Warning: A message displays indicating a transaction exceeds tolerance settings.

None: No message displays.

Prorate Non-Recoverable VAT

Select this check box to record non-recoverable VAT amounts to an expense account.

Allocate Non-Recoverable VAT

Select this check box to allocate non-recoverable VAT using ChartField Inheritance logic.

Note. You can select either to allocate or prorate nonrecoverable VAT transactions, but you cannot select both check boxes.

Editing VAT External Transaction Details

This section discusses how to edit VAT external transaction details.

Editing VAT on Treasury External Transactions

Using the External Transactions page, you can add VAT-applicable external transactions, and specify VAT options for those transactions on the Treasury VAT Processing page. To access this page, you must complete the following fields on the External Transactions page:

Bank ID
Account # (account number)
Transaction amount
Transaction code
Transaction date
Transaction reference ID
Accounting template ID

See Entering External Transactions.

When you click the VAT link, the system verifies that the business unit is VAT enabled, the Tran (transaction) Code is Fee, and a VAT applicable accounting template is selected. (The system determines the default business unit and bank branch information for VAT by the specified bank account number, and uses this information to populate the Business Unit field on the External Transactions page.) The Treasury VAT Processing page displays only if these conditions are met.

The Effects of Changing VAT Defaults

The Treasury VAT Processing page displays VAT Defaults in descending order of impact. When you change multiple VAT defaults and click the Adjust Affected VAT Defaults button, specific fields will or will not be adjusted. You should work from the top down to the bottom, clicking Adjust Affected VAT Defaults at the appropriate time(s) to avoid adjustments to VAT Defaults that you overrode but not did not memorize.

For example, if you override Vendor Registration Country and click Adjust Affected VAT Defaults, the system adjusts all VAT Defaults except Vendor Registration Country and Vendor Registration ID. Then you override Place of Supply Driver and click Adjust Affected VAT Defaults again. The system adjusts all VAT Defaults except Service Type, Place of Supply Driver, Vendor Registration Country, and Vendor Registration ID.

Pages Used to Edit VAT External Transaction Details

Page Name	Definition Name	Navigation	Usage
External Transactions	BNK_RCN_TRAN_UPDT	Banking, Reconcile Statements, External Transactions	Enter external transaction information and VAT information
Treasury VAT Processing	TRV_VAT_TRAN_SEC	Click the VATlink on the Transactions Detail tab of the External Transactions page.	Specify VAT transaction details for an external transaction.

Editing VAT External Transaction Details

Access the Treasury VAT Processing page (click the VATlink on the Transactions Detail tab of the External Transactions page).

Note. You can edit fields on this page only if the accounting entry has not been reconciled.

Expanding and Collapsing Sections

To manage your VAT data more efficiently, you can expand and collapse sections on this VAT page.

Expand All Sections	Click the expand button to scroll to and access every section on the page. You can also expand one or more sections by clicking the arrow next to the section's name.
Collapse All Sections	Click to collapse all sections displaying only the header information. If you expand one or more sections, you can click the arrow next to the section's name to collapse the section.

Drivers

Physical Nature	Displays Services, as all Treasury VAT processing is only performed on services.
Bank Location Country	Displays the country in which the bank is located. The default value is the country that you specified for the bank branch location. This is analogous to the "ship from country."

Registrations

Reporting Country	Displays the VAT registration country of the beneficiary (buyer) of the service. The VAT defaulting routine retrieves the country value from the VAT entity, as either the service country, the business unit location country, or the country set as the home country.
Defaulting State	Specify a state within the Reporting Country. If the Reporting Country tracks VAT by state, then VAT default values may be defined at the state level.
Bank Registration Country	Displays the VAT registration country of the provider (seller) of the service—the registration country of the bank branch. The default value comes from the bank branch.
Bank Registration ID	Displays both the country code and VAT registration number. The two-character country code for the VAT registration country is display only. In addition to the three-character code (for example, Bank's Country) this two-character code is often required as part of the actual registration ID. The system derives the default VAT registration ID number from the applicable bank branch. You can override this number. However, PeopleCode validation routines ensures the number is valid according to country-specific checksum algorithms.
Exception Type	Select from the following: Exonerated: Select if the VAT entity is permanently excused from paying VAT. None: Suspended: Select if the VAT entity is temporarily excused from paying VAT.
Certificate ID	Enter the VAT certificate ID number issued by certain governments to show proof of an exception.

VAT Controls

Calculation Type	Indicates whether the amount that you enter on a transaction is Inclusive (default value) of the VAT or Exclusive. If Exclusive is selected, the system calculates the VAT charge and adds it to the transaction amount. However, if the calculation type is Exclusive, and if you change the VAT amount on the detail transaction, the system changes the transaction amount according to the calculation type. The system retrieves the field value using the VAT default hierarchy, but you can override it.
Rounding Rule	Specify the rule you want to use: Nat Rnd (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. Up: Rounds up and limits the rounding precision to one additional decimal place. For example, for a currency defined with two decimal places, 157.4610 would round up to 157.47, but 157.4609 rounds to 157.46. Down: Rounds down. The VAT rounding rule you specify affects the currency numbers stored in the database as well as how currency numbers print on the reports. The VAT rounding rule affects only VAT amounts.
Allocate Non-Recoverable VAT	If selected, indicates that the system allocates nonrecoverable VAT using ChartField Inheritance logic.
Prorate Non-Recoverable VAT	If selected, indicates that the system records nonrecoverable VAT to an expense account.
Use Type	Defaults from the VAT defaulting hierarchy. You can override the values in this field. The field is mandatory when Applicability is set to Taxable.
Recovery Source	Options specified on the VAT Default Setup page at the business unit level determine if you can edit this field. If the displayed value is Automatic, this VAT percentage is automatically calculated by the system. You can not override this value. If Manual, you can edit the Recovery Percent field in the Calculations group box.
Rebate Source	Options specified on the VAT Default Setup page at the business unit level determine if you can edit this field. If the displayed value is Automatic, this VAT percentage is automatically calculated by the system. You can not override this value. If Manual, you can edit the Rebate Percent field in the Calculations group box.

See Defining Treasury Business Unit VAT Options.

VAT Treatments

Place of Supply Country

Displays the country that is the supplier of record for the service.

State

Select a state within the defined Place of Supply Country. If the Place of Supply Country tracks VAT by state, then VAT default values may be defined at the state level.

Treatment

VAT treatment determines which default values should be applied, and also controls, to some extent, the availability of some VAT-related fields.

See VAT Defaults.

Select from the following:

Domestic Service Purchase
EU Service Purchase
Outside Scope
Self-Assess Service Import

VAT Details

Applicability	Displays a default value derived from the accounting template. You can override the values in this field. See Taxable Status and VAT Rates. Exempt Exonerated N/A Outside Suspend Taxable VAT Only
VAT Code	Displays the default value derived from the appropriate VAT defaulting hierarchy depending on the defined Treatment and/or defined Applicability. You can override the values in this field. When you click the Recalculate button, the system uses the VAT defaulting hierarchy to update fields in the Calculations group box.
Record Output	The default comes from the accounting template. You can edit this field. 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.
Transaction Type	Displays the assigned VAT transaction type. VAT transaction types classify and categorize transactions at a more detailed level for both VAT reporting and accounting.

See VAT Reporting and Accounting.

See Reviewing VAT Field Descriptions by VAT Driver.

See Understanding VAT Transaction Type Setup.

Adjust or Reset VAT Defaults

Adjusting or resetting VAT defaults will only affect the fields within this VAT Defaults group box:

Adjust Affected VAT Defaults

If you changed any fields on this page, these changes may impact VAT defaults on this page. For accuracy and consistency, click this button if you want the system to adjust the VAT defaults that are affected by your changes. All changes you have made to VAT Defaults on this page that affect other VAT Defaults on this page will be retained.

Click the "i" button to list the fields that will be adjusted.

Note. PeopleSoft recommends that you always click the Adjust Affected VAT Defaults button after changing any defaults on the VAT page.
Levels

The levels affected when you click the Reset All VAT Defaults button may be different depending the application you are working with and the type of VAT page you are working on.

Select the level:
- All lower levels
  
  Select this field value to reset all VAT defaults at lower levels for this page.
  
  Note. Reset completely redetermines the VAT defaults. This does not necessarily mean they will be reset to their original values. For example, the user may not have changed any VAT default values, but if a VAT driver field was changed, pressing Reset will redetermine all defaults based on the new driver value.
- This and all lower levels
  
  Select this field value to reset all VAT defaults on this VAT page and at any lower levels of this page.
- This level only
  
  Select this field value to reset all VAT defaults on this VAT page.
Reset All VAT Defaults

Click this button if you want the system to reset the VAT defaults based the Levels value you selected. Any changes you have previously made to VAT defaults will be lost

VAT Calculations

Except for Entered Amount, all fields in this section are display only and the Recalculate function populates them.

Basis Amount	Displays the VAT basis amount in transaction currency.
Basis Amount Base	Displays the VAT basis amount in the base currency.
Tax Rate	Displays the VAT tax rate.
Calculated Amount	Displays the calculated VAT amount in the transaction currency.
Calculated Amount Base	Displays the calculated VAT amount in base currency. The system uses the transaction currency for the entered VAT amount, based on the exchange rate that is applicable to the transaction.
Override VAT Amount	Enter the override amount to recalculate the VAT amount. This amount displays in the transaction currency.
Override VAT Amount	Displays the recalculated override VAT amount in the base currency.
Recorded Amount	Displays the transaction currency amount stored in the system VAT tables.
Recorded Amount Base	Displays the base currency amount stored in the system VAT tables.
Recovery Percent	Displays a system-calculated value, based on the selected Use Type.
Rebate Percent	Displays a system-calculated value, based on the selected VAT Use Type.
Recovery Amount	Displays the VAT recovery amount in the transaction currency.
Recovery Amount Base	Displays the VAT recovery amount in the base currency
Rebate Amount	Displays the calculated VAT rebate amount in the transaction currency.
Rebate Amount Base	Displays the calculated VAT rebate amount in the base currency.

See VAT Recoverability.

Creating VAT Transactions for Fees

The Enter Fees page generates various types of fees, as opposed to the External Transactions page, which only generates bank statement fees. To generate VAT, you first define VAT options for specific fee codes. When you create fee entries with the VAT-enabled fee codes, the system automatically generates VAT accounting and displays it on the fee entry's Treasury VAT Processing page.

This section discusses how to:

Define VAT-applicable fee codes.
Enter fees.
View VAT options for a fee entry.

Pages Used to Create VAT Transactions for Fees

Page Name	Definition Name	Navigation	Usage
Fee Code Definition	FA_FEE_CD_PNL	Set Up Financials/Supply Chain, Product Related, Treasury, Fee Codes	Set up fee codes. See Defining Fee Codes.
Enter Fees	FEE_GENERATOR_PNL	Cash Management, Fees and Transfers, Fee Entry	Create fees for deal, facility, EFT, and letter of credit sources. See Creating Fee Entries.
Treasury VAT Processing	TRV_VAT_FEE_SEC	Click VAT on the Enter Fees page.	Specify VAT transaction details for a fee. This page displays only when the specified fee code is VAT applicable. This page is the same as the Treasury VAT Processing page for external transactions. See Editing VAT External Transaction Details.

Creating VAT Transactions Using Automatic Reconciliation

This section discusses creating VAT using PeopleSoft Automatic Reconciliation.

The system creates VAT automatically when you force reconcile a fee or interest through reconciliation, if the accounting template has a VAT applicable line. The force reconciliation function inserts transactions into the Bank Reconciliation Transaction table (BNK_RCN_TRAN) and the VAT record (TRV_VAT_TRAN). It also generates a Treasury accounting event. For VAT fees to be reconciled on the bank side and system side, you must select a statement activity type for the bank statement processing template.

Note. For VAT applicable fees to display on the Automatic Reconciliation Exceptions page, you must first process the transactions using the Automatic Reconciliation Manager page.

See Also

Reconciling Transactions Automatically

Page Used to Create VAT Using Automatic Reconciliation

Page Name	Definition Name	Navigation	Usage
Automatic Reconciliation Exceptions	BNK_RCN_VUE_UNR	Banking, Analyze Exceptions, Auto Reconciliation Exceptions	Force an automatic reconciliation to process VAT-applicable transactions.

Forcing the Reconciliation of VAT-Applicable Transactions

Access the Automatic Reconciliation Exceptions page (Banking, Analyze Exceptions, Auto Reconciliation Exceptions).

Note. For VAT applicable fees to be created and reconciled on the Automatic Reconciliation Exception page, the VAT Treatment must be Inclusive. Reconciliation does not occur if the system algorithm determines the VAT Treatment is Exclusive. To reconcile these types of fees, you must enter them on the External Transactions page, and then use the Semi Manual Reconciliation page to complete the reconciliation.

See Also

Understanding Reconciliation Exceptions

Managing VAT Accounting

The only VAT accounting activity you need to perform is setting the VAT option on the accounting template. To enable automated VAT processing, VAT attributes and VAT amounts are recorded on a shadow table (VAT Transaction Record table, TRV_VAT_TRAN) associated with the VAT accounting lines. This process works in the background. Once you process VAT transactions through Automated Accounting process (TR_ACCTG), the system automatically generates the necessary accounting entries and VAT accounting lines based on data in the VAT Transaction Record.

This section discusses how to:

Process VAT entries with Automated Accounting.
Review VAT accounting entries.
Review Treasury VAT information.

Pages Used to Manage VAT Accounting

Page Name	Definition Name	Navigation	Usage
Automated Accounting	TRA_ACCTG_REQ	Cash Management, Treasury Accounting, Automated Accounting	Run the Automated Accounting process, which creates accounting entries and prepares them for Journal Generator process (FSPGJGEN).
Accounting Summary	TRA_ENT_SUM_PNL	Cash Management, Treasury Accounting, Accounting Summary	View line by line accounting events. You can retrieve information according to ad-hoc search criteria and navigate to all functional areas of accounting.
Accounting Entries	TRA_ACCTG_LINE_1	Cash Management, Treasury Accounting, Accounting Entries Click VAT on the Accounting Entries tab.	Review and possibly adjust automated accounting entries, or create manual accounting entries online.
Treasury VAT Information	TRV_ACCTG_LINE_VAT	Click VAT on the Accounting Entries − Accounting Entries tab.	Use the Treasury VAT Information page to view VAT information for a specific accounting line.

Processing VAT with Automated Accounting

Access the Automated Accounting page (Cash Management, Treasury Accounting, Automated Accounting).

To process VAT:

Specify the Business Unit and Template.
Enter a Fiscal Year and Period, or specify an Acctg Events End Date (accounting events end date).
Select the Bank Stmt/Trans (bank statement/transaction), Facility Fees , Deal Fees , L/C (letter of credit), or EFT Fees check boxes.

See Also

Reconciling Transactions Automatically

Reviewing VAT Accounting Entries

Access the Accounting Entries page (Cash Management, Treasury Accounting, Accounting Entries).

When the Automated Accounting process is complete, you can review the created accounting entries and VAT transactions. The VAT link displays on the Accounting Entries page when the accounting line has VAT information.

Line

As the example above shows, the Automated Accounting process created three accounting entries. Line 3 is the VAT amount. Click a Line link to access the Accounting Entries page and review the VAT transaction detail.

Note. The number of VAT accounting lines created varies, depending on the accounting scenario.

Note. The number and types of accounting entries depends on the VAT Treatment and whether or not any of the VAT is recoverable or subject to rebate.

The system obtains the ChartFields used to create each accounting entry from the VAT accounting template (which is defined by VAT Code, VAT Transaction Type, and optionally the General Ledger business unit). Additionally, for nonrecoverable VAT, the ChartFields used are also dependent upon whether or not the nonrecoverable amount is being prorated or allocated to the associated expense account. If the nonrecoverable amount is not prorated or allocated to the associated expense account, the system obtains the non-account ChartFields from the VAT accounting template.

In situations when the VAT accounting entries have two different business units—one for the Transaction General Ledger business unit (Unit field in the Accounting Entries page header), and one for the Distribution General Ledger business unit (GL Unit field in Accounting Entries - Line Detail tab), you can direct the system to inherit either business unit. You specify this option at implementation on the VAT Business Unit Option page (VAT_BU_OPT). During the Automated Accounting process, if the system registers two different business units in use, it refers to the options specified on this page. The system then enters the correct inherited business unit into the GL Unit field of each entered distribution line of the system generated VAT accounting entries.

Note. Accounting entries that the Automated Accounting process creates and distributes to General Ledger are display only and you cannot adjust them on this page. You must adjust VAT accounting through the General Ledger journal.

See Also

Processing Automated Accounting

Making General Ledger Journal Entries

Working with VAT

Reviewing Treasury VAT Information

Access the Treasury VAT Information page (Click VAT on the Accounting Entries − Accounting Entries tab).

Note. Treasury Management VAT functionality is currently limited to VAT on bank fees and other fees, recording only input VAT or the combination of input and output VAT. As such, it is unlikely that you will be using either the VO or VONT types for your VAT transactions.

VAT Applicability	Displays the default value derived from the accounting template.
Record Input VAT	This field is based on the defined VAT treatment , and always defaults to on (check box selected).
Record Output VAT	This field defaults to on (check box selected) if the defined VAT treatment is EU Services Purchases or Self-Assessed Services Imports.
VAT Code	Displays the default value derived from the appropriate VAT defaulting hierarchy—this is also dependent on the VAT Treatment and/or VAT Applicability.
VAT Transaction Type	Displays the default value derived from the appropriate VAT defaulting hierarchy—this is also dependent on the VAT Treatment and/or VAT Applicability.
VAT Calculation Type	Displays Inclusive or Exclusive.
VAT Declaration Date	Displays the default value derived from the transaction date.
Accounting Entry Type	Displays the VAT accounting entry type. VAT distribution account types define the different types of VAT accounting entries that may be required. Treasury Management only uses the following VAT distribution account types: VI: VAT Input VIR: VAT Input Recoverable VIN: VAT Input Non-Recoverable VIB: VAT Input Rebate VINT: VAT Input Non-Taxable VOP: VAT Output on Purchase VO: VAT Output VONT: VAT Output Non-Taxable.
Expense Non-Recov VAT (expense nonrecoverable VAT)	Displays one of the following values: Y (yes): Indicates the system expenses nonrecoverable VAT to the expense account. N (no): Indicates the system separates nonrecoverable VAT.
Distribution Status	Indicates if the transaction has been loaded to the VAT Transaction Loader. Displays one of the following values: DISTRIBUTED: Indicates the transaction has been loaded. IGNORE: Indicates the system is not to load the transaction. NOT DISTRIBUTED: Indicates the transaction is eligible to be loaded, but has not yet been loaded. UNDEFINED: Indicates the transaction requires additional processing before the system transfers it to the loader.
VAT Rate	Displays the VAT percentage that is applied to the transaction.
VAT Amount	Displays the VAT amount in the transaction currency.
VAT Base Amount	Displays the VAT amount in the base currency.
VAT Basis Amount	Displays the VAT basis amount in transaction currency.
VAT Basis Base Amount	Displays the VAT basis amount in the base currency.
VAT Recovery Amount	Displays the VAT recovery amount in the transaction currency.
VAT Recovery Base Amount	Displays the VAT recovery amount in the base currency.
Entered VAT Amount	The default value is zero (0). If either the VAT calculation type is Inclusive, or both Record Input VAT and Record Output VAT check boxes are selected, this field is set to zero and unavailable. You can override this default value by selecting Exclusive for the calculation type. This is the actual VAT amount in transaction currency that prints on the external document. If it is not equal to the calculated VAT amount (and not equal to zero), tolerance checking is performed.
Entered VAT Base Amount	Displays the entered VAT amount in base currency. The system uses the transaction currency for the entered VAT amount, based on the exchange rate that is applicable to the transaction.
VAT Calculated Amount	Displays the calculated VAT amount in the transaction currency.
VAT Calculated Base Amount	Displays the calculated VAT amount in the base currency.
VAT Rebate Amount	Displays the calculated VAT rebate amount in the transaction currency.
VAT Rebate Base Amount	Displays the calculated VAT rebate amount in the base currency.

Note. This page is display only. Once the Automated Accounting process creates the VAT accounting entries and distributes them to General Ledger, you cannot adjust the entries on a Treasury application page. You must use the General Ledger Journal Entry page to adjust VAT accounting entries.

Editing Journal Entries

VAT Environment Setup

Processing Final Treasury Management VAT Transactions

Once you have run all the individual processes to finalize the transactions, you should:

Run the VAT Transaction Loader process (FS_VATUPDFS) to load the VAT information into the VAT Transaction Table.
Run the VAT Report Extract process (VAT1001) to extract the data from the VAT Transaction Tables to reporting tables, where the data is available for final reporting to the tax authorities.

Once the VAT Report Extract process is complete, you are ready to create a variety of reports on your VAT information. We discuss this information in the PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook.

See Also

Loading the VAT Transaction Table

Generating VAT Reports