Entering Online Vouchers With VAT

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. The system defaults this value from the supplier or PeopleSoft Payables business unit, depending on the transaction.

Change Physical Nature

Click to override the default physical nature value for this invoice. The system resets all of the VAT defaulting for this level only.

Location Country

Shows the PeopleSoft Payables business unit country.

Location State

Shows the PeopleSoft Payables business unit state.

This field is applicable only in a VAT environment that tracks the tax by regional subunit of a country, such as a province or state.

Supplier Location Country

Shows the supplier location country.

Supplier Location State

Shows the supplier location state.

Service Performed Country

Depending on the services performed flag setting in the VAT defaulting hierarchy (for example at the supplier or business unit level), the system sets the value for this field as follows:

• If it is the ship from location, it sets it to the supplier location country.

• If it is the ship to location, it sets it to the PeopleSoft Payables business unit country.

• If it is the buyer's location, it sets it to the PeopleSoft Payables business unit country.

• If it is the supplier's location, it sets it to the supplier location country.

Service Performed State

Depending on the services performed flag setting in the VAT defaulting hierarchy (for example the supplier or business unit level), the system sets the value for this field as follows:

• If it is the ship from location, it sets it to the supplier location state.

• If it is the ship to location, it sets it to the PeopleSoft Payables business unit state.

• If it is the buyer's location, it sets it to the PeopleSoft Payables business unit state.

• If it is the supplier's location, it sets it to the supplier location state.

This field is applicable only in a VAT environment that tracks the tax by regional subunit of a country, such as a province or state.

Ship From Country

Shows the country from which the good or service is shipped. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Ship From State

Shows the state from which the good or service is shipped. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

This field is applicable only in a VAT environment that tracks the tax by regional subunit of a country, such as a province or state.

Ship To Country

Shows the country to which the good or service is shipped. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Ship To State

Shows the state to which the good or service is shipped. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

This field is applicable only in a VAT environment that tracks the tax by regional subunit of a country, such as a province or state.

Service Type

Displays the VAT service type of Freight or Other. The value in this field determines whether or not the special rules for freight transport within the European Union apply. The value comes from the VAT default hierarchy.

Place of Supply Driver

Displays the usual place of supply (meaning, the place where VAT is usually liable) for the service. This value is used to help determine the place of supply country and the VAT treatment. Options are: Buyer's Countries, Supplier's Countries, or Where Physically Performed. The system derives the value from the VAT default hierarchy.

Reporting Country

Shows the country for which this VAT will be reported. This is the VAT Entity or VAT registration country and determines many of the VAT defaults.

Defaulting State

If the reporting country requires that VAT be tracked by state or province, this field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table.

Supplier Registration Country and Supplier Registration ID

Registration country and ID of the supplier taken from the supplier information.

Exception Type

Where applicable, exception granted for the VAT entity. Options are: None, Exonerated, or Suspended. This value is obtained from the VAT entity registration for the VAT reporting country.

Certificate ID

If applicable, displays the ID of the VAT exception certificate that may have been issued to the VAT entity.

Calculate at Gross or Net

Shows how VAT is calculated. The default value comes from the VAT entity driver. Options are:

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 will not use discount amounts, only discount percentages.

Recalculate at Payment

If you are calculating VAT at gross, select this check box to enable VAT recalculation at payment time to allow for any early payment discounts. This causes the system to adjust the VAT amount at the time of payment if the discount has been taken. This value is set on the VAT entity driver and defaults from the VAT hierarchy.

See an example of Accounting Entry Calculations at the end of this section.

Calculation Type

Indicates the type of VAT calculation. Options are:

Exclusive: The VAT amount is stated separately from the merchandise amount on the invoice, and is added to the total merchandise amount to obtain the voucher gross amount. The total VAT amount is entered on the voucher header.

Inclusive: The VAT is included in the merchandise amount specified for each line and is not stated separately. No separate VAT amount is entered on the voucher header.

This value is set on the AP Options driver and defaults through the VAT hierarchy (voucher origin, control group, supplier, and supplier location.)

Declaration Point

For a good or a service, shows when you want VAT transaction information to be recognized for reporting purposes. Options are:

Acctg Date (accounting date): VAT is recognized on accounting date.

Delivery: VAT is recognized on delivery.

Invoice: VAT is recognized at time of invoice.

Payment: VAT is recognized at time of payment.

This value is set on the VAT entity registration driver and defaults through the VAT hierarchy (PeopleSoft Payables business unit options, voucher origin, control group, supplier, and supplier location.)

Declaration Date

Shows the date on which the VAT is recognized.

It defaults from the accounting date when the Declaration Point is Acctg Date (accounting date). You cannot override this date, however, you may modify the accounting date on the Invoice Information page.

It defaults from the shipment date, receipt date, or invoice date, in that order, when the Declaration Point is Delivery. You may override this date.

It defaults from the invoice date when the Declaration Point is Invoice. You may override this date.

Rounding Rule

Shows the VAT rounding rule. The value comes from the VAT country driver and defaults through the VAT hierarchy. Options are:

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. For example, for a currency defined with two decimal places, 157.4699 would round down to 157.46.

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.

Non-Recovery Charge

Shows the charge code for the non-recoverable VAT. The values default from the Procurement Control - Non-Merch Charges page.

Calc on Advance Payments (calculate on advance payments)

Select for the system to calculate VAT on advance payments for vouchers of the Prepaid Voucher voucher style. The value is derived from the VAT entity registration driver.

Include Freight

Select for the system to include any freight amounts in the VAT basis by calculating VAT on the merchandise amount plus any freight amount. This option is only available for exclusive VAT calculation. The value comes from the VAT entity registration driver.

Include Miscellaneous

Select for the system to include any miscellaneous charge amounts in the VAT basis by calculating VAT on the merchandise amount plus any miscellaneous charge amount. This option is only available for exclusive VAT calculation. The value comes from the VAT entity registration driver.

In Reporting Currency

Select to enter the VAT amount in the VAT reporting currency. You enter the VAT amount by clicking the Enter Reporting Amounts link to open the VAT Reporting Currency Amounts page, where you can enter the total VAT amount and the total VAT applicable amount in the reporting currency, and the applicable exchange rate. The system automatically calculates the VAT based on this exchange rate on saving the page. The In Reporting Currency value comes from the VAT entity registration driver.

Enter Reporting Amounts

Click to open the VAT Reporting Currency Amounts page on which you can enter the total VAT applicable amount and the total VAT amount in the VAT reporting currency. The system automatically calculates the exchange rate.

Allocate Non-Recoverable

This check box is applicable only when non-recoverable VAT is not being prorated. When non-recoverable VAT is not being prorated, the system obtains the account and alternate account for the non-recoverable VAT accounting entry from the VAT accounting template associated with the VAT code.

If this check box is selected, the other, non-account ChartFields will be obtained based on the ChartField inheritance options that have been defined for non-recoverable VAT. For each ChartField, these options allow you to specify whether the ChartField value is inherited from the expense distribution line, whether the value comes from the business unit defaults, or whether the value comes from the VAT accounting template.

If this check box is not selected, the other, non-account ChartFields are all obtained from the VAT accounting entry template.

The value of this check box comes from the Procurement Control component.

Place of Supply Country

Displays the country in which the VAT is liable. This field appears only when the transaction is for services.

Treatment Group

Displays the appropriate VAT treatment group. Options are: Domestic Purchases, European Union Purchases, Imports, No VAT Processing, and Out of Scope.

Within Oracle's PeopleSoft applications, detail VAT treatment values on the transaction lines, which come from complex algorithms, 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 enabling individual transaction lines to be grouped together into invoices during batch processes and to validate the detail line VAT treatment values on the transaction lines.

Adjust Affected VAT Defaults

Click this button to have the system adjust the VAT defaults that are affected by your changes, after you have selected the affected levels. All changes you have made to VAT Defaults on this page that affect other VAT Defaults on this page will be retained.

Oracle recommends that you always click the Adjust Affected VAT Defaults button after changing any defaults on the VAT page. As values that appear lower down on the page can be dependent on values that appear higher up on the page, you should work from top to bottom and click the Adjust Affected VAT Defaults button in the Adjust/Reset VAT Defaults collapsible region as needed. This avoids updating values that you have already overridden.

Click the List of fields to be selected icon to view a list of all of the fields whose values will be adjusted if you click the Adjust Affected VAT Defaults button.

Levels

Select the levels to which you want the action to apply before you click the Reset All VAT Defaults button:

All lower levels: Reset the VAT defaults for the voucher line and the voucher distribution line.

This and all lower levels: Reset the defaults for the voucher header, the voucher line, and the voucher distribution line.

This level only: Reset the defaults for the voucher header only.

Reset All VAT Defaults

Click to reset any fields that you may have overridden on this page (including those that you changed by clicking the Adjust Affected VAT Defaults button) back to the original defaults before you save the page. Depending on your selection in the Level field, the VAT default values will be reset for the voucher header, the voucher line, the distribution line, or all three.

Service Type

Displays the VAT service type of Freight or Other if the transaction is for a service. The value in this field determines whether or not the special rules for freight transport within the European Union apply. The value comes from the VAT default hierarchy.

Place of Supply Driver

Displays the usual place of supply (meaning, the place where VAT is usually liable) for the service if the transaction is for a service. This value is used to help determine the place of supply country and the VAT treatment. Options are: Buyer's Countries, Supplier's Countries, or Where Physically Performed. The value comes from the VAT default hierarchy.

Reporting Country

Shows the country for which this VAT will be reported. This is the VAT Entity VAT registration country and determines many of the VAT defaults.

Defaulting State

Displays the state within the reporting country for which an associated value is retrieved from the VAT defaults table if the reporting country requires that VAT be tracked by state or province.

Use Type

Determines the split between recoverable (taxable) and nonrecoverable (nontaxable) VAT.

For the Canadian public sector, the use type also determines the rebate of the nonrecoverable VAT. VAT rebates are calculated based on statutory rebate rates that are established for each Public Service Body.

The value comes from the VAT default hierarchy—specifically, Payables Options, voucher origin, control group, supplier location, and item.

Place of Supply Country

Displays the country in which the VAT is liable. The value comes from complex algorithms. This field appears only when the transaction is for services.

Treatment

Select the appropriate VAT treatment, but only if the algorithms did not return the correct value. Options are:

Domestic Goods Purchases: This refers to the purchase of goods where the supplier and customer are located in the same country.

Domestic Services Purchases: This refers to the purchase of services where the supplier and customer are located in the same country.

Domestic Reverse Chg Purchase: This refers to the purchase of goods subject to the domestic reverse charge. Transaction lines flagged for the reverse charge should have the reverse charge applied if the overall total of the reverse charge goods on the invoice is equal to or greater than the threshold amount specified for the VAT reporting country.

EU Goods Purchase: This refers to goods purchased within the European Union (EU).

EU Service Purchase: This refers to services purchased within the European Union (EU).

No VAT Processing: No VAT is processed for this voucher line.

Outside of Scope: This is outside the scope of VAT.

Self-Assess Goods Import: This refers to imported goods for which the customer is self-assessing the VAT. The supplier is not registered to collect VAT but the customer is liable to pay VAT to the VAT authority.

Self-Assess Service Import: This refers to imported services for which the customer is self-assessing the VAT. The supplier is not registered to collect VAT but the customer is liable to pay VAT to the VAT authority.

Zero-rated Goods Import: This refers to imported goods subject to zero-rate VAT.

Within Oracle's PeopleSoft applications, detail VAT treatment values on the transaction lines are used for applying the precise defaults applicable to the transaction lines.

Applicability

Shows the VAT status. Options are: Taxable, Exempt (not subject to VAT), and Outside of Scope of VAT. The value comes from an algorithm that uses the VAT Applicable default, the treatment, and the exception type.

VAT Code

Shows the VAT code that defines the rate at which VAT is calculated for this line. The value comes from an algorithm that uses the treatment and applicability to retrieve the applicable VAT Code default from the VAT default hierarchy.

Transaction Type

Shows the code that categorizes and classifies this transaction for VAT reporting and accounting. The value comes from an algorithm that uses the treatment and applicability to retrieve the applicable Transaction Type from the VAT default hierarchy.

Record Output VAT

Select this check box to enable voucher entry when VAT is not included on the invoice but is payable to your VAT authority rather than the supplier. In this case, you will be accounting for both input and output VAT for the purchase. This will be the case for an Intra-EU Acquisition or when you must account for output VAT on a service supplied by a foreign supplier. This is also referred to as self-assessing for VAT. The value comes from an algorithm that uses the treatment and applicability to retrieve the applicable value from the PeopleSoft delivered VAT system setup data.

Nature of Transaction 1 and Nature of Transaction 2

Enter the Nature of Transaction 1 and Nature of Transaction 2 codes applicable to the financial adjustment.

Fiscal Regime

For countries that require Fiscal Regime on the Intrastat return, enter the Fiscal Regime applicable to the financial adjustment

Use Type

Displays the use type which determines the split between recoverable (taxable) and nonrecoverable (nontaxable) VAT.

For the Canadian public sector, the use type also determines the rebate of the nonrecoverable VAT. VAT rebates are calculated based on statutory rebate rates that are established for each Public Service Body.

The value comes from the VAT default hierarchy — specifically, PeopleSoft Payables Options, voucher origin, control group, supplier location, and item.

Apportionment Control

Select the option to be used when searching for VAT apportionment information. The default value comes from the Payables Business Unit driver. Options include:

Dist GL BU (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.

Txn BU (Transaction Business Unit): If you select this value, the system uses the PeopleSoft Payables business unit for the voucher to search for the taxable and exempt percentages

Txn GL BU (Transaction GL Business Unit): If you select this value, the system uses the general ledger business unit to which the PeopleSoft Payables business unit is mapped to search for the taxable and exempt percentages.

Recovery Source

Select one of the following values:

Automatic: The system determines which percentages to use based on the VAT use type on the voucher line. Use the Recalculate button to calculate the VAT recovery percent.

Manual: Select if you want to override the percentage that defaults from the VAT use type. You can enter the percentage of VAT entered that is recoverable.

For both options, the system-calculated percentage is based on the VAT use type and VAT apportionment for the ChartFields on the distribution line.

The availability of this field is dependent on the Allow Override Recovery/Rebate option specified on the AP Options VAT driver in the VAT Defaults table.

(CAN) Rebate Source

Select one of the following values:

Automatic: The system determines which percentages to use based on the VAT use type that has an associated Public Service Body code. Use the Recalculate button to calculate the VAT rebate percent.

Manual: Select if you want to override the percentage that defaults from the VAT use type. When you do, you can enter the percentage that is used to calculate the rebate.

For both options, the system-calculated percentage is based on the VAT use type and VAT apportionment for the ChartFields on the distribution line.

The availability of this field is dependent on the Allow Override Recovery/Rebate option specified on the AP Options VAT driver in the VAT Defaults table.

Treatment

Displays the VAT treatment. This defaults from the invoice line.

Transaction Type

Categorizes VAT amounts by business transaction types (for example, a domestic purchase, an import from another VAT country, or a purchase for resale). These codes are required for reporting purposes and default onto the distribution line through the VAT defaulting hierarchy.

Recovery Percent

Enter the percentage in this field if you set the recovery source to Manual.

(CAN) Rebate Percent

Enter the percentage in this field if you set the rebate source to Manual.

Transaction Amount

Enter the amount of the transaction in the transaction currency. If the control total amount has been entered on the pending item, the system automatically populates this field with a value from the pending item for the first VAT line.

Transaction Amount Base

Displays the amount of the transaction in the base currency.

Basis Amount

Displays the amount on which the VAT is calculated in the transaction currency. If VAT is being calculated at Net, this amount is net of any discounts.

Basis Amount Base

Displays the amount on which the VAT is calculated in the base currency. If VAT is being calculated at net, this amount is net of any discounts.

Calculated Amount

Displays the system calculated VAT amount in the transaction currency.

Calculated Amount Base

Displays the system calculated VAT amount in the base currency.

Invoiced Amount

Displays the system calculated VAT amount recorded to the invoice.

Invoiced Amount Base

Displays the system calculated VAT amount recorded to the invoice, in the base currency.

Recovery Percent

Displays the system calculated VAT recovery percentage.

If you set the recovery source to Manual, enter the percentage in this field.

(CAN) Rebate Percent

Displays the system calculated VAT rebate percentage.

If you set the rebate source to Manual, enter the percentage in this field.

Recovery Amount

Displays the system calculated VAT recovery amount.

Recovery Amount Base

Displays the system calculated VAT recovery amount in the base currency.

Rebate Amount

Displays the system calculated VAT rebate amount.

Rebate Amount Base

Displays the system calculated VAT rebate amount in the base currency.

Non-recoverable Amount

Displays the non-recoverable system calculated VAT amount.

Non-Recoverable Amount Base

Displays the non-recoverable system calculated VAT amount in the base currency.

Recalculate

Click to recalculate the VAT for the line.

Percent

Displays the tax percentage applied to the transaction. The VAT percent defaults from the VAT code.

VAT Basis Amount

Shows the amount upon which VAT is calculated.

VAT Calculated

Shows the system calculated VAT amount. The system calculates the VAT amount based on your VAT transaction amount and the VAT percentage.

VAT Invoiced

Shows the amount of VAT on the invoice.

VAT Recovery

Shows the amount of VAT that is recoverable.

VAT Non Recoverable

Shows the amount of VAT that is non-recoverable.

(CAN) VAT Rebate Amount

Shows the VAT rebate amount. This is only for Canadian public service bodies.

Click to access the Invoice Line VAT Information page, where you can review, and if applicable, override default voucher line VAT settings.

If a driver higher up in the default hierarchy, such as Ship to ID or Item, changes after the invoice line defaults have been applied, a red triangle icon appears instead.

Click to access the Voucher Distribution Line VAT Information page, where you can review, and if applicable, override default voucher distribution line VAT settings.

If a driver higher up in the default hierarchy, such as Ship to ID or Item, changes after the distribution line defaults have been applied, a red triangle icon appears instead.