(IND) Excise Duty, Sales Tax, and VAT Processing for India
You can enter and calculate excise duty, sales taxes, and VAT on the Group Entry Tax page only if you are entering items directly in PeopleSoft Receivables or for transactions interfaced from a billing system for which you create accounting entries in PeopleSoft Receivables. You can calculate tax for excise duty only, sales tax only, both, or VAT. If you interface items from billing and your billing system generates the accounting entries, you cannot recalculate the tax. Instead, run the Receivables Update process to update the customer balances.
When you run the Receivables Update process, the system updates the tax information to populate the excise duty, sales tax, and VAT tables: Item Tax Activity (PS_ITEM_ACTTAX) and Item Tax Activity Detail (PS_ITEM_ACTTAX_DTL). The process also creates the following accounting entries if you entered the items in PeopleSoft Receivables or if your billing system does not generate the accounting entries:
|
Account |
Debit |
Credit |
|---|---|---|
|
Accounts Receivable |
100.00 |
|
|
User-defined (Revenue) |
|
90.00 |
|
Excise Duty Receivable |
|
7.00 |
|
Sales Tax/VAT Liability |
|
3.00 |
The customer and business unit for a transaction determine how to populate information on the tax transaction lines, such as the ship from country and state and the appropriate tax codes. If you enter an item directly in PeopleSoft Receivables, the system uses the default values for the receivables business unit. If you interface an item from billing, the system uses the following business units:
If an order management business unit has been specified, the system uses the order management business unit.
If no order management business unit has been specified, but a billing business unit has been specified, the system uses the billing business unit.
If neither an order management business unit or a billing business unit have been specified, the system uses the receivables business unit.
If you change the default values in the tax transaction lines, you must run the tax determination routine again before you calculate the tax.
After you enter the amounts in the tax transaction lines and the control totals, you run the tax calculation routine to calculate the tax amounts. The system populates the Pending Tax (PS_PENDING_TAX) and Pending Tax Detail (PS_PENDING_TAX_DTL) tables.