Entering VAT Information on Expense Reports

Page Name

Definition Name

Usage

VAT Information For Expense [type] Page

TE_SHEET_VAT_INFO

Select VAT options and calculate VAT for the expense item.

Create Expense Report - VAT Accounting Detail Page

TE_SHEET_ACCTG_VAT

View or change VAT accounting details.

After entering an expense transaction line on the Create Expense Report page, select the VAT Information link to access the VAT Information For Expense Type page. The system defaults appear the first time you access the VAT Information For Expense Type page. You can easily change values and recalculate VAT.

Use the VAT Information For Expense [type] page (TE_SHEET_VAT_INFO) to select VAT options and calculate VAT for the expense item.

Navigation:

From the Create (or Modify) Expense Report page, click the VAT Information icon on an expense line.

This example illustrates the fields and controls on the VAT Information For Expense [type] page.

 VAT Information For [Expense Type] page

Physical Nature

Field or Control

Description

Physical Nature

Indicates whether an expense type is a good or a service. Many countries require that the sale or purchase of goods is reported separately from that of services. PeopleSoft Expenses uses this field to retrieve values from the VAT Defaults table.

Change Physical Nature

Click to override the default physical nature for this expense. The system resets all the VAT defaults.

VAT Locations

Field or Control

Description

Consumption Country

Enter the country where you incurred the VAT. PeopleSoft Expenses uses this field to retrieve values from the VAT Defaults table.

The initial default value for this field comes from the location that you enter on the expense transaction line. If you do not enter a location on the expense transaction line, PeopleSoft Expenses uses the default location from the expense report header.

Consumption State

If the consumption country requires that you track VAT by state or province, enter the state, province, or geographic region within the country where you incurred the VAT. PeopleSoft Expenses uses this field to retrieve values from the VAT Defaults table.

The initial default value for this field comes from the location that you enter on the expense transaction line. If you do not enter a location on the expense transaction line, PeopleSoft Expenses uses the default location from the expense report header.

VAT Defaults - VAT Controls

Field or Control

Description

Rounding Rule

Select the VAT rounding rule that you want to use. The initial default value comes from either the VAT entity registration or VAT country VAT driver within the VAT Defaults table. Values are:

  • Nat Rnd (natural round): Rounds amounts normally (up or down) to the precision that is specified for the currency code. For example, for a currency that is 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 rounding precision to one additional decimal place. For example, for a currency that is defined with two decimal places, 157.4659 would round up to 157.47.

  • Down: Rounds amounts down to the precision that is specified for the currency. For example, for a currency defined with two decimal places, 157.4659 would round down to 157.46.

Use Type

Enter a value to categorize 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 that is ultimately produced from those procured. VAT use is one of the main determinants in the recoverability of input VAT. The initial default value comes from the expense type or Expenses business unit VAT driver within the VAT Defaults table.

No VAT Receipt

Select if the employee did not submit a VAT receipt for a VAT expense item that requires one. If selected, PeopleSoft Expenses sets the recovery percentage and rebate percentage fields to zero. You can set up approval and audit rules so that expenses with VAT but without VAT receipts require approval and auditing; in many countries, you cannot claim tax credits for the VAT without a VAT receipt. By default, this check box is not selected.

Prorate Non-Recoverable

PeopleSoft Expenses generates an accounting line for non-recoverable VAT. Deselect this check box to charge non-recoverable VAT to the non-recoverable VAT account that is designated in the VAT code. Select this check box to charge non-recoverable VAT as an expense to ChartFields that are indicated in an expense report accounting split. The initial default value comes from the Expenses Definition - VAT Options page.

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 account and alternate account for the non-recoverable VAT accounting entry will always be obtained from the VAT accounting template associated with the VAT code.

Select this check box to allow the other, non-account ChartFields to 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.

Deselect this check box to allow the other, non-account ChartFields to all be obtained from the VAT accounting entry template.

The value of this check box defaults from the Expenses Definition - VAT Options page.

VAT Defaults - VAT Treatments

Field or Control

Description

Treatment

Displays the appropriate VAT treatment value. Within PeopleSoft, VAT treatment values on the transactions lines—which come from complex algorithms—are used to apply the precise defaults that are applicable to the transaction lines. Options are:

  • Domestic Goods Purchases: The purchase of goods where the VAT entity is registered in the consumption country.

  • Domestic Services Purchases: The purchase of services where the VAT entity is registered in the consumption country.

  • Foreign Goods Expense: The purchase of goods where the VAT entity is not registered in the consumption country and the Record Foreign VAT check box on the Expenses Business Unit definition is selected.

  • Foreign Service Expense: The purchase of services where the VAT entity is not registered in the consumption country and the Record Foreign VAT check box on the Expenses Business Unit definition is selected.

  • No VAT Processing: No VAT is processed for the expense line. The following scenarios illustrate this case:

    • The consumption country and employee base country are the same, but the Expenses business unit is not VAT-enabled.

    • The consumption country and employee base country are the same, but the VAT Entity is not registered in that country.

    • The consumption country and employee base country are not the same and the consumption country is not defined as having a VAT system.

    • The consumption country and employee base country are not the same, the Expenses business unit is not VAT-enabled, and the Record Foreign VAT check box on the Expense business unit is deselected.

    • The consumption country and employee base country are not the same, the VAT Entity is not registered in the consumption country, and the Record Foreign VAT check box on the Expense business unit is deselected.

VAT Defaults - VAT Details

Field or Control

Description

Applicability

Displays the appropriate status for VAT applicability. Options for PeopleSoft Expenses are Taxable, Exempt (not subject to VAT) and Outside (Outside of Scope of VAT). The value comes from an algorithm that uses the VAT Applicable default from the VAT default hierarchy (expense types, Expenses business unit, and VAT country VAT drivers) within the VAT Defaults table, the treatment, and the exception type.

VAT Code

Displays the rate at which the system calculates VAT for the expense 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 (expense types, Expenses business unit, and VAT country VAT drivers) within the VAT Defaults table.

Transaction Type

Displays a 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 form the VAT default hierarchy (expense types, expenses business unit, and VAT entity registration VAT drivers) within the VAT Defaults table.

VAT Defaults - Adjust/Reset VAT Defaults

Field or Control

Description

Adjust Affected VAT Defaults

Click this button to have the system 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 are retained.

Oracle's PeopleSoft recommends that you always click the Adjust Affected VAT Defaults button after changing any defaults on the VAT page. Since values that appear further down the page can be dependent on values that appear previously on the page, you should work from top to bottom and click the Adjust Affected VAT Defaults button in the Adjust/Reset VAT Defaults region as needed. This action avoids updating values that you have already overridden.

List of fields to be selected

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

Levels

Before you click the Reset All VAT Defaults button, select the levels to which you want the action to apply. Options are:

  • All lower levels only: Reset the VAT defaults for the expense distribution lines.

  • This and all lower levels: Reset the defaults for the expense line and the expense distribution line.

  • This level only: Reset the defaults for the only the expense line.

Reset All VAT Defaults

Click to reset VAT defaults that you overwrote to the original defaults before you saved the component. This action includes changes that you made when you clicked the Adjust Affected VAT Defaults button. The reset default values will be saved onto the expense line, the distribution line, or both levels, depending on your selection in the Level field.

Note: Reset redetermines the VAT defaults. If you changed a VAT driver field, resetting VAT defaults does not return the original default values; it resets all of the default values based on the new driver value.

VAT Calculations

Field or Control

Description

Basis Amount

Displays the amount on which the VAT is calculated in the transaction currency.

Tax Rate

Displays the applicable VAT percentage.

Calculated Amount

Displays the system-calculated VAT amount in the transaction currency.

Override VAT Amount

Displays the manually entered VAT amount for the line when the calculated VAT amount is not equal to the VAT on the invoice being recorded; otherwise, this field is blank.

Recorded Amount

Displays the amount of VAT that will be recorded for this transaction in the transaction currency. If the calculated VAT amount has been overridden, this will be the entered override VAT amount; otherwise, this amount will be the calculated amount.

Recalculate

Click to recalculate the Basis Amount, Calculated Amount, and Recorded Amount fields based on the changes made to VAT defaults. This button performs the same action as the calculate button on the expense line grid.

Use the Create Expense Report - VAT Accounting Detail page (TE_SHEET_ACCTG_VAT) to view or change VAT accounting details.

Navigation:

From the Create (or Modify) Expense Report page, expand the Accounting Details section. Select the VAT Info tab, and then click the VAT Detail icon.

This example illustrates the fields and controls on the Create Expense Report - VAT Accounting Detail page.

 VAT Accounting Detail page

VAT Defaults - VAT Controls

Field or Control

Description

Use Type

Displays the value from the VAT Information for Expense [type] page. You cannot modify this field.

Apportionment Control

Displays the default value from the PeopleSoft Expenses business unit VAT driver within the VAT defaults table. Select the option to use when searching for VAT apportionment information. Values are:

  • Dist GL BU (distribution general ledger business unit): Select for the system to use the general ledger business unit on the distribution line to search for the taxable and exempt percentages.

  • Txn BU (transaction business unit): Select for the system to use the expenses business unit associated with the employee to search for the taxable and exempt percentages.

  • Txn GL BU (transaction general ledger business unit): Because PeopleSoft Expenses uses the general ledger business unit, this option has the same behavior as Txn BU.

Recovery Source

Select one of the following options:

  • Automatic: Select for the system to calculate what percentages to use. This is the initial default value.

  • Manual: Select if you want to override the percentage calculated by the system. You can enter the percentage of VAT entered that is recoverable.

Rebate Source

Select one of the following values:

  • Automatic: Select for the system to calculate what percentage to use. This is the initial default value.

  • Manual: Select if you want to override the percentage calculated by the system. When you do, you can enter the percentage that is used to calculate the rebate.

Note: The availability of the Recovery and Rebate Source fields is dependent on the Allow Override Recovery/Rebate check box that you set on the expenses business unit VAT driver in the VAT Defaults table.

For Automatic, the system-calculated percentages are based on the VAT use type or VAT apportionment for the ChartFields on the distribution line.

Reclaim Percent

When the expense line has a foreign VAT treatment, you can specify a VAT reclaim percent. VAT recovery and VAT rebate are not available for foreign VAT treatments, and you cannot modify those fields.

VAT Treatments

This section displays the VAT treatment, which is provided by default from the VAT Information For Expense [type] page.

VAT Calculations

Field or Control

Description

Basis Amount

Displays the amount on which the VAT is calculated in the employee business unit's base currency.

Basis Amount Base

Displays the amount on which the VAT is calculated in the base currency for the business unit entered in the distribution line.

Tax Rate

Displays the applicable VAT percentage.

Recorded Amount

Displays the amount of VAT that will be recorded for this transaction in the employee business unit's base currency. If the calculated VAT amount has been overridden, this will be the entered override; otherwise, this amount will be the calculated VAT amount.

Recorded Amount Base

Displays the amount of VAT that will be recorded for this transaction in the base currency for the business unit entered in the distribution line. If the calculated VAT amount has been overridden, this amount will be the entered override VAT amount; otherwise, it will be the calculated VAT amount.

Recovery Percent

Indicates the rate used to recover domestic VAT.

Rebate Percent

Indicates the rate used to calculate the rebate amount.

Recovery Amount

VAT recovery amount calculated by the system based on the VAT recovery percentage.

Recovery Amount Base

VAT recovery amount in the base currency for the business unit entered in the distribution line.

Rebate Amount

The calculated rebate amount expressed in the employee business unit's base currency.

Rebate Amount Base

The calculated rebate amount expressed in the base currency for the business unit entered in the distribution line.

Reclaim Amount

The calculated reclaim amount expressed in the employee business unit's base currency.

Reclaim Amount Base

The calculated reclaim amount expressed in the base currency for the business unit entered in the distribution line.

Recalculate

Click to recalculate the recovery, rebate, and reclaim amounts.