Interacting with Third-Party Tax Suppliers
PeopleSoft Billing, PeopleSoft Order Management, and PeopleSoft Purchasing interact with third-party tax software for the following reasons:
Geocode lookup.
Online tax calculation in PeopleSoft Order Management, PeopleSoft Billing, and PeopleSoft Purchasing.
Order completion processing (batch processing in PeopleSoft Order Management).
Invoicing (batch processing in PeopleSoft Billing).
Procurement card processing (batch processing in PeopleSoft Purchasing).
Note: The ship to customer ID and address number are required for all third-party tax processing in Order Management and Billing.
The system does not send the transaction to Vertex Q Series or Taxware Sales Tax for calculation if the ship to address is not a U.S. or Canadian address.
Maximum tax calculation is supported at the line level and the document level with release 8.9. Prior to release 8.9, maximum tax calculation is supported at the line level only.
Calculating Taxes in PeopleSoft Order Management
In PeopleSoft Order Management, the system calculates and saves taxes when you change the order and click the Calculate Price button. The Order Completion process calculates taxes for orders that are entered using electronic data interchange, returned material authorization replacement sales orders, and buying releases. The system uses this tax information when printing sales orders acknowledgments and quotations. You can also view the summarized tax amount on the Order Entry Form page.
The calculated tax amount is only an estimate of taxes for an order, and it is not posted to any tax registers. If you have PeopleSoft Billing installed, the system recalculates taxes even if they have been calculated previously in the order entry process online or by the Order Completion process.
Note: For typical sales orders where the payment is set to on account, PeopleSoft Order Management does not pass tax calculations to PeopleSoft Billing. However, in the counter sale environment, the tax calculations are passed to Billing. Taxes will not be recalculated in Billing when the transaction is fully paid up front and your installation is using the PeopleSoft tax solution as opposed to a third-party tax solution.
Calculating Taxes in PeopleSoft Billing
In PeopleSoft Billing, the system calculates taxes when you click the Calculate Taxes button on the Bill Summary page, and when you run the pro forma or finalization processes.
Note: The system does not calculate taxes or VAT for a bill line when the bill line's tax timing option (populated by PeopleSoft Contracts) is defined as S (taxes on services rendered).
Calculating Taxes in PeopleSoft Purchasing
In PeopleSoft Purchasing, the system calculates taxes when you:
Click the Calculate button on the Maintain Purchase Order - Purchase Order page or the Express Purchase Order - Purchase Order page when entering a purchase order or a change order online.
Click the Calculate SUT (calculate sales/use tax) button on the Maintain Purchase Order - Sales/Use Tax Information for Schedule page or Express Purchase Order - Sales/Use Tax Information for Schedule page when entering a purchase order or change order online.
Perform the Purchase Order Calculations Application Engine process (PO_POCALC) that creates purchase orders.
Perform the Change Purchase Order Application Engine process (PO_POCHNG) that creates change orders.
When you perform one of these actions, the system evokes the TaxCalc API process, which calculates your sales and use tax.
If you selected a third-party tax supplier on the Installation Options - Overall page, the system displays a geocode lookup link on the following pages:
Location - Location Definition page.
Customer address pages.
Sold-to Address Override page.
PeopleSoft Billing Ship-to Override page.
PeopleSoft Purchasing Schedule One-Time Address page.
When you click the geocode lookup link, for a U.S. or Canadian address, PeopleSoft will request the geocode from the external tax system. The system displays geocode results from the tax supplier system on the Tax Geocode Selection page.
Note: Although selecting Taxware or Vertex as the tax supplier on the Installation Options - Overall page enables geocode lookups, business units must also be set up for tax calculations to be performed through a third-party tax solution.
For technical details about individual EIPs, use the Interactive Services Repository (ISR) in the My Oracle Support website located at https://support.oracle.com/CSP/ui/flash.html.
You can initiate online tax transactions in PeopleSoft Order Management, Billing, and Purchasing.
Online Tax Calculation in PeopleSoft Order Management
You trigger online tax calculations in PeopleSoft Order Management on the order line and order schedule pages by saving a valid order or clicking the Calculate Price button on the Order Entry Form or Shipment Schedules page.
PeopleSoft conducts a transaction with the external tax system, either through a web service or a business interlink. The data passed to the tax system in the transaction includes the tax company or organization, customer information including addresses, product information, and the line or schedule quantity, and the line or schedule amount. PeopleSoft Order Management tables are updated with tax information, including the tax amount and tax percentage.
Note: The taxes calculated in PeopleSoft Order Management are only temporary and are not logged by the tax supplier software. Actual taxes will be calculated when the invoice is finalized in Billing.
In the case of fully paid sales orders, the Billing Finalization process sends the invoice to the tax solution so that the amounts can be logged. Billing uses the original transaction date so that the taxes logged will match the taxes paid, in case the tax rules have changed since the sales order was taken.
Online Tax Calculation in PeopleSoft Billing
You trigger online tax calculations on the Bill Summary Info page when you click the Calculate Taxes button, if the current PeopleSoft Billing business unit is defined as using an installed third-party tax supplier. When you click Calculate Taxes, the following occurs:
PeopleSoft conducts a transaction with the external tax system, either through a web service or a business interlink.
The system displays the total tax amount on the Bill Summary Info page.
Click the Save button to update the PeopleSoft Billing tables.
You can view the detailed tax information on the Standard Billing - Line Tax page. The taxes calculated from the Bill Summary page are only temporary and are not logged by the supplier software.
Online Tax Calculations in PeopleSoft Purchasing
You trigger online tax calculations when you:
Click the Calculate button on the Maintain Purchase Order - Purchase Order page or the Express Purchase Order - Purchase Order page when entering a purchase order or a change order online.
Click the Calculate SUT button on the Maintain Purchase Order - Sales/Use Tax Information for Schedule page or Express Purchase Order - Sales/Use Tax Information for Schedule page when entering a purchase order or change order online.
PeopleSoft Billing interacts with third-party tax suppliers during pro forma invoicing and invoice finalization. During pro forma invoicing, the system writes nothing to the tax supplier audit or registry files; in finalization, the system logs and reports all transactions.
The Pre-Process and Finalization process (BIIVC000) calls the Tax Interface process (BITAX000) when processing pro formas and invoices in business units defined as using a third-party tax supplier. The following occurs in the Tax Interface process:
PeopleSoft conducts transactions with the external tax system, either through a web service or a business interlink.
The tax amounts are saved on the PeopleSoft Billing tables.
If the third-party tax calculation detects errors, the third-party system returns error codes to PeopleSoft.
The system tags the bill and writes the error code to the specific line with the tax error.
In addition, the system enters a line in the message log for the erroneous line.
Note: You can run batch jobs that contain bills requiring both third-party supplier and PeopleSoft tax solution calculations; however, using more than one third-party tax solution is not supported. Only a single third-party supplier solution can be installed for a PeopleSoft database.
The Order Completion process calls third-party tax suppliers and provides the necessary information to calculate tax for the order. The values for the taxes are estimates and are stored on the order.