Editing VAT External Transaction Details

This topic discusses how to edit VAT external transaction details.

Page Name	Definition Name	Usage
External Transactions Page	BNK_RCN_TRAN_UPDT	Enter external transaction information and VAT information. See also Reconciling Externally Generated Transactions and the External Transactions Page.
Treasury VAT Processing Page	TRV_VAT_TRAN_SEC	Specify VAT transaction details for an external transaction.

Page Name

Definition Name

Usage

External Transactions Page

BNK_RCN_TRAN_UPDT

Enter external transaction information and VAT information.

Treasury VAT Processing Page

TRV_VAT_TRAN_SEC

Specify VAT transaction details for an external transaction.

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 External Transactions Page.

When you click the VAT link, the system verifies that the business unit is VAT enabled, the Tran Code (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 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 top-down, 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 Supplier Registration Country and click Adjust Affected VAT Defaults, the system adjusts all VAT Defaults except Supplier Registration Country and Supplier 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, Supplier Registration Country, and Supplier Registration ID.

Use the Treasury VAT Processing page (TRV_VAT_TRAN_SEC) to specify VAT transaction details for an external transaction.

Navigation:

Click the VAT link 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.

Field or Control	Description
IBAN	Displays the international bank account number (IBAN) in addition to the local, domestic bank account number when the country has been set up to display the IBAN on the IBAN Formats Page.

Expanding and Collapsing Sections

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

Field or Control	Description
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

Field or Control	Description
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

Field or Control	Description
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 ensure 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

Field or Control	Description
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 rounding): 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 Treasury - VAT Options Page.

VAT Treatments

Field or Control	Description
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

Field or Control

Description

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

Field or Control	Description
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 Defining VAT Transaction Types.

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 (information) 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.

Field or Control	Description
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.