Establishing VAT Defaults at the Header Level

When you enter an invoice in a VAT Billing business unit, the system populates it with default values that are all required VAT determinants when you enter data into VAT driver fields. You can click the VAT Information link on the Standard Billing Header - Info 2 page to access the Bill Header - Header VAT Information page, where you can view or define header VAT default fields.

This topic discusses how to obtain VAT defaults at the Header level.

Page Name

Definition Name

Usage

Bill Header VAT Information Page

BI_HDR_VAT

Review all header-level VAT information. Manually change header VAT information.

Use the Bill Header VAT Information page (BI_HDR_VAT) to review all header-level VAT information.

Manually change header VAT information.

Navigation:

  • Click the VAT Information link on the Billing, Maintain Bills, Standard Billing, Header - Info 2 page.

  • Click the VAT Information link on the Billing, Maintain Bills, Express Billing, Header - Secondary page.

This example illustrates the fields and controls on the Bill Header VAT Information page.

 Bill Header VAT Information page

Note: The physical nature determines which fields appear on this page.

To obtain VAT defaults, all required VAT determinants must be populated on the bill header. This table lists all bill header VAT determinants:

Field Name

Initial Value

Changes When

Physical Nature

Appears by default from Billing VAT drivers based on the default hierarchy.

Changes when you update the VAT driver keys on the transaction. Click the Change Physical Nature button on the Bill Header VAT Information page to change this value manually.

Location Country

Appears by default from the Billing business unit location.

Changes when you change the value on the Bill Header VAT Information page manually.

Location State

Appears by default from the Billing business unit location.

Changes when you change the value that is on the Bill Header VAT Information page manually.

Note: If you do not define the VAT country definition for the location country that is to be tracked by the province and state, no state values are applicable.

Customer Location Country

Appears by default from the bill-to customer location.

Changes when you modify the bill-to customer or location. You can also change the value on the Bill Header VAT Information page manually.

Customer Location State

Appears by default from the bill-to customer location.

Changes when you modify the bill-to customer or location. You can also change the value on the Bill Header VAT Information page manually.

Note: If you do not define the VAT country definition for the customer location country that is to be tracked by the province and state, no state values are applicable.

Services-Performed Country

The default value is determined by the value that you use to define the Where Service Performed field on the VAT drivers. Possible values include:

  • Ship-to country

  • Ship-from country

  • Buyer's location country

  • Supplier's location country

Changes when the VAT driver changes or when the driver's Where Service Performed value changes.

You can also change the value on the Bill Header VAT Information page manually.

Services-Performed State

The default value is determined by the value that you use to define the Where Service Performed field on the VAT drivers. Possible values include:

  • Ship-to state

  • Ship-from state

  • Buyer's location state

  • Supplier's location state

Changes when the VAT driver changes or when the driver's Where Service Performed value changes.

You can also change the value on the Bill Header VAT Information page manually.

Note: If you do not define the VAT country definition for the Services Performed Country that is to be tracked by the province and state, no state values are applicable.

Ship-From Country

Bill header ship-from business unit location country. If this is not available, the default comes from the Billing business unit location country.

Changes when you modify the ship-from business unit. You can also change the value on the Bill Header VAT Information page manually.

Ship-From State

Appears by default from the bill header ship-from business unit location state. If this is not available, the default comes from the Billing business unit location state.

Changes when you modify the ship-from business unit. You can also change the value on the Bill Header VAT Information page manually.

Note: If you do not define the VAT country definition for the Ship From Country to be tracked by the province and state, no state values are applicable.

Ship-To Country

Bill header ship-to customer's location country.

Changes when you modify the ship-to customer or location. You can also change the value on the Bill Header VAT Information page manually.

Ship-To State

Bill header ship-to customer's location state.

Changes when you modify the ship-to customer or location. You can also change the value on the Bill Header VAT Information page manually.

Note: If you do not define the VAT country definition for the ship-to country that is to be tracked by the province and state, no state values are applicable.

The field values in the VAT Defaults group box are determined by the common VAT defaulting function.

See Understanding VAT in PeopleSoft Billing.

You should avoid changing header VAT default values manually because the system uses complex algorithms to obtain the bill header VAT defaults. However, if the algorithms encounter problems in finding defaults, manual intervention is necessary. Consider the following rules and guidelines when changing header VAT defaults manually:

  • When you change a VAT location or a VAT default, consider how these changes may affect the existing transaction VAT defaults. Click the Information button that is adjacent to the Adjust Affected VAT Defaults button to generate a list of VAT defaults that are affected by the change. To adjust the affected VAT defaults that are on this page, click the Adjust Affected VAT Defaults button.

  • The bill lines that contain previous VAT default values do not automatically change when you change header values.

    Access the Line VAT Info page to evaluate whether VAT default values that are on the bill lines also require modification.

  • You can replace the value in the Ship From Country field with any valid country and the reporting country with any country where the VAT entity is registered.

  • You can replace the customer registration country with any valid VAT country (only those countries that you define as VAT countries are valid), and the value in the VAT Treatment Group field with any VAT treatment group value that is valid for sales (see the drop-down list box for valid values).

    The VAT treatment values that are on all of the bill lines must belong to the VAT treatment group that is on the header.

  • You can enter or change a customer registration ID manually. The system validates the entered registration ID against country-specific check digits by using a variety of validation algorithms.

    Customer registration ID is not required.

  • You can change the customer exception type only if a valid country is in the Reporting Country field and the VAT treatment group is domestic sales.

    You can change the exception type to suspended only if suspension is allowed for this reporting country.

  • Changing the ship-to country, ship-from country, customer VAT registration country, or reporting country on the bill header may throw the bill lines out of sync with the header.

    You must ensure that the bill line values of these fields are the same as the values that are on the bill header.

  • Changing the VAT treatment group on the bill header may throw the bill lines out of sync with the header.

    You must ensure that the VAT treatment that is on the bill lines belongs to the VAT treatment group that is on the bill header.

  • When you modify VAT driver or VAT default data in bill entry, the system displays a warning if affected VAT defaults are not updated.

    Read the warning description and take the appropriate action.

  • To reset changes that you make manually or that the system makes, click the Reset All VAT Defaults button. When you click this button, the system resets the defaults based on existing VAT driver, physical nature, and VAT location information.

    When resetting VAT defaults, you can reset defaults on the bill header only, reset defaults on the bill header and lines, or reset defaults on the bill lines only.