Passing Tax Information from PeopleSoft Order Management to PeopleSoft Billing

Taxes and VAT are calculated on sales orders in PeopleSoft Order Management, but these amounts will be passed to Billing only for fully-paid invoices. This includes use tax amount on free goods, which is the responsibility of the seller.

Taxes on orders that are not fully paid are always recalculated in Billing. For sales orders with VAT, only the VAT information, such as VAT applicability, VAT code, and VAT treatment, is used by PeopleSoft Billing in recalculating taxes. For sales orders with PeopleSoft taxes, only tax codes are used by PeopleSoft Billing. For sales orders with taxes calculated by third-party tax providers, only tax information, such as ship-to customer and location, transaction type, ship-from location, and order acceptance location, is used by PeopleSoft Billing. The tax basis amount for free goods is usually the cost of the item, or the last price paid in the case of non-costed items. For invoices that originate from sales orders, Order Management will pass the cost of the item or the last price paid to Billing, to be used in tax calculation.

Tax amounts are calculated by the PeopleSoft Billing invoice finalization process. For RMAs, the RMA adjustments process copies old tax information (except for tax amounts) when it copies an invoice line as the basis for an adjustment. The Billing Interface process provides tax information defaulting logic for restock lines and for RMA lines that are not associated with an original invoice line. The PeopleSoft Billing invoice finalization process calculates tax amounts based on the tax information passed.

Transactions from Order Management will have the GST information for the items/ products that are passed to the Billing Interface. The tax calculation is done by the user on the Billing side either by accessing the Bill Summary page or during the invoice finalization. If you are doing direct invoicing where a bunch of different processes are run till finalization, then the taxes are calculated during finalization.