Setting Up Billing Charge Codes
To set up Billing charge codes, use the Charge Code (BI_CHARGE) component. Use the BI_CHARGE_CI component interface to load data into the tables for this component.
You can use charge codes to bill for something that is not usually classified as a product by normal business practices. For example, if you are a manufacturer, but you lease part of the corporate headquarters to another organization, you can classify rent and utilities, or any other nonstandard revenue, using a charge code.
You set up a charge code as if it were a part of a product table, but because it resides on a separate table from regular products, it is easier to maintain. As a separate table, it does not have to meet any verification demands of billing source applications, such as PeopleSoft Order Management or PeopleSoft Project Costing.
Charge codes are defined by SetID and currency code. For convenience when defining charge codes, select the currency code on the User Preferences - Billing page. To create a charge code, use the Charge Code page.
Page Name |
Definition Name |
Usage |
---|---|---|
BI_CHARGE |
Set up charge codes or review existing charge codes. |
|
BI_CHARGE2 |
Define charge code VAT information. |
Use the Charge Code page (BI_CHARGE) to set up charge codes or review existing charge codes.
Navigation:
Field or Control |
Description |
---|---|
Revenue Distribution Code |
These codes simplify the process of generating accounting entries by defining a valid combination of ChartField values. Set up revenue distribution codes on the Distribution Code page. |
Tax Group |
If applicable, enter the tax group, transaction type, and transaction subtype. The applicability of these fields depends on the tax solution option that you select on the Billing Definition - Business Unit 2 page:
|
VAT Group |
Enter the VAT group, if applicable. The applicability of this field depends on whether the billing business unit is tied to a VAT entity on the Business Unit 4 page. When you enter a charge code with an associated VAT group on a bill line, the system uses the VAT defaults that are defined for the VAT group for that bill line |
Revenue Recognition Basis |
Establish the date or range of dates that the system uses to determine when to realize revenue. The Invoice Date option is the default and indicates a nondeferred situation. All other basis options indicate a deferral if the corresponding date or date range is in a future accounting period. For example, if you select the value Ship Date, and the shipping date is in a future accounting period, the bill line is subject to deferred accounting. If you select From/To Date Range, and the date range falls within a future accounting period, the bill line is subject to deferred accounting. |
Transaction Type |
Select the type of transaction. The options available are Lease, Purchase, Rental, Return, Sale, and Service. |
Transaction Sub Type |
Select the transaction sub type. The options available are Expense, Freight, Misc, None, Property, Rental, and Service. |
Use the Charge Code 2 page (BI_CHARGE2) to define charge code VAT information.
Navigation:
Countries that use VAT must separately report the sale and purchase of goods from the sale and purchase of services. Applicable VAT defaults such as VAT declaration point, VAT code, and VAT transaction type can be defined for a charge code per country or state that registered with VAT authority. Setting up VAT defaults for a charge code is optional.
Field or Control |
Description |
---|---|
Physical Nature |
Indicates whether a charge code is a good or a service. The physical nature must be specified for a charge code. |
Where Service Performed |
Select the location where the service is physically performed. Options are Buyer's Location, Ship-From Location, Ship-To Location, and Supplier's Location. This field is optional for a charge code. |
VAT Default Setup |
Click to access the VAT Defaults Setup page. The VAT Defaults Setup page is a common page used to set up VAT defaulting for all PeopleSoft applications processing VAT transactions. On this page, you can define charge code VAT defaults per VAT registration country and state, as applicable. |
VAT Service Treatment Setup |
Click to access the Services VAT Treatment Drivers Setup page. This is a common page used to set up VAT services treatment for all PeopleSoft applications processing VAT transactions. If you are required to implement special handling for services, you can specify charge code VAT service treatment defaults on this page for the location country and state of the supplier (seller), as applicable. You must define the physical nature as Service to access the Services VAT Treatment Drivers Setup page. |
Note: The VAT Defaults Setup and Services VAT Treatment Drivers Setup pages are described in detail in the PeopleSoft Global Options and Reports.