Setting Up PeopleSoft Billing Business Units to Process VAT

Use the Billing Definition - Business Unit 1 page (BUS_UNIT_TBL_BI) to establish a link to a VAT-enabled General Ledger business unit.

Navigation:

Set Up Financials/Supply Chain > Business Unit Related > Billing > Billing Definition > Business Unit 1

This example illustrates the fields and controls on the Billing Definition - Business Unit 1 page.

1. Select a location code.

   The location code field is critical for VAT because the address country for this location becomes the ship-from country default for VAT invoices.

2. Select a Receivables business unit.

   The relationship between a Billing business unit and a General Ledger business unit is inherited from PeopleSoft Receivables. Therefore, when you define a Receivables business unit, the General Ledger business unit that is associated with that Receivables business unit is the default.

   If that General Ledger business unit is tied to a VAT entity, the system displays that entity on the Billing Definition - Business Unit 4 page. If the General Ledger business unit is not tied to a VAT entity, the VAT Reporting Entity field on the Billing Definition - Billing Business Unit 4 page is blank. You establish the relationship between a General Ledger business unit and a VAT entity in the VAT setup process on the VAT Entity - Identification page.

   Note: If PeopleSoft Billing and General Ledger are included in the installation, but PeopleSoft Receivables is not, you can associate the General Ledger business unit with a Billing business unit by entering the General Ledger business unit directly on the Billing Definition - Business Unit 1 page.

3. Ensure that the VAT Reporting Entity field that is on the Billing Definition - Business Unit 4 page is populated.

   If it is, then you have created a VAT Billing business unit.

   This example illustrates the fields and controls on the Billing Definition - Business Unit 4 page.

   

4. Select a default physical nature for the business unit.

   Additionally, you can select a default location where services that are billed in this Billing business unit are performed.

   Click the VAT Default Setup link to set up business unit VAT defaults. Click the VAT Service Treatment Setup link to specify business unit VAT service treatment defaults.

   Warning! If the VAT entity on the Billing Definition - Business Unit 4 page is missing, going to the VAT Entity - Identification page and linking the default General Ledger business unit to a VAT entity does not automatically make the associated Billing business unit a VAT Billing business unit. You must return to the Billing Definition - Business Unit 1 page and relink the Billing business unit to the General Ledger business unit. You can do this by changing the Receivables business unit to some other value and then immediately reinstating its original value. This action causes the system to recheck the General Ledger business unit to determine whether it is linked to a VAT entity. When the system verifies the link between the General Ledger business unit and the VAT entity, the Billing business unit becomes a VAT Billing business unit, and the system copies the VAT entity ID onto the Billing Definition - Billing Business Unit 4 page.