Setting Up the VAT Environment
This topic discusses how to link order management or inventory business units to a VAT entity.
In PeopleSoft Order Management, you can invoice by Order Management business unit or by Inventory business unit. In a VAT environment, the Order Management or Inventory business unit by which you choose to bill must be linked to a VAT entity that is associated with a Billing business unit that is, in turn, linked to a General Ledger business unit.
If you are billing by Order Management business unit, the billing business unit on the Order Management Definition - Order Management Setup page is used.
If you are billing by Inventory business unit, the billing unit that is on the Inventory Definition - Business Unit Definition page is used.
Note: The only VAT processing that PeopleSoft Inventory performs is for Order Management sales orders.
The system determines the VAT entity for sales order in the following way: The Billing business unit that is associated with the Inventory business unit takes precedence over the Billing business unit that is associated with the Order Management business unit if both business units have the Billing business unit assigned. The Billing business unit assigned determines where the VAT entity is derived from. See the following table:
|
Order Management Billing Business Unit/VAT Entity Setup |
Inventory Billing Business Unit/VAT Entity Setup |
Billing Business Unit used to determine VAT Entity |
VAT Entity Assigned |
|---|---|---|---|
|
Yes/No |
No/No |
Order Management Billing business unit. |
No |
|
Yes/Yes |
No/No |
Order Management Billing business unit. |
Yes |
|
Yes/Yes |
Yes/No |
Inventory Billing business unit. |
No |
|
Yes/Yes |
Yes/Yes |
Inventory Billing business unit. |
Yes |
|
No/No |
Yes/Yes |
Inventory Billing business unit. |
Yes |
|
No/No |
Yes/No |
Inventory Billing business unit. |
No |
Note: The Inventory business unit that is determined at the header level uses the Priority 1 Inventory business unit in the customer's distribution network. If no distribution network is assigned at the customer level, the system takes the Inventory business unit from either the Order Management distribution network priority 1 Inventory business unit or the Default Inventory business unit that is established on the Order Management business unit Shipping and Receiving page.
Two main components control VAT defaults: the VAT Defaults Setup component and the Services VAT Treatment Defaults Setup component. You can access these components from the common VAT menu or from the Order Management Business Unit definition, product definition, or customer pages. If you access these components from the VAT menu, the driver that you select determines the fields that appear. If you access either of these components from the application pages, the component from which you are accessing it determines the fields that appear.
|
VAT Driver |
VAT Driver Keys |
Country |
State |
Applicable to Regular VAT Defaults |
Applicable to Services VAT Treatment Defaults |
|---|---|---|---|---|---|
|
Sales Line Identifier Note: PeopleSoft Order Management uses the product ID value for the identifier. |
SetID Identifier Table Identifier |
Optional |
Optional |
Yes |
Yes |
|
Sales Line Identifier Group Note: PeopleSoft Order Management uses the product group value for the identifier. |
Sales Line Identifier Group SetID Identifier Table Sales Line Identifier Group |
Optional |
Optional |
Yes |
Yes |
|
Customer Location |
Customer SetID Customer ID Address Sequence Number |
Optional |
Optional |
Yes |
Yes |
|
Customer |
Customer SetID Customer ID |
Optional |
Optional |
Yes |
Yes |
|
Order Management Business Unit |
Business Unit |
Optional |
Optional |
Yes |
Yes |
|
VAT Entity Registration |
VAT Entity Country |
Required |
Optional |
Yes |
No |
|
VAT Country |
Country |
Not applicable |
Optional |
Yes |
No |