Preparing PeopleSoft Purchasing VAT Environments

To prepare the PeopleSoft Purchasing VAT environment:

1. Link the PeopleSoft Purchasing business unit to a VAT entity using the PeopleSoft General Ledger business unit.

   This enables the PeopleSoft Purchasing business unit to record VAT information on purchase orders.

2. Define VAT defaults and other VAT-related information for all VAT drivers in the PeopleSoft Purchasing defaulting hierarchy, as required.

To link a PeopleSoft Purchasing business unit to a VAT entity:

1. Access the Purchasing Definition - Business Unit Definition page.

2. Select the PS/GL (PeopleSoft General Ledger) check box.

3. Select the PeopleSoft General Ledger business unit in the GL Unit (general ledger unit) field.

   The connection between PeopleSoft Purchasing business units and VAT entities is indirect. You must link the PeopleSoft Purchasing business unit to a PeopleSoft General Ledger business unit that is already linked to a VAT entity. Define links between PeopleSoft General Ledger business units and VAT entities on the VAT Entity - Identification page.

   After linking PeopleSoft Purchasing business units to PeopleSoft General Ledger units, set the VAT processing options for those business units. VAT processing options are defined by SetID, and the options are applied to all business units within the SetID.

To define VAT defaults, VAT service treatment defaults, and other VAT-related information for the PeopleSoft Purchasing options VAT driver:

1. Access the Purchasing Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Options).

2. Specify a value for physical nature.

3. Click the VAT Defaults link to access the VAT Defaults Setup page for the purchase order options VAT driver.

   See Understanding the Requisition Business Process.

4. Click the VAT Service Treatment Setup link to access the Service VAT Treatment Default setup page for the purchase order options VAT driver.

To define VAT defaults and other VAT-related information for the PeopleSoft Purchasing (business unit) definition VAT driver:

1. Access the Purchasing Definition - Business Unit Options page.

2. Select the Calculate VAT on Req (calculate value-added tax on requisitions) check box if you want to process and calculate VAT on requisitions and pass the requisition VAT information to other procurement transactions further along the supply chain.

3. Access the Purchasing Definition - Business Unit Definition page.

4. Click the VAT Defaults link to access the VAT Defaults Setup page for the PeopleSoft Purchasing business unit VAT driver.

To define VAT defaults, service VAT treatment defaults, and other VAT-related information for the supplier and supplier location VAT drivers:

1. Access the supplier Identifying Information page.

   Select: Suppliers > supplier Information > Add Update > Identifying Information.

2. Select the VAT Registration check box and access the VAT Registration Details page.

   Create a row, entering the VAT registration number, if available, for all VAT countries in which this supplier conducts business and all countries for which the supplier reports VAT.

3. Click the VAT Defaults link to access the VAT Defaults Setup page, where you can define VAT defaults, such as VAT codes, transaction types, declaration points, rounding rule, and VAT use type for vendors.

4. Click the VAT Service Treatment Setup link to access the Service VAT Treatment Defaults Setup page, where you can define service-related VAT defaults for vendors.

5. Access the Location page.

   For each location, expand the VAT section to define the usual physical nature of items purchased from this location (the location where services provided by this supplier location are usually performed) and to specify whether this supplier has been selected for suspension of VAT on purchases.

6. For each location, click the VAT Defaults link to access the VAT Defaults Setup page, where you can define VAT defaults (such as VAT codes, transaction types, declaration points, rounding rule, and VAT use type) for supplier locations.

7. For each location, click the VAT Service Treatment Setup link to access the Service VAT Treatment Defaults Setup page, where you can define service-related VAT defaults for supplier locations.

To define VAT defaults at the PeopleSoft Purchasing item level:

1. Access the Purchasing Attributes page.

   Select: Items > Define Items and Attributes > Purchasing Attributes.

2. Click the VAT Default link to access the VAT Defaults Setup page.

3. Click the VAT Service Treatment Setup link to access the Service VAT Treatment Defaults setup page.

To define a default VAT use type for the VAT driver for item business units in PeopleSoft Purchasing:

1. Access the Purchasing Business Unit Attributes page.

   Select: Items > Define Items and Attributes > Purchasing Attributes.

2. Click the VAT Default link to access the VAT Defaults Setup page.

You can also define VAT defaults and service VAT treatment defaults for all VAT drivers in the PeopleSoft Purchasing hierarchy by navigating directly to the VAT Defaults and Service VAT Treatment Defaults components.