Processing Custom Duty, Excise Duty, and Sales Tax/VAT in the Sourcing Business Process
This section discusses how to Process Custom Duty, Excise Duty, and Sales Tax/VAT in the Sourcing Business Process
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Page Name |
Definition Name |
Usage |
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RUN_PO_POCALC1 |
Enter run control criteria for the PO Calculations process and run the process. |
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RUN_PO_POCREATE |
Enter run control criteria for the Create Purchase Orders process and run the process. |
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Sourcing Workbench - Sourcing Page |
PO_SRC_ANALYSIS |
View, correct, and recycle transactions in the purchasing staging tables. |
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Sourcing Workbench - Sourcing Details Page |
PO_SRC_ANLSYS_DTL |
View further details about a staged row and to change the supplier and stage status |
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Sourcing Workbench - Pricing Information Page |
PO_SRC_PRICING |
Enter pricing information. |
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PO_SHIP_STG_EXS |
View staged purchase order excise duty and sales tax/VAT information. If information is incorrect, the page provides source document details to help you determine where corrections may need to be made. |
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RUN_PO_POSTGPRG |
Enter run control criteria for the Purge Stage Tables process and run the process. |
Use the Run Controls page (RUN_PO_POCALC1) to enter run control criteria for the PO Calculations process and run the process.
Navigation:
The PO Calculations process acts on the PeopleSoft Purchasing staging table (PO_ITM_STG) and creates rows in PO_ITM_STG_UD and PO_ITM_STG_SUP. The PO Calculations process calculates miscellaneous charges, freight, use tax, and sales tax/VAT. In addition, it invokes the Tax Determination Application Engine process (FS_EXSLIB), which performs tax determination and calculates all applicable excise duties and sales tax/VAT for the purchase order.
Details relevant to tax determination, such as inventory business unit, purchasing business unit, item, and supplier are available in the PeopleSoft Purchasing staging tables. However, no tax parameters, such as tax rate code, tax rate, calculated tax base, tax amounts, and so forth, are available.
Based on the details relevant to tax determination, the Tax Determination and PO Calculations processes run for the purchase order calculate and store tax information in the tax staging tables (PO_STG_TAX_EXD and PO_STG_TAXD_EXS).
The PO_CMFRTMSC section of the PO Calculations process runs the customs duty tax determination and calculation common process.
Use the PO Stage Excise/Sales Tax/VAT Details page (PO_SHIP_STG_EXS) to view staged purchase order excise duty and sales tax/VAT information.
If information is incorrect, the page provides source document details to help you determine where corrections may need to be made.
Navigation:
Click the Excise/Sales Tax button on the Sourcing Workbench - Pricing Information page.
Excise/ST/VAT Schedule Dtls
Field or Control |
Description |
|---|---|
Amount |
Displays the total merchandise amount on the schedule. |
Tax Transaction Type |
Displays the tax transaction type assigned to the transaction. Values for purchases are:
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Excise Applicable |
Indicates if excise duties are applicable to the transaction. |
Tax Applicable |
Indicates whether sales tax/VAT are applicable to the transaction. |
Excise Applicable
Field or Control |
Description |
|---|---|
Tax Rate Cd (tax rate code) |
Displays the excise tax rate code for the transaction derived using the Tax Determination process and tax rate code default hierarchy. |
Excise Use Av Flag (excise use assessable value flag) |
Indicates if the assessable value entered for the item is being used in the tax calculation. |
Excise Item Category Code |
Displays the default excise tax category code defined for the item. |
Excise UOM (excise unit of measure) |
Displays the item excise unit of measure. |
Assessable Value |
Displays the assessable value entered for the item. The excise reporting currency defined for the tax location appears. The tax location for the transaction is based on the inventory or purchasing business unit for the ship to location. Excise registers are maintained in a selected currency based on the periodic reports and statements that are submitted to excise authorities. Excise transactions that update excise registers need to be converted to an excise reporting currency. |
Tax Applicable
Field or Control |
Description |
|---|---|
Tax Rate Cd (tax rate code) |
Displays the sales tax/VAT rate code derived using the Tax Determination process and assigned to the transaction. |
Reporting Authority |
Displays the sales tax/VAT reporting authority derived using the Tax Determination process and assigned to the transaction. |
Ship From State |
Displays the ship from state for the item. |
Tax Authority Rate |
Displays the sales tax/VAT authority rate derived using the Tax Determination process and assigned to the transaction. |
Ship to State |
Displays the ship to state for the item. |
Form Code |
Displays the sales tax/VAT form code associated with the derived sales tax/VAT rate code. |
Sales Item Category Code |
Displays the default sales tax/VAT category code defined for the item. |
Excise/Sales Tax/VAT and Custom Duty Details
Field or Control |
Description |
|---|---|
Tax Type |
Displays the tax type associated with the tax component code on the transaction. Values are:
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Tax Rate Sequence |
Indicates the order in which tax component codes in the tax rate code should be calculated. |
Tax Component Code |
Displays the tax component code assigned to the transaction. |
Calculation Scheme |
Displays the default calculation scheme associated with the selected tax component code. Values are: Amount: Ad hoc amount-based tax calculation. Percentage: Percentage-based tax calculation. Percentage appears by default. Quantity: Quantity-based tax calculation |
Tax Rate UOM (tax rate unit of measure) |
If the Calculation Scheme is set to Quantity, displays the unit of measure against which the tax rate amount is applied. Note: If the transaction unit of measure is different from the tax rate code unit of measure, the system performs the conversion using the PeopleSoft-delivered unit of measure conversion feature. |
Tax Rate Pct (tax rate percentage) |
If the Calculation Scheme field value is set to Percentage, displays the percentage to be applied against the taxable amount. |
Tax Rate Amount |
If the Calculation Scheme field value is set to Quantity, displays the amount to be applied against the transaction quantity, according to the transaction quantity in the Tax Rate UOM value. Note: If the transaction unit of measure is different from the tax rate code unit of measure, the system performs the conversion using the PeopleSoft-delivered unit of measure conversion feature. If the Calculation Scheme is set to Amount, this is the tax amount. |
Basis Amount |
Displays the base amount on which tax is calculated. |
Tax Amount |
Displays the tax amount for the tax rate sequence. |
Recovery Amount |
Displays the recoverable tax amount for the tax rate sequence. |
Non Recovery Amount |
Displays the nonrecoverable tax amount for the tax rate sequence. |
More Tab
Select the More tab.
Field or Control |
Description |
|---|---|
Tax Percentage |
Displays the tax percentage. The system uses this value to split taxes into recoverable and nonrecoverable components. If the Tax Type field value is set to Excise, this is the CENVAT percentage that can be recovered. For example, a field value of 100 indicates that the full amount of tax is eligible for CENVAT credit. If you set the Tax Type field value to ST/VAT, this is the set-off percentage for the tax rate code. For example, a field value of 60 indicates that 60 percent of the tax amount is recoverable and eligible for setoff. The balance is added to the inventory cost or expensed depending on the treatment defined for the item. |
Tax Dependency Code |
Displays the tax dependency code assigned to the tax rate code. Tax dependency codes indicate the basis for calculating tax, as well as the precedence of taxes of the same tax type that must be included. |
Include Base |
If this check box is selected, indicates the inclusion of the base value in the tax calculation. If this check box is clear, the base value is excluded from the tax calculation. For example, this check box may be clear for a surcharge tax component, which is calculated based on a preceding tax component rather than on a base value. However, this check box would generally be selected for basic excise duties and local sales taxes. |
Include Freight |
If this check box is selected, indicates the inclusion of freight as a part of the base value in tax calculation. |
Include Miscellaneous Charges |
If this check box is selected, indicates the inclusion of miscellaneous charge expenses as a part of the base value for tax calculation. |
Tax Summary
Field or Control |
Description |
|---|---|
Total Freight Amount |
Displays the total freight charge amount for the schedule. |
Total Misc Charge Amount (total miscellaneous charge amount) |
Displays the total miscellaneous charge amount for the schedule. |
Total Item Cost |
Displays the total cost of items on the schedule. This value includes the merchandise amount, total freight amount, total miscellaneous charge amount, and total nonrecoverable tax amount. |
Total Tax Amount |
Displays the total tax amount on the schedule. |
Total Recovery Amt (total recovery amount) |
Displays the total recoverable tax amount on the schedule. |
Total Non-Recovery Amt (total non-recovery amount) |
Displays the total nonrecoverable tax amount on the schedule. |
Use the Create PO page (RUN_PO_POCREATE) to enter run control criteria for the Create Purchase Orders process and run the process.
Navigation:
Based on tax determination parameters such as inventory business unit, purchasing business unit, supplier ID, and item ID, the Tax Determination process calculates and stages applicable tax data. The Create Purchase Orders process creates purchase orders from data in the PeopleSoft Purchasing staging tables and populates data to the purchase order tables. The Create Purchase Orders process also works to transfer the tax information populated to the tax staging tables by the Tax Determination and PO Calculations processes to the purchase order tax tables.
Both the Create Purchase Order and PO Change processes use the Build Distribution process (PO_CMBLDDST) to create the distribution and nonprorated distribution temporary tables.
When creating distributions for excise duties and sales tax/VAT, the process prorates customs duties among distributions based on amounts in the customs duty staging table as populated by the Customs Duty Calculation process (PO_CMCSDLIB).
Use the Purge Stage page (RUN_PO_POSTGPRG) to enter run control criteria for the Purge Stage Tables process and run the process.
Navigation:
Once purchase orders are created, you run the Purge Stage Tables process to purge the Purchasing staging tables. This process also purges the PO_HDR_STG_ESX, PO_STG_TAX_EXS, and PO_STG_TAXD_EXS staging tables, which carry excise duty and sales tax/VAT data. This tax data was originally populated to these tables by the Tax Determination process (FS_EXSLIB) that was invoked as a part of the PO Calculations process.