Establishing the PeopleSoft Payables VAT Default Hierarchy

This section discusses setting up the PeopleSoft Payables VAT default hierarchy.

Setting up VAT for PeopleSoft Payables involves first establishing the general VAT environment, then establishing the PeopleSoft Payables VAT default hierarchy.

To set up a VAT environment for PeopleSoft Payables, you need to access pages in the Set Up Financials/Supply Chain > Common Definitions > VAT and Intrastat menu. These pages, the VAT components, and VAT setup are described in detail in the PeopleSoft Global Options and Reports Documentation. It is essential that you read the information in these topics prior to setting up your VAT environment.

After you set up your VAT environment, you set up VAT defaults and options throughout the PeopleSoft Payables control hierarchy to determine how to process PeopleSoft Payables VAT transactions. At the top of the control hierarchy are the VAT entity and VAT country. From there, you set the processing options according to the following hierarchy:

  • PeopleSoft General Ledger business unit.

  • PeopleSoft Payables business unit.

  • Voucher origin.

  • Control group.

  • Supplier.

  • Supplier location.

  • Inventory item.

  • Voucher.

  • Voucher line.

At each of these levels, you might be required to specify values for certain VAT options and you will also have access to the VAT Defaults and Services VAT Treatment Setup pages. Use these pages to specify values for both required and optional VAT defaults for that level. Note that the fields available on the VAT Defaults and Services VAT Treatment Setup pages vary by the level in the hierarchy from which you access them. The VAT Defaults and Services VAT Treatment Setup pages are documented in full in the PeopleSoft Global Options and Reports Documentation.

The following tables lists the pages on which you establish VAT options and from which you access the VAT Defaults Setup and Services VAT Treatment Drivers Setup components.

PeopleSoft Payables Hierarchy

VAT Options Pages or Defaults Links

Usage

General Ledger business unit

Procurement Control - Non-Merch Charges

See Procurement Control - Non-Merch Charges Page.

On the Procurement Control - Non Merch Charges page, you establish the non-recoverable VAT prorate policy by PeopleSoft General Ledger business unit. The prorate policy that you establish here defaults to all PeopleSoft Payables business units that are mapped to this general ledger business unit.

Payables business unit

Payables Options - Tax Options

See Payables Options - Tax Options Page.

See Establishing VAT Defaults.

Payables Definition - Tax Options

See Payables Definition - Tax Options Page.

See Establishing VAT Defaults.

You set up VAT options for PeopleSoft Payables business units by SetID on the Payables Options – Tax Options page and by business unit on the Payables Definition - Tax Options page. You also use the VAT Defaults and Services VAT Treatment Setup components, either by accessing them from the Payables Options – Tax Options page and Payables Definition - Tax Options page or by accessing them directly from the menu, selecting the AP Options and AP Business Unit drivers.

On the Payables Definition - Tax Options page, you complete the PeopleSoft Payables business unit VAT definition by selecting the type of VAT edit message that is to appear when the tolerances set on the Payables Options - Tax Options page are exceeded.

Voucher origin

Voucher Origin - Tax Options

See Group Information - Tax Options Page.

You can establish default VAT physical nature and service location performance defaults on this page for the PeopleSoft Payables control hierarchy. These defaults can be overridden at the voucher origin level.

Control group

Group Information – Tax Options

See Group Information - Tax Options Page.

You can establish default VAT physical nature and service location performance defaults on this page for the PeopleSoft Payables control hierarchy. These defaults can be overridden at the control group level.

Suppliers and Supplier Locations

Enter VAT for suppliers on the following pages:

  • Supplier Information – Identifying Information

  • VAT Registration Details

  • VAT Default Setup

  • Service VAT Treatment Drivers Setup

Supplier Information – Location

You can set up VAT options at the supplier and supplier location levels of the PeopleSoft Payables control hierarchy. Most of these options can in turn be overridden on the voucher.

Inventory Item

Inventory Definition - Business Unit Definition

See Inventory Definition - Business Unit Definition Page.

You can establish default VAT options for inventory items.

Vouchers and Voucher Lines

Enter VAT for vouchers and voucher lines on the following pages accessed from the Voucher – Invoice Information page:

  • VAT Header

  • VAT Summary

  • Voucher Distribution Line VAT Information

See Invoice Information Page.

You can set up VAT options at the voucher and voucher line levels of the PeopleSoft Payables control hierarchy. Most of these options can in turn be overridden on the voucher.

Note: Vouchers that are created through the Voucher Build Application Engine process (AP_VCHRBLD) apply the VAT defaults populated by the PeopleSoft Payables control hierarchy, unless VAT information is specified on the staged source transaction. For quick invoices, you can specify VAT apportionment control on the delivered Quick Invoice complete worksheet page.