Prerequisite Setup for VAT Processing

Before you can process transactions using VAT in PeopleSoft Receivables, you must perform these steps:

1. Set up your VAT processing rules and defaults.

2. Use the Business Unit Definition page to define a location code and to associate the receivables business units with the general ledger (GL) business units that are linked to a VAT entity.

   You establish the GL business unit and VAT entity relationship on the VAT Entity - Identification page.

3. On the Receivables Options - VAT Defaults page, click the VAT Defaults link to define the tolerances for groups and other VAT defaults.

   These tolerances and other defaults can also be set directly using the VAT Defaults component for the receivables business unit options driver.

4. From the customer General Information component, click the VAT Defaults link to define VAT processing information for pending items for each customer.

   These settings can also be set directly using the VAT Defaults component for the customer driver.