Understanding How to Process VAT Transactions in PeopleSoft Expenses

PeopleSoft Expenses enables you to record and report VAT information associated with expense reports. The system loads the VAT information from expense reports into the VAT transaction table and then into the VAT reporting tables, which you use to create VAT returns and other VAT reports. Before you record and report VAT, set up your VAT environment and enable your business units for VAT. Oracle's PeopleSoft applications accommodate a number of methods to calculate VAT based on the countries where your organization is located or with which it conducts business.

Set up VAT for PeopleSoft Expenses and other PeopleSoft applications that process VAT transactions using the VAT and Intrastat components and pages. VAT setup and the associated system pages are described in detail in the PeopleSoft Global Options and Reports.

Set up VAT for PeopleSoft Expenses at the expense type and expense business unit levels. Both of these levels are represented by a VAT driver created by the PeopleSoft system. You can set up the VAT defaults for PeopleSoft Expenses in a central VAT location by selecting the VAT driver for expense type or expense business unit.

The global VAT default routines provide a centralized mechanism for the storage and retrieval of VAT information. PeopleSoft Expenses obtains VAT defaults by calling the global VAT default routines. The basic elements in the VAT default routines are:

• VAT Driver: An entity for which you can define VAT defaults, such as expenses business unit and expense types.

• Driver Keys: Application-specific key fields that identify a VAT driver instance.

  For example, the keys that identify the expense types VAT driver are SetID and expense type. Driver keys are pulled from transactions from the VAT default routines.

• VAT Defaults: Fields for which the common VAT default routines supply default values. The system determines VAT defaults by:

  • Using algorithms.

    Complex algorithms determine some field values, such as VAT registration country or VAT treatment.

  • Using the VAT Default table.

    The system obtains some VAT default fields through a hierarchy of defaults from the common VAT Defaults table. The levels in the hierarchy represent the default source and are identified by the VAT driver (such as expense type, expenses business unit, and VAT entity). This information is centralized into a single table, and the values are available through the common VAT default routines.

The following table lists the VAT drivers and associated VAT driver keys in VAT default hierarchy sequence from most specific to least specific for the VAT Defaults component. No PeopleSoft Expenses drivers apply to the Services VAT Treatment Defaults: