Understanding How VAT is Used with Sales Orders
VAT default data is used in sales orders where you can alter certain information.
Note: PeopleSoft Billing and PeopleSoft Order Management calculate and display VAT amounts.
This section discusses:
How to pass VAT information to PeopleSoft Billing.
How to invoice product kits in a VAT environment.
How to invoice products with VAT in a counter sale environment.
You use Process VAT Defaults (BIPVATOO) VAT to insert information for sales orders into the billing interface tables. The Billing Interface process (BIIF0001) inserts the data into the billing tables for invoicing. VAT amounts are calculated in PeopleSoft Billing.
The following table lists the order levels and fields in PeopleSoft Order Management and the corresponding tables and fields in PeopleSoft Billing.
You can run the Process VAT Defaults and Billing Interface processes individually or as part of the OM Invoicing (OM_IVC) multiprocess job.
Note: The fields are delivered as implicit Bill By fields on the Bill By Identifier page and are not available from the available options: Ship from Country, Ship to Country, Seller's Registration Country, Buyer's Registration Country, and VAT Treatment Group.
Note: When you are consolidating orders or shipments onto a single bill, these VAT-related fields must be identical: Ship from Country, Ship to Country, Seller's Registration Country, Buyer's Registration Country, Vat Treatment Group, Calculate at Gross or Net, VAT Declaration Point, VAT Declaration Date Source, VAT Exception Certificate, VAT Exception Type, VAT Recalculate at Payment, Buyer's VAT Registration ID, Seller's VAT Registration ID, VAT Round Rule, and VAT Declaration Date.
Note: When you specify a VAT declaration point, the system sets the VAT Declaration Date Source and VAT Declaration fields automatically.
Sales Order Level |
Order Management Field |
Billing Interface Table |
Billing Field |
---|---|---|---|
Schedule |
COUNTRY_LOC_BUYER |
INTFC_BI_HDR |
COUNTRY_LOC_BUYER |
Schedule |
COUNTRY_LOC_SELLER |
INTFC_BI_HDR |
COUNTRY_LOC_SELLER |
Schedule |
COUNTRY_VAT_PERFRM |
INTFC_BI_HDR |
COUNTRY_VAT_PERFRM |
Schedule |
COUNTRY_VAT_SUPPLY |
INTFC_BI_HDR |
COUNTRY_VAT_SUPPLY |
Schedule |
STATE_LOC_BUYER |
INTFC_BI_HDR |
STATE_LOC_BUYER |
Schedule |
STATE_LOC_SELLER |
INTFC_BI_HDR |
STATE_LOC_SELLER |
Schedule |
STATE_VAT_DEFAULT |
INTFC_BI_HDR |
STATE_VAT_DEFAULT |
Schedule |
STATE_VAT_PERFRM |
INTFC_BI_HDR |
STATE_VAT_PERFRM |
Schedule |
VAT_DCLRTN_POINT |
INTFC_BI_HDR |
VAT_DCLRTN_POINT |
Schedule |
VAT_DCLRTN_POINT
|
INTFC_BI_HDR |
|
Schedule |
VAT_CALC_GROSS_NET |
INTFC_BI_HDR |
VAT_CALC_GROSS_NET |
Schedule |
VAT_DST_ACCT_TYPE |
INTFC_BI_HDR |
VAT_DST_ACCT_TYPE |
Schedule |
VAT_RECALC_FLAG |
INTFC_BI_HDR |
VAT_RECALC_FLAG |
Schedule |
VAT_EXCPTN_CERTIF |
INTFC_BI_HDR |
VAT_EXCPTN_CERTIF |
Schedule |
VAT_EXCPTN_TYPE |
INTFC_BI_HDR |
VAT_EXCPTN_TYPE |
Schedule |
VAT_RGSTRN_BUYER |
INTFC_BI_HDR |
VAT_RSTRN_BUYER |
Schedule |
VAT_ROUND_RULE |
INTFC_BI_HDR |
VAT_ROUND_RULE |
Schedule |
VAT_SERVICE_TYPE |
INTFC_BI_HDR |
VAT_SERVICE_TYPE |
Schedule |
VAT_SVC_SUPPLY_FLG |
INTFC_BI_HDR |
VAT_SVC_SUPPLY_FLG |
Schedule |
COUNTRY_LOC_BUYER |
INTFC_BI |
COUNTRY_LOC_BUYER |
Schedule |
COUNTRY_LOC_SELLER |
INTFC_BI |
COUNTRY_LOC_SELLER |
Schedule |
COUNTRY_SHIP_FROM |
INTFC_BI |
COUNTRY_SHIP_FROM |
Schedule |
COUNTRY_SHIP_TO |
INTFC_BI |
COUNTRY_SHIP_TO |
Schedule |
COUNTRY_VAT_BILLFR |
INTFC_BI |
COUNTRY_VAT_BILLFR |
Schedule |
COUNTRY_VAT_BILLTO |
INTFC_BI |
COUNTRY_VAT_BILLTO |
Schedule |
COUNTRY_VAT_PERFRM |
INTFC_BI |
COUNTRY_VAT_PERFRM |
Schedule |
COUNTRY_VAT_SUPPLY |
INTFC_BI |
COUNTRY_VAT_SUPPLY |
Schedule |
IST_TXN_FLG |
INTFC_BI |
IST_TXN_FLG |
Schedule |
STATE_LOC_BUYER |
INTFC_BI |
STATE_LOC_BUYER |
Schedule |
STATE_LOC_SELLER |
INTFC_BI |
STATE_LOC_SELLER |
Schedule |
STATE_VAT_DEFAULT |
INTFC_BI |
STATE_VAT_DEFAULT |
Schedule |
STATE_VAT_PERFRM |
INTFC_BI |
STATE_VAT_PERFRM |
Schedule |
STATE_SHIP_FROM |
INTFC_BI |
STATE_SHIP_FROM |
Schedule |
STATE_SHIP_TO |
INTFC_BI |
STATE_SHIP_TO |
Schedule |
VAT_SVC_SUPPLY_FLG |
INTFC_BI |
VAT_SVC_SUPPLY_FLG |
Schedule |
VAT_SERVICE_TYPE |
INTFC_BI |
VAT_SERVICE_TYPE |
Schedule |
VAT_TXN_TYPE_CD |
INTFC_BI |
VAT_TXN_TYPE_CD* |
Schedule |
TAX_CD_VAT |
INTFC_BI |
TAX_CD_VAT* |
Schedule |
VAT_APPLICABILITY |
INTFC_BI |
VAT_APPLICABILITY* |
NA |
Pass SetID value for record PRODGP_NGVAT_VW |
INTFC_BI |
PROD_GRP_SETID* |
Schedule |
VAT_TREATMENT |
INTFC_BI |
VAT_TREATMENT |
Schedule |
VAT_TREATMENT_GRP |
INTFC_BI |
VAT_TREATMENT_GRP |
Line |
|
INTFC_BI |
|
Line |
PHYSICAL_NATURE |
INTFC_BI |
PHYSICAL_NATURE |
NA |
PRD |
INTFC_BI |
IDENTIFIER_TBL |
Note: * For product kits, VAT fields are determined based on the components that make up the kit if you assign VAT percentages to the components.
For VAT, the schedules are grouped by VAT code, and the tax is calculated and prorated to the schedules. If the customer wants the items shipped to their address instead of picking up the items, the Customer Service Representative (CSR) must add an order line for the freight product ID in order to calculate VAT on the freight. Otherwise, the system does not calculate VAT of the sales order freight amount.
PeopleSoft Order Management typically estimates taxes, which are recalculated in PeopleSoft Billing. In the counter sale environment, taxes are not recalculated in PeopleSoft Billing when the transaction is paid up front or paid fully by a deposit. Taxes are calculated in PeopleSoft Order Management at the tax authority level. Similarly, third-party tax calculations and freight tax are also stored at the tax authority level.
For counter sale customers, typically if the customer wants the items shipped to their address instead of picking up the items, the system calculates the VAT of the sales order freight automatically. However, the CSR can also add an order line for the freight product ID in order to pass additional freight charges on to the customer.
For product kits, VAT defaults are determined based on the product kit (parent) level on the sales order. VAT amounts are calculated at the parent kit level. These orders are not exploded into separate components if the order has been paid for up front. If you do not enter the VAT percentages for a kit, the Populate Billing process passes the parent product ID for the kit to PeopleSoft Billing and uses as defaults the current values for VAT applicability, VAT transaction type, and VAT code that are stored on the order schedule.
For example, product kit 670001 is priced at 1000 EUR. You elect to apply the VAT percentages. Each component represents an individual bill line:
Components |
Quantity |
VAT % |
Price Each |
---|---|---|---|
10001 |
1 |
50 |
500 EUR |
30010 |
2 |
30 |
150 EUR |
50001 |
1 |
20 |
200 EUR |
90001 |
1 |
0 |
0 EUR |
If you do not elect to apply VAT percentages, Populate Billing passes product ID 67001 and the price of 1000 EUR to PeopleSoft Billing as a single bill line.
PeopleSoft Order Management typically estimates taxes, which are recalculated in PeopleSoft Billing. In the counter sale environment, taxes are not recalculated in PeopleSoft Billing when the transaction is paid up front or paid fully by a deposit. However, Billing always recalculates taxes for partially paid invoices and fully paid invoices if a third-party tax package is being used. Taxes are calculated in PeopleSoft Order Management at the tax authority level. Similarly, third-party tax calculations and freight tax are also stored at the tax authority level.
For VAT, the schedules are grouped by VAT code, and the tax is calculated and prorated to the schedules.
For product kits, VAT defaults are determined based on the product kit (parent) level on the sales order. VAT amounts are calculated at the parent kit level. These orders will not be exploded into separate components if the order has been paid for up front.
For counter sale customers who typically want the items shipped to their address instead of picking up the items; the system calculates the VAT of the sales order freight automatically. However, the CSR can also add an order line for the freight product ID in order to pass additional freight charges on to the customer.