Passing Credit Line VAT Reporting and ChartField Source Locations

The Load AR Pending Items process supports credit line VAT reporting and VAT ChartField definition tables.

The following criteria are used when populating the distribution account type in PENDING_VAT_FS:

  • For all noncredit lines and credit lines with a VAT declaration point of P, use the distribution account type from BI_HDR_VAT.

  • For credit lines with a declaration point other than P, use VOC as the distribution account type regardless of the value from BI_HDR_VAT.

When the bill header is the open item, lines are grouped together to be inserted into PENDING_VAT_FS in two passes:

First Pass

The first pass groups together two types of lines: non-ACR lines and ACR lines with a VAT declaration point defined as P.

These lines are grouped together based on the following:

  • Unique physical nature

  • VAT tax code

  • VAT percentage

  • VAT transaction type

  • VAT applicability

  • VAT treatment

  • VAT location country and state of the buyer

  • VAT location country and state of the seller

  • Where service performed country and state

  • Services place of supply country and state

The VAT amounts are summed up and each grouping results in a row in PENDING_VAT_FS. The VAT distribution account type is used as a copy of the value from BI_HDR_VAT.

Second Pass

The second pass uses lines with a line type of ACR and a declaration point that is not equal to P.

These lines are also grouped together based on the following:

  • Unique physical nature

  • VAT tax code

  • VAT percentage

  • VAT transaction type

  • VAT applicability

  • VAT treatment

  • VAT location country and state of the buyer

  • VAT location country and state of the seller

  • Where service performed country and state

  • Services place of supply country and state

The VAT amounts are summed up, and each grouping results in a row in PENDING_VAT_FS. The VAT distribution account type that is used is set to VOC regardless of the value that is in BI_HDR_VAT. This ensures unique entries in PENDING_VAT_FS. The PENDING_VAT_FS table has the VAT distribution account type as an additional key to prevent duplicate key row insert errors.

The system looks in the VAT_BU_ACCT_TBL table for the set of ChartFields to use when populating PENDING_DST_FS. VAT_BU_ACCT_TBL can be used to define ChartFields at the General Ledger business unit level. If no row is found, the system looks in VAT_ACCT_TBL for the ChartFields to use. ChartField inheritance is applied to the ChartFields that are retrieved for the VAT entries if necessary to complete the accounting entries.