Reviewing an Example of VAT Entries

The following example illustrates how PeopleSoft Billing creates new entries in the interface tables for VAT processing when the VAT calculation method is set to gross and VAT calculation type is inclusive.

Program Parameters

Consider the following program parameters:

Invoice with an early payment discount of five percent and four lines, all with the same VAT applicability.
VAT A = 10 percent.
VAT B = 20 percent.
Line 1: Pretax amount = 40 EUR; VAT Code A; VAT Amount = 4 EUR; Physical nature of Goods.
Line 2: Pretax amount = 40 EUR; VAT Code B; VAT Amount = 8 EUR; Physical nature of Goods.
Line 3: Pretax amount = 20 EUR; VAT Code A; VAT Amount = 2 EUR; Physical nature of Goods.
Line 4: Pretax amount = 30 EUR; VAT Code A; VAT Amount = 3 EUR; Physical nature of Services.

Here are the amounts as they appear on invoice:

Pretax amount = 130 EUR.
VAT amount total = 17 EUR.

Here is the VAT invoice summary:

VAT A = 9 EUR. VAT B = 8 EUR (displayed on summary page).
Total invoice amount = 147 EUR.

When Header Is AR Open Item

After you define the AR level on the Installation Options - Billing - Integration Options page as Header is AR Open Item:

Open Item One

Open Item One in PENDING_ITEM_FS	Amount
#entry_amt	147 EUR
#user_amt1	130 EUR (pretax amount)
#item_line	0
VAT Basis Amount	130 EUR
VAT Amount	17 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Gross (from invoice header)

Entries In PENDING_VAT_FS:

VAT Code	Physical Nature	Trans. Type	VAT Amount	VAT Basis Amt	VAT Percent
A	Goods	(From Lines 1 and 3) See note.	6 EUR	60.00 EUR	10
A	Services	(From Line 4)	3 EUR	30 EUR	10
B	Goods	(From Line 2)	8 EUR	40.00 EUR	20

Note:

It is assumed that both lines for Goods with VAT Code A have the same transaction type and VAT treatment. If this is not the case, those categories have separate entries in this table.

The system does not insert VAT entries into PENDING_DST_FS if PeopleSoft Billing is configured so that PeopleSoft Receivables creates the accounting entries or if the declaration point is invoice, delivery, or accounting date and the recalculation option is disabled.

Entries in PENDING_DST_FS, assuming that AR distribution options are line level:

Invoice Line Number/Type of Entry	Line Amount
Line 1/AR ChartField	44 EUR (Net + VAT)
Line 2/AR ChartField	48 EUR (Net + VAT)
Line 3/AR ChartField	22 EUR (Net + VAT)
Line 4/AR ChartField	33 EUR (Net + VAT)
Line 1/VAT Distribution ChartField	–4 EUR
Line 2/VAT Distribution ChartField	–8 EUR
Line 3/VAT Distribution ChartField	–2 EUR
Line 4/VAT Distribution ChartField	–3 EUR

Entries in PENDING_DST_FS, assuming that AR distribution options are header level:

Invoice Line Number/Type of Entry	Line Amount
Line 0/AR ChartField (Receivables from header).	147 EUR
Line 1/VAT Distribution ChartField.	–4 EUR
Line 2/VAT Distribution ChartField.	–8 EUR
Line 3/VAT Distribution ChartField.	–2 EUR
Line 4/VAT Distribution ChartField.	–3 EUR

When Line Is AR Open Item

When you define the AR Level on the Installation Options - Billing - Integration Options page as line is AR open item:

Open Item One

Open Item One in PENDING_ITEM_FS	Amount
#entry_amt	44 EUR
#user_amt1	40 EUR (pretax amount)
#item_line	1
VAT Basis Amount	40 EUR
VAT Amount	4 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Gross (from invoice header)

Entries in PENDING_VAT_FS:

VAT Code	Physical Nature	Trans. Type	VAT Amt	VAT Basis Amt	VAT Percent
A	Goods	(From Line 1)	4 EUR	40.00 EUR	10

Note:

Entries in PENDING_DST_FS assuming AR distributions options are line level:

Invoice Line Number/Type of Entry	Line Amount
Line 1/AR ChartFields	44 EUR
Line 1/VAT Distribution ChartFields	–4 EUR

Open Item Two:

Open Item Two in PENDING_ITEM_FS	Amount
#entry_amt	48 EUR
#user_amt1	40 EUR (pretax amount)
#item_line	2
VAT Basis Amount	40 EUR
VAT Amount	8 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Gross (from invoice header)

Entries in PENDING_VAT_FS:

VAT Code	Physical Nature	Trans. Type	VAT Amt	VAT Basis Amt	VAT Percent
B	Goods	(From Line 2)	8 EUR	40.00 EUR	20

Note:

Entries in PENDING_DST_FS assuming that AR distributions options are line level:

Line Number from Invoice/Type of Entry	Amount
Line 2/AR ChartFields	48 EUR
Line 2/VAT Distribution ChartFields	–8 EUR

Open Item Three:

Open Item Three in PENDING_ITEM_FS	Amount
#entry_amt	22 EUR
#user_amt1	20 EUR (pretax amount)
#item_line	3
VAT Basis Amount	20 EUR
VAT Amount	2 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Gross (from invoice header)

Entries in PENDING_VAT_FS:

VAT Code	Physical Nature	Trans Type	VAT Amt	VAT Basis Amt	VAT Percent
A	Goods	(From Line 3)	2 EUR	20.00 EUR	10

Note:

Entries in PENDING_DST_FS assuming AR distributions options are line level:

Invoice Line Number/Type of Entry	Line Amount
Line 3/AR ChartFields	22 EUR
Line 3/VAT Distribution ChartFields	–2 EUR

Open Item Four:

Open Item Four in PENDING_ITEM_FS	Amount
#entry_amt	33 EUR
#user_amt1	30 EUR (pretax amount)
#item_line	4
VAT Basis Amount	30 EUR
VAT Amount	3 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Gross (from invoice header)

Entries in PENDING_VAT_FS:

VAT Code	Physical Nature	Trans Type	VAT Amt	VAT Basis Amt	VAT Percent
A	Services	(From Line 4)	3 EUR	30.00 EUR	10

Note:

Entries in PENDING_DST_FS assuming AR distributions options are line level:

Invoice Line Number/Type of Entry	Line Amount
Line 4/AR ChartFields	33 EUR
Line 4/VAT Distribution ChartFields	–3EUR