Reviewing a Second 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 type is inclusive, VAT calculation method is set to net, and an early payment discount is applied prior to calculating VAT.

Program Parameters

Consider the following program parameters:

Invoice with an early payment discount of five percent and four lines.
VAT A = 10 percent.
VAT B = 20 percent.
Line 1: Pretax amount = 40 EUR; VAT basis amount = 38 EUR; VAT Code A; VAT Amount = 3.80 EUR; Physical nature of Goods
Line 2: Pretax amount = 40 EUR; VAT basis amount = 38 EUR; VAT Code B; VAT Amount = 7.60 EUR; Physical nature of Goods.
Line 3: Pretax amount = 20 EUR; VAT basis amount = 19 EUR; VAT Code A; VAT Amount = 1.90 EUR; Physical nature of Goods.
Line 4: Pretax amount = 30 EUR; VAT basis amount = 28.50 EUR; VAT Code A; VAT Amount = 2.85 EUR; Physical nature of Services

Here are the amounts as they appear on the invoice:

Pretax amount = 130 EUR.
VAT amount total = 16.15 EUR.

Here is the VAT invoice summary:

VAT A = 8.55 EUR.
VAT B = 7.60 EUR (appears on summary page).
Total invoice amount = 146.15 EUR.

When Header Is AR Open Item

When 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	146.15 EUR
#user_amt1	130 EUR (pretax amount)
#item_line	0
VAT Basis Amount	123.50 EUR
VAT Amount	16.15 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Net (from invoice header)

Entries in PENDING_VAT_FS:

VAT Code	Physical Nature	Trans. Type	VAT Amt	VAT Basis Amt	VAT Percent
A	Goods	(From Lines 1 and 3). See note.	5.70 EUR	57 EUR	10
A	Services	(From Line 4).	2.85 EUR	28.50 EUR	10
B	Goods	(From Line 2)	7.60 EUR	38 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.

Note:

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 distributions options are line level:

Invoice Line Number/Type of Entry	Line Amount
Line 1/AR ChartFields	43.80 EUR
Line 2/AR ChartFields	47.60 EUR
Line 3/AR ChartFields	21.90 EUR
Line 4/AR ChartFields	32.85 EUR
Line 1/VAT Distribution ChartFields	–3.80 EUR
Line 2/VAT Distribution ChartFields	–7.60 EUR
Line 3/VAT Distribution ChartFields	–1.90 EUR
Line 4/VAT Distribution ChartFields	–2.85 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 ChartFields (Receivables from header)	146.15 EUR
Line 1/VAT Distribution ChartFields	–3.80 EUR
Line 2/VAT Distribution ChartFields	–7.60 EUR
Line 3/VAT Distribution ChartFields	–1.90 EUR
Line 4/VAT Distribution ChartFields	–2.85 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	43.80 EUR
#user_amt1	40 EUR (pretax amount)
#item_line	1
VAT Basis Amount	38 EUR
VAT Amount	3.80 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Net (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)	3.80 EUR	38 EUR	10

Note:

Entries in PENDING_DST_FS:

Invoice Line Number/Type of Entry	Line Amount
Line 1/AR ChartFields	43.80 EUR
Line 1/VAT Distribution ChartFields	–3.80 EUR

Open Item Two:

Open Item Two in PENDING_ITEM_FS	Line Amount
#entry_amt	47.60 EUR
#user_amt1	40 EUR (pretax amount)
#item_line	2
VAT Basis Amount	38 EUR
VAT Amount	7.60 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Net (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)	7.60 EUR	38 EUR	20

Note:

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

Invoice Line Number/Type of Entry	Line Amount
Line 2/AR ChartFields	47.60 EUR
Line 2/VAT Distribution ChartFields	–7.60 EUR

Open Item Three:

Open Item Three in PENDING_ITEM_FS	Line Amount
#entry_amt	21.90 EUR
#user_amt1	20 EUR (pretax amount)
#item_line	3
VAT Basis Amount	19 EUR
VAT Amount	1.90 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Net (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)	1.90 EUR	19 EUR	10

Note:

Entries in PENDING_DST_FS assuming AR distribution options are line level:

Invoice Line Number/Type of Entry	Line Amount
Line 3/AR ChartFields	21.90 EUR
Line 3/VAT Distribution ChartFields	–1.90 EUR

Open Item Four:

Open Item Four in PENDING_ITEM_FS	Line Amount
#entry_amt	32.85 EUR
#user_amt1	30 EUR (pretax amount)
#item_line	4
VAT Basis Amount	28.50 EUR
VAT Amount	2.85 EUR
VAT Declaration Point	Captured from invoice header
VAT Recalculation Flag	Captured from invoice header
VAT Calculation Method	Net (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)	2.85 EUR	28.50 EUR	10

Note:

Entries in PENDING_DST_FS assuming that AR distribution options are line level.

Invoice Line Number/Type of Entry	Line Amount
Line 4/AR ChartFields	32.85 EUR
Line 4/VAT Distribution ChartFields	–2.85 EUR