Understanding GST Data Processing in the Billing Interface

The Billing interface staging area supports the online bill data structure and stores one or more rows of data for each line of chargeable activity that is sent to PeopleSoft Billing. The type of data that you store in the Billing interface is characterized by one of seven transaction types.

The Billing Business Unit Tax Indicator

In PeopleSoft Billing, you can apply only a single method for tax calculation to each invoice. The invoice can be subject to standard taxes, including U.S. sales tax and value-added tax (VAT), subject to third-party taxation when the business unit is associated with a third-party tax provider, or associated with India tax processing. These methods are mutually exclusive. For example, if PeopleSoft Billing identifies that an invoice requires PeopleSoft VAT processing, the system assumes that the invoice requires no India tax processing.

You must bill sales order shipments with GST applicability under a Billing business unit that is associated with an organization's tax location.

For example, consider the following PeopleSoft Inventory, Order Management, and Billing business units called IND01, which are all associated with an organization tax location. Imagine also that the following additional Billing business units exist:

  • IND02, which is not associated with an organization tax location.

  • FRA01, which is associated with a VAT entity.

If a sales order shipment is associated with the Inventory business unit IND01, you should not bill the sales order shipment under billing business units IND02 or FRA01, because these business units are not associated with an organization tax location. If you bill this sales order shipment under IND02 or FRA01, PeopleSoft Billing does not display or calculate the India taxes correctly for this shipment. Even if previously calculated excise duty for the shipment exists, PeopleSoft Billing does not display the excise duty if the shipment is billed under a business unit that is not associated with an organization tax location.

The correct procedure is to bill the shipment under the Billing business unit IND01, which is tied to an organization tax location. If the PeopleSoft Inventory or Order Management business units are tied to an organization tax location, you must also associate their respective Billing business units to an organization tax location to ensure that the appropriate tax processing occurs in PeopleSoft Billing.

The Billing Interface process or online bill entry determines the type of tax to which the Billing business unit is subject and populates the billing business unit tax indicator (BI_BU_TAX_IND) field with one the following values:

Term Definition

0:

The Billing business unit is subject to PeopleSoft standard taxes, including U.S. sales tax and VAT. This value is the default.

1:

The Billing business unit has an associated third-party tax provider.

2:

The Billing business unit has an associated organization tax location. India GST processing may apply.

Bill-By Functionality

PeopleSoft Billing uses the bill-by identifier to define how to group billing activity when it is added to a bill through the Billing Interface. You can define the bill-by identifier at the customer, bill source, bill type, and business unit levels.

Use the following fields as bill-by fields when you require India tax processing to ensure that the invoices have bill lines that share the same associated state tax authority:

  • SHIP_FROM_BU

  • SHIP_TO_CUST_ID

  • BUSINESS_UNIT_OM

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