Tax Parameters

PeopleSoft Contracts enables you to associate tax parameters with products. When you select a product onto a contract line, the contract line inherits the tax parameters that you defined for the products. When you assign a contract line to a billing plan, you can then review the contract line's tax parameters and adjust them, along with the ship to and ship from IDs and addresses, if necessary. These billing plan tax parameters then flow to PeopleSoft Billing when you run the Contracts Billing Engine. All tax calculations for PeopleSoft Contracts billing plan items are then handled by PeopleSoft Billing.

For amount-based billing plans and initial bills for prepaids, tax parameters are stored on the billing plan. For as-incurred and recurring billing plans, tax parameters are stored on CA_DETAIL.

Bills that are generated from the Contracts Projects interface are compatible with the PeopleSoft Billing tax calculation options. For sales and use tax, PeopleSoft Billing offers three options:

• Calculate taxes using PeopleSoft tax tables.

• Calculate taxes using Vertex (third-party tax supplier).

• Calculate taxes using Taxware (third-party tax supplier).

PeopleSoft Contracts sends the billing information that you define for a billing plan to PeopleSoft Billing. PeopleSoft Billing, depending upon the tax solution that you are using, either performs the tax calculations or makes a call to one of the third-party tax suppliers for the tax calculation.

Value-added tax (VAT) is calculated using common PeopleSoft routines.