VAT Default and Override Relationships in General Ledger

The hierarchy for VAT default options for PeopleSoft General Ledger is:

  1. VAT Entity and VAT Country

  2. Business Unit

  3. Journal Source

  4. Account

Therefore, VAT default options set up for the VAT entity or VAT country override the VAT default options set up for a business unit, journal source, or account level.

If there are no VAT default options set at the VAT entity or VAT country levels, then any VAT default options set up at the business unit level override any VAT defaults set up a the journal source or account levels.

If no VAT defaults are set at the VAT entity, VAT country, or VAT business unit level, then the VAT default options set at the journal source level override the VAT default options set at the account level.

When you enter a journal line, however, overriding of VAT default options works in the reverse order:

  1. Account

  2. Journal Source

  3. Business Unit

When entering VAT at the journal line, if you established an option value at the account level, that value overrides a value set at the journal source and business unit levels. Likewise, if you have not established values at the account or journal source level, PeopleSoft General Ledger calculates VAT using the options set for the business unit, VAT entity registration, or VAT country levels.