VAT Environment Setup
For the system to track and process VAT, you must first set up some basic information: VAT transaction types, VAT authorities, VAT codes and their associated VAT accounting templates, VAT countries, VAT entities, VAT use types, and VAT defaults. Each piece builds upon the next so, for the basic setup, you should implement each piece in the following order:
-
VAT transaction types.
-
VAT rates, VAT codes, and VAT accounting information.
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VAT countries.
-
VAT entities.
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VAT use types.
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VAT apportionment if you have complex requirements for recovering input VAT.
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VAT defaults.
In addition to the information you must set up, PeopleSoft software delivers multiple accounting entry types for VAT accounting and reporting with every application. You cannot add your own.
Note:
You should use only one SetID for all your VAT setup. If VAT codes and transaction types are set up under multiple SetIDs, an invalid VAT code or transaction type could supply by default onto a transaction entered for a business unit that is using a different SetID for VAT.
This table lists the VAT accounting entry types:
| Accounting Entry Type | Description | PeopleSoft Applications | VAT Reporting | Accounting |
|---|---|---|---|---|
|
VI |
VAT Input Identifies input VAT transaction lines in the VAT transaction table. These lines are flagged as either VIR on the source transactions in PeopleSoft Payables and PeopleSoft Expenses, but may be flagged as VIR, VIN, or VIB on the original source transactions in PeopleSoft General Ledger. These items are flagged as VI on the original source transactions within PeopleSoft Treasury. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
Yes |
No |
|
VIB |
VAT Input Rebate Identifies accounting entries for input VAT rebate amounts. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
No |
Yes |
|
VIC |
VAT Input Credit Identifies input VAT credit transaction lines in the VAT transaction table. These lines are flagged as VICR on the source transactions in PeopleSoft Payables. |
PeopleSoft Payables |
Yes |
No |
|
VICB |
VAT Input Rebate Credit Identifies accounting entries for input VAT rebate credit amounts. |
PeopleSoft Payables |
No |
Yes |
|
VICN |
VAT Input Non-Recoverable Credit Identifies the accounting entry for nonrecoverable input VAT credit. |
PeopleSoft Payables |
No |
Yes |
|
VICR |
VAT Input Recoverable Credit Identifies the accounting entry for recoverable input VAT credit. When a VAT transaction is loaded to the transaction table, it is stored with the VAT distribution account type of VIC. |
PeopleSoft Payables |
No |
Yes |
|
VID |
VAT Input Discount Identifies adjustments to input VAT in the VAT transaction table due to taking a cash discount when VAT is recalculated at time of payment. These lines are flagged as VIDR on the original source transactions. |
PeopleSoft Payables |
Yes |
No |
|
VIDA |
VAT Discount Taken on Purchases Identifies the accounting entry that backs out the portion of the discount attributable to input VAT from the discount earned account when you recalculate VAT at the time of payment and a cash discount is taken. |
Peoplesoft Payables |
No |
Yes |
|
VIDN |
VAT Input Discount Non-Recoverable Identifies the accounting entry for the nonrecoverable portion of the input VAT discount adjustment. |
PeopleSoft Payables |
No |
Yes |
|
VIDR |
VAT Input Discount Recoverable Identifies the accounting entry for the recoverable portion of the input VAT discount adjustment. These entries are stored in the VAT transaction table as VID. |
PeopleSoft Payables |
No |
Yes |
|
VIIN |
VAT Input Intermediate Non-Recoverable Identifies the intermediate accounting entry created at invoice time for nonrecoverable input VAT when VAT is declared at time of payment. |
PeopleSoft Payables, General Ledger |
Used for Italian VAT register only. |
Yes |
|
VIIR |
VAT Input Intermediate Recoverable Identifies the intermediate accounting entry created at invoice time for recoverable input VAT when VAT is declared at time of payment. |
PeopleSoft Payables, General Ledger |
Used for Italian VAT register only. |
Yes |
|
VIN |
VAT Input Non-Recoverable Identifies the accounting entry for nonrecoverable input VAT. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
No |
Yes |
|
VINT |
VAT Input Non-Taxable Identifies nontaxable transaction lines in the VAT transaction table that are generated when the VAT applicability is exempt or outside the scope of VAT. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
Yes |
No |
|
VIR |
VAT Input Recoverable Identifies the accounting entry for recoverable input VAT. For PeopleSoft Payables, Expenses, and General Ledger, when a VAT transaction is loaded to the transaction table, it is stored with the VAT distribution account type of VI. |
PeopleSoft Payables, Expenses, Treasury Management, General Ledger |
No |
Yes |
|
VIW |
VAT Input Write-Off Identifies the VAT transaction entries in the VAT transaction table for the write-off of input VAT. These lines are flagged as VIWR on the original source transactions. |
PeopleSoft Payables |
Yes |
No |
|
VIWB |
VAT Input Rebate Write-Off Identifies the accounting entry for the write-off of rebate input VAT. |
PeopleSoft Payables |
No |
Yes |
|
VIWN |
VAT Input Write-Off Non-Recoverable Identifies the accounting entry for the write-off of nonrecoverable input VAT. |
PeopleSoft Payables |
No |
Yes |
|
VIWR |
VAT Input Write-Off Recoverable Identifies the accounting entry for the write-off of recoverable input VAT. |
PeopleSoft Payables |
No |
Yes |
|
VO |
VAT Output Identifies the accounting entry for output VAT and to identify the output VAT transaction lines in the VAT transaction table. |
PeopleSoft Billing, Receivables, General Ledger, Asset Management |
Yes |
Yes |
|
VOAA |
VAT Output Advance with Adjustment Identifies the adjustment accounting entry for output VAT on advance payments for France. In France, the AR Prepaid account should be credited with the advance payment amount INCLUDING VAT amount. To keep the transaction balanced, a VAT to Adjust accounting entry will be required. This advance payment is applied to an invoice. The VAT to Adjust accounting entry will be reverted. Whenever an advance payment is entered with VAT, there will be 2 VAT accounting entries for France, a credit to VAT Final, and a debit to VAT to Adjust. |
PeopleSoft Receivables |
Yes |
Yes |
|
VOCP |
VAT Output for Purchases Credit Identifies the accounting entry created for a credit against output VAT when you record both input and output VAT for a purchase. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Payables |
Yes |
Yes |
|
VIRC |
VAT Input Reclaimable Identifies the accounting entry for reclaimable foreign VAT recorded on employee expense sheets. |
PeopleSoft Expenses |
No |
Yes |
|
VOD |
VAT Output Discount Identifies the accounting entry for adjustments to output VAT due to taking a cash discount when VAT is recalculated at time of payment. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Receivables |
Yes |
Yes |
|
VOI |
VAT Output Intermediate Identifies the intermediate accounting entry created at invoice time for output VAT when VAT is declared at time of payment. |
PeopleSoft Billing, Receivables, General Ledger |
Used for Italian VAT register only. |
Yes |
|
VONT |
VAT Output Non-Taxable Identifies nontaxable transaction entries in the VAT transaction table that are generated when the VAT applicability is exempt or outside the scope of VAT. |
PeopleSoft Receivables, Billing, General Ledger, Asset Management |
Yes |
No |
|
VOP |
VAT Output for Purchases Identifies the accounting entry created for output VAT when you record both input and output VAT for a purchase. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Payables, Treasury Management, General Ledger |
Yes |
Yes |
|
VOW |
VAT Output Write-Off Identifies the accounting entry for the write-off of output VAT. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Receivables |
Yes |
Yes |
|
VOWP |
VAT Output for Purchases Write-Off Identifies the accounting entry created for write-off of output VAT when you record both input and output VAT for a purchase. Also identifies those transaction lines in the VAT transaction table. |
PeopleSoft Payables |
Yes |
Yes |
|
VODP |
VAT Output Purchase Adjustment Identifies the accounting entry for the adjustment to output VAT when you record both input and output VAT for a purchase, and for recalculating VAT at the time of payment when a cash discount is taken. |
PeopleSoft Payables |
Yes |
Yes |
|
VOIP |
VAT Output Intermediate for Purchase Identifies the intermediate accounting entry created at invoice time for output VAT when you record both input and output VAT on a purchase and when VAT is declared at time of payment. |
PeopleSoft Payables |
Used for Italian VAT register only. |
Yes |
|
VOAP |
VAT Output Advance Payments Identifies the accounting entry for output VAT on an advance payment. |
PeopleSoft Receivables |
Yes |
Yes |
|
VOC |
VAT Output for Credits Identifies the accounting for output VAT when a credit note is generated from PeopleSoft Billing. |
PeopleSoft Billing, Receivables |
Yes |
Yes |
|
VORE |
VAT Output Asset Reinstatement Identifies the accounting entry for output VAT for asset reinstatement. |
PeopleSoft Asset Management |
Yes |
Yes |