Calculation Type and Declaration Point Combinations
This table lists the calculation and declaration point combinations that PeopleSoft Receivables supports. Recalculation occurs only when a discount is available:
| Combination | VAT Calculation Type | Declaration Point | Recalculation |
|---|---|---|---|
|
1 |
Gross |
Payment |
N |
|
2 |
Gross |
Payment |
Y |
|
3 |
Gross |
Accounting Date, Invoice, Delivery |
N |
|
4 |
Gross |
Accounting Date, Invoice, Delivery |
Y |
|
5 |
Net |
Payment |
|
|
6 |
Net |
Accounting Date, Invoice, Delivery |
|
Combination 1: Calculation Type Gross and Payment Declaration Point Without Recalculation
When you post the pending item that creates the receivable, the system creates accounting entries. These accounting entries record the VAT liability on the gross amount of the item in the ChartField combination that you designated for output intermediate VAT on the VAT Code - Accounting Information page. At payment time, the system creates accounting entries that:
-
Offset the intermediate VAT liability.
-
Create the final VAT liability.
The system makes no adjustments to the amount of the liability—the status simply changes from intermediate to final.
Combination 2: Calculation Type Gross and Payment Declaration Point with Recalculation
This scenario is almost the same as the gross calculation type with a payment declaration point without recalculation. In this scenario, however, the system creates a PENDING_VAT record to adjust the VAT liability if you take a discount.
Combination 3: Calculation Type Gross and Accounting Date, Invoice, or Delivery Declaration Point Without Recalculation
If you declare VAT at accounting date, invoice, or delivery, PeopleSoft Receivables places the VAT amounts directly into the Final VAT field. The VAT accounting entries that you provide (or that the system creates) record the VAT liability based on the gross item amount in the ChartField combination that you designated for output use on the VAT Code - Accounting Information page. Subsequent processing does not create any VAT accounting entries.
Combination 4: Calculation Type Gross and Accounting Date, Invoice, or Delivery Declaration Point with Recalculation
This scenario is nearly the same as the preceding one, but the system creates a PENDING_VAT record to adjust the VAT liability if you take a discount.
Combination 5: Calculation Type Net and Payment Declaration Point Without Recalculation
When you post the pending item that creates the receivable, the system creates accounting entries that record the VAT liability on the net amount of the item in the ChartField combination that you designated for output intermediate VAT on the VAT Code - Accounting Information page. At payment time, the system creates accounting entries that:
-
Offset the intermediate VAT liability.
-
Create the final VAT liability.
No adjustments are made to the amount of the liability—the status simply changes from intermediate to final.
Combination 6: Calculation Type Net and Accounting Date, Invoice, or Delivery Declaration Point Without Recalculation
If you choose to declare VAT at accounting date, invoice time, or delivery, PeopleSoft Receivables places the VAT amounts directly into the Final VAT field. The VAT accounting entries that you provide (or that the system creates) record the VAT liability based on the net item amount in the ChartField combination that you designate for output on the VAT Code - Accounting Information page. Subsequent processing does not create any VAT accounting entries.