VAT Accounting Entries

The Receivables Update Application Engine process (ARUPDATE) creates both regular accounting entries and VAT accounting entries.

For general ledger purposes, the system bases the VAT entries on the accounting date. For tax reporting purposes, the system also records and uses the tax declaration date, which may be the same as the accounting date. The declaration date is set during pending item entry, either on the VAT Header page or in your billing interface.

Note:

The system does not fully support VAT processing and multiple offset accounting lines when ChartField inheritance is in use. If you are processing items with VAT and multiple accounting lines (for example, multiple user-defined lines entered on accounting templates or by means of online pending item entry), and you have defined any ChartField inheritance options as Always Inherit, that ChartField may be out of balance due to the VAT amount. The amounts can be allocated across the accounting entries to make the entries balance. The ChartField may not balance in PeopleSoft General Ledger.