Interacting with Third-Party Tax Suppliers

PeopleSoft Billing, PeopleSoft Order Management, and PeopleSoft Purchasing interact with third-party tax software for the following reasons:

  • Geocode lookup.

  • Online tax calculation in PeopleSoft Order Management, PeopleSoft Billing, and PeopleSoft Purchasing.

  • Order completion processing (batch processing in PeopleSoft Order Management).

  • Invoicing (batch processing in PeopleSoft Billing).

  • Procurement card processing (batch processing in PeopleSoft Purchasing).

Note:

The ship to customer ID and address number are required for all third-party tax processing in Order Management and Billing.

The system does not send the transaction to Vertex Q Series or Taxware Sales Tax for calculation if the ship to address is not a U.S. or Canadian address.

Maximum tax calculation is supported at the line level and the document level with release 8.9. Prior to release 8.9, maximum tax calculation is supported at the line level only.

Calculating Taxes in PeopleSoft Order Management

In PeopleSoft Order Management, the system calculates and saves taxes when you change the order and click the Calculate Price button. The Order Completion process calculates taxes for orders that are entered using electronic data interchange, returned material authorization replacement sales orders, and buying releases. The system uses this tax information when printing sales orders acknowledgments and quotations. You can also view the summarized tax amount on the Order Entry Form page.

The calculated tax amount is only an estimate of taxes for an order, and it is not posted to any tax registers. If you have PeopleSoft Billing installed, the system recalculates taxes even if they have been calculated previously in the order entry process online or by the Order Completion process.

Note:

For typical sales orders where the payment is set to on account, PeopleSoft Order Management does not pass tax calculations to PeopleSoft Billing. However, in the counter sale environment, the tax calculations are passed to Billing. Taxes will not be recalculated in Billing when the transaction is fully paid up front and your installation is using the PeopleSoft tax solution as opposed to a third-party tax solution.

Calculating Taxes in PeopleSoft Billing

In PeopleSoft Billing, the system calculates taxes when you click the Calculate Taxes button on the Bill Summary page, and when you run the pro forma or finalization processes.

Note:

The system does not calculate taxes or VAT for a bill line when the bill line's tax timing option (populated by PeopleSoft Contracts) is defined as S (taxes on services rendered).

Calculating Taxes in PeopleSoft Purchasing

In PeopleSoft Purchasing, the system calculates taxes when you:

  • Click the Calculate button on the Maintain Purchase Order - Purchase Order page or the Express Purchase Order - Purchase Order page when entering a purchase order or a change order online.

  • Click the Calculate SUT (calculate sales/use tax) button on the Maintain Purchase Order - Sales/Use Tax Information for Schedule page or Express Purchase Order - Sales/Use Tax Information for Schedule page when entering a purchase order or change order online.

  • Perform the Purchase Order Calculations Application Engine process (PO_POCALC) that creates purchase orders.

  • Perform the Change Purchase Order Application Engine process (PO_POCHNG) that creates change orders.

When you perform one of these actions, the system evokes the TaxCalc API process, which calculates your sales and use tax.

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