Order Processing in a VAT Environment

This chapter provides an overview and describes how to:

Set up the value-added-tax (VAT) environment.
Update and viewing sales order VAT information.

Understanding How VAT is Used with Sales Orders

VAT default data is used in sales orders where you can alter certain information.

Note. PeopleSoft Billing and PeopleSoft Order Management calculate and display VAT amounts.

This section discusses how to:

Pass VAT information is passed to PeopleSoft Billing.
Invoice product kits in a VAT environment.
Invoice products with VAT in a counter sale environment.

Passing VAT Information to PeopleSoft Billing

VAT information for sales orders is inserted into the billing interface tables by using Process VAT Defaults (BIPVATOO). The Billing Interface process (BIIF0001) inserts the data into the billing tables for invoicing. VAT amounts are calculated in PeopleSoft Billing.

The table lists the order level and field in PeopleSoft Order Management and the corresponding table and field in PeopleSoft Billing.

Process VAT Defaults (BIPVATOO) and the Billing Interface process (BIIF0001) can be run individually or as part of the OM Invoicing (OM_IVC) multiprocess job.

Note. The fields are delivered as implicit Bill By Fields on the Bill By Identifier page and are not available from the available options: Ship from Country, Ship to Country, Seller's Registration Country, Buyer's Registration Country, and VAT Treatment Group.

Note. When you are consolidating orders or shipments onto a single bill, these VAT-related fields must be identical: Ship from Country, Ship to Country, Seller's Registration Country, Buyer's Registration Country, Vat Treatment Group, Calculate at Gross or Net, VAT Declaration Point, VAT Declaration Date Source, VAT Exception Certificate, VAT Exception Type, VAT Recalculate at Payment, Buyer's VAT Registration ID, Seller's VAT Registration ID, VAT Round Rule, and VAT Declaration Date.

Note. When you specify a VAT Declaration Point the system sets the VAT Declaration Date Source and VAT Declaration fields automatically.

Note. When you're billing sales order activity that is subject to VAT, the Populate Billing process passes VAT parameters to billing. When this occurs, the Billing Interface process creates new bills rather than adding activity to existing similar bills that are within PeopleSoft Billing. Therefore, if you choose to bill customers according to bill cycles, it is recommended that you plan the Populate Billing process on a schedule that enables you to produce fewer invoices per bill cycle:

Sales Order Level	Order Management Field	Billing Interface Table	Billing Field
Schedule	COUNTRY_LOC_BUYER	INTFC_BI_HDR	COUNTRY_LOC_BUYER
Schedule	COUNTRY_LOC_SELLER	INTFC_BI_HDR	COUNTRY_LOC_SELLER
Schedule	COUNTRY_VAT_PERFRM	INTFC_BI_HDR	COUNTRY_VAT_PERFRM
Schedule	COUNTRY_VAT_SUPPLY	INTFC_BI_HDR	COUNTRY_VAT_SUPPLY
Schedule	STATE_LOC_BUYER	INTFC_BI_HDR	STATE_LOC_BUYER
Schedule	STATE_LOC_SELLER	INTFC_BI_HDR	STATE_LOC_SELLER
Schedule	STATE_VAT_DEFAULT	INTFC_BI_HDR	STATE_VAT_DEFAULT
Schedule	STATE_VAT_PERFRM	INTFC_BI_HDR	STATE_VAT_PERFRM
Schedule	VAT_DCLRTN_POINT	INTFC_BI_HDR	VAT_DCLRTN_POINT
Schedule	VAT_DCLRTN_POINT If “I” If “P” If “D”	INTFC_BI_HDR	VAT_DCLRTN_DT_SRC “I” and VAT_DCLRTN_DT “blank.” VAT_DCLRTN_DT_SRC “N” and VAT_DCLRTN_DT “blank.” VAT_DCLRTN_SRC “D” and VAT_DCLRTN_DT “ship date of transaction.”
Schedule	VAT_CALC_GROSS_NET	INTFC_BI_HDR	VAT_CALC_GROSS_NET
Schedule	VAT_DST_ACCT_TYPE	INTFC_BI_HDR	VAT_DST_ACCT_TYPE
Schedule	VAT_RECALC_FLAG	INTFC_BI_HDR	VAT_RECALC_FLAG
Schedule	VAT_EXCPTN_CERTIF	INTFC_BI_HDR	VAT_EXCPTN_CERTIF
Schedule	VAT_EXCPTN_TYPE	INTFC_BI_HDR	VAT_EXCPTN_TYPE
Schedule	VAT_RGSTRN_BUYER	INTFC_BI_HDR	VAT_RSTRN_BUYER
Schedule	VAT_ROUND_RULE	INTFC_BI_HDR	VAT_ROUND_RULE
Schedule	VAT_SERVICE_TYPE	INTFC_BI_HDR	VAT_SERVICE_TYPE
Schedule	VAT_SVC_SUPPLY_FLG	INTFC_BI_HDR	VAT_SVC_SUPPLY_FLG
Schedule	COUNTRY_LOC_BUYER	INTFC_BI	COUNTRY_LOC_BUYER
Schedule	COUNTRY_LOC_SELLER	INTFC_BI	COUNTRY_LOC_SELLER
Schedule	COUNTRY_SHIP_FROM	INTFC_BI	COUNTRY_SHIP_FROM
Schedule	COUNTRY_SHIP_TO	INTFC_BI	COUNTRY_SHIP_TO
Schedule	COUNTRY_VAT_BILLFR	INTFC_BI	COUNTRY_VAT_BILLFR
Schedule	COUNTRY_VAT_BILLTO	INTFC_BI	COUNTRY_VAT_BILLTO
Schedule	COUNTRY_VAT_PERFRM	INTFC_BI	COUNTRY_VAT_PERFRM
Schedule	COUNTRY_VAT_SUPPLY	INTFC_BI	COUNTRY_VAT_SUPPLY
Schedule	IST_TXN_FLG	INTFC_BI	IST_TXN_FLG
Schedule	STATE_LOC_BUYER	INTFC_BI	STATE_LOC_BUYER
Schedule	STATE_LOC_SELLER	INTFC_BI	STATE_LOC_SELLER
Schedule	STATE_VAT_DEFAULT	INTFC_BI	STATE_VAT_DEFAULT
Schedule	STATE_VAT_PERFRM	INTFC_BI	STATE_VAT_PERFRM
Schedule	STATE_SHIP_FROM	INTFC_BI	STATE_SHIP_FROM
Schedule	STATE_SHIP_TO	INTFC_BI	STATE_SHIP_TO
Schedule	VAT_SVC_SUPPLY_FLG	INTFC_BI	VAT_SVC_SUPPLY_FLG
Schedule	VAT_SERVICE_TYPE	INTFC_BI	VAT_SERVICE_TYPE
Schedule	VAT_TXN_TYPE_CD	INTFC_BI	VAT_TXN_TYPE_CD*
Schedule	TAX_CD_VAT	INTFC_BI	TAX_CD_VAT*
Schedule	VAT_APPLICABILITY	INTFC_BI	VAT_APPLICABILITY*
N/A	Pass SetID value for record PRODGP_NGVAT_VW	INTFC_BI	PROD_GRP_SETID*
Schedule	VAT_TREATMENT	INTFC_BI	VAT_TREATMENT
Schedule	VAT_TREATMENT_GRP	INTFC_BI	VAT_TREATMENT_GRP
Line	PRODUCT_ID* PRODUCT_ID* (if the product is a kit) Component product IDs	INTFC_BI	PRODUCT_ID PRODUCT_KIT_ID PRODUCT_ID and IDENTIFIER
Line	PHYSICAL_NATURE	INTFC_BI	PHYSICAL_NATURE
N/A	“PRD”	INTFC_BI	IDENTIFIER_TBL

Note. * For product kits, VAT fields are determined based on the components that make up the kit if you assign VAT percentages to the components.

Invoice Product Kits in a VAT Environment

For value-added tax (VAT), the schedules are grouped by VAT code, and the tax is calculated and prorated to the schedules. If the customer wants the items shipped to their address instead of picking up the items, the CSR must add an order line for the freight product ID in order to calculate VAT on the freight. Otherwise, the system does not calculate VAT of the sales order freight amount.

PeopleSoft Order Management typically estimates taxes, which are recalculated in PeopleSoft Billing. In the counter sale environment, taxes are not recalculated in PeopleSoft Billing when the transaction is paid up front or paid fully by a deposit. Taxes are calculated in PeopleSoft Order Management at the tax authority level. Similarly, third-party tax calculations and freight tax are also be stored at the tax authority level.

For counter sale customers, typically if the customer wants the items shipped to their address instead of picking up the items, the system will calculate the VAT of the sales order freight automatically. However the CSR can also add an order line for the freight product ID in order to pass additional freight charges on to the customer.

For product kits, VAT defaults will be determined based on the product kit (parent) level on the sales order. VAT amounts will be calculated at the parent kit level. These orders will not be exploded into separate components if the order has been paid for up front. If you do not enter the VAT percentages for a kit, the OM Billing Interface passes the parent product ID for the kit to PeopleSoft Billing and uses as defaults the current values for VAT applicability, VAT transaction type, and VAT code that are stored on the order schedule.

For example, Product Kit 67001 is priced at 1000 EUR. You elect to apply the VAT percentages. Each component represents an individual bill line:

Components	Qty Per	VAT %	Price Each
10001	1	50	500 EURO
30010	2	30	150 EURO
50001	1	20	200 EURO
90001	1	0	0 EURO

If you do not elect to apply VAT percentages, Populate Billing passes product ID 67001 and the price of 1000 EUR to PeopleSoft Billing as a single bill line.

Invoice Products With VAT in a Counter Sale Environment

PeopleSoft Order Management typically estimates taxes, which are recalculated in PeopleSoft Billing. In the counter sale environment, taxes are not recalculated in PeopleSoft Billing when the transaction is paid up front or paid fully by a deposit. However, Billing always recalculates taxes for partially paid invoices and fully paid invoices if a third party tax package is being used. Taxes are calculated in PeopleSoft Order Management at the tax authority level. Similarly, third-party tax calculations and freight tax are also be stored at the tax authority level.

For counter sale customers, typically the customer wants the items shipped to their address instead of picking up the items, the system will calculate the VAT of the sales order freight automatically. However the CSR can also add an order line for the freight product ID in order to pass additional freight charges on to the customer.

Setting Up the VAT Environment

This section discusses how to:

Link Order Management or Inventory business units to a VAT entity.
Establish VAT defaults.

Linking Order Management or Inventory Business Units to a VAT Entity

In PeopleSoft Order Management, you can invoice by Order Management business unit or by Inventory business unit. In a VAT environment, the Order Management or Inventory business unit by which you choose to bill must be linked to a VAT entity that is associated with a Billing business unit that is, in turn, linked to a General Ledger business unit.

If you are billing by Order Management business unit, the billing business unit on the Order Management Definition - Order Management Setup page is used.
If you are billing by Inventory business unit, the billing unit that is on the Inventory Definition - Business Unit Definition page is used.

Note. The only VAT processing that PeopleSoft Inventory performs is for Order Management sales orders.

How the system determines the VAT Entity for sales order is as follows: The Billing business unit that is associated with the Inventory business unit takes precedence over the Billing business unit that is associated with the Order Management business unit if both business units have the Billing business unit assigned. Which Billing business unit is assigned determines where the VAT entity is derived. See the table below:

Order Management Billing Business Unit/VAT Entity Setup	Inventory Billing Business Unit/VAT Entity Setup	Billing Business Unit used to determine VAT Entity	VAT Entity Assigned
Yes/No	No/No	Order Management Billing business unit.	No
Yes/Yes	No/No	Order Management Billing business unit.	Yes
Yes/Yes	Yes/No	Inventory Billing business unit.	No
Yes/Yes	Yes/Yes	Inventory Billing business unit.	Yes
No/No	Yes/Yes	Inventory Billing business unit.	Yes
No/No	Yes/No	Inventory Billing business unit.	No

Note. The Inventory business unit that is determined at the header level uses the Priority 1 Inventory business unit in the customer's distribution network. If no distribution network is assigned at the customer, the system takes the Inventory Business Unit from either the Order Management distribution network priority 1 Inventory business unit or the Default Inventory business unit that is established on the Order Management business unit Shipping and Receiving page.

Setting Up VAT Defaults

Two main components control VAT defaults: the VAT Defaults Setup component and the Services VAT Treatment Defaults Setup component. You can access these components from the common VAT menu (Set Up Financials/Supply Chain, Common Definition, VAT and Intrastat, Value Added Taxes) or from the Order Management Business Unit definition, product definition, or customer pages. If you access these components from the VAT menu, the driver that you select determines the fields that appear. If you access either of these components from the application pages, the component from which you are accessing determines the fields that appear.

The table lists the VAT drivers and associated VAT driver keys in VAT default hierarchy sequence from most specific to least specific for the VAT Defaults component that are used with PeopleSoft Order Management. The table also indicates which drivers control defaults for the Services VAT Treatment:

VAT Driver	VAT Driver Keys	Country	State	Applicable to Regular VAT Defaults	Applicable to Services VAT Treatment Defaults
Sales Line Identifier. Note. PeopleSoft Order Management uses the Product ID value for the Identifier.	SetID. Identifier Tabl.e. Identifier.	Optional	Optional	Yes	Yes
Sales Line Identifier Group. Note. PeopleSoft Order Management uses the Product Group value for the Identifier.	Sales Line Identifier Group SetID. Identifier Table. Sales Line Identifier Group.	Optional	Optional	Yes	Yes
Customer Location.	Customer SetID. Customer ID. Address Sequence Number.	Optional	Optional	Yes	Yes
Customer.	Customer SetID Customer ID.	Optional	Optional	Yes	Yes
Order Management Business Unit.	Business Unit.	Optional	Optional	Yes	Yes
VAT Entity Registration.	VAT Entity. Country.	Required	Optional	Yes	No
VAT Country	Country.	Not applicable	Optional	Yes	No

Updating and Viewing Sales Order VAT Information

This section provides and overview and discusses how to modify:

Header VAT data.
Line VAT data.
Schedule VAT data.

Understanding Sales Order VAT Information

This section discusses:

VAT sales order processing
Header defaults
Line defaults
Schedule defaults

VAT Sales Order Processing

Because complex algorithms are used to obtain the VAT defaults, avoid manually changing these values. However, if the algorithms encounter problems in finding defaults, then manual intervention is necessary. For this reason, PeopleSoft doesn’t protect most of the fields on the VAT Information pages.

Be careful when manually changing defaults, especially the VAT Treatment field, since this value is used as a VAT default value for sales order lines.

You can change the customer Exception Type only if there is a valid country in the bill from VAT country field and the treatment is domestic or domestic distance sale. You can change Exception Type to Suspended only if suspension is allowed for the sellers VAT registration country.

The fields should be populated before the VAT default function is called to avoid errors or incorrect calculations. The table also displays the source for the fields:

Field	Header Source	Line/Schedule Source
Customer Location Country (COUNTRY_LOC_BUYER).	Customer bill to location.	Default value from header.
Customer Location State (STATE_LOC_BUYER).	Customer bill to location.	Default value from header.
Location Country (COUNTRY_LOC_SELLER).	Order Management Business Unit location.	Default value from header.
Location State (STATE_LOC_SELLER).	Order Management Business Unit location.	Default value from header.
Ship from Country (COUNTRY_SHIP_FROM).	Default Inventory Business Unit location country.	If line ship from Inventory Business Unit is the same as the header Inventory Business Unit, the header default value is used. Otherwise, the Inventory Business Unit location country where the product is shipping from is used.
Ship from State (STATE_SHIP_FROM).	Default Inventory Business Unit location state.	If line ship from Inventory Business Unit is the same as the header Inventory Business Unit, the header default value is used. Otherwise, the Inventory Business Unit location state where the product is shipping from is used.
Ship to Country (COUNTRY_SHIP_TO).	Ship to customer location country or override value.	Header default value if the ship to locations are the same, otherwise use the ship to location or override on the line.
Ship to State (STATE_SHIP_TO).	Ship to customer location state or override value.	Header default value if the ship to locations are the same, otherwise use the ship to location or override on the line.
Service Performed Country (COUNTRY_VAT_PERFRM).	Depends on value in the Where Services Performed flag at the header. If the flag specifies the ship from location, this field is set to the Order Management business unit country. If the flag specifies the ship to location, this field is set to the customer ship to country. If the flag specifies the buyers location, this field is set to the customer's bill to location country. If the flag specifies the suppliers location, this field is set to the Order Management business unit location country.	Depends on value in the Where Services Performed field at the line. If the flag specifies the ship from location, this field is set to the Order Management business unit country. If the flag specifies the ship to location, this field is set to the customer ship to country. If the flag specifies the buyers location, this field is set to the customer's bill to location country. If the flag specifies the supplier's location, this field is set to the Order Management business unit location country.
STATE_VAT_PERFRM	Depends on value that is in the Where Services Performed field at the header. If the flag specifies the ship from location, this field is set to the Order Management business unit state. If the flag specifies the ship to location, this field is set to the customer ship to state. If the flag specifies the buyers location, this field is set to the customer's bill to location state. If the flag specifies the suppliers location, this field is set to the Order Management business unit location state.	Depends on value in the Where Services Performed field at the line. If the flag specifies the ship from location, this field is set to the Order Management business unit state. If the flag specifies the ship to location, this field is set to the customer ship to state. If the flag specifies the buyers location, this field is set to the customer's bill to location state. If the flag specifies the suppliers location, this field is set to the Order Management business unit location state.

The fields are always unavailable for entry; they automatically change in response to a ship from inventory business unit change or ship to address change. If the ship from or ship to country that is involved does not require tracking VAT at the state level, the state field is blank.

State ship from
Country ship from
State ship to
Country ship to

Header Defaults

Initial header level defaults are determined when this occurs:

At save time/edit for the entire order.

Header level defaults are determined prior to line defaults.
When the Header VAT Information page is accessed.
When the Calculate Price button is selected.
If a line default is triggered, the system checks to make sure that the header level defaults are applied. If the defaults are needed, they are determined.

The Where Services Performed flag is retrieved from either the bill to customer location, or the Order Management Business Unit.

Defaults are automatically reapplied if VAT defaults are already determined at the header and the fields are changed at the line level:

Address Ship To Sequence change or Ship To Address Override.

If the resulting change causes the ship to country or state to change, the system automatically reapplies the VAT defaults to the header, line, and any schedules that have their addresses updated as a result of this change.
Sold to or bill to customer changes cause the entire order to be move again by default; however this type of change can only occur before the sales order is saved.

Note. If the bill to location is changed and this results in changes to the customer location and state, VAT defaults are not automatically reapplied. Any lines or schedules to which defaults have been applied prior to making the change must be reapplied manually, as needed.

Line Defaults

Initial line level defaults are determined when this occurs:

At save time/edit for the entire order.
When the Line VAT Information page is accessed.
When the Shipment Schedule page for the line is accessed.
When the Calculate button is selected.

The default Physical Nature and Where Services Performed flag are automatically applied when the Product ID is entered. The fields are applied based on this hierarchy: product definition, bill to customer location, Order Management business unit.

The header level VAT defaults are copied to the line if the fields on the header and line match:

Physical nature.
Ship from and ship to country/state.
Buyer and seller location/state.
Country and state where the service is physically performed.
VAT Entity.
VAT service type.
VAT service place of supply driver.

VAT defaults are automatically reapplied if the VAT defaults are already determined and thefields are changed at the line level:

Product ID.

The VAT defaults are reapplied to the line and all schedules.
Address ship to sequence change or ship to address override.

If the resulting change causes the ship to country or state to change, the system automatically reapplies the VAT defaults to the line, and any schedules that have their addresses updated as a result of this change.
Ship from Inventory business unit.

If the resulting change causes the ship from country or state, or the VAT Entity to change, the system automatically reapplies the VAT defaults to the line. If there is a single schedule, the schedule defaults are also be reapplied.

Schedule Defaults

Initial schedule-level defaults are determined when this occurs:

At save time/edit for the entire order.
When the Calculate button is selected.
When the Shipment Schedule page is accessed for the first time.
When a shipment is copied or split into additional schedules.

The line level VAT defaults are copied to the schedule if the fields on the line and schedule match:

VAT Entity.
Ship from and ship to country/state.
Buyer and seller location/state.
Country and state where the service is physically performed.
VAT Service Type.
VAT Service Place of Supply Driver.

VAT defaults are automatically reapplied if the VAT defaults are already determined and these fields are changed at the schedule level:

Address ship to sequence

If the resulting change causes the ship to country or state to change, the system automatically reapplies the VAT defaults to the schedule. If there is a single schedule, the line defaults are also reapplied.
Address override.

If the resulting change causes the ship to country or state to change, the system automatically reapplies defaults to the schedule.
Ship from Inventory business unit.

If the resulting change causes the ship from country or state, or the VAT entity to change, the system automatically reapplies the VAT defaults to the schedule. If there is a single schedule, the line defaults are also reapplied.

Pages used to Update and View Sales Order VAT Information

Page Name	Object Name	Navigation	Usage
Header VAT Information	ORDENT_HDR_VAT	Select VAT Information in the Header Menu field on the Order Entry Form page.	Override VAT header default values.
Line VAT Information	ORDENT_LINE_VAT	Select VAT Information in the Lines Menu field on the Order Entry Form page.	Override VAT line default values.
Schedule VAT Information	ORDENT_SCH_VAT	Select VAT Information from the Schedule Menu field on the Shipment Schedules page.	Override VAT schedule default values.
Freight VAT Information	ORDENT_FRT_VAT	Click the VAT Information on the Freight Detail page.	Override VAT freight default values.

Modifying Header VAT Data

Access the Header VAT Information page.

Expanding and Collapsing Sections

To manage the VAT data more efficiently, you can expand and collapse sections that are on this page.

Expand All Sections	Click the expand button to scroll to and access every section on the page. You can also expand one or more sections by clicking the arrow that is next to the section's name.
Collapse All Sections	Click to collapse all sections displaying only the header information. If you expand one or more sections, you can click the arrow that is next to the section's name to collapse the section.

Physical Nature

Change Physical Nature

Click the button to change to Goods or Services. When you click the button, the VAT defaults are reset for the new value.

VAT Locations

Location Country	For services only, displays the Order Management business unit country.
Location State	For services only, displays the Order Management business unit state.
Customer Location Country	For services only, displays the customer's bill to location country.
Customer Location State	For services only, displays the customer's bill to location state.
Service Performed Country	Depending on the services performed flag setting that is in the VAT default hierarchy (for example at customer or business unit level), the system sets the value for this field as follows: If the flag specifies the ship from location, this field is set to the Inventory business unit country. If the flag specifies the ship to location, this field is set to the customer ship to country. If the flag specifies the buyers location, this field is set to the customer's bill to location country. If the flag specifies the suppliers location, this field is set to the Order Management business unit location country.
Service Performed State	If the Service Performed Country requires that VAT be tracked by state, this field is populated depending on the services performed flag setting that is in the VAT default hierarchy (for example customer or business unit level). The system sets the value for this field as follows: If the flag specifies the ship from location, this field is set to the Inventory business unit state. If the flag specifies the ship to location, this field is set to the customer ship to state. If the flag specifies the buyers location, this field is set to the customer's bill to location state. If the flag specifies the suppliers location, this field is set to the Order Management business unit location state.
Ship From Country	Displays the ship from location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.
Ship From State	If the Ship From Country requires that VAT be tracked by state, displays the ship from location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.
Ship To Country	Displays the ship to customer location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.
Ship To State	If the Ship To Country requires that VAT be tracked by state, displays the ship to customer location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

VAT Defaults

This group box contains the:

VAT service-specific defaults.
VAT registrations defaults.
VAT controls defaults.
VAT treatments.
Adjust/reset VAT defaults.

Service Type	If the transaction is for a service, it displays the VAT service type of Freight or Other. The value that is in this field determines whether or not the special rules for freight transport within the European Union (EU) apply.
Place of Supply Driver	If the transaction is for a service, displays the usual place of supply (the place where VAT is usually liable) for the service. This value is used to help determine the place of supply country and the VAT treatment. Options are: Buyer's Countries, Supplier's Countries, or Where Physically Performed.
Reporting Country	Displays the country for which VAT is reported. This is the VAT Entity VAT registration country and determines many of the VAT defaults.
Defaulting State	If the reporting country requires that VAT be tracked by state or province, this field displays the state that is within the reporting country that is used to retrieve values from the VAT Defaults table.
Customer Registration Country and Customer Registration ID	Displays the registration country and ID of the bill to customer.
Customer Exception Type	Displays the exception that is granted to the customer. Options are: None, Exonerated, or Suspended. This value is specified on the bill to customer.
Certificate ID	If applicable, displays the ID of the VAT exception certificate that may have been issued to the customer.
Calculate at Gross or Net	Indicates how VAT is calculated. Options are: Gross: The system calculates VAT before it applies any early-payment discounts. Net: The system calculates VAT after it deducts early payment discounts. If there are two percentage discounts, the system uses the larger of the two when it calculates VAT. The system does not use discount amounts, only discount percentages. The default value comes from the VAT entity driver.
Recalculate at Payment	Select this check box to enable the recalculation of VAT at payment time to allow for any early payment discounts, if you are calculating VAT at gross. This causes the system to adjust the VAT amount at the time of payment if the discount is taken. This is set on the VAT entity driver.
Declaration Point	Determines when the VAT transaction information will be recognized for reporting purposes. Options are: Invoice: VAT is recognized at time of invoice. Payment: VAT is recognized at time of payment. Delivery: VAT is recognized on delivery. This value may be set at any level in the VAT hierarchy: VAT entity registration, business unit options, customer or customer location.
Rounding Rule	Displays the VAT rounding rule. The value comes from the VAT country driver or VAT Entity driver definition. Options are: Nat Rnd (natural round): Amounts are rounded normally (up or down) to the precision that is specified for the currency code. For example, for a currency that is defined with two decimal places, 157.4659 rounds up to 157.47, but 157.4649 is rounded down to 157.46. Down: Amounts are rounded down. For example, for a currency that is defined with two decimal places, 157.4699 is rounded down to 157.46. Up: Amounts are rounded up with a rounding precision to one additional decimal place. For example, for a currency that is defined with two decimal places, 157.4659 rounds up to 157.47, but 157.4609 is rounded to 157.46.
Place of Supply Country	For services, displays the country in which the VAT is liable.
Treatment	Displays the VAT treatment. Options are: Deemed Service Export: Services that are provided in the supplier’s country to a foreign buyer, where the supply of these services must be zero-rated (that is, the place of supply is the country in which the supplier is located and registered for VAT, but the customer is located in another country). Domestic Goods Sale: Sale of goods where the supplier and customer are located in the same country. EU Goods Distance Sale: Sale of goods between EU countries in which the supplier is registered in an EU country and the purchaser is not registered in an EU country. The VAT rate that is charged is the rate that is applicable in the supplier's country. EU Goods Sale: Sale of goods between VAT registered traders in different EU countries. EU Sale (Simplification): Used for a transaction between an intermediary and the purchaser in cases when there is a sale of goods between EU countries involving three parties: the purchaser, an intermediary (bill from) supplier, and the actual goods supplier. Each party is located in a different EU country and registered in his own country, and not in either of the other two countries. The only difference between this VAT treatment and that which is applied to normal EU sales is that the supplier is required to print a different message on the invoice referencing the statute that applies to triangulation, rather than the one that references the statute for normal EU sales. No VAT Processing: No VAT processing required. Out of Scope EU Service Sale: EU services outside of the scope of VAT. Outside of Scope Service Export: Export services outside of the scope of VAT. Outside of Scope: Outside of the scope of VAT. Zero-rated EU Service Sale: Sale of services within the EU subject to zero-rated VAT. Zero-rated Goods Export: Export of goods that are subject to zero-rated VAT. Zero-rated Services Export: Export of services that are subject to zero-rated VAT. Within PeopleSoft detail VAT treatment values that are on the transaction lines are used for applying the precise defaults that are applicable to the transaction lines. The treatment is determined based on the rules that are applicable to the transaction.
Adjust/Reset VAT Defaults	Any changes you make to fields on this page may affect VAT defaults on this page. Adjusting or resetting VAT defaults will only affect fields within the VAT Defaults group box.
Adjust Affected VAT Defaults	Click this button to have the system adjust the VAT defaults that are affected by your changes. All changes you have made to VAT Defaults on this page that affect other VAT Defaults on this page will be retained. PeopleSoft recommends that you always click the Adjust Affected VAT Defaults button after changing any defaults on the VAT page. Since values that appear lower down on the page can be dependent on values that appear higher up on the page, you should work from top to bottom and click the Adjust Affected VAT Defaults button in the Adjust/Reset VAT Defaults collapsible region as needed. This avoids updating values that you have already overridden. Click the i button to list the fields that are to be adjusted.
Levels	Before you click the Reset All VAT Defaults button, select the levels to which you want the action to apply: All lower levels: Select this field value to reset all VAT defaults at lower levels for this page. From the sales order header, selecting this value will reset all VAT defaults on all the sales order lines and all the sales order schedule lines. From the sales order line, selecting this value will reset all VAT defaults on all of the schedule lines associated with the current sales order line. This and all lower levels: Select this field value to reset all VAT defaults that are on this VAT page and at any lower levels of this page. From the sales order header, selecting this value will reset all VAT defaults on the header plus all the sales order lines and all the sales order schedule lines. From the sales order line, selecting this value will reset all VAT defaults on the sales order line plus all of the schedule lines associated with the current sales order line. This level only: Select this field value to reset all VAT defaults that are on this VAT page.
Reset All VAT Defaults	Click to reset any fields that you may have overridden on this page (including those that you changed by clicking the Adjust Affected VAT Defaults button) back to the original defaults before you save the page. Depending on your selection in the Levels field, the VAT default values will be reset for the sales order header, the sales order line, the sales order schedule line, or all three. Note. Reset completely redetermines the VAT defaults. If you have changed a VAT driver field, resetting VAT defaults does not necessarily return the original default values. Rather, it resets all of the default values based on the new driver value.

Modifying VAT Line Data

Access the Line VAT Information page.

Many of the fields that are on this page are the same as those that appear on the Header VAT Information page.

See Modifying Header VAT Data.

The table below displays the required setting for the fields that are in the VAT Details section:

If Applicability Equals	You Must
Taxable, Suspended or Exonerated.	Have a VAT Code and Transaction type. For Suspended or Exonerated lines, the VAT Code should be a zero-rate VAT Code.
Exempt or Out of Scope.	Leave VAT Code blank but have a Transaction type.
N/A (VAT Applicability can equal N/A only on non-VAT lines).	Leave VAT Code and Transaction type blank.

VAT Details

Applicability	Displays the VAT status. Valid options are:Taxable, Exempt (not subject to VAT) Exonerated, NA, (not applicable) Outside, Suspend, Taxable. (VAT Only is not valid in Order Management).
VAT Code	Displays the VAT code that defines the rate at which VAT is calculated.
VAT Transaction Type	Displays the code that categorizes and classifies this transaction for VAT reporting and accounting.

Modifying VAT Schedule Data

Access the Schedule VAT Information page.

Many of the fields on this page are the same as those that appear on the Header VAT Information and Line VAT Information page.

See Modifying Header VAT Data.

See Modifying VAT Line Data.

Physical Nature

Physical Nature

The field is unavailable for entry on the schedule.

Reviewing and Updating VAT Calculations

Use this group box to review the VAT calculations for the line.

Note. At sales order entry, VAT amounts are estimates and are recalculated at the time of invoicing.

Transaction Amount	Displays the amount of the transaction in the transaction currency for the sales order line amount.
Transaction Amount Base	Displays the amount of the transaction in the base currency.
Basis Amount	Displays the amount on which the VAT is calculated. If you are calculating VAT at Net, this is the transaction amount net of any discounts in the transaction currency
Basis Amount Base	Displays the amount on which the VAT is calculated in base currency. If you are calculating VAT at Net, this is the transaction amount net of any discounts in the base currency.
Tax Rate	Displays the applicable VAT percentage.
Recorded Amount	Displays calculated VAT amount in the transaction currency.
Recorded Amount Base	Displays calculated VAT amount in the base currency.
Recalculate	Click to recalculate VAT for the schedule.