Viewing VAT Details Concept Viewing VAT Details Viewing

Viewing VAT Details Concept

Viewing VAT Details

Viewing VAT Details Step 1 Begin by navigating to the Purchase Order page. Click the Purchasing menu.

Viewing VAT Details Step 2 Click the Purchase Orders menu.

Viewing VAT Details Step 3 Click the Add/Update POs menu.

Viewing VAT Details Step 4 Click the Find an Existing Value tab.

Viewing VAT Details Step 5 Enter the desired information into the Business Unit field. Enter "BLG 01".

Viewing VAT Details Step 6 Click in the PO ID field.

Viewing VAT Details Step 7 Enter the desired information into the PO ID field. Enter "PO 002".

Viewing VAT Details Step 8 Click the Search button.

Viewing VAT Details Step 9 Use the Purchase Order page to enter or change PO information online.

Viewing VAT Details Step 10 Click the horizontal scrollbar.

Viewing VAT Details Step 11 Click the Schedule button.

Viewing VAT Details Step 12 Click the VAT button.

Viewing VAT Details Step 13 Use the VAT Information for Schedule 1 page to review and update VAT details for this schedule. This page is accessible only if the General Ledger business unit on the Purchasing business unit links to a valid VAT entity.

Viewing VAT Details Step 14 To manage the VAT data more efficiently, you can expand collapse sections on this page, enabling you to manage the information more easily. Click the Expand All Sections button to scroll to and access every section on the page. You can also expand one or more sections by clicking the arrow next to the section's name. Click the Expand All Sections button.

Viewing VAT Details Step 15 The Physical Nature value indicates whether an object is a good or a service. Many countries are required to report the sale and purchase of goods separately from services. The default comes from the customer location, customer, or receivables business unit.

Viewing VAT Details Step 16 The Ship From Country field displays the supplier's ship from location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Viewing VAT Details Step 17 If the ship from country is defined as tracking VAT by state or province, the system displays the supplier's ship from location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Viewing VAT Details Step 18 The Ship to Country field displays the ship to location country. In the case of transactions involving goods or freight service transactions, this determines the VAT treatment.

Viewing VAT Details Step 19 If the ship to country is defined as tracking VAT by state or province, the system displays the ship to location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Viewing VAT Details Step 20 The Reporting Country field displays the country for which this VAT will be reported. This is the VAT entity VAT registration country and determines many of the VAT defaults.

Viewing VAT Details Step 21 If the reporting country requires that VAT be tracked by state or province, the Defaulting State field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table.

Viewing VAT Details Step 22 The Supplier Registration Country and Supplier Registration ID fields display the registration country and ID of the supplier.

Viewing VAT Details Step 23 The Exception Type field displays the exception granted to the VAT entity. Values are None, Exonerated, and Suspended. This value is specified on the VAT entity registration.

Viewing VAT Details Step 24 If applicable, the Certificate ID field displays the ID of the VAT exception certificate that may have been issued to the VAT entity.

Viewing VAT Details Step 25 Click the vertical scrollbar.

Viewing VAT Details Step 26 The Calculate at Gross or Net value indicates how VAT is calculated. Values 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 two percentage discounts exist, 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.

Viewing VAT Details Step 27 Select the Recalculate at Payment option 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 has been taken. This is set on the VAT entity driver in the VAT defaults table.

Viewing VAT Details Step 28 Declaration Point values appear for a good or service when you want VAT transaction information to be recognized for reporting purposes. Values 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 several levels in the VAT hierarchy, that is, VAT entity registration, business unit options, vendor, or vendor location.

Viewing VAT Details Step 29 The Rounding Rule list displays the VAT rounding rule. The value comes from the VAT country, VAT Entity, supplier, or supplier location drivers. Values are: • Nat Rnd (natural round): Amounts are rounded normally (up or down) to the precision specified for the currency code. For example, for a currency defined with two decimal places, 157. 4659 would round up to 157. 47 but 157. 4649 would round down to 157. 46. • Down (round down): Amounts are rounded down. For example, for a currency defined with two decimal places, 157. 4699 would round down to 157. 46. • Up (round up): Amounts are rounded up with a rounding precision to one additional decimal place. For example, for a currency defined with 2 decimal places, 157. 4659 would round up to 157. 47, but 157. 4609 would round down

Viewing VAT Details Step 30 The Use Type value determines the split between recoverable (taxable) and nonrecoverable (nontaxable) VAT. For the Canadian public sector, the use type also determines the rebate of the nonrecoverable VAT rebates are calculated based on statutory rebate rates that are established for each public service body. The value comes from the VAT defaulting hierarchy, either from the item, item business unit, item category, vendor location, vendor, or purchasing options.

Viewing VAT Details Step 31 If Include Freight is selected, the system includes any freight amounts in the VAT basis by calculating VAT on the merchandise amount plus any freight amount. This option is available only for exclusive VAT calculation. The value comes from the VAT entity registration driver.

Viewing VAT Details Step 32 If Include Miscellaneous is selected, the system includes any miscellaneous charge amounts in the VAT basis by calculating VAT on the merchandise amount, plus any miscellaneous charge amount. This option is available only for exclusive VAT calculation. The value comes from the VAT entity registration driver.

Viewing VAT Details Step 33 The Treatment list displays the VAT treatment is determined by a complex set of algorithms. Values are: • Domestic Goods Purchase: If the ship from and ship to countries are the same, and the vendor is registered for VAT, the transaction is treated as domestic. • Domestic Service Purchase: If the buyer and seller are both located in the country where the VAT is liable, the transaction is treated as domestic. • EU Goods Purchase: If the ship from and ship to countries are different, the system determines whether both countries are located within the European Union. If so, the system looks at the VAT registration for each trading partner to determine whether the transaction should be treated as an intra -EU purchase, domestic, or outside the scope of VAT.

Viewing VAT Details Step 34 Values are: • Self-Assess Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the European Union, and the vendor is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT Country table for the VAT reporting country indicates that VAT on imports should be self-assessed, the transaction will be treated as a self-assess goods import, and both input and output VAT will be recorded. • Self-Assess Service Import: If each trading partner is located and registered in different countries, and the VAT on a service is liable in the buyer's country, the transaction is treated as a selfassessed services import.

Viewing VAT Details Step 35 Values are: • Zero-rated Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the European Union, and the vendor is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT Country table for the VAT reporting country indicates that only input VAT should be recorded on imports, the transaction will be treated as a zerorated goods import.

Viewing VAT Details Step 36 Values are: • Outside of Scope: If the supplier is not registered for VAT, or if the VAT is liable in a country other than the VAT reporting country, the transaction is treated as outside the scope of VAT. • No VAT Processing: For transactions in which the physical nature is goods, if the ship to country has not been defined as a VAT country and the VAT reporting country on the transaction is blank, no VAT information will be recorded. Within People. Soft, detail VAT treatment values on the transaction lines are used for applying the precise defaults applicable to the transaction lines. The treatment is determined based on the rules applicable to the transaction.

Viewing VAT Details Step 37 The Applicability list displays the VAT status. Applicability is determined by an algorithm that makes use of the Applicable field in the VAT defaults table, the value of which may be set at almost every level in the People. Soft Purchasing VAT defaulting hierarchy. Values are: • Exempt (not subject to VAT). • Exonerated. • N/A (not applicable): Valid only when VAT treatment is No VAT Processing. • Outside (outside scope of VAT). • Suspend. • Taxable.

Viewing VAT Details Step 38 The VAT Code field displays the VAT code that defines the rate at which VAT is calculated for this schedule. The default value comes from the VAT country, purchase order options, vendor location, item category, and item levels in the People. Soft Purchasing VAT defaulting hierarchy.

Viewing VAT Details Step 39 Select the Record Output VAT option to enter vouchers for which VAT is not included on the invoice but is payable to the VAT authority rather than the supplier. In this case, you account for both input and output VAT for the purchase. This is the case for an Intra. EU Acquisition or when you must account for output VAT on a service supplied by a foreign supplier. This is also referred to as self-assessing for VAT. The value comes from an algorithm that uses the treatment and applicability to retrieve the applicable value from the People. Soft-delivered VAT system setup data.

Viewing VAT Details Step 40 The Transaction Type field displays the code that categorizes and classifies this transaction for VAT reporting and accounting. The default value comes from the VAT entity registration, purchase order options, supplier location, item category, and item levels in the People. Soft Purchasing VAT defaulting hierarchy.

Viewing VAT Details Step 41 Any changes that you make to fields on this page may affect VAT defaults on this page. For accuracy and consistency, use these buttons to adjust affected VAT defaults or to reset all VAT defaults. Adjusting or resetting VAT defaults affects only fields within the Adjust/Reset VAT Defaults group box.

Viewing VAT Details Step 42 Click the Adjust Affected VAT Defaults button to have the system adjust the VAT defaults that are affected by the changes. All changes that you have made to VAT defaults on this page that affect other VAT defaults on this page will be retained.

Viewing VAT Details Step 43 Click the i button to list the fields that are to be adjusted.

Viewing VAT Details Step 44 Levels enables you to specify the levels to reset when you click the Reset All VAT Defaults button. Values are: • All lower levels: Resets all VAT defaults at lower levels for this page. • This and all lower levels: Resets all VAT defaults on this page and at any lower levels of this page. • This level only: Resets all VAT defaults on this page.

Viewing VAT Details Step 45 Click the Reset All VAT Defaults button to have the system reset the VAT defaults based on the Levels value that you selected. Any changes that you previously made to VAT defaults will be lost. Reset completely redetermines the VAT defaults. This does not necessarily mean that they are reset to their original values. For example, the user may not have changed any VAT default values, but if a VAT driver field changes, you can click Reset All VAT Defaults to redetermine all defaults based on the new driver value.

Viewing VAT Details Step 46 Click the vertical scrollbar.

Viewing VAT Details Step 47 Click the Return to Schedules Page link.

Viewing VAT Details Step 48 Click the horizontal scrollbar.

Viewing VAT Details Step 49 Click the Distributions/Chart. Fields button.

Viewing VAT Details Step 50 You also can view VAT information from the Distributions for Schedule 1 page.

Viewing VAT Details Step 51 Click the Details/Tax tab.

Viewing VAT Details Step 52 Click the VAT button.

Viewing VAT Details Step 53 Use the VAT Details for Distribution 1 page to view more details. Most of the information on this page is view-only.

Viewing VAT Details Step 54 You can update the Apportionment Control, which designates the business unit that you want to use to retrieve VAT apportionment information for the distribution line. This value appears by default from the Purchasing business unit VAT driver in the VAT defaults table. Valid values are: • Dist GL BU (distribution general ledger business unit). • TXN BU (transaction business unit). • TXN GL BU (transaction general ledger business unit).

Viewing VAT Details Step 55 You also can update the VAT transaction type for the distribution line. The Transaction Type field displays the code that categorizes and classifies this transaction for VAT reporting and accounting. The value is copied from the schedule line, but you can override the default.

Viewing VAT Details Step 56 Additional amount information is displayed on this page in the VAT Calculations section.

Viewing VAT Details Step 57 Click the Return To Distribution Page link.

Viewing VAT Details Step 58 Click the OK button.

Viewing VAT Details Step 59 You have successfully viewed VAT details on a purchase order. End of Procedure.