| JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide Release 9.1 Part Number E15153-03 |
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PDF · Mobi · ePub |
| JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide Release 9.1 Part Number E15153-03 |
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PDF · Mobi · ePub |
This chapter contains the following topics:
Note:
Additional country-specific setup for tax processing exists for many countries.See Also:
Enter a code that identifies a specific organization, fund, or other reporting entity. The company code must already exist in the F0010 table and must identify a reporting entity that has a complete balance sheet. At this level, you can have intercompany transactions.
Note:
You can use company 00000 for default values such as dates and automatic accounting instructions. You cannot use company 00000 for transaction entries.Enter a code that identifies a tax or geographic area that has common tax rates and tax authorities. The system validates the code you enter against the F4008 table. The system uses the tax rate/area in conjunction with the tax explanation code and tax rules to calculate tax and GL distribution amounts when you create an invoice or voucher.
Enter the date when a transaction, contract, obligation, preference, or policy rule becomes effective.
Enter the date when a transaction, contract, obligation, preference, or policy rule ceases to be in effect.
Enter a number that the system assigns to an item. It can be in short, long, or third item number format.
The number of the item or item grouping to which the tax applies.
Values for item groupings are 3 through 8. If you specify a value for an item grouping, you must ensure that the processing option to validate item numbers, which appears on the Edit tab, is set to 0 (off). If this processing option is not set correctly, the system attempts to validate the item grouping number as an actual item number.
Enter a user-defined code (00/DT) that identifies the origin and purpose of the transaction. The system reserves several prefixes for document types, such as vouchers, invoices, receipts, and time sheets.
Tax authorities are government agencies that assess and collect taxes. For tracking and reporting purposes, the organization must set up an address book record for each tax authority to which it remits taxes. If you want, you can set up a user-defined code for a new search type, such as TAX, in UDC (01/ST) that you can assign to tax authority address book records to differentiate them from other address book records.
Note:
Ensure that the self-service processing option is not activated for the Address Book program (P01012) using the Tax Authorities option on the Tax Processing and Reporting menu (G0021); otherwise, you cannot add new tax authorities (address book records).Many fields throughout JD Edwards EnterpriseOne software accept only user-defined codes. You can customize the system by setting up user-defined codes that meet the specific needs of the business environment.
Note:
The setup for many countries for which JD Edwards EnterpriseOne software processes taxes requires that you enter values for country-specific UDCs. Refer to the JD Edwards EnterpriseOne Localizations implementation guide for each country for information about country-specific UDC tables.To validate tax identification numbers that you set up in the JD Edwards EnterpriseOne Address Book system according to the country in which it is used, you must set up the country codes in UDC 70/TI.
This table displays examples of country codes set up in UDC 70/TI:
| Codes | Description 01 | Description 02 | Special Handling |
|---|---|---|---|
| . | Default Country | US | 1 |
| AU | Austria | AU | 1 |
| AUS | Austria | AU | 1 |
| BE | Belgium | BE | 1 |
| BEL | Belgium | BE | 1 |
| DE | Germany | DE | 1 |
| DEU | Germany | DE | 1 |
To activate tax ID validation for a specific country code, enter 1 in the Special Handling field for that country code. To disable tax ID validation for a specific country code, remove the 1 from the Special Handling field.
To activate tax ID validation for a country code that is not listed in UDC table (70/TI) or to change the meaning of an existing country code, complete the fields as:
Enter the country code in the Codes field.
The country code must also be set up in the Country Codes (00/CN) UDC table.
Enter the standard two-digit ISO code for that country in the Description 02 field.
The two-digit ISO code is required in the Description 02 field to cross-reference the new country code with the country code that is hard-coded in the system.
For example, if you use DE for Denmark, enter DN (the two-digit ISO code for Denmark) in the Description 02 field for the DE country code. The system then validates tax IDs that are entered with the country code DE according to Danish, not German, specifications.
Enter 1 in the Special Handling field.
To activate tax ID validation for the default (blank) country code, complete the fields as described, but leave the Codes field blank.
For example, if you use a blank country code to mean Denmark, enter DN (the two (2) digit ISO code for Denmark) in the Description 02 field for the blank country code.
This section provides an overview of tax rules and discusses how to set up tax rules by company.
You set up tax rules so that the system can calculate any applicable taxes when you enter transactions with taxes. Use the Tax Rules (P0022) program to define tax rules differently by company and by system. The system uses these rules to:
Establish tolerance limits on changes that you make to the tax amount when you use VAT tax explanation codes (V, C, and B).
Display a warning message (or reject a transaction) whenever you enter a tax amount that differs from the system-calculated tax.
Determine whether transaction amounts should be calculated on the gross amount or the gross amount less the discount amount.
Determine whether discount amounts should be calculated on the gross amount (including tax) or the net amount (excluding tax).
Determine whether taxes are calculated for sales orders at the order or detail level.
Allow taxes to be understated.
Note:
If you do not set up rules for a specific company, the system uses the rules that you define for company 00000. If you do not set up rules for company 00000, the system uses only these default rules:Tolerance limits are set to zero.
The system calculates tax on gross including discount.
When you set up tax rules for the JD Edwards EnterpriseOne Accounts Payable system, you also set up rules for the JD Edwards EnterpriseOne Procurement system. When you set up tax rules for the JD Edwards EnterpriseOne Accounts Receivable system, you also set up rules for the JD Edwards EnterpriseOne Sales Order Management system.
The tax rules that you set up for the system consist of tolerance ranges and calculation rules. Not all of the tax rules apply to all systems.
Tolerance rules specify the amount of variance that can exist between the amount of tax that you enter for a transaction and the tax amount that the system calculates. When you enter a tax amount that differs from the system-calculated tax amount, the system automatically issues a warning message for all tax types except VAT.
For VAT taxes, the system uses the tolerance rules that you set up to determine when to issue a warning or error message. The system does not issue a warning message until the difference between the tax amount that you enter and the tax amount that they system calculates exceeds the tolerance limit established for a warning. By setting up tolerance information, you control the type of message that the system issues.
Tolerance rules:
Apply to both understated and overstated amounts.
Apply only to VAT taxes and can be defined as either a percentage or amount.
For accounts receivable, the tolerance rules that you define do not apply to VAT taxes unless you also activate the option to understate taxes.
For example, you might specify a tax rule with a tolerance range by amounts as:
Tolerance amount for warning is 2.
Tolerance amount for error is 10.
To determine the tax amount, the system multiplies the taxable amount by the tax rate. If the taxable amount for a transaction is 1000 and the tax rate is 10 percent, the system calculates a tax amount of 100. Based on the tolerance range, the system determines the range for warning or error as:
| Tolerance Range | Calculation |
|---|---|
| Range for warning | Tolerance amount for warning is 2:
The system issues a warning message if the tax amount that you enter is greater than 102 or less than 98 (that is, outside of the tolerance range of 98 to 102). Note: If you enter a tax amount of 98.01 or 101.99, the system does not issue a warning message. The amount is within the acceptable tolerance range. |
| Range for error | Tolerance amount for error is 10:
The system issues an error message if the tax amount that you enter is greater than 110 or less than 90 (that is, outside of the tolerance range of 90 to 110). Note: If you enter a tax amount of 109.99 or 90.01, the system does not issue an error message. |
When you enter transactions with discounts and taxes, you must specify how you want the system to calculate the discount and tax amounts. Calculation rules specify which method to use for calculating discount and tax amounts when both are specified. The rules control how the system validates the correct tax amount, based on the total amount transaction.
Calculation rules are not displayed if you select the JD Edwards EnterpriseOne General Accounting system.
The system calculates gross and discount amounts using the tax rules that you set up. Each of these examples uses a different combination of rules to calculate:
Tax on gross including or excluding the discount amount
Discount on gross including or excluding the tax amount
The examples use these amounts:
Taxable amount: 1,000
Gross amount: Varies
Tax rate: 10 percent
Tax amount: 100
Discount: 1 percent
This table displays how the system calculates the discount, gross, and taxable amounts when the options Calculate Tax on Gross (Including Discount) and Calculate Discount on Gross (Including Tax) are activated.
| Formula | Calculation |
|---|---|
| Discount Formula | (Taxable Amount + Tax Amount) x Discount Percent = Discount Available
(1,000 + 100) x.01 = 11.00 |
| Gross Formula | Taxable Amount + Tax Amount = Gross Amount
1,000 + 100 = 1,100 |
| Taxable Formula | Gross Amount / (1 + Tax Rate) = Taxable Amount
1,100 / 1.1 = 1,000 |
This table displays how the system calculates the discount, gross, and taxable amounts when the options Calculate Tax on Gross (Including Discount) and Calculate Discount on Gross (Excluding Tax) are activated.
| Formula | Calculation |
|---|---|
| Discount Formula | Taxable Amount x Discount Percent = Discount Available
1,000 x.01 = 10.00 |
| Gross Formula | Taxable Amount + Tax Amount = Gross Amount
1,000 + 100 = 1,100 |
| Taxable Formula | Gross Amount / (1 + Tax Rate) = Taxable Amount
1,100 / 1.1 = 1,000 |
This table displays how the system calculates the discount, gross, and taxable amounts when the options Calculate Tax on Gross (Excluding Discount) and Calculate Discount on Gross (Including Tax) are activated.
| Formula | Calculation |
|---|---|
| Discount Formula | (Tax Amount / [(1 - Discount Percent) x Tax Rate)] + Tax Amount) x Discount Percent = Discount Available
(100 / [(1 -.01) x.1] + 100) x.01 = 11.10 |
| Gross Formula | Taxable Amount + Tax Amount + Discount Amount = Gross Amount
1,000 + 100 + 11.10 = 1,111.10 |
| Taxable Formula | Gross Amount - Tax Amount - Discount Amount = Taxable Amount
1,111.10 - 100 - 11.10 = 1,000 |
This table displays how the system calculates the discount, gross, and taxable amounts when the options Calculate Tax on Gross (Excluding Discount) and Calculate Discount on Gross (Excluding Tax) are activated.
| Formula | Calculation |
|---|---|
| Discount Formula | (Taxable Amount x Discount Percent) / (1 - Discount Percent) = Discount Available
(1,000 x.01) / (1 -.01) = 10.10 |
| Gross Formula | Taxable Amount + Tax Amount + Discount Amount = Gross Amount
1,000 + 100 + 10.10 = 1,110.10 |
| Taxable Formula | Gross Amount - Tax Amount - Discount Amount = Taxable Amount
1,110.10 - 100 - 10.10 = 1,000 |
In Great Britain, you must set the options for the calculation rules as:
Tax on Gross (Including Discount) - Off
Discount on Gross (Including Tax) - Off
The system calculates the discount and gross amounts as:
| Formula | Calculation |
|---|---|
| Discount Formula | (Taxable Amount x Discount Rate Percent) / ((1 - Discount Rate Percent) x Tax Rate)
(1,000 x.01) / ((1 -.01) x.10) = 10.10 |
| Gross Formula | Taxable Amount + Tax + Discount
1,000 + 100 + 10.10 = 1,110.10 |
In Germany, you must set the options for the calculation rules as:
Tax on Gross (Including Discount) - On
Discount on Gross (Including Tax) - On
The system calculates the discount and gross amounts as:
| Formula | Calculation |
|---|---|
| Discount Formula | (Taxable Amount + Tax Amount) x (Discount Rate Percent) = Discount Available
(1,000 + 100) x.01 = 11.00 |
| Gross Formula | Taxable Amount + Tax = 1,000 + 100 = 1,100 |
You have only the option to understate tax amounts when you select the JD Edwards EnterpriseOne Accounts Receivable system.
The edit rules activate the tolerance rules for VAT for the JD Edwards EnterpriseOne Accounts Receivable system only. If you do not allow taxes to be understated, the tolerance rules that you set up apply to sales taxes only.
| Form Name | FormID | Navigation | Usage |
|---|---|---|---|
| Work With Tax Rules | W0022A | Tax Processing and Reporting (G00218), Tax Rules | Review and select tax rules by company. |
| Tax Rules Revisions | W0022B | Click Add on the Work With Tax Rules form. | Set up tax rules. |
Access the Tax Rules Revisions form.
Enter the company for which you define the tax rules. If you do not define rules for a specific company, the system uses the rules that you define for company 00000.
Enter a number that specifies the maximum percent of change that you can make to the tax amount on an invoice, voucher, or journal entry before the system issues a warning message. For example, if you specify 5.00, the system allows you to change the tax amount for a transaction by up to 5 percent without issuing a warning message. The system issues a warning message for changes to the tax amount when the percent of the change is between the percent specified in the Warning field and the percent specified in the Error field.
This system uses the tolerance limits only for tax explanation codes V, B, and C. For all other tax explanation codes, the system issues a warning regardless of the change.
You must select the option Allow Understatement of Tax Amt before the system allows you to understate the tax amounts on AR invoices by up to the percent specified.
Enter the percent as a whole number. For example, to specify 5 percent, enter 5.00 instead of .05.
(COL) Enter 1 for Colombian companies.
Enter a number that specifies the maximum percent of change that you can make to the tax amount on an invoice, voucher, or journal entry before the system issues an error message. For example, if you specify 10.00, the system allows you to change the tax amount for a transaction by up to 10 percent. If the percent of the change exceeds the tolerance limit that you specified, the system does not allow the change. The system issues a warning message for changes to the tax amount when the percent of the change is between the percent specified in the Warning field and the percent specified in the Error field.
The system uses the tolerance limits only for tax explanation codes V, B, and C. For all other tax explanation codes, the system issues a warning regardless of the change.
You must select the option Allow Understatement of Tax Amt before the system allows you to understate the tax amounts on AR invoices up to the percent specified.
Enter the percent as a whole number. For example, to specify 10 percent, enter 10.00 instead of .1.
(COL) Enter 0 for Colombian companies.
Specify whether the tolerance that you use to generate warning or error messages is based on a percent or an amount.
Specify whether the tolerance that you use to generate warning or error messages is based on a percent or an amount.
Select this option to calculate the tax amount based on the gross amount, including the discount.
(COL) Select the Tax on Gross Including Discount option.
Select this option to specify whether the system calculates the discount based on the gross amount, including the tax amount.
Select this option to specify whether the system calculates taxes and performs rounding for sales orders at the detail level or the order level.
The system calculates taxes at the detail level. The system calculates the tax on each detail line item, and then sums the detail line items for the order.
The system displays this field only when you select the option for AR.
Select this option to specify whether you can override the tax amount on an AR invoice to be less than the system-calculated tax amount. The system displays this field only when you select the option for AR. This option applies to tax explanation codes V and B only, and the amount of the understatement must be within the defined tolerance limits.
The system does not allow you to understate the tax amount. The system generates an error.
Note:
If you use tax explanation code S, the system allows you to understate the tax amount if it is within the defined tolerance limits, regardless of the setting of this option.This section provides overviews of setting up AAIs for taxes, including financial AAIs and distribution AAIs.
If you are required to collect or pay taxes, you must set up the system so that the tax amounts are applied to the correct general ledger accounts. The system applies tax amounts automatically to the account that you specify in an Automatic Accounting Instruction (AAI).
When you set up AAIs for a specific type of tax, such as VAT, specify which accounts you want the system to debit and credit for the tax amount. If you pay taxes in multiple currencies, you need to set up tax AAIs for each company.
The financial systems within JD Edwards EnterpriseOne software (JD Edwards EnterpriseOne Accounts Payable, JD Edwards EnterpriseOne Accounts Receivable, and JD Edwards EnterpriseOne General Accounting) use different AAIs than the distribution systems within JD Edwards EnterpriseOne software (JD Edwards EnterpriseOne Sales Order Management and JD Edwards EnterpriseOne Procurement).
You can enter taxes on invoices, vouchers, journal entries, purchase orders, and sales orders. If you enter VAT or Use taxes, you must set up an AAI to debit or credit the appropriate tax account for each of these systems:
JD Edwards EnterpriseOne Accounts Payable
JD Edwards EnterpriseOne Accounts Receivable
JD Edwards EnterpriseOne General Accounting
JD Edwards EnterpriseOne Procurement
JD Edwards EnterpriseOne Sales Order Management
You use the Automatic Accounting Instructions (P0012) program to set up AAIs.
Country-specific setup for AAIs for taxes exists for Argentina, Brazil, Chile, Peru, and Russia.
You can set up the AAI for each company or for company 00000 only. If you do not set up company-specific AAIs, the system uses the AAI that is set up for company 00000. If you do not use a GL offset, the system uses the account associated with the AAI item (PT, RT, GT) only.
If a tax rate area has a GL offset specified, you must set up an AAI with the same GL offset. If the system does not find the PTxxxx, RTxxxx, or GTxxxx, where xxxx is the GL offset specified in the tax rate area, the system returns an error message when you attempt to process the transactions.
You must specify a business unit and object account when you set up tax AAIs for the JD Edwards EnterpriseOne Accounts Payable and JD Edwards EnterpriseOne Accounts Receivable systems. The subsidiary field is optional. For the JD Edwards EnterpriseOne General Accounting system, if you do not specify a business unit for the tax AAI, the system uses the business unit from the account entered on the journal entry.
This table displays the hierarchy that the system uses to determine the account to which tax amounts are posted.
| Hierarchy | Company | JD Edwards EnterpriseOne Accounts Payable | JD Edwards EnterpriseOne Accounts Receivable | JD Edwards EnterpriseOne General Accounting |
|---|---|---|---|---|
| 1 | Company specific | PT + GL Offset | RT + GL Offset | GT + GL Offset |
| 2 | Company 00000 | PT + GL Offset | RT + GL Offset | GT + GL Offset |
When you post a transaction that has VAT taxes, the system uses an AAI to locate the general ledger account to use to post the tax amount. Because you might require different accounts for different tax authorities, you can specify a GL offset value for each tax authority that you set up in the tax rate/area, and then set up a corresponding AAI that includes that value. The GL offset can be up to four characters in length and it follows the AAI item. Examples are PTVATA, RTVATB, and GTTXTX. Specifying a value in the GL Offset field enables you to direct VAT tax amounts to different accounts by offset (or tax authority) for each company and differentiates VAT tax accounts from use tax accounts in the JD Edwards EnterpriseOne Accounts Payable system.
Note:
The system uses the GTxxxx AAIs when the journal entry with VAT transaction is entered, not when it is posted.The JD Edwards EnterpriseOne Procurement system uses the same AAI item as the JD Edwards EnterpriseOne Accounts Payable system (PT), except when you have a purchase order with retainage and you defer VAT. In this case, when you match the voucher to the receipt using the Voucher Match program (P4314), the system uses the AAI item PTVATD to locate the account for the deferred VAT. The system uses this AAI only when:
The processing option (Retainage tab) for the Voucher Match program (P4314) is set to apply tax to the retained amount.
You use a tax type of C or V.
When you release retainage, this AAI reverses debits and credits with the VAT Payables (PCVATP) AAI.
If you do not set up this AAI, the system returns an error.
Use taxes (tax explanation code U and B) do not use a GL offset to specify a tax account; the system always uses PT (blank). You can set up the AAI for each company or for company 00000 only. If you do not set up company-specific AAIs, the system uses the AAI set up for company 00000.
Unlike VAT taxes, you can specify use tax accounts by tax rate/area. Instead of using multiple AAIs to specify different tax accounts, you set up different tax accounts for each tax rate/area by defining the subsidiary portion of the account as the tax rate/area. For example, if the tax account were 1.4433 and the tax rate/area were ONT (for Ontario), you would set up 1.4433.ONT in the F0901 table. Thus, you would have a unique account number for each tax rate/area.
When you set up the AAI for PT, you do not specify a subsidiary account; you specify the business unit and object account only. The system ignores the subsidiary account if one exists. When you post the voucher, the system looks for the account number specified in the AAI in conjunction with the tax rate/area specified on the voucher. If the account number exists, the system uses it. If the account number, including the tax rate/area, does not exist, the system uses the account number. For example, if you set up PT for 1.4433 and enter tax rate/area DEN on the voucher, the system searches for 1.4433.DEN. If the system cannot locate this account number, it uses 1.4433.
Transactions in the JD Edwards EnterpriseOne Sales Order Management and JD Edwards EnterpriseOne Procurement systems use both distribution and financial AAIs. The distribution AAIs are set up in multiple tables, each of which applies to a certain type of transaction. Not all transactions with taxes use the distribution AAIs. you use the Distribution AAIs (P40950) program to set up AAIs for the distribution systems.
This table displays the distribution AAI tables that you must set up to enter purchase orders and sales orders with taxes for the specified tax explanation code. Any other tax explanation codes that you enter on the order revert to the financial AAIs (RT, PT, GT).
| System | AAI Table | Description | Tax Explanation Code | Transaction Type |
|---|---|---|---|---|
| JD Edwards EnterpriseOne Sales Order Management | 4250 | Tax liability | S | . |
| JD Edwards EnterpriseOne Procurement | 4350 | Purchase tax accrual | S | 3-Way Match (Inventory) |
| JD Edwards EnterpriseOne Procurement | 4350 | Purchase tax accrual | U | 3-Way Match (Inventory) |
| JD Edwards EnterpriseOne Procurement | 4355 | Received not vouchered tax | S | 3-Way Match (Inventory)
3-Way Match (Non- Inventory) |
| JD Edwards EnterpriseOne Procurement | 4355 | Received not vouchered tax | U | 3-Way Match (Inventory)
3-Way Match (Non- Inventory) |
Note:
The system also uses the distribution AAIs for tax explanation codes B and C for the sales and use portion of the tax amount.Each AAI table enables you to set up different general ledger accounts based on the company, document type, and GL category code (offset) that you enter. You enter the same value in the GL Cat field (data item GLPT) for the AAI that you have set up in the GL Offset field in the tax rate/areas. For example, if you had a tax rate/area set up for CO that includes a GL offset TXTX, and you had another tax rate/area ONT that includes a GL offset TXTY, you would set up two distribution AAIs. This example illustrates how the distribution AAIs correlate to the tax rate/area.
This table describes the Tax Rate Area, GL Offset, and Tax Rate.
| Tax Rate Area | GL Offset | Tax Rate |
|---|---|---|
| CO | TXTX | 7.3 |
| ONT | TXTY | 5.0 |
This table describes the Distribution AAI Set Up for AAI Table 4250.
| Company | Document Type | GL Cat | Branch/Plant | Object | Subsidiary |
|---|---|---|---|---|---|
| 00001 | SD | TXTX | 1 | 4551 | . |
| 00001 | SD | TXTY | 1 | 4552 | . |
| 00002 | SO | TXTX | 1 | 4553 | . |
| 00002 | SO | TXTY | 1 | 4554 | . |
Note:
You can define a flexible account number for the AAI table 4250. The system searches for the account number in the F4096 based on the AAI table. If the AAI table is not defined to use flexible accounts, the system uses the account number that is set up in the 4095.This section provides overviews of tax rate areas and nonrecoverable VAT, lists prerequisites, and discusses how to:
Set processing options for Tax Rate/Areas (P4008).
Set up tax rate/areas.
To calculate and track the different taxes that you pay to suppliers or for customers, you must set up tax rate areas. Each tax area is a physical, geographic area, such as a state, province, or county. Different tax authorities assess a variety of taxes for each geographic area. Additionally, each authority within a tax area can have a different tax rate.
When you set up tax rate areas, you must specify effective dates. The system does not check for duplicate tax rate and area information, which means that you can set up different tax rates and effective date ranges for the same tax rate and area. The system checks for overlapping effective date ranges. When an overlap exists, the system issues an error.
The Tax Rates/Areas (P4008) program also provides features for special situations. For example, you can specify whether tax is calculated as tax-on-tax, whether a portion of the tax is nonrecoverable (available for input credits), and whether maximum unit cost is associated with a particular item.
This diagram illustrates how some tax areas could be organized:
The three circles represent three tax authorities. The seven numbered areas represent tax areas.
Notice that tax authority jurisdiction can overlap and that a tax area can be assessed taxes by one or more tax authorities. The tax rate for a tax authority does not vary from one tax area to another. Tax authority A assesses a 3 percent tax in tax areas 2, 3, 5, and 6.
For each tax area, however, the total tax burden can vary. It is the cumulative effect of multiple tax authorities for a single tax area that causes the tax burden to vary from one tax area to another. For example, the businesses located in tax area 5 must remit tax to only one tax authority (Tax Authority A for 3 percent). Businesses in tax area 2 remit taxes to two tax authorities (Tax Authorities A for 3 percent and B for 2 percent), and businesses in tax area 3 remit taxes to all three tax authorities.
You can run a report to review all of the tax areas that are set up.
You can specify tax information for an item or group of items. To specify tax information for an item, set the processing option to validate information against the Item Branch File (F4102) table and enter the item number in the tax rate/area.
To specify a tax rate for an item group, enter one of the valid options in the Sales Taxable Y/N field on the Item Branch/Plant Info. form in the Item Branch/Plant (P41026) program. Options 3 through 8 are for grouping items together based on the tax rate. You set up the tax rate by area for one of the options and then specify the option for like items on the Item Branch/Plant Info. form.
When they sell their goods, most countries that pay VAT fully recover the amount of VAT that they paid. In other words, VAT paid in accounts payable is offset against any VAT collected in accounts receivable to reduce the amount owed to the government or, in some cases, to generate a tax rebate. Exceptions to this rule might include expenses such as meals and entertainment, which might bee only 50 percent recoverable.
When you cannot recover all of the VAT that you pay, you must set up the tax rate area to indicate the percentage of tax that is nonrecoverable (or not available for credit). When you use the tax rate area in a transaction, the system credits the VAT account for the amount that can be recovered only. The system does not create a separate entry to an account for the nonrecoverable amount; however, it does store the amount in the Accounts Payable Ledger (F0411) and Customer Ledger (F03B11) tables.
The system only recognizes nonrecoverable VAT when using type explanation codes V,B, and C.
When you set up a tax rate area that has nonrecoverable VAT, you enter the percent of the nonrecoverable tax on a separate line. Although the system requires a tax authority, it does not use the tax authority for reporting. When you specify a nonrecoverable percent, such as 50, the percent applies to the total tax on the tax rate area. However, if you set up the tax rate area for multiple tax authorities, the system applies the nonrecoverable tax to the first tax authority defined.
For example, this tax rate/area has two tax authorities specified, as well as a nonrecoverable percent.
When you enter a voucher or invoice and use this tax rate area (ONT), the system will apply the entire 50 percent to the account associated with the GL Offset GST.
In this example, the AAIs associated with the tax rate area point to these accounts:
1.4444 for RTGST
1.4445 for RTPST
If you enter an invoice for a taxable amount of 1,000 USD, the system calculates the tax amount as 150 USD (1,000 x.15) and the gross amount as 1,150 (1,000 + 150). When you post the invoice, the system creates these entries:
| Doc Type | Account | Account Description | Debit | Credit | Calculation |
|---|---|---|---|---|---|
| RI | 3.5010 | Store Sales | . | 1,075 | Taxable + (Tax x 50 percent) |
| AE | 1.1210 | AR Trade | 1,150 | . | Taxable + Tax |
| AE | 1.4444 | VAT Payable (GST) | 5* | . | (1,000 x 7 percent) - 75 = - 5 |
| AE | 1.4445 | VAT Payable (PST) | . | 80 | 1,000 x 8 percent = 80 |
*Normally, the entry to VAT Payable is a credit, but because the system calculates a - 5 (credit), it debits the account.
Before you complete the tasks in this section:
Set up the tax authorities in the address book.
Set up the necessary tax AAIs.
| Form Name | FormID | Navigation | Usage |
|---|---|---|---|
| Work With Tax Rate/ Areas | W4008A | Tax Processing and Reporting (G0021), Tax Rate/Areas. | Review and select tax rate/area records. |
| Tax Rate/Area Revisions | W4008B | Click Add on the Work With Tax Rate/Areas form. | Add and revise tax rate/area information. |
Processing options enable you to specify the default processing for programs and reports.
Specify a value to either display or hide the Item Number and Maximum Unit Cost fields. Values are:
1: Display
0: Hide
Specify a value to validate Item Numbers. Values are:
1: Validate
0: Do not validate
Access the Tax Rate/Area Revisions form.
Enter a code that identifies a tax or geographic area that has common tax rates and tax authorities. The system validates the code you enter against the F4008 table. The system uses the tax rate/area in conjunction with the tax explanation code and tax rules to calculate tax and GL distribution amounts when you create an invoice or voucher.
Enter the date when a transaction, contract, obligation, preference, or policy rule becomes effective, or ceases to be in effect.
Enter the address book number of the tax agency that has jurisdiction in the tax area. You pay and report sales, use, or VAT taxes to this agency. Examples include states, counties, cities, transportation districts, provinces, and so on. You can specify up to five tax authorities for a single tax area.
Enter a code that indicates how to locate the tax account for general ledger entries. This field points to automatic accounting instructions (AAIs) that, in turn, point to the tax account. Examples are:
PTyyyy - for AP (VAT only)
RTyyyy - for AR (VAT only)
GTyyyy - for GL (VAT only)
4320 - for Sales Orders
4400 and 4410 - for Purchase Orders
When setting up VAT and Canadian GST, PTyyyy, RTyyyy, and GTyyyy are the only valid values. For the AP system, a second GL Offset (PT_ _ _ _) is required when the tax setup involves VAT plus use taxes (tax explanation code B). Use AAI PT_ _ _ _ to designate the use tax portion of the setup.
Only tax explanation code V uses the GL Offset for the 2nd and subsequent tax authorities. The system ignores the field for all other tax explanation codes.
For sales taxes, the JD Edwards EnterpriseOne Accounts Payable and JD Edwards EnterpriseOne Accounts Receivable systems ignore the values in this field. However, the JD Edwards EnterpriseOne Sales Order Management and JD Edwards EnterpriseOne Procurement systems require values in this field.
Enter a number that identifies the percentage of tax that should be assessed or paid to the corresponding tax authority, based on the tax area.
Enter the percentage as a whole number and not as the decimal equivalent. For example, to specify 7 percent, enter 7, not .07.
If you use tax explanation codes B (VAT + Use) or C (VAT + sales), you must enter the VAT tax authority and tax rate on the first line of the tax rate/area. The nonrecoverable percent applies to the first tax rate only when using tax explanation codes C and B. For other tax explanation codes, the system multiplies the nonrecoverable percent by the total tax, but applies it to the first tax authority only.
For Canadian taxes, always specify on the first line the tax authority and tax rate for the GST portion of the tax.
Select this option that is used in Canada to specify whether to calculate PST tax after GST has been added to the product value.
The system calculates the PST before GST has been added to the product value.
For example, suppose that you have a tax area set up with 7 percent GST and 8 percent PST, and you select the option to calculate tax on tax. If you enter a voucher for a taxable amount of 1000 CAD, the system calculates the GST as 70 CAD, adds it to the taxable amount, and multiplies the PST by that result (1070 CAD). If you do not use compound taxes, the system calculates PST on the taxable amount only.
Note:
This option is valid only for tax explanation codes that begin with the letters B and C. To calculate compound taxes for tax explanation code V, use tax explanation code V+.This code is available only for the second tax authority (line 2 in the list on this form) and must identify a non-GST tax authority.
Select this option that indicates the percent of VAT that is not recoverable. You enter the nonrecoverable percentage in the Tax Rate field to the left of this option.
Note:
This option is valid only with tax explanation codes that begin with the letters C, B, and V.This code is available only for the third, fourth, fifth tax authorities (lines 3 through 5).
Enter a number that the system assigns to an item. It can be in short, long, or third item number format.
The number of the item or item grouping to which the tax applies.
Values for item groupings are 3 through 8. If you specify a value for an item grouping, you must ensure that the processing option to validate item numbers, which appears on the Edit tab, is set to 0 (off). If this processing option is not set correctly, the system attempts to validate the item grouping number as an actual item number.
Enter a number that identifies the maximum amount that an item can be taxed. If the unit cost of an item is more than the amount that you specify in this field, the maximum unit cost becomes taxable.
Note:
This field is used for processing sales and purchase orders only. This field is required for processing taxes in the state of Tennessee.This section provides an overview of the default values that you can set up for taxes and discusses how to:
Set up default tax information for the business unit.
Set up default tax information for the supplier record.
Set up default tax information for the customer record.
When you enter transactions with taxes, you can enter the tax information on the transaction or set up default values that the system uses during the entry process. Default tax values include the tax rate area and tax explanation code, and can be set up in the customer or supplier record or in the business unit record (tax rate area only). Regardless of whether you establish default values, you can override the tax information when you enter the transaction.
This table shows where the system retrieves the default tax rate area and tax explanation code from for each type of transaction that you enter:
| Transaction Entered | Tax Rate Area Used | Tax Explanation Code Used |
|---|---|---|
| Purchase order | Supplier record | Supplier record
The system uses tax defaults that you set up in the supplier record when you enter purchase orders. When you enter purchase orders, you use processing options to specify whether to retrieve the tax rate/area from the ship-to or supplier address book number. The system always uses the tax explanation code from the supplier record. |
| Sales order | Customer record (Ship-to address) | Customer record (Sold-to address)
The system uses tax defaults that you set up in the customer record when you enter a sales order. When you enter direct ship, transfer orders, or sales orders with different sold-to or ship-to addresses, the system retrieves the tax rate/area from the ship-to address and the tax explanation code from the sold-to address. |
| Voucher | Business unit; then supplier record | Supplier record
When you enter a voucher, the system uses the tax rate/area associated with the business unit, if one exists. If a tax rate/area is not set up for the business unit, the system uses the tax rate/area from the supplier record. The system uses the tax explanation code from the supplier record regardless of whether it uses the tax rate/area from the business unit. |
| Invoice | Business unit; then customer record | Customer record
When you enter an invoice, the system uses the tax rate/area associated with the business unit, if one exists. If a tax rate/area is not set up for the business unit, the system uses the tax rate/area from the customer record. The system uses the tax explanation code from the customer record regardless of whether it uses the tax rate/area from the business unit. |
| Journal entry | None | None
The system does not use default tax information when you enter a journal entry with VAT. |
This section provides an overview about tax information for general ledger accounts and discusses how to assign tax information to general ledger accounts.
If you track taxes by tax rate/area, you must specify that the general ledger account is taxable by selecting the Taxable Account option on the account. When you specify that an account is taxable, the system enables you to specify a default tax rate area to use. The system uses the tax rate area for the account on journal entries that are generated automatically or when the corresponding field is left blank on the distribution form of the voucher or invoice and you have specified to track taxes.
| Form Name | FormID | Navigation | Usage |
|---|---|---|---|
| Work With Accounts | W0901H | Organization & Account Setup (G09411), Review and Revise Accounts. | Review and select object accounts by company. |
| Revise Single Account | W0901A | On the Work With Accounts form, select an account. Select the More tab. | Add and revise tax information. |
Access the Revise Single Account form.
Select the More tab.
Select this option to specify whether an account is taxable. When the option is turned on, the account is taxable and the system updates the record in the F0901 table with 1.
Enter a code that identifies a tax or geographic area that has common tax rates and tax authorities. The system validates the code you enter against the F4008 table. The system uses the tax rate/area in conjunction with the tax explanation code and tax rules to calculate tax and GL distribution amounts when you create an invoice or voucher.
If the account is taxable, you can specify a default tax rate/area for the system to use. The system uses this value only during voucher and invoice entry when the user specifies to track taxes for a general ledger account and does not enter a tax rate/area.
This section provides an overview of tax capture settings and discusses how to set the tax constant for companies.
If you track taxes by pay item and G/L account, use the Invoice and Voucher Company Tax Constants program (P00218) to specify whether the system balances G/L distribution entries with revenue or expense accounts by pay item and tax information (tax rate area, tax explanation code, and tax item number) based on the source transaction in the Customer Ledger table (F03B11) or Accounts Payable Ledger table (F0411).
Note:
When you use the track taxes by pay item and G/L account method, the system uses tax information from the voucher or invoice record, not from the general ledger account.You must select the tax constant for every company in which you want to track taxes by pay item and G/L account. When you set up the tax constant for a company, the system applies the functionality to all programs in which you enter account distribution for invoices and vouchers.
Note:
Selecting the tax constant does not affect transactions that existed previously for a company.The system stores the tax capture constant information in the Company Constants Tag Table (F0010T).
| Form Name | FormID | Navigation | Usage |
|---|---|---|---|
| Work with Invoice and Voucher Company Tax Constants | W00218A | Tax Setup (G00218), Invoice and Voucher Company Tax Constants | Review and select company records.
Note: The system only displays AR companies that have the Offset Method constant set to S. |
| Edit Invoice and Voucher Company Tax Constant | W00218B | Click Add on the Work with Invoice and Voucher Company Tax Constants form. | Set the tax constant for companies. |
Navigate to the Work with Invoice and Voucher Company Tax Constants form.
Figure 3-3 Edit Invoice and Voucher Company Tax Constant form
Select this check box to balance G/L distribution of revenue or expense accounts in the F0911 table by pay item and tax information with the source transaction in the F03B11 or F0411 tables.
Do not change this constant after it has been set.
This section provides an overview of the VAT Information Exchange System (VIES) to validate European Union (EU) value-added tax (VAT) IDs, lists prerequisite, and discusses how to:
Set up the soft coding record for VIES validation.
Set up a user-defined code (UDC) for EU VAT ID validation.
Validate VAT IDs using VIES.
Review VAT IDs validated by VIES.
To validate EU VAT identification numbers using the VIES system, you must activate the VIES validation in the 74/VV UDC table. After you activate the VIES validation, the system automatically validates a new VAT identification number that you enter in the Tax field of the standard application, for example, Address Book, Supplier Master, or Customer Master. You enter the VAT identification number by prefixing the country code of the country issuing the VAT number. For example, you enter the VAT ID 12345678981 issued by Italy as IT12345678981 into the Tax field. If an error occurs in the process, the system displays the error and does not save the address book record until you correct the error.
You can receive a consultation number from VIES for each VAT identification number that you validate if you provide a valid requestor's VAT identification number during validation. You use this consultation number to prove to a tax administrator of a member country that you validated the VAT identification number and obtained a validation result.
The system fetches the requestor's VAT identification number from the address number of the business unit. If the system finds a valid VAT ID, it generates a consultation number along with the VAT ID validation result from VIES. If an error exists in the record, the system will report the error. If the system finds a blank value in the requestor's VAT ID field, it will not return a consultation number, but it will perform the validation. The system will update the Additional Address Book & Vat table (F74101) with successful VIES validation results.
You can review the VAT identification number for customers and suppliers that have been validated via VIES through the Review VAT ID Additional Information program (P74101).
This table lists and describes the warnings and errors that can occur during the validation process:
| Warning/Error | Warning/Error Description |
|---|---|
| Invalid requestor VAT ID entered in the processing option | The requester VAT ID set up in the processing option is invalid.
Resolution: Enter the correct VAT ID which belongs to a member state in the EU or leave the processing option blank. Note: If you leave the requestor's VAT ID in the processing option blank, the system will search the requestor's details from the business unit setup. |
| Invalid requester details | The provided requester VAT ID is invalid.
Resolution: Check whether the country code and the tax ID are set up correctly for the business unit associated with the address number. Check the VIES Validation UDC table for the country code setup. You must enter the correct details or leave the field blank. Note. If you leave the requestor details blank, VIES authorities will not generate a consultation number. |
| Country code not equal to the VAT number prefix | The first two characters of the VAT number (Tax ID) are not equal to the country code. This happens when the country code of the country that issued the VAT ID is different from the resident country that is set up in the mailing tab of the address book. For example, a customer's resident country entered in the mailing tab of the address book is FR for France, but the customer has the VAT Identification number IT12345678981 issued by Italy.
Resolution: Correct the country code or the VAT number in the Address Book Revisions program. Note. If you bypass this, the system will use the country code that is prefixed with the VAT ID for validation. |
| Invalid input | The provided country code is invalid or the tax ID field is empty.
Resolution: Enter the correct country code and tax ID. |
| VIES web service unavailable | The VIES web service is unavailable at present.
Resolution: Try again later. |
| Member state (country code) service unavailable | The member state service is unavailable at present.
Resolution: Try again later or try with another VAT ID that belongs to a different member state. |
| VIES web service time out | The member state service could not be reached at the moment.
Resolution: Try again later or try with another VAT ID that belongs to a different member state. |
| VIES server busy | The service cannot process your request.
Resolution: Try again later. |
| Invalid tax ID | The tax ID entered is invalid.
Resolution: Enter the correct tax ID and also verify that the country code is set up correctly in the Address Book Revisions program. |
| Requester details not found | The requester VAT ID is not set up.
Resolution: Set up the country code and the tax ID of the business unit associated with the address number. Note. If you leave the requestor details blank, VIES authorities will not generate a consultation number. |
| Unknown error occurred | The tax ID entered cannot be validated because an unknown error occurred when trying to call the VIES web service.
Resolution: Try again later. |
| Invalid blank tax ID | The tax ID cannot be left blank for the address number.
Resolution: Enter the correct tax ID. If you don't know the tax ID, enter 0 in the Personal/Corporation Code field to override the VIES VAT ID validation. |
Note:
The system saves the country code of the country that issued the VAT ID in the F74101 table. This can be different from the country code set up in the address book mailing tab when the country code of the VAT ID issuing country is different from the resident country.The system saves the VIES response in the F74101 table after a VAT ID is successfully validated. If you delete the address book number from the Address Book program, Supplier Master program, or Customer Master program, the system automatically deletes the related record from the F74101 table to maintain data integrity.
The VIES system validates the tax ID or the additional tax ID for a customer whose country code entered in the address book is IT for Italy, based on the value in the Person/Corporation Code field (TAXC). You can enter 1, 2, 3, or blank in the Person/Corporation Code field and the system validates accordingly:
2 or blank value as corporate entity
1 as individual
3 as both individual and corporate entity
For Italy, you can enter the 16 character personal identification number or the 11 digit VAT ID number in the Add'l Ind Tax ID field. You must not prefix the country code if you enter the 11 digit VAT ID number in the Add'l Ind Tax ID field.
You can also select multiple customers or suppliers from the Address Book Master table (F0101) and perform a batch validation using the Validate VAT ID VIES program (R74101). You perform the batch validation in one of the three modes that you set in the processing option:
Validation Mode First Run: If you select this mode, the system processes the records that you select in the F0101 table and saves the valid VAT identification numbers in the F74101 table. The system also generates a report listing the VAT identification numbers that are validated successfully through VIES. If the system finds an error in the process, it logs an error message in the work center with details about the address number and the error returned from VIES. The system also generates an exception report of the VAT IDs that did not validate successfully.
Validation Mode Re-Run (for existing records in the F74101 table): If you select this mode, the system processes related records from the F0101 and F74101 tables according to the date range entered in the processing option. It also generates a report listing the VAT IDs that were validated successfully through VIES. If the system finds an error in the process, it logs an error message in the work center with details about the address number and the error returned from VIES. The system also generates an exception report of the VAT IDs that did not validate successfully.
Display Mode: If you select this mode, the system displays records from the F74101 and F0101 tables. The system does not perform VIES validation in this mode.
Note:
The Validation Mode First Run and the Validation Mode Re-Run modes validate only those records that have their country and tax identification number set up in the Address Book system and the corresponding country setup is complete in the VIES Validation UDC table (74/VV).Note:
After you activate the VIES Validation, you can override both the VIES validation and the existing JD Edwards EnterpriseOne validation by entering 0 (zero) in the Personal/Corporation Code field in the Address Book Revision program. In this case, the system will not perform a validation. You will still be able to enter a tax ID and save the address book record, but the F74101 table will not contain a related record.Before you perform the tasks in this document, you must:
Set up the Object Configuration Manager (OCM) record for the user ID using the Object Configuration Manager (OCM) program (P986110) and version ZJDE0003. You set up the server and the port details of the BSSV (Business Services Server).
Set up the soft coding record for the soft coding keys J740102 and J740105 in the JD Edwards EnterpriseOne system before proceeding with the other tasks discussed in this document.
Set up business service properties for J740105.
The soft code records the endpoint or the location of the VIES web service. Use the Soft Coding Records program (P953000) to set up a soft code record. You base your soft coding record on a template that you configure using the Soft Coding Template program (P954000). Both of these applications store XML documents.
See "Working with Softcoding" in the JD Edwards EnterpriseOne Tools Business Services Development Guide.
| Form Name | FormID | Navigation | Usage |
|---|---|---|---|
| Work With SoftCoding Templates | W953000A | Soft Coding Administration (GH9096), Soft Coding Template (P953000) | Locate and review existing templates or delete a template. |
| Add SoftCoding Template | W953000C | On Work with SoftCoding Templates, click Add. | Add a new template. |
Access the Add SoftCoding Template form.
| Field | Description |
|---|---|
| Template Name | Enter a template name. You must use the JD Edwards EnterpriseOne standard for naming templates, which is E1_{BusinessService}, where BusinessService is the name of the business service; for example, E1_J740102. |
| Description | Enter a description to identify the purpose of the template. |
| SoftCoding Key | Enter J740102. This soft coding key identifies related templates and records to work with the VIES web service. |
| Value | Enter the following XML document:
<port-info> <wsdl-port namespaceURI="urn:ec.europa.eu:taxud:vies:services:checkVat" localpart="checkVatPort"/> <operations> <operation name="checkVat"/> <operation name="checkVatApprox"/> </operations> </port-info> |
Access the Add Web Service Soft Coding Record form.
| Form Name | FormID | Navigation | Usage |
|---|---|---|---|
| Work with Web Service Soft Coding Records | W954000A | Soft Coding Administration (GH9096), Soft Coding Records (P954000) | Locate and review existing records or delete a record. |
| Add Web Service Soft Coding Record | W954000B | On Work with Web Service Soft Coding Records, click Add. | Add a new record. |
| Field | Description |
|---|---|
| User/Role | Enter your JD Edwards EnterpriseOne user ID and role, such as *Public. |
| Environment Name | Enter the name of the JD Edwards EnterpriseOne environment in which you are working. |
| Template Name | Enter a template name. You must use the JD Edwards EnterpriseOne standard for naming templates, which is E1_{BusinessService}, where BusinessService is the name of the business service, for example, E1_J740102. |
| Soft Coding Key | Enter one of the following values:
|
| Soft Coding Description | Enter a description to identify the soft coding record. |
| Soft Coding Value | Enter the following XML document:
In the case of J740102: <port-info> <wsdl-port namespaceURI="urn:ec.europa.eu:taxud:vies:services:checkVat" localpart="checkVatPort"/> <operations> <operation name="checkVat"/> <operation name="checkVatApprox"/> </operations> </port-info> The system populates the XML document when you click the Populate Soft Coding Value button that appears on the form when you enter a valid template name. In the case of J740105: <scwls><endpoint>http://ec.europa.eu/taxation_customs/vies/services/checkVatService</endpoint></scwls> The link in bold should be the endpoint the user wants to connect to invoke the web service. |
You can use the Business Service Property Program (P951000) to manage business service property information. With this program, you can add or delete business service properties, and you can modify the property value.
When you add a new business service property, you indicate whether it is a system-level or service-level business service property. Business service properties categorized at the system level are used by more than one business service. Business service properties categorized at the business service level are used by only one business service.
After you create a business service property, you cannot change the name, because this is the key that the business service uses to call the business service property. You can change the property value.
All business service properties are stored in the Business Service Property table (F951000). You can view system-level, business service-level, or all business service properties that are available in your login environment from the Work with the Business Service Properties form.
| Form Name | FormID | Navigation | Usage |
|---|---|---|---|
| Working with Business Service Properties | W951000F | From the System Administration Tools menu, select Business Service Property from the Business Service Property and Business Service Cross Reference Administration folder. | Find, modify, or delete business service properties. |
| Add BSSV Property | W951000C | From Work with Business Service Properties, click Add. | Create a new business service property or modify the value of an existing business service property. |
Access the Work with Business Service Properties form, select the business service property to be changed (VIES_APP_SERVER_OAS_OR_WLS), and then click Select.
Modify Business Service Property form
A name that uniquely identifies the business service property. This name cannot be changed.
The default value is OAS. You must change this value to WLS if the user has the BSSV deployed in a weblogic server.
A phrase or sentence that identifies the purpose of the business service property.
Select a way to group business service properties for viewing. Verify that this value is set to SYSTEM.
A way to classify the business service property at the business service level.
Before you validate VAT identification numbers for EU member countries, you must set up the VIES Validation UDC table (74/VV) to activate validation of VAT identification numbers in the VIES.
To set up the VIES Validation UDC table:
Enter the country code in the Codes field if that country code is not already set up in the Codes column. This code identifies the EU member country within the JD Edwards EnterpriseOne system.
Enter the name of the country in the Description 01 field. You can leave a country code field blank to set up a default country code. The country code should be the same as the country code set up in the 00/CN UDC table and can consist of three characters.
Enter the two-digit country code defined by the government in the Description 02 field. To set up a default country, leave the Country Code field blank and enter the two-digit country code in the Description 02 field. For example, if you want to use Denmark as the default country, enter DK (the two-digit government code for Denmark) in the Description 02 field.
Enter 1 in the Special Handling Code field for a country to activate VIES VAT identification number validation for that country.
Clear the1 in the Special Handling Code field for a country to deactivate VIES VAT identification number validation for that country.
Examples of values are:
| Codes | Description 01 | Description 02 | Special Handling |
|---|---|---|---|
| Default Country | UK | 1 | |
| AT | Austria | AT | 1 |
| AUT | Austria | AT | 1 |
| BE | Belgium | BE | 1 |
| BEL | Belgium | BE | 1 |
| DE | Germany | DE | 0 |
| DEU | Germany | DE | 1 |
Processing options enable you to set default processing values for programs and reports.
| Field | Description |
|---|---|
| Processing Mode | Specify whether to run new records, rerun existing records, or just display the records. Values are:
0: Display (Default). Display records from the F74101 and F0101 tables. The system does not perform VIES validation in this mode. 1: First Run. Run address book records for the data selected in the F0101 table. 2: Re-Run. Run records from the F74101 table based on the date range entered in the processing option. |
| Start Date | Specify the start date to select records for processing.
Note. The start date is applicable only if you select processing mode 0 - Display (Default) or 2 - Re-Run. |
| End Date | Specify the start date to select records for processing.
Note. The start date is applicable only if you select processing mode 0 - Display (Default) or 2 - Re-Run. |
| Country code not equal to the VAT number prefix | The first two characters of the VAT number (Tax ID) are not equal to the country code. This happens when the country code of the country that issued the VAT ID is different from the resident country that is set up in the mailing tab of the address book. For example, a customer's resident country entered in the mailing tab of the address book is FR for France, but the customer has the VAT Identification number IT12345678981 issued by Italy.
Resolution: Correct the country code or the VAT number in the Address Book Revisions program. Note. If you bypass this, the system will use the country code that is prefixed with the VAT ID for validation. |
| Invalid input | The provided country code is invalid or the tax ID field is empty.
Resolution: Enter the correct country code and tax ID. |
| VIES web service unavailable | The VIES web service is unavailable at present.
Resolution: Try again later. |
| Member state (country code) service unavailable | The member state service is unavailable at present.
Resolution: Try again later or try with another VAT ID that belongs to a different member state. |
| VIES web service time out | The member state service could not be reached at the moment.
Resolution: Try again later or try with another VAT ID that belongs to a different member state. |
| VIES server busy | The service cannot process your request.
Resolution: Try again later. |
| Invalid tax ID | The tax ID entered is invalid.
Resolution: Enter the correct tax ID and also verify that the country code is set up correctly in the Address Book Revisions program. |
| Requester details not found | The requester VAT ID is not set up.
Resolution: Set up the country code and the tax ID of the business unit associated with the address number. Note. If you leave the requestor details blank, VIES authorities will not generate a consultation number. |
| Unknown error occurred | The tax ID entered cannot be validated because an unknown error occurred when trying to call the VIES web service.
Resolution: Try again later. |
| Invalid blank tax ID | The tax ID cannot be left blank for the address number.
Resolution: Enter the correct tax ID. If you don't know the tax ID, enter 0 in the Personal/Corporation Code field to override the VIES VAT ID validation. |
Note:
You set this processing option to receive a consultation number from VIES. If you leave the requestor's VAT Registration Number field blank, the system tries to fetch the requestor's VAT number set up in the system by taking the address number of the business unit that the customer or the supplier belongs, from the F0006 table, and the tax ID from the F0101 table. If the system finds a valid VAT identification number, it generates a consultation number along with the VAT ID validation result from VIES. If an error exists in the record, the system will report the error and then proceed with the validation for the next record. If the system finds a blank value in the VAT ID field of the business unit, it will not return a consultation number, but it will perform the validation. The system will update the F74101 table with successful VIES validation results.| Field | Description |
|---|---|
| Requester VAT Registration Number (VAT number with the country code prefix) | Enter your VAT identification number if you are the person requesting the consultation number. The VAT identification number is issued by a member state of the EU. |
| Start Date | Specify the start date to select records for processing.
Note. The start date is applicable only if you select processing mode 0 - Display (Default) or 2 - Re-Run. |
| End Date | Specify the start date to select records for processing.
Note. The start date is applicable only if you select processing mode 0 - Display (Default) or 2 - Re-Run. |
| Country code not equal to the VAT number prefix | The first two characters of the VAT number (Tax ID) are not equal to the country code. This happens when the country code of the country that issued the VAT ID is different from the resident country that is set up in the mailing tab of the address book. For example, a customer's resident country entered in the mailing tab of the address book is FR for France, but the customer has the VAT Identification number IT12345678981 issued by Italy.
Resolution: Correct the country code or the VAT number in the Address Book Revisions program. Note. If you bypass this, the system will use the country code that is prefixed with the VAT ID for validation. |
| Invalid input | The provided country code is invalid or the tax ID field is empty.
Resolution: Enter the correct country code and tax ID. |
| VIES web service unavailable | The VIES web service is unavailable at present.
Resolution: Try again later. |
| Member state (country code) service unavailable | The member state service is unavailable at present.
Resolution: Try again later or try with another VAT ID that belongs to a different member state. |
| VIES web service time out | The member state service could not be reached at the moment.
Resolution: Try again later or try with another VAT ID that belongs to a different member state. |
| VIES server busy | The service cannot process your request.
Resolution: Try again later. |
| Invalid tax ID | The tax ID entered is invalid.
Resolution: Enter the correct tax ID and also verify that the country code is set up correctly in the Address Book Revisions program. |
| Requester details not found | The requester VAT ID is not set up.
Resolution: Set up the country code and the tax ID of the business unit associated with the address number. Note. If you leave the requestor details blank, VIES authorities will not generate a consultation number. |
| Unknown error occurred | The tax ID entered cannot be validated because an unknown error occurred when trying to call the VIES web service.
Resolution: Try again later. |
| Invalid blank tax ID | The tax ID cannot be left blank for the address number.
Resolution: Enter the correct tax ID. If you don't know the tax ID, enter 0 in the Personal/Corporation Code field to override the VIES VAT ID validation. |
You can validate a single VAT identification number at the time of data entry. You can also validate multiple records using a batch process.
Select Address Book Revisions program (P01012), Supplier Master program (P04012) or Customer Master program (P03013). Click the OK button on the Address Book Revisions form, Supplier Master Revision form, or Customer Master Revision form after you enter the supplier or customer record.
VIES validation processes in the background and, if the validation is successful, it will save the VAT ID in the F74101 table. It will also save other details returned by the VIES web service, such as member state ID code, name and address of the taxable person, consultation number, date on which the request was made, and so on.
Select EU VAT ID Validation menu (G74VIES), Validate VAT ID VIES (R74101).
Select your version and click Select.
Note:
To validate the VAT ID for Italy, you must enter the value of the Person/Corporation Code field in the Address Book Revisions program, Supplier Master program, or Customer Master program. Based on this value, the system validates the VAT ID.You use the Review VAT ID Additional Information program (P74101) to review the details of the VAT IDs validated through VIES and stored in the F74101 table. You cannot modify the values available in the program.
The program enables you to filter and display the following items:
Address number: You can search a specific record based on the address number that you enter.
Start date (Request send date): You can search a specific record based on the date that you send the validation request to VIES.
End date (Request send date): You can search a specific record based on the date that you receive a validation result from VIES.
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Review VAT ID Additional Information | W74101A | EU VAT ID Validation (G74VIES), Review VAT ID Additional Information (P74101) | Review details about validated VAT IDs. |
Access the Review VAT ID Additional Information form.
| Field | Description |
|---|---|
| Address Number | The system populates this field with the address number returned from the VIES that identifies an entry in the Address Book system, such as employee, applicant, participant, customer, supplier, tenant, or location. |
| VAT Registration Number | The system populates this field with the VAT identification number returned from the VIES. The VAT ID is issued by a member state of the EU. |
| Name | The system populates this field with the description of the address returned from the VIES. |
| Address Line 1 | The system populates this field with the first line of a mailing address for an employee, customer, or supplier that is returned from the VIES. |
| Address Line 2 | The system populates this field with the second line of the mailing address for an employee, customer, or supplier that is returned from the VIES. |
| Address Line 3 | The system populates this field with the third line of the mailing address for an employee, customer, or supplier that is returned from the VIES. |
| Address Line 4 | The system populates this field with the fourth line of the mailing address for an employee, customer, or supplier that is returned from the VIES. |
| Country Code | The system populates this field with the UDC (74/VV) that identifies a country. |
| Requester Country Code | The system populates this field with the requestor's country code, which is a UDC (74/VV) that identifies a country. |
| Requester VAT Registration Number | The system populates this field with the VAT identification number of the requestor issued by a member state of the EU. |
| Request Send Date | The system populates this field with the date on which the VAT identification number was validated by VIES. |
| Consultation Number | The system populates this field with the consultation number received in response to a successful validation from VIES. This number can be used to prove to a tax administrator of a member state that you have checked a given VAT number at a given time and obtained a validation reply. |
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