Contents

List of Figures

Title and Copyright Information

Preface

• Audience
• JD Edwards EnterpriseOne Products
• JD Edwards EnterpriseOne Application Fundamentals
• Documentation Accessibility
• Related Documents
• Conventions

1 Introduction to JD Edwards EnterpriseOne Tax Processing

• 1.1 JD Edwards EnterpriseOne Tax Processing Overview
• 1.2 JD Edwards EnterpriseOne Tax Processing Implementation
  • 1.2.1 Implementation Steps

2 Understanding Tax Explanation Codes

• 2.1 Understanding Tax Explanation Codes
  • 2.1.1 Sales Tax (S) - Purchase Order to Voucher
    • 2.1.1.1 Purchasing for Stock Items - Three-Way Voucher Match
    • 2.1.1.2 Purchasing for Nonstock Items - Three-Way Voucher Match
    • 2.1.1.3 Purchasing for Nonstock Items - Two-Way Voucher Match
  • 2.1.2 Sales Tax (S) - Sales Order to Invoice
  • 2.1.3 Sales Tax (S) - Voucher and Invoice Entry
  • 2.1.4 Use Tax (U) - Purchase Order to Voucher
    • 2.1.4.1 Purchasing for Stock Items - Three-Way Voucher Match
    • 2.1.4.2 Purchasing for Nonstock Items - Three-Way Voucher Match
    • 2.1.4.3 Purchasing for Nonstock Items - Two-Way Voucher Match
  • 2.1.5 Use Tax (U) - Voucher Entry
  • 2.1.6 VAT Tax (V) - Purchase Order to Voucher
    • 2.1.6.1 Purchasing for Stock Items - Three-Way Voucher Match
    • 2.1.6.2 Purchasing for Nonstock Items - Three-Way Voucher Match
    • 2.1.6.3 Purchasing for Nonstock Items - Two-Way Voucher Match
  • 2.1.7 VAT Tax (V) - Sales Order to Invoice
  • 2.1.8 VAT Tax (V) - Voucher and Invoice Entry
  • 2.1.9 VAT + Sales Tax (C) - Purchase Order to Voucher
    • 2.1.9.1 Purchasing for Stock Items - Three-Way Voucher Match
    • 2.1.9.2 Purchasing for Nonstock Items - Three-Way Voucher Match
    • 2.1.9.3 Purchasing for Nonstock Items - Two-Way Voucher Match
  • 2.1.10 VAT + Sales Tax (C) - Sales Order to Invoice
  • 2.1.11 VAT + Sales Tax (C) - Voucher and Invoice Entry
  • 2.1.12 VAT + Use Tax (B) - Purchase Order to Voucher
    • 2.1.12.1 Purchasing for Stock Items - Three-Way Voucher Match
    • 2.1.12.2 Purchasing for Nonstock Items - Three-Way Voucher Match
    • 2.1.12.3 Purchasing for Nonstock Items - Two-Way Voucher Match
  • 2.1.13 VAT + Use Tax (B) - Voucher Entry
  • 2.1.14 Tax Exempt (E)

3 Setting Up Tax Information

• 3.1 Common Fields Used in This Chapter
• 3.2 Setting Up Tax Authorities
• 3.3 Setting Up Tax UDCs
  • 3.3.1 Tax ID Validation (70/TI)
• 3.4 Setting Up Tax Rules by Company
  • 3.4.1 Understanding Tax Rules by Company
    • 3.4.1.1 Tolerance Rules
    • 3.4.1.2 Calculation Rules for Discount and Tax Amounts
    • 3.4.1.3 Examples: Calculation Rules for Taxes
    • 3.4.1.4 Example 1
    • 3.4.1.5 Example 2
    • 3.4.1.6 Example 3
    • 3.4.1.7 Example 4
    • 3.4.1.8 (GBR) Example 5
    • 3.4.1.9 (DEU) Example 6
    • 3.4.1.10 Edit Rules
  • 3.4.2 Forms Used to Set Up Tax Rules
  • 3.4.3 Setting Up Tax Rules
• 3.5 Setting Up AAIs for Taxes
  • 3.5.1 Understanding AAIs for Taxes
  • 3.5.2 Understanding Financial AAIs for Taxes
    • 3.5.2.1 AAI Hierarchy
    • 3.5.2.2 VAT Tax AAIs for the JD Edwards EnterpriseOne Accounts Payable, JD Edwards EnterpriseOne Accounts Receivable, and JD Edwards EnterpriseOne General Accounting Systems (PTxxxx, RTxxxxx, GTxxxx)
    • 3.5.2.3 VAT Tax AAIs for JD Edwards EnterpriseOne Procurement (PTVATD)
    • 3.5.2.4 Use Tax AAI (PT) - JD Edwards EnterpriseOne Accounts Payable and JD Edwards EnterpriseOne Procurement Systems
  • 3.5.3 Understanding Distribution AAIs for Taxes
    • 3.5.3.1 Tax Rate Area Setup
    • 3.5.3.2 Distribution AAI Set Up
• 3.6 Setting Up Tax Rate Areas
  • 3.6.1 Understanding Tax Rate Areas
    • 3.6.1.1 Tax Rate Areas for Items
    • 3.6.1.2 Revising Tax Rate Areas
  • 3.6.2 Understanding Nonrecoverable VAT
    • 3.6.2.1 Example: Using Nonrecoverable VAT
  • 3.6.3 Prerequisites
  • 3.6.4 Forms Used to Set Up Tax Rate Areas
  • 3.6.5 Setting Processing Options for Tax Rate/Areas (P4008)
    • 3.6.5.1 Display
    • 3.6.5.2 Edits
  • 3.6.6 Setting Up Tax Rate Areas
• 3.7 Setting Up Default Tax Information
  • 3.7.1 Understanding Default Values for Taxes
  • 3.7.2 Forms Used to Set Up Default Tax Information for the Business Unit, Supplier, and Customer Records
• 3.8 Assigning Tax Information to General Ledger Accounts
  • 3.8.1 Understanding Tax Information for General Ledger Accounts
  • 3.8.2 Forms Used to Assign Tax Information to General Ledger Accounts
  • 3.8.3 Assigning Tax Information to General Ledger Accounts
    • 3.8.3.1 More
• 3.9 Setting Up the Tax Constant by Company
  • 3.9.1 Understanding Tax Capture Settings
  • 3.9.2 Forms Used to Set the Tax Constant by Company
  • 3.9.3 Setting the Tax Constant by Company
• 3.10 Validating EU VAT ID Using VIES
  • 3.10.1 Understanding the VIES to Validate EU VAT ID
    • 3.10.1.1 Validating the VAT ID for Italy Using VIES
    • 3.10.1.2 Understanding Batch Validation
  • 3.10.2 Prerequisites
    • 3.10.2.1 Understanding the Soft Coding Record for VIES Validation
    • 3.10.2.2 Forms Used to Set Up Soft Coding Templates
      • 3.10.2.2.1 Adding a Soft Coding Template
    • 3.10.2.3 Forms Used to Set Up Soft Coding Records
      • 3.10.2.3.1 Adding a Soft Coding Record
  • 3.10.3 Understanding Business Service Property Information
  • 3.10.4 Forms Used to Manage Business Service Properties
  • 3.10.5 Set Up the Business Service J740105
  • 3.10.6 Setting Up a UDC for EU VAT ID Validation
  • 3.10.7 Setting Processing Options for the Validate VAT ID VIES Program (R74101)
    • 3.10.7.1 General Processing Options
    • 3.10.7.2 Requester Information Processing Option
  • 3.10.8 Validating VAT ID Using VIES
    • 3.10.8.1 Validating a New VAT ID at the Time of Data Entry
    • 3.10.8.2 Validating Multiple Records
  • 3.10.9 Reviewing VAT IDs Validated by VIES
    • 3.10.9.1 Form Used to Review VAT IDs Validated Using VIES
    • 3.10.9.2 Reviewing VAT IDs Validated Using VIES

4 Validating Tax IDs

• 4.1 Validating Tax ID Numbers
  • 4.1.1 Understanding Tax ID Validation
    • 4.1.1.1 Example of Tax ID or VAT Registration Numbers by Country
    • 4.1.1.2 (ITA) Tax ID or VAT Registration Number for Italy
    • 4.1.1.3 (AUT) Tax ID or VAT Registration Number for Austria
    • 4.1.1.4 (NLD) Tax ID or VAT Registration Number for the Netherlands
    • 4.1.1.5 (DEU) Tax ID or VAT Registration Number for Germany
    • 4.1.1.6 (GBR) Tax ID or VAT Registration Number for the United Kingdom
    • 4.1.1.7 (SWE) Tax ID or VAT Registration Number for Sweden
    • 4.1.1.8 (FIN) Tax ID or VAT Registration Number for Finland
    • 4.1.1.9 (DNK) Tax ID or VAT Registration Number for Denmark
  • 4.1.2 Understanding How to Activate Tax ID Validation Routine
    • 4.1.2.1 User Display Preferences
  • 4.1.3 Understanding How to Override Tax ID Validation Routine
• 4.2 Validating EU VAT ID Using VAT Information Exchange System (VIES)
  • 4.2.1 Understanding the VIES to Validate EU VAT ID
    • 4.2.1.1 Using JD Edwards EnterpriseOne to Validate EU VAT ID Using VIES
    • 4.2.1.2 Understanding Batch Validation
    • 4.2.1.3 Validating the VAT ID for Italy Using VIES
  • 4.2.2 Prerequisites
    • 4.2.2.1 Understanding the Soft Coding Record for VIES Validation
    • 4.2.2.2 Forms Used to Set Up Soft Coding Templates
      • 4.2.2.2.1 Adding a Soft Coding Template
    • 4.2.2.3 Forms Used to Set Up Soft Coding Records
      • 4.2.2.3.1 Adding a Soft Coding Record
    • 4.2.2.4 Understanding Business Service Property Information
    • 4.2.2.5 Forms Used to Manage Business Service Properties
    • 4.2.2.6 Set Up the Business Service J740105
  • 4.2.3 Setting Up a UDC for EU VAT ID Validation
  • 4.2.4 Setting Processing Options for the Validate VAT ID VIES Program (R74101)
    • 4.2.4.1 General Processing Options
    • 4.2.4.2 Requester Information Processing Option
  • 4.2.5 Validating VAT ID Using VIES
    • 4.2.5.1 Validating a New VAT ID at the Time of Data Entry
    • 4.2.5.2 Validating Multiple Records
  • 4.2.6 Reviewing VAT IDs Validated by VIES
    • 4.2.6.1 Form Used to Review VAT IDs Validated Using VIES
    • 4.2.6.2 Reviewing VAT IDs Validated Using VIES

5 Working With Tax Information on Orders and Transactions

• 5.1 Understanding Rounding vs. Soft Rounding
• 5.2 Understanding Programs that Update the Account Ledger Table (F0911)
• 5.3 Understanding How the System Calculates Taxes on Foreign Amounts
  • 5.3.1 Understanding Tax Calculations on Foreign Invoices, Vouchers, and Purchase Orders
    • 5.3.1.1 Example of Tax Calculation on Foreign Invoice
    • 5.3.1.2 Setup
    • 5.3.1.3 Calculations
  • 5.3.2 Understanding Tax Calculations on Foreign Sales Orders
    • 5.3.2.1 Example of Tax Calculation on Foreign Sales Order
    • 5.3.2.2 Setup
    • 5.3.2.3 Calculations
• 5.4 Entering Tax Information on Purchase Orders and Sales Orders
  • 5.4.1 Understanding Tax Information for Purchase Orders and Sales Orders
    • 5.4.1.1 Releasing Retainage on Purchase Orders with Taxes
    • 5.4.1.2 Taxable and Nontaxable Invoice Pay Items Generated from Sales Orders
  • 5.4.2 Prerequisites
  • 5.4.3 Forms Used to Enter Tax Information on Purchase Orders and Sales Orders
  • 5.4.4 Entering Tax Information on Purchase Orders
  • 5.4.5 Entering Tax Information on Sales Orders
• 5.5 Understanding Tracking Taxes
• 5.6 Tracking Taxes by Tax Rate/Area on Invoices and Vouchers
  • 5.6.1 Understanding Tracking Taxes by Tax Rate/Area
  • 5.6.2 Prerequisites
  • 5.6.3 Forms Used to Track Taxes by Tax Rate/Area
  • 5.6.4 Tracking Taxes by Tax Rate/Area on Invoices
    • 5.6.4.1 Standard Invoice Entry
    • 5.6.4.2 GL Distribution
  • 5.6.5 Tracking Taxes by Tax Rate/Area on Vouchers
    • 5.6.5.1 Enter Voucher - Payment Information
    • 5.6.5.2 GL Distribution
• 5.7 Tracking Taxes by Pay Item and G/L Account on Invoices and Vouchers
  • 5.7.1 Understanding Tracking Taxes by Pay Item and G/L Account
    • 5.7.1.1 Tracking Taxes by Pay Item and G/L Account With Split Payments or Installments
    • 5.7.1.2 Tracking Taxes by Pay Item and G/L Account in the Journal Edit Register Program
    • 5.7.1.3 Tracking Taxes by Pay Item and G/L Account in the A/P Voucher Journal Entry Redistribution Program
  • 5.7.2 Prerequisites
  • 5.7.3 Forms Used to Enter Tax Information by Pay Item and G/L Account
  • 5.7.4 Entering Tax Information by Pay Item and G/L Account
• 5.8 Updating Tax Information
  • 5.8.1 Understanding the General Ledger Post Program and Updating Tax Information
  • 5.8.2 Running the General Ledger Post Program
• 5.9 Revising Invoices and Vouchers with Taxes
  • 5.9.1 Splitting Vouchers for Payment
• 5.10 Entering Journal Entries with VAT
  • 5.10.1 Understanding Journal Entries with VAT
    • 5.10.1.1 (COL) Journal Entries with VAT for Colombia
    • 5.10.1.2 Example: Journal Entry with VAT
  • 5.10.2 Prerequisite
  • 5.10.3 Forms Used to Enter Journal Entries with VAT
  • 5.10.4 Setting Processing Options for Journal Entries with VAT (P09106)
    • 5.10.4.1 Addr # Required
    • 5.10.4.2 MBF Version
  • 5.10.5 Entering Journal Entries with VAT
• 5.11 Processing Batch Invoices and Vouchers with Taxes
  • 5.11.1 Understanding Batch Processing for Invoices and Vouchers with Taxes
    • 5.11.1.1 Tax Rate Area and Tax Explanation Code Defaults
    • 5.11.1.2 Fields Required for Processing Tax Information on Batch Invoices and Vouchers
    • 5.11.1.3 Distribution Information for Batch Processing
    • 5.11.1.4 Processing Foreign Amounts and Taxes
• 5.12 Processing Batch Journal Entries with VAT
  • 5.12.1 Understanding Batch Journal Entries with VAT
    • 5.12.1.1 Processing Foreign Amounts with Taxes

6 Working with the Taxes Table

• 6.1 Understanding the Process to Update the Taxes Table
• 6.2 Adding Transactions in the Taxes Table
  • 6.2.1 Understanding the Tax File Revisions Program
  • 6.2.2 Forms Used to Add Transactions to the Taxes Table
  • 6.2.3 Adding Transactions to the Taxes Table
• 6.3 Purging Transactions in the Taxes Table
  • 6.3.1 Purging Transactions in the Taxes Table

7 Updating the Tax Reconciliation Repository

• 7.1 Updating the Tax Reconciliation Repository
  • 7.1.1 Understanding the Process to Update the Tax Reconciliation Repository
    • 7.1.1.1 Reconciling Tax Amounts by GL Account
    • 7.1.1.2 Revising Reconciled Transactions
    • 7.1.1.3 Example: Updating the Tax Reconciliation Repository
    • 7.1.1.4 Tax Rate Area Setup
    • 7.1.1.5 AAI Setup
    • 7.1.1.6 Invoice Entry
    • 7.1.1.7 Invoice: 11223 RI 00001
    • 7.1.1.8 GL Distribution: 11223 RI 00001
    • 7.1.1.9 Post Report
    • 7.1.1.10 Update Tax Reconciliation Repository
  • 7.1.2 Running the Update Tax Reconciliation Repository Program
  • 7.1.3 Setting Processing Options for Update Tax Reconciliation Repository (R0018R)
    • 7.1.3.1 Selection Criteria
• 7.2 Reviewing the Tax Reconciliation Repository
  • 7.2.1 Understanding the Process to Review the Tax Reconciliation Repository
  • 7.2.2 Form Used to Review Records in the Tax Reconciliation Repository

8 Working With VAT Processing

• 8.1 Understanding VAT Terminology and Principles

9 Setting Up the Interface to Vertex Sales Tax Q Series

• 9.1 Understanding the Interface to Vertex Sales Tax Q Series
• 9.2 Understanding JD Edwards EnterpriseOne Tax Calculation Components
  • 9.2.1 Tax Considerations
• 9.3 Understanding Databases Used by Vertex Sales Tax Q Series
• 9.4 Prerequisite
• 9.5 Setting Up Vertex Sales Tax Q Series
  • 9.5.1 Understanding the Setup for Vertex Sales Tax Q Series
    • 9.5.1.1 Vertex Sales Tax Q Series Constants
    • 9.5.1.2 Vertex Sales Tax Q Series Connection Verification
    • 9.5.1.3 Vertex Sales Tax Q Series Logging
  • 9.5.2 Prerequisites
  • 9.5.3 Forms Used to Set Up Vertex Sales Tax Q Series
  • 9.5.4 Setting Up Vertex Q Series Constants
  • 9.5.5 Testing the Vertex Sales Tax Q Series Connection
  • 9.5.6 Activating Vertex Sales Tax Q Series Logging
• 9.6 Setting Up AAIs for Vertex Sales Tax Q Series
  • 9.6.1 Understanding AAIs for Vertex Sales Tax Q Series
    • 9.6.1.1 AAI Items PTxxxx and RTxxxx
    • 9.6.1.2 JD Edwards EnterpriseOne Sales Order Management, JD Edwards EnterpriseOne Service Management, and JD Edwards EnterpriseOne Procurement
• 9.7 Setting Up User-Defined Codes for Vertex Sales Tax Q Series
• 9.8 Processing Taxes for Stock and Nonstock Items
  • 9.8.1 Understanding the Tax Process for Stock and Nonstock Items
    • 9.8.1.1 Hierarchy for Product Category IDs and Transaction Types
  • 9.8.2 Forms Used to Assign Non-Stock
  • 9.8.3 Assigning Non-Stock Product Categories to Order Types
• 9.9 Defining Tax Information for Items
  • 9.9.1 Understanding Tax Information for Items
  • 9.9.2 Prerequisite
  • 9.9.3 Forms Used to Define the Tax Fields for an Item
  • 9.9.4 Defining the Tax Fields for an Item
• 9.10 Working With GeoCodes and Address Book Records
  • 9.10.1 Understanding How to Assign GeoCodes to Address Book Records
    • 9.10.1.1 Calculating Taxes for Related Addresses
  • 9.10.2 Understanding How to Assign GeoCodes Globally
    • 9.10.2.1 Update Address Book GeoCodes
    • 9.10.2.2 Updating Effective Dates on Address Book Records
  • 9.10.3 Understanding How to Assign GeoCodes Manually
  • 9.10.4 Understanding How to Override GeoCodes
    • 9.10.4.1 Overriding GeoCodes on an Invoice
    • 9.10.4.2 Overriding GeoCodes on a Voucher
    • 9.10.4.3 Overriding GeoCodes on a Sales Order
    • 9.10.4.4 Overriding GeoCodes on a Purchase Order
    • 9.10.4.5 Overriding GeoCodes on a Service Contract
    • 9.10.4.6 Overriding GeoCodes on a Service Order
    • 9.10.4.7 Overriding GeoCodes on a Call
    • 9.10.4.8 Overriding GeoCodes on a Contract Billing Line
    • 9.10.4.9 Overriding GeoCodes in the JD Edwards EnterpriseOne Service Billing System
  • 9.10.5 Prerequisite
  • 9.10.6 Running the Update Address Book GeoCodes Program
  • 9.10.7 Running the Effective Address Update Program
• 9.11 Processing Vertex Sales Tax Q Series Tax Information
  • 9.11.1 Understanding the Tax Process When Using Vertex Sales Tax Q Series
    • 9.11.1.1 Financial Processes
    • 9.11.1.2 Distribution Processes
    • 9.11.1.3 JD Edwards EnterpriseOne Service Management System Processes
    • 9.11.1.4 Contract Billing and Service Billing Processes
• 9.12 Printing Tax Information

A Mapping Fields from Vertex Sales Tax Q Series System to JD Edwards EnterpriseOne Software

• A.1 JD Edwards EnterpriseOne Accounts Payable
  • A.1.1 Accounts Payable Ledger Table (F0411)
  • A.1.2 Address Selection Hierarchy
    • A.1.2.1 Accounts Payable, Tax Explanation Code U or E
    • A.1.2.2 Accounts Payable, Tax Explanation Codes
• A.2 JD Edwards EnterpriseOne Accounts Receivable
  • A.2.1 Customer Ledger Table (F03B11)
  • A.2.2 Address Selection Hierarchy
    • A.2.2.1 Accounts Receivable - Sales Tax
• A.3 JD Edwards EnterpriseOne Contract Billing and JD Edwards EnterpriseOne Service Billing and JD Edwards EnterpriseOne Service Management
  • A.3.1 Billing Detail Workfile Table (F4812)
  • A.3.2 Address Selection Hierarchy
    • A.3.2.1 JD Edwards EnterpriseOne Contract Billing and JD Edwards EnterpriseOne Service Billing - Sales Tax
    • A.3.2.2 JD Edwards EnterpriseOne Service Management System - Contract Sales Tax
    • A.3.2.3 JD Edwards EnterpriseOne Service Management System - Service Order Sales Tax
    • A.3.2.4 JD Edwards EnterpriseOne Service Management System - Service Order Use Tax
• A.4 JD Edwards EnterpriseOne Sales Order Management
  • A.4.1 Sales Order Detail File (F4211) and Sales Order Header File (F4201) tables
  • A.4.2 Address Selection Hierarchy
• A.5 JD Edwards EnterpriseOne Procurement
  • A.5.1 Address Selection Hierarchy
    • A.5.1.1 JD Edwards EnterpriseOne Procurement - Use Tax

B JD Edwards EnterpriseOne Tax Processing Reports

• B.1 JD Edwards EnterpriseOne Tax Processing Reports: A to Z
• B.2 JD Edwards EnterpriseOne Tax Processing Reports: Selected Reports
  • B.2.1 R0018P - Tax/Detail Summary Report
    • B.2.1.1 As If Currency Reporting
    • B.2.1.2 Intracommunity Reporting
  • B.2.2 Data Selection and Sequencing
  • B.2.3 Processing Options for Tax Detail/Summary (R0018P)
    • B.2.3.1 Tax Report
    • B.2.3.2 As-If Currency
    • B.2.3.3 Dates
  • B.2.4 R0018P1 - Tax Summary Report/Use VAT
    • B.2.4.1 Intracommunity Reporting
  • B.2.5 Processing Options for Tax Summary Report/Use VAT (R0018P1)
    • B.2.5.1 Tax Report
    • B.2.5.2 As-If Currency
    • B.2.5.3 Dates
  • B.2.6 R0018P2 - Sales Tax
  • B.2.7 Processing Options for Sales Tax (R0018P2)
    • B.2.7.1 Versions
  • B.2.8 R0018P7 - VAT Exception Report by Tax Area
    • B.2.8.1 As If Reporting
  • B.2.9 Data Selection
  • B.2.10 Processing Options for VAT Exception Report by Tax Area (R0018P7)
    • B.2.10.1 As-If Currency
  • B.2.11 R0018P8 - GST/PST Tax
  • B.2.12 Processing Options for GST/PST Tax (R0018P8)
    • B.2.12.1 Update Options
    • B.2.12.2 Display
  • B.2.13 R00320 - VAT Journals
  • B.2.14 Processing Options for VAT Journals (R00320)
    • B.2.14.1 Select
    • B.2.14.2 Print
    • B.2.14.3 Columns
    • B.2.14.4 Process

Index