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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)
3.3.2
Setting Up UDCs for Alternate Tax Rate/Area Assignment (Release 9.1 Update)
3.3.2.1
Countries Alternate Tax Rate/Area (00/EC)
3.3.2.2
Edit Flag (00/EE)
3.3.2.3
Transaction Source (00/ES)
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 Accounts Payable, Accounts Receivable, and General Accounting Systems (PTxxxx, RTxxxxx, GTxxxx)
3.5.2.3
VAT Tax AAIs for JD Edwards EnterpriseOne Procurement (PTVATD)
3.5.2.4
Tax AAI (PT) in the Accounts Payable and 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
Setting Up Alternate Tax Rate/Area Assignment Functionality (Release 9.1 Update)
3.8.1
Understanding Alternate Tax Rate/Area Assignment Functionality
3.8.2
Setting Up the Alternate Tax Rate/Area Assignment Company Constants
3.8.2.1
Understanding the Alternate Tax Rate/Area Assignment Company Constants
3.8.2.2
Forms Used to Set Up the Alternate Tax Rate/Area Assignment Company Constants
3.8.2.3
Setting Up Alternate Tax Rate/Area Assignment Company Constants
3.8.3
Setting Up Alternate Tax Rate/Area Definitions
3.8.3.1
Understanding Alternate Tax Rate/Area Definitions
3.8.3.2
Examples of Alternate Tax Rate/Area Definitions
3.8.3.3
Forms Used to Set Up Alternate Tax Rate/Area Definitions
3.8.3.4
Setting Up Alternate Tax Rate/Area Definitions
3.8.4
Setting Up Company Address Number for Tax Reports (Release 9.1 Update)
3.8.4.1
Understanding Company Address Number for Tax Reports Setup
3.8.4.2
Forms Used to Set Up Company Address Number for Tax Reports
3.8.4.3
Setting Up Company Address Number for Tax Reports
3.8.5
Setting Up Alternate Tax Rate/Area By Country (Release 9.1 Update)
3.8.5.1
Understanding Alternate Tax Rate/Area By Country
3.8.5.2
Forms Used to Set Up Alternate Tax Rate/Area By Country
3.8.5.3
Setting Up Alternate Tax Rate/Area By Country
3.8.6
Running the Alternate Tax Rate/Area By Country Integrity Report (Release 9.1 Update)
3.8.7
Setting Processing Options for Alternate Tax Rate/Area by Country Integrity (R40083) (Release 9.1 Update)
3.8.7.1
Process
3.8.8
Setting Up Address Book Records to Work with the Alternate Tax Rate/Area Assignment Functionality
3.9
Assigning Tax Information to General Ledger Accounts
3.9.1
Understanding Tax Information for General Ledger Accounts
3.9.2
Forms Used to Assign Tax Information to General Ledger Accounts
3.9.3
Assigning Tax Information to General Ledger Accounts
3.9.3.1
More
3.10
Setting Up the Tax Constant by Company
3.10.1
Understanding Tax Capture Settings
3.10.2
Forms Used to Set the Tax Constant by Company
3.10.3
Setting the Tax Constant by Company
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
Working With Generic VAT Reports
9.1
Understanding Generic VAT Reports
9.1.1
Understanding the XML Generation Process
9.1.1.1
Extract Data Tables
9.1.1.2
Get Parameters
9.1.1.3
Country Specific Data Requirements
9.1.1.4
Generate XML
9.2
Generating Generic VAT Reports
9.2.1
Running Generic VAT Reports
9.2.2
Setting Processing Options for Generic VAT Extractor Program (R700001)
9.2.2.1
Processing Mode
9.2.2.2
Data Selection
9.2.2.3
Fiscal Information
9.2.2.4
Declaration Information
9.2.2.5
Default
9.2.2.6
Validations
9.2.2.7
Print Options (Release 9.1 Update)
9.2.2.8
Currency (Release 9.1 Update)
9.2.2.9
European Union (Release 9.1 Update)
9.3
Reviewing Generic VAT Reports
9.3.1
Understanding How Review Generic VAT Reports
9.3.2
Forms Used to Review Generic VAT Reports
9.3.3
Reviewing Generic VAT Reports
10
Setting Up the Interface to Vertex Sales Tax Q Series
10.1
Understanding the Interface to Vertex Sales Tax Q Series
10.2
Understanding JD Edwards EnterpriseOne Tax Calculation Components
10.2.1
Tax Considerations
10.3
Understanding Databases Used by Vertex Sales Tax Q Series
10.4
Prerequisite
10.5
Setting Up Vertex Sales Tax Q Series
10.5.1
Understanding the Setup for Vertex Sales Tax Q Series
10.5.1.1
Vertex Sales Tax Q Series Constants
10.5.1.2
Vertex Sales Tax Q Series Connection Verification
10.5.1.3
Vertex Sales Tax Q Series Logging
10.5.2
Prerequisites
10.5.3
Forms Used to Set Up Vertex Sales Tax Q Series
10.5.4
Setting Up Vertex Q Series Constants
10.5.5
Testing the Vertex Sales Tax Q Series Connection
10.5.6
Activating Vertex Sales Tax Q Series Logging
10.6
Setting Up AAIs for Vertex Sales Tax Q Series
10.6.1
Understanding AAIs for Vertex Sales Tax Q Series
10.6.1.1
AAI Items PTxxxx and RTxxxx
10.6.1.2
JD Edwards EnterpriseOne Sales Order Management, Service Management, and Procurement Systems
10.7
Setting Up User-Defined Codes for Vertex Sales Tax Q Series
10.8
Processing Taxes for Stock and Nonstock Items
10.8.1
Understanding the Tax Process for Stock and Nonstock Items
10.8.1.1
Hierarchy for Product Category IDs and Transaction Types
10.8.2
Forms Used to Assign Non-Stock
10.8.3
Assigning Non-Stock Product Categories to Order Types
10.9
Defining Tax Information for Items
10.9.1
Understanding Tax Information for Items
10.9.2
Prerequisite
10.9.3
Forms Used to Define the Tax Fields for an Item
10.9.4
Defining the Tax Fields for an Item
10.10
Working With GeoCodes and Address Book Records
10.10.1
Understanding How to Assign GeoCodes to Address Book Records
10.10.1.1
Calculating Taxes for Related Addresses
10.10.2
Understanding How to Assign GeoCodes Globally
10.10.2.1
Update Address Book GeoCodes
10.10.2.2
Updating Effective Dates on Address Book Records
10.10.3
Understanding How to Assign GeoCodes Manually
10.10.4
Understanding How to Override GeoCodes
10.10.4.1
Overriding GeoCodes on an Invoice
10.10.4.2
Overriding GeoCodes on a Voucher
10.10.4.3
Overriding GeoCodes on a Sales Order
10.10.4.4
Overriding GeoCodes on a Purchase Order
10.10.4.5
Overriding GeoCodes on a Service Contract
10.10.4.6
Overriding GeoCodes on a Service Order
10.10.4.7
Overriding GeoCodes on a Call
10.10.4.8
Overriding GeoCodes on a Contract Billing Line
10.10.4.9
Overriding GeoCodes in the JD Edwards EnterpriseOne Service Billing System
10.10.5
Prerequisite
10.10.6
Running the Update Address Book GeoCodes Program
10.10.7
Running the Effective Address Update Program
10.11
Processing Vertex Sales Tax Q Series Tax Information
10.11.1
Understanding the Tax Process When Using Vertex Sales Tax Q Series
10.11.1.1
Financial Processes
10.11.1.2
Distribution Processes
10.11.1.3
JD Edwards EnterpriseOne Service Management System Processes
10.11.1.4
Contract Billing and Service Billing Processes
10.12
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, Service Billing and Service Management Systems
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
C
Alternate Tax Rate/Area Assignment Functionality - Impacted Objects
C.1
Understanding Objects Impacted by the Alternate Tax Rate/Area Assignment Functionality
C.2
Financial Management: Accounts Payable
C.3
Financial Management: Accounts Receivable
C.4
Financial Management: Expense Management
C.5
Service Management
C.6
CRM - Case Management
C.7
Contract Billing
C.8
Service Billing
C.9
Grower Management
C.10
Homebuilder Management
C.11
Procurement Management
C.12
Project and Government Contract Accounting
C.13
Real Estate Management
C.14
Sales Order Management
C.15
Transportation Management
C.16
Work Orders
Index
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