2 Understanding Localizations for Chile

This chapter contains the following topics:

• Section 2.1, "How to Validate Tax IDs in Latin American Countries"

• Section 2.2, "Nonreimbursable VAT Processing for Chile"

• Section 2.3, "Chile-Specific Setup and Processes"

2.1 How to Validate Tax IDs in Latin American Countries

The logic for validating tax IDs for customers and suppliers for Latin American users in countries for which localized solutions are available is different from the logic for users in other countries. JD Edwards EnterpriseOne software supports localized software for these Latin American countries:

• Argentina

• Brazil

• Chile

• Colombia

• Ecuador

• Mexico

• Peru

• Venezuela

The standard logic for validating tax IDs uses the country code of the customer or supplier, along with values in the Tax Id Validation (70/TI) user-defined code (UDC) table. For the Latin American countries, the logic uses the user's country code as set up in the User Profile Revisions program (P0092) when:

• The user's country code is different from the supplier or customer country code, and

• The user's country code is for a supported Latin American country.

For example, if the user's country code is AR (Argentina) and the supplier's country code is IT (Italy), the system:

1. Verifies that the IT value exists in the 70/TI UDC table.

2. Uses the validation routine for Argentina instead of the validation routine for Italy.

Note: If both the user country code and the supplier or customer country code are in supported Latin American countries, do not set up the 70/TI UDC table with values for the supplier or customer country codes. For example, if the user is in Brazil, and the supplier is in Argentina, do not set up a value of AR in the 70/TI UDC table. Because the AR value does not exist in the 70/TI UDC table, the system will use the tax ID validation for the supplier's country (Argentina).

2.2 Nonreimbursable VAT Processing for Chile

According to VAT law provisions, fiscal credit can be taken only within the four tax periods following the invoice issue date, provided that VAT reimbursability validation is defined in the Company Constants by months or days.

You must set up:

• Legal Company Constants.

  Set up the quantity of days and months for the VAT reimbursability and the date to be used to verify days and months.

• Tax area equivalence.

  Specify which is the tax area with equivalent nonreimbursable fiscal credit for each fiscal credit of tax area.

• Tax rate/area.

  Set up the tax area to use to enter the fiscal credit.

If the difference of days or months in a voucher is greater than the date specified in the Company Constants (nonreimbursable VAT), the system automatically modifies the tax area and the tax explanation code so that they are recorded as nonreimbursable taxes.

For each voucher line, the entered tax area is replaced by its correlative area stated in the tax area constants when these conditions apply:

• Invoice date exceeding the legal time.

• Tax type equal to VAT.

• Tax percentage in the tax area different from 0.

Typically, you should use an explanation code S for the nonreimbursable VAT because this code does not discriminate tax. You can also enter vouchers with a tax explanation code and a nonreimbursable tax area code without the automatic system change option.

2.3 Chile-Specific Setup and Processes

This table lists the country-specific setup and functionality for Chile.

Setup or Process	Description
User-defined codes (UDCs)	In addition to the standard UDC setup, for Chile, set up UDCs to process: Legal documents Legal companies Statutory reporting Fixed assets Address book validations Inventory management See Setting Up UDCs for Chile. You also set up UDCs to work with accounts receivable draft processing. See Understanding UDCs for Accounts Receivable Drafts.
Automatic accounting instructions (AAIs)	In addition to the standard AAI setup, verify that these AAIs are set up to process transactions for Chile: FR1, FR2, or FR3 to revalue assets. See Revaluing Assets for Chile. FCxx and FDxx to retrieve the amounts that are associated with the cost and accumulated depreciation accounts, which the system prints on the fixed asset report. See Generating the Fixed Asset Ledger. 3910 and 3911 for inflation adjustments. See Understanding Inventory Adjustments for Raw Materials and Resale Goods.
Next numbers	In addition to the standard setup for next numbers, for Chile, set up next numbers for: Legal documents See Setting Up Next Numbers for Legal Documents. Fixed assets legal reports See Generating the Fixed Asset Ledger. You can void individual next numbers and sequences of next numbers. See Voiding Legal Numbers for Chile.
Address book records	In addition to the standard setup for address book records, for Chile: Set the processing options for Address Book Regional Information - CHI - 01 (P76H101) Set up corresponding versions of Address Book Regional Information - CHI - 01 (P76H101) and Address Book Revisions (P01012). In addition to the standard process for entering address book records, for Chile: Enter Tax ID information. Enter supplier withholding information. Enter value-added taxes (VAT) status information. Enter address book category codes to specify a company's line of business. Enter address book category codes to process sales orders and invoices. See Entering Additional Address Book Information for Chile In addition to the standard process for using batch processing for address book records: Set the processing options for the PO - Address Book Batch Upload program (R76H101Z1). Set up corresponding versions of the PO - Address Book Batch Upload program (R76H101Z1) and the Address Book Batch Upload program (R01010Z). See "Setting Processing Options for Address Book Batch Upload (R01010Z) in the JD Edwards EnterpriseOne Applications Address Book Implementation Guide. Provide proper data to the additional address book fields that are required for Chile in the F76H101T table. The logic for validating tax IDs for customers and suppliers was changed in the Address Book Revisions program (P01012) for users in the Latin American countries supported by JD Edwards EnterpriseOne software. See How to Validate Tax IDs in Latin American Countries.
Companies	In addition to the standard setup for companies, for Chile: Set up the AB Legal Document Types UDC (76H/DA) to validate tax ID numbers. See Setting Up UDCs for Address Book Validations for Chile. Set up legal companies. Associate transactional companies with legal companies. Set up company constants. See Setting Up Legal Companies for Chile .
Customers	Set up customer activity codes (line of business) for customers so that the line of business appears on legal vouchers. See Setting Up Lines of Business for Chile.
Suppliers	Set up additional address book information for suppliers. See Understanding Additional Address Book Information for Chile . Use the Rents Withholding Certificate program (R76H4030) to obtain the annual fees withholding certificate by supplier and legal company for the specified year. This report includes the fees that are paid for each month. See Understanding Additional Reports for Chile .
Voucher processing	In addition to the standard setup for voucher processing, in Chile: Set the processing options for Chilean Add Vouchers Set Up (P76H0411). See Setting Processing Options for Chilean Add Vouchers Set Up (P76H0411) . Set up corresponding versions of Chilean Add Vouchers Set Up (P76H0411) and Standard Voucher Entry (P0411). Set up legal document types. See Setting Up UDCs for Legal Documents for Chile . Set up: Associations between legal document types and legal document groups. Next numbers. Print templates. See Setting Up the System for Legal Requirements for Chile. To work with voucher processing for Chile, note that the system validates the legal invoice number, that dates for reimbursable tax are valid, and the existence of a detail line for fees. See Understanding Voucher Entry for Chile.
Invoice processing	In addition to the standard setup for invoice processing, in Chile: Set up legal document types. See Setting Up UDCs for Legal Companies for Chile . Set up: Associations between legal document types and legal document groups. Next numbers. Print templates. See Setting Up the System for Legal Requirements for Chile . In addition to the standard invoice processing, in Chile: Associate credit notes with invoices in the JD Edwards EnterpriseOne Accounts Receivable system. See Processing Invoices for Chile. Create print batches if processing invoices from the JD Edwards EnterpriseOne Accounts Receivable system. Assign legal numbers to invoices in print batches. Print legal documents in print batches. See Numbering and Printing Legal Documents for Chile. To process batch invoices for Chile, run the standard processes for batch invoice processing, and then copy data to country-specific tables. See Working with Batch Invoices for Chile.
Accounts receivable draft processing	In Chile, you can use the Drafts Entry program (P76A8000) to enter multiple payments (drafts) for a receipt. In addition to the standard setup for draft processing, for Chile, set up UDCs for draft processing. See Understanding UDCs for Accounts Receivable Drafts. To work with accounts receivable draft processing for Chile: Enter massive drafts. Apply draft receipts to invoices. Create draft registers. Remit drafts. Collect drafts. Delete or void drafts. Print, review, and revise drafts. Create credit or debit notes for exchange rate differences. See Processing Accounts Receivable Drafts for Chile.
Fixed assets	In addition to the standard setup for fixed assets, in Chile: Set up country-specific UDCs. See Setting Up UDCs for Fixed Assets for Chile. Set up AAIs. See Setting Up AAIs for Chile. Set up columns and specify how the system determines the amounts to print for the Fixed Asset Ledger. See Setting Up the Fixed Asset Ledger for Chile. In addition to the standard fixed asset functionality, in Chile: Revalue assets. See Revaluing Assets for Chile. Generate the Fixed Asset ledger report. See Generating the Fixed Asset Ledger.
Sales order processing	In addition to the standard setup for sales order processing, in Chile: Set up legal document types. See Setting Up UDCs for Legal Documents for Chile. Set up associations between legal document types and legal document groups, set up next numbers, and set up print templates. See Setting Up the System for Legal Requirements for Chile. See Associating Legal Document Types and Companies to Voucher Print Versions for Chile. Associate versions of the Voucher Print (P76H3B30) program with legal document types and companies. In addition to the standard sales order processing, in Chile: Assign legal numbers to shipment notes in print batches. Print legal documents in print batches. See Numbering and Printing Legal Documents for Chile. Print invoices, shipping guides, credit and debit notes, and other legal documents. See Working with Billing Information for Chile. Inquire on sales orders and other legal documents. See Inquiring on Sales Orders for Chile. Run the Lot of Printing Review (P76H3B50) program to number and print invoices before running the Update Customer Sales program (R42800). Relate sales orders to credit or debit notes. See Processing Credit Notes and Debit Notes Related to Documents for Chile. Override the system-assigned date for invoices. See Changing Invoice Dates for Chile.
Inventory management	In addition to the standard setup for managing inventory, in Chile, set up the system for actual costs. See Setting Up the System for Actual Costs for Chile. To calculate inventory adjustments and actual costs in Chile: Enter indirect costs, bill-of-material information, and actual costs. Update the localized cardex. Inquire on localized cardexes. Print the inventory ledger. Set up the system for inflation adjustments for raw materials and resale goods. Calculate inventory adjustments for raw materials and resale goods. Calculate the inflation adjustments for WIP (work in process) and FG (finished goods). See Calculating Inventory Adjustment and Actual Cost for Chile.
General ledger reporting	In addition to the standard general ledger reporting, for Chile, you can: Review the ledger by legal number. Review account balances by account and category code. Review debit and credit balances by month. Repost the Account Ledger Tag file. See Working With General Ledger Functionality for Chile.
Tax processing	In addition to the standard setup for tax processing, for Chile, set up columns for the IGV purchase ledger based on tax explanation codes. See Setting Up the IGV Purchase Ledger Report. Functionality for Chile exists to: Work with nonreimbursable VAT. See Nonreimbursable VAT Processing for Chile. Print VAT sales and VAT purchasing reports. See Reporting Taxes in Chile.
Financial reports	Functionality exists for Chile to: View by company the documents that are included in the VAT Purchasing Report and the Rent Withholding Ledger reports by using the Documents Printed on AP Legal Reports program (P76H401). See Verifying Documents in Reports for Chile. List all accumulated balances for a fiscal period by object account using the Account Balance by Object Account (R76H9001) program. List all journal entries for a specific period and assign the legal number to each entry using the General Journal (R76H9003) program. Print legal company information, report heading titles, and page numbers, based on processing option settings using the Print Number (folio) Blank Pages (R76H9005) program. List all transactions for a specific period by object account using the Account Ledger by Object Account (R76H9421) program. List all transactions for a specific period by category code using the Account Ledger by Category Code (R76H9470) program. See Understanding Additional Reports for Chile.