2 Understanding Localizations for Italy

This chapter contains the following topics:

• Section 2.1, "Italy-Specific Setup and Processes,"

2.1 Italy-Specific Setup and Processes

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

Setup or Process	Description
UDCs (user-defined codes)	Setting up Italy-specific UDCs enables you to use Italy-specific functionality. You also set up some base software UDCs with Italy-specific values. Set up UDCs for: Tax processing. See Setting Up UDCs for Tax Processing for Italy. Supplier withholding taxes. See Setting Up UDCs for Withholding Taxes for Italy. Multi-Purpose VAT Communication. See Setting Up UDCs for the Multi-Purpose VAT Communications (Release 9.1 Update). European Union reporting. See "Setting Up UDCs for Intrastat Reporting" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. IPI to print invoices with an attached International Payment Instruction (IPI). See "Setting Up UDCs for International Payment Instructions" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Companies: Affiliated Companies (74/AC) Code Number (74/30) See "Setting Up UDCs for European Companies" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
AAIs (automatic accounting instructions)	In addition to the basic AAI setup, set up AAIs to work with the annual close process in Italy and to work with supplier withholding taxes. See Setting Up AAIs for Italy.
Next numbers	In addition to the basic next number setup, you set up next numbers by business unit / document type to number delivery notes in Italy. See Setting Up Next Numbers for Delivery Notes.
Companies	You must set up your reporting company with a value of 3 in the Person/Corporation Code field (data item TXC) in the Address Book Revisions program (P01012). When you set up the company with a value of 3, the system enables you to complete both the Tax ID (data item TAX) and the Add'l Ind Tax ID field (data item TX2). You must also set up Italy-specific address book information before you can generate the Multi-Purpose VAT Communication. See "Entering Address Book Information for a Tax Reporting Entity"
Bank accounts	When setting up bank accounts for Italy: Review the overview about bank account validation. See "Understanding Bank ID and Bank Account Validation" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Review the overview about using international bank account numbers (IBAN). See "Understanding International Bank Account Numbers" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Upload Italian bank ID information. Revise Italian ID information manually. Convert Italian bank numbers. Set processing options for Italian Bank Number Conversion (R74800). See Setting Up Bank Information in Italy.
Customers and suppliers	You can generate reports for customer and supplier balances. See "Supplier Balance Reports" in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide. You also generate an annual list of transactions for customers and suppliers for VAT reporting.
Supplier withholding	To set up to process supplier withholding: Set up UDC values. See Setting Up UDCs for Withholding Taxes for Italy. Set up the data dictionary to track the status of the tax. See Setting Up the Data Dictionary for Withholding in Italy. Enter withholding tax information for suppliers including the fiscal group code, withholding tax code, individual tax ID code, and the country. Set up withholding tax codes to define withholding tax rates. See Setting Up Withholding Tax Codes. To work with supplier withholding: Review the overview of Italian withholding tax and tax calculations. See Understanding the Process for Calculating Italian Withholding Taxes. Review and revise withholding taxes if necessary. See Revising Withholding Taxes in Italy.
Payment processing	Before processing payments in Italy, set up the payment formats. See Setting Up Payment Formats for Italy. To work with payment processing in Italy: Review the overview of prepayment processing for VAT. See Understanding Prepayments for Notula in Italy. Review the overview of manual payments. See Understanding Manual Payments for Italy.
Invoice processing	To work with invoice processing in Italy: Set up invoice due dates. See Setting Up the 30/60/90 End-of-Month Invoice Date for Italy. Enter invoices for free goods to enable accounting for VAT. See Understanding Invoices for Free Goods. Set up corresponding versions of the Standard Invoice Entry program (P03B11) and the PO - Localization Invoice Entry program (P74Y3B11), and set up corresponding versions of the Sales Order Entry program (P4210) and the PO - Localization Sales Order Entry program (P74Y2210) so that you can associate credit notes to invoices. See Setting Up Corresponding Versions. Associate credit notes to invoices for sales order and accounts receivable transactions. See Associating Sales Order Invoices to Credit Notes. See Associating Accounts Receivable Invoices to Credit Notes. In addition to standard invoice processing, you can print invoices with an attached International Payment Instructions (IPI). To print these invoices and attachments: Set up UDCs for IPIs. See "Setting Up UDCs for International Payment Instructions" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Print invoices with attached IPIs. See "Printing Invoices with an Attached International Payment Instrument" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Voucher processing	To capture information needed for tax reporting, you must associate debit notes to the vouchers that they modify. You must also set up corresponding versions of the Standard Voucher Entry program (P0411) and the PO - Localization Voucher Entry program (P74Y4411). The system uses the corresponding versions when you associated debit notes with vouchers. See Associating Vouchers to Debit Notes.
Accounts receivable draft processing	Before working with accounts receivable drafts in Italy, set up draft remittance formats. See Setting Up Draft Remittance Formats for Italy.
Monthly and annual close	Before you perform the standard processes to close accounts for a month, in Italy, verify the account balances. See Verifying Account Balances in Italy. In addition to the base software processes for the annual close, in Italy: Set up AAIs. See Setting Up AAIs for the Annual Close Process. Complete the tasks necessary to prepare the year-end balance sheet. See Closing a Fiscal Year in Italy.
Bank statements	Use the Italian Statement Print program (R03B5002) to print statements for Italy. See "Generating Statements" in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.
Tax processing	Before you work with VAT for Italy: Set up UDCs. See Setting Up UDCs for Tax Processing for Italy. Set up register types and classes for summary VAT. See Setting Up Register Types and Classes for Summary VAT. Set up an initial VAT balance. See Establishing an Initial VAT Balance. To work with VAT in Italy: Use the Petrol Card Expense reports for Italy to account for petrol purchases. See Understanding Accounting for Petrol Card Expense Reports for Italy. Work with the VAT ceiling, calculate taxes, and generate reports. See Processing VAT for Italy. See Using Additional Reports for Italy. Generate the Yearly List (Spesometro), the Black List Declaration, and the San Marino Purchases Declaration. See Chapter 5, "Generating the Multi-Purpose VAT Communication (Release 9.1 Update)"
Fixed assets	In addition to the base processes for fixed assets, in Italy: Use the Italy-specific depreciation method. See "Understanding International Depreciation Methods" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide. Generate the Fixed Assets Legal Report. See Preparing the Fixed Assets Legal Report in Italy.
Intrastat and other European Union reporting	Generate Italy-specific intrastat reports. "Understanding the Italy Intrastat Services Declarations Report" See Also "Setting Up European Union (EU) and SEPA Functionality" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. See Also "Using European Union Functionality" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Integrity reports	Reports for Italy enable you to: Print a list of the general ledger transactions for each month in chronological and sequential order using the G/L Registration Report (R09404). Verify the accuracy of transactions in individual account ledgers using the Debit/Credit T/B by Object program (R09473). Validate information in legal reports and can be used as the basis for internal auditing using the G/L by Category Code program (R70470). Verify the accuracy of transactions in individual account ledgers using the T/B by Category Code program (R70472). Validate information in legal reports and can be used as the basis for internal auditing using the G/L by Object and Subsidiary program (R7409C1). Verify the accuracy of transactions in individual account ledgers using the T/B by Object and Subsidiary program (R7409C3). Generate a report of VAT by tax area code using the VAT Report by Tax Area program (R00400). Print monthly reports to document accounts payable and accounts receivable VAT using the Monthly VAT Report (R004051). Print a list of the suspended VAT invoices that still need to be paid using the Invoice List Control Report (R74079). Review the total amount of VAT that is due to the Italian government using the Print VAT Summary Report (R74093). See Using Additional Reports for Italy.
Oracle Business Accelerator	The JD Edwards EnterpriseOne Oracle Business Accelerator solution is available for Italy, as well as other countries. The pre-configured data that are part of the Oracle Business Accelerator solution is based on business processes that have been designed according to the best business practices for a specific country and industry. See http://docs.oracle.com/cd/E24705_01/index.htm
Electronic Invoices	Companies in Italy are required to submit a digital version of the invoices issued that meet a specific criteria. JD Edwards EnterpriseOne Localizations for Italy uses the standard programs to generate a printable invoice document, and country-specific generic invoice functionality to generate a digital electronic invoice. See Understanding the System Setup to Work With Italy Electronic Invoices