This chapter contains the following topics:
Section 2.1, "How to Validate Tax IDs in Latin American Countries"
Section 2.2, "Using an Additional Ledger Type to Work with IETU"
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:
Verifies that the IT value exists in the 70/TI UDC table.
Uses the validation routine for Argentina instead of the validation routine for Italy.
The IETU (Impuesto Empresarial a Tasa Unica) is a minimum alternative tax to the Mexican income tax. To work with the IETU, you prepare parallel calculations annually that you use to compare the IETU calculated tax amounts to other calculated tax amounts. You use the comparison to determine the income tax that you must pay.
As part of the IETU requirement, the tax recognition as fiscal credit or fiscal debit is possible only if you receive from your bank a confirmation that the receipt and the payments were accredited or debited in the bank account. You can use the bank statement and bank account reconciliation processes to track the dates that your bank confirms the debits and credits.
You can maintain a parallel data set that you can use for your IETU calculations by writing the reconciliation clear date and reconciliation flag that appears in the AA ledger to an additional ledger type, such as the AZ ledger. You specify the dates that the bank confirms receipts and payments when you reconcile bank statements, and write those dates to the Account Ledger table (F0911) for the AA ledger and the additional ledger type that you specify in processing options.
The system maintains data for the accrual accounting method in the AA ledger and maintains data for the cash basis accounting method in the AZ ledger. If you use cash basis accounting, you should specify the AZ ledger as the additional ledger to update with bank statement and bank account reconciliation information. The system creates entries in the AZ ledger when you run the Create Cash Basis Entries program (R11C850).
You must reconcile statements and accounts after running the Create Cash Basis Entries program if you specify AZ as the additional ledger type because the Create Cash Basis Entries program generates the original AZ records. The AZ ledger records cannot be updated by the bank statement and back account reconciliation programs until you create the ledger records by running the Create Cash Basis Entries program.
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Note: If you run the Create Cash Basis Entries program after you reconcile statements and accounts, set the Reconciliation code processing option in the Create Cash Basis Entries program to 1 to copy the reconciliation code and cleared date for the reconciled statements and accounts from the AA ledger to the AZ ledger. |
To track cleared dates and maintain a duplicate set of records for the AZ (cash basis) ledger when using the automatic bank statement process:
Run the Create Cash Basis Entries program (R11C850) to process cash basis transactions and generate records for the AZ ledger.
Convert the data from the flat files that you receive from your bank to the JD Edwards EnterpriseOne General Accounting system.
You run the Process Automatic Bank Statements Flat File program (R09600) to transfer the data to the staging tables (F09610 and F09611).
Transfer the data to the bank statement tables (F09616 and F09617).
Run the Load Bank Statement program (R09612) to transfer the data.
Revise the bank statement data if necessary.
Use the Revise Automatic Bank Statement program (P09616) to revise the data.
Automatically reconcile data from the electronic bank statement against the bank account information in your general ledger.
Set the Additional Ledger Type to Update processing option in the Process Auto Bank Statement program (R09616) to update ledger type AZ.
Run the Process Auto Bank Statement program to automatically reconcile the data.
Correct unreconciled exceptions.
In the Manual Bank Statement Reconciliation program (P09631), set the Additional Ledger Type to Update processing option to update ledger type AZ.
Set the Cleared Date processing option to display the Cleared Date field on the Reference 3 Selection form.
Use the Manual Bank Statement Reconciliation program to correct unreconciled exceptions.
To track cleared dates and maintain a duplicate set of records for the AZ (cash basis) ledger when using the manual bank statement process:
Run the Create Cash Basis Entries program (R11C850) to process cash basis transactions and generate records for the AZ ledger.
Enter transaction information including the transaction code that specifies how the system reconciles the transaction.
You use the Bank Statement Entry program (P09160) to enter transaction information.
Post receipts, payments, and journal entries, if necessary.
Post batches to update the WF - Account Ledger Reconciliation workfile (F0911R).
Run the Refresh Reconciliation File program (R09130) to update the F0911R table with the transactions that you recorded prior to receiving your bank statement.
On the Reconciliation tab of the Bank Journal Statement Process program (R09170), set the Additional Ledger Type to be updated processing option to update a ledger type AZ.
Run the Bank Journal Statement Process program to compare transaction information and create any needed journal entries.
The Bank Journal Statement Process program also:
Runs the Update Receipts Header (R03B551) and Apply Receipts to Invoices (R03B50) programs.
Generates reconciliation reports.
Reconciles transactions.
Post any journal entries created by the Bank Journal Statement Process program.
To track cleared dates and maintain a duplicate set of records for the AZ (cash basis) ledger when reconciling bank tapes:
Run the Create Cash Basis Entries program (R11C850) to process cash basis transactions and generate records for the AZ ledger.
Convert the data on the tape that you receive from your bank into a flat file called F095051.
This program converts the data in the F095051 to the F09505 workfile.
You can run the Custom Reformat UBE program (R09501) to convert the data if the data is mapped to the correct positions. If not, then you must create your own custom program to convert the data.
Run the Refresh Reconciliation File program (R09130) to copy the unreconciled transaction detail for all reconcilable accounts from the F0911 table to the F0911R reconciliation workfile.
In the Match Tape File to Recon File program (R09510), set the Additional Ledger Type to be updated processing option to update the AZ ledger.
Run the Match Tape File to Recon File program to reconcile the transactions that have cleared your bank account.
The Match Tape File to Recon File program generates four reports that show the results of the comparison and list any errors that occurred during the automatic reconciliation. You use these reports to verify the accuracy of the bank tape reconciliation and, if applicable, to determine the cause of any errors.
To track cleared dates and maintain a duplicate set of records for the AZ (cash basis) ledger when reconciling bank account transactions:
Run the Create Cash Basis Entries program (R11C850) to process cash basis transactions and generate records for the AZ ledger.
Reconcile voided payments and receipts.
Run these programs:
Automatic Reconcile Void Payment (R09551)
Automatic Reconcile Void Receipt (R09552)
Run the Refresh Reconciliation File program (R09130) to reconcile bank account transactions for a period.
Run the Print Reconciliation Report (R09132P) for a list of any outstanding items that are unreconciled.
In the Manual Reconciliation program (P09131), set these processing options to include an additional ledger type (AZ) and a cleared date:
Additional Ledger Type to Update
Cleared Date
Use the Manual Reconciliation program (P09131) to enter the date that the bank transaction cleared, as well as other necessary information.
This table lists the country-specific setup and functionality for Mexico.
| Setup or Process | Description |
|---|---|
| VAT processes for Mexico | In addition to setting up tax information in the base software, Mexico-specific setup for tax processing includes:
See Understanding the Setup for Processing VAT on Payments and Receipts for Mexico. See Understanding VAT and the General Ledger for Mexico. 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. |
| Supplier withholding | To work with supplier withholding in Mexico:
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| Cash basis accounting | You can set up base software programs in your system to use additional ledger types to work with IETU (Impuesto Empresarial a Tasa Unica) in Mexico. |
| Electronic accounting | You can use JD Edwards EnterpriseOne Localizations for Mexico to generate and archive your accounting records digitally and to generate reports required by the fiscal authorities.
In addition to setting up your accounting information in the base software, Mexico-specific setup for electronic accounting includes setting up the different programs and reports that the system offers: |