(CHN) Setting Up Country-Specific Functionality for China

This chapter provides an overview of category codes for UDCs, and discusses how to:

• Set up user-defined codes (UDCs).

• Set up next numbers.

• Set up corresponding versions.

• Enter additional information for Chinese suppliers.

• Copy UDC values for financial reports.

• Associate the chart of accounts to Chinese reporting codes.

• Set up for VAT (value-added tax) processing.

Understanding Category Code UDCs for Chinese Reports

The chart of accounts that you set up for your business might not be the same as the codes which are required for reporting purposes for cities in China. To report required data to the city governments, you must associate your accounts to the Chinese reporting codes that are required by different cities. You use account category codes to associate your accounts to the Chinese reporting codes. The Account Category Codes table (F0901C) stores values for the account category codes in system 09.

Each financial report for China must be generated in the layout that is specified by the government. JD Edwards EnterpriseOne software delivers separate system 75C UDC tables for each report. The UDC tables contain layout information, such as line numbers and headings for section totals, and reporting code information, such as description of accounts.

Important! The system uses the values in the UDC table lists to generate the financial reports. If you change the values in the Codes field or the Special Handling code field of the UDC, the system does not produce an accurate report. You can change the values in the Description 01 and Description 02 fields.

This table lists the system 75C (China) UDCs that contain the values that you use to specify the layout and, thus, the reporting codes for each report:

The values in the system 75C UDCs exist merely as a method to deliver the Chinese reporting codes and layout information to you; the system does not read the values from system 75C when you run the reports. Before the system can read the values for the reporting codes and layout details, you must copy the values from the system 75C UDC tables to account category codes in system 09. The values must be in system 09 because the values must be associated to your chart of accounts. You can copy the system 75C UDC values to category codes 24 through 43 in system 09.

You copy values from the system 75C UDC tables to the account category codes in system 09 (09/24- 09/43) by running the Copy UDC from F0005 and F0005D program (R090005). The Copy UDC from F0005 and F0005D program copies values from the system 75C UDC tables that you specify in the processing options to the system 09 UDC tables that you specify in the processing options.

After you copy the values to system 09, you use the Accounts program (P0901) to associate the values to accounts in your chart of accounts. The system can then print the amounts from your chart of accounts in the correct place on the report.

What You Should Know About Category Codes for Chinese Reports

Consider these points about category codes for Chinese reports:

• Line numbers for each item are stored in the Special Handling Code field of the category code UDC tables.

• Some amounts on the report must be printed as a reverse of the amounts that appear in the Account Balances table (F0902).

  For example, if an amount in table F0902 is a positive number, it might need to be printed as a negative number on the report. If the amounts in a particular line need to be printed as a reversed number, the Special Handling Code field in the UDC table includes an R before the line number. For example, a value of R10 causes the system to print the amount on line 10 as a reverse of the amount, or sum of the appropriate amounts, in table F0902.

• You specify in a processing option whether the system indicates that a number is a negative number by surrounding the number with parentheses or by printing a minus sign (-) before the number.

• You do not need to associate the section headings or the headings for totals to accounts in your chart of accounts; the system automatically prints the headings in the appropriate places.

• You must print the Chinese financial reports in Simplified Chinese. Some reports are also printed in English. The system stores category code values for Simplified Chinese in table F0005D.

Setting Up UDCs for China

Setting up Chinese-specific UDCs enables you to use Chinese-specific functionality. You also set up some base software UDCs with Chinese-specific values.

Setting Up UDCs for Financial Reports for Beijing, Shanghai, and Guangzhou

These UDCs contain the values that you must copy to system 09 UDC category codes before you generate financial reports for Beijing, Shanghai, and Guangzhou. You use the Copy UDC from F0005 and F0005D program (R090005) to copy the values from the system 75C UDC to system 09. You can copy the UDC values in these UDC tables to any system 09 account category code from 24 through 43, using a different system 09 category code for each system 75C UDC.

Important! Do not change the values in the Codes field in these UDC tables, or in the category code in system 09 to which you copy these values. The system might not produce an accurate report. Additionally, the system will not use any values that you add to these UDC tables.

See Understanding Category Code UDCs for Chinese Reports.

BJ-01 Statement of Tax Payable (75C/B1)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Beijing Statement of Value Added Tax Payable program (R75C10001). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/B1 UDC when you run the Beijing Statement of Value Added Tax Payable program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Beijing Statement of Value Added Tax Payable program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

BJ-02 Yearly Balance Sheet (75C/B2)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Beijing Balance Sheet Yearly program (R75C10002). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/B2 UDC when you run the Beijing Balance Sheet Yearly program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Beijing Balance Sheet Yearly program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

BJ - 04 Income Statement (Ind.) (75C/B4)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Beijing Income Statement (Industrial) program (R75C10004). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/B4 UDC when you run the Beijing Income Statement (Industrial) program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Beijing Income Statement (Industrial) program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

GZ-01 Balance Sheet (75C/G1)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Guangzhou Balance Sheet program (R75C10005). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/G1 UDC when you run the Guangzhou Balance Sheet program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Guangzhou Balance Sheet program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

GZ-02 Income Statement (75C/G2)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Guangzhou Income Statement program (R75C10006). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/G2 UDC when you run the Guangzhou Income Statement program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Guangzhou Income Statement program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

GZ-03 Supplemental Form (75C/G3)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Guangzhou Supplemental Statement program (R75C10007). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/G3 UDC when you run the Guangzhou Supplemental Statement program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Guangzhou Supplemental Statement program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

SH – 01 Balance Sheet Monthly (75C/S1)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Shanghai Balance Sheet Monthly program (R75C10008). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/S1 UDC when you run the Shanghai Balance Sheet Monthly program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Shanghai Balance Sheet Monthly program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

SH-03 Income Statement Monthly (75C/S3)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Shanghai Income Statement Monthly program (R75C10010). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/S3 UDC when you run the Shanghai Income Statement Monthly program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Shanghai Income Statement Monthly program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

SH-04 Income Statement (75C/S4)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Shanghai Income Statement (Commercial) program (R75C10011). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/S4 UDC when you run the Shanghai Income Statement (Commercial) program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Shanghai Income Statement (Commercial) program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

SH – 06 Balance Sheet Yearly (75C/S6)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Shanghai Balance Sheet Yearly program (R75C10012). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/S6 UDC when you run the Shanghai Balance Sheet Yearly program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Shanghai Balance Sheet Yearly program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

SH – 08 Income Statement (Ind.) (75C/S8)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Shanghai Income Statement (Industrial) program (R75C10013). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/S8 UDC when you run the Shanghai Income Statement (Industrial) program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Shanghai Income Statement (Industrial) program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

SH - 09 Income Statement (Serv.) (75C/S9)

This UDC table contains the hard-coded values that correlate to the Chinese reporting codes for the report that is produced by the Shanghai Income Statement (Service) program (R75C10014). It also contains information, such as line numbers, that the system uses to determine the layout of the report.

The system does not read the 75C/S9 UDC when you run the Shanghai Income Statement (Service) program; the values are provided in the UDC so that you can copy them to the system 09 account category code list that you reserve for the Shanghai Income Statement (Service) program. The values must be in a system 09 category code list because the values must be associated with the appropriate accounts in your chart of accounts.

Scaling (75C/SC)

The system uses the Scaling UDC table (75C/SC) to determine how to print numerical values on financial reports for Beijing, Guangzhou, and Shanghai. You specify in a processing option the scaling value, if any, that you want the system to use.

When you choose to scale numerical values, the system divides the numerical values on the report by the scaling amount that you specify. For example, suppose that the amount for an account in the Accounts Balances table (F0902) is 23,929. If you choose to scale the amount by a factor of 1000, the system divides 23,929 by 1000, rounds to the nearest whole number, and prints 24 on the report.

The following table shows examples of scaling amounts:

Setting Up UDCs for Accounts Payable for China

You must enter identical document types in both UDC 00/DT and UDC 00/DV. You must also add the valid values in the Special Handling Code fields in both user defined codes lists.

Document Type - All Documents (00/DT) and Document Type - Vouchers Only (00/DV)

Set up original document types so that you can identify, group, and process similar transactions. In addition to the hard-coded document types that are used throughout the system, you can set up document types that are based on your specific business needs.

In China, you must set up these document types with predefined special handling codes:

To process accounts payable in China, you must set up these document types with predefined special handling codes:

Setting Up UDCs for Invoice Processing

Set up these UDC tables before processing invoices for China:

Header Invoice (75C/CI)

Set up this UDC table with values that the system uses for fields in the header record when you generate the flat file to submit to the Golden Tax system or you cancel printed invoices. You select values from this UDC table when you set the processing options for these programs:

• Cancel Invoice Print (R75C09Z1).

• GUI interface file from A/R (R75C03B1).

• GUI Interface File from Sales Order (R75C421).

Sales Detail (75C/SD)

Set up this UDC table with values that the system uses for field 10 of the interface file that you send to the Golden Tax system. The system concatenates the values in the Description 01 and Description 02 fields when it writes to field 10. You specify a value from this UDC table when you set the processing options for the GUI interface file from A/R program (R75C03B1) and GUI Interface File from Sales Order program (R75C421).

Setting Up UDCs for Financial Reporting in China

Before you financial reporting for China, set up the UDC tables discussed in this section.

XML Financial Report Name (UDC Table 75C/DX)

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Language Required (UDC Table 75C/LR)

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Natural Account Mode (UDC Table 75C/MD)

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Monetary Unit (UDC Table 75C/MU)

The values for this UDC are not hard-coded. Examples in Chinese include:

Values for Item Orientation (UDC Table 75C/ON)

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Operation (UDC Table 75C/OP)

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Document Type - China (UDC Table 75C/DT)

The values for this UDC are not hard-coded. For example:

Setting Up Next Numbers for China

Before you run either the Invoice Print program (R03B505) or the Print Invoices program (R42565), you must set up next numbers for system 75, row 1. You set up next numbers in the Next Numbers Revisions program (P0002).

If you do not set up next numbers for system 75, row 1, the system does not perform any of the JinShui processing.

Setting Up Corresponding Versions for China

Some country-specific functionality requires that you create versions of the same name for a country-specific programs and a base software program. For example, to have the system access the processing options for a country-specific voucher program, you might need to set up a version named XYZ for the country-specific voucher program, and a version named XYZ of the Standard Voucher Entry (P0411) program.

Set up corresponding versions for these programs:

Entering Additional Information for Chinese Suppliers

This section provides an overview of additional information for Chinese suppliers and discusses how to enter additional supplier information.

Understanding Additional Information for Chinese Suppliers

You must enter additional supplier master information for Chinese suppliers. The system uses the country-specific information that you enter to process supplier invoices from the JD Edwards EnterpriseOne system to JinShui. JinShui requires a 10-digit invoice category code. The 10 digits are based on the location and industry of the supplier. The 10 digits are required and are defined as follows:

The system stores the invoice category code in the China Supplier Master Additional Information table (F75C0401).

You use the Supplier Master Additional Information (P75C0401) program to enter the category code for the supplier. The system launches the Supplier Master Additional Information program when you select Regional Info from the Row menu on the Work With Supplier Master Information form.

Forms Used to Enter Additional Supplier Information

Copying UDC Values for Financial Reports for China

This section provides an overview of how to copy UDC values and discusses how to:

• Copy UDC values for Chinese reports.

• Set processing options for Copy UDC from F0005 and F0005D (R090005).

Understanding How to Copy UDC Values

The Copy UDC from F0005 and F0005D program (R090005) copies the UDC values in the User Defined Codes table (F0005) from one Product Code/User Defined Code list to another. For example, you can copy the values from the 75C/G1 UDC table to one of the system 09 category codes that exist for Chinese financial reports (category codes 24-43). When you set the processing options to copy the values from table F0005, the system copies English language values from the UDC table and copies the special handling codes that the system uses for the report layouts.

Note. You must copy the English language values from the system 75C UDCs in table F0005 to the system 09 UDCs in table F0005 that you reserve for each report, even if you do not intend to produce the reports in English. The special handling codes that the system uses to determine the layout of the reports are contained in table F0005; you must copy these values from system 75C to system 09.

When you set the processing options to do so, the system copies the values from the User Defined Codes – Alternate Language Descriptions table (F0005D) from the specified Product Code/User Defined Code list to another. When you set the processing options to copy the values from table F0005D for the UDC tables created for the Chinese financial reports, the system copies Simplified Chinese language values from the system 75C UDC table that you specify to the system 09 category code that you specify. The UDC tables created for the Chinese financial reports are the UDC tables that contain layout information for the Chinese reports, such as 75C/B1, 75C/S1, and 75C/G1.

Before you can generate a financial report in Chinese, you must copy the Chinese language values from the system 75C UDCs in table F0005D to the system 09 UDCs in table F0005D that you reserve for the report. You need to copy only the system 75C values for the reports that you want to use.

When you run the Copy UDC from F0005 and F0005D program, the system produces a report that states whether the copy process was successful.

Example of Copying UDC Values

Suppose you need to submit the Statement of Value Added Tax Payable report in both English and Chinese. You decide to use account category code 09/24 for this report. Copy the values from product code (system code) 75C to product code 09 by completing these steps:

1. Set the processing options in the Copy UDC from F0005 and F0005D program as shown in this table:

   Processing Option	Value
   1. Copy From Product Code	75C
   2. Copy From User Defined Codes	B1
   3. Copy to Product Code	09
   4. Copy to User Defined Codes	24
   5. Copy F0005D Table	1
   6. Copy From Language Code	(The value for Simplified Chinese that exists in the Language UDC (00/LP)).
   7. Copy To Language Code	(The value for Simplified Chinese that exists in the Language UDC (00/LP)). You do not need to complete this option if you complete the Copy From Language Code option.

2. Run the Copy UDC from F0005 and F0005D program.

   The values in table F0005 for UDC 09/24 are now identical to the values in UDC 75C/B1; these values are in English. The values in table F0005D for UDC 09/24 are now identical to the values in UDC 75C/B1; these values are in Chinese.

See Also

Associating Your Chart of Accounts to the Chinese Reporting Codes

Setting Up UDCs for Financial Reports for Beijing, Shanghai, and Guangzhou

Copying UDC Values for Chinese Reports

Select Financial Reports (G75C09), Copy UDC from F0005 and F0005D.

Setting Processing Options for Copy UDC from F0005 and F0005D (R090005)

Processing options enable you to set default values for processing.

Select

Associating Your Chart of Accounts to the Chinese Reporting Codes

The cities of Beijing, Guangzhou, and Shanghai in China require that you report your financial data according to the reporting formats for each city. The chart of accounts for your organization might not correlate to the reporting codes that each city requires. To produce the financial reports in the layout that are required by each city, you must associate your chart of accounts to the reporting codes that are provided by the cities of Beijing, Guangzhou, and Shanghai.

The reporting code information that you need to associate to your chart of accounts is stored in UDC tables in system 75C. Because you must associate your chart of accounts in system 09 to the reporting codes, you must copy the reporting code information from the system 75C UDC tables to the system 09 category code tables that are reserved for this purpose (UDCs 09/24-09/43). After you copy the values in the system 75C UDC tables to the system 09 category code tables, you use the Accounts program to associate the information in the system 09 category codes to the accounts in your chart of accounts.

Example

Suppose you need to submit the three Beijing financial reports. You decide to use account category code 09/24 for the Statement of Value Added Tax Payable report, 09/25 for the Beijing Balance Sheet Yearly report, and 09/26 for the Beijing Income Statement (Industrial).

Complete these steps:

1. Copy the values in UDC 75C/B1 to 09/24, copy the values in UDC 75C/B2 to 09/25, and copy the values from UDC 75C/B4 to 09/26.

2. Use the Account program (P0901) to associate your chart of accounts to the Chinese reporting codes for each of the reports.

   Note. The following steps describe associating your accounts receivable accounts to the value for accounts receivable for the reporting codes for the Beijing Balance Sheet Yearly report. You would take similar steps to associate other accounts to the reporting codes for the Beijing Balance Sheet Yearly report, and to associate the values for accounts for the Statement of Value Added Tax Payable report and the Beijing Income Statement (Industrial) report.

3. For the Beijing Balance Sheet Yearly report, associate the accounts that you have set up in your chart of accounts for accounts receivable to the BJ02-0060 value in 09/25. BJ02-0060 is the value for Accounts Receivable in the Chinese reporting codes.

   To associate the account, you select an accounts receivable account in your chart of accounts on the Work with Accounts form. Then, on the Revise Single Account form, click the Category Codes 21-30 tab, and enter BJ02-0060 for category code 25. Associate each of your accounts receivable accounts to the BJ02-0060 value for category code 25.

4. Associate the remaining accounts from your chart of accounts in the same manner.

What You Should Know About Category Codes

Consider these factors when working with category code accounts:

• The values that you copy from system 75C and then associate to the accounts in your chart of accounts contain the information that the system uses to generate the reports in the required layouts.

  For example, the values contain the headings, line numbers, and whether the account amounts are printed as they appear in the Account Balances table (F0902), or are printed as the reverse of the amounts in table F0902.

• The system displays the values for category codes 09/23 through 09/43 on the Work With Accounts form in the Accounts program, but you cannot perform a query on the category codes from that form.

• You might need to associate more than one of your accounts to a Chinese reporting code value.

  When you associate more that one account to a value, the system sums the amounts in all of the accounts and prints the summed value on the appropriate line on the report. For example, if you associate three accounts from your chart of accounts to the BJ02-0060 value, the system sums the amounts in the three accounts and prints the summed amount on line 6 of the Beijing Balance Sheet Yearly report.

See Also

Setting Up UDCs for Financial Reports for Beijing, Shanghai, and Guangzhou

Copying UDC Values for Financial Reports for China

Printing Account Master Reports for China

Setting Up VAT for China

This section provides overviews of the setup for VAT for free goods, base prices for free goods, and adjustments to VAT base prices; lists prerequisites; and discusses how to set up the base price for VAT on free goods.

Understanding the Setup for VAT for Free Goods

Businesses in China pay both input VAT (for goods supplied) and output VAT (for goods sold).

China requires that you pay taxes on free goods. Free goods are often items that are given away to promote, display, or accompany a product that is ordered.

The amount of VAT paid for free goods is determined by the price of the goods if they were sold. The government and the supplier agree upon the price of free goods. Businesses in China are required to submit the amounts of VAT on free goods to the government tax authority.

Understanding Base Prices for Free Goods

The supplier and the Chinese government agree on the base price of free goods to calculate VAT on those free goods. Use the Free Goods VAT Base Price program (P75C4106) to maintain item base prices that are used to calculate VAT on free goods. The system stores VAT on free goods in the Chinese Free Goods VAT base price (F75C4106) table.

When you enter a sales order, the adjustment schedule sets the pricing unit of measure for the free goods line (UOM4) with the same transaction unit of measure that is defined in the free goods rules. When calculating VAT, the system first retrieves the price that is defined in the pricing unit of measure from the F4211. If the price is not defined for the pricing unit of measure, the system then retrieves the price by using the primary unit of measure.

When you enter base prices in the Free Goods VAT Base Price program, enter the prices with the same item unit of measure that is defined on the free goods adjustment schedule, the item primary unit of measure, or both.

Note. All free goods items must at least have a price defined on the item level to process VAT on free goods.

Understanding Adjustments to VAT Base Prices

Use the Free Goods VAT Base Price program (P75C4106) to maintain item base prices that are used to calculate VAT on free goods. The system stores VAT on free goods in the F75C4106. The Free Goods VAT Base Price program is not used to adjust base prices on any items other than free goods. Alternatively, you use Advanced Pricing to generate free-goods line items automatically.

When you enter a sales order, the adjustment schedule sets the pricing unit of measure for the free goods line (UOM4) with the same transaction unit of measure that is defined in the free goods rules. When calculating VAT, the system first retrieves the price that is defined in the pricing unit of measure from the Sales Order Detail File table F4211. If the price is not defined for the pricing unit of measure, the system then retrieves the price by using the primary unit of measure.

Prerequisites

Before you complete the tasks in this section:

• Set up the tax AAIs.

• Set up the distribution AAI 4290, which is required to process VAT on free goods.

See Also

Setting Up AAIs for Accounts Payable

(CHN) Generating VAT on Free Goods Journal - China Report

Creating Free Goods Adjustments

Forms Used to Set Up and Adjust VAT Base Prices for Free Goods

Entering and Adjusting VAT Base Prices for Free Goods

Access the Base Price Revisions form.