(JPN) Working with Japan-Specific Functionality

This chapter includes overviews of bank ID and bank account validation, accounts receivable draft processing, and the create payment control groups process for Japan, and discusses how to:

• Work with Kagami statements.

• Calculate supplier withholding.

• Process hankin hante payments.

• Process Accounts Payable drafts.

• Process bank information.

• Print financial reports.

• Convert fixed assets to a different depreciation method.

Understanding Bank ID and Bank Account Validation

A bank identification (ID) number identifies the bank with which you have established an account. The bank ID number is included in the customer information that you remit for processing accounts receivable drafts and EFT payments.

You activate bank ID validation routines by setting up the localization country code in your user profile:

Completing the Localization Country Code field on the User Profile Revisions form causes the system to search for a bank ID validation routine, but the validation routine to use is not specified. For example, if you specify Japan in the Localization Country Code field, you can still validate bank IDs for other countries. When you use the Bank Account Cross-Reference program (P0030A), the system uses the value in the Country field on the Mailing tab on the Address Book Revision form to determine which validation to use for the address book record.

The system validates bank code numbers and bank branch codes when you enter bank IDs into the Bank Account Cross-Reference or the Bank Account Information (P0030G) program. The system identifies the customers whose bank information is invalid with an error message.

You can check for missing bank information for customers by running the Bank Account Exception Report (R00314).

The system validates account and bank identification information throughout the draft process:

Bank ID Validation Overrides

You can override bank ID validation for a specific country by adding the country code to UDC 70/BI. The system does not run bank ID validation routines for countries listed in this UDC table.

Understanding Accounts Receivable Draft Processing in Japan

In Japan, banks assign a draft number to all drafts. All queries regarding drafts refer to this bank-assigned draft number. Businesses are required to include the bank-assigned draft number on all draft reporting.

Bank-assigned draft numbers are alphanumeric codes that are not generated by JD Edwards EnterpriseOne software. You can input and revise this number manually. You can also use this number to inquire on drafts in the system.

Use the Reference field to input the draft number. The Reference field is alphanumeric and cannot include any blanks, special characters, or punctuation marks.

The Reference field is included in these programs:

• Enter Our Drafts (P03B602)

• Enter Customer Drafts (P03B602)

• Draft Inquiry (P03B602)

• A/R Draft Remittance Magnetic Tape Format program (R03B672T)

To access the Reference field, locate a draft and click Select. Select Additional Information from the Form menu on the Drafts Entry form.

Understanding the Create Payment Control Groups Process for Japan

You must set up a unique version of the Create Payment Control Groups program to process accounts payable drafts for Japan. Set up the data selection for the version to specify the payment instrument for drafts or bank transactions. To specify the draft payment instrument, select user-defined code D. To specify the bank transaction payment instrument, select user-defined code Q.

Use the processing options for the new version to specify an override bank account number. The system uses the override account number as the short account ID of the draft payables account to which the drafts will be posted.

Set up the data selection for the version to specify your payment instrument for Japanese drafts and the original bank account number on the voucher records.

Processing Bank Transfers

You must also set up a unique version of the Create Payment Control Groups program to process accounts payable bank transfers for Japan. Set up the data selection for the version to specify the payment instrument for bank transfers.

When you run the Create Payment Control Groups program for bank transfers, the system:

• Calculates the appropriate bank charges and consumption tax for each transfer.

• Creates a separate pay item for each transfer to represent the bank charge, consumption tax, and adjustment amounts:

  • Pay item 997 represents the bank charge amount.

  • Pay item 998 represents the consumption tax amount.

  • Pay item 999 represents any adjustment amount.

• Reduces the total payment amount for the transfer by these amounts.

• Prints a report listing the bank charges.

  Note. If you use accounts payable bank transfers for Japan, the system reserves voucher pay items 997, 998, and 999. You cannot use these voucher pay items in the base JD Edwards EnterpriseOne Accounts Payable system.

When you process accounts payable bank transfers for Japan, the system creates these journal entries for each transfer:

• Normal journal

• Bank charge journal

• Consumption tax journal

• Bank charge adjustment journal

To void the bank transfer, you must void all of the associated journals entries.

Working with Kagami Statements

This section provides an overview of Kagami statements and discusses how to:

• Print Kagami statements.

• Set processing options for Kagami Invoice Statement - Japan (R03B5001JP).

Understanding Kagami Statements

In Japan, bank transfers are the most commonly used method of payment. Japanese banks charge a fee for each transfer that a business requests. To help customers avoid excessive bank charges, a monthly summarized invoice, or Kagami, is issued as the general billing procedure for Japanese businesses.

Businesses that use monthly summarized invoicing do not issue invoices for every goods delivery. Instead, businesses establish a monthly cutoff date with the customer and issue one invoice that summarizes all of the customer's business transactions for the prior month.

Kagami statements include this information:

• Bill to name and address for the customer.

• Billing period.

  Although billing periods vary by customer, the beginning of the period must be the day after the last cutoff date. The end of the previous period is the cutoff date.

• Open amount as of the cutoff date.

  The open amount is summarized by sales, cash receipts, adjustments, and so on.

• Detailed information, such as invoice number, item number, and price, from each sales order.

Prerequisite

Verify that you have a next number set up for the summarized invoice number in the JD Edwards EnterpriseOne Accounts Receivable system. For this verification, use the next number for the Statement No. (statement number) field.

See Setting Up Next Numbers for Accounts Receivable.

Printing Kagami Statements

To print Kagami statements, follow the A/R statement process, specifying Kagami Invoice Statement Japan (R03B5001JP) in the Print Program processing option of a copy of the XJDE0002 (Statement Refresh with Draft) version of the Statement Print with Draft program (R03B500X).

Setting Processing Options for Kagami Invoice Statement - Japan (R03B5001JP)

Processing options enable you to specify the default processing for programs and reports.

Print

Use these processing options to customize defaults for Kagami Invoice Statement Print - Japan (R03B01JP).

Process

Use this processing option to customize invoice records when printing the Kagami invoice statement.

Calculating Withholding for Japan

This section provides an overview of the withholding process for Japan and discusses how to:

• Run the Calculate Withholding - Japan report.

• Set processing options for Calculate Withholding - Japan (R7500090).

• Set processing options for Country Specific Processing Options - Japan (P04580JP).

Understanding the Withholding Process

The Calculate Withholding - Japan (R7500090) program calculates the withholding for Japan, updates the status of the existing pay item, and creates these additional pay items:

• A negative pay item for the withholding amount with the same payee, pay status, and due date as the original voucher pay item.

• A positive pay item for the withholding amount using the tax authority in the supplier master record.

  You can specify a different tax authority in the Tax Authority for A/P processing option.

If you leave the Withheld Pay Status Code processing option blank, the system assigns a pay status of H (hold) to pay items for tax authorities, thus enabling you to accumulate withholdings and pay them on a periodic basis.

You use the Withholding Tax Basis processing option to specify whether to calculate the withholding amount based on the gross amount or the taxable amount. If you use the taxable amount to calculate the withholding amount, the system returns an error for any pay item that does not have a taxable amount and does not process that pay item.

To calculate the correct withholding amounts for both taxable and non-taxable amounts, you must run the Calculate Withholding - Japan program twice: once, using the gross amount; and again, using the taxable amount. You can use data selection to select only non-taxable transactions when you run the Calculate Withholding - Japan program using the gross amount, and then run the Calculate Withholding - Japan program using the taxable amount for all remaining transactions. Or, you can run the Calculate Withholding - Japan program using the taxable amount, enabling the program to generate errors for all non-taxable transactions; and then run the Calculate Withholding - Japan program using the gross amount to calculate the withholding amount for those transactions.

The system stores the withholding information in the Withholding Tax Detail - Japan (F750411) table.

Additional results to consider are:

• If you change the default pay status of the original pay item, the system changes the default pay status for the negative pay item.

• The negative pay item offsets the amount of the original pay item when you process the original and negative pay items for payment.

Prerequisites

Before you complete the tasks in this section:

• Set up your suppliers with a payment instrument and withholding tax authority.

  See Setting Up Supplier Information for Japan.

• Set the processing options for Country Specific Processing Options - Japan (P04580JP) using the Interactive Versions program.

• Set the processing options for Calculate Withholding - Japan (R7500090), including the withheld record due date and the rounding.

Running the Calculate Withholding - Japan Report

Select Japanese Localization (G75J), Calculate Withholding - Japan.

Setting Processing Options for Calculate Withholding - Japan (R7500090)

Processing options enable you to specify the default processing for programs and reports.

Process

Taxes

Setting Processing Options for Country Specific Processing Options - Japan (P04580JP)

Processing options enable you to specify the default processing for programs and reports.

Defaults

Processing Hankin Hante Payments for Japan

This section provides an overview of processing hankin hante payments for Japan and discusses how to:

• Run the Automatic Payment Split - Hankin Hante program.

• Set processing options for Automatic Payment Split - Hankin Hante (R75J04PS).

Understanding the Hankin Hante Split Payment Process

Hankin hante is a Japanese payment method to automatically split Accounts Payable payments. Payments over a designated amount are split into two smaller payments of different payment instruments— typically, a bank transfer and a draft. Splitting payments by using the hankin hante method is a general business practice in Japan because it enables companies to improve cash flow by deferring payment.

The Japanese government imposes a stamp tax on bank drafts. The amount of the stamp tax is determined by the draft amount. As a general practice, Japanese businesses split draft payments into two or more smaller drafts so that they pay less stamp tax.

For example, the stamp tax for a draft of 8,000,000 JPY is 2,000 JPY, the stamp tax for a 5,000,000 JPY draft is 1,000 JPY, and the stamp tax for a draft of 3,000,000 JPY is 600 JPY. Splitting an 8,000,000 JPY draft into two drafts of 5,000,000 JPY and 3,000,000 JPY saves 400 JPY in stamp tax.

To split Accounts Payable payments into payments of different types, complete the following steps:

1. Set up your system for hankin hante payments:

   • Define the split amounts for drafts and for bank transfers in the Hankin Hante Split Amounts program (P75J0411).

   • Assign the same payment instrument to each hankin hante supplier.

   • Complete the Draft Ratio field on the Address Book Revision Japan form. You complete this form when you enter additional information for suppliers.

2. Use the Create Payment Control Groups program (R04570) to create preliminary payment control groups.

3. Run the Automatic Payment Split - Hankin Hante program (R75J04PS) in proof mode to review the hankin hante payment splits.

4. Run the Automatic Payment Split - Hankin Hante program in final mode.

5. Run the Create Payment Control Groups program to create payment control groups for the newly split bank transfers and drafts.

6. Run the Work With Payment Groups program (P04571) to write and update draft and bank transfer payments.

7. Run the Batches program (P0011) to review draft and bank transfer payments.

8. Run the General Ledger Post Report program (R09801) to post draft and bank transfer payments to the general ledger.

9. Run the Automatic Draft Split - Hankin Hante (R75J04DS) program in proof mode to review the split of the hankin hante draft payments.

10. Run the Automatic Draft Split - Hankin Hante program in final mode.

11. Run the Bank Draft Number Revision-Japan program (P75301) to update the draft number and change the maturity date.

12. Run the Manual Draft Split - Hankin Hante program (P75J04DS) to manually split drafts that could not be split automatically.

13. Run the A/P Draft Payable List program (R75402) to print the draft report.

14. Run the A/P Drafts Inquiry/Selection program (P04260) to select drafts for settlement.

15. Run the Post Drafts Payable program (R04803) to post the drafts to the general ledger.

Automatically Splitting Payments in Japan

You run the Automatic Payment Split - Hankin Hante program after you run the Create Payment Control Groups program. When you run the Automatic Payment Split - Hankin Hante program in final mode, the system splits hankin hante payments into bank transfers and drafts. You specify in processing options the payment type for hankin hante payments and the payment types for drafts and bank transfer. The system splits the amount for each supplier into bank transfers and drafts according to the split amounts that you set up in the Hankin Hante Split Amounts program and the draft ratio that you specify when you set up the supplier master information.

When the system splits the payment into a draft and bank transfer:

• The vouchers are restored to an unpaid, approved status.

• The payment instrument for each voucher changes to either a draft or bank transfer, and if necessary, the system splits the one pay item into two pay items.

You specify the payment instruments for the hankin hante payments that you want to split and the payment instruments for drafts and bank transfers in the processing options. The hankin hante payment instrument determines which payment workfile records the system selects for processing. In final mode, the system assigns the draft and bank transfer payment instruments to the F0411 table records for each payment that is split into drafts and bank transfers. You set up payment instruments in the Payment Instrument (00/PY) UDC.

When you run the Automatic Payment Split - Hankin Hante program, the system processes only the payment control groups that are at a Write status and that are of the payment instrument type that you specify for hankin hante payments.

You can specify in the processing options the version of the Create Payment Control Groups program that the Automatic Payment Split - Hankin Hante batch process runs as the final step when you run the Automatic Payment Split - Hankin Hante program in final mode. If you do not specify a version for the Create Payment Control Groups program in the Automatic Payment Split - Hankin Hante program, you must run the Create Payment Control Groups process manually.

The report for the Automatic Payment Split - Hankin Hante program includes this information in the detail section:

• Payee number

• Payee name

• Payment type

• Document number

• Company

• Original pay item

• Original amount

• Draft payment

• Bank transfer payment

• New pay items

If you have not set up the F75J04SA table with the payment split amounts, the report prints an error message and the system does not process any records.

Example of Automatically Splitting Hankin Hante Payments

Suppose that your company has defined the split for hankin hante payments in 1,000,000 JPY increments. Suppose further that you set up and assigned a payment type of H to suppliers for hankin hante payments and that you set up the draft ratio for your suppliers as shown in Table 1.

Table 1 (Draft Ratios)

This table shows the draft ratio for your suppliers:

You run the Create Payment Control Groups program to create payment workfile records for H-type payment instruments, and then run the Automatic Payment Split - Hankin Hante program to split the H-type payment records into bank transfers and drafts.

The system splits the payment amount that is due to each supplier according to the split amounts in the F75J04SA table and the draft ratio for each supplier. The system first verifies that the payment amount is at least equal to the lowest split amount in the F75J04SA table. If the payment amount is greater than or equal to the lowest amount in the table, the system processes the amount that is due to the supplier according to the supplier's draft ratio. If the payment amount is not at least the amount of the lowest split amount, the system processes the amount that is due as a draft.

Table 2 (Supplier Payments)

This table shows how the system would split hankin hante payments for the suppliers who are listed in Table 1:

Table 3 (Supplier 5001 Vouchers)

Suppose supplier 5001 has three vouchers that total 4,000,000 JPY:

Supplier 5001 has a draft ratio of 50 percent. This situation means that up to 50 percent of the amount due can be sent as a draft. Since 50 percent of the original amount is equal to one of the levels in the F75J04SA table, the payment is split into a draft of 2,000,000 JPY and a bank transfer of 2,000,000 JPY. The system does the following to accomplish the split:

• Resets PV 1234 001 from payment instrument H (hankin hante) to payment instrument D (draft).

• Splits PV 1235 001 into two pay items.

  Pay item 001 is reset to payment instrument of D (draft) and the amount is changed to 1,000,000 JPY. Pay item 002 has a payment instrument of W (bank transfer) and is 1,000,000 JPY.

• Resets PV 1236 001 from payment instrument H (hankin hante) to payment instrument W (bank transfer).

Table 4 (Supplier 5001 Splits)

This table shows the results of the payment split for supplier 5001:

The total of the original payment amount is 4,000,000. The total of the draft payment is 2,000,000. The total of the bank transfer is 2,000,000.

Table 5 (Supplier 5002 Vouchers)

Suppose supplier 5002 has three vouchers that total 4,000,000 JPY:

Supplier 5002 has a draft ratio of 75 percent. This situation means that up to 75 percent of the amount that is due can be sent as a draft. Since 75 percent of the original amount is equal to one of the levels in the in the F75J04SA table, the system splits the original amount into a draft that is equal to 75 percent of the original amount and a wire transfer that is equal to 25 percent of the original amount. The system does the following to accomplish the split:

• Resets PV 2234 001 and PV 2235 001 from payment instrument H (hankin hante) to payment instrument D (draft).

• Resets PV 2236 001 from payment instrument H (hankin hante) to payment instrument W (bank transfer).

Table 6 (Supplier 5002 Splits)

This table shows the results of the payment split for supplier 5002:

The total of the original payment amount is 4,000,000. The total of the draft payment is 3,000,000. The total of the bank transfer is 1,000,000.

Suppose supplier 5003 has one voucher of 1,500,000 JPY. Supplier 5003 has a draft ratio of 50 percent. This situation means that up to 50 percent of the amount due can be sent as a draft. Since 50 percent of the original amount is less than the lowest split amount in the F75J04SA table, the system splits the original amount into a draft that is equal to 50 percent of the original amount and a wire transfer that is equal to 50 percent of the original amount. The system splits PV 3235 001 into two pay items to accomplish the split. Pay item 001 is reset to payment instrument D (draft), and the amount is changed to 750,000 JPY. Pay item 002 has a payment instrument of W (bank transfer) and is 750,000 JPY.

Table 7 (Supplier 5003 Splits)

This table shows the results of the payment split for supplier 5003:

Suppose supplier 5004 has one voucher of 1,000,000 JPY. Since 1,000,000 is equal to the lowest split amount in the F75J04SA table, the system processes the entire payment as a draft and does not consider the supplier's draft ratio. The system resets PV 4234 001 from payment instrument H (Hankin Hante) to payment instrument D (draft) to process the payment.

Table 8 (Supplier 5004 Splits)

This table shows the result of the R75J04PS process for supplier 5004:

Suppose supplier 5005 has one voucher of 1,000,000 JPY. This supplier has a draft ratio of zero percent, so the system processes the entire amount that is due as a bank transfer. The system resets PV 5234 001 from payment instrument H (hankin hante) to payment instrument W (bank transfer) to process the payment.

Table 9 (Supplier 5005 Splits)

This table shows the result of the R75J04PS process for supplier 5005:

Running the Automatic Payment Split - Hankin Hante Program

Select Japanese Localization menu (G75J), Automatic Payment Split - Hankin Hante.

Setting the Processing Options for Automatic Payment Split - Hankin Hante (R75J04PS)

Process

Select

Versions

Processing Accounts Payable Drafts in Japan

In addition to the base software processes, processing accounts payable drafts in Japan also involves splitting drafts, printing the Stamp Tax Calculation Report - Japan, and entering bank-assigned draft numbers. You can also create drafts using the Payment with Voucher Match program (P0413M) if you need to remit payment to a supplier immediately.

This section provides overviews of splitting drafts in Japan, the Stamp Tax Calculation Report - Japan, and entering bank-assigned draft numbers and discusses how to:

• Manually split drafts.

• Run the Automatic Draft Split - Hankin Hante report.

• Set processing options for Automatic Draft Split - Hankin Hante (R75J04DS).

• Print the Stamp Tax Calculation Report - Japan.

• Set processing options for the Stamp Tax Calculation Report - Japan.

• Enter bank-assigned draft numbers.

Understanding the Process to Split Drafts

You split drafts to minimize the amount of stamp tax that you must pay. In the processing options for the Automatic Draft Split - Hankin Hante program (R75J04DS), you can specify whether the system splits drafts according to the split amounts that you specify in the Hankin Hante Split Amounts table (F75J04SA) or according to the fixed amount that you specify in the processing options. You set up the amounts in table F75J04SA by using the Hankin Hante Split Amounts program (P75J0411).

If you choose to split the drafts using the amounts in the F75J04SA table, you can also select whether to limit the number of splits. When you limit the number of splits, you limit the number of drafts. For example, if you specify that two splits are allowed, the maximum number of drafts is three (the original draft plus the two drafts that are split from the original).

The system processes only pending drafts that have a document type of P1, a pay status of D, and that are eligible for splitting. Eligible drafts are those that have amounts greater than the fixed amount which is specified, if the fixed-amount split method is selected in the processing options, or that have amounts greater than the lowest table-split amount if that split method is selected.

The report for the Automatic Draft Split - Hankin Hante program includes:

• Payee number

• Payee name

• Payment type

• Document number

• Company

• Original pay item

• Original draft amount

• Split draft amounts

• New pay items

The system produces a report when you run the Automatic Draft Split - Hankin Hante program in proof and final mode. Additionally, when you run the program in final mode, the system:

• Splits the original drafts into smaller drafts.

• Retains the original pay item for one draft.

• Creates new pay items for the new drafts.

• Updates the F0411 table with the new draft amount for the original pay item, and the new pay items and amounts for the new drafts.

If you set the Draft Split Method processing option to process splits by using table amounts and you have not set up the table amounts, or you set the processing option to process splits by using a fixed amount and you have not specified an amount in the Fixed Split Amount processing option, the system does not process the splits; the report contains an error message.

Example of Automatic Draft Splits using the Table Amounts Method

Suppose your company has defined split amounts for drafts as shown in this table:

Suppose further that you set the Draft Split Method processing option to process splits using table amounts and do not specify a maximum number of splits. When you run the Automatic Draft Split - Hankin Hante program, the system splits an 18,500,000 JPY draft into four drafts:

• The original draft amount of 18,500,000 JPY is greater than the last (highest) draft split amount of 10,000,000 JPY, so the system changes the amount for that pay item to 10,000,000 JPY.

• The remaining 8,500,000 JPY is greater than the fourth split amount of 5,000,000 JPY, so the system creates a second pay item for 5,000,000 JPY.

• The remaining 3,500,000 JPY is greater than the third split amount of 3,000,000 JPY, so the system creates a third pay item for 3,000,000 JPY.

• The remaining 500,000 JPY is less than the first (lowest) split amount, so the system creates a fourth pay item for 500,000 JPY.

This table shows how the system split the original draft:

If you process the same original draft of 18,500,000 JPY and set the Maximum Number of Splits processing option to 2, the system splits the draft as follows:

• The original draft amount of 18,500,000 JPY is greater than the last (highest) draft split amount of 10,000,000 JPY, so the system changes the amount for that pay item to 10,000,000 JPY.

• The remaining 8,500,000 JPY is greater than the fourth split amount of 5,000,000 JPY, so the system creates a second pay item for 5,000,000 JPY.

• The system creates a third pay item for the remaining 3,500,000 JPY because three is the maximum number of drafts allowed when you set the maximum number of splits to two.

This table shows how the system split the original draft:

Example of Automatic Draft Splits using the Fixed Amounts Method

Suppose that you set the Draft Split Method processing option to process splits using a fixed amount, and you set the Fixed Split Amount processing option to 1,000,000 JPY. When you run the Automatic Draft Split - Hankin Hante program, the system splits a 3,500,000 JPY draft into four drafts:

• The original draft amount of 3,500,000 JPY is greater than the specified split amount of 1,000,000 JPY, so the system changes the amount for that pay item to 1,000,000 JPY.

• The remaining 2,500,000 JPY is greater than the specified split amount of 1,000,000 JPY, so the system creates a second pay item for 1,000,000 JPY.

• The remaining 1,500,000 JPY is greater than the specified split amount of 1,000,000 JPY, so the system creates a third pay item for 1,000,000 JPY.

• The remaining 500,000 JPY is less than the specified split amount of 1,000,000 JPY, so the system creates a fourth pay item for 500,000 JPY.

This table shows how the system split the original draft:

Understanding the Stamp Tax Calculation Report

When businesses in Japan issue drafts for payment, they are required to pay a stamp tax. The tax amount depends on the amount of the draft. Use the Stamp Tax Calculation report to report and remit a stamp tax for each voucher that is paid with a draft. The system generates this report based on the amount of the draft and the information in the Stamp Tax - Japan table (F75013).

Understanding How to Enter Bank-Assigned Draft Numbers

In Japan, banks assign a bank draft number to all draft transactions. Businesses are required to include the bank draft number on all draft reporting.

Bank draft numbers are alphanumeric codes that you can input and revise manually. You can also use the number to review your drafts.

Prerequisite

Set up the Stamp Tax - Japan table (F75013).

See Setting Up the Stamp Tax Table.

Forms Used to Process Drafts for Japan

Manually Splitting Drafts

Access the Split Drafts Pending form.

Running the Automatic Draft Split - Hankin Hante Report

Select Japanese Localization (G75J), Automatic Draft Split - Hankin Hante.

Setting Processing Options for Automatic Draft Split - Hankin Hante (R75J04DS)

Processing options enable you to specify the default processing for programs and reports.

Process

Running the Stamp Tax Calculation Report

Select Japanese Localization (G75J), Stamp Tax Calculation Report - Japan.

Setting Processing Options for Stamp Tax Calculation Report - Japan (R750403)

Processing options enable you to specify the default processing for programs and reports.

Process

Entering Bank-Assigned Draft Numbers

Access the Bank Draft Number Revision form.

Processing Bank Information in Japan

This section provides an overview of Japanese bank transfers and discusses how to:

• Upload Japanese bank and branch information.

• Set processing options for Bank/Branch Table Upload - Japan (R75010A).

• Revise Japanese bank and branch information.

• Enter Japanese bank charges.

Understanding Japanese Bank Transfers

Bank transfers are commonly used in Japan to move funds between bank accounts. The Japanese Bank Association (JBA) has defined detailed standards regarding fund transfers that include:

• Bank transfer tape format.

• Bank charges applied to transfers.

• Consumption taxes assessed on bank charges.

In Japan, businesses can remit payment by electronic or paper bank transfers. To process any bank transfer, banks require:

Bank Charges

Banks levy a service charge on each transfer that they process. The amount of the service charge is based on:

• The actual amount of the transfer (also referred to as the treating amount).

• Whether the transfer is an express or letter transfer.

• Whether the transfer is an internal or external bank transfer.

• Whether the transfer is an internal or external branch transfer.

Either the customer or the supplier agrees to pay the bank charges. The amount of the transfer is the total payment amount minus the bank charges and tax.

In addition, the service charge for each bank transfer is subject to consumption tax. In some cases, the addition of the consumption tax on the amount of the transfer moves the transfer into another treating charge category. When this happens, the transfer becomes subject to a lower service charge, and the business must recognize an adjustment for the transfer.

The bank transfer type is payee-specific and is stored in the F750401 table. You can access the information that is stored in this table by choosing Regional Info from the Form menu of the Supplier Master Information form.

Payor and Payee Bank Account Information

You use the Bank Account Information program (P04130) to set up bank account information for payors and assign a record type of G to the record. You use the Bank Account Cross Reference (P0030) program to set up bank account information for payees and assign a record type of V to the record. The system stores bank account information for payors and payees in the Bank Transit Master (F0030) table.

See Also

Setting Up UDCs for Bank Accounts for Japan

Understanding the Create Payment Control Groups Process for Japan

Forms Used to Set Up Japanese Bank Information

Uploading Japanese Bank and Branch Information

Select Japanese Localization (G75J), Bank/Branch Table Upload.

In Japan, banks and bank branches are identified by a bank number and a branch number. These numbers are assigned to banks by the JBA

You can upload the latest bank and branch information from the JBA into a table on your system. When you process bank transfers, the system validates the bank numbers and branch numbers for each transfer against values in the table.

The Bank/Branch Table Upload program creates the Bank/Branch Master - Japan table (F75010) and prints a report that lists:

• Total number of bank records added.

• Total number of branch records added.

• Total number of records read.

Use processing options to replace all of the existing records in the F75010 table or to add only those records that do not already exist in the table.

Setting Processing Options for Bank/Branch Table Upload - Japan (R75010A)

Processing options enable you to specify the default processing for programs and reports.

File

The two processing options on the File tab are for future use.

Update

Revising Japanese Bank and Branch Information

Access the Bank/Branch Revision form.

Entering Japanese Bank Charges

Access the Bank Charge Revision form.

Treating Amount	Enter the amount of the payment in the JD Edwards EnterpriseOne Accounts Payable system. In the JD Edwards EnterpriseOne Accounts Receivable system, the amount of the receipt. This amount must balance to the total amount applied to the invoice pay items.
In-Branch Charge	Enter the bank charge fee assessed when the payor's bank account and the payee's bank account are in the same branch and bank.
In-Branch C-Tax	Enter the consumption tax assessed on the bank charge when the payor's bank account and the payee's bank account are in the same branch and bank.
Ex-Branch Charge	Enter the bank fee that is assessed when the payor's bank account and payee's bank account are in different branches of the same bank.
Ex-Branch C-Tax	Enter the consumption tax assessed on the bank charge when the payor's bank account and the payee's bank account are in different branches of the same bank.
Express-Trans Charge	Enter the bank charge for a type E bank transfer (Express Transfer). This charge is assessed when the payor's bank account and the payee's bank account are in different banks.
Express-Trans C-Tax	Enter the amount of consumption tax assessed on a bank charge for bank transfer types E (Express Transfer). A bank charge is assessed when the payor's bank account and the payee's bank account are in different banks.
Letter-Trans Charge	Enter the bank charge for type L bank transfers (Letter Transfer). This charge is assessed when the payor's bank account and the payee's bank account are in different banks.
Letter-Trans C-Tax	Enter the consumption tax amount assessed on the bank charge for a type L bank transfer. This tax is assessed when the payor's bank account and the payee's bank account are in different banks.

Printing Financial Reports for Japan

This section provides overviews of balance sheets and income statements and discusses how to:

• Run the Income Statement program.

• Set processing options for Income Statement (R75J211B

• Run the Balance Sheet report.

• Set processing options for Balance Sheet (R75J111B).

Understanding Balance Sheets for Japan

Balance sheets are often printed to show the year-to-date (YTD) net income or loss at the end of the equity section. In Japan, balance sheets must be printed so that the YTD net income or loss appears as a component of the retained earnings within the Equity section of the report.

Before you can print a balance sheet in the format required in Japan, you must set up a new account in your chart of accounts, and set up an automatic accounting instruction (AAI) to write the YTD income or loss to the new account.

When you set up the new account you must:

• Set up a non-posting account.

• Set up an account that is sequenced within your chart of accounts so that the account is included in the subtotal for retained within the Equity section of the balance sheet report.

• Set up an account that is sequenced within your chart of accounts so that the account is included in the subtotal for retained within the Equity section of the balance sheet report.

See Setting Up AAIs for General Accounting.

Understanding the Income Statement by Company for Japan

The Income Statement program tracks revenues and expenses and the net income or loss for a specific period of time. Use this program to print a report that provides subtotals for the AAIs by company.

Note. Use the Simple Income Statement program (R10211B) to print a report of AAI subtotals by business unit.

To print a the income statement, all of your profit and loss accounts must be grouped together in your chart of accounts and cannot be interrupted by any balance sheet accounts. The system uses AAI item FSxx to establish the optimal interim totals on the income statement. If the system does not find the AAIs for a specified company, then it looks for the parent company’s AAIs.

Some examples of special interim totals include:

• Gross Margin

• Net Profit Before Taxes

• Net Income (Loss)

You must select the object accounts that you want to include on the report. For example, if your profit and loss accounts begin with object account 5000, select an object account greater than or equal to 5000.

The Japan income statement report uses data sequencing in the same manner as the Simple Income Statement program.

See Generating a Simple Income Statement.

Running the Balance Sheet Report

Select Japan Localizations (G75J), Balance Sheet.

Setting Processing Options for Balance Sheet (R75J111B)

Processing options enable you to specify default processing values.

Date

LOD (Level of Detail)

Signs

Computations

Headings

AAIs

Running the Income Statement Program

Select Japan Localizations (G75J), Income Statement.

Setting Processing Options for Income Statement (R75J211B)

Processing options enable you to set default processing values.

Date

LOD (Level of Detail)

Signs

Calculations

Headings

Converting Fixed Assets to a Different Depreciation Method

This section provides overviews of depreciation for assets acquired on or before March 31, 2007 and depreciation for assets acquired on of after April 1, 2007; lists prerequisites, and discusses how to:

• Run the Assets acquired on or before March 31 - 2007 program.

• Set processing options for Assets acquired on or before March 31 - 2007 (R75J501).

• Run the Assets Acquired On or After April 1 - 2007 program.

• Set processing options for Assets Acquired On or After April 1 - 2007 (R75J502).

Understanding Depreciation for Assets Acquired on or Before March 31, 2007

The Japanese government changed the rules under which you depreciate some assets. Assets that you acquired on or before March 31, 2007 that have depreciated less than a certain percentage of their value will continue to use the existing depreciation rules. Assets that you acquired on or before March 31, 2007 that have depreciated so that their depreciable balance is five percent or less than the asset acquisition cost can be converted to a new depreciation method and depreciated a further amount.

You run the Assets acquired on or before March 31 - 2007 program to change the depreciation schedule. When you run the Assets acquired on or before March 31 - 2007 program, the system selects the records in the Asset Master File table (F1201) to process using this selection criteria:

• Date of asset acquisition.

  The asset must have been acquired on or before March 31, 2007. Data selection in the ZJDE0001 version of the Assets acquired on or before March 31 - 2007 program has this value set. You should not change this value, and should use the identical value in any versions that you create.

• Disposal date.

  The asset is not selected for processing if a disposal date exists for the asset.

• Asset not previously processed.

  The asset must not be marked as previously processed, as the system processes a record only once. The information about the processed status is stored in an asset master category code that you specify in the processing options.

• Asset depreciable balance is at or below the percentage that you specify in a processing option.

  For example, if you specify 10 in the Threshold % processing option, the system selects assets that have depreciated 90 percent or more.

When you run the program in final mode, the system validates certain conditions and updates tables with the new asset data. The conditions that the system validates are:

• The year that you entered in the Year processing option is the current year.

• The values for these elements exist in the Depreciation Rules table (F12851) and are a valid combination:

  • Depreciation method

  • Computation method

  • Life months

  • Initial term apportionment code

When you run the program in final mode, the system updates these fields with the data that you specify in the processing options:

• Depreciation method field in the Asset Account Balance table (F1202).

• Computation method field in the F1202 table.

• Depreciation life month field in the F1202 table.

  You can specify the life month in a processing option, or set up life months in the Setup for Life Month program (P75J503). If you do not specify a new life month in either the processing option or the Setup for Life Month program, the system does not change the life month.

  See Setting Up Life Months for Asset Conversion.

• Initial term apportionment code in the F1202 table.

  Blank is a valid value for the initial term apportionment code. If you leave the processing option blank, the system updates the table with a value of blank.

• The category code that you specify in the processing options as the category code to use to show that a record was previously processed.

Note. You must run the Assets acquired on or before March 31 - 2007 program before the first depreciation period of the year.

Understanding Depreciation for Assets Acquired on or After April 1, 2007

Assets that you acquired on or after April 1, 2007 that depreciate using a declining-balance depreciation method must change to a straight-line depreciation method. The period in which you make the change to the straight-line depreciation method depends on the useful life of the asset.

Important! You run the Assets acquired on or after April 1 - 2007 program to change the depreciation schedule. The Assets acquired on or after April 1 - 2007 program uses and updates values in the Asset Master File table (F1201) and Asset Balance table (F1202). Before the first depreciation cycle of the year, you must run the Compute Depreciation program (R12855) to update the F1201 and F1202 tables for the ledgers that you use for the guaranteed amount and annual depreciation amount. You then run the Assets acquired on or after April 1 - 2007 program to update fields in the tables, and then run the Compute Depreciation program again to use the updated values that were generated by the Assets acquired on or after April 1 - 2007 program.

The system will select an asset to process only once, so you do not need to run the Assets acquired on or after April 1 - 2007 program after you have processed all of the assets that need to be converted to a new depreciation method.

When you run the Assets acquired on or after April 1 - 2007 program, the system selects the records in the F1201 table to process using this selection criteria:

• Date of asset acquisition.

  The asset must have been acquired on or after April 1, 2007. Data selection in the ZJDE0001 version of the Assets acquired on or after April 1 - 2007 program is set to select assets that were acquired on or after April 1, 2007.

• Disposal date.

  The asset is not selected for processing if a disposal date exists for the asset.

• Asset not previously processed.

  The asset must not be marked as previously processed as the system processes a record only once. The information about the processed status is stored in an asset master category code that you specify in the processing options.

When you run the Assets Acquired On or After April 1 - 2007 program to change the depreciation schedule, you set processing options to specify the values to which the system updates these characteristics:

• Depreciation method in the F1202 table.

• Depreciation life month in the F1202 table.

• Computation method in the F1202 table.

• Initial term apportionment code in the F1202 table.

• Asset category code in the F1201 table.

  You specify the category code that the system uses to indicate that an asset record was processed by the Assets Acquired On or After April 1 - 2007 program. The system does not reprocess records that indicate that they have been processed.

• Book value in the F1201 or F1202 table.

Prerequisites

Before you run the Assets Acquired On or After April 1 - 2007 program, run the Compute Depreciation program (R12855) to update the ledgers used for the guaranteed amount and annual depreciation amount in the F1201 table.

Running the Assets Acquired Before March 31, 2007 Program

Select Japanese Fixed Assets (G75J12), Assets acquired on or before March 31 - 2007.

Setting Processing Options for Assets Acquired Before March 31 - 2007 (R75J501)

Processing options enable you to specify default processing values.

General

Values

Running the Assets Acquired On or After April 1 - 2007 Program

Select Fixed Assets Localization - Japan (G75J12), Assets Acquired On or After April 1 - 2007.

Setting Processing Options for Assets Acquired On or After April 1, 2007 (R75J502)

Processing options enable you to specify default processing values.

General

Values