(COL) Setting Up Functionality for Colombia

This chapter discusses how to:

• Set up user-defined codes (UDCs).

• Set up cost accounts for depreciation and inflation adjustments.

• Set up address book information for Colombia.

• Set up payment formats for Colombia.

Setting Up UDCs for Colombia

Setting up Colombian-specific UDCs enables you to use Colombian-specific functionality. You also set up some base software UDCs with Colombian-specific values. This section discusses how to:

• Set up UDCs for tax processing.

• Set up UDCs for accounts payable transactions.

Setting Up UDCs to Use Magnetic Media for Tax Reporting

Set up these UDCs before processing tax records.

Address Book Category Codes (01/xx)

Set up an address book category code with values to associate city names with municipal or department codes. Enter a user-defined value in the Codes field, the city name in the Description 01 field, and the municipal or department code in the Description 02 field for each city for which you report data.

General Ledger Category Codes (09/xx)

You must set up a general ledger category code for each of the formats used to report on general ledger records. The formats used to report on general ledger records are:

• 1011

• 1012

• 1034

For each of these formats set up a system 09 category code UDC table to specify the concepts for each format. Include in the category code values all of the concept codes for the format. For example, for format 1011, set up the same codes as you set up in the DIAN Concepts for Format 1011 (76C/11) UDC table.

Note. Select a category code that allows you to enter a four-digit code. System 09 category codes 21–40 allow you to enter up to 10 characters.

DIAN Concepts for Format 1001 (76C/01)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1001:

DIAN Concepts for Format 1002 (76C/02)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1002:

DIAN Concepts for Format 1003 (76C/03)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1003:

DIAN Concepts for Format 1004 (76C/04)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1004. You must complete the Description 02 column with the percentage of any discounts on payments that apply for the concept.

For example, you might set up these codes:

Concepts for Format 1007 (76C/07)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1007:

DIAN Concepts for Format 1008 (76C/08)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1008:

DIAN Concepts for Format 1009 (76C/09)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1009:

DIAN Concepts for Format 1011 (76C/11)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1011:

DIAN Concepts for Format 1012 (76C/12)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1012:

DIAN Concepts for Format 1034 (76C/34)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1034:

DIAN Document Types (76C/DT)

Set up the document types to identify a legal entity or natural person for tax reporting. You also set up the document type 43 that the system writes to the reports for transactions involving minimal amounts or foreign suppliers.

For example, you might set up these codes:

DIAN Magnetic Media Formats (76C/FM)

Set up this UDC table with the legal formats (reports) required by DIAN.

Person/Corporation Code (76C/PC)

Specify the person or corporation code in the Codes field, and enter the appropriate abbreviation in the Description 02 field. The system uses the values in the Description 02 field on legal reports.

In the Special Handling Code field, enter N for the codes for which the system does not edit the fiscal ID and does not calculate the control digit.

For example, you might enter a code of A with the abbreviation of NIT in the Description 02 field, and enter a code of C with the abbreviation of C.C in the Description 02 field.

• Enter a Y or a 1 for the codes for which the system edits the fiscal ID and calculates the control digit.

• Enter a 2 for the codes for which the system edits the fiscal ID and does not calculate the control digit.

The system uses the values in this UDC when you run the Movements Selection (R76C0110) program.

DIAN VAT Prefixes (76C/VT)

Set up VAT prefixes to identify the G/L offset accounts that are used to account for VAT for purchases and sales that were returned, cancelled, or rescinded. Complete the Codes field with the first two characters of the G/L offset account.

The system compares the first two characters of the G/L offset account in the Tax Detail - Work File (F76CUI02) table to the values in the Codes field when you run the DIAN Sales VAT Discountable Origination by Sales program (R76C3F50) to determine which tax amounts to include when reporting for format 1005, or run the DIAN Sales VAT to Pay Originated by Purchases program (R76C4F60) program to determine which tax amounts to include when reporting for format 1006.

For example, you might set up these codes:

DIAN VAT Withholding Prefixes (76C/VW)

Set up VAT withholding prefixes to identify the G/L offset accounts that are used to account for VAT withholding. Complete the Codes field with the first two characters of the G/L offset account.

The system compares the first two characters of the G/L offset account in the Tax Detail - Work File (F76CUI02) table to the values in the Codes field when you run the DIAN Source Withholding Made program (R76C4F20) to determine which tax amounts to include when reporting for format 1002.

For example, you might set up these codes:

DIAN Writeoff Codes (76C/WO)

Set up write-off codes to specify the reasons for refunds and discounts. The codes that you establish must match the codes that exist in the Reason Code (03B/RC) UDC table. When you run the DIAN Incomes Received program (R76C3F70), the system compares the values in the 76C/WO UDC table to the codes in the 03B/RC UDC table and writes records to the DIAN Formats File by Invoice (F76C4F02) temporary table only when a match between the two UDC tables exists.

Setting Up UDCs for Accounts Payable Transactions for Colombia

Before you process accounts payable transactions for Colombia, set up these UDC tables:

Recycle Voucher (76C/RC)

This UDC specifies the recycling report version that you use for accounts payable and accounts receivable transactions. For accounts payable transactions, enter the version number for the Recycle Recurring Vouchers program (R048101) in the Codes field. In the Description 02 field, enter the version number of the Voucher Entry MBF Processing Options program (P0400047) in which exists the date that the system uses to retrieve the exchange rate for recycled vouchers.

Tax Payer Type (76C/TC)

Tax payer types indicate whether VAT and withholding taxes apply to the third-party for which you are creating an address book record. The system uses this field when creating tax settlements during voucher entry. Examples of values are:

G: Large self-withholding tax payer

H: Large non self-withholding tax payer

A: Common non self-withholding regime

C: Common self-withholding regime

S: Simplified regime

Setting Up Address Book Information for Colombia

This section provides an overview of address book information for Colombia and discusses how to set processing options for Address Book Colombian Additional Information (P76C0101).

Understanding Address Book Information for Colombia

When you enter address book records in Colombia, you complete Colombia-specific information in the Address Book Colombian Add Info program (P76C0101). In addition to entering Colombia-specific information, this program enables you to turn off the validation of the Tax ID number and enter foreign Tax IDs with alpha characters.

To turn off the validation of the tax ID and enter a foreign tax ID that includes alpha characters:

1. Set up a value in the Tax Payer Type UDC table 76C/TC for foreign suppliers that includes E in the Special Handling Code field.

2. Assign the tax payer type to the foreign supplier by entering the value in the Tax Payer Type – Colombia field on the Colombian Additional Information Revisions form.

   The assignment of a tax payer code with a value of E in the Special Handling Code field informs the system to turn off the validation of the tax ID number.

3. Enter the foreign tax ID in the Tax ID – Colombia field on the Colombian Additional Information Revisions form.

   The system enables you to enter the tax ID with alpha characters and does not validate the number.

In addition to completing the fields on the Colombian Additional Information Revisions form, you must complete these fields on the Address Book Revision form in the base software:

See Also

(COL) Entering Additional Address Book Information

How to Validate Tax IDs in Latin American Countries

Setting Processing Options for Address Book Colombian Additional Information (P76C0101)

Set this processing option before you enter company, customer, and supplier information for Colombian companies and individuals. The system uses the values in this processing option for county-specific processing.

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Setting Up Cost Accounts for Depreciation and Inflation Adjustments for Colombia

This section provides an overview of cost inflation adjustments and cost accounts for depreciation, and discusses how to:

• Set up cost accounts for inflation adjustments.

• Set up cost accounts for depreciation adjustments.

See Also

Setting Up Depreciation Default Values

Understanding Cost Inflation Adjustments

For accurate financial reporting and income tax, Colombian companies adjust the cost amounts of their assets for inflation. These adjustments are recorded in fixed asset inflation adjustment accounts according to the government’s requirements. The asset’s adjusted cost, along with the depreciation inflation adjustment, is used to calculate depreciation.

Note. To adjust current period cost adjustment amounts for inflation, make the cost adjustments before you perform inflation adjustment for the current period. Otherwise, make the cost adjustments after you perform inflation adjustment for the current period.

You set up cost inflation adjustments accounts by company, entering the information by each company and cost account and specifying the related credit (monetary correction) and debit accounts that the system uses to generate the inflation adjustment journal entry. If you use only one ledger, the debit account is the cost inflation adjustment account. If you use two ledgers (subledger for inflation adjustments), the debit account is the same as the cost account. In either situation, the credit account is the monetary correction account.

Understanding Depreciation Inflation Adjustment Accounts

You set up depreciation inflation adjustments accounts by company. In the debit account (monetary correction) and the credit account, enter the accounts to be applied in the depreciation inflation adjustments journal entry. If you use only one book, the debit account is the depreciation inflation adjustment account. If you use two books (subledger for inflation adjustments), the debit account can be the depreciation account or the depreciation inflation adjustment account. In either situation, the debit account is the monetary correction account. The system uses the debit and credit accounts to create the inflation adjustment journal entry.

Note. If you do not set up cost accounts in this application, the system does not generate the journal entry.

Forms Used to Set Up Cost Accounts for Depreciation and Inflation Adjustments

Setting Up Cost Accounts for Cost Inflation Adjustments

Access the Adjustment by Inflation to Cost / Deferred Charges Revision form.

Note. If you do not set up cost accounts in this application, the system does not generate the journal entry.

Cost Business Unit	Specify the business unit to which the system charges original acquisition cost and any supplemental capital additions. The system uses a default value for this field based on the business unit that you specify on the Asset Master Revisions form when you create a new asset master record. You can change this default value on the Depreciation Information form only if you have not entered any transactions for the account.
Cost Object Account	Specify the object account to which the original acquisition cost and any supplemental capital additions have been charged. If the asset is a noncapitalized lease, this should be the expense account to which lease payments are charged. This expense account should have default coding instructions set up for method 00 (no depreciation method used).
Cost Subsidiary Account	Specify the subsidiary account to which the original acquisition cost and any supplemental capital additions have been charged.
Debit Business Unit	Specify the debit business unit to which the system charges the accumulated depreciation amount.
Debit Object Account	Specify the debit object account to which the system charges the accumulated depreciation amount.
Debit Subsidiary Account	Specify the debit subsidiary account to which the system charges the accumulated depreciation amount. Subsidiary accounts include detailed records of the accounting activity for an object account.
Credit Business Unit	Specify the credit business unit to which the system charges the accumulated depreciation amount.
Credit Object Account	Specify the credit object account number to which the system charges the accumulated depreciation amount.
Credit Subsidiary Account	Specify the credit subsidiary account to which the system charges the accumulated depreciation amount.

Setting up Cost Accounts for Depreciation Adjustments

Access the Adjustments by Inflation to Depreciation Revision form.

Company	Specify the code that identifies the specific organization, fund, or other reporting entity for which you set up the depreciation inflation adjustment accounts.
Cost Business Unit	Specify the business unit to which the system charges original acquisition cost and any supplemental capital additions. The system uses a default value for this field based on the business unit that you specify on the Asset Master Revisions form when you create a new asset master record. You can change this default value on the Depreciation Information form only if no transactions exist for the account.
Cost Object Account	Specify the object account to which the original acquisition cost and any supplemental capital additions have been charged. If the asset is a noncapitalized lease, this should be the expense account to which lease payments are charged. This expense account should have default coding instructions set up for method 00 (no depreciation method used).
Cost Subsidiary	Specify the subsidiary account to which the original acquisition cost and any supplemental capital additions have been charged.
Debit Business Unit	Specify the debit business unit to which the system charges the accumulated depreciation amount.
Debit Object Account	Specify the debit object account to which the system charges the accumulated depreciation amount.
Debit Subsidiary	Specify the debit subsidiary account to which the system charges the accumulated depreciation amount. Subsidiary accounts include detailed records of the accounting activity for an object account.
Credit Business Unit	Specify the credit business unit to which the system charges the accumulated depreciation amount.
Credit Object Account	Specify the credit object account number to which the accumulated depreciation amount is to be charged.
Credit Subsidiary Account	Specify the credit subsidiary account to which the accumulated depreciation amount is to be charged.

Setting Up Payment Formats for Colombia

This section provides an overview of payment formats and discusses how to set up processing options for Print Automatic Payments - COL (R76C572).

Understanding Payment Formats for Colombia

After you assign payment print programs to payment instruments, you must review and revise, if necessary, the processing options for the formats used by the print programs. The payment print program that you assign to a payment instrument launches the version of the payment format when you process payments. For example, P04572 launches the R04572 program. To make changes to the processing options for the payment formats, access them from the Batch Versions program (P98305), entering R instead of P in the first position of the name of the payment format program. The processing options further define the format of each component of a payment instrument.

JD Edwards EnterpriseOne software provides these payment formats for Colombia:

Setting Processing Options for Print Automatic Payments - COL (R76C572)

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

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