UDCs (user-defined codes)

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

Set up UDCs for:

• Tax processing.

  See Setting Up UDCs for Tax Processing for Italy.

• Supplier withholding taxes.

  See Setting Up UDCs for Withholding Taxes for Italy.

• Annual customer and supplier list.

  See Setting Up UDCs for the Annual Customer and Supplier List.

• European Union reporting.

  See Setting Up UDCs for Intrastat Reporting.

• IPI to print invoices with an attached International Payment Instruction (IPI).

  See Setting Up UDCs for International Payment Instructions.

• Companies:

  • Affiliated Companies (74/AC)

  • Code Number (74/30)

    See Setting Up UDCs for European Companies.

AAIs (automatic accounting instructions)

In addition to the basic AAI setup, set up AAIs to work with the annual close process in Italy and to work with supplier withholding taxes.

See Setting Up AAIs for Italy.

Next numbers

In addition to the basic next number setup, you set up next numbers by business unit / document type to number delivery notes in Italy.

See Setting Up Next Numbers for Delivery Notes.

Companies

You must set up your reporting company with a value of 3 in the Person/Corporation Code field (data item TXC) in the Address Book Revisions program (P01012). When you set up the company with a value of 3, the system enables you to complete both the Tax ID (data item TAX) and the Add'l Ind Tax ID field (data item TX2). You must set up both of these values or the system does not generate the Annual Customer and Supplier List report.

Bank accounts

When setting up bank accounts for Italy:

• Review the overview about bank account validation.

  See Understanding Bank ID and Bank Account Validation.

• Review the overview about using international bank account numbers (IBAN).

  See Understanding International Bank Account Numbers.

• Upload Italian bank ID information.

• Revise Italian ID information manually.

• Convert Italian bank numbers.

• Set processing options for Italian Bank Number Conversion (R74800).

See Setting Up Bank Information in Italy.

Customers and suppliers

You can generate reports for customer and supplier balances.

See Printing Customer/Supplier Balance Reports.

Supplier withholding

To set up to process supplier withholding:

• Set up UDC values.

  See Setting Up UDCs for Withholding Taxes for Italy.

• Set up the data dictionary to track the status of the tax.

  See Setting Up the Data Dictionary for Withholding in Italy.

• Enter withholding tax information for suppliers including the fiscal group code, withholding tax code, individual tax ID code, and the country.

  See Setting Up Supplier Withholding Tax Information for Italy.

• Set up withholding tax codes to define withholding tax rates.

  See Setting Up Withholding Tax Codes.

To work with supplier withholding:

• Review the overview of Italian withholding tax and tax calculations.

  See Understanding the Process for Calculating Italian Withholding Taxes.

• Review and revise withholding taxes if necessary.

  See Revising Withholding Taxes in Italy.

Payment processing

Before processing payments in Italy, set up the payment formats.

See Setting Up Payment Formats for Italy.

To work with payment processing in Italy:

• Review the overview of prepayment processing for VAT.

  See Understanding Prepayments for Notula in Italy.

• Review the overview of manual payments.

  See Understanding Manual Payments for Italy.

Invoice processing

To work with invoice processing in Italy:

• Set up invoice due dates.

  See Setting Up the 30/60/90 End-of-Month Invoice Date for Italy.

• Enter invoices for free goods to enable accounting for VAT.

  See Understanding Invoices for Free Goods.

• Set up corresponding versions of the Standard Invoice Entry program (P03B11) and the PO - Localization Invoice Entry program (P74Y3B11), and set up corresponding versions of the Sales Order Entry program (P4210) and the PO - Localization Sales Order Entry program (P74Y2210) so that you can associate credit notes to invoices.

  See Setting Up Corresponding Versions.

• Associate credit notes to invoices for sales order and accounts receivable transactions.

  See Associating Sales Order Invoices to Credit Notes.

  See Associating Accounts Receivable Invoices to Credit Notes.

In addition to standard invoice processing, you can print invoices with an attached International Payment Instructions (IPI). To print these invoices and attachments:

• Set up UDCs for IPIs.

  See Setting Up UDCs for International Payment Instructions.

• Print invoices with attached IPIs.

  See Printing Invoices with an Attached International Payment Instruction.

Voucher processing

To capture information needed for tax reporting, you must associate debit notes to the vouchers that they modify.

You must also set up corresponding versions of the Standard Voucher Entry program (P0411) and the PO - Localization Voucher Entry program (P74Y4411). The system uses the corresponding versions when you associated debit notes with vouchers.

See Associating Vouchers to Debit Notes.

Accounts receivable draft processing

Before working with accounts receivable drafts in Italy, set up draft remittance formats.

See Setting Up Draft Remittance Formats for Italy.

Monthly and annual close

Before you perform the standard processes to close accounts for a month, in Italy, verify the account balances.

See Verifying Account Balances in Italy.

In addition to the base software processes for the annual close, in Italy:

• Set up AAIs.

  See Setting Up AAIs for the Annual Close Process.

• Complete the tasks necessary to prepare the year-end balance sheet.

  See Closing a Fiscal Year in Italy.

Bank statements

Use the Italian Statement Print program (R03B5002) to print statements for Italy.

See Generating Statements.

Tax processing

Before you work with VAT for Italy:

• Set up UDCs.

  See Setting Up UDCs for Tax Processing for Italy.

• Set up register types and classes for summary VAT.

  See Setting Up Register Types and Classes for Summary VAT.

• Set up an initial VAT balance.

  See Establishing an Initial VAT Balance.

To work with VAT in Italy:

• Use the Petrol Card Expense reports for Italy to account for petrol purchases.

  See Understanding Accounting for Petrol Card Expense Reports for Italy.

• Work with the VAT ceiling, calculate taxes, and generate reports.

  See (ITA) Processing VAT for Italy.

  See (ITA) Reports for Italy.

Fixed assets

In addition to the base processes for fixed assets, in Italy:

• Use the Italy-specific depreciation method.

  See Understanding International Depreciation Methods.

• Generate the Fixed Assets Legal Report.

  See Preparing the Fixed Assets Legal Report in Italy.

Intrastat and other European Union reporting

See (Europe) Setting Up European Union Functionality.

See (Europe) Using European Union Functionality.

Integrity reports

Reports for Italy enable you to:

• Print a list of the general ledger transactions for each month in chronological and sequential order using the G/L Registration Report (R09404).

• Verify the accuracy of transactions in individual account ledgers using the Debit/Credit T/B by Object program (R09473).

• Validate information in legal reports and can be used as the basis for internal auditing using the G/L by Category Code program (R70470).

• Verify the accuracy of transactions in individual account ledgers using the T/B by Category Code program (R70472).

• Validate information in legal reports and can be used as the basis for internal auditing using the G/L by Object and Subsidiary program (R7409C1).

• Verify the accuracy of transactions in individual account ledgers using the T/B by Object and Subsidiary program (R7409C3).

• Generate a report of VAT by tax area code using the VAT Report by Tax Area program (R00400).

• Print monthly reports to document accounts payable and accounts receivable VAT using the Monthly VAT Report (R004051).

• Print a list of the suspended VAT invoices that still need to be paid using the Invoice List Control Report (R74079).

• Review the total amount of VAT that is due to the Italian government using the Print VAT Summary Report (R74093).

See (ITA) Reports for Italy.

Oracle Business Accelerator

The JD Edwards EnterpriseOne Oracle Business Accelerator solution is available for Italy, as well as other countries. The preconfigured data that are part of the Oracle Business Accelerator solution is based on business processes that have been designed according to the best business practices for a specific country and industry.