(ITA) Working With Functionality for Italy

This chapter provides overviews of petrol card expenses, prepayments for Notula, the process for calculating withholding taxes, invoices for free goods, bank account and bank ID validation, and debit and credit notes for Italian tax reporting; and discusses how to:

Verify account balances.
Close a fiscal year.
Prepare the Fixed Assets Legal report.
Enter bank account information.
Revise withholding taxes.
Associate vouchers to debit notes
Associate sales order invoices to credit notes
Associated accounts receivable invoices to credit notes

Understanding Accounting for Petrol Card Expense Reports for Italy

In Italy, sales of petrol in petrol stations for cars and trucks do not have to be invoiced, even though petrol is VAT taxable. Every time that VAT subjects (professionals or companies) buy petrol for business purposes at a petrol station, they have to fill out a form called scheda carburante (petrol card) that documents the amount of the sale, including VAT.

Because petrol stations cannot issue invoices, the petrol card is the only document that enables VAT subjects to document the payable VAT. The card is also used when filing the annual tax declaration as proof of costs sustained by the subjects.

The petrol card is used when companies assign cars to employees. Every month employees who use company cars must attach the petrol card for the month to an expense report. The law requires the subjects to enter the kilometers traveled by each vehicle during the period on the petrol card for fiscal audit purposes. Use the Units field on the Journal Entry form to enter this amount.

The Accounts Payable employee who is responsible for expense reports management must enter all of the data that is contained on the petrol card for VAT and tax declaration purposes. Assign a specific document type when entering petrol cards in JD Edwards EnterpriseOne Accounts Payable system.

Many possible methods for accounting for petrol cards are used:

Method	Description
Enter the employee expense report.	Debit - Transit account. Credit - Payable to Employee account.
Post the petrol card in the JD Edwards EnterpriseOne Accounts Payable system.	Debit - Purchases (Petrol) account. Credit - Petrol Card (dummy supplier) account.
Close petrol debt.	To close the debt to the dummy supplier (Petrol Card account), use the manual payment process and replace the Bank account with the Transit account that you used when entering the employee expense report. Debit - Petrol Card (dummy supplier) account. Credit - Transit account.

Understanding Prepayments for Notula in Italy

Notula is the document used to defer the VAT. You can use the system to process notula for specific stages in the prepayment process:

Step in Prepayment Process	Description
Enter prepayment voucher	When you enter prepayment vouchers for notula, you: Use a version of the Voucher Entry program for prepayments. Use a special document type. Enter a tax explanation code of E for exempt. Enter a tax rate with a zero percent tax rate.
Record payment	To record the voucher as paid, you use manual payment with voucher match for the voucher without VAT.
Enter standard voucher	Enter a standard voucher with a normal tax explanation code and tax rate. When the system determines that the supplier for the voucher is subject to withholding, the system displays the withholding window. Use the form to select the matching notula document for the voucher. The system retrieves the VAT amount along with the withholding tax amount. Distribute as usual. When you post the voucher, the system updates the tax table.
Close the amounts	Enter a second payment to close the amounts in the Accounts Payable Ledger table (F0411).

Understanding the Process for Calculating Italian Withholding Taxes

The system processes withholding tax at specific stages of the automatic payment process:

Stage	Description
Create payment control groups	When you create a payment control group that includes vouchers which are subject to withholding tax, the system updates the Discount Taken field in the A/P Payment Processing - Summary (F04572) table and the Payment Processing - Detail (F04573) table with the withholding tax amount from the Withholding Tax Detail - Italy (F74411) table. The system calculates the payment amount by subtracting the withholding tax (discount) from the gross amount.
Work with payment control groups	When you reset or remove individual vouchers from the payment control group, the system removes the withholding tax amount from the Discount Taken field in the F04572 table and the F04573 table. At this point in the process, the system does not update the Accounts Payable Ledger (F0411) table and does not impact the voucher records.
Update payment group	When you update the payment group, the system changes the payment status of the withholding tax to 1 (payment made to supplier) in the F74411 table. The system also updates the F0411 table with the amount in the Discount Taken field for the withholding tax amount.

Technical Considerations for Processing Withholding Tax Payments

When processing withholding tax payments, consider:

Feature	Description
Prompt payment discounts	You cannot use prompt payment discounts with withholding tax because the withholding tax amounts are stored in the prompt payment discount fields. Accounts Payable prompt payment discounts are not used in Italy.
Split payment control groups	You cannot split a payment control group to exclude part of a voucher because this action creates a new pay item on the voucher.

Feature

Description

Prompt payment discounts

You cannot use prompt payment discounts with withholding tax because the withholding tax amounts are stored in the prompt payment discount fields.

Accounts Payable prompt payment discounts are not used in Italy.

Split payment control groups

You cannot split a payment control group to exclude part of a voucher because this action creates a new pay item on the voucher.

Understanding Manual Payments for Italy

When you record a payment, the system determines whether the supplier is subject to withholding tax, based on the information that you set up for the supplier. If the supplier is subject to the tax, the system displays the voucher information and updates the Discount Taken field with the withholding tax amount.

The Discount Taken field should be blank at the time that you record the payment. If the Discount Available field contains an amount, the system replaces this amount with the withholding tax amount that is calculated at payment entry time.

Important! Italian companies that manage withholding tax within the JD Edwards EnterpriseOne system are not able to apply discounts on the invoice.

Understanding Draft Collection in Italy

In Italy, companies typically do not consider a draft paid until the bank sends verification of the actual payment. In this case, the preferred practice for collecting a draft is to set the processing options for the Draft Collection with Status Update program (R03B680) so that the program does not automatically create journal entries. Instead, it updates the payment instrument for the draft to an intermediate status. The intermediate status indicates that payment for the draft has been requested from the bank, but it has not actually been received. When the bank verifies the payment of the draft, you can create and post a manual journal entry for the payment. Then you run the Draft Collection with Status Update program for the draft again to update the payment instrument for the draft to a paid status.

See Also

Collecting Drafts

Understanding Invoices for Free Goods

Invoices for free goods have a zero value. In Italy, invoices for free goods must be entered into the system for fiscal and VAT reporting purposes.

When you enter invoices for free goods into the system, the first pay item represents the taxable amount with the relevant tax rate. You enter this pay item with a tax explanation code of V (VAT). The second pay item represents the gross amount (negative). To calculate the gross amount, add the first pay item taxable amount and the VAT amount. Enter the second pay item with a tax explanation code of E (exempt) with a tax rate of zero.

This table provides an example of an invoice for free goods:

Pay Item	Gross Amount	Taxable Amount	Tax Amount	Tax Rate Code	Tax Explanation Code
001		1000	200	IT20	V
002	–1200			IT00	E

The total invoice value is zero, and the invoice can be posted to update the Taxes table (F0018). The G/L distribution debits the Cost of Goods Sold account and credits a specific expense account for free goods.

To close the invoice, record a cash receipt through the Standard Receipt Entry program (P03B102).

Understanding Bank Account and Bank ID Validation

In Italy, businesses that remit incorrect or incomplete bank identification or account information to the bank are subject to fees. To avoid these charges, businesses must carefully validate bank identification and account information that is entered into the system during data entry.

You can set up your system to automatically validate account information when you use these programs:

Bank Account Cross-Reference (P0030A).
Bank Account Information (P0030G).
Bank Revision - Italy (P7430IT).
Enter Customer Drafts (P03B602).
Pre-Authorized Drafts (R03B671).
A/R Magnetic RIBA Draft Remittance Tape Format (R03B672IT).

The system validates account information based on the Bank ID - Italy table (F74030).

Italian banks assess a service charge when invalid account or bank identification numbers are included in the customer information that businesses remit for processing accounts receivable drafts (RiBa) and automatic payments.

Italian bank identification information consists of a transit code, which includes two 5-character segments:

The Bank Code (ABI).
The Bank Branch Code (CAB).

The ABI segment identifies the bank (for example, Banco di Napoli) and is followed by the CAB segment, which identifies the branch (for example, Banco di Napoli - Positano).

The Banca d'Italia maintains and updates valid bank identification numbers. Individual banks can provide their clients with the updated information on tape or diskette.

The JD Edwards EnterpriseOne system supports the COMIT format and ships the Bank ID - Italy table (F74030) with the localized software for Italy. You must upload the bank information that is provided by Banca d'Italia to this table. After you upload the information, you can make your own revisions to the bank table as needed.

To validate bank identification information, the system validates bank codes and branch codes when you:

Set up bank account information.
Enter accounts receivable drafts.
Generate pre-authorized accounts receivable drafts.
Create the accounts receivable drafts remittance table.

The system validates the customer bank information against the valid bank identification information in the F74030 table.

The programs that validate account information and bank identification information are described in this table:

Program	Function
Bank Account Information (P0030G)	The system issues an error on the Revise Bank Information form if bank information is missing or invalid.
Bank Account Cross-Reference (P0030A)	If the Localization Country Code field in the User Profile Revisions form is not blank and the customer, supplier, or employee country code on the Address Book Revision form is IT (Italy), the system issues an error on the Set Up Bank Accounts By Address form if bank information is missing or invalid.
Enter Our Drafts or Enter Customer Drafts (P03B602)	The system issues an error on the Draft Entry form if bank information is invalid.
Pre-Authorized Drafts (R03B671)	The system prints an error report that lists customers with missing or invalid bank information. You can review the list to correct or update the bank information before you generate the drafts.
A/R Magnetic RIBA Draft Remittance Tape Format (R03B672IT)	When you remit drafts, the system validates bank information again and includes the drafts for all of the specified customers in the electronic bank file. The system prints an error report that lists the customers with missing or invalid bank information.

Understanding Debit and Credit Notes for Italian Tax Reporting

Beginning with transactions for 2008, you must include in the annual list of customers and suppliers information about credit notes and debit notes that are created to amend invoices and vouchers.

The additional information about credit and debit notes that you must report includes:

Total taxable amount.
Total related tax amount.
Total nontaxable amount.
Total exempt amount.
Total transactions with VAT (value-added tax) not included on the invoice or voucher.

When you enter credit or debit notes to amend invoices or vouchers in the JD Edwards EnterpriseOne systems, you must identify the invoice or voucher that you modify with the credit or debit note. Because the systems do not require that you associate an invoice or voucher to a credit note or debit note, you must manually create the association, or use a process that automatically associates a credit note to an invoice, as does the Credit Order From History program (P4210, version ZJDE0002). The JD Edwards EnterpriseOne systems include localizations for Italy that enable you to associate an invoice or voucher to a credit or debit note:

When the companies issuing the documents are different.

You set a processing option to enable or disable the ability to associate documents with different companies.
For documents that have different currencies.
When the documents are in different years.

You can associate invoices and vouchers to credit and debit notes from a different year in certain situations only.
For multiple transactions.

You can associate multiple invoices or vouchers to one credit or debit note, and can associate one invoice or voucher to multiple credit or debit notes.

Note. The standard software uses the terms credit memo and debit memo to refer to a certain type of adjustment to an invoice or voucher. The localized software uses the terms credit note and debit note.When referring to the adjustments, the terms note and memo mean the same thing.

See Also

Associating Vouchers to Debit Notes

Associating Sales Order Invoices to Credit Notes

Associating Accounts Receivable Invoices to Credit Notes

Generating the Annual Customer and Supplier List Report

Verifying Account Balances in Italy

This table lists the standard procedures that companies in Italy should perform before month-end reporting is completed.

Procedure	Report	Description	Frequency
Verify that document numbers are in sequence.	Sequential Number Report (R74099A, R74099B, R74099C, and R74099D)	This report shows any interruption in the document number sequence and in the registration date sequence.	Daily
Print a list of all unposted batches.	Unposted Batches Integrity Test (R007011)	This report shows any unposted batches. Post all batches before you verify balances.	Weekly
Verify that the batch detail and batch header information match.	Transactions to Batch Headers Integrity Test (R007021)	This report shows mismatches between batch headers and the individual transactions within the batch. Mismatches might include transactions for which no batch header or posted transactions exist.	Weekly
Balance the AR and GL ledgers.	A/R to G/L by Batch Integrity Test (R03B701)	This report checks the balance between the F03B11 and F0911 tables by batch number. If the Customer Ledger (F03B11) and the Account Ledger (F0911) tables are out of balance, use the Supplier/Customer Totals by Account report (R09450) as an additional verification tool. The report also shows anomalous situations regarding the payment status.	Weekly
Balance the AR and GL ledgers by accounting class.	A/R to Account Balance by Account ID (R03B707)	This report matches the F03B11 table to the Account Balances (F0902) table by accounting class.	Weekly
Balance the AP and GL ledgers.	A/P Original Documents to G/L by Batch Integrity Test (R04701)	This report checks the balance between the Accounts Payable Ledger (F0411) and F0911 tables by batch number. If the F0411 and F0911 tables are out of balance, use the Supplier/Customer Totals by Account report (R09450) as an additional verification tool. The report also shows anomalous situations regarding the payment status. Note. If the Bolle Doganali are entered as prepaid documents, the ledger and the Customs debit account might be out of balance.	Weekly
Balance the AP and GL ledgers by accounting class.	A/P Originals to G/L by Batch Integrity Test (R047001A)	This report matches the F0411 and F0902 tables by offset account.	Weekly
Print trial balance reports.	T/B by Object and Subsidiary (R7409C3) Trial Balance by category code 21, 22, 23 (R70472)	These trial balance reports print by object.subsidiary and by category codes 21, 22, and 23.	Monthly
Print monthly VAT reports.	Monthly VAT Report (R004051)	Print a version of this report for EU VAT purchases to show the currency amounts of your invoices. Print other versions of the report to show the rest of the VAT ledgers.	Per tax regulations

Closing a Fiscal Year in Italy

This section provides an overview of the tasks and the preparation necessary to close a fiscal year in Italy.

Understanding Tasks for Closing a Fiscal Year

In Italy, businesses must complete these tasks at the close of the fiscal year to prepare the year-end balance sheet:

Adjust and integrate journal entries.
Close profit and loss accounts for revenues and expenses that were recorded during the year without carrying over the balance.
Calculate retained earnings.
Close balance sheet accounts on a summary account ending balance sheet and reopen the same balance sheet accounts for the next fiscal year.

During the close of the fiscal year and the preparation of the balance sheet, Italian businesses must run these control reports:

T/B by Object and Subsidiary (R7409C3) or T/B by Category Code (R70472)
G/L Registration Report (R09404)
G/L by Object and Subsidiary (R7409C1)
G/L by Category Code (R70470)

You must run the Trial Balance report in final mode to perform a final annual close as well as to prevent users from entering transactions after a year-end close. In final mode, the records included in the report are flagged in the F0911 table to indicate that they have been printed in final mode. This prevents the records from being printed in final mode again. An error message is printed on the report if any records have been printed in a previous final mode report. New transactions are visible on the report because they are not flagged with the same date as older transactions, which have the date when the report was run in final mode for the closed year. The word Final is printed on every page of a report that is run in final mode.

Note. Because running the Trial Balance report in final mode flags the records as having been printed, you should run the Trial Balance report before the GL reports. Businesses print the GL reports at least once a year for all accounts, typically at the end of the fiscal year.

See Also

Trial Balance Reports

General Journal Reports

Setting Up AAIs for Italy

Preparing the Fixed Assets Legal Report in Italy

This section provides an overview of the Fixed Assets Legal report for Italy and discusses how to:

Prepare the Fixed Assets Legal report.
Set processing options for the Fixed Assets Legal (R7412100) report.

Understanding the Fixed Assets Legal Report

Italian law requires that companies submit Fixed Assets Legal Report - Italy (R7412100) (Registro dei beni ammortizzabili) prior to the final date for filing the tax report (Dichirazione dei Redditi) with the Fiscal Authority. The Fixed Assets Legal Report - Italy must be printed on prenumbered, stamped, and formatted paper.

The Fixed Assets Legal Report is a plain paper report that provides information that is needed to complete the official legal report. The Fixed Assets Legal Report does not comply with specific format requirements.

The Fixed Assets Legal Report includes this information for depreciable assets (both material and nonmaterial assets):

Acquisition date.
Original cost.
Revaluation.
Devaluation.
Accumulated depreciation as of the end of the previous fiscal period.

The anticipated accumulated depreciation (fondo ammortamento anticipato) is displayed separately from the standard accumulated depreciation, when applicable.
The actual depreciation coefficient applied during the fiscal period.
The depreciation expenses for the fiscal period.
The anticipated depreciation expenses for the fiscal period, when applicable.
Disposals (sale or other).

Preparing the Fixed Assets Legal Report

Select Italian Reports (G093152), Legal Fixed Assets Report.

Setting Processing Options for the Fixed Assets Legal Report (R7412100)

Set these processing options to specify the default processing and printing for the report.

Processing

Use these processing options to specify how to process the report.

1. Enter the Legal Company	Specify the code that identifies a specific organization, fund, or other reporting entity. The company code must already exist in the Company Constants table (F0010) and must identify a reporting entity that has a complete balance sheet. At this level, you can have intercompany transactions. Note. You can use company 00000 for default values such as dates and automatic accounting instructions (AAIs). You cannot use company 00000 for transaction entries.
2. Enter the Ledger Type. The default value is 'AA'	Specify the user-defined code (UDC) (09/LT) that identifies the type of ledger, such as AA (Actual Amounts), BA (Budget Amount), or AU (Actual Units). You can set up multiple, concurrent accounting ledgers within the general ledger to establish an audit trail for all transactions.
3. Period	Enter the number indicating the current accounting period. This number, used in conjunction with the Company Constants table (F0010) and the General Constants table (F0009), enables the user to define up to 14 accounting periods. The current period number is used to determine warning messages for posted before and posted after cut off. It is also used as the default accounting period in the preparation of financial reports. Leave blank to use the current period.
4. Fiscal Year	Enter the number that identifies the fiscal year. You can either enter a number in this field or leave it blank to indicate the current fiscal year (as defined on the Company Setup form). Specify the year at the end of the first period rather than the year at the end of the fiscal period. For example, a fiscal year begins October 1, 1998 and ends September 30, 1999. The end of the first period is October 31, 1998. Specify the year 98 rather than 99.
5. Enter the subledger type that indicates the appreciation of the fixed asset	Specify the UDC (00/ST) that is used with the Subledger field to identify the subledger type and how the system performs subledger editing. On the User Defined Codes form, the second line of the description controls how the system performs editing. This is either hard-coded or user-defined. Values include: A: Alphanumeric field, do not edit. N: Numeric field, right justify and zero fill. C: Alphanumeric field, right justify and blank fill.
6. Object Account	Enter the object account for plus values. This portion of a general ledger account refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden. Note. If you use a flexible chart of accounts and the object account is set to 6 digits, it is recommended that you use all 6 digits. For example, entering 000456 is not the same as entering 456 because if you enter 456 the system enters three blank spaces to fill a 6-digit object.
7. Subsidiary	Enter the subsidiary for plus values. This is a subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account.
8. Object Account	Enter the object account for minus values. This portion of a general ledger account refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden. Note. If you use a flexible chart of accounts and the object account is set to 6 digits, it is recommended that you use all 6 digits. For example, entering 000456 is not the same as entering 456 because if you enter 456 the system enters three blank spaces to fill a 6-digit object.
9. Subsidiary	Enter the subsidiary for minus values. This is a subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account.
10. Report by parent	Enter 1 for a report by parent fixed asset. Enter 0 for a report by fixed asset code. The default value is 0.

Printing

Use these processing options to specify how to print the report.

1. Enter the Fixed Asset code to print.

Specify which type of Fixed Asset code to print on the report. Values are:

1: Fixed Asset Code.

2: Unit Number.

3: Lot/serial Number.

The default value is 1.

2. Enter '1' if you do not want to print program name, print date and page numbers

Specify whether to print the program name, print date, and page numbers. Values are:

1: Do not print program name, print date, and page numbers.

Blank: Print program name, print date, and page numbers.

Setting Up Bank Information in Italy

This section provides overviews of Italian bank ID information and bank number conversions and discusses how to:

Upload Italian bank ID information.
Revise Italian ID information manually.
Convert Italian bank numbers.
Set processing options for Italian Bank Number Conversion (R74800).

Understanding Bank ID Information

You can automatically update bank identification information from a tape or diskette to your system. To do so, you must first use a custom program to upload the bank tape or diskette to the Bank Upload - Italy table (F74301), which is a temporary work table. You then run the Bank ID Table Upload - Italy program (R74301) to upload the information from the F74301 table to the Bank ID - Italy table (F74030).

The Bank ID Table Upload - Italy program is based on the COMIT record layout. You might need to customize the program to meet your specific needs.

Understanding Italian Bank Number Conversions

You must run the Italian Bank Number Conversion program (R74800) to move the SIA code from the Bank User Number field to the Reference/Roll Number field in the Bank Transit Master table (F0030).

This conversion is necessary because the SIA code, which formerly was a numeric value, is now an alphanumeric code.

You can run the conversion program in proof or final mode. Proof mode prints a report of all selected GL bank accounts that shows the original value for the Bank User Number and Reference/Roll Number fields. Final mode clears the Bank User Number field, updates the Reference/Roll Number field, and prints the converted values on the report.

Enter the SIA code in the Reference/Roll Number field when entering bank account information in the Bank Account Cross-Reference program (P0030A) and the Bank Account Information program (P0030G).

Form Used to Set Up Bank Accounts

Form Name	FormID	Navigation	Usage
Bank Revision - Italy	W7430ITB	Italian Bank File Processing (G00215), Bank Revision - Italy On Work With Bank - Italy, select a bank code and click Select.	Revise bank identification information manually on an as-needed basis.

Form Name

FormID

Navigation

Usage

Bank Revision - Italy

W7430ITB

Italian Bank File Processing (G00215), Bank Revision - Italy

On Work With Bank - Italy, select a bank code and click Select.

Revise bank identification information manually on an as-needed basis.

Uploading Italian Bank ID Information

Select Italian Bank File Processing (G00215), Bank ID Table Upload - Italy.

Revising Italian Bank ID Information Manually

Access the Bank Revision - Italy form.

Name	Enter the full name of the bank associated with a bank transit number (ABI/CAB). The value in this field is pre-loaded in the Bank ID - Italy table (F74030) and can be maintained in the Bank Revision - Italy program (P7430IT).
Address	Enter the address (street and number) of the bank. The value in this field is pre-loaded in the F74030 table and can be maintained with the Bank Revision - Italy program.
City	Enter the administrative division of the municipality where the bank is located. The value in this field is pre-loaded in the F74030 table and can be maintained in the Bank Revision- Italy program.
Town	Enter the name of the town where the bank is located. The value in this field is pre-loaded in the F74030 table and can be maintained with the Bank Revision - Italy program.
Postal Code	Enter the postal code of the town where the bank is located. The value in this field is pre-loaded in the F74030 table and can be maintained with the Bank Revision - Italy program.
State	Enter a code from UDC table 00/S that specifies the state or province. This code is usually a postal service abbreviation.
Default CAB Location	Enter the default location of the bank branch code (Italian CAB code). The value in this field is pre-loaded in the F74030 table and can be maintained with the Bank Revision - Italy program. Examples of the location are: CAB 1600: Default Milano CAB CAB 1601: Milano Centro CAB 1602: Milano Duomo CAB 1603: Milano Scala
Short Name	Enter a user defined name or remark.

Converting Italian Bank Numbers

Select Italian Bank File Processing (G00215), Italian Bank File Processing.

Setting Processing Options for Italian Bank Number Conversion (R74800)

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

Process

1. Enter '1' to process in final mode or leave blank for proof mode. Final mode will update selected G/L bank accounts in the Bank Transit Number Master (F0030). Proof mode will print the original values for review.

Specify the mode in which to run the report:

Proof mode: Prints the original values for review.

Final mode: Updates selected GL bank accounts in the F0030 table.

Revising Withholding Taxes in Italy

This section provides an overview of revising withholding tax and discusses how to revise withholding tax details.

Understanding Withholding Tax Revisions

You can revise the withholding tax information that the system stores in the Withholding Tax Detail - Italy table (F74411) by using the Withholding Tax Revisions program (P740411). You can also use the Withholding Tax Detail - Italy form to review all of the withholding tax information for a specific voucher.

Important! The information that you revise by using the Withholding Tax Detail - Italy form immediately updates the F74411 table. The system does not recalculate taxes and related amounts. You should revise withholding tax information only in exceptional cases, such as when you must adjust the withholding tax information manually.

If you are implementing the JD Edwards EnterpriseOne Accounts Payable system for the first time, you can use the Withholding Tax Detail - Italy form to load open withholding tax information from your previous system.

Form Used to Revise Withholding Tax

Form Name	FormID	Navigation	Usage
Withholding Tax Detail - Italy	W740411C	Italian Tax Processing (G002131), Withholding Tax Revisions On the Work With Withholding Tax - Italy form, select a record and click Select.	Revise withholding information.

Form Name

FormID

Navigation

Usage

Withholding Tax Detail - Italy

W740411C

Italian Tax Processing (G002131), Withholding Tax Revisions

On the Work With Withholding Tax - Italy form, select a record and click Select.

Revise withholding information.

Revising Withholding Tax Information

Access the Withholding Tax Detail - Italy form.

W/T Code (withholding tax code)

Enter the withholding tax code that defines the withholding tax rates. The system uses this information to calculate withholding tax when you enter supplier vouchers for suppliers that are subject to withholding tax.

Status

Enter the status of the withholding tax. The system stores the status in the F74411 table. Values are:

0: Withholding tax added during voucher entry.

1: Voucher paid to supplier (debt towards fiscal authority).

2: Withholding tax paid to fiscal authority.

9: Withholding tax canceled.

Taxable Amount Subject to W/T (taxable amount subject to withholding tax)

Enter the taxable amount of an invoice/voucher that is subject to withholding tax.

Withholding Tax Amount Paid

Enter the amount of the withholding tax paid.

Withholding Tax Foreign Amount Paid

Enter the foreign withholding tax amount paid in a given currency. You can maintain this field in the Withholding Tax Codes Italy (P740405) program.

Payment Date

Enter the date on which the withholding tax is paid to the government.

Government Date

Enter the date the withholding tax was remitted to the fiscal authority.

Withholding Tax Payment Reference

Enter the number of the payment made to the fiscal authority. This reference is entered in a processing option of the Generate Withholding Tax Payments program.

Associating Vouchers to Debit Notes

This section provides an overview of how to associate vouchers to debit notes and discusses how to:

Set processing options for PO - Localization Voucher Entry (P74Y4411).
Associate a voucher to a debit note.

Understanding How to Associate Vouchers to Debit Notes

You enter vouchers as debit notes in the JD Edwards EnterpriseOne Accounts Payable systems when a supplier sends you a credit.

Beginning with reporting year 2008, you must include in the annual customer and supplier list information about the debit note that modifies a voucher. To include the debit note information, you must associate the debit note to the voucher or vouchers that it modifies. You use an Italy-specific form in the JD Edwards EnterpriseOne Accounts Payable system to create the association between the debit note and the voucher. When the Localization Country Code field in the User Profile Revisions program (P0092) is set to IT (Italy), you can access the Vouchers Related to DN/CN form, which enables you to enter the voucher number of the voucher amended by the debit note.

You can associate a voucher to a debit note at the header or line level. For both the header level and line level, you can enter multiple voucher numbers if all of the vouchers belong to the same year. You can enter related vouchers that belong to different years when:

The vouchers are associated to different debit note lines.
One voucher is associated at the header level and a different voucher is associated at the line level.

The processing options that you set in the PO - Localization Voucher Entry program (P74Y4411) define the information that is required or allowed on the Vouchers Related to DN/CN form. The system also uses these processing options to determine the vouchers from which you can select when you use the search function for the Document Number field on the Vouchers Related to DN/CN form.

Prerequisites

Before you complete the tasks in this section:

Verify that the Localization Country Code field in the User Profile Revision program (P0092) is set to IT (Italy).
Verify that corresponding versions of the Standard Voucher Entry program (P0411) and the PO - Localization Voucher Entry program exist in your system.

Forms Used to Associate a Voucher to a Debit Note

Form Name	FormID	Navigation	Usage
Supplier Ledger Inquiry	W0411G	Supplier & Voucher Entry (G0411), Standard Voucher Entry.	Review and select existing records.
Enter Voucher - Payment Information	W0411A	To work with an existing debit note, select the existing debit note and click Select on the Supplier Ledger Inquiry form. To create a new debit note, click Add on the Supplier Ledger Inquiry form.	Complete the information to create a new debit note, or review and modify an existing debit note. Access the Regional Info options.
Vouchers Related To DN/CN	W74Y4015A	On the Enter Voucher - Payment Information form, select Regional Info from the Form menu to associate a voucher to a debit note at the header level. Select a pay item on the Enter Voucher - Payment Information form and select Regional Info from the Row menu to associate a voucher to a debit note at the line level.	Enter the voucher that is amended by the debit note.

Setting Processing Options for PO - Localization Voucher Entry (P74Y4411)

Select Italian Accounts Payable (G74I04), PO - Localization Voucher Entry.

General

1. Enter Related Vouchers	Enter 1 to enable the entry of related vouchers on the Vouchers Related to DN/CN form. If you leave this processing option blank, the system displays the Vouchers Related to DN/CN form when you select Regional Info from the Form or Row menu on the Enter Voucher - Payment Information form, but the system does not enable you to save information that you enter on the Vouchers Related to DN/CN form; the OK button is disabled.
2. Force to enter Related Vouchers	Enter 1 to require that a related voucher be entered. If this processing option is set to 1 and you do not enter a related voucher on the Vouchers Related to DN/CN form, the system issues an error message.
3. Allow different Address Number	Enter 1 to enable the entry of a voucher that is for a different address book number than the debit note to which you associate the voucher. If you enter 1 for this processing option and attempt to associate a voucher for a different address book number, the system displays an error message.
4. Allow different Company	Enter 1 to enable the entry of a voucher that is for a different company than the debit note to which you associate the voucher. If you leave this processing option blank and attempt to enter a different company, the system displays an error message.

Associating a Voucher to a Debit Note

Access the Vouchers Related to DN/CN form.

Doc Co (document company)	Enter the company for which the voucher was issued. If the Allow different Company processing option is set to 1, the voucher company can be different from the debit note company. If you select a record by using the search function in the Document Number field, the system completes the Document Company field with the document company for the document that you select.
Do Ty (document type)	Enter the document type for the voucher. If you select a record by using the search function in the Document Number field, the system completes the Document Type field with the document type for the document that you select.
Document Number	Enter the voucher number to associate with the debit note. You can use the search function associated with the Document Number field to select a voucher.
Address Number	The system completes this field with the address number associated with the voucher that you select.

Associating Sales Order Invoices to Credit Notes

This section provides an overview of how to associate sales order invoices to credit notes and discusses how to:

Set processing options for PO - Localization Sales Order Entry (P74Y2210).
Associate a sales order invoice to a credit note.

Understanding How to Associate Sales Order Invoices to Credit Notes

You create credit notes in the JD Edwards EnterpriseOne Sales Order Management system to amend invoices for sales order transactions. For example, you might create a credit note when a customer returns goods to you because of damage to the goods.

Beginning with reporting year 2008, you must include in the annual customer and supplier list information about the credit note that modifies an invoice. To include the credit note information, you must associate the credit note to the invoice or invoices that it modifies. You can use the standard software process to generate a credit order from history, or you can use an Italy-specific program in the JD Edwards EnterpriseOne Sales Order Management system to create the association between the credit note and the invoice.

When your Localization Country Code is set to IT (Italy) in the User Profile Revision program, the system displays the Invoices Related to Sales Order form when you select Regional Info from the Form menu on the Sales Order Detail Revisions form. The processing options that you set in the PO - Localization Sales Order Entry program (P74Y2210) define the information that is required or allowed on the Invoices Related to Sales Order form. The system also uses these processing options to determine the invoices from which you can select when you use the search function for the Document Number field on the Invoices Related to Sales Order form.

Note. You must use the Invoice Print program (R42565) when you process credit notes because you must generate one and only one invoice. You cannot use invoice consolidation when you generate invoices for credit notes because the result of invoice consolidation might be invoices for transactions for separate years. You can associate credit notes only to invoices for the same year for sales order transactions.

See Also

Entering Credit Orders

Prerequisites

Before you complete the tasks in this section:

Verify that the Localization Country Code field in the User Profile Revision program (P0092) is set to IT (Italy).
Verify that corresponding versions of the Sales Order Entry program (P4210) and PO - Localization Sales Order Entry program exist in your system.
Run the Update Customer Sales program (R42800) for invoices that you need to associate to credit notes; the systems enables you to select in the Invoices Related to Sales Order form only processed invoices.
Verify that setup for sales orders and credit memos is complete, including AAIs and line types.

Forms Used to Associate a Sales Order Invoice to a Credit Note

Form Name	FormID	Navigation	Usage
Customer Service Inquiry	W4210E	Sales Order Processing (G4211), Sales Order Detail.	Review and select sales order records, or access forms to add a new sales order.
Sales Order Detail Revisions	W4210A	Click Add on the Sales Order Detail form.	Enter the information required for the credit note.
Invoices Related to Sales Orders	W74Y2015A	On the Sales Order Detail Revisions form, select Regional Info from the Form menu.	Specify the invoice to relate to the credit note.

Setting Processing Options for PO - Localization Sales Order Entry (P74Y2210)

Select Italian Sales Order Processing (G74I42), PO - Localization Sales Order Entry (P4210).

General

1. Enter Related Invoices	Enter 1 to enable the entry of related invoices on the Invoices Related to Sales Order form. If you leave this processing option blank, the system displays the Invoices Related to Sales Order form when you select Regional Info from the Form menu on the Sales Order Detail Revisions form, but the system does not enable you to save information entered on the Invoices Related to Sales Order form; the OK button is disabled.
2. Force to enter Related Invoices	Enter 1 to require that a related invoice be entered. If this processing option is set to 1 and you do not enter a related invoice on the Invoices Related to Sales Order form, the system issues an error message.
3. Allow different Address Number	Enter 1 to enable the entry of an invoice that is for a different address book number than the credit note to which you associate the invoice. If you enter 1 for this processing option and attempt to associate an invoice for a different address book number, the system displays an error message.
4. Allow different Company	Enter 1 to enable the entry of an invoice that is for a different company than the credit note to which you associate the invoice. If you leave this processing option blank and attempt to enter a different company, the system displays an error message.

Associating a Sales Order Invoice to a Credit Note

Access the Invoices Related to Sales Orders form.

Doc Co (document company)	Enter the company for which the invoice was issued. If the Allow different Company processing option is set to 1, the invoice company can be different from the credit note company. If you select a record by using the search function in the Document Number field, the system completes the Document Company field with the document company for the document that you select.
Do Ty (document type)	Enter the document type for the invoice. If you select a record by using the search function in the Document Number field, the system completes the Document Type field with the document type for the document that you select.
Document Number	Enter the invoice number to associate with the credit note. You can use the search function associated with the Document Number field to select an invoice.
Address Number	The system completes this field with the address number associated with the invoice that you select.

Associating Accounts Receivable Invoices to Credit Notes

This section provides an overview of associating accounts receivable invoices to credit notes and discusses how to:

Set processing options for PO - Localization Invoice Entry (P74Y3B11).
Associate an accounts receivable invoice to a credit note.

Understanding How to Associate Accounts Receivable Invoices to Credit Notes

You create credit notes in the JD Edwards EnterpriseOne Accounts Receivable system to amend invoices for accounts receivable transactions.

Beginning with reporting year 2008, you must include in the annual customer and supplier list information about the credit note that modifies an invoice. To include the credit note information, you must associate the credit note to the invoice or invoices that it modifies. You use an Italy-specific form in the JD Edwards EnterpriseOne Accounts Receivable system to create the association between the credit note and the invoice. When your User Profile is set to IT (Italy), you can access the Invoices Related to DN/CN form, which enables you to enter the invoice number of the invoice amended by the credit note. You can enter the invoice number for only those invoices processed by the Update Customer Sales program (R42800).

You can associate an invoice to a credit note at the header or line level. For both the header level and line level, you can enter multiple invoice numbers if all of the invoices belong to the same year. You can enter related invoices that belong to different years when:

The invoices are associated to different lines of the credit note.
One invoice is associated at the header level and a different invoice is associated at the line level.

The processing options that you set in the PO - Localization Invoice Entry program (P74Y3B11) define the information that is required or allowed on the Invoices Related to DN/CN form. The system also uses these processing options to determine the invoices from which you can select when you use the search function for the Document Number field on the Invoices Related to DN/CN form.

Prerequisites

Before you complete the tasks in this section:

Verify that the Localization Country Code field in the User Profile Revision program (P0092) is set to IT (Italy).
Verify that corresponding versions of the Standard Invoice Entry program (P03B11) and the PO - Localization Invoice Entry program exist in your system.
Run the Update Customer Sales program (R42800) for invoices that you need to associate to credit notes; the systems enables you to select in the Invoices Related to DN/CN form only processed invoices.

Forms Used to Associate an Accounts Receivable Invoice to a Credit Note

Form Name	FormID	Navigation	Usage
Work with Customer Ledger Inquiry	W03B2002A	Customer Invoice Entry (G03B11), Standard Invoice Entry.	Review and select existing invoices.
Standard Invoice Entry	W03B11A	Select an existing credit memo for which you want to associate an invoice and click Select on the Work with Customer Ledger Inquiry form. Click Add on the Work with Customer Ledger Inquiry form to create a credit note.	Complete the credit note information if you are adding a credit note, or review or modify and existing credit note. Access the Regional Info options.
Invoices Related to DN/CN	W74Y3015B	Select Regional Info from the Form menu on the Standard Invoice Entry form. Select a record on the Standard Invoice Entry form, and then select Regional Info from the Row menu.	Associate an invoice to a credit note at the header level when you select Regional Info from the Form menu. Associate an invoice to a line in a credit note when you select Regional Info from the Row menu.
Batch Control	W0011F	Click OK on the Invoices Related to DN/CN form.	Verify batch information.

Setting Processing Options for PO - Localization Invoice Entry (P74Y3B11)

Select Italian Accounts Receivable (G74I03B), PO - Localization Invoice Entry (P03B11).

1. Enter Related Invoices	Enter 1 to enable the entry of related invoices on the Invoices Related to Sales Order form. If you leave this processing option blank, the system displays the Invoices Related to Sales Order form when you select Regional Info from the Form or Row menu on the Sales Order Detail Revisions form, but the system does not enable you to save information that you enter on the Invoices Related to DN/CN form; the OK button is disabled.
2. Force to enter Related Invoices	Enter 1 to require that a related invoice be entered. If this processing option is set to 1 and you do not enter a related invoice on the Invoices Related to DN/CN form, the system issues a warning message.
3. Allow different Address Number	Enter 1 to enable the entry of an invoice that is for a different address book number than the credit note to which you associate the invoice. If you enter 1 for this processing option and attempt to associate an invoice for a different address book number, the system displays an error message.
4. Allow different Company	Enter 1 to enable the entry of an invoice that is for a different company than the credit note to which you associate the invoice. If you leave this processing option blank and attempt to enter a different company, the system displays an error message.

Associating an Accounts Receivable Invoice to a Credit Note

Access the Invoices Related to DN/CN form.

Doc Co (document company)	Enter the company for which the invoice was issued. If the Allow Different Company processing option is set to 1, the invoice company can be different from the credit note company. If you select a record by using the search function in the Document Number field, the system completes the Document Company field with the document company for the document that you select.
Do Ty (document type)	Enter the document type for the invoice. If you select a record by using the search function in the Document Number field, the system completes the Document Type field with the document type for the document that you select.
Document Number	Enter the invoice number to associate with the credit note. You can use the search function associated with the Document Number field to select an invoice.
Address Number	The system completes this field with the address book number of the invoice you select.

W/T Code (withholding tax code)	Enter the withholding tax code that defines the withholding tax rates. The system uses this information to calculate withholding tax when you enter supplier vouchers for suppliers that are subject to withholding tax.
Status	Enter the status of the withholding tax. The system stores the status in the F74411 table. Values are: 0: Withholding tax added during voucher entry. 1: Voucher paid to supplier (debt towards fiscal authority). 2: Withholding tax paid to fiscal authority. 9: Withholding tax canceled.
Taxable Amount Subject to W/T (taxable amount subject to withholding tax)	Enter the taxable amount of an invoice/voucher that is subject to withholding tax.
Withholding Tax Amount Paid	Enter the amount of the withholding tax paid.
Withholding Tax Foreign Amount Paid	Enter the foreign withholding tax amount paid in a given currency. You can maintain this field in the Withholding Tax Codes Italy (P740405) program.
Payment Date	Enter the date on which the withholding tax is paid to the government.
Government Date	Enter the date the withholding tax was remitted to the fiscal authority.
Withholding Tax Payment Reference	Enter the number of the payment made to the fiscal authority. This reference is entered in a processing option of the Generate Withholding Tax Payments program.