2 Understanding Localizations for Colombia

This chapter contains the following topics:

• Section 2.1, "How to Validate Tax IDs in Latin American Countries"

• Section 2.2, "(COL and ECU) Tax Explanation Codes for Columbia and Ecuador"

• Section 2.3, "Colombia-Specific Setup and Processes"

2.1 How to Validate Tax IDs in Latin American Countries

The logic for validating tax IDs for customers and suppliers for Latin American users in countries for which localized solutions are available is different from the logic for users in other countries. JD Edwards EnterpriseOne software supports localized software for these Latin American countries:

• Argentina

• Brazil

• Chile

• Colombia

• Ecuador

• Mexico

• Peru

• Venezuela

The standard logic for validating tax IDs uses the country code of the customer or supplier, along with values in the Tax Id Validation (70/TI) user-defined code (UDC) table. For the Latin American countries, the logic uses the user's country code as set up in the User Profile Revisions program (P0092) when:

• The user's country code is different from the supplier or customer country code, and

• The user's country code is for a supported Latin American country.

For example, if the user's country code is AR (Argentina) and the supplier's country code is IT (Italy), the system:

1. Verifies that the IT value exists in the 70/TI UDC table.

2. Uses the validation routine for Argentina instead of the validation routine for Italy.

Note: If both the user country code and the supplier or customer country code are in supported Latin American countries, do not set up the 70/TI UDC table with values for the supplier or customer country codes. For example, if the user is in Brazil, and the supplier is in Argentina, do not set up a value of AR in the 70/TI UDC table. Because the AR value does not exist in the 70/TI UDC table, the system will use the tax ID validation for the supplier's country (Argentina).

2.2 (COL and ECU) Tax Explanation Codes for Columbia and Ecuador

Colombian and Ecuadorian localizations use four tax explanation codes from the Tax Explanation Codes (00/EX) UDC table:

• C: VAT + Sales tax

• V: VAT

• CT: VAT + Sales tax, tax only

• VT: VAT, tax only

These tax explanation codes are hard-coded for the JD Edwards EnterpriseOne Accounts Payable and JD Edwards EnterpriseOne Accounts Receivable systems.

See Also: "Understanding Tax Explanation Codes" in the JD Edwards EnterpriseOne Applications Tax Processing Implementation Guide.

2.3 Colombia-Specific Setup and Processes

This table lists the country-specific setup and functionality for Colombia:

Setup or Process	Description
UDCs (user-defined codes)	Set up base-software UDCs with Colombia-specific values, and set up Colombia-specific UDCs for: Vouchers and invoices. Address book records for Columbia. Tax processing. Reporting taxes using magnetic media. See Setting Up UDCs for Colombia.
AAIs (automatic accounting instructions)	No Columbia-specific AAI setup exists.
Next numbers	The electronic tax reporting process requires that you set up next numbers for the header of the XML files and for each format. Set up the next number for the header in system 76C in the Next Numbers program (P0002). Set up the next number for the individual formats in the Sending Number field on the Format Setup Revision form in the DIAN General Setup program (P76C0F00). See "Setting Up Next Numbers" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.
Voucher and invoice processing	Before you work with voucher and invoice processing for Colombia set up UDCs 76C/RC and 76C/TC. For vouchers that are saved in a foreign currency, the recycling process uses the exchange rate that corresponds to the invoice or the accounting date as defined in the master business functions (MBFs) for the voucher. The system reads the values in the Recycle Voucher UDC (76C/RC) to determine the version to use. See Setting Up UDCs for Accounts Payable Transactions for Colombia. See "Understanding Recurring Vouchers" in the JD Edwards EnterpriseOne Applications Accounts Payable Implementation Guide.
Address book records	The logic for validating tax IDs for customers and suppliers is different in the Address Book Revisions program (P01012) for users in the Latin American countries supported by JD Edwards EnterpriseOne software. See How to Validate Tax IDs in Latin American Countries. In addition to the base software setup and processes for address book records, for Colombia: Enter additional information for address book records. See "Setting Up Address Book Information for Colombia". Set processing options for Address Book Colombian Additional Information (P76C0101). See Setting Processing Options for Address Book Colombian Additional Information (P76C0101). Set up UDCs. See Setting Up UDCs for Accounts Payable Transactions for Colombia.
Fixed assets	In addition to the base software setup and processes for fixed assets, for Colombia you must set up: Cost accounts for depreciation. Cost accounts for inflation. See Setting Up Cost Accounts for Depreciation and Inflation Adjustments for Colombia. Country-specific functionality includes: Calculating depreciation adjustments for inflation. Calculating the end of useful life. Calculating cost inflation adjustments. See Working with Fixed Assets for Colombia.
Payment processing	In addition to the base software setup and processes for payment processing, for Colombia set up payment formats. See Setting Up Payment Formats for Colombia.
Fiscal book reports	You can generate reports for Colombia to report fiscal information. See Reports for Colombia.
Reporting taxes using magnetic media	To use the JD Edwards EnterpriseOne system to report taxes: Set up the formats required. Generate information for each of the formats. Generate the XML file to send to report taxes. See Understanding Tax Reporting Using Magnetic Media in Colombia.