This chapter contains the following topics:
You must report VAT for the transactions in which you purchase VAT-taxable goods. The JD Edwards EnterpriseOne system provides a process to generate the reports for VAT in Hungary. You must include in the VAT reports the tax, taxable, nontaxable, and gross amounts in Hungarian forints (HUF). The reclaimable amount that you report cannot exceed the amount shown on your suppliers' invoices.
Invoices that are generated in a foreign currency must also include the amounts in HUF. If your supplier used a different currency exchange rate than the rate that exists in your system, the calculated amounts in HUF that appear on the invoice might be different from the amounts that the system calculates when you enter a voucher for the invoice.
The JD Edwards EnterpriseOne system provides a Hungarian-specific program that you use to review the amounts that the system calculated and saved to the F0411 table. If the amounts that the system calculated differ from the amounts that appear on the supplier's invoice, you can change the exchange rate for the transaction and recalculate the amounts. The system saves the new amounts to the F0411 table and the Hungarian-specific table — the Foreign Vouchers Supplier Amounts table (F74H410).
When you use the Standard Voucher Entry program (P0411) or the Voucher Match program (P4314) to enter voucher amounts in a foreign currency, the system calls the Supplier Amounts for Foreign Vouchers program (P74H410), which displays the voucher amounts that are calculated by the system in both domestic and foreign currency. If necessary, you can change the amounts or the exchange rate so that the amounts saved to the system match the amounts calculated by the supplier. The system saves information for foreign currency transactions to the F74H410 table. The system uses the values in the F74H410 table when you generate VAT reports.
For posted vouchers, you can print the VAT amount differences and automatically generate the journal entries associated with these differences. For posted and unposted vouchers, you can print the differences in the VAT amount that you calculate and the VAT amount that your supplier calculated on invoices in a foreign currency. Using the information in the report, you can manually adjust your ledger entries as needed.
This section provides an overview of how to populate the Hungarian VAT table, lists prerequisites, and discusses how to:
Run the VAT Table Build program.
Set processing options for VAT Table Build (R74H1002).
Run the Hungarian VAT Declaration program.
Set processing options for Hungarian VAT Declaration (R74H1003).
Companies in Hungary are entitled to reclaim value-added tax (VAT) for paid invoices in certain circumstances. You include in the VAT recoverable report only those vouchers that are paid in the reporting period. You run the VAT Table Build program to identify the paid vouchers and populate the VAT Table Build Header table (F74H1002) and VAT Declaration Detail table (F74H1004). The system retrieves voucher and tax information from:
The Accounts Payable Ledger table (F0411) for vouchers in domestic currency, or vouchers in a foreign currency for foreign suppliers.
The Foreign Vouchers Supplier Amounts table (F74H410) for vouchers in a foreign currency for a domestic supplier.
If the foreign amounts do not exist in the F74H410 table, the system retrieves the foreign amounts from the F0411 table. If the voucher exists in the F74H410 table, the system writes it to the VAT Final Declaration Header table (F74H1003).
After you populate the F74H1004 and F74H1003 tables, you run the Hungarian VAT Declaration program (R74H1003) to generate the VAT report that you use to reclaim VAT. When you run this program in final mode, the system updates the VAT Declaration Status from CRE (created) to DEC (declared) in the F74H1003 and F74H1004 tables and assigns the next number as set up in the second row of the system 74H next numbers. The next number is reported as the VAT declaration ID number.
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Note: The system does not complete the Pay Itm and Pay Ext columns in the report for records that it writes from the F74H410 table. |
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Note: You can specify the country for which you want to run the report in the Report By Country processing option. (Release 9.1 Update) |
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Note: You cannot use category code 7 to select the voucher lines to include in the VAT reports for transactions in a foreign currency. |
Before you complete the tasks in this section:
Verify that a next numbering scheme for the VAT table build ID is set up in the first row of system 74H (Hungary) and that a next numbering scheme for the VAT declaration ID number is set up in the second row of system 74H.
Verify that tax rate summaries are set up in the Tax Rate Summary program (P74H1007).
Verify that payments that you want to exclude from processing are assigned the value from the Special Handling Code-A/P Pymt (00/HC) user-defined code (UDC) table that you specify in the Payment Handling Code processing option.
Select Tax Reports (G74H00), VAT Table Build.
Processing options enable you to set default processing values.
Enter a value from UDC table 00/EC to specify the country for which you want to run the report. The system applies an additional filter excluding the tax rate/areas which were not identified for that country in the Alternate Tax Rate/Area by Country program (P40082).
Leave this field blank to prevent tax rate/areas additional filtering.
Enter the beginning of a range of dates that the system uses to select records to process.
Enter the end of a range of dates that the system uses to select records to process.
Enter 1 to run the VAT table build process in final mode. In final mode, the system creates entries in the F74H1004 table for each selected voucher that is paid in full, and creates a header record in the VAT Table Build Header table (F74H1002). You do not use data selection when running this process in final mode.
When you leave this processing option blank to run the process in proof mode, the system does not update the tables.
Enter the text that the system prints as the report title. You can enter up to 30 characters.
Specify a payment date through which you want to process payments. For example, to process payments consisting of vouchers with payment dates through March 15, 2007, enter 03/15/07. The system verifies that the payments were made on or before March 15, 2007.
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Note: If you leave the Payment Date (-to) processing option blank and the voucher is not assigned the code that is entered in the Payment Handling Code processing option, the system does not process the voucher. |
Enter 1 to specify that the system uses the value in the Vendor Invoice Numbers (VINV) field to determine whether all invoices with that number are paid. When you enter 1, the system includes for processing only those vouchers for which all invoices are paid.
Leave this processing option blank to use the document number to select records to process.
Enter 1 to exclude from processing the documents that have the special handling code specified in the Payment Handling Code processing option.
Enter a value that exists in the Special Handling Code-A/P Pymt (00/HC) to exclude documents that have the special handling code assigned.
Select Tax Reports (G74H00), Hungarian VAT Declaration.
Processing options enable you to set default processing values.
Enter a value from UDC table 00/EC to specify the country for which you want to run the report. The system applies an additional filter excluding the tax rate/areas which were not identified for that country in the Alternate Tax Rate/Area by Country program (P40082).
Leave this field blank to prevent tax rate/areas additional filtering.
Enter 1 to run the report in final mode. In final mode, the system updates the VAT Declaration Status from CRE (created) to DEC (declared) in the F74H1003 and F74H1004 tables, assigns the next number as set up in the second row of the system 74H next numbers as the VAT declaration ID number, and prints a report.
Enter the text that the system prints as the report title. You can enter up to 30 characters.
Enter a value that exists in the VAT Reclamation Status (74H/VS) UDC table. The system selects nonprocessed records when you enter CRE, and selects processed records when you enter DEC. If you enter DEC, the system runs the report in proof mode and does not update tables.
This section provides an overview of the Hungarian value-added tax (VAT) report and discusses how to:
Run the Hungarian VAT Report program.
Set processing options for Hungarian VAT Report (R74H1007).
If you are a VAT registered entity, you must submit a monthly VAT report to the tax authorities. The VAT report includes the taxable amount and the tax amount according to the tax rates and nature of the transactions. The report that is generated by the Hungarian VAT Report program (R74H1007) lists VAT taxes grouped by the VAT summary code. You set up the VAT summary code for your transaction in the Tax Rate Summary Setup program (P74H1007). Use data selection to specify the tax summary codes to include in the report.
When you run the Hungarian VAT Report program, the system reads these tables:
Taxes (F0018)
Accounts Payable Ledger (F0411)
Account Ledger (F0911)
Customer Ledger (F03B11)
Tax Rate Summary Setup (F74H1007)
VAT Declaration Detail (F74H1004)
Foreign Vouchers Supplier Amounts (F74H410)
If the tax and voucher information exists in the F74H410 table, the report includes that data. If no record for a transaction exists in the F74H410 table, the system uses the voucher information in the F0411 table.
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Note: You can specify the country for which you want to run the report in the Report By Country processing option. (Release 9.1 Update) |
Select Tax Reports (G74H00), Hungarian VAT Report.
Processing options enable you to specify default processing values.
Enter a value from UDC table 00/EC to specify the country for which you want to run the report. The system applies an additional filter excluding the tax rate/areas which were not identified for that country in the Alternate Tax Rate/Area by Country program (P40082).
Leave this field blank to prevent tax rate/areas additional filtering.
Enter the beginning of the range of services tax dates from which the system selects transactions.
Enter the end of the range of service tax dates from which the system selects transactions.
Enter the address book number of the National Bank. The report uses the address book number to retrieve the current conversion rate for the National Bank during the currency conversion process.
Specify the level of detail of the report. Values are:
1: Invoice/Voucher level
2: Tax Rate/Area Group level
3: Tax Summary Code level
Specify whether the system selects all vouchers for processing. Values are:
1: Print records for all vouchers.
2: Print only records for vouchers with reclaimable VAT.
3: Exclude records for vouchers with reclaimable VAT.
This section provides overviews of the Foreign Voucher VAT Differences report, how to generate journal entry with VAT difference amounts, and discusses how to:
Run the Foreign Voucher VAT Differences report.
Set processing options for Foreign Voucher VAT Differences (R74H420).
You run the Foreign Voucher VAT Differences program (R74H420) to print the VAT amount differences that you calculate and the VAT amount that your supplier calculated on invoices in a foreign currency. Differences in the amounts might occur for vouchers calculated in a foreign currency if you and your supplier used different currency exchange rates. You can use the information in the report to make manual adjustments to your ledger entries as needed. You might need to make changes because you must report the VAT amount that appears on the supplier's invoice even if the amount that you calculate is different. For posted vouchers, you can run the Foreign Voucher VAT Differences program to generate journal entries associated with VAT differences.
For posted and unposted vouchers, when you run the Foreign Voucher VAT Differences program, the system reads the tax amounts that you calculated and the tax amounts that your supplier calculated from the Foreign Vouchers Supplier Amounts table (F74H410). The system populates the F74H410 table with the tax information for foreign currency vouchers when you enter the information in the Supplier Amounts for Foreign Vouchers program (P74H410). Then, you use this information to manually adjust your ledger entries as needed.
The system prints a report that includes, for each transaction:
Supplier name and address book number.
Supplier calculated amount and the exchange rate that the supplier used.
The supplier amount appears in a column labeled Reported VAT Amount.
Document type, document number, company, and business unit.
Company calculated amount and the exchange rate that your company used.
The company calculated amount appears in a column labeled Accounted VAT Amount.
The difference between the Reported VAT Amount and the Accounted VAT Amount.
The difference appears in a column labeled Difference VAT Amount.
The report shows the totals for the VAT amounts by each tax area and tax explanation code combination, as well as the GL offset account (GL Class) unless the tax explanation code is S. The report also shows a report total for the Accounted VAT Amount, Reported VAT Amount, and Difference VAT Amount columns.
For posted vouchers, you can set processing options in the Foreign Voucher VAT Differences program that generate journal entries associated with VAT differences. The program processes the selected documents in the order the documents are present in the F74H410 table and generates a batch of journal entries for each execution. The system generates the new journal entry documents in the F0911 table and adds these documents to the JE VAT Differences table (F74H910) after reclassifying the VAT amount differences. When you execute the process for the same period several times (partial data selection or errors), the system generates the batch journal entries only for new vouchers or old vouchers with errors. The system will not reprocess vouchers that were already processed. When you run the Foreign Voucher VAT Differences program, the system generates a PDF that shows the documents that are processed and the documents that have errors. For all processed documents, the PDF shows the VAT difference amounts and the new journal entry documents. The PDF does not show the processed journal entry document number if the VAT difference amount is zero even if you set the processing option to show the journal entry document number. The Foreign Voucher VAT Differences program discards the vouchers with tax explanation code S. The program does not generate the journal entry in this case, but updates the F74H910 table. The PDF will show the document as Excluded.
You must follow these steps to generate the journal entries associated with the VAT difference amounts:
Enter a voucher using the Standard Voucher Entry program. The system updates the Accounts Payable Ledger table (F0411) with the voucher information.
For domestic vouchers in a foreign currency, enter the supplier exchange rate, the supplier VAT amount, and the taxable amount of the voucher using the Supplier Amounts for Foreign Vouchers program. The system updates the Foreign Voucher Supplier Amounts table (F74H410) with supplier amounts by document number and tax area. If the voucher exists in the JE VAT Differences table (F74H910), the system checks if the document is a voucher that was already processed.
Before you post a voucher, you can run the Foreign Voucher VAT Differences program to print VAT amount differences without generating the journal entry line.
Post the voucher using the General Ledger Post program (R09801).
For posted vouchers, execute the Foreign Voucher VAT Differences program to print VAT differences and automatically generate journal entries. The system generates journal entries in the Account Ledger table (F0911). After calculating the VAT amount differences, the system stores the reclassified journal entries in the F74H910 table. After you generate journal entries, you cannot process and change the documents associated with these journal entries again.
For each tax area and document number combination, the Foreign Voucher VAT Differences program checks the conditions listed in this table and generates journal entries, updates the F74H910 table, and generates PDF:
| Is the journal entry generated by a processing option? | Is the document posted? | Is the VAT amount difference equal to zero? | Action |
|---|---|---|---|
| No | NA | NA | The system does not generate journal entry, so the PDF prints blank value in JE Document column. The system does not update the F74H910 table. |
| Yes | No | NA | The system does not generate journal entry, so the PDF prints blank value in JE Document column. The system does not update the F74H910 table. |
| Yes | Yes | No | The system generates a journal entry, so the PDF shows the document number created. The system updates the F74H910 table with the new journal entry. |
| Yes | Yes | Yes | The system does not generate journal entry, so the PDF prints zero in JE Document column. The system updates the F74H910 table. |
The program generates a batch of journal entries in the Account Ledger table (F0911) for all the documents selected in the F74H410 table for a specific period. For each document in the F74H410 table, the system retrieves the VAT account and the technical account to generate the journal entry. It uses the VAT difference amount as the VAT amount.
You must set the VAT account and the technical account processing options for the system to retrieve these accounts:
For the VAT account processing option, the system uses the standard PTXXXX Automatic Accounting Instruction (AAI), and you must specify the bucket number (XXXX) from which to retrieve the GL offset account (GLC) from the tax rate area setup.
For the technical account processing option, you enter an account that the system uses to redistribute the VAT difference. If you leave this field blank, the system uses a new AAI to retrieve the technical account. To activate this new AAI, you must complete the XXXX AAI processing option by specifying the prefix (XXXX) from which the system retrieves the GL offset account from the F0411 table. If you leave this field blank, the system uses the default item PH in combination with the GL offset account to define the technical account.
The VAT amount differences are by tax area, not document line, so the system searches the tax area in the GL offset account in the first line of the F0411 table to process.
The system generates two lines in the F0911 table for each account (VAT account and technical account) and only one line in the F74H910 table. If an error occurs when configuring the accounts, the system does not generate the journal entry, the PDF does not display the journal entry document, and the system does not update the document in the F74H910 table. The system updates only the Actual Amount ledger (AA) and does not modify the Foreign Currency ledger (CA) and Alternate Currency ledger (XA).
When you try to modify a voucher, a validation process checks if the tax area and document number combination of the voucher was already generated and appears in the F74H910 table. The system does not allow you to modify a voucher if it already exists in the F74H910 table.
When you void a voucher, the system reverses all lines for this voucher in the F74H410 table and inserts a V in the voided field. It also updates the GL date of the tag file with the GL Date of the voided file. The Foreign Voucher VAT Differences program calculates the VAT differences for voided vouchers and creates new journal entries. The system processes voided vouchers the same way it processes unvoided vouchers.
The program completes the following fields in the F0911 table in order to identify journal entries generated by the Foreign Voucher VAT Differences program easily:
The Journal Entry Document Type processing option in the Foreign Voucher VAT Differences program to get document type. This setting generates the document number in the F0911 table from next numbers, the same as for the standard process.
The voucher GL date in the G/L Date field in the F0911 table if the original document associated with the journal entry is not voided or the voided GL date in the G/L Date field in the F0911 table if the original document associated with the journal entry is voided.
The fields with original document information in the F0911.EXA field.
The Address Number field in the F0911 table with the supplier number.
The VAT DIFF hardcoded value into the Reference 1 field in the F0911 table.
This is an example of how the Foreign Voucher VAT Differences program generates journal entry with VAT difference amounts.
Consider the following:
The supplier and the buyer apply these exchange rates:
| Voucher Exchange Rate | Supplier Exchange Rate |
|---|---|
| 3 | 2 |
The document type of the voucher is PV and the document number is 10. The voucher has two document lines with the same tax area:
| Line Number | Tax Area | Foreign Taxable Amount | Foreign Tax |
|---|---|---|---|
| 001 | IVA21 | 1000 | 210 |
| 002 | IVA21 | 1000 | 210 |
After voucher entry, the F74H410 table will have supplier domestic amounts using supplier exchange rate 2. When you run the Foreign Voucher VAT Differences program, the system generates the following VAT difference amount:
| Tax Area | Taxable (In Company Exchange Rate) | Tax (In Company Exchange Rate) | Taxable (In Supplier Exchange Rate) | Tax (In Supplier Exchange Rate) | VAT Difference |
|---|---|---|---|---|---|
| IVA21 | 6000 (2000*3) | 1260 (420*3) | 4000 (2000*2) | 840 (420*2) | -420 |
Consider the following tax area account setup and technical account setup:
Tax Area Account Setup: To get the VAT account, specify bucket number 1 in the processing option so that the system retrieves the GL offset account class (GLC) of Bucket 1 from the tax rate area setup. The process uses PTV21 AAI where V1 is the IVA21 tax area GLC of Bucket 1. The system derives VAT account 28.1110.FINALVAT and creates a credit in this account.
IVA21 GLC Bucket 1: VAT21
PT V21: 28.1110.FINALV21
PT: 28.1110.FINALVAT
Technical Account Setup: To get the technical account, leave the processing option for deriving the technical account blank. The Foreign Voucher VAT Differences program uses the default PH AAI of the processing option and the F0411 table GLC to derive the technical account 28.1110.TECHNICAL. The system creates a debit in this account.
F0411 GLC (G/L Offset Class): Blank
Technical AAI (PO): PH
PH:28.1110.TECHNICAL
If you have not set the processing option to generate journal entries automatically, the Foreign Voucher VAT Differences program processes the journal entries as:
| Account Type | Debit | Credit |
|---|---|---|
| Expense Account | 6000 | |
| 28.1110.FINALV21 | 1260 | |
| Supplier Account | 7260 | |
| Total | 7260 | 7260 |
If you have set the processing option to generate journal entries automatically, the system reclassifies the VAT amount difference as:
| Account Type | Debit | Credit |
|---|---|---|
| 28.1110.TECHNICAL | 420 | |
| 28.1110.FINALV21 | 420 | |
| Total | 420 | 420 |
In this example, journal entry credits VAT account because company exchange rate is greater than supplier exchange rate.
Select Tax Reports (G74H00), Foreign Voucher VAT Differences.
Processing options enable you to specify default processing values.
Enter the beginning of the range of dates for which you generate the report.
Enter the end of the range of dates for which you generate the report.
Specify the type of transaction date that the system uses to select the records to process. Values are:
Blank or 0: The system uses the GL date.
1: The system uses the service date.
Specify the bucket number from which to retrieve the GL offset account from the tax rate area setup. For example, if the GL offset account that you want to use is set up in the Tax Rate Area 1 (data item TXR1) field of the Tax Rate/Area program (P4008), enter 1.
If you leave this processing option blank, the system uses bucket 1.
Specify whether to include in the report all vouchers or only those with differences between the amount that you calculate and the amount that your supplier calculated. Values are:
Blank or N: Print only vouchers for which differences exist.
Y: Print information about all vouchers.
Specify whether to generate journal entries. Values are:
Blank or N: Do not generate journal entries.
Y: Generate journal entries
The default value is Blank or N.
Specify the journal entry document type that identifies the origin and purpose of the transaction. The value that you specify must exist in the Document Type UDC table (00/DT).
The default value is JE.
Enter a value that identifies an account in the general ledger. The system uses this account number to redistribute the VAT amount difference.
If you leave this field blank, the system uses the next AAI technical account processing option.
Enter the prefix that defines the AAI processing option from which the system retrieves the GL offset account from the F0411 table.
The default value is PH. If you leave this field blank, the system uses PH in combination with the GL offset account to define the technical account.
Specify whether to show the processed journal entries in the PDF. Values are:
Blank or N: Do not show journal entries.
Y: Show journal entries.
The default value is Blank or N.
This section provides an overview of the Hungarian European Union (EU) reports and discusses how to:
Run the Hungarian EU Sales Report program.
Set processing options for Hungarian EU Sales Report (R74H1051).
Run the Hungarian EU Transaction Summary Report program.
Set processing options for Hungarian EU Transaction Summary Report (R74H1052).
In Hungary, VAT registered entities must submit monthly VAT returns to tax authorities that summarize the taxable and tax amounts according to the tax rates and nature of the transaction. JD Edwards EnterpriseOne software for Hungary provides two EU sales reports. The Hungarian EU Sales Report program reports on records in the Customer Ledger table (F03B11). The EU Transaction Summary Report program reports on records in the Taxes Table (F0018). These reports list the sales transactions in a detailed or summarized mode.
You can also use the BIP solution to run the Hungarian EU Sales Report and Hungarian EU Transaction Summary Report with tax area by country functionality. (Release 9.1 Update)
Select Tax Reports (G74H00), Hungarian EU Sales Report.
Processing options enable you to specify default processing values.
Enter the beginning of a range of dates that the system uses to select records to process.
Enter the end of a range of dates that the system uses to select records to process.
Specify the date type that the system uses when selecting records to process. Values are:
1: GL date
2: Tax service date
3: Invoice date
Enter the company number for which you process records.
Enter 1 to print a detailed report. Leave this processing option blank to print a summarized report.
Select Tax Reports (G74H00), Hungarian EU Transaction Summary Report.
Processing options enable you to specify default processing values.
Enter the beginning of a range of dates that the system uses to select records to process.
Enter the end of a range of dates that the system uses to select records to process.
Specify the date type that the system uses when selecting records to process. Values are:
1: GL date
2: Tax service date
Enter the company number for which you process records.
Enter 1 to print a detailed report. Leave this processing option blank to print a summarized report.