This chapter contains the following topics:
You use the standard JD Edwards EnterpriseOne Sales Order Management system to process sales returns for manufacturers and dealers. When you process a sales return, use a credit order for the returned goods.
The system:
Creates journal entries.
Updates RG1 registers for manufacturers.
Updates the RG23D register for dealers.
This section provides an overview of the calculation of the offset amount, and discusses how to:
Run the Set Off Report program.
Set processing options for Set Off Report (R75I4213).
Run the Set Off Report to compare the tax paid on purchase transactions to the tax collected on sales transactions. The difference between the tax paid and the tax collected is the offset amount. The report calculates the offset amount from the sales order and purchase order details.
Select Sales Tax Reports (G75I421), Set Off Report.
Processing options enable you to specify the default processing for programs and reports.
Specify the mode in which the system calculates the offset amount. Values are:
0: Proof mode. The system prints a report, but does not update any tables.
1: Final mode. The system prints a report and updates the F75I4216 table.
Specify the start date of the period for which the system calculates the offset amount.
Specify the end date of the period for which the system calculates the offset amount.
Enter a user-defined code from UDC table 00/DT that identifies the origin and purpose of the transaction. JD Edwards EnterpriseOne reserves several prefixes for document types, such as, vouchers, invoices, receipts, and timesheets.
The reserved document type prefixes for codes are:
P: Accounts Payable documents
R: Accounts Receivable documents
T: Time and Pay documents
I: Inventory documents
O: Purchase order documents
S: Sales order documents
Specify the title for the report heading.
This section provides an overview of the process to offset value-added tax (VAT) for capital goods and the Calculation of VAT Payables for Capital Goods program; and discusses how to:
Run the VAT - Setoff Report program.
Set processing options for VAT - Setoff Report (R75I2213A).
Run the Set Off for Capital Goods program.
Set processing options for Set Off for Capital Goods (R75I211).
Run the Calculation of VAT Payables for Capital Goods program.
Set processing options for Calculation of VAT Payables for Capital Goods (R75I212).
Generally, VAT credit is available on inputs after goods are received and the sales transaction is complete. However, when you purchase capital goods, the entire VAT amount paid is not recoverable when the transaction is complete. Instead, it is available over a period of time.
You use the Set Off of Capital Goods program (R75I211) to recover VAT for capital goods over a period of time. The Set Off of Capital Goods program was modified to use the retention percentage and deferred periods that you set up in the Retention Percentage program (P75I220). Additionally, the Set Off of Capital Goods program enables you to accelerate the VAT recovery on transferred goods if you enter the required information in the Stock Transfer Entry program (P75I213A) before you run the Set Off of Capital Goods program.
After you offset capital goods, you can run the Calculation of VAT Payables for Capital Goods program to obtain a list of the records for which VAT offset was processed.
To offset VAT for capital goods:
Define the item category relationship in the Item Category Relationship program (P75I2140) as a capital item.
You assign a VAT category code by business unit and item number. For capital goods, you must set up a value of C in the Vat Tax UDC table (75I/VT) and assign that code to the item.
Use the State / Business Unit Cross Reference program (P75I2139) to map the business unit to a state.
Because the period over which you recover VAT for capital goods is established at the state level, you must associate the business unit with the state in which you recover the VAT amount.
Use the Retention Percentage program (P75I220) to set up the retention percentage and deferred period for each state in which you recover VAT.
Create a purchase order for a capital item and attach a VAT cost rule to it.
You select a cost rule from the Landed Cost Rule (41/P5) UDC table.
Receive the order and complete the voucher match.
Run the VAT - Purchase Update program (R75I210).
This program prints a list of purchase orders that are applicable for VAT for a specific date range.
Run the Set Off of Capital Goods program (R75I211).
This program calculates the VAT offset amount for capital goods.
Run the Calculation of VAT Payables for Capital Goods program (R75I212).
This program prints a list of the purchase orders for which deferred amounts were calculated.
You use the Calculation of VAT Payables for Capital Goods program to print a list of the records for which the Set Off of Capital Goods program calculated VAT amounts. When you run the Calculation of VAT Payables for Capital Goods program, the system prints this information from the VAT Deferred amounts for the Purchase cycle table (F75I2242):
The company and business unit
The purchase order number
The period and dates for the deferred amount
The calculated amount for the period
Use the VAT - Setoff Report (R75I2213A) program to print the list of sales orders and purchase orders with VAT. The difference between the tax paid and the tax collected is the offset amount.
Select Sales Tax (G75I2221), VAT - Setoff Report.
Processing options enable you to specify the default processing for programs and reports.
Enter a user-defined code from UDC table 00/D that identifies the origin and purpose of the transaction. JD Edwards EnterpriseOne reserves several prefixes for document types, such as, vouchers, invoices, receipts, and timesheets.
The reserved document type prefixes for codes are:
P: Accounts Payable documents
R: Accounts Receivable documents
T: Time and Pay documents
I: Inventory documents
O: Purchase order documents
S: Sales order documents
Specify the numerical month for which you are processing the Setoff report.
Specify the numerical year for which you are processing the Setoff report.
Specify the mode to calculate the offset amount for the reporting period. Values are:
0: Proof mode. The system prints a report, but does not update any tables.
1:Final mode. The system prints a report and updates the F75I404 table.
Use the Set Off for Capital Goods (R75I211) program to print the list of purchase orders and to calculate the VAT offset amount for capital goods.
Select Purchase tax (G75I2222), Set Off for Capital Goods.
Processing options enable you to specify the default processing for programs and reports.
Specify the numerical month for which you are processing the Set off report for capital goods.
Specify the numerical year for which you are processing the Set off report for capital goods.
Specify the mode to calculate the offset amount of the capital goods. Values are:
0: Proof mode. The system prints a report, but does not update any tables.
1:Final mode. The system prints a report and updates the F75I404 table.
The Calculation of VAT Payables for Capital Goods program does not appear on a menu. Use the Batch Versions program (P98305W) to access the program.
Processing options enable you to specify default processing values.
Enter the company number for the company for which you run the report.
Enter the business unit for which you run the report.
Enter the year for which you run the report.
This section provides an overview of the mapping interstate stock transfers and discusses how to:
Set processing options for Stock Transfer Entry (P75I213A).
Map stock transfer orders to purchase orders.
Use the Stock Transfer Entry program (P75I213A) to specify the quantity of stock to transfer and map the stock transfer order to the appropriate purchase order. The system retrieves the stock transfer order and purchase order of the item for transfer. The quantity of the item entered in purchase order receipt must be the same as the stock transfer order. The system compares the quantity of the item for transfer in the stock transfer order to the purchase order receipt. After matching the quantity, the system calculates the extended price and gross amount of the items transferred. The system does not retrieve the previously matched stock transfer orders.
The system calculates the VAT credit for the items transferred using this formula:
Credit available = VAT credit claimed during the purchase of the items – retention percentage on the VAT amount calculated on the value of the transferred items.
The State Government withholds a certain percentage of VAT amount during stock transfers between states as a retention percentage. The retention value is calculated on the VAT tax amount of the item transferred. Each state has a specific retention percentage. The system uses the retention percentage to calculate the VAT credit for interstate stock transfers.
After calculating the value of the items transferred, the system updates the Stock Transfer Details table (F75I403).
Before you complete the tasks in this section:
Confirm that the adjustment is defined under the activity name VAT and that the glossary is defined in the Relation Adjustment Name / Tax Type (P75I006) and the Relation Landed Costs to Tax Regime / Tax Type (P75I007) programs.
Confirm that items in the stock transfer order are the same as the purchase order items.
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Select Transferred Orders (F4211) | W75I213AC | Sales Tax (G75I2211), Stock Transfer Entry
The system displays this form when you set the Pick Sales Detail History Data processing option to 1. |
Review the stock transfer orders by order number, business unit, item number, and state code. |
| Select Transferred Orders (F42119) | W75I213AB | Sales Tax (G75I2211), Stock Transfer Entry
The system displays this form when you set the Pick Sales Detail History Data processing option to 0. |
Review the stock transfer orders by order number, business unit, item number, and state code. |
| Transferred Order Quantity Match | W75I213AA | On the Select Transferred Orders (F4211) form, select a record and click Select. | Map a stock transfer order to a purchase order. |
Processing options enable you to specify the default processing for programs and reports.
Enter a user-defined code from UDC table 00/DT that identifies the origin and purpose of the transaction. JD Edwards EnterpriseOne reserves several prefixes for document types, such as, vouchers, invoices, receipts, and timesheets.
The reserved document type prefixes for codes are:
P: Accounts Payable documents
R: Accounts Receivable documents
T: Time and Pay documents
I: Inventory documents
O: Purchase order documents
S: Sales order documents
Specify the table number/name from which the transferred stocks data can be retrieved. Values are:
0: F42119 Sales Order Detail History Data
1: F4211 Sales Order Detail Data
Specify whether to activate the lot controlled data. Values are:
0: Do not activate
The purchase order receipts of items with valid vouchers are retrieved.
1: Activate
Only purchase order receipts of the corresponding items, lot, and location with valid vouchers are retrieved for matching.
Access the Transferred Order Quantity Match form.
Enter a user-defined code from UDC table 00/S that specifies the state or province. This code is usually a postal service abbreviation.
Enter the number of units that are transferred.
This table lists the setup requirements for sales tax for transactions:
| Setup Requirements | Comments | Cross-Reference |
|---|---|---|
| Calculate offset amounts. | Run the Set Off Report (R75I4213) to compare the tax paid on purchase transactions to the tax collected on sales transactions. The difference between the tax paid and the tax collected is the offset amount. | |
| Calculate VAT offset amounts. | Use the VAT - Setoff Report (R75I2213A) program to print the list of sales orders and purchase orders with VAT. The difference between the tax paid and the tax collected is the offset amount. | |
| Calculate the VAT offset amount for capital goods. | Use the Set Off for Capital Goods (R75I211) program to print the list of purchase orders and to calculate the VAT offset amount for capital goods | |
| Define adjustment under VAT and define glossary | Confirm that the adjustment is defined under the activity name VAT and that the glossary is defined in the Relation Adjustment Name / Tax Type (P75I006) and the Relation Landed Costs to Tax Regime / Tax Type (P75I007) programs. | |
| Mapping Interstate Stock Transfers | Use the Stock Transfer Entry program (P75I213A) to specify the quantity of stock to transfer and map the stock transfer order to the appropriate purchase order. |