2 Understanding Localizations for the United Kingdom

This chapter contains the following topics:

• Section 2.1, "Understanding VAT for the United Kingdom"

• Section 2.2, "Setup and Processes for the United Kingdom"

2.1 Understanding VAT for the United Kingdom

If you work with VAT in the United Kingdom, you should understand these terms and principles:

• If tax is payable, businesses must submit quarterly VAT returns to HM Customs and Excise.

• You must pay any excess output VAT over input VAT at the time of filing.

• Certain types of supplies are exempt from VAT.

  Businesses can obtain a list of these types of supplies from the local tax office.

2.2 Setup and Processes for the United Kingdom

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

Setup or Process	Description
Supplier bank account information	Country-specific values are required when you enter supplier bank account information. See "(CAN, DEU, FIN, GBR, NOR, SWE, and USA) Setting Up Country-Specific Supplier Bank Account Information" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.
Next numbers	Set up next numbers for the Text File Processor program (P007101). When you run the SEMDEC interface for Intrastat reporting, the Text File Processor program assigns the batch number and interchange from line 7 of Next Numbers System 00. The Text File Processor assigns the message number from line 5 of Next Numbers System 74.
User-defined codes (UDCs)	In addition to the base software UDCs: Set up UDCs to work with CIS (construction industry scheme). See Setting Up UDCs for CIS. Set up UDCs to work with SPC (subcontractor payment control). See Setting Up UDCs for SPC. Set up UDCs for European Union reporting. See "Setting Up UDCs for Intrastat Reporting" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Set up UDCs to print invoices with an attached International Payment Instruction (IPI). See "Setting Up UDCs for International Payment Instructions" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Set up these UDCs for companies: Affiliated Companies (74/AC) Code Number (74/30) See "Setting Up UDCs for European Companies" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
AAIs	No country-specific AAI setup exists for the United Kingdom. You set up standard AAIs to work with SPC. See Setting Up AAIs for SPC.
Payment processing	To work with payment processing in the United Kingdom: Set up suppliers, bank accounts, and payment instrument defaults for BACS (Bankers Automated Clearing System) processing. See Setting Up the System for BACS Payments for the United Kingdom. Set up payment formats. See Setting Up Payment Formats for the United Kingdom.
Invoice processing	In addition to standard invoice processing, you can print invoices with an attached International Payment Instructions (IPI). To print these invoices and attachments: Set up UDCs for IPIs. See "Setting Up UDCs for International Payment Instructions" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide. Print invoices with attached IPIs. See "Printing Invoices with an Attached International Payment Instruction" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Automatic debit formats	Before working with automatic debits for the United Kingdom, set the processing options for the Bank File and Statement Diskette (R03B575GB) format for automatic debits. See Setting Up Automatic Debit Formats for the United Kingdom.
Construction Industry Scheme (CIS)	To complete withholding tax processing administered through CIS, you must: Set up UDCs specific to CIS. Set up CIS constants, supplemental CIS constants, AAIs, document types, payment rules, payment vouchers, and subcontract documents. See Setting Up CIS for the United Kingdom. Process CIS vouchers See Processing CIS Vouchers for the United Kingdom. Generate CIS reports. See Additional Reports for the United Kingdom.
Real Estate	The Enhanced Real Estate system provides extra functionality to meet the requirements of the real estate market in the United Kingdom. See JD Edwards EnterpriseOne Applications Enhanced Real Estate Management for the United Kingdom and China Implementation Guide .
Subcontractor Payment Control (SPC)	To enter and process SPC applications and certificates: Set up UDCs, AAIs, constants, commitments, authenticated receipt letters, and levy rates. See Understanding Setup for the SPC Module. Enter subcontract purchase orders. Enter and approve SPC applications. Generate SPC certificates. Track commitment amounts. Send and track authenticated receipt documents. Process VAT (value-added tax) on a cash basis.
Intrastat and other European Union reporting	See "Working with Intrastat Reporting" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide . See "Understanding European Union Reporting" in the JD Edwards EnterpriseOne Applications Localizations for European Reporting and SEPA Processing Implementation Guide.
Oracle Business Accelerator	The JD Edwards EnterpriseOne Oracle Business Accelerator solution is available for the United Kingdom, as well as other countries. The preconfigured data that are part of the Oracle Business Accelerator solution is based on business processes that have been designed according to the best business practices for a specific country and industry. See http://docs.oracle.com/cd/E24705_01/index.htm.