This chapter contains the following topics:
Section 2.1, "How to Validate Tax IDs in Latin American Countries"
Section 2.2, "(ECU, PER, and VEN) Tax Rate/Areas for Ecuador, Peru, and Venezuela"
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:
Verifies that the IT value exists in the 70/TI UDC table.
Uses the validation routine for Argentina instead of the validation routine for Italy.
Use tax area types to specify whether a tax area is for solidarity, withholding, or VAT. Tax rate/areas are stored in the F4008 table.
You should set up tax rate/areas within a structure, for example, A BBB CCC D. This table represents how you can set up the structure:
| Character | Example |
|---|---|
| A (Tax type) | G (General VAT) |
| BBB (Tax concept) | COM (Purchasing)
HON (Fees) SER (Services CMI (Commissions) ARR (Leasing) M (Manual tax settlement) Note: Use M when no specific VAT or withholding percentage exists and the tax calculation is entered manually. |
| CCC (Tax subgroup) | For COM (Purchasing):
For SER (Services):
For ARR (Leasing):
For M (Manual tax settlement):
|
Using this example, tax areas could be:
GCOMGEN – General VAT for automatic general purchases.
EHONGENM – Manual exempt general fees.
(ECU) Set up the first line of the tax area for rent withholding and the second line for VAT withholding.
This table lists the country-specific setup and functionality for Venezuela.
| Setup or Process | Description |
|---|---|
| User-defined codes (UDCs) | Setting up Venezuela-specific UDCs enables you to use Venezuelan-specific functionality. Set up UDCs for:
|
| Next numbers | You must set up next numbers for system 76V (Venezuela) to process withholding for income taxes (Impuesto sobre la Renta [ISLR]) and municipal taxes. |
| Supplier withholding (setup) | To work with supplier withholding for Venezuela, set up:
|
| Supplier withholding (processes) | Run these programs to calculate withholding and print withholding certificates:
See Processing National and Municipal Withholding for Venezuela. Run these reports to print certificates and obtain information about the withholding calculations:
|
| Voucher processing | In addition to the standard processes for vouchers, for Venezuela:
|
| Invoice processing | In addition to the standard invoice processing, for transactions in Venezuela, assign invoice control numbers.
See Assigning Control Numbers to Invoices for Venezuela. Add exportation numbers to invoices for foreign transactions. See Add Exportation Numbers to Invoices for Foreign Transactions. |
| Tax processing | 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. To process VAT for Venezuela:
See Processing Withholding for VAT for Venezuela. To generate VAT reports:
|