(ITA) Understanding Country-Specific Functionality for Italy

This chapter provides an overview of Italy-specific setup and processes that you use in addition to the standard setup and processes provided in the base software.

Italy-Specific Setup and Processes

This table lists the country-specific setup and functionality for Italy.

Setup or Process	Description
UDCs (user-defined codes)	Setting up Italy-specific UDCs enables you to use Italy-specific functionality. You also set up some base software UDCs with Italy-specific values. Set up UDCs for: Tax processing. See Setting Up UDCs for Tax Processing for Italy. Supplier withholding taxes. See Setting Up UDCs for Withholding Taxes for Italy. European Union reporting. See Setting Up UDCs for Intrastat Reporting. IPI to print invoices with an attached International Payment Instruction (IPI). See Setting Up UDCs for International Payment Instructions. Companies: Affiliated Companies (74/AC) Code Number (74/30) See Setting Up UDCs for European Companies.
AAIs (automatic accounting instructions)	In addition to the basic AAI setup, set up AAIs to work with the annual close process in Italy and to work with supplier withholding taxes. See Setting Up AAIs for Italy.
Next numbers	No country-specific next numbering schemes are required for Italy.
Bank accounts	When setting up bank accounts for Italy: Review the overview about bank account validation. See Understanding Bank ID and Bank Account Validation. See Understanding Bank Account and Bank ID Validation. Review the overview about using international bank account numbers (IBAN). See Understanding International Bank Account Numbers. Upload Italian bank ID information. Revise Italian ID information manually. Convert Italian bank numbers. Set processing options for Italian Bank Number Conversion (R74800). See Setting Up Bank Information in Italy.
Supplier withholding	To set up to process supplier withholding: Set up UDC values. See Setting Up UDCs for Withholding Taxes for Italy. Set up the data dictionary to track the status of the tax. See Setting Up the Data Dictionary for Withholding in Italy. Enter withholding tax information for suppliers including the fiscal group code, withholding tax code, individual tax ID code, and the country. See Setting Up Supplier Withholding Tax Information for Italy. Set up withholding tax codes to define withholding tax rates. See Setting Up Withholding Tax Codes. To work with supplier withholding: Review the overview of Italian withholding tax and tax calculations. See Understanding Italian Withholding Tax. See Understanding the Process for Calculating Italian Withholding Taxes. Review and revise withholding taxes if necessary. See Revising Withholding Taxes in Italy.
Payment processing	Before processing payments in Italy, set up the payment formats. See Setting Up Payment Formats for Italy. To work with payment processing in Italy: Review the overview of prepayment processing for VAT. See Understanding Prepayments for Notula in Italy. Review the overview of manual payments. See Understanding Manual Payments for Italy.
Invoice processing	To work with invoice processing in Italy: Set up invoice due dates. See Setting Up the 30/60/90 End-of-Month Invoice Date for Italy. Enter invoices for free goods to enable accounting for VAT. See Understanding Invoices for Free Goods. 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. Set processing options for the invoice print program. See Setting Processing Options for Invoice Print with International Payment Instruction (R03B5053). Print invoices with attached IPIs. See Printing Invoices with an Attached International Payment Instruction.
Accounts receivable draft processing	Before working with accounts receivable drafts in Italy, set up draft remittance formats. See Setting Up Draft Remittance Formats for Italy.
Monthly and annual close	Before you perform the standard processes to close accounts for a month, in Italy, verify the account balances. See Verifying Account Balances in Italy. In addition to the base software processes for the annual close, in Italy: Set up AAIs. See Setting Up AAIs for Italy. Complete the tasks necessary to prepare the year-end balance sheet. See Closing a Fiscal Year in Italy.
Bank statements	Use the Italian Statement Print program (R03B5002) to print statements for Italy. See Generating Statements.
Tax processing	Before you work with VAT for Italy: Set up UDCs. See Setting Up UDCs for Tax Processing for Italy. Set up register types and classes for summary VAT. See (ITA) Setting Up Register Types and Classes for Summary VAT. Set up an initial VAT balance. See (ITA) Establishing an Initial VAT Balance. To work with VAT in Italy: Use the Petrol Card Expense reports for Italy to account for petrol purchases. See Understanding Accounting for Petrol Card Expense Reports for Italy. Work with the VAT ceiling, calculate taxes and generate reports. See (ITA) Processing VAT for Italy. See (ITA) Reports for Italy.
Fixed assets	In addition to the base processes for fixed assets, in Italy: Use the Italy-specific depreciation method. See Understanding International Depreciation Methods. Generate the Fixed Assets Legal Report. See Preparing the Fixed Assets Legal Report in Italy.
Intrastat reporting	To set up and use Intrastat reporting: Review the overview about European Union reporting. See Understanding European Union Reporting. Set up UDCs. See Setting Up UDCs for Intrastat Reporting. Set up commodity codes. See Setting Up Commodity Code Information. Set up cross-references between suppliers and items to show the country of origin. See Entering Cross-References for Items and Suppliers. Set the processing options for the Intrastat workfiles programs. See Setting Processing Options for Intrastat Workfile Generation - Sales (R0018I1). See Setting Processing Options for Intrastat Workfile Generation - Procurement (R0018I2). Populate the workfiles. See Populating the Intrastat Workfile. Revise the workfiles as necessary. See Revising Intrastat Information.
Intrastat reporting (continued)	To print and purge Intrastat records: Use the IDEP/IRIS Interface program (R0018I3) to generate an electronic Intrastat declaration in the format required for Italy. See Using the IDEP/IRIS Interface for Intrastat Reporting. Purge records from the Intrastat table (F0018T). See Purging Records from the Intrastat Table (F0018T).
Other European Union reporting	In addition to Intrastat reporting, you can generate these reports: EC Sales List Reports See Printing the EC Sales List Report (R0018L). EC Sales A/R Report See Printing the EC Sale List - AR Report (R0018S).
Integrity reports	Reports for Italy enable you to: Print a list of the general ledger transactions for each month in chronological and sequential order using the G/L Registration Report (R09404). Verify the accuracy of transactions in individual account ledgers using the Debit/Credit T/B by Object program (R09473). Validate information in legal reports and can be used as the basis for internal auditing using the G/L by Category Code program (R70470). Verify the accuracy of transactions in individual account ledgers using the T/B by Category Code program (R70472). Validate information in legal reports and can be used as the basis for internal auditing using the G/L by Object and Subsidiary program (R7409C1). Verify the accuracy of transactions in individual account ledgers using the T/B by Object and Subsidiary program (R7409C3). Generate a report of VAT by tax area code using the VAT Report by Tax Area program (R00400). Print monthly reports to document accounts payable and accounts receivable VAT using the Monthly VAT Report (R004051). Print a list of the suspended VAT invoices that still need to be paid using the Invoice List Control Report (R74079). Review the total amount of VAT that is due to the Italian government using the Print VAT Summary Report (R74093). See (ITA) Reports for Italy.