Understanding Accounting for Petrol Card Expense Reports for Italy
This chapter provides overviews of petrol card expenses, prepayments for Notula, the process for calculating withholding taxes, invoices for free goods, and bank account and bank ID validation; and discusses how to:
Verify account balances.
Close a fiscal year.
Prepare the Fixed Assets Legal report.
Enter bank account information.
Revise withholding taxes.
Understanding Accounting for Petrol Card Expense Reports for Italy
In Italy, sales of petrol in petrol stations for cars and trucks do not have to be invoiced, even though petrol is VAT taxable. Every time that VAT subjects (professionals or companies) buy petrol for business purposes at a petrol station, they have to fill out a form called scheda carburante (petrol card) that documents the amount of the sale, including VAT.
Because petrol stations cannot issue invoices, the petrol card is the only document that enables VAT subjects to document the payable VAT. The card is also used when filing the annual tax declaration as proof of costs sustained by the subjects.
The petrol card is used when companies assign cars to employees. Every month employees who use company cars must attach the petrol card for the month to an expense report. The law requires the subjects to enter the kilometers traveled by each vehicle during the period on the petrol card for fiscal audit purposes. Use the Units field on the Journal Entry form to enter this amount.
The Accounts Payable employee who is responsible for expense reports management must enter all of the data that is contained on the petrol card for VAT and tax declaration purposes. Assign a specific document type when entering petrol cards in JD Edwards EnterpriseOne Accounts Payable system.
Many possible methods for accounting for petrol cards are used:
|
Method |
Description |
|
Enter the employee expense report. |
Debit - Transit account. Credit - Payable to Employee account. |
|
Post the petrol card in the JD Edwards EnterpriseOne Accounts Payable system. |
Debit - Purchases (Petrol) account. Credit - Petrol Card (dummy supplier) account. |
|
Close petrol debt. |
To close the debt to the dummy supplier (Petrol Card account), use the manual payment process and replace the Bank account with the Transit account that you used when entering the employee expense report. Debit - Petrol Card (dummy supplier) account. Credit - Transit account. |
Understanding Prepayments for Notula in Italy
Notula is the document used to defer the VAT. You can use the system to process notula for specific stages in the prepayment process:
|
Step in Prepayment Process |
Description |
|
Enter prepayment voucher |
When you enter prepayment vouchers for notula, you:
|
|
Record payment |
To record the voucher as paid, you use manual payment with voucher match for the voucher without VAT. |
|
Enter standard voucher |
Enter a standard voucher with a normal tax explanation code and tax rate. When the system determines that the supplier for the voucher is subject to withholding, the system displays the withholding window. Use the form to select the matching notula document for the voucher. The system retrieves the VAT amount along with the withholding tax amount. Distribute as usual. When you post the voucher, the system updates the tax table. |
|
Close the amounts |
Enter a second payment to close the amounts in the Accounts Payable Ledger table (F0411). |
Note. The default document type value for notula is PF. You can set up a special document type for notula in the processing options for the Notula Browse - Italy (P7404074) program.
Understanding the Process for Calculating Italian Withholding Taxes
The system processes withholding tax at specific stages of the automatic payment process:
Technical Considerations for Processing Withholding Tax Payments
When processing withholding tax payments, consider:
|
Feature |
Description |
|
Prompt payment discounts |
You cannot use prompt payment discounts with withholding tax because the withholding tax amounts are stored in the prompt payment discount fields. Accounts Payable prompt payment discounts are not used in Italy. |
|
Split payment control groups |
You cannot split a payment control group to exclude part of a voucher because this action creates a new pay item on the voucher. |
Understanding Manual Payments for Italy
When you record a payment, the system determines whether the supplier is subject to withholding tax, based on the information that you set up for the supplier. If the supplier is subject to the tax, the system displays the voucher information and updates the Discount Taken field with the withholding tax amount.
The Discount Taken field should be blank at the time that you record the payment. If the Discount Available field contains an amount, the system replaces this amount with the withholding tax amount that is calculated at payment entry time.
Important! Italian companies that manage withholding tax within the JD Edwards EnterpriseOne system are not able to apply discounts on the invoice.
Understanding Draft Collection in Italy
In Italy, companies typically do not consider a draft paid until the bank sends verification of the actual payment. In this case, the preferred practice for collecting a draft is to set the processing options for the Draft Collection with Status Update program (R03B680) so that the program does not automatically create journal entries. Instead, it updates the payment instrument for the draft to an intermediate status. The intermediate status indicates that payment for the draft has been requested from the bank, but it has not actually been received. When the bank verifies the payment of the draft, you can create and post a manual journal entry for the payment. Then you run the Draft Collection with Status Update program for the draft again to update the payment instrument for the draft to a paid status.
See Also
Understanding Invoices for Free Goods
Invoices for free goods have a zero value. In Italy, invoices for free goods must be entered into the system for fiscal and VAT reporting purposes.
When you enter invoices for free goods into the system, the first pay item represents the taxable amount with the relevant tax rate. You enter this pay item with a tax explanation code of V (VAT). The second pay item represents the gross amount (negative). To calculate the gross amount, add the first pay item taxable amount and the VAT amount. Enter the second pay item with a tax explanation code of E (exempt) with a tax rate of zero.
This table provides an example of an invoice for free goods:
|
Pay Item |
Gross Amount |
Taxable Amount |
Tax Amount |
Tax Rate Code |
Tax Explanation Code |
|
001 |
1000 |
200 |
IT20 |
V |
|
|
002 |
–1200 |
IT00 |
E |
The total invoice value is zero, and the invoice can be posted to update the Taxes table (F0018). The G/L distribution debits the Cost of Goods Sold account and credits a specific expense account for free goods.
To close the invoice, record a cash receipt through the Standard Receipt Entry program (P03B102).
Understanding Bank Account and Bank ID Validation
In Italy, businesses that remit incorrect or incomplete bank identification or account information to the bank are subject to fees. To avoid these charges, businesses must carefully validate bank identification and account information that is entered into the system during data entry.
You can set up your system to automatically validate account information when you use these programs:
Bank Account Cross-Reference (P0030A).
Bank Account Information (P0030G).
Bank Revision - Italy (P7430IT).
Enter Customer Drafts (P03B602).
Pre-Authorized Drafts (R03B671).
A/R Magnetic RIBA Draft Remittance Tape Format (R03B672IT).
The system validates account information based on the Bank ID - Italy table (F74030).
Italian banks assess a service charge when invalid account or bank identification numbers are included in the customer information that businesses remit for processing accounts receivable drafts (RiBa) and automatic payments.
Italian bank identification information consists of a transit code, which includes two 5-character segments:
The Bank Code (ABI).
The Bank Branch Code (CAB).
The ABI segment identifies the bank (for example, Banco di Napoli) and is followed by the CAB segment, which identifies the branch (for example, Banco di Napoli - Positano).
The Banca d'Italia maintains and updates valid bank identification numbers. Individual banks can provide their clients with the updated information on tape or diskette.
The JD Edwards EnterpriseOne system supports the COMIT format and ships the Bank ID - Italy table (F74030) with the localized software for Italy. You must upload the bank information that is provided by Banca d'Italia to this table. After you upload the information, you can make your own revisions to the bank table as needed.
To validate bank identification information, the system validates bank codes and branch codes when you:
Set up bank account information.
Enter accounts receivable drafts.
Generate pre-authorized accounts receivable drafts.
Create the accounts receivable drafts remittance table.
The system validates the customer bank information against the valid bank identification information in the F74030 table.
The programs that validate account information and bank identification information are described in this table:
|
Program |
Function |
|
Bank Account Information (P0030G) |
The system issues an error on the Revise Bank Information form if bank information is missing or invalid. |
|
Bank Account Cross-Reference (P0030A) |
If the Localization Country Code field in the User Profile Revisions form is not blank and the customer, supplier, or employee country code on the Address Book Revision form is IT (Italy), the system issues an error on the Set Up Bank Accounts By Address form if bank information is missing or invalid. |
|
Enter Our Drafts or Enter Customer Drafts (P03B602) |
The system issues an error on the Draft Entry form if bank information is invalid. |
|
Pre-Authorized Drafts (R03B671) |
The system prints an error report that lists customers with missing or invalid bank information. You can review the list to correct or update the bank information before you generate the drafts. |
|
A/R Magnetic RIBA Draft Remittance Tape Format (R03B672IT) |
When you remit drafts, the system validates bank information again and includes the drafts for all of the specified customers in the electronic bank file. The system prints an error report that lists the customers with missing or invalid bank information. |
Verifying Account Balances in Italy
This table lists the standard procedures that companies in Italy should perform before month-end reporting is completed.
|
Procedure |
Report |
Description |
Frequency |
|
Verify that document numbers are in sequence. |
Sequential Number Report (R74099A, R74099B, R74099C, and R74099D) |
This report shows any interruption in the document number sequence and in the registration date sequence. |
Daily |
|
Print a list of all unposted batches. |
Unposted Batches Integrity Test (R007011) |
This report shows any unposted batches. Post all batches before you verify balances. |
Weekly |
|
Verify that the batch detail and batch header information match. |
Transactions to Batch Headers Integrity Test (R007021) |
This report shows mismatches between batch headers and the individual transactions within the batch. Mismatches might include transactions for which no batch header or posted transactions exist. |
Weekly |
|
Balance the AR and GL ledgers. |
A/R to G/L by Batch Integrity Test (R03B701) |
This report checks the balance between the F03B11 and F0911 tables by batch number. If the F03B11 and F0911 ledgers are out of balance, use the Supplier/Customer Totals by Account report (R09450) as an additional verification tool. The report also shows anomalous situations regarding the payment status. |
Weekly |
|
Balance the AR and GL ledgers by accounting class. |
A/R to G/L by Accounting Class Integrity Test (R03B7001A) |
This report matches the F03B11 to the F0902 table by accounting class. |
Weekly |
|
Balance the AP and GL ledgers. |
A/P Original Documents to G/L by Batch Integrity Test (R04701) |
This report checks the balance between the F0411 and F0911 tables by batch number. If the F0411 and F0911 tables are out of balance, use the Supplier/Customer Totals by Account report (R09450) as an additional verification tool. The report also shows anomalous situations regarding the payment status. Note. If the Bolle Doganali are entered as prepaid documents, the ledger and the Customs debit account might be out of balance. |
Weekly |
|
Balance the AP and GL ledgers by accounting class. |
A/P Originals to G/L by Batch Integrity Test (R047001A) |
This report matches the F0411 and F0902 tables by offset account. |
Weekly |
|
Print trial balance reports. |
T/B by Object and Subsidiary (R7409C3) Trial Balance by category code 21, 22, 23 (R70472) |
These trial balance reports print by object.subsidiary and by category codes 21, 22, and 23. |
Monthly |
|
Print monthly VAT reports. |
Monthly VAT Report (R004051) |
Print a version of this report for EU VAT purchases to show the currency amounts of your invoices. Print other versions of the report to show the rest of the VAT ledgers. |
Per tax regulations |
Closing a Fiscal Year in Italy
This section provides an overview of the tasks and the preparation necessary to close a fiscal year in Italy.
Understanding Tasks for Closing a Fiscal Year
In Italy, businesses must complete these tasks at the close of the fiscal year to prepare the year-end balance sheet:
Adjust and integrate journal entries.
Close profit and loss accounts for revenues and expenses that were recorded during the year without carrying over the balance.
Calculate retained earnings.
Close balance sheet accounts on a summary account ending balance sheet and reopen the same balance sheet accounts for the next fiscal year.
During the close of the fiscal year and the preparation of the balance sheet, Italian businesses must run these control reports:
T/B by Object and Subsidiary (R7409C3) or T/B by Category Code (R70472)
G/L Registration Report (R09404)
G/L by Object and Subsidiary (R7409C1)
G/L by Category Code (R70470)
You must run the Trial Balance report in final mode to perform a final annual close as well as to prevent users from entering transactions after a year-end close. In final mode, the records included in the report are flagged in the F0911 table to indicate that they have been printed in final mode. This prevents the records from being printed in final mode again. An error message is printed on the report if any records have been printed in a previous final mode report. New transactions are visible on the report because they are not flagged with the same date as older transactions, which have the date when the report was run in final mode for the closed year. The word Final is printed on every page of a report that is run in final mode.
Note. Because running the Trial Balance report in final mode flags the records as having been printed, you should run the Trial Balance report before the GL reports. Businesses print the GL reports at least once a year for all accounts, typically at the end of the fiscal year.
See Also
Preparing the Fixed Assets Legal Report in Italy
This section provides an overview of the Fixed Assets Legal report for Italy and discusses how to:
Prepare the Fixed Assets Legal report.
Set processing options for the Fixed Assets Legal (R7412100) report.
Understanding the Fixed Assets Legal Report
Italian law requires that companies submit Fixed Assets Legal Report - Italy (R7412100) (Registro dei beni ammortizzabili) prior to the final date for filing the tax report (Dichirazione dei Redditi) with the Fiscal Authority. The Fixed Assets Legal Report - Italy must be printed on prenumbered, stamped, and formatted paper.
The Fixed Assets Legal Report is a plain paper report that provides information that is needed to complete the official legal report. The Fixed Assets Legal Report does not comply with specific format requirements.
The Fixed Assets Legal Report includes this information for depreciable assets (both material and nonmaterial assets):
Acquisition date.
Original cost.
Revaluation.
Devaluation.
Accumulated depreciation as of the end of the previous fiscal period.
The anticipated accumulated depreciation (fondo ammortamento anticipato) is displayed separately from the standard accumulated depreciation, when applicable.
The actual depreciation coefficient applied during the fiscal period.
The depreciation expenses for the fiscal period.
The anticipated depreciation expenses for the fiscal period, when applicable.
Disposals (sale or other).
Preparing the Fixed Assets Legal Report
Select Italian Reports (G093152), Legal Fixed Assets Report.
Setting Processing Options for the Fixed Assets Legal Report (R7412100)
Set these processing options to specify the default processing and printing for the report.
Processing
Use these processing options to specify how to process the report.
|
1. Enter the Legal Company |
Specify the code that identifies a specific organization, fund, or other reporting entity. The company code must already exist in the Company Constants table (F0010) and must identify a reporting entity that has a complete balance sheet. At this level, you can have intercompany transactions. Note. You can use company 00000 for default values such as dates and automatic accounting instructions (AAIs). You cannot use company 00000 for transaction entries. |
|
2. Enter the Ledger Type. The default value is 'AA' |
Specify the user-defined code (UDC) (09/LT) that identifies the type of ledger, such as AA (Actual Amounts), BA (Budget Amount), or AU (Actual Units). You can set up multiple, concurrent accounting ledgers within the general ledger to establish an audit trail for all transactions. |
|
3. Period |
Enter the number indicating the current accounting period. This number, used in conjunction with the Company Constants table (F0010) and the General Constants table (F0009), enables the user to define up to 14 accounting periods. The current period number is used to determine warning messages for posted before and posted after cut off. It is also used as the default accounting period in the preparation of financial reports. Leave blank to use the current period. |
|
4. Fiscal Year |
Enter the number that identifies the fiscal year. You can either enter a number in this field or leave it blank to indicate the current fiscal year (as defined on the Company Setup form). Specify the year at the end of the first period rather than the year at the end of the fiscal period. For example, a fiscal year begins October 1, 1998 and ends September 30, 1999. The end of the first period is October 31, 1998. Specify the year 98 rather than 99. |
|
5. Enter the subledger type that indicates the appreciation of the fixed asset |
Specify the UDC (00/ST) that is used with the Subledger field to identify the subledger type and how the system performs subledger editing. On the User Defined Codes form, the second line of the description controls how the system performs editing. This is either hard-coded or user-defined. Values include: A: Alphanumeric field, do not edit. N: Numeric field, right justify and zero fill. C: Alphanumeric field, right justify and blank fill. |
|
6. Object Account |
Enter the object account for plus values. This portion of a general ledger account refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden. Note. If you use a flexible chart of accounts and the object account is set to 6 digits, it is recommended that you use all 6 digits. For example, entering 000456 is not the same as entering 456 because if you enter 456 the system enters three blank spaces to fill a 6-digit object. |
|
7. Subsidiary |
Enter the subsidiary for plus values. This is a subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account. |
|
8. Object Account |
Enter the object account for minus values. This portion of a general ledger account refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden. Note. If you use a flexible chart of accounts and the object account is set to 6 digits, it is recommended that you use all 6 digits. For example, entering 000456 is not the same as entering 456 because if you enter 456 the system enters three blank spaces to fill a 6-digit object. |
|
9. Subsidiary |
Enter the subsidiary for minus values. This is a subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account. |
|
10. Report by parent |
Enter 1 for a report by parent fixed asset. Enter 0 for a report by fixed asset code. The default value is 0. |
Printing
Use these processing options to specify how to print the report.
|
1. Enter the Fixed Asset code to print. |
Specify which type of Fixed Asset code to print on the report. Values are: 1: Fixed Asset Code. 2: Unit Number. 3: Lot/serial Number. The default value is 1. |
|
2. Enter '1' if you do not want to print program name, print date and page numbers |
Specify whether to print the program name, print date, and page numbers. Values are: 1: Do not print program name, print date, and page numbers. Blank: Print program name, print date, and page numbers. |
Setting Up Bank Information in Italy
This section provides overviews of Italian bank ID information and bank number conversions and discusses how to:
Upload Italian bank ID information.
Revise Italian ID information manually.
Convert Italian bank numbers.
Set processing options for Italian Bank Number Conversion (R74800).
Understanding Bank ID Information
You can automatically update bank identification information from a tape or diskette to your system. To do so, you must first use a custom program to upload the bank tape or diskette to the Bank Upload - Italy table (F74301), which is a temporary work table. You then run the Bank ID Table Upload - Italy program (R74301) to upload the information from the F74301 table to the Bank ID - Italy table (F74030).
The Bank ID Table Upload - Italy program is based on the COMIT record layout. You might need to customize the program to meet your specific needs.
Understanding Italian Bank Number Conversions
You must run the Italian Bank Number Conversion program (R74800) to move the SIA code from the Bank User Number field to the Reference/Roll Number field in the Bank Transit Master table (F0030).
This conversion is necessary because the SIA code, which formerly was a numeric value, is now an alphanumeric code.
You can run the conversion program in proof or final mode. Proof mode prints a report of all selected GL bank accounts that shows the original value for the Bank User Number and Reference/Roll Number fields. Final mode clears the Bank User Number field, updates the Reference/Roll Number field, and prints the converted values on the report.
Enter the SIA code in the Reference/Roll Number field when entering bank account information in the Bank Account Cross-Reference program (P0030A) and the Bank Account Information program (P0030G).
Form Used to Set Up Bank Accounts
Uploading Italian Bank ID Information
Select Italian Bank File Processing (G00215), Bank ID Table Upload - Italy.
Revising Italian Bank ID Information Manually
Access the Bank Revision - Italy form.
|
Name |
Enter the full name of the bank associated with a bank transit number (ABI/CAB). The value in this field is pre-loaded in the Bank ID - Italy table (F74030) and can be maintained in the Bank Revision - Italy program (P7430IT). |
|
Address |
Enter the address (street and number) of the bank. The value in this field is pre-loaded in the F74030 table and can be maintained with the Bank Revision - Italy program. |
|
City |
Enter the administrative division of the municipality where the bank is located. The value in this field is pre-loaded in the F74030 table and can be maintained in the Bank Revision- Italy program. |
|
Town |
Enter the name of the town where the bank is located. The value in this field is pre-loaded in the F74030 table and can be maintained with the Bank Revision - Italy program. |
|
Postal Code |
Enter the postal code of the town where the bank is located. The value in this field is pre-loaded in the F74030 table and can be maintained with the Bank Revision - Italy program. |
|
State |
Enter a code from UDC table 00/S that specifies the state or province. This code is usually a postal service abbreviation. |
|
Default CAB Location |
Enter the default location of the bank branch code (Italian CAB code). The value in this field is pre-loaded in the F74030 table and can be maintained with the Bank Revision - Italy program. Examples of the location are: CAB 1600: Default Milano CAB CAB 1601: Milano Centro CAB 1602: Milano Duomo CAB 1603: Milano Scala |
|
Short Name |
Enter a user defined name or remark. |
Converting Italian Bank Numbers
Select Italian Bank File Processing (G00215), Italian Bank File Processing.
Setting Processing Options for Italian Bank Number Conversion (R74800)
Processing options enable you to specify the default processing for programs and reports.
Process
|
1. Enter '1' to process in final mode or leave blank for proof mode. Final mode will update selected G/L bank accounts in the Bank Transit Number Master (F0030). Proof mode will print the original values for review. |
Specify the mode in which to run the report: Proof mode: Prints the original values for review. Final mode: Updates selected GL bank accounts in the F0030 table. |
Revising Withholding Taxes in Italy
This section provides an overview of revising withholding tax and discusses how to revise withholding tax details.
Understanding Withholding Tax Revisions
You can revise the withholding tax information that the system stores in the Withholding Tax Detail - Italy table (F74411) by using the Withholding Tax Revisions program (P740411). You can also use the Withholding Tax Detail - Italy form to review all of the withholding tax information for a specific voucher.
Important! The information that you revise by using the Withholding Tax Detail - Italy form immediately updates the F74411 table. The system does not recalculate taxes and related amounts. You should revise withholding tax information only in exceptional cases, such as when you must adjust the withholding tax information manually.
If you are implementing the JD Edwards EnterpriseOne Accounts Payable system for the first time, you can use the Withholding Tax Detail - Italy form to load open withholding tax information from your previous system.
Form Used to Revise Withholding Tax
|
Form Name |
FormID |
Navigation |
Usage |
|
Withholding Tax Detail - Italy |
W740411C |
Italian Tax Processing (G002131), Withholding Tax Revisions On the Work With Withholding Tax - Italy form, select a record and click Select. |
Revise withholding information. |
Revising Withholding Tax Information
Access the Withholding Tax Detail - Italy form.
|
W/T Code (withholding tax code) |
Enter the withholding tax code that defines the withholding tax rates. The system uses this information to calculate withholding tax when you enter supplier vouchers for suppliers that are subject to withholding tax. |
|
Status |
Enter the status of the withholding tax. The system stores the status in the F74411 table. Values are: 0: Withholding tax added during voucher entry. 1: Voucher paid to supplier (debt towards fiscal authority). 2: Withholding tax paid to fiscal authority. 9: Withholding tax canceled. |
|
Taxable Amount Subject to W/T (taxable amount subject to withholding tax) |
Enter the taxable amount of an invoice/voucher that is subject to withholding tax. |
|
Withholding Tax Amount Paid |
Enter the amount of the withholding tax paid. |
|
Withholding Tax Foreign Amount Paid |
Enter the foreign withholding tax amount paid in a given currency. You can maintain this field in the Withholding Tax Codes Italy (P740405) program. |
|
Payment Date |
Enter the date on which the withholding tax is paid to the government. |
|
Government Date |
Enter the date the withholding tax was remitted to the fiscal authority. |
|
Withholding Tax Payment Reference |
Enter the number of the payment made to the fiscal authority. This reference is entered in a processing option of the Generate Withholding Tax Payments program. |