(JPN) Setting Up Country-Specific Functionality for Japan

This chapter discusses Japan-specific setup and processes that you use in addition to the standard setup and processes provided in the base software, and discusses how to:

• Set up user-defined codes (UDCs).

• Set up supplier information.

• Set up withholding schedules for Japan.

• Set up hankin hante payments and drafts for Japan.

• Set up payment formats for Japan.

Setting Up UDCs for Japan

Setting up Japan-specific UDCs enables you to use Japan-specific functionality. You also set up some base software UDCs with Japan-specific values. This section discusses how to:

• Set up UDCs for Accounts Receivable transactions.

• Set up UDCs for Accounts Payable transactions.

• Set up UDCs for bank accounts.

• Set up UDCs for general purposes.

  See Setting Up UDCs for Accounts Payable.

Setting Up UDCs for Accounts Receivable Transactions for Japan

To use the JD Edwards EnterpriseOne Accounts Receivable system for Japan, set up UDCs for receipts and drafts.

Receipt Type - Japan (75/RE)

Set up UDCs to identify each type of receipt that you want to include in the summarized invoices (Kagami) that you print. For example, you can set up codes for these types of receipts:

• RA - A - Adjustment

• RC - C - Cash receipts

• RK - A - Cash receipts - check

• RO - A - Reversing or void

• RV - A - Insufficient funds

• RA - A - Chargeback

• R1 - D - Draft

Draft Status Code (75/PS)

Set up this user defined code to identify the status of Japanese drafts. Set up these codes:

• #: Selected

• D: Received

• G: Remitted

• P: Paid (discounted drafts)

• R: Updated (discounted drafts)

Setting Up UDCs for Accounts Payable Transactions for Japan

The JD Edwards EnterpriseOne Accounts Payable system for Japan requires that you set up UDCs for payment instruments and withholding tax.

Payment Instruments (00/PY)

To process discounted drafts in Japan, you must define a special payment instrument for discounted drafts. The system uses the special payment instrument with the RD3x automatic accounting instruction (AAI) to create the contingent liability transactions for discounted drafts.

For Japan, set up these values in UDC 00/PY:

• D - Draft by invoice (AR & AP).

• Q - Bank transfer - Japan.

You must also set up a payment instrument to calculate withholding for Japan.

Withholding Tax Category (75/WT)

Set up codes to identify each type of withholding tax category that your company uses. For Japan, set up codes for these withholding tax authority types:

• Blank: without calculation

• 1: Resident

• 2: Nonresident

• 3: Attorney

See Setting Up UDCs for Accounts Payable.

Setting Up UDCs for Bank Accounts for Japan

You must set up Japanese-specific UDCs to identify bank transfers for accounts.

Bank Transfer Type (75/TT)

Set up UDCs to identify each type of bank transfer that your company uses. For Japan, set up codes for these bank transfer types:

• Blank: Default.

• E: Express bank transfer with bank charge.

• L: Letter bank transfer with bank charge.

• 7: Express bank transfer without bank charge.

• 8: Letter bank transfer without bank charge.

  See Understanding the Create Payment Control Groups Program.

Setting Up UDCs for Languages for Japan

In addition to setting up the standard UDCs for the JD Edwards EnterpriseOne Address Book system, you must set up these Japanese-specific UDCs for language preferences.

Language Preference Codes (01/LP)

Language preference codes specify the language for documents such as invoices and statements and reports. Before any translations become effective, a language code must exist at either the system level or in your user preferences.

The language preference codes work in conjunction with vocabulary overrides to select the correct language translation. Examples include:

DU: Dutch

E: English

F: French

For Japan, a 3 is required in the Special Handling Code field of UDC table 01/LP to enable the Secondary Alpha Name field of an address book record to allow Kana names. The 3 in the Special Handling Code field also enables searching the Description field on the Business Unit form.

Setting Up Supplier Information for Japan

This section provides an overview of the additional supplier information required for Japan, lists prerequisites, and discusses how to set up supplier information.

Understanding Supplier Information for Japan

In Japan, in addition to the standard supplier information, you must set up information that is required to process drafts and bank transfers. This additional information includes:

• Payee address number

• Bank transfer type

• Payment term

• Withholding tax category

• Draft ratio

You can access the additional information for a supplier from the Supplier Master Information form when you add a new supplier to the system or change the information for an existing supplier.

See (JPN) Setting Up Supplier Information for Japan.

Prerequisites

Before you complete the tasks in this section:

• Set up payment terms for drafts.

  See Setting Up Standard Payment Terms.

• Set up values in the Bank Transfer Type (75/TT) UDC table for transfer types.

Form Used to Set Up Supplier Information for Japan

Setting Up Supplier Information for Japan

Access the Address Book Revision Japan form.

Bank Transfer Type	Specify the type of bank transfer. You define bank transfer types in the Bank Transfer Type UDC (75/TT). Values are: E: Express bank transfer with bank charge. L: Letter bank transfer with bank charge. 7: Express bank transfer without bank charge. 8: Letter bank transfer without bank charge.
Payment Terms	Enter the code that is used as a default payment term to calculate a maturity date when you create draft payments.
Withholding Tax Category	Enter a tax category code that determines the withholding tax amount charged on professional services.
Draft Ratio	Enter the percentage of the hankin hante payment that is split to a draft payment by Japan's automatic split (hankin hante) process. This number is expressed as a whole decimal. For example, 20 percent would be expressed as .2000.

Setting Up Withholding Schedules for Japan

Use the Withholding Revisions - Japan program to set up schedules for withholding for suppliers. You set up schedules for the different types of suppliers. For example, you might set up a schedule for a resident supplier and one for a non resident supplier.

This section lists the forms used to set up withholding and discusses how to set up withholding schedules.

Form Used to Set Up Withholding

Setting Up Withholding Schedules

Access the Enter Withholding Information form.

Setting Up the System for Hankin Hante Payments and Drafts for Japan

This section provides overviews of the required setup for hankin hante payments and the stamp tax table, lists prerequisites, and discusses how to:

• Set up payment split and draft split amounts.

• Set up the stamp tax table.

Understanding the Required Setup for Hankin Hante Payments

Before you automatically split hankin hante payments into drafts and bank transfer payments, or split drafts into smaller drafts, you must set up the Hankin Hante Split Amounts table (F75J04SA) with the split amounts for bank transfers and drafts. When you access the F75J04SA table using the Hankin Hante Split Amounts program (P75J0411), you select an option to specify whether to set up payment splits or draft splits. When you specify to set up payment splits, you create a list that the system uses to determine the amounts at which to split a hankin hante payment into a draft and a bank transfer. When you specify to set up draft splits, you create a list that the system uses to determine the amounts at which to split draft payments.

You must set up the F75J04SA table with a list of payment splits before you can run the Automatic Payment Split - Hankin Hante program (R75J04PS), and you must set up the F75J04SA table with a list of draft splits before you can run the Automatic Draft Split - Hankin Hante program (R75J04DS). If you do not set up the F75J04SA table with the appropriate lists, the Automatic Payment Split - Hankin Hante and Automatic Draft Split - Hankin Hante reports print an error message, and the programs do not split the payments or drafts.

Generally, you set up payment splits and draft splits once and modify them only when your company changes its hankin hante payment policy.

Understanding the Stamp Tax Table

When businesses in Japan issue drafts for payment, they are required to pay a stamp tax. The tax amount depends on the amount of the draft.

To calculate and report on the stamp tax for accounts payable drafts, you must set up and maintain the Stamp Tax - Japan table (F75013) through the Stamp Tax Revision - Japan program (P75013).

Note. The Stamp Tax Revisions form is not a multicurrency form. The system recognizes only your company currency for the records in the F75013 table.

Prerequisites

Before you complete the tasks in this section:

• Assign the same payment instrument to each supplier for which you want to split payments into drafts and bank transfers.

  See Setting Up Payment Instruments and Print Programs.

• Assign a draft ratio to each supplier.

  See Setting Up Supplier Information for Japan.

Forms Used to Set Up Payment Split and Draft Split Amounts and the Stamp Tax Table

Setting Up Payment Split and Draft Split Amounts

Access the Set Up Hankin Hante Split Amounts form.

Payments	Select to specify that the split amount is for payments.
Drafts	Select to specify that the split amount is for drafts.
Split Amount	Enter the amount at which the system splits payments or drafts in the Hankin Hante process. The system stores split amounts for payments and drafts in the F75J04SA table. The Automatic Payment Split - Hankin Hante program (R75J04PS) uses the split amounts to determine the level breaks for creating drafts and bank transfer payments. When you run the R75J04PS program, the system: Applies the value in the Draft Ratio (data item DRATIO) field that is specified for each payee to the selected AP payments to determine the maximum draft amount. For example, if the draft ratio is 50 percent, then no more than 50 percent of the total payment can be a draft. Reads the F75J04SA table to determine the highest split amount that is less than or equal to the result of applying the draft ratio to the payment. For example, if payment split amounts are defined in 100,000 yen increments beginning with 100,000 yen, a payment of 420,000 yen with a 50 percent draft ratio is split into a 200,000 yen draft and a 220,000 bank transfer payment. The Automatic Draft Split - Hankin Hante program (R75J04DS) uses the split amounts that you set up for drafts to split AP drafts into smaller drafts. During the automatic draft split process, the original draft is split into two or more smaller drafts using either the split amounts that are identified here, or using a fixed amount. You set a processing option to specify whether the system uses the split amount levels in the F75J04SA table or a fixed amount at which to split a payment. If you use the levels in the F75J04SA table, each split uses the highest draft split amount that is stored in the table that is less than or equal to the remaining amount. For example, if draft split amounts are defined in 200,000 yen increments beginning with 100,000 yen, a draft of 475,000 yen would be split into three drafts of 300,000 yen, 100,000 yen, and 75,000 yen.

Setting Up the Stamp Tax Table

Access the Stamp Tax Revision - Japan form.

Payment Amount (More Than)	Enter the amount of the payment.
Stamp Tax	Enter the amount that is assessed and payable to tax authorities. It is the total of the value-added tax , use, and sales taxes (PST).

Setting Up Payment Formats for Japan

This section provides an overview of payment formats for Japan and discusses how to:

• Set processing options for the Create A/P Bank Tape - Japan (R04572JP) program.

• Set processing options for the Print Automatic Payments - Draft Format (R04572N) program.

Understanding Payment Formats for Japan

JD Edwards EnterpriseOne software provides these payment formats for Japan:

Setting Processing Options for Create A/P Bank Tape - Japan (R04572JP)

Processing options enable you to specify the default processing for programs and reports.

Tape

Use these processing options to specify the default values for the bank tape.

Tape (more)

Setting Processing Options for Japan Bank Transfer Paper (R04573JP)

Processing options enable you to specify the default processing for programs and reports.

Date Selection