(COL) Setting Up Functionality for Colombia

This chapter discusses how to:

• Set up user-defined codes (UDCs).

• Set up cost accounts for depreciation and inflation adjustments.

• Set up address book information for Colombia.

• Set up payment formats for Colombia.

Setting Up UDCs for Colombia

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

• Set up UDCs for tax processing.

• Set up UDCs for address book records and accounts payable.

Setting Up UDCs for Tax Processing for Colombia

In addition to setting up UDCs in system 76C, you set up category code UDCs in system 09 for:

• Tributary codes

• Tributary subcodes

• Department municipal codes

• Accounts to report

For example, you might set up UDC 09/10 to identify tributary codes, and set up UDC 09/20 to identify tributary subcodes.

You must also set up a system 00 category code UDC for economic activity codes for the business unit for which you report. For example, you might set up UDC 00/15 with economic activity codes.

See Setting Up Business Units.

Taxes by City/Economic Activ. (76C/AE)

Set up codes that identify taxes by city and economic activity. Use the Description 02 field to enter the category code UDC for system 00 that you establish for city codes. The system 00 UDC includes the source city for which you pay taxes by city and economic activity. For example, if you use UDC 00/20 to set up city codes for tax accounting, enter 20 in the Description 02 field.

The system uses the values in the 76C/AE UDC when it calculates taxes by economic activity.

Ciiu Code Colombia (76C/CI)

Set up codes that correspond to the Unified Industrial Information Codes. The system uses the values in the UDC when you run the Movements Selection (R76C0110) program to report taxes.

Minimal Description Top (76C/CM)

Set up codes that the system uses to identify accounts which do not meet the minimum amounts. Enter the tributary code and subcode in the Codes field, and enter the account description in the Description 01 field. If the account description does not fit in the Description 01 field, you can use the Description 02 field for the additional text. The system prints the text from the Description 01 and Description 02 fields in the report generated by the Identification and Stamping of Movements (R76C0130) program, which also writes the description to the F76C575 table.

Enter in the Special Handling Code field the subcode by which the system summarizes the accounts which do not meet the minimum reportable amount. You obtain the subcodes from DIAN.

Dependence Code SubCode (76C/DP)

Set up this UDC to identify the original subcode for accounts that currently show tributary code 72 and tributary subcode 11. The system uses this information for accounts for which the tax is dependent on the original expense.

Description of Third Foreign (76C/EX)

Set up codes to identify the tributary subcodes used for foreign payments. Enter the tributary code and subcode that you obtain from DIAN in the Codes field, and enter the description of the codes in the Description 01 field. Use the Special Handling Code field to enter the subcode for foreign payments.

The system uses the values that you set up when you run the Movements Select (R76C0110), Liabilities Selection (R76C0119A), and Identification and Stamping of Movements (R76C0130) programs.

Industry/Commerce withholding (76C/IC)

Set up values to identify tax types for international commerce withholding.

Value Added Tax (76C/IV)

Set up values to identify types of VAT.

Person/Corporation Code (76C/PC)

Specify the person or corporation code in the Code field, and enter the appropriate abbreviation in the Description 02 field. The system uses the values in the Description 02 field on legal reports.

Enter a Y or a 1 for the codes for which the system edits the fiscal ID and calculates the control digit. Enter a 2 for the codes for which the system edits the fiscal ID and does not calculate the control digit. Enter N for the codes for which the system does not edit the fiscal ID and does not calculate the control digit.

For example, you might enter a code of A with the abbreviation of NIT in the Description 02 field, and enter a code of C with the abbreviation of C.C in the Description 02 field.

The system uses the values in this UDC when you run the Movements Selection (R76C0110) program.

Period (76C/PE)

Set up codes to identify the period for which you generate withholding certificates. The system uses the values in this UDC when you run the Rent Withholding (R76C0001) program the VAT Withholding (R76C0003) program, or the Timbre Withholding (R76C0004) program.

Range of Tax ID (76C/PR)

Set up codes to identify ranges for tax IDs that the system uses to validate tax IDs. The first character of the three-character code that you enter in the Codes field is a value from the Person/Corporation Code (76C/PC) UDC table. The second and third characters indicate the number of the range for the code. Enter the minimum value of the range in the Description 01 field, and enter the maximum value of the range in the Description 02 field. You can set up a maximum of five tax ID ranges for each person or corporation code.

For example, you might set up these codes:

• Code: A01, Description 01: 0000000, Description 02: 3000000

• Code: A02, Description 01: 3000001, Description 02: 6000000

• Code: A03, Description 01: 6000001, Description 02: 9999999

The system uses these values when you run the Movements Selection program (R76C0110).

Rent Withholding Tax (76C/RT)

Set up codes to identify tax types for rent withholding.

Tax Payer Type (76C/TC)

Set up codes to identify the tax payer type.

DIAN Person Type (76C/TP)

Set up codes that the system uses to identify the person type. Enter the code for identifying tax payer types to DIAN in the Description 02 field. If you do not set up codes in this UDC, the system uses the person types established in the H00/TA UDC.

Max. amount for magnetic tape (76C/TR)

Set up codes to establish the minimum amounts reported when reporting taxes by magnetic tape. Enter the tributary code and subcode in the Codes field, and enter the minimum amount to report in the Description 01 field. You obtain these values from DIAN.

Enter codes in the Special Handling Code field to identify which tributary codes and subcodes are totaled for comparison to the minimum. For example, if accounts with tributary code 72 and subcode 00 are totaled with accounts with tributary code 72 and subcode 01, assign these lines the same special handling code, such as 01.

The system uses the values that you enter when you run the Identification and Stamping of Movements program.

Setting Up UDCs for Address Book Records and Accounts Payable for Colombia

This table lists UDCs that you must set up for address book records and accounts payable for Colombia:

Setting Up Address Book Information for Colombia

This section provides an overview of address book information for Colombia and discusses how to set processing options for Address Book Colombian Additional Information (P76C0101).

Understanding Address Book Information for Colombia

Oracle's JD Edwards EnterpriseOne software provides a Colombia-specific form for address book information.

In addition to completing the fields on the Colombian Additional Information Revisions form, you must complete these fields on the Address Book Revision form in the base software:

See Also

(COL) Entering Additional Address Book Information

Setting Processing Options for Address Book Colombian Additional Information (P76C0101)

Set this processing option before you enter company, customer, and supplier information for Argentinean companies and individuals. The system uses the values in this processing option for county-specific processing.

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Setting Up Cost Accounts for Depreciation and Inflation Adjustments for Colombia

This section provides an overview of cost inflation adjustments, an overview of cost accounts for depreciation, and discusses how to:

• Set up cost accounts for inflation adjustments.

• Set up cost accounts for depreciation adjustments.

See Also

Setting Up Depreciation Default Values

Understanding Cost Inflation Adjustments

For accurate financial reporting and income tax, Colombian companies adjust the cost amounts of their assets for inflation. These adjustments are recorded in fixed asset inflation adjustment accounts according to the government’s requirements. The asset’s adjusted cost, along with the depreciation inflation adjustment, is used to calculate depreciation.

Note. To adjust current period cost adjustment amounts for inflation, make the cost adjustments before you perform inflation adjustment for the current period. Otherwise, make the cost adjustments after you perform inflation adjustment for the current period.

You set up cost inflation adjustments accounts by company, entering the information by each company and cost account and specifying the related credit (monetary correction) and debit accounts that the system uses to generate the inflation adjustment journal entry. If you use only one ledger, the debit account is the cost inflation adjustment account. If you use two ledgers (subledger for inflation adjustments), the debit account is the same as the cost account. In either case, the credit account is the monetary correction account.

Understanding Depreciation Inflation Adjustment Accounts

You set up Depreciation Inflation Adjustments accounts by company. In the debit account (monetary correction) and the credit account, enter the accounts to be applied in the depreciation inflation adjustments journal entry. If you use only one book, the debit account is the depreciation inflation adjustment account. If you use two books (subledger for inflation adjustments), the debit account can be the depreciation account or the depreciation inflation adjustment account. In either case, the debit account is the monetary correction account. The system uses the debit and credit accounts to create the inflation adjustment journal entry.

Note. If you do not set up cost accounts in this application, the system will not generate the journal entry.

Forms Used to Set Up Cost Accounts for Depreciation and Inflation Adjustments

Setting Up Cost Accounts for Cost Inflation Adjustments

Access the Adjustment by Inflation to Cost / Deferred Charges Revision form.

Note. If you do not set up cost accounts in this application, the system will not generate the journal entry.

Setting up Cost Accounts for Depreciation Adjustments

Access the Adjustments by Inflation to Depreciation Revision form.

Setting Up Payment Formats for Colombia

This section provides an overview of payment formats and discusses how to set up processing options for Print Automatic Payments - COL (R76C572).

Understanding Payment Formats for Colombia

After you assign payment print programs to payment instruments, you must review and revise, if necessary, the processing options for the formats used by the print programs. The payment print program that you assign to a payment instrument launches the version of the payment format when you process payments. For example, P04572 launches the R04572 program. To make changes to the processing options for the payment formats, access them from the Batch Versions program (P98305), entering R instead of P in the first position of the name of the payment format program. The processing options further define the format of each component of a payment instrument.

JD Edwards EnterpriseOne software provides these payment formats for Colombia:

Setting Processing Options for Print Automatic Payments - COL (R76C572)

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

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