Understanding Tax Withholding Certificates for Ecuador
This chapter provides an overview of tax withholding certificates, lists prerequisites, and discusses how to:
Set up user-defined codes (UDCs).
Set up next numbers.
Set up payment formats.
Understanding Tax Withholding Certificates for Ecuador
When processing payments for Ecuador, you must produce a withholding certificate that lists the withholdings for rent and value-added tax (VAT). The system launches the Withholding Certificate - EC (R76E4010) program to produce the withholding certificate when you post payments.
The system uses the first line in the tax area to determine rent withholding.
Prerequisites
Before processing payments for Ecuador:
Verify that the tax rate areas for Ecuador are set up to use the first line for rent withholding .
Verify that a next numbering scheme is set up for withholding certificates.
Verify that the values of U2 and U3 exist in the Document Types (00/DT) UDC table.
Verify that appropriate values exist in the Fiscal ID Size (76E/TL) UDC table.
Setting Up UDCs for Ecuador
Setting up Ecuadoran-specific UDCs enables you to use Ecuadoran-specific functionality. You also set up some base software UDCs with Ecuadoran-specific values.
Setting Up UDCs for Address Book Records and Accounts Payable for Ecuador
In addition to UDCs that you must set up in the base software, this table lists UDCs that you must set up for address book records and accounts payable for Ecuador:
|
UDC |
System |
Description |
|
JD Edwards EnterpriseOne Address Book |
Record identification type codes specify the entity for which you are creating an address book record. Values are: Blank: Corporate entity 0: No validation 1: Individual 2: Corporate entity 3: Both an individual and a corporate entity 4: Non-corporate entity 5: Customs authority C: Corporate entity N: Non-corporate entity P: Individual Enter the number of characters for the tax identification number in the Special Handling field. |
|
|
JD Edwards EnterpriseOne Address Book |
The tax person code specifies the type of tax payer. Examples include: E: Special N: Non-special P: Person Z: Foreigner |
|
|
JD Edwards EnterpriseOne Accounts Payable |
Use this UDC to set up codes for person types. |
|
|
JD Edwards EnterpriseOne Accounts Payable |
Use this UDC to set up values for the character length of fiscal identification numbers. Enter a code in the Codes field, and enter the character length in the Description 02 field. |
See Setting Up User-Defined Codes for Address Book.
See Setting Up UDCs for Accounts Payable.
Setting Up Next Numbers for Ecuador
You must set up next numbering schemes by company for system 76E (Ecuador) to process withholding certificates for rent and VAT withholding. Set up a next numbering scheme for document type U2 to process rent withholding, and set up a next numbering scheme for document type U3 to process rent withholding.
See Setting Up Next Numbers by Company and Fiscal Year.
Setting Up the Payment Format for Ecuador
This section provides an overview of the payment format for Ecuador and discusses how to set processing options for Print Automatic Payments Check (R76E0001).
Understanding the Payment Format for Ecuador
When you enter P76E0001 as the print program when writing payments, the system prints a document that includes a check and information about the voucher for which the payment is generated. The information about the voucher includes:
|
Information |
Description |
|
Company Name, Tax ID, and Fiscal ID |
The system uses the values that exist in the Address Book Master table (F0101). |
|
Address |
The system uses the address that exists in the Address Line 1 and Address Line 2 fields of the F0101 table. |
|
City, Country |
The system uses the values that exists in the County and Country fields of the F0101 table. |
|
Check Format Number |
The system uses the next number by company setup for the document type @O. |
|
Beneficiary |
The system uses the value from the Accounts Payable Ledger table (F0411). |
|
Document Payment Number |
The system prints the payment sequence by payment method and bank account. |
|
Date |
The system prints the date entered during the write process. |
|
Exchange Rate |
The system prints a value from the Currency Exchange Rates (F0015) table for the exchange rate if the voucher has been processed in a foreign currency. The system prints the currency value as of the date that you generate the payment group. |
|
Bank |
The system prints the bank account description |
|
Account Number |
The system prints the bank account number from the bank account information. |
|
Account |
The system prints the voucher account values from the account master information. |
|
Invoice, Description, Document Type, Document Number, Invoice Date |
The system uses the values that exist in the Accounts Payable Ledger table (F0411) |
|
Value |
The system prints the value from the A/P Payment Processing - Detail (F04573) table. |
Setting Processing Options for Print Automatic Payments Check (R76E0001)
Processing options enable you to specify the default processing for programs and reports.
Translation
|
1. Translation Program |
Specify which translation program to use to translate the payment amount into words. The value that you enter must exist in the Check Translation (98/CT) UDC table. If you leave this processing option blank, the system uses the translation program associated with the payment currency. |
Defaults
|
1. Address Format (FUTURE) |
This processing option is not used. |
Select
|
1. Company Information |
Enter 1 to print the company name and address on the payment stub. |
|
2. Payee Information |
Enter 1 to print the payee name and number on the payment stub. |
|
3. Purchase Order |
Enter 1 to print the purchase order number. Leave this processing option blank to print the supplier invoice number. |
|
4. Alternate Stub Information |
Enter 1 to print the supplier name. Enter 2 to print the supplier invoice number. Leave this processing option blank to print the remark. |
|
1. Form Type (FUTURE) |
This processing option is not used. |