(Europe) Setting Up European Union Functionality

This chapter provides an overview of the functionality commonly in use in European countries and discusses how to:

• Set up user-defined codes (UDCs) for European Union functionality.

• Set up commodity code information.

• Enter cross-references for items and suppliers.

• Set up layout for the IDEP/IRIS interface.

• Set up Intracommunity value-added taxes (VAT).

Understanding European Union Functionality

This table provides an overview of European Union setup and processes that you use in addition to the standard setup and processes provided in the base software.

Setting Up UDCs for European Union Functionality

Set up UDCs for:

• International payment instructions (IPI).

• Intrastat reporting.

• Companies

Setting Up UDCs for International Payment Instructions

Set up these UDCs before processing invoices with IPI attachments.

IPI - Address Line Sequencing (00/IA)

The IPI - Address Line Sequencing UDC table (00/IA) determines the combination of the values for the postal code, city, and country that the system includes as the second address line of the ordering customer's address on the international payment instruction (IPI).

These values are hard-coded and consistent with the requirements for IPIs. The European Committee for Banking Standards publishes the requirements for IPIs.

IPI - Charges Paid By (00/IC)

The IPI - Charges Paid By UDC table (00/IC) contains values that specify the entity who is responsible for paying the bank charges that are associated with the IPI. These values are hard-coded and consistent with the requirements for IPIs. The European Committee for Banking Standards publishes the requirements for IPIs.

IPI - Form Types (00/IF)

The IPI - Form Types UDC table (00/IF) contains hard-coded values that represent the types of preformatted IPI forms that are available to use. The values in this UDC are consistent with the requirements for IPIs. The European Committee for Banking Standards publishes the requirements for IPIs.

IPI - Languages and Countries (00/IL)

Most of the values for the UDCs for IPIs are hard-coded. However, you must set up values for the IPI - Languages and Countries (00/IL) UDC table.

IPIs must be printed in English, but they can also contain a second language. You specify the secondary language by setting up a value in the IPI - Languages and Countries UDC table (00/IL). Some countries require that you print IPI forms with a secondary language; for some countries, the use of a secondary language is optional. The European Committee for Banking Standards publishes the requirements for IPIs.

When you set up the IPI - Languages and Countries UDC, you complete the Special Handling field with a value from the Language (01/LP) UDC table. The system uses the value in the Special Handling field to determine the secondary language that prints on the IPI form. If you do not want the system to print a secondary language on the IPI form, set the Special Handling code for a country to E (English). Generally, you use the language of the country where the customer's bank is located.

You can set up only one language per country. For example, for banks in Belgium, you must specify a secondary language, but you can select to use French, German, or Dutch. In the 00/IL UDC, you can set up only one of those languages for Belgium; you cannot set up a value for each language.

This table shows examples of the languages that you can set up for countries:

IPI - Details of Payment (00/IP)

The IPI - Details of Payment UDC table (00/IP) determines the data that appears in the Details of Payment section on the IPI. These values are hard-coded and are consistent with the requirements for IPIs. The European Committee for Banking Standards publishes the requirements for IPIs.

Setting Up UDCs for Intrastat Reporting

Many fields throughout the system accept UDCs as valid values. You must set up several UDCs to provide valid information for Intrastat reporting.

Set up these UDCs to use Intrastat reporting:

• Country Codes (00/CN).

• European Union Members (00/EU).

• Intrastat Regime Code (00/NV).

• State and Province Codes (00/S).

• Condition of Transport (00/TC).

• Mode of Transport (00/TM).

• Triangulation Tax Rates (00/VT).

• Shipping Commodity Class (41/E).

• Purchasing Reporting Codes 01 through 05 (41/P1 through 41/P5).

• Sales Reporting Codes 01 through 05 (41/S1 through 41/S5).

• Freight Handling Code (42/FR).

• European Community Members (74/EC).

• Intrastat Declaration Type (74/IT).

• Nature of Transaction - EU (74/NT).

• Arrivals or Dispatchings (74/TD).

Country Codes (00/CN)

You must specify a country code in the address book records for the branch/plants, customers, and suppliers.

This table shows examples of country codes:

To find the country code for the branch/plants, the system searches for records based on the address number in the Inventory Constants table (F41001). If no address number is specified, the system uses the address number that is specified in the Business Unit Master table (F0006).

Transaction eligibility for Intrastat reporting is based on the country of the customer or supplier, the country of origin of the goods, and the country of the declarant.

Important! Do not use blank as the default country code. You must use a nonblank country code on the address book records for the country code to be included on Intrastat reports.

European Union Members (00/EU)

Each European Monetary Union (EMU) member currency must be set up in UDC table 00/EU.

The User-Defined Codes form (00/EU) contains default currency codes and effective dates when the country joins the EMU. Verify the existing values and ensure that a valid currency code exists for the euro (EUR).

The Special Handling Code field is a text field, not a date field. You must enter the effective date in this format, regardless of the date preferences:

DD/MM/YYYY

Each currency has an effective date, which enables you to enter existing EMU currencies now and, at a later time, add other currencies that join the EMU. Enter the effective date for a currency in the Special Handling Code field on the User-Defined Codes form (00/EU), as shown:

French and Italian companies that use domestic electronic formats in accounts receivable (AR) have a special setup requirement. This setup enables domestic formats, which state bank file amounts in the domestic currency, to also state bank file amounts in an alternate currency. French and Italian companies can then state amounts in either the euro or an alternate currency, regardless of the company's domestic currency.

To state AR domestic format amounts in the euro or an alternate currency, French and Italian companies must assign a currency value to the corresponding currency code on the European Union Members UDC table (00/EU), as shown in the examples in this table:

To set up AR electronic formats for the euro, assign a one-character currency value in the Description 02 field. Values are:

• E (for the euro currency code, EUR).

• Blank or F (for the French franc currency code, FRF).

• Blank or I (for the Italian lira currency code, ITL).

  Note. Leave the Description 02 field blank if the currency code is the domestic currency.

Intrastat Regime Code (00/NV)

Use the Intrastat Regime UDC to set up the Nature of VAT Regime codes. The Nature of VAT Regime code is similar to the nature of transaction code (NAT) and is applicable only to certain countries.

(FRA) Nature of VAT Regime codes are commonly used in France.

Important! If the reporting requirements for the country do not include Nature of VAT Regime, you must add a blank code to UDC 00/NV to prevent errors in the Intrastat Revision table (F0018T).

This table shows examples of Intrastat regime codes:

State and Province Codes (00/S)

For countries that require regional information, use the State field in the address book record to specify the region. Set up state and province codes to identify the region of origin for shipments or the region of destination for purchases.

The system searches for address book records based on the address number in the Inventory Constants table (F41001). If no address number is specified, the system uses the address number specified in the Business Unit Master table (F0006).

This table shows examples of state and province codes:

Condition of Transport (00/TC)

You set up Condition of Transport codes (00/TC) to indicate how goods are transported.

You must set up values in UDC 00/TC that correspond to the first three characters of the values that you set up in the Description 02 field in the Freight Handling Code UDC table (42/FR). For example, if you set up a value in UDC 42/FR for Cost, Insurance, and Freight and use CIF as the value in the Description 02 field, you must set up a code of CIF in UDC 00/TC.

You can set up default conditions of transport by using the Supplier Master program (P04012). Enter the condition of transport in the Freight Handling Code field. When you enter purchase orders, this information appears in the purchase order header fields.

This table shows examples of condition of transport codes:

Mode of Transport (00/TM)

You set up codes for the modes of transport on UDC table 00/TM (Mode of Transport). The first eight code values are predefined for EU trade reporting.

This table shows examples of mode of transport codes:

The fifth position of the Description 02 field of the Freight Handling Code UDC (42/FR) is used to indicate the mode of transport; it corresponds to the values in UDC 00/TM. To assign a default mode of transport to a supplier, complete the Freight Handling Code field on the Supplier Master Revision form of the Supplier Master program (P04012). Setting up a supplier in this way causes freight handling and mode of transport information to appear in purchase order header fields.

Triangulation Tax Rates (00/VT)

If you use the EC Sales List (R0018S), you must list the tax rates that are used for trade triangulation transactions. Transactions that use any of the tax rates that are listed on this UDC are flagged as trade triangulation transactions on the EC Sales AR.

Shipping Commodity Class (41/E)

Use Shipping Commodity Class codes (41/E) to further identify the products that the company imports or exports.

To comply with Intrastat guidelines, commodity codes must have a corresponding commodity value.

Use the Intrastat Commodity Code form to set up commodity values and supplemental units of measure for commodity codes.

This table shows examples of shipping commodity classes:

Purchasing Reporting Codes 01 through 05 (41/P1 through 41/P5)

Use purchasing reporting codes 01 through 05 (41/P1 through 41/P5) to set up nature of transaction codes specifically for purchase order transactions. Using these UDC tables to indicate the nature of transaction for the item is an alternative to using UDC 74/NT to indicate the nature of transaction.

You can designate any one of the five purchasing reporting codes to specify the nature of transaction for individual items. You must indicate the reporting code that you are using for nature of transaction in the processing options for the Intrastats Tax Update - Purchasing program (R0018I2). The reporting code that you specify in these processing options should correspond to the reporting code that you use to identify the nature of transaction for the item in the Item Master program (P4101). Enter 1 for table 41/P1, 2 for table 41/P2, and so on.

This table shows examples for purchase reporting codes:

When you update the Intrastat Revision table (F0018T), you use a processing option to specify the UDC that you want the system to use to find the applicable information.

Sales Reporting Codes 01 through 05 (41/S1 through 41/S5)

Use these codes to identify the type of import and export rules to which an item is subject. The import and export rules depend on the way that a product is moved; whether it is for sales, purchases, or leases; or other reasons.

You can set up nature of transaction codes specifically for EU reporting on UDC table 74/NT, or you can use the UDC tables from the Inventory Management system (specifically, 41/P1-P5 and 41/S1-S5). You can also create a UDC table to store nature of transaction codes.

You can designate any one of the five sales reporting codes to specify the nature of transaction for individual items. You must indicate the reporting code that you are using for nature of transaction in the processing options for the Intrastat - Tax Update - Sales program (R0018I1). The reporting code that you specify in these processing options should correspond to the reporting code that you use to identify the nature of transaction for the item in the Item Master program (P4101). Enter 1 for table 41/S1, 2 for table 41/S2, and so on.

This table shows examples of sales reporting codes:

When you update the Intrastat Revision table (F0018T), you use a processing option to specify the UDC that you want the system to use to find the applicable information.

Freight Handling Code (42/FR)

You use freight handling codes to identify various freight information. To comply with EU requirements, modify the freight handling codes to include the codes that you set up for the Condition of Transport, Condition of Transport extension, and Mode of Transport tables. For this action, enter the codes for the conditions of transport, conditions of transport extension, and the modes of transport in the second description field for the table.

Note. You must set up one freight handling code line in UDC 42/FR for each separate combination of Condition of Transport, Condition of Transport extension, and Mode of Transport tables.

The Description 02 field accepts up to 15 characters. When you modify freight handling codes, use the first three characters in the field to specify the conditions of transport. Use the fourth character to indicate the COTX extension (the code for the place indicated in the contract of transport). The COTX extension is required only in certain countries. Enter the code for mode of transport as the fifth character of the second description.

Note. You should define the codes that indicate the various conditions and modes of transport on their respective UDC tables, in addition to indicating the conditions and modes of transport on the freight handling codes. If the conditions and modes of transport are not defined in their respective tables, you receive an error when you try to modify the condition or mode of transport in the Intrastat Revision table (F0018T).

For IDEP, the Incoterms field accepts only these values:

• C - Main transportation expenses paid (CFR, CIF, CPT, CIP).

• D - Arrival (DAF, DES, DEQ, DDU, DDP).

• E - Depart (EXW).

• F - Main transportation not paid (FCA, FAS, FOB).

For IDEP, set up UDC 42/FR with these codes, rather than the standard transport conditions, in the first three positions of the Description 02 field.

This table shows examples of freight handling codes:

European Community Members (74/EC)

Only transactions between European Union (EU) members are included in the Intrastat Revision table (F0018T). Verify that a one-to-one relationship exists between the country codes that you set up in UDC 00/CN and the country codes for all EU countries on UDC table 74/EC. When you run the Intrastat update programs, the system cross-references the country codes that you specify for customers, suppliers, and branch/plants in UDC table 00/CN to the codes in 74/EC.

This table shows examples of EU country codes:

Intrastat Declaration Type (74/IT)

Set up UDC 74/IT to specify whether the IDEP declaration is fiscal, statistical, or complete.

This table shows examples of Intrastat declaration type codes:

You specify the character that the system uses to populate the Intrastat declaration in the special handling code for each value. The code specified in the special handling code is written to the text field in the Text Processor Detail Table (F007111) when you process the IDEP/IRIS Interface (R0018I3). This special handling code is also used to determine the VAT registration number for sales transactions. For statistical declarations, the system uses the ship to address number. For fiscal or complete declarations, the system uses the sold to address number.

The default value is 3 (complete).

Nature of Transaction - EU (74/NT)

Use Nature of Transaction (74/NT) to set up nature of transaction codes specifically for EU reporting.

Set up UDC table 74/NT following these steps:

• Use the Codes field to enter a concatenated value to identify the nature of transaction.

  Concatenate these values in sequence without any separators, such as commas or spaces: Company Number, Order Document Type, and Line Type.

• Enter the nature of transaction code in the Description 02 field.

• Enter the nature of the value-added tax (VAT) regime (statistical procedure) in the Special Handling field, if required.

This table shows examples of nature of transaction codes:

When you update the Intrastat Revision table (F0018T), you use a processing option to specify the UDC table that you want the system to use to find the applicable information.

Arrivals or Dispatchings (74/TD)

If you use the Single European Market Declaration (SEMDEC) interface for Intrastat submissions, set up a UDC for each document type that is used in Intrastat transactions to indicate whether the document type corresponds to the arrival (purchase) or dispatch (sale) of goods.

To set up UDC 74/TD, enter the same codes in the Codes field that you use for document types on UDC 00/DT. The Description 01 field must contain either Arrival or Dispatch. The system uses UDC 74/TD, in conjunction with UDC 00/DT, to determine whether the transaction represents the arrival or dispatch of goods for Intrastat reporting purposes. You need to include on UDC 74/TD only those document types that are used in sales or purchasing.

Note. If you do not set up UDC 74/TD, the system assumes that all sales are dispatches and that all purchases are arrivals.

Setting Up UDCs for European Companies

Set up these UDCs to specify company parameters.

Affiliated Companies (74/AC)

You must set up UDC 74/AC so that the system can determine whether the customer or supplier company is affiliated with the reporting company. You must list the address book records of all companies with which the reporting company is affiliated. The system uses the Affiliated Companies UDC list 74/AC to select records for reporting, and to group data for affiliated companies and non-affiliated companies in this manner:

Code Number (74/30)

Set up code numbers to indicate the type of service industry. For example, you might set up these values:

• 014: Transportation by domestic air carrier.

• 015: Transportation by foreign air carrier.

• 016: Transportation by other carrier.

Setting Up Commodity Code Information

You use commodity codes to identify the products that are exported from or introduced to the country. Commodity code information is stored in the Intrastat Commodity Code Additional Information table (F744102). This section lists a prerequisite and discusses how to set up commodity codes.

Prerequisite

Set up shipping commodity class codes in UDC 41/E.

Form Used to Set Up Commodity Codes

Setting Up Commodity Codes

Access the Intrastat Commodity Code form.

Entering Cross-References for Items and Suppliers

This section provides an overview of cross-references for items and suppliers and discusses how to enter cross-references.

Understanding Cross-References for Items and Suppliers

An important element of including purchases on Intrastat reports is tracking the country of origin of goods. In some countries, Intrastat reports must contain the country of origin and the original country of origin for each item.

For example, a German company might place a purchase order with a French supplier for goods manufactured in France. These goods are stored in a warehouse in Belgium, so the actual delivery comes from Belgium. The country of origin is Belgium, but the original country of origin is France.

Depending on the business and the suppliers, you might need to set up a more advanced relationship among the supplier, the item, and the country of origin. You can cross-reference this information in the Intrastat Item/Supplier Cross Reference program (P744101):

• Supplier

• Item

• Country of origin

• Original country of origin

The Supplier and Item Cross Reference program stores information in the Intrastat Supplier/Item Cross Reference Table (F744101). The Intrastats - Update - Purchasing program (R0018I2) retrieves the cross-referenced information if you specify in the processing options to use table F744101.

Note. The system retrieves the country of origin from the address book record of the supplier. The supplier's country of origin can be overridden when you update the Order Address Information table (F4006) for an individual order. If necessary, you can override the country of origin in the Country of Origin field (ORIG) in table F744101 and specify in the processing options of the Intrastats - Update - Purchasing program (R0018I2) to use table F744101.

The system uses the Country of Origin field (ORIG) to determine transaction eligibility for Intrastat reporting. The Original Country of Origin field (ORGO) is for information only.

Note also that in the United Kingdom, country of origin is called country of consignment, and original country of origin is called country of origin.

Form Used to Enter Cross-References for Items and Suppliers

Entering Cross-References

Access the Intrastat Cross Reference form.

Setting Up Layouts for the IDEP/IRIS Interface

This section discusses how to set up layouts for the IDEP/IRIS interface.

Before importing this information from an external system, such as from JD Edwards EnterpriseOne software to IDEP/CN8, you need to specify the format of the file to be imported. After you specify the format, you need to indicate the structure of the file to be imported (field sequence, field number, field size, and so forth) into IDEP/CN8.

This table illustrates the structure that you must set up for an IDEP/CN8 file:

Note. The comma in the Net Mass, Statistical Value, and Foreign Statistical Value field lengths listed above denotes that a decimal point can be used before the last two characters in those field lengths.

CBS-IRIS - Netherlands

The Dutch version of CBS-IRIS requires no fixed record layout for the import file. However, you must map the data coming from an import file in CBS-IRIS.

Note. The data to be imported must be in flat file format. Also, you must indicate the first position and the number of positions of each field to be imported from the flat file. The number of positions to import should not exceed the number of positions that is defined in CBS-IRIS for the field. The fields cannot overlap. You should end each field with a carriage return and a line feed.

In CBS-IRIS, the file containing the data to be imported should be a blank-separated txt-file (this type of file can be compared with a Microsoft Excel file that is saved as a text file with blanks as separation characters).

In CBS-IRIS, you can leave the fields blank, as long as the positions defined are correct (in other words, each blank stands for one position in the record).

This table illustrates the structure that you must set up for a CBS-IRIS - Holland file:

CBS-IRIS - Germany

The German version of CBS-IRIS requires no fixed record layout for the import file. However, you must map the data coming from an import file. For each field imported in the flat file format, you need to set up the beginning position and the length of the field. This table illustrates the structure that you must set up for a CBS-IRIS - Germany file:

Setting Up Intracommunity VAT

See (Europe) Setting Up Intracommunity VAT.

See Setting Up Tax Rate Areas.