(GBR) Setting Up CIS

This chapter provides an overview of setup for CIS processing and discusses how to:

Set up CIS constants.
Set up CIS company constants.
Set up CIS payment voucher constants.
Set up CIS document types.
Set up CIS subcontractor documents.

See Also

Understanding the CIS

Understanding Setup for CIS Processing

To set up the system for CIS processing, you must:

Set up these category codes:
1. An address book category code (01/01–30) to identify subcontractors.
2. An account category code (09/01–23) to identify GL accounts that fall within CIS.
The system uses these values when you set up CIS constants.
Set up CIS constants.
Update the Account Master record with the category code value that you specify on CIS Constants for all GL accounts that fall within the CIS.

See Revising Accounts.

You must update the Account Master record after you set up the CIS constants.
Update the address book records with the category code value that you specify on CIS Constants for all subcontractors within the scheme.
Set up two address book records for suppliers for which you want to include only selected vouchers.

Set up one address book record with the subcontractor category code value and one without it.
Set up this information for companies before you set up CIS company constants:
- Set up the company in the Companies program (P0010).
  
  See Setting Up Companies.
- Set up the company’s mailing address in the Address Book Revisions program (P01012).
  
  See Entering Address Book Records.
Set up CIS company constants by using the CIS Company Constants program (P74U0101).
Set up CIS payment voucher constants.
Set up CIS document types.
Before you set up subcontractor documents, set up your subcontractors:
- Set up address book records for CIS card holders (subcontractors) using a search type of S (subcontractors) or V (suppliers) and the category code that you set up in the CIS System Constants program (P74U0100) to identify them as subcontractors.
- If an authorized user is representing a subcontractor, verify that the subcontractor’s trading name exists in the JD Edwards EnterpriseOne Address Book system, has a search type of V (supplier), and is identified in the category codes as a subcontractor.
- Set up a supplier master record for each subcontractor for which you set up an address book record.
  
  See Entering Supplier Master Information.
On the Tax Information tab of the Supplier Master Revision form, specify the address book number for Inland Revenue in the Tax Authority field and specify the withholding tax percentage for subcontractors in the Percent field.

Setting Up CIS Constants for Great Britain

This section provides an overview of CIS constants, lists a prerequisite, and discusses how to set up CIS constants.

Understanding CIS Constants

CIS system constants provide the basic framework for how the CIS operates for your business needs. These parameters enable you to:

Activate the scheme.
Define how to identify subcontractors within the scheme.
Define which GL accounts fall within the scheme.
Provide system process default values and warning and error message settings.

Important! After you set up CIS Constants, you must update the Account Master record with the category code value that you specify on CIS Constants for all GL accounts that fall within the CIS. You must also update the address book records with the category code value that you specify on CIS Constants for all subcontractors within the scheme.

Note. To include only selected vouchers from a specific supplier in the CIS, you must set up two address book records for that supplier: one with the subcontractor category code value and one without it. For example, you might label the suppliers Supplier 1 - CIS and Supplier 1 - No CIS. You must then train your accounts payable and purchasing clerks on when to use each supplier record.

Prerequisite

Set up these category codes:

An address book category code (01/01–30) to identify subcontractors.
An account category code (09/01–23) to identify GL accounts that fall within CIS.

See Also

Entering Supplier Master Information

Form Used to Set Up CIS Constants

Form Name	FormID	Navigation	Usage
Construction Industry Scheme Constants	W74U0100B	System Setup (G74U0240), CIS System Constants	Set up CIS constants. Activate the Construction Industry Scheme. To prevent payments to CIS6 subcontractors when they have not returned CIS24 payment vouchers for previous payments, select the Subcontractor CIS24 Voucher Returned check box.

Form Name

FormID

Navigation

Usage

Construction Industry Scheme Constants

W74U0100B

System Setup (G74U0240), CIS System Constants

Set up CIS constants.

Activate the Construction Industry Scheme. To prevent payments to CIS6 subcontractors when they have not returned CIS24 payment vouchers for previous payments, select the Subcontractor CIS24 Voucher Returned check box.

Setting Up CIS Constants

Access the Construction Industry Scheme Constants form.

CIS Default Pay Status

Enter a code from the Payment Status Code (00/PS) UDC. The system uses the code that you enter as the default pay status for CIS subcontractor vouchers that are entered through Voucher Entry (P0411), Speed Voucher Entry (P0411SV), or Voucher Match (P4311).

Subcontractor CIS24 Voucher Returned

Select to specify that payments are allowed to CIS6 subcontractors who have not returned payment vouchers (CIS24) for previous payments. If you select this check box, the system does not allow payments where payment vouchers have not been returned. If you do not select this check box, the system issues a warning but allows payments where payment vouchers have not been returned.

Note. CIS Pre Withholding Validation (R74U0130) uses this field during its validation.

A/B Category Code (address book category code)

Select one of the address book category codes to identify CIS subcontractors. This option is used in conjunction with the Designated Flag A/B field.

Designated Flag A/B (designated flag address book)

Specify the value that exists in the category code you selected in the A/B Category Code field that indicates that a subcontractor is subject to CIS.

O/A Category Code (object account category code)

Select one of the object account category codes to identify taxable GL accounts that are used to pay CIS subcontractors' labor. This field is used in conjunction with the value in the Designated Flag O/A field.

Designated Flag O/A (designated flag object account)

Specify the value that exists in the category code you selected in the O/A Category Code field that identifies the taxable G/L accounts that are used to pay CIS subcontractors' labor.

No CIS Document

Select to determine the error that occurs when you enter a voucher for a CIS subcontractor for whom no registration card or tax certificate exists in the system.

If you select this check box, you receive a hard error on voucher entry and cannot create the voucher. If you do not select this check box, you receive a warning on voucher entry, but can create the voucher.

Note. Voucher input includes the Voucher Entry (P0411) program, the Speed Voucher Entry (P0411SV) program, and the Voucher Match (P4314) program.

CIS Document Invalid

Select to determine the error that occurs when you enter a voucher for a CIS subcontractor whose registration card or tax certificate is invalid or has expired.

If you select this check box, you receive a hard error message on voucher entry and cannot create the voucher. If you do not select this check box, you receive a warning on voucher entry, but are able to create the voucher.

Note. Voucher input includes the Voucher Entry (P0411) program, the Speed Voucher Entry (P0411SV) program, and the Voucher Match (P4314) program.

Invalid Tax Certificate Valid Reg. Card (invalid tax certificate valid registration card)

Select to determine the error that occurs when you enter a voucher for a CIS subcontractor whose tax certificate is invalid, but who has a valid registration card.

If you select this check box, you receive a hard error message on voucher entry and cannot create the voucher. If you do not select this check box, you receive a warning on voucher entry, but can create the voucher.

Note. Voucher input includes the Voucher Entry (P0411) program, the Speed Voucher Entry (P0411SV) program, and the Voucher Match (P4314) program.

CIS Document has Future Start Date

Select to determine the error that occurs when you enter a voucher for a CIS subcontractor whose registration card or tax certificate has an invalid start date. If you select this check box, you receive a hard error on voucher entry and cannot create the voucher. If you do not select this check box, you receive a warning on voucher entry, but are able to create the voucher.

Note. Voucher input includes the Voucher Entry (P0411) program, the Speed Voucher Entry (P0411SV) program, and the Voucher Match (P4314) program.

Setting Up CIS Company Constants

This section lists prerequisites and discusses how to set up CIS company constants.

Use CIS Company Constants to enter the contractor CIS tax reference number for each company that operates within the scheme.

Prerequisites

Before you complete the tasks in this section:

Set up the company's mailing address in the Address Book Revisions program (P01012).
Set up the company in the Companies program (P0010).

See Also

Entering Address Book Records

Setting Up Companies

Form Used to Set Up CIS Company Constants

Form Name	FormID	Navigation	Usage
CIS Company Constants Revisions	W74U0101B	System Setup (G74U0240), CIS Company Constants	Specify the contractor tax reference number.

Setting Up CIS Company Constants

Access the CIS Company Constants Revisions form.

Contractor Tax Reference

Enter the contractor's unique 13-character CIS tax reference.

Setting Up CIS Payment Voucher Constants

This section provides an overview of CIS payment voucher constants, lists a prerequisite, and discusses how to set up CIS Payment Voucher constants.

Understanding CIS Payment Voucher Constants

Use CIS payment voucher constants to set up these payment vouchers:

CIS23: Construction Gross Payment Voucher.

The contractor generates this voucher each time that a payment is made to a subcontractor who holds a Construction Tax Certificate (CIS5). The contractor keeps a copy and sends a copy to the Inland Revenue Service.
CIS24: Subcontractors Gross Payment Voucher.

The contractor receives this voucher from the subcontractor after the contractor has paid a subcontractor who holds a Subcontractors Tax Certificate (CIS6). The contractor adds his or her CIS tax reference, returns a copy to the subcontractor, keeps a copy, and sends a copy to the Inland Revenue Service.
CIS25: Tax Payment Voucher.

The contractor generates this voucher each time that a payment is made to a subcontractor who holds a registration card. The contractor keeps a copy and sends a copy to both the Inland Revenue and the subcontractor.

You must set up payment voucher constants separately for each company that operates within the scheme.

Prerequisite

Set up the company's mailing address in the Address Book Revisions program (P01012).

Form Used to Set Up CIS Payment Voucher Constants

Form Name	FormID	Navigation	Usage
Tax Payment Voucher Revisions	W74U0102B	System Setup (G74U0240), CIS Payment Voucher Constants	Specify tax voucher payment information.

Setting Up CIS Payment Voucher Constants

Access the Tax Payment Voucher Revisions form.

CIS Voucher Type	Enter a value that exists in the CIS Voucher Type (74U/VT) UDC table. Use this value to identify the voucher code for the tax payment that distinguishes the types of payment vouchers that are used in the scheme.
Voucher Serial Number	Enter the serial number that is recorded on CIS25 and CIS23 tax payment vouchers.
Payment Voucher Seq No (payment voucher sequence number)	Enter the unique, sequential voucher number. This number is included on the Tax Payment Voucher CIS25 report (R74U0135) when the report is run in final mode.

Setting Up CIS Document Types

This section provides an overview of CIS document types and discusses how to set up CIS document types.

Understanding CIS Document Types

Use CIS Documents to set up the CIS document types that enable subcontractors to carry out construction work within the CIS. Valid document types include:

CIS4T: Temporary Registration Card.
CIS4P: Permanent Registration Card.
CIS5: Construction Tax Certificate.
CIS: Subcontractors Tax Certificate.

For each document type, you can specify which fields are required, determine the priority for searching and validating documentation for a subcontractor who holds multiple documents, and indicate whether tax is deductible for subcontractors who hold the document type.

This table indicates the fields that are required for each document type:

Field	CIS4T	CIS4P	CIS5	CIS6
Company Registration Number	blank	blank	X	blank
Insurance Number	blank	X	blank	X
Start Date	blank	blank	X	X
Expiry Date	X	blank	X	X
Acting For	blank	blank	blank	X
Trading As	X	X	X	X
CIS Voucher Returned	blank	blank	blank	X

See Also

Setting Up CIS Subcontractor Documents

Form Used to Set Up CIS Document Types

Form Name	FormID	Navigation	Usage
CIS Document Information Revisions	W74U0105B	System Setup (G74U0240), CIS Documents	Specify document types and required fields.

Setting Up CIS Document Types

Access the CIS Document Information Revisions form.

CIS Document Classification

Enter a value that exists in the CIS Validation Hierarchy (74U/CL) UDC table to give priorities to subcontractors' CIS documents if a subcontractor holds more than one CIS document. Documents with a higher classification code are given priority. For example, if a tax certificate has a classification code of 1 and a registration card has a classification code of 9, the system uses the tax certificate during CIS processing for a subcontractor who holds both documents. The highest possible value is 1 and the lowest possible value is 9.

Warning! Use document classification 9 for Registration Cards (CIS4P and CIS4T). Use document classification 1 for Tax Certificates (CIS5 and CIS6). Using other document classifications produces unpredictable results.

Withholdings Deduction (Y/N)

Select to withhold taxes from any payments that are made to a subcontractor who holds a CIS document of the specified type.

Company Registration Number

Select to require a user to enter a company registration number for the specified CIS document type. For example, you might require a company registration number for CIS5 documents. If you select this check box, the Company Registration Number field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Company Registration Number field is hidden.

Insurance Number

Select to require a user to enter a national insurance number for the specified CIS document type. For example, you might require a national insurance number for CIS4 documents. If you select this check box, the National Insurance Number field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the National Insurance Number field is hidden.

Start Date

Select to require a user to enter a start date for the specified CIS document type. For example, you might require a start date for CIS5 and CIS6 documents. If you select this check box, the Start Date field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Start Date field is hidden.

Expiry Date

Select to require a user to enter an expiry date for the specified CIS document type. For example, you might require an expiration date for CIS5, CIS6, and CIS4 documents. If you select this check box, the Expiry Date field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Expiry Date field is hidden.

Acting For

Select to specify that the Acting For field is available for the specified CIS document type. For example, you might display the Acting For field for CIS4 and CIS6 documents. If you select this check box, the Acting For field appears on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Acting For field is hidden.

Trading As

Select to require a user to complete the Trading As field for the specified CIS document type. For example, you might require the Trading As field for CIS4, CIS5, and CIS6 documents. If you select this check box, the Trading As field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Trading As field is hidden.

CIS Voucher Returned (Y/N)

Select to allow payments to CIS6 subcontractors who have not returned payment vouchers (CIS24) for previous payments. If you select this check box, the system does not allow payments where payment vouchers have not been returned. If you do not select this check box, the system issues a warning, but allows payments where payment vouchers have not been returned.

Note. The CIS Pre Withholding Validation (R74U0130) program uses this field during its validation.

This check box determines whether the CIS Voucher Returned (Y/N) option is available for the specified CIS document type. For example, you might display this option for CIS6 documents. If you select this check box, the CIS Voucher Returned (Y/N) option appears on the CIS Subcontractor Document Revisions form. If you do not select this check box, the option is hidden.

Setting Up CIS Subcontractor Documents

This section provides an overview of CIS subcontractor documents, lists prerequisites, and discusses how to set up CIS subcontractor documents.

Understanding CIS Subcontractor Documents

Enter CIS subcontractor documents to record the registration cards (CIS4) or tax certificates (CIS5 and CIS6) that are held on behalf of each subcontractor. These cards and certificates authorize subcontractors to work in the construction industry. No payments are allowed to any subcontractors who do not hold one of these cards or certificates.

The system enables you to enter multiple authorized users and the CIS documents that are held by each on behalf of a subcontractor.

Important! Under the CIS, you must see the authorized user's original CIS document before making a payment to a subcontractor. A copy is not acceptable.

Related Tasks

You can access the Work With CIS Subcontract Documents form to add or revise CIS subcontractor documents by selecting Regional Info from the Row or Form menu on any of these forms:

Work With Addresses
Address Book Revision
Supplier Master Information
Supplier Master Revision

For you to access the Work With CIS Subcontractor Documents form, the selected address book or supplier master record must be for a supplier (search type V) and have the appropriate category code for CIS subcontractors.

Prerequisites

Before you complete the tasks in this section:

Set up CIS card holders in the JD Edwards EnterpriseOne Address Book system using a search type of S (subcontractors) or V (suppliers) and the category code that you set up in the CIS System Constants program (P74U0100) to identify them as subcontractors.
Set up the CIS card holders that you set up in the JD Edwards EnterpriseOne Address Book system in the Supplier Master Information program (P04012).

On the Tax Information tab of the Supplier Master Revision form, specify the address book number for Inland Revenue in the Tax Authority field and specify the withholding tax percentage for subcontractors in the Percent field.
If an authorized user is representing a subcontractor, verify that the subcontractor's trading name exists in the address book record, has a search type of V (supplier), and is identified in the category codes as a subcontractor.
Set up CIS document types.

See Also

Entering Supplier Master Information

Setting Up CIS Constants for Great Britain

Form Used to Set Up CIS Subcontractor Documents

Form Name	FormID	Navigation	Usage
CIS Subcontractor Document Revisions	W74U0110B	System Setup (G74U0240), CIS Sub Contractor Documents	Record registration cards or tax certificates for subcontractors.

Setting Up CIS Subcontractor Documents

Access the CIS Subcontractor Document Revisions form.

Authorized User/Issued To

Enter the address book number of the authorized user. In the Construction Industry Scheme (CIS), the authorized user is an employee who represents the subcontracting company, usually a senior manager.

CIS Document Number

Enter the 13-digit CIS subcontractor's registration card or tax certificate number. This number is issued by the Inland Revenue and provides a unique CIS document reference number.

Company Registration Number

Enter the 8-digit subcontractor's U.K. company registration number.

Insurance Number

Enter the subcontractor's U.K. National Insurance number. The format is xxyyyyyyx, where x represents a letter and y represents a number.

CIS Default Pay Status	Enter a code from the Payment Status Code (00/PS) UDC. The system uses the code that you enter as the default pay status for CIS subcontractor vouchers that are entered through Voucher Entry (P0411), Speed Voucher Entry (P0411SV), or Voucher Match (P4311).
Subcontractor CIS24 Voucher Returned	Select to specify that payments are allowed to CIS6 subcontractors who have not returned payment vouchers (CIS24) for previous payments. If you select this check box, the system does not allow payments where payment vouchers have not been returned. If you do not select this check box, the system issues a warning but allows payments where payment vouchers have not been returned. Note. CIS Pre Withholding Validation (R74U0130) uses this field during its validation.
A/B Category Code (address book category code)	Select one of the address book category codes to identify CIS subcontractors. This option is used in conjunction with the Designated Flag A/B field.
Designated Flag A/B (designated flag address book)	Specify the value that exists in the category code you selected in the A/B Category Code field that indicates that a subcontractor is subject to CIS.
O/A Category Code (object account category code)	Select one of the object account category codes to identify taxable GL accounts that are used to pay CIS subcontractors' labor. This field is used in conjunction with the value in the Designated Flag O/A field.
Designated Flag O/A (designated flag object account)	Specify the value that exists in the category code you selected in the O/A Category Code field that identifies the taxable G/L accounts that are used to pay CIS subcontractors' labor.
No CIS Document	Select to determine the error that occurs when you enter a voucher for a CIS subcontractor for whom no registration card or tax certificate exists in the system. If you select this check box, you receive a hard error on voucher entry and cannot create the voucher. If you do not select this check box, you receive a warning on voucher entry, but can create the voucher. Note. Voucher input includes the Voucher Entry (P0411) program, the Speed Voucher Entry (P0411SV) program, and the Voucher Match (P4314) program.
CIS Document Invalid	Select to determine the error that occurs when you enter a voucher for a CIS subcontractor whose registration card or tax certificate is invalid or has expired. If you select this check box, you receive a hard error message on voucher entry and cannot create the voucher. If you do not select this check box, you receive a warning on voucher entry, but are able to create the voucher. Note. Voucher input includes the Voucher Entry (P0411) program, the Speed Voucher Entry (P0411SV) program, and the Voucher Match (P4314) program.
Invalid Tax Certificate Valid Reg. Card (invalid tax certificate valid registration card)	Select to determine the error that occurs when you enter a voucher for a CIS subcontractor whose tax certificate is invalid, but who has a valid registration card. If you select this check box, you receive a hard error message on voucher entry and cannot create the voucher. If you do not select this check box, you receive a warning on voucher entry, but can create the voucher. Note. Voucher input includes the Voucher Entry (P0411) program, the Speed Voucher Entry (P0411SV) program, and the Voucher Match (P4314) program.
CIS Document has Future Start Date	Select to determine the error that occurs when you enter a voucher for a CIS subcontractor whose registration card or tax certificate has an invalid start date. If you select this check box, you receive a hard error on voucher entry and cannot create the voucher. If you do not select this check box, you receive a warning on voucher entry, but are able to create the voucher. Note. Voucher input includes the Voucher Entry (P0411) program, the Speed Voucher Entry (P0411SV) program, and the Voucher Match (P4314) program.

CIS Document Classification	Enter a value that exists in the CIS Validation Hierarchy (74U/CL) UDC table to give priorities to subcontractors' CIS documents if a subcontractor holds more than one CIS document. Documents with a higher classification code are given priority. For example, if a tax certificate has a classification code of 1 and a registration card has a classification code of 9, the system uses the tax certificate during CIS processing for a subcontractor who holds both documents. The highest possible value is 1 and the lowest possible value is 9. Warning! Use document classification 9 for Registration Cards (CIS4P and CIS4T). Use document classification 1 for Tax Certificates (CIS5 and CIS6). Using other document classifications produces unpredictable results.
Withholdings Deduction (Y/N)	Select to withhold taxes from any payments that are made to a subcontractor who holds a CIS document of the specified type.
Company Registration Number	Select to require a user to enter a company registration number for the specified CIS document type. For example, you might require a company registration number for CIS5 documents. If you select this check box, the Company Registration Number field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Company Registration Number field is hidden.
Insurance Number	Select to require a user to enter a national insurance number for the specified CIS document type. For example, you might require a national insurance number for CIS4 documents. If you select this check box, the National Insurance Number field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the National Insurance Number field is hidden.
Start Date	Select to require a user to enter a start date for the specified CIS document type. For example, you might require a start date for CIS5 and CIS6 documents. If you select this check box, the Start Date field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Start Date field is hidden.
Expiry Date	Select to require a user to enter an expiry date for the specified CIS document type. For example, you might require an expiration date for CIS5, CIS6, and CIS4 documents. If you select this check box, the Expiry Date field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Expiry Date field is hidden.
Acting For	Select to specify that the Acting For field is available for the specified CIS document type. For example, you might display the Acting For field for CIS4 and CIS6 documents. If you select this check box, the Acting For field appears on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Acting For field is hidden.
Trading As	Select to require a user to complete the Trading As field for the specified CIS document type. For example, you might require the Trading As field for CIS4, CIS5, and CIS6 documents. If you select this check box, the Trading As field is required on the CIS Subcontractor Document Revisions form. If you do not select this check box, the Trading As field is hidden.
CIS Voucher Returned (Y/N)	Select to allow payments to CIS6 subcontractors who have not returned payment vouchers (CIS24) for previous payments. If you select this check box, the system does not allow payments where payment vouchers have not been returned. If you do not select this check box, the system issues a warning, but allows payments where payment vouchers have not been returned. Note. The CIS Pre Withholding Validation (R74U0130) program uses this field during its validation. This check box determines whether the CIS Voucher Returned (Y/N) option is available for the specified CIS document type. For example, you might display this option for CIS6 documents. If you select this check box, the CIS Voucher Returned (Y/N) option appears on the CIS Subcontractor Document Revisions form. If you do not select this check box, the option is hidden.

Authorized User/Issued To	Enter the address book number of the authorized user. In the Construction Industry Scheme (CIS), the authorized user is an employee who represents the subcontracting company, usually a senior manager.
CIS Document Number	Enter the 13-digit CIS subcontractor's registration card or tax certificate number. This number is issued by the Inland Revenue and provides a unique CIS document reference number.
Company Registration Number	Enter the 8-digit subcontractor's U.K. company registration number.
Insurance Number	Enter the subcontractor's U.K. National Insurance number. The format is xxyyyyyyx, where x represents a letter and y represents a number.