(ARG) Setting Up the System for Argentinian Taxes

This chapter discusses how to:

• Set up tax user-defined codes.

• Set up tax constants.

• Set up tax areas.

• Set up tax definitions.

• Set up tax values.

• Define taxes by predecessor.

• Set up tax minimums.

• Set up tax groups.

• Set up exclusion percentages.

Common Fields Used in This Chapter

Setting Up Tax User-Defined Codes

Set up UDCs for standard tax processing and to meet the requirements of RG 1361 for sales and purchase transactions.

See Setting Up UDCs for Tax Processing for Argentina.

Setting Up Tax Constants

This section discusses how to set up tax constants for Argentina.

You must specify whether tax areas will apply to the system as a whole, to specific companies, or to specific business units within companies. You must also specify whether the system includes previously calculated tax amounts when calculating taxes.

This section discusses how to set up tax constants.

Form Used to Set Up Tax Constants

Setting Up Tax Constants

Access the Taxes Initial Setup - ARG - 00 form.

Setting Up Tax Areas

This section provides overviews of tax areas, tax areas for RG 1361, tax area relationships for credit invoices, lists a prerequisite, and discusses how to:

• Set up tax areas for Argentina.

• Set up tax area relationships for credit invoices.

Understanding Tax Areas

The tax area is a code that represents a tax structure, and includes a start and end date. Each tax for a tax area has its own characteristics, such as calculation method, tax minimum, and account. The system maintains a relationship between the standard tax areas and the country-specific tax areas.

Each tax can have only one minimum (such as the IIBB). Therefore, you must split the tax into as many codes as there are required minimums.

You set up country-specific tax areas in the standard Tax Rate/Areas program (P4008), and then you create a tax group with the same name in the Tax Groups program (P76A15).

See Setting Up Tax Groups.

Understanding Tax Areas for RG 1361

The country-specific tax area setup includes fields to meet the requirements of RG 1361. The Tax Rate Maintenance - ARG - 04 program (P764008A), which you access by choosing Regional Information from the Form menu on the standard Tax Rate/Area Revisions form, includes fields in which you can specify the tax codes types and tax percentages for different fiscal areas, so that tax information can be used in the subledgers according to RG 1361.

The tax code type fields are activated for tax rates 2, 3, and 4 if you specify a percentage for those tax rates on the Tax Rate/Area Revisions form. Tax rate 1 is reserved for VAT tax and tax rate 5 is reserved for VAT perception.

These hard-coded values identify tax code types:

Note. Tax code types are listed in UDC (76/A7).

This example displays a tax area with all five tax rates used:

Understanding Tax Area Relationships for Credit Invoices

You must set up a temporary tax areas for each tax area that is used by the suppliers who issue credit invoices. The temporary tax areas must have the same percentage as the original tax area and an offset that uses the temporary fiscal credit account.

You cross-reference the original tax areas to the temporary tax areas by using the AP Tax Areas Relationship program (P76A25). You can cross-reference only one temporary tax area to each original tax area. Tax area cross-references are stored in the F76A25 table.

Prerequisite

Review the standard steps for setting up a tax area.

See Setting Up Tax Areas.

Forms Used to Set Up Tax Areas

Setting Up Tax Areas for Argentina

Access the Additional Tax Informations form.

Setting Up Tax Area Relationships for Credit Invoices

Access the Enter Tax Areas Relationship Information form.

Setting Up Tax Definitions

This section provides an overview of tax definitions and discusses how to set up tax definitions.

Understanding Tax Definitions

You set up tax definitions to specify the customer type and customer category code to use to determine the tax, which enables you to set up different taxes by customer group.

You also specify this information when you set up a tax definition:

• The GL class that is used to configure the tax automatic accounting instruction (AAI). AAIs are used to move taxes from the trade account to the final account.

• The invoice line in which tax will appear.

• Which column of the VAT Sales Subledger the tax will appear, which ensures that the taxes calculated for credit notes are equal to those of the invoices to which they are related.

• Whether taxes should be split in Invoice B. Legally, Invoice B taxes should be included in the unit price. However, some taxes are exempt from the law and, therefore, must be separated in all instances, including Invoice B.

• The hierarchy that is used to process the tax values. You can specify whether item hierarchy or customer hierarchy is used. The hierarchy is hard-coded. The processing method uses the item or customer combinations to look for the value of the tax, but does not change what you can access.

• The end date, tax calculation date, and tax category.

Setting Up Tax Definitions for RG 1361

You must complete the Tax Category field on the Tax Definition form with one of these values to meet the requirements of RG 1361.

Prerequisites

Before you complete the tasks in this section:

• Define the tax codes on UDC (76A/TC).

• Define the buckets for each tax that will appear in the invoice on UDC (76A/B3).

• Define the buckets for each tax to be included in the Sales VAT Subledger on UDC (76A/B4).

• Set up the customer and item category codes to use for tax codes.

• Configure units of measure for taxes by unit of measure.

• Set up those documents to which taxes by unit of measure will not apply in UDC (76A/UM).

Forms Used to Set Up Tax Definitions

Setting Up Tax Definitions

Access the Tax Definition form.

Tax Code	Enter a code that defines a Tax.
GL Offset (general ledger offset)	Enter a code that determines the trade account that the system uses as the offset when you post invoices or vouchers. The system concatenates the value that you enter to the AAI item RC (for JD Edwards EnterpriseOne Accounts Receivable) or PC (for JD Edwards EnterpriseOne Accounts Payable) to locate the trade account. For example, if you enter TRAD, the system searches for the AAI item RCTRAD (for receivables) or PCTRAD (for payables). You can assign up to four alphanumeric characters to represent the GL offset or you can assign the three-character currency code (if you enter transactions in a multicurrency environment). You must, however, set up the corresponding AAI item for the system to use; otherwise, the system ignores the GL offset and uses the account that is set up for PC or RC for the company specified. If you set up a default value in the GL Offset field of the customer or supplier record, the system uses the value during transaction entry unless you override it. Note. Do not use code 9999. It is reserved for the post program and indicates that offsets should not be created.
Customer Type	Enter a code that specifies the Customer type to be utilized to determines the Tax. 1.: CUSTOMER (AN8) 2.: SHIP TO NUMBER (SHAN) 3.: PARENT NUMBER (PA8)
Customer Category Code Number	Enter a code that specifies the Customer Category code number to use to determine the tax. If you this field, the system displays the Cust Code field on the Tax Values form, which enables you to set up tax values by customer category code. For example, if you specify 05 in this field, you can enter values from UDC (01/05) in the Cust Code field on the Tax Values form.
Item Category Code Number	Enter a code that specifies the Item Category code number to be utilized to determines the Tax. If you complete this field, the system displays the Item Code field on the Tax Values form, which enables you to set up tax values by item category code. For example, if you specify 03 in this field, you can enter values from UDC (41/S3) in the Item Code field on the Tax Values form. The Item Category Code Number field applies to sales order processing only.
Sales Invoice Bucket	Indicate the Sales Invoice Bucket where the Tax Amount will be accumulated for this exposition.
Sales Report Group Column	Indicate the Sales VAT Report column where the Tax amount will be accumulated for this exposition.
Dependence Credit Note/Invoice	Set up the system to override minimums so that the same taxes can be calculated for the credit note as for the original invoice. To do this, you must specify document dependency on the tax definition. If you do not specify document dependency, the minimum is enforced. Related credit notes let you link a credit note to the original invoice. Enter Y to override the minimums of related credit. Enter N to enforce the minimums of related credit notes.
Y/N Discriminate Amount B Invoice	Specify whether to split out the Amount in B Invoice or not.
Order Tax Processing	Enter the order which the taxes will be processed. Either by Item, Customer or Customer, Item.
Expiration Date	Enter the date when a transaction, contract, obligation, preference, or policy rule ceases to be in effect.
Tax Calculation Date	Enter a code that indicates whether the tax expiration date is based on the Invoice or the Shipment Note date.
Tax Category	Enter an option that specifies the type of processing for an event.

Setting Up Tax Values

This section provides an overview of entering tax values and discusses how to enter tax values.

Understanding Tax Values

You can define tax values as a percentage of the taxable amount or as a fixed amount per unit of measure. You can also define tax values for customers within a group, as identified by a category code.

If the value in the Order Tax Processing field (APTO) on the Tax Definition form is C (first by Customer, and then Item), the system retrieves tax values by using this hierarchy:

If the value in the Order Tax Processing field (APTO) on the Tax Definition form is I (first by Item, and then Customer), the system retrieves tax values by using this hierarchy:

Note. Category codes values are retrieved from the F03012 table.

Prerequisites

Before you complete the tasks in this section:

• Verify the customer and item category codes setup for the tax definition.

• Verify the configuration of units of measure for taxes by unit of measure.

• Verify the setup of the documents to which taxes by unit of measure do not apply in UDC (76A/UM).

Forms Used to Set Up Tax Values

Setting Up Tax Values

Access the Tax Values form.

Defining Taxes by Predecessor

This section discusses how to define taxes by predecessor for Argentina.

You define taxes by predecessor if a tax amount must be calculated and added to the taxable amount before the new tax is applied.

This section discusses how to define taxes by predecessor.

Forms Used to Define Taxes by Predecessor

Defining Taxes by Predecessor

Access the Tax Predecessor form.

Setting Up Tax Minimums

This section provides an overview of tax minimums and discusses how to set up tax minimums.

Understanding of Tax Minimums

You can specify a minimum value that will determine whether a tax should be applied. You can specify minimums by tax code or by invoice amount. Only one minimum can be used, whether it be the invoice minimum or the tax code minimum. Both are set up by using effective dates.

If you specify minimums by tax code, the invoice total is used to calculate the tax value and the resulting tax value is compared to the minimum; this comparison is then used to determine whether the tax should be applied to the invoice.

Note. Changing the tax percentage can affect the minimum.

If you specify minimums by invoice amount, the taxable base amount is compared to the minimum. If the minimum is greater than the taxable base amount, the tax is not calculated.

Example: Invoice Minimum Calculations

Invoice minimum for tax XXX = 500

Percentage of tax XXX = 10 percent

Invoice total without taxes = 5100

Because the invoice total without taxes (5100) is greater than the minimum (500), the tax is calculated as 5100 *.10 = 510. If the invoice total without taxes had been less than 500, the tax would not be calculated.

Note. The minimum tax value is expressed by using the company's base currency.

Forms Used to Set Up Tax Minimums

Setting Up Tax Minimums

Access the Work with Tax Definition - ARG - 00 form.

Setting Up Tax Groups

This section provides overviews of tax groups and general resolution 1575, and discusses how to:

• Set up tax groups

• Create tax groups letters

Understanding Tax Groups

You set up tax groups to establish a relationship between tax codes and tax areas. The tax group must have the same name and dates as the tax area that was set up in the standard Tax Rate/Areas program (P4008).

Note. If a customer's tax situation changes, you must invoice whatever is pending and then make changes to the tax areas.

Example: Tax Configuration

This example displays a tax area that has two different tax codes, one with minimums and a predecessor; the relation between the tax area and the tax codes; and the assignment of the letter to the tax area.

The tax area is set up in the Tax Areas program (P4008) as:

These tax codes are set up in UDC (76A/TC):

Two tax codes are set up in the Tax Definitions program (P76A10) as:

The tax values are set up for the IVA tax code as:

The tax values are set up for the PER tax code as:

The tax predecessor for the PER tax code is set up as:

This tax minimums are set up for the PER tax code:

The tax codes are related to the tax area in the Tax Groups program (P76A15) as:

These letters are associated with the IVA26A tax area in the Tax Groups program (P76A15):

Understanding General Resolution 1575

The AFIP has created a new type of legal invoice (type M) through General Resolution 1575. The new type of invoice applies to companies that have asked for an authorization to generate invoices type A since October 20, 2003.

To meet the legal requirements, you must add a value for invoice group M to UDC 76/B1 and then create new tax groups by using the Tax Groups program (P76A15) and assigning invoice group M on the Invoice Shipment Note Letter - ARG - 00 form.

Note. Vouchers in invoice group M are prenumbered. Therefore, companies using invoice group M should not set up the autoprinter option in the Work with RG100 -Autoprinter Supp-AR/SOP program (P76A004).

Prerequisites

Before you complete the tasks in this section:

• Set up invoice group codes in UDC 76/B1 (ARG - Item ARGP-Allowed Values).

• Set up standard tax areas.

• Set up tax definitions.

Forms Used to Set Up Tax Groups

Setting Up Tax Groups

Access the Tax Groups - ARG - 00 form.

Tax Rate/Area	Enter a code that identifies a tax or geographic area that has common tax rates and tax authorities. The system validates the code you enter against the F4008 table. The system uses the tax rate/area in conjunction with the tax explanation code and tax rules to calculate tax and GL distribution amounts when you create an invoice or voucher.
Effective Date and Expiration Date	Enter the date when a transaction, contract, obligation, preference, or policy rule becomes effective, or ceases to be in effect.
Company	Enter a number that, with the document number, document type and GL date, uniquely identifies an original document, such as invoice, voucher, or journal entry. If you use the Next Numbers by Company/Fiscal Year feature, the Automatic Next Numbers program (X0010) uses the document company to retrieve the correct next number for that company. If two or more original documents have the same document number and document type, you can use the document company to locate the desired document.
Business Unit	Enter an alphanumeric code that identifies a separate entity within a business for which you want to track costs. For example, a business unit might be a warehouse location, job, project, work center, branch, or plant. You can assign a business unit to a document, entity, or person for purposes of responsibility reporting. For example, the system provides reports of open accounts payable and accounts receivable by business unit to track equipment by responsible department. Business unit security might prevent you from viewing information about business units for which you have no authority.
Tax Code	Enter a code that defines a tax.

Creating Tax Groups Letters

Access the Tax Groups - Invoice Shipment Note Letter - ARG -00 form.

Invoice Group	Enter a code that identifies the invoice group. Values are: A B C
Shipment Group	Enter Shipment Group (X).

Setting Up Exclusion Percentages

This section provides an overview of exclusion percentages and discusses how to set up companies to calculate exclusion percentages.

Understanding of Exclusion Percentages

The new SI.CO.RE structure requires that exclusion percentages for perceptions and the date of the Official Bulletin in which they were published be printed. To meet this requirement, you must set up the exclusion percentage value for each customer's unique tax code and the corresponding dates in the F76A8050 table.

For table F76A8050 to be used in tax calculations, you must set up the company to calculate exclusion. If the company has not been set up, the values set up for company 00000 are used.

Example: Tax Code with No Exclusion Percentages

Examples:

• Perception: 5 percent

• Exclusion: 17.5 percent

• Calculations:

• 100 percent-17,5 percent=82,5 percent

• 82,5 percent*5 percent=4.125 percent tax to be calculated

Forms Used to Set Up Exclusion Percentages

Setting Up Companies to Calculate Exclusion Percentages

Access the Localization Constants - AR/SOP Tax Calculate form.

Entering Exclusion Percentages for Customers

Access the Exclusion Percentages form.

Tax Code	Enter a code that defines a Tax.
Address Number	Enter a number that identifies an entry in the JD Edwards EnterpriseOne Address Book system, such as employee, applicant, participant, customer, supplier, tenant, or location.
Effective Date and Expiration Date	Enter the date when a transaction, contract, obligation, preference, or policy rule becomes effective, or ceases to be in effect.
Exclusion Percentage	Enter a number that identifies the percentage of tax that should be assessed or paid to the corresponding tax authority, based on the tax area. Enter the percentage as a whole number and not as the decimal equivalent. For example, to specify 7 percent, enter 7, not .07.
Resolution Date	Enter the effective date of the resolution.