(RUS and POL) Setting Up the System for Russian and Polish Taxes

This chapter provides an overview and discusses how to set up tax processing specific to Russia and Poland including:

• (RUS) Working with tax processing for Russia.

• (RUS) Modifying Russian tax records for logged vouchers.

• (RUS) Generating the sales book report.

• (RUS) Generating the purchase register.

• (POL) Working with tax processing for Poland.

Understanding System Setup for Russia and Poland Taxes

This section provides an overview of the tasks required for processing taxes for Russia and Poland, including:

• Setting up user-defined codes (UDCs).

• Setting up automatic accounting instructions (AAIs) for Russian taxes.

Setting Up UDCs

Set up UDCs to define the taxes that apply to items and services, the rate of taxes, and other information required by the system.

See (POL and RUS) Setting Up UDCs for Tax Processing for Poland and Russia.

Setting Up AAIs for Russia

In addition to the standard AAIs available throughout JD Edwards EnterpriseOne software, you must set up AAIs to process Russian value-added taxes (VAT).

See (RUS) Setting Up AAIs for Russian Taxes.

(RUS) Working with Tax Processing for Russia

This section provides an overview of the Russian tax requirements, the Russian tax table, and discusses how to:

• Generate tax records.

• Set processing options for Russian Tax File Maintenance AP (R74R4018).

• Set processing options for Russian Tax File Maintenance AR (R74R3018).

• Set processing options for Russian Tax File Maintenance GL (R74R9018).

Understanding Russian Tax Requirements

Russian legislation requires that you produce a Sales Book report and a Purchase Register report to determine the value-added tax (VAT ) that is payable or recoverable. The F74R0018 table contains the data that you use to report the Russian VAT.

VAT

VAT is levied by the federal government on all goods and services. VAT tax is always calculated based on the value of goods or services plus excise tax. VAT is applicable to the import of goods, and the sale of goods or services inside of Russia and between GIS countries. VAT is also applied to the trade margin for catering and retail-trading companies. The trade margin is the difference between the purchase price and the sales price.

VAT is a reclaimable tax that becomes reclaimable after payment for purchased goods or services has been made. An enterprise offsets the amount of paid VAT against a VAT payable account to calculate the amount it actually owes to the tax authority. In some cases, sales of goods or rendering of services are not VAT taxable.

VAT for raw materials is included in the purchase price and accounted for as an inventory costs.

Accounting for VAT

If a company uses the cash method of accounting, VAT is not registered until a voucher is paid or an invoice is received. Prior to paying a voucher or receiving an invoice, VAT is accounted for by posting it to a temporary, or VAT receivable, account. When the payment is made or the invoice is received, the amount in the VAT receivable account is posted to the actual VAT account. When partial payments or receipts are made, you reclassify the partial amount.

Prepayments are subject to VAT and must be included in the Sales Book report. You post the tax on the prepayment to credit side of the actual VAT account. When you apply an unapplied cash receipt to an invoice, you reverse the accounting entry, and post the reversal as a void. This reversal is included in the Purchase Register.

Amount differences occur when there is a difference in the exchange rate on the date that you enter a voucher and the date that you pay the voucher. This difference is subject to VAT and is reported in the Sales Book and Purchase Register reports.

Understanding the Russian Tax Table

When you run the GL Post program (R09801), the system also runs the:

• AR Russian Tax File Maintenance (R74R3018) program.

• AP Russian Tax File Maintenance (R74R4018) program.

• GL Russian Tax File Maintenance (R74R9018) program.

These programs populate the F74R0018 table. Table F74R0018 contains information about purchase, sales, payment, and receipt transactions, and the taxes calculated for these transactions. Generally, one record is written to the table for each transaction, but split payments, partial payments, and partial voids can generate more than one record for a transaction.

Understanding How the System Writes Records to the Russian Tax Table

When you run the General Ledger Post (R09801) program, the system runs one of the Russian tax file maintenance programs for Russia. The Russian tax file maintenance program that the system runs depends on the batch type being posted. For batch types V, W, K, and M, the system runs the Russian Tax File Maintenance (AP) program. For batch types IB and RB, the system runs the Russian Tax File Maintenance AR program. For batch types IB, K, M, RB, V, and W, the system runs the Russian Tax File Maintenance GL program.

When the system runs one of the Russian tax file maintenance programs, it reads data in the AP Tax Rates/Areas (74R/TP) UDC table, the AR Tax Rates/Areas (74R/TR) UDC table, and the Document Types (74R/DT) UDC table to determine if VAT is recoverable or payable. The system uses the AAIs that you set up for tax processing to write GL entries to the appropriate receivable or actual VAT accounts.

Generating Tax Records

In order to generate tax records, you must set up the processing options for:

• R74R4018

• R74R3018

• R74R9018

Setting Processing Options for Russian Tax File Maintenance AP (R74R4018)

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

AP

Setting Processing Options for Russian Tax File Maintenance AR (R74R3018)

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

AR

Setting Processing Options for Russian Tax File Maintenance - GL (R74R9018)

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

GL

(RUS) Modifying Russian Tax Records for Logged Vouchers

This section provides an overview of how to modify tax records and discusses how to:

• Set processing options for Working With Russian Tax File (P74R0018).

• Set processing options for Recover VAT (R74R018VAT).

• Modify the Russian tax table.

Understanding How to Modify Russian Tax Records

You can use the Working With Russian Tax File (P74R0018) program to modify tax records for logged vouchers. After you modify the records, the system runs the Recover VAT (R74R018VAT) program to:

• Recover the posted amount.

• Changes the reporting date, the reposting date, and VAT amount that is reposted.

• Writes the necessary journal entries to reclassify the VAT amount to the actual VAT account.

Forms Used to Modify Tax Records

Setting Processing Options for Working With Russian Tax File (P74R0018)

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

Version

Setting Processing Options for Recover VAT (R74R018VAT)

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

A/P

CB

Modifying the Russian Tax Table

Access the Russian Tax File Revisions form.

(RUS) Generating the Sales Book Report

This section provides an overview of the sales book and discusses how to:

• Run the VAT Sales Book (R74R0330) program.

• Set processing options for VAT Sales Book (R74R0330).

Understanding the Sales Book

You use the Sales Book report to report to the tax authorities all sales of goods and service for which you received payment. In some cases, you might also report the sale of goods or services for which you have not received payment. The Sales Book report registers invoices issued to customers and prepayments received from customers. It contains VAT amounts for each invoice issued to a customer, including unapplied cash receipts, and the VAT calculated for amount difference vouchers and invoices if the difference results in a profit.

If the company calculates and pays VAT on a cash basis, then the Sales Book report must include summarized data for each payment date. If the invoice is partially paid, the system prints Partial payment on each line of the partial payment.

If you receive prepayments, you must display the sum in the system as unapplied cash, and you must issue to the customer a tax invoice that displays the prepayment amount. When you provide the goods or services for which the prepayment was received, you create a sales invoice, match the invoice to the unapplied cash, and issue a tax invoice to the customer that is based on the sales invoice records.

See Also

(POL and RUS) Working with Invoices for Poland and Russia

Running the VAT Sale Book (R74R0330) Program

Select Accounts Receivable (G74R03B), Sales Book.

Setting Processing Options for VAT Sale Book (R74R0330)

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

General

Details

Language

Taxes

Chief

(RUS) Generating the Purchase Register

This section provides an overview of the Purchase Register Report program and discusses how to:

• Run the Purchase Register Report program (R74R0430).

• Set processing options for Purchase Register Report.

Understanding the Purchase Register Report

You use the Purchase Register report to report VAT on paid vouchers. You use this report as a basis for reclaiming paid VAT from the tax authorities.

The Purchase Register report records vouchers after they have been paid and the VAT amounts have been posted to the VAT account from the temporary VAT account. The report includes all purchases of goods and services for which you received and paid for the goods and services. Additionally, the report includes or excludes these records:

• Paid vouchers for which an additional clause exists and the additional clause is unresolved, are excluded from the report.

• Partially paid vouchers appear in the report, and are noted as partially paid.

• Reversed VAT accrued payable transactions from unapplied cash VAT calculations are included.

• VAT calculated for amount differences when the amount results in a loss.

When you post vouchers, the system populates the F74R0018 table with data about Russian taxes. When you run the Purchase Register report, the system reads table F74R0018 and selects records with paid vouchers for processing. The system summarizes the data by these fields:

• Company

• Document Number

• Document Type

• Voucher Date

• GL Date

• Tax/Service Date

• Payment Date

Running the Purchase Register (R74R0430) Program

Select Accounts Payable (G74R04), Purchase Book.

Setting Processing Options for Purchase Register (R74R0430)

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

General

Print

Details

Language

Taxes

Chief

(POL) Working with Tax Processing for Poland

This section provides an overview of tax processing for Poland, lists a prerequisite, and discusses how to:

• Run the VAT Purchase Domestic Register report (R74P0410).

• Set processing options for VAT Purchase Domestic Register (R74P0410).

• Run the VAT Purchase Import Register report (R74P0420).

• Set processing options for VAT Purchase Import Register (R74P0420).

• Run the VAT Purchase Register - Paid Voucher report (R74P5010).

• Set processing options for VAT Purchase Register - Paid Voucher (R74P5010).

• Run the VAT Sales Register report (R74P03B1).

• Set processing options for VAT Sales Register (R74P03B1).

Understanding Tax Processing for Poland

On a monthly basis, you must produce VAT reports that display the transactions to which VAT applies. JD Edwards EnterpriseOne provides four VAT reports for Poland:

• VAT Purchase Domestic Register (R74P0410).

• VAT Purchase Import Register (R74P0420).

• VAT Purchase Register - Paid Vouchers (R74P5010).

• VAT Sales (R74P03B1).

When you enter vouchers, you use specific document types for vouchers, and enter additional information that is used in the VAT reports. You specify the type of information that must be entered for a voucher by using the Set Up AP Document Types program (P74P4010) to associate additional information with the UDC values that represent the vouchers that you pay.

See (POL) Setting Up Voucher Types.

To correctly include tax information for imported goods, you must set up the Customs Tax Categories (74P/IM) UDC table to create a cross reference between tax rate/areas and types of taxes or fees on imported goods. The system uses the special handling code in the (74P/IM) UDC to define the type of taxes and fees associated with a tax rate/area when you process VAT reports.

The system determines which posted vouchers to include in each report by the document type, tax rate/area, and item numbers on the vouchers. You set the data selection for each report to indicate the combination for document type, tax rate/area, and item numbers to include. Generally, each voucher is included on only one report.

VAT Purchase Domestic Register Report

The VAT Purchase Domestic Register report (R74P0410) includes information about standard vouchers, corrective vouchers, and expense vouchers. This report lists by document and tax percentage, all of the vouchers generated during the reporting period specified.

In the Header section, this report includes the:

• Name of the company.

• Title VAT purchase register.

• Reporting period (month and year).

• Date and time of printing.

• Program ID.

• Page number.

For each detail line, this report includes the:

• Sequential register number.

• Date of receipt of the invoice.

• Date of issuing the invoice.

• Invoice number.

• VAT registration number of the vendor.

• Name and address of the vendor.

• Each particular VAT rate and VAT amount in the separate line by each invoice number.

• Gross and net amount by each particular VAT rate.

• Gross total amount, net total amount, and VAT total amount by each invoice number.

• Gross total amount, net total amount, and VAT total amount for the page of report.

• Gross total amount, net total amount, and VAT total amount for the report by each particular VAT rate.

When you run the VAT Purchase Register program, the system:

• Groups all detail lines by the VAT rate, and prints only totals for each tax rate.

• Distinguishes between a tax rate of Exempt and a tax rate of 0 percent.

• Retrieves the vendor address number from the F0018 table if the document type for the voucher is defined as an employee expense.

VAT Purchase Import Register Report

The VAT Purchase Import Register report (R74P0420) includes information about standard and corrective vouchers created for imported goods. This report lists, by document and tax percentage, all of the vouchers for imported goods for the reporting period specified.

The supporting document for vouchers that the system includes in the VAT Purchase Import Register is often a customs document. Because the taxes and fees on the voucher are paid to a duty agency, the vendor information that appears on the report is the information that was entered for the customs document. Information about the vendor from whom the goods were purchased is stored in the F74P411H table.

The import register includes the:

• Sequential register number.

• Date of customs duty clearance.

• Vendor's name and address.

• Amount due to vendor.

• Amount of customs duty.

• Packaging tax.

• Amount of excise tax.

• VAT taxable amount.

• VAT amount for tax groups.

• Total liability, net total amount, total duty, total import tax, total excise tax, and total VAT amount for each invoice number.

• Total net amount and VAT total amount for the page of report.

• Total net amount and VAT total amount for the report by each particular VAT rate.

VAT Purchase Register - Paid Vouchers Report

The VAT Purchase Register - Paid Vouchers report (R74P5010) includes information about all vouchers that were paid in the specified period. The report lists, by document and tax percentage, all of the paid standard vouchers, correction vouchers, and expense vouchers.

VAT Sales Report

The VAT Sales report (R74P03B1) includes information about the standard and correction invoices generated for the selected period by legal document and tax percentage. You must run this report on a monthly basis.

In the Header section, this report includes the:

• Program ID.

• Version name.

• Version title.

• Name of the company.

• Address of the company.

• Title VAT sale register.

• Reporting period (month and year).

• Date of printing.

• Program ID.

• Page Number.

For each detail line, this report includes the:

• Sequential register number

• Sales date.

• Invoice date.

• Invoice number.

• Document type.

• Buyer's VAT registration number.

• Buyer's name and address.

• Each particular VAT rate and VAT amount in the separate line by each invoice number.

• Gross and net amounts by each particular VAT rate.

• Gross total amount, net total amount, and VAT total amount by each invoice number.

• Gross total amount, net total amount, and VAT total amount for the page of report.

• Gross total amount, net total amount, and VAT total amount for the report by each particular VAT rate.

In addition to the information specified for the sales purchase register, the correction registers also include a reference to the original invoice. Document type selection and tax rate/area control which entries are included on this report.

When you run the VAT Purchase Register program, the system:

• Summarizes all pay items for each document by VAT rate.

  The system prints as many detail lines as needed to reflect the different VAT rates that were entered for a particular document. For example, if a document contains three VAT rates, the system prints three detail lines for the document. If all detail lines on a document have the same VAT rate, the system prints one detail line.

• Groups all lines of document by VAT rate.

  Only totals are printed for each tax rate.

• Distinguishes a tax rate of Exempt from a tax rate of 0 percent.

• Prints on one page all detail lines for a document type and document number.

Customs Tax Categories (74P/IM)

You set up the Customs Tax Categories UDC to create a cross reference between tax rate/areas and types of taxes or fees on imported goods. The system uses the special handling code in UDC (74P/IM) to define the type of taxes and fees associated with a tax rate/area when you process VAT reports.

To create the cross reference, enter the tax rate/area in the Codes field of the UDC table, and enter one of these codes in the Special Handling Code field to specify the tax or fee that applies.

• 0 (Net value of purchase)

• 1 (Duty)

• 2 (Package tax)

• 3 (Excise tax)

• 4 (Additional duty payments)

Prerequisite

Verify that UDC (74P/IM) is set up.

Running the VAT Purchase Domestic Register Report (R74P0410)

Select Accounts Payable (G74P04), VAT Purchase Domestic Register.

Setting Processing Options for VAT Purchase Domestic Register Report (R74P0410)

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

Select

Process

Print

Running the VAT Purchase Import Register Report (R74P0420)

Select Accounts Payable (G74P04), VAT Purchase Import Register.

Setting the VAT Purchase Import Register (R74P0420)

Set up these processing options:

Select

Process

Print

Running the VAT Purchase Register - Paid Vouchers Report (R74P5010)

Select Accounts Payable (G74P04), VAT Purchase Register - Paid Vouchers.

Setting Processing Options for VAT Purchase Register - Paid Vouchers (R74P5010)

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

Select

Process

Print

Running the VAT Sales Report (R74P03B1)

Select Accounts Receivable (G74P03B), VAT Sales.

Setting Processing Options for VAT Sales (R74P03B1)

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

Select

Process

Print