23 Tax Work File

This chapter contains these topics:

• Section 23.1, "Correcting the Tax Work File"

• Section 23.2, "Purge the Tax Work File"

The system uses the Tax Work File (F0018) to generate the tax reports. This chapter describes how to update the Tax Work file and how to perform periodic purges to the file.

If your company operates in a European Union country or in Japan, you must perform the activities described in this chapter as well as those in other chapters to generate tax reports. For more information, see the chapters Chapter 25, "European Union Activities"andChapter 27, "Japanese Consumption Tax Activities"

The diagram below shows how the Tax Work file integrates with tax reports and the system files.

Figure 23-1 How the Tax Work File Integrates with Tax Reports and System Files

Description of "Figure 23-1 How the Tax Work File Integrates with Tax Reports and System Files"

Posting A/P vouchers, A/R invoices, purchase orders, and sales orders updates the appropriate system files and the Tax Work file. The Journal Entry with VAT Tax program updates the Tax Work file with journal entries. Tax reports reflect information in the Tax Work file. Corrections to the Tax Work file correct the tax reports.

Corrections to the Tax Work file, however, do not correct the system files. Depending on the type of correction, you may need to enter a correcting A/P voucher, A/R invoice, sales order, purchase order, or journal entry to update those files.

23.1 Correcting the Tax Work File

Use Tax File Revisions to add, change, delete, and inquire on transactions in the Tax Work file.

Navigation

From Master Directory menu (G), type 29

From General Systems menu (G00)), choose Tax Processing & Reporting

From Tax Processing & Reporting menu (G0021), choose Tax File Revisions

Figure 23-2 Tax File Revisions screen

Description of "Figure 23-2 Tax File Revisions screen"

Field	Explanation
Document Number	The number that identifies an original document. This can be a voucher, an invoice, unapplied cash, a journal entry number, and so on.
Document Type	A user defined code (system 00/type DT) that identifies the type of document. This code also indicates the origin of the transaction. JD Edwards World has reserved document type codes for vouchers, invoices, receipts, and time sheets, which create automatic offset entries during the post program. (These entries are not self-balancing when you originally enter them.) The following document types are defined by JD Edwards World and should not be changed: P – Accounts Payable Documents R – Accounts Receivable Documents T – Payroll Documents I – Inventory Documents O– Order Processing Documents J – General Accounting/Joint Interest Billing Documents
Document Suffix	In the A/R and A/P systems, a code that corresponds to the pay item. In the Sales Order and Purchase Order systems, this code identifies multiple transactions for an original order. For purchase orders, this is always 000. For sales orders with multiple partial receipts against an order, the first receiver used to record receipt has a suffix of 000, the next has a suffix of 001, the next 002, and so on.
Line Number	A number that identifies multiple occurrences, such as line numbers on a purchase order or other document. Generally, the system assigns this number, but in some cases, you can override it.
Company	A code that identifies a specific organization, fund, entity, and so on. This code must already exist in the Company Constants table (F0010). It must identify a reporting entity that has a complete balance sheet. At this level, you can have intercompany transactions. Note: You can use company 00000 for default values, such as dates and automatic accounting instructions (AAIs). You cannot use it for transaction entries.
Business Unit	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, or branch/plant. The Business Unit field is alphanumeric. You can assign a business unit to a voucher, invoice, fixed asset, and so on, for purposes of responsibility reporting. For example, the system provides reports of open A/P and A/R by business units, to track equipment by responsible department. Business unit security can prevent you from locating business units for which you have no authority. Note: The system uses this value for Journal Entries if a value is not entered in the AAI table.
Object Account	The object account portion of a general ledger account. The terms "object account" and "cost type" are used synonymously. They refer to the breakdown of the Cost Code (for example, labor, materials, and equipment) into subcategories (for example, dividing labor into regular time, premium time, and burden). When you are using a flexible chart of accounts, if the object is set to 6 digits, JD Edwards World recommends that you use all 6 digits. Here, entering 000456 is not the same as entering 456, because the system adds three blank spaces to fill a 6-digit object.
Subsidiary	A subdivision of an object account. Subsidiary accounts include more detailed records of the accounting activity for an object account.
Address Number	The address number you want to retrieve. You can use the short format, the long format, or the tax ID (preceded by the indicators listed in the Address Book constants).
Tax Explanation Code	A user defined code (00/EX) that controls how a tax is assessed and distributed to the general ledger revenue and expense accounts. You assign this code to a customer or supplier to set up a default code for their transactions. Do not confuse this with the taxable, non-taxable code. A single invoice can have both taxable and non-taxable items. The entire invoice, however, must have one tax explanation code. Form-specific information Codes B and C are used in Canada. They can be assessed as a tax on a tax.
Tax Point Date	A date that indicates either when you purchased the goods or services, or when you purchased the goods and services and incurred the tax liability. Generally, when you leave this field blank, the system uses the G/L date you specified.
G/L Date	A date that identifies the financial period that the transaction is to be posted to. The general accounting constants specify the date range for each financial period. You can have up to 14 periods. Generally, period 14 is for audit adjustments. The system edits this field for PBCO (posted before cutoff), PYEB (prior year ending balance), and so on.
Taxable Amount	The amount on which taxes are assessed.
Tax Amount	This is the amount assessed and payable to tax authorities. It is the total of the VAT, use, and sales taxes (PST).
Non-Taxable Amount	This identifies the amount upon which taxes are not assessed. This is the portion of the transaction not subject to sales, use, or VAT taxes because the products are tax-exempt or zero-rated.
Extended Cost	For accounts receivable and accounts payable, this is the invoice (gross) amount. For sales orders and purchase orders, this is the unit cost times the number of units.

23.1.1 Procedures

General Procedures

You can use this program to inquire on and add transactions to the Tax Work file. You cannot use it to change or delete A/R and A/P transactions, however. You must use the appropriate entry screens to change or delete tax information.

Note that you can either inquire on a specific transaction or you can use the roll keys to scroll through the entire Tax Work file, one transaction at a time.

Updating Tax Reports and Systems

Depending on the type of correction you make, you may also need to update the appropriate system files. The Sales Order, Purchase Order, and General Accounting files are not updated when you update the Tax Work file.

For example, if you need to change only the Taxable Amount field and the Tax Amount field, but not the invoice amount, you would not need to update system files. If you needed to modify the Extended Cost (invoice amount) field, this would alter the amount owed to the supplier and you would need to update the system file.

23.1.2 Guidelines

To change or delete tax information for A/R and A/P transactions, use the appropriate entry screens such as Standard Invoice Entry (P03105) or Standard Voucher Entry (P04105).

23.2 Purge the Tax Work File

Navigation

From Master Directory menu (G), type 29

From General Systems menu (G00)), choose Tax Processing & Reporting

From Tax Processing & Reporting menu (G0021), choose Purge Tax File

Because each post updates the Tax Work file, it can quickly become a large file. Periodically purging unneeded records from this file can save disk space and processing time.

Depending on how you set processing options, the Purge Tax File program can save the purged records to a purge library and remove any tax records you deleted on the Tax File Revisions screen.

23.2.1 Dream Writer Considerations

Processing Options

1. The first processing option lets you save the purged records to a purge library. You can then use IBM commands to save the library to a tape or diskette. In addition, you can remove any Tax Work file records that you deleted with the Tax File Revisions screen.

2. The second option lets you reorganize the purged file. JD Edwards World recommends that you always reorganize.

Data Selection

The DEMO version that JD Edwards World provides purges all records posted prior to December 31, 1989 for all companies and business units. You may need to create other versions to purge specific companies, business units, or dates.

Data Sequence

The DEMO version that JD Edwards World provides sequences by company. You should not change the sequence.

23.2.2 Guidelines

• JD Edwards World recommends that you back up the Tax Work file (F0018) before purging records.

• You should run the File Reorganization after the purge finishes. See the help instructions for Reorganize Files on the Data Base Manager menu. Ensure that no one is using the Tax Work file when you run the purge program. The system cannot reorganize the file if someone is using it.