This chapter contains these topics:
Section 22.2, "Working with Additional Data Entry Requirements"
Section 22.4, "Entering VAT-Only Vouchers for A/P (Bolla Doganale)"
Section 22.5, "Working with Invoices for the European Union"
J.D. Edwards solutions for additional business practices in Italy consist of the following tasks:
Working with additional data entry requirements
Printing ledger reports
Printing open amount reports
Processing multiple currencies
J.D. Edwards solutions for additional data entry requirements in Italy include:
Accounting for petrol cards
Entering VAT-only vouchers for A/P (Bolla Doganale)
Working with invoices for free goods
Working with invoices for the European Union
In Italy, companies that provide company cars for their employees are required to keep a petrol (gas) card for each vehicle. The petrol card is used to record the expense of petrol used on the company account to be charged as a company expense. In this way the company can verify that the petrol consumed on the company account corresponds to the petrol recorded on the petrol card.
There are many possible methods for accounting for petrol cards. See the following examples.
| Example | Method |
|---|---|
| Enter the employee expense report | DR - Transit account
CR - Payable to Employee account |
| Post the petrol card in Accounts Payable | DR - Purchases (Petrol) account
CR - Petrol Card (dummy supplier) account |
| Close petrol debt | To close the debt to the dummy supplier (Petrol Card account), use the manual payment process and replace the Bank account with the Transit account that you used when entering the employee expense report.
DR - Petrol Card (dummy supplier) account CR - Transit account |
In Italy, when a company imports goods from a European country, the VAT rate for the goods is zero, per intra-union regulations. Still, the Italian Customs Authority claims the payment of the VAT at the Italian domestic rate (which is usually about 19 percent). To pay the required VAT, set up the Customs Authority as an address book record with a person/corporation code of 5 (customs authority).
Normally in Italy, different document types are used for Bolla Doganale and standard vouchers. The same next numbers are used for both types of vouchers and both are printed sequentially on the Monthly VAT report (P004051). Alternately, you can print Bolla Doganale separately on the Monthly VAT Report and with a separate numbering scheme. To do this, set up next numbers by document type and print the Monthly VAT Report by document type.
You can also set up a special version of the Voucher Entry program (P04105) to default a specific document type from the A/P Functional Server (XT0411Z1) processing option for Bolla Doganale.
Set up a special version of the Voucher Entry program (P0411) to process Bolla Donganale. Use the processing options for the program to default a specific document type for VAT only vouchers.
Note:
You do not have to set up a special version of the Voucher Entry program if your company decides to use the same next number (Same As) for Bolla Doganale vouchers and standard vouchers.When you enter Bolla Doganale vouchers for A/P, use the tax explanation code of VT. You can enter the tax amount with the gross amount equal to the tax amount for vouchers with a tax explanation code of VT.
You enter two types of Bolla Doganale:
Vouchers with VAT payment by Carrier/Customs Agency (Corriere/Transportatore)
Vouchers with VAT payment directly to the Customs Authority (Dogana)
For Bolla Doganale with VAT payment by carrier or customs agency, the entries are posted as follows:
| Entry | Explanation |
|---|---|
| Bolla Doganale | DR - VAT Recoverable account
CR - Payable to Bolla Doganale account |
| Customs agency voucher | DR - VAT Transit account
DR - VAT Recoverable account CR - Debt to Customs Agency account DR - Customs Expenses account |
| Close the VAT only voucher | DR - Payable to Bolla Doganale account
CR - VAT Transit account NOTE: You create the entries to close the VAT only voucher through the manual or automatic payment process. To do this, replace the bank account with the VAT Transit account previously debited when the Customs Agency voucher was posted. |
For Bolla Doganale with VAT payment directly to the Customs Authority, the entries are posted as follows:
| Entry | Explanation |
|---|---|
| Bolla Doganale | DR - VAT Recoverable account
CR - Payable to Bolla Doganale account |
| Payment to the Dogana | DR - Payable to Bolla Doganale account
CR - Bank account |
| Close the VAT only voucher | DR - Payable to Bolla Doganale account
CR - VAT Transit account |
Invoices for free goods are invoices that have a zero value. In Italy, invoices for free goods must be entered into the system for fiscal and VAT reporting purposes.
When you enter invoices for free goods into the system, the first pay item represents the taxable amount with the relevant tax rate. You enter this pay item with a tax explanation code of V (VAT). The second pay item represents the gross amount (negative). To calculate the gross amount, add the first pay item taxable amount and the VAT amount. Enter the second pay item with a tax explanation code of E (exempt) with a tax rate of zero.
| Pay Item | Gross Amount | Taxable Amount | Tax Amount | Tax Rate Code | Tax Explanation Code |
|---|---|---|---|---|---|
| 001 | 1000 | 190 | IT19 | V | |
| 002 | -1190 | IT00 | E |
The total invoice value is zero and the invoice can be posted to update the tax table.
The G/L distribution should debit the Cost of Goods Sold account and credit a specific expense account for free goods.
To close the invoice, record a cash receipt through the Receipts Entry program (P03103).
To close the invoice, record a cash receipt through the Receipts Entry program (P03B102).
When a company within the European Union imports goods from other European countries, the VAT payable should be compensated with the VAT receivable. J.D. Edwards Accounts Payable system compensates for the VAT amount when you enter the voucher for the supplier.
To do this, you must set up various tax rates for the different types of sales and purchase transactions. For example:
| Transaction Type | Explanation |
|---|---|
| Purchase transactions | A purchase tax rate code might be CEEA16 or CEEA19. The codes are defined as follows:
CEE = European Union A = Purchases 19 or 16 = tax rate percentage |
| Sales transactions | A sales tax rate code might be CEEV16 or CEEV19. The codes are defined as follows:
CEE = European Union V = Sales 19 or 16 = tax rate percentage |
For each type of tax rate code, you can set up specific G/L class codes. The system uses the G/L class codes to post your journal entries to different VAT accounts in your chart of accounts. For example, you might have a Domestic VAT account and EU VAT account.
When you enter invoices for the European Union, use a document type that is specific to the type of transaction and the appropriate currency code. The first pay item for the invoice represents the invoice amount with a tax explanation code of exempt (E). The subsequent pay items are used to compensate the VAT, as shown in the following example:
| Pay Item | Gross Amount | Taxable Amount | Tax Amount | Tax Rate Code | Tax Explanation Code |
|---|---|---|---|---|---|
| 001 | 1000 | E | |||
| 002 | 1190 | 1000 | 190 | CEEA19* | V |
| 003 | -1190 | -1000 | -190 | CEEV19* | V |
You must print the information for sales and purchases that are applicable to VAT on separate Monthly VAT Reports (P004051). To do this, make the following data selections:
| Data Selection | Explanation |
|---|---|
| EU VAT Recoverable | Batch Type V and W
Tax Rate Code CEEA16 and CEEA19 |
| EU VAT Payable | Batch type V and W
Tax Rate Codes CEEV16 and CEEV19 |
Note:
You should also set up your Summary IVA reports (P74093 and R74093) using the same data selection.