Understanding the VAT on Free Goods Journal - China Report

The VAT on Free Goods Journal Creation program (R75C4203) calculates and reports liable VAT on free goods from sales orders, and creates corresponding journal entries.

The JD Edwards EnterpriseOne Sales Order Management system allows users to store sales information in the F4211 table or purge those detail records. When you purge table F4211, the system moves the records to the F42119 table. The VAT on Free Goods Journal report can calculate VAT on free goods by using either table F4211 or table F42119.

Note: Journal entries are only created when you run the VAT on Free Goods Journal Creation report in final mode. The system uses the tax Automatic Accounting Instruction (AAI) (RTxxxx) to determine the credit account. The system uses the distribution AAI 4290 to determine the debit account. You can override these accounts by entering specific accounts in the processing options.