How the System Determines the Transaction Nature Classification

When you run the Data Extraction for ESL program, the system runs a sub-routine to determine whether to classify the transactions as a service, regular goods, or goods involving triangulation. Trade triangulation occurs when a company in one EU-member country makes a sale or purchase with a company in another EU-member country but the goods are physically shipped from a company in a third EU-member country. If the goods are not shipped from an EU-member country, then the transaction is not required to be reported to the government.

The system uses data from the Tax Rate Area and Transaction Mapping table (F740018A) and F4211 table to determine the transaction nature.

This table shows how the system classifies the transactions, based on data in the F0018A and F4211 tables:

Transaction code in F740018A is Service?	Transaction Record Exists in F4211	Triangulation Code in F740018A is 1	Country code for company, ship-to, and ship-from are all different (triangulation)	Transaction Nature
Yes	NA All service transactions are classified in the same manner.	NA The Triangulation Flag field is used only for transactions for goods for which a record does not exist in the F4211 table.	NA Service transactions are not coded as triangulation.	Service
No	Yes	NA The system ignores the Triangulation Code field in the F740018A table if the transaction record exists in the F4211 table.	No	Goods (regular)
No	No If the transaction does not exist in the F4211 table, it must exist in the F03B11 table or the system does not consider the transaction for classification.	No	No	Goods (regular)
No	Yes	NA The system ignores the Triangulation Code field in the F740018A table if the transaction record exists in the F4211 table.	Yes	Triangulation
No	No	Yes	Yes	Triangulation