Understanding Tax Rate Area Associations

The European Sales List report that you generate using the VAT European Sales List program (R740018D) includes information about your cross-border sales transactions with other European Union (EU) member countries.

The system uses the tax rate areas, item number, and the transaction type of your sales transactions to determine how to classify the records included in the sales list report. You use the Tax Rate Area and Transaction Type Mapping program (P740018A) to associate tax rate areas to transaction type codes. When you create the associations between tax rate areas and transaction type codes, you specify whether a tax rate area is used for goods or services.

To identify a transaction as transaction involving goods or services, the system enables you to specify an item number in addition to the tax rate. A tax rate/area can correspond to goods as well as services.

Note: The system reads the Taxes table (F0018) when you run the Data Extraction for ESL program (R740018A). If a sales transaction exists in the F0018 table for which you neglected to associate a transaction type to the tax rate area, the system codes the transaction as one for goods with no triangulation.

The JD Edwards EnterpriseOne software enables you to use the JD Edwards EnterpriseOne Accounts Receivable system or the JD Edwards EnterpriseOne Sales Order Management system to process invoices. If you use only the JD Edwards EnterpriseOne Accounts Receivable system to process invoices, you enter additional information in the Tax Rate Area and Transaction Type Mapping program to specify whether the tax rate area associated with a transaction type of G (goods) is used for sales transactions involving triangulation. You complete the Triangulation Flag field to specify the transaction nature of the transaction. The transaction nature is either goods (no triangulation) or triangulation (transactions for goods involving three EU countries). You do not need to specify the transaction nature if you use the JD Edwards EnterpriseOne Sales Order Management system because that system captures the information needed process the sales records for goods for the EU sales list report.

The system saves the associations between the tax rate areas, transaction codes, and transaction nature codes in the Tax Rate Area and Transaction Type Mapping table (F740018A).

Note: (ESP) You use the Tax Rate Area & Transaction Mapping program to associate tax rate areas with transaction types before you generate the Model 349 workfiles and reports. You do not use the VAT European Sales List program to generate reports for Spain.