1. Localizations for Italy Implementation Guide
  2. Suspended VAT Generation Program

Suspended VAT Generation Program

You must identify and account for customer payments that are subject to suspended VAT. To do this procedure, run the Suspended VAT Generation program. When you run this program, the system:

  • Selects only records in the F03B11 table that are subject to suspended VAT and that do not have corresponding records in the Suspended IVA Generation - Receipt/Rebate Control (F743B14I) table. Records in table F03B11 that are subject to suspended VAT have a specific user-defined document type.

  • Creates a record in the F743B14I table.

  • Creates an internal document in the F0018 with a specific user-defined document type for suspended VAT-recognized.

    The program uses the values in UDC (74/DT) to determine the association between the suspended VAT document type and the suspended VAT-recognized document type. The new document uses the tax code to recognize VAT, based on the tax rates and areas that you set up for the system. The program uses the values in UDC (74/SP) to determine the association between the suspended VAT code and the recognized VAT tax code.

    See Setting Up UDCs for Tax Processing for Italy.

  • Creates journal entries in the F0911 table. The journal entries debit the VAT suspense account and credit the VAT payable account.

  • Creates journal entries with the suspended VAT-recognized document type (Q7) in the CA ledger as well as in the AA ledger when payment is received for an invoice with the suspended VAT document type (Q9).

The system also prints an internal control document that you can use as an audit trail of the new, system-generated entries in the F0018 table. The control document includes this information:

  • Invoice header with supplier address.

  • Identifier of the internal document (type, number, and GL date).

  • Suspense invoice reference (type, number, and GL date).

  • Totals by VAT rate, taxable amount, and tax.

  • Internal document totals.