Invoice Electronic Listing for Italy

This topic explains the implementation and usage guidelines for the Invoice Electronic Listing feature.

This includes the following components:

Invoice Electronic Listing for Italy: The process to create an electronic file of Payables and Receivables accounted invoices. The electronic file is required for transmission to the Italian Revenue Agency.
Invoice Electronic Listing File for Italy: The child process initiated by the Invoice Electronic Listing for Italy, This child process produces a legal electronic file (in the XML format) compliant with the technical specifications defined by the Italian Revenue Agency.
Invoice Electronic Listing Transmission Confirmation for Italy – The process to record the File Transmission Identification returned by the Italian Revenue Agency for each transmission.

The feature Invoice Electronic Listing allows you to follow the decree issued by the Italian Government in October 2016 that introduced the mandatory transmission by electronic means of Payables and Receivables invoices information. It allows you to produce an electronic file compliant with the technical specifications defined by the Italian Revenue Agency.

Assumptions and Prerequisites

The following entities are assumed to have already been setup:

Data Security – Refer to the Fusion Security topical essay available on cloud.oracle.com
Geographies
Enterprise Structure
Tax Regime to Rate setup
Tax Party Profiles
Tax Rules
Suppliers
Customers
Document sequences
Procurement Business Function
Common Options for Oracle Payables and Oracle Receivables

It is recommended that the Implementation Project is complete for your organization before commencing the Feature Specific Setup outlined below.

The XML file generated by the Invoice Electronic Listing File for Italy includes the tag 1.3 <IdSistema>. Remove this tag manually from the generated XML file if you don’t use the web application for the transmission.

Common Setup

Define the Tax Reporting Configuration to start using any Globalization features for Italy.

The Tax Reporting Configuration determines a reporting configuration based on the Tax Registration Number (TRN) defined for Legal Reporting Unit tax registration and is a basis for country-specific tax reporting. This configuration is referred to as the Tax Reporting Entity. Each Tax Reporting Entity is uniquely identified by entity identifier and is a combination of the Legal Entity, Tax Registration Number, and Tax Regime.

Invoice Electronic Listing for Italy feature is not based on the Select Transactions for Tax Reporting process which is a basic tool to prepare taxable records for further tax reporting. However, the feature is based on the reporting identifier generated by this process and refers to the Tax Calendar associated with the Tax Reporting Entity.

Tax Regime

Here are the steps to manage the tax regime:

Navigate to the Manage Tax Regimes task from the Setup and Maintenance area.
Select the Use tax reporting configuration option at the Tax Regime level. This enables the Tax Reporting Configuration tab on the Create/Edit Tax Registration page.

Legal Reporting Unit Tax Registration

Here are the steps to manage the legal reporting unit tax profile:

Navigate to the Manage Party Tax Profiles task from the Setup and Maintenance area.
Search for Legal Reporting Unit Tax Profile and go to Tax Registrations.
Create legal reporting unit tax registration with the Registration Number.
- A Tax Registration Number is a mandatory component of the Tax Reporting Configuration. Once this number is entered, the Tax Reporting Configuration tab becomes available.

Tax Reporting Configuration

Tax Reporting Configuration setup is a part of the legal reporting unit tax registrations setup. Complete the following prerequisite setup to allow access to the Tax Reporting Configuration tab:

Navigate to the Manage Party Tax Profiles task from the Setup and Maintenance area.
Search for Legal Reporting Unit Tax Profile.
Go to Tax Registrations and then the Tax Reporting Configuration tab.
Enable the Use tax reporting configuration option at the Tax Regime level.
Enter the Tax Registration Number for the legal reporting unit tax registrations.
Enter the Tax Calendar to create the Tax Reporting Configuration.
- The tax calendar to be defined for tax reporting can be different from the accounting calendar you define for ledgers. You define the tax calendar using the same Manage Accounting Calendars page.

Feature Specific Setup

Document Type

Document Type (<TipoDocumento> tag) must be populated for each transaction in accordance with the electronic file technical specification:

Document Types
TD01	Invoice
TD04	Credit note
TD05	Debit note
TD07	Simplified invoice
TD08	Simplified credit memo
TD10	Intra-EU purchase invoice of goods
TD11	Intra-EU purchase invoice of services

Use the Document Fiscal Classifications field at the transactions header level mainly to identify the transactions as TD07, TD08, TD10, TD11. It is not mandatory to enter the Document Fiscal Classification for each transaction, if it has not been entered then the tag <TipoDocumento> is populated in the electronic file based on the following rules:

For Payables:

Invoice Type	Third Party Location	Product Type	<TipoDocumento>
Invoice	Italy or non EU country		TD01
Invoice	Not in Italy but in EU country	Goods or not entered	TD10
Invoice	Not in Italy but in EU country	Services	TD11
Credit memo			TD04
Debit memo			TD05
Prepayment	Italy or non EU country		TD01
Prepayment	Not in Italy but in EU country	Goods or not entered	TD10
Prepayment	Not in Italy but in EU country	Services	TD11
Expense Report Invoice			TD01

For Receivables:

Transaction Class	<TipoDocumento>
Invoice	TD01
Credit memo	TD04
Debit memo	TD05

Document Fiscal Classifications for Document Type

You can navigate to the Manage Transaction-Based Fiscal Classifications task from the Setup and Maintenance area and search for the Document Fiscal Classification Codes. The Fiscal Classification Code ORA_IT_DOCUMENT_TYPE is seeded for the Invoice Electronic Listing.

Nature of VAT

Nature of VAT (<Natura> tag) must be populated for each zero rated transaction line, in accordance with electronic file technical specification:

Nature of VAT
N1	Excluded pursuant to Art. 15
N2	Not subject
N3	Not taxable
N4	Exempt
N5	Margin regime
N6	Reverse charge
N7	VAT paid in another EU country (vendite a distanza ex art. 40 c. 3 e 4 e art. 41 c. 1 lett. b DL 331/93; prestazione di servizi di telecomunicazioni, tele-radiodiffusione ed elettronici ex art. 7-sexies lett. f, g, art, 74sexies DPR 633/72)

Use the Tax Reporting Type as Nature of VAT with the Tax Reporting Codes: N1, N2, N3, N4, N5, N6, N7 seeded with the usages: Process Result, Tax Status and Tax Rate.

Transaction Entry in Payables

Task name: Create Invoice

Navigation: Go to Payables Invoices and then click on Create Invoice.

Invoice to be excluded from reporting

Use the GDF segment Reporting Exclusion Indicator provided at the header and line levels of the Payables invoice to exclude specific invoices/lines from the Invoices Electronic Listing reporting. The mass exclusion is not supported.

These GDF segments on both levels are defaulted to null, which means a transaction is included in reporting by default. These segments are handled by the following rules:

If the header level Reporting Exclusion Indicator is set to Yes then a transaction is not included in the Invoices Electronic Listing report.
If the header level Reporting Exclusion Indicator is set to No/null then a transaction is included in the Invoices Electronic Listing report, but the line level Reporting Exclusion Indicator is analyzed for each line of the transaction.
If the line level Reporting Exclusion Indicator is set to Yes for a particular line then this line is not included in the Invoices Electronic Listing report.

VAT Not Exposed Invoice

Use the GDF segment VAT Not Exposed provided at the header level of the Payables invoice to mark it as VAT not exposed. If the VAT Not Exposed is set to Yes then the tag <ImponibileImporto> is populated by sum of taxable and tax amounts.

Foreign Invoice accompanied by Customs bill

In case the customs bill has been issued against the foreign invoice then blocks <IdentificativiFiscali> and <AltriDatiIdentificativi> must be populated by the foreign invoice supplier information and block <DatiFatturaBodyDTR> must be populated by information captured from the Customs bill by the following rules:

Tag <TipoDocumento> – TD01;
Tag <Data> - Invoice Date of the Customs Bill invoice;
Tag <Numero> - Invoice Number of the Customs Bill invoice;
Tag <DataRegistrazione> - Invoice Accounting Date of the Customs Bill invoice;
Tag <ImponibileImporto> - Assessable Amount from Customs Bill invoice;
Tag <Imposta> - Tax Amount from Customs Bill invoice;
Tag <Aliquota> - Tax Rate from Customs Bill invoice;
Tag <Natura> - not impacted by the Customs Bill invoice.

The reason is that the Customs might have assigned different amounts to the transaction.

The Custom bill is entered against a specific supplier which represents the Italian Customs Authority. To get the foreign invoice reported with proper information from the Customs bill establish the link between the foreign invoice and the Customs bill in the following way:

Create an invoice for the specific supplier Customs.
Customs bill must not be reported in the Invoice Electronic Listing, therefore set the header level Reporting Exclusion Indicator to Yes.
Create a foreign supplier invoice and navigate to the Addition Information tab.
Set Regional Information to Payables Invoice Information for Italy and fill in the following fields:
- Customs Name: Select from LOV the name of the supplier that represents the Italian Customs Authority.
- Customs Bill Invoice Number: Select from LOV the invoice associated with this supplier and pertain to the foreign invoice.

You must account all Payables transactions before reporting them in the Invoice Electronic Listing. Validate the invoice and account and post to Ledger. Check the validation and accounting status in the Status region of the Create Invoice page.

Simplified Invoice and Credit Memo

Use the Document Fiscal Classification field provided at the Payables invoice header level to mark the invoice as a simplified invoice or to mark the credit memo as a simplified credit memo to get the correct document type populated in the tag <TipoDocumento>.

Note: If you don’t specify the Document Fiscal Classification for the Simplified Invoices/Credit Memos, then the Invoice Electronic Listing defaults <TipoDocumento> in the XML file to TD01 for invoices and to TD04 for credit memos.

Intra-EU Purchase

Use the Document Fiscal Classification field provided at the Payables invoice header level to mark the invoice as Intra-EU purchase invoice of goods or services in order to get the correct document type populated in the tag <TipoDocumento>.

Note: If you don’t specify the Document Fiscal Classification for the Intra-EU purchase invoices then the Invoice Electronic Listing defaults <TipoDocumento> in the XML file.

Expense Report

All the expense report invoice lines are reported in the Invoice Electronic Listing.

Note: Exclude expense report invoice lines related to B2C transactions by using the Reporting Exclusion Indicator at the invoice line level. This should be done because the only expense report invoice lines related to B2B transactions must be reported.

The expense report invoices with lines not excluded but without merchant information are reported but will be listed in the Log file under the message: Expense report invoices with no Merchant information on particular lines.

As invoices are grouped by a Supplier, all expense report invoice lines with empty Merchant Name are grouped.

Transaction Entry in Receivables

Task name: Create Transaction

Navigation: Navigate to the Receivables Billing task and then click on Create Transaction.

Transactions to be excluded from reporting

Use the GDF segment Reporting Exclusion Indicator provided at the header and line levels of Receivables transaction to exclude a specific transaction/lines from the Invoices Electronic Listing reporting. The mass exclusion is not supported.

These GDF segments on both levels are defaulted to null, which means a transaction is included in reporting by default. These segments are handled by the following rule:

If the header level Reporting Exclusion Indicator is set to Yes then a transaction is not included in the Invoices Electronic Listing report.
If the header level Reporting Exclusion Indicator is set to No/null then a transaction is included in the Invoices Electronic Listing report, but the line level Reporting Exclusion Indicator is analyzed for each line of the transaction.
If the line level Reporting Exclusion Indicator is set to Yes for a particular line then this line is not included in the Invoices Electronic Listing report.

VAT Not Exposed Invoice

Use the GDF segment VAT Not Exposed provided at the header level of the Receivables invoice to mark it as VAT not exposed. If the VAT Not Exposed is set to Yes, then the tag <ImponibileImporto> is populated by the sum of taxable and tax amounts.

You must account all Receivables transactions before reporting them in the Invoice Electronic Listing. Complete the transaction, account, and post to Ledger.

Processing and Reporting

Navigate to Schedule Processes from Tools and click on Select Transactions for Tax Reporting.

Each run of the Select Transactions for Tax Reporting process is assigned a system generated reporting entity identifier. This reporting identifier is used for the submission of all the processes considered below. The reporting identifier is built as a concatenation of the Reporting Level, Legal Entity, Tax Regime, TRN and the Reporting Identifier ID (for example: LE:Vision Italy-1017:IT VAT:IT12345670017:300100066356392). The only accounted transactions are selected.

If the Selection process has already been run at least once as a part of the business flow of another Globalization feature for Italy and the proper reporting identifier has been generated then this processing is not required and the section doesn’t require a particular attention in context of the Invoice Electronic Listing.

Note: There is no report produced for the Select Transactions for Tax Reporting. The log files show the number of transactions selected. Each tax line of the selected transaction is stamped by the reporting batch id.

Invoice Electronic Listing for Italy

Navigate to Schedule Processes from Tools and click on Invoice Electronic Listing for Italy.

The feature Invoice Electronic Listing for Italy is a process that creates an electronic file of Payables and Receivables accounted invoices. The electronic file is required for transmission to the tax authorities.

The Invoice Electronic Listing for Italy initiates a child process Invoice Electronic Listing File for Italy which produces a legal electronic file (in the XML format) compliant with the technical specification defined by the Italian Revenue Agency.

To review the content of the electronic file in a user readable format open the xml file with the Microsoft Office Excel application. Use the Excel representation for internal auditing purpose.

The XML file includes all the accounted transactions with the accounting dates within the reporting period (From/To Periods range):

For Payables these are Standard Invoices, Credit Memos, Debit Memos, Prepayment Invoices and Expense Report Invoices.
For Receivables these are Invoices, Credit Memos and Debit Memos

All amounts are reported in the functional currency of the primary ledger.

Invoice Electronic Listing Transmission Confirmation for Italy

Navigate to Schedule Processes from Tools and click on Invoice Electronic Listing Transmission Confirmation for Italy.

Once the Italian Revenue Agency receives the electronic file, it generates and returns back to a transmitter the electronic transmission receipt confirmation: File Transmission Identification.

The feature Invoice Electronic Listing Transmission Confirmation for Italy is to record the File Transmission Identification returned by the Italian Revenue Agency for each transmission.

It also provides the log file with the Transmission Status Report which is the list of existing records for a given Reporting Entity, Reporting Period, Transmission Type and the Source.