Tax Reporting for Germany

Tax Reporting for Germany enables compliance with federal regulations by generating statutory reports on incoming and outgoing payments, receivables, payables, and journal details.

Use these features to report large transactions, outstanding foreign payables/receivables, and to meet audit requirements. This topic explains feature setup, required master data, transaction entry, and running the reports.

Setup

Complete these steps to set up tax reporting for Germany:

1. Define payment reason codes.
   1. Go to Setup and Maintenance > Manage Payment Codes.
   2. Create payment reason codes for incoming/outgoing payments reported on the Z4 Report.
2. Set the default country for the Z5A report.
   1. Go to Setup and Maintenance > Manage Receivables System Options.
   2. Set the default country to Germany for each relevant business unit.
3. Set up supplier and customer types.
   1. Go to Setup and Maintenance > Manage Supplier Type Lookup.
   2. Define the Internal supplier type for intercompany suppliers.
   3. For customers, assign Internal as the account type for intercompany customers.
   4. Suppliers/customers with site addresses outside Germany are treated as foreign.
4. Assign types on master data.
   1. For intercompany reporting, select supplier type Internal for intercompany suppliers and account type Internal for intercompany customers.
   2. All others will be reported as external.
5. Configure global descriptive flexfields (GDFs).
   1. In Payables, ensure the invoice header includes the Record Type field via the Additional Information tab (Regional Information > Z4 Reporting for Germany context).
   2. In Receivables, set both Record Type and Reason at the transaction header in Regional Information.
6. Set up installment payment reason.
   • In Payables, use Manage Installments to assign the payment reason at installment level.
7. Set up other required entities.
   • Ensure all core structures (data security, geographies, enterprise structure, suppliers, customers, procurement functions, receipt classes, document sequences) are configured as required.

Transaction Entry

Follow these steps to create and process transactions for reporting:

1. Payables Invoice Entry
   1. Create an invoice in Payables.
   2. On the invoice header, set the Record Type in the Additional Information tab (Z4 Reporting context).
   3. Assign the Payment Reason at the installment level.
   4. Validate, account, and post the invoice.
   5. Pay the invoice and account/post the payment.
2. Receivables Transaction Entry
   1. Create a transaction in Receivables.
   2. At the header, set Record Type and Reason (Miscellaneous tab, Regional Information).
   3. Complete, account, and post the transaction.
   4. Create and apply a receipt, then account/post the receipt.

Reporting

Generate statutory reports as follows:

1. Z4 Report for Germany
   1. Go to Tools > Scheduled Processes.
   2. Run Z4 Report for Germany for the required ledger, date range, and threshold amount (default is 12,500 Euros, adjust as needed).
2. Z5A Report for Germany
   1. Go to Tools > Scheduled Processes.
   2. Run Z5A Report for Germany for the ledger and as-of date.
   3. To generate the Reconciliation Report, select the Summarize option, otherwise, generate the Sheet 2 Report.
   4. The report displays both Non-Intercompany and Intercompany details, split by customer/supplier type and by due date.
3. Journal Details Report for Germany
   1. Go to Tools > Scheduled Processes.
   2. Run Journal Details Report for Germany for a data access set, ledger, and period range.
   3. Use the Posting Status parameter as needed (posted, not posted, error).