Magnetic Media Information for Colombia

The Magnetic Media information are data on operations with customers, vendors or third parties that individuals and legal entities must periodically submit to the tax administration.

The Magnetic Media tax feature validates the data delivered to exercise greater control over taxes and guarantee compliance with the substantial and formal obligations of taxpayers.

Magnetic Media information is presented through reports or formats. The law establishes that these reports are delivered in an XML format, through a tax pre-validator which can be downloaded for free on the DIAN’s portal. It is important that all figures are thoroughly reviewed in the files generated by NetSuite and that the corresponding tax adjustments are made.

The Colombia Localization SuiteApp supports the following formats established by the DIAN, which can be generated from the information created on NetSuite’s transactions:

Format	Format name
1001	Account and withholding payments and deposits
1003	Withholding at the source practiced
1005	Deductible VAT tax
1006	Generated VAT tax
1007	Received income
1008	Accounts receivable balance
1009	Accounts payable balance

Each format is formed by a series of concepts that classify each Accounts plan account. For more information about account setup, see Setting up the CO Account Mapping Custom Record.

Technical-administrative requisites

For proper functioning of the Magnetic Media information module, go to Setup > Colombia Localization > Magnetic Media information setup. Minimal setup is included with the SuiteApp.

It is necessary to set up each format for the cases where accounts or tax codes apply, as mentioned below:

• Format 1001: The configurations that apply to this format are those related to minor concepts and quantities. In terms of columns, the first one is obtained from the balances related to the setup concepts; the rest of the columns depend on the applicable tax codes to each one of them. Therefore, the columns must be set up with their respective codes. If a column is not included, it appears empty.

• Format 1003: The configurations that apply to this format are those related to concepts. In terms of tax codes, the customized field Withholding Category is included. The strong withholding category codes are the ones included in the report.

• Format 1005: This is a VAT-based format. The Tax Code box is included in the tax code. This VAT tax code should include deductible movements generated in the following transactions: credit memo, cash refund, journal, invoice, and cash sale.

• Format 1006: This is a VAT-based format. The Tax Code box is included in the tax code. This VAT tax code should include deductible movements registered in the following transactions: vendor note, vendor bill, and journals.

• Format 1007: The configurations that apply to this format, on a regulatory level, are the ones related to minor concepts and quantities. In terms of reports setup, it is necessary to include the income accounts that correspond to each one of the report columns. For more information, see Magnetic Media Information Setup.

• Format 1008: The configurations that apply to this format, on a regulatory level, are the ones related to concepts.

• Format 1009: The configurations that apply to this format, on a regulatory level, are the ones related to concepts.

Important:

The information about the entity must be correct, complete, and without any missing information. For more information, see Colombia Localization Features. Transactions must have third parties assigned, and the accounts must be mapped to their respective Magnetic Media information concept. For more information, see Setting up the CO Account Mapping Custom Record

Magnetic Media Information Setup

To generate the Magnetic Media information formats, make sure that the accounts are mapped, the entities have the localization fields assigned, and the following configuration is established:

Account Mapping

On the customized record Setting up the CO Account Mapping Custom Record, you must perform the account mapping with the corresponding concepts.

Minor Amounts

A minor amount refer to a payment or account credit inferior to a certain value set by the DIAN, which can be reported without identifying the beneficiary of the payment or account credit. This amount applies to each beneficiary and is determined by the value accumulated during the reporting period.

The DIAN has created a generic NIT 222222222, where the minor amounts of invoicing are reported. This generic NIT can only be used to report amounts inferior to the established standard.

To configure minor amounts

1. Configure a customer and fill in these minor amount-related required fields:

   1. Identification Number: enter the generic NIT number of 222222222.

   2. Minor Amount: select the check box for the grouping method.

2. Go to Configuration > Colombia Localization > Magnetic Media Report Setup.

3. Check the Minor Amount Calculation box.

4. Fill in the Amount for Minor Amounts field with the amount.

5. Got to Reports > Colombia Reports > External information generation to execute the report.

6. Enter the corresponding values and execute the book.

7. After the XML and XMS files are exported, you can check the minor amounts under 1000.000for each concept.

Magnetic Media Reports Setup

Go to Setup > Colombia Localization > Magnetic Media Reports Setup > New.

The fields required for identifying the specifications for each format column will be enabled.

Report Execution

The following steps describe how to generate the Magnetic Media information report.

How to execute the Magnetic Media Information report:

1. Go to Reports > Colombia Reports > Magnetic Media Information Generation.

2. From the Subsidiary list, select a subsidiary for the report.

3. From the Report list, select a report type.

   Note:

   If the account does not have a multibook, the accounting book option does not appear.

4. From the Send Type list, select one of the sending types specified by the DIAN.

5. In the Start Date field, enter a start date for your report.

6. In the End Date field, enter an end date for your report.

7. Click Generate Report. You are now redirected to the Magnetic Media report execution record. On that page, you can see the process and the data selected on the generation screen.

8. Upon completion, the XML and Excel files containing the information obtained from the system appear.

Withholding Certificates

A withholding certificate is one of the formal obligations of a tax withholder on income, sales, industry, and trade. The withholding agent issues this document to vendors, creditors, and others to certify the value paid for the acquisition of goods or services and the withholding done in a certain period.

How to generate withholding certificates:

1. Go to Reports > Colombia Reports > Withholding Certificates > New.

2. From the Certificate Type field, select the withholding type you want the certificate to display.

3. From the Subsidiary field, select the subsidiary who issues the certificate.

4. From the Expedition Date field, select the certificate issue date.

5. From the Third Party Entity field, select the third party entities the certificate applies to.

6. In the Notes field, enter additional comments to be displayed on the PDF:

7. In the From and To fields, select the date range for which you want to filter transactions.

8. Click Submit and wait for the process to finish (see the Status field).

9. Click the Detail subtab to see the PDF.

General Notices