Magnetic Media Information for Colombia

The Magnetic Media information is data about 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's 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 these DIAN formats, which you can generate from your 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.

You'll need to set up each format for cases where accounts or tax codes apply, as mentioned below:

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, entities have the localization fields assigned, and you've set up the following configuration:

Account Mapping

On the customized record Setting up the CO Account Mapping Custom Record, map each account to the right concept.

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.

DIAN uses a generic NIT 222222222 for reporting minor invoice amounts. Only use this generic NIT for amounts below the set limit.

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.

MM Format

Column

Order

Account

Tax Code

1001 Pagos o Abonos en cuenta y Retenciones practicadas

Pago o Abono en cuenta deducible

1001 Pagos o Abonos en cuenta y Retenciones practicadas

Pago o Abono en Cta no deducible

2

X

1001 Pagos o Abonos en cuenta y Retenciones practicadas

IVA Mayor Valor del Costo o Gs Deducible

3

X

X

1001 Pagos o Abonos en cuenta y Retenciones practicadas

IVA Mayor valor del costo o gasto no deducible

4

X

X

1001 Pagos o Abonos en cuenta y Retenciones practicadas

Retención en la fuenta practicada

5

X

1001 Pagos o Abonos en cuenta y Retenciones practicadas

Retención en la fuente Asumida Renta

6

X

1001 Pagos o Abonos en cuenta y Retenciones practicadas

Retención en la fuenta practicada IVA Régimen Común

7

X

X

1001 Pagos o Abonos en cuenta y Retenciones practicadas

Retención en la fuente practicada IVA no domiciliados

8

X

X

1003 Retenciones en la fuente que le practicaron

Retención en la fuente que le aplicaron

2

X

1003 Retenciones en la fuente que le practicaron

Valor Acumulado del PAgo o Abono sujeto a ret en la fuente

1

X

1005 Impuestos a las Vtas por Pagar (Descontable)

Impuesto descontable

1

X

X

1005 Impuestos a las Vtas por Pagar (Descontable)

IVA resultante por devoluciones en Ventas anuladas, rescindidas o resueltas

2

X

X

1006 Impuesto a las Vtas por pagar ( Generado)

Impuesto al Consumo

2

X

X

1006 Impuesto a las Vtas por pagar ( Generado)

IVA recuperado en devoluciones en compras anuladas, rescindidas o resueltas

1

X

X

Report Execution

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

How to run 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 doesn't have a multibook, the accounting book option doesn't 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're 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.

MM - 1001 Exogenous Non-Deductible Payments or Account Credits

You can configure the Non-deductible Payment or Account Credit so that all transactions related to these payments are automatically classified under its corresponding column and accounting account.

The settings for Medium (1001) are based on these concepts, with columns that depend on the Tax Codes and account concepts for each one.

MM - Transaction Types

A List-type column is added in Exogenous Media Configurations to show each type of NetSuite transaction for Colombia.

Considerations for Implementation: Make sure all concepts for these reports are visible on the DIAN Magnetic Media Information Concepts record.

When generating an MM format, you can select the type of transaction. This lets you run the formats based on the user's configuration and selection, covering all scenarios.

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