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Work with VAT handling codes (GDMD13101)

This panel displays the entries that are used for the automatic calculation and accounting of VAT amounts for different transactions. The entries are used both when entering VAT on invoice and on G/L level.

VAT refunding for payments, when cash discount which includes a VAT amount is deducted, will automatically be posted based on the rules in this program, and in the cash discount document type.

Options

Selection fields

Code
This column lists the existing VAT handling codes.

Work with VAT handling codes (GDMD13104)

On this panel you can add a new or change an existing VAT handling code. The VAT handling codes will be used in automatic calculation and accounting of VAT amounts for different transactions.

A/P Automatic Invoice Matching

The following VAT handling rules apply when the total invoice line amount is computed and validated during A/P automatic invoice matching:

  • VAT records should be stored in the General Interface file A/P Batch input file, VAT transactions (SROLBV).
  • If the VAT amount is entered, it is used for computation of the total invoice line amount.
  • If the VAT amount is zero, the VAT amount is calculated based on the reference amount and the VAT handling code. The calculated amount is then used for computation of the total invoice line amount.
  • For VAT handling codes that are applicable to EU VAT, the calculation must be defined by the XX1-XX5 fields. The BBB field must be blank.
  • For VAT handling codes that are applicable to domestic VAT, the calculation must be defined by field BBB. The XX1-XX5 fields must be blank.

Function keys

Maintain percentage/Display percentages Access Work with percentages/Percentages enquiry.

VAT handling code

Percentage code
This field is only displayed if either DC1 Distribution or DC1 SIP is installed and activated (or both). It refers to Work with percentages when this VAT handling code is used for calculating VAT in DC1 Distribution or DC1 SIP.

Note: This field is only displayed if either DC1 Distribution or DC1 SIP is installed and activated (or both).

Input fields
AAA is used in calculations to represent the base amount. BBB is used to represent the VAT amount.
Inp cde
This code decides whether or not the base amount and VAT amount of a transaction must be entered. You have three options, and the codes for them are defined in the Language table.

Permitted values:

Code Description
NOT ALLOWED The amount must not be entered
OPTIONAL The amount may be entered
MANDATORY The amount must be entered

More information:

If one code is NOT ALLOWED, the other must be MANDATORY. An amount, VAT or base, which is NOT ALLOWED or OPTIONAL, cannot be referred to in a calculation.

There is one exception from the rule that if one code is set to NOT ALLOWED, the other must be MANDATORY:

If the VAT handling in the system is on G/L level, and you want to be able to create pricing transactions, based on zero amount transactions with a quantity, both input codes can be set to NOT ALLOWED. A VAT handling code for G/L VAT handling always uses dots (…….) instead of a pseudo account in the pseudo account fields on the first line for the output transactions. The code for the transaction amount to be posted to the pseudo accounts must have the calculation formula 0, which means a zero amount will be posted to the account you enter.

Calculation
For Base amount/VAT amount: You can enter a formula that defines the relationship between the base amount and the VAT amount, i.e. how to calculate the base amount from the VAT amount and vice versa. All four arithmetic rules can be used, i.e. +, -, / and *. Percentages are retrieved from Work with percentages, and are stated in the %XX format, where XX is the code for the percentage.

For example:

BBB*100/%20 and AAA*%17/100

You can add comments to every formula. A comment must be preceded by an exclamation mark.

Field 1-5
For fields 1-5, you have five lines at your disposal for calculations. The calculation gives the value of the code at the beginning of the line, and this code can then be used in further calculations. The values represented by the codes can be directed to pseudo accounts and entered automatically when you register transactions.

You can refer to the base amount (AAA) and the VAT amount (BBB) in your calculations. All four arithmetic rules can be used, i.e. +, -, / and *. Percentages are retrieved from Work with percentages, and are stated in the %XX format, where XX is the code for the percentage. Furthermore, the cash discount percentages can be used if you enter the codes CD1 and CD2.

For example:

(XX1) AAA-BBB
(XX2) XX1*%25/100

You can add comments to every formula. A comment must be preceded by an exclamation mark.

Invoice tot. control
Enter the code for the amount that is to be compared to the total transaction amount for a document in the manual transaction entry routines.
Override
If you want to disregard the relationship defined in the VAT handling code you can use an override code to do this. Enter the override code for this VAT handling code.

Permitted values:

Code Description
0 The VAT amount and the Invoice total control will not be overridden.
1 The VAT amount will be overridden and the Invoice total control will not be overridden.
2 The VAT amount will not be overridden and the Invoice total control will be overridden.
3 Both the VAT amount and the Invoice total control will be overridden.

For example:

The VAT handling code is calculating 20 % on base amount. This then calculates to a total invoice amount of £100. If you then enter override code 1 the system will allow you, during invoice entry to enter any amount in the VAT amount field just as long as you enter the same total amount for the invoice total.

Note: When you override the Invoice total control you must ensure that all used VAT handling codes have override codes 2 or 3. This will allow you to override the error message.

Out
This and the remaining fields, below, are only displayed if DC1 Financials is installed and activated. The accounting of the output transactions that are created from the VAT handling code calculations is defined in the fields below.
Pseudo d
This field is only displayed if DC1 Financials is installed and activated. Enter the pseudo account that will be used for a debit transaction. If you enter VAT on G/L level, you must enter dots (…….) on the first line. The system will then use the account for which VAT is calculated.
Pseudo c
This field is only displayed if DC1 Financials is installed and activated. Enter the pseudo account that will be used for a credit transaction. If you enter VAT on G/L level, you must enter dots (…….) on the first line. The system will then use the account for which VAT is calculated.
Tr am
This field is only displayed if DC1 Financials is installed and activated. Enter the code for the transaction amount that is to be entered on the pseudo accounts. Valid entries are AAA or BBB if they have input code MANDATORY or if they can be calculated, and the XX1XX5 codes if they are calculated.
+/-
This field is only displayed if DC1 Financials is installed and activated. If the transaction amount should have a reverse sign from the calculation result, enter a minus symbol. A plus symbol or blank will not change the sign.
Rep no
This field is only displayed if DC1 Financials is installed and activated. You can enter a reference number for the VAT report in which this transaction amount will be included. The values to enter depend on the report you use.
Ref am
This field is only displayed if DC1 Financials is installed and activated. Enter the code for the reference amount to be connected to the transaction amount. Valid entries are AAA or BBB if they have input code MANDATORY or if they can be calculated, and the XX1XX5 codes if they can be calculated.
+/-
This field is only displayed if DC1 Financials is installed and activated. If the reference amount should have a reverse sign from the calculation result, enter a minus symbol. A plus symbol or blank will not change the sign.
Rep no
This field is only displayed if DC1 Financials is installed and activated. This field is also used for VAT refunding on cash discount. The report number you enter for each output transaction is used to control on which pseudo accounts the VAT refund is to be posted.
Pseudo d
This field is only displayed if DC1 Financials is installed and activated. Enter the pseudo account on which the VAT refunding transaction is to be posted if the original VAT posting was a debit. For example, you can enter the VAT pseudo account that was used for the original posting, or use another pseudo account if you want to separate VAT refunding from regular VAT handling.

If you use VAT entry on G/L level and income/cost refunding is going to be done, you can enter dots in this to post the refund on the original account, or use another pseudo account if you want to separate income/cost refunding from regular income/cost handling.

Pseudo c
This field is only displayed if DC1 Financials is installed and activated. Enter the pseudo account on which the VAT refunding transaction is to be posted if the original VAT posting was a credit. See description for Pseudo d above for more details.

Work with VAT handling codes (GDMD13105)

The entries on this panel are used to determine if this VAT handling code handles amounts that will be included in the EU VAT sales report.

You also control whether amounts registered on this VAT handling code are to be included in cash discounts and/or turnover amounts.

Function keys

Maintain percentage/Display percentages Access Work with percentages/Percentages enquiry.
VAT handling code
Displays the selected VAT handling code.
Percentage code
Displays the percentage code for the selected VAT handling code.
VAT handling code
Displays the VAT handling code you are working with.
Percentage code
Displays the percentage code for the VAT handling code you are working with.

Goods transaction
Indicate if this VAT handling code concerns invoice amounts that are to be included in the EU VAT sales report as goods.

Indicate if this VAT handling code concerns transactions that are to be included as goods in the CP declaration procedure and the INTRASTAT declaration. For more information, see About the Comunicazione Polivalente (CP) procedure (Italy).

Service transaction
Indicate if this VAT handling code concerns invoice amounts that are to be included in the EU VAT sales report as service.

Indicate if this VAT handling code concerns transactions that are to be included as service in the CP declaration procedure and the INTRASTAT declaration. For more information, see About the Comunicazione Polivalente (CP) procedure (Italy).

Cash discount
Set this field to YES if amounts entered with this VAT handling code at transaction entry are included in the cash discount base amount. (Note: The Cash disc net amount field in the Terms of payment table determines if the cash discount base amount should be based on net or gross amount).

Note: This also applies for order lines in DC1 Distribution, i.e. order lines with a VAT handling code with Cash discount = NO, are not included in the cash discount base amount.

To receive a cash discount base amount with or without VAT included, the Reference amount field must have been completed.

Turnover amount
Set this field to YES if amounts entered with this VAT handling code at transaction entry are included in the turnover amount. (Note: The Turnover net amount field in the A/R and A/P control file determines if the turnover amount should be based on net or gross amount).

To receive a turnover amount with or without VAT included, the Reference amount field must have been completed.

Temporary VAT handl
Indicate if you want the VAT amount to be booked in a temporary VAT account. You can move this VAT amount to the VAT account when required at a later stage.
Temporary VAT pseudo
Enter the pseudo code for the temporary VAT account.
Update VAT file
Indicate if you want to save the records, that are not included in the VAT report, in the VAT file.
Cash discount redist
Indicate if you want cash discounts handled in payment routines to be redistributed to the purchase/sales account.
Exch.rate dif redist
Indicate if you want currency exchange rate differences handled in payment routines to be redistributed to the purchase/sales account.
Unrealized VAT
Note: The OPW application (DC1 Italian A/R-A/P payments) must be installed and activated. This field’s functionality only applies for customers that have a business relation with a government entity, e.g., a pharmaceutical distributor selling medical items to hospitals. The customer must be using the OPW module. Indicate if this VAT handling code is a VAT suspension code.
VAT code on settled
Note: The OPW application (DC1 Italian A/R-A/P payments) must be installed and activated. This field’s functionality only applies for customers that have a business relation with a government entity, e.g., a pharmaceutical distributor selling medical items to hospitals. The customer must be using the OPW module. Enter the normal VAT handling code to be used when the sales register should be printed after payment.
VAT registration cd
Note: The OPW application (DC1 Italian A/R-A/P payments) must be installed and activated. This field’s functionality only applies for customers that have a business relation with a government entity, e.g., a pharmaceutical distributor selling medical items to hospitals. The customer must be using the OPW module. Enter the deferred VAT register code that should be printed after payment.
VAT code in suspens
Enter the VAT code in suspension. This code must be entered in the normal VAT handling code used when the payment is received in order to re-issue the invoice.
With VAT
Indicate if the transaction amounts with this VAT handling code include VAT.
Without VAT
Indicate if the transaction amounts with this VAT handling code should not be taxable. This is an Italian fiscal clause to manage the VAT zero amount.
With VAT exempt
Indicate if the transaction amounts with this VAT handling code should be exempt from tax. This is an Italian fiscal clause to manage the VAT zero amount.
Not subject to VAT
Indicate if the transaction amounts with this VAT handling code should not be subject to VAT. This is an Italian fiscal clause to manage the VAT zero amount.

Work with VAT handling codes, Copy (GDMD13106)

Code
Displays the VAT handling code(s) you selected to copy.

New code
Enter the new VAT handling code that you are creating.

Work with VAT handling codes, Deletion (GDMD13109)