Setting up the EU Reporting functionality

The following fields are associated with the Intrastat and EU VAT sales report:

VAT registration no

Caution: You should not complete this field if you want to use the Intrastat and EU VAT sales report functions, i.e. if the EU reporting field below is set to YES. When that field is set to YES, the VAT registration number should be entered for each country where your company is appointed to declare VAT. See Work with countries.

EU reporting

Set this field to YES to activate the EU reporting functionality for this company.

System country

Displays the country code where the main activity of your company is located. This field was completed when the DC1 system was installed.

Note: If you changed any information in this file, the changes will not be reflected until you start the company the next time. You can restart the company via the Change company to work with menu item and selecting the same company code.

The program has two modes: Accounts Receivable (default mode) and Accounts Payable (if you click Toggle ledger from the initial panel). In each of these modes you should put up at least one code for each possible combination.

Accounts Receivable example

Accounts Payable example

Note: For the Accounts Payable, you do not need to set up more than two codes. This is because EU VAT Sales is never declared for purchases.

When a sales order is created, the system will automatically retrieve the correct code from this table, if the delivery is between two EU countries.

If the correct code is not found in this table (i.e. you did not set up all possible code combinations), the system will retrieve it according to the normal rules. For more information see DIS control file and Country/country VAT codes table.

Note: If the delivery on the sales order is not between two EU countries, the system will also retrieve the correct code according to the normal rules.

To exemplify, you should define one import code used for purchases from an EU country and one export code used for sales to an EU country.

Complete the following fields:

Code

Enter the identity for the import/export code.

Description

Enter a description of the code.

Eu statistics

Indicate if you want sales orders with this code to be INTRASTAT declared. All sales orders using this code will be updated in the EU statistics file (SROECF). Tip: You should define one export code with this field set to YES, and another export code with this field set to NO. The export code with NO is used for trade with customers not located in an EU country.

EU VAT sales report

Indicate if you want sales orders with this code to be included on the EU VAT sales report. Tip: You should define one export code with this field set to YES, and another export code with this field set to NO. The export code with NO is used for trade with customers not located in an EU country.

Click OK to update and return to the initial panel.

On the initial panel, click Toggle ledger to switch to Accounts Payable mode. Click Add and define a new import code for Accounts payable (purchase orders).

Code

Enter the identity for the import/export code.

Description

Enter a description of the code.

Eu statistics

Indicate if you want purchase orders with this code to be INTRASTAT declared. All purchase orders using this code will be updated in the EU statistics file (SROECF). Tip: You should define one import code with this field set to YES, and another import code with this field set to NO. The import code with NO is used for trade with suppliers not located in an EU country.

EU VAT sales report

This field has no relevance for Accounts Payable, since purchases are not declared on the EU VAT sales report.

• DIS control file
• Country/Country VAT table
• Item file, panel Country/Country VAT information

These codes are relevant for the EU VAt sales report functionality. They have no impact on the INTRASTAT declaration. You should define one VAT handling code used for sales to other EU countries and one code used for purchases from other EU countries.

Click Add and complete the following fields on the first detail panel:

VAT handling code

The code used for sales / purchases to other EU countries.

Description

The description of the VAT handling code.

Percentage

The percentage code that holds the percentage information, from Work with percentages, that is used for creating VAT calculation rules.

Complete the other applicable fields on this panel. (For more information about the fields, see About working with VAT.

Click Next to access the next panel and complete the followig relevant fields:

Goods transaction

Indicate if this VAT handling code concerns invoice amounts that are to be included in the EU VAT sales report as goods. Note: Since this field only applies for VAT handling codes used for sales orders, it has no relevance if you set this field to YES or NO if the VAT handling code should be used for purchase orders.

Service transaction

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

Complete the other mandatory fields and click OK to update.

• VAT handling codes to be used for calculating the different fees for a sales order.
• Default VAT handling codes on sales/purchase order line level to be defaulted during Order line entry.
• Default VAT import/export codes for sales and purchases.

Navigate to the Exchange rates and VAT handling codes panel. The following fields are associated with the Intrastat and EU VAT sales report:

Post VAT=0 BASE 0

Set this field to YES. If you set it NO, no VAT transactions with amount 0 (zero) will be updated in the VAT file (SROVAT).

Example:
You sell goods to a customer in an EU country. The invoice amount is 100 and the VAT amount is 0 (zero). On the EU VAT sales report this invoice amount (100) is printed. This is why VAT transactions with 0 (zero) must also update the VAT file.

VAT codes

The system searches for the VAT handling code for the order line when sales and purchase orders are entered in the following order:

• Item file, Country/country VAT information panel. If nothing found
• Work with country/country VAT. If nothing found
• DIS control file(this panel)

In the Default sales field, enter the most common used VAT handling code for sales orders. If it is most common to sell goods to customers in EU, enter a VAT handling code defined for EU sales.

In the Default purchase field, enter the most common used VAT handling code for purchase orders. If it is most common to buy goods from suppliers in EU, enter a VAT handling code defined for EU purchase.

Import/Export codes

The import/export codes are used to define if a sales order and a purchase order should be updated in the EU statistics file (SROECF). For sales order it is also used to define if the sales order should be included in the EU VAT sales report. See VAT handling code table.

The system searches for the import/export code for the order header when sales and purchase orders are entered in the following order:

• Work with country/country VAT. If nothing found
• DIS control file (this panel)

Note: On a sales order, the system first searches in the Import/Export codes and tries to find the applicable code. This only applies if the delivery is between two EU countries.

In the Default sales field, enter the most common used export code for sales orders. If it is most common to sell goods to customers in EU, enter an export code defined for EU sales.

In the Default purchase field, enter the most common used import code for purchase orders. If it is most common to buy goods from suppliers in EU, enter an import code defined for EU purchase.

Note: If you changed any information in this file, the changes will not come into effect until you start the company the next time. You can restart the company via the Change company to work with menu item and select the same company code.

Prerequisites
The countries for which you now are to define statistical procedures, must exist in the Work with countries file.

You have to define statistical procedures for all countries where your company has goods flow.

Example:
If your company is appointed to declare INTRASTAT in Belgium and Germany, you have to define statistical procedures for both those countries. If you both deliver and receive goods to those countries, you have to define two statistical procedures for Belgium (arrival and dispatch), as well as for Germany.

You connect the statistical procedure for sales and purchase orders in the Intrastat stat proc field in the Work with countries file.

Note: The statistical procedure is not printed on the ordinary INTRASTAT declaration. It is only printed on the INTRASTAT detail list.

Some countries use more than two statistical procedures in the same country. For sales and purchase orders created in DC1 Distribution, the statistical procedure will always be the ones you have defined in the Work with countries file. But when you enter manual A/P and A/R invoices in DC1 Financials, you can enter which statistical procedure to use.

When DC1 is installed, the system company is added to this table. Select the system country and click Change. On the detail panel, complete the following fields, which are of relevance when the EU reporting function is activated in your company:

ISO country code

Enter the country code according to ISO standard. The system checks that the VAT registration number prefix is the same as the code you enter in this field. See the VAT registration no field below.

EU member state

Indicate if this country is a member of EU.

EU country id

Enter the country code, according to EU regulations. The code is used in the INTRASTAT declaration and is often predefined by the local Customs and Excise Department in each country.

VAT registration no

If your company is registered in this country, enter your VAT registration number in this country. Note: If you are not registered in this country, but you have appointed a company (agent) to manage and account for your VAT in this country, enter your agent’s VAT registration number. See also the Agent VAT reg number field.

Branch id

In some countries an identification number, which consists of the VAT registration number and a special code (this field), must be printed on the INTRASTAT declaration. If this country requires a branch id, enter the id in this field. These id’s are predefined by the local Customs and Excise Department in each country.

VAT reporting curr

Enter the currency used for EU reporting in this country.

VAT exch rate level

Enter the exchange rate level you want to use when you report EU VAT sales and INTRASTAT for this country.

VAT exch rate period

Enter the exchange rate period you want to use when you report EU VAT sales and INTRASTAT for this country.

Click OK.

On the second detail panel, complete the following fields:

Contact person

Enter the contact person responsible for INTRASTAT reporting. This name is printed on the INTRASTAT declaration.

Agent VAT reg number

This field is used when your company uses a reporting agent company to fulfil your reporting obligations to the authorities in this country. If your company has such an agent in this country, enter the agent’s VAT registration number in this field.

Note: This is a reporting agent, which is not the same as if you have appointed a company to account for your VAT in this country. If such is the case, the VAT registration number of that company is regarded as your VAT registration number in this country. The VAT registration number should then be entered in the VAT registration no on the previous panel.

Agent branch id

If you entered a VAT registration number in the Agent VAT reg number field on this panel, it may be necessary to enter a branch identification in this field. In some countries an identification number, which consists of the VAT registration number and a special code (this field), must be printed on the INTRASTAT declaration. If this country requires a branch id, enter the id in this field. These id’s are predefined by the local Customs and Excise Department in each country.

Program EU VAT rep

Enter the name of the program that prints the EU VAT sales report for this country. In the DC1 standard system, the program name is FSC622.

Program intrastat

Enter the name of the program that prints the INTRASTAT declaration for this country. In the DC1 standard system, the program name is FSC632.

Date last EU VAT rep

Displays the date when the EU VAT sales report was last printed. If you, for example, have printed a final EU VAT sales report (a quarterly) for quarter 1, the date displayed is 31 of March, since this is the end date in quarter 1.

Intrastat department

In some countries, for example France and Germany, the department (which could be a region in a country) where the goods are shipped from or received to must be printed on the INTRASTAT declaration.

Set the Mandatory field to YES if this country must declare department.

Also enter the most common used department for arrivals and dispatches in the Default arrival and Default dispatch fields.

In the Work with warehouses file you can define a department for each warehouse in this country. See Work with warehouses.

If you add a new country in this table and you have not defined the departments, you have to set the Mandatory field to NO. Then you have to define the different departments you want to use in the Work with departments file (see Department table). Finally you have to return to this panel and change the Mandatory field to YES and also enter the default departments.

Note: When you add departments, you always have to define to which country the department belongs. That is why you have to add the country in this Work with countries file first first and then add the departments in the Work with departments file.

Intrastat stat proc

The system uses the following information to default the statistical procedures of the INTRASTAT declaration. The statistical procedure defines if the order line is an arrival or a dispatch. The applicable statistical procedures must already exist in the Statistical procedures table. See Statistical procedures table.

Note: The statistical procedure is not printed on the ordinary INTRASTAT declaration. It is only printed on the INTRASTAT detail list.

Enter the default statistical procedure of this country for purchase orders in the Default arrival field. All purchase orders will receive this statistical procedure.

Enter the default statistical procedure of this country for sales orders in the Default dispatch field. All sales orders will receive this statistical procedure.

Note: You cannot change the statistical procedure in the sales and purchase order maintenance routines.

Note: If your company is not appointed to declare INTRASTAT in a country where department declaration is required, you do not need to enter any information in this table.

Prerequisites
If your company is appointed to declare INTRASTAT in a country where departments have to be defined, the Intrastat department, Mandatory field has to be set to YES in the Work with countries file for that country.

Note: You can define departments in this table even though the above described field is set to NO.

When you have defined the different departments, you connect them to a warehouse in the Work with warehouses file. See Work with warehouses.

You should define all valid nature of transactions for your country. These codes are established by the local Customs and Excise Department in each country and are printed on the INTRASTAT declaration.

When you enter a sales and a purchase order for a customer/supplier located in an EU country, you must enter a nature of transaction code for each order line.

Note: If your company sends goods from a warehouse located in another EU country than the system country, it may be necessary for your company to declare INTRASTAT to the authorities in the country from where the goods were sent. If this is the case, you also have to define the valid nature of transaction codes for that country.

(In the Work with nature of transaction defaults file you can define default values for each order type in the system. See Nature of transaction defaults table).

Complete the following fields for all required nature of transactions:

Country

Enter in which country this nature of transaction is valid. The nature of transaction codes may differ from one country to another and therefore this code must be established on country level. Note: This is the country from where the goods are sent to the customer.

Example:

• If your company resides in Great Britain and you send the goods to the customer from this country, enter the country code for Great Britain.
• If your company resides in Great Britain but you have a warehouse in Sweden from where the goods are sent, enter the country code for Sweden.

Nature of trans

Enter the nature of transaction code valid for the above entered country.

Description

Enter a description of the code.

• Work with sales order types
• Work with purchase order types
• Work with nature of transactions

This table can be loaded with default nature of transaction codes, per country and sales and/or purchase order type, to avoid having to enter them on every order line when you enter sales and purchase orders.

The port codes are predefined by the local Customs and Excise Department in each country.

Note: In some countries declaration must also be done for inland airports, i.e. you have to define the inland airports in this program.

In the Work with manners of transport file you must define which manner of transport codes requires port of arrival/dispatch. To be able to enter a port on an order line, you must use one of those manner of transport codes. See Manner of transport table.

Prerequisites
The countries for which you now are to define ports must exist in the Work with countries file.

Note: Trader country is the country where your company has to declare INTRASTAT. For example, if your company has a warehouse in another country where you have to declare INTRASTAT to the authorities in that country.

The INTRASTAT administration allows you, for practical reasons, to calculate the statistical value based on certain percentages (plus or minus) and the terms of deliveries.

In this table you define the different percentages (ancillary costs) for a certain terms of delivery code. The calculated ancillary cost will be added or deducted from the invoice value and updated in the EU statistic file.

Prerequisites
The countries, between which the goods are shipped, must exist in the Work with countries file. In addition, the terms of delivery codes must exist in the Work with terms of deliveries file.

Commodity code

Enter the commodity code.

Reporting unit

For some commodity codes the quantity of the shipment must be declared in a special reporting unit, which is not the same as the sales/purchase unit. These codes are predefined by the local Customs and Excise Department in each country.

Enter the special reporting unit if this commodity code must be declared in a special reporting unit. The system will display the Unit conversion panel when you click OK. See below. Note: The reporting unit must exist in Work with units file.

If this commodity code does not have to be declared in a special reporting unit, leave the field blank.

Note: This field is not used to convert normal sales and purchase units to one unit. For normal commodity codes the unit is never printed on the INTRASTAT declaration. It is the net weight and the statistical value that is printed.

Number of decimals

If you entered a unit in the Reporting unit field, enter the number of decimals for the reporting unit.

Description

Enter a description of this commodity code. This description is printed on the INTRASTAT declaration. Note: If your company declares INTRASTAT in another country, you can enter the description of the commodity code in the language of that country. Click Translate on this panel.

Click OK to update.

If you entered a unit in the Reporting unit field, you access Unit conversion. Click Add to add information about the reporting unit.
On the Unit conversion detail panel, complete the following fields:

Unit

Enter the unit you want to convert to the reporting unit. This is the sales or purchase unit on order lines.

Conversion factor

Enter a conversion factor between the sales/purchase unit and the reporting unit.

Example:
The reporting unit is LITRE but the sales unit on a sales order is BOTTL. One bottle holds 0,75 litre, i.e. the conversion factor in this table is 0,75.

The quantity on the sales order line is 10 bottles. One bottle weighs 1 kilo.

On the INTRASTAT declaration printout, the Net mass (kg) field displays 10 and the Oth qty field displays 7,5.

For the purpose of this example, the figures are:
Net mass (kg): 10 * 1 = 10
Oth qty: 10 * 0,75 = 7,5

Note: You have to define all units used for sales and purchases for this item.

Click OK to update. Repeat for all required units then exit the routine.

• Business partner file
• Border value table
• Sales and Purchase order maintenance

Note: If you do not enter a TOD (EU) code, the code entered in the Terms of delivery field will be printed on the INTRASTAT declaration.

In this program you also define if a manner of transport requires that a port be entered on the order line. See Port table.

Complete the following fields:

Manner of transport

Enter the manner of transport code. This code does not to need to conform with the codes defined by the local Custom and Excise Department.

Description

Enter a description of the manner of transport. The description is not printed on the INTRASTAT declaration.

MOT (EU)

Enter the EU code for this manner of transport. These codes are predefined in the local Customs and Excise Department in the country where this manner of transport is valid. Note: If you do not complete this field, the code entered in the Manner of transport field on this panel is printed on the INTRASTAT declaration.

Port mandatory

Indicate if this manner of transport requires that a port of arrival/dispatch be entered on sales and purchase order lines.

In some countries the inland airports must also be declared in the INTRASTAT declaration. If this is the case, you must set this field to YES and define the internal airports in the Work with ports file.

Note: When you enter manual invoices in DC1 Financials, you can also enter a manner of transport code.

Click OK to update. Repeat for all required manner of transport codes.

• Work with countries
• Work with departments. Note: Only applicable if the warehouse is located in a country where departments must be declared on the INTRASTAT declaration.
• Work with ports. Note: Only applicable if the warehouse is located in a country where port of arrival/dispatch must be declared on the INTRASTAT declaration.

Direct BtB orders
If you sell goods to a customer and your supplier delivers the goods directly to your customer (BtB direct order), you have to set up one warehouse code for each country where the suppliers are located.

Example:
System country is Great Britain.
The company only has one warehouse, which is located in Great Britain.
The company sells goods to a customer located in Germany, but the goods are delivered directly from the supplier’s warehouse to the customer. The supplier’s warehouse is located in France.

In this case you have to set up a warehouse in this table defined with country France. This warehouse will only be fictitious. When entering a BtB direct sales order, this French warehouse should be entered on the sales order line. This is because the system will handle this BtB sales order as a three-party sale which is required to be declared on the EU VAT sales report. For more information see Handle 3-party sales.

Complete the following relevant fields:

Country

Enter in which country this warehouse is located.

Department

This field must be completed if the country you entered in the Country field on this panel requires that department is declared on the INTRASTAT. If such is the case, enter in which department this warehouse is located. See Department table.

Port of arr/dispatch

This field must be completed if the country you entered in the Country field on this panel requires that port of arrival/dispatch is declared on the INTRASTAT. If such is the case, enter which port of arrival/dispatch this warehouse uses. See Port table.

• VAT handling codes
• Import/export codes

The system uses this table to find the correct VAT handling code on sales and purchase order lines. It is also used to find the export code for sales orders and the import code for purchase orders.

Vat handling code
The VAT handling code controls if the sales order line should be included on the EU VAT sales report.

Import/export code
The import/export code controls if the purchase and sales order should be included on the INTRASTAT declaration. The export code also controls if the sales order should be included on the EU VAT sales report.
Retrieval of codes
The system searches in the following order to find a VAT handling code for the sales and purchase order line:

• Item file, Country/Country VAT information panel. If nothing found
• This program. If nothing found
• DIS control file

The system searches in the following order to find an import/export code for the purchase and sales order:

• This program. If nothing found
• DIS control file

Note: On a sales order, the system first searches in the Import/Export codes file to find the applicable code. This only applies if the delivery is between two EU countries.

The following fields are relevant:

From country

Enter the country from which goods are delivered.

To country

Enter the country to which goods are delivered.

Default VAT free

If you enter a sales order where the VAT based field on the sales order header is set to NO, this VAT handling code will be retrieved to the sales order lines. Note: This only applies for items where the VAT free sales code field in the Item file, Country/country VAT information panel, is blank for this from/to country.

If you enter a purchase order where the VAT based field on the purchase order line is set to NO, this VAT handling code will be retrieved to the purchase order line. Note: This only applies for items where the VAT free purch code field in the Item file, Country/country VAT information panel, is blank for this from/to country.

If you leave this field blank, the system will retrieve the VAT handling code for VAT free order lines from the Default VAT free field in DIS control file.

Default item sales

Enter the VAT handling code. See VAT handling code table.

Default item purch

Enter the VAT handling code. See VAT handling code table

Dflt I/E code sales

Enter the Import/export code. See VAT Import/Export code table.

Dflt I/E code purch

Enter the Import/export code. See VAT Import/Export code table.

The following panels contain information associated with the Intrastat and EU VAT sales report functionality:

• Basic data
• Address file
• A/R Basic data
• BP/Country VAT registration
• A/R VAT/Intrastat defaults (customers)
• A/P VAT/Intrastat defaults (suppliers)

• Basic data
• Units
• Purchase prices
• Sales prices
• Country/country VAT information