Payment Time VAT Review Management (AR, OP, GA)

In order to meet Italian fiscal requirements, a fiscal sector must be assigned when recording a document and a fiscal number must be assigned when a payment is made for a VAT declaration type of 2 (VAT declared at payment time).  Whenever you sell either goods or services to government or public companies, you will be able to isolate invoices and associated payments by use in specific sectors.

Accounts Receivable

Within Accounts Receivable, when a document is created either through Invoice and DR/CR Memo Entry or by the Batch Open Item Entry, a dedicated sector must be assigned for fiscally numbering the open item.  This applies only if the open item company/location has a record defined on Reference File category M12, External Numbering Program.  If a record exists for the company/location and the Payment VAT Review flag is set to 'Y' and the program name is filled in, the document type entered will be validated against the Sector field on Reference File category 329 and must also be defined on Reference File category M19.  The sector type on Reference File category M19 must be set for payment time VAT review management (1).

When payment is applied to the open item, either through Payment Entry and Application or Batch Payment Post, and a record exists on Reference File category M12 for the open item company/location with the Payment VAT Review flag set to 'Y', the payment application needs to be fiscally numbered, using a dedicated sector.  The sector will be assigned according to the open item sector defined on Reference File category 329.  The sector assigned to a payment applied to an open item with VAT declaration point 2, must have sector type 1.  The fiscal number will be assigned by calling the external program defined on Reference File category M12 for the company/location.  The fiscal number will be formatted in the Fiscal Document Number field on the Accounting Transactions file.  This number will only be assigned if you press F22 for confirming the application, so that no fiscal numbers will be lost if you press F13 to cancel out of the transaction.

If the Payment Time VAT Review flag has been set to 'Y', the open item amount paid by the payment application must be formatted on the Taxable Amount field if the open item distribution amount is equal to zero.  Otherwise, it should be formatted in the Non-taxable Amount fields.  In addition, the taxpayer ID must be formatted on the Accounting Transactions file, using the value defined for the customer on the Customer Master file.

If Payment Time VAT Review management is activated, write-off (type 3) and draft payment types (type 4) will not be allowed during open item entry and payment application.

Order Processing

Within Order Processing, when a document is created either through the Shipping/Billing, the Postbilling, or the Consolidated Billing conversation, a dedicated sector must be assigned for fiscally numbering the open item.  This applies only if the open item company/location has a record defined on Reference File category M12, External Numbering Program.  If a record exists for the company/location and the Payment VAT Review flag is set to 'Y', the document type entered is validated to have a valid sector on Reference File category 329 and must also be defined on Reference File category M19.  The sector type on Reference File category M19 must be set for payment time VAT review management (1).

In addition, payment terms and installments must be validated so that they are not associated with a draft payment type (type 4). 

Synchro

Within Synchro, the Blanket Order Maintenance conversation allows you to specify payment terms, a payment type, and document type which will be defaulted when the invoice is created for the blanket order related customer.  If a record exists for the company/location where the contract was signed on Reference File category M12 and the Payment VAT Review flag is set to 'Y', the document type will be validated on Reference File category 329 and must also be defined on Reference File category M19.  The sector type on Reference File category M19 must be set for payment time VAT review management (1).

In addition, payment terms and installments must be validated so that they are not associated with a draft payment type (type 4).

Draft Management

Within Draft Management, a payment type of draft (type 4) should be inhibited during Automatic Draft Generation or Consolidated Draft Selection in order to avoid draft generation for payment time VAT review transactions.  If a record has been defined on Reference File category M12 for the company/location, the payment type cannot be a draft (4) and the payment terms cannot be related to a default payment type 4 or to installments having payment type 4.

The control on Reference File category M12 allows other countries, not using payment time VAT review management, to be able to use the standard software features.