Documentation > MAC-PAC Reference Library > Reference > Common Features > Key Concepts and Procedures > VAT Processing > ESL/SSD Management

ESL/SSD Management

 

 

The extraction and management of ESL/SSD transactions can be processed through the ESL/SSD Extract Selection and SSD Transaction Maintenance conversations.  From the ESL/SSD Extract Selection Request screen, you will be able to perform the following:

·     You can separate the extraction from the report in order to correct errors or reprint the report.

·     You will be able to request the report by company/location for a specific fiscal period; to only list acquisitions or dispatches; and to specify an outqueue.

·     A request for final reporting for a specific period will prevent you from making any changes in the period.

·     You will be able to include Transfer Order receipts and shipments.

Transfer order receipts and shipments will be printed on the SSD and open items created from transfer orders will be printed on the ESL only if an invoice is created when a transfer order is shipped.  An invoice flag will be defaulted to the header screens of both Transfer Order Maintenance and Transfer Order Shipping so you have the option of creating an invoice for the transfer order.  The invoice must be a consolidated invoice, and the customer’s VAT type must be exonerated and the home/export flag must be set to ‘H’ identifying a home customer.  When the invoice is created for a transfer order shipment, the Customer Order Shipment/Returns File will be formatted with the necessary data and accounting transactions will be written to the A/R Accounting Transaction File.  When the invoice is received, the Purchase Order Receipts Audit Trail File will be formatted with the transfer order data.  The Statistical Extract/Report program will process these inventory movements on the SSD report.  Open items will be printed on the ESL report.  For more information about transfer order invoice processing, refer to the Transfer Order Invoicing and Transfer Order Shipping key concepts and procedures in the Transfer Control User Manual.

If a report is requested, one of three different report modes must be specified.  The Draft ESL or SSD report prints all transaction errors, allowing you to correct them before requesting the Final report.  The Reprint ESL or SSD report can be requested for any period that still exists on the ESL/SSD Files.  The ESL or SSD Final report can be requested for a specific company/location and period.  This mode updates the corresponding last period that is posted on Reference File category M08.  If any transactions contain critical errors, the final post will not be completed and a message will be sent to the requestor.  You should correct any errors through the SSD Transaction Maintenance conversation before resubmitting the Final report.

This section will discuss the following ESL/SSD management processes:

ESL and SSD Reporting

The ESL/SSD reports will be separated from the extraction request in order to be more easily localized.  Although the report layout and media for each country are different, the standard version of MAC-PAC will only provide one set of standard reports.

Extraction Processing

At the extraction processing line, the formatting of fields such as nature of transaction, fiscal regimes, etc. will be done based on parameters because some data is not common to all EC countries.  The extraction is performed through the Inventory Control Audit Trails.  The ESL and SSD Transaction Files will carry the information needed by all countries.

SSD Transaction Maintenance

This conversation allows you to modify all SSD transactions previously extracted by the ESL/SSD Batch Processing.  Transactions will be displayed based on the range of criteria you select on the Function Select screen.

ESL and SSD Reporting

In general, two reports are used to record transactions between members of the European Community:

·     European Community Sales List (ESL).  Produced quarterly, this report provides an aggregate sales list by customer and country.  The report includes only information about goods exported to other European Communities for which an invoice is produced.  The value of the transaction reflects freight and insurance charges. 

The format and fields to be contained in the ESL report vary from country to country.  Information typically required to produce the report is stored in file CF650AP1.  The ESL report (CF650A), requested at extraction time, and CF555A, when an ESL report request has been made, in the system lists the information contained in that file.  To meet government reporting requirements, you will need to modify the ESL report produced by the system or create another report using the extracted data.

In order for transactions to be extracted for this report, certain conditions must exist.  Refer to the Extraction Processing section in this key concept for more information.

·     Supplementary Sales Declaration (SSD or Intrastat).  Produced monthly, this report lists inventory movements across borders between EC member countries. Inventory is categorized by the EC's standard commodity codes (the EC commodity code for each item is stored on the Part Master File).  The commodity code will be required on the report as well as the VAT registration number.

Note:  In most EC countries, the common name given to this report is INTRASTAT.  For MAC-PAC standards, we have called it the SSD report.

There are two types of SSD reports:  Acquisitions and Dispatches.  An acquisition is a receipt of goods or services from an EC country.  Acquisitions are taxable in the country of arrival and the VAT registration must be at the company/warehouse level.  If an acquisition is returned, it will be considered a dispatch.  A dispatch is an export of goods to other EC countries.  The level of detail of the declaration is based on the volume of sales from the past year in most of the EC countries.  Both acquisitions and dispatches will have extraction conditions which must be met before either one is extracted.  Refer to the Extraction Processing section in this key concept for more information.

Specifying that ESL/SSD Reporting Is Used

To use the ESL and SSD extract information, you must set the Use ESL/SSD flag on Reference File category 133 to Yes.  This flag ensures that transactions used for ESL/SSD reporting are not purged unless they have been extracted.  You cannot change this flag (or any other data on category 133) after installation.

Extracting Information for the Reports

The information for the ESL and SSD reports is extracted from files that contain information about sales order shipments, sales order returns, ,purchase order receipts, invoiced transfer order shipments, invoiced transfer order receipts, and Accounts Receivable invoices.

SSD Extraction

In order for an acquisition to be extracted, the following conditions must be met:

·      The country code of the vendor must be an EC country.

·      The country code of the receiving co/whs must be an EC country.

·      The country code of the vendor should be different from the country code of the receiving co/whs.

·      The transaction quantity in the stockkeeping unit must be different from zero.

·      The order must not be a direct ship.

In order for a dispatch to be extracted, the following conditions must be met:

·     The country code of the Ship-to address must exist and must be an EC country.

·     The country code of the Sourcing country must exist and must be an EC country.

·     The country code of the Ship-to should be different from the country code of Sourcing country.

·     Direct shipments and movements with zero quantity are omitted.

·     Transactions for freight are omitted since no inventory movement has occurred.

The format and fields to be contained in the SSD report vary from country to country.  It will be the responsibility of each country to determine whether or not they are required to send this report to tax authorities.  Information typically required to produce the report is stored in file CF650AP2.  The following section gives detailed information about the fields that are formatted on the CF650AP2 file for both acquisitions and dispatches.

Formatting of the Supplementary Sales Statistics Data File (CF650AP2)

The following fields will be formatted on the Supplementary Sales Statistics Data File for both acquisitions and dispatches.  Field definitions may differ depending on whether the field is being defined for an acquisition or dispatch.

Transaction Company/Location/Site

For acquisitions, this is the receiving company/location/site.

For dispatches, this is the sourcing/supplying company/location/site.

Transaction Date/Period

For acquisition, this is the reference period entered on the request screen.  All Purchase Orders and Transfer Control receipts meeting extraction criteria and with a transaction date falling in that period will be selected for extract and/or reporting.

For dispatches, this is the reference period entered on the request screen.  All shipments meeting extraction criteria with a transaction date falling in that period will be selected for extraction and/or reporting.

Nature of transaction

This data is common to all EC countries.  The nature identifies the type of contract and gives economical information on received goods.

For acquisitions, purchase order receipts and transfer order receipts will be extracted as follow:

      Purchase Order Receipts

In the SSD extract process, the hierarchy to retrieve the nature of acquisition of the SSD PO Receipt transaction is as follows:

1)   Retrieve the nature from the ESL/SSD PO Types Defaults category keyed by type of purchase order.  It is also based on the adjustment code and the transaction value.

      If the adjustment code is blank and the transaction value is different from zero, the normal nature will be retrieved.

      If the adjustment code is 'R' - Reject or 'O' - Overreceipt, the return nature will be retrieved.

      If the transaction value is zero, the gift, sample, and prize nature will be returned.

      This is intended to cover most of the cases.

      For specific values, you may change transaction natures by using the SSD Transaction Maintenance.

2)   If no value is found on the ESL/SSD PO Types Defaults category, transaction natures will default from the Co/Whs ESL/SSD Defaults category with the same logic as in point 1):  If the adjustment code is blank and the transaction value is different from zero, the normal nature will be retrieved.  If the adjustment code is 'R', the return nature will be retrieved.

      If the transaction value is zero, the gift, sample, and prize nature will be retrieved.

3)   If no value is found on this category, the SSD PO Receipt transaction will be listed as an 'In error transaction' on the SSD Transaction Maintenance conversation.

      Transfer Order Receipts

1)   Transaction natures will default from the Co Whs ESL/SSD Defaults category.

      If the adjustment code is blank and the transaction value is different from zero, the normal nature will be retrieved.

      If the adjustment code is 'R', the return nature will be retrieved.

      If the transaction value is zero, the gift, sample, and Prize nature will be retrieved.

2)   If no value is found on this category, the SSD TC receipt transaction will be listed as an 'In error transaction' on the SSD transaction Maintenance conversation. 

For dispatches, the nature of transaction will be retrieved from the Sourcing/Supplying Company/Warehouse ESL/SSD Default Values category similar to acquisitions.

The second character of the nature of transaction is not requested in all countries.  In this case, it may be equal to zero.

For example, valid values for Acquisitions and Dispatches may be:

 

Types	Return	Gift, Sample, Prize	Normal
For acquisitions:
PO Type of B & S	20 (one position used) 21 (two positions used)	30 (one position used) 31 (two positions used)	10 (one position used) 11 (two positions used)
PO Type of Phantom	20 (one position used) 21 (two positions used)		50 (one position used) 51 (two positions used)
Transfer Control Receipt			10 (one position used) 11 (two positions used)
For dispatches:
Sales Order or Shipments from Synchro or Transfer Control	20 (one position used) 21 (two positions used)	30 (one position used) 31 (two positions used)	10 (one position used) 11 (two positions used)

Nature of Transaction Valid Values

 

The nature of transaction will be changeable on the SSD Transactions Maintenance conversation.

For dispatches, the nature of transaction, in case of transaction creation, will default from the Co/Whs ESL/SSD Default category.

Flow

For acquisitions, the value will be 'A'.  A return for reject or overreceipt will be considered as a dispatch and in this case, this field is set to 'D' but quantity and amounts will be positive.  No negative value is allowed on Intrastat report.

For dispatches, the value will be 'D'.  A return (Adjustment type of 'R' on category 432) will be considered as an acquisition and in this case, this field is set to 'A'.

References

For acquisitions, the current reference field will carry the same information as now (TC or PO Receipt Number).  But for purpose of traceability and visibility, some countries wish to keep track of the receipt number, the receipt line, the order number, the order line and the vendor separately.  These fields will be added in the Supplementary Sales Statistic Data file.  In case of a transfer order, the vendor is the supplying company/warehouse.

For dispatches, the current reference field will carry the same information as now.  But, for purpose of traceability and visibility, some countries wish to keep track of the order number, release number, line number, document type, document number, document line, and customer, separately.  These fields will be added in the Supplementary Sales Statistic Data file.

Part Number and Type

The part number and its type are kept to be able to retrieve and print the description of goods.

Commodity Code

The eight first digits are common to all member states. For one or more product groups, the member states may provide additional subdivisions, which is the purpose of the nine digits.  The commodity code is validated against Reference File category M06.  All the movements with an invalid or blank commodity code will appear in error on the ESL/SSD Records Maintenance conversation.  Transactions with an invalid commodity code prevent users to print a final report because those transactions would be rejected by statistical authorities anyway.

Unit weight

The unit weight may be used to calculate the net mass expressed in kilograms.

Supplementary unit of measure

This unit of measure is requested for detailed declarations.

Delivery terms or FOB code

FOB codes will be 4-characters long on the Supplementary Sales Statistics Data File.  The first subdivision of the FOB code (3 first digits) specifies the point at which the title passes for shipped merchandises.  These codes were defined by the International Chamber of Commerce as follows:

EXW           Ex-works

FCA            Franco carrier

FAS            Free alongside ship

FOB           Free on board

CFR            Cost and freight (C&F)

CIF             Cost, insurance, freight

CPT            Carriage paid to

CIP             Carriage and insurance paid to

DAF           Delivered at frontier

DES           Delivered ex-ship

DEQ           Delivered ex-quay

DDU           Delivered duty unpaid

DDP           Delivered duty paid

The second subdivision corresponds to countries mentioned on the transportation contract.

1 - Place located in the territory of the member state concerned.

2 - Place located in another member state.

3 - Other (Place outside the community).

Reference File categories 225, used for purchase order receipts, and 419, used for transfer control receipts shipments, as well as OP and GA shipments, carry the EC FOB codes and the country stated on the transport contract.

Ship Via

The Shipping Instructions on category 319 (for OP and GA shipments) and on category 227 (for TC shipments and PO receipts) will be modified to carry the corresponding community medium of transport and the port of uploading/downloading, in case countries need them to be printed on INTRASTAT reports.

The mean of transportation used to carry goods to their final destination.  Valid values are:

      1 - Transport by sea

      2 - Transport by rail

      3 - Transport by road

      4 - Transport by air

      5 - Consignments by post

      7 - Fixed transport installations

      8 - Transport by inland waterway

      9 - Own propulsion

Transaction Value in Bookkeeping Currency or Invoiced Amount

Transaction value (or fiscal value) calculation will be done the same way as it is currently done. Invoiced amounts will not be taken into account in case of invoice matching.  Costs of freight or insurance will not be prorated.  The transaction value is the quantity received multiplied by the PO or TC unit cost  at receiving time, rounded, and without decimals if the bookkeeping currency requests it.

Statistical Value in Bookkeeping Currency

Acquisitions:

The statistical value is established, on arrival, on the basis of the taxable amount to be determined for tax purposes (amended version of the sixth VAT directive), minus, however, taxes due because of the release for home use and transport and insurance costs relating to that part of the journey which takes place in the statistical territory of the member state of arrival.  The corrective rate is intended to take care of that (see calculation of corrective rate below). 

It should be noted that, with the exception of VAT itself, taxes, duties, levies, and dues, etc. are included in the taxable amount and must, therefore, also be included in the statistical value.

“In case of goods derived from processing, the statistical value is established, on arrival, as if the goods had been wholly manufactured in the Member State of processing"  according to the Official Journal of the European Community.

The calculation for PO receipts will be as follows: 

      In case of a non phantom and non free item, the PO unit cost from the PO line is converted in SKU and multiplied by the received quantity.

      If the PO currency is different from the location's currency, it is converted to the location's currency.

      To convert, currency rates given by National Banks will be used instead of using rates at VAT eligibility dates which is not possible to correctly handle with MAC-PAC.

      A corrective acquisition rate is then applied to the calculated amount.

      The corrective acquisition rate will be retrieved according to the following hierarchy:

      a) Retrieve it from Reference File category M06, keyed by commodity code

      b) If not found, retrieve it from Reference File category M06 with a blank commodity code

      c) If not found, retrieve it from Reference File category 227, Shipping Instructions.

By the law, the acquisition rate can be a lump sum based on categories integrating parameters such as transport mean , nature of the goods, country of origin, etc.

      - In case of a phantom or free item, the statistical value will be equal to the quantity of transaction multiplied by the total accounting standard unit cost.

      - The statistical value is rounded and without decimals if needed.

The calculation for TC receipts will be as follows:

      The TC unit cost  multiplied by the received quantity, converted in the bookkeeping currency of the receiving Company/warehouse, if needed, using currency rates given by National Banks.  The corrective acquisition rate is then applied to the calculated amount in the same method as it was done for PO receipts.

Dispatches:

The statistical value is established, on dispatch, on the basis of the taxable amount to be determined for  tax purposes (amended version of the sixth directive), minus however taxes deductible because of the dispatch.  This amount will include transport and insurance costs relating to that part of the journey which takes place on the statistical territory of the member state of dispatch.  It should be noted that, with the exception of VAT itself, taxes, duties, levies, and dues, etc. are included in the taxable amount and must therefore also be included in the statistical value.

“In case of goods derived from processing, the statistical value is established, on dispatch, as if the goods had been wholly manufactured in the Member State of processing” according to the Official Journal of the European Community.

The calculation taken will be: 

      In case of free product, the statistical value will be equal to the quantity of transaction in SKU multiplied by the total accounting cost of the part retrieved from the Part Master file.

      In case of non free product, the statistical value will be equal to the quantity shipped multiplied by the unit price in original currency converted into the bookkeeping currency of the sourcing location.  A corrective statistical rate will be applied to that amount.

By the law, the statistical rate can be a lump sum based on categories integrating parameters such as transport mean, nature of the goods, country of origin, etc.

The corrective dispatch rate would be retrieved according to the following hierarchy:

      a) Retrieve it from Reference File category M06, keyed by commodity code

      b) If not found, retrieve it from Reference File category M06 with a blank

          commodity code

      c) If not found, retrieve it from Reference File category 319.  This does not apply to Transfer Order

          shipments since shipment terms are unique for transfer orders.

Vat Registration Number

For acquisitions, the VAT registration number of the receiving company/warehouse.

For dispatches, the VAT registration number corresponding to the relationship Bill-to customer/Ship to country code in the normal case.  In case of triangulation and simplification directive, it will be the one of the Bill-to in his own country. 

Country of Acquisition/Dispatch

For acquisitions, the EC country code is retrieved from Reference File category 007 keyed by the vendor's country code for purchase order receipts or the supplying company/warehouse's country code for transfer order receipts.

For dispatches, the EC country code is retrieved from Reference File category 007 keyed by the Ship-to country code.

Country of origin

For acquisitions, it has the same value as the Country of Acquisition.

For dispatches, the EC country code is retrieved from Reference File category 007 keyed by the sourcing/supplying company/warehouse’s country code.

The following four fields on the file are not used by EC countries:

      Port of Arrival/Dispatch

      Region of Arrival/Dispatch

      Port of Transshipment

      Statistical procedure

Print/extract Flag

This flag is set to No.

The following fields are requested by some countries:

Currency Code

For acquisitions, this is the currency code specified on the Purchase Order Header file or the customer location in case of transfer orders.

For dispatches, this is the currency code specified on The Open Item Distribution file or the Pending Invoice Distribution file.

Currency rate given by the National Bank

This rate is retrieved from Reference File category M07 keyed by company, location, currency code, year, month.

Currency Operand Corresponding to the Above Currency Rate

This currency operand is retrieved from Reference File category M07 keyed by company, location, currency code, year, and month.

Fiscal Regime

For acquisitions, this field is not required in all EC countries.  It specifies the taxable mode.  Valid values are country specific but depend on the combination of the type of order:

PO -  (The type of the line determines the fiscal regime; Reference File category M05, keyed by the type of PO line, will contain valid fiscal regime for purchase orders).

TC  - (The fiscal regime for acquisitions will be retrieved from the company/warehouse ESL/SSD default values category).

Fiscal regimes will be changeable on the SSD Transactions conversation.  They will be checked against Reference File category M03 containing all valid fiscal regimes.

For dispatches, this field is required by some EC countries.  It specifies the taxable mode.  Valid values are country specific but depend on the combination of the transaction code and the adjustment code.  Fiscal Regimes will be contained on Reference File category 432, Adjustment codes for Order Processing, Synchro, and Transfer Control shipments.  If the fiscal regime is not found on category 432, fiscal regimes will then default from the sourcing company/warehouse ESL/SSD Default Values category.

Acquisition/Dispatch Province

For acquisitions, this is the province code of the receiving warehouse retrieved from the warehouse description.

For dispatches, this is the province code the sourcing warehouse retrieved from the warehouse description.

Return Transaction

It equals the adjustment type attached to the adjustment code.

Reports and Purge

The SSD reports (CF650B or CF556A) in the system list the information contained in this file.  To meet your government reporting requirements, you will need to modify SSD reports produced by the system or create another report using the extracted data.  In some EC countries, it is required that you keep up to six years of ESL/SSD data which can tend to be very voluminous. A purge capability with a cut-off date will be added on the File System menu.

ESL Extraction

In order to perform extractions on ESL transactions, any records not previously extracted will be selected from the Open Item File which is where the extraction is run off of.  To be selected, an open item must meet the following conditions:

·     The country code of the selling country must exist and must be an EC country.
·     The country code of the ship-to must exist and must be an EC country.
·     The country code of the Ship-to country should be different from the country
      code of Selling country.
·     The Bill-to customer should be VAT registered in the Ship-to country.
·     The include on ESL flag must be equal to ‘Y’.

This information will be stored on the EC Sales Statistics Data file, CF650AP1.

Formatting of the EC Sales Statistics Data File (CF650AP1)

The following fields will be formatted on the EC Sales Statistics Data file for ESL transactions.

Company/Location/Warehouse

This field is the selling company/location/warehouse.

VAT registration Number of the Customer

This field is the Vat registration number of the Bill-to's customer in the Ship-to country or in his own country in case of triangulation and simplification directive application.

Country Code of Destination

This field represents the EC country code of the Ship-to customer.

Transaction Value in Bookkeeping Currency

This field is the sum of the sales amount and other charges.  (Other charges include reference parts and freight charges)

Transaction Date

This field represents the document date.

Process Indicator

This indicator is set to No.

Print/Extract Flag

This indicator is set to No.

Date Printed/Extracted

This date is set to zeros.

Creation Date/Time/Operator/Workstation

These are job attributes.

ESL Category

The ESL category carried on the open item.

Customer Number

This field represents the Bill-to customer.

Transaction Date Quarter

This field represents the quarter in which the document date falls.

Transaction Date Year

This field represents the year of the document date.

Include on ESL

If ESL/SSD processing is used, you will be able to specify whether to include or exclude sales order shipping transactions on the ESL report.  In addition, for information purposes, an ESL Category field can also be entered on the sales order shipping transaction header.  The ESL Category field allows you to distinguish between four types of ESL transactions:

·     Intracommunity dispatches other than those done to perform a service.

·     Intracommunity dispatches in order to perform a service.

·     Intracommunity dispatches from your home EC country to another EC country in order to undergo a service.

·     Triangulation dispatches.