VAT declaration
Use this process to generate two preparatory reports for the VAT declaration that include analysis by tax code for the VAT payable and the VAT debit with details by matching group for VAT on payments (if this is managed) and by entry for the VAT on debits.
The VAT management that loads this process requires a rigorous setup as indicated in the prerequisites.
The only entry lines taken into account for the extraction process and for printing the preparatory reports are those entered for the main general ledger type of the company being processed.
Prerequisites
Refer to documentation Implementation
Screen management
Entry screen
Presentation
Enter the following criteria to run the VAT declaration process, which can be run in Actual or Simulation mode. In Simulation mode, declared amounts are not updated.
Generation criteria overview
Company
You can print the report for the operations of a single company or for all companies of a given legislation.
VAT on debits, VAT on payments
The preparatory report for the declaration of VAT on debits or VAT on payments prints as two separate reports. You can print one report or both.
The fields in the Tax on payment block are active if the DCLVATPAY- Manage VAT on collections (CPT chapter, VAT group) general parameter is set to Yes.
Date range
Enter a date range to filter data for the reports. The dates taken into account for this declaration depend on the payability of taxes.
Other
You can also filter the report data by site, entry detail or Detail by matching group.
Request number
The sequence number for this function uses the request number defined in the Sequence number assignment function (GESTCA) at the folder level only.
Print-outs
The process generates the following:
- A log file for the entries that does not include collections such as payments not due, unmatched payments, etc.
- When running the process for VAT on debits and VAT on payment, only one log file is generated for both VAT types.
Preparatory reports for the VAT declaration
- Prior to V11, you can run
- DCLVATENC1: Tax on collection
- DCLVATDEB1: VAT on the debits
- V11 and higher:
- DCLVATBOXPAY1: Tax declaration / payment
- DCLVATBOXDEB1: VAT declaration / payment (reprint)
If you ran the VAT declaration before upgrading to V11, you can print the reports again using DCLVATDEB2 and DCLVATENC2. To reprint new declarations done in a prior version, you need to use reports DCLVATBOXDEB2 and DCLVATBOXPAY2.
If you upgraded to V11, you can keep using DLCVATENC1 and DCLVATDEB1 via the VAT declaration function (DCLVATOTH).
These reports are identified by the request number (DLV and DVP counters).
Re-launching the VAT declaration process with the same criteria is not interpreted as a request to reprint the report but is used to process the matchings or recordings carried out after a first generation within the same period.
To reprint the DCLVATDEB2 or DCLVATENC2 reports, go to Reports > Prints/group > Financials > Tax management > Others. Enter the request number to be reprinted.
To reprint the DCLVATBOXDEB2 or DCLVATBOXPAY2 reports, go to Reports > Prints/group > Financials > Tax management > France. Enter the request number to be reprinted.
Close
Fields
The following fields are present on this tab :
Criteria
| Select this check box to run the VAT process for all companies. In Actual mode, sites are analyzed individually. If a company has at least one error on one site, the VAT process stops for this company and the data for any remaining sites is not analyzed. For companies with no errors, all the data is updated. For example, the process selects three companies set up with several financial sites. During the process, the following errors (KO) are returned:
At the end, the data is updated as follows in the declaration table.
When the process is run, the query number must be the one indicated in the Sequence number assignment function (GESTCA) at the folder level. If a VAT box set up for a particular legislation does not exist in theVAT boxes function (GESVTB), the process cannot run. |
| Enter a company to run the VAT process for that company only. In Actual mode, if the company has at least one error on one site, the VAT process stops for this company and the data for any remaining sites is not analyzed. If any site data was updated before the error, those updates are not deleted. For companies with no errors, all the data is updated. For example, the process selects a company with three financial sites. During the process, the following error (KO) is returned:
At the end, the data is updated as follows in the declaration table:
When running the process on a single company, the query number must be the one at folder level. If a VAT box set up for a particular Company/legislation combination does not exist in the VAT boxes function (GESVTB), the process cannot run. |
| Select the All sites check box to analyze all sites for a particular company. If the All companies check box is selected, this check box is also selected by default and cannot be cleared. |
| Enter the Site for a particular company. This field is mandatory if the All sites check box is not selected. |
Tax on debit
| Select this check box to run the process for VAT on debit. |
| The declaration start and end dates are used to filter the accounting entries by accounting dates or by original document dates, depending on the DCLVATDAT - Date for tax declaration parameter value (CPT chapter, VAT group). |
| The declaration start and end dates are used to filter the accounting entries by accounting dates or by original document dates, depending on the DCLVATDAT - Date for tax declaration parameter value (CPT chapter, VAT group). |
| Select this check box to print the Entry detail part of the report. This option is initialized by the Entry detail criteria on the DCLVATBOXDEB1 report. Before printing you can clear this check box. |
Tax on payment
| Select this check box to run the process for VAT on payment. |
| Enter or select Matching start and Matching end dates to select journal entries with matching dates that fall within this range. Journal entry lines posted on accounts whose Tax managementis set to Prepayment accountare selected even if the journal entry line is not matched. |
| Enter or select Matching start and Matching end dates to select journal entries with matching dates that fall within this range. Journal entry lines posted on accounts whose Tax managementis set to Prepayment account are selected even if the journal entry line is not matched. |
| Journal entries with due dates prior or equal to this date are selected for the VAT process. |
| Select this checkbox to restrict the entries that trigger the VAT declaration on payments to subsidiary records exclusively. The process eliminates as "payment" the matched accounting entry lines on the general accounts. For example, for the inter-currency reciprocal accounts. |
| Select this check box to print the Entry detail part of the report. This option is initialized by the Matching group detail criteria on the DCLVATBOXPAY1 report. Before printing you can clear this check box. |
| Select this check box to create a log file. When you run the process simultaneously for VAT on debit and for VAT on payment, a single log file is displayed for both VATs. The log file includes:
Messages could include:
|
Generation
|
|
Close
Details on VAT on collections
Principles for determining the amounts to be declared
A matching group is a triplet: control account, business partner, match. It can include several payments and several invoices.
The amounts to be declared are determined:
1) By the matching group whose matching date falls between the required date range and all the entries that make up the group
2) By searching in each matching group the triggering entries whose due date is prior or equal to the entered due date
3) By determining whether the payment amount equals the sum of the amounts associated with a business partner account, or matchable account, of the triggering entries in the matching group
- Determining the tax-included and VAT basis
- Search on all the entries of the matching group (irrespective of the entry type) of those lines posted to an account whose Tax management is Not subjected.
- Tax code onpayments
- Total by tax code
4) By determining whether the VAT to be declared equals determined basis amounts
- Limited to the payment amount
- Minus the VAT to declare amounts declared on the entry line and the VAT on the debits to be paid
If the VAT on payment amount to be declared is less than the matching group VAT on payment amount (for partial payments), the amounts to be declared are allocated proportionally to each group entry associated with a VAT on payment tax code.
Launching the VAT on payment declaration process can be carried out:
- In Simulation mode: the Declared tax fields for the entry file are not updated.
- In Actual mode: the Declared tax fields for the entry file are updated.
(Actual mode does not apply to DCLVATBRI.)
Special settings
Discounts and VAT on payment
The discount destination must have the following settings in the Payment attributes function (GESCDA):
- For Account structure, select Account <=> BP.
- Select the Separate journal check box.
- For Tax management, select Tax recovery.
The discount entry must be posted to a non triggering entry type.
The discount accounts must be set up as follows:
665000 : Discounts granted
Subject – Sales collected
VAT on payment tax code
765000 : Discounts obtained
Subject – Purchase deductible
VAT on payment tax code
Entering the payment must be carried out for the net discount amount. The discount line must be allocated on the invoice and must be entered with a VAT on payment tax code.
Example:
Recording of the invoice FAK-DEL0001-019 | 5,000.00 | 1,030.00 | 6,030.00 |
Payment TRG-DEL0001-012: | |||
- 20% of the invoice | 1,000.00 | 206.00 | 1,206.00 |
- With a discount of 5% | 50.00 | 10.30 | 60.30 |
That is a net payment of | 1,145.70 |
Amount in currencies | 1,145.70 | ||||||
Dest. | Type | Entry | Site | Cur | Amount | Amount posted | TAX |
ENC | INV | FAC-ASN0001-024 | ASN | EUR | 1,145.70 | 1,145.70 | |
ENC | INV | FAC-ASN0001-024 | ASN | EUR | 1,145.70 | 005 | |
Prepayment and tax declaration on payment
The entry designed to save the prepayment posting must be a triggering entry type. The prepayment entry can be either triggering or not.
The discount accounts must be set up as Discount accounts. They must be different from the customer or supplier control accounts with Tax management set to Not subjected.
The VAT account to be adjusted must be set up with Tax management set to Not subjected.
The tax codes for the VAT account and the prepayment account must be set up with Tax management set to VAT on payment.
Cases not managed
Multi-business partner entries
When an invoice has several business partners (or equivalent), you cannot identify the excl. tax and VAT amounts associated with each business partner. It is impossible to manage the VAT on payment. For a payment entry containing several prepayments (and consequently several BP tax incl. prepayment lines and several VAT lines), it is not possible to combine a tax incl. line and a VAT line and to generate the VAT on payment.
This could be possible for a single-phase payment transaction for a bank deposit with grouping on deposit slips.
Multi-business partners invoices
When an invoice has several business partners (or equivalent), it is not possible to identify the excl. tax and VAT amounts associated with each business partner. It is impossible to manage the VAT on payment.
Late payments
Following a payment by check, the tax is payable when cashing the check. In practical cases, the tax is settled on posting the check in the bank. If the check is not credited, the payment cannot take place.
It is possible, on entering the late payment, to reconsider the VAT that was initially declared.
In this case, the business partner account of the late payment is matched with the initial payment and the corresponding invoices. During the next VAT declaration, it is possible to declare the tax in the reverse order.
Posted statements
Posting an invoice statement results in the following:
- An entry (REL) to the debit and credit of the business partner account impacted by the total amount of the statement
- Matching all the open items on the statement with the credit of the entry
The invoices are then considered as paid by the VAT process.
Partial payment posted on several invoices
When a partial payment is posted to several invoices, the VAT calculation algorithm does not take into account the amounts posted to each of the invoices. This information is not available in the posting file.
For instance:
Entry for an invoice of 500,000 103,000 603,000 VAT 20.6%
Entry for an invoice of 1,000,000 55,000 1,055,000 VAT 5.5%
Partial payment of 542,600 EUR posted with 120,600 EUR to the first invoice and 422,000 EUR to the second invoice, that is:
On the first invoice: 100,000.00 20,600.00 120,600
On the second invoice:400,000.00 22,000.00 422,000
A VAT to be declared of: 42,600.00
VAT declaration on the 31/01/2000
The payment amount is distributed proportionally by the processing over the 2 invoices that leads to the following VAT amount to be declared:
FAC-007 :542,600 * 603/1,658 = 197,338.84 that is33,707.96 of VAT
FAC-007 :542,600 * 1,055/1,658 =345,261.16 that is 17,999.40 of VAT
51,707.36
Capital letter match between an invoice and a credit note
When the conditions below exist: Because there is no payment in the match group, these journal entries are not considered in the VAT on payment extraction process. No VAT amount is declared in the VAT reports, which is normal.
- An invoice is matched to a credit note with a capital letter match code and there is no other journal entry matched to the invoice and credit note.
- The matched invoice and credit note contain tax codes where the VAT type is VAT on payment.
This also implies that the VAT to declare amounts in the journal entry line are not updated and they remain empty.
As a result, for these journal entries, the CONTVAENC - VAT on payment control report always displays the lines on the VAT accounts with a VAT to declare amount equal to zero, as if the VAT declaration was missing on these lines.
Special tax rule for the deduction on author rights
Invoicing document containing:
- Two lines corresponding to a VAT base and the associated output VAT, with a payment tax code
- Two other lines corresponding to a VAT basis and to the associated input VAT, with a payment tax code.
The entry is subject to an uppercase matching with a triggering entry for the sales tax/money collection.
During the first run of the VAT declaration/money collection declaration process in Actual mode, the declared amounts are correct. However, the VAT process is not meant to be run again on that same uppercase matching group. Such an invoicing document should not be entered.
Actions spécifiques
Click this action to save the current settings to a Memo code to be reused later. The memo is linked to your user profile, not to the function or the screen.
|
Click this action to enter a Memo code to load the settings associated with the code. |
Click this action to delete a Memo code. |
Error messages
In addition to the generic error messages, the following messages can appear during the entry :
Function not implemented for this company
This message is displayed if the parameter OTHVAT-VAT decl. other legislations (chapter CPT, group VAT) has the value "No".