Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)


3. Fill in all fields as described above

4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) - " I do something..."

5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 


Domain: Country Accounting

Responsibility area: 2. Enter the responsibility area described in OPD matrix ("N/A" for Country Accounting Operations)

Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)


Scope

3. Remove the icon when not applicable


ERP

4. Remove the icon(s) when not applicable


Frequency

5. Remove the icon(s) when not applicable

 

References

FBL3N

ZZF_POSTING_FILE



Forms

TEMPLATE IT - VAT Split Payment regularization



Attachments

8. Add the link to attachments or external links




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1.1. Objective of this Operation

For selected types of entities of the Public Administration there is a specific VAT rule to be applied, known as Split payment. Under this split payment system, VAT payable by the customer is paid directly to the Tax Authorities rather than to the supplier.
There is a specific accounting treatment for this invoices and due to system restrictions we need to check the accounts and regularize the customer account manually. This procedure explains how to check and regularize the accounts. 


1.2. Scope

This procedure is applied for all Italian entities working in PF1 system when applied the VAT code A1 Standard rate: 22%, 6R Reduced rate: 10% and  XW Super-reduced rate: 4%.


2. Definitions

Definitions should be added in the Finance Glossary - Add definition and link it to respective Letter in Finance Glossary 

See Finance Glossary:

  • ...


3. Tasks description

For invoices issued under the VAT Split Payment rule the invoices are normally issued but the VAT calculated is allocated into GL account 2451000000 - Sales and use tax payable.

When we have items open in the GL account 2451000000, we need to perform one additional posting to clear the VAT amount against the customer account reducing the amount to be received.

The accounting behavior for invoicing where we apply tax code A1 Standard rate: 22%, is the same when we apply tax code 6R Reduced rate: 10% and it's the same when we apply tax code XW Super-reduced rate: 4%.  

It is important to transfer back to the same customer invoiced and perform one posting per invoice that should be clearly identified in the text.


3.1. I settle GL account 2451000000 - Sales and use tax payable

3.1.1. I identify the invoices to be settled by customer


Open transaction FBL3N to retrieve all items open for the current period by using variant IT SPLIT PAY, select the company code you work with and execute:


The outcome will be similar to this list:


3.1.2. I prepare and perform the posting

To support the analysis, open the form attached to this procedure and copy the extraction to sheet JUSTIFICATION:

  1. Select

                  >> 

       2. Copy the data to the table from column L to Z:

         

     

       3. Column AA is the calculation of the invoice issued to the customer (to support CCT team in the reconciliation), you just have to double check if the amount is calculated correctly in all the lines;

       4. Column CHECK is just a cross reference between the VAT amount to be regularized and the amount we copy to sheet TEMPLATE that is automatically preparing the posting.


If in column offset account is not a customer account you will have to update the field manually in the table.

For example:

offset account identified by the system is account 7000000000 double click in the document and retrieve the customer account to identify to whom we issued the invoice.

414909 is the customer account number that should appear in the table. 



   5. As soon as you finalize here, go to sheet TEMPLATE:

  • Update field company code;
  • Update field "Doc Date" and "Posting Date" with 31/MM/YYYY;
  • Double check if the amounts, posting keys and text is correct.

          It is important to keep all these requirements and texts updated because afterwards CCT team will be responsible for the clearing of the customer accounts. 


   6. Use transaction ZZF_POSTING_FILE to post and ensure that the excel file is attached to the posting for posterior consult.


End of document.