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

6. Add the link to SAP transaction(s) (when it exists)



Forms

7. Insert the links accordingly and change the link text with the Form name



Attachments

8. Add the link to attachments or external links




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1. Objective and Scope

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 do something...

3.1.1. Step 1 of Task 1 (I do something...)

3.1.2. Step 2 of Task 1 (I do something...)

...


3.2. I do something...

3.2.1. Step 1 of Task 2 (I do something...)

3.2.2. Step 2 of Task 2 (I do something...)

...


End of document.