1.1. Objective of this Operation

The objective of this document is to explain how to check the accuracy of the monthly amounts of VAT payable and deductible, that BO (Back Office? if yes, change BO) posts following the OP "VAT Calculations and Postings" (previous operation?if yes, fill and link above).

For each company, on a monthly basis, you have to check the consistency among VAT books ("Registro IVA Fornitori" and "Registro IVA Clienti") and accounts related to VAT in order to understand if there is any difference among them. These consistency checks are registered in an excel template file, attached in this procedure, that is a useful support in the analyzes.

1.2. Scope

This procedure applies to all ERP Italian companies.

2. Definitions

See Finance Glossary:

• BFC
• BOIC
• CAM
• ERP
• FO
• GAC
• GAR
• GL
• PE
• PF1
• RCS
  
  

3. Tasks description

3.1. Periodicity

This procedure should be performed by SU FA VAT team, every month, in the closure period, before VAT postings.

3.2. Responsibility

Local responsibilities: Only check and assistance if need.
SBS responsibilities: FSL SU FA VAT will perform all the operations detailed.

3.3. I check the consistency among IVA Fornitori

Launch transaction Z1F_IT_ZIFIVFR1.

Choose the variant "XXXX IVA FORN" (in the example "0210 IVA FORN): 

Update the date inserting the first and the last day of the accrual month (in the example 01.11.2011-30.11.2011). Flag on "Solo Riepilogo Finale".

Click on Execute. Following screen appears:

Open the excel file from CCCC_IT VAT SUPPORT FILE_201X, sheet "Month_YY - Check", on the right side "CONTROLLO IVA ACQUISTI".

In the screen above, you have to consider each line in which the column "Importo IVA" is not equal to 0, for example the line:

Insert these numbers in the table "Controllo conteggi aliquote" by the tribute code (in the example LU).

The excel automatically re-calculates the VAT amount in the column "IVA RICALC." and give you back the difference with the VAT calculated by the system (DELTA). In the end, the amount of the column "IVA" must be the same of the total of the column "Importo IVA" from the previous SAP print screen (green circle).

Now go back in the previous SAP screen  and flag only on "Stampa riepilogo Nuovo Bollato".

Click on Execute  . Following screen appears:

This SAP transaction is organized in several sections (Blocchi sezionali):

Scroll down until the end of the first section. 
At the end of each section, following message appears: 

Insert the total amount of the column "Imponibile IVA" in table "Controllo IVA acquisti" by the accrual "Blocco sezionale" (3010000000). 

Perform this operation for each "Blocco sezionale". Scrolling down, you will find all the "Blocchi sezionali" you need. If some values are present in the column "IVA INDETRAI.", insert it in the column "IVA NON RECUPERABILE". 

At this point, run transaction FBL3N. 
Choose variant "XXXX - IVA ACQ". Update "All Items - Posting date" with the first and the last day of the accrual month. 

Click on execute  . The system give you back all movements related to the account for the accrual month. 
Click on  . Now click on  and after on  . 

The system give you back the account's movements summarized by "Type". 

For each Type code, insert the amount in the column "Contabilità". Clearly the sum of the column "Contabilità" must be the same than in screen above (green circle).

After run transaction FBL3N. Check the amount for the accrual month of the accounts: 

• 2411030039
• 2411020000 

Click on Execute  . 

Insert the amount in cell.

Do the same for account. 24110200000 if everything runs well, the "check cell" should give you the message "OK". 

Now check the amount for the accrual month of the accounts 2411020000 and 2411030039 and fill the following table.

3.4. I check consistency among IVA Clienti

Launch transaction Z1F_IT_ZIFIVCR1. 
Choose variant "XXXX IVA CLIEN" and click on "Solo riepilogo finale". Update the "Posting date" with the first and the last day of the month. 

Open the excel file from CCCC_IT VAT SUPPORT FILE_201X, sheet "Month_YY - Check", on the left side "CONTROLLO IVA VENDITE".  
In the screen above, you have to consider each line in which the column "Importo IVA" is not equal to 0, for example the line: 

Insert these numbers in the table "Controllo conteggi aliquote" by the tribute code (in the example LU).

The excel automatically re-calculates the VAT amount in the column (IVA RICALC.) and give you back the difference with the VAT calculated by the system (DELTA). In the end the amount of the column "IVA" must be the same of the total of the column "Importo IVA". 
Now go back  , and flag "Stampa su nuovo bollato". 

Execute  .
Following screen appears: 

This SAP transaction is organized in several sections (Blocchi sezionali):

Scroll down until the end of the first section. For example, the first "Blocco Sezionale" is 10000000000. 
At the end of each section, following message appears: 

Repeat the procedures for each "Blocco Sezionale". 

If some values are present in the column "IVA INDETRAI.", insert it in the column "IVA NON RECUPERABILE". 

Run transaction FBL3N. 
Choose variant "XXXX - IVA VEND". Update "All Items-Posting date" with the first and the last day of the accrual month. 

Click on execute  . The system give you back all movements related to the account for the accrual month. 
Click on  . Now click on  and after on  . 

The system give you back the account's movements summarized by "Type". 

Run the transaction FBL3N. 
Check the total amount for the accrual month of the account 2451030039 and 2451020000. 

Following screen appears: 

Do the same for account 2451020000. 
In the end of all these procedures, the following table should report all' "OK" message.

3.5. I perform the check between VAT registers and VAT calculation

SU FA VAT will check that the results on the tax codes, coming from the posting transaction in test mode of "OP VAT Calculations and Postings", are equal to the ones coming from the VAT registers (the checks detailed in this procedure). 
The VAT registers are fiscal registers that Italian companies must have for the Tax Authorities and that contains all the invoices received or issued in the period. 
For your information note that the structure of VAT accounts is the following:

• Accounts 245* are used to register the payable VAT
• Accounts 241* are used to register the receivable VAT
• The digit number six ( for example 2451030039 ) identifies the nature of the VAT:
  • 2- Intercommunity VAT;
  • 3- Internal VAT;
  • 4-Balance of the Monthly VAT.

The last three digits identify the Country of the Fiscal Authorities to who should be paid or collected back (for example: for account 2451030039, the 039 identifies Italy).

3.5.1. I check VAT Payable Register vs VAT Calculation

Select the transaction Z1F_IT_ZIFIVCR1 - Stampa IVA Clienti and follow the first instructions on 3.4. IVA Clienti from the present procedure. 
Choose the specific variant for each company: 

• XXXX IVA CLIEN (where XXXX is the company code). 

Execute the transaction 
A screen with the summary of all the tax codes posted in the period will appear:

The column "Imponibile Iva" shows the total amount of the invoices issued in the period, split by tax codes. 
The column "Importo IVA" shows the total amount of VAT payable on the invoices issued in the period, splitted by tax codes. 
These amounts must be compared to the amounts of the extraction performed in VAT calculation transaction executed in test mode according to procedure "VAT Calculations and Postings" in the column "To be paid over": 

3.5.2. I check VAT Receivable Register vs VAT Calculation

Select the transaction Z1F_IT_ZIFIVFR1 - Stampa Iva Fornitori and and follow the first instructions on 3.3. IVA Fornitori from the present procedure. 
Choose the specific variant for each company: 

• XXXX IVA FORN. (where XXXX is the company code)

Execute the transaction. 
A screen with the summary of all the tax codes posted in the period will appear: 

The column "Imponibile Iva" shows the total amount of the invoices received in the period, split by tax codes. 
The column "Importo IVA" shows the total amount of VAT deductible on the invoices received in the period, split by tax codes. 
These amounts must be compared to the amounts of the extraction performed in VAT calculation transaction executed in test mode according to procedure "VAT Calculations and Postings" in the column "Deductible": 

3.5.3. I check the differences on VAT accounts/VAT registers

The extraction performed OP "VAT Calculations and Postings" reads the VAT amount on the VAT accounts.
In the VAT registers, the transactions enter only if they have the right features: for example, the correct Tax Code and Document type. 
If there is a difference in a Tax Code amount, it means that a wrong document has been posted in the accounts or that the extraction has considered also Tax codes that should not enter in the VAT register.
To check if a wrong document has been posted in the accounts, identify in which account is the Tax Code with a difference. 

Compare extraction with the batch input: 

 

Execute in SAP the transaction FBL3N with: 

• G/L account: the one identifies before;
• Company Code: XXXX
• All items: from the 1st of the month of closing to the last day of the month of closing 

The following screen will appear. 

 

If there are no differences, the total amount of the period in the account will be equal to the extraction and to the VAT register. 
If there is a difference:

1. check with the Document Type if all the documents are invoices (for example, S1 is a document type for accruals and is not admitted) ;
2. check if it is possible to identify one document (or documents) that creates the difference.

To check if the extraction has considered also Tax codes that should not enter in the VAT register. 
Execute in SAP the transaction: 

• Z1F_IT_ZIFIVCR1– for VAT payable;
• Z1F_IT_ZIFIVFR1 – for VAT receivable 

Choose the specific variant for each company: XXXX IVA CLIEN or XXXX IVA FORN. 
(where XXXX is the company code). 

Insert: 

• Fiscal year: current year.
• Posting Date: from the 1st of the month of closing to the last day of the month of closing.
• Tax Code: Insert as "Single value" only the Tax code that is not correct.

 
Erase the flag from "Solo Riepilogo finale" and put the flag on "Stampa su nuovo bollato".

A detail of all the transactions posted with the selected tax code will appear:

Compare the detail with the transactions posted in the relative account and identify the document (or documents) the creates the difference.

4. Additional checks:

4.1. Check the amounts of the intracommunity tax codes in the 2 sides (both Clients and Vendors)

4.2. Check if the value of the month in VAT Books matches the value of the report 57

Values can be checked in the Resume tab (confirm the formulas are correct).

5) Run the report 57, if the value matches, and generate the monthly liquidation posting

On D+3 morning confirm the values still match the checks done in the previous day in order to proceed with the monthly liquidation posting. Do this using the transaction S_ALR_87012357 and correspondent company's variant.

To perform the posting, use the same transaction S_ALR_87012357, selecting "Batch input session requires" and update the fields:

• Posting Date - according to the reporting month
• Posting period - according to the reporting month
• Alternative Tax Payable Acct - according to the tax position
• Due Date of the Tax Payable - day 16 of the entry date
• Session name - update company code

Then, click on Execute (F8) and save the pdf.

Go to transaction SM35, 

End of document.