White Paper Country Specific Update for Italy Split Payment Setup

Microsoft Dynamics AXWhite paper. CountrySpecific Update for Italy – Split payment setup Document generation for Task Recorder. Provides an example how to meet the requirements for Split payment in DAX 2012 R3. The approach is also applicable for versions DAX2009, DAX2012, DAX2012R2 White paper March 2015 Contents White paper. Country-Specific Update for Italy – Split payment setup 3 Introduction 3 High-level description 3 Create new main account for VAT split payment. Form name: Main accounts 5 Create posting group for VAT split payment. Form name: Ledger posting groups 6 Create Sales tax group for Public Administration. Form name: Sales tax groups 8 Create tax code for VAT split payment. Form name: Sales tax codes 9 Create number sequence and number sequence group for Customer – Public Administration. 12 Form name: Accounts receivable parameters 12 Assign Sales tax group and Number sequence group to Customers-Public Administration. 15 Form name: Customers 15 Create VAT book 16 Form name: Italian sales tax books 16 Create sections for VAT book. 17 Form name: Italian sales tax book sections 17 Create journal for VAT split payment posting. 19 Form name: Journal names 19 Create and Post invoice (FTI) to Customer-Public Administration 19 Create and post VAT split payment journal. 22 Form name: General journal 22 Settle invoice and VAT split payment. Form name: Open transaction editing 24 Print VAT book report 25 Form name: Sales tax payment 25 Form name: Sales tax (Italy) 27 White paper. Country-Specific Update for Italy – Split payment setup 2 White paper. Country-Specific Update for Italy – Split payment setup Note: The Dataset used in this document is for demo purposes only, please use codes for ledger accounts, VAT, rates, customer groups, etc. according to the rules accepted in your company. Introduction The Stability Law 2015 along with Decrees and Press releases issues by the Ministry of Economy and Finance (MEF) have established new rules for VAT accounting and invoices issued to Public Administration (PA). With the new mechanism of the Split payment, will translate the obligations of payment of the tax, in relations with public authorities expressly stated in the amended Article. 17 - ter, Presidential Decree 633/1972, the transferor / lender to the public body; the latter, instead of paying the VAT to the supplier, the Treasury will pay directly, according to the terms and conditions laid down by decree of the Minister of Economy Therefore, companies that have relationships with the PA will have to manage with a focus such transactions, taking into account that the relevant VAT shall be recorded in the register sales, but does not contribute to the periodic VAT payment. The Split Payment is valid for sales of goods and services rendered to the Public Administration invoiced since the 1stJanuary2015. High-level description Here is a short explanation followed by the step-by-step documentation prepared with Task recorder that provides an example of settings and user activities for Split payment. The invoices issued under Split Payment must be entered in a specific register which could be a Libro IVA (VAT Book) or Sezionale del Libro IVA Vendite (a section of the already existing book of the sales invoices). Therefore, before all postings, create a VAT book and separate section in VAT book to report the invoices issued to PA. To address the requirement to have a special tax posting on account IVA c/Vendite ART 17 TER DPR 63/72, create a separate tax code and tax posting group for invoicing to PA. Set the same ledger account in Sales tax payable and Settlement account to avoid sales tax payment posting in GL. As the rest is a normal invoice, this can be managed by standard invoice posting. Booking example for sales invoice: White paper. Country-Specific Update for Italy – Split payment setup 3 VAT) Account VAT debt elimination Debit Customer_Public Company VAT split payment Credit 200 200 Settle the created customer transaction with the invoice. please refer to the Step-by-Step instruction below. Country-Specific Update for Italy – Split payment setup 4 . post a tax transaction with relevant tax code in General journal: Account type = Customer Offset account = GL account for VAT Split payment (IVA c/Vendite ART 17 TER DPR 63/72) Credit field = VAT amount. White paper. (or Debit = . For details.Account Invoice accounting Customer_Public Company Debit Credit 1200 Sales revenue 1000 VAT split payment 200 To reduce customer balance and tax being accrued. Note: Make sure the code of Main account is align with rules for COA applied in your company: Main account Name Main account type IVA20 IVA split payment Liability White paper. 2 Create Main account 'IVA'.Create new main account for VAT split payment. Country-Specific Update for Italy – Split payment setup 5 . Form name: Main accounts 1 Click Area Page node: General ledger -> Common -> Main accounts. 3 Switch to the Setup tab on the Main accounts .chart of accounts. Form name: Ledger posting groups 1 Click Area Page node: General ledger -> Setup -> Sales tax -> Ledger posting groups. White paper. Country-Specific Update for Italy – Split payment setup 6 . 5 Close the Main accounts . Create posting group for VAT split payment.chart of accounts 4 Click the Close toolbar button. White paper.2 Create new group in table Ledger posting groups: Ledger posting group Description IVA_PA IVA Split pay 3 Switch to the General tab on the Ledger posting groups form. Country-Specific Update for Italy – Split payment setup 7 . Country-Specific Update for Italy – Split payment setup 8 . Create Sales tax group for Public Administration. White paper. Form name: Sales tax groups 1 Click Area Page node: General ledger -> Setup -> Sales tax -> Sales tax groups.Sales tax payable Sales tax receivable Settlement account IVA20 IVA20 IVA20 4 Close the Ledger posting groups form. 2 Create new group in table Sales tax group: Sales tax group Description Sales tax group setup PA Public Adm Sales tax codes 3 Close the Sales tax groups form. White paper. Create tax code for VAT split payment. Form name: Sales tax codes 1 Click Area Page node: General ledger -> Setup -> Sales tax -> Sales tax codes. Country-Specific Update for Italy – Split payment setup 9 . Set Value = 20 Note: Make sure you enter the tax rate value that is valid in your Country\Region. White paper. 4 Close the Values form. 5 Click the Inquiries -> Included in item sales tax groups menu button. Sales tax Code Name Settlement period Ledger posting group 20S IVA 20% split payment Mon IVA_PA 3 Click the Values button. Country-Specific Update for Italy – Split payment setup 10 .2 Create new tax code ‘20S’. 7 Click the Inquiries -> Included in sales tax groups menu button.6 Close the Sales tax codes in the group form. White paper. Country-Specific Update for Italy – Split payment setup 11 . White paper. Country-Specific Update for Italy – Split payment setup 12 . Create number sequence and number sequence group for Customer – Public Administration. Form name: Accounts receivable parameters 1 Click Area Page node: Accounts receivable -> Setup -> Accounts receivable parameters. 9 Close the Sales tax codes form. 2 Switch to the Number sequences tab on the Accounts receivable parameters form.8 Close the Sales tax codes in the group form. 3 Make sure the selection is changed in table Number sequence references to: Reference Number sequence code Sales tax book section Use same number as Free text invoice voucher Acco_23 Acco_23 Free text invoice 4 Click the Group button. Country-Specific Update for Italy – Split payment setup 13 . White paper. Country-Specific Update for Italy – Split payment setup 14 . 6 Switch to the Reference tab on the Number sequence groups form. 7 Make sure the selection is changed in table Number sequence group references to required VAT book section: White paper.5 Create new Number sequence group to get invoices issued to PA in a separate section of VAT book. Area Reference Number sequence Accounts receivable Free text invoice voucher Inv_PA Accounts receivable Free text credit note voucher Inv_PA Sales Customer invoice voucher Inv_PA Sales Sales credit note voucher Inv_PA 8 Close the Number sequence groups form. Assign Sales tax group and Number sequence group to Customers-Public Administration. 9 Close the Accounts receivable parameters form. White paper. Form name: Customers 1 Click Area Page node: Accounts receivable -> Common -> Customers -> All customers. Country-Specific Update for Italy – Split payment setup 15 . 4 Switch to the Invoice and delivery tab on the Customers form. 2 Make sure the selection is changed in table Customers to Public administration: Name Customer account Waterfall Hotel 2001 3 Double-click or press Enter on the selected record in form Customers. Country-Specific Update for Italy – Split payment setup 16 . White paper. Create VAT book Form name: Italian sales tax books 1 Click Area Page node: General ledger -> Setup -> Sales tax -> External -> Italian sales tax books.5 Make sure sales tax group = PA. created for Public administration 6 Select Number sequence group created for Public administration 7 Close the Customers form. Create sections for VAT book.11.2 Create new VAT book to register invoices to Public administration Sales tax book Name Sales tax book type Settlement period ATECOFIN Code VATBookS New VAT Book for sales made under Sales Mon 11. Form name: Italian sales tax book sections 1 Click Area Page node: General ledger -> Setup -> Sales tax -> External -> Italian sales tax book sections.11 Split payment 3 Close the Italian sales tax books form. White paper. Country-Specific Update for Italy – Split payment setup 17 . you get info about invoices issued to PA and reducing of VAT liability in the same section of VAT book. With this setup. Country-Specific Update for Italy – Split payment setup 18 . 3 Make sure the selection is changed in table Sales tax book sections to: Sales tax book Sales tax book section Name Number sequence code VATBookS IVA_PA Inv_PA VAT Book for sales under split payment Delete unnecessary sections from the book. Note. create two sections: one for invoices issued to PA. and the other – for split payment. To get these records in separate sections of VAT book.2 Create section in VAT book. White paper. Assign different Number sequences to each section. 4 Close the Italian sales tax book sections form. 2 Create a new record.Create journal for VAT split payment posting. Form name: Journal names 1 Create new journal to register info about split payment VAT invoices to Public administration. 5 Close the Journal names form. Change Name from '' to 'PA*'. 4 Make sure the selection is changed in table Name of journal to: Name Description Journal type Number allocation at Account type Offset account Ledger IVA20 posting PA-Jour VAT offset jour. White paper. 3 Switch to the General tab on the Journal names form. split Daily true payment Note: Mark Fixed offset account to ensure the posting done to VAT split payment ledger account. Country-Specific Update for Italy – Split payment setup 19 . Click Area Page node: General ledger -> Setup -> Journals -> Journal names. Create and Post invoice (FTI) to Customer-Public Administration 1 Click Area Page node: Accounts receivable -> Common -> Customers -> All customers. White paper.00'. 5 Change Date from '4/5/2015'. 7 Change Description from '' to 'services'. 10 Change Unit price from '' to '1000. 4 Switch to the Free text invoice header tab on the Free text invoice form.2 Make sure the selection is changed in table Customers to: Name Customer account Waterfall Hotel 2001 3 Click the Invoice -> New -> Free text invoice button. 9 Change Item sales tax group from '' to 'FULL'. 11 Click the Invoice -> Details -> Sales tax button. Country-Specific Update for Italy – Split payment setup 20 . 6 Switch to the Invoice lines tab on the Free text invoice form. 8 Change Main account from '' to '0101'. White paper. 13 Click the OK button. Country-Specific Update for Italy – Split payment setup 21 .12 Click the Invoice -> Post -> Post button. 14 Copy Invoice number in the dialog form. White paper. Country-Specific Update for Italy – Split payment setup 22 . Form name: General journal 1 Click Area Page node: General ledger -> Journals -> General journal. Create and post VAT split payment journal. 4 Click the Lines button.2 Click the New button. White paper. 3 Change Name from '' to 'PA-Jour'. Country-Specific Update for Italy – Split payment setup 23 . Create a new record in the General journal form. 5 Change Date to '4/5/2015'. 11 Change Debit from '' to '-200. White paper. Collect. Note: You can perform settlement after journal posting in Accounts receivable -> Common -> Customers -> All customers. 6 Change Account type from 'Ledger' to 'Customer'. Settle invoice and VAT split payment.offset'. Settle Open transaction. 9 Change Sales tax code from '' to '20S'. 10 Change Description from '' to 'IVA split payment . mark invoice for settlement: 1 Click the Functions -> Settlement menu button. 3 Change Amount to settle to ‘200’ 4 Close the Open transaction settlement form.00'. 7 Change Account from '' to '2001'. 2 Click Mark for invoice record in the Settle open transactions form. 5 Click the Post -> Post menu button. Country-Specific Update for Italy – Split payment setup 24 . 8 Change Invoice from '' to '00000006_028'. Form name: Open transaction editing To reduce the customer balance and moment of journal porting. 7 Close the Journal voucher form. you can check the results in the report following the steps. Country-Specific Update for Italy – Split payment setup 25 . White paper. 8 Close the General journal form.6 Click the Close button. 1 Click Area Page node: General ledger -> Periodic -> Sales tax payments -> Sales tax payments. Print VAT book report Form name: Sales tax payment Before running the report in “update mode”. 3 Change Transaction date to '4/30/2015'. 4 Click the OK button. Country-Specific Update for Italy – Split payment setup 26 . White paper.2 Change From date from '' to '4/1/2015'. 5 Click the OK button. Form name: Sales tax (Italy) White paper. Country-Specific Update for Italy – Split payment setup 27 . Country-Specific Update for Italy – Split payment setup 28 .White paper. White paper.6 Close the Sales tax (Italy) form. Country-Specific Update for Italy – Split payment setup 29 . All rights reserved. solutions that enables you and your people to make business decisions with This document is provided “as-is. This document does not provide you with any legal rights to any intellectual property in any Microsoft product. .” greater confidence.microsoft. 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