## (IND) Working with Transactions for Sales Tax

This chapter provides an overview of sales returns and discusses how to:

- Calculate offset amounts.

- Calculate VAT offset amounts.

- Map interstate stock transfers.

### Understanding Sales Returns

You use the standard JD Edwards EnterpriseOne Sales Order Management system to process sales returns for manufacturers and dealers. When you process a sales return, use a credit order for the returned goods.

The system:

- Creates journal entries.

- Updates RG1 registers for manufacturers.

- Updates the RG23D register for dealers.

### Calculating Offset Amounts

This section provides an overview of calculation of offset amount and discusses how to:

- Run the Set Off Report program.

- Set processing options for Set Off Report (R75I4213).

#### Understanding the Calculation of Offset Amount

Run the Set Off Report to compare the tax paid on purchase transactions to the tax collected on sales transactions. The difference between the tax paid and the tax collected is the offset amount. The report calculates the offset amount from the sales order and purchase order details.

#### Running the Set Off Report Program

Select Sales Tax Reports (G75I421), Set Off Report.

#### Setting Processing Options for Set Off Report (R75I4213)

Processing options enable you to specify the default processing for programs and reports.

Select

Proof or Final Mode | Specify the mode in which the system calculates the offset amount. Values are: 0: Proof mode. The system prints a report, but does not update any tables. 1: Final mode. The system prints a report and updates the F75I4216 table.
Date Period Begin | Specify the start date of the period for which the system calculates the offset amount.
Date Period End | Specify the end date of the period for which the system calculates the offset amount.
Sales Order Type and Purchase Order Type | Enter a user-defined code from UDC table 00/DT that identifies the origin and purpose of the transaction. J. D Edwards EnterpriseOne reserves several prefixes for document types, such as, vouchers, invoices, receipts, and timesheets. The reserved document type prefixes for codes are: P: Accounts Payable documents R: Accounts Receivable documents T: Time and Pay documents I: Inventory documents O: Purchase order documents S: Sales order documents
Report Title | Specify the title for the report heading.

### Calculating VAT Offset Amounts

This section discusses how to:

- Run the VAT - Setoff Report program.

- Set processing options for VAT - Setoff Report (R75I2213A).

- Run the Set Off for Capital Goods program.

- Set processing options for Set Off for Capital Goods (R75I211).

#### Running the VAT - Setoff Report Program

Use the VAT - Setoff Report (R75I2213A) program to print the list of sales orders and purchase orders with VAT. The difference between the tax paid and the tax collected is the offset amount.

Select Sales Tax (G75I2221), VAT - Setoff Report.

#### Setting Processing Options for VAT - Setoff Report (R75I2213A)

Processing options enable you to specify the default processing for programs and reports.

Display

Sales Order Type and Purchase Order Type | Enter a user-defined code from UDC table 00/D) that identifies the origin and purpose of the transaction. J. D Edwards EnterpriseOne reserves several prefixes for document types, such as, vouchers, invoices, receipts, and timesheets. The reserved document type prefixes for codes are: P: Accounts Payable documents R: Accounts Receivable documents T: Time and Pay documents I: Inventory documents O: Purchase order documents S: Sales order documents
Month | Specify the numerical month for which you are processing the Setoff report.
Year | Specify the numerical year for which you are processing the Setoff report.
Proof or Final Mode | Specify the mode to calculate the offset amount for the reporting period. Values are: 0 : Proof mode. The system prints a report, but does not update any tables. 1: Final mode. The system prints a report and updates the F75I404 table.

#### Running the Set Off for Capital Goods Program

Use the Set Off for Capital Goods (R75I211) program to print the list of purchase orders and to calculate the VAT offset amount for capital goods.

Select Purchase tax (G75I2222), Set Off for Capital Goods.

#### Setting Processing Options for Set Off for Capital Goods (R75I211)

Processing options enable you to specify the default processing for programs and reports.

Display

Month | Specify the numerical month for which you are processing the Set off report for capital goods.
Year | Specify the numerical year for which you are processing the Set off report for capital goods.
Proof or Final Mode | Specify the mode to calculate the offset amount of the capital goods. Values are: 0 : Proof mode. The system prints a report, but does not update any tables. 1: Final mode. The system prints a report and updates the F75I404 table.

### Mapping Interstate Stock Transfers

This section provides an overview of the mapping interstate stock transfers and discusses how to:

- Set processing options for Stock Transfer Entry (P75I213A).

- Map stock transfer orders to purchase orders.

#### Understanding the Mapping of Interstate Stock Transfers

Use the Stock Transfer Entry program (P75I213A) to specify the quantity of stock to transfer and map the stock transfer order to the appropriate purchase order. The system retrieves the stock transfer order and purchase order of the item for transfer. The quantity of the item entered in purchase order receipt must be the same as the stock transfer order. The system compares the quantity of the item for transfer in the stock transfer order to the purchase order receipt. After matching the quantity, the system calculates the extended price and gross amount of the items transferred. The system does not retrieve the previously matched stock transfer orders.

The system calculates the value-added tax (VAT) credit for the items transferred using this formula:

Credit available = VAT credit claimed during the purchase of the items – retention percentage on the VAT amount calculated on the value of the transferred items.

The state government withholds certain percentage of VAT tax amount during stock transfers between states as a retention percentage. The retention value is calculated on the VAT tax amount of the item transferred. Each state has a specific retention percentage. The system uses the retention percentage to calculate the VAT credit for interstate stock transfers.

Note. If the state does not have a retention percentage assigned to it, use the Retention Percentage program (P75I220) to assign a retention percentage to the state.

After calculating the value of the items transferred, the system updates the Stock Transfer Details table (F75I403).

#### Prerequisites

Before you complete the tasks in this section:

- Confirm that the adjustment is defined under the activity name VAT and that the glossary is defined in the Relation Adjustment Name / Tax Type (P75I006) and the Relation Landed Costs to Tax Regime / Tax Type (P75I007) programs.

- Confirm that items in the stock transfer order are the same as the purchase order items.

#### Forms Used to Map the Interstate Stock Transfers

Form Name | FormID | Navigation | Usage
Select Transferred Orders (F4211) | W75I213AC | Sales Tax (G75I2211), Stock Transfer Entry The system displays this form when you set the Pick Sales Detail History Data processing option to 1. | Review the stock transfer orders by order number, business unit, item number, and state code.
Select Transferred Orders (F42119) | W75I213AB | Sales Tax (G75I2211), Stock Transfer Entry The system displays this form when you set the Pick Sales Detail History Data processing option to 0. | Review the stock transfer orders by order number, business unit, item number, and state code.
Transferred Order Quantity Match | W75I213AA | Select a record on the Select Transferred Orders (F4211) form and click Select. | Map a stock transfer order to a purchase order.

#### Setting Processing Options for Stock Transfer Entry (P75I213A)

Processing options enable you to specify the default processing for programs and reports.

Display

Select the Order Type for Stock Transfer Documents. | Enter a user-defined code from UDC table 00/DT that identifies the origin and purpose of the transaction. J. D Edwards EnterpriseOne reserves several prefixes for document types, such as, vouchers, invoices, receipts, and timesheets. The reserved document type prefixes for codes are: P: Accounts Payable documents R: Accounts Receivable documents T: Time and Pay documents I: Inventory documents O: Purchase order documents S: Sales order documents
Pick Sales Detail History Data 0 = F42119 Sales Order Detail History Data, 1 = F4211 Sales Order Detail Data | Specify the table number/name from which the transferred stocks data can be retrieved. Values are: 0: F42119 Sales Order Detail History Data. 1: F4211 Sales Order Detail Data.
Lot Control 0 = Deactivate Lot Control Data, 1 = Activate Lot Control Data | Specify whether to activate the lot controlled data. Values are: 0: Do not activate. The purchase order receipts of items with valid vouchers are retrieved. 1: Activate. Only purchase order receipts of the corresponding items, lot, and location with valid vouchers are retrieved for matching.

#### Mapping a Stock Transfer Order to a Purchase Order

Access Transferred Order Quantity Match form.

State | Enter a user-defined code from UDC table 00/S that specifies the state or province. This code is usually a postal service abbreviation.
Quantity Stocked | Enter the number of units that are transferred.