## (COL) Setting Up Functionality for Colombia

This chapter discusses how to:

- Set up user-defined codes (UDCs).

- Set up cost accounts for depreciation and inflation adjustments.

- Set up address book information for Colombia.

- Set up payment formats for Colombia.

### Setting Up UDCs for Colombia

Setting up Colombian-specific UDCs enables you to use Colombian-specific functionality. You also set up some base software UDCs with Colombian-specific values. This section discusses how to:

- Set up UDCs for tax processing.

- Set up UDCs for accounts payable transactions.

#### Setting Up UDCs to Use Magnetic Media for Tax Reporting

Set up these UDCs before processing tax records.

Address Book Category Codes (01/xx)

Set up an address book category code with values to associate city names with municipal or department codes. Enter a user-defined value in the Codes field, the city name in the Description 01 field, and the municipal or department code in the Description 02 field for each city for which you report data.

General Ledger Category Codes (09/xx)

You must set up a general ledger category code for each of the formats used to report on general ledger records. The formats used to report on general ledger records are:

- 1011

- 1012

- 1034

For each of these formats set up a system 09 category code UDC table to specify the concepts for each format. Include in the category code values all of the concept codes for the format. For example, for format 1011, set up the same codes as you set up in the DIAN Concepts for Format 1011 (76C/11) UDC table.

Note. Select a category code that allows you to enter a four-digit code. System 09 category codes 21–40 allow you to enter up to 10 characters.

DIAN Concepts for Format 1001 (76C/01)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1001:

Codes | Description
5001 | Salarios y demás pagos laborales
5002 | Honorarios
5003 | Comisiones
5004 | Servicios
5005 | Arrendamientos
5006 | Intereses y Rendimientos Financieros
5007 | Compra de activos movibles
5008 | Compra de Activos Fijos
5009 | Cargos Diferidos o Gastos pagados por anticipado
5010 | Aportes Parafiscales Sena, Bienestar Familiar y Cajas de Compensacion
5011 | Aportes Parafiscales a las Empresas Promotoras de Salud EPS, e ISS y aportes para el Sistema de Riesgo Profesionales (incluidos los aportes del trabajador)
5012 | Aportes Obligatorios de Pensiones efectuadas al ISS y a fondos de Pensiones (incluidos los aportes del Trabajador)
5013 | Donaciones en dinero
5014 | Donaciones en otros activos
5015 | Impuestos
5016 | Otros Costos y Deducciones
5017 | Importe de siniestros pagados o abonados en cuenta
5018 | Importe de primas de reaseguros pagados o abonados en cuenta

DIAN Concepts for Format 1002 (76C/02)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1002:

Codes | Description
2301 | Retenciones por Salarios
2302 | Retenciones por Compras
2303 | Retenciones por Comisiones
2304 | Retenciones por Honorarios
2305 | Retenciones por Servicios
2306 | Retenciones por Arrendamientos
2307 | Retenciones por Rendimientos Financieros
2308 | Retenciones por dividendos y participaciones
2309 | Retención por enajenación de activos fijos de personas naturales ante notarios y autoridades de transito
2310 | Retención sobre ingresos de tarjetas débito y crédito
2311 | Retenciones por Loterías, Apuestas y similares
2312 | Retencione por pagos al exterior a titulo de renta y de remesas
2313 | Otras Retenciones
2314 | Autoretenciones por ventas
2315 | Autoretenciones por servicios
2316 | Autoretenciones por rendimientos financieros
2317 | Otras autoretenciones
2318 | Retención de Impuesto a las ventas retenido a Régimen Común

DIAN Concepts for Format 1003 (76C/03)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1003:

Codes | Description
1301 | Retenciones por Salarios
1302 | Retenciones por Ventas
1303 | Retenciones por Servicios
1304 | Retenciones por Honorarios
1305 | Retenciones por Comisiones
1306 | Retenciones por Intereses y Rendimientos Financieros
1307 | Retenciones por Arrendamientos
1308 | Otras Retenciones
1309 | Retención por impuesto a las ventas retenido

DIAN Concepts for Format 1004 (76C/04)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1004. You must complete the Description 02 column with the percentage of any discounts on payments that apply for the concept.

For example, you might set up these codes:

Codes | Description 01
8301 | Por Reforestacóón
8302 | Impuesto a las Ventas en la Importación de Maquinaria Pesada
8303 | Impuestos pagados en el Exterior
8304 | Otros Impuestos Tributarios

Concepts for Format 1007 (76C/07)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1007:

Codes | Description
4001 | Ingresos Operacionales
4002 | Ingresos No operacionales diferentes de Intereses y Rendimientos Financieros
4003 | Ingresos por Intereses y rendimientos financieros

DIAN Concepts for Format 1008 (76C/08)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1008:

Codes | Description
1315 | Cuentas por Cobrar-Clientes
1316 | Cuentas por Cobrar-Compañías accionistas, socios y compañías vinculadas
1317 | Otras Cuentas por Cobrar
1318 | Saldo fiscal provisión de cartera

DIAN Concepts for Format 1009 (76C/09)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1009:

Codes | Description
2201 | Pasivo con proveedores
2202 | Cuentas por Pagar a Casa accionistas
2203 | Obligaciones con el sector
2204 | Pasivos por Impuestos
2205 | Pasivos Laborales
2206 | Otros Pasivos

DIAN Concepts for Format 1011 (76C/11)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1011:

Codes | Description
1105 | Saldo a 31 de Diciembre de 2005 en caja
1402 | Total compras netas del año
1403 | Costo de mano de obra directa
1404 | Costos indirectos de fabricación
1405 | Otros costos
1406 | Costo de ventas
1407 | Valor inventario final a 31 de diciembre
1408 | Nacimientos del año
1409 | Muertes
1410 | Compras y gastos capitalizados
1411 | Total valorizaciones ganado bovino
1412 | Valor inventario final a 31 de diciembre de los semo
1501 | Valor patrimonial de los inmuebles
1502 | Valor patrimonial de la maquinaria y equipo
1503 | Valor patrimonial del equipo de oficina
1504 | Valor patrimonial del equipo de oficina
1505 | Valor patrimonial del equipo de computación y comunicación
1506 | Valor patrimonial de los activos fijos amortizables
1507 | Valor patrimonial de los demás activos fijos poseídos
1508 | Valor de la depreciación, amortización y agotamiento acumulado
1509 | Valor patrimonial de otros activos
8001 | Ingresos No constitutivos-Dividendos y participaciones
8002 | Ingresos no constitutivos-Rendimientos Financieros
8003 | Otros Ingresos No constitutivos
8101 | Rentas hoteleras Exentas
8102 | Rentas exentas por Ley Páez
8103 | Rentas exentas Eje cafetero
8104 | Rentas exentas por Energía eléctrica con recursos eólicos, biomasa o residuos agrícolas
8105 | Rentas exentas por servicios ecoturístas
8106 | Rentas exentas por aprovechamientos de nuevas plantaciones forestales
8107 | Rentas exentas por nuevos productos medicinales y de software
8108 | Otras rentas exentas
8200 | Deducción por inversión en activos fijos reales productivos
8201 | Deducción por perdidas de ejercicios anteriores
8202 | Deducción por inversiones realizadas en control y mejoramiento del medio ambiente
8203 | Deducción por inversiones en nuevas plantaciones, riegos, pozos y silos
8204 | Deducción por inversiones en desarrollo científico y tecnológico
8205 | Deducción por provisiones para deudas de difícil cobro y deudas perdidas
8206 | Deducción por depreciación, amortizaciones y agotamiento
8207 | Deducción por salarios, prestaciones sociales y demás pagos laborales
8208 | Deducción por pagos a casa matriz
8209 | Deducción por pagos al exterior

DIAN Concepts for Format 1012 (76C/12)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1012:

Codes | Description
1110 | Saldo a 31 de Diciembre de 2005 de las cuentas corrientes y/o ahorro que posea en el país o el exterior
1115 | El valor total del saldo de las cuentas corrientes y/o ahorro poseídas en el exterior
1200 | El valor patrimonial de los bonos poseídos a 31 de Diciembre de 2005
1201 | El valor patrimonial de los certificados de depósito poseídos a 31 de Diciembre de 2005
1202 | Valor patrimonial de los títulos poseídos a 31 de Diciembre de 2005
1203 | Valor patrimonial de los derechos fiduciarios poseídos a 31 de Diciembre de 2005

DIAN Concepts for Format 1034 (76C/34)

Set up this UDC table with the codes for concepts (record types) for the DIAN format 1034:

Codes | Description
1000 | Activo corriente
1011 | Activo no corriente
2000 | Pasivo corriente
2001 | Pasivo no corriente
2002 | Interés minoritario de Balance
3000 | Patrimonio
4100 | Ingresos Operacionales
6000 | Costo de Ventas
5100 | Gastos operacionales de administración
5200 | Gastos operacionales de Ventas
4200 | Otros ingresos no operacionales
5300 | Otros ingresos no operacionales
5301 | Utilidad antes de impuesto de renta
5302 | Interés minoritario de resultados
5304 | Utilidad neta
5305 | Impuesto de renta
5306 | Pérdida neta

DIAN Document Types (76C/DT)

Set up the document types to identify a legal entity or natural person for tax reporting. You also set up the document type 43 that the system writes to the reports for transactions involving minimal amounts or foreign suppliers.

For example, you might set up these codes:

Codes | Description
11 | Civil registry
12 | Identity card
13 | Citizenship form
21 | Foreign card
22 | Foreign form
31 | NIT
41 | Passport
43 | Foreign supplier and minimal transaction amounts.

DIAN Magnetic Media Formats (76C/FM)

Set up this UDC table with the legal formats (reports) required by DIAN.

Codes | Description
1001 | Payments Made
1002 | Source Withholding Made
1003 | Source Withholding Applied
1004 | Payment Made that Originated by Tributary Deductions
1005 | Sales VAT discountable originated by cancelled or rescinded sales
1006 | Sales VAT to pay originated by cancelled or rescinded purchases
1007 | Income received
1008 | Accounts Receivable pending
1009 | Accounts Payable pending
1011 | Tributary information
1012 | Tributary information (certificates, titles, inversion)
1034 | Consolidate balance sheet

Person/Corporation Code (76C/PC)

Specify the person or corporation code in the Codes field, and enter the appropriate abbreviation in the Description 02 field. The system uses the values in the Description 02 field on legal reports.

In the Special Handling Code field, enter N for the codes for which the system does not edit the fiscal ID and does not calculate the control digit.

For example, you might enter a code of A with the abbreviation of NIT in the Description 02 field, and enter a code of C with the abbreviation of C.C in the Description 02 field.

- Enter a Y or a 1 for the codes for which the system edits the fiscal ID and calculates the control digit.

- Enter a 2 for the codes for which the system edits the fiscal ID and does not calculate the control digit.

The system uses the values in this UDC when you run the Movements Selection (R76C0110) program.

DIAN VAT Prefixes (76C/VT)

Set up VAT prefixes to identify the G/L offset accounts that are used to account for VAT for purchases and sales that were returned, cancelled, or rescinded. Complete the Codes field with the first two characters of the G/L offset account.

The system compares the first two characters of the G/L offset account in the Tax Detail - Work File (F76CUI02) table to the values in the Codes field when you run the DIAN Sales VAT Discountable Origination by Sales program (R76C3F50) to determine which tax amounts to include when reporting for format 1005, or run the DIAN Sales VAT to Pay Originated by Purchases program (R76C4F60) program to determine which tax amounts to include when reporting for format 1006.

For example, you might set up these codes:

Codes | Description
IC | ICCO
IV | IVDE

DIAN VAT Withholding Prefixes (76C/VW)

Set up VAT withholding prefixes to identify the G/L offset accounts that are used to account for VAT withholding. Complete the Codes field with the first two characters of the G/L offset account.

The system compares the first two characters of the G/L offset account in the Tax Detail - Work File (F76CUI02) table to the values in the Codes field when you run the DIAN Source Withholding Made program (R76C4F20) to determine which tax amounts to include when reporting for format 1002.

For example, you might set up these codes:

Codes | Description
RI | EIDE
RC | RCTO

DIAN Writeoff Codes (76C/WO)

Set up write-off codes to specify the reasons for refunds and discounts. The codes that you establish must match the codes that exist in the Reason Code (03B/RC) UDC table. When you run the DIAN Incomes Received program (R76C3F70), the system compares the values in the 76C/WO UDC table to the codes in the 03B/RC UDC table and writes records to the DIAN Formats File by Invoice (F76C4F02) temporary table only when a match between the two UDC tables exists.

#### Setting Up UDCs for Accounts Payable Transactions for Colombia

Before you process accounts payable transactions for Colombia, set up these UDC tables:

Recycle Voucher (76C/RC)

This UDC specifies the recycling report version that you use for accounts payable and accounts receivable transactions. For accounts payable transactions, enter the version number for the Recycle Recurring Vouchers program (R048101) in the Codes field. In the Description 02 field, enter the version number of the Voucher Entry MBF Processing Options program (P0400047) in which exists the date that the system uses to retrieve the exchange rate for recycled vouchers.

Tax Payer Type (76C/TC)

Tax payer types indicate whether VAT and withholding taxes apply to the third-party for which you are creating an address book record. The system uses this field when creating tax settlements during voucher entry. Examples of values are:

G: Large self-withholding tax payer

H: Large non self-withholding tax payer

A: Common non self-withholding regime

C: Common self-withholding regime

S: Simplified regime

### Setting Up Address Book Information for Colombia

This section provides an overview of address book information for Colombia and discusses how to set processing options for Address Book Colombian Additional Information (P76C0101).

#### Understanding Address Book Information for Colombia

When you enter address book records in Colombia, you complete Colombia-specific information in the Address Book Colombian Add Info program (P76C0101). In addition to entering Colombia-specific information, this program enables you to turn off the validation of the Tax ID number and enter foreign Tax IDs with alpha characters.

To turn off the validation of the tax ID and enter a foreign tax ID that includes alpha characters:

1. Set up a value in the Tax Payer Type UDC table 76C/TC for foreign suppliers that includes E in the Special Handling Code field.

2. Assign the tax payer type to the foreign supplier by entering the value in the Tax Payer Type – Colombia field on the Colombian Additional Information Revisions form.

   The assignment of a tax payer code with a value of E in the Special Handling Code field informs the system to turn off the validation of the tax ID number.

3. Enter the foreign tax ID in the Tax ID – Colombia field on the Colombian Additional Information Revisions form.

   The system enables you to enter the tax ID with alpha characters and does not validate the number.

In addition to completing the fields on the Colombian Additional Information Revisions form, you must complete these fields on the Address Book Revision form in the base software:

Field | Description
Address Line 3 and Address Line 4 (Mailing tab) | The system uses the values in these fields when you report account activity electronically.
Person/Corporation (Additional 1 tab) | Complete this field for tax reporting purposes.
Add'l Tax ID (Additional 1 tab) | Complete this field for tax reporting. You must complete the first four characters with the economic activity of the company, the fifth and sixth characters with the informant entity type, and the seventh and eighth characters with the economic group entity type.

See Also

(COL) Entering Additional Address Book Information

How to Validate Tax IDs in Latin American Countries

#### Setting Processing Options for Address Book Colombian Additional Information (P76C0101)

Set this processing option before you enter company, customer, and supplier information for Colombian companies and individuals. The system uses the values in this processing option for county-specific processing.

General

Enter “1” to allow NIT's Duplicity | Specify whether the system allows duplicate tax identification numbers(Número de Identificación Tributaria [NIT]). Values are: Blank: Do not allow duplicate NIT numbers. You must leave this processing option blank, as the duplicity of NIT numbers is controlled by parent-child relationships. 1: Allow duplicate NIT numbers.

Display

Enter “1” to call the Colombian Tax Information | Specify whether to automatically display the Colombian Additional Information Revisions form when you enter a new address book record. Values are: Blank: Do not automatically display the form. 1: Automatically display the form.

### Setting Up Cost Accounts for Depreciation and Inflation Adjustments for Colombia

This section provides an overview of cost inflation adjustments and cost accounts for depreciation, and discusses how to:

- Set up cost accounts for inflation adjustments.

- Set up cost accounts for depreciation adjustments.

See Also

Setting Up Depreciation Default Values

#### Understanding Cost Inflation Adjustments

For accurate financial reporting and income tax, Colombian companies adjust the cost amounts of their assets for inflation. These adjustments are recorded in fixed asset inflation adjustment accounts according to the government’s requirements. The asset’s adjusted cost, along with the depreciation inflation adjustment, is used to calculate depreciation.

Note. To adjust current period cost adjustment amounts for inflation, make the cost adjustments before you perform inflation adjustment for the current period. Otherwise, make the cost adjustments after you perform inflation adjustment for the current period.

You set up cost inflation adjustments accounts by company, entering the information by each company and cost account and specifying the related credit (monetary correction) and debit accounts that the system uses to generate the inflation adjustment journal entry. If you use only one ledger, the debit account is the cost inflation adjustment account. If you use two ledgers (subledger for inflation adjustments), the debit account is the same as the cost account. In either situation, the credit account is the monetary correction account.

#### Understanding Depreciation Inflation Adjustment Accounts

You set up depreciation inflation adjustments accounts by company. In the debit account (monetary correction) and the credit account, enter the accounts to be applied in the depreciation inflation adjustments journal entry. If you use only one book, the debit account is the depreciation inflation adjustment account. If you use two books (subledger for inflation adjustments), the debit account can be the depreciation account or the depreciation inflation adjustment account. In either situation, the debit account is the monetary correction account. The system uses the debit and credit accounts to create the inflation adjustment journal entry.

Note. If you do not set up cost accounts in this application, the system does not generate the journal entry.

#### Forms Used to Set Up Cost Accounts for Depreciation and Inflation Adjustments

Form Name | FormID | Navigation | Usage
Adjustment by Inflation to Cost / Deferred Charges Revision | W76C1201B | Fixed Assets (G76C16), Adjustment by Inflation to Cost / Deferred Charge Click Add on the Work With Adjustment by Inflation to Cost / Deferred Charges form. | Set up new cost accounts.
Adjustments by Inflation to Depreciation Revision | W76C1202B | Fixed Assets (G76C16), Adjustment by Inflation Depreciation / Amortization Click Add on the Work With Adjustments by Inflation to Depreciation form. | Set up cost accounts for depreciation inflation adjustments.

#### Setting Up Cost Accounts for Cost Inflation Adjustments

Access the Adjustment by Inflation to Cost / Deferred Charges Revision form.

Note. If you do not set up cost accounts in this application, the system does not generate the journal entry.

Cost Business Unit | Specify the business unit to which the system charges original acquisition cost and any supplemental capital additions. The system uses a default value for this field based on the business unit that you specify on the Asset Master Revisions form when you create a new asset master record. You can change this default value on the Depreciation Information form only if you have not entered any transactions for the account.
Cost Object Account | Specify the object account to which the original acquisition cost and any supplemental capital additions have been charged. If the asset is a noncapitalized lease, this should be the expense account to which lease payments are charged. This expense account should have default coding instructions set up for method 00 (no depreciation method used).
Cost Subsidiary Account | Specify the subsidiary account to which the original acquisition cost and any supplemental capital additions have been charged.
Debit Business Unit | Specify the debit business unit to which the system charges the accumulated depreciation amount.
Debit Object Account | Specify the debit object account to which the system charges the accumulated depreciation amount.
Debit Subsidiary Account | Specify the debit subsidiary account to which the system charges the accumulated depreciation amount. Subsidiary accounts include detailed records of the accounting activity for an object account.
Credit Business Unit | Specify the credit business unit to which the system charges the accumulated depreciation amount.
Credit Object Account | Specify the credit object account number to which the system charges the accumulated depreciation amount.
Credit Subsidiary Account | Specify the credit subsidiary account to which the system charges the accumulated depreciation amount.

#### Setting up Cost Accounts for Depreciation Adjustments

Access the Adjustments by Inflation to Depreciation Revision form.

Company | Specify the code that identifies the specific organization, fund, or other reporting entity for which you set up the depreciation inflation adjustment accounts.
Cost Business Unit | Specify the business unit to which the system charges original acquisition cost and any supplemental capital additions. The system uses a default value for this field based on the business unit that you specify on the Asset Master Revisions form when you create a new asset master record. You can change this default value on the Depreciation Information form only if no transactions exist for the account.
Cost Object Account | Specify the object account to which the original acquisition cost and any supplemental capital additions have been charged. If the asset is a noncapitalized lease, this should be the expense account to which lease payments are charged. This expense account should have default coding instructions set up for method 00 (no depreciation method used).
Cost Subsidiary | Specify the subsidiary account to which the original acquisition cost and any supplemental capital additions have been charged.
Debit Business Unit | Specify the debit business unit to which the system charges the accumulated depreciation amount.
Debit Object Account | Specify the debit object account to which the system charges the accumulated depreciation amount.
Debit Subsidiary | Specify the debit subsidiary account to which the system charges the accumulated depreciation amount. Subsidiary accounts include detailed records of the accounting activity for an object account.
Credit Business Unit | Specify the credit business unit to which the system charges the accumulated depreciation amount.
Credit Object Account | Specify the credit object account number to which the accumulated depreciation amount is to be charged.
Credit Subsidiary Account | Specify the credit subsidiary account to which the accumulated depreciation amount is to be charged.

### Setting Up Payment Formats for Colombia

This section provides an overview of payment formats and discusses how to set up processing options for Print Automatic Payments - COL (R76C572).

#### Understanding Payment Formats for Colombia

After you assign payment print programs to payment instruments, you must review and revise, if necessary, the processing options for the formats used by the print programs. The payment print program that you assign to a payment instrument launches the version of the payment format when you process payments. For example, P04572 launches the R04572 program. To make changes to the processing options for the payment formats, access them from the Batch Versions program (P98305), entering R instead of P in the first position of the name of the payment format program. The processing options further define the format of each component of a payment instrument.

JD Edwards EnterpriseOne software provides these payment formats for Colombia:

Format | Description
R76C572 | Print Automatic Payments - COL Use this format to print checks.
R76C573 | A/P Special Check Attachment Use this format to print attachments. No processing options exist for this program.

#### Setting Processing Options for Print Automatic Payments - COL (R76C572)

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

Translation

Translation Program | Enter 1 to use the standard program to translate payment amounts from numbers to words. If you leave this processing option blank, the system uses the translation program associated with the payment currency, which is B76C0018 (Colombian pesos).

Payment

Payee Name | Enter 1 to print the payee name and number on the stub. If you leave this processing option blank, no payee information is printed.

Conversion

First Line Size and Second Line Size | Specify the size of the first line or the second line of the check format. If you leave these processing options blank, the system prints up to 60 characters for each line.

Print

IVA or Discount (impuesto al valor agregado [VAT] or discount) | Enter 1 or leave this processing option blank to print IVA. Enter 2 to print discounts.