## (JPN) Setting Up Country-Specific Functionality for Japan

This chapter discusses Japan-specific setup and processes that you use in addition to the standard setup and processes provided in the base software, and discusses how to set up:

- User-defined codes (UDCs).

- Supplier information.

- Withholding schedules for Japan.

- Hankin hante payments and drafts for Japan.

- Payment formats for Japan.

- Life months for fixed asset conversions.

### Setting Up UDCs for Japan

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

- Accounts receivable transactions.

- Accounts payable transactions.

- Bank accounts.

- Fixed assets

- Languages.

  See Setting Up UDCs for Accounts Payable.

#### Setting Up UDCs for Accounts Receivable Transactions for Japan

To use the JD Edwards EnterpriseOne Accounts Receivable system for Japan, set up UDCs for receipts and drafts.

Receipt Type - Japan (75/RE)

Set up UDCs to identify each type of receipt that you want to include in the summarized invoices (Kagami) that you print. For example, you can set up codes for these types of receipts:

- RA - A - Adjustment

- RC - C - Cash receipts

- RK - A - Cash receipts - check

- RO - A - Reversing or void

- RV - A - Insufficient funds

- RA - A - Chargeback

- R1 - D - Draft

Draft Status Code (75/PS)

Set up this user defined code to identify the status of Japanese drafts. Set up these codes:

- #: Selected

- D: Received

- G: Remitted

- P: Paid (discounted drafts)

- R: Updated (discounted drafts)

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

The JD Edwards EnterpriseOne Accounts Payable system for Japan requires that you set up UDCs for payment instruments and withholding tax.

Payment Instruments (00/PY)

To process discounted drafts in Japan, you must define a special payment instrument for discounted drafts. The system uses the special payment instrument with the RD3x automatic accounting instruction (AAI) to create the contingent liability transactions for discounted drafts.

For Japan, set up these values in UDC 00/PY:

- D - Draft by invoice (AR & AP).

- Q - Bank transfer - Japan.

You must also set up a payment instrument to calculate withholding for Japan.

Withholding Tax Category (75/WT)

Set up codes to identify each type of withholding tax category that your company uses. For Japan, set up codes for these withholding tax authority types:

- Blank: without calculation

- 1: Resident

- 2: Nonresident

- 3: Attorney

See Setting Up UDCs for Accounts Payable.

#### Setting Up UDCs for Bank Accounts for Japan

You must set up Japanese-specific UDCs to identify bank transfers for accounts.

Bank Transfer Type (75/TT)

Set up UDCs to identify each type of bank transfer that your company uses. For Japan, set up codes for these bank transfer types:

- Blank: Default.

- E: Express bank transfer with bank charge.

- L: Letter bank transfer with bank charge.

- 7: Express bank transfer without bank charge.

- 8: Letter bank transfer without bank charge.

  See Understanding the Create Payment Control Groups Program.

#### Setting Up UDCs for Fixed Assets for Japan

Before you work with fixed assets for Japan, set up these UDC tables:

System 12 Category Code

You must set up a system 12 category code with values to specify whether a record is processed. When you run the Assets acquired on or before March 31 - 2007 program (R75J501) or the Assets acquired on or after April 1 - 2007 program (R75J502), the system:

- Reads the value in a processing option to identify which category code includes the values used to specify whether a record is processed.

- Selects asset records that do not have a value of Y in the specified category code field of the F1201 record.

- Writes a Y to the specified category code field of the F1201 record after it processes the record.

  The programs process a record only once; after a record is marked as processed the system does not select it for processing again.

You can set up any UDC table from 12/F1–12/F0 with the values to indicate if a record was processed. UDCs 12/F1–12/F0 correspond to category codes 11–20 in the JD Edwards EnterpriseOne Fixed Assets system.

Set up these values in the category code that you want to use:

Code | Description
(blank) | Not processed
Y | Processed

JD Edwards EnterpriseOne Fixed Asset System UDC Tables

The JD Edwards EnterpriseOne Fixed Asset system UDC tables that must be set up before you can calculate depreciation for Japan are:

- Apportionment Code (12/AC)

- Computation Method - ITD / Rem (12/DI)

- Depreciation Method (12/DM)

Life Month Group Code (75J/GC)

You set up the Life Month Group Code (75J/GC) UDC table to enable you to group related relationships between existing life months and the life months to which you convert assets. You assign life month group codes to the relationships that you set up in the Set Up for Life Month program (P75J503).

The system uses the life month group code to select the relationship to use when you run the Assets acquired on or before March 31 - 2007 program (R75J501) and the Assets acquired on or after April 1 - 2007 program (R75J502). Because both programs enable you to use the values in this UDC table, consider setting up a different life month group code for each of the programs. If you set up different life month group codes, you can differentiate between the relationships that you set up for assets acquired before or after April 1, 2007.

Examples of codes are:

Code | Description
001 | Assets acquired on or before March 31, 2007
002 | Assets acquired on or after April 1, 2007

#### Setting Up UDCs for Languages for Japan

In addition to setting up the standard UDCs for the JD Edwards EnterpriseOne Address Book system, you must set up these Japanese-specific UDCs for language preferences.

Language Preference Codes (01/LP)

Language preference codes specify the language for documents such as invoices and statements and reports. Before any translations become effective, a language code must exist at either the system level or in your user preferences.

The language preference codes work in conjunction with vocabulary overrides to select the correct language translation. Examples include:

DU: Dutch

E: English

F: French

For Japan, a 3 is required in the Special Handling Code field of UDC table 01/LP to enable the Secondary Alpha Name field of an address book record to allow Kana names. The 3 in the Special Handling Code field also enables searching the Description field on the Business Unit form.

### Setting Up Supplier Information for Japan

This section provides an overview of the additional supplier information required for Japan, lists prerequisites, and discusses how to set up supplier information.

#### Understanding Supplier Information for Japan

In Japan, in addition to the standard supplier information, you must set up information that is required to process drafts and bank transfers. This additional information includes:

- Payee address number

- Bank transfer type

- Payment term

- Withholding tax category

- Draft ratio

Table | Stored Information
Supplier Master (F0401) | Includes supplier information.
Address by Date (F0116) | Includes mailing address information.
Bank Transit Master (F0030) | Includes bank account information.
Japanese A/B Tag Table (F750401) | Includes additional address book information that is maintained by the country server for Japan.

You can access the additional information for a supplier from the Supplier Master Information form when you add a new supplier to the system or change the information for an existing supplier.

See (JPN) Setting Up Supplier Information for Japan.

#### Prerequisites

Before you complete the tasks in this section:

- Set up payment terms for drafts.

  See Setting Up Standard Payment Terms.

- Set up values in the Bank Transfer Type (75/TT) UDC table for transfer types.

#### Form Used to Set Up Supplier Information for Japan

Form Name | FormID | Navigation | Usage
Work With Supplier Master | W04012D | Supplier & Voucher Entry (G0411), Supplier Master Information | Select an existing record.
Supplier Master Revisions | W04012A | Locate and select an existing record, then click Select. | Access the Japan-specific address book form.
Address Book Revision Japan | W01054JPA | Select Regional Info from the Form menu. | Enter the supplier information for Japan.

#### Setting Up Supplier Information for Japan

Access the Address Book Revision Japan form.

Bank Transfer Type | Specify the type of bank transfer. You define bank transfer types in the Bank Transfer Type UDC (75/TT). Values are: E: Express bank transfer with bank charge. L: Letter bank transfer with bank charge. 7: Express bank transfer without bank charge. 8: Letter bank transfer without bank charge.
Payment Terms | Enter the code that is used as a default payment term to calculate a maturity date when you create draft payments.
Withholding Tax Category | Enter a tax category code that determines the withholding tax amount charged on professional services.
Draft Ratio | Enter the percentage of the hankin hante payment that is split to a draft payment by Japan's automatic split (hankin hante) process. This number is expressed as a whole decimal. For example, 20 percent would be expressed as .2000.

### Setting Up Withholding Schedules for Japan

Use the Withholding Revisions - Japan program to set up schedules for withholding for suppliers. You set up schedules for the different types of suppliers. For example, you might set up a schedule for a resident supplier and one for a non resident supplier.

This section lists the forms used to set up withholding and discusses how to set up withholding schedules.

#### Form Used to Set Up Withholding

Form Name | FormID | Navigation | Usage
Enter Withholding Information | W75014A | Japanese Localization (G75J), Withholding Revisions - Japan Click Add on the Withholding Inquiry form. | Set up withholding schedules.

#### Setting Up Withholding Schedules

Access the Enter Withholding Information form.

Withholding Tax | Enter the tax category code that determines the withholding tax amount charged on professional services.
Currency Code | Enter the code that identifies the currency of a transaction.
Taxable Amount | Enter the amount on which taxes are assessed.
Percent Withholding | Enter the rate of withholding tax retained from a payment to a supplier. This number is expressed as a decimal. For example, 20 percent is expressed as .2000.
Deduction Amount | Enter the amount that is deducted before calculating withholding tax on administrative professional services.

### Setting Up the System for Hankin Hante Payments and Drafts for Japan

This section provides overviews of the required setup for hankin hante payments and the stamp tax table, lists prerequisites, and discusses how to:

- Set up payment split and draft split amounts.

- Set up the stamp tax table.

#### Understanding the Required Setup for Hankin Hante Payments

Before you automatically split hankin hante payments into drafts and bank transfer payments, or split drafts into smaller drafts, you must set up the Hankin Hante Split Amounts table (F75J04SA) with the split amounts for bank transfers and drafts. When you access the F75J04SA table using the Hankin Hante Split Amounts program (P75J0411), you select an option to specify whether to set up payment splits or draft splits. When you specify to set up payment splits, you create a list that the system uses to determine the amounts at which to split a hankin hante payment into a draft and a bank transfer. When you specify to set up draft splits, you create a list that the system uses to determine the amounts at which to split draft payments.

You must set up the F75J04SA table with a list of payment splits before you can run the Automatic Payment Split - Hankin Hante program (R75J04PS), and you must set up the F75J04SA table with a list of draft splits before you can run the Automatic Draft Split - Hankin Hante program (R75J04DS) . If you do not set up the F75J04SA table with the appropriate lists, the Automatic Payment Split - Hankin Hante and Automatic Draft Split - Hankin Hante reports print an error message, and the programs do not split the payments or drafts.

Generally, you set up payment splits and draft splits once and modify them only when your company changes its hankin hante payment policy.

#### Understanding the Stamp Tax Table

When businesses in Japan issue drafts for payment, they are required to pay a stamp tax. The tax amount depends on the amount of the draft.

To calculate and report on the stamp tax for accounts payable drafts, you must set up and maintain the Stamp Tax - Japan table (F75013) through the Stamp Tax Revision - Japan program (P75013).

Note. The Stamp Tax Revisions form is not a multicurrency form. The system recognizes only your company currency for the records in the F75013 table.

#### Prerequisites

Before you complete the tasks in this section:

- Assign the same payment instrument to each supplier for which you want to split payments into drafts and bank transfers.

  See Setting Up Payment Instruments and Print Programs.

- Assign a draft ratio to each supplier.

  See Setting Up Supplier Information for Japan.

#### Forms Used to Set Up Payment Split and Draft Split Amounts and the Stamp Tax Table

Form Name | FormID | Navigation | Usage
Set Up Hankin Hante Split Amounts | W75J0411A | Japanese Localization (G75J), Hankin Hante Split Amounts | Select Payments or Drafts. Select Payments to set up or modify the split amounts that the system uses to determine the levels at which to split Accounts Payable payments into bank transfers and drafts. Select Drafts to set up or modify the split amount that the system uses to determine the levels at which to split drafts into smaller drafts.
Stamp Tax Revision - Japan | W75013A | Japanese Localization (G75J), Stamp Tax Revision - Japan | Revise the stamp tax table.

#### Setting Up Payment Split and Draft Split Amounts

Access the Set Up Hankin Hante Split Amounts form.

Payments | Select to specify that the split amount is for payments.
Drafts | Select to specify that the split amount is for drafts.
Split Amount | Enter the amount at which the system splits payments or drafts in the Hankin Hante process. The system stores split amounts for payments and drafts in the F75J04SA table. The Automatic Payment Split - Hankin Hante program (R75J04PS) uses the split amounts to determine the level breaks for creating drafts and bank transfer payments. When you run the R75J04PS program, the system: Applies the value in the Draft Ratio (data item DRATIO) field that is specified for each payee to the selected AP payments to determine the maximum draft amount. For example, if the draft ratio is 50 percent, then no more than 50 percent of the total payment can be a draft. Reads the F75J04SA table to determine the highest split amount that is less than or equal to the result of applying the draft ratio to the payment. For example, if payment split amounts are defined in 100,000 yen increments beginning with 100,000 yen, a payment of 420,000 yen with a 50 percent draft ratio is split into a 200,000 yen draft and a 220,000 bank transfer payment. The Automatic Draft Split - Hankin Hante program (R75J04DS) uses the split amounts that you set up for drafts to split AP drafts into smaller drafts. During the automatic draft split process, the original draft is split into two or more smaller drafts using either the split amounts that are identified here, or using a fixed amount. You set a processing option to specify whether the system uses the split amount levels in the F75J04SA table or a fixed amount at which to split a payment. If you use the levels in the F75J04SA table, each split uses the highest draft split amount that is stored in the table that is less than or equal to the remaining amount. For example, if draft split amounts are defined in 200,000 yen increments beginning with 100,000 yen, a draft of 475,000 yen would be split into three drafts of 300,000 yen, 100,000 yen, and 75,000 yen.

#### Setting Up the Stamp Tax Table

Access the Stamp Tax Revision - Japan form.

Payment Amount (More Than) | Enter the amount of the payment.
Stamp Tax | Enter the amount that is assessed and payable to tax authorities. It is the total of the value-added tax , use, and sales taxes (PST).

### Setting Up Payment Formats for Japan

This section provides an overview of payment formats for Japan and discusses how to:

- Set processing options for the Create A/P Bank Tape - Japan (R04572JP) program.

- Set processing options for the Print Automatic Payments - Draft Format (R04572N) program.

#### Understanding Payment Formats for Japan

JD Edwards EnterpriseOne software provides these payment formats for Japan:

Format | Description
Payment formats | Specify the Create A/P Bank Tape - Japan program (R04572JP) as the Write program to generate the payment format that is accepted by Japanese banks.
Attachments | Specify the Japan Bank Transfer Paper program (R04573JP) as the Attachment program to generate the attachments for accounts payable bank transfers for Japan.

#### Setting Processing Options for Create A/P Bank Tape - Japan (R04572JP)

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

Tape

Use these processing options to specify the default values for the bank tape.

Device Name | Specifies the name of the device.
Tape Density | Specifies the density of the tape to be created, for example, 1600, 6250, and so on.
Label Name | Specifies the Label Name.
Block Size | Specifies the Block Length.
New Volume | Specifies the New Volume name.

Tape (more)

New Owner ID | Specifies the new owner ID.
File Name | Specifies the name of a file as it is known to a program.

#### Setting Processing Options for Japan Bank Transfer Paper (R04573JP)

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

Date Selection

Selection Number | Enter 01 to use the Japanese date format. If you leave this processing option blank, the system uses the Western date format.

### Setting Up Life Months for Asset Conversion

This section provides an overview of the setup for life months and discusses how to:

- Create the relationship between life months.

- Import life month data from a spreadsheet.

#### Understanding the Setup for Life Months

When you set up user-defined depreciation, you specify the life months for the depreciation method. The life months is a value to express the life of the asset. For example, an asset that has a usable life of 5 years and that you depreciate on a 12-month calendar year would have a life month value of 60. Because of changes in the requirements for how assets are depreciated, you might need to convert the life months for an asset to a new value.

You use the Set Up for Life Month program (P75J503) to set up relationships between current life months and the life months to which you must convert the asset. You also specify the effective date of the relationship. The system saves the setup information to the Setup for Life Month table (F75J503). When you run the Assets acquired on or before March 31 - 2007 program (R75J501) or the Assets acquired on or after April 1 - 2007 program (R75J502), the system accesses the F75J503 table to determine the new value that the system writes to the Life Month field (data item ADLM) in the F1202 table. Alternatively, you can use a processing option in the Assets acquired on or before March 31 - 2007 program or the Assets acquired on or after April 1 - 2007 program to specify the new life month value.

You can set up different relationships between one current life month and numerous life months to which you might convert your assets. You use the Life Month Group Code field to differentiate between the relationships that you set up. You use a processing option in the Assets acquired on or before March 31 - 2007 program and Assets acquired on or after April 1 - 2007 program to specify which life month group code to use, and so specify which relationship to use. The combination of the life month group code and current month must be unique because the system uses those values to select the value of the new life month to write to the Asset Account Balances File table (F1012).

For example, you might enter values in the Set Up for Life Month program as shown in this table:

Life Month Group Code | Life Month Before | Life Month After
001 | 60 | 120
002 | 60 | 72
003 | 60 | 48

Importing Data from a Spreadsheet

You can import the data for the Set Up for Life Month program from a Microsoft Excel© spreadsheet instead of entering the data manually. When you import data:

- The columns in the spreadsheet must be in the order that the data appears on the forms in the Set Up for Life Month program.

  All fields are required. Your spreadsheet must have columns for each of the four fields, and the columns must contain data.

- The data must be valid values in your JD Edwards EnterpriseOne system.

  For example, the data that you import for the Life month group code field must be a valid value in the Life Month Group Code (75J/GS) UDC table, and the date for the Effective Date From field must be in the date format set up in your system.

If your data is not complete or is in an invalid format, you can change it in the Setup for Life Month - Import Assistant form after you import the data, but before save the data. If the data is not valid when you click Continue to save the data, the system displays an error message.

#### Forms Used to Set Up Life Months

Form Name | FormID | Navigation | Usage
Work with Setup for Life Month | W75J503A | Japan Fixed Assets (G75J12), Life Months Relation Setup | Review and select existing records.
Add Setup for Life Months | W75J503B | Click Add on the Work with Setup for Life Month form. | Specify the relationship between an existing life month for an asset and the life month to which the asset will be converted. Note. You can enter only one relationship when you use this form.
Setup for Life Month | W75J503C | On the Work with Setup for Life Month form, select Multiple Life Month from the Form menu. | Manually enter multiple life month relationships.
Setup for Life Month - Import Assistant | n/a | On the Work with Setup for Life Month form, select Multiple Life Months from the Form menu. On the Setup for Life Month form, select Import Grid Data from the Tools menu. | Import data for life months from a spreadsheet.

#### Setting Up Effective Dates for Life Months

Access the Add Setup for Life Months form or the Setup for Life Month form.

Life month Group code | Enter a value that exists in the Life Month Group Code (75J/GS) UDC table to specify the group to which the relationship between the current and proposed life month exists. The system uses this value to identify which relationship includes the proposed life month that you want the system to write to the F1202 table.
Effective Date From | Specify the date on which the relationship between the life month before and life month after becomes effective.
Life Month Before | Enter the life month that is in effect prior to converting assets from one depreciation schedule to a new schedule.
Life Month After | Enter the life month that the system writes to the F1202 table to replace the existing life month when you run the Assets acquired on or before March 31 - 2007 program or Assets acquired on or after April 1 - 2007 program.

#### Importing Life Month Data from a Spreadsheet

To import life month data from a spreadsheet:

1. Access the Setup for Life Month - Import Assistant form.

2. Select the Import from Excel option.

3. Use the Browse button to navigate to the spreadsheet, and select the spreadsheet.

4. Complete the fields in the Define Cell Range area to specify the range of cells to import.

5. Click Preview.

   The system populates the fields for the life months with the data from the spreadsheet.

6. Review and change the information, if necessary, and then click Continue in the menu bar.

   The system returns you to the Setup for Life Month form and completes the fields for the life months.