## (ARG) Processing Credit Invoices for Accounts Payable

This chapter provides an overview of credit invoices, lists prerequisites, and discusses how to:

- Enter vouchers for credit invoices.

- Enter credit invoice receipts.

- Reclassify fiscal credit.

### Understanding Credit Invoices for Accounts Payable for Argentina

The AFIP (Administraćion Federal de Ingresos Públicos) issues credit invoices to provide companies with a payment instrument that can be negotiated and used as a credit. This need arises when banks do not borrow money and companies are faced with a lack of liquidity.

From an accounts payable standpoint, the credit invoice represents a documented debt with the supplier, which is canceled when due.

Credit invoices also modify the time when the fiscal credit is accepted. Ordinarily, the fiscal credit is accepted when the voucher is entered. If the voucher requires a credit invoice, the fiscal credit is accepted at a later date.

### Prerequisites

Before performing the tasks in this section:

- Set up UDCs.

  See Setting Up UDCs for Credit Invoice Processing for Argentina.

- Set up AAIs.

  See Setting Up AAIs for Credit Invoice Processing for Argentina.

- Set up company constants for accounts payables.

  See Setting Up Credit Invoice Constants for Accounts Payable for Argentina.

- Set up temporary tax areas.

  See Setting Up Tax Area Relationships for Credit Invoices for Argentina.

- Set up credit invoice status rules.

  See Setting Up Credit Invoice Status Rules for Argentina.

- Set up payment instruments.

  See Setting Up Payment Instruments for Credit Invoices for Argentina.

### Entering Vouchers for Credit Invoices for Argentina

This section provides overviews of vouchers for credit invoices, how to change the status of a credit invoice, the process to accept credit invoices, and the process to reject credit invoices; lists a prerequisite, and discusses how to enter vouchers for credit invoices.

#### Understanding Vouchers for Credit Invoices

Vouchers require a credit invoice when these conditions are met:

- The supplier has been classified (with an address book category code) as a credit invoice issuer.

  You specify the address book category code to use to identify credit invoice issuers in the General Constants program (P76A20).

- The gross invoice amount exceeds the required minimum amount that is specified in the General Constants program.

- The payment terms are not listed in the Payment Terms code (76A/TP) UDC table.

  This UDC lists payment terms that do not require a credit invoice.

When you enter a voucher that meets these requirements, the system modifies the tax area of the voucher and replaces it with a similar percentage tax area that charges a transitory account. You set up these tax areas using the AP Tax Areas Relationship program (P76A25).

After the voucher is entered, you can enter the credit invoice.

Modifying Vouchers with a Credit Invoice

You can modify only unposted vouchers.

When you modify the voucher information, the system verifies that the credit invoice requirements are met for amounts, payment terms, and tax area. The system also verifies that the AP Credit Invoice Status Rules program (P76A26) is set up to enable voucher modifications.

If a credit invoice is no longer required, the credit invoice information is deleted.

If the modified voucher still requires a credit invoice, you must enter the credit invoice. During payment processing, the system verifies that the credit invoice was entered.

Voiding Vouchers with a Credit Invoice

You can void only unposted vouchers with credit invoices that still have an initial status. When you void these vouchers, all of the information from the credit invoice is also deleted.

#### Understanding How to Change the Status of a Credit Invoice

Every credit invoice has a status that is associated with it. The status determines whether the credit invoice is available for processing different events in the credit invoice cycle.

The system stores the rules that it uses to perform these validations in the Credit Invoice Status Rules table (F76A26). Set up these rules to meet your needs.

Set up the initial status for credit invoices in the General Constants program (P76A20).

For example, you might create a rule that enables you to review a credit invoice before accepting it.

If the initial status is 01, you could set up these status rule to advance the status to 05 (To Accept) when you use the AP Review Credit Invoice program (P76A24) to review the credit invoice:

Accounts Payable Event | Credit Invoice Status From | Credit Invoice Status To
FACCREDCHG | 01 (Initial) | 05 (To Accept)

After you review the credit invoice, this status rule advances the status when you run the acceptance process:

Accounts Payable Event | Credit Invoice Status From | Credit Invoice Status To
ACCEPTANCE | 05 (To Accept) | 10 (Accepted)

#### Understanding the Process to Accept Credit Invoices

After the credit invoice information has been created, you must accept or reject the credit invoice in accordance with the AFIP general resolution.

Accepting credit invoices tells the supplier that you are in agreement with the credit invoices that you have received and documents the original debt. The system cancels the original vouchers and generates new ones to reflect the new obligations.

Vouchers that require a credit invoice must use the payment instrument that is specified in the General Constants program (P76A20).

To approve credit invoices:

1. Approve the voucher for payment.

2. Change the credit invoice status to the one that is required for its acceptance, as established in the status rules.

3. Run the Create Payment Group program (R04570), using the new credit invoice obligation account as the bank account.

   This account must be set up as the bank account in the Bank Account Information program (P0030G). In the data selection of the Create Payment Group program, you must specify the payment instrument for credit invoices. The payment instrument must match the one that is specified in the General Constants program.

   This process generates a new voucher, using the document type that is set up in the Description 02 field of the Special Payment Instruments (76A/PY) UDC table for the corresponding withholding net amounts of the voucher.

4. Use the Print function to issue a payment order for the payment group that you created in the previous step.

   This payment order is used as the acceptance detail that you give to the supplier.

5. To update the payments, create new matching versions of these programs (for example, you could set up a version named ACEPTA001 for each of these programs):

   - Credit Invoice Acceptance (P04571).

   - A/P Auto Payment Register (R76A0476).

   - F0411 Tag File Maintenance (P760411A).

6. For the F0411 Tag File Maintenance - A program, set up the processing options on the Validate tab in this manner:

   - For processing option 1, enter 1 to incorporate the legal document type in the duplicate-invoice legal-number validation.

   - For processing option 2, specify H as the pay status to use if the invoice legal number is duplicated.

7. Run the Update function using the version of the Credit Invoice Acceptance program (P04571) that you set up.

   The update process:

   - Generates a new type FX voucher for the new obligation that is incurred by the acceptance of the credit invoice.

     The new FX voucher is created with an accepted status; it cannot be modified.

   - Cancels the outstanding amount of the original voucher through an automatic PK payment voucher that has the same number as the payment order.

     The number of the payment order is also assigned to the FX voucher.

   - Issues the corresponding tax withholdings.

   - Updates the credit invoice status in accordance with the status rules.

     Note. To cancel the credit invoice, you must create a payment group for the FX voucher.
     If the original voucher was made up of several items, you should create only one FX voucher for the net withholding total.
     If you pay the credit invoice in allotments, you must split the voucher by using the Speed Status Change program (P0411S) at the time you make the payment.

8. Use the Payment With Voucher Match program (P0413M) to locate the payment by using its payment number, and then void the payment.

   The system performs:

   - Verifies that the FX voucher has not been paid.

   - Updates the credit invoice status in accordance with the status rules.

   - Returns the status of the original voucher to pending.

   - Deletes the FX voucher.

Issuing Payments

When you use the Print function in the Credit Invoice Acceptance program (P04571) to issue payment orders, the system performs the validations that are based on the payment instrument.

If the payment instrument for acceptance is used, the system verifies that these conditions are met to correctly issue the payment:

- The supplier is set up to issue credit invoices.

- The voucher meets the conditions to require a credit invoice.

- The amount exceeds the minimum.

- The tax area has been set up for credit invoices.

- The payment terms generate a due date that exceeds the payment time limit that is specified in the General Constants program (P76A20).

- Credit invoice information has been recorded in the system.

- The credit invoice has the appropriate status for payment.

If the payment instrument corresponds to that of checks or another payment method, and the supplier is set up to issue credit invoices, the system verifies that these conditions are met to correctly issue the payment:

- The voucher meets the conditions to require a credit invoice.

- The amount exceeds the minimum.

- The tax area has been set up for credit invoices.

- The payment terms generate a due date that exceeds the payment time limit that is specified in the General Constants program (P76A20).

- Credit invoice information has been recorded in the system.

- The credit invoice status indicates that the credit invoice has been rejected due to cash payment.

If the payment instrument corresponds to that of checks or another payment method, and the supplier is not set up to issue credit invoices, the system issues the payment by using standard payment processing.

#### Understanding the Process to Reject Credit Invoices

You might reject a credit invoice if you decide to pay the original voucher within the established time limit that is stipulated in the AFIP general resolution or if the voucher has errors. You must change the credit invoice status to the status that is defined in the status rules to reject the credit invoice.

To reject credit invoices, complete these steps:

1. Use the AP Review Credit Invoice program (P76A24) to change the status of the credit invoice.

2. If you reject the credit invoice because you are paying cash, pay the voucher with a payment instrument that is different from the payment instrument that you use for credit invoice acceptance.

3. To take the fiscal credit that was originally assigned to the transitory account, run the AP Credit Invoice V.A.T. Restatement program (R76A0052).

See Also

Reclassifying Fiscal Credit for Argentina

#### Prerequisite

Set up the FACCREDCHG status rule.

See Setting Up Credit Invoice Status Rules for Argentina.

#### Forms Used to Enter Vouchers for Credit Invoices

Form Name | FormID | Navigation | Usage
Work with Credit Invoice Information | W76A24A | Credit Invoice System Set up (G76A00D), AP Review Credit Invoice | Locate vouchers and select pay items for which you enter a credit invoice.
Add, Change Credit Invoice Information | W76A24D | On the Work with Credit Invoice Information form, select a record and click Select. | Enter vouchers for credit invoices. Change the status of a credit invoice.

#### Entering Vouchers for Credit Invoices

Access the Add, Change Credit Invoice Information form.

DGI Transaction Doc. Typ. | Enter the legal document type given by DGI for documents.
Invoice Group | Enter the code that identifies the invoice group. Values are: A B C
Issue Place | Enter the place where the invoice or the shipment note is printed.
Invoice Legal Next Number | Enter the legal number, which is composed of the shipment place (ACEM), the invoice group (AGRP), and the next number (AINW). You cannot assign the same invoice legal next number to different vouchers for the same supplier.
Invoice Date | Enter the date that either you or the system assigns to an invoice or voucher. This can be either the date of the supplier's invoice to you or the date of your invoice to the customer.
Credit Invoice Status | Enter the code that represents the status of the credit invoice. You can change the credit invoice status only to a status that is specified in the Credit Invoice Status To field of a FACCREDCHG status rule.

### Entering Credit Invoice Receipts for Argentina

After you have accepted (paid) a credit invoice, you should receive a receipt from the supplier, which you must enter into the system.

This section lists a prerequisite and discusses how to enter credit invoice receipts.

#### Prerequisite

Set up the RECIBOFC status rule.

#### Form Used to Enter Credit Invoice Receipts

Form Name | FormID | Navigation | Usage
Enter Receipt Information | W76A24A | Credit Invoice System Set up (G76A00D), AP Review Credit Invoice On the Work with Credit Invoice Information form, select the credit invoice for which you enter a receipt, and click Select. On the Add, Change Credit Invoice Information form, select Receipt Information from the Form menu. | Enter the number and date for the receipt.

#### Entering Credit Invoice Receipts

Access the Enter Receipt Information form.

Receipt Number | Enter the value that is used as a cross-reference or secondary reference number. Typically, this is the customer number, supplier number, or job number. The system does not allow duplicate receipt numbers.
Receipt Date | Enter the date of the receipt for the current valuation layer transaction.

### Reclassifying Fiscal Credit for Argentina

This section provides an overview of the process for reclassifying fiscal credit and discuses how to:

- Run the AP Credit Invoice V.A.T. Restatement report.

- Set processing options for AP Credit Invoice V.A.T. Restatement (R76A0052).

#### Understanding the Process for Reclassifying Fiscal Credit

When you enter a voucher that requires a credit invoice, the system modifies the tax area of the voucher and replaces it with a similar percentage tax area that allocates the tax to a temporary value-added tax (VAT) credit tax account. The tax cannot be reported to the tax authority until the tax is reallocated to the final VAT credit tax account.

The AP Credit Invoice V.A.T. Restatement program (R76A0052) debits the temporary VAT credit tax account and credits the final VAT credit tax account. However, if the temporary and final VAT credit tax accounts are the same, no transferring entry is created.

Note. The original and replacement tax area must be set up in the AP Tax Areas Relationship program (P76A25). The system uses the PTxxxx AAIs that are associated with these tax areas to identify the temporary and final VAT credit tax accounts.

The AP Credit Invoice V.A.T. Restatement program also updates the status of the credit invoice using the RECLASIF event. The new status enables you to include these vouchers in the tax reports that are sent to the tax authority. You must accept or reject credit invoices either before or after you reclassify the fiscal credit.

The fiscal credit reclassification must occur within the fiscal period under which the voucher falls, or you lose the right to appropriate the money and must reclassify it to a loss account.

You should use data selection to select vouchers with a payment status that may be reclassified. For example, you might select vouchers with payment statuses for registered receipts or rejection due to cash payment.

#### Running the AP Credit Invoice V.A.T. Restatement Report

Select Credit Invoice System Set up (G76A00D), AP Credit Invoice V.A.T. Restatement.

#### Setting Processing Options for AP Credit Invoice V.A.T. Restatement (R76A0052)

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

General

Document Type | Enter a value that exists in the Document Type (00/DT) UDC table to identify the origin and purpose of the transaction.
Maximum Date | Enter the last date on which a fiscal credit can be claimed. After this date, the loss account is used. If you leave this processing option blank, no loss account is used.
Loss Account | Enter the account that is used for the loss of fiscal credit.