## (FRA) Working With French Functionality

This chapter provides an overview of bank account validation and draft remittance, and discusses how to:

- Closing accounting periods and a fiscal year.

- Run the French Derogatory Depreciation report.

- Work with automatic debits.

- Manage bad debts.

- Work with the D.A.S. 2 report.

- Work with the ETAFI interface.

- Process French value-added tax (VAT).

See Also

Closing the Fiscal Year

Closing Accounting and Reporting Periods

Managing Credit and Collections

### Understanding Bank Account Validation

To process bank transactions for France, the account information that you enter must be accurate to avoid service charges from the bank and possible rejection of electronic funds transfers. Electronic funds transfers can be rejected for payments; receipts can be rejected because of incomplete or incorrect account information.

The system automatically validates the Rélevé d'Identité Bancaire (R.I.B.), including the bank account and transit numbers, according to the standards set by the French banking authority. You must enter the R.I.B. key in the Control Digit field for the account information to be validated. The Modulus97 algorithm checks the R.I.B. key.

Note. In addition to online validation, you can run the Bank Account Exception Report (R00310) to verify that your account information is correct. When you run this report, the system verifies the account numbers based on a control digit (R.I.B. key) and the bank transit number.

### Understanding Draft Remittance for France

In France, drafts can be remitted to the bank on paper or electronically. When a draft is remitted to the bank, the bank charges a commission fee for processing the draft. The commission fee is subject to VAT (value added tax). If the draft is discounted, the bank calculates an additional fee that is based on the actual due date. The fee for discounting is also subject to VAT. You must create manual journal entries for these VAT entries.

Types of Drafts

These drafts must be accepted by the customer before they can be remitted to the bank:

- LCR - The supplier prints the draft with bank account information.

- LCC - The supplier prints the draft with bank name only.

- BOR - The customer prints the draft with bank account information.

- BOC - The customer prints the draft with the bank name only.

Automatic drafts, called Lettre de Change Magnétique (LCR Magnétique), do not require customer acceptance.

Référence Tiré

The référence tiré is a customer draft reference number that the company accepting the draft needs to enter on its draft record. This number must be included when the draft is remitted electronically because the bank uses the number to match the draft with the customer reference.

When you use electronic drafts, you should indicate a 10-character référence tiré on the draft file that is remitted to the bank. According to French banking standards, this reference must always be right-justified. If it is fewer than 10 characters, the remaining character spaces must be filled with zeroes. The system updates the référence tiré in the detail record of the bank file (record 06) in positions 21 to 30.

Use the Reference field to input the référence tiré. The Reference field is alphanumeric and cannot include any blanks, special characters, or punctuation marks. Although the Reference field is a generic field that can contain as many as 25 characters, only ten characters can be used for the French référence tiré. When the field is not used, it should remain blank.

The Reference field is included in these programs:

- Enter Our Drafts (P03B602, version ZJDE0001)

- Enter Customer Drafts (P03B602, version ZJDE0002)

- Draft Inquiry (P03B602, version ZJDE0001)

- A/R Draft Remittance Magnetic Tape Format program (R03B672T)

To access the Reference field, select Additional Information from the Form menu on the Drafts Entry form.

Draft Remittance Formats

You can use the Draft Remittance program (R03B672) to remit drafts in print or tape formats, depending on the program that you select in the appropriate processing option.

When you use the A/R Draft Remittance Magnetic Tape Format (R03B672T), the program generates the Drafts Standard Formatted Tape File table (F03B67OW). This table conforms to the French banking standards (AFB) for magnetic drafts (LCR Magnétiques). These standards are compatible with ETEBAC communication protocols.

The French LCR Magnétiques AFB standard bank file is 160 characters long and structured as follows:

- Header records - 03

- Detail records - 06

- Total records - 08

Table F03B67OW contains a 1500-character field that is labeled REAPTA; this field contains information that should be sent to the bank, formatted according to AFB standards.

You need to create a utility program to copy the appropriate information from table F03B67OW to a medium (diskette, email, or other) that can be sent to the bank.

Bank Input Code

Processing option 4 of the A/R Draft Remittance Magnetic Tape Format (R03B672T) enables you to indicate the Bank Input Code (Code Entrée) for the header record of the bank file (record 03) in position 79.

Sender's Bank ID

You enter the sender's bank ID in the Bank User Number field on the Revise BACS Information form. This number is updated in the header record (record 03) in positions 13 to 18.

You can access the Revise BACS Information form by choosing GL Bank Accounts from the Automatic Debiting menu (G03B131), and then selecting a bank account and choosing BACS Info from the Row menu.

### Closing Accounting Periods and a Fiscal Year in France

This section provides an overview of the tasks necessary to close a fiscal year in France and discusses how to:

- Running sequential number reports

- Running trial balance reports

#### Understanding Tasks for Closing a Fiscal Year

In France, in addition to performing the tasks to close a fiscal year, businesses must run the General Journal report in final mode to perform a final annual close. In final mode, the system includes records that have been flagged by the Trial Balance report to indicate that they have been printed in final mode. Flagging the records prevents the records from being printed again in final mode. An error message is printed on the report if any records have been printed in a previous final mode report. The word Final is printed on every page of a report that is run in final mode.

See Also

Trial Balance Reports

General Journal Reports

#### Running Sequential Number Reports

This table includes a description of additional reports that companies should run before they close an accounting period:

Task | Report | Description
Verify that document numbers are in sequence. | Sequential Number Report - Tax File (R74099A) Sequential Number Report - A/P Ledger (R74099B) Sequential Number Report - AR (R74099C and R74099D) | Identifies any interruption in the document number sequence and general accounting registration date sequence.

See (FRA) Reports for France.

#### Running Trial Balance Reports

This table includes a description of additional reports that French and Italian companies should run before they close an accounting period:

Task | Report | Description
Verify the accuracy of transactions in account ledgers. | T/B by Object and Subsidiary (R7409C3) and T/B by Category Code (R70472) | R7409C3 prints trial balances by object.subsidiary, and R70472 prints trial balances by category code 21, 22, or 23.

See (FRA) Reports for France.

### Running the French Derogatory Depreciation Report

This section provides an overview of the French Derogatory Depreciation report, lists prerequisites, and discusses how to set processing options for the French Derogatory Depreciation program (R7412855A).

#### Understanding the French Derogatory Depreciation Report

The French Derogatory Depreciation program (R7412855A) calculates the difference between the French Declining Balance ledger and the French Straight Line ledger, and posts entries to the general ledger when you run the report in final mode. The French Declining Balance ledger must be associated with an alternate tax ledger, such as the D1 ledger. The French Straight Line ledger is typically associated with the AA ledger, although another ledger might be used.

The report accurately creates journal entries only when these AAIs are set up:

- FF101 - Use this AAI to specify the account to which the system records the expense amount.

  The system records to this account when the difference between the French Declining Balance ledger and the French Straight Line ledgers is positive.

- FF102 - Use this AAI to specify the account to which the system records the derogatory depreciation amount.

  This account is the offset account.

- FF103 - Use this AAI to specify the account to which the system records depreciation reversal amounts.

  The system records to this account when the difference between the French Declining Balance ledger and the French Straight Line ledgers is negative.

The French Derogatory Depreciation program calculates the difference between the French Declining Balance ledger and the French Straight Line ledger by subtracting the amount in the French Straight Line ledger from the amount in the French Declining Balance ledger. If the resulting amount is greater than 0 (zero), the report shows a debit for the depreciation expense account in the amount of the resulting amount and a credit for the derogatory depreciation account in the amount of the resulting amount. If the result of subtracting the amount in the French Straight Line ledger from the amount in the French Declining Balance ledger is less than 0 (zero), the report shows a debit for the derogatory depreciation account in the amount of the resulting amount and a credit for the depreciation reversal account in the amount of the resulting amount.

If you complete the G/L Post (R09801) processing option with a valid version of the General Ledger Post Report program (R09801), the system posts the associated journal entries when the report is run in final mode. The system also produces an additional report that shows amounts that the system posts to the accounts.

See Also

User-Defined Depreciation

#### Prerequisites

Before running this report:

- Verify that the French Straight Line depreciation method (Method 19) is associated with the AA ledger.

- Verify that the Declining Balance depreciation method (Method 20) is associated with an alternate tax ledger, such as the D1 ledger.

- Verify that these automatic accounting instructions (AAIs) are set up:

  - FF101

  - FF102

  - FF103

- Compute depreciation on the fixed assets for the current period.

#### Setting Processing Options for French Derogatory Depreciation (R7412855A)

Set these processing options to specify how the system runs and prints the report and the information it uses.

Processing

Use these processing options to specify the mode in which to run this program, how to summarize information, and the dates, document types, and ledger types to use.

1. Process mode | Specify the mode in which to run this program. Values are: Blank: Run the program in preliminary mode. You should run the program in preliminary mode before running it in final mode. If the system finds an error, you will see an error message on the preliminary report. You should correct errors that appear on the report and rerun the program in preliminary mode. Running this program in preliminary mode does not create journal entries or update any tables. You can run this program in preliminary mode as many times as required. 1: Run the program in final mode. When you run this program in final mode, the system posts accumulated depreciation and depreciation expense journal entries to the Asset Account Balances File table (F1202) and creates journal entries in the Account Ledger table (F0911). The system also submits the depreciation journal entries to the General Ledger Post Report program (R09801) based on the version that you specify in the G/L Post (R09801) processing option. Note. This processing option retains the value previously specified. For example, if you ran this program in final mode the last time you used it, the program will run in final mode again unless you change the value of this processing option.
2. Fiscal Year | Specify the fiscal year for the period specified in the Period Number processing option. Enter a four-digit fiscal year in this field. If you leave this processing option blank, the system uses the date pattern established for the default company 00000.
3. Period Number | Specify the current accounting period for the report. If you leave this processing option blank, the system uses the current period of the default company 00000.
4. Date - For G/L Journal Entry | Specify the date that the system uses as the GL date for journal entries.
5. Document Type to use for entry | Specify the document type that the system uses to create journal entries for this report. If you do not complete this processing option, the system uses document type JE.
6. Ledger Type to use for Straight-line Ledger | Specify the ledger type that is associated with the French Straight Line ledger. You associate a ledger type with the ledger by using the Depreciation Default Coding program (P12002). If you leave this processing option blank, the system assumes that the ledger type is AA.
7. Ledger Type to use for Declining Balance Ledger | Specify the ledger type that is associated with the French Declining Balance ledger. You associate a ledger type with the ledger by using the Depreciation Default Coding program (P12002).
8. Summarize Transactions | Specify whether the system summarizes accumulated depreciation and depreciation expense account information. Values are: Blank: The system does not summarize account information. 1: The system summarizes account information. Note. If you summarize the accumulated depreciation and depreciation expense account information, the system does not record transaction detail by asset number. In the Asset Account Balances File table (F1202), the system uses the transaction detail information from the transactions in the Account Ledger table (F0911). Consequently, if you summarize account information, you will not be able to use the Fixed Asset Repost program (R12910).

Versions

Use this processing option to specify the version of G/L Post to use.

1. G/L Post (R09801) | Specify the version of the General Ledger Post Report program (R09801) that the system runs when you run the French Derogatory Depreciation Entries program (R7412855A) in final mode. This processing option works only if you enter a valid version and if the Manager Approval of Input option in the JD Edwards EnterpriseOne General Accounting system constants is not turned on.

Print

Use this processing option to specify how the asset number is printed.

1. Asset Number Format | Specify how you want the asset number printed on the report. Values are: 1: Asset Number. 2: Unit Number. 3: Serial Number.

### Working With Automatic Debits for France

The JD Edwards EnterpriseOne system provides Automatic Debits French Format (R03B575FD) for French automatic debits. This program generates a bank file that corresponds to the French banking standards for automatic debits.

#### Setting Processing Options for Automatic Debits French Format (R03B575FD)

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

Statement Print | Specify whether the system prints invoices that are included in the automatic debits batch as customer statements. Values are: Blank: Print customer statements only when the number of invoice detail lines exceeds the maximum number that is allowed by the format. 1: Print statements.

### Managing Bad Debts for France

This section provides an overview of bad debts and discusses how to enter an unrecoverable loss.

#### Understanding Bad Debts

When an Accounts Receivable (A/R) trade account becomes a solvency risk (for example, legal rectification), the A/R trade account is recognized as a Doubtful A/R trade account, regardless of the invoice due date. You create an entry in a Doubtful A/R trade account every time that a posted invoice, or several invoices, represents a risk.

In the French chart of accounts, a special account exists in class 4 as a subset of account 411000 - Trade Accounts Receivable, and is used for doubtful clients and client accounts in litigation.

When you recognize a client account as a bad debt, you transfer the receivable amount, including any value added tax (VAT), to account 416000 - Bad Debts. You also create the necessary accounting entries between account 416000 - Bad Debts and account 411000 - Trade Accounts Receivable. In addition, you must create the necessary accounting entry in account 491000 - Provision for Doubtful Trade Account.

G/L Offset Transfer Method

Use the G/L Offset Transfer method to transfer invoices from the Trade Accounts Receivable account to the Bad Debts account. To do this transfer, use the chargeback procedure in the receipts entry program. When you use the chargeback procedure, you close the invoice by opening a new document (document type RB). You can manually change the G/L offset for the new document to the Bad Debts account (416000).

You can use this method to create one new document per invoice or one new document for all the invoices that you want to transfer to the Bad Debts account.

If you create one document for multiple invoices, you can associate bad debts with document type RB. Otherwise, remembering that document type RB might identify other types of chargebacks, in addition to bad debts, is important.

To further identify clients with bad debts, you can specify the credit message D (for bad debts) on the customer master record for the client.

Note. The disadvantage of the G/L Offset Transfer method is that the system does not include the original data relative to that client's invoices on any A/R reports that you print. However, this situation might not be a disadvantage if you are accustomed to tracking this information by using online inquiries.

Payment Status Modification Method

You can modify the payment status for invoices that are considered bad debts. For this action, you must create a specific payment status code, such as X, for bad debts. To further identify clients with bad debts, you can specify credit message D (bad debts) on the client's Customer Master record.

If you use the payment status modification method and indicate the credit message D on the Customer Master record, you must:

- Modify the data selection for the A/R Open Detail and Summary reports so that invoices identified as bad debts (payment status X) are excluded.

- Create report versions to report on clients who are identified as bad debts.

- Manually enter a reversing journal entry at the end of the month to offset the difference between the A/R Trade Accounts and the Doubtful A/R Trade Account. You can print this information on the Trial Balance report by G/L Offset. Use data selections to include only records with the payment status for bad debts (X).

  Note. The advantage of the Payment Status Modification method is that you can maintain the information in the system relative to the original invoice, and you can easily access and update bad debt information. The disadvantages are that the setup phase is more complex and you are required to make a monthly manual entry. This solution is recommended if you need to keep the original invoice information to process delinquency notices.

After you have made the entries to the A/R trade account as a doubtful account, you must enter an A/R Doubtful Provision.

A/R Doubtful Provision Method

Use the Customer Ledger Inquiry program (P03B2002) to enter the negative provision. You must set the G/L Offset code to this account:

491000 - Provisions pour créances douteuses (A/R doubtful provision).

Note. The advantage of the A/R Doubtful Provision method is that you can maintain the information in the A/R Trade accounts as required by French law.

If the invoice is paid after you enter the doubtful provision, you must void the invoice for that doubtful provision using the Customer Ledger Inquiry program.

If the invoice will never be paid, you must enter an unrecoverable A/R loss.

#### Forms Used to Enter an Unrecoverable Loss

Form Name | FormID | Navigation | Usage
Work with Customer Ledger Inquiry | W03B2002A | Customer Invoice Entry (G03B11), Standard Invoice Entry | Enter unrecoverable losses.

#### Entering an Unrecoverable Loss

Access the Work With Customer Ledger Inquiry form.

To enter an unrecoverable loss:

1. Cancel the original revenue by entering a loss (and corresponding VAT) in account 654000 - Pertes sur créances irrécouvrables (unrecoverable loss).

2. Close the A/R Doubtful Trade account (416000) by entering the correct G/L Offset code.

   Important! Do not forget to void the A/R Doubtful Trade account (416000) and then calculate the net.

### Working with the D.A.S. 2 Report

Businesses in France must prepare the Declaration Annuelle Des Commissions, Courtage, Honoraires, Verses (Yearly Declaration of Payments of Commissions, Broking and Fees [D.A.S. 2] report to declare the different types of fees that are paid during the fiscal year. The report lists fees for legal and consulting services, sales commissions, and so on. Businesses in France are required to declare these fees on an official form every fiscal year.

You can use JD Edwards EnterpriseOne software to identify the voucher pay items that represent the fees that you must declare on the D.A.S. 2 report. For this process, define values for Category Code 7 that represent the different types of fees that the company pays. When you enter vouchers for fees, use Category Code 7 to identify each type of fee.

When you are required to declare the fees for the French authorities, you can use JD Edwards EnterpriseOne Enterprise Report Writer to create a custom report to analyze the vouchers. The report should list this information for each type of fee:

- Supplier

- Total gross amount paid

- Detail amount

For suppliers whose fees are to be declared in the D.A.S. 2 report, you assign a code in the JD Edwards EnterpriseOne Address Book system that identifies the category of the fee for D.A.S. 2 reporting. The User-Defined Codes table for Category Code 7 (01/07) should be used for this purpose. The value that is assigned in the Supplier Master is used as a default value in voucher entry.

Note. Category Code 7 cannot be entered on a voucher when using the Payment Without Voucher Match program (P0411). In this case, the system assigns the Category Code 7 value that is assigned at the Supplier Master level.

If blank is not a valid value in the user-defined codes table 01/07, it is recommended that you enter a dummy value, such as ZZZ, so that you can enter a voucher without a D.A.S. 2 fee code, if needed.

If different types of fees are on the same voucher, you can enter different D.A.S. 2 codes by pay item. You might need to change the default value to do this entry.

You can use JD Edwards EnterpriseOne Report Design Aid to customize reports that:

- Print the detail of the vouchers with a D.A.S. 2 value in Category Code 7 that have been paid in the selected fiscal year and periods. The vouchers should be sorted by company, supplier, and D.A.S. 2 value.

- Print the same information as above but without voucher details. This summary version includes a total by supplier and D.A.S. 2 value.

### Working with the ETAFI Interface

This section provides an overview of the ETAFI interface and describes how to:

- Run the ETAFI Interface.

- Set processing options for the ETAFI Interface program (R7409FI).

#### Understanding the ETAFI Interface

You can use localization software and the PC package ETAFI (Etats Financiers) [Financial Reports] to generate all of the Liasse Fiscale reports that are required by French authorities. These reports include Balance Sheet and Income Statements, and many other reports that can be printed directly on the official certified forms.

JD Edwards EnterpriseOne software provides a program that creates a table containing all of the information that is required for the Liasse Fiscale reports. Based on criteria that are specified in the processing options and data selection, the ETAFI Interface reads the account balance information from the General Ledger tables and builds a worktable that is used to import the account balances into the ETAFI PC software. The program also prints a report that shows the number of accounts that were created in the ETAFI table.

The ETAFI Interface - OneWorld ONLY table (F7409FOW) includes this information, where N is the date that you specify in the program's processing options:

- Account number.

- Account description.

- Balance at fiscal year begin (N).

- Debit and credit amounts.

- Balance forward, plus debits and minus credits.

- Balance at N-1.

- Balance at N-2.

- Balance at N-3.

If you want to process ledgers in addition to ledger type AA, you can specify up to three ledger types in the processing options.

If you define multiple companies in the data selection, the program creates balances that are consolidated by account across companies.

Note. The record identifier that you specify in the processing options is created if it does not already exist. If you do not specify a record identifier in the processing options, the program uses F7409FOW. Regardless of the record identifier that you specify, if the identifier exists, the data for that identifier is cleared at the beginning of the ETAFI process and then repopulated with the new data.

The first time that you use the ETAFI Interface program, either of these scenarios is possible:

- The company has historical data for multiple fiscal years in the account transaction table.

  When you run the ETAFI Interface program, you select the transactions of the previous fiscal years by specifying the fiscal year and period in the processing options. You can also specify the number of previous fiscal years to process in the processing options. By default, only the specified fiscal year is taken into account. When the program runs, the balance forward amounts of the previous fiscal years are updated directly into ETAFI.

- The company does not have historical data for multiple fiscal years in the account transaction table.

  When you run the ETAFI Interface program, you can import only the balances of the previous fiscal year that are specified in the processing options.

If you already have the own custom interface for fiscal reporting and want to implement the interface program that is provided by JD Edwards EnterpriseOne software, consider these possibilities:

- You select up to three previous fiscal years.

  In this case, all of the adjustments need to have been made on both the JD Edwards EnterpriseOne software and ETAFI sides. If this situation is not the case, you should expect unbalanced accounts and differences in the data.

- You select only the current period using the JD Edwards EnterpriseOne interface.

  The previous fiscal years have already been uploaded into ETAFI through the custom interface.

#### Running the ETAFI Interface Program (R7409FI)

Select French Reports (G093151), ETAFI Interface.

#### Setting Processing Options for ETAFI Interface (R7409FI)

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

Dates

These processing options specify the date OR the accounting period and fiscal year the system uses to select the data. If left blank, the system uses the current accounting period and fiscal year.

1. Date | Specify the date that the system uses to select the data.
1. Period Number | Use this processing option in conjunction with the Fiscal Year.
1. Fiscal Year | Use this processing option in conjunction with the Period Number.

Ledger Types

These processing options specify a user-defined code (09/LT) that indicates the type of ledger, such as AA (Actual Amounts), BA (Budget Amount), or AU (Actual Units). You can set up multiple, concurrent accounting ledgers within the general ledger to establish an audit trail for all transactions. You can specify up to three ledger types. If left blank, the system uses ledger type AA.

1. Ledger Type 1 , 1. Ledger Type 2 , and 1. Ledger Type 3 | Specify the first, second, or third ledger type.

Accounts

1. Beginning Profit Loss Account | Use this processing option in conjunction with the Ending Profit Loss Account to enter the range of profit and loss accounts the system selects. If you leave this processing option blank, the AAIs GLG6 and GLG12 are used as defaults.
1. Ending Profit Loss Account | Use this processing option in conjunction with the Beginning Profit Loss Accountto enter the range of profit and loss accounts the system selects. If you leave this processing option blank, the AAIs GLG6 and GLG12 are used as defaults.
2. French Chart of Accounts | Specify a value that indicates where the chart of accounts is defined. Values are: 1: In object 2: In object subsidiary 21, 22, 23: In category code

Business Unit

1. Model Business Unit | Specify the model business unit the system uses to retrieve the account description.

Balance

1. Beginning Balance | Specify the number of fiscal years for which the beginning balance needs to be loaded (maximum 3 years). By default, no previous year beginning balance will be retrieved.

Zero Balance

1. Accounts with Zero Balance | Specify whether to avoid processing accounts with zero balances. Values are: Blank: Process all accounts. 1: Process only accounts with an active balance.

File

File Identifier | Specify the identifier the system uses when creating the F7409FOW ETAFI Interface records. If you leave this processing option blank, the system uses F7409FOW as the default identifier.

### Processing French VAT

This section provides overviews of French VAT and the VAT receipts and payment reports and discusses how to: .

- Run the VAT on Receipts and Payments program.

- Set processing options for VAT on Receipts and Payments (R74F100).

#### Understanding French VAT

In France, the taxpayer is liable for collected VAT and deductible VAT. Collected VAT is included on sales. Deductible VAT is included in the purchase of goods, equipment, and services. Collected VAT can be offset against any deductible VAT. Businesses can also postpone the declaration of VAT in certain circumstances.

Certain services are subject to a special fiscal regime that allows you to declare the VAT when payment is made, as opposed to when the voucher is recorded. Postponing the declaration of VAT payable as long as possible can be advantageous for a business. This regime is also valid for accounts receivable transactions when VAT is recognized at the time of receipt, instead of at the time of invoicing.

Under the VAT Deductible on Payment regime, when you buy something, you pay VAT to the supplier. You then deduct that amount from the VAT which you have collected from client sales and pay the difference to the fiscal authority.

Under the VAT Collectable on Receipt regime, when you sell something, you collect VAT, which you then owe to the fiscal authority.

VAT Returns

Each month of VAT returns must be completed on a special form (CA3) and filed with the local tax office between the 15th and 24th day of the following month.

You must pay any collected VAT that exceeds the over-deductible VAT of the business at the time of filing.

VAT Exemptions

To be exempt from VAT, the business must work within these guidelines:

- Goods must be physically moved to another EU-member country.

- Customers must have VAT identification codes.

- Invoices must display applicable VAT numbers.

- Goods cannot be of a special category, such as vehicles.

#### Understanding the VAT on Receipts and Payments Reports

The VAT on Receipts and Payments (R74F100) program enables you to produce VAT reports for multiple companies and provides correct and complete information required for the CA3 forms for VAT declared on receipts and payments. VAT is only reported when the voucher or invoice is paid.

In France, the taxpayer is liable for collected VAT and deductible VAT. You must report VAT to the tax authorities. VAT returns must be completed monthly on a special form, and filed with the local tax office between the 15th and 24th day of the following month.

The reports provide the information that you need to complete official tax declaration forms and reconcile the VAT accounts. You can use information from VAT reports to differentiate between transactions that are subject to the ordinary VAT regime, and transactions that are subject to the VAT Collected on Receipts and VAT Payable on Payments regimes.

You can print the report for receipts or payments in either summary or detail format. The summary format prints:

- Tax rate/area code and description.

- Item VAT code.

- Total taxable amount to be reported.

- Total VAT to be reported.

The detail format includes all the information in the summary format, in addition to:

- Final or proof mode.

- Tax rule flag.

- Address number.

- Tax explanation code.

- Document type and number.

- Pay item.

- Service/tax date.

- Tax, taxable, and gross amounts.

- VAT adjustments from discounts and write-offs.

- Receipt/payment amount.

- VAT and taxable amount.

You can reprint the report as needed, regardless of whether it has been run in final mode. A reprint in detail format in final mode prints only those records that have not yet been printed and updates the Final Mode Flag for those records.

#### Running the VAT for Receipts and Payments Program

Select French VAT Processing (G00214), VAT for Receipts and Payments.

#### Setting Processing Options for VAT on Receipts and Payments (R74F100)

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

Process

These processing options specify how to process the report.

Running Mode | Specify whether to run in proof or final mode. Proof mode does not update tables. Values are: Blank: Proof mode. 1: Final mode.
Sequence | Specify the sequence in which the report should display transactions. Values are: Blank (Default): Sort transactions first by company, then by tax rate/area. The report displays transactions for the tax rate/areas within a company with a subtotal by tax rate/area then a total for the company. 1: Sort transactions first by tax rate/area, then by company. The report displays transactions for the various companies with the same tax rate/area with a subtotal by company and then a total for tax rate/area. A grand total for the report is displayed only if the currency code is the same for all subtotal fields.
Print Detail | Specify whether to display detailed transactions for VAT tax. Values are: Blank (Default): Display summary of transactions and the totals for tax rate/area for all companies. 1: Display detail and summary of transactions. The detail includes the VAT tax at the transaction pay item level. Subtotals are displayed based on how sequence is set up in the processing options. The summary displays the totals by tax rate/areas for all companies.
Beginning Process Date and Ending Process Date | Specify the beginning date or the ending date for processing this report. The system uses the GL Date only if it is greater than or equal to the date specified in this processing option. If this processing option is left blank, the system date is used.

Receipts

Complete these processing options to print a report for receipts. .

Process Receipts | Specify whether to process VAT from receipts. Values are: Blank (Default): Process receipts. 1: Do not process receipts.
System Code | Specify the system code for VAT on Receipts. If you leave this processing option blank, the system uses system code 74.
Record Type | Specify the record type for VAT on Receipts. If you leave this processing option blank, the system uses record type TX.

Payments

Complete these processing options to print a report for payments.

Process Payments | Specify whether to process VAT from payments. Values are: Blank (Default): Process payments. 1: Do not process payments.
System Code | Specify the system code for VAT on Payments. If you leave this processing option blank, the system uses system code 74.
Record Type | Specify the record type for VAT on Payments. If you leave this processing option blank, the system uses record type TX.

Currency

These processing options enable you to use as if currency.

As If Currency Code | Specify the currency code for as if currency reporting. This option allows for amounts to display in a currency other than the currency they are stored in. They system converts and prints them in the as if currency. If this processing option is left blank, the system prints the amounts in the database currency. This processing option is for display purposes only. The amounts are recorded to the tables in their base currency.
Exchange Rate Date | Specify the date to use for currency conversion from the database currency into the as if currency. If you leave this processing option blank, the system date is used.