## (AUS) Entering Customer, Supplier, and Item Information for GST

This chapter provides an overview of Australian Goods and Services Tax (GST) and discusses how to:

- Add GST information to customer and supplier records.

- Add item branch or plant information.

- Add order line types (nonstock only for GST).

- Set processing options for JD Edwards EnterpriseOne Procurement and JD Edwards EnterpriseOne Accounts Payable.

- Set processing options for JD Edwards EnterpriseOne Sales Order Management and JD Edwards EnterpriseOne Accounts Receivable.

- Locate report information.

### Understanding Australian Goods and Services Tax (GST)

As of July 1, 2000, Australia adopted a new tax system, the central piece of which is the Goods and Services Tax (GST). The requirements for GST compliance are included in The New Tax System (Goods and Services Tax) Act of 1999.

GST applies to goods and services supplied in Australia and to goods imported into Australia. Some goods, such as certain foods; and some services, such as certain health, education, and financial fees, are not subject to GST.

GST is levied at 10 percent of the value of the supply at each stage of the supply as a value-added tax. You add GST to the price of the goods or services that you sell so that the price that the consumer pays includes the tax. The supplier is liable for the tax and is required to pay GST at the earlier of the time of invoice or payment. Suppliers remit the amount of the tax due minus any credits for GST already paid to the Commissioner of Taxation.

Generally, you can select whether to remit GST monthly or quarterly; in some situations, the government might require you to pay monthly. You must file GST returns for each tax period (monthly or quarterly) by the 21st day of the month following the end of the period. The return must display the net amount of GST, which is the GST charged on sales, and outputs reduced by the GST input credits (matched to tax invoices) and corrected for adjustments (matched to adjustment notes).

To obtain the benefit of a GST credit for purchases, you need to have supporting documentation in the form of a tax invoice. You can request tax invoices from the suppliers; you must give invoices to the customers on request.

When the use of an input-taxed supply changes or when the price of a sale or purchase changes, you need to adjust the GST that you charged or the GST credits that you claimed. These adjustments must be documented by an adjustment note. Either the customer or the supplier can issue an adjustment note.

### Adding GST Information to Customer and Supplier Records

This section discusses how to:

- Add GST information to customer master records.

- Add GST information to supplier master records.

#### Forms Used to Set Up Customers and Suppliers

Form Name | FormID | Navigation | Usage
Customer Master Revision | W03013B | Customer Invoice Entry (G03B11), Customer Master Information. On the Work With Customer Master form, select a record and click Select. | Add GST information to customer master records.
Supplier Master Revision | W04012A | Supplier and Voucher Entry (G0411), Supplier Master Information. On the Work With Supplier Master form, select a record and click Select. | Add GST information to supplier master records.

#### Adding GST Information to Customer Master Records

Access the Customer Master Revision form. Select the Tax Information tab.

Tax Expl Code (tax explanation code) | Enter E (value-added tax exempt) for GST exempt suppliers, such as hospitals and suppliers of exports. For suppliers and purchasers of domestic goods, specify V (value-added tax) to indicate supplies that are subject to GST.
Tax Rate/Area | Enter the appropriate GST tax rate or area code, or both.
Tax ID | Enter the Australian Business Number (ABN) for registered organizations.

#### Adding GST Information to Supplier Master Records

Access the Supplier Master Revision form. Select the Tax Information tab.

Tax Expl Code 2 (tax explanation code 2) | Enter E (value-added tax exempt) for GST exempt suppliers, such as hospitals and suppliers of exports. For suppliers and purchasers of domestic goods, specify V (value-added tax) to indicate supplies that are subject to GST.
Tax Rate/Area | Enter the appropriate GST tax rate or area code, or both.
Tax ID | Enter the ABN for registered organizations.

### Adding Item Branch/Plant Information for GST

Use the Sales Taxable (TAX1) and Purchasing Taxable (TX) fields on the Item/Branch Plant Info. form to indicate whether the inventory item is subject to GST outputs when sold and GST inputs when purchased. The system calculates GST on the item only if the customer and supplier are also taxable.

Note. Customers and suppliers are identified as taxable if their tax area is GST and their tax explanation code is V (GST applies).

#### Form Used to Enter Item Branch/Plant Information for GST

Form Name | FormID | Navigation | Usage
Item/Branch Plant Info | W41026A | Item Revisions (G4112), Item Branch/Plant. On the Work With Item Branch form, select a record and click Select. | Add GST information to an existing Item Branch/Plant record.

### Adding Order Line Types (Nonstock Only) for GST

For nonstock orders, enter the appropriate GST taxable value in the Include in Tax 1 field (TX01) on the Line Type Constants Revision form.

#### Form Used to Add Order Line Types for GST

Form Name | FormID | Navigation | Usage
Line Type Constants Revision | W40205B | Sales Order Management Setup (G4241), Order Line Types. On the Work With Line Types form, select a record and then click Select. | Add GST information to an existing Item Branch/Plant record.

### Setting Processing Options for JD Edwards EnterpriseOne Procurement and JD Edwards EnterpriseOne Accounts Payable Systems

The processing options for these programs that are related to tax processing must be set correctly for Australian GST compliance:

- Enter Purchase Orders (P4310).

  On the Defaults tab, leave the Default Tax Rate/Area processing option blank to indicate supplier.

- Print Purchase Orders (R43500).

  On the Tax Information tab, set the Print Tax processing option to 2 (By Area).

- Voucher Entry MBF Processing Options (P0400047).

  On the Defaults tab, the Service/Tax Date processing option determines which date the system uses as the effective date for the tax area. This date is normally the date of the invoice (value 1).

  On the Currency tab, set the Value Added Tax Allowed for Multicurrency Items processing option to 1 (allow value-added tax).

- Post Vouchers to GL (R09801).

  On the Taxes tab, set the Update Tax File option to 3 (For all Tax Explanation Codes) if tax processing is to be tracked in the F0018 table.

  Set the Update VAT Receipts and W/O option to 2 (Update VAT, Ext Price and Taxable) to apportion GST between the invoice taxable amount and the discount amount taken up during payment (to claim the correct amount of creditable inputs).

- Post Manual Payments to GL (R09801).

  The processing options on the Taxes tab should be activated for tax (GST) processing because the Payment Without Voucher Match program (P0411) creates taxable vouchers that generate GST entries during the post process. You must also activate these processing options to allow for the apportionment of GST settlement discounts during auto-payment runs.

  Set up the processing options on the Taxes tab as:

  Processing Option | Value
  1. Update Tax File | 3 (For all Tax Explanation Codes)
  2. Update VAT Discounts (Update valued-added tax Discounts) | 2 (Update VAT, Ext Price and Taxable)
  3. Update VAT Receipts and W/O | 2 (Update VAT, Ext Price, and Taxable)

- Post Payments to GL (R09801).

  You must activate the processing options on the Taxes tab for GST processing to allow for the apportionment of GST settlement discounts during auto-payment runs.

  Set up the processing options on the Taxes tab as:

  Processing Option | Value
  1. Update Tax File | 3 (For all Tax Explanation Codes)
  2. Update VAT Discounts | 2 (Update VAT, Ext Price and Taxable)
  3. Update VAT Receipts and W/O | 2 (Update VAT, Ext Price, and Taxable)

### Setting Processing Options for JD Edwards EnterpriseOne Sales Order Management and JD Edwards EnterpriseOne Accounts Receivable Systems

The processing options for these programs that are related to tax processing must be set correctly for Australian GST compliance:

- Invoice Print (R42565).

  On the Print tab, set the Print Tax Summary processing option to 2 (Summarize taxes by area) to print GST information on the sales invoice to comply with GST requirements.

- Speed Invoice Entry (P03B11SI)

  On the Display tab, set the Sales/Use/VAT Tax Processing and Service/Tax Date Entry options to 1 to activate GST processing.

- Standard Invoice Entry (P03B11)

  On the Display tab, leave the Tax Information option blank to activate GST processing.

- Invoice Entry MBF Processing Options (P03B0011)

  On the Defaults tab, the Service/Tax Date Option processing option determines which date the system uses as the effective date for the tax area. This date is normally the date of the invoice (value 1).

  On the Taxes tab, set the VAT on Foreign Transactions processing option to 1 (Allow VAT on foreign transactions).

- Post Invoices to GL (R09801)

  On the Taxes tab, set the processing options as follows to track GST in the F0018 table that is apportioned between the invoice amount and any discounts given.

  Processing Option | Value
  1. Update Tax File | 3 (For all Tax Explanation Codes)
  2. Update VAT Discounts | 2 (Update VAT, Ext Price and Taxable)
  3. Update VAT Receipts and W/O | 2 (Update VAT, Ext Price, and Taxable)

- Post Receipts to GL (R09801)

  The processing options on the Taxes tab should be activated for tax (GST) processing because the cash receipts programs can create taxable adjustments or written-off debts that generate GST entries during the post process. Also, these processing options must be activated to allow for apportionment of Output GST upon recognition of settlement discounts.

  Set up the processing options on the Taxes tab as:

  Processing Option | Value
  1. Update Tax File | 3 (For all Tax Explanation Codes)
  2. Update VAT Discounts | 2 (Update VAT, Ext Price and Taxable)
  3. Update VAT Receipts and W/O | 2 (Update VAT, Ext Price, and Taxable)

### Locating Report Information

JD Edwards EnterpriseOne software provides reports and inquiry programs for GST. You can use the inquiry programs to view information about the reports run previously.

Note. When you reprint an adjustment note, you must specify the print control number of the original adjustment note. The print control number of the original adjustment note appears in the Print Ref. field on the Find/Browse Adjustment Note Print Control form of the Enquire Tax/Adjustment Print Control (P75A0200) program.

#### Forms Used to Inquire on Reports

Form Name | FormID | Navigation | Usage
Find/Browse Adjustment Note Print Control | W75A0200A | Australian GST (G75A031), Enquire Tax/Adjustment Print Control. | Use this program to locate the print control number of previously printed adjustment notes.
Work With RCTI Print Control File | W75A0201A | Australian GST (G75A031), Enquire RCTI Print Control. | Use this program to determine whether an RCTI has been created for a specific transaction, and to locate the print control number of a previously printed RCTI.
Work With RCTI Adjustments Print Control Table | W75A0201A | Australian GST (G75A031), Enquire RCTI Adjustments Print Control. | Use this program to determine whether an RCTI adjustment note has been created for a specific transaction and to locate the print control number of a previously printed RCTI adjustment note.