Accounts Receivable (AR) tax invoices are used to report tax to the South Korea tax authorities (NTS).
This document explains how to:
VAT method cash discount set to 2 or 3.
2-‘VAT recorded separately’ – the portion of the cash discount amount that is VAT is recorded separately. The transaction receives the accounting dimensions connected to the main VAT code for the invoice.
3-‘VAT calculated automatically’ – the VAT portion of the cash discount is automatically calculated and recorded separately for each VAT code.
Initiate AR tax invoicing
All customer invoices from Accounts Receivable that meet the selection criteria are included and grouped into tax invoices through the settings in (TXS090) and (TXS091). Both paid and unpaid invoices are selected but separate tax invoices are created for paid and unpaid customer invoices. Separate tax invoices are also created for customer invoices and customer receipts with cash discount. The tax invoices are labeled with the creation date and a preliminary tax invoice number. Also, additional information number 270 is updated with the preliminary tax invoice number on the related customer invoices. This prevents the customer invoices from being included in another tax invoice.
Manage AR tax invoice
The tax invoices are displayed in 'AR Tax Invoice. Open' (TXS905)where the invoices are first displayed as preliminary tax invoices with the status 'New'
Use related option 11='Invoices' to access 'AR Tax Invoice. Open Invoices' (TXS906), where the customer invoices connected to a tax invoice are displayed. The preliminary tax invoice can be modified by adding or deleting customer invoices in (TXS906). You can also move a customer invoice to a new tax invoice or an existing tax invoice. The amounts on the tax invoice is updated accordingly.
You can delete a tax invoice and make changes in (TXS906) until the tax invoice is approved. Select related option 7='Approve' when the preliminary tax invoice has been reviewed. At this point, the tax invoice number is updated. At the same time, additional information number 271 is updated with the tax invoice number on the related customer invoices. You can also approve all preliminary tax invoices with the status 'New' by selecting F17='Approve'.
These are the components of the tax invoice number:
Creation date, specified in (TXS900)
Value of the field 'Issuing system', specified in (TXS095)
A sequential number created for each creation date
Value of the field 'Business code', specified in (TXS095).
Note that a tax invoice number is not created on a preliminary tax invoice where reversed reporting is used.
Select related option 8='Confirm' on the approved tax invoice. You can also confirm all approved tax invoices by selecting F18='Confirm'. The tax invoice is now ready to be uploaded to NTS.
Upload AR tax invoice to NTS
These are the methods to upload tax invoices to NTS:
The tax invoice data on (TXS905/B) is used for the method where an Excel file is uploaded. Create a view containing the correct information in 'View. Open' (CRS020) for the program (TXS905). Extract the tax invoice data from (TXS905/B) using the tool 'Export to Excel'.
The method to upload tax invoice to NTS using an XML file requires that parameters be defined in (TXS095). Select related option 9='Send' on the confirmed tax invoice. You can send all confirmed tax invoices by selecting F19='Send'. The field 'In progress' on (TXS905/B) is enabled to indicate that an invoice is being uploaded. The status is set to 'Sent' and the field 'In progress' is disabled when the upload has been completed without any error.
Manage errors when uploading AR tax invoices to NTS using an XML file
Errors can occur when uploading tax invoices to NTS using an XML file. The possible causes are an error in the M3 Business Engine, an error in the XML file, or an error when connecting to SmartBill.
In the first scenario, the upload of a tax invoice failed due to an interruption in the transmission in the M3 Business Engine. The status on the tax invoice is 'Sent' and the field 'In progress' is enabled, but the tax invoice is not uploaded.
Use correction ID 'TX01' in the 'Program Problem. Solve' (CRS418) to release the tax invoice for another upload. Specify a base country, a creation date and optionally, a customer number and a preliminary tax number. The status is reset to 'Confirmed' on the tax invoices that match the selection criteria. Note that F14='Standard' must be selected the first time correction ID TX01 is used.
In the second scenario, the upload of the tax invoice has failed and an error message is returned from the tax agent. The status is set to 'Failed' and the field 'In progress' is disabled.
These are the ways to resolve this:
Review the error message on (TXS095/E) and use related option 9='Send' to upload the invoice again after the error has been corrected in the M3 Business Engine.
Delete the tax invoice. In this scenario, additional information 270 and 271 are deleted on the related customer invoices. The customer invoices are included again on a tax invoice the next time (TXS900) is run.
In this scenario, the buyer reports tax on behalf of the customer. The process is triggered when the parameter for reversed reporting in (TXS091) is set to 2='Yes, tax invoices are not created', resulting in that reversed reporting is used and tax invoices are not created.
The tax invoicing is initiated in (TXS900) as described above and the tax invoices are displayed in 'AR Tax Invoice. Display' (TXS905) as preliminary tax invoices with the status 'New'. In this scenario, the tax invoices are not sent to NTS. Instead, the company receives information about the tax invoices that have been reported to NTS on their behalf.
Use related option 2='Change' to manually specify the tax invoice number on (TXS905/E) once the information is received. At this point, additional information number 271 is updated on the related customer invoice.
Select related option 8='Confirm' to confirm that the tax invoice has been reported. After this, you cannot change the AR tax invoice number anymore.
Use F16='Delete' to delete many tax invoices. Select the creation date. Optionally, you can select by status and customer number. The tax invoices are deleted in (ARS905), and additional information 270 and 271 are deleted on the related customer invoices.
Note that additional information number 270 and 271 are not be deleted on customer invoices with status 'Sent' (invoices uploaded to NTS) or 'Confirmed' (invoices with reversed reporting).