Create Template for VAT Reports

This document explains how you create user-defined templates for creating VAT reports, reconciling VAT, and declaring VAT to the tax authorities.

Outcome

Select a template when creating a VAT run or printing a VAT report in 'VAT Run. Open' (TXS100). When there is a match between the line selection and the column selection, transactions will be selected for the VAT run.

VAT report templates are defined at the company and division level. Each template consists of lines, columns, and a template for user-defined electronic reports. (See a simplified example below).

Each column defines a basic selection of values such as VAT codes, VAT account types, and accounts. Columns are used for printed reports and user-defined electronic reports, unlike other electronic VAT reports, to distribute the amounts of General Ledger transactions.

The lines are either text lines representing subheadings in the VAT report or a detail line. The detail line has one or more line selections consisting of ranges of more VAT-related parameters than the column selection, such as the countries from or to which goods have been delivered and whether to include only transactions for customers or suppliers with VAT registration number. For each range in the line selection, a range of exceptions from the selection can be defined as well, enabling you to exclude certain VAT codes or accounts, for example.

Before you start

Follow these steps

Name template

  1. Start 'VAT Report Template. Open' (TXS005/B).

    The panel sequence must be set to E1.

  2. Specify a template ID that can consist of up to eight characters. Click New.

  3. On the E panel, specify a description and name. Press Enter.

Define line types and names

  1. On 'VAT Report Template. Connect Lines' (TXS008/B), specify a line number for the first line. Click New.

    The panel sequence should be set to E1.

  2. On (TXS008/E), specify a line description/name and select a line type: 1='Detail line' or 2='Text line'. The line text connected to a detailed line can be included as alphanumeric object &LNTX in a user-defined electronic report. The line text connected to a text line will be used as a subheading in the printed template report.

  3. Select one of these alternatives:

    • If you selected alternative 1, specify the text (optional), press Enter, and continue to the 'Define Line Selection' steps.
    • If you selected line type 2, specify the text and press Enter to return to (TXS008/B).

Define line selection

  1. On 'VAT Report Template. Connect Line Selection' (TXS009/B), specify a numeric ID for the first selection. Click New.

  2. On (TXS009/E), specify a description/name.

  3. Define ranges for these values, when applicable:

    • VAT codes (valid alternatives are 0-99)
    • VAT account types (for example, account type 1=VAT payable account or 2=VAT receivable account)
    • Account and book of account
    • From/to countries, that is, countries to which the company has sold goods or services or from which the company has bought goods or services
    • Whether to include only transactions for customers or suppliers with a VAT registration number. (In certain countries, companies are required to declare transactions with and without VAT registration numbers separately.)
    • Whether to limit the selection to Intrastat transactions or Extrastat transactions
    • VAT rates
    • Deductible VAT
    • Service codes
    • VAT code group
    • Invoice class
    • State.
  4. If applicable, also define a range of exceptions for each of these ranges. This is not applicable to the fields 'VAT registration number existed' and 'Deductible VAT'. Press Enter to return to (TXS005).

Define column heading and amount types

  1. On (TXS005/B), select alternative 12='Columns' for the template.

  2. On 'VAT Report Template. Connect Columns' (TXS006/B), specify a column ID (1–50). Click New.

  3. On (TXS006/E), specify a description and the column heading (mandatory).

  4. Select a value type (mandatory). In this case, the type of VAT amount to use when creating the VAT report:

    • 1='Recorded amount'
    • 2='Calculated VAT amount 1'
    • 3='Calculated VAT amount 2'.
  5. Select which type of amount to present in this column (mandatory):

    • 1='Net amount' (all General Ledger transactions are included)
    • 2='Only debit amount' (only debit transactions are included)
    • 3='Only credit amount' (only credit transactions are included).
  6. Select the 'Reverse sign' check box if you want the column value to be presented with a reverse sign. Press Enter.

  7. Select the 'Customs VAT' check box if you want the column value to be the VAT value of a connected customs invoice. If selected, the column selection must be VAT account type 1 or 2.

Define column selection

  1. On 'VAT Report Template. Connect Column Selection' (TXS007/B), specify a numeric ID for the selection. Click New. Up to 50 amount columns can be included in the template, but only the first six columns will be included in the printed reports. You can define the columns to show, for example, VAT base amount, VAT payable amount, and VAT receivable amount.

  2. On (TXS007/E), specify a description/name (required).

  3. Define column-specific ranges of these values:

    • VAT codes
    • VAT account types
    • Accounts
    • Books of account
    • VAT rates
    • Deductible VAT
    • VAT code group
    • Invoice class
    • State.
  4. If you only want to include transactions for customers/suppliers with a VAT registration number, select the 'VAT registration number exists' check box. Press Enter.

Define user-defined electronic report template

  1. On (TXS005/B), select alternative 13='Template' to connect a user defined template to the VAT report template. The template will only be used by the user-defined electronic VAT report.

  2. On (TXS004/E), specify up to ten key fields in addition to the three mandatory key fields 'Company' (CONO), 'Division' (DIVI) and 'VAT Report Template' (VRTM).

  3. On (TXS004/F), specify the following:

    • Up to seven numeric fields
    • Up to nine alphanumeric fields
    • Up to seven date fields.

Description

These tables present simplified examples of how to define columns and lines. The template consists of three columns.

In this example, transactions for all VAT codes will be included in the VAT run. By limiting the line selections through selection or exclusion of specific VAT codes, you can instead present totals for each type of VAT such as zero rate, standard rate, and reduced rate.

Column definitions

Column 1: Recorded VAT

Column 2: VAT Base

Column 3: Calculated VAT

Value type 1=Recorded VAT

VAT codes: 0-99

VAT account types: 1–2

Value type 1=Recorded VAT

VAT codes: 0–99

VAT account types: 3–4

Value type 2=Calculated VAT amount 1

VAT codes: 0–99

VAT account types: 3–4

Line definition: VAT payable

Here there are two line selections for the VAT payable line:

Line Selection

VAT Codes

VAT Account Types

1 VAT payable, all

00-99

1=VAT payable account

2 Base profit/loss

00-99

3=Revenue account

In the first line selection, there is a match with the first column, since they both include VAT account type 1. In the second line selection, there is a match with columns 2 and 3, since they all include VAT account type 3.

Line definition: VAT receivable

Here are the two line selections for the VAT receivable line:

Line Selection

VAT Codes

VAT Account Types

1 VAT receivable, all

00-99

1=VAT receivable account

2 Base profit/loss

00-99

3=Purchase account

In the first line selection, there is a match with the first column, since they both include VAT account type 1. In the second line selection, there is a match with columns 2 and 3, since they all include VAT account type 3.

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