This document explains the routine for electronically reporting sales or purchases between different member states of the European Union (EU).
The EU sales report, also called a recapitulative report, is a quarterly or monthly report of the total value of goods sold to specific customers in other EU member states who have a VAT registration number in that country. The customer is identified by the country and the VAT registration number. Triangular trade is reported separately in the report. The EU sales report follows the VAT system and is based exclusively on the VAT transactions and VAT-generating transactions in the general ledger created at invoicing.
Overview of the outcome of EU sales/purchase reporting:
If invoice corrections are reported separately, the balance table FQRBAL must be created in the 'EU Sales/Purchase. Create Balance File' (TXS132).
Create a corrective report.
Optionally, if new transactions were added after the first report was created, create a corrective report at a later stage by selecting option 7='Create corrective report' against the confirmed proposal in 'EU Sales/Purchase. Open Proposal' (TXS130/B).
The proposal is now reclassified as corrective and has the status of 'proposal is created' on the B panel.
Print, review, and confirm the report.
A corrective report number is automatically assigned to the proposal after it is confirmed.
Create a proposal.
Manage the EU sales and EU purchase reports in 'EU Sales/Purchase. Open Proposal' (TXS130).
Specify an ID for the proposal and select the base country for which the reporting is done. Define a range of VAT dates and specify the VAT report template to use as criteria for the selection and, if applicable, any specific range of lines in the template to apply. The range is the VAT dates between which M3 will select VAT transactions and VAT-generating transactions in the general ledger for the report.
Select whether to include only non-declared transactions that were already reported or all transactions. Only non-declared transactions are included in an EU sales/purchase report but for analysis purposes, it might be relevant to include reported transactions (for example, when printing an EU sales report for the entire year or when creating a corrective EU sales report).
Select whether to include invoice corrections. The originally reported amount in a past period is adjusted by the correction in the current period when corrections are performed later in the process. These corrections are reported in separate transactions.
Press Enter to create the proposal. If no transactions matching the selection criteria were found, the proposal receives the status of 'No lines were found' in (TXS130/B).
Create the report.
Before creating the report, open (TXS035) and verify that any additional country-specific values to include in the report header are correct and complete. If an alternative address is defined using additional field 505 with address type and number as optional information defined for additional field 506, the address information will be retrieved from the internal customer or from the address type and number of the internal customer when the report header is created.
Select the Confirm option for the proposal in (TXS130/B) to confirm the proposal and create the electronic report through API programs (TXS130MI) and (TXS035MI).
The proposal is automatically assigned the status of 'Proposal is Confirmed' in (TXS130/B).
Review the proposal.
Select the option Lines in (TXS130/B) and review the transactions in the EU Sales / Purchase proposal.
If needed, print the report proposal. Since the report can be extensive, it is not printed automatically when the proposal is created. The report lists totals for each VAT registration number together with detailed transactions.
Correct transactions included in the proposal. If any discrepancies are found, the transactions in a proposal can be corrected by selecting one of these alternatives:
Changing the amount on a detailed transaction in the EU sale/purchase proposal does not change the amount on the corresponding transaction in the general ledger.
Define a report header.
Define the values to include in the report header by selecting the 'Create header info' option in (TXS130/B). On the E-panel, verify that the time span for the report is correct: calendar year, calendar period and, if applicable, the quarter for the year.
M3 specifies the period and the quarter automatically if the range of VAT dates used as selection criteria in (TXS130/E) are within the calendar dates of one period or one quarter of the year. If the dates span more than one period or quarter, a zero is displayed in these fields. All fields are editable.
Verify the company address, telephone number, VAT registration number, and any company internal tax declaration number.
The functionality is available in division where the tax method is VAT.
The field 'Original invoice amount' is updated on transactions related to invoice corrections when 'Include invoice corrections' is enabled on an EU sales/purchase proposal. The amount is retrieved from field 'Correct invoice amount' in the balance table FQRBAL. When EU sales/purchase reporting is performed per period, transactions are created in the balance table FQFBAL per period and when reporting is done quarterly transactions are created per quarter.
In order to retrieve a correct 'original invoice amount', the VAT 'from' date and VAT 'to' date on the proposal must be:
The fields 'Year' 'Period' and 'Quarter' are updated on the report header (TXS130/E). The fields are not open for editing when 'Include invoice corrections' is enabled.
The year, period, and quarter are calculated from the VAT 'to date' on the proposal. When reporting is done quarterly, the period will be set to the last period of the quarter. The fields are open for editing when 'Include invoice corrections' is disabled.
The field 'Original invoice amount' is updated in EU sales/purchase proposals where 'Include invoice corrections' is enabled. The field is updated on invoice corrections where the original invoice was EU sales / purchase reported in a previous period. If the invoice correction and the original invoice are included in the same proposal, the amount on the invoice correction and the original invoice are added together in the field 'Recorded amount'.