Taxation

In Infor LN FP2, the following changes were made to the setup of tax registration and tax declarations:

• Taxation menu

  In the menu tree, all sessions for the setup and execution of tax registration and declaration were collected into a new Taxation submenu.

  This submenu contains tax-related sessions from the following modules:

  • Common- Taxation (tctax)
  • Common- Tables (tcmcs)
  • Common- Common (tccom)
  • Financials- General Ledger- Tax (tfgld)

  The Taxation (tctax) module is a new module in Infor LN FP2. Most of the new taxation sessions belong to the Taxation module.

• Removed: Investment charge tax

  Investment charge (IVC) is a shifted expensed purchase tax that is applied on investment amounts on purchase invoices in Norway. IVC is used to steer investments, for example, environmental investments can be exempt from investment charge tax.

  Because IVC no longer applies in Norway, the functionality was removed.

• Print tax articles

  For some tax codes, you must print the section of the law related to the taxation on the tax report or the tax declaration. To support his functionality, the tax articles are defined as reason codes.

  To link a tax article to tax code by country combination, complete the following steps;

  • In the Reasons (tcmcs0105m000) session, define a new reason for the article. Type the text that must appear on the tax reports in the reason description and in the Reason Type field, select Tax Article.
  • In the Tax Codes by Country (tcmcs0136s000) session, select the reason in the Tax Article field.
• Withholding income tax and social contributions

  The Tax Codes by Country (tcmcs0136s000) session was extended with a number of fields required to set up tax codes for withholding income tax and social contributions. For details, refer to Setting up withholding tax and social contributions.

• Tax codes

  Before LN can link a tax code to transactions, you must select the Approved check box in the Tax Codes by Country (tcmcs0136s000) session. If you have set up and tested a tax code, you can approve the tax code. LN performs a consistency check on the tax code details.

• Separate ledger accounts for tax amounts on credit notes

  In Infor LN SP1, sales tax and purchase tax amounts on credit notes was always posted to the sales tax account and the purchase tax account. In Infor LN FP2, you can post the tax amounts on credit notes to separate accounts.

  In the Invoicing Methods (tcmcs0155s000) session, the Positive and Negative Order Lines check box was added. To create separate sales invoices for credit notes, you can clear this check box. If you want to post the tax amounts on credit notes to ledger accounts other than the sales tax account, you must clear this check box.

  In the integration mapping scheme, the Credit Note indicator was added as a mapping element. You can use the Credit Note indicator to map sales revenue on credit notes to a specific account.

• Ledger accounts for tax amounts on advance payments and receipts

  In some countries, the following accounting rules apply:

  • Tax on advance payments and receipts must be posted to the same account used for the tax posting when the invoice is created.
  • When you assign advance payments or receipts to invoices, the contra posting for the tax amount must be posted to a separate account.
• Posting data for tax codes

  To support the functionality described above, the following fields were added to the Posting Data for Singular Tax Codes (tfgld0171s000) and the Posting Data for Multiple Tax Codes (tfgld0170s000) sessions:

  • Purchase Tax on Credit Notes
  • Purchase Tax on Assignment of Advance Payments
  • Sales Tax on Credit Notes
  • Sales Tax on Assignment of Advance Receipts
  • Social Contribution (Company Expense)
  • Accrued Stamp Tax
• Automatic transfer of tax declarations

  In some countries the tax authorities require that you submit the tax declaration as an XML file. LN supports the automatic transmission of the declaration XML file to collection offices in The Netherlands. For details, refer to Automatic transfer of tax declarations.

  In The Netherlands, you can also generate and automatically transfer the sales listing as an XML file. For details, refer to Automatic transfer of the sales listing.