To set up the VAT book

To set up registration of transactions for the VAT book, use the following sequence of sessions:

1. Company Parameters (tfgld0503m000)
   Select the VAT Book check box.
2. Reasons (tcmcs0105m000)
   If you must print a section of the law related to the taxation on the VAT book reports, define a reason for the article. Type the text that must appear on the tax reports in the reason description field and in the Reason Type field, select Tax Article.
3. Tax Code by Country (tcmcs0136s000)

   For each tax code of which the transactions must be included in the VAT book, select the Include In VAT Book check box. The Kind of Tax must be VAT. For intracommunity purchase VAT, use a tax code of the Shifted type.

   For tax codes for which you must print the tax article, select the corresponding reason in the Tax Article field.

4. VAT Books (tfgld0160m000)

   Define one or several VAT books. You can define as many VAT books as you require. You must define at least one VAT book of the Purchase type and one VAT book of the Sales type.

   For Purchase VAT books intended for intracommunity purchase transactions, select the Intra-EC check box. The tax on these transactions must be Shifted tax.

5. Transaction Types (tfgld0511m000)
   • For transaction types of which the transactions must be included in the VAT book, select the VAT book in the VAT Book field. You can only select a VAT book if inclusion in the VAT book is permitted for the transaction type. For details, refer to VAT book transaction types.
   • Create one series for each transaction type that you linked to a VAT book. You can define a single series for each tax year, and you must enter the year in the Tax Year field. VAT book transactions can only be processed if the tax year of the document number equals the transaction entry date of the batch. Note that the tax year does not become part of the document number.
   • Create transaction types for self-billing transactions for purchase invoices, for debit notes, and for freight invoices that must be included in the VAT book.
6. ACP Parameters (tfacp0100m000)

   Select the transaction types created in the previous step in the following fields:

   • Self Billing Transaction Type for VAT Book
   • Self Billing Transaction Type for Intra-EC VAT Book
   • Debit Memo Transaction Type for VAT Book
   • Freight Invoices Transaction Type for VAT Book
   • Freight Invoices Transaction Type for Intra-EC VAT Book