Common

Economic zones

Economic zones are now supported in LN CE. An economic zone is a special zone with simpler tax handling and easier legal compliance for companies. Economic zones are located within a country’s national borders, but are treated as foreign territory for tax purposes. The supply from and to economic zones is handled differently than the regular supply.

Because economic zones are considered to be located in a foreign territory, the transactions with economic zones can be classified as exports and imports.

These characteristics apply to exports:

• Goods or services are taken out of a country or from an economic zone.
• Goods or services are supplied from one unit in the economic zone to another unit in the same economic zone or in another economic zone.
• Goods are supplied from a domestic area to an economic zone.

Because supplies to an economic zone are the same as for any other export, VAT taxation is also as for any other regular export.

Special Economic Zones with a separate tax registration, and Export Oriented Units without a separate tax registration, are required and supported especially for India. However, for economic zones in other countries, this functionality can also be used.

If required, a separate registration can be specified for an economic zone and an address can be designated as part of an economic zone. Through tax exception modeling, the correct tax code is set as a default. This can be done for own locations and for business partners.

Extended tax registration management

A legal entity may require multiple tax registrations, for example, in these cases:

• It does business in several countries and a registration is required in each of these countries
• A country requires separate registrations by state
• A country requires a separate registration for an economic zone
• Different tax types require different registrations

These features are now supported:

• Several registrations within a country and state
• Storage and reporting of the correct tax and registration data on order transactions, sales and purchase invoices, and in Finance
• Tax reporting by registration ID or in a specific country by registration ID
• Sequential numbering, by registration, of invoices and other financial documents
• A life cycle for each registration number, so it can be used during a specified period of time
• Availability of a registration number by country or legal entity for an enterprise, and other types of registration numbers that may vary by state or economic zone
• Availability of multiple registrations for customers and suppliers, depending on the jurisdiction and the type of registration

The registrations can be implemented in a single financial company.

GRC - application of authorization and security permissions

Data authorization can be set for just one record at the time for these objects:

• Project
• Project (PCS)
• Business partner
• Item
• Contract
• Service order
• Work order
• Sales order

A purchase order that is transferred from a planned purchase order can be authorized immediately.

GRC - export and import of authorization and security settings

The authorization and security settings can now be exported to a file, and then imported to another LN environment, for example, from a test environment to a production environment.

The settings of the target system can be respected, or overwritten.

The active permissions are not included, because the data in the target environment is different.

The permissions can be made active and can be applied during the import.

GTC - end user statements

Previously, Global Trade Compliance (GTC) included single item license management and checks.

Now, parameters have been added to support these new concepts:

End User Statement

This is a document that a customer fills out to detail the end use and end user of the sold item. It is used for Military Items or Dual Use Items that must be tracked during export, import, or domestic outbound and inbound transactions.

End User Declarations

This is an addition to the end user statement. It is used to manage the import of specific items to comply with the item that is sold to the end user. Check boxes have been added to manage the buying and making of items linked to an end user statement. Thus, only those items can be used in making and selling the end item. End user declarations can have a Re-Export Type, which allows changing ownership from one end user statement to another. The re-export is performed in Warehousing as part of the ownership change of existing inventory.

To support end user statements and end user declarations, these improvements have been made for licenses:

• Multiple items are allowed on a license.
• Conditions (called provisos) can be used to limit logistic steps, such as release to warehousing if a proviso has not been completed.
• A license can be a child license for a specific country or component. Exporting an item that contains parts from, for example, the USA or UK can require the exporting country license and the export license for the USA or UK. Consequently, the item shipment can be tracked by multiple licenses for the end item and key components.
• Licenses can track consumptions during demand entry for an order or contract deliverable. So, Order Consumptions can be tracked.

Optional refreshment of totals in workbenches

Calculating totals can reduce performance. For this reason, you can now deactivate the automatic calculation of totals.

To support this, the Calculate Totals command has been added to various workbenches across LN CE. By default, this command is unmarked. You can mark it if totals should be retrieved automatically.

The setting of the command is saved for the next time you start the workbench.