Colombia

Withholding tax calculation

If the Calculate Withholdings check box is selected for the transaction type in the Transaction Types – Fiscal Data Colombia (lpcol1100m000) session, you can calculate and post withholding tax for Colombia. In the sessions that are used to insert financial transactions, you can click Documents with Colombia Withholding Tax to start the Documents with Colombia Withholding Tax (lpcol2102m000) session. This session calculates the withholding taxes in test mode, taking into account the withholding setup specified for the business partner in the Business Partners – Fiscal Information Colombia (lpcol0108m900) session.

For purchase invoices and sales invoices, the control-account posting is reduced by the withholding amount. The purchase invoice matching process considers the withholding amount.

This functionality is also used by Sales Orders and Manual Sales, through the Colombia Sales Order Tax Data (lpcol3100m000) and Colombia Manual Sales Invoice Tax Data (lpcol3110s000) sessions.

Withholding certificates

The periodic and annual withholding certificates can be printed with these sessions:

• Periodic Withholding Certificates (lpcol2408m000)
• Annual Withholding Certificates (lpcol2408m001)

In accordance with the dispositions of DIAN, withholding certificates are requested by customers and suppliers in Colombia to confirm the withholdings applied to them in purchase or sales transactions. The certificates can be printed annually, monthly, or as required by law. These certificates are available:

• Withholding at the Source (income Tax) certificate
• Withholding ICA (Impuesto de Industria y Comercio, Industry and Trade Tax) certificate
• Withholding VAT certificate

Inquiries

With these inquiry sessions, you can view the withholdings from accounts payable and accounts receivable:

• Outstanding Supplier Invoices – Header Tax (lpcol2506m000)
• Outstanding Supplier Invoices – Line Tax (lpcol2507m000)
• Outstanding Customer Invoices (lpcol2509m000)

Legal reporting

In accordance with the national rules and principles required by the Colombian authorities, legal reporting sessions are available to produce the books for recording the economic facts.

These books are available:

• General Ledger and Balance Book: This book includes the summary of all transactions for each ledger account, including the previous balance, its debit and credit movements, and the final balance. The report can be printed from the Print Chart of Account – Additional Data Colombia (lpcol0411m001) session.
• Inventories and Balance Book: This book includes the ledger accounts' closing balance. Only ledger accounts with sublevel 0 are included. You can print the report from the Print Chart of Account – Additional Data Colombia (lpcol0411m001) session.
• Journal Book: This book records general ledger transactions in chronological order, individually or through global summaries. You can print the report from the Print Journal Book (lpcol1406m000) session.

Legal forms

For business partners who have the VAT Regime field set to Simplified in the Business Partner – Fiscal Information Colombia (lpcol0108m900) session, the legal form Equivalent Purchase Invoice can be generated in the Print Equivalent Purchase Invoices (lpcol2400m100) session.

Auxiliary reporting

Several auxiliary reporting sessions are also available. You can, for example, print the withholding details and analysis, the ICA auxiliary, the sales list, the business partner balances, the general ledger transactions, and the list of business partners which do not have fiscal information for Colombia.

These sessions are supported for auxiliary reporting:

• Print Withholding Details per Purchase Invoice (lpcol2406m900)
• Print Withholding Details per Sales Invoice (lpcol2409m900)
• Print Withholding Analysis (lpcol2405m900)
• Print Withholding Analysis by Account (lpcol2405m900)
• Print VAT Analysis – Purchase/Sales (lpcol1410m000)
• Print ICA Auxiliary (lpcol1406m002)
• Print Sales by City (lpcol3405m003)
• Print Business Partner Balances (lpcol2410m000)
• Print General Ledger Transactions (lpcol1406m004)
• Print Business Partners without Fiscal Information Colombia (lpcol1400m000)

Utilities

It is required to structure information by a business partner's tax identification. Consequently, to update the opening balances and the accounting movements, these utility sessions are available:

• Initialize Business Partners Opening Balance (lpcol2210m000)
• Rebuild Business Partner Ledger Movements (lpcol2210m001)

Master data

In the Master Data menu of the Colombian localization, these sessions are available:

• Billing resolution (lpcol0180m000) - Used to register the invoicing resolutions assigned to each company by the tax authority DIAN.
• Equivalent Purchase Invoice Configuration (lpcol0185m000) - Used to store the authorization to issue equivalent purchase invoices.
• Withholding Certificates Configuration (lpcol0180m000) - Used to include the fiscal data that refers to the different withholding types.

In relation to configuration details and DIAN codifications, the Withholding Manager subfolder includes these sessions:

• City DIAN Codes (lpcol0101m000)
• Country DIAN Codes (lpcol0112m000)
• Commercial Activities (lpcol0102m000)
• Effective ICA Rates (lpcol0103m000), by city and commercial activity
• Companies – Fiscal Parameters (lpcol0100m000), by financial company
• Withholding Tax Codes (lpcol0104m000), where the linked concept type can be specified
• Tax Regimes (lpcol0106m000)
• Tax Codes by Country – Additional Data Colombia (lpcol0110m000)
• Chart of Accounts – Additional Data Colombia (lpcol0111m000)
• Transaction Types – Fiscal Data Colombia (lpcol1100m000)