Value added tax

Requirement

Most countries in the world have implemented VAT as the most common tax system for consumption.

If a customer is offered a settlement discount for prompt payment, VAT is adjusted during payment processing. The invoice document must show the discount terms for prompt payment.

M3 solution

These requirements are supported:

  • VAT on goods and services
  • VAT on purchase of goods and services
  • VAT on supplier self-billing
  • VAT on payments
  • VAT on deliveries
  • Required VAT information on invoices
  • Triangulation
  • Fiscal representation
  • Through address and entry point in EU
  • VAT handling for cash and payment discounts
  • VAT in both local and foreign currencies
  • VAT reporting
  • VAT reconciliation
  • VAT payments and refunds

The calculation, accounting, reporting, and reconciliation of value added tax is supported by generic functionality in M3. Country-specific functionality is then configured from this standard functionality, and delivered with the country version:

  • VAT reports and electronic reporting
  • Unpaid supplier invoices
  • VAT reports by voucher number
  • VAT reports by invoice number for customer and supplier invoices

In Switzerland, most of this functionality that supports VAT calculation, accounting, reporting, and reconciliation is used.

Configuration guidelines

Program ID Program name Description or comment
MNS100/G Company. Connect Division Specify the tax method per division.
CRS750/E Settings - General Ledger

Set the Ck trans table field to 1-Check.
CRS750/F Settings - General Ledger

Specify this information:

VAT from date
VAT chk online
Select this check box.
Acceptable VAT deviation
Specify, for example, 0.00.
VAT date type
Specify 2-Invoice date.
VAT printout
Specify 3-VAT on inv & in AP.
CRS030

CRS031

 VAT Code. Open

VAT Rate. Open

 Specify the VAT rate by date, country, and area or state.
CRS045 Country. Open In the Chk dig mtd VAT field, set the validation method for the check digit of the VAT registration number to 03.
CRS395 Accounting Rule. Set Configure all VAT setups.
CRS610/J Customer. Open Specify the VAT registration number of the customer.

Set the Tax applicable field and specify the VAT code.
CRS620/E Supplier. Open Specify the VAT registration number of the supplier.

Set the Tax applicable field and specify the VAT code.
CRS630 Accounting Identity. Open Set the VAT account types as required.
OIS002/F Customer. Connect Addresses Optionally, in the VAT reg no field, specify the VAT registration number.
MMS001/G Item. Open Set the VAT code purch and VAT code sales fields to the VAT codes for purchasing and selling.
MMS002/I Item. Connect Warehouse

To open (MMS002), select a record in (MMS001), then select Related > Item/Warehouse.

In (MMS002/I), set the VAT code purch and VAT code sales fields to the VAT codes for purchasing and selling.