Value added tax
Requirement
All member states of the EU must adopt the EU directives regarding VAT into their own national legislation.
M3 solution
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 invoice number for customer and supplier invoices
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| MNS100/G | Company. Connect Division | Set the tax method per division and specify the company tax and VAT number. |
| CRS030 | VAT Code. Open | VAT codes can be connected to customers, suppliers, item numbers, and the chart of accounts. |
| CRS031 | VAT Rate. Open | Set VAT rates by date, country, and area or state. |
| CRS045 | Country. Open | Define country specific rules and controls. |
| CRS395 | Accounting Rule. Set | |
| CRS610 | Customer. Open | |
| CRS620 | Supplier. Open | |
| CRS630 | Accounting Identity. Open | |
| 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 . In (MMS002/I), set the VAT code purch and VAT code sales fields to the VAT codes for purchasing and selling. |
| OIS002 | Customer. Connect Addresses | Optionally, in the VAT reg no field, specify the VAT registration number. |
| TXS001 | VAT Reporting. Connect MI Transactions |