Eco-Contribution

Background

France has introduced rules regarding the collection and recycling of waste furniture. Eco-organization companies have therefore been created to manage the recycling and comply with the requirements.

To finance this ecological transition, an eco-equity has been established whereby an eco-contribution is charged to the customer and declared by the company invoicing the contribution. The eco-contribution on supplier invoices is not part of the declaration process.

The declaration is normally sent to the eco-organization on a quarterly basis. However, if turnover for the previous year is less than EUR 300,000 excluding taxes, the declaration can be submitted annually.

Limitations

The functionality is only available if the 'eco-contribution' application is enabled in 'Company. Connect Division' (MNS100/I).

Eco-contribution is only available for customer orders and purchase orders.

Overview of Eco-Contribution Functionality

The declaration of eco-contribution is ordered in 'Eco-Transaction. Submit' (ENS105).

In order to create a declaration file, in addition to the required setup, the transaction file CECOTR, displayed in 'Eco-Transaction. Display' (ENS100), must contain transactions.

Available statuses in the transaction file:

00 = Created in transaction file
When the declaration file is created in (ENS105), all records in the transaction file in status 00 (and matching the selection in ENS105) will be included in the declaration.
20 = Included in a declaration run
80 = Sent to eco-organization

Records are added to the transaction file during invoicing in 'CO Invoice. Print' (OIS180) for those items set up for eco-contribution) and where the situation matches one of the predefined situations set up in 'Eco-Transaction selection Table. Open' (ENS095).

If an item has been connected to an eco-organization, an eco-contribution will be added to the customer order line in 'Customer Order. Connect Line Charge' (OIS107), regardless of the setup in (ENS095).

When the customer order is invoiced in (OIS180), the eco-contribution will be updated as a new record in the transaction file if the situation matches the setup in (ENS095).

Information about the eco-contribution is printed on the customer order invoice (OIS199PF), in detail under each invoice line and in a summary box before the VAT summary at the end of the invoice.

This information is also included in the streamfiles for (OIS193PF), (OIS606PF), (OIS608PF) and (QPS601PF).

Eco-contribution defined as an internal charge in 'Order Line Charge. Open' (CRS275) is not printed on the customer order invoice, but will update the transaction file CECOTR just like external charges.

If eco-contribution has been added to the customer order, it will be included in the total charges amount of either the 'External charge' or 'Internal charge' field in 'Customer Order. Simulate Totals' (OIS110/E). If part of the external charges concern eco-contribution, the eco-contribution amount is specified in a field to the right of field 'External charge'. The eco-contribution field is only displayed where there is an outstanding eco-contribution amount to be invoiced on the customer order.

Accounting control objects for eco-contribution are found in field group 'CRACC' in 'Field Group. Open' (CRS108) to make it possible to base the control for accounting rule 'OI20-150' on the eco-information for the eco-contribution.

Accounting rules PP20-248 and PP20-249 are used for account entries for eco-contribution during invoice matching of supplier invoices to which an eco-contribution has been added.

Information about charge category (01 = 'Eco-contribution' and 02 = 'Eco-deduction') is available in streamfiles PPS601PF and PPS601P4. This information is retrieved from the costing element in 'Costing Element. Open' (PPS280). A line total including eco-contribution is also available in these streamfiles.

Flowchart

Before you start

To use the eco-contribution functionality, basic data must be set up in programs within the 'Environmental Taxes Management' (ETM) module. Some settings are also required for the division, the customer order workflow ('Sales'), the purchase order workflow ('Purchase') as well as for MBM and media output.

Setup of basic data for eco-contribution

In 'Company. Connect Division' (MNS100)
Setting 212 = 'Eco-contrib' must be enabled in (MNS100) to activate the eco-contribution functionality.
In 'Supplier. Open' (CRS620)
The eco-organization must be defined as a supplier in (CRS620) to enable declaring the eco-contribution and receiving invoices for the same. Important: The country code of the supplier in (CRS620/E) must be set to the country code of the eco-organization.

The supplier must also be defined in 'Supplier. Define Purchase & Financial' (CRS624). The currency code entered for the supplier in (CRS624/F) determines the currency in which the eco-contribution is reported in the declaration file.

The supplier's bank account must be defined in 'Bank Account. Open' (CRS692).
In 'Eco-Organization. Open' (ENS010)
The eco-organization is defined in (ENS010) and connected to the supplier number defined for this purpose in (CRS620).

The country of the eco-organization is important for the calculation of the eco-contribution, and the country code of the supplier in (CRS620/E) must be the same as the country code of the eco-organization in (ENS010/E).

The legal text entered in this panel is included in the printout of customer order invoices created in 'CO Invoice. Print' (OIS180).

If an eco-contribution code or an eco-product code was connected to the eco-organization (in (ENS015) and (ENS020), respectively), the eco-organization may not be deleted in (ENS010).

Note: More than one eco-organization can be defined in (ENS010) in cases where the company must declare and pay different kinds of eco-contributions to different eco-organizations.
In 'Eco-Contribution Code. Open' (ENS015)
The eco-contribution codes are defined in (ENS015). Each eco-contribution code is connected to the corresponding CO line charge, defined in 'Order Line Charge. Open' (CRS275) and to a costing element used for purchase orders, defined in 'Costing Element. Open' (PPS280).

If an eco-product code was connected to the eco-contribution code (in ENS020), the eco-contribution code may not be deleted in (ENS015).

If the amount of the eco-contribution was manually changed in 'Customer Order. Connect Line Charge' (OIS107), the eco-product code defined as the default code in (ENS020/E) will be used in the printout of customer order invoices and in the eco-contribution declaration. In that case, the legal text printed on the invoice will be retrieved from the eco-contribution code in 'Eco-Contribution Code. Open' (ENS015/E) instead of from 'Eco-Organization. Open' (ENS010/E).

For France, the eco-product code '00000000000' and the eco-contribution code '000' are used for declaration of manually changed eco-contributions.
In 'Eco-Product Code. Open' (ENS020)
Eco-product codes are defined in (ENS020). Each eco-product code is connected to an eco-contribution code, defined in (ENS015).

If an item was connected to the eco-product code (in ENS025), the eco-product code may not be deleted in (ENS020).

If the amount of the eco-contribution was manually changed in 'Customer Order. Connect Line Charge' (OIS107), the eco-product code defined as the default code in (ENS020/E) will be used in the printout of customer order invoices and in the eco-contribution declaration. In that case, the legal text printed on the invoice will be retrieved from the eco-contribution code in 'Eco-Contribution Code. Open' (ENS015/E) instead of from 'Eco-Organization. Open' (ENS010/E).

For France, the eco-product code '00000000000' and the eco-contribution code '000' are used for declaration of manually changed eco-contributions. The check box 'Default code' controls this functionality.
In 'Eco-Product Code. Connect Item' (ENS025)
Items defined in 'Item. Open' (MMS001), which are subject to eco-contribution, must be connected to an eco-product code in (ENS025). The connection is valid as of a specific From date, and a To date for the connection can also be selected.

For the delete option in (ENS025), similar conditions must be met as for the deletion of items in (MMS001). If stock transactions exist for active orders for the item, deletion is not allowed.

Note: Several items can be connected to the same eco-product code in (ENS025), for instance in cases where the company sells beds and has defined beds of different colors, but of same size and material, as different items in (MMS001). All these beds are then subject to the same eco-contribution and should be connected to the same eco-product code in (ENS025).
The same item, for instance an electric bed, can be connected to more than one eco-organization. For such an item, eco-contribution would be added both for recycling of waste furnishing and for the electrical component. When selling such an item, two different eco-contributions would be added to the sales price, and the eco-contribution would then be declared and paid to two different eco-organizations. In this case, both eco-organizations must be set up in (ENS010), two different eco-contribution codes would be set up in (ENS015), two different eco-product codes would be set up in (ENS020) and, finally, in (ENS025) the item would be connected to two different eco-product codes.
In 'Eco-Transaction Selection Table. Open' (ENS095)
All eco-contributions invoiced to customers do not require declaration and payment to the eco-organization. Only the party that introduces the product to the market in the country of the eco-organization must include the eco-contribution in their declaration.

To regulate this, rules to be applied for the specific company must be defined in (ENS095). The setup is dynamic and can be based on user-defined settings, for instance for the customers in 'Customer. Open' (CRS610).

The fields that can be used for this control are connected to the field group ECOST (OI: Eco-selection table) in 'Field Group. Open' (CRS108) and 'Field Group. Display Permitted Fields' (CRS109). The fields are mainly found in 'Item Master File' (MITMAS), 'Item – Warehouse' (MITBAL), 'Customer Master File' (OCUSMA), 'Customer Order Line File' (OOLINE) and 'Customer Order Header File' (OOHEAD).

The field group ECOST is connected to program (ENS095) in 'Available Object Ctrl Parameters. Open' (CMS016).

The fields that can be used for the dynamic setup in (ENS095) are defined in 'Generic Object Control Table. Open' (CMS017).

The selection fields are defined on 10 different levels in (CMS017), with priorities 0 to 9. If you, for example, connect field OKSDST (District in Customer Master File) to priority 0, field MMITNO (Item number in Item Master File) to priority 3, and field &CONO (Company) to priority 9, then you could set up your control in (ENS095) based on these three fields and priorities.

In (ENS095/E), each scenario is connected to an eco-transaction type, which indicates whether or not the eco-contribution should be declared in the given situation. In our example, for priority 0 we could define that an eco-contribution invoiced to customers connected to a specific district should not be included in the declaration to the eco-organization.

For priority 3, we could define that eco-contribution invoiced for a specific item should not be included in the declaration to the eco-organization either.

With priority 9 we could define that for all other customers and items invoiced in our company, we should include the eco-contribution in the declaration to the eco-organization as payable transactions. This means that we would receive an invoice from the eco-organization for the eco-contribution.

These options are available for the setting 'Eco-transaction type' in (ENS095/E):
- 01 = Eco-payable
  Used for eco-contributions to be declared and paid to the eco-organization.
- 02 = Eco-receivable
  Use this type if a refund from the eco-organization is expected. This situation could occur if company A has taken the product to the market of the eco-organization and delivered the product to company B situated in the same country, whereas company B then delivers the product to a customer in a different country.
- 03 = No reporting
  Use this type for eco-contributions not to be declared and paid to the eco-organization.

Setup for Sales

In 'CO Type. Open' (OIS010)
The CO type must be defined with setting 'Eco-calculation' enabled in (OIS010/F).

This is mandatory not only for the CO type used for customer orders but also mandatory for the CO type used for customer returns in order to credit the customer.

Note: This setting is only displayed in (OIS010/F) if the module 'Eco-contrib' is activated in 'Company. Connect Division' (MNS100/I).
In 'Order Line Charge. Open' (CRS275)
The CO line charge, which will be used for eco-contribution, must be defined in (CRS275) with the setting 'Charge category' set to 01. For France, calculation method 6 (Amount per quantity) will be used.

When the order line charge has been defined with setting 'Charge category' set to 01 (Eco-charge), that indicates that this is a charge used for eco-contribution. These settings are then recommended:
- Tax base model set to blank.
- Fields 1-3 will contain information about eco-organization, country of organization or eco-contribution code.
- Fund creation set to blank.
- Claim creation not activated.
- Item dependent tax must always be activated.
- Debit frequency must be set to 0 (Each delivery).
Note: Both external charges and internal charges can be defined with 'Charge category' set to 01. In both cases, the eco-contribution will update the eco-transaction table CECOTR if the conditions defined in 'Eco-transaction selection table. Open' (ENS095) are met.

A translation of the eco-contribution charge can be defined in (CRS276).

The amount of the eco-contribution charge is defined in (CRS277).

Note: Eco-contributions defined by the French eco-organizations are expressed using three decimals. To manage this in M3, you must set the charge quantity to 10 and enter the charge amount for 10 pieces. This setting is only available for calculation method 6.

The Valid from date is used when the eco-organization changes the charge amount at a specific date. It is the price/discount setting (OT31) on the order type that controls which date is used.
In 'Accounting Rule. Set' (CRS395)
Four accounting control objects concerning eco-contribution can be found in field group CRACC in 'Field Group. Open' (CRS108):
- CECSOR Country of organization
- CEECOC Eco-contribution code
- CEECOP Eco-product code
- CEECRG Eco-organization
These objects can be used to control account entries for eco-contribution which is posted through accounting rule OI20-150. These accounting control objects can be used both for the default accounting string defined in CRS395/E and for exceptions set up in CRS396.

If the eco-contribution is defined as an internal charge in 'Order Line Charge. Open' (CRS275), the posting on OI20-150 will be offset by a posting on OI20-151.

Setup for Purchase

In 'Costing Element. Open' (PPS280)

The elements used for eco-contribution must be set up with charge category 01 in 'Costing Element. Open' (PPS280). This is mandatory in order to obtain two accounting transactions for eco-contribution when a purchase order is matched in 'Supplier Invoice. Match GR Line' (APS360). Apart from this setting, the costing element must have been connected to the eco-contribution code in 'Eco-Contribution Code. Open' (ENS015) and the item connected to an eco-product code in 'Eco-Product Code. Connect Item' (ENS025).

These alternatives are available for parameter charge category:

00 = Not used
Charge category will be set to 00 for costing elements that do not concern eco-contribution.
01 = Eco-contribution
This alternative will be used when eco-contribution is excluded from the cost price (thus added as a charge on top of the price).
02 = Eco-deduction
This alternative will be used when eco-contribution is included in the cost price (thus deducted from the price).

By using cost distribution keys 1-5 in (PPS280/E), you can control the supplier, goods receiving country, item number, and so on for which eco-contribution should be calculated.

Note: Only costing elements defined with charge category 01 will trigger the accounting rules for eco-contribution PP20-248 and PP20-249 at invoice matching. Information about charge category will only be added to streamfiles PPS601PF and PPS601P4 for costing elements defined with charge category 01 or 02.

In 'Purchase Costing Model. Open' (PPS285)

When costing elements for eco-contribution should not be included in the item cost, eco-costing elements need to be added to the model after the element defined with operator 99. See example:


Sequence no	Element	Description	Operator
1	E00002	Net Price	02
20	ECO2	Eco-deduction	10
30	JC0099	Total for Accounting	99
40	ECO1	Eco-contribution	10

The costing element named 'Eco-deduction' in the example is used to deduct eco-contribution amount that have been included in the purchase price. You need to configure this element with charge category set to 02 in program 'Costing Element. Open' (PPS280).

In 'Accounting Type. Open' (CRS385)
Two accounting types, 248 and 249, are used for invoice matching of supplier invoices with eco-contributions.

The accounting types are automatically generated in (CRS385) by selecting F14=Standard.
In 'Accounting Rule. Set' (CRS395)
Four accounting control objects concerning eco-contribution can be found in field group CRACC in 'Field Group. Open' (CRS108):
- CECSOR Country of organization
- CEECOC Eco-contribution code
- CEECOP Eco-product code
- CEECRG Eco-organization
These fields are available as control objects for accounting rule PP20-249. The account defined against this accounting rule can be used to follow-up the eco-contribution amount in the General Ledger.

To find the valid eco-contribution information, the country code of the goods receiving warehouse is used. Only costing elements defined with charge category 01 trigger the accounting rules for eco-contribution PP20-248 and PP20-249 at invoice matching.
In 'Settings – Cost Accounting' (CAS900)
Setting 085 = 'Crt account entries for non-inventory cost elements' must be selected in (CAS900/H) in order to exclude the eco-contribution calculation from the inventory cost. This makes it possible to add costing elements after operator 99 in the purchase costing model program 'Procurement cost model' (PPS286) and to obtain the accounting entries PP10-226 (Received not invoiced – Line charge) and PP10-982 (Non-inventory charges).

Setup for MBM and media output

The eco-contribution declaration file is created using Infor Enterprise Collaborator.

Basic data for the generic document number MBM should be set up in various programs (CRS027, CRS928, CRS929, CRS116, and so on).

Specific settings for the MBM initiator used for the eco-contribution declaration (ENS106PF) are set up in 'Std Document. Connect Media Ctrl Object' (CRS945) and 'Doc Media Control Object. Connect Media' (CRS949).

It is also recommended that you set up (ENS106PF) in 'Output Service Selection. Open' (MNS204).

'Std Document. Connect Media Ctrl Object' (CRS945)
Select document number 'MBM' in (CRS945) and create an entry for controlling object 1 (PRF1) named 'ENS105' and controlling object 2 (PRF2) named as the supplier number connected to the eco-organization in (ENS010). Enter a description that describes what this is used for, such as "Eco-contribution declaration."
'Doc Media Control Object. Connect Media' (CRS949)
Select Related options 'Media' in (CRS945) to open (CRS949). Create an entry for Media 'MBM'.

The field 'Rcvr ref data 1' must be 'ENS105' and the field 'Rcvr ref data 2' must be set to the supplier number connected to the eco-organization in (ENS010), since this is used in the Infor Enterprise Collaborator Partner Agreement detection. Select the service ID for the Infor Enterprise Collaborator environment.
'Output Service Selection. Open' (MNS204)
It is also recommended that you set up (ENS106PF) in 'Output Service Selection. Open (MNS204) with these:
- Media control selection must be set to 3 for Direct select (3 = Yes, selection from both MNS205 and CRS949)
- Save output must be selected.

Follow These Steps to Process a Declaration File

Open 'Eco-Transaction. Submit' (ENS105).
Select the eco-organization, country of organization, facility, warehouse, delivery date and invoice date, and press Enter. This creates an MBM initiator that triggers Infor Enterprise Collaborator to process a declaration file for the supplier of the eco-organization.
Find your declaration file (.csv) in the output folder on your Infor Enterprise Collaborator server.
Send the declaration file to the eco-organization.
After the eco-organization receives the declaration file, you will receive an email confirming the receipt.
Open 'Eco-Transaction. Display' (ENS100).
Select sorting order 3 and enter today's date in the 'Submit date' field to find transactions included in your declaration file. If more than one declaration file was submitted the same day, you can use the fields 'Submit time' and 'Eco-org' to position in the list of transactions.
Take note of the job number assigned to your declaration file.
Select sorting order 2 and enter the job number in the 'Job no' field.
Select F15='Update to status 80' and confirm the warning message by clicking OK. This will update the status from 20 to 80 for all transactions included in the declaration file.

Follow These Steps to Resubmit a Declaration File (in status 20)

Open 'Eco-Transaction. Display' (ENS100).
Select sorting order 2 and enter the earlier job number in the 'Job no' field.
Select F14=Submit to resubmit the declaration file and confirm the warning message by clicking OK. This creates a new MBM initiator that triggers Infor Enterprise Collaborator to process a new declaration file for the supplier of the eco-organization. A new job number will be assigned.
Follow steps 3-10 above.

Outcome

The transactions included in the declaration file are assigned a job number, submit date and submit time when the declaration file is submitted in 'Eco-Transaction. Submit' (ENS105). At the same time, the status of the transactions included in the declaration file is automatically set to 20 (Included in a declaration run).
An MBM initiator called ENS106PF can be found in 'Output. Manage per Job' (MNS206).
A declaration file for eco-contribution is created in .csv format in the output folder on the Infor Enterprise Collaborator server.
The status of the transactions in the declaration file is raised to 80='Sent to Eco-organization' when F15='Update to status 80' is used in 'Eco-Transaction. Display' (ENS100).

Example for 'Eco-transaction type' settings:

Company A is located in France and delivers a product to company B in France. The product is subject to eco-contribution, so company A adds an eco-contribution to company B's invoice. Later on, company A declares and pays the eco-contribution to the eco-organization, so for company A this transaction is of type 01 (Eco-payable). Since company A has paid the same eco-contribution to the eco-organization as the eco-contribution received from company B, the profit/loss of company A will not be affected.

Company B receives a supplier invoice including this eco-contribution and then delivers the product to customer C, also in France. Consequently, the eco-contribution is added to customer C's invoice. Since company B has added the same eco-contribution to the customer invoice as the eco-contribution paid on their supplier invoice, nothing must be declared or paid to the eco-organization from company B. The profit/loss of company B will not be affected.

In the end, it is customer C who pays for the eco-contribution. This is correct since customer C is the end consumer in the country of the eco-organization.

However, if customer C were located in a different country, for instance Sweden, then customer C should not pay an eco-contribution. Therefore, company B would not be able to add the eco-contribution to customer C's invoice. Instead, company B must be able to ask the eco-organization for a refund for the eco-contribution paid to company A. In this case, the eco-contribution transaction is of type 02 (Eco-receivable) for company B. This eco-contribution will be included in the declaration to the eco-organization as an amount in credit.