Golden Tax Management for China in M3 Business Engine

Background

In China, all invoices that include VAT must be sent to the government Golden Tax System to retrieve the Golden Tax invoice number and to print the invoice using preprinted invoice documents. Sometimes, invoices with VAT must be excluded from the Golden Tax invoice process, meaning that no detailed information for Golden Tax invoices can be specified before the order invoice is transferred to M3 Business Engine Accounts Receivable Ledger (ARL).

The Golden Tax invoice document might have an amount limit (invoice total in local currency including VAT) which is decided by the government. If the M3 BE invoice issued exceeds the amount limit, several Golden Tax invoices must be issued.

Order invoices

Golden Tax information for order invoices can be handled in two ways:

• Manual process

  Golden Tax information is manually specified in the Golden Tax System. The Golden Tax invoice number is manually specified in 'Golden Tax Invoice. Display/Enter' (GTCN10) before the transfer to Accounts Receivable Ledger (ARL) can be carried out.

• Automatic process

  Golden Tax information is automatically created, adjusted if requested, and transferred to the Golden Tax System using an electronic format. The Golden Tax invoice number is automatically received using an electronic format. The number is then updated on the invoices in (GTCN10) before the transfer to the Accounts Receivable Ledger (ARL) can be carried out.

Which process is to be used is defined in 'Golden Tax Invoice – Settings' (CRCN01) as described in related topics for each type of process.

Internal and other invoices

Internal invoices created in 'Internal Invoice. Create' (MFS100) as well as other invoices (for example, invoices created in 'Customer Invoice. Enter Manual' (ARS120)) are handled according to the manual process regardless of which process is selected in 'Golden Tax Invoice – Settings' (CRCN01).