Report EU Sales

Outcome

Overview of the outcome of EU sales/purchase reporting:

• A proposal is created listing the individual transactions followed by total amounts for each 'from' country, 'to' country, VAT registration number, triangular trade and VAT on services. The transactions can be reviewed online in 'EU Sales/Purchase. Open Lines' (TXS136) and 'EU Sales/Purchase. Open Transactions' (TXS137). A paper report (TXS133PF) is also available.
• Two M3 Business Messages are created. One electronic file that contains total amounts for each 'from' country, 'to' country, VAT registration number, type of triangular trade, VAT on services, and goods movement. Another file with the report header information. Depending on the setup, an additional file with additional report header information can also be created. The files are stored in the output folder selected when Infor Enterprise Collaborator is set up.
• The reporting currency is the local currency of the base country, the country for which the reporting is made.
• The electronic file is sent to the tax authorities according to a previous agreement on format, for example, mail or disk.
• The confirmed EU sales/purchase report is saved in these tables: FQRSUG (report proposal), FQRLIN (totals for each VAT registration number), FQRDET (detailed transactions for each VAT registration number), and FQRHEA (report header).
• All transactions included in the EU sales/purchase report are labeled with a report number stored as additional information number 028 in the general ledger detail table, FGLEDX, when the report proposal is confirmed. Consequently, all transactions included in the report can be displayed by specifying the report number for additional information number 028 in 'General Ledger. Display Additional Info' (GLS250).

Before you start

• The financial system must be configured for VAT management.
• Number series 64/C, used to number the EU sales and purchase reports must be defined in 'Number Series. Open' (CRS165).
• The company must have an agreement with the tax authorities stating how electronic reports will be transmitted.
• Fields with country-specific information to be included in the report header must be defined in 'Taxation Reporting. Open Report Fields' (TXS035). As the legal requirements for the reporting of EU sales differ between the EU member states, the fields may need to be defined to include information unique to the specific country requirements in the report header (see the configuration guide for the message for fields required). The additional fields will be transmitted through API program (TXS035MI) and included in the report header created, as described below.
• If a company-internal tax declaration number will be proposed automatically in the header of the taxation report, the number must be defined for the division in 'Company. Connect Division' (MNS100). For the reporting of EU sales and purchases for a specific fiscal representative, the tax declaration number can also be defined for each fiscal representative in 'Fiscal Representation. Open' (TXS030). If a fiscal representative is found, the number defined for the fiscal representative will override the number defined for the division. Note that the 'from' country, the 'to' country and the base country for the fiscal representative must be the same.
• Infor Enterprise Collaborator must be set up, as described in the technical documentation for that tool.
  Note:  The MBM initiator will initiate the generation of the electronic report using a business message based on document 513 in 'M3 Document. Open' (CRS928). For details, see the design document for the message.
• If applicable for the country, any cash discount must be recorded on separate accounts. According to International Financial Reporting Standards (IFRS), it is mandatory in most countries to report the impact of cash discounts on EU sales. Cash discounts are included in the EU sales report by using the VAT report template.
• At least one VAT report template must be defined in 'VAT Report Template. Open' (TXS005). The template lines defined in 'VAT Report Template. Connect Lines' (TXS008) determine which transactions will be retrieved for the report, for example, transactions from specific accounts, VAT account types, and countries. Thus, it is the template that determines whether the report created in 'EU Sales/Purchase. Open Proposal' (TXS130) declares EU sales or EU purchases.

  If invoice corrections are reported separately, the balance table FQRBAL must be created in the 'EU Sales/Purchase. Create Balance File' (TXS132).

Follow these steps

1. Create a corrective report.

   1. Optionally, if new transactions were added after the first report was created, create a corrective report at a later stage by selecting option 7='Create corrective report' against the confirmed proposal on 'EU Sales/Purchase. Open Proposal' (TXS130/B).

      The proposal is now reclassified as corrective and has the status of 'proposal is created' on the B panel.

   2. Print, review, and confirm the report.

      A corrective report number is automatically assigned to the proposal after it is confirmed.

2. Create a proposal.

   1. Manage the EU sales and EU purchase reports in 'EU Sales/Purchase. Open Proposal' (TXS130).

   2. Specify an ID for the proposal and select the base country for which the reporting is done. Define a range of VAT dates and specify the VAT report template to use as criteria for the selection and, if applicable, any specific range of lines in the template to apply. The range is the VAT dates between which M3 will select VAT transactions and VAT-generating transactions in the general ledger for the report.

   3. Select whether to include only non-declared transactions that were already reported or all transactions. Only non-declared transactions are included in an EU sales/purchase report but for analysis purposes, it might be relevant to include reported transactions (for example, when printing an EU sales report for the entire year or when creating a corrective EU sales report).

   4. Select whether to include invoice corrections. The originally reported amount in a past period is adjusted by the correction in the current period when corrections are performed later in the process. These corrections are reported in separate transactions.

   5. Press Enter to create the proposal. If no transactions matching the selection criteria were found, the proposal receives the status of 'No lines were found' on (TXS130/B).

3. Create the report.

   1. Before creating the report, open (TXS035) and verify that any additional country-specific values to include in the report header are correct and complete. If an alternative address is defined using additional field 505 with address type and number as optional information defined for additional field 506, the address information will be retrieved from the internal customer or from the address type and number of the internal customer when the report header is created.

   2. Select the Confirm option for the proposal on (TXS130/B) to confirm the proposal and create the electronic report through API programs (TXS130MI) and (TXS035MI).

      The proposal is automatically assigned the status of 'Proposal is Confirmed' on (TXS130/B).

4. Review the proposal.

   1. Select the option Lines on (TXS130/B) and review the transactions in the EU Sales/Purchase proposal.

   2. If needed, print the report proposal. Since the report can be extensive, it is not printed automatically when the proposal is created. The report lists totals for each VAT registration number together with detailed transactions.

5. Correct transactions included in the proposal. If any discrepancies are found, the transactions in a proposal can be corrected by selecting one of these alternatives:

   • Delete a transaction in 'EU Sales/Purchase. Open Lines' (TXS136).
   • Delete a detailed transaction in 'EU Sales/Purchase. Open Transactions' (TXS137).
   • Change the reported amount on a detailed transaction in 'EU Sales/Purchase. Open Transactions' (TXS137). If required, specify a correction period to indicate the period when a correction was made.
   • If a detailed transaction is deleted or changed, update the reported amount on the related line in 'EU Sales/Purchase. Open Lines' (TXS136) accordingly.

     Changing the amount on a detailed transaction in the EU sale/purchase proposal does not change the amount on the corresponding transaction in the general ledger.

6. Define a report header.

   1. Define the values to include in the report header by selecting the 'Create header info' option on (TXS130/B). On the E-panel, verify that the time span for the report is correct: calendar year, calendar period and, if applicable, the quarter for the year.

      M3 specifies the period and the quarter automatically if the range of VAT dates used as selection criteria on (TXS130/E) are within the calendar dates of one period or one quarter of the year. If the dates span more than one period or quarter, a zero is displayed in these fields. All fields are editable.

   2. Verify the company address, telephone number, VAT registration number, and any company internal tax declaration number.

Visual representation of the proposal and report creation process

Limitations

The functionality is available in division where the tax method is VAT.

• VAT dates on proposals where 'Include invoice corrections' is enabled.

  The field 'Original invoice amount' is updated on transactions related to invoice corrections when 'Include invoice corrections' is enabled on an EU sales/purchase proposal. The amount is retrieved from field 'Correct invoice amount' in the balance table FQRBAL. When EU sales/purchase reporting is performed per period, transactions are created in the balance table FQFBAL per period and when reporting is done quarterly transactions are created per quarter.

  In order to retrieve a correct 'original invoice amount', the VAT 'from' date and VAT 'to' date on the proposal must be:

  • Equal to a period when reporting is done per period.
  • Equal to a quarter when reporting is done quarterly.
• Reporting period on report header where 'Include invoice corrections' enabled.

  The fields 'Year' 'Period' and 'Quarter' are updated on the report header (TXS130/E). The fields are not open for editing when 'Include invoice corrections' is enabled.

  The year, period, and quarter are calculated from the VAT 'to date' on the proposal. When reporting is done quarterly, the period will be set to the last period of the quarter. The fields are open for editing when 'Include invoice corrections' is disabled.

• Invoice corrections in EU sale / purchase proposals.

  The field 'Original invoice amount' is updated in EU sales/purchase proposals where 'Include invoice corrections' is enabled. The field is updated on invoice corrections where the original invoice was EU sales / purchase reported in a previous period. If the invoice correction and the original invoice are included in the same proposal, the amount on the invoice correction and the original invoice are added together in the field 'Recorded amount'.