Tax Box Allocations and Reporting

Transcription

1 ERP CLOUD Tax Box Allocations and Reporting Oracle Financials for EMEA Table of Contents 1. Purpose of the document Assumptions and Prerequisites Common Setup... 5 Introduction... 5 Tax Regime... 5 Legal Reporting Unit Tax Registration... 6 Tax Reporting Configuration Tax Box Allocation Rules Setup... 8 Tax Reporting Types and Codes... 8 Tax Determining Factor Sets... 9 Tax Condition Sets Tax Box Allocation Rules Transaction Entry in Payables Transaction Entry in Receivables Processing and Reporting Select Transactions for Tax Reporting Tax Allocation Process Tax Allocations Listing report Tax Allocation Exceptions Report Tax Box Return Preparation Report Scenario 1 Periodic VAT reporting Scenario 2 Annual VAT reporting

2 Examples of submitting the report for Summarization Level Both : Examples of submitting the report for Summarization Level Summary : Finalize Transactions for Tax Reporting Restrictions and Recommendations of Usage

3 1. Purpose of the document This document explains the implementation and usage guidelines for the Tax Box Allocation and Reporting feature which includes the following components: Tax Box Allocation Rule setup to establish a correspondence between the tax declaration box numbers and a set of the tax determining factors based on which a transaction tax or taxable amount is reported under a particular tax box number. Tax Box Allocation Process - allocates tax declaration box numbers to transaction tax and taxable amounts. Tax Box Allocation Reports - to verify accuracy and completeness of the allocations and to report on tax declaration box numbers: o Tax Allocation Listing Report o Tax Allocation Exception Report o Tax Box Return Preparation Report The Tax Box Allocation and Reporting feature allows you to report on tax and taxable amounts under tax boxes in accordance with the predefined tax reporting rules. The reporting based on the Tax Allocation Process in intended only for indirect tax regimes. The document explains the prerequisite setup, important transaction entry aspects, report output details and the business flow. 3

4 2. Assumptions and Prerequisites In this document, the following entities are assumed to have already been set up: Data Security Refer to the Fusion Security topical essay available on cloud.oracle.com Geographies Enterprise Structure Tax Regime to Rate setup Tax Party Profiles Tax Rules Suppliers Customers Procurement Business Function Common Options for Oracle Payables and Oracle Receivables It is recommended that the Implementation Project is complete for your organization before commencing the Feature Specific Setup outlined below. If you require further details, refer to the Analyze and Report section of Oracle Financials Cloud (Get Started) web site. 4

5 3. Common Setup Introduction Define the Tax Reporting Configuration to start using the Tax Box Allocation process and reports. The Tax Reporting Configuration determines a reporting configuration based on the Tax Registration Number (TRN) defined for Legal Reporting Unit tax registration and is a basis for country-specific tax reporting. This configuration is referred to as the Tax Reporting Entity. Each Tax Reporting Entity is uniquely identified by entity identifier and is a combination of the Legal Entity, Tax Registration Number and Tax Regime. Tax Box Allocation process and reports are based on the Select Transactions for Tax Reporting process which is a basic tool to prepare taxable records for further tax reporting. The Select Transactions for Tax Reporting is run for a given Tax Reporting Entity, tax period and source. Each run of this process is assigned a system generated reporting entity identifier. This reporting identifier drives all the underlying processes like Tax Allocation Process and Finalize Transactions for Tax Reporting and country-specific tax reports that are based on this solution. Tax Regime Task name: Manage Tax Regimes Navigation: Navigator > Setup and Maintenance -> Manage Tax Regimes Enable Use tax reporting configuration check box at the Tax Regime level. This enables the Tax Reporting Configuration tab on the Create/Edit Tax Registration page. 5

6 Legal Reporting Unit Tax Registration Task name: Manage Party Tax Profiles Navigation: Navigator > Setup and Maintenance -> Manage Party Tax Profiles-> Search for: Legal Reporting Unit Tax Profile ->Tax Registrations Create legal reporting unit tax registration with the Registration Number. Tax Registration Number is a mandatory component of the Tax Reporting Configuration. When the Registration Number is entered the Tax Reporting Configuration tab becomes enabled. 6

7 Tax Reporting Configuration Task name: Manage Party Tax Profiles Navigation: Navigator > Setup and Maintenance -> Manage Party Tax Profiles-> Search for: Legal Reporting Unit Tax Profile ->Tax Registrations->Tax Reporting Configuration Tax Reporting Configuration setup is a part of the LRU Tax Registrations setup flow. Complete the following prerequisite setup detailed above to allow access to the Tax Reporting Configuration tab: Enable Use tax reporting configuration check box at the Tax Regime level; Enter the Tax Registration Number for the LRU Tax Registration. To create the Tax Reporting Configuration: Enter Tax Calendar. The tax calendar to be defined for tax reporting can be different from the accounting calendar you define for ledgers. You define tax calendar using the same Manage Accounting Calendars page. Enable the allocation using the Enable allocation checkbox. This checkbox allows the Tax Allocation Process to be run for a given tax reporting entity. If you don t enable the checkbox the Tax Allocation Process is completed with an error and the log file provides the error message that the tax allocation is not enabled on a given entity. 7

8 4. Tax Box Allocation Rules Setup Tax Reporting Types and Codes Task name: Manage Tax Reporting Types Navigation: Navigator > Setup and Maintenance -> Manage Tax Reporting Types Create Tax Reporting Type with the Tax Reporting Type Purpose as Tax box allocation. Tax Reporting Type with this purpose becomes available for Tax Box Allocation Rule creation but is not available for any other usage. The Tax Reporting Types with other purposes cannot be used in the Tax Box Allocation Rules. Enter the Tax Reporting Codes which represent tax declaration box numbers. You use tax reporting codes to define tax box allocation rules. When a taxable transaction satisfies a tax box rule's conditions, the Tax Allocation Process assigns the tax reporting code to the transaction. Assign Amount Sign: Plus / Minus. The tax box sign determines the sign (+/-) with which a particular tax/taxable amount is allocated to a given tax box and reported in the Tax Box Return Preparation report. In general, the + sign means that no sign switch occurs, and the - sign means that sign switch takes place. For example, in the following tax reporting rule: Rule Source Line Class Product Type Tax Box Type Tax Box Sign 1 AP AP_CREDIT_MEMO Goods Recoverable Tax 92-2 AP AP_CREDIT_MEMO Goods Recoverable Tax tax amount for Payables Credit Memo with Product Type Goods is allocated and reported in the boxes 92 (defined with '-') as positive amount and in the box 102 (defined with '+') as normal negative amount of credit memo. Enter the Box Type to indicate the type of amount the tax box holds. Possible tax box types are: recoverable tax amount (is used for recoverable tax amount in Payables and for tax amount in Receivables) non-recoverable tax amount (is used for non-recoverable tax amount in Payables) recoverable taxable amount (is used for taxable amount proportional to the recoverable tax in Payables and for taxable amount in Receivables) non-recoverable taxable amount (is used for taxable amount proportional to the non-recoverable tax in Payables) total amount (it is a sum of tax and taxable amount). Recoverable tax and taxable amounts types are used for both input tax and output tax (there is no separate types for tax and taxable amount for Receivables). Amount Sign, Box Type and Effective Dates are not updatable on the Tax Box Allocation Rule page. For tax reporting in some countries, you may need to set up different tax boxes for those countries periodic and annual reports. Define different Tax Reporting Types for periodic and annual tax box numbers. Periodicity is specified on the Tax Box Allocation Rules page. For example, you create Tax Reporting Type for periodic tax box numbers intended for all amount types of Payables invoices (11, 12, 13, 14, 15) and Receivables invoices (31, 32, 33, 34, 35) with Product Type Services : 8

9 Tax Determining Factor Sets Task name: Manage Tax Determining Factor Sets Navigation: Navigator > Setup and Maintenance -> Manage Tax Determining Factor Sets Create the Tax Determining Factor Set with the Set Usage Tax box allocation rule. Determining Factor Set with this usage becomes available for Tax Box Allocation Rule creation but is not available for any other usage. The Tax Determining Factor Sets with other usages cannot be used in the Tax Box Allocation Rules. Define the set of tax determining factors you want to use to define the tax box allocation rule. For example, you create Determining Factor Set base on Product Type and Line Class determining factors: 9

10 The following determining factors which are not available for tax rules become available for tax box allocation rules: Determining Factor Class Derived Transaction Input Factor Determining Factor Name Self-Assessed Tax Jurisdiction Code Tax Rate Tax Rate Name Tax Status Code Asset Tax Condition Sets Task Name: Manage Tax Condition Sets Navigation: Navigator > Setup and Maintenance -> Manage Tax Condition Sets The Tax Condition Sets can also be created from the Create Tax Box Allocation Rules page. Create Tax Condition Set based on the Tax Determining Factor Set you created with Set Usage Tax box allocation rule. Create tax condition set for a purchase invoice and product type Service : Create tax condition set for a sales invoice and product type Service : 10

11 Tax Box Allocation Rules Task name: Manage Tax Box Allocation Rules Navigation: Navigator > Setup and Maintenance -> Manage Tax Box Allocation Rules The Configuration Owner field allows you to define the rule for a specific legal entity or at a global level. The rule defined for a legal entity overrides the rule defined at the global level. Rules defined at the global level are only processed when no rules are defined for a legal entity. If you want to share the tax box allocation rule across legal entities then define the rule for Global Configuration Owner. The Report Periodicity field indicates the reporting frequency for which the tax boxes will be used. The possible values are Periodic and Annual. The Tax Reporting Type field displays all the tax reporting types with Tax Reporting Type Purpose as Tax box allocation. In the example below the Periodic allocation has been chosen and the Tax Reporting Type defined above for periodic allocation. Tax Determining Factor Set is used to associate with the tax box allocation rule multiple tax condition sets based on this set of tax determining factors. For the users with the same set of tax boxes for periodic and annual reporting and the same rules of their designation it is enough to create the tax box allocation rules with the Report Periodicity either Periodic allocation or Annual allocation. In this case the tax box allocation rules defined with the Report Periodicity Annual allocation becomes also valid for periodic reporting and vice versa. Use the following tax box allocation rule configuration based on the reporting requirements: Different tax box numbers for Periodic and Annual reporting Different tax box allocation rules for Periodic and Annual reporting Setup No No Create one tax reporting type for the set of tax boxes. Create one type of tax box allocation rule with Report Periodicity either Periodic allocation or Annual allocation. No Yes Create one tax reporting type for the set of tax boxes. Create two types of tax box allocation rules, with Report Periodicity Periodic allocation and Report Periodicity Annual allocation. Yes Yes Create two tax reporting types for the set of periodic tax boxes and the set of annual tax boxes. Create two types of tax box allocation rules with Report Periodicity Periodic allocation and Report Periodicity Annual allocation. 11

12 Enter the Tax Determining Factor Set defined above and navigate to the next step using Next button. 12

13 Add tax condition set for Payables invoice and product type Services defined above. Choose the tax boxes to be allocated to Payables invoice. The Result field allows you to define a set of tax boxes to be allocated. The tax box allocation rule condition result is a set of combinations of the Tax Box Number, Sign, and Tax Box Type. The Result field displays the Tax Box Numbers. Each Tax Box Number is the Tax Reporting Code of the Tax Reporting Type selected at the rule header level. When the tax condition set is satisfied, these combinations are allocated to the transaction line. You may set up rules to assign up to ten tax boxes to one transaction. You cannot update the Tax Condition Set results once you have saved and submitted the rule. Add tax condition set for Receivables invoice and product type Services defined above. Choose the tax boxes to be allocated to Receivables invoice. 13

14 Make sure the two created tax conditions sets are enabled: Make sure the Tax Box Allocation Rule Order is properly setup, either by using the default value or by entering a new one. If there are multiple rules defined then Tax Allocation Process will scan through all the rules in accordance with rules order you defined. For example, if 10 rules are defined and rules 1, 7, 10 are met and each one allocates 5 tax boxes 14

15 then the Tax Allocation Process assigns tax boxes from rules 1 and 7 only. This is because there is a limit to allocate 10 boxes per tax line. That means each tax line can be reported in a maximum of 10 boxes within the same report. Enable the tax box allocation rule for processing. 15

16 5. Transaction Entry in Payables Task name: Create Invoice Navigation: Navigator > Payables Invoices -> Create Invoice Create purchase invoice. As tax condition set is based on the line class and product type, use Product Type determining factor accordingly. In the example invoice below the lines (2) and (3) would be allocated tax boxes (11, 12, 13, 14, 15) because a valid tax box allocation rule condition set was defined for Payables invoice and Product Type Services : - taxable amount proportional to the recoverable tax amount (37, and 1,250.00) is to be shown on tax box 11; - taxable amount proportional to the non-recoverable tax (0.00 and 0.00) is to be show on tax box 12; - recoverable tax amount (3, and 50.00) is to be will shown on tax box 13; - non-recoverable tax amount (0.00 and 0.00) is to be show on tax box 14; - total taxable plus tax amounts (40, and 1,300.00) is to be shown on tax box 15. The lines (1) and (4) will not be allocated tax boxes because there is no valid tax box allocation rule condition set defined for Payables invoice and Product Type Goods or blank: 16

17 You must account all Payables transactions prior to processing them through the Select Transactions for Tax Reporting and Tax Allocation Process. Validate the invoice and account and post to Ledger. Check the validation and accounting status in the Status region of the Create Invoice page. 17

18 6. Transaction Entry in Receivables Task name: Create Transaction Navigation: Navigator > Receivables Billing -> Create Transaction Create sales invoice. As tax condition set is based on the line class and product type, use Product Type determining factor accordingly. In the example invoice below the lines (1) and (4) would be allocated tax boxes (31, 32, 33, 34, 35): - taxable amount proportional to the recoverable tax amount (1, and 2,900.00) is to be shown on tax box 31; - taxable amount proportional to the non-recoverable tax (0.00 and 0.00) is to be show on tax box 32; - recoverable tax amount ( and 0.00) is to be will shown on tax box 33; - non-recoverable tax amount (0.00 and 0.00) is to be show on tax box 34; - total taxable plus tax amounts (1, and 2,900.00) is to be shown on tax box

19 You must account all Receivables transactions prior to processing them through the Select Transactions for Tax Reporting and Tax Allocation Process. Complete the transaction, account and post to Ledger. 19

20 7. Processing and Reporting Select Transactions for Tax Reporting Navigation: Navigator > Tools -> Scheduled Processes-> Select Transactions for Tax Reporting The Select Transactions for Tax Reporting process is a basic tool to extract reportable tax line based on their tax point basis and tax point date. Each run of the Select Transactions for Tax Reporting process is assigned a system generated reporting entity identifier. This reporting identifier drives all the processes and reports that are based on this solution. The reporting identifier is built as a concatenation of the Reporting Level, Legal Entity, Tax Regime, TRN and the Reporting Identifier ID (for example: LE:Vision Italy-1017:IT VAT:IT : ). Reporting Level parameter is a list of the applicable reporting levels: Legal Entity, Ledger, Tax Registration Number. The latter one is to support VAT Group reporting. In accordance with legislations of some countries different companies of the same country may belong to VAT Group and share a single Tax Registration Number. The VAT Group requirements may vary and have specifics in each country or group of countries. The functionality considered below is to meet a major requirement - to allow either reporting on the whole VAT Group (Reporting Level is Tax Registration Number ) or reporting on each member of the VAT group (Reporting Level is Legal Entity ). Tax Registration Number parameter value is combinations of the Tax Registration Number, Legal Entity and Tax Regime. Each combination matches the legal reporting entity created in the Tax Reporting Configuration UI. If the Reporting Level is Ledger or Tax Registration Number, the parameter Tax Registration Number must still be entered and serves the following goals: To identify the Tax Calendar (defined in the Tax Reporting Configuration UI) to be used. To identify the Legal Entity whose legal information to be printed on the reports. Select the transactions that you wish to report for the given reporting entity, period and source: 20

21 Note: There is no report produced for the Select Transactions for Tax Reporting. The log files shows the number of transactions selected, for example: Number of transactions stamped: 8 with reporting batch id: Each tax line of the selected transaction is stamped by the reporting batch id. 21

22 Tax Allocation Process Navigation: Navigator > Tools -> Scheduled Processes-> Tax Allocation Process The Tax Allocation Process allocates tax box numbers to the transactions selected by the Select Transactions for Tax Reporting. The Tax Allocation Process can be run multiple times for a given reporting entity, tax period, and source until the tax period is finally closed. The tax period is deemed finally closed after running the Finalize Transactions for Tax Reporting for a given reporting entity, tax period, and source. When the Reallocate parameter is Yes, the process allocates tax box numbers to all transactions for a given reporting entity, tax period, and source and overrides the previous runs. When the Reallocate parameter is No, the process allocates tax boxes to unallocated transactions from previous runs. Note: There is no report produced for the Tax Allocation Process. Tax Allocations Listing report Navigation: Navigator > Tools -> Scheduled Processes-> Tax Allocations Listing Report The Tax Allocations Listing Report lists all the transaction lines with the allocated tax box numbers. Use this report to verify whether the tax box numbers associated with the transaction lines are correct. If some of the allocations are not correct, you can revisit the tax box allocation rules to make corrections and then re-run the Tax Allocation Process with the Reallocate parameter Yes. 22

23 You will get the following report output: 23

24 Tax Allocation Exceptions Report Navigation: Navigator > Tools -> Scheduled Processes-> Tax Allocation Exceptions Report The Tax Allocation Exceptions Report lists all the transaction lines that are not allocated with any tax box numbers. The invoice IT_APINV_1001 lines (1) and (4) and transaction IT_ARINV_1001 lines (2) and (3) will be listed in the Tax Allocation Exceptions Report. You will get the following report output: 24

25 Tax Box Return Preparation Report Navigation: Navigator > Tools -> Scheduled Processes-> Tax Box Return Preparation Report Use the Tax Box Return Preparation to report tax box numbers at detail and summary level. This report can be used as a basis for the preparation of tax returns. Use Tax Calendar Year parameter to report transactions on annual basis. For example, if your current period is April, and you want to report on all tax boxes allocated from January to April, run the report for Tax Calendar Year. Use Tax Calendar Period parameter to report transactions for a certain period. Don t run the report for both Tax Calendar Year and Tax Calendar Period parameters; in this case the report is completed with an error. If you need to customize the report, the details on how to customize the BI templates are described in BIP topical essay. Scenario 1 Periodic VAT reporting 25

26 For the preparation of periodic VAT returns submit the report for a particular Tax Calendar Period (see examples of parameters below). The Report Periodicity parameter is a list of periodicities of Tax Box Allocation Rules applicable to the reporting entity for which you run the Tax Box Return Preparation report (selected as Reporting Identifier parameter). Therefore you must define at least one Tax Box Allocation Rule with certain Report Periodicity to submit the report for the same Report Periodicity (see Tax Box Allocation Rule section). If tax box allocation rules for periodic and annual reporting are different you must submit the report for the Report Periodicity: Periodic allocation. If tax box allocation rules for periodic and annual reporting are the same than the value of the Report Periodicity parameter doesn t matter and you can submit the report for the Report Periodicity either Periodic allocation or Annual Allocation. Tax Calendar Year parameter must not be populated, otherwise the report will be completed with an error. Use the parameter Summarization Level to print either only the summary sections or detail section or both summary and detail sections of the report. You may have a huge volume of data in a particular period and use Summary level for the legal reporting purposes while Detail level reporting can be used for auditing. The summary level reporting shows summaries by tax box number and for the whole report. You can produce multiple preliminary versions of the report before the period is finally closed. As soon as the period is finally closed the first run of the report after that is treated as final. The final report output is stored for future reference and can be re-printed from the Transaction Tax Report History UI. You will get the following report output (only particular pages of the report are shown below for example): 26

27 27

28 28

29 Scenario 2 Annual VAT reporting For the preparation of annual VAT return submit the report for a Tax Calendar Year (see examples of parameters below). The Report Periodicity is a list of periodicities of Tax Box Allocation Rules applicable to the reporting entity for which you run the Tax Box Return Preparation report (selected as Reporting Identifier parameter). Therefore you must define at least one Tax Box Allocation Rule with certain Report Periodicity to submit the report for the same Report Periodicity (see Tax Box Allocation Rule section). If tax box allocation rules for periodic and annual reporting are different you must submit the report for the Report Periodicity: Annual allocation. If tax box allocation rules for periodic and annual reporting are the same than the value of the Report Periodicity parameter doesn t matter and you can submit the report for the Report Periodicity either Annual allocation or Periodic allocation. Tax Calendar Period parameter must not be populated, otherwise the report will be completed with an error. Use the parameter Summarization Level to print either only the summary sections or detail section or both summary and detail sections of the report. The summary level is recommended due to a huge volume of data for the whole year. The summary level of annual reporting is different from the summary level of periodic reporting. The summary level reporting shows Summary for Report Type sections for each month within the selected year and the Summary for Report Type section for the whole year. For final version of the annual report you must finally close all the periods within the year (running final version of the periodic report for each period if it is required) and then to run the annual report. 29

30 Examples of submitting the report for Summarization Level Both : You will get the following report output (only particular pages of the report are shown below for example):

31

32 Examples of submitting the report for Summarization Level Summary : You will get the following report output (only particular pages of the report are shown below for example):... 32

33 ... 33

34 34

35 Finalize Transactions for Tax Reporting Navigation: Navigator > Tools -> Scheduled Processes-> Finalize Transactions for Tax Reporting The Finalize Transactions for Tax Reporting updates the tax records (on lines and distributions levels) as finally reported and the tax period is deemed finally closed. This process has no any impact on the accounting periods. Transactions newly entered in the finally closed tax period are not processed by the Tax Allocation Process in the next tax period. Use the Finalize Transactions for Tax Reporting to get the final version of the Tax Box Return Preparation report and country-specific tax reports based on the Select Transactions for Tax Reporting process. The first run of these reports after the Finalize Transactions for Tax Reporting is considered to be a final reporting. The content of final versions of the reports is supposed to be submitted to tax authorities. Before proceeding to running the Finalize Transactions for Tax Reporting, it is important to review country-specific tax reports that were previously run. If there are transactions that you expect to be reported that aren t in the reports, you may need to check the setup or enter missing transactions and re-run the Select Transactions for Tax Reporting. Note: There is no report produced for the Finalize Transactions for Tax Reporting process. 35

36 Restrictions and Recommendations of Usage 1. Finally close an initial tax reporting period: In order to have a proper preliminary reporting it is recommended either to finally close preceding 'blank' period or to accurately close the first reporting period. Blank period is the period preceding the first reporting period. For example, if you start working from JAN-15, use one of the following recommended approaches. a. 'Blank' period approach i. Run Select Transactions for Tax Reporting process for DEC-14 for both sources. ii. Run Finalize Transactions for Tax Reporting process for DEC-14 for both sources. b. First reporting period approach i. Run Select Transactions for Tax Reporting process for JAN-15 for both sources. ii. Run Tax Allocation Process for JAN-15 for both sources. iii. Run preliminary Tax Box Allocation Reports for JAN-15 and make sure everything is correct. iv. Run Finalize Transactions for Tax Reporting process for JAN-15 for both source. v. Run final version of the Tax Box Allocation Reports. It is not allowed to report on the periods that are earlier than the first finally closed period. 2. Do not change the reporting context: The entire reporting process including Final for all reporting levels (Legal Entity, Ledger, TRN) in parallel is not supported. Choose the required reporting level for final reporting and use it for final closing of your initial period (considered above). All subsequent periods must be closed for the same reporting level. For example, the most commonly used reporting level is Legal Entity, using blank period approach the following should be done: i. Run Select Transactions for Tax Reporting process for Reporting Level Legal Entity, for Tax Calendar Period DEC-14 and for both sources. The reporting entity identifier is generated. It is based on the Legal Entity. ii. Run Finalize Transactions for Tax Reporting process for the this reporting entity identifier, for Tax Calendar Period DEC-14 and for both sources. iii. For final reporting run all processes and reports for all subsequent periods only for this reporting entity identifier. In context of this restriction and within the VAT Group configuration the final reporting on both individual legal entity and the VAT Group (Reporting Level is Tax Registration Number ) is not possible. Therefore you must decide to finally report on either individual members of the VAT Group or on the whole VAT Group. 3. Do not change the period types: The entire reporting process including Final for different period types (example: month, quarter) in parallel is not supported. Choose the required period type for final reporting and use it for final closing of your initial period (considered above). All subsequent periods must be closed for the same period type. 4. Preliminary reporting for any period: If the first reporting period has been correctly closed (for example, DEC-14 and then JAN-15), then run the Select Transactions for Tax Reporting process consecutively for each period (FEB- 15, MAR-15,..., DEC-15, etc.). The reporting for each period is done for the transactions that have tax point 36

37 dates falling in the reporting period. It is possible to run preliminary reporting scattered within multiple periods without Finalize Transactions for Tax Reporting process and even to have gaps, for example: i. Run the Select Transactions for Tax Reporting process and Tax Box Allocation process and reports for FEB-15: the reports will have only transactions with tax point dates in FEB-15. ii. No running Select Transactions for Tax Reporting process in MAR-15. iii. Run the Select Transactions for Tax Reporting process and Tax Box Allocation process and reports for APR-15: the reports will have only transactions with tax point dates in APR Final reporting in chronological order without gaps: Final closing of the periods must be done consecutively. The next period that can be closed in the above example is FEB-15. No gaps are allowed in between finally close periods. As soon as a you decide to run Finalize Transactions for Tax Reporting process for the period, the whole set of processes and reports must be run: i. Run the Select Transactions for Tax Reporting process for FEB-15. ii. Run the Tax Allocation Process for FEB-15. iii. Run preliminary Tax Box Allocation Reports for FEB-15 and make sure everything is correct. iv. Run Finalize Transactions for Tax Reporting process for FEB-15 for both source. v. Run final version of the Tax Box Return Preparation report for FEB Correction transactions: Always run the whole set of processes and reports before running the Finalize Transactions for Tax Reporting process. You should re-run the Select Transactions for Tax Reporting process and ensure all expected data are shown in the report. In the above example, you may work in APR-15, but still enter some transactions with tax point date in JAN-15, which is already finally closed. These so called correction transactions are picked by the Select Transactions for Tax Reporting process in the following open period, which is FEB-15. Therefore before final close of FEB-15 you must re-run the Select Transactions for Tax Reporting process for FEB-15, otherwise you may lose the correction transactions. The Tax Allocation Process also allocates tax boxes to the correction transactions. 7. Further reporting of the already finally closed period: Running the Select Transactions for Tax Reporting process and the Tax Allocation Process for finally closed period is not allowed and will be completed with an error. 8. Cancellations and modifications of the finally reported transactions: Do not cancel or modify transactions finally reported to tax authorities. Enter separate correcting transactions, as for example Credit Memos, in the subsequently open periods to adjust or offset the original finally reported transactions. Use the preliminary reporting to identify erroneous transactions and cancel or modify them before the final reporting. 37

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