White Paper Country Specific Update for Italy Split Payment Setup

7/23/2019 White Paper Country Specific Update for Italy Split Payment Setup

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Microsoft Dynamics AX

White paper.

Country-

Specific

Update for

Italy Split

paymentsetup

Document generation for Task

Recorder. Provides an example how

to meet the requirements for Split

payment in DAX 2012 R3. The

approach is also applicable for

versions DAX2009, DAX2012,

DAX2012R2

White paper

March 2015


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White paper. Country-Specific Update for Italy Split payment setup

Contents

White paper. Country-Specific Update for Italy Split payment setup 3

Introduction 3

High-level description 3

Create new main account for VAT split payment. Form name: Main accounts 5

Create posting group for VAT split payment. Form name: Ledger posting groups 6

Create Sales tax group for Public Administration. Form name: Sales tax groups 8

Create tax code for VAT split payment. Form name: Sales tax codes 9

Create number sequence and number sequence group for Customer Public Administration. 12

Form name: Accounts receivable parameters 12

Assign Sales tax group and Number sequence group to Customers-Public Administration. 15

Form name: Customers 15

Create VAT book 16

Form name: Italian sales tax books 16

Create sections for VAT book. 17

Form name: Italian sales tax book sections 17

Create journal for VAT split payment posting. 19

Form name: Journal names 19

Create and Post invoice (FTI) to Customer-Public Administration 19

Create and post VAT split payment journal. 22

Form name: General journal 22

Settle invoice and VAT split payment. Form name: Open transaction editing 24

Print VAT book report 25

Form name: Sales tax payment 25

Form name: Sales tax (Italy) 27


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White paper. Country-Specific Update for Italy Split

payment setup

Note:The Dataset used in this document is for demo purposes only, please use codes for ledger accounts, VAT,

rates, customer groups, etc. according to the rules accepted in your company.

Introduction

The Stability Law 2015 along with Decrees and Press releases issues by the Ministry of Economy and Finance (MEF)

have established new rules for VAT accounting and invoices issued to Public Administration (PA).

With the new mechanism of the Split payment, will translate the obligations of payment of the tax, in relations with

public authorities expressly stated in the amended Article. 17 - ter, Presidential Decree 633/1972, the transferor /

lender to the public body; the latter, instead of paying the VAT to the supplier, the Treasury will pay directly,

according to the terms and conditions laid down by decree of the Minister of Economy

Therefore, companies that have relationships with the PA will have to manage with a focus such transactions, taking

into account that the relevant VAT shall be recorded in the register sales, but does not contribute to the periodic VAT

payment.

The Split Payment is valid for sales of goods and services rendered to the Public Administration invoiced since the

1stJanuary2015.

High-level description

Here is a short explanation followed by the step-by-step documentation prepared with Task recorder that providesan example of settings and user activities for Split payment.

The invoices issued under Split Payment must be entered in a specific register which could be a Libro IVA (VAT Book)

or Sezionale del Libro IVA Vendite (a section of the already existing book of the sales invoices). Therefore, before all

postings, create a VAT book and separate section in VAT book to report the invoices issued to PA.

To address the requirement to have a special tax posting on account IVA c/Vendite ART 17 TER DPR 63/72, create a

separate tax code and tax posting group for invoicing to PA. Set the same ledger account in Sales tax payable and

Settlement account to avoid sales tax payment posting in GL. As the rest is a normal invoice, this can be managed

by standard invoice posting.

Booking example for sales invoice:


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Account Debit Credit

Invoice accounting Customer_Public Company 1200

Sales revenue 1000

VAT split payment 200

To reduce customer balance and tax being accrued, post a tax transaction with relevant tax code in General journal:

Account type= Customer

Offset account= GL account for VAT Split payment (IVA c/Vendite ART 17 TER DPR 63/72)

Credit field = VAT amount. (or Debit = - VAT)

Account Debit Credit

VAT debt

elimination

Customer_Public Company 200

VAT split payment 200

Settle the created customer transaction with the invoice.

For details, please refer to the Step-by-Step instruction below.


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Create new main account for VAT split payment. Form

name: Main accounts

1 Click Area Page node: General ledger -> Common -> Main accounts.

2

Create Main account 'IVA'.

Note: Make sure the code of Main account is align with rules for COA applied in your company:

Main account Name Main account type

IVA20 IVA split payment Liability


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3

Switch to the Setup tab on the Main accounts - chart of accounts

4 Click the Close toolbar button.

5 Close the Main accounts - chart of accounts.

Create posting group for VAT split payment. Form name:

Ledger posting groups

1 Click Area Page node: General ledger -> Setup -> Sales tax -> Ledger posting groups.


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2 Create new group in table Ledger posting groups:

Ledger posting group Description

IVA_PA IVA Split pay

3 Switch to the General tab on the Ledger posting groups form.


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Sales tax payable Sales tax receivable Settlement account

IVA20 IVA20 IVA20

4 Close the Ledger posting groups form.

Create Sales tax group for Public Administration. Form

name: Sales tax groups

1 Click Area Page node: General ledger -> Setup -> Sales tax -> Sales tax groups.


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2

Create new group in table Sales tax group:

Sales tax group Description Sales tax group setup

PA Public Adm Sales tax codes

3 Close the Sales tax groups form.

Create tax code for VAT split payment. Form name: Sales tax

codes

1 Click Area Page node: General ledger -> Setup -> Sales tax -> Sales tax codes.


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2

Create new tax code 20S.

Sales tax Code Name Settlement period Ledger posting group

20S IVA 20% split payment Mon IVA_PA

3 Click the Values button. Set Value = 20

Note: Make sure you enter the tax rate value that is valid in your Country\Region.

4 Close the Values form.

5 Click the Inquiries -> Included in item sales tax groups menu button.


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6 Close the Sales tax codes in the group form.

7 Click the Inquiries -> Included in sales tax groups menu button.


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8 Close the Sales tax codes in the group form.

9 Close the Sales tax codes form.

Create number sequence and number sequence group for

Customer Public Administration.

Form name: Accounts receivable parameters

1 Click Area Page node: Accounts receivable -> Setup -> Accounts receivable parameters.

2 Switch to the Number sequences tab on the Accounts receivable parameters form.


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3 Make sure the selection is changed in table Number sequence references to:

Reference Number sequence code Sales tax book section Use same number as

Free text invoice voucher Acco_23 Acco_23 Free text invoice

4 Click the Group button.


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5 Create new Number sequence group to get invoices issued to PA in a separate section of VAT book.

6 Switch to the Reference tab on the Number sequence groups form.

7 Make sure the selection is changed in table Number sequence group references to required VAT book section:


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Area Reference Number sequence

Accounts receivable Free text invoice voucher Inv_PA

Accounts receivable Free text credit note voucher Inv_PA

Sales Customer invoice voucher Inv_PA

Sales Sales credit note voucher Inv_PA

8 Close the Number sequence groups form.

9 Close the Accounts receivable parameters form.

Assign Sales tax group and Number sequence group to

Customers-Public Administration.

Form name: Customers1 Click Area Page node: Accounts receivable -> Common -> Customers -> All customers.

2

Make sure the selection is changed in table Customers to Public administration:

Name Customer account

Waterfall Hotel 2001

3 Double-click or press Enter on the selected record in form Customers.

4 Switch to the Invoice and delivery tab on the Customers form.


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5 Make sure sales tax group = PA, created for Public administration

6 Select Number sequence group created for Public administration

7 Close the Customers form.

Create VAT book

Form name: Italian sales tax books

1 Click Area Page node: General ledger -> Setup -> Sales tax -> External -> Italian sales tax books.


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2

Create new VAT book to register invoices to Public administration

Sales tax book Name Sales tax book type Settlement period ATECOFIN Code

VATBookS New VAT Book for sales made under

Split payment

Sales Mon 11.11.11

3 Close the Italian sales tax books form.

Create sections for VAT book.

Form name: Italian sales tax book sections

1 Click Area Page node: General ledger -> Setup -> Sales tax -> External -> Italian sales tax book sections.


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2 Create section in VAT book.

3 Make sure the selection is changed in table Sales tax book sections to:

Sales tax book Sales tax book section Name Number sequence code

VATBookS IVA_PA VAT Book for sales under split payment Inv_PA

Delete unnecessary sections from the book.

Note. With this setup, you get info about invoices issued to PA and reducing of VAT liability in the same section of

VAT book.

To get these records in separate sections of VAT book, create two sections: one for invoices issued to PA, and the

other for split payment. Assign different Number sequences to each section.

4 Close the Italian sales tax book sections form.


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Create journal for VAT split payment posting.

Form name: Journal names

1 Create new journal to register info about split payment VAT invoices to Public administration. Click Area Page

node: General ledger -> Setup -> Journals -> Journal names.2 Create a new record. Change Name from '' to 'PA*'.

3 Switch to the General tab on the Journal names form.

4 Make sure the selection is changed in table Name of journal to:

Name Description Journal type Number allocation at

posting

Account type Offset account

PA-Jour VAT offset jour, split

payment

Daily true Ledger IVA20

Note:Mark Fixed offset accountto ensure the posting done to VAT split payment ledger account.

5 Close the Journal names form.

Create and Post invoice (FTI) to Customer-Public

Administration

1 Click Area Page node: Accounts receivable -> Common -> Customers -> All customers.


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2 Make sure the selection is changed in table Customers to:

Name Customer account

Waterfall Hotel 2001

3 Click the Invoice -> New -> Free text invoice button.

4 Switch to the Free text invoice header tab on the Free text invoice form.

5 Change Date from '4/5/2015'.

6 Switch to the Invoice lines tab on the Free text invoice form.

7 Change Description from '' to 'services'.

8 Change Main account from '' to '0101'.

9 Change Item sales tax group from '' to 'FULL'.

10Change Unit price from '' to '1000.00'.

11 Click the Invoice -> Details -> Sales tax button.


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12Click the Invoice -> Post -> Post button.

13Click the OK button.


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14Copy Invoice number in the dialog form.

Create and post VAT split payment journal.

Form name: General journal

1 Click Area Page node: General ledger -> Journals -> General journal.


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2 Click the New button. Create a new record in the General journal form.

3 Change Name from '' to 'PA-Jour'.

4 Click the Lines button.


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5 Change Date to '4/5/2015'.

6 Change Account type from 'Ledger' to 'Customer'.

7 Change Account from '' to '2001'.

8 Change Invoice from '' to '00000006_028'.

9 Change Sales tax code from '' to '20S'.

10Change Description from '' to 'IVA split payment - offset'.

11 Change Debit from '' to '-200.00'.

Settle invoice and VAT split payment. Form name: Open transaction editing

To reduce the customer balance and moment of journal porting, mark invoice for settlement:

1 Click the Functions -> Settlement menu button.

2 ClickMarkfor invoice record in the Settle open transactions form.

3 ChangeAmount to settle to 200

4 Close theOpen transaction settlement form.

Note:You can perform settlement after journal posting in Accounts receivable -> Common -> Customers -> All

customers, Collect, Settle Open transaction.

5 Click the Post -> Post menu button.


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6 Click the Close button.

7 Close the Journal voucher form.

8 Close the General journal form.

Print VAT book report

Form name: Sales tax payment

Before running the report in update mode, you can check the results in the report following the steps.

1 Click Area Page node: General ledger -> Periodic -> Sales tax payments -> Sales tax payments.


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2 Change From date from '' to '4/1/2015'.

3 Change Transaction date to '4/30/2015'.

4 Click the OK button.

5 Click the OK button.


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Form name: Sales tax (Italy)


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6

Close the Sales tax (Italy) form.


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White Paper Country Specific Update for Italy Split Payment Setup

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