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Exact Globe   
 

Product Updates 417 and 416: Split payment functionality introduced (Italian legislation)

The split payment functionality is now supported in Exact Globe Next for the Italian legislation. With this functionality, the debtors will now pay the net amount of the sales invoices to the creditors and the tax amounts to the tax creditors.

The functionality is applicable to:

  • sales invoices and sales credit notes that are created from the sales journal,
  • recurring sales entries,
  • sales invoices that are processed from the Logistics module,
  • single and multiple taxes sales entries, and
  • XML imports for both financial entries and transactions.

To support this functionality, the following enhancements have been made:

VAT code maintenance

In the VAT codes maintenance screen (accessible via System ➔ General ➔ Countries ➔ Tax codes, and by opening an existing tax code, or creating a tax code), a new check box named VAT Split payment and a field named VAT Split payment account have been added under the General tab. The behavior of the VAT Split payment account field is same as the VAT to Claim field, which will be available when the VAT Split payment check box has not been selected or has been cleared.

The VAT Split payment check box will be enabled when the transaction type Sales has been selected and the percentage that has been defined is not “0.00”. Once the check box has been selected, it is mandatory to define the VAT Split payment account field.

Once the VAT codes have been created, they can be used for both single and multiple taxes.

Note: The change of the selection at the VAT Split payment check box will only affect new entries. The existing entries will remain unaffected by the change.

Creation of write-off entries in the general journal

When saving the sales invoices with the split payment VAT code, the write-off entries will be created as follows:

  • the write-off entries will be created in the first general journal with the same currency code as the sales invoices, or
  • if there is no general journal with the same currency code as the sales invoices, the system will create the write-off entries in the general journal with the Variable currency option enabled.

If there is no matching general journal for the write-off entries to be created in, the following message will be displayed and the saving of the sales invoices will be cancelled:


The message will also be displayed when processing the entries in the Logistics module:

The write-off entries will have the same our reference, date, reporting date and VAT fulfilment date as the sales invoices, and will have the Processed status. The entries will be grouped by the split payment VAT code and will use the general ledger that has been defined as the VAT split payment account.

XML export and import for financial entries and transactions

XML export

When exporting the financial entries (accessible via XML ➔ Financial export ➔ Financial entries), only the sales entries will be exported as the write-off entries will be processed automatically upon creation. When exporting the transactions (accessible via XML ➔ Financial export ➔ Transactions), both the sales and write-off entries will be exported.

XML import

When importing the financial entries (accessible via XML ➔ Financial import ➔ Financial entries), the write-off entries will be created automatically. When importing the transactions (accessible via XML ➔ Financial import ➔ Transactions) with the split payment VAT code, the system will perform a validation process to identify the write-off entries for the existing sales invoices. If no write-off entries are found during the process, the write-off entries will then be created for the transactions.

To avoid entry duplication when importing the financial transactions, the general journal transactions must be imported before the sales transactions. Once the sales transactions have been imported, the corresponding write-off entries will then be automatically created. If there are existing write-off entries, the automatic creation will not be performed.

Editing, voiding, deleting, and unmatching sales invoices and write-off entries

Editing sales invoices

When a sales invoice has been edited with changes that affect the following fields, the write-off entry will be unmatched from the sales invoice, voided, and recreated with the new changes:

  • Date
  • Reporting date
  • Fulfilment date
  • Currency code
  • Amount
  • Payment condition
  • VAT code

Voiding and deleting sales invoices

When a sales invoice has been voided or deleted, the write-off entry linked to it will be voided as well. This behavior is also applicable to the Select/Search and Matching screens.

Unmatching write-off entries from sales invoices

Unmatching the sales invoices manually will not void the write-off entries automatically. Thus, users will need to manually void the write-off entries.

Editing write-off entries

Editing is not allowed for the write-off entries. The following message will be displayed when you attempt to edit a write-off entry:


Voiding and deleting write-off entries

When a write-off entry has been voided, the total amount will be reverted to the sales invoice. This behavior is also applicable to the Select/Search and Matching screens.

Copying logic of the values for write-off entries based on cost centres

The value of a line with its cost centre defined will be copied to the corresponding line for the write-off entries. This behavior will be applied to the write-off entries whether the Enforce balancing on cost centre setting has been enabled or not.


Analytical accounting

Via the enhancement, the VAT code field will be blocked for editing in the sales invoices (with at least one split payment VAT code) and write-off entries.

Note: This limitation is only applicable to the single tax use. The existing limitation for the other fields still applies to both single and multiple taxes.

Select/Search for sales invoices

Via the enhancement, the following fields will be blocked for editing when the sales invoices are grouped by Our ref/Entry in the Select/Search screen:

  • Date
  • Reporting date
  • Fulfilment date

Note: This limitation is applicable to both the single and multiple taxes.

VAT register report

The write-off entries that have been created as part of the split payment will be excluded from the report. See the following report as an example:

 

VAT settlement report

In the VAT settlement report, the split payment invoice amounts will be displayed at the Di cui soggetto ascissione dei pagamenti field. The amounts are derived from the VAT codes with the “S” label, which indicates that the VAT codes are split payment VAT codes and from the VAT codes with the split payment option enabled.

Spesometro report

In the Spesometro report, the split payment transactions will be indicated in the report by the <EsigibilitaIVA> tag.

The following table lists the value that will be displayed at the tag, based on the enabling of the VAT Split payment option and the nature of payment that has been selected:

VAT Split payment option

Nature of payment

Tag value

Enabled

Any

“S”

Disabled

“S”

“S”

Disabled

Other than “S”

The value that will be displayed will depend on the nature of payment that has been selected.

Note: The functionality is not applicable to the entries that have been created in the bank or cash journal or the general journal. These journals will not be able to use the split payment VAT codes that have been created.

     
 Main Category: Attachments & notes  Document Type: Release notes detail
 Category:  Security  level: All - 0
 Sub category:  Document ID: 28.696.843
 Assortment: Exact Globe  Date: 14-08-2019
 Release:  Attachment:
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