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Projects:Multitaxreport30/Functional Specification

Contents

Functional Specifications

Functional Specifications sign-off

Role Name Sign-off date
Dev David Alsasua
GPS Juan Pablo Calvente
GPS Jaime Chamorro
QA Pablo Sarobe

Overview & Justification

Purpose

The purpose of this document is to explain how existing "Invoice Taxes Report" must be enhanced to help the users to manually fill in and submit some Spanish Tax Reports.

"Invoice Taxes Report" enhancements are going to be implemented as a new commercial module (extension module), contaning a new report named "Multidimensional Tax Report".
This module is compatible with the "Advanced Payable and Receivable Management" feature.

The "Invoice Tax Report" enhancements described in this document could be extensible to others countries regardless this analysis is based on the Spanish Tax Requirements and the Spanish "GPS" team input, because the main goal of those enhancements is to allow the end-user to exploit the tax information registered in the system.

Overview and Justification

There are two types of Tax Reports:

1) “Statement” Tax Reports.

There are some tax reports that are complex to fill-in and submit to the tax authorities because they need to retrieve or take into account data from many sources besides the tax records saved in the system.

At the same time, the information required while being generated is also complex and cannot be easily handled by what we call a “Multidimensional Tax Report”. "Multidimensional Tax Report" concept is explained later.

This is the case of M-347, M-349, M-340 tax reports.

These reports must be implemented through the Tax Report Launcher, therefore those ones can be generated as a valid file to be submitted to the tax authorities in the AEAT web-site.

2) “Settlement” Tax Reports.

These reports are not so complex than the previous ones because its main purpose is to get a tax settlement based on tax records saved in the system.

These reports can be handle by using a “Multidimensional Tax Report” which can help the end-user to get the basis information in order to fill-in manually these tax reports in the AEAT web-site.

This is the case of M-303 and M-110 tax reports, M-303 is a VAT settlement tax report and M-110 is a Withtholding settlement tax report (of some kind of withholdings).

In addition, the "Multidimensional Tax Report" could also help the end-user to manually fill in few other tax reports that are not planned to be delivered now as part of the next version of the SPLP such as M-190, (which is the M-110 anual version) M-390 (which is the -303 annual version); and few others such as M-115, M-216, M-123 withholding tax reports. Anyway, an additional research is required to better understand if they can be filled-in manually by the end-user by using the "Multidimensional Tax Report" or not and how.

Scope

The approach Localization team is going to take in order to get (2) "Settlement Tax Reports" is to enhance the standard Openbravo "Invoice Taxes Report" as a Multidimensional Tax Report.

Invoice Taxes Report can be found now at the application path: Financial Management // Receivable & Payables // Analysis Tools // Invoice Taxes Report.

New Report could be found at the application path:Financial Management // Receivable & Payables // Analysis Tools // Multidimensional Tax Report.

In Scope:

Out of Scope:

Functional Requirement 1 - Tables

"Invoice Taxes Report" data will be retrieved from the management tables listed below (Not from the accounting table FACT_ACCT) :

Functional Requirement 2 - Data

In order to get reliable tax data for the tax reports, we need to take into account below documents/transactions:

The transaction listed below will be later on taken into account:

Tax Payment:

It is important to remark that in case of a "Tax Payment" end user should follow the steps described here.

Functional Requirement 3 - Accounting Date

Accounting date must be the date to take into account while retrieving tax transactions (*) see FR4 - Existing filters.

Functional Requirement 4 - Filters

Invoice Tax Reports currently has the following filter parameters:

Filter
Type
Mandatory
Description
New Requirements
From Date (*)
Date
YES
"From Date" to be entered by the end-user, system will retrieve tax transactions taken into account the "From Date" entered by the end-user. Document/Transaction Accounting Date is the date to be taken into account.
To Date (*)
Date
YES
"To Date" to be entered by the end-user, system will retrieve tax transactions taken into account the "To Date" entered by the end-user. Document/Transaction Accounting Date is the date to be taken into account.
Organization
Selector
YES
"Organization" to be selected by the end-user from a reference list, system will retrieve tax transactions for the Organization selected. none
Show Invoice info
Check
NO
In case the end-user selects this check box below information must be displayed:
  • Invoice Number
  • Invoice Date
  • Business Partner
This check must be renamed as: "Show Detail Info" as it should also allow the end user to get information about:
  • Accounting Date
  • Invoice Total Amount
  • BP Country
  • BP Region

Besides:

  • Invoice Number must be renamed as "Doc No"
  • Invoice Date must be renamed as "Doc date"
Purchase Transaction
Radio Button
YES
In case the end-user selects this check system will retrieve tax transactions linked to purchase transactions This check must be renamed as: "Purchase/Payment Transaction" because not only invoices must be taken into account but also payments
Sales Transaction
Radio Button
YES
In case the end-user selects this check system will retrieve tax transactions linked to sales transactions This check must be renamed as: "Sales/Receipt Transaction" because not only invoices must be taken into account but also receipts, if any.
Both Transaction
Radio Button
YES
In case the end-user selects this check system will retrieve tax transactions regardless its type. none

Following new filters are required to be implemented additionally, as shown in the screens below (screens which also includes those ones to be modified):

Screen 1 - in case the end-user choose the "Tax" radio button:

Tax selector.png

Screen 2 - in case the end-user choose the "Withholding" radio button:

W selector 1.png


Filter
Type
Mandatory
Description
Tax

Withholding

Radio Button
YES
Tax or Withholding.


In case end-user choose "Tax" - the system will retrieve the tax transactions linked to any of the Tax Rates setup at the application path: "Financial Management || Accounting || Setup || Tax Rate || Tax; do NOT setup as "Withholding Tax"; besides "Tax Rate" selector will be prompt.

In case end-user selects "Withholding" - the system will retrieve the tax transactions linked to any of the Tax Rates setup at the application path: "Financial Management || Accounting || Setup || Tax Rate || Tax; setup as "Withholding Tax"; besides "Withholding Tax Rate" selector will be prompt.

Tax
Selector
NO
End-user will be able to select a Tax Rate; otherwise any Tax Rate will be taken into account while retrieving the tax transactions.
Withholding Tax Rate
Selector
NO
End-user will be able to select a Withholding Tax Rate; otherwise any Withholding Tax Rate will be taken into account while retrieving the tax transactions.
Business Partner
Multiple Selector
NO
This multiple selector will allow the end-user to select a specific group of BP’s, therefore the system will retrieve the tax transactions linked to them.

If this filter is blank system will retrieve tax transactions regadless the BP/BPs those tax transactions are linked to.

Group by Business Partner
Check
NO
It this check is marked the report will show the tax information grouped by BP.

Functional Requirement 5 - Report Layout

The current tax information displayed is not clear enough and it does not help the end-user to manually filled-in tax reports; therefore output  layout must be re-designed the way it is described below:

Report - Header

Invoice Taxes Report must clearly state the transaction type for which tax information/transactions is being retrieved, therefore Header section must show any of the tax transaction types listed below:

Report - Lines

Multidimensional Tax Report must contain below information at lines level per each Tax or Withholding, in case "Show Details info" is checked:

Column
Type
Content
Name
Text
Tax or Withholding Name
Rate
Number
Tax Rate or Withholding %
Doc No
Text
Invoice number in case of invoice transactions, document number in case of payments/receipts
Doc Type
Text
Document type: AP/AR invoice, Payment, Receipt, etc..
Doc Date
Date
Invoice date in case of invoice transactions, document date in case of payments/receipts
Acct Date
Date
Accounting date
BP
Text
Business Partner
BP Country
Text
Business Partner Country
BP Region
Text
Business Partner Region
Taxable Amount (to be renamed as "Tax Base Amount")
Number
Tax Base Amount
Tax Amount
Number
Tax or Withholding Amount
Total Amount
Number
Total amount including tax and/or Withholding


Report - Sub-Totals

Above "Number" type columns but "Rate" must be sum-up in an additional report line in order to get below Sub-Totals:

Report - Totals per Tax Category

Multidimensional Tax Report must also show under Sub-Totals line and before the next Report Summary section a "Totals" section per Tax Category.

End-user will be able to get information about:

The Summed-up Tax Base Amount, Tax Amount and number of BP per each Tax Category; split by Tax Rate (%), which means in the case of Spain:

Tax Category / Tax Name Rate Tax Base Amt Tax Amt
VAT 16%
16
IVA 16% Import
16
IVA 16% National Purchase
16
IVA 16% National Purchase (RE 4%)
4
....others...
VAT 7%
7
IVA 7% Import
7
IVA 7% National Purchase
7
IVA 7% National Purchase (RE 1%)
1
....otros...

New!!! = There should also be a Business Partner summary per tax/withholding rate %, therefore end-user is informed about the number of BP related to a specific rate.

This information is useful for the Spanish tax report 110 in which the Number of BP related to a specific type of withholdings (either employment incomes or economics/professional services) must be submitted.


Report - Totals per Tax/Withholding rate (%)

Regardless the value selected in the "Tax or Withholding" radio button, Multidimensional Tax report must show below summary information at the end of the report, grouped first by Tax or Withholding Rate (including Tax Rate setup as "Withholding Tax" and "Withholdings") and besides by Business Partner in case the end-user selects that Filter:

Column
Type
Content
Name
Text
Tax or Withholding Name
Rate
Number
Tax or Withholding Rate
Total Tax Base Amount Number Total Tax Base amount per Tax or Withholding Rate
Tax Amount
Number
Total tax amount
Total Amount
Number
Total amount including Tax or Withholding amounts.
Number of BP
Number
Total sum of BP with the specific Tax or Withholding Rate (if a BP has several invoices, for example, with the same withholding the BP counts only once).

Report - Lines

Multidimensional Tax Report must contain below information at lines level per each Tax or Withholding Rate, in case "Show Deno Taxtails info" is NOT checked:

Column
Type
Content
Name
Text
Tax or Withholding Name
Rate
Number
Tax or Withholding Rate
Tax Base Amount
Number
Tax Base amount per Tax or Withholding Rate
Tax Amount
Number
Total tax amount per Tax or Withholding Rate
Total Amount
Number
Total amount including Tax or Withholding amounts.
Number of BP
Number
Total Sum of BP with the specific Tax or Withholding Rate (if a BP has several invoices, for example, with the same withholding the BP counts only once).

Multidimensional Tax Report must be export to Excel format by checking the corresponding "Menu" button"

Excel 1.png

Functional Requirement 6 - Tax and Withholding management

  1. A Tax and Withholding tax Rate must be handle as a purchase tax in case of being setup as "Purchase Tax type" and in case of bein used in a:
    1. Purchase Invoice (AP Invoice / AP Credit Memo)
  1. A Tax and Withholding tax Rate must be handle as sales tax in case of being setup as "Sales Tax type" and in case of bein used in a:
    1. Sales Invoice (AR Invoice / AR Credit Memo)
  1. (*) A Withholding must be handle as a purchase withholding in case of being used in a:
    1. GL Journal window
    2. Purchase Invoice header

(*) As already described this feature is not part of the Advanced Payables & Receivables Management, which means that the Payment Plan do not currently handle withholding amounts but the total invoice amount (net amount + VAT amount), by example 100,00 € + 16,00 € in case of a 16% VAT).

Uses Cases

Use Case 1 - A Purchase/Sales Invoice including a Tax rate such as VAT and a Withholding Tax Rate

In this scenario the end-user needs to enter in the system a Purchase Invoice coming from a vendor/supplier (same would apply to Sales Invoices) containing VAT and/or Withholding Rates, for getting that done end-user should follow below steps:

250.00 Expense (60000) 252.50 Vendor (40000)
40.00 VAT (47200) 37.50 Withholding (47510)

For this scenario both VAT and Withholding must be taken into account and therefore shown in the Multidimensional Tax Report as purchase transaction type, by the time the Invoice is posted, which means the Purchase Invoice Accounting Date.

Same applies to Sales Invoices, this time as sales transaction type.

Tax Report examples (M-303,M-110 and M-115)

As described above "Invoice Taxes Report" enhancements are based on Spanish Tax Requirements, regardless it could also be applied to other countries as the main goal is to provide the end-user with a tool to exploit tax information saved in the system.

As a real example or use case scenario, there are two Spanish Tax Report M-303 and M-110 end-user could manually filled in by using the Invoice Taxes Report enhanced as "Multidimensional Tax Report"

M-303 Use Case Scenario

M-303 tax report is a "VAT Settlement" tax report
It can be manually submitted by filling in the form which can be found here:

https://www2.agenciatributaria.gob.es/es13/h/ie93030b.html

M-303 tax report requires below data.

Overall Data section

End-user must enter/select information detailed below:

Payable VAT section (in Spanish "IVA Devengado")

This section collects the Payable VAT coming from:

a) National sales invoices of goods & services split by VAT Rate (16%, 7% and 4%).

b) National sales invoices of goods & services under Equivalence Charge regimen split by VAT Rate (4%, 1%, 0,5%)

c) Intra-community purchase of goods summed-up and do not split by VAT Rate

For getting above information end-user should run Multidimensional Tax Report by selecting:

a) National Sales invoices of goods&services split by VAT Rate (16%, 7% and 4%).

End-user should get and fill in Sales VAT information: Tax Base Amount and Tax Amount , coming from any sales transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up and split by VAT rate (16, 7 or 4) and taking into account the Invoice Accounting Date.

Tax Categories :

b) National Sales invoices of goods&services under Equivalence Charge regimen summed-up and split by VAT Rate (4%, 1%, 0,5%)

End-user should get and fill in Sales VAT information: Tax Base Amount and Tax Amount , coming from any sales transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up and split by VAT rate (4%, 1%, 0,5%) and taking into account Invoice/Manual Settlement Accounting Date.

Tax Categories:

c) Intra-community purchase of goods summed-up and do not split by VAT Rate.

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount , coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless VAT rate (16, 7 or 4)

Tax Categories:

Deductible VAT section (in Spanish "IVA Deducible"):

This section collects the VAT which can be deductible 100% (otherwise VAT proportion rules must be applied) related to:

a) National Purchase of Goods/Services

b) National Purchase of Real Estate

c) Import of Goods/Services

d) Import of Real Estate

e) Intra-community Purchase of Goods/Services

f) Intra-community Purchase of Real Estate

For getting above information end-user should run Multidimensional Tax Report by selecting:

a) National Purchase of Goods/Services:

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount , coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

b) National Purchase of Real Estate:

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

c) Import of Goods/Services:

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount c, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

d) Import of Real Estate:

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount , coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

e) Intra-community Purchase of Goods

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of VAT rates (16, 7 or 4)

Tax Categories:

f) Intra-community Purchase of Real Estate

End-user should get and fill in Purchase VAT information: Tax Base Amount and Tax Amount, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below, summed-up regardless of the VAT rates (16, 7 or 4)

Tax Categories:

VAT Settlement section (In Spanish "Liquidación"):

This sections collect exempt or not-subject to VAT transactions like:

a) Intracommunity Sales of Goods

b) Export of Goods

c) Reverse Charge

For getting above information end-user should run Multidimensional Tax Report by selecting:

a) Intra-Community Sales of Goods:

End-user should get and fill in Sales VAT information: Tax Base Amount as these are VAT Exempt Transactions, coming from any sales transaction linked to the VAT rates belonging to the Tax Categories shown below:

Tax Categories:

b) Export of Goods:

End-user should get and fill in Sales VAT information: Tax Base Amount as these are VAT Exempt Transactions, coming from any sales transaction linked to the VAT rates belonging to the Tax Categories shown below:

Tax Categories:

c) Reverse Charge:

End-user should get and fill in Purchase VAT information: Tax Base Amount as these are not-subject to VAT Transactions, coming from any purchase transaction linked to the VAT rates belonging to the Tax Categories shown below.

Tax Categories:

Rest of Form fields are calculated fields within Tax Form.

M-110 Use Case Scenario

M-110 is a "Withholding Tax Report" which contains information about certain Monetary and Non-Monetary Incomes subject to withhold.

It can be manually submitted by filling in the form which can be found here:

http://www.aeat.es/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Modelos_y_formularios/Declaraciones/Modelos_100_al_199/110/mod110e.pdf

M-110 tax report requires below data.

Overall Data section

End-user must enter information detailed below:

Withholding Settlement section (In Spanish "Liquidación")

This sections collects withholdings grouped based on incomes type, which are listed below:

a) Employment monetary and non-monetary income

- Organizations are required to withhold a certain % at the time these incomes are paid to their employees.

b) Economic activities monetary and non-monetary incomes

- Professionals or Companies are required to include in their sales invoices a withholding %. The withholding amount is withheld by the customer in the payment to the supplier (professionals or companies).

c) Prizes monetary and non-monetary incomes are also subject to withholding

d) Capital gains monetary and non-monetary incomes are also subject to withholding

e) Image rights transfers monetary and non-monetary incomes are also subject to withholding

Withholding information/transactions must be grouped by withholding or withholding rate, therefore end-user must create:

Withholding setup example:


We should setup,same way and as appropiate:

Let's explain most common ones:

a) Employment monetary and in kind incomes

Example: Payroll being paid to an employee.

It is important to remark that OB is not managing Human Resources, therefore this information can not be obtained from the system.

b) Economic activities monetary and in kind incomes.

Example: Professional Services or any other kind of economic activity supplied by a BP

This kind of transactions can be entered in the system by using a purchase invoice including the corresponding Withholding Tax Rates.

Purchase Invoice - See Use Case 1

For getting above information end-user should run Multidimensional Tax Report by selecting:

a) Employment Section

n/a

b) Economic activities Section

End-user should get and fill in below information per withholding rate (by example = Monetary Economic Activity Withholding 15%) or withholding (by example = Non-Monetary Economic Activity Withholding 15%)

  1. Total number of BP
  2. Total Tax Base amount
  3. Total Withholding amount

M-115 Use Case Scenario:

M-115 is a "Withholding Tax Report" which contains information about renting incomes subject to withholding

It can be manually submitted by filling in the form which can be found here:

http://www.aeat.es/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Modelos_y_formularios/Declaraciones/Modelos_100_al_199/115/mod115multidiomas.pdf#zoom=100

M-115 tax report requires below data.

Overall Data section

End-user must enter information detailed below:

Withholding Settlement section (In Spanish "Liquidación")

  1. Total number of BP
  2. Total Tax Base amount
  3. Total Withholding amount

Withholding information required as shown above must be grouped by withholding or withholding rate. It is required that the end-user creates different withholding rates for each renting income subject to a different withholding %, Withholding setup example:

This kind of transactions must be entered in the system as a purchase invoice.


a) Settlement Section

End-user should get and fill in below information per withholding rate (by example = Renting 19%) or withholding (by example =Renting 9%)

  1. Total number of BP
  2. Total Tax Base amount
  3. Total Withholding amount

Research on tax Spanish Tax Reports M-180

M-180 is the Annual version of M-115

For this one end-user should define year range, grouped by BP and showing details.

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