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Introduction 1.1. Purpose This document should give an indication how the existing modell 770 for Italian localization of Microsoft Dynamics 365 Finance and Operations can be enhanced that it can be used also for data preparation/ correction processes for later submission using Certificazione Unica form. Scope The idea is to enable the users before generating the CU file (Data export of withholding tax transactions see also following link to the technical file description https://www.agenziaentrate.gov.it/portale/documents/20143/296961/Provvedimento+15012019+Certificazione+Unica_Specifiche+CUR+2019+%2804_02_2019%29.pdf/fff68832-b056-5655-fb26-428fd3f08664) to correct data/ transactions without reversing payments/ settlements. The main issue is, that the recommended process by Microsoft would be unsettle a payment, even if the payment is done month ago and we would unsettle an already reconciled transaction in bank module too, post a new payment and settle the transaction again. Due to the timing difference (Banks and the statements are reconciled and the periods are closed) and additionally high and complex effort, this is a no go for the business. 1.2. Solution Idea general Provide an interface for users that enable them to create/ delete or change withholding tax transaction until they are submitted = CU file is generate in original version for the period. This would ensure flexibilkty in correcting data without affecting other processes/ modules, manly Bank/ Cashmangement and vendor payments. From functional perspective the logic of modello 770 can be a kind of a blueprint. Herby the currently modello 770 should not only be a modello 770 functionality, further more it should be a correction interface beforehand as for Intrastat and then the functionality to export, whether this is modello 770 or any other format such as certificazione unica does not matter. In this case Certificazione unica is not a new feature it is just a new generic electronic report. Based on modello 770 at least 95% is directly or indirectly solved, means we face only very small enhancements. 1.3. General Config assumtions The methodology of the standard configuration neither withholding tax postings into GL nor vendor postings should be changed. Config remain untouched. 2. Proposal Idea 2.1. Overview The users should before run CU (in my opinion this should be a Generic Electronic Report that Microsoft provides in the standard asset library) have an Interface such as known from Intrastat or modello 770. The modello 770 already includes more or less all important columns and functionalities. The only problem is that this functionality is limited to modell 770 and is not an “open” withholding tax adjustment/ correction interface, that the user after doing that can decide which report/ data exract he wants to run. 2.1.1. Required steps 1. Copy withholding tax trans into a new table that allows editing transactions such as This can happen via pressing “transfer button” ( you see in general we are talking about the already existing functionality, but the existing is limited to modello 770) In general all the shown new filed are already in the table (most of them currendly simply not published but the logic if it is there. Function Transfer: Copy data fromm withholding tax trans, setting Change Reason Code “WHT Reason” to Original = Set value “Original” in WHT reason Code when transfer the data. Function Correction Submission: Only active when there are transactions that have submission status “Original” or higher. The function should first copy all transactions that are submitted (status = Original) set submission status to “draft” and set Change Reason Code “WHT Reason” to Correction. This transactions should be editable in the way as they were after transfer from withholding tax trans. (The functionality is already in the system, e.g. on header level checkbox “exported” or when run the Export checkbox “original”. From the mentioned “new” fields only “Protocollo Telematico” is new. This number covers the corrections for already submitted transactions Submission Status When running the CU declaration the status must be change from Draft to Original and the transactions itself should not be editable anymore the. If later on a change is necessary, Correction submission menu item needs to be selected = sets the generated transaction into draft Change Reason Code “WHT Reason” Drop down mandatory selection (choosing one value out of 3 values (add, remove and change)) system generated statuses are Original and Correction (not manual selectable Protocollo Telematico When running the CU declaration the Protocollo Telematico needs to be specified and transferred down to the field af all transactions that are part of the CU Entered date Timestamp of data generation/ removal/ change or addition Entered user User name that Add/remove/changed or generated the entry 2. The following fields need to be included (the defaulted are marked, the other can be added by the users to the form): (Current Standard form TaxReport770Table_IT and table TaxReport770Table_IT(TaxReport770Table_IT) Field Name Visibility Default Payment voucher Yes Company accounts no Date Yes Withholding tax code Yes Payment currency Yes Description no Amount origin Yes Withholding tax in payment currency Yes Amount exempted from withhold in default currency Yes Amount exempted from withhold in invoice currency Yes Amount exempted from withhold in payment currency Yes Amount exempted from withhold in withholding tax currency Yes Base amount in invoice currency Yes Basis for withholding tax calculation in default currency Yes Basis for withholding tax calculation in invoice currency Yes Basis for withholding tax calculation in payment currency Yes Basis for withholding tax calculation in withholding tax currency Yes Competence date no Invoice Yes Invoice amount to be paid in invoice currency Yes Invoice currency Yes Invoice voucher Yes Journal batch number Yes Not taxable expenses in default currency Yes Not taxable expenses in invoice currency Yes Not taxable expenses in payment currency Yes Not taxable expenses in withholding tax currency Yes Not withhold taxable by treaty in default currency Yes Not withhold taxable by treaty in invoice currency Yes Not withhold taxable by treaty in payment currency Yes Not withhold taxable by treaty in withholding tax currency Yes Payment vendor account Yes Posted Yes Sales tax amount in invoice currency Yes Vendor account Yes Voucher Yes Withholding tax accumulated base amount Yes Withholding tax currency EUR Withholding tax group no Withholding tax in default currency Yes Withholding tax in invoice currency Yes Withholding tax in withholding tax currency no Modified date and time Yes 2.1.2. New Columns (mentioned above) Submission Status Draft, Original, Correction 1, Correction 2 etc. Protocollo Telematico Provided submission number of the authorities when cancelling (when submit the original = needs to be manually entered) Change Reason Code “WHT Reason” Drop down mandatory selection (choosing one value out of 3 values (add, remove and change)) system generated statuses are Original and Correction (not manual selectable 2.1.3. Functions of the new columns Submission Status When running the CU declaration the status must be change from Draft to Original and the transactions itself should not be editable anymore the. If later on a change is necessary, Correction submission menu item needs to be selected = sets the generated transaction into draft Change Reason Code “WHT Reason” Drop down mandatory selection (choosing one value out of 3 values (add, remove and change)) system generated statuses are Original and Correction (not manual selectable Protocollo Telematico When running the CU declaration the Protocollo Telematico needs to be specified and transferred down to the field af all transactions that are part of the CU Entered date Timestamp of data generation/ removal/ change or addition Entered user User name that Add/remove/changed or generated the entry 2.1.4. Drop down menu for change reason code (optional, because function is already in the system) To ensure tracability all changes (add, remove and change) the already existing field reason code should have an drop down menu choosing one value out of 3 values (add, remove and change) 2.2. Additional Grids/ Forms 2.2.1. Transactions grid For easier checking, the form monthly tax payments from “Modello 770” should be visible too (in non editable mode) This view simply should visualize all performed payment. Simply copy the view for the related period selected. 2.2.2. Vendor totals grid The 2nd form that should be copied from Modello 770 1:1 is the vendor totals form. This form shows after all changes made obove the withholding tax transactions that are reported per vendor in CU/Modello 770 or whatever export as totals. This form becomes/ is a control from. 2.2.3. Totals grid company The 3rd grid is the totals form that ia also an 1:1 copy from modello 770 2.2.4. Change grid (Add-On to give the user a kind of change log) The 4th grid is may the most important one because it should reflect the a kind of change log of the transactions. The grid should show all changes per transaction, means each transaction that was transferred and the added transactions should be shown ( joined by transferred rec-ID (kind of original reference ID) or manual added transaction) The Change log is then the to do list for adjusting General Ledger and Purchase Ledger. It can look like the following It should only show transactions that are not in Change Reason Code “Original”. For sure the new column should be visible. If only changes are on master data (not values) the lines should be shown, but with amount change 0. (change log idea for audit purposes and internal control) 2.3. Nest process step and Link to Certificazione Unica (CU) Based on the result of this changes/ Additions and removals the CU should take, in the same way as modello 770 does, the transactions and collect the transactions in the structure that is defined by Generic Electronic Reporting. It can look like this: This functionality should only cover the withholding tax components. See published file structure from government. https://www.agenziaentrate.gov.it/portale/web/guest/schede/dichiarazioni/certificazione-unica-2019/st-cu-2019 2.4. Optional content ( step 2 when Microsoft wants to implement full Certifcazione Unica content) When including the Generic electronic reporting file as described above, the CU-Format may can also refer to a table that includes vendor/ field of the certificazione Unica and amount. Table could be filled manually/ Excel Add-In 3. Process 3.1. Description Select the new menu item Then press the transfer button. Similar current modello 770 standard This function should start the copy process of transactions from withholdin tax trans e.g. by using the following selection criteria (optional, due to the fact that Microsoft solved this in the modello 770 via the year information on header level) When doing this the new fields / columns should have the following values: Submission Status Draft Change Reason Code “WHT Reason” Original Protocollo Telematico empty Entered date Timestamp of data generation Entered user User name that transferred the data You should see a result similar to the following Now you should be able to change/ add/ remove data like in the following. When you are done just save. Based on the now existing changes in this new “withholding adjustment table”, the CU / Modello 770 generation procedure can be run by referring to this table. 3.2. Correction process after submission of CU 3.2.1. Approach for corrections (idea) Function Correction Submission: Only active when there are transactions that have submission status “Original” or higher. The function should first copy all transactions that are submitted (status = Original) set submission status to “draft” and set Change Reason Code “WHT Reason” to Correction. This transactions should be editable in the way as they were after transfer from withholding tax trans. Based on the now existing changes in this new “withholding adjustment table”/ currently form Withholding tax - Model 770 the CU/ Modello 770 generation procedure can be run by referring to this table. 4. Security Considerations The role who is designated to perform this steps. 5. Configuration required No additional configuration required 6. Optional Idea to enhance (see relation to 2.4) Based on this idea a new independent table of entered manual data can be merged with the mentioned adjustment table (Import into that) to includes social security data that is also part of the Certificazione Unica report, but not separately tracked in Dynamics. This separate table simply specified the related amounts and only one criteria must differ from the withholding tax transactions e.g. report field. Based on that the GER file can mapp it correctly to the Certificazione Unica file structure.

Category: Tax
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Hi Claudius,

This is Eric from Microsoft Dynamics 365 tax product team. Could you send me the original document to wangchen@microsoft.com? It seems there is a format issue here for your posting.

Regards
Eric

Category: Tax