VAT Reporting for France
ERP CLOUD
Fusion Financials for EMEA
Table of Contents
1.
Purpose of the document ..................................................................................................................... 2
2.
Assumptions and Prerequisites............................................................................................................. 2
3.
Feature specific setup ........................................................................................................................... 3
New Tax Rate ............................................................................................................................................ 3
Add User-Defined Fiscal Classification ...................................................................................................... 4
Define new tax rule for deferred rate ....................................................................................................... 5
4.
Transaction Entry (use the User-Defined Fiscal Classification Code) and Payment ............................. 9
5.
Reporting............................................................................................................................................. 14
6.
Appendix ............................................................................................................................................. 17
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1. Purpose of the document
This document explains the implementation and usage guidelines for the following report:

Deductible VAT Declaration Report for France
The document explains the prerequisite setup, important transaction entry aspects, report output
details and the business flow.
You can use the Deductible VAT Declaration Report for France to list tax amounts for VAT declaration.
Run this report at the end of each month to get the deductible VAT amount from each Payables invoice
as well as the corresponding total VAT amounts for the month.
The report lists transactions according to the tax point basis applied to transactions. Where the tax point
basis is equal to the payment date, transactions are listed under the CRE-M section of the report.
Transactions with tax rate where Tax Point basis is set as invoice date, accounting date or delivery date
appear under the DEB-M section of the report (see Reporting section later on).
2. Assumptions and Prerequisites
In this document we assume that you have already set up the following entities:
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Data Security
Geographies
Enterprise Structure
Tax Regime to Rate setup
Tax Party Profiles
Tax Rules
Suppliers
Procurement Business Function
Common Options for Payables and Procurement
You should complete the ‘Implementation Project’ for your organization before commencing the
‘Feature Specific Setup’ outlined below.
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3. Feature specific setup
New Tax Rate
To report invoices under the CRE-M rule you have to have at least one deferred tax rate defined. The
example bellow shows how to define a new deferred tax rate with the tax point basis set to be the
payment date.
Navigation: Navigator –> Setup and Maintenance
Task name: Manage Tax Rates and Tax Recovery Rates
Click on the Create icon.
Enter the details for the new tax rate.
Set the tax point basis to ‘Payment’ for the new deferred rate.
3
For deferred tax rates the interim tax account is mandatory.
Save.
Add User-Defined Fiscal Classification
The next few steps explain how to set up a new tax rule to have the deferred tax rate automatically
applied to transactions.
The tax rate rule can be set up many different ways; here I am showing only one simple example to do it
based on the user-defined fiscal classification code that the user enters on the invoice line. There are
many other tax determinants that can be used to derive the correct tax rate e.g. specific supplier,
transaction business category etc. You have to choose the correct tax determinants to use in accordance
with the current tax legislation.
Navigation: Navigator –> Setup and Maintenance
Task name: Manage Transaction-Based Fiscal Classifications
Change to User-Defined Fiscal Classification Code and click on the create icon.
4
Add a new code for France as below.
Save.
Define new tax rule for deferred rate
Navigation: Navigator –> Setup and Maintenance
Task name: Manage tax rules
Create a new tax rate rule so the deferred tax rate can be automatically applied to new invoices. On the
Search window leave the tax type as Transaction Tax and choose Tax Rate Rules from the list of values.
Click on the create icon.
Enter the rule details.
5
Create a new determining factor set by choosing the create option on the list of values.
Enter the details for the determining factor set. Specify the User-Defined Fiscal Classification as the
Determining Factor.
6
Click on ok. The window is closed and the newly created determining factor set is automatically
selected.
Click on next and select create from the list of values for the tax condition set.
After the create condition set window opens enter the details for your tax condition set. Make sure you
are using the user-defined fiscal classification code that was defined in the previous step.
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Click on ok to close the save and close the window. The newly created condition set is automatically
selected. Make sure you check the enabled checkbox.
Save and Click on the Submit button the on the next window.
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4. Transaction Entry (use the User-Defined Fiscal Classification Code)
and Payment
In payables enter a new invoice.
Use a Payables user that has access to Payables invoice entry.
Navigation: Navigator –> Payables -> Invoices -> Create Invoice
Enter the header and line(s) information.
Enter the code created earlier as the User-Defined Fiscal Classification.
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Calculate tax for the invoice. The new deferred tax rate is applied based on the tax rate rule defined as
part of the setup.
Review that the correct tax was applied i.e. the newly created deferred rate is applied to the transaction
based on the user-defined fiscal classification code entered and the tax rate rule defined.
10
Validate, account and pay the invoice – invoices with deferred tax are reported only after the invoice
had been paid. The validation, accounting and payment status of the invoice can be reviewed in the
Invoice Summary – Status region on the right.
11
Below is a possible way to pay the invoice by using the ‘Pay in full’ functionality.
When the payment has been successfully processed, there is a confirmation for the user that includes
the payment number and the amount paid. Again review the invoice status on the right hand side.
Navigation: Navigator –> Payables -> Payments -> Manage Payments
The payment also has to be accounted so query the payment back on the Manage Payment UI by using
the payment number that was displayed on the payment confirmation pop-up window (see screenshot
above).
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Account the payment by using Actions – Account and Post to Ledger.
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5. Reporting
Navigation: Navigator –> Tools -> Scheduled Processes
Run the Deductible VAT Declaration Report for France
The report can be run at three different levels – Ledger, Legal Entity and Tax Registration Number. For
ledger and legal entity level specify the reporting context i.e. if the reporting level is Ledger the ledger
name has to be specified for the reporting context. If the reporting level is Tax Registration Number
(TRN), leave the reporting context field blank and enter the TRN for the Tax Registration Number
parameter.
Enter the range of tax point dates that you want to report for. In most cases this would be the first and
last days of the month. The tax point date of the invoice, created in the previous step, is the payment
date i.e. 11/12/2014. For the invoice to be reported the From Tax Point Date/To Tax Point Date range
has to include this date e.g. from 11/1/2014 to 11/30/2014 (US date format).
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Here is a sample output of the report listing just 3 invoices:
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The report output shows two separate sections, one for DEB-M and one for CRE-M invoices. CRE-M
invoices have deferred tax rates and are reported only after the invoice has been paid. The DEB-M
section contains invoices that have tax rates with tax point basis set to invoice date, accounting date or
delivery date.
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6. Appendix
Here are some useful information sources to assist with the implementation:

Oracle Enterprise Repository (Financial Report Listing)
The OER provides content relating to the report parameters and sample report output. Log in as
‘guest’ from OER first.
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Oracle Financials Cloud Release 9 (Get Started)
The web site contains links to subscriptions, understanding Oracle Financials Cloud and
Implementation advice.

Oracle Fusion Financials Cloud Release 9 What’s New
This document contains additional information relating to this feature and other Fusion
Financials features and capabilities.

Enterprise Resource Planning Release Readiness for Financials Release 9
The web site contains links to spotlights, release content documents, product documentation
and training.
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