Setup Japan consumption tax report
This task walks you through setting up the system to support the Japan consumption tax report. In this task, you will modify General ledger parameters, a legal entity, sales tax reporting accounts and a sales tax code.
This task was created using the demo data company JPMF.
Enable the consumption tax report
- Go to Tax > Setup > Parameters > General ledger parameters.
- Click the Sales tax tab.
- Expand the Japanese tax reporting section.
- Select Yes in the Consumption tax reports field.
Tax reporting accounts
- Go to Tax > Setup > Sales tax > Tax reporting accounts.
- Click Edit.
- In the Bad debt field, specify the desired values.
- Example: 84720
- In the Collected bad debt field, specify the desired values.
- Example: 84710
Enter Japan reporting information for a legal entity
- Go to Organization administration > Organizations > Legal entities.
- Expand the Registration numbers section.
- Click Edit.
- In the Accounting personnel field, type a value.
- In the Company representative field, type a value.
Enter report setup information for a sales tax code
- Go to Tax > Indirect taxes > Sales tax > Sales tax codes.
- Use the Quick Filter to find records. For example, filter on the Sales tax code field with a value of 'JP Cons'.
- Expand the Report setup section.
- Click Edit.
- Confirm the reporting codes were configured properly.
Note
For setting reporting codes in sales tax codes you may use the table below.
Using reporting codes in Japanese sales tax report base items
| Reporting code | Reporting code name | Calculation Sheet column | 3 - (1) report column | 3 - (2) report column |
|---|---|---|---|---|
| 1 | Taxable sales | Item 1 | Item 1 | Item 1, Item 2-Item 6 (at tax rates) |
| 202 | Tax-exempted sales | Item 2 | Item 15 | - |
| 203 | Non-taxable assets for export | Item 3 | Item 15 | - |
| 206 | Non-taxable sales | Item 6 | Item 16 | - |
| 208 | Taxable purchase related to only taxable sales | Item 8, Item 14 (if Ratio <0.95 & Individual method) | - | - |
| 210 | Taxable import | - | - | - |
| 214 | Taxable purchase related to non-taxable sales | Item 8 | - | - |
| 215 | Common taxable purchase in common | Item 8, Item 15 (if Ratio <0.95 & Individual method) | - | - |
| 7001 | Consumption tax amount of taxable sales - Credit note | Item 8 | Item 5 | Item 18 |
| 7208 | Consumption tax amount of taxable purchase related to taxable sales - Credit note | Item 8, Item 9, Item14 (if Ratio <0.95 & Individual method) | Item 4 | Item 22-Item 23 (at tax rates) |
| 7210 | Consumption tax amount of taxable import - Credit note | Item 10 | Item 4 | Item 22-Item 23 (at tax rates) |
| 7214 | Consumption tax amount of taxable purchase related to non-taxable sales - Credit note | Item 8, Item 9 | Item 4 | Item 22-Item 23 (at tax rates) |
| 7215 | Consumption tax amount of taxable purchase in common - Credit note | Item 8, Item 9, Item 15 (if Ratio <0.95 & Individual method) | Item 4 | Item 22-Item 23 (at tax rates) |
| 8001 | Consumption tax amount of taxable sales | - | Item 2 | Item 12-Item 16 (at tax rates) |
| 8208 | Consumption tax amount of taxable purchase related to taxable sales | Item 8, Item 9, Item 14 (if Ratio <0.95 & Individual method) | Item 4 | Item 22-Item 23 (at tax rates) |
| 8210 | Consumption tax amount of taxable import | Item 10 | Item 4 | Item 22-Item 23 (at tax rates) |
| 8214 | Consumption tax amount of taxable purchase related to non-taxable sales | Item 8, Item 9 | Item 4 | Item 22-Item 23 (at tax rates) |
| 8215 | Consumption tax amount of taxable purchase in common | Item 8, Item 9, Item 15 (if Ratio <0.95 & Individual method) | Item 4 | Item 22-Item 23 (at tax rates) |
| 8308 | JP Debt | - | Item 6 | Item 22-Item 23 (at tax rates) |
| 8310 | JP Debt - Paid | Item 25 | - | - |
| 9001 | Taxable sales - Credit note | - | Item 5 | - |
| 9202 | Tax-exempted sales - Credit note | Item 2 | Item 15 | - |
| 9203 | Non-taxable assets for export - Credit note | Item 3 | Item 15 | - |
| 9206 | Non-taxable sales - Credit note | Item 6 | Item 16 | - |
| 9208 | Taxable purchase related to only taxable sales - Credit note | Item 8, Item 14 (if Ratio <0.95 & Individual method) | Item 4 | Item 22-Item 23 (at tax rates) |
| 9210 | Taxable import - Credit note | - | ||
| 9214 | Taxable purchase related to non-taxable sales - Credit note | Item 8 | Item 4 | Item 22-Item 23 (at tax rates) |
| 9215 | Common taxable purchase in common - Credit note | Item 8, Item 15 (if Ratio <0.95 & Individual method) | Item 4 | Item 22-Item 23 (at tax rates) |