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Setup Japan consumption tax report

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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

  1. Go to Tax > Setup > Parameters > General ledger parameters.
  2. Click the Sales tax tab.
  3. Expand the Japanese tax reporting section.
  4. Select Yes in the Consumption tax reports field.

Tax reporting accounts

  1. Go to Tax > Setup > Sales tax > Tax reporting accounts.
  2. Click Edit.
  3. In the Bad debt field, specify the desired values.
    • Example: 84720
  4. In the Collected bad debt field, specify the desired values.
    • Example: 84710
  1. Go to Organization administration > Organizations > Legal entities.
  2. Expand the Registration numbers section.
  3. Click Edit.
  4. In the Accounting personnel field, type a value.
  5. In the Company representative field, type a value.

Enter report setup information for a sales tax code

  1. Go to Tax > Indirect taxes > Sales tax > Sales tax codes.
  2. Use the Quick Filter to find records. For example, filter on the Sales tax code field with a value of 'JP Cons'.
  3. Expand the Report setup section.
  4. 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)