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12dis60s-billing,tax,return

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12dis60s-billing,tax,return

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    Unit 12Billing, Tax, and Returns

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    4/29/2010

Unit 12Billing, Tax, and Returns

    Unit Introduction .............................................................................................................. 1

    Unit Objectives .......................................................................................................... 1

    Terminology ............................................................................................................... 2 Tax Processing ............................................................................................................... 3

    Tax-Only Invoices ...................................................................................................... 4 Tax System Parameters .................................................................................................. 5

    Tax Setup........................................................................................................................ 7

    Tax Rate Code Maintenance ..................................................................................... 7

    Tax Rate Table Maintenance ..................................................................................... 9 Billing Product Integration ............................................................................................. 11

    Billing System Parameters ............................................................................................ 12

    Customer Order Billing Cycle........................................................................................ 13

    Invoice Release ....................................................................................................... 15

    Invoice Release Output ...................................................................................... 17

    Invoice Release Updated Files ........................................................................... 18

    Proforma Invoices.................................................................................................... 19

    Business Function Customers ................................................................................ 21

    Customer Invoice Frequency ................................................................................... 22

    Frequency Processing and OLM Selection Criteria ........................................... 23

    Invoice Print ............................................................................................................. 24

    Invoice Re-Print ................................................................................................. 25

    Invoice Consolidation ............................................................................................... 26

    Goods Shipped Not Invoiced ................................................................................... 27

    Billing Drop Ship Confirmation ................................................................................ 28 Return Material Authorization (RMA) ............................................................................ 31

    RMA Process Flow.................................................................................................. 33

    Line Add Restrictions ......................................................................................... 34

    Default Order Class ........................................................................................... 34

     Table of Contents 12-i

    Default Warehouse ............................................................................................ 34

    Schedule Date .................................................................................................... 34

    Processing Return/Issuing Credit ............................................................................ 35

    Reserved Transaction Effect RM ............................................................................. 36

    Reason Codes .................................................................................................... 36

    Disposition/Quality Review ................................................................................. 37

    Closing an RMA ....................................................................................................... 38

    Deleting Closed RMAs ............................................................................................. 38

    Credit Memo Example .............................................................................................. 39

    RMA Inquiry ....................................................................................................... 41

    RMA Reports ........................................................................................................... 42

    RMAs by Customer ............................................................................................ 42

    RMAs by Item/Date ............................................................................................ 43

    Open RMAs Reason Code/Date ........................................................................ 44

    Closed RMAs Reason Code/Date ...................................................................... 45 Billing, Tax, and Returns Review ................................................................................... 46

    List of Figures

    Figure 12-1. Tax Interfaces ............................................................................................ 3

    Figure 12-2. Tax System Parameters ............................................................................. 5

    Figure 12-3. Tax Code Maintenance .............................................................................. 7

    Figure 12-4. Example of Tax Rate Codes ....................................................................... 8

    Figure 12-5. Tax Rate Code per Taxing Jurisdiction ...................................................... 8

    Figure 12-6. Tax Rate Table Maintenance...................................................................... 9

    Figure 12-7. Tax Table Indicators ................................................................................. 10

    Figure 12-8. Billing Product Integration ........................................................................ 11

    Figure 12-9. Billing System Parameters ....................................................................... 12

    Figure 12-10. Order Ready for Invoicing ...................................................................... 13

    Figure 12-11. Customer Order Processing Billing Cycle .............................................. 14

    12-ii Supply Chain Management WorkshopStudent Guide

    Figure 12-12. Invoice Release ..................................................................................... 16 Figure 12-13. When Proforma Invoices can be Created ............................................. 19 Figure 12-14. Proforma Invoices after Invoice Release ................................................ 20 Figure 12-15. Business Function Customers .............................................................. 21 Figure 12-16. Frequency Processing by Day of Month ................................................ 22 Figure 12-17. Frequency Processing by Days ............................................................. 23 Figure 12-18. Invoice Print ........................................................................................... 24 Figure 12-19. Invoice Consolidation ............................................................................. 26 Figure 12-20. Drop Shipment Processing Flow ........................................................... 28 Figure 12-21. Drop Ship Confirmation ......................................................................... 30 Figure 12-22. Customer Returns ................................................................................. 31 Figure 12-23. RMA Process Flow ................................................................................ 33 Figure 12-24. Sales History Correction RMA Example ................................................ 39 Figure 12-25. RMA Inquiry ........................................................................................... 41 List of Tables

    Table 12-1. Invoice Release Updated Files .................................................................. 18 Table 12-2. Effect of Order Type 1 .............................................................................. 35 Table 12-3. Effect of Order Type 7 .............................................................................. 35 Table 12-4. Deleting Closed RMAs Selection Criteria.................................................. 38

     Table of Contents 12-iii

12-iv Supply Chain Management WorkshopStudent Guide

Unit Introduction

    This unit covers Tax, Billing (invoicing), and Returns, including the setup of tax parameters, calculating tax on orders, and the mechanics and relationships involved in setting up the tax system in BPCS. The billing cycle and invoice processing are discussed in detail. Unit Objectives

    At the end of this unit you will be able to:

    ? Discuss the setup and process flow of Tax. ? Set up Billing System Parameters.

    ? Perform invoice processing.

    ? Generate proforma invoices.

    ? Confirm a drop shipment.

    ? Invoice a drop shipment.

    ? Illustrate the Return Material Authorization process. ? Enter and credit a return of material.

     Billing, Tax, and Returns 12-1

    Terminology

    Listed below are terms presented in this unit.

The process of reviewing and releasing previously entered Billing

    customer orders, printing the invoices, and updating Accounts Receivable, Sales, and financial system posting. Tax from one authority can be included in the tax basis for the Cumulative Tax

    next authority.

    Pointer from the customer to help determine applicable tax Customer Tax Code

    rates.

    In association with returns and RMAs, a disposition may be Disposition

    tracked for the reason the customer returned goods. The

    internal explanation of the return, and a quality control

    disposition is tracked indicating the quantity assessment after

    the return. All three are tracked by BPCS. Actual billing invoice for goods sold. Invoice

    Pointer from the item to help determine applicable tax rates. Item Tax Code

    The process of creating and releasing orders for the purpose of Post-Ship Order

    recording sales after the goods have been shipped (over-the-

    counter sales), or for making adjustments to history. Post-ship

    type orders go directly from Order Entry to Invoicing. Sample invoice sent to the customer for approval detailing Proforma Invoice

    what was ordered, its price, and its quantity. Return Material Authorization is a request from a customer to RMA

    return goods. BPCS is able to enter, track, and report returns

    starting with RMA Entry.

    Pointer from the vendor to help determine applicable Supplier/Vendor Tax Code

    purchasing tax rates.

    Identifies the taxing authorities applicable to a purchase order Tax Rate Table

    or billing invoice.

    12-2 Supply Chain Management WorkshopStudent Guide

Tax Processing

    Tax processing is designed to interface with Configurable Order Management, Billing,

    Purchasing, Accounts Payable, and Accounts Receivable products. The Tax product

    supports various government tax requirements in the international financial marketplace.

    The figure illustrates the products Tax interfaces with.

    Configurable

    Order

    Management

    Preliminary CalculationsBilling and

    PurchasingSales

    Analysis

    Actual CalculationsPreliminary Calculations

    and Posting

    TAX

    Actual Calculations

    and PostingTax AdjustmentsAccountsAccounts

    PayableReceivable

    Figure 12-1 Tax Interfaces

    Tax codes reflect the taxable status of an order line by considering the combined effect of the

    product, customer, or supplier.

    ? Products can be zero rated, taxed at a standard rate, or tax exempt.

    ? Customers can be taxed at a standard rate or tax exempt.

    ? Suppliers can be taxed at standard rate or tax exempt.

    Each order line is evaluated for its taxable status. Tax is calculated on a line-by-line basis

    and then summed into tax totals.

     Billing, Tax, and Returns 12-3

Tax processing will perform this type of calculation. Tax Basis for a Line is calculated

    based on the following:

    ? Calculate totals for proration

    ? Calculate the extended line amounts for gross and net of price discounts for each line

    and accumulate the totals.

    ? Accumulate the bill back totals at the header level.

    ? Detail line basis calculation

    Tax-Only Invoices

    BPCS supports the ability to generate tax-only invoices after shipment. Tax-only invoices

    might be created to perform tax adjustments. The tax basis for tax-only invoices is

    calculated using standard order entry processing and pricing policies currently in effect for

    items previously shipped and invoiced. Either the customer or invoicing company can

    assume liability for the tax. A tax-only line on an order must be created in association with

    an existing item.

    ? Individual Tax Amounts for Order Lines are calculated

    ? Tax processing during Billing determines the tax rate code, tax amount, and uses the

    tax basis for each order/invoice line.

    ? Tax basis is the list price of the line item unless the user specifies a different tax

    basis. The tax calculation follows the same logic used when calculating tax on order

    lines.

    12-4 Supply Chain Management WorkshopStudent Guide

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