Understanding the VAT Setup for Properties and Units

You set up properties, buildings, floors, and units in the JD Edwards EnterpriseOne Enhanced Real Estate Management system using the same programs that you use in the JD Edwards EnterpriseOne Real Estate Management system. As part of the property setup, the U.K. requires that you assign VAT information to each building. The system prompts you to set up VAT information after you enter the building record. When you set up VAT information, you must specify whether the building is exempt from taxes:

• If the building is exempt from taxes, the system assigns the default tax exempt information from the Additional Company Constants.

  When you set up units for a tax exempt building, the units are also tax exempt and you cannot override tax information.

• If the building is not exempt from taxes, you assign the tax explanation code and tax rate area to calculate taxes for billing and expenses.

  The system provides separate tax fields so that you can assign different tax information depending on whether you are the landlord (generating billing records) or the tenant (generating expense records). When you set up units for buildings that are not tax exempt, you have the opportunity to override the tax information for the unit.

In addition to the tax information that you must enter for a building, you can also enter the address book number of the person to contact about the building and the asset number of the building if you use the Fixed Assets system. If you provide the asset number, the system updates the Account Ledger records (F0911) for billing and expenses so that you can use it for inquiry and reporting purposes.

In addition to the tax information that you enter for a unit, you can also enter the address book number of the person to contact. Additionally, the system provides an option for you to update the address book number in the Unit Master table (F1507), if desired.