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Document Number PI.02Revision 1.0

Statement of Work

Document Summary

This document provides an overview of enhancements that are release based or for an individual enhancement with effort less than 60 man-days. It will briefly cover the business objectives and business drivers for the enhancement. It will explain the approach of the solution identified and estimations on cost, effort and schedule.

This document should be placed under change control to incorporate any changes to the user requirements that may arise in the future.

Release Notes

Document reviewed by _____________________ Date:__/__/__

Document approved by _____________________ Date:__/__/__

Revision History

Draft 1Document created8th August 2010

Draft 2Change in account distributions11th August 2010

Draft 3Change in account distributions 15th August 2010

Draft 4Account distributions – corrected19th August 2010

Draft 5 by VijayAdded AssumptionsAccount distributions – Typical balance (Dr/Cr) corrected8th September 2010

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Document Number PI.02Revision 1.0

Module Scope:

Input VAT for Thailand needs be applied. The Input VAT is applicable for the purchase items only. As the VAT functionality for sales items is already in place.

Purpose:

Input VAT for Thailand needs be applied for the purchase side. This is applicable to PI / Accured purchase item only. This is done because of the following;

On the SI document, the Output VAT is applied. Currently, in Thailand only Output VAT is recorded – 7% on all SIs for the bookings downloaded from DOTWconnect.

If SR is raised the Output VAT is raised. Albeit this is a manual process. In case of PI the Input VAT is not being raised. This functionality is to be developed. Currently the Input

VAT for the PI is manually calculated and reported to the tax authorities. This affects the Gross Profit, and to avoid this case, the decision has been made to record Input VAT – 7% on Purchases – ACC-PUR as well as P.Is.

The process of Input VAT to PI documents and the relevant purchase returns need to be validated and automated.

Business Requirements

Input VAT is applicable to PI and Accrued-Purchases documents only. Input VAT is to be recorded by creating a tax schedule to enable reconciliation. Changes in Distribution of both ACC-PUR and Enter/Match invoice Changes in Refund process through AUTO SR/PR The VAT calculation for the said documents is illustrated with an example below.

Changes that are to be effected in the account distribution are analyzed as below; All amount values in this illustration is functional currency only.

Overview of entries for Accrued Purchases (in case of vendor class is ‘Direct’):

ACC_PUR-1 6000-0 Purchases – Direct - Hotel Dr 93.461256-0 Input VAT Dr 6.543005-0 Accrued Purchases Cr 100.00

ACC_PUR-2 6000-0 Purchases – Direct - Hotel Dr 280.371256-0 Input VAT Dr 19.633005-0 Accrued Purchases Cr 300.00

Note: Input VAT – will be using the existing GL code only (as instructed by James)

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Document Number PI.02Revision 1.0

Overview of entries for Purchase Invoice (in case of vendor class is ‘R/P’, ‘Franchisee’, ‘MGMT_CTRL’):

PI-1 6000-8 Purchases – R/P – Hotel Dr 93.461256-0 Input VAT Dr 6.543000-8 Trade Creditors-R/P Cr 100.00

PI-2 6000-8 Purchases – R/P – Hotel Dr 280.371256-0 Input VAT Dr 19.633000-8 Trade Creditors-R/P Cr 300.00

Overview of entries for enter/match- with PPV and without PPV

ENTER/MATCH-1 3000-7 Trade Creditors-Direct Cr 100.003005-0 Accrued Purchases Dr 100.00

ENTER/MATCH-2 3000-7 Trade Creditors-Direct Cr 270.003005-0 Accrued Purchases Dr 300.006060-0 PPV Cr 27.901256-0 Input VAT Cr 2.10

NOTE: Need to identify whether G.P can identify the VAT in PPV and will reverse it once the tax set-up is completedAssumption: Since the GP VAT default cannot be used due to country specific installation, all re-distributions of accounts will be considered as alternative method which can be done with customization.

GP Windows affected by this changes are

o Auto SR/PR windowo Return transaction entry windowo Enter/Match Invoice window

CHANGES IN AUTO SR/PR WINDOW

Currently the Auto SR/PR window allows to process refund only if there is one item each in Sales or Purchases. The changes are required to allow the users to process the refunds to Auto SR/PR window even if there are more than 1 item each in Sales and Purchases

These changes will also allow to record ACC-REF (without any GL/module entries since PPV is already recorded), for the enter/matched ACC-PUR, which will allow correct figures in Booking Report for calculating ‘margin’ and any analysis thereof.

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Document Number PI.02Revision 1.0

A radio button to be provided to select the SI and the corresponding Purchase Item (ACC-PUR or PI). This button should be available for any other documents. If the sum of (SI) > sum (returned documents) then enable radio button for SI. If the sum of (PI or ACCR PURCH) > sum (returned documents) then enable radio button for PI or ACCR PURCH.Assumption: The above condition for enable/disable radio button is based on Booking No. e.g.: If the sum of (SI for a booking no) > sum(returned documents for the same booking no),

If the sum of (PI or ACCR PURCH for a booking no) > sum (returned documents for the same booking no)

The ‘REFUND’ button will only be active if both the items are selected. Only 1 item each will be allowed to select.

If there are more than 1 SI documents and has purchase grid has only 1 Acc-PUR or PI (e.g., cancellation charges invoiced to the customer), then the Sales Return will not be allowed to post using Auto SR/PR window. This needs be posted through Sales > Transaction Entry only.

Exchange Rates – to be picked up from respective S.I, ACC-PUR or the P.I that is selected. Refund amount calculation. - The existing process should be continued.

Assumption: The refund amount for Purchase side should not be less than defined percentage amount. But it can allow more than the defined percentage amount.

Case 1 – If multiple Items are in sales/purchases and the ACC-PUR is not enter/matched (e.g., of THAILAND OFFICE with VAT on PURCHASES)

Entry of Sales Invoices:SI - 1 5000-8 Sales – R/P - Hotel Cr 103.73

3071-0 Output VAT Cr 7.261200-8 Trade Debtors-R/P Dr 111.00

S.I - 2 5000-8 Sales – R/P - Hotel Cr 311.213071-0 Output VAT Cr 21.791200-8 Trade Debtors-R/P Dr 333.00

Entry of Accrued Purchases (in case of vendor class is ‘Direct’):ACC PUR-1 6000-0 Purchases – Direct - Hotel Dr 93.46

1256-0 Input VAT Dr 6.543005-0 Accrued Purchases Cr 100.00

ACC PUR-2 6000-0 Purchases – Direct - Hotel Dr 280.371256-0 Input VAT Dr 19.633005-0 Accrued Purchases Cr 300.00

Entry of Purchase Invoice (in case of vendor class is ‘R/P’, ‘Franchisee’, ‘MGMT_CTRL’):PI-1 6000-8 Purchases – R/P – Hotel Dr 93.46

1256-0 Input VAT Dr 6.543000-8 Trade Creditors-R/P Cr 100.00

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Document Number PI.02Revision 1.0

PI-2 6000-8 Purchases – R/P – Hotel Dr 280.371256-0 Input VAT Cr 19.633000-8 Trade Creditors-R/P Cr 300.00

Returns documents for Case 1

If SI – 1 and ACC_PUR-1 or PI-1, is to be reversed in full through auto SR/PR Window:

Entry for S.R (Sales Return)

SR-1 5000-8 Sales – R/P - Hotel Dr 103.733071-0 Output VAT Dr 7.261200-8 Trade Debtors-R/P Cr 111.00

Entry for P.O Return (Return Transaction)

PO_Retrun-1 6000-0 Purchases – Direct - Hotel Cr 93.461256-0 Input VAT Cr 6.543005-0 Accrued Purchases Dr 100.00

Entry for P.R (Purchase Return)

P.R-1 6000-8 Purchases – R/P – Hotel Cr 93.461256-0 Input VAT Cr 6.543000-8 Trade Creditors-R/P Dr 100.00

If SI – 2 and ACC PUR-2 or PI-2, is to be reversed partially through auto SR/PR Window:

Entry for SR

SR-1 5000-8 Sales – R/P - Hotel Dr 155.613071-0 Output VAT Dr 10.891200-8 Trade Debtors-R/P Cr 166.5

No accounting entries, only ACC-REF is recorded

ACC-REF-1 150.00 Input VAT entry will get reversed during the Enter/Matching – refer to the note in page no.3 of

this documents

Entry for PR (Purchase Return)

P.R-1 6000-8 Purchases – R/P – Hotel Cr 93.461256-0 Input VAT Cr 6.543000-8 Trade Creditors-R/P Dr 100.00

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Document Number PI.02Revision 1.0

Case 2 - If multiple Items are in sales/purchases and the ACC-PUR is enter/matched (e.g., of THAILAND OFFICE with VAT on PURCHASES)

Full refund should not be allowed, since enter/matched – this is an existing functionality Refund up to the maximum value of PPV should only be allowed

If S.I – 2 and ACC_PUR-2 or P.I-2, is to be reversed partially through auto SR/PR Window:

Entry for SR

SR-1 5000-8 Sales – R/P - Hotel Dr 155.613071-0 Output VAT Dr 10.891200-8 Trade Debtors-R/P Cr 166.5

No accounting entries, only ACC-REF is recorded

ACC-REF-1 150.00 Input VAT entry already got reversed during the enter/match – refer to the note in page no.3 of

this document

These items will not reflect in ARNI (Accrued Refund Not Invoiced) smart list also, because the ACC-PUR is already flagged as enter/matched.

Entry for PR (Purchase Return) – not required to explain/change from the existing set-up, since the change is basically aiming on the enter/matched ACC-PUR item.

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