Among the most important improvements made by the ERP Mago4 2.0 and specifically designed for Romania localization, you can find the Issued Bills of exchange and Checks management, introduced on the liabilities side, to pay suppliers. This issuing procedure not only allows you to issue one or more checks or bills of exchange - specifying for each one number, amount, expiry date, place and date of issue - but also to use previously created blank checks / bills of exchange, or to transfer to a supplier a check / bill received from a customer. It is possible to create blank checks or bills of exchange to be completed later, during the issuing phase.
Based on the amounts indicated, the procedure therefore proposes an automatic selection of the entries to be closed; similarly, the issue, payment and outstanding procedures also generate the related accounting entry.
The subsequent SP 1 of Mago4 2.0 also introduces the management of Split VAT. In this regard, it should be noted that starting from January 2018 in Romania the new Split Tax system enters into force, and becomes mandatory for some VAT subjects. This system requires that the payment of the invoices takes place in two separate transactions: the taxable amount must be paid into the "standard" bank account, while the VAT Tax must be paid on a special tax account that each Vat subject must have. These specific accounts, opened by the Country for each VAT subject, are regulated by special rules for the creation of the IBAN, and allow only the collection and payment of VAT.
In case of cash, debit or credit card payments, the company receiving the invoice total in payment must transfer the Tax amount in its own Tax account within 7 days from receipt.
Mago4 simplifies everything, setting whether the company is subject to the Split Tax system, and identifying which suppliers are subject and which customers are excluded. Furthermore, Mago4 allows the Clearing to propose the taxable amount of the invoice when the type of payment is bank transfer, and the invoice total in other cases. A new Tax Clearing procedure allows you to post the collected/paid Tax directly on the Tax account specified into the Preferences; it is also introduced a report that allows you to calculate the Tax amount related to documents collected/paid for the total, to be transferred to your Tax account within 7 days.
To find out more you can consult the release notes and / or the Help Center on the Microarea portal, or contact us for more information.