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Customizing Guide: New Taxes 2004 (ISS, PIS, COFINS, MP-135 Withholding Taxes

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– For Classic (Non-Condition-Based) Tax Calculation –
Version 1.3 05 September 2008

...................9 9 Define Account Keys for SD (T687)...............................Customizing Guide: New Taxes 2004..................................................3 3 Create Condition Types..................................................................................................................................17 18 ISS Customizing.....9 10 Update Calculation Procedures...................17 17 Master Data Changes.................................................................................................................................................................................................................................................................................................................................................................................................................................................3 4 Price Conditions Including Taxes.............................................................6 5 Create Entries in J_1BAJ.................................................................................................................................................................16 14 Maintain Settings for External Tax Calculation...............................................................18 Page 2 of 18 ................................................17 15 Define Tax Jurisdiction Codes....................................................................................9 8 Assign Tax Accounts to Account Keys.................................................7 6 Create Processing Keys for FI (T007B).......................................................18 19 Tax Rates....................................................................................................................................8 7 Create G/L Accounts....................15 13 SD Tax Codes (View J_1BTXSDCV)........................................................................................................................................13 12 FI Tax Codes.........................................17 16 Assign Jurisdiction Codes to Ranges of Postal Codes............................................................ Classic Tax Calculation Content 1 Version History..........................................................................................3 2 Purpose of This Guide......................................9 11 Customizing of Extended WHT ..................................................................................

3 Update on the structure of Tax Jurisdiction Code 2 Purpose of This Guide The purpose of this guide is to describe how to technically set up the system for the new tax functions (ISS. 3 Create Condition Types New condition types have to be created for the new taxes. In such case.0 1. Category: 1 (Jur.1. PIS. save all new entries. The prerequisite is that all coding and DDIC changes are already implemented. following the instructions of the respective Note. and 4. see overview Note 727475 or overview Note 752440 and the Notes mentioned there. Classic Tax Calculation 1 1. This means.6 Modification of chapter 4. there are still manual steps necessary to work with the new taxes.: MWST Manual Entries: D (Not possible to process manually) Item Condition: X Delete fr. 3.g. Type ICN3 Description COFINS Normal Tax Page 3 of 18 . just skip the section.6B Description adapted for these releases Document Version 1. COFINS. and MP-135 withholding taxes). 4. The following classes of condition types are affected: • Tax code conditions (activation of taxes) • Conditions with WHT codes (specific for SD) 3. Level 1) Access Seq. entries in table J_1BAJ). or the changes are implemented manually.3 1.0B. For further details. Type: A (Percentage) Cond. Class: D (Taxes) Calculat. either the support package that contains the changes is installed. After implementation of the support package or the Note. Downgrade of ISS functionality to the releases 4. DB: B (without popup) Cond.1 Version History Description of Change Documented in the customizing Note 747607.1.2 Version History introduced Correction of chapter 12. These manual steps are described in this guide.Customizing Guide: New Taxes 2004.1 Tax Code Conditions Cond.5B. It may be that the changes described in some of the steps are already done in your system (e.1 Condition Types For Application TX Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check Calculation Procedure -> Define Condition Types and press push button New entries or select an existing entry and press the push button Copy as … Finally.

2 Condition Types For Application V Transaction SPRO: SAP Reference IMG -> Sales and Distribution -> Basic Functions -> Pricing -> Pricing Control -> Define condition types -> Maintain Condition Types and press push button New entries or select an existing entry and press the push button Copy as … Finally.: MWST Manual Entries: D (Not possible to process manually) Item Condition: X Delete fr. Level 1) Access Seq. Type ICOA ICON ICOO ICOS ICOU ICOV ICOW ICOZ ICSW ICSZ ICW3 ICZ3 IGEW IGEZ IGW3 IGZ3 IIRW IIRZ IPS3 IPSA IPSN IPSO IPSS IPSU IPSV IPSW IPSZ IPW3 IPZ3 IRW3 IRZ3 ISA3 ISB3 ISE3 ISF3 ISSA ISSB ISSE ISSF ISSG ISW3 ISZ3 Description COFINS Normal PO/GR COFINS Normal Tax COFINS Offset Tax Included COFINS Normal PO/GR COFINS COFINS Normal IV NVV COFINS Offset ICOS/ICOU COFINS WHT COFINS WHT Offset CSLL WHT CSLL WHT Offset COFINS Withholding TaxSD COFINS WHT SD Offset General WHT General WHT Offset General WHT SD General WHT SD Offset IR WHT IR WHT Offset PIS Normal Tax PIS Normal PO/GR PIS Normal Tax PIS Offset Tax Included PIS Normal PO/GR PIS Normal IV NVV PIS Offset IPSS / IPSU PIS WHT PIS WHT Offset PIS WHT SD PIS WHT SD Offset IR Withholding TaxSD IR WHT SD Offset ISS at Provider SD ISS WHT at Provider SD ISS at Service Loc SD ISS WHT at Service Loc SD ISS at Provider ISS WHT at Provider ISS at Service Loc ISS WHT at Service Loc ISS Offset CSLL Withholding Tax SD CSLL WHT SD Offset 3.2. Classic Tax Calculation Cond. Type: A (Percentage) Cond.Customizing Guide: New Taxes 2004. Category: 1 (Jur. DB: B (without popup) Tax Type ICN3 ICW3 IGW3 Description COFINS from SD COFINS Withholding TaxSD General WHT SD Page 4 of 18 . 3. Class: D (Taxes) Calculat. save all new entries.1 Tax Code Conditions Cond.

DB: B (without popup) Tax Type IKW4 ILW4 ICW4 IPW4 ISW4 IRW4 IGW4 Description ISS provider WHT cde ISS service WHT cde COFINS WHT code PIS WHT code CSLL WHT code IR WHT code General WHT code Page 5 of 18 . Con. Applicat. Clas) Manual Entries: D (Not possible to process manually) Item Condition: X Delete fr.2. Class: A (Discount or surcharge) Calculat. Classic Tax Calculation IPS3 IPW3 IRW3 ISA3 ISB3 ISE3 ISF3 ISW3 PIS Normal Tax PIS WHT SD IR Withholding TaxSD ISS at Provider SD ISS WHT at Provider SD ISS at Service Loc SD ISS WHT at Service Loc SD CSLL Withholding Tax SD Cond.: V Tax Type ICO2 IPS2 Description COFINS Offset SD PIS Offset SD 3. Type: A (Percentage) Cond. Type: A (Percentage) Cond.: J1AG (Arg. Type: A (Percentage) Cond. Type: ICMO Ref.Customizing Guide: New Taxes 2004.2 WHT Code Conditions Cond. Category: 1 (Jur. DB: B (without popup) Ref. Applicat.: IBRR Manual Entries: D (Not possible to process manually) Item Condition: X Delete fr. Class: W (Wage Withholding Tax) Calculat. DB: B (without popup) Ref. Category: D (Tax) Access Seq. Level 1) Access Seq. Con. Class: D (Taxes) Calculat. Type: ICMO Ref. Category: Access Seq.: IBRR Manual Entries: D (Not possible to process manually) Item Condition: X Delete fr.: Tax Relev.: V Tax Type ICZ3 IGZ3 IPZ3 IRZ3 ISZ3 Description COFINS WHT SD Offset General WHT SD Offset PIS WHT SD Offset IR WHT SD Offset CSLL WHT SD Offset Cond.

0B) Quantity Conversion: X TextDetPrc: 01 Price Text OD: 0001 Cond. save all new entries. In order to allow the system to consider correctly which taxes are already included in a price and which not. corresponding price conditions should be maintained.: PR00 Manual Entries: C (Manual entry has priority) Amount/percent: X Item Condition: X Delete: X Pricing Proc: RVXBR2 Delete fr.3 Define Which Taxes Are Included in MM/SD Price Conditions Maintain for each SD (Application V) or MM (Application M) pricing procedure the taxes that are included in each price condition type. Category: H (Basic Price) Access Seq. Cond.Customizing Guide: New Taxes 2004. if new price conditions are introduced. the MM procedure RM0000 is maintained for the pricing conditions PB00 and PBXX the SD procedure RVXBRA is maintained for the pricing conditions ZPB1 … ZPB3. 4. all price conditions must be updated. but may contain PIS. DB: (do not delete) Scale basis: C Check Value: A descending (“Check scale” in release 4. Type ZPB0 ZPB1 ZPB2 ZPB3 Description Price w/o Taxes Price+ISS Price+PIS+COF Price+ISS+PIS+COF 4.5B and 4. Then create the condition types: Transaction SPRO: SAP Reference IMG -> Sales and Distribution -> Basic Functions -> Pricing -> Pricing Control -> Define condition types -> Maintain Condition Types and press push button New entries or select an existing entry and press the push button Copy as … Finally. or any combination of these. As an example. create new price conditions and adapt the MM pricing procedure for Purchase Orders (e. Class: B (Prices) Calculat.2 Price Conditions MM If necessary. Page 6 of 18 . 4. ISS due at the municipio of the service provider. ISS due at the municipio of the service execution.1 Price Conditions SD Copy pricing procedure PR0000 to RVXBR2 before creating the conditions: Transaction SPRO: SAP Reference IMG -> Sales and Distribution -> Basic Functions -> Pricing -> Pricing Control -> Define And Assign Pricing Procedure -> Maintain Pricing Procedure select the entry PR0000 and press the push button Copy as … Finally. Type: C (Quantity) Cond. save all new entries. RM0000) or create new ones by copying and modifying.g. COFINS. Of course. The following is a suggestion based on 4 new price conditions. Classic Tax Calculation 4 Price Conditions Including Taxes The new solution for tax calculation supports prices which are not the real net prices. It is possible to either continue using existing price conditions or introduce new ones.

the last of these conditions is considered. 5 Create Entries in J_1BAJ Tax Group COFI COFI COFI COFI COFI COFI COFI COFI WHCO WHCS WHCO WHT WHT WHIR PIS PIS PIS PIS PIS PIS PIS PIS WHPI Description COFINS Normal Tax COFINS Normal PO/GR COFINS Deductible COFINS Normal Tax COFINS Offset Tax Included COFINS Normal PO/GR COFINS COFINS Normal IV NVV COFINSOffset ICOS/ICOU COFINS WHT COFINS WHT Offset CSLL WHT CSLL WHT Offset COFINS Withholding TaxSD General WHT General WHT Offset General WHT SD IR WHT IR WHT Offset PIS Deductible PIS Normal Tax PIS Normal PO/GR PIS Normal Tax PIS Offset Tax Included PIS Normal PO/GR PIS Normal IV NVV PIS Offset IPSS / IPSU PIS WHT WHT Offset Transaction SM30: maintain the view J_1BAJ Tax Type ICN3 ICOA ICOF ICON ICOO ICOS ICOU ICOV ICOW ICOZ ICSW ICSZ ICW3 IGEW IGEZ IGW3 IIRW IIRZ IPIS IPS3 IPSA IPSN IPSO IPSS IPSU IPSV IPSW X X X X X X X X X X X Page 7 of 18 . Classic Tax Calculation Transaction SM30: maintain the views J_1BKON1MMVV and J_1BKON1SDVV or alternatively the view J_1BKON1V Price Condition PB00 PB00 PB00 PB00 PBXX PBXX PBXX PBXX Price Condition ZPB1 ZPB1 ZPB2 ZPB2 ZPB3 ZPB3 ZPB3 ZPB3 Tax Group COFI COFINS ISSP ISS at location of service provider ISSS ISS at location where service is provided PIS PIS COFI COFINS ISSP ISS at location of service provider ISSS ISS at location where service is provided PIS PIS Tax Group ISSP ISS at location of service provider ISSS ISS at location where service is provided COFI COFINS PIS PIS COFI COFINS ISSP ISS at location of service provider ISSS ISS at location where service is provided PIS PIS Comment: If the pricing procedure contains more than one condition of condition class price.Customizing Guide: New Taxes 2004.

Customizing Guide: New Taxes 2004. save all new entries. Tax Type: 2 (input tax) Not deductible: X Posting indicator: 3 (Distribute to relevant expense/revenue items) Processing Key ISW WTC WTG WTI WTP WTS Description ISS WHT COFINS WHT General WHT IR WHT PIS WHT CSLL WHT Tax type: 2 (input tax) Non deductible: space Posting indicator: 2 (separate line item) Processing Key CO3 PI3 Description COFINS Clearing PIS Clearing Tax type: 1 (output tax) Non deductible: space Posting indicator: 2 (separate line item) Processing Key COF PIS WK3 WC3 WC4 WG3 WG4 WI3 WI4 WP3 WP4 WS3 Description COFINS PIS ISS WHT Cofins WHT Cofins WHT offset General WHT General WHT offset IR WHT IR WHT offset PIS WHT PIS WHT offset CSLL WHT Page 8 of 18 . Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check and Change Settings for Tax Processing and press push button New entries or select an existing entry and press the push button Copy as … Finally. Classic Tax Calculation Tax Type IPSZ IPW3 IRW3 ISA3 ISB3 ISE3 ISF3 ISSA ISSB ISSE ISSF ISSG ISW3 Tax Group Description PIS WHT Offset WHPI PIS WHT SD WHIR IR Withholding TaxSD ISSP ISS at Provider SD ISSP ISS WHT at Provider SD ISSS ISS at Service Loc SD ISSS ISS WHT at Service Loc SD ISSP ISS at Provider ISSP ISS WHT at Provider ISSS ISS at Service Loc ISSS ISS WHT at Service Loc ISSP ISS Offset WHCS CSLL Withholding Tax SD WHT Offset X X X X X X X X 6 Create Processing Keys for FI (T007B) New processing keys (account keys) have to be created to post taxes to separate accounts and to identify withholding tax amounts in the normal tax calculation.

Customizing Guide: New Taxes 2004. Adapt the calculation procedure that you use in a corresponding way or create a copy of the old one and adapt the new one in order to have a backup. Page 9 of 18 . Finally. create new G/L accounts. specify the relevant Chart of accounts and maintain the G/L account. save all new entries. Application V 177040 177011 177011 Description 177022 COFINS 177022 PIS 177021 ISS WHT 177021 Cofins WHT 177013 Cofins WHT offset 177013 General WHT 177020 General WHT offset 177020 IR WHT IR WHT offset PIS WHT PIS WHT offset CSLL WHT CSLL WHT offset 9 Define Account Keys for SD (T687) 10 Update Calculation Procedures 10. Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Postings -> Define Accounts for Withholding Tax -> Define Accounts for Withholding Tax to be Paid Over specify the relevant Chart of accounts and press push button New entries. Finally.1 Update Calculation Procedure FI The FI calculation procedure below is based on SAP sample delivery TAXBRJ. The new entries are shown in red. Posting Keys: 40 – 50 Account Key CO3 COF PI3 PIS WK3 WC3 WC4 Account Key WG3 COF WG4 PIS WI3 WK3 WI4 WC3 WP3 WC4 WP4 WG3 WS3 WG4 WS4 WI3 WI4 WP3 WP4 WS3 WS4 Account 154008 177031 154031 177030 Transaction SM30: maintain the view V_T687. Classic Tax Calculation WS4 CSLL WHT offset 7 Create G/L Accounts If you need to post the new taxes to separate accounts. The following is just a suggestion. save all new entries. 177011: COFINS Withholding Tax Posting at Payment 177013: PIS Withholding Tax Posting at Payment 177020: CSLL Withholding Tax Posting at Payment 177021: IR Withholding Tax Posting at Payment 177022: General Withholding Tax (PIS/COFINS/CSLL/IR) 177030: PIS Normal Tax 177031: COFINS Normal Tax 154031: PIS Tax deductible 154008: COFINS Tax deductible 177040: ISS Withholding Tax 8 Assign Tax Accounts to Account Keys Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchasing -> Posting -> Define Tax Accounts select an entry.

ISS ISS at Provider ISS WHT at Provider ISS at Serv. SD ISS WHT Srv. Consumption In ICOP ICMS complement ICOT STO-ICMS complement ICOX ICMS complement 100 ISS2 ISS from MM In ISSO ISS from MM In Offs ICO1 ICMS compl Transfer ICO2 ICMS compl. Finally. offset IFR1 ICMS on freight In IFS1 ICMS ST freight In IP1C IPI Ind.Off. off. COFINS. ICZG ICMS tax free ICS1 Sub.Customizing Guide: New Taxes 2004. In ICM1 ICMS Industr.)-STO IFR3 ICMS on freight Out IFS3 ICMS ST freight Out ICM4 STO-ICMS SD (ICM3) Other taxes INSS INSS Incoming INSX INSS offset (100-) ISSA ISSB ISSE ISSF ISA3 ISB3 ISE3 ISF3 ISSG PIS. SD ISS Offsets From To Reqt SubTo Stat AltCTy AltCBV ActKy X X 100 100 100 100 100 232 100 100 100 100 100 100 210 100 230 X 100 100 100 100 100 100 350 100 365 100 370 100 372 100 100 100 521 100 100 540 100 100 100 100 X 100 710 X 100 100 100 100 100 100 100 100 100 521 522 523 524 521 522 523 524 525 301 302 303 304 301 302 303 304 305 NVV ISW NVV ISW MW4 WK3 MW4 WK3 NVV VST INX 522 523 523 524 525 525 526 160 160 X 521 523 523 524 526 525 527 528 523 301 303 303 304 306 305 307 308 303 MW1 MW2 MW2 ICC MW3 MW4 MW4 ICZ MW3 MW3 MW2 525 525 302 303 303 304 305 305 306 305 305 NVV NVV NAV NVV ICP ICP ICX NVV VS1 ICP ICX ICP ICX 320 521 521 523 523 523 525 524 525 527 528 521 523 301 301 303 303 303 305 304 305 307 308 301 303 VS1 VS1 VS2 ICD ICD ICC NVV VS3 IC1 VS3 VS3 IPC IPC ICC ICC Page 10 of 18 . fr. IC1C ICMS Ind.Loc. SD ISS at Serv.T.Off. NVV off Level 500 IPI3 IPI from SD Out ICM3 ICMS from SD Out ICMM ICMS DIFAL Out ICML ICMS DIFAL ofset out ICS3 Sub. NVV ICO4 ICMS compl.Tributaria In ICMF ICMS S. ISS WHT at Serv. In ICMV ICMS DIFAL Con/Asset ICMT ICMS Difal Investmen ICMP ICMS Difal inv.Loc.Loc. Tra. ISS at Provider SD ISS WHT at Prov.Clear.Tributaria Out ISS3 ISS from SD Out ICSO SOCIAL Offset TxIncl ICZF ICMS Rev (Z. Classic Tax Calculation Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchasing -> Basic Settings -> Check Calculation Procedure -> Define Procedure -> select a procedure for maintenance. save your changes. Level 300 IPI2 IPI Consumption In ICM2 ICMS Consumption In ICMD ICMS Consumption In ICS2 S. calculation Level 200 IPI1 IPI Industr.T. Step Cntr CTyp Description 100 150 200 210 215 230 231 232 233 235 240 250 255 256 260 265 270 275 300 310 330 331 340 350 355 360 365 366 370 371 372 373 500 510 520 521 522 530 540 541 550 560 570 600 700 710 720 750 755 760 765 770 771 772 773 774 775 BASB Base Amount Ext.Clearing IC1O ICMS Ind.F.Clearing IP1O IPI Ind.Loc. New requirements and/or formulas can be created in transaction VOFM. In IPIF IPI Industr. Off ICO3 ICMS compl.Clear.

PO/GR Cofins IV Non Deduct Cofins ded. not inc. PIS Reduce stock Offset IPSS / IPSU PIS deduct.) are not given. since the changes are the same. save your changes.2 Update Pricing Procedure SD The below SD pricing procedure is based on SAP sample delivery RVXBRA. Classic Tax Calculation Step Cntr CTyp Description 780 785 790 795 797 798 800 805 810 815 820 825 830 835 840 845 850 851 852 853 855 856 858 859 860 861 864 865 900 901 905 906 907 910 911 915 916 918 ICON ICOO IPSN IPSO ICN3 IPS3 ICOW ICOZ IPSW IPSZ ICSW ICSZ IIRW IIRZ IGEW IGEZ ICW3 ICZ3 IPW3 IPZ3 ISW3 ISZ3 IRW3 IRZ3 IGW3 IGZ3 ICOV ICOS ICOU ICOA IPSV IPSS IPSU IPSA COFINS NVV COFINS NVVOff TxIncl PIS NVV PIS NVV Off. New requirements and/or formulas can be created in transaction VOFM. Reqt SubTo Stat AltCTy AltCBV ActKy Print 2 X X X X X X RB00 Discount (Value) 2 X Page 11 of 18 . IV PIS ded. Step Cntr CTyp Description 10 10 10 10 10 45 50 1 2 3 4 ZPB0 ZPB1 ZPB2 ZPB3 Price Price w/o Taxes Price+ISS Price+PIS+COF Price+ISS+PIS+COF From To Man.Customizing Guide: New Taxes 2004. not inc. The new or changed entries are shown in red. From To Reqt SubTo Stat AltCTy AltCBV ActKy 100 100 100 100 100 100 X 100 805 100 815 100 825 100 835 100 845 X 100 852 100 855 100 858 100 860 100 864 X 100 100 100 100 100 100 100 100 D 160 161 X E 160 161 824 833 833 843 804 803 803 803 PI3 PI3 NVV PI3 822 831 831 841 802 801 801 801 CO3 CO3 NVV CO3 825 826 827 828 829 805 806 807 808 809 WC3 WC4 WP3 WP4 WS3 WS4 WI3 WI4 WG3 WG4 825 826 827 828 829 805 806 807 808 809 WTC NVV WTP NVV WTS NVV WTI NVV WTG NVV 821 822 823 824 821 823 801 802 803 804 801 803 NVV NVV NVV NVV COF PIS 10. Examples for other procedures (like RVXBRE etc. Transaction SPRO: SAP Reference IMG -> Sales and Distribution -> Basic Functions -> Pricing -> Pricing Control -> Define and assign pricing procedures -> Maintain pricing procedure -> select a procedure for maintenance. TxIncl COFINS from SD PIS from SD WITHHOLDING TAXES ON GROSS COFINS WHT COFINS WHT Offset PIS WHT PIS WHT Offset CSLL WHT CSLL WHT Offset IR WHT IR WHT Offset General WHT General WHT Offset Withholding Tax from SD COFINS WHT SD COFINS WHT Offset SD PIS WHT SD PIS WHT Offset SD CSLL WHT SD CSLL WHT Offset SD IR WHT SD IR WHT Offset SD General WHT SD Genera WHT Offset SD COFINS reduce stock Cofins Offset COFINS deduct. Adapt the calculation procedures that you use in a corresponding way or create copies of the old ones and adapt the new ones in order to have a backup. PO/GR PIS non deductib. Finally.

IPI from SD ICMS from SD Sub.K Page 12 of 18 . C A. Classic Tax Calculation Step Cntr CTyp Description 290 300 320 321 322 329 400 595 600 610 620 630 650 660 670 675 680 681 682 683 684 685 686 687 688 700 720 740 750 799 800 810 960 961 963 965 967 970 972 975 977 979 980 985 986 987 988 989 990 991 992 ICMI K004 K007 K005 Price+Tax (for NF) Material Customer Discount Customer/Material From To Man.Trib. SD ISS offset COFINS from SD COFINS Offset SD PIS from SD PIS Offset SD Total Tax Value ICMS offset Rounding Off R100 100% discount SKTO Cash Discount VPRS Cost Withholding taxes ICW3 COFINS WHT SD ICZ3 COFINS WHT SD offset IPW3 PIS WHT SD IPZ3 PIS WHT SD Offset ISW3 CSLL WHT SD ISZ3 CSLL WHT SD offset IRW3 IR WHT SD IRZ3 IR WHT SD offset IGW3 General WHT SD IGZ3 Genera WHT SD offset Withholding taxes: Tax codes ICW4 COFINS WHT code IPW4 PIS WHT code ISW4 CSLL WHT code IRW4 IR WHT code IGW4 General WHT code IKW4 ISS provider WHT cde 961 965 970 975 979 WC3 WC4 WP3 WP4 WS3 WS4 WI3 WI4 WG3 WG4 ILW4 ISS service WHT cde 683 The SD pricing procedure below is the new price supplement procedure RVXBR2 which is introduced for the optional new price conditions. Act.Loc. It can be configured in the following way: St 10 C 1 CTyp ZPB0 Description Price w/o Taxes Fr o To M M S P S Req A.Customizing Guide: New Taxes 2004.Loc. ICMS on freight SD ICMS ST freight SD ISS from SD ISS at Provider SD ISS WHT at Prov.B . Reqt SubTo Stat AltCTy AltCBV ActKy Print K 2 2 2 2 320 328 590 595 596 X X X X X X X X X X X 675 683 X 685 X 687 610 690 620 13 750 55 9 4 B X X X X X X X X X X X 963 965 972 975 979 681 983 983 983 983 983 983 983 X X X X X X X X X X 825 826 827 828 829 16 4 4 28 11 805 806 807 808 809 823 803 821 801 X 323 ERL X ERS ERS ERS ERS X 320 521 523 524 525 527 528 526 521 522 523 524 301 303 304 305 307 308 306 301 302 303 304 MW1 MW2 MW3 MWS MW3 MW3 MW4 MW4 WK3 MW4 WK3 BRI COF BRI PIS BRI X BRI ERS X ERS KF00 Freight IBRX IPI3 ICM3 ICS3 ICZF IFR3 IFS3 ISS3 ISA3 ISB3 ISE3 ISF3 ICSO ICN3 ICO2 IPS3 IPS2 ICMO DIFF Brazil tax calc. from SD ADMS Disc. sd ISS WHT Srv. Zona Fr. SD ISS at Serv.

1 WHT Types at Payment Base amount = Modified Tax Amount Rounding rule = W/tax comm round Cash Discount = C/disc pre W/tx Post w/tax amount =X No accumulation W/tax base manual =X Manual w/tax amount = X No cert numbering =X Base amount = W/tax code level Withholding tax amount = W/tax code level No central invoice Minimum Check at item level W/Tax Type CP GP PP RP SP Description COFINS at Payment General WHT (PIS/COF/CSLL/IR) at Payment PIS at Payment IR at Payment CSLL at Payment 11.2 WHT Types at Invoice Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation -> Withholding Tax Types -> Define Withholding Tax Types for Invoice Posting -> specify a country key (BR for Brazil) and press push button New entries or select an existing entry and press the push button Copy as … Finally.Customizing Guide: New Taxes 2004.3 WHT Codes Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation -> Withholding Tax Codes -> Define Withholding Tax Codes -> specify a country key (BR for Page 13 of 18 . save all new entries. Base amount = Modified Tax Amount Rounding rule = W/tax comm round Post w/tax amount =X No accumulation W/tax base manual =X Manual w/tax amount = X No cert numbering =X Base amount = W/tax code level Withholding tax amount = W/tax code level W/Tax Type IW Description ISS WHT 11. 11. Classic Tax Calculation 10 10 10 40 40 40 40 2 3 4 1 2 3 4 ZPB1 ZPB2 ZPB3 RA00 RB00 RC00 RD00 Price+ISS Price+PIS+COF Price+ISS+PIS+COF % Discount from Net Discount (Value) Quantity Discount Weight Discount 11 Customizing of Extended WHT Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation -> Withholding Tax Types -> Define Withholding Tax Types for Payment Posting -> specify a country key (BR for Brazil) and press push button New entries or select an existing entry and press the push button Copy as … Finally. save all new entries.

6 Define Accounts for Withholding Tax to Be Paid Over Assign G/L accounts for WHT to WHT types. WHT Type IW IW CP CP PP PP SP SP RP RP GP GP Processing Key ISW WK3 WTC WC3 WTP WP3 WTS WS3 WTI WI3 WTG WG3 11.Customizing Guide: New Taxes 2004. Classic Tax Calculation Brazil) and press push button New entries or select an existing entry and press the push button Copy as … Finally. • • To activate for MM.00% Posting indicator: 1 W/Tax Type CP GP IW PP RP SP W/Tax Code CP GP IW PP RP SP Description COFINS 100% WHT Amount General 100% WHT Amount ISS 100% WHT Amount PIS 100% WHT Amount IR 100% WHT Amount CSLL 100% WHT Amount 11. Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Company Code -> Assign Withholding Types to Company Code -> press push button New entries or select an existing entry and press the push button Copy as … Finally.00% With/tax rate: 100.5 Assign WHT Types to Company Codes In IMG. 11. flag Subject to w/tax in customer data. save all new entries. Percentage subject to tax: 100. flag With/tax agent in vendor data and assign validity. Instead. save all new entries. Transaction SM30: Maintain view V_T059Z_WITHCD2 Page 14 of 18 . define them in view V_T059Z_WITHCD2.7 Define Official Collection Codes The official WHT codes cannot be used to specify collection codes. Transaction FSP1 11. assign all relevant WHT types to all Brazilian company codes that are subject to them.4 Define Processing Key For Modified Tax Amount Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation -> Withholding Tax Base Amount -> Define Processing Key for Modified Tax Amount -> specify a country key (BR for Brazil) and press push button New entries or select an existing entry and press the push button Copy as … Finally. To activate for SD. save all new entries.

IW CP PP SP RP GP W/tax code IW CP PP SP RP GP 12 FI Tax Codes Activate additional taxes for existing tax codes or create new tax codes. Type ICON ICOO Description COFINS NVV Normal Tax COFINS NVV Offset Tax Included Tax Group COFI COFI Acct. assign validity.Customizing Guide: New Taxes 2004.1 Rate (%) 100 100 To activate COFINS non-deductible: Cond. Finally. Key NVV NVV Page 15 of 18 . Class. Country BR. according to Note 178824 Tax rel. Key NVV NVV 12. Type IPSN IPSO Description PIS NVV Normal Tax PIS NVV Offset Tax Included Tax Group PIS PIS Acct. Maintain for all conditions a rate of 100%. WHT Type IW CP PP SP RP GP Condition Type IKW4 ICW4 IPW4 ISW4 IRW4 IGW4 11. save all new entries. Classic Tax Calculation 11.10Maintain Withholding Tax SD Conditions Transaction VK11.9 Maintain Tax Relevant Classification Argentina Customizing: view V_1ATXREL. Transaction FTXP 12.1. IW CP GP PP RP SP Text ISS WHT Invoice Cofins Payment General WHT payment PIS WHT Payment IR WHT Payment CSLL WHT payment 11. Condition IKW4 ICW4 IPW4 ISW4 IRW4 IGW4 Tax Rel.1.2 Rate (%) 100 100 To activate PIS non-deductible: Cond.8 Assign Condition Types to Withholding Tax Types Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax ->Calculation -> Withholding Tax Types -> Assign Condition Types to Withholding Tax Types -> specify a country key and carry out the assignment.1 Taxes in Tax Codes Used in MM 12.

Classic Tax Calculation 12. Save all new entries.1. Key PI3 PI3 NVV PI3 12. 13 SD Tax Codes (View J_1BTXSDCV) Activate additional taxes for SD tax codes by flagging the relevant taxes on the existing SD tax codes or on newly created ones.1.3 Rate (%) 100– 100– 100– 100 To activate COFINS deductible: Cond. Key CO3 CO3 NVV CO3 12.Customizing Guide: New Taxes 2004.1. Type ISSA ISSB ISSE ISSF ISSG Description ISS at Provider ISS WHT at Provider ISS at Service Loc.6 Rate (%) 100 100 100 100 100 To activate ISS New 2004: Cond. Type IPSV IPSS IPSU IPSA Description PIS Offset IPSS / IPSU PIS Normal PO/GR PIS Normal IV NVV PIS Normal PO/GR Tax Group PIS COFI COFI COFI Acct. ISS WHT at Service Loc. Page 16 of 18 .1. Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Taxes on Sales/Purchases -> Calculation -> Settings for Tax Calculation in Brazil -> Additional Standard Tax Codes -> select the check box in column Service were required. Type ICOW ICOZ IPSW IPSZ ICSW ICSZ IIRW IIRZ IGEW IGEZ Description COFINS WHT COFINS WHT Offset PIS WHT PIS WHT Offset CSLL WHT CSLL WHT Offset IR WHT IR WHT Offset General WHT General WHT Offset WHT WHIR WHCS WHPI Tax Group WHCO Acct. Type ICOV ICOS ICOU ICOA Description COFINSOffset ICOS/ICOU COFINS Normal PO/GR COFINS Normal IV NVV COFINS Normal PO/GR Tax Group COFI COFI COFI COFI Acct. Key NVV ISW NVV ISW NVV 12.2 Usage Indicator for Tax Codes Tax codes used for the taxation of services must have the service flag set. Key WTC NVV WTP NVV WTS NVV WTI NVV WTG NVV 12.5 Rate (%) 100 100– 100 100– 100 100– 100 100– 100 100– To activate withholding taxes: Cond. ISS Offsets Tax Group ISSP ISSP ISSS ISSS ISSP Acct.4 Rate (%) 100– 100– 100– 100 To activate PIS deductible: Cond.

Update address with new tax jurisdiction code for correct ISS calculation. 14.3 Define Logical Destination For ext. Transaction SM30: Maintain view J_1BTREG_CITYV 17 Master Data Changes There are changes to master data necessary in order to correctly effectuate the new tax calculation.Customizing Guide: New Taxes 2004. Page 17 of 18 . etc. Level1 = 3. level2 = 7. specify: Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases Calculation -> Basic Settings -> External Tax Calculation -> Define Logical Destination C C JUR TAX J_1BTAXJUR_DETERMINE_NEW J_1BCALCULATE_TAXES 15 Define Tax Jurisdiction Codes For new ISS calculation. Classic Tax Calculation 14 Maintain Settings for External Tax Calculation 14.1 Vendors (Transaction XK02) Assign all WHT types and codes that are applicable.g. A suggestion is to use the two digits that define the satate and the five digits that define the municipio in the IBGE table for this. two-level jurisdiction codes should be maintained. Update address with new tax jurisdiction code for correct ISS calculation. system C. Finally. system C. ‘SP ‘ for Sao Paulo) and the last seven digits to define the municipio. save all new entries.1 Structure for Tax Jurisdiction Code (View V_TTXD) New entry for TAXBRJ. As an example. Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings ->Tax on Sales/Purchasing -> Basic Settings -> External Tax Calculation -> Activate External Tax Calculation. 17.2 Customers (Transaction XD02) Assign all WHT types and codes that are applicable. ‘SP 3548500’ the municipio of SANTOS. specify ext. 17. assign valid ranges of postal codes to the newly created tax jurisdiction codes.) Transaction SM30: Maintain view J_1BTXJURV 16 Assign Jurisdiction Codes to Ranges of Postal Codes For proper tax jurisdiction code validation and value help. The proposal is to use the first three digits for the state (e.2 Activate External Tax Calculation For calculation procedure TAXBRJ. 14. ‘SP 3550308’ would be the municipio of SAO PAULO.

Classic Tax Calculation 17.7 or higher) or view J_1BTXISSV.1 COFINS Maintain entries in transaction J1BTAX (R/3 4. 19.2 PIS Maintain entries in transaction J1BTAX (R/3 4. Use the tax groups of dynamic exceptions you created.Customizing Guide: New Taxes 2004.3 Other Address Changes: Organizational Structure In order to allow correct calculation of ISS. Page 18 of 18 . Use the tax groups of dynamic exceptions you created. Use the tax groups of dynamic exceptions you created. This is necessary for: • • • • Company Codes Plants Business Places (Filial) General addresses of central address management that are used as delivery addresses 18 ISS Customizing Details about the ISS Customizing logic can be found in the ISS documentation. 19. all relevant adresses must be updated with the new Jurisdiction codes.3 Generic Service Types Define generic service types in view J_1BGENSERVTV.1 Tax Laws View: J_1BATL3V. only an overview of the necessary Customizing steps is given. 18. Maintain definitions for ISS tax laws.7 or higher) or view J_1BTXPISV.3 ISS Maintain entries in transaction J1BTAX (R/3 4. 18. 18.4 Withholding Taxes Maintain entries in transaction J1BTAX (R/3 4.4 Assign Official Service Types Assign official service types as needed: • • to generic service types (view J_1BSERVASSIGN1V) to material numbers (view J_1BSERVASSIGN2V) 19 Tax Rates 19. 19. You define either a general WHT collection code and a combined rate or the four individual withholding taxes separately.7 or higher) or view J_1BTXWITHV. Use the tax groups of dynamic exceptions you created. 18.2 Official Service Types Define official service types for purchasing (view J_1BSERVTYPES1V) and sales (view J_1BSERVTYPES2V) processes. Here.7 or higher) or view J_1BTXCOFV.