brazil cond bas tax calc v1 3

CBT – Condition-Based Tax Calculation for Brazil

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Condition-Based Tax Calculation for Brazil 2

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Table of Contents 1 Version History .................................................................................... 6

2 General information ............................................................................. 7 2.1 Scope of this document ................................................................................... 7 2.2 Out of scope .................................................................................................... 7 2.3 How to use this document ............................................................................... 8

3 Introduction on condition-based tax calculation .............................. 9 3.1 Classic tax calculation ..................................................................................... 9 3.2 Condition-based tax calculation ....................................................................... 9

4 How to set up the condition-based tax calculation ........................ 10 4.1 First steps ..................................................................................................... 10

Prerequisites and release notes .................................................................... 10 4.1.1 BC Sets for CBT ............................................................................................ 10 4.1.2 Maintain Settings for external tax calculation ................................................. 11 4.1.3 Tax Jurisdiction Codes .................................................................................. 13 4.1.4

4.2 CBT customizing settings for ICMS, IPI, PIS and COFINS ............................ 14 Activate condition generation ........................................................................ 14 4.2.1 Specify Calculation Procedures for Condition-Based Tax Calculation ........... 14 4.2.2 Assign country to calculation procedure ........................................................ 14 4.2.3 Access sequences ........................................................................................ 15 4.2.4 Condition types ............................................................................................. 15 4.2.5 Account keys ................................................................................................. 17 4.2.6 Define internal codes for tax conditions ......................................................... 18 4.2.7 Assign condition types to internal codes for tax conditions ............................ 18 4.2.8 Assign internal code to tax group .................................................................. 19 4.2.9

Tax groups for dynamic exceptions ............................................................... 19 4.2.10 Assign condition tables to tax rate tables ....................................................... 21 4.2.11 Tax calculation logic ...................................................................................... 22 4.2.12 Tax Types ..................................................................................................... 25 4.2.13 Price conditions ............................................................................................. 26 4.2.14 Customizing Settings MM/FI .......................................................................... 27 4.2.15 Customizing Settings SD ............................................................................... 28 4.2.16 Tax Rates ...................................................................................................... 31 4.2.17 Other (manual) Customizing settings for ICMS, IPI, PIS/COFINS ................. 32 4.2.18

4.3 CBT Customizing settings for ISS ................................................................. 33 Create condition table A601 .......................................................................... 33 4.3.1 Extend pricing field catalog............................................................................ 35 4.3.2 Access sequences for ISS............................................................................. 35 4.3.3 Create condition types for ISS ....................................................................... 37 4.3.4 Define account keys for MM/FI and SD ......................................................... 37 4.3.5 Update calculation procedures for MM/FI and SD ......................................... 38 4.3.6 Create new internal condition codes .............................................................. 38 4.3.7 Create mapping of internal codes to condition types ..................................... 38 4.3.8

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Assign internal code to tax group .................................................................. 38 4.3.9 Tax groups for dynamic exceptions ............................................................... 38 4.3.10 Assign condition tables to tax rate tables ....................................................... 38 4.3.11 ISS Tax Types............................................................................................... 38 4.3.12 Price conditions for ISS ................................................................................. 39 4.3.13 Assign G/L accounts for ISS posting ............................................................. 39 4.3.14 ISS tax rates.................................................................................................. 39 4.3.15 Map MM tax values to nota fiscal fields ......................................................... 39 4.3.16 Map MM tax laws to nota fiscal fields ............................................................ 40 4.3.17 Map SD tax values to nota fiscal fields .......................................................... 40 4.3.18 Other ISS (manual) Customizing Settings ..................................................... 40 4.3.19 Tax codes for MM and SD ............................................................................. 41 4.3.20

4.4 CBT Customizing settings for WHT taxes with accumulation ......................... 42 Access sequences for withholding taxes ....................................................... 42 4.4.1 Condition types for withholding taxes ............................................................ 42 4.4.2 Define account keys for MM/FI and SD ......................................................... 43 4.4.3 Assign G/L accounts for withholding tax posting ............................................ 43 4.4.4 Create condition value formulas for withholding taxes ................................... 43 4.4.5 Update calculation procedures for MM/FI and SD ......................................... 43 4.4.6 Define internal condition codes for withholding taxes .................................... 44 4.4.7 Mapping of internal codes to condition types ................................................. 44 4.4.8 Assign internal code to tax group .................................................................. 44 4.4.9

Assign condition tables to tax rate tables ....................................................... 44 4.4.10 Tax Types for withholding taxes .................................................................... 44 4.4.11 Check withholding tax countries .................................................................... 44 4.4.12 Define withholding tax type for invoice posting .............................................. 45 4.4.13 Define withholding tax type for payment posting ............................................ 45 4.4.14 Define account key for modified tax amount .................................................. 47 4.4.15 Assign condition type to withholding tax type................................................. 48 4.4.16 Maintain Tax Relevant Classification ............................................................. 49 4.4.17 Maintain Withholding Tax SD Conditions ....................................................... 49 4.4.18 Define withholding tax codes ......................................................................... 50 4.4.19 Define minimum base amount for withholding tax types ................................ 50 4.4.20 Define official collection codes ...................................................................... 51 4.4.21 Maintain Wht tax rates and assign official collection codes............................ 51 4.4.22 Assign withholding tax types to company code .............................................. 51 4.4.23 Activate extended withholding tax ................................................................. 51 4.4.24 Define accounts for withholding tax to be paid over ....................................... 52 4.4.25 Update vendor and customer master data ..................................................... 52 4.4.26 Map MM tax values to nota fiscal fields ......................................................... 52 4.4.27 Map SD tax values to nota fiscal fields .......................................................... 52 4.4.28

5 Appendix ............................................................................................ 53 5.1 SAP Standard Tables .................................................................................... 53

Access sequences for application TX (MM/FI) ............................................... 53 5.1.1

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Access sequences for application V (SD) ...................................................... 53 5.1.2 Condition types for application TX (MM/FI) .................................................... 54 5.1.3 Condition types for application V (SD) ........................................................... 61 5.1.4 Tax calculation procedure TAXBRA .............................................................. 66 5.1.5 Pricing procedure RVABRA ........................................................................... 72 5.1.6

5.2 Tax codes configuration ................................................................................ 78 To activate COFINS non-deductible .............................................................. 79 5.2.1 To activate PIS non-deductible ...................................................................... 79 5.2.2 To activate COFINS deductible ..................................................................... 79 5.2.3 To activate PIS deductible ............................................................................. 79 5.2.4 To activate withholding taxes ........................................................................ 80 5.2.5 To activate ISS .............................................................................................. 80 5.2.6

5.3 Migration from classical to condition based tax calculation ............................ 80 Tools to check and migrate tax customizing to condition records .................. 81 5.3.1 Mass migration program ................................................................................ 81 5.3.2

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1 Version History Document Version Valid From Comment

V1 01.12.2012 New documentation for the condition-based tax calculation for Brazil, which replaces the documents:

Docu_CBT_302.zip attached to the note 664855 (Brazil: New Condition-Based Tax Calculation);

Customizing_ISS_PIS_COFINS_for_CBT_v2_1.doc at-tached to the note 747607 (Basic Customizing for MP135 and ISS legal change Brazil);

Customizing_WHT_Accumulation_for_CBT.pdf at-tached to the note 916003 (Brazil: Withholding tax accu-mulation for CBT).

V1.1 20.12.2012 Changes to the section 4.1.1: one SAP note has been deleted from the preconditions, because it is obsolete.

V1.2 08.01.2013 Changes to the section 5.1.5: some steps of the tax calculation procedure TAXBRA related to CTe have been updated. The BC sets ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM has been updated as well.

V1.3 09.04.2013 Correction of RVABRA table (p.78), by steps 914 and 915 the for-mulas were supposed to be in the Alt.CTy column and not in Alt-CBV.

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2 General information This document is aimed at consultants and customer’s key users to help them implementing the condi-tion-based tax calculation (CBT) for the most important types of taxes required in Brazil.

Additionally to the description of the customizing activities, the present document provides you with the information about BC sets which are provided by SAP and which can be used to fill the customizing tables more quickly. In this way, you can check the standard customizing entries and also easily im-plement them in your system.

The present documentation and the BC sets described in this document are attached to the note 1706309. The delivered BC sets are valid for release ECC 6.00 and higher. No BC sets for releases ECC 5.00 and lower releases are delivered.

The present documentation also replaces the document attached to the note 664855 and also the BC sets delivered together with the present documentation shall be used instead of the ones provided in the note 664855.

For general information about the SAP strategy on condition-based tax calculation for Brazil and SAP recommendations, refer to the note 1538088.

2.1 Scope of this document This document describes the settings required by the condition-based tax calculation for Brazil.

This comprises the CBT customizing settings for handling: IPI and ICMS taxes PIS and COFINS contributions ISS – service taxes Withholding taxes in general and Withholding taxes with tax base amount accumulation.

The present document provides complete information about the CBT set up and replaces some docu-ments about Brazilian tax calculation, which are listed in the section 1.

The present document focuses on new installations, which means on customers who start implement-ing Brazilian tax settings from scratch. The document is also not aimed to customers using the classi-cal tax calculation for Brazil and who would like to migrate to the condition-base tax calculation. About this topic see also section 5.2 and following.

Some new developments, like the freight invoice (Conhecimento de Transporte Eletrônico) and the legal change for PIS and COFINS rates with 4 decimal places, are only partially covered in the present documentation. Details about this can be found in the next section.

2.2 Out of scope All customizing activities and BC sets refer to Brazil, which means that they cannot be used for other countries even if in those countries the condition-based tax calculation is used.

This document does not describe generic customizing settings for Brazil which are not related to con-dition-based taxes. For example, this document does not handle the setup of Brazil specific movement types, billing types and so on.

This document does not describe the Tax Manager’s Workplace in details, but it considers only the parts of the Tax Manager’s Workplace which apply to CBT settings. For example, the customizing of tax regions, NCM codes and other entities – which can be customized in the Tax Manager’s Work-place – are not handled in this document.

The development for CT-e (Conhecimento de Transporte Eletrônico) is included in this documentation only partially. For simplification reasons, the CT-e content, like condition types and the corresponding entries in the tax calculation procedures for MM and SD, are included in the BC sets mentioned in the present documentation. In such cases the CT-e entries are mentioned explicitly so that you are aware of them. Other settings and coding, which might be required for the CT-e functionality (like for example

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condition types for application M) are not part of the present document. Check the note 1677119 and other related notes for details about the CT-e legal change and the CT-e solution from SAP.

The legal change for PIS and COFINS rates with 4 decimal places is treated similarly as the CT-e legal change. Such content, like condition types and the corresponding entries in the tax calculation procedures for MM and SD, are included in the BC sets mentioned in the present documentation. In such cases, the entries related to PIS and COFINS rates with 4 decimal places are mentioned explicit-ly. Other settings and coding are not part of the present document. Check the note 1675010 for details about the legal change and the solution delivered by SAP.

2.3 How to use this document This document is aimed to be a configuration guide for the condition-based taxes required in Brazil.

It should guide you through the required customizing activities and can be seen as a comprehensive check list for CBT settings.

Of course the business processes of your company determine which settings you need to implement. To facilitate the implementation, the present documentation contains different sections for different types of taxes, so that you can implement only the settings which are required in your company. For example if your company does not buy or sell services, you can skip the part regarding ISS taxes.

The chapter 4 containing the CBT customizing is therefore divided into different sections:

Section 4.1: settings which are common to the different SD and MM areas and to several tax-es; you always need to perform these customizing activities.

Section 4.2: settings required for ICMS/IPI/PIS/COFINS.

Section 4.3: ISS customizing.

Section 4.3.20: customizing settings for withholding taxes.

The required customizing settings are listed in the sequence they should be performed.

Additionally, having different sections for different tax types allows you to split the work among differ-ent persons, for example the MM expert and the SD expert.

Use this document together with the BC sets delivered in the note 1706309, since some of the cus-tomizing activities refer to BC sets and the latter can be used to enter or complete the customizing settings in a faster way.

The chapter 5 provides additional material and references.

Section 5.1 shows the access sequences, the conditions types and the tax calculation proce-dures for both applications SD and MM as they are contained in the SAP standard delivery. It also gives a more detailed explanation about the tax calculation procedure TAXBRA and the pricing procedure RVABRA.

Section 5.3 highlights what you need to do if you switch on the condition-based tax calculation while you are already working with Brazilian taxes using the classic tax calculation.

There is a variety of customizing settings, which are necessary so that Brazilian taxes can be calculat-ed and displayed correctly in the Nota Fiscal. Most of these settings can be done in the Tax Manager’s Workplace (transaction J1BTAX). Such preliminary settings are not described in detail in this docu-ment, since they are not strictly required for the condition-based tax calculation. However, they are mentioned as additional steps since you need to perform these activities before creating posting doc-uments in your Brazilian company.

Selecting the Tax Manager’s Workplace via IMG menu, you will have access to the IMG documenta-tion of the Tax Manager’s Workplace which explains all customizing activities to be performed there in detail. You do this in the IMG: IMG Financial Accounting (New) Financial Accounting Global Set-tings (New) Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Ac-cess Tax Manager's Workplace. Instead of entering the Customizing activity, click on the documenta-tion icon in order to access the Tax Manager’s Workplace documentation. In the newest support pack-ages the Tax Manager’s Workplace documentation can be accessed also from the Tax Manager’s Workplace itself (transaction J1BTAX). This change is delivered by support package; the valid support package for each release can be seen in the note 1706309.

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3 Introduction on condition-based tax calculation In Brazil, there are several taxes on sales and purchases of which the most common are:

Industrial product tax (IPI - Imposto sobre Produtos Industrializados); this is a federal tax.

State value-added tax (ICMS - Imposto sobre Operações relativas à Circulação de Mercado-rias e Prestação de Serviços de Transporte Interestadual e Intermunicipal e de Comuni-cação).

Special forms of ICMS:

o ICMS complement;

o ICMS on freight (CT-e, which means Conhecimento de Transporte Eletrônico);

o ICMS tax substitution (SubTrib) and SubTrib on freight CT-e.

Municipal tax on services (ISS - Imposto sobre serviços).

Social contributions due to special programs on federal level:

o PIS - social integration program (Programa de Integração Social);

o COFINS – social security financing contribution (Contribuição para o Financiamento da Seguridade Social).

Withholding taxes, like for example:

o ISSF – withholding service tax (Imposto Sobre Servicos na Fonte);

o IRRF – withholding income tax (Imposto de Renda Retida na Fonte);

o CSLL – withholding social security tax (Contribuição Social sobre o Lucro Líquido).

When a company buys or sells products/services, the SAP ERP system must calculate more than one tax base amount and tax amount.

3.1 Classic tax calculation Due to the complexity of tax calculation in Brazil, the standard tax functionality based on tax rates customized in the transaction FTXP was never used.

Instead, the classic way of calculating Brazilian taxes made use of the external tax interface. The tax calculation was executed by a dedicated function module rather than by direct processing of the tax calculation procedure assigned to the country.

The tax code served to indicate which taxes are due, activating specific lines in the calculation proce-dure by setting the respective rate to 100%. Lines (taxes) which shall not be taken into account for the respective tax code must be deactivated (not only set to be 0%).

3.2 Condition-based tax calculation The new approach of the Brazilian tax calculation makes use of the standard condition technique to calculate taxes. The rates are stored as condition records and determined during the pricing proce-dure. The whole calculation logic is contained in the calculation procedure itself.

The tax rates, tax laws, and special indicators considering the appearance of the tax line item in the Nota Fiscal are maintained in Brazilian-specific views J_1BTX* (for example J_1BTXIP1 contains the IPI rates). The data is additionally present as condition records in the database. These records are directly read by the pricing logic.

The generation of the condition records takes place during the view maintenance of the J_1BTX* ta-bles. Condition records are automatically written, updated, or deleted when data is maintained in the views and saved to the database.

The whole Nota Fiscal logic is a matter of customizing and no longer to a great extent hard-coded.

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4 How to set up the condition-based tax calculation

4.1 First steps

Prerequisites and release notes 4.1.1The present documentation is aimed to replace the attachments to the notes 664855, 747607 and 916003. Therefore, you do not implement the customizing activities as described in the attachments of those 3 notes, but use the present document instead.

However, the notes 664855 and 916003 do contain coding changes which are precondition for the CBT customizing and therefore, you must check that all coding and DDIC changes are already imple-mented in your system before starting with the customizing activities.

Note 664855 - Brazil: New Condition-Based Tax Calculation

If you are using the release 4.7, the required coding changes are contained in the support package SAPKH47017. If your system is on a lower support package of the release 4.7, you need to implement the coding changes manually. To do this, you need to follow the steps described under point 1“Coding Changes Release 4.7” of the note 664855.

If you are using release 4.7 with SP equal to or higher than SAPKH47017, or if you are using an even higher release, all required coding changes are already available in your system.

Note 916003 - Brazil: Withholding tax accumulation for CBT

Finally, you need to implement the correction instructions of the note 916003. The DDIC and code changes can be applied by installing the required support package which is:

Release SP

470 SAPKH47026

500 SAPKH50022

600 SAPKH60017

602 SAPKH60207

603 SAPKH60306

604 SAPKH60405

Then you need to perform some manual activities which are described in the note text. These refer to two new condition value formulas, which are needed for calculating withholding taxes with and without accumulation. Such manual activities are described in the present document. Finally, you need some customizing activities: These are described in the present document. Therefore, ignore the attachment to the note 916003.

BC Sets for CBT 4.1.2In order to facilitate the implementation of standard customizing for condition-based tax calculation, SAP delivers some BC sets.

These BC sets contain table entries descriptions in English (EN) and in Portuguese (PT).

Using the transaction SCPR3, you have access to the content of the BC sets and compare the BC set entries with the customizing entries available in your system.

Since the BC sets contains entries in EN and PT, you must restrict the comparison and the activation of the BC sets to these two languages. In case you want to perform a comparison of the Customizing activities, it is recommended to only check texts in these two languages. In case you activate a BC set, this setting will prevent that entries in other languages are overwritten by empty text fields.

To do this, go to the menu “Utilities” and select “User Settings”. Then choose “General Settings” and activate the check box “Use User Languages”. After that, choose EN and PT and confirm (Enter). This

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selection can be done in both – the transactions SCPR3 (NC Sets Display) and SCPR20 (BC Sets Activation).

Decide whether the respective BC set should be activated in your system or whether you want to fill the entries manually in the customizing tables.

NOTE: It is highly recommended that you check any BC set before activating it since it could overwrite already existing settings in your system.

The table below lists the BC sets for the CBT configuration, which you find attached to the note 1706309. For each BC set, the corresponding customizing activity, as well as a link to the correspond-ing section of the present document, is indicated.

Note that the BC sets delivered through the note 1706309 start with Z*. This is necessary, so that you do not encounter any issue when uploading the BC sets to your SAP ERP system. The same BC sets with SAP names starting with CSC* will be delivered in the support package 6 for the release 606.

The standard delivery customizing, which is provided by SAP for the client 000, is only updated in the latest release. Therefore, if you are using an older release, the standard customizing in your client 000 may not contain the last updates.

Customizing Activity Doc. Section BC Set Name Condition Types - MM/FI 4.2.5.1 ZCSC_BR_CBT_CONDITION_TYPES_MM

Condition Types SD 4.2.5.2 ZCSC_BR_CBT_CONDITION_TYPES_SD

Account Keys for MM/FI 4.2.6.1 ZCSC_BR_CBT_ACCOUNT_KEYS_FI

Account Keys for SD 4.2.6.24.2.6.2 ZCSC_BR_CBT_ACCOUNT_KEYS_SD

Define Internal Codes for Tax Conditions 4.2.7 ZCSC_BR_CBT_INTERNAL_COND_CODES

Assign Condition Types to internal Codes for Tax Conditions

4.2.8 ZCSC_BR_CBT_INT_CODS_TO_CND_TYPS

Assign Condition Tables to Tax Rate Tables 4.2.11 ZCSC_BR_CBT_CND_TBS_TAX_RT_TBS

Calculation Procedure TAXBRA (MM) 4.2.12.1 ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM

Pricing Procedure RVABRA (SD) 4.2.12.2 ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD

Tax types 4.2.13 ZCSC_BR_CBT_TAX_TYPES

NF-relevant SD-Conditions for RVABRA 4.2.14.3 ZCSC_BR_CBT_NF_SD_CND_FOR_RVABRA

Map MM Values to Nota Fiscal Fields 4.2.15.1 ZCSC_BR_CBT_MAP_MM_VLS_TO_NF_FDS

Map MM Laws to Nota Fiscal Fields 4.2.15.2 ZCSC_BR_CBT_MAP_MM_LWS_TO_NF_FDS

Map SD Values to Nota Fiscal Fields 4.2.16.2 ZCSC_BR_CBT_MAP_SD_VLS_TO_NF_FDS

Table 1: BC sets for condition-based tax calculation

Maintain Settings for external tax calculation 4.1.3The settings described below for external tax calculation as well as the settings for the tax jurisdiction codes are required for different purposes:

For the ICMS tax determination, the system must be able to determine the state of origin and state of destination for the goods. This information is derived from the tax jurisdiction code and must also be printed in the Nota Fiscal;

For the ISS tax determination, the system must determine the municipality of the service pro-vider and of the service recipient.

4.1.3.1 Structure for Tax Jurisdiction Code (View V_TTXD) SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Specify Structure for Tax Jurisdiction Code

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Transaction Code SPRO

In this Customizing activity, you determine the structure of the tax jurisdiction code. This code is used for calculating taxes which are defined below the federal level. In Brazil these are for example ICMS, which is a state tax, and ISS, which is a city tax. This way, the tax rate is defined per level and the tax value is calculated individually per level.

Create a new entry for the calculation procedure TAXBRA with the following settings:

Scheme TAXBRA

Length 1 3

Length 2 7

Length 3 Leave it empty

Length 4 Leave it empty

Taxes line by line X

The correct size is 3 and 7 because the SPED FISCAL will capture 10 digits with the following struc-ture: SP 3550308 - São Paulo

“SP " = Region / State (Attention: it is SP and space) 35 = SP State code according to IBGE 50308 = São Paulo City (Município de São Paulo).

4.1.3.2 Activate External Tax Calculation SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings External Tax Calculation Activate External Tax Calculation


For Brazil, you need to create the following entry:

Scheme TAXBRA

External system C

All other fields Leave it empty

4.1.3.3 Define Logical Destination SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings External Tax Calculation Define logical destination


For Brazil, you need to create the following entries for the external system C:

Event Function module RFC destination

JUR J_1BTAXJUR_DETERMINE_NEW Leave it empty

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TAX J_1BCALCULATE_TAXES Leave it empty

Tax Jurisdiction Codes 4.1.4

4.1.4.1 Define Tax Jurisdiction Codes SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Define Tax Jurisdiction Codes


For new ISS calculation, two-level jurisdiction codes are to be maintained.

The proposal is to use 10 digits tax jurisdiction code because the SPED FISCAL will capture 10 digits with the following structure: SP 3550308 - São Paulo

“SP " = Region / State (Attention: it is SP and space) 35 = SP State code according to IBGE 50308 = São Paulo City (Município de São Paulo).

Enter all required tax jurisdiction codes in this table according to the rule explained above.

4.1.4.2 Assign Jurisdiction Codes to Ranges of Postal Codes SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Assign Postal Codes to Tax Jurisdiction Codes


Each geographical region can include a number of tax jurisdictions, which, in turn, are defined by its postal codes. In this Customizing activity, you assign a range of postal codes to each tax jurisdiction code. For each tax jurisdiction codes, assign the geographical region and the beginning and ending postal codes.

When you maintain Brazilian address data (in master records or transaction data) and enter the postal code and geographical region, the system automatically assigns the correct tax jurisdiction code as follows:

It first accesses the data in this activity to determine the tax jurisdiction code.

If it does not find an entry there, it reads the tax region from the Define Brazilian Tax Regions and Assign to Geographical Regions Customizing activity.

Once the system determines either the tax jurisdiction code or the tax region, it stores it in the Jurisdiction Code field of the address.

Assign the formerly created tax jurisdiction codes to the ranges on postal codes.

4.1.4.3 Update organizational units with tax jurisdiction code In order to allow correct tax calculation, all relevant addresses must be updated with the jurisdiction codes. This is necessary for:

Company Codes Plants Business Places (Filial) General addresses of central address management which are used as delivery addresses.

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4.2 CBT customizing settings for ICMS, IPI, PIS and COFINS The following sections describe the customizing settings which are required to calculate several types of taxes using the condition based tax calculation logic. These taxes are:

ICMS IPI PIS COFINS

The settings required for calculating ISS, which is the municipal service tax, will be described in a sep-arate section (4.3).

The document contains also a separate section (4.4) for the withholding tax customizing.

Activate condition generation 4.2.1

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Condition-Based Tax Calculation Acti-vate Condition Generation


In order to use the condition-based tax calculation, the generation of condition records in the mainte-nance of tax rates has to be activated by setting a flag for the respective country.

If the flag is set for Brazil, condition records are being generated in the background during the mainte-nance of the Brazilian tax tables.

Specify Calculation Procedures for Condition-Based Tax Calculation 4.2.2

SAP Access

Access Menu SAP Customizing Implementation Guide -> Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Condition-Based Tax Calculation Specify Calc. Procedures for Condition-Based Tax Calculation


The system needs to identify whether the tax calculation in the currently processed calculation proce-dure is condition-based or not. The standard condition-based tax calculation procedures for Brazil are TAXBRA for MM and RVABRA for SD.

Go to the respective Customizing activity and create two new entries:

For MM, create an entry for usage A, application TX, calculation procedure TAXBRA and set the CBT Act. Indicator.

For SD, create an entry for usage A, application V, calculation procedure RVABRA and set the CBT Act. Indicator.

Assign country to calculation procedure 4.2.3

SAP Access

Access Menu SAP Customizing Implementation Guide -> Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Assign Country to Calculation Procedure


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In this Customizing activity, you need to assign the calculation procedure TAXBRA to the country BR.

Access sequences 4.2.4Access sequences are cross-client data delivered by SAP.

In the condition-based tax calculation, adjust the access sequences whenever a new tax group is cre-ated or an existing group is changed. The section 4.2.10.1 describes how to update access sequenc-es.

4.2.4.1 Define access sequences for application TX (MM/FI) SAP Access

Access Menu SAP Customizing Implementation Guide -> Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check calculation procedure – Access Sequences


Tax Manager’s Workplace (TMW)

Condition Setup Access Sequences MM

Here you define the access sequences within the application TX. These access sequences can be used in the tax calculation that is called by the MM applications. The corresponding view cluster is VVC_T682_TX.

Access sequences are delivered by SAP and you do not need to define them.

All SAP standard access sequences for the application TX can be found in the section 5.1.1 of this document.

4.2.4.2 Define access sequences for application V (SD) SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Basic Functions Pricing Pricing Control Define Access Se-quences Maintain Access Sequences



Condition Setup Access Sequences SD

At this point, you can define the access sequences within the application V. These access sequences can be used in the SD pricing procedures. The corresponding view cluster is V_T682.

Access sequences are delivered by SAP and you do not need to define them.

All SAP standard access sequences for the application V can be found in the section 5.1.2 of this doc-ument.

Condition types 4.2.5

4.2.5.1 Create condition types for application TX (MM/FI) SAP Access

Access Menu SAP Customizing Implementation Guide -> Financial Accounting Finan-cial Accounting Global Settings Tax on Sales/Purchases Basic Set-tings Check calculation procedure – Define Condition Types


Tax Manager’s Work-place (TMW)

Condition Setup Condition Types MM

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At this point, you define the condition types within the application TX. These condition types can be used in the tax calculation that is called by the MM application. The corresponding maintenance view is VV_T685A_V1.

Condition types for the application TX (MM/FI) can be classified in the following classes:

Tax code conditions: they indicate that a certain tax type is due. These condition types have to be entered also in the table J_1BAJ in order to classify them as tax type. Some examples of tax code conditions are ICOF (COFINS deductible), ICON (COFINS normal tax).

Tax rate conditions: they contain tax data. These condition records are maintained automati-cally during the maintenance of the Brazilian tax rate tables. An internal code must be as-signed to each tax rate condition. See section 4.2.8. Tax rate conditions are for example BCO1 (COFINS Rate), BPI1 (PIS rate).

NF mapping conditions: these are only used to mark specific lines of the calculation procedure to use them in the Nota Fiscal mapping tables. These are for example BX80 (BR PIS Base), BX82 (BR PIS Amount).

NF mapping conditions with manually created condition records: these conditions are manual, that is, they have no access sequence and no condition records in the database. There are only 2 such conditions: BXWT (BR WHT Base Amount) and BXWA (BR WHT Acc Base Amt).

For using the withholding tax functionality with base amount accumulation, you need the con-dition type BW51 (WHT Acc. Flag).

Conditions that refer to other conditions: These are conditions that have a reference condition containing the data. They are used to reuse a condition value in another line of the calculation procedure.

The BC Set ZCSC_BR_CBT_CONDITION_TYPES_MM contains all standard condition types for MM/FI delivered by SAP.

All standard delivered condition types for MM/FI can be found in the section 5.1.3 and following of this document.

4.2.5.2 Create condition types for application V (SD) SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Dis-tribution Basic Functions Pricing Pricing Control Define Condition Types Maintain Condition Types


Tax Manager’s Workplace (TMW) Condition Setup Condition Types SD

At this point, you define the condition types within the application V. These condition types can be used in the SD pricing procedures. The corresponding maintenance view is V_T685A.

Condition types for the application V (SD) can be classified in the following classes:

Tax code conditions: they indicate that a certain tax type is due. These condition types have to be entered also in the table J_1BAJ in order to classify them as tax type. Some examples of tax code conditions are: ICN3 (COFINS from SD), ICW3 (COFINS Withholding TaxSD).

SD tax code conditions: DCOF (COFINS due), DPIS (PIS due), DWHT (WHT due).

Tax rate conditions: they contain tax data. These condition records are maintained automati-cally during the maintenance of the Brazilian tax rate tables. An internal code must be as-signed to each tax rate condition. See section 4.2.8. Tax rate conditions are for example: BCO1 (COFINS rate), BPI1 (PIS rate).

NF mapping conditions: these are only used to mark specific lines of the calculation procedure to use them in the Nota Fiscal mapping tables. These are for example: BX80 (BR PIS Base), BX82 (BR PIS Amount).

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For using the withholding tax functionality with base amount accumulation, you need the con-dition type BW51 (WHT Acc. Flag).

Conditions that refer to other conditions. These are conditions that have a reference condition containing the data. They are used to reuse a condition value in another line of the calculation procedure.

You do not need to define condition types, because they are delivered by SAP. The BC Set CSC_BR_CBT_CONDITION_TYPES_SD contains all standard condition types for SD delivered by SAP.

All standard delivered condition types for SD can be found in the section 5.1.4 and following of this document.

Account keys 4.2.6

4.2.6.1 Define account keys for MM/FI SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check and Change Settings for Tax Processing


You need several account keys in order to post the different tax types required in Brazil. The account keys are the ones which are used by the tax calculation procedure TAXBRA in order to post taxes for the application TX.

In this activity, you make the necessary specifications for posting taxes. By doing this, you specify the fol-lowing indicators under an account key:

Tax type: output tax, input tax, additional taxes, or "not tax-relevant" can be specified as the tax type.

No deductibility for tax amounts: For this, tax amounts are marked as not deductible.

Posting indicator: you specify whether the tax amount is posted separately or distributed to expense or revenue items.

Tax not relevant to cash discount (not discount relevant): not relevant for Brazil.

SAP delivers account keys for the most important tax types, you should neither delete nor change the standard account keys, but you may add new ones, if required.

The BC set ZCSC_BR_CBT_ACCOUNT_KEYS_FI shows a list containing the standard account keys for Brazil.

4.2.6.2 Define account keys for SD SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Basic Functions Account Assignment/Costing Revenue Ac-count Determination Define And Assign Account Keys


You define your account keys in this menu option and allocate them to the condition types in the pric-ing procedures.

With the account keys, you group together similar accounts in financial accounting. Using the account key, the SAP System finds the desired G/L accounts. This way, you can allocate a separate account

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key to each condition type within a pricing procedure to implement detailed revenue account determi-nation.

For example, you can allocate a freight condition to a freight revenue account, or a surcharge for packaging costs to a corresponding account for packaging revenues.

For Brazil, you can use different account keys to post several kinds of taxes within the pricing proce-dure RVABRA.

SAP delivers account keys for the most important tax types and their assignment to the pricing proce-dure RVABRA. You should neither delete nor change the standard account keys, but you may add new ones, if required.

The BC set ZCSC_BR_CBT_ACCOUNT_KEYS_SD shows a list containing the standard account keys for SD for Brazil.

Define internal codes for tax conditions 4.2.7

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Condition-Based Tax Calculation De-fine Internal Codes for Tax Conditions



Condition Setup Condition Mapping Internal Codes

An internal code must exist for each condition type that is to be used in the automatic generation of condition records during the maintenance of the Brazilian tax tables. Only the internal codes are used in the program coding.

The customer is usually not expected to maintain this table because SAP delivers the internal codes required for the standard Brazilian tax calculation.

For the internal codes representing condition types that contain data of a specific tax group (ICMS, IPI, ISS, or SubTrib), the respective tax group has to be assigned to the codes. This is necessary for the system to consider the access sequence of the condition type assigned to the internal code in the automatic extension of access sequences after changing tax groups of dynamic exceptions.

The corresponding maintenance view is J_1BCONDMAPV.

The BC Set ZCSC_BR_CBT_INTERNAL_COND_CODES contains all standard internal condition codes delivered by SAP.

Assign condition types to internal codes for tax conditions 4.2.8

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Condition-Based Tax Calculation Assign Condition Types to In-ternal Codes for Tax Conditions



Condition Setup Condition Mapping Assign conditions to Internal Codes

The condition types that are used in the tax calculation procedure have to be assigned to the above described internal codes.

For the standard Brazilian tax calculation, SAP delivers all internal codes, condition types, and their assignments.

The corresponding table is J_1BTXCOND.

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The BC Set ZCSC_BR_CBT_INT_CODS_TO_CND_TYPS contains all standard assignments of con-dition types to internal condition codes delivered by SAP.

Assign internal code to tax group 4.2.9The assignment of internal codes to tax groups is a necessary activity but it has no corresponding Customizing activity.

First of all, check that the table J_1BTAXGRPCD contains all required entries as listed in the table below. You can do that using the transaction SE16N.

If entries are missing, enter them. Go to the transaction SE11 and select the table J_1BTAXGRPCD to display. From there, follow the menu path Utilities -> Table contents -> Create entries. Alternatively, you can use the transaction SE16N to edit the table.

The table J_1BTAXGRPCD in your system must contain all entries as shown below:

Tax Group Internal Code COFI TXSDCCOFINS ICFR TXSDCICMSFREIGHT ICFS TXSDCSUBTRIBFREIGHT ICMS TXSDCICMS ICST TXSDCSUBTRIB IPI TXSDCIPI ISS TXSDCISS ISSP TXSDCISS ISSS TXSDCISS PIS TXSDCPIS WACO WHT_ACTIVE_COFINS_ACC WACS WHT_ACTIVE_CSLL_ACC WAIR WHT_ACTIVE_IR_ACC WAPI WHT_ACTIVE_PIS_ACC WAT WHT_ACTIVE_GEN_ACC WHCO WHT_ACTIVE_COFINS WHCS WHT_ACTIVE_CSLL WHIR WHT_ACTIVE_IR WHPI WHT_ACTIVE_PIS WHT WHT_ACTIVE_GEN

Tax groups for dynamic exceptions 4.2.10

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates Define Tax Groups for Dynamic Exceptions



Tax Calculation Maintain Tax Groups

In this Customizing activity, you define tax groups, which you use to define dynamic exceptions for Brazilian tax calculation. For each tax group, you can specify up to three key fields that are to be used to determine the tax rates for the tax types you activate it for.

If you use the condition-based tax calculation for Brazil, you must adjust the access sequences that belong to the conditions that store the tax rates for each tax group that you create or change. You

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need to include a new step in all those access sequences that conditions use to calculate taxes for the tax types marked as active. SAP provides a program, J_1B_EXT_ACC_SEQ, which does this for you automatically. You access this from the Tax Manager's Workplace by choosing Condition Setup -> Migration -> Tax Groups in Access Sequences (refer to the program documentation for details).

Note: The running of the J_1B_EXT_ACC_SEQ program can lead to cross-client changes in data.

You can define groups in the range from 10 to 89. The numbers between 0 and 9 as well as between 90 and 99 are reserved for SAP. These groups should not be deleted. SAP delivers the groups 1, 5 and 97 to 99.

The table below explains the usage of the tax groups delivered by SAP:

Tax Group Usage 1 MM: ICMS base reduction carrier

SD: ICMS base reduction customer ISS rates (material-dependent)

5 ICMS, IPI, S.T. material-dependent exceptions MM: ISS exceptions (dependent on ship-from, ship-to, material)

97 SD: IPI tax laws (based on NCM code) 98 IPI standard taxes (based on NCM code)

SD: IPI tax laws (based on country) ICMS standard tax rates (based on ship-from and ship-to) S.T. standard tax rates (based on ship-from, ship-to, S.T. group)

99 Default taxes (based on country) SD: IPI tax laws (based on tax code)

4.2.10.1 Migration of tax groups in access sequences You can use the report J_1B_EXT_ACC_SEQ to automatically update access sequences after you have created or changed tax groups for dynamic exceptions.

You need to be authorized for cross-client Customizing if you want to modify the access sequences. It is important that you ensure that tax groups are not customized differently in different clients because with each conversion to access sequences, the previous Customizing settings will be overwritten.

On the program selection screen, you enter the tax groups you want to include in the update. You can simulate the results of the program by setting the Simulate Only indicator. This is extremely important because the program makes cross-client changes to your data. If you have no authorization for cross-client customizing, this indicator is set by default and cannot be cleared.

Additionally, you need to specify what type of conversion is to take place:

Update access sequences - if you want to update existing steps in the access sequences.

Insert into the access sequences - if you want to include new steps in the access sequences after creating a new tax group.

Delete from access sequences - if you want to delete existing steps from the access sequences.

Following the conversion or the simulation, the system displays a log that contains all messages is-sued during processing.

The system behaves depending on the selected option

A. Update access sequences

If the system finds a step in the access sequence that has the same number of the tax group, it over-writes the step's field assignment with the values customized for the tax group.

If the system does not find a corresponding step in the access sequence, it inserts a new step.

If the system finds a step in the access sequence that corresponds to the selected tax group, but the Customizing settings indicate that this access sequence should not have this step, then the system deletes the step from the access sequence.

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B. Insert into access sequences

Select this option if the tax groups you have specified have no corresponding steps and field assign-ments in the access sequences yet (this would be the case when you have created a new tax group). If the system does find a step with the number of the tax group in an access sequence, it displays one of the following in the application logs:

Warning message: the existing field assignment is identical to the field assignment that would be gen-erated by the conversion

Error message: the actual field assignment differs, in which case the system does not change the access sequence

C. Delete from access sequences

Select this option if the tax groups you have specified are to be deleted from all access sequences used in the CBT.

Assign condition tables to tax rate tables 4.2.11

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Condition-Based Tax Calculation As-sign Condition Tables to Tax Tables



Condition Setup Condition Mapping Map Tax Rate Tables to Condition Tables

When you maintain Brazilian tax tables, the system generates or changes condition records automati-cally. In this Customizing activity, you specify which condition tables are to be used for a specific tax table. In the case of dynamic exceptions, you additionally specify the condition table per tax group. The system then knows for which condition table (which must be contained in the access sequence) condition records are to be generated.

The BC Set ZCSC_BR_CBT_CND_TBS_TAX_RT_TBS contains all standard assignments of condi-tion tables to tax rate tables delivered by SAP. The BC set contains the black entries listed in the table below. These are all assignments of tax tables to condition tables, which are not dependent on a tax group (the tax group is empty).

The red entries in the table below are not delivered by SAP because they depend on the tax groups that you define. In fact, the assignment of tax tables to condition tables is done with reference to a tax group for: dynamic exceptions for IPI, ICMS and Sub.Trib.; always for ISS, PIS, COFINS and withhold-ing taxes.

Table Name Description Tax group Cond. Table J_1BTAXCODEV FI Tax Codes 3 J_1BTREGX Tax Regions 394 J_1BTXCI1** Maintain ICMS-Complement Exceptions 349 J_1BTXDEF** Maintain Default Tax Rate Values 392 J_1BTXIC1** Maintain ICMS Values 382 J_1BTXIC2** Maintain ICMS Material-Dependent Excep-

tions 382

J_1BTXIP1** Maintain IPI Values 346 J_1BTXIP2** Maintain IPI Material-Dependent Exceptions 346 J_1BTXSDC SD Tax Codes 291 J_1BTXIS1 Tax calc.: ISS rules for sales 121

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J_1BTXST1** Maintain SubTrib Material-Dependent Excep-tions

348

J_1BTXST2** Maintain SubTrib Values 348 J_1BTXCOF** Maintain COFINS Values any * 346 J_1BTXIC3** Maintain ICMS Dynamic Exceptions any * 382 J_1BTXIP3** Maintain IPI Dynamic Exceptions any* 346 J_1BTXIS3 Grouped ISS any* 347 J_1BTXISS** Maintain ISS Values any* except country

default ( this is table 392)

601

J_1BTXPIS** Maintain PIS Values any* 346 J_1BTXST3** Maintain SubTrib Dynamic Exceptions any* 348 J_1BTXWITH** Withholding Tax Calculation: Rates and Col-

lection Codes any* 346

* SAP does not deliver standard Customizing of dynamic tax exceptions. If you create new tax groups, you must specify a new entry for each group you use. In SAP’s standard concept, the condition table is the same for all tax groups. However, in case you need to follow a different concept of Customizing access sequences you can specify different condition tables per tax group. We recommend staying with the standard concept of one tax group per table. ** You can find these entries in the overview page of the Tax Manager’s Workplace (transaction J1BTAX). There you define tax rates for several kinds of taxes.

Tax calculation logic 4.2.12The tax calculation is performed in ABAP coding. However, different to the classical Brazilian tax cal-culation, only the calculation is done there. All data retrieval and Nota Fiscal generation is based on the Customizing of the calculation procedure and the Nota Fiscal mapping tables.

The condition value formula 320, already used in the classical Brazilian tax calculation, was extended to work also with CBT. If the calculation procedure is specified in the table J_1BCBTAXPROC, the function module J_1B_CBT is called in which the new calculation logic is processed.

The formula is used to call the tax calculation as well as to retrieve the results of the tax calculation in order to store them in the pricing-procedure results table. The differentiation is done by analyzing the condition type of the step in the calculation procedure in which the formula was called. By assigning internal codes to these condition types, depending on this internal code either the calculation is started or a specific tax result is retrieved (identified by the internal code).

For example, in the MM/FI calculation procedure TAXBRA, the tax calculation is triggered in the step that contains the condition type BX01. This is because condition type BX01 is assigned to the internal code CALCULATE_TAX.

The tax results are retrieved in the next section of the calculation procedure. Each line contains a con-dition type that is assigned to an internal code that indicates a tax result value. For example condition type BX12 is assigned to the internal code NF_ICMS_OBAS which indicates the ICMS other base amount.

In the SD pricing, the formula must be called two times, in case there are Nota Fiscal relevant condi-tions (for example. Discounts, Freight etc.) including ICMS. The procedure is identical to the classical tax calculation, that is. the first call is calculating tax on the net amount on condition ICMI, whereas the second call on condition IBRX is calculating based on the amount including ICMS, possibly modified by other conditions in between.

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4.2.12.1 Calculation Procedure in MM/FI: TAXBRA SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check Calculation Procedure



Condition Setup Calculation Procedures Calculation Proce-dures MM

The calculation procedure TAXBRA is used in the FI tax calculation, which is called in MM transac-tions. This calculation procedure is structured in the following sections:

Transaction data retrieval:

o The first line of the calculation procedure contains just a zero value. It is used to refer to it in lines of the calculation procedure that only contain explanatory texts (like for example step 011) so that no confusing intermediate sum appears in such lines on the pricing results screen in the transactions.

o In the first section of the calculation procedure, data, specific to the item that is pro-cessed in the tax calculation, is processed. These are the net value (step 010, BASB), the discount (step 012, BDIS), the freight (step 013, BFRE), and the S.T. base modifi-cation amount (step 014, BSUB). Furthermore, the calling application (PO/ IM or IV) is determined (step 017, BXPO).

Customizing data retrieval: in the next section, the tax customizing data (rates, laws, and other flags) are read from the condition database. The access is done based on the actual values in the communication structures KOMP and KOMK and is controlled by the access sequences assigned to the condition types (step 20 to 125).

Tax calculation: after all data are retrieved that are necessary to calculate the taxes, the tax calcu-lation is performed (step 191).

Results of tax calculation: the results of the tax calculation are retrieved in the next section of the calculation procedure. For each value, a condition type is defined that serves to indicate the result in the pricing procedure results table. For these new condition types, corresponding internal codes are defined which are used in the coding to transfer the tax results back to the calculation proce-dure (steps 200 to 386).

Tax code conditions: the last section of the tax calculation procedure contains the tax code condi-tions, that is. the conditions that you activate (100%) or deactivate (no record) by customizing the tax codes. The condition base values are taken from the lines in the calculation procedure that con-tain the tax results described in the section before (steps 400 to 972).

The calculation procedure TAXBRA is delivered by SAP. The standard customizing, which is delivered in client 000, is, however, only updated for the latest release.

The standard calculation procedure TAXBRA is contained in the BC set ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM.

If you intend to activate the BC set to your system and you have already a tax calculation procedure named TAXBRA in your system, you should delete the tax calculation procedure TAXBRA before acti-vating the BC sets. In fact, if you have already the tax calculation procedure TAXBRA in your system and you activate the BC set, it could happen that you get the same entries with different step numbers which would cause errors in the calculation procedure.

When you activate BC set ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM you will see the following message “Activation ended with additional information” in the information bar. The system considers that not all data in object VVC_T683_TX was activated in all languages, because the BC set delivers texts only for the steps which do not have a condition type behind. For all the other steps, the text that you can see in the description field (when you have a look at the calculation procedures in J1BTAX) comes from the assigned condition type. Ignore the information message that you get at activation,

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because after activation you will have all the texts in the description column of the calculation proce-dure.

You can also check the calculation procedure TAXBRA in the section 5.1.5 of this document.

4.2.12.2 Calculation Procedure in SD: RVABRA SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Basic Functions Pricing Pricing Control Define And Assign Pricing Procedures



Condition Setup Calculation Procedures Calculation Proce-dures SD

The calculation procedure RVABRA is delivered as a sample SD pricing procedure. Because it con-tains normal conditions besides the tax conditions, it will most likely be necessary to adapt it to the individual needs.

It is structured in the following sections:

Net price determination:

o The first line of the calculation procedure contains just a zero value. It is used to refer to it in lines of the calculation procedure that only contain explanatory texts (like for example step 199) in order that no confusing intermediate sum appears in such lines on the pricing results screen in the transactions.

o The rest covers the determination of the net price (price excluding any kind of tax), for example taking into account discounts which should not have impact on Nota Fiscal.

IMPORTANT: when using CBT you need several prices, which are used to calculated different taxes in the correct way. It is recommendable to create condition types like the ones shown in the table be-low. In that case, you do not need the standard condition type PR00.

Step Cntr CTyp Description From To Reqt Stat Prt AltCTy AltCBV ActKy 001 **** Zero **** 000 000 000 X 000 000

010 1 ZPB0 Price w/o Taxes 000 000 002 000 000

010 2 ZPB1 Price+ISS 000 000 002 000 000

010 3 ZPB2 Price+PIS+COF 000 000 002 000 000

010 4 ZPB3 Price+ISS+PIS+COF 000 000 002 000 000

010 PR00 Price 000 000 002 000 000

Customizing data retrieval: In the next section, the tax customizing data (rates, laws, and other flags) are read from the condition database. The access is done based on the actual values in the communication structures KOMP and KOMK and is controlled by the access sequences assigned to the condition types (step 200 to 199).

Tax calculation on net amount (Step 1): After all data is retrieved that are necessary to calculate the taxes, the tax calculation is performed by processing the condition value formula 320 (step 300).

Nota Fiscal relevant modifications to the base price including ICMS: In this part, the price including ICMS which results from the first step of the calculation amount, can be used to apply conditions that modify this amount, for example, Nota Fiscal relevant discounts, freight, insurance, or other expenses. These conditions are not really part of the tax calculation, but are specific to individual requirements. The step range foreseen for these kinds of conditions is between 301 and 599.

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Tax recalculation on the modified amount including ICMS (Step 2): The modification amounts that have been applied in the previous part require a recalculation of the taxes, this time on the modified gross amount. This is done by the condition type IBRX (step 600).

Results of tax calculation: The results of the tax calculation are retrieved in the next section of the calculation procedure. For each value, a condition type is defined. This condition type serves to in-dicate the result in the pricing procedure results table. For these new condition types, correspond-ing internal codes exist which are used in the coding to transfer the tax results back to the calcula-tion procedure. This coding is processed in the call to the condition value formula 320 as well (step 610 to 683).

Tax code conditions: The last section of the tax calculation procedure contains the tax code condi-tions, that is, the conditions that you activate (100%) or deactivate (no record) by customizing the tax codes for the MM/FI calculation procedure. In the SD procedure, they are present only to pro-vide a counterpart, however they are dummy entries. The true postings are being done directly by the tax result conditions of the previous section. The conditions ICMO and ISSO are the known ICMS and ISS offset conditions. The part between step 730 and 998 can be used for additional conditions, for example cash discount or rounding difference conditions.

The calculation procedure RVABRA is delivered by SAP. The standard customizing, which is delivered in client 000, is however updated only for the latest release.

The standard calculation procedure RVABRA is contained in the BC set ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD.

When you activate BC set ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD you will see the following message “Activation ended with additional information” in the information bar. The system considers that not all data in object VVC_T683_TX was activated in all languages, because the BC set delivers texts only for the steps which do not have a condition type behind. For all the other steps, the text that you can see in the description field (when you have a look at the calculation procedures in J1BTAX) comes from the assigned condition type. Ignore the information message that you get at activation, because after activation you will have all the texts in the description column of the calculation proce-dure.

You can also check the calculation procedure RVABRA in the section 5.1.5 of this document.

Tax Types 4.2.13

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Define Tax Types



Condition Setup Tax Types

In this Customizing activity, you define tax types for Brazil. At this point, you can define the condition types that indicate whether a specific tax is due or whether specific lines are to be listed in the Nota Fiscal. The FI/MM condition types are referred to as tax types.

Furthermore, you can set the LPP (Last Purchase Price) indicator for each tax type in order to activate the recording of the LPP.

The corresponding maintenance view is J_1BAJV.

All tax types delivered by SAP are contained in the BC set ZCSC_BR_CBT_TAX_TYPES.

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Price conditions 4.2.14

4.2.14.1 Price conditions MM In Brazil, depending on your business process, you may need to include certain taxes in the net price of materials before the system calculates the tax in the standard way. You do this by defining condition types that contain net prices for each combination of tax groups.

When entering a material's net price in a purchasing info record or in a contract, a dialog box appears with the entire basic price conditions defined in the calculation procedure. You select the appropriate one.

When you enter a purchase order item, the system uses the conditions defined in the corresponding info record or contract. If no condition is available, then you must specify a net price in the PO. The system stores it in the manual condition PBXX, for which you can customize the taxes that are includ-ed by default. Alternatively, you can specify the price in a different condition by changing the lines on the condition screen in the item details.

If necessary, create new price conditions and adapt the MM pricing procedure for Purchase Orders (for example RM0000) or create new ones by copying and modifying.

Price conditions are not delivered by SAP; you must create your own conditions.

4.2.14.2 Define Which Taxes Are Included in MM Price Conditions SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Define Which Taxes Are Included in MM Price Conditions


When the system calculates tax for a given transaction, it accesses the entries in this Customizing activity to determine if the base value already includes a certain tax group.

Define which tax is included in which price by specifying a tax group for each of your price condition types. Note that those condition types are defined as basic prices (these are assigned the condition category H in the definition of the condition type). The following tax groups are supported: PIS, COFINS, ISS at location of service provider, ISS at location where service is provided, and ISS at location of service recipient. If more than one tax group applies to a single condition type, you must create a separate entry for each combination.

No standard settings are delivered for this Customizing activity; you must define which taxes are in-cluded in the MM price conditions manually.

4.2.14.3 NF-relevant Price conditions SD SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Billing Billing Documents Country-specific Features Coun-try-specific Features for Brazil Special Conditions For Pricing


Tax Manager’s Workplace Nota Fiscal SD Billing NF-relevant SD conditions

In order to allow the correct recalculation of the taxes on the amount including tax during the second step of the SD pricing, this customizing indicates how the modification conditions should be taken into account, for example, if they are included or not in the IPI base, if they affect the Sub.Trib. base amount or if they are relevant for Sub.Trib. on freight.

The standard settings delivered for pricing procedure RVABRA are in the BC set ZCSC_BR_CBT_NF_SD_CND_FOR_RVABRA.

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4.2.14.4 Define Which Taxes Are Included in SD Price Conditions SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Define Which Taxes Are Included in SD Price Conditions


In this Customizing activity, you define which taxes are included in which prices.

Customizing Settings MM/FI 4.2.15

4.2.15.1 Map MM values to Nota Fiscal fields SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Condition-Based Tax Calculation Map MM Tax Values to Nota Fiscal Fields



Condition Setup Nota Fiscal Mapping Map Values MM

By using the new condition-based tax calculation, the pricing-procedure results table contains all val-ues that must be listed in the Nota Fiscal. In this Customizing activity you determine which values of the table are transferred to which nota fiscal fields.

The maintenance view is J_1BNFTXCONDMMV for MM.

A tax line in the Nota Fiscal consists of the tax rate, pauta rate (used for IPI Pauta), the tax value, the normal base, the excluded base, and the other base. An active tax type for a tax code leads to a cor-responding line in the nota fiscal. In this view, it is specified from which fields in the pricing-procedure results table the above mentioned nota fiscal fields are being filled.

Standard Customizing settings can be found in the BC Set ZCSC_BR_CBT_MAP_MM_VLS_TO_NF_FDS.

4.2.15.2 Map MM Tax Laws to Nota Fiscal fields SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Condition-Based Tax Calculation Map MM Tax Laws to Nota Fiscal Fields



Condition Setup Nota Fiscal Mapping Map Laws MM

At this point, you can define which fields of the table of the tax calculation procedure used in MM con-tain the tax law texts of the nota fiscal.

The corresponding maintenance view is J_1BNFLWCONDMMV.

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The tax laws are stored in condition records that are generated by the maintenance of the tax code or the maintenance of certain tax rate tables (such as Maintain IPI values or Maintain ICMS Material-dependent Exceptions).

Standard Customizing settings are in the BC Set ZCSC_BR_CBT_MAP_MM_LWS_TO_NF_FDS.

4.2.15.3 Create MM tax codes SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Define FI/MM Tax Codes



Tax Calculation Tax Codes MM

The Customizing of FI/MM tax codes is done in the maintenance view J_1BTAXCODEV.

The transaction FTXP cannot be used because it is incompatible with the tax calculation procedure TAXBRA. For example in FTXP, records can be generated only for condition types that are non-statistical and that have an account key assigned in the calculation procedure. In TAXBRA, however, there are statistical lines that have tax code conditions.

In transaction J1BTAX, go to the maintenance of tax codes. Create the tax codes you need.

In the section 5.2. you find hints on how to configure tax codes for Brazil.

4.2.15.4 Assign tax accounts SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Posting Define Tax Accounts


At this point, you can assign the G/L tax accounts to account keys. You can use the same G/L account for more than one account key or use a different G/L account for each account key depending on your business needs.

No standard values are delivered for this customizing table, since G/L account numbers depend on the used chart of accounts.

Customizing Settings SD 4.2.16

4.2.16.1 Tax Determination Rules SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Basic Functions Taxes Define Tax Determination Rules

Transaction Code OVK1

You need to assign the Tax Category IBRX to the country BR. Check if this entry is already available in your system or enter it as follows:

Tax country BR

Name Brazil

Sequence 1

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Tax category IBRX (Brazil tax calculation)

4.2.16.2 Map SD tax values to Nota Fiscal fields SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Condition-Based Tax Calculation Map SD Tax Values to Nota Fiscal Fields



Condition Setup Nota Fiscal Mapping Map Values SD

By using the new condition-based tax calculation, the pricing-procedure results table contains all val-ues that need to be listed in the nota fiscal. In this customizing activity you customize which values of the table are transferred to which nota fiscal fields.

The maintenance view is J_1BNFTXCONDV for SD.

A tax line in the nota fiscal consists of the tax rate, pauta rate (used for IPI Pauta), the tax value, the normal base, the excluded base, and the other base. An active tax type for a tax code leads to a cor-responding line in the nota fiscal. In this view it is specified from which fields in the pricing-procedure results table the above mentioned nota fiscal fields are being filled.

Standard Customizing settings are in the BC Set ZCSC_BR_CBT_MAP_SD_VLS_TO_NF_FDS.

4.2.16.3 Create SD tax codes SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Fi-nancial Accounting Global Settings Tax on Sales/Purchases Calcu-lation Settings for Tax Calculation in Brazil Define SD Tax Codes



Tax Calculation Tax Codes SD

The Customizing of SD tax codes is done in the maintenance view J_1BTAXCODEV. SD tax codes are defined similarly to the MM/FI tax codes.

In the section 5.2. you find hints on how to configure tax codes for Brazil.

4.2.16.4 Define Sequence for Tax Code Determination in SD SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Fi-nancial Accounting Global Settings Tax on Sales/Purchases Calcu-lation Settings for Tax Calculation in Brazil Define Sequence for SD Tax Code Determination



Tax Calculation Tax Code Determination SD

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In Sales and Distribution there are two places to define the SD Tax Code which can be automatically determined in a transaction (for example a sales order). It can be either derived from the Item Catego-ry, or from the Customer/Material Information Record.

In this Customizing activity you can define the sequence in which the system accesses these sources.

You can define in the table J_1BTXCODESEQ a sequence that data sources are to be accessed. Enter sequential integer numbers and assign the data sources from the drop down menu to them. During the processing, the system will look up the data sources in ascending order of the sequence number until a tax code is found.

You must enter the following settings in your system:

Sequence in Tax Code Determination Source for Tax Code Determination

1 Item Category Table

2 Customer Material Information

An example is shown in the table above. In this example the system first looks up the item category table. If no tax code is found, the system looks up in the customer material information.

You can define the sequence that better suits your business needs, but it is mandatory that you enter a sequence otherwise no tax code determination will take place.

4.2.16.5 Define Sequence for Tax Law Determination in SD SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Fi-nancial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Define Sequence for SD Tax Law Determination



Tax Calculation Tax Law Determination SD

In Sales and Distribution, the system derives the tax law for ICMS and IPI automatically from one of these sources:

Tax exceptions (You maintain tax exceptions under Financial Accounting -> Financial Ac-counting Global Settings - > Tax on Sales/Purchases -> Calculation -> Settings for Tax Calcu-lation in Brazil -> Tax Rates)

Item category Customer master record

In this Customizing activity, you define the sequence that the system accesses these sources.

This Customizing activity is performed to define the sequence of the determination logic of the SD tax laws. The corresponding table is J_1BTXLAWSEQ. You could for example enter the following settings in your system:

Sequence in Tax Law Determination Source for Tax Law Determination

1 Tax Exception Tables

2 Item Category Table

3 Customer Master

In this example, the system searches for tax laws; first it looks up the tax exception tables, then the item category tables, and finally the customer master.

You can define the sequence that better suits your business needs, but it is mandatory that you enter a sequence otherwise no tax law determination will take place.

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4.2.16.6 Assign tax accounts for revenue determination SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Basic Functions Account Assignment/Costing Revenue Ac-count Determination Assign G/L Accounts


In this menu option, you allocate G/L accounts for revenue account determination

No standard values are delivered for this Customizing table, because G/L account numbers depend on the used chart of accounts.

Tax Rates 4.2.17

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates



Overview Tax Rate Tables

Tax rates for the different tax types can be entered in the Tax Manager’s Workplace. In the TMW’s overview screen you can select for which tax type and according to which criteria you want to enter the tax rates (for example for a specific tax type or as dynamic exceptions). Example: IPI

You can define IPI tax rates based on the NCM code, the official material classification used in Brazil (Maintain IPI values). Additionally, you can define IPI tax rates specific to a material (Maintain IPI Ma-terial-Dependent Exceptions). Finally, you can define IPI tax rates depending on a tax group that you have created before (Maintain IPI Dynamic Exceptions). In addition to these activities, you must enter a default tax rate, which is used by the system if it cannot determine the tax rate in any other way (Maintain Default Tax Rate Values).

During tax calculation, the system searches for the correct tax rate in the following tables in the speci-fied order, taking the first rate it finds:

1. Material-dependent exceptions 2. Dynamic exceptions 3. Normal values 4. Default values

Example: ICMS You can define ICMS tax rates based on the combination of ship-from and ship-to state. For each combination of ship-from and ship-to location you can enter the tax rate for ICMS and the tax rate for freight (called Conhecimento de Transporte Eletrônico). Additionally, you can also define material-dependent exceptions, dynamic exceptions and exceptions for ICMS complement. Also for ICMS, you must define a default tax rate.

Example: PIS/COFINS

For PIS and COFINS it is not possible to enter tax rates directly, but you always enter the tax rates based on a group for dynamic exceptions. There are no default values for PIS and COFINS.

4.2.17.1 Create default tax rates for ICMS and IPI SAP Access

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Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates Maintain Default Tax Rate Values



Overview Tax Rate Tables Maintain Default Tax Rate Values

In this Customizing activity, you define default rates for Brazilian tax calculation. The system uses these default rates for ICMS and IPI if it cannot determine a valid rate in the specific tax rate tables

The table below is an example which shows how such entries should look like, but you can enter other values:

Tax Valid From Tax Rate

ICMS 01.01.1995 12,00

IPI 01.01.1995 10,00

Other (manual) Customizing settings for ICMS, IPI, PIS/COFINS 4.2.18In the following sections you can see which other customizing settings are required for a correct post-ing of ICMS, IPI and PIS/COFINS taxes. These settings are not required for the tax calculation and are therefore not strictly connected to CBT, but you need to perform them in order to get correct tax post-ings and a correct and complete Nota Fiscal. Be aware of these customizing settings. For detailed information, go to the respective IMG documentation.

4.2.18.1 Tax Regions SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Finan-cial Accounting Global Settings Tax on Sales/Purchases Basic Set-tings Brazil Define Brazilian Tax Regions and Assign to Geographical Regions



Entities Tax Regions

In this Customizing activity you maintain tax regions for Brazil and assign a geographical region to each tax region. For further details, check the IMG documentation.

4.2.18.2 NCM Codes SAP Access

Access Menu SAP Customizing Implementation Guide Cross-Application Components General Application Functions Nota fiscal NCM Codes



Entities NCM Codes

Here you define the NCM codes for your materials and material groups. NCM codes are used by the system to determine the IPI tax rate. For further details, check the IMG documentation.

4.2.18.3 Sub. Trib. Groups SAP Access

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Access Menu … … … … … ..



Entities Sub. Trib. Groups

For further details, check the IMG documentation.

4.2.18.4 CFOP SAP Access

Access Menu SAP Customizing Implementation Guide Cross-Application Compo-nents General Application Functions Nota fiscal CFOP Codes



Entities CFOP Codes

Here you define the CFOP codes which must be printed on the Nota Fiscais. For further details, check the IMG documentation.

4.2.18.5 Tax Laws and Tax Situations SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Fi-nancial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil …



Entities Tax Laws

In this Customizing activity, you enter the tax laws and corresponding tax situations to be used in your system for different tax types. For further details, check the IMG documentation.

4.3 CBT Customizing settings for ISS

Create condition table A601 4.3.1

SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Basic Functions Pricing Pricing Control Define Condition Tables


This table is used for ISS data. You can choose a different number than 601 if this table is already in use for something else. In this case, replace 601 by your number in the access sequences described in the next sections.

The table must have the following technical settings:

Technical settings

Name A601

Short text Country/Tax Jur./Key 1/Key 2/Key 3/Tax Group

Data class APPL0 (Master data, transparent tables)

Size category 0 (Data records expected: 0 to 2.600)

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Buffering Buffering switched on

Buffering type Fully buffered

Maintain as transparent table Yes

Delivery and maintenance

Delivery class Application table (master and transaction data)

Data Browser/Table View Maintenance Display/Maintenance allowed with restrictions

The table fields must be created as described below:

Field Key Initial value

Data element Data type

Length Decimals Short description

MANDT X X MANDT CLNT 3 0 Client

KAPPL X X KAPPL CHAR 2 0 Application

KSCHL X X KSCHA CHAR 4 0 Condition type

ALAND X X ALAND CHAR 3 0 Departure country (coun-try from which the goods are sent)

TXJCD X X TXJCD CHAR 15 0 Tax Jurisdiction

DYNKEY1 X X J_1BDYNKEY1 CHAR 20 0 Dynamic Key Field 1



TAXGROUP X X J_1BTXGRP NUMC 2 0 Tax Group for Dynamic Tax Exceptions

DATBI X X KODATBI DATS 8 0 Validity end date of the condition record

DATAB X KODATAB DATS 8 0 Validity start date of the condition record

KNUMH X KNUMH CHAR 10 0 Condition record number

The entries for help/checks must be created as shown below:

Field Data element Data type

For. keys

Check table

Origin of the input help

Search help

Domain

MANDT MANDT CLNT X T000 Input help imple-mented with check table

H_T000 MANDT

KAPPL KAPPL CHAR X T681A Input help imple-mented with check table

CSH_T681A KAPPL

KSCHL KSCHA CHAR X T685 Input help imple-mented with check table

H_T685 KSCHL

ALAND ALAND CHAR X T005 Input help imple-mented with check table

LAND1

TXJCD TXJCD CHAR X TTXJ Input help imple- H_TTXJ TXJCD

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mented with check table

DYNKEY1 J_1BDYNKEY1 CHAR J_1BVALUE



TAXGROUP J_1BTXGRP NUMC X J_1BTXGRUOP Input help imple-mented with check table

J_1BTXGRP

DATBI KODATBI DATS Input help based on data type

DATUM

DATAB KODATAB DATS Input help based on data type

DATUM

KNUMH KNUMH CHAR KNUMB

When you are finished, save and activate the new table.

Extend pricing field catalog 4.3.2In order to use the new components LOC_PR (Location of Service Provider) and LOC_SE (Location Where Service Is Provided) in the ISS access sequences, the pricing field catalog must be extended by these components.

This is performed in the maintenance view V_T681F.

Use transaction SM30, enter V_T681F in the field table/view, then click the maintain button.

Specify usage ‘A’, application ‘V’, and field group 001. Add the new components LOC_PR and LOC_SE from structure KOMP.

Do the same for usage ‘A’, application ‘TX’, and field group 001.

Access sequences for ISS 4.3.3

4.3.3.1 Access sequences for application TX SAP Access

Access Menu SAP Customizing Implementation Guide -> Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Check calculation procedure – Access Sequences




Access sequences, which are used in the condition types for ISS, are delivered in SAP standard (see section 4.2.4).


However, for MM access sequences BRS1 (Brazil ISS at service provider) and BRS2 (Brazil ISS wh. serv. provider), Step 5 is not delivered because it refers to table 601.

You need to go to the respective Customizing activity and enhance the access sequences as de-scribed in the tables below.

You need to enter the following settings:

Access Sequence BRS1 – steps and field assignment

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Step Tab. Req. Excl. Field Assignment

Condition I/O Doc.Struc. Doc.Field Constant

5 601

0 X ALAND = BR

TXJCD KOMP LOC_PR

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

99 392 0 X ALAND = BR

Access sequence BRS2 - steps and field assignment



5 601 0 X ALAND = BR

TXJCD KOMP LOC_SE

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

99 392 0 X ALAND = BR

4.3.3.2 Access sequences for application V SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Basic Functions Pricing Pricing Control Define Access Se-quences Maintain Access Sequences




Access sequences, which are used in the condition types for ISS, are delivered in SAP standard (see section 4.2.4).


Also for SD access sequences ISS1 and ISS2, Step 5 is not delivered because it refers to table 601.

You need to go to the respective Customizing activity and enhance the access sequences as de-scribed in the tables below.

You need to enter the following settings:

Access Sequence ISS1 - steps and field assignment


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5 601

0 X ALAND = BR

TXJCD = KOMP LOC_PR

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

99 392 0 X ALAND = BR

Access Sequence ISS2 - steps and field assignment



5 601

392

Empty

0 X ALAND = BR

TXJCD = KOMP LOC_SE

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

99 392 0 X ALAND = BR

Create condition types for ISS 4.3.4

SAP Access



Here you define the condition types within the application TX and V. These condition types can be used in the tax calculation that is called by the MM and SD applications respectively.

The BC Set ZCSC_BR_CBT_CONDITION_TYPES_MM and ZCSC_BR_CBT_CONDITION_TYPES_SD contain all standard condition types for MM/FI and SD which you need for the ISS tax calculation and which are delivered by SAP (see section 4.2.5).

All standard delivered condition types for application TX (MM/FI) and V (SD) respectively can be found in the sections 5.1.3 and 5.1.4 of this document.

Define account keys for MM/FI and SD 4.3.5New account keys must be created to post service taxes to separate accounts.

For details about the account keys see paragraph 4.2.6. There you can also the BC set containing the standard account keys for both FI and SD.

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Update calculation procedures for MM/FI and SD 4.3.6For details about the calculation procedures TAXBRA and RVABRA refer to the paragraphs 4.2.12.1 and 4.2.12.2 respectively.

Create new internal condition codes 4.3.7See paragraph 4.2.7

Create mapping of internal codes to condition types 4.3.8See paragraph 4.2.8.

Assign internal code to tax group 4.3.9See paragraph 4.2.9.

Tax groups for dynamic exceptions 4.3.10

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates Define Tax Groups for Dynamic Exceptions



Tax Calculation Maintain Tax Groups

For ISS, you always define the tax rates depending on tax groups for dynamic exceptions. In this Cus-tomizing activity you define the tax groups for dynamic exceptions for ISS.

For details about this Customizing activity, refer to section 4.2.10.


SAP Access





In this activity, you need to map the condition tables for ISS to the tax rate tables for ISS.

Assign all tax groups used in table J_1BTXISS to condition table 601 except country default rates (this is condition table 392).

For details about this activity, check the section 4.2.11. However, keep in mind that you must perform this assignment for ISS manually because the ISS related entries are not included in the BC set.

ISS Tax Types 4.3.12See paragraph 4.2.13.

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Price conditions for ISS 4.3.13The condition-based tax calculation supports prices which are not the real net prices, but may contain PIS, COFINS, ISS due at the municipality of the service provider, ISS due at the municipality of the service execution, or any combination of these.

In order to allow the system to consider correctly which taxes are already included in a price and which not, corresponding price conditions must be maintained. It is possible to either continue using existing price conditions or introduce new ones. Of course, if new price conditions are introduced, all price conditions must be updated.

For details see the paragraph 4.2.14.

Assign G/L accounts for ISS posting 4.3.14 See paragraph 4.2.15.4

ISS tax rates 4.3.15

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates




In this Customizing activity you maintain the tax rates for ISS taxes. Use the tax groups of dynamic exceptions you created before.

For details about this customizing activity, refer to section 4.2.17.

4.3.15.1 Create default tax rates for ISS SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates Maintain Default Tax Rate Values



Overview Tax Rate Tables Maintain Default Tax Rate Values

In this Customizing activity, you define default rates for Brazilian tax calculation. The system uses these default rates if it cannot determine a valid rate in the specific tax rate tables

It is mandatory to define one default value for ISS.

The table below is an example which shows how such entries should look like, but you may enter oth-er values:

Tax Valid From Tax Rate

ISS 01.01.1995 5,00

Map MM tax values to nota fiscal fields 4.3.16In this activity, you define the mapping of ISS tax values to be copied to the nota fiscal fields per ISS tax type.

For detailed information see paragraph 4.2.15.1.

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Map MM tax laws to nota fiscal fields 4.3.17In this activity, you define the mapping of ISS tax laws to be copied to the nota fiscal fields per ISS tax type.


Map SD tax values to nota fiscal fields 4.3.18In this activity, you define the mapping of ISS tax values to be copied to the nota fiscal fields per ISS tax type.


Other ISS (manual) Customizing Settings 4.3.19In the following sections you can see which other customizing settings are required for a correct ISS tax posting. These settings are not required for the tax calculation and are therefore not strictly con-nected to CBT. However, you need to perform such settings in order to get correct tax postings and a correct and complete Nota Fiscal for services.

4.3.19.1 Update vendor and customer master data For a correct ISS tax calculation, the right tax jurisdiction code must be assigned in the customer’s and vendor’s master records.

You do this in transactions XD02 and XK02.

4.3.19.2 ISS Tax Laws SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Define ISS Tax Laws


Tax Manager’s Workplace Entities Tax Laws ISS

In this Customizing activity, you define tax laws for ISS processing. For each tax law, enter a descrip-tion and up to four lines of text that are to be printed on the nota fiscal.

IMPORTANT: If you are required to issue electronic Notas Fiscais for services in the municipality of São Paulo, assign the relevant ISS tax situation to the ISS tax law (see Define Tax Situations) addi-tionally.

4.3.19.3 ISS Tax Situations SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Define ISS Tax Situations


In this Customizing activity, you define ISS tax situations as required for your company and the service you provide.

This is only relevant for companies in the municipality of São Paulo (SP) that issue electronic Notas Fiscais (NF-e) for services. Note that only certain companies and certain services in SP fall under this requirement.

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4.3.19.4 Official Service Types SAP Access

Access Menu SAP Customizing Implementation Guide Logistics - General Tax on Goods Movements Brazil Service Types Define Official Service Types for Incoming Notas Fiscaís AND Define Official Service Types for Outgoing Notas Fiscaís


Here you need to define the official service types for incoming and outgoing Notas Fiscais. Refer to the IMG documentation for details.

4.3.19.5 Generic Service Types SAP Access

Access Menu SAP Customizing Implementation Guide Logistics - General Tax on Goods Movements Brazil Service Types Define Generic Service Types


In this activity, you define generic service types. Refer to the IMG documentation for details.

4.3.19.6 Assign Official Service Types SAP Access

Access Menu SAP Customizing Implementation Guide Logistics - General Tax on Goods Movements Brazil Service Types Assign Official Service Types to Generic Service Types OR Material numbers OR Services


Refer to the IMG documentation for details.

Tax codes for MM and SD 4.3.20

4.3.20.1 Create MM tax codes SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Define FI/MM Tax Codes



Tax Calculation Tax Codes MM

The Customizing of FI/MM tax codes is done in the maintenance view J_1BTAXCODEV.

In transaction J1BTAX, go to the maintenance of tax codes. Create the tax codes you need.

If you need some hints on how to configure the Brazilian tax codes, refer to section 5.2.

4.3.20.2 Create SD tax codes SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Fi-nancial Accounting Global Settings Tax on Sales/Purchases Calcu-lation Settings for Tax Calculation in Brazil Define SD Tax Codes

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Tax Calculation Tax Codes SD

The Customizing of SD tax codes is done in the maintenance view J_1BTAXCODEV. SD tax codes are defined similarly to the MM/FI tax codes.

If you need some hints on how to configure the Brazilian tax codes, refer to section 5.2.

4.4 CBT Customizing settings for WHT taxes with accumulation

Access sequences for withholding taxes 4.4.1

4.4.1.1 Access sequences for application TX SAP Access

Access Menu SAP Customizing Implementation Guide -> Financial Accounting Finan-cial Accounting Global Settings Tax on Sales/Purchases Basic Set-tings Check calculation procedure – Access Sequences




Access sequences, which are used in the condition types for withholding taxes, are delivered in SAP standard (see section 4.2.4).


4.4.1.2 Access sequences for application V SAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution Basic Functions Pricing Pricing Control Define Access Sequences Maintain Access Sequences




Access sequences, which are used in the condition types for withholding taxes, are delivered in SAP standard (see section 4.2.4).


Condition types for withholding taxes 4.4.2

SAP Access



The following classes of condition types are affected by withholding taxes:

• Tax code conditions (activation of withholding tax related to base amount accumulation)

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• Conditions with WHT codes (specific for SD)

The BC Set ZCSC_BR_CBT_CONDITION_TYPES_MM and ZCSC_BR_CBT_CONDITION_TYPES_SD contain all standard condition types for MM/FI and SD which you need for withholding tax calculation and which are delivered by SAP (see section 4.2.5).

All standard delivered condition types for application TX (MM/FI) and V (SD) respectively can be found in the sections 5.1.3 and 5.1.4 of this document.

New account keys must be created to post withholding taxes to separate accounts.

Define account keys for MM/FI and SD 4.4.3New account keys must be created in order to post service taxes to separate accounts and to identify withholding tax amounts in the normal tax calculation.

For details about the account keys see paragraph 4.2.6. There you can also the BC set containing the standard account keys for both FI and SD.

Assign G/L accounts for withholding tax posting 4.4.4See paragraph 4.2.15.4.

Create condition value formulas for withholding taxes 4.4.5According to the note 910063, you need to create two additional condition value formulas, so that withholding taxes with and without accumulation can be calculated in your system.

The most recent coding for the condition value formulas 900 and 901 is available in the note 1006866, which enhances and modifies the formula coding from the notes 910063 and 986453.

Go to transaction VOFM and choose the menu Formulas > Condition Value.

There you need to create the condition value formulas 900 (for withholding taxes without accumula-tion) and 901 (for withholding taxes with accumulation). If you have already used those numbers in your system, create the new formulas with other numbers.

Once you are done, save and activate the formulas.

Update calculation procedures for MM/FI and SD 4.4.6For details about the calculation procedures TAXBRA and RVABRA, refer to the paragraphs 4.2.12.1 and 4.2.12.2 respectively.

There you can have a look at the BC sets containing the standard procedures TAXBRA and RVABRA. Additionally, the calculation procedures can be found in table form in the sections 5.1.5 and 5.1.5.

However, in order to calculate withholding taxes with and without accumulation using the condition-based technique, you need to adapt the delivered tax calculation procedure (FI/MM) and pricing pro-cedure (SD) in order to assign the formulas 900 and 901 to the steps for WHT without accumulation and WHT with accumulation respectively.

The changes to be done to the calculation procedures TAXBRA and RVABRA are described below.

4.4.6.1 Changes in TAXBRA In the tax calculation procedure TAXBRA, you need to assign the condition value formula 900 to the steps which refer to the withholding tax without accumulation and the formula 901 to the steps which refer to the withholding tax with accumulation as shown in the table in section 5.1.5.

This assignment must be done manually. The assignment of the formulas 900 and 901 in the steps of the calculation procedure TAXBRA is marked by a (*) in the table in section 5.1.5. If you implement the calculation procedure TAXBRA by uploading the BC set, then those steps will not have the formulas 900 and 901 assigned. Using the table as reference you can do this assignment very easily.

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4.4.6.2 Changes in RVABRA In the pricing procedure RVABRA you need to assign the condition value formula 900 to the steps which refer to the withholding tax without accumulation and the formula 901 to the steps which refer to the withholding tax with accumulation as shown in the table in section 5.1.5.

The BC set containing the pricing procedure RVABRA reflects the customizing settings required after the law MP135 (notes 664855 and 747607). However, it does not contain the subsequent changes due to the implementation of withholding taxes with accumulation.

The reason for this is that only limited scenarios require that you calculate and post withholding taxes with accumulation on the outgoing side, for example if your company sells one of the services which are subjected to such tax.

First, you must analyze your business processes and find out whether you need to calculate such taxes. If you do so, update the pricing procedure RVABRA as shown in the section 5.1.6.

Define internal condition codes for withholding taxes 4.4.7See paragraph 4.2.7.

Mapping of internal codes to condition types 4.4.8See paragraph 4.2.8.

Assign internal code to tax group 4.4.9See paragraph 4.2.9.


SAP Access





In this activity, you need to map the condition tables for withholding taxes to the tax rate tables for withholding taxes.

Assign all tax groups used in table J_1BTXWITH to condition table 346.

For details about this Customizing activity, refer to the section 4.2.11.

The BC Set ZCSC_BR_CBT_CND_TBS_TAX_RT_TBS contains all standard assignments of condi-tion tables to tax rate tables delivered by SAP.

Tax Types for withholding taxes 4.4.11

Here you can define tax conditions to be used for withholding taxes by setting the withholding tax indi-cator. If you set this indicator, the Nota Fiscal displays the related tax item as a withholding tax.

For details see paragraph 4.2.13.

Check withholding tax countries 4.4.12

SAP Access

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Access Menu SAP Customizing Implementation Guide Financial Accounting Finan-cial Accounting Global Settings Withholding Tax Extended Withholding Tax Basic Settings Check Withholding Tax Countries


In this activity, you check the withholding tax countries.

The withholding tax country is needed for printing the withholding tax form. As the list of country IDs prescribed by law is different from the list in the system, you must define the withholding tax countries again.

The entry for BR needs to be added to this table as follows:

Country Wht Country Description

BR BR Brazil

Define withholding tax type for invoice posting 4.4.13

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Withholding Tax Type De-fine Withholding Tax Type for Invoice Posting


In this activity, you define the withholding tax type for the posting at the time of entering an invoice. This withholding tax type does not have any effect on the payment. For example, it could be required to define a withholding tax type for ISS to be withheld at invoicing.

All calculations for extended withholding tax are made in the first local currency of the respective com-pany code. This means that you have to maintain amounts in the company code country currency.

You define the withholding tax types for invoice posting as follows; as example the ISS withholding tax is considered.

Withholding tax type Name

IW ISS WHT

The withholding tax type IW shall be defined with the following characteristics:

Base amount Modified Tax Amount

Rounding rule W/tax comm round

Post w/tax amount X

Accumulation type 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

Define withholding tax type for payment posting 4.4.14

SAP Access

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Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Withholding Tax Type De-fine Withholding Tax Type for Payment Posting


In this activity, you define the withholding tax type for posting at the time of payment.

All calculations for extended withholding tax are made in the first local currency of the respective com-pany code. This means that you have to maintain amounts in the company code country currency.

4.4.14.1 Tax types without accumulation For posting withholding taxes at time of payment without accumulation, you should customize the fol-lowing tax types:

Withholding Type Description

CP COFINS at Payment

GP General WHT (PIS/COF/CSLL/IR) at Payment

PP PIS at Payment

RP IR at Payment

SP CSLL at Payment

Each tax type shall be defined with the following characteristics:


Origin of base Base in standard FI tables


Cash Discount C/disc pre W/tx

Post w/tax amount X

Accumulation type No accumulation

W/tax base manual X


No cert numbering X

Base amount W/tax code level


Central invoice No central invoice

Minimum Check Minimum Check at item level

4.4.14.2 Tax types with accumulation For posting withholding taxes at time of payment with accumulation, you should customize the follow-ing tax types:

Withholding tax type Name

CA Cofins at Payment - Accumulated

GA General WHT at Payment - Accumulated

PA PIS at Payment - Accumulated

RA IR at Payment - Accumulated

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SA CSLL at Payment - Accumulated

Each withholding tax type shall be defined with the following characteristics:


Origin of base Base Stored in Nota Fiscal


Cash Discount C/disc pre W/tx

Post w/tax amount X

Accumulation type Per Month

Combined accum. X

W/tax base manual X


W/tax for pmnts X

No cert numbering X

Base amount Type level


Central invoice No central invoice

Minimum Check Minimum Check at item level

Define account key for modified tax amount 4.4.15

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Withholding Tax Base Amount

Define Processing Key for Modified Tax Amount


In this activity, you maintain the transaction keys for calculating the tax base amount based on the modified tax amount. At this point, modified means, that the transactions that you specified here are used as tax base.

For withholding taxes, the account keys (processing keys) below are needed:

WHT Type Processing Key

CA WAC

CA WC5

CP WTC

CP WC3

GA WAG

GA WG5

GP WTG

GP WG3

IW ISW

IW WK3

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PA WAP

PA WP5

PP WTP

PP WP3

RA WAI

RA WI5

RP WTI

RP WI3

SA WAS

SA WS5

SP WTS

SP WS3

Assign condition type to withholding tax type 4.4.16

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Withholding Tax Type As-sign Condition Type to Withholding Tax Type


Withholding tax in FI is determined from the combination of withholding tax type and withholding tax code per customer/vendor. In contrast, the withholding tax in SD is determined from the combination of withholding tax condition type and withholding tax code per material. Therefore, it is mandatory to assign the withholding tax types from FI to the withholding tax condition types from SD.

You can use the condition types in SD to represent the withholding tax per customer and per material item. When posting from SD to FI, the system carries out the following conversions:

The withholding tax condition type is converted into the withholding tax type. Material items with different combinations of withholding tax condition type and withholding tax

code are converted to different customer items.

Assign the withholding tax types to condition types as follows:

Withholding tax type Name Condition type

CA Cofins at Payment - Accumulated ICW6

CP COFINS at Payment WCOC

GA General WHT at Payment - Accumulated IGW6

GP General WHT (PIS/COF/CSLL/IR) at Payment WGEC

IW ISS WHT WISC

PA PIS at Payment - Accumulated IPW6

PP PIS at Payment WPIC

RA IR at Payment - Accumulated IRW6

RP IR at Payment WIRC

SA CSLL at Payment - Accumulated ISW6

SP CSLL at Payment WCSC

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Maintain Tax Relevant Classification 4.4.17

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Argentina Maintain Tax Classification


In this table, you need to enter the withholding tax types relevant for Brazil and their description. This setting is needed to create a connection between the withholding taxes calculated in SD and the FI module. This table has originally been developed for Argentina. This is why it is located in the Argenti-na specific customizing. For more details, refer to the note 178824.

The entries you need to make in this table are displayed below:

Tax Relevant Classification Text

CA Cofins at Payment - Accumulated

CP COFINS at Payment

GA General WHT at Payment - Accumulated

GP General WHT (PIS/COF/CSLL/IR) at Payment

IW ISS WHT

PA PIS at Payment - Accumulated

PP PIS at Payment

RA IR at Payment - Accumulated

RP IR at Payment

SA CSLL at Payment - Accumulated

SP CSLL at Payment

Maintain Withholding Tax SD Conditions 4.4.18You need to maintain condition records for the withholding tax SD conditions. Please, proceed as de-scribed below.

Go to the transaction VK11. For each condition type listed below you need to create a condition record with a rate of 100% and the assignment to the corresponding tax type and tax code. Additionally you need to assign a validity period for each new entry.

Condition Tax Rel. Class. W/tax code

WISC IW IW

WCOC CP CP

WPIC PP PP

WCSC SP SP

WIRC RP RP

WGEC GP GP

ICW6 CA CA

IPW6 PA PA

ISW6 SA SA

IRW6 RA RA

IGW6 GA GA

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Define withholding tax codes 4.4.19

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Withholding Tax Codes Define Withholding Tax Codes


Here you define the tax codes for withholding taxes. You are free to create the withholding tax codes choosing your own naming conventions. Below you can find an example on how you could customize your system:

Withholding tax type Wht Tax Code Name

CA CA Cofins at Payment - Accumulated

CP CP COFINS 100% WHT Amount

GA GA General WHT at Payment - Accumulated

GP CP General 100% WHT Amount

IW IW ISS 100% WHT Amount

PA PA PIS at Payment - Accumulated

PP PP PIS 100% WHT Amount

RA RA IR at Payment - Accumulated

RP RP IR 100% WHT Amount

SA SA CSLL at Payment - Accumulated

SP SP CSLL 100% WHT Amount

Each withholding tax code for CBT needs to be defined with the following characteristics:

Percentage subject to tax = 100,00%

Posting indicator = 1 (Standard posting: Bank/vendor/customer line item reduced)

With/tax rate = 100,00%

Define minimum base amount for withholding tax types 4.4.20

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Minimum and Maximum Amounts Define Min/Max Amounts for Withholding Tax Types


In this activity, you specify a minimum base amount for all withholding tax types relevant for tax base accumulation.

Withholding tax type Currency Minimum Base Amount

CA BRL 5.000,00

GA BRL 5.000,00

PA BRL 5.000,00

RA BRL 5.000,00

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SA BRL 5.000,00

Define official collection codes 4.4.21

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Brazil Define Official Col-lection Codes


In this Customizing activity, you define official collection codes for calculating withholding tax in Brazil. Enter these settings manually in your SAP system.

Maintain Wht tax rates and assign official collection codes 4.4.22

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Brazil Maintain Withholding Tax Rates and Assign Official Collection Codes




Here you enter the tax rates for withholding taxes as well as the corresponding official collection code. To do this, you must select the country BR and a tax group. Normally, you enter withholding tax rates based on the combination company code + withholding tax code.

You can enter the withholding tax rates also from the Tax Manager’s Workplace.

Assign withholding tax types to company code 4.4.23

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Company Code Assign Withholding Tax Types to Company Codes


In this activity, you assign all required withholding tax types to your Brazilian company codes.

Activate extended withholding tax 4.4.24

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Company Code Activate Extended With-holding Tax


SAP provides you with two procedures for processing withholding tax: "Standard" and extended with-holding tax.

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"Standard" withholding tax is the procedure that has always been supported by the system. It offers you the following features:

Withholding tax for accounts payable Withholding tax calculation during payment Withholding tax code per vendor line item

Extended withholding tax provides the following additional features: Multiple withholding taxes per customer or vendor line item Withholding tax calculation for partial payments

You need to activate the extended withholding tax functionality for your Brazilian company codes.

Define accounts for withholding tax to be paid over 4.4.25

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Financial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Postings Define Accounts for Withholding Tax to be Paid Over


In this activity, you define and assign the G/L accounts which shall be used for the withholding tax postings.

Assign G/L accounts for withholding taxes to withholding tax types. Assign the same G/L account you have assigned for each normal withholding tax type and code. For example, if 177011 is assigned for withholding tax type CP (COFINS at Payment) / withholding tax code CP (COFINS 100% WHT Amount) assign the same code for withholding tax type CA / Withholding tax code CA.

Update vendor and customer master data 4.4.26Use transactions XK02 and XD02. In the vendor and customer master data you assign all withholding tax types and codes applicable to that business partner. Additionally you need to check the field “liable” or “W/Tax” for each combination wht tax type / wht tax code, so that withholding taxes are calculated.

Map MM tax values to nota fiscal fields 4.4.27For detailed information see paragraph 4.2.15.1.

Map SD tax values to nota fiscal fields 4.4.28For detailed information see paragraph 4.2.16.2

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5 Appendix The section 5.1 shows the access sequences, the conditions types and the tax calculation procedures for both applications SD and MM as they are contained in the SAP standard delivery.

The section 5.2 highlights what you need to do if you switch on the condition-based tax calculation while you are already working with Brazilian taxes using the classical tax calculation.

Finally, the section 0 gives you some hints on further important points that you should keep in mind while working with the condition-based tax calculation for Brazil.

5.1 SAP Standard Tables

Access sequences for application TX (MM/FI) 5.1.1The table below shows the access sequences for the application TX which are relevant to Brazil, since they are used in the BR specific condition types. Access sequences are not customizing objects, and are part of the SAP standard delivery.

Access sequence Description BRB1 Dummy 1 for Brazil BRCC Brazil ICMS Conhecimento BRCI Brazil ICMS Complement BRCO Brazil COFINS BRIB Brazil ICMS-Basis BRIC Brazil ICMS BRID Brazil ICMS SF=ST BRII Brazil ICMS SF=ST for S.T. BRIP Brazil IPI BRIS Brazil ISS BRLC Brazil Tax Law: ICMS BRLO Tax Law: COFINS BRLP Brazil Tax Law: IPI BRLS Tax Law: PIS BRPI Brazil PIS BRS1 Brazil ISS at service provider BRS2 Brazil ISS wh. serv. provider BRST Brazil Sub. Trib. BRTF Brazil: Tax-Exempt BRWT Brazil WHT MWST Tax Classification

Access sequences for application V (SD) 5.1.2The table below shows the access sequences for the application V which are relevant to Brazil be-cause they are used in the BR specific condition types. Access sequences are not customizing ob-jects, and are part of the SAP standard delivery.

Access sequence Description BRCC Brazil ICMS Conhecimento BRCO Brazil COFINS BRPI Brazil PIS BRWT Brazil WHT DIBR Brazil: Taxes Due DICM BR: ICMS Due

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Access sequence Description DIPI BR: IPI Due DISI BR: ICMS over IPI Due IBRR Brazil: 100% offset IBRX Brazil: Ext. tax determination ICBS BR: ICMS Tax Base Values ICCB BR: ICMS Offsetting Entry ICLW BR: ICMS Tax Laws ICVA BR: ICMS Tax Rates ICXC BR: Customer ICMS Exempt IDZF BR: ICMS Discount Zona Franca IPBS BR: IPI Tax Base Values IPLW BR: IPI Tax Laws IPOB BR: ICMS Discount Zona Franca IPVA BR: IPI Tax Rates IPXC BR: Customer IPI Exempt ISS1 Brazil ISS at service provider ISS2 Brazil ISS wh. serv. provider ISTC BR: ICMS Rates for Subtrib ISTI BR: ICMS Rate for S.T. ISTV BR: Subtrib Surcharges ISVA BR: ISS Tax Rates IZOF Zona Franca J1AG Arg.: Tax relev. class.

Condition types for application TX (MM/FI) 5.1.3Condition Type Description Access Sequence B100 Convenio 100 BRIC BASB Base Amount BASI Base Amount BCI1 ICMS Complement Base BRCI BCI2 ICMS Complem. Exempt BRCI BCI3 ICMS Complement Rate BRB1 BCO1 COFINS Rate BRCO BCO2 COFINS Base BRCO BCO3 COFINS Rate 4 dec. BRCO BCO4 COFINS Pauta Amt. 4d BRCO BCOP COFINS Pauta Amount BRCO BDIS Discounting BFI1 ICMS Conhe Base BRCC BFI2 ICMS Conhe Rate BRIC BFRE Freight BI00 Dummy Non-Statistic BRB1 BIC0 ICMS Rate BRIC BIC1 ICMS Base Reduction BRIB BIC2 ICMS Other Base Flag BRIC BIC3 ICMS Rate * Base BRIB BIC5 ICMS Rate * 10^n BRIC BIC6 ICMS Base BRB1

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Condition Type Description Access Sequence BIC7 ICMS Exclude Base BRB1 BIC9 ICMS Ind.Calc.Base BRIB BICA ICMS Ind.Calc.Base BRIC BICB ICMS Ref BIC1 BRIB BICC ICMS Conv.100 Flag BRIC BICD ICMS Ex.Base Con. BRB1 BICE ICMS Con.Calc.Base BRIB BICF ICMS Other Base Flag BRIC BICG ICMS Rate SF=ST BRID BICH ICMS Rate SF=ST BRID BICS ICMS Rate for ST BRII BICX ICMS Exempt MWST BICY ICMS Exempt Ref BICX MWST BIF0 ICMS on Freight BRIC BIFH ICMS Fr Rate SF=ST BRID BIP0 IPI Rate BRIP BIP1 IPI Base Reduction BRIP BIP2 IPI Other Base Flag BRIP BIP3 IPI Rate * Base BRIP BIP4 IPI Rate Ref BIP0 BRIP BIP5 IPI Rate * 10^n BRIP BIP7 IPI Exclude Base In BRB1 BIP9 IPI Calculation Base BRIP BIPA IPI Rate Ref BIP0 BRIP BIPB IPI Ref. Base BRIP BIPC IPI Other Base Flag BRIP BIPD IPI Exclude Base Co BRB1 BIPE Calculate Excl./Oth. BRB1 BIPP IPI Pauta Amount BRIP BIPS IPI -Split Vendor MWST BIPT IPI -Split Vendor PO MWST BIPU IPI -Split Vendor IV MWST BIPX IPI Exempt MWST BIPY IPI Exempt Ref BIPX MWST BIS0 ISS Rate BRIS BIS1 ISS Rate at Prov. BRS1 BIS2 ISS Base at Prov. BRS1 BIS3 ISS Law at Prov. BRS1 BIS5 ISS Taxloc at Prov. BRS1 BIS6 ISS WHT at Prov. BRS1 BIS7 ISS Min WHT at Prov. BRS1 BISA ISS Rate at Serv. BRS2 BISB ISS Base at Serv. BRS2 BISC ISS Law at Serv. BRS2 BISE ISS Taxloc.at Serv. BRS2 BISF ISS WHT at Serv. BRS2 BISG ISS Min WHT at Serv. BRS2

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Condition Type Description Access Sequence BIZF Zona Franca BRTF BLCO Tax Laws for COFINS BRLO BLIC Tax Laws for ICMS BRLC BLIP Tax Laws for IPI BRLP BLPI Tax Laws for PIS BRLS BPI1 PIS Rate BRPI BPI2 PIS Base BRPI BPI3 PIS Rate 4 decimals BRPI BPI4 PIS Pauta Amt. 4 dec BRPI BPIP PIS Pauta Amount BRPI BSF0 Subtrib. Rate BRST BSF1 ICMS Fr Rate SF=ST BRID BST0 Subtrib. Rate BRST BST1 Subtrib. Surch. Type BRST BST2 Subtrib. Minprice BRST BST3 Subtrib. Fix Price BRST BST5 Subtrib Icms Rate BRST BST6 Subtrib. Reduction 1 BRST BST7 Subtrib. Reduction 2 BRST BST8 Subtrib. Base Reduct BRST BST9 Subtrib. Calc.Base BRST BSTA Subtrib. Surch. Type BRST BSTB Subtrib. Surch. Type BRST BSTF Subtrib.MinPr.Factor BRST BSTI S.T. MinPrBef.Surch. BRST BSUB S.T. Base Modif. BW01 WHT Coll.Code Gen. BRWT BW02 WHT Rate Gen. BRWT BW11 WHT Coll.Code PIS BRWT BW12 WHT Rate PIS BRWT BW21 WHT Coll.Code COFINS BRWT BW22 WHT Rate COFINS BRWT BW31 WHT Coll.Code CSLL BRWT BW32 WHT Rate CSLL BRWT BW41 WHT Coll.Code IR BRWT BW42 WHT Rate IR BRWT BW51 BR WHT Base Amount BRWT BX01 BR Tax Calculation BX10 BR ICMS Normal Base BX11 BR ICMS Excluded Bse BX12 BR ICMS Other Base BX13 BR ICMS Amount BX14 BR ICMS Freight Base BX15 BRICMS Freight Amnt. BX16 BR ICMS Rate BX17 BR ICMS Conhe Base BX18 BR ICMS Conhe O. Bas

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Condition Type Description Access Sequence BX19 BR ICMS Conhe Amount BX1E BR ICMS Conhe E. Bas BX20 BR IPI Normal Base BX21 BR IPI Excluded Base BX22 BR IPI Other Base BX23 BR IPI Amount BX24 BR IPI Offset Base BX25 BR IPI Offset Amount BX30 BR ICMS Comp. Base BX31 BR ICMS Comp. Amnt. BX32 BR ICMS Comp. Rate BX40 BR SubTrib Base BX41 BR SubTrib Amount BX42 BR SubTrib Fr. Base BX43 BR SubTrib Fr. Amnt BX44 BRSubTrib NF Rate BX45 BRSubTrib NF Basred1 BX46 BRSubTrib NF Rate BX47 BR SubTrib Conh Base BX49 BR SubTrib Conh Amnt BX4E BR SubTrib Conh EBas BX50 BR ISS Base BX51 BR ISS Amount BX60 BR ISS Base Prov BX61 BR ISS ExBase Prov BX62 BR ISS Amount Prov BX63 BR ISS WTAmount Prov BX64 BR ISS WT Base Prov BX65 BR ISS WTExBase Prov BX6A BR ISS Base Serv BX6B BR ISS ExBase Serv BX6C BR ISS Amount Serv BX6D BR ISS WTAmount Serv BX6E BR ISS WT Base Serv BX6F BR ISS WTExBase Serv BX6O BR ISS Offset TxIncl BX70 BR COFINS Base BX71 BR COFINS Excl.Base BX72 BR COFINS Amount BX73 BR COFINS Amount Res BX7O BR COFINS Off.TxIncl BX7P BR COFINS Pauta Amt. BX7Q BR COFINS Pauta Amt. BX7R BR COFINS Res. Base BX80 BR PIS Base BX81 BR PIS Excl. Base BX82 BR PIS Amount

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Condition Type Description Access Sequence BX83 BR PIS Amount Res. BX8O BR PIS Off.TxIncl BX8P BR PIS Pauta Amount BX8Q BR PIS Pauta Amount BX8R BR PIS Res. Base BXPA BR IPI Pauta Amount BXPO BR Caller = PO? BXWA BR WHT Base Amount BRB1 BXWT BR WHT Base Amount BRB1 BXZF BR ICMS Zona Franca CIC1 Conhecimento ICMS MWST CIC2 Conhe. ICMS Non.Ded. MWST CIC3 Conhe. ICMS from SD MWST CST1 Conhe. SubTrib MWST CST2 Conhe. SubTr N.Deduc MWST CST3 Conhe. SubTrib SD MWST IC1C ICMS Ind.Clearing MWST IC1O ICMS Ind.Clear.Off. MWST ICD0 ICMS DIFAL Pri MWST ICD1 ICMS DIFAL Asset MWST ICD2 ICMS DIFAL Asset Off MWST ICD3 ICMS DIFAL/CIAP/Asse MWST ICDF ICMS Deductibl-DIFAL MWST ICM0 ICMS NF Zero Line MWST ICM1 ICMS Industr. In MWST ICM2 ICMS Consumption In MWST ICM3 ICMS from SD Out MWST ICM4 ICMS Consum Outgoing MWST ICMF ICMS S.T. fr. Offset MWST ICML ICMS DIFAL Offs. Out MWST ICMM ICMS DIFAL Out MWST ICMO ICMS Ind.Clear.Off. MWST ICMP ICMS DIFAL Inv. Off. MWST ICMT ICMS DIFAL Investmen MWST ICMV ICMS DIFAL Con/Asset MWST ICMX ICMS Active MWST ICMY ICMS Active MWST ICMZ ICMS Active MWST ICN3 COFINS Normal Tax MWST ICO1 ICMS Compl. Transfer MWST ICO2 ICMS Compl. Tra Offs MWST ICO3 ICMS Compl. NVV MWST ICO4 ICMS Compl. NVV off MWST ICOA COFINS Normal PO/GR MWST ICOF COFINS Deductible MWST ICON COFINS Normal Tax MWST ICOO COFINS OffsetTaxIncl MWST

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Condition Type Description Access Sequence ICOP ICMS Complement MWST ICOQ COFINS WHT Accum. MWST ICOR COFINS Diff Resale MWST ICOS COFINS Normal PO/GR MWST ICOT STO-ICMS Complement MWST ICOU Cofins IV Non Deduct MWST ICOV Cofins Offset MWST ICOW COFINS WHT MWST ICOX ICMS complement 100 MWST ICOZ COFINS WHT Offset MWST ICS1 Sub.Tributaria In MWST ICS2 S.T. Consumption In MWST ICS3 Sub.Tributaria Out MWST ICS4 S.T. Indus Not in NF MWST ICS5 S.T. Cons. Not in NF MWST ICS6 S.T. Cons.Offset MWST ICS7 S.T. Cons. Not in NF MWST ICS8 Transf S.T Retail BO MWST ICS9 S.T. Consumption In MWST ICSQ CSLL WHT - Accum. MWST ICSW CSLL WHT MWST ICSZ CSLL WHT Offset MWST ICW3 COFINS WHT SD MWST ICW5 COFINS WHT SD-Accum. MWST ICZ3 COFINS WHT Offset SD MWST ICZF ICMS Reverse (Z.F.) BRTF IFR1 ICMS on freight In MWST IFR3 ICMS on freight Out MWST IFS1 ICMS ST freight In MWST IFS3 ICMS ST freight Out MWST IGEQ General WHT-Accum. MWST IGEW General WHT MWST IGEZ General WHT Offset MWST IGW3 General WHT SD MWST IGW5 General WHT SD-Accum MWST IGZ3 Genera WHT Offset SD MWST IIRQ IR WHT-Accum. MWST IIRW IR WHT MWST IIRZ IR WHT Offset MWST INSS INSS Incoming MWST INSX INSS offset (100-) MWST IP10 IPI Null Values NF MWST IP11 IPI Industr. In MWST IP12 IPI Consumption In MWST IP13 IPI Consumption In MWST IP1C IPI Ind.Clearing MWST IP1O IPI Ind.Clear.Off. MWST

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Condition Type Description Access Sequence IPI0 IPI NF Zero Line MWST IPI1 IPI Industr. In MWST IPI2 IPI Consumption In MWST IPI3 IPI from SD Out MWST IPI4 IPI -Split Vendor MWST IPI5 IPI Indus. non-dedu MWST IPI6 IPI Consu. REF IPI2 MWST IPIA IPI Industr. Out MWST IPIB IPI Consum Out MWST IPIO IPI Null Values NF MWST IPIS PIS deductible MWST IPIX IPI Active MWST IPIY IPI Active MWST IPIZ IPI Active MWST IPS3 PIS Normal Tax MWST IPSA PIS Normal PO/GR MWST IPSN PIS NVV MWST IPSO PIS Offset Tax Incl. MWST IPSQ PIS WHT - Accum. MWST IPSS PIS Nrmal PO/GR MWST IPSU PIS Normal IV NVV MWST IPSV Offset IPSS / IPSU MWST IPSW PIS WHT MWST IPSZ PIS WHT Offset MWST IPW3 PIS WHT SD MWST IPW5 PIS WHT SD - Accum. MWST IPZ3 PIS WHT SD Offset MWST IRD1 ICMS Reimbursement MWST IRD2 ICMS Reimbur. Offset MWST IRD3 SUBT Reimbursement MWST IRD4 SUBT Reimbur. Offset MWST IRD5 ICMS Reim.Offset NVV MWST IRD6 SUBT Reim.Offset NVV MWST IRW3 IR WHT SD MWST IRW5 IR WHT SD-Accum. MWST IRZ3 IR WHT SD Offset MWST ISA3 ISS at Provider SD MWST ISB3 ISS WHT at Prov. SD MWST ISE3 ISS at Serv.Loc. SD MWST ISF3 ISS WHT Srv.Loc. SD MWST ISS2 ISS from MM In MWST ISS3 ISS from SD Out MWST ISSA ISS at Provider MWST ISSB ISS WHT at Provider MWST ISSE ISS at Service Loc MWST ISSF ISS WHT at Serv. Loc MWST ISSG ISS Offset MWST

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Condition Type Description Access Sequence ISSO ISS from SD Out MWST ISW3 CSLL WHT SD MWST ISW5 CSLL WHT SD - Accum. MWST ISZ3 CSLL WHT SD Offset MWST IT01 ICMS Industr. In MWST IT02 ICMS Industr. In MWST IT03 ICMS Industr. In MWST

Condition types for application V (SD) 5.1.4Condition Type Description Access Sequence BCO1 COFINS Rate BRCO BCO2 COFINS Base BRCO BCO3 COFINS Rate 4 Dec. BRCO BCO4 COFINS Pauta Amt4Dec BRCO BCOP COFINS Pauta Amount BRCO BCOZ BR COFINS WHT Offset IBRX BCSZ BR CSLL WHT Offset IBRX BGEZ BR GENERAL WHT Offst IBRX BI00 Dummy Non-Statistic IBRX BIRZ BR IR WHT Offset IBRX BPI1 PIS Rate BRPI BPI2 PIS Base BRPI BPI3 PIS Rate 4Dec. BRPI BPI4 PIS Pauta Amt 4 Dec. BRPI BPIP PIS Pauta Amount BRPI BPSZ BR PIS WHT Offset IBRX BW01 WHTColl.Code Gen. BRWT BW02 WHT Rate Gen. BRWT BW11 WHT Coll.Code PIS BRWT BW12 WHT Rate PIS BRWT BW21 WHT Coll.Code COFINS BRWT BW22 WHT Rate COFINS BRWT BW31 WHT Coll.Code CSLL BRWT BW32 WHT Rate CSLL BRWT BW41 WHT Coll.Code IR BRWT BW42 WHT Rate IR BRWT BW51 WHT Acc. Flag BRWT BX10 BR ICMS Normal Base BX11 BR ICMS Excluded Bse BX12 BR ICMS Other Base BX13 BR ICMS Amount IBRX BX14 BR ICMS Freight Base BX15 BRICMS Freight Amnt. IBRX

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Condition Type Description Access Sequence BX16 BR ICMS Rate BX17 BR ICMS Conhe Base BX19 BR ICMS Conhe Amount IBRX BX1E BR ICMS Conhe E. Bas BX20 BR IPI Normal Base BX21 BR IPI Excluded Base BX22 BR IPI Other Base BX23 BR IPI Amount IBRX BX24 BR IPI Offset Base BX25 BR IPI Offset Amount BX40 BR SubTrib Base BX41 BR SubTrib Amount IBRX BX42 BR SubTrib Fr. Base BX43 BR SubTrib Fr. Amnt IBRX BX44 BRSubTrib NF Rate BX45 BR SubTrib Basered1 BX46 BR SubTrib Basered2 BX47 BR SubTrib Conh Base BX49 BR SubTri Conhe Amnt BX4E BR SubTrib Conh EBas BX50 BR ISS Base BX51 BR ISS Amount IBRX BX60 BR ISS Base Prov BX61 BR ISS ExBase Prov BX62 BR ISS Amount Prov IBRX BX63 BR ISS WTAmount Prov IBRX BX64 BR ISS WT Base Prov BX65 BR ISS WT ExBas Prov BX6A BR ISS Base Serv BX6B BR ISS ExBase Serv BX6C BR ISS Amount Serv IBRX BX6D BR ISS WTAmount Serv IBRX BX6E BR ISS WT Base Serv BX6F BR ISS WT ExBas Serv BX6O BR ISS offset IBRR BX70 BR COFINS Base BX71 BR COFINS Excl. Base BX72 BR COFINS Amount IBRX BX7O BR COFINS offset IBRR BX7P BR COFINS Pauta Amt. BX7Q BR COFINS Pauta Amt. BX80 BR PIS Base BX81 BR PIS Excl. Base

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Condition Type Description Access Sequence BX82 BR PIS Amount IBRX BX8O BR PIS offset IBRR BX8P BR PIS Pauta Amt. BX8Q BR PIS Pauta Amt. BXPA BR IPI Pauta Amount BXWA BR WHT Acc Base Amt DIBR BXWT BR WHT Base Amount BXZF BR ICMS Zona Franca CIC3 Conhecimento ICMS CICO Conhe. ICMS offset IBRR CONH Conhecimento CST3 Conhe. SubTrib MWST CSTO Conhe SubTrib offset IBRR DCOF COFINS Due DIBR DGTX General Taxability IBRX DICF Devido ICMS Freight DIBR DICM ICMS Due DIBR DIFF Rounding Off DIPI BR: IPI Due DIBR DISI ICMS s/IPI Due DIBR DISS ISS Due DIBR DIZF Zona Franca IZOF DPIS PIS Due DIBR DSUB Sub Trib Due DIBR DSUF SubTribFreight Due DIBR DWHT WHT Due DIBR I100 BR: ICMS Convenio100 ICVA IBRX Brazil tax calc. IBRX IC0X BR: ICMS 0 Excempt DIBR ICBS ICMS Tax Base ICBS ICF1 ICMS Conhe Base BRCC ICF2 ICMS Conhe Rate BRCC ICFR BR: ICMS on Freight ICVA ICLW BR: ICMS Law ICLW ICM3 ICMS from SD ICMI Price+Tax (for NF) ICMO ICMS offset IBRR ICN3 COFINS from SD MWST ICO2 COFINS Offset SD IBRR ICOB BR: ICMS Other Base ICVA ICOQ COFINS WHT Accum. IBRX ICOW COFINS WHT IBRX ICS3 Sub.Trib. from SD

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Condition Type Description Access Sequence ICSO ISS offset IBRR ICSQ CSLL WHT - Accum. IBRX ICSW CSLL WHT IBRX ICVA ICMS Tax Rate ICVA ICW3 COFINS WHT SD MWST ICW5 COFINS WHT SD - Acc MWST ICW6 COFINS WHT code Acc J1AG ICXC BR Cust ICMS Exempt ICXC ICZ3 COFINS WHT SD Offset IBRR ICZF ADMS Disc. Zona Fr. IZOF IDZF BR: ICMS Discount ZF IDZF IFR3 ICMS on freight SD IFS3 ICMS ST freight SD IGEQ General WHT - Accum IBRX IGEW General WHT IBRX IGW3 General WHT SD MWST IGW5 General WHT SD - Acc MWST IGW6 General WHT code Acc J1AG IGZ3 Genera WHT SD Offset IBRR IIRQ IR WHT - Accum. IBRX IIRW IR WHT IBRX IP0X BR: IPI 0 Excempt DIBR IPBS IPI Tax Base IPBS IPI3 IPI from SD IPIO IPI offset IBRR IPIP BR: IPI Pauta IPVA IPLW BR: IPI Law IPLW IPOB BR: IPI Other Base IPVA IPS2 PIS Offset SD IBRR IPS3 PIS Normal Tax MWST IPSQ PIS WHT - Accum. IBRX IPSW PIS WHT IBRX IPVA IPI Tax Rate IPVA IPW3 PIS WHT SD MWST IPW5 PIS WHT SD - Acc MWST IPW6 PIS WHT code Acc J1AG IPXC BR Cust IPI Exempt IPXC IPZ3 PIS WHT SD Offset IBRR IRW3 IR WHT SD MWST IRW5 IR WHT SD - Acc MWST IRW6 IR WHT code Acc J1AG IRZ3 IR WHT SD Offset IBRR ISA3 ISS at Provider SD MWST

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Condition Type Description Access Sequence ISB3 ISS WHT at Prov. SD MWST ISE3 ISS at Serv.Loc. SD MWST ISF3 ISS WHT Srv.Loc. SD MWST ISIC ICMS Rate SF=ST ISTC ISS3 ISS from SD ISSA ISS at Provider MWST ISSB ISS WHT at Provider MWST ISSC ISS WHT Off. Prov. MWST ISSD ISS WHT Again Prov. MWST ISSE ISS at Serv.Loc. MWST ISSF ISS WHT at Serv.Loc. MWST ISSG ISS WHT Off. SrvLoc MWST ISSH ISS WHT Again SrvLoc MWST IST2 BR: Sub.Trib Base 2 ISTV ISTB Sub. Trib Base Value ISTV ISTC Subtrib. Base Reduct ISTV ISTD ICMS Rate for ST ISTI ISTF BR: Sub.Trib FixPric ISTV ISTI S.T. MinPrBef.Surch. ISTV ISTM BR: Sub.Trib MinPric ISTV ISTN Subtrib.MinPr.Factor ISTV ISTS Subtrib Surcharge ISTV ISTT BR: Sub.Trib SurType ISTV ISVA BR: ISS Amount ISVA ISVB ISS Rate at Prov. ISS1 ISVC ISS Base at Prov. ISS1 ISVD ISS Law at Prov. ISS1 ISVE IPI from SD ISS1 ISVF ISS TaxLoc at Prov. ISS1 ISVG ISS WHT at Prov. ISS1 ISVH ISS Min WHT at Prov. ISS1 ISVN ISS Rate at Serv. ISS2 ISVO ISS Base at Serv. ISS2 ISVP ISS Law at Serv. ISS2 ISVQ ISS Ins. Cal at Serv ISS2 ISVR ISS TaxLoc at Serv. ISS2 ISVS ISS WHT at Serv. ISS2 ISVT ISS Min WHT at Serv. ISS2 ISW3 CSSL WHT SD MWST ISW5 CSLL WHT SD - Acc MWST ISW6 CSLL WHT code Acc J1AG ISZ3 CSLL WHT SD Offset IBRR WCOC BR COFINS WHT Code J1AG

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Condition Type Description Access Sequence WCSC BR CSLL WHT Code J1AG WGEC BR General WHT Code J1AG WIRC BR IR WHT Code J1AG WISC BR ISS WHT Code J1AG WPIC BR PIS WHT Code J1AG

Tax calculation procedure TAXBRA 5.1.5The table below shows the calculation procedure TAXBRA, which is the standard tax calculation pro-cedure for condition-based taxes for the usage A and the application TX.

The calculation procedure TAXBRA is delivered by SAP. The corresponding BC set is ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM.

Details about the structure of the tax calculation procedure TAXBRA can be found in the section 4.2.12.1.

In order to make the identification of rows relating to special functionalities easier, they are highlighted as follows:

Blue = Conhecimento de Transporte Eletrônico / ICMS in freight invoices; Red = ISS / Service Tax; Purple = PIS/COFINS with 4 decimal places. Green = Withholding Taxes; the entries marked by (*) are displayed in the table, however they

are not included in the BC set. These refer to condition value formulas, which are required for withholding taxes with and without accumulation (note 916003). The condition value formulas must be defined and assigned to the respective steps in the calculation procedure by the cus-tomer.

Step Description Cond. Type

From Step

To Step

Sub Tot.

Stat. Alt. Calc. Type

Alt. CBV

Acc. Key

1 First line: zero 0 0 X 0 0 10 Base Amount BASB 0 0 1 0 0 11 Tax-relev. conditions: 1 0 X 0 0 12 Discounting BDIS 0 0 X 320 160 13 Freight BFRE 0 0 X 320 160 14 S.T. Base Modif. BSUB 0 0 X 320 160 15 Calling Application: 1 0 X 0 0 16 Determine calling applica-

tion: 1 0 X 0 0

17 BR Caller = PO? BXPO 0 0 X 0 160 19 Read tax data: 1 0 X 0 0 20 ICMS 1 0 X 0 0 21 ICMS Rate BIC0 0 0 X 0 160 22 ICMS Base Reduction BIC1 0 0 X 0 160 23 ICMS Other Base Flag BIC2 0 0 X 0 160 24 ICMS Exempt BICX 0 0 X 0 160 25 Convenio 100 B100 0 0 X 0 160 26 Tax Laws for ICMS BLIC 0 0 X 0 160 27 ICMS Rate SF=ST BICH 0 0 X 0 160 28 ICMS Rate for ST BICS 0 0 X 0 160

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

30 ICMS Complement 1 0 X 0 0 31 ICMS Complement Base BCI1 0 0 X 0 160 32 ICMS Complem. Exempt BCI2 0 0 X 0 160 40 ICMS on Freight 1 0 X 0 0 41 ICMS on Freight BIF0 0 0 X 0 160 42 ICMS Fr Rate SF=ST BIFH 0 0 X 0 160 43 ICMS Conhe Base BFI1 0 0 X 0 160 44 ICMS Conhe Rate BFI2 0 0 X 0 160 50 IPI 1 0 X 0 0 51 IPI Rate BIP0 0 0 X 0 160 52 IPI Base Reduction BIP1 0 0 X 0 160 53 IPI Other Base Flag BIP2 0 0 X 0 160 54 IPI Pauta Amount BIPP 0 0 X 0 0 55 IPI Exempt BIPX 0 0 X 0 160 56 Tax Laws for IPI BLIP 0 0 X 0 160 60 ISS 1 0 X 0 0 61 ISS Rate BIS0 0 0 X 0 160 70 Sub.Trib. 1 0 X 0 0 71 Subtrib. Rate BST0 0 0 X 0 160 72 Subtrib. Surch. Type BST1 0 0 X 0 160 73 Subtrib. Minprice BST2 0 0 X 0 0 74 Subtrib. Fix Price BST3 0 0 X 0 0 75 Subtrib. Reduction 1 BST6 0 0 X 0 160 76 Subtrib. Reduction 2 BST7 0 0 X 0 160 77 Subtrib. Base Reduct BST8 0 0 X 0 160 78 Subtrib.MinPr.Factor BSTF 0 0 X 0 160 79 S.T. MinPrBef.Surch. BSTI 0 0 X 0 160 80 ISS New 2004: 1 0 X 0 0 81 ISS Rate at Prov. BIS1 0 0 X 0 160 82 ISS Base at Prov. BIS2 0 0 X 0 160 83 ISS Law at Prov. BIS3 0 0 X 0 160 85 ISS Taxloc at Prov. BIS5 0 0 X 0 160 86 ISS WHT at Prov. BIS6 0 0 X 0 160 87 ISS Min WHT at Prov. BIS7 0 0 X 0 160 90 **** Zona Franca **** 1 0 X 0 0 91 ISS Rate at Serv. BISA 0 0 X 0 160 92 ISS Base at Serv. BISB 0 0 X 0 160 93 ISS Law at Serv. BISC 0 0 X 0 160 95 ISS Taxloc.at Serv. BISE 0 0 X 0 160 96 ISS WHT at Serv. BISF 0 0 X 0 160 97 ISS Min WHT at Serv. BISG 0 0 X 0 160

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

110 PIS, COFINS 1 0 X 0 0 111 COFINS Rate BCO1 0 0 X 342 160 112 COFINS Rate 4 dec. BCO3 0 0 X 343 160 113 COFINS Pauta Amount BCOP 0 0 X 343 0 114 COFINS Pauta Amt. 4d BCO4 0 0 X 343 0 115 COFINS Base BCO2 0 0 X 0 160 116 Tax Laws for COFINS BLCO 0 0 X 0 160 121 PIS Rate BPI1 0 0 X 342 160 122 PIS Rate 4 decimals BPI3 0 0 X 343 160 123 PIS Pauta Amount BPIP 0 0 X 343 0 124 PIS Pauta Amt. 4 dec BPI4 0 0 X 343 0 125 PIS Base BPI2 0 0 X 0 160 126 Tax Laws for PIS BLPI 0 0 X 0 160 190 Call Tax Calculation: 1 0 X 0 0 191 BR Tax Calculation BX01 10 0 X 320 0 200 Tax Results: 1 0 X 0 0 210 BR ICMS Normal Base BX10 0 0 X 320 0 215 BR ICMS Excluded Bse BX11 0 0 X 320 0 220 BR ICMS Other Base BX12 0 0 X 320 0 221 BR ICMS Conhe Base BX17 0 0 X 320 0 222 BR ICMS Conhe O. Bas BX18 0 0 X 320 0 223 BR ICMS Conhe E. Bas BX1E 0 0 X 320 0 225 BR ICMS Amount BX13 0 0 X 320 0 226 BR ICMS Zona Franca BXZF 0 0 X 320 0 227 BR ICMS Rate BX16 0 0 X 320 0 228 BR ICMS Conhe Amount BX19 0 0 X 320 0 230 BR IPI Normal Base BX20 0 0 X 320 0 235 BR IPI Excluded Base BX21 0 0 X 320 0 240 BR IPI Other Base BX22 0 0 X 320 0 245 BR IPI Amount BX23 0 0 X 320 0 246 BR IPI Offset Base BX24 0 0 X 320 0 247 BR IPI Offset Amount BX25 0 0 X 320 0 248 BR IPI Pauta Amount BXPA 0 0 X 320 0 250 BR ICMS Comp. Base BX30 0 0 X 320 0 255 BR ICMS Comp. Amnt. BX31 0 0 X 320 0 256 BR ICMS Comp. Rate BX32 0 0 X 320 0 260 BR SubTrib Base BX40 0 0 X 320 0 265 BR SubTrib Amount BX41 0 0 X 320 0 270 BR SubTrib Fr. Base BX42 0 0 X 320 0 275 BR SubTrib Fr. Amnt BX43 0 0 X 320 0 277 BRSubTrib NF Rate BX44 0 0 X 320 0

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

280 BR ICMS Freight Base BX14 0 0 X 320 0 285 BRICMS Freight Amnt. BX15 0 0 X 320 0 286 BR SubTrib Conh EBas BX4E 0 0 X 320 0 287 BR SubTrib Conh Base BX47 0 0 X 320 0 289 BR SubTrib Conh Amnt BX49 0 0 X 320 0 290 BR ISS Base BX50 0 0 X 320 0 295 BR ISS Amount BX51 0 0 X 320 0 300 BR ISS Base Prov BX60 0 0 X 320 0 301 BR ISS ExBase Prov BX61 0 0 X 320 0 305 BR ISS Amount Prov BX62 0 0 X 320 0 310 BR ISS WTAmount Prov BX63 0 0 X 320 0 311 BR ISS WT Base Prov BX64 0 0 X 320 0 312 BR ISS WTExBase Prov BX65 0 0 X 320 0 315 BR ISS Base Serv BX6A 0 0 X 320 0 316 BR ISS ExBase Serv BX6B 0 0 X 320 0 320 BR ISS Amount Serv BX6C 0 0 X 320 0 325 BR ISS WTAmount Serv BX6D 0 0 X 320 0 330 BR ISS WT Base Serv BX6E 0 0 X 320 0 335 BR ISS WTExBase Serv BX6F 0 0 X 320 0 339 BR ISS Offset TxIncl BX6O 0 0 X 320 0 350 BR COFINS Base BX70 0 0 X 320 0 351 BR COFINS Excl.Base BX71 0 0 X 320 0 355 BR COFINS Amount BX72 0 0 X 320 0 360 BR COFINS Off.TxIncl BX7O 0 0 X 320 0 361 BR COFINS Amount Res BX73 0 0 X 320 0 362 BR COFINS Res. Base BX7R 0 0 X 320 0 365 BR COFINS Pauta Amt. BX7P 0 0 X 320 0 366 BR COFINS Pauta Amt. BX7Q 0 0 X 320 0 370 BR PIS Base BX80 0 0 X 320 0 371 BR PIS Excl. Base BX81 0 0 X 320 0 375 BR PIS Amount BX82 0 0 X 320 0 380 BR PIS Off.TxIncl BX8O 0 0 X 320 0 381 BR PIS Amount Res. BX83 0 0 X 320 0 382 BR PIS Res. Base BX8R 0 0 X 320 0 385 BR PIS Pauta Amount BX8P 0 0 X 320 0 386 BR PIS Pauta Amount BX8Q 0 0 X 320 0 400 Tax Code Conditions: 1 0 X 0 0 405 IPI NF Zero Line IPI0 245 0 X 0 0 VST 406 ICMS NF Zero Line ICM0 225 0 X 0 0 VST 410 IPI Industr. In IPI1 245 0 1 0 0 IPI 412 IPI -Split Vendor IPI4 247 0 1 0 0 NVV

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

415 ICMS Industr. In ICM1 225 0 1 0 0 ICM 416 ICMS DIFAL Con/Asset ICMV 225 0 1 0 0 ICD 417 ICMS DIFAL Investmen ICMT 225 0 1 0 0 ICD 418 ICMS DIFAL Inv. Off. ICMP 417 0 1 0 164 ICC 419 Conhecimento ICMS CIC1 228 0 1 0 0 ICM 420 Sub.Tributaria In ICS1 265 0 0 0 ICS 425 ICMS S.T. fr. Offset ICMF 225 0 1 0 164 IC1 430 ICMS on freight In IFR1 285 0 1 0 0 ICM 435 ICMS ST freight In IFS1 275 0 0 0 ICS 436 Conhe. SubTrib CST1 289 0 0 0 ICS 440 IPI Ind.Clearing IP1C 245 0 1 0 0 IPC 445 IPI Ind.Clear.Off. IP1O 245 0 1 0 164 IPC 450 ICMS Ind.Clearing IC1C 225 0 1 0 0 ICC 455 ICMS Ind.Clear.Off. IC1O 225 0 1 0 164 ICC 480 ICMS Compl. Transfer ICO1 255 0 1 0 0 ICP 481 ICMS Compl. Tra Offs ICO2 480 0 1 0 164 ICX 482 ICMS Compl. NVV ICO3 255 0 1 0 0 NVV 483 ICMS Compl. NVV off ICO4 482 0 1 0 164 ICX 510 IPI Consumption In IPI2 245 0 1 0 0 NVV 515 ICMS Consumption In ICM2 225 0 1 0 0 NVV 517 Conhe. ICMS Non.Ded. CIC2 228 0 1 0 0 NVV 520 S.T. Consumption In ICS2 265 0 0 0 NVV 521 Conhe. SubTr N.Deduc CST2 289 0 0 0 NVV 525 ICMS Complement ICOP 255 0 1 0 0 ICP 530 STO-ICMS Complement ICOT 255 0 1 0 0 ICP 535 ICMS complement 100 ICOX 525 0 1 0 164 ICX 555 ISS from MM In ISS2 295 0 1 0 0 IC1 560 ISS from SD Out ISSO 555 0 1 0 164 MW4 610 IPI from SD Out IPI3 245 0 1 0 0 MW1 615 ICMS from SD Out ICM3 225 0 1 0 0 MW2 616 ICMS DIFAL Out ICMM 225 0 1 0 0 MW2 617 ICMS DIFAL Offs. Out ICML 616 0 1 0 164 ICC 618 Conhe. ICMS from SD CIC3 228 0 1 0 0 MW2 620 Sub.Tributaria Out ICS3 265 0 0 0 MW3 621 Conhe. SubTrib SD CST3 289 0 1 0 0 MW3 625 ISS from SD Out ISS3 295 0 1 0 0 MW4 630 ICMS Reverse (Z.F.) ICZF 225 0 1 0 164 ICZ 640 ICMS on freight Out IFR3 285 0 1 0 0 MW3 645 ICMS ST freight Out IFS3 275 0 0 0 MW3 650 ICMS Consum Outgoing ICM4 225 0 1 0 0 MW2 680 INSS Incoming INSS 10 0 1 0 0 VST

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

685 INSS offset (100-) INSX 680 0 1 0 164 INX 710 ICMS Reimbursement IRD1 10 0 1 0 0 IR1 715 ICMS Reimbur. Offset IRD2 710 0 1 0 0 IR2 720 SUBT Reimbursement IRD3 10 0 1 0 0 IR3 725 SUBT Reimbur. Offset IRD4 720 0 1 0 0 IR4 730 ICMS Reim.Offset NVV IRD5 10 0 1 0 0 NVV 735 SUBT Reim.Offset NVV IRD6 10 0 1 0 0 NVV 750 ISS 1 0 X 0 0 755 ISS at Provider ISSA 305 0 1 0 0 NVV 760 ISS WHT at Provider ISSB 310 0 1 0 0 ISW 765 ISS at Service Loc ISSE 320 0 1 0 0 NVV 770 ISS WHT at Serv. Loc ISSF 325 0 1 0 0 ISW 775 ISS Offset ISSG 339 0 1 0 0 NVV 779 PIS/COFINS non deductible 1 0 X 0 0 780 COFINS Normal Tax ICON 355 0 1 0 0 NVV 782 COFINS OffsetTaxIncl ICOO 360 0 1 0 0 NVV 784 PIS Normal Tax IPSN 375 0 1 0 0 NVV 786 PIS Offset Tax Incl. IPSO 380 0 1 0 0 NVV 789 PIS/COFINS deductible 1 0 X 0 0 790 COFINS Deductible ICOF 355 0 X 0 0 VST 791 PIS deductible IPIS 375 0 X 0 0 VST 792 Cofins Offset ICOV 360 0 1 0 164 CO3 793 COFINS Normal PO/GR ICOS 360 0 1 0 0 CO3 794 Cofins IV Non Deduct ICOU 360 0 1 0 0 NVV 795 COFINS Normal PO/GR ICOA 355 360 1 0 0 CO3 796 Offset IPSS / IPSU IPSV 380 0 1 0 164 PI3 797 PIS Nrmal PO/GR IPSS 380 0 1 0 0 PI3 798 PIS Normal IV NVV IPSU 380 0 1 0 0 NVV 799 PIS Normal PO/GR IPSA 375 380 1 0 0 PI3 900 Withholding Taxes 1 0 X 0 0 904 WHT Coll.Code Gen. BW01 0 0 X 0 5 905 WHT Rate Gen. BW02 0 0 X 0 5 909 WHT Coll.Code PIS BW11 0 0 X 0 5 910 WHT Rate PIS BW12 0 0 X 0 5 914 WHT Coll.Code COFINS BW21 0 0 X 0 5 915 WHT Rate COFINS BW22 0 0 X 0 5 919 WHT Coll.Code CSLL BW31 0 0 X 0 5 920 WHT Rate CSLL BW32 0 0 X 0 5 924 WHT Coll.Code IR BW41 0 0 X 0 5 925 WHT Rate IR BW42 0 0 X 0 5 940 BR WHT Base Amount BW51 0 0 2 X 0 160

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

945 BR WHT Base Amount BXWT 0 0 X 900(*) 5 946 BR WHT Base Amount BXWA 0 0 X 901(*) 5 950 COFINS WHT ICOW 915 0 900(*) 0 WTC 951 COFINS WHT Accum. ICOQ 915 0 901(*) 0 WAC 952 COFINS WHT Offset ICOZ 950 951 0 164 NVV 955 PIS WHT IPSW 910 0 900(*) 0 WTP 956 PIS WHT - Accum. IPSQ 910 0 901(*) 0 WAP 957 PIS WHT Offset IPSZ 955 956 0 164 NVV 960 CSLL WHT ICSW 920 0 900(*) 0 WTS 961 CSLL WHT - Accum. ICSQ 920 0 901(*) 0 WAS 962 CSLL WHT Offset ICSZ 960 961 0 164 NVV 965 IR WHT IIRW 925 0 900(*) 0 WTI 966 IR WHT-Accum. IIRQ 925 0 901(*) 0 WAI 967 IR WHT Offset IIRZ 965 966 0 164 NVV 970 General WHT IGEW 905 0 900(*) 0 WTG 971 General WHT-Accum. IGEQ 905 0 901(*) 0 WAG 972 General WHT Offset IGEZ 970 971 0 164 NVV 981 355 0 E X 0 0 982 361 0 D X 0 0 986 375 0 E X 0 0 987 0 0 D X 0 0 998 COFINS Diff Resale ICOR 0 0 12 0 NVV 999 Dummy Non-Statistic BI00 0 0 0 163 IPI

Pricing procedure RVABRA 5.1.6The table below shows the calculation procedure RVABRA, which is the standard tax calculation pro-cedure for condition-based taxes for the usage A and the application V.

The calculation procedure RVABRA is delivered by SAP. The corresponding BC set is ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD.

Details about the structure of the tax calculation procedure RVABRA can be found in the section 4.2.12.2.

Even though you need a pricing procedure to calculate Brazilian taxes, it is very common that custom-ers use their own pricing procedure instead of the standard one. Copy the RVABRA pricing procedure and adapt it according to your business needs. To avoid a too long pricing procedure, which could have negative effects on the system performance, you could delete the rows, which are not needed in your company, from the pricing procedure. For example, if you do not sell services, you do not need the ISS rows from the pricing procedure RVABRA.

The pricing procedure RVABRA displayed here and contained in the BC set refers to the requirements from the law MP135 (notes 664855 and 747607). It does not contain the changes due to the require-ments about the withholding tax accumulation. The reason for this is that withholding tax accumulation on the outgoing side applies only to a limited group of services and it impacts only a limited number of companies. If you need to implement withholding taxes with accumulation for your selling scenarios, you need to change some steps of the pricing procedure RVABRA and create some new steps. This is displayed in the second table below

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RVABRA according to MP135 (note 664855 and 747607)

In order to make the identification of rows relating to special functionalities easier, they are highlighted as follows:

Blue = Conhecimento de Transporte Eletrônico / ICMS in freight invoices; Red = ISS / Service Tax; Green = Withholding Taxes; Purple = PIS/COFINS with 4 decimal places.

Step Description Cond Type

From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

1 **** Zero **** 0 0 X 0 0 10 Price PR00 0 0 0 0 50 Discount (Value) RB00 0 0 0 0 198 Net Base 0 0 0 0 199 General Taxability DGTX 0 0 X 0 160 200 ICMS Due DICM 0 0 X 0 160 201 ICMS Tax Rate ICVA 0 0 X 0 160 202 ICMS Tax Base ICBS 0 0 X 0 160 203 BR: ICMS Other Base ICOB 0 0 X 0 160 204 BR: ICMS 0 Excempt IC0X 0 0 X 0 160 205 BR: ICMS Convenio100 I100 0 0 X 0 160 206 BR: ICMS Law ICLW 0 0 X 0 160 207 ICMS Rate SF=ST ISIC 0 0 X 0 160 208 ICMS Rate for ST ISTD 0 0 X 0 160 209 BR Cust ICMS Exempt ICXC 0 0 X 0 160 210 Zona Franca DIZF 0 0 X 0 160 220 Devido ICMS Freight DICF 0 0 X 0 160 221 BR: ICMS on Freight ICFR 0 0 X 0 160 222 Conhecimento CONH 0 0 X 0 160 223 ICMS Conhe Base ICF1 0 0 X 0 160 224 ICMS Conhe Rate ICF2 0 0 X 0 160 230 ICMS s/IPI Due DISI 0 0 X 0 160 240 BR: IPI Due DIPI 0 0 X 0 160 241 IPI Tax Rate IPVA 0 0 X 0 160 242 IPI Tax Base IPBS 0 0 X 0 160 243 BR: IPI Other Base IPOB 0 0 X 0 160 244 BR: IPI Pauta IPIP 0 0 X 0 0 245 BR: IPI 0 Excempt IP0X 0 0 X 0 160 246 BR: IPI Law IPLW 0 0 X 0 160 247 BR Cust IPI Exempt IPXC 0 0 X 0 160 248 COFINS Due DCOF 0 0 X 0 160 249 COFINS Rate BCO1 0 0 X 342 160 250 COFINS Rate 4 Dec. BCO3 0 0 X 343 160 251 COFINS Pauta Amount BCOP 0 0 X 343 0

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

252 COFINS Pauta Amt4Dec BCO4 0 0 X 343 0 253 COFINS Base BCO2 0 0 X 0 160 254 PIS Due DPIS 0 0 X 0 160 255 PIS Rate BPI1 0 0 X 342 160 256 PIS Rate 4Dec. BPI3 0 0 X 343 160 257 PIS Pauta Amount BPIP 0 0 X 343 0 258 PIS Pauta Amt 4 Dec. BPI4 0 0 X 343 0 259 PIS Base BPI2 0 0 X 0 160 260 ISS Due DISS 0 0 X 0 160 261 BR: ISS Amount ISVA 0 0 X 0 160 265 ISS New 2004 1 0 X 0 0 266 ISS Rate at Prov. ISVB 0 0 X 0 160 267 ISS Base at Prov. ISVC 0 0 X 0 160 268 ISS Law at Prov. ISVD 0 0 X 0 160 269 IPI from SD ISVE 0 0 X 0 160 270 ISS TaxLoc at Prov. ISVF 0 0 X 0 160 271 ISS WHT at Prov. ISVG 0 0 X 0 160 272 ISS Min WHT at Prov. ISVH 0 0 X 0 160 273 ISS Rate at Serv. ISVN 0 0 X 0 160 274 ISS Base at Serv. ISVO 0 0 X 0 160 275 ISS Law at Serv. ISVP 0 0 X 0 160 276 ISS Ins. Cal at Serv ISVQ 0 0 X 0 160 277 ISS TaxLoc at Serv. ISVR 0 0 X 0 160 278 ISS WHT at Serv. ISVS 0 0 X 0 160 279 ISS Min WHT at Serv. ISVT 0 0 X 0 160 280 Sub Trib Due DSUB 0 0 X 0 160 281 Subtrib Surcharge ISTS 0 0 X 0 160 282 BR: Sub.Trib SurType ISTT 0 0 X 0 160 283 BR: Sub.Trib MinPric ISTM 0 0 X 0 160 284 BR: Sub.Trib FixPric ISTF 0 0 X 0 0 285 Sub. Trib Base Value ISTB 0 0 X 0 160 286 BR: Sub.Trib Base 2 IST2 0 0 X 0 160 287 Subtrib. Base Reduct ISTC 0 0 X 0 160 288 Subtrib.MinPr.Factor ISTN 0 0 X 0 160 289 S.T. MinPrBef.Surch. ISTI 0 0 X 0 160 290 SubTribFreight Due DSUF 0 0 X 0 160 300 Price+Tax (for NF) ICMI 0 0 320 0 ERL 310 **** Modify Base **** 1 0 X 0 0 320 Material K004 0 0 0 0 ERS 321 Customer Discount K007 0 0 0 0 ERS 322 Customer/Material K005 0 0 0 0 ERS

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

400 Freight KF00 0 0 0 0 ERF 600 Brazil tax calc. IBRX 300 599 X 320 0 610 BR ICMS Normal Base BX10 0 0 X 320 0 612 BR ICMS Excluded Bse BX11 0 0 X 320 0 614 BR ICMS Other Base BX12 0 0 X 320 0 615 BR ICMS Conhe Base BX17 0 0 X 320 0 616 BR ICMS Amount BX13 0 0 320 0 MW2 617 BR ICMS Zona Franca BXZF 0 0 320 0 MWS 618 BR ICMS Freight Base BX14 0 0 X 320 0 619 BR ICMS Conhe E. Bas BX1E 0 0 X 320 0 620 BRICMS Freight Amnt. BX15 0 0 320 0 MW3 622 BR ICMS Rate BX16 0 0 X 320 0 623 BR ICMS Conhe Amount BX19 0 0 320 0 MW2 624 BR IPI Normal Base BX20 0 0 X 320 0 626 BR IPI Excluded Base BX21 0 0 X 320 0 628 BR IPI Other Base BX22 0 0 X 320 0 630 BR IPI Amount BX23 0 0 320 0 MW1 632 BR IPI Offset Base BX24 0 0 X 320 0 634 BR IPI Offset Amount BX25 0 0 X 320 0 636 BR SubTrib Base BX40 0 0 X 320 0 637 BR SubTrib Conh Base BX47 0 0 X 320 0 638 BR SubTrib Amount BX41 0 0 320 0 MW3 639 BR SubTrib Conh Ebas BX4E 0 0 X 320 0 640 BR SubTrib Fr. Base BX42 0 0 X 320 0 642 BR SubTrib Fr. Amnt BX43 0 0 320 0 MW3 644 BRSubTrib NF Rate BX44 0 0 X 320 0 645 BR SubTri Conhe Amnt BX49 0 0 320 0 MW3 646 BR ISS Base BX50 0 0 X 320 0 647 BR SubTrib Basered1 BX45 0 0 X 320 0 648 BR SubTrib Basered2 BX46 0 0 X 320 0 650 BR IPI Pauta Amount BXPA 0 0 1 320 0 MW1 652 BR ISS Base Prov BX60 0 0 X 320 0 653 BR ISS ExBase Prov BX61 0 0 X 320 0 654 BR ISS WT Base Prov BX64 0 0 X 320 0 655 BR ISS WT ExBas Prov BX65 0 0 X 320 0 656 BR ISS Base Serv BX6A 0 0 X 320 0 657 BR ISS ExBase Serv BX6B 0 0 X 320 0 658 BR ISS WT Base Serv BX6E 0 0 X 320 0 659 BR ISS WT ExBas Serv BX6F 0 0 X 320 0 660 BR ISS Amount BX51 0 0 1 320 0 MW4 661 BR ISS Amount Prov BX62 0 0 1 320 0 MW4

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

662 BR ISS WTAmount Prov BX63 0 0 1 320 0 WK3 663 BR ISS Amount Serv BX6C 0 0 1 320 0 MW4 664 BR ISS WTAmount Serv BX6D 0 0 1 320 0 WK3 665 BR ISS offset BX6O 660 664 1 0 0 BRI 666 BR COFINS Base BX70 0 0 X 320 0 667 BR COFINS Excl. Base BX71 0 0 X 320 0 668 BR COFINS Amount BX72 0 0 1 320 0 COF 669 BR COFINS Pauta Amt. BX7P 0 0 X 320 0 670 BR COFINS Pauta Amt. BX7Q 0 0 X 320 0 672 BR COFINS offset BX7O 668 668 1 0 0 ERL 675 BR PIS Base BX80 0 0 X 320 0 677 BR PIS Excl. Base BX81 0 0 X 320 0 679 BR PIS Amount BX82 0 0 1 320 0 PIS 680 BR PIS Pauta Amt. BX8P 0 0 X 320 0 681 BR PIS Pauta Amt. BX8Q 0 0 X 320 0 683 BR PIS offset BX8O 679 679 1 0 0 ERL 700 **** Tax Code Conditions **** 1 0 0 0 702 IPI from SD IPI3 1 0 X 0 0 704 ICMS from SD ICM3 1 0 X 0 0 706 Sub.Trib. from SD ICS3 1 0 X 0 0 708 ISS from SD ISS3 1 0 X 0 0 710 ADMS Disc. Zona Fr. ICZF 1 0 X 0 0 712 ICMS on freight SD IFR3 1 0 X 0 0 714 ICMS ST freight SD IFS3 1 0 X 0 0 715 ISS at Provider ISSA 1 0 X 0 0 715 ISS WHT at Provider ISSB 1 0 X 0 0 715 ISS WHT Off. Prov. ISSC 1 0 X 0 0 715 ISS WHT Again Prov. ISSD 1 0 X 0 0 715 ISS at Serv.Loc. ISSE 1 0 X 0 0 715 ISS WHT at Serv.Loc. ISSF 1 0 X 0 0 715 ISS WHT Off. SrvLoc ISSG 1 0 X 0 0 715 ISS WHT Again SrvLoc ISSH 1 0 X 0 0 716 Conhecimento ICMS CIC3 1 0 X 0 0 717 Conhe. SubTrib CST3 1 0 X 0 0 719 Total Tax 702 718 0 0 720 ICMS offset ICMO 616 0 0 0 BRI 721 Conhe. ICMS offset CICO 623 0 0 0 BRI 722 Conhe SubTrib offset CSTO 645 0 0 0 BRI 740 Rounding Off DIFF 0 0 16 4 ERS 750 Net Value + Tax 0 0 4 0 800 Cash Discount SKTO 0 0 X 0 11

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From Step

To Step

Sub Tot.


Alt. CBV

Acc. Key

810 Internal price VPRS 0 0 B X 0 0 899 WITHHOLDING TAXES ON

GROSS 1 0 X 0 0

900 BR General WHT Code WGEC 0 0 X 0 0 901 BR PIS WHT Code WPIC 0 0 X 0 0 902 BR COFINS WHT Code WCOC 0 0 X 0 0 903 BR CSLL WHT Code WCSC 0 0 X 0 0 904 BR IR WHT Code WIRC 0 0 X 0 0 905 BR ISS WHT Code WISC 0 0 X 0 0 910 BR WHT Base Amount BXWT 0 0 X 0 5 912 WHT Due DWHT 0 0 X 0 160 915 WHTColl.Code Gen. BW01 0 0 X 0 5 916 WHT Rate Gen. BW02 0 0 0 5 WG3 920 WHT Coll.Code PIS BW11 0 0 X 0 5 921 WHT Rate PIS BW12 0 0 0 5 WP3 925 WHT Coll.Code COFINS BW21 0 0 X 0 5 926 WHT Rate COFINS BW22 0 0 0 5 WC3 930 WHT Coll.Code CSLL BW31 1 0 X 0 0 931 WHT Rate CSLL BW32 0 0 0 5 WS3 935 WHT Coll.Code IR BW41 1 0 X 0 0 936 WHT Rate IR BW42 0 0 0 5 WI3 960 BR GENERAL WHT Offst BGEZ 916 0 0 164 WG4 965 BR PIS WHT Offset BPSZ 921 0 0 164 WP4 970 BR COFINS WHT Offset BCOZ 926 0 0 164 WC4 975 BR CSLL WHT Offset BCSZ 931 0 0 164 WS4 980 BR IR WHT Offset BIRZ 936 0 0 164 WI4 999 Dummy Non-Statistic BI00 1 0 X 0 0

RVABRA with withholding tax accumulation


From Step

To Step

Sub Tot.

Stat. Req. Alt. Calc. Type

Alt. CBV

Acc. Key

899 WITHHOLDING TAXES ON GROSS 1 0 X 0 0

900 BR General WHT Code WGEC 0 0 X 164 0 0

901 BR PIS WHT Code WPIC 0 0 X 164 0 0

902 BR COFINS WHT Code WCOC 0 0 X 164 0 0

903 BR CSLL WHT Code WCSC 0 0 X 164 0 0

904 BR IR WHT Code WIRC 0 0 X 164 0 0

905 BR ISS WHT Code WISC 0 0 X 164 0 0

906 General WHT code Accu IGW6 0 0 X 164 0 0

907 PIS WHT code Accu IPW6 0 0 X 164 0 0

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From Step

To Step

Sub Tot.

Stat. Req. Alt. Calc. Type

Alt. CBV

Acc. Key

908 COFINS WHT code Accu ICW6 0 0 X 164 0 0

909 CSLL WHT code Accu ISW6 0 0 X 164 0 0

910 IR WHT code Accu IRW6 0 0 X 164 0 0

911 BR ISS WHT Code 0 0 X 0 0 0

912 WHT Due DWHT 0 0 X 0 0 160

913 WHT Acc. Flag BW51 0 0 2 X 0 0 160

914 BR WHT Base Amount BXWT 0 0 X 0 900 5

915 BR WHT Acc Base Amt BXWA 0 0 X 0 901 5

916 WHTColl.Code Gen. BW01 1 0 X 0 0 0

917 WHT Rate Gen. BW02 0 0 X 0 0 5

920 WHT Coll.Code PIS BW11 1 0 X 0 0 0

921 WHT Rate PIS BW12 0 0 X 0 0 5

925 WHT Coll.Code COFINS BW21 1 0 X 0 0 0

926 WHT Rate COFINS BW22 0 0 X 0 0 5

930 WHT Coll.Code CSLL BW31 1 0 X 0 0 0

931 WHT Rate CSLL BW32 0 0 X 0 0 5

935 WHT Coll.Code IR BW41 1 0 X 0 0 0

936 WHT Rate IR BW42 0 0 X 0 0 5

940 General WHT IGEW 916 0 X 0 900 0 WG3

941 General WHT Accum. IGEQ 916 0 X 0 901 0 WG5

942 BR General WHT off BGEZ 940 941 X 0 0 164 WG4

945 PIS WHT IPSW 921 0 2 X 0 900 0 WP3

946 PIS WHT - Accum. IPSQ 921 0 X 0 901 0 WP5

947 BR PIS WHT Offset BPSZ 945 946 X 0 0 164 WP4

950 COFINS WHT ICOW 926 0 X 0 900 0 WC3

951 COFINS WHT Accum. ICOQ 926 0 X 0 901 0 WC5

953 BR COFINS WHT offset BCOZ 950 951 X 0 0 164 WC4

955 CSLL WHT ICSW 931 0 X 0 900 0 WS3

956 CSLL WHT - Accum. ICSQ 931 0 X 0 901 0 WS5

957 BR CSLL WHT offset BCSZ 955 956 X 0 0 164 WS4

960 IR WHT IIRW 936 0 X 0 900 0 WI3

961 IR WHT - Accum. IIRQ 936 0 X 0 901 0 WI5

962 BR IR WHT offset BIRZ 960 961 X 0 0 164 WI4

999 Dummy Non-Statistic BI00 1 0 X 0 0 0

5.2 Tax codes configuration Tax codes for both MM and SD can be created or changed in the Tax Manager’s Workplace in the menu path Tax Calculation > Tax Codes MM or Tax Codes SD. You need to select one tax code and then choose the menu path Goto > Maintain Conditions. There you can activate one or more condi-tions for the selected tax codes.

Below you can see some examples.

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To activate COFINS non-deductible 5.2.1

Active Cond. Type Description Tax Group Acct. Key

X ICON COFINS NVV Normal Tax COFI NVV

X ICOO COFINS NVV Offset Tax Included COFI NVV

To activate PIS non-deductible 5.2.2


X IPSN PIS NVV Normal Tax PIS NVV

X IPSO PIS NVV Offset Tax Included PIS NVV

To activate COFINS deductible 5.2.3


X ICOF COFINS Deductible COFI VST

X ICOV COFINSOffset ICOS/ICOU COFI CO3

X ICOS COFINS Normal PO/GR COFI CO3

X ICOU COFINS Normal IV NVV COFI NVV

X ICOA COFINS Normal PO/GR COFI CO3

To activate PIS deductible 5.2.4


X IPIS PIS Deductible PIS VST

X IPSV PIS Offset IPSS / IPSU PIS PI3

X IPSS PIS Normal PO/GR COFI PI3

X IPSU PIS Normal IV NVV COFI NVV

X IPSA PIS Normal PO/GR COFI PI3

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To activate withholding taxes 5.2.5


X ICOW COFINS WHT WHCO WTC

X ICOZ COFINS WHT Offset NVV

X IPSW PIS WHT WHPI WTP

X IPSZ PIS WHT Offset NVV

X ICSW CSLL WHT WHCS WTS

X ICSZ CSLL WHT Offset NVV

X IIRW IR WHT WHIR WTI

X IIRZ IR WHT Offset NVV

X IGEW General WHT WHT WTG

X IGEZ General WHT Offset NVV

To activate ISS 5.2.6


X ISSA ISS at Provider ISSP NVV

X ISSB ISS WHT at Provider ISSP ISW

X ISSE ISS at Service Loc. ISSS NVV

X ISSF ISS WHT at Service Loc. ISSS ISW

5.3 Migration from classical to condition based tax calculation If you want to use the condition-based tax calculation after some tax Customizing has already been carried out, you have to initially generate condition records for the entries in the Brazilian tax tables.

SAP provides a standard functionality in order to migrate the old tax Customizing to condition records. This functionality comprises a transaction for migrating single tax tables and a program which can be used to migrate more tables at once.

Details on these tools can be found in the sections 5.3.1 and 5.3.2.

If you have not maintained any tax rates yet, you do not need to run the migration tools. After activat-ing the condition generation, condition records will be generated automatically when maintaining tax rates.

Even if you have already done some customizing settings for the Brazilian taxes or if you want to switch from the old tax calculation to condition-based tax calculation, it is NOT recommended to run the migration transaction in update mode.

Any change to tax settings in an already productive system is a very critical change, which requires special caution. The process of defining the condition types and the other condition-based settings required in your system is a very critical process and it is project work.

Therefore, our recommendation is to use the tool described in section 5.3.1.1 to check the CBT tables, but not to update them. Similarly, we recommend you NOT to use the mass migration program cited in the section 5.3.2.

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Instead we recommend that you analyze your current system settings in detail and define the right strategy to implement the condition-based taxes with the help of a consultant expert in this topic.

Tools to check and migrate tax customizing to condition records 5.3.1By choosing Condition Setup – Migration (Shift+F5) in the Tax Manager’s Workplace, a screen is dis-played where the initial conversion of the entries in the Brazilian tax tables to condition records can be started. There, you check if all entries are successfully converted.

5.3.1.1 Check conditions On the right side of the screen, you see a table which contains a list of tax rates tables.

You can check the entries of a tax rate table by selecting the corresponding line and choosing Condi-tion Records – Check Conditions (F5). For each entry in the respective table, it is checked (based on the Customizing in the mapping tables J_1BVIEWMAP and J_1BTXCOND) whether corresponding condition records exist. The selections made in the Application group determine whether the condi-tions for the application TX (used in materials management) or V (used in sales and distribution) are being checked.

The entries and the numbers of the corresponding conditions are displayed in the ALV list. By double-clicking on a condition record number a modeless popup window is displayed that contains detailed information about the condition record from the corresponding entries in the DDIC tables KONH and KONP.

The traffic lights icon in the leftmost column of the ALV list indicates whether for each field in the table line, which needs to have a corresponding condition record, a condition exists (green); no conditions exist so far (red); or only some fields have corresponding conditions (yellow).

The icon in the leftmost column of the table control with all Brazilian tax tables gives a summary of the check: The magnifying-glass indicates that the respective table has not been checked since the trans-action was started. Green traffic lights mean that every entry in the table has all corresponding condi-tion records; red means that at least one entry has no condition records so far; yellow means that at least one line has only some converted fields.

5.3.1.2 Migrate tax data to tax conditions By choosing Condition Records – Convert (F6), the conversion of tax records to conditions is started. It is prerequisite that all customizing of the mapping tables is already done; otherwise, errors are being issued.

The selection made in the group Conversion Options determines the mode of conversion. If the first option is chosen, every field is converted in any case, even though a corresponding condition record already exists. If the second option is chosen, the user, in case of existing condition records, is asked what to do. If the third option is chosen, only the fields, which do not have corresponding condition records so far, are converted

Mass migration program 5.3.2In order to migrate all tax Customizing data to condition records, SAP provides the program J_1B_GEN_TAX_COND_BACK. Note 634981 describes the details.

However, it is NOT recommended to use this program, because it causes changes in several tables and could overwrite your actual customizing settings. As it is written above, you could use the Tax Manager’s Workplace to check the completeness of your condition tables, but it is not recommended to run the migration tool in update mode.