Brazil Cond Bas Tax Calc V1 1

CBT – Condition-Based Tax Calculationfor Brazil

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Condition-Based Tax Calculation for Brazil 2

© 2012 by SAP AG. All rights reserved.

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Table of Contents1 Version History .................................................................................... 62 General information ............................................................................. 72.1 Scope of this document ................................................................................... 72.2 Out of scope .................................................................................................... 72.3 How to use this document ............................................................................... 8

3 Introduction on condition-based tax calculation .............................. 93.1 Classic tax calculation ..................................................................................... 93.2 Condition-based tax calculation ....................................................................... 9

4 How to set up the condition-based tax calculation ........................ 104.1 First steps ..................................................................................................... 10

Prerequisites and release notes .................................................................... 104.1.1BC Sets for CBT ............................................................................................ 104.1.2Maintain Settings for external tax calculation ................................................. 114.1.3Tax Jurisdiction Codes .................................................................................. 134.1.4

4.2 CBT customizing settings for ICMS, IPI, PIS and COFINS ............................ 14Activate condition generation ........................................................................ 144.2.1Specify Calculation Procedures for Condition-Based Tax Calculation ........... 144.2.2Assign country to calculation procedure ........................................................ 144.2.3Access sequences ........................................................................................ 154.2.4Condition types ............................................................................................. 154.2.5Account keys ................................................................................................. 174.2.6Define internal codes for tax conditions ......................................................... 184.2.7Assign condition types to internal codes for tax conditions ............................ 184.2.8Assign internal code to tax group .................................................................. 194.2.9Tax groups for dynamic exceptions ............................................................... 194.2.10Assign condition tables to tax rate tables ....................................................... 214.2.11Tax calculation logic ...................................................................................... 224.2.12Tax Types ..................................................................................................... 254.2.13Price conditions ............................................................................................. 264.2.14Customizing Settings MM/FI .......................................................................... 274.2.15Customizing Settings SD ............................................................................... 284.2.16Tax Rates ...................................................................................................... 314.2.17Other (manual) Customizing settings for ICMS, IPI, PIS/COFINS ................. 324.2.18

4.3 CBT Customizing settings for ISS ................................................................. 33Create condition table A601 .......................................................................... 334.3.1Extend pricing field catalog............................................................................ 354.3.2Access sequences for ISS............................................................................. 354.3.3Create condition types for ISS ....................................................................... 374.3.4Define account keys for MM/FI and SD ......................................................... 374.3.5Update calculation procedures for MM/FI and SD ......................................... 384.3.6Create new internal condition codes .............................................................. 384.3.7Create mapping of internal codes to condition types ..................................... 384.3.8

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Assign internal code to tax group .................................................................. 384.3.9Tax groups for dynamic exceptions ............................................................... 384.3.10Assign condition tables to tax rate tables ....................................................... 384.3.11ISS Tax Types............................................................................................... 384.3.12Price conditions for ISS ................................................................................. 394.3.13Assign G/L accounts for ISS posting ............................................................. 394.3.14ISS tax rates.................................................................................................. 394.3.15Map MM tax values to nota fiscal fields ......................................................... 394.3.16Map MM tax laws to nota fiscal fields ............................................................ 404.3.17Map SD tax values to nota fiscal fields .......................................................... 404.3.18Other ISS (manual) Customizing Settings ..................................................... 404.3.19Tax codes for MM and SD ............................................................................. 414.3.20

4.4 CBT Customizing settings for WHT taxes with accumulation ......................... 42Access sequences for withholding taxes ....................................................... 424.4.1Condition types for withholding taxes ............................................................ 424.4.2Define account keys for MM/FI and SD ......................................................... 434.4.3Assign G/L accounts for withholding tax posting ............................................ 434.4.4Create condition value formulas for withholding taxes ................................... 434.4.5Update calculation procedures for MM/FI and SD ......................................... 434.4.6Define internal condition codes for withholding taxes .................................... 444.4.7Mapping of internal codes to condition types ................................................. 444.4.8Assign internal code to tax group .................................................................. 444.4.9Assign condition tables to tax rate tables ....................................................... 444.4.10Tax Types for withholding taxes .................................................................... 444.4.11Check withholding tax countries .................................................................... 444.4.12Define withholding tax type for invoice posting .............................................. 454.4.13Define withholding tax type for payment posting ............................................ 454.4.14Define account key for modified tax amount .................................................. 474.4.15Assign condition type to withholding tax type................................................. 484.4.16Maintain Tax Relevant Classification ............................................................. 494.4.17Maintain Withholding Tax SD Conditions ....................................................... 494.4.18Define withholding tax codes ......................................................................... 504.4.19Define minimum base amount for withholding tax types ................................ 504.4.20Define official collection codes ...................................................................... 514.4.21Maintain Wht tax rates and assign official collection codes............................ 514.4.22Assign withholding tax types to company code .............................................. 514.4.23Activate extended withholding tax ................................................................. 514.4.24Define accounts for withholding tax to be paid over ....................................... 524.4.25Update vendor and customer master data ..................................................... 524.4.26Map MM tax values to nota fiscal fields ......................................................... 524.4.27Map SD tax values to nota fiscal fields .......................................................... 524.4.28

5 Appendix ............................................................................................ 535.1 SAP Standard Tables .................................................................................... 53

Access sequences for application TX (MM/FI) ............................................... 535.1.1

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Access sequences for application V (SD) ...................................................... 535.1.2Condition types for application TX (MM/FI) .................................................... 545.1.3Condition types for application V (SD) ........................................................... 615.1.4Tax calculation procedure TAXBRA .............................................................. 665.1.5Pricing procedure RVABRA ........................................................................... 725.1.6

5.2 Tax codes configuration ................................................................................ 78To activate COFINS non-deductible .............................................................. 795.2.1To activate PIS non-deductible ...................................................................... 795.2.2To activate COFINS deductible ..................................................................... 795.2.3To activate PIS deductible ............................................................................. 795.2.4To activate withholding taxes ........................................................................ 805.2.5To activate ISS .............................................................................................. 805.2.6

5.3 Migration from classical to condition based tax calculation ............................ 80Tools to check and migrate tax customizing to condition records .................. 815.3.1Mass migration program ................................................................................ 815.3.2

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1 Version HistoryDocument Version Valid From Comment

V1 01.12.2012 New documentation for the condition-based tax calculation forBrazil, 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 MP135and 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 fromthe preconditions, because it is obsolete.

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2 General informationThis 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 theinformation about BC sets which are provided by SAP and which can be used to fill the customizingtables 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 note1706309. The delivered BC sets are valid for release ECC 6.00 and higher. No BC sets for releasesECC 5.00 and lower releases are delivered.

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

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

2.1 Scope of this documentThis 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 andWithholding 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. Aboutthis topic see also section 5.2 and following.

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

2.2 Out of scopeAll customizing activities and BC sets refer to Brazil, which means that they cannot be used for othercountries 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 movementtypes, billing types and so on.

This document does not describe the Tax Manager’s Workplace in details, but it considers only theparts of the Tax Manager’s Workplace which apply to CBT settings. For example, the customizing oftax 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 documentationonly partially. For simplification reasons, the CT-e content, like condition types and the correspondingentries in the tax calculation procedures for MM and SD, are included in the BC sets mentioned in thepresent documentation. In such cases the CT-e entries are mentioned explicitly so that you are awareof 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 andother 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-elegal change. Such content, like condition types and the corresponding entries in the tax calculationprocedures for MM and SD, are included in the BC sets mentioned in the present documentation. Insuch 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 detailsabout the legal change and the solution delivered by SAP.

2.3 How to use this documentThis 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 comprehensivecheck 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 differenttypes of taxes, so that you can implement only the settings which are required in your company. Forexample 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 customizingsettings 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. Italso gives a more detailed explanation about the tax calculation procedure TAXBRA and thepricing procedure RVABRA.

Section 5.3 highlights what you need to do if you switch on the condition-based tax calculationwhile 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’sWorkplace (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 arementioned 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 indetail. 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’sWorkplace itself (transaction J1BTAX). This change is delivered by support package; the valid supportpackage for each release can be seen in the note 1706309.

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3 Introduction on condition-based tax calculationIn 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 Financiamentoda 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 onetax base amount and tax amount.

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

Instead, the classic way of calculating Brazilian taxes made use of the external tax interface. The taxcalculation was executed by a dedicated function module rather than by direct processing of the taxcalculation 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 therespective tax code must be deactivated (not only set to be 0%).

3.2 Condition-based tax calculationThe new approach of the Brazilian tax calculation makes use of the standard condition technique tocalculate 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 theNota Fiscal are maintained in Brazilian-specific views J_1BTX* (for example J_1BTXIP1 contains theIPI rates). The data is additionally present as condition records in the database. These records aredirectly 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 theviews 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 notes4.1.1The present documentation is aimed to replace the attachments to the notes 664855, 747607 and916003. Therefore, you do not implement the customizing activities as described in the attachments ofthose 3 notes, but use the present document instead.

However, the notes 664855 and 916003 do contain coding changes which are precondition for theCBT 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 packageSAPKH47017. If your system is on a lower support package of the release 4.7, you need to implementthe coding changes manually. To do this, you need to follow the steps described under point 1“CodingChanges 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 evenhigher 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 codechanges 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 totwo new condition value formulas, which are needed for calculating withholding taxes with and withoutaccumulation. Such manual activities are described in the present document. Finally, you need somecustomizing activities: These are described in the present document. Therefore, ignore the attachmentto the note 916003.

BC Sets for CBT4.1.2In 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 setentries 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 activationof the BC sets to these two languages. In case you want to perform a comparison of the Customizingactivities, 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” andactivate 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 SetsActivation).

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

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

The table below lists the BC sets for the CBT configuration, which you find attached to the note1706309. 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 youdo not encounter any issue when uploading the BC sets to your SAP ERP system. The same BC setswith 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 thelatest release. Therefore, if you are using an older release, the standard customizing in your client 000may not contain the last updates.

Customizing Activity Doc. Section BC Set NameCondition 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 forTax 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 calculation4.1.3The settings described below for external tax calculation as well as the settings for the tax jurisdictioncodes are required for different purposes:

For the ICMS tax determination, the system must be able to determine the state of origin andstate of destination for the goods. This information is derived from the tax jurisdiction code andmust 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 AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 usedfor 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 taxvalue 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 CalculationSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic Settings External Tax Calculation Activate External TaxCalculation


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 DestinationSAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting FinancialAccounting Global Settings Tax on Sales/Purchases Basic SettingsExternal 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 Codes4.1.4

4.1.4.1 Define Tax Jurisdiction CodesSAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting FinancialAccounting Global Settings Tax on Sales/Purchases Basic SettingsBrazil 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 digitswith 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 CodesSAP Access

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


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

When you maintain Brazilian address data (in master records or transaction data) and enter the postal codeand 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 Regionsand Assign to Geographical Regions Customizing activity.

Once the system determines either the tax jurisdiction code or the tax region, it stores it in the JurisdictionCode 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 codeIn order to allow correct tax calculation, all relevant addresses must be updated with the jurisdictioncodes. 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 COFINSThe following sections describe the customizing settings which are required to calculate several typesof 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 generation4.2.1

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 Calculation4.2.2

SAP Access

Access Menu SAP Customizing Implementation Guide -> Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic Settings Brazil Condition-Based Tax CalculationSpecify 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 areTAXBRA 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 setthe CBT Act. Indicator.

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

Assign country to calculation procedure4.2.3

SAP Access

Access Menu SAP Customizing Implementation Guide -> Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 sequences4.2.4Access 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 AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 beused in the tax calculation that is called by the MM applications. The corresponding view cluster isVVC_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 thisdocument.

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

Access Menu SAP Customizing Implementation Guide Sales and DistributionBasic 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 sequencescan 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 types4.2.5

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 beused in the tax calculation that is called by the MM application. The corresponding maintenance viewis 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 tobe entered also in the table J_1BAJ in order to classify them as tax type. Some examples oftax 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 exampleBCO1 (COFINS Rate), BPI1 (PIS rate).

NF mapping conditions: these are only used to mark specific lines of the calculation procedureto 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 areonly 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 conditioncontaining the data. They are used to reuse a condition value in another line of the calculationprocedure.

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

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

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 ControlDefine 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 beused 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 tobe entered also in the table J_1BAJ in order to classify them as tax type. Some examples oftax 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 procedureto 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 conditioncontaining the data. They are used to reuse a condition value in another line of the calculationprocedure.

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

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

Account keys4.2.6

4.2.6.1 Define account keys for MM/FISAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 accountkeys are the ones which are used by the tax calculation procedure TAXBRA in order to post taxes forthe 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 thetax 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 toexpense 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 thestandard 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 keysfor Brazil.

4.2.6.2 Define account keys for SDSAP Access

Access Menu SAP Customizing Implementation Guide Sales and DistributionBasic 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 accountkey, 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 forpackaging 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 addnew ones, if required.

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

Define internal codes for tax conditions4.2.7

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 ofcondition records during the maintenance of the Brazilian tax tables. Only the internal codes are usedin the program coding.

The customer is usually not expected to maintain this table because SAP delivers the internal codesrequired 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 thesystem to consider the access sequence of the condition type assigned to the internal code in theautomatic 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 conditioncodes delivered by SAP.

Assign condition types to internal codes for tax conditions4.2.8

SAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting FinancialAccounting Global Settings Tax on Sales/Purchases Basic SettingsBrazil 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 abovedescribed internal codes.

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

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 group4.2.9The assignment of internal codes to tax groups is a necessary activity but it has no correspondingCustomizing activity.

First of all, check that the table J_1BTAXGRPCD contains all required entries as listed in the tablebelow. 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 todisplay. 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 CodeCOFI TXSDCCOFINSICFR TXSDCICMSFREIGHTICFS TXSDCSUBTRIBFREIGHTICMS TXSDCICMSICST TXSDCSUBTRIBIPI TXSDCIPIISS TXSDCISSISSP TXSDCISSISSS TXSDCISSPIS TXSDCPISWACO WHT_ACTIVE_COFINS_ACCWACS WHT_ACTIVE_CSLL_ACCWAIR WHT_ACTIVE_IR_ACCWAPI WHT_ACTIVE_PIS_ACCWAT WHT_ACTIVE_GEN_ACCWHCO WHT_ACTIVE_COFINSWHCS WHT_ACTIVE_CSLLWHIR WHT_ACTIVE_IRWHPI WHT_ACTIVE_PISWHT WHT_ACTIVE_GEN

Tax groups for dynamic exceptions4.2.10

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesCalculation Settings for Tax Calculation in Brazil Tax RatesDefine 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 forBrazilian tax calculation. For each tax group, you can specify up to three key fields that are to be usedto 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 thatbelong 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 thetax types marked as active. SAP provides a program, J_1B_EXT_ACC_SEQ, which does this for youautomatically. 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 between90 and 99 are reserved for SAP. These groups should not be deleted. SAP delivers the groups 1, 5and 97 to 99.

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

Tax Group Usage1 MM: ICMS base reduction carrier

SD: ICMS base reduction customerISS rates (material-dependent)

5 ICMS, IPI, S.T. material-dependent exceptionsMM: 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 sequencesYou can use the report J_1B_EXT_ACC_SEQ to automatically update access sequences after youhave 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. Itis important that you ensure that tax groups are not customized differently in different clients becausewith 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 cansimulate the results of the program by setting the Simulate Only indicator. This is extremely importantbecause 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 aftercreating 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 theCustomizing settings indicate that this access sequence should not have this step, then the systemdeletes 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 oneof 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 theaccess sequence

C. Delete from access sequences

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

Assign condition tables to tax rate tables4.2.11

SAP Access

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



Condition Setup Condition Mapping Map Tax Rate Tables toCondition 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 taxtable. 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 tablebelow. These are all assignments of tax tables to condition tables, which are not dependent on a taxgroup (the tax group is empty).

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

Table Name Description Tax group Cond. TableJ_1BTAXCODEV FI Tax Codes 3J_1BTREGX Tax Regions 394J_1BTXCI1** Maintain ICMS-Complement Exceptions 349J_1BTXDEF** Maintain Default Tax Rate Values 392J_1BTXIC1** Maintain ICMS Values 382J_1BTXIC2** Maintain ICMS Material-Dependent Excep-

tions382

J_1BTXIP1** Maintain IPI Values 346J_1BTXIP2** Maintain IPI Material-Dependent Exceptions 346J_1BTXSDC SD Tax Codes 291J_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 348J_1BTXCOF** Maintain COFINS Values any * 346J_1BTXIC3** Maintain ICMS Dynamic Exceptions any * 382J_1BTXIP3** Maintain IPI Dynamic Exceptions any* 346J_1BTXIS3 Grouped ISS any* 347J_1BTXISS** Maintain ISS Values any* except country

default ( this is table392)

601

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

lection Codesany* 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 tableis the same for all tax groups. However, in case you need to follow a different concept of Customizingaccess sequences you can specify different condition tables per tax group. We recommend stayingwith 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). Thereyou define tax rates for several kinds of taxes.

Tax calculation logic4.2.12The 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 onthe 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 extendedto work also with CBT. If the calculation procedure is specified in the table J_1BCBTAXPROC, thefunction 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 inorder to store them in the pricing-procedure results table. The differentiation is done by analyzing thecondition type of the step in the calculation procedure in which the formula was called. By assigninginternal codes to these condition types, depending on this internal code either the calculation is startedor 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 stepthat contains the condition type BX01. This is because condition type BX01 is assigned to the internalcode 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 conditiontype BX12 is assigned to the internal code NF_ICMS_OBAS which indicates the ICMS other baseamount.

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 classicaltax calculation, that is. the first call is calculating tax on the net amount on condition ICMI, whereas thesecond call on condition IBRX is calculating based on the amount including ICMS, possibly modifiedby other conditions in between.

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4.2.12.1 Calculation Procedure in MM/FI: TAXBRASAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 referto it in lines of the calculation procedure that only contain explanatory texts (like forexample step 011) so that no confusing intermediate sum appears in such lines on thepricing 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) isdetermined (step 017, BXPO).

Customizing data retrieval: in the next section, the tax customizing data (rates, laws, and otherflags) are read from the condition database. The access is done based on the actual values in thecommunication structures KOMP and KOMK and is controlled by the access sequences assignedto 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 thecalculation procedure. For each value, a condition type is defined that serves to indicate the resultin the pricing procedure results table. For these new condition types, corresponding internal codesare 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 thetax 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 deliveredin client 000, is, however, only updated for the latest release.

The standard calculation procedure TAXBRA is contained in the BC setZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM.

If you intend to activate the BC set to your system and you have already a tax calculation procedurenamed 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 systemand you activate the BC set, it could happen that you get the same entries with different step numberswhich would cause errors in the calculation procedure.

When you activate BC set ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM you will see the followingmessage “Activation ended with additional information” in the information bar. The system considersthat not all data in object VVC_T683_TX was activated in all languages, because the BC set deliverstexts only for the steps which do not have a condition type behind. For all the other steps, the text thatyou 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: RVABRASAP Access

Access Menu SAP Customizing Implementation Guide Sales and DistributionBasic Functions Pricing Pricing Control Define And AssignPricing 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 theindividual 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 referto it in lines of the calculation procedure that only contain explanatory texts (like forexample step 199) in order that no confusing intermediate sum appears in such lineson the pricing results screen in the transactions.

o The rest covers the determination of the net price (price excluding any kind of tax), forexample 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 taxesin 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 ActKy001 **** 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 otherflags) are read from the condition database. The access is done based on the actual values in thecommunication structures KOMP and KOMK and is controlled by the access sequences assignedto the condition types (step 200 to 199).

Tax calculation on net amount (Step 1): After all data is retrieved that are necessary to calculatethe taxes, the tax calculation is performed by processing the condition value formula 320 (step300).

Nota Fiscal relevant modifications to the base price including ICMS: In this part, the price includingICMS which results from the first step of the calculation amount, can be used to apply conditionsthat modify this amount, for example, Nota Fiscal relevant discounts, freight, insurance, or otherexpenses. These conditions are not really part of the tax calculation, but are specific to individualrequirements. 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 thathave been applied in the previous part require a recalculation of the taxes, this time on the modifiedgross 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 thecalculation 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 (step610 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 thetax 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 bythe tax result conditions of the previous section. The conditions ICMO and ISSO are the knownICMS and ISS offset conditions. The part between step 730 and 998 can be used for additionalconditions, for example cash discount or rounding difference conditions.

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

The standard calculation procedure RVABRA is contained in the BC setZCSC_BR_CBT_RVABRA_CALC_PROCD_SD.

When you activate BC set ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD you will see the followingmessage “Activation ended with additional information” in the information bar. The system considersthat not all data in object VVC_T683_TX was activated in all languages, because the BC set deliverstexts only for the steps which do not have a condition type behind. For all the other steps, the text thatyou 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 Types4.2.13

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 conditiontypes that indicate whether a specific tax is due or whether specific lines are to be listed in the NotaFiscal. 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 activatethe 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 conditions4.2.14

4.2.14.1 Price conditions MMIn Brazil, depending on your business process, you may need to include certain taxes in the net priceof materials before the system calculates the tax in the standard way. You do this by defining conditiontypes 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 appearswith the entire basic price conditions defined in the calculation procedure. You select the appropriateone.

When you enter a purchase order item, the system uses the conditions defined in the correspondinginfo record or contract. If no condition is available, then you must specify a net price in the PO. Thesystem 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 onthe 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 ConditionsSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic Settings Brazil Define Which Taxes Are Included in MMPrice Conditions


When the system calculates tax for a given transaction, it accesses the entries in this Customizingactivity 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 conditiontypes. Note that those condition types are defined as basic prices (these are assigned the conditioncategory 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 atlocation of service recipient. If more than one tax group applies to a single condition type, you mustcreate 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 SDSAP Access

Access Menu SAP Customizing Implementation Guide Sales and DistributionBilling 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 secondstep of the SD pricing, this customizing indicates how the modification conditions should be taken intoaccount, for example, if they are included or not in the IPI base, if they affect the Sub.Trib. baseamount or if they are relevant for Sub.Trib. on freight.

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

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4.2.14.4 Define Which Taxes Are Included in SD Price ConditionsSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic Settings Brazil Define Which Taxes Are Included in SDPrice Conditions


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

Customizing Settings MM/FI4.2.15

4.2.15.1 Map MM values to Nota Fiscal fieldsSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic Settings Brazil Condition-Based Tax Calculation MapMM 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 ofthe 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, thenormal 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-procedureresults table the above mentioned nota fiscal fields are being filled.

Standard Customizing settings can be found in the BC SetZCSC_BR_CBT_MAP_MM_VLS_TO_NF_FDS.

4.2.15.2 Map MM Tax Laws to Nota Fiscal fieldsSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic Settings Brazil Condition-Based Tax Calculation MapMM 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 orthe 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 codesSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesCalculation Settings for Tax Calculation in Brazil Define FI/MMTax 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 procedureTAXBRA. 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 accountsSAP Access

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


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

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

Customizing Settings SD4.2.16

4.2.16.1 Tax Determination RulesSAP Access

Access Menu SAP Customizing Implementation Guide Sales and DistributionBasic 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 availablein 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 fieldsSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic Settings Brazil Condition-Based Tax Calculation MapSD 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 ofthe 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, thenormal 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-procedureresults 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 codesSAP 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 codesare 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 SDSAP 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 SDTax 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 automaticallydetermined 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 sequencenumber 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 categorytable. 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 entera sequence otherwise no tax code determination will take place.

4.2.16.5 Define Sequence for Tax Law Determination in SDSAP Access

Access Menu SAP Customizing Implementation Guide Financial Accounting Fi-nancial Accounting Global Settings Tax on Sales/Purchases BasicSettings 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 ofthese 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 taxlaws. 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 theitem category tables, and finally the customer master.

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

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4.2.16.6 Assign tax accounts for revenue determinationSAP Access

Access Menu SAP Customizing Implementation Guide Sales and DistributionBasic 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 onthe used chart of accounts.

Tax Rates4.2.17

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesCalculation 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’soverview screen you can select for which tax type and according to which criteria you want to enter thetax 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 youhave created before (Maintain IPI Dynamic Exceptions). In addition to these activities, you must entera 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 exceptions2. Dynamic exceptions3. Normal values4. Default values

Example: ICMSYou can define ICMS tax rates based on the combination of ship-from and ship-to state. For eachcombination of ship-from and ship-to location you can enter the tax rate for ICMS and the tax rate forfreight (called Conhecimento de Transporte Eletrônico). Additionally, you can also define material-dependent exceptions, dynamic exceptions and exceptions for ICMS complement. Also for ICMS, youmust 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 ratesbased 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 IPISAP Access

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Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesCalculation Settings for Tax Calculation in Brazil Tax RatesMaintain 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 usesthese 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 othervalues:

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/COFINS4.2.18In 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 aretherefore 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 detailedinformation, go to the respective IMG documentation.

4.2.18.1 Tax RegionsSAP 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 GeographicalRegions



Entities Tax Regions

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

4.2.18.2 NCM CodesSAP 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 systemto determine the IPI tax rate. For further details, check the IMG documentation.

4.2.18.3 Sub. Trib. GroupsSAP Access

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Access Menu … … … … … ..



Entities Sub. Trib. Groups

For further details, check the IMG documentation.

4.2.18.4 CFOPSAP 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 theIMG documentation.

4.2.18.5 Tax Laws and Tax SituationsSAP Access

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



Entities Tax Laws

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

4.3 CBT Customizing settings for ISS

Create condition table A6014.3.1

SAP Access

Access Menu SAP Customizing Implementation Guide Sales and DistributionBasic 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 inuse for something else. In this case, replace 601 by your number in the access sequences describedin 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 Initialvalue

Data element Datatype

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 goodsare 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 DynamicTax Exceptions

DATBI X X KODATBI DATS 8 0 Validity end date of thecondition record

DATAB X KODATAB DATS 8 0 Validity start date of thecondition record

KNUMH X KNUMH CHAR 10 0 Condition record number

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

Field Data element Datatype

For.keys

Checktable

Origin of the input help

Searchhelp

Domain

MANDT MANDT CLNT X T000 Input help imple-mented with checktable

H_T000 MANDT

KAPPL KAPPL CHAR X T681A Input help imple-mented with checktable

CSH_T681A KAPPL

KSCHL KSCHA CHAR X T685 Input help imple-mented with checktable

H_T685 KSCHL

ALAND ALAND CHAR X T005 Input help imple-mented with checktable

LAND1

TXJCD TXJCD CHAR X TTXJ Input help imple- H_TTXJ TXJCD

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mented with checktable

DYNKEY1 J_1BDYNKEY1 CHAR J_1BVALUE



TAXGROUP J_1BTXGRP NUMC X J_1BTXGRUOP Input help imple-mented with checktable

J_1BTXGRP

DATBI KODATBI DATS Input help based ondata type

DATUM

DATAB KODATAB DATS Input help based ondata type

DATUM

KNUMH KNUMH CHAR KNUMB

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

Extend pricing field catalog4.3.2In order to use the new components LOC_PR (Location of Service Provider) and LOC_SE (LocationWhere Service Is Provided) in the ISS access sequences, the pricing field catalog must be extendedby 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 andLOC_SE from structure KOMP.

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

Access sequences for ISS4.3.3

4.3.3.1 Access sequences for application TXSAP Access

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




Access sequences, which are used in the condition types for ISS, are delivered in SAP standard (seesection 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




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 VSAP Access

Access Menu SAP Customizing Implementation Guide Sales and DistributionBasic 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 (seesection 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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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 ISS4.3.4

SAP Access



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

The BC Set ZCSC_BR_CBT_CONDITION_TYPES_MM andZCSC_BR_CBT_CONDITION_TYPES_SD contain all standard condition types for MM/FI and SDwhich 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 foundin the sections 5.1.3 and 5.1.4 of this document.

Define account keys for MM/FI and SD4.3.5New 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 thestandard account keys for both FI and SD.

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Update calculation procedures for MM/FI and SD4.3.6For details about the calculation procedures TAXBRA and RVABRA refer to the paragraphs 4.2.12.1and 4.2.12.2 respectively.

Create new internal condition codes4.3.7See paragraph 4.2.7

Create mapping of internal codes to condition types4.3.8See paragraph 4.2.8.

Assign internal code to tax group4.3.9See paragraph 4.2.9.

Tax groups for dynamic exceptions4.3.10

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesCalculation Settings for Tax Calculation in Brazil Tax RatesDefine 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 (thisis condition table 392).

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

ISS Tax Types4.3.12See paragraph 4.2.13.

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Price conditions for ISS4.3.13The condition-based tax calculation supports prices which are not the real net prices, but may containPIS, COFINS, ISS due at the municipality of the service provider, ISS due at the municipality of theservice execution, or any combination of these.

In order to allow the system to consider correctly which taxes are already included in a price and whichnot, corresponding price conditions must be maintained. It is possible to either continue using existingprice conditions or introduce new ones. Of course, if new price conditions are introduced, all priceconditions must be updated.

For details see the paragraph 4.2.14.

Assign G/L accounts for ISS posting4.3.14 See paragraph 4.2.15.4

ISS tax rates4.3.15

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesCalculation 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 dynamicexceptions you created before.

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

4.3.15.1 Create default tax rates for ISSSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesCalculation Settings for Tax Calculation in Brazil Tax RatesMaintain 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 usesthese 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 fields4.3.16In this activity, you define the mapping of ISS tax values to be copied to the nota fiscal fields per ISStax type.

For detailed information see paragraph 4.2.15.1.

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Map MM tax laws to nota fiscal fields4.3.17In this activity, you define the mapping of ISS tax laws to be copied to the nota fiscal fields per ISS taxtype.


Map SD tax values to nota fiscal fields4.3.18In this activity, you define the mapping of ISS tax values to be copied to the nota fiscal fields per ISStax type.


Other ISS (manual) Customizing Settings4.3.19In the following sections you can see which other customizing settings are required for a correct ISStax 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 acorrect and complete Nota Fiscal for services.

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

You do this in transactions XD02 and XK02.

4.3.19.2 ISS Tax LawsSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesBasic 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 ofSão Paulo, assign the relevant ISS tax situation to the ISS tax law (see Define Tax Situations) addi-tionally.

4.3.19.3 ISS Tax SituationsSAP Access

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


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

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

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4.3.19.4 Official Service TypesSAP Access

Access Menu SAP Customizing Implementation Guide Logistics - GeneralTax on Goods Movements Brazil Service Types DefineOfficial Service Types for Incoming Notas Fiscaís AND Define OfficialService Types for Outgoing Notas Fiscaís


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

4.3.19.5 Generic Service TypesSAP Access

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


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

4.3.19.6 Assign Official Service TypesSAP Access

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


Refer to the IMG documentation for details.

Tax codes for MM and SD4.3.20

4.3.20.1 Create MM tax codesSAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Tax on Sales/PurchasesCalculation Settings for Tax Calculation in Brazil Define FI/MMTax 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 codesSAP 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 codesare 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 taxes4.4.1

4.4.1.1 Access sequences for application TXSAP 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 SAPstandard (see section 4.2.4).


4.4.1.2 Access sequences for application VSAP Access

Access Menu SAP Customizing Implementation Guide Sales and Distribution BasicFunctions Pricing Pricing Control Define Access SequencesMaintain Access Sequences




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


Condition types for withholding taxes4.4.2

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 andZCSC_BR_CBT_CONDITION_TYPES_SD contain all standard condition types for MM/FI and SDwhich 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 foundin 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 SD4.4.3New account keys must be created in order to post service taxes to separate accounts and to identifywithholding 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 thestandard account keys for both FI and SD.

Assign G/L accounts for withholding tax posting4.4.4See paragraph 4.2.15.4.

Create condition value formulas for withholding taxes4.4.5According to the note 910063, you need to create two additional condition value formulas, so thatwithholding 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 inyour system, create the new formulas with other numbers.

Once you are done, save and activate the formulas.

Update calculation procedures for MM/FI and SD4.4.6For details about the calculation procedures TAXBRA and RVABRA, refer to the paragraphs 4.2.12.1and 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 accumulationand 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 TAXBRAIn the tax calculation procedure TAXBRA, you need to assign the condition value formula 900 to thesteps which refer to the withholding tax without accumulation and the formula 901 to the steps whichrefer 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 ofthe calculation procedure TAXBRA is marked by a (*) in the table in section 5.1.5. If you implement thecalculation procedure TAXBRA by uploading the BC set, then those steps will not have the formulas900 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 RVABRAIn the pricing procedure RVABRA you need to assign the condition value formula 900 to the stepswhich refer to the withholding tax without accumulation and the formula 901 to the steps which refer tothe 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 afterthe law MP135 (notes 664855 and 747607). However, it does not contain the subsequent changesdue to the implementation of withholding taxes with accumulation.

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

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

Define internal condition codes for withholding taxes4.4.7See paragraph 4.2.7.

Mapping of internal codes to condition types4.4.8See paragraph 4.2.8.

Assign internal code to tax group4.4.9See paragraph 4.2.9.


SAP Access





In this activity, you need to map the condition tables for withholding taxes to the tax rate tables forwithholding 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 taxes4.4.11

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 countries4.4.12

SAP Access

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Access Menu SAP Customizing Implementation Guide Financial Accounting Finan-cial Accounting Global Settings Withholding Tax Extended WithholdingTax 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 IDsprescribed by law is different from the list in the system, you must define the withholding tax countriesagain.

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 posting4.4.13

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial 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 requiredto 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 taxis 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 posting4.4.14

SAP Access

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Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial 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 accumulationFor 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 accumulationFor 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 amount4.4.15

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial 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 themodified tax amount. At this point, modified means, that the transactions that you specified here areused 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 type4.4.16

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial 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 taxcode per customer/vendor. In contrast, the withholding tax in SD is determined from the combinationof withholding tax condition type and withholding tax code per material. Therefore, it is mandatory toassign 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 materialitem. 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 Classification4.4.17

SAP Access

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


In this table, you need to enter the withholding tax types relevant for Brazil and their description. Thissetting is needed to create a connection between the withholding taxes calculated in SD and the FImodule. 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 Conditions4.4.18You 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 recordwith a rate of 100% and the assignment to the corresponding tax type and tax code. Additionally youneed 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 codes4.4.19

SAP Access

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


Here you define the tax codes for withholding taxes. You are free to create the withholding tax codeschoosing your own naming conventions. Below you can find an example on how you could customizeyour 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 types4.4.20

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Minimum and MaximumAmounts 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 baseaccumulation.

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 codes4.4.21

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial 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 codes4.4.22

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial Accounting Global Settings Withholding Tax Extend-ed Withholding Tax Calculation Brazil Maintain WithholdingTax 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 ratesbased 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 code4.4.23

SAP Access

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


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

Activate extended withholding tax4.4.24

SAP Access

Access Menu SAP Customizing Implementation Guide Financial AccountingFinancial 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 offersyou 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 over4.4.25

SAP Access

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


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

Assign G/L accounts for withholding taxes to withholding tax types. Assign the same G/L account youhave assigned for each normal withholding tax type and code. For example, if 177011 is assigned forwithholding 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 data4.4.26Use transactions XK02 and XD02.

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

Map MM tax values to nota fiscal fields4.4.27For detailed information see paragraph 4.2.15.1.

Map SD tax values to nota fiscal fields4.4.28For detailed information see paragraph 4.2.16.2

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5 AppendixThe section 5.1 shows the access sequences, the conditions types and the tax calculation proceduresfor 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 calculationwhile 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 mindwhile 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, sincethey are used in the BR specific condition types. Access sequences are not customizing objects, andare part of the SAP standard delivery.

Access sequence DescriptionBRB1 Dummy 1 for BrazilBRCC Brazil ICMS ConhecimentoBRCI Brazil ICMS ComplementBRCO Brazil COFINSBRIB Brazil ICMS-BasisBRIC Brazil ICMSBRID Brazil ICMS SF=STBRII Brazil ICMS SF=ST for S.T.BRIP Brazil IPIBRIS Brazil ISSBRLC Brazil Tax Law: ICMSBRLO Tax Law: COFINSBRLP Brazil Tax Law: IPIBRLS Tax Law: PISBRPI Brazil PISBRS1 Brazil ISS at service providerBRS2 Brazil ISS wh. serv. providerBRST Brazil Sub. Trib.BRTF Brazil: Tax-ExemptBRWT Brazil WHTMWST 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 DescriptionBRCC Brazil ICMS ConhecimentoBRCO Brazil COFINSBRPI Brazil PISBRWT Brazil WHTDIBR Brazil: Taxes DueDICM BR: ICMS Due

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Access sequence DescriptionDIPI BR: IPI DueDISI BR: ICMS over IPI DueIBRR Brazil: 100% offsetIBRX Brazil: Ext. tax determinationICBS BR: ICMS Tax Base ValuesICCB BR: ICMS Offsetting EntryICLW BR: ICMS Tax LawsICVA BR: ICMS Tax RatesICXC BR: Customer ICMS ExemptIDZF BR: ICMS Discount Zona FrancaIPBS BR: IPI Tax Base ValuesIPLW BR: IPI Tax LawsIPOB BR: ICMS Discount Zona FrancaIPVA BR: IPI Tax RatesIPXC BR: Customer IPI ExemptISS1 Brazil ISS at service providerISS2 Brazil ISS wh. serv. providerISTC BR: ICMS Rates for SubtribISTI BR: ICMS Rate for S.T.ISTV BR: Subtrib SurchargesISVA BR: ISS Tax RatesIZOF Zona FrancaJ1AG Arg.: Tax relev. class.

Condition types for application TX (MM/FI)5.1.3Condition Type Description Access SequenceB100 Convenio 100 BRICBASB Base AmountBASI Base AmountBCI1 ICMS Complement Base BRCIBCI2 ICMS Complem. Exempt BRCIBCI3 ICMS Complement Rate BRB1BCO1 COFINS Rate BRCOBCO2 COFINS Base BRCOBCO3 COFINS Rate 4 dec. BRCOBCO4 COFINS Pauta Amt. 4d BRCOBCOP COFINS Pauta Amount BRCOBDIS DiscountingBFI1 ICMS Conhe Base BRCCBFI2 ICMS Conhe Rate BRICBFRE FreightBI00 Dummy Non-Statistic BRB1BIC0 ICMS Rate BRICBIC1 ICMS Base Reduction BRIBBIC2 ICMS Other Base Flag BRICBIC3 ICMS Rate * Base BRIBBIC5 ICMS Rate * 10^n BRICBIC6 ICMS Base BRB1

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Condition Type Description Access SequenceBIC7 ICMS Exclude Base BRB1BIC9 ICMS Ind.Calc.Base BRIBBICA ICMS Ind.Calc.Base BRICBICB ICMS Ref BIC1 BRIBBICC ICMS Conv.100 Flag BRICBICD ICMS Ex.Base Con. BRB1BICE ICMS Con.Calc.Base BRIBBICF ICMS Other Base Flag BRICBICG ICMS Rate SF=ST BRIDBICH ICMS Rate SF=ST BRIDBICS ICMS Rate for ST BRIIBICX ICMS Exempt MWSTBICY ICMS Exempt Ref BICX MWSTBIF0 ICMS on Freight BRICBIFH ICMS Fr Rate SF=ST BRIDBIP0 IPI Rate BRIPBIP1 IPI Base Reduction BRIPBIP2 IPI Other Base Flag BRIPBIP3 IPI Rate * Base BRIPBIP4 IPI Rate Ref BIP0 BRIPBIP5 IPI Rate * 10^n BRIPBIP7 IPI Exclude Base In BRB1BIP9 IPI Calculation Base BRIPBIPA IPI Rate Ref BIP0 BRIPBIPB IPI Ref. Base BRIPBIPC IPI Other Base Flag BRIPBIPD IPI Exclude Base Co BRB1BIPE Calculate Excl./Oth. BRB1BIPP IPI Pauta Amount BRIPBIPS IPI -Split Vendor MWSTBIPT IPI -Split Vendor PO MWSTBIPU IPI -Split Vendor IV MWSTBIPX IPI Exempt MWSTBIPY IPI Exempt Ref BIPX MWSTBIS0 ISS Rate BRISBIS1 ISS Rate at Prov. BRS1BIS2 ISS Base at Prov. BRS1BIS3 ISS Law at Prov. BRS1BIS5 ISS Taxloc at Prov. BRS1BIS6 ISS WHT at Prov. BRS1BIS7 ISS Min WHT at Prov. BRS1BISA ISS Rate at Serv. BRS2BISB ISS Base at Serv. BRS2BISC ISS Law at Serv. BRS2BISE ISS Taxloc.at Serv. BRS2BISF ISS WHT at Serv. BRS2BISG ISS Min WHT at Serv. BRS2

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Condition Type Description Access SequenceBIZF Zona Franca BRTFBLCO Tax Laws for COFINS BRLOBLIC Tax Laws for ICMS BRLCBLIP Tax Laws for IPI BRLPBLPI Tax Laws for PIS BRLSBPI1 PIS Rate BRPIBPI2 PIS Base BRPIBPI3 PIS Rate 4 decimals BRPIBPI4 PIS Pauta Amt. 4 dec BRPIBPIP PIS Pauta Amount BRPIBSF0 Subtrib. Rate BRSTBSF1 ICMS Fr Rate SF=ST BRIDBST0 Subtrib. Rate BRSTBST1 Subtrib. Surch. Type BRSTBST2 Subtrib. Minprice BRSTBST3 Subtrib. Fix Price BRSTBST5 Subtrib Icms Rate BRSTBST6 Subtrib. Reduction 1 BRSTBST7 Subtrib. Reduction 2 BRSTBST8 Subtrib. Base Reduct BRSTBST9 Subtrib. Calc.Base BRSTBSTA Subtrib. Surch. Type BRSTBSTB Subtrib. Surch. Type BRSTBSTF Subtrib.MinPr.Factor BRSTBSTI S.T. MinPrBef.Surch. BRSTBSUB S.T. Base Modif.BW01 WHT Coll.Code Gen. BRWTBW02 WHT Rate Gen. BRWTBW11 WHT Coll.Code PIS BRWTBW12 WHT Rate PIS BRWTBW21 WHT Coll.Code COFINS BRWTBW22 WHT Rate COFINS BRWTBW31 WHT Coll.Code CSLL BRWTBW32 WHT Rate CSLL BRWTBW41 WHT Coll.Code IR BRWTBW42 WHT Rate IR BRWTBW51 BR WHT Base Amount BRWTBX01 BR Tax CalculationBX10 BR ICMS Normal BaseBX11 BR ICMS Excluded BseBX12 BR ICMS Other BaseBX13 BR ICMS AmountBX14 BR ICMS Freight BaseBX15 BRICMS Freight Amnt.BX16 BR ICMS RateBX17 BR ICMS Conhe BaseBX18 BR ICMS Conhe O. Bas

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Condition Type Description Access SequenceBX19 BR ICMS Conhe AmountBX1E BR ICMS Conhe E. BasBX20 BR IPI Normal BaseBX21 BR IPI Excluded BaseBX22 BR IPI Other BaseBX23 BR IPI AmountBX24 BR IPI Offset BaseBX25 BR IPI Offset AmountBX30 BR ICMS Comp. BaseBX31 BR ICMS Comp. Amnt.BX32 BR ICMS Comp. RateBX40 BR SubTrib BaseBX41 BR SubTrib AmountBX42 BR SubTrib Fr. BaseBX43 BR SubTrib Fr. AmntBX44 BRSubTrib NF RateBX45 BRSubTrib NF Basred1BX46 BRSubTrib NF RateBX47 BR SubTrib Conh BaseBX49 BR SubTrib Conh AmntBX4E BR SubTrib Conh EBasBX50 BR ISS BaseBX51 BR ISS AmountBX60 BR ISS Base ProvBX61 BR ISS ExBase ProvBX62 BR ISS Amount ProvBX63 BR ISS WTAmount ProvBX64 BR ISS WT Base ProvBX65 BR ISS WTExBase ProvBX6A BR ISS Base ServBX6B BR ISS ExBase ServBX6C BR ISS Amount ServBX6D BR ISS WTAmount ServBX6E BR ISS WT Base ServBX6F BR ISS WTExBase ServBX6O BR ISS Offset TxInclBX70 BR COFINS BaseBX71 BR COFINS Excl.BaseBX72 BR COFINS AmountBX73 BR COFINS Amount ResBX7O BR COFINS Off.TxInclBX7P BR COFINS Pauta Amt.BX7Q BR COFINS Pauta Amt.BX7R BR COFINS Res. BaseBX80 BR PIS BaseBX81 BR PIS Excl. BaseBX82 BR PIS Amount

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Condition Type Description Access SequenceBX83 BR PIS Amount Res.BX8O BR PIS Off.TxInclBX8P BR PIS Pauta AmountBX8Q BR PIS Pauta AmountBX8R BR PIS Res. BaseBXPA BR IPI Pauta AmountBXPO BR Caller = PO?BXWA BR WHT Base Amount BRB1BXWT BR WHT Base Amount BRB1BXZF BR ICMS Zona FrancaCIC1 Conhecimento ICMS MWSTCIC2 Conhe. ICMS Non.Ded. MWSTCIC3 Conhe. ICMS from SD MWSTCST1 Conhe. SubTrib MWSTCST2 Conhe. SubTr N.Deduc MWSTCST3 Conhe. SubTrib SD MWSTIC1C ICMS Ind.Clearing MWSTIC1O ICMS Ind.Clear.Off. MWSTICD0 ICMS DIFAL Pri MWSTICD1 ICMS DIFAL Asset MWSTICD2 ICMS DIFAL Asset Off MWSTICD3 ICMS DIFAL/CIAP/Asse MWSTICDF ICMS Deductibl-DIFAL MWSTICM0 ICMS NF Zero Line MWSTICM1 ICMS Industr. In MWSTICM2 ICMS Consumption In MWSTICM3 ICMS from SD Out MWSTICM4 ICMS Consum Outgoing MWSTICMF ICMS S.T. fr. Offset MWSTICML ICMS DIFAL Offs. Out MWSTICMM ICMS DIFAL Out MWSTICMO ICMS Ind.Clear.Off. MWSTICMP ICMS DIFAL Inv. Off. MWSTICMT ICMS DIFAL Investmen MWSTICMV ICMS DIFAL Con/Asset MWSTICMX ICMS Active MWSTICMY ICMS Active MWSTICMZ ICMS Active MWSTICN3 COFINS Normal Tax MWSTICO1 ICMS Compl. Transfer MWSTICO2 ICMS Compl. Tra Offs MWSTICO3 ICMS Compl. NVV MWSTICO4 ICMS Compl. NVV off MWSTICOA COFINS Normal PO/GR MWSTICOF COFINS Deductible MWSTICON COFINS Normal Tax MWSTICOO COFINS OffsetTaxIncl MWST

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Condition Type Description Access SequenceICOP ICMS Complement MWSTICOQ COFINS WHT Accum. MWSTICOR COFINS Diff Resale MWSTICOS COFINS Normal PO/GR MWSTICOT STO-ICMS Complement MWSTICOU Cofins IV Non Deduct MWSTICOV Cofins Offset MWSTICOW COFINS WHT MWSTICOX ICMS complement 100 MWSTICOZ COFINS WHT Offset MWSTICS1 Sub.Tributaria In MWSTICS2 S.T. Consumption In MWSTICS3 Sub.Tributaria Out MWSTICS4 S.T. Indus Not in NF MWSTICS5 S.T. Cons. Not in NF MWSTICS6 S.T. Cons.Offset MWSTICS7 S.T. Cons. Not in NF MWSTICS8 Transf S.T Retail BO MWSTICS9 S.T. Consumption In MWSTICSQ CSLL WHT - Accum. MWSTICSW CSLL WHT MWSTICSZ CSLL WHT Offset MWSTICW3 COFINS WHT SD MWSTICW5 COFINS WHT SD-Accum. MWSTICZ3 COFINS WHT Offset SD MWSTICZF ICMS Reverse (Z.F.) BRTFIFR1 ICMS on freight In MWSTIFR3 ICMS on freight Out MWSTIFS1 ICMS ST freight In MWSTIFS3 ICMS ST freight Out MWSTIGEQ General WHT-Accum. MWSTIGEW General WHT MWSTIGEZ General WHT Offset MWSTIGW3 General WHT SD MWSTIGW5 General WHT SD-Accum MWSTIGZ3 Genera WHT Offset SD MWSTIIRQ IR WHT-Accum. MWSTIIRW IR WHT MWSTIIRZ IR WHT Offset MWSTINSS INSS Incoming MWSTINSX INSS offset (100-) MWSTIP10 IPI Null Values NF MWSTIP11 IPI Industr. In MWSTIP12 IPI Consumption In MWSTIP13 IPI Consumption In MWSTIP1C IPI Ind.Clearing MWSTIP1O IPI Ind.Clear.Off. MWST

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Condition Type Description Access SequenceIPI0 IPI NF Zero Line MWSTIPI1 IPI Industr. In MWSTIPI2 IPI Consumption In MWSTIPI3 IPI from SD Out MWSTIPI4 IPI -Split Vendor MWSTIPI5 IPI Indus. non-dedu MWSTIPI6 IPI Consu. REF IPI2 MWSTIPIA IPI Industr. Out MWSTIPIB IPI Consum Out MWSTIPIO IPI Null Values NF MWSTIPIS PIS deductible MWSTIPIX IPI Active MWSTIPIY IPI Active MWSTIPIZ IPI Active MWSTIPS3 PIS Normal Tax MWSTIPSA PIS Normal PO/GR MWSTIPSN PIS NVV MWSTIPSO PIS Offset Tax Incl. MWSTIPSQ PIS WHT - Accum. MWSTIPSS PIS Nrmal PO/GR MWSTIPSU PIS Normal IV NVV MWSTIPSV Offset IPSS / IPSU MWSTIPSW PIS WHT MWSTIPSZ PIS WHT Offset MWSTIPW3 PIS WHT SD MWSTIPW5 PIS WHT SD - Accum. MWSTIPZ3 PIS WHT SD Offset MWSTIRD1 ICMS Reimbursement MWSTIRD2 ICMS Reimbur. Offset MWSTIRD3 SUBT Reimbursement MWSTIRD4 SUBT Reimbur. Offset MWSTIRD5 ICMS Reim.Offset NVV MWSTIRD6 SUBT Reim.Offset NVV MWSTIRW3 IR WHT SD MWSTIRW5 IR WHT SD-Accum. MWSTIRZ3 IR WHT SD Offset MWSTISA3 ISS at Provider SD MWSTISB3 ISS WHT at Prov. SD MWSTISE3 ISS at Serv.Loc. SD MWSTISF3 ISS WHT Srv.Loc. SD MWSTISS2 ISS from MM In MWSTISS3 ISS from SD Out MWSTISSA ISS at Provider MWSTISSB ISS WHT at Provider MWSTISSE ISS at Service Loc MWSTISSF ISS WHT at Serv. Loc MWSTISSG ISS Offset MWST

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Condition Type Description Access SequenceISSO ISS from SD Out MWSTISW3 CSLL WHT SD MWSTISW5 CSLL WHT SD - Accum. MWSTISZ3 CSLL WHT SD Offset MWSTIT01 ICMS Industr. In MWSTIT02 ICMS Industr. In MWSTIT03 ICMS Industr. In MWST

Condition types for application V (SD)5.1.4Condition Type Description Access SequenceBCO1 COFINS Rate BRCOBCO2 COFINS Base BRCOBCO3 COFINS Rate 4 Dec. BRCOBCO4 COFINS Pauta Amt4Dec BRCOBCOP COFINS Pauta Amount BRCOBCOZ BR COFINS WHT Offset IBRXBCSZ BR CSLL WHT Offset IBRXBGEZ BR GENERAL WHT Offst IBRXBI00 Dummy Non-Statistic IBRXBIRZ BR IR WHT Offset IBRXBPI1 PIS Rate BRPIBPI2 PIS Base BRPIBPI3 PIS Rate 4Dec. BRPIBPI4 PIS Pauta Amt 4 Dec. BRPIBPIP PIS Pauta Amount BRPIBPSZ BR PIS WHT Offset IBRXBW01 WHTColl.Code Gen. BRWTBW02 WHT Rate Gen. BRWTBW11 WHT Coll.Code PIS BRWTBW12 WHT Rate PIS BRWTBW21 WHT Coll.Code COFINS BRWTBW22 WHT Rate COFINS BRWTBW31 WHT Coll.Code CSLL BRWTBW32 WHT Rate CSLL BRWTBW41 WHT Coll.Code IR BRWTBW42 WHT Rate IR BRWTBW51 WHT Acc. Flag BRWTBX10 BR ICMS Normal BaseBX11 BR ICMS Excluded BseBX12 BR ICMS Other BaseBX13 BR ICMS Amount IBRXBX14 BR ICMS Freight BaseBX15 BRICMS Freight Amnt. IBRX

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Condition Type Description Access SequenceBX16 BR ICMS RateBX17 BR ICMS Conhe BaseBX19 BR ICMS Conhe Amount IBRXBX1E BR ICMS Conhe E. BasBX20 BR IPI Normal BaseBX21 BR IPI Excluded BaseBX22 BR IPI Other BaseBX23 BR IPI Amount IBRXBX24 BR IPI Offset BaseBX25 BR IPI Offset AmountBX40 BR SubTrib BaseBX41 BR SubTrib Amount IBRXBX42 BR SubTrib Fr. BaseBX43 BR SubTrib Fr. Amnt IBRXBX44 BRSubTrib NF RateBX45 BR SubTrib Basered1BX46 BR SubTrib Basered2BX47 BR SubTrib Conh BaseBX49 BR SubTri Conhe AmntBX4E BR SubTrib Conh EBasBX50 BR ISS BaseBX51 BR ISS Amount IBRXBX60 BR ISS Base ProvBX61 BR ISS ExBase ProvBX62 BR ISS Amount Prov IBRXBX63 BR ISS WTAmount Prov IBRXBX64 BR ISS WT Base ProvBX65 BR ISS WT ExBas ProvBX6A BR ISS Base ServBX6B BR ISS ExBase ServBX6C BR ISS Amount Serv IBRXBX6D BR ISS WTAmount Serv IBRXBX6E BR ISS WT Base ServBX6F BR ISS WT ExBas ServBX6O BR ISS offset IBRRBX70 BR COFINS BaseBX71 BR COFINS Excl. BaseBX72 BR COFINS Amount IBRXBX7O BR COFINS offset IBRRBX7P BR COFINS Pauta Amt.BX7Q BR COFINS Pauta Amt.BX80 BR PIS BaseBX81 BR PIS Excl. Base

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Condition Type Description Access SequenceBX82 BR PIS Amount IBRXBX8O BR PIS offset IBRRBX8P BR PIS Pauta Amt.BX8Q BR PIS Pauta Amt.BXPA BR IPI Pauta AmountBXWA BR WHT Acc Base Amt DIBRBXWT BR WHT Base AmountBXZF BR ICMS Zona FrancaCIC3 Conhecimento ICMSCICO Conhe. ICMS offset IBRRCONH ConhecimentoCST3 Conhe. SubTrib MWSTCSTO Conhe SubTrib offset IBRRDCOF COFINS Due DIBRDGTX General Taxability IBRXDICF Devido ICMS Freight DIBRDICM ICMS Due DIBRDIFF Rounding OffDIPI BR: IPI Due DIBRDISI ICMS s/IPI Due DIBRDISS ISS Due DIBRDIZF Zona Franca IZOFDPIS PIS Due DIBRDSUB Sub Trib Due DIBRDSUF SubTribFreight Due DIBRDWHT WHT Due DIBRI100 BR: ICMS Convenio100 ICVAIBRX Brazil tax calc. IBRXIC0X BR: ICMS 0 Excempt DIBRICBS ICMS Tax Base ICBSICF1 ICMS Conhe Base BRCCICF2 ICMS Conhe Rate BRCCICFR BR: ICMS on Freight ICVAICLW BR: ICMS Law ICLWICM3 ICMS from SDICMI Price+Tax (for NF)ICMO ICMS offset IBRRICN3 COFINS from SD MWSTICO2 COFINS Offset SD IBRRICOB BR: ICMS Other Base ICVAICOQ COFINS WHT Accum. IBRXICOW COFINS WHT IBRXICS3 Sub.Trib. from SD

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Condition Type Description Access SequenceICSO ISS offset IBRRICSQ CSLL WHT - Accum. IBRXICSW CSLL WHT IBRXICVA ICMS Tax Rate ICVAICW3 COFINS WHT SD MWSTICW5 COFINS WHT SD - Acc MWSTICW6 COFINS WHT code Acc J1AGICXC BR Cust ICMS Exempt ICXCICZ3 COFINS WHT SD Offset IBRRICZF ADMS Disc. Zona Fr. IZOFIDZF BR: ICMS Discount ZF IDZFIFR3 ICMS on freight SDIFS3 ICMS ST freight SDIGEQ General WHT - Accum IBRXIGEW General WHT IBRXIGW3 General WHT SD MWSTIGW5 General WHT SD - Acc MWSTIGW6 General WHT code Acc J1AGIGZ3 Genera WHT SD Offset IBRRIIRQ IR WHT - Accum. IBRXIIRW IR WHT IBRXIP0X BR: IPI 0 Excempt DIBRIPBS IPI Tax Base IPBSIPI3 IPI from SDIPIO IPI offset IBRRIPIP BR: IPI Pauta IPVAIPLW BR: IPI Law IPLWIPOB BR: IPI Other Base IPVAIPS2 PIS Offset SD IBRRIPS3 PIS Normal Tax MWSTIPSQ PIS WHT - Accum. IBRXIPSW PIS WHT IBRXIPVA IPI Tax Rate IPVAIPW3 PIS WHT SD MWSTIPW5 PIS WHT SD - Acc MWSTIPW6 PIS WHT code Acc J1AGIPXC BR Cust IPI Exempt IPXCIPZ3 PIS WHT SD Offset IBRRIRW3 IR WHT SD MWSTIRW5 IR WHT SD - Acc MWSTIRW6 IR WHT code Acc J1AGIRZ3 IR WHT SD Offset IBRRISA3 ISS at Provider SD MWST

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Condition Type Description Access SequenceISB3 ISS WHT at Prov. SD MWSTISE3 ISS at Serv.Loc. SD MWSTISF3 ISS WHT Srv.Loc. SD MWSTISIC ICMS Rate SF=ST ISTCISS3 ISS from SDISSA ISS at Provider MWSTISSB ISS WHT at Provider MWSTISSC ISS WHT Off. Prov. MWSTISSD ISS WHT Again Prov. MWSTISSE ISS at Serv.Loc. MWSTISSF ISS WHT at Serv.Loc. MWSTISSG ISS WHT Off. SrvLoc MWSTISSH ISS WHT Again SrvLoc MWSTIST2 BR: Sub.Trib Base 2 ISTVISTB Sub. Trib Base Value ISTVISTC Subtrib. Base Reduct ISTVISTD ICMS Rate for ST ISTIISTF BR: Sub.Trib FixPric ISTVISTI S.T. MinPrBef.Surch. ISTVISTM BR: Sub.Trib MinPric ISTVISTN Subtrib.MinPr.Factor ISTVISTS Subtrib Surcharge ISTVISTT BR: Sub.Trib SurType ISTVISVA BR: ISS Amount ISVAISVB ISS Rate at Prov. ISS1ISVC ISS Base at Prov. ISS1ISVD ISS Law at Prov. ISS1ISVE IPI from SD ISS1ISVF ISS TaxLoc at Prov. ISS1ISVG ISS WHT at Prov. ISS1ISVH ISS Min WHT at Prov. ISS1ISVN ISS Rate at Serv. ISS2ISVO ISS Base at Serv. ISS2ISVP ISS Law at Serv. ISS2ISVQ ISS Ins. Cal at Serv ISS2ISVR ISS TaxLoc at Serv. ISS2ISVS ISS WHT at Serv. ISS2ISVT ISS Min WHT at Serv. ISS2ISW3 CSSL WHT SD MWSTISW5 CSLL WHT SD - Acc MWSTISW6 CSLL WHT code Acc J1AGISZ3 CSLL WHT SD Offset IBRRWCOC BR COFINS WHT Code J1AG

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Condition Type Description Access SequenceWCSC BR CSLL WHT Code J1AGWGEC BR General WHT Code J1AGWIRC BR IR WHT Code J1AGWISC BR ISS WHT Code J1AGWPIC BR PIS WHT Code J1AG

Tax calculation procedure TAXBRA5.1.5The 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 isZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM.

Details about the structure of the tax calculation procedure TAXBRA can be found in the section4.2.12.1.

In order to make the identification of rows relating to special functionalities easier, they are highlightedas 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 theyare not included in the BC set. These refer to condition value formulas, which are required forwithholding taxes with and without accumulation (note 916003). The condition value formulasmust be defined and assigned to the respective steps in the calculation procedure by the cus-tomer.

Step Description Cond.Type

FromStep

ToStep

SubTot.

Stat. Alt.Calc.Type

Alt.CBV

Acc.Key

1 First line: zero 0 0 X 0 010 Base Amount BASB 0 0 1 0 011 Tax-relev. conditions: 1 0 X 0 012 Discounting BDIS 0 0 X 320 16013 Freight BFRE 0 0 X 320 16014 S.T. Base Modif. BSUB 0 0 X 320 16015 Calling Application: 1 0 X 0 016 Determine calling applica-

tion:1 0 X 0 0

17 BR Caller = PO? BXPO 0 0 X 0 16019 Read tax data: 1 0 X 0 020 ICMS 1 0 X 0 021 ICMS Rate BIC0 0 0 X 0 16022 ICMS Base Reduction BIC1 0 0 X 0 16023 ICMS Other Base Flag BIC2 0 0 X 0 16024 ICMS Exempt BICX 0 0 X 0 16025 Convenio 100 B100 0 0 X 0 16026 Tax Laws for ICMS BLIC 0 0 X 0 16027 ICMS Rate SF=ST BICH 0 0 X 0 16028 ICMS Rate for ST BICS 0 0 X 0 160

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FromStep

ToStep

SubTot.

Stat. Alt.Calc.Type

Alt.CBV

Acc.Key

30 ICMS Complement 1 0 X 0 031 ICMS Complement Base BCI1 0 0 X 0 16032 ICMS Complem. Exempt BCI2 0 0 X 0 16040 ICMS on Freight 1 0 X 0 041 ICMS on Freight BIF0 0 0 X 0 16042 ICMS Fr Rate SF=ST BIFH 0 0 X 0 16043 ICMS Conhe Base BFI1 0 0 X 0 16044 ICMS Conhe Rate BFI2 0 0 X 0 16050 IPI 1 0 X 0 051 IPI Rate BIP0 0 0 X 0 16052 IPI Base Reduction BIP1 0 0 X 0 16053 IPI Other Base Flag BIP2 0 0 X 0 16054 IPI Pauta Amount BIPP 0 0 X 0 055 IPI Exempt BIPX 0 0 X 0 16056 Tax Laws for IPI BLIP 0 0 X 0 16060 ISS 1 0 X 0 061 ISS Rate BIS0 0 0 X 0 16070 Sub.Trib. 1 0 X 0 071 Subtrib. Rate BST0 0 0 X 0 16072 Subtrib. Surch. Type BST1 0 0 X 0 16073 Subtrib. Minprice BST2 0 0 X 0 074 Subtrib. Fix Price BST3 0 0 X 0 075 Subtrib. Reduction 1 BST6 0 0 X 0 16076 Subtrib. Reduction 2 BST7 0 0 X 0 16077 Subtrib. Base Reduct BST8 0 0 X 0 16078 Subtrib.MinPr.Factor BSTF 0 0 X 0 16079 S.T. MinPrBef.Surch. BSTI 0 0 X 0 16080 ISS New 2004: 1 0 X 0 081 ISS Rate at Prov. BIS1 0 0 X 0 16082 ISS Base at Prov. BIS2 0 0 X 0 16083 ISS Law at Prov. BIS3 0 0 X 0 16085 ISS Taxloc at Prov. BIS5 0 0 X 0 16086 ISS WHT at Prov. BIS6 0 0 X 0 16087 ISS Min WHT at Prov. BIS7 0 0 X 0 16090 **** Zona Franca **** 1 0 X 0 091 ISS Rate at Serv. BISA 0 0 X 0 16092 ISS Base at Serv. BISB 0 0 X 0 16093 ISS Law at Serv. BISC 0 0 X 0 16095 ISS Taxloc.at Serv. BISE 0 0 X 0 16096 ISS WHT at Serv. BISF 0 0 X 0 16097 ISS Min WHT at Serv. BISG 0 0 X 0 160

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FromStep

ToStep

SubTot.

Stat. Alt.Calc.Type

Alt.CBV

Acc.Key

110 PIS, COFINS 1 0 X 0 0111 COFINS Rate BCO1 0 0 X 342 160112 COFINS Rate 4 dec. BCO3 0 0 X 343 160113 COFINS Pauta Amount BCOP 0 0 X 343 0114 COFINS Pauta Amt. 4d BCO4 0 0 X 343 0115 COFINS Base BCO2 0 0 X 0 160116 Tax Laws for COFINS BLCO 0 0 X 0 160121 PIS Rate BPI1 0 0 X 342 160122 PIS Rate 4 decimals BPI3 0 0 X 343 160123 PIS Pauta Amount BPIP 0 0 X 343 0124 PIS Pauta Amt. 4 dec BPI4 0 0 X 343 0125 PIS Base BPI2 0 0 X 0 160126 Tax Laws for PIS BLPI 0 0 X 0 160190 Call Tax Calculation: 1 0 X 0 0191 BR Tax Calculation BX01 10 0 X 320 0200 Tax Results: 1 0 X 0 0210 BR ICMS Normal Base BX10 0 0 X 320 0215 BR ICMS Excluded Bse BX11 0 0 X 320 0220 BR ICMS Other Base BX12 0 0 X 320 0221 BR ICMS Conhe Base BX17 0 0 X 320 0222 BR ICMS Conhe O. Bas BX18 0 0 X 320 0223 BR ICMS Conhe E. Bas BX1E 0 0 X 320 0225 BR ICMS Amount BX13 0 0 X 320 0226 BR ICMS Zona Franca BXZF 0 0 X 320 0227 BR ICMS Rate BX16 0 0 X 320 0228 BR ICMS Conhe Amount BX19 0 0 X 320 0230 BR IPI Normal Base BX20 0 0 X 320 0235 BR IPI Excluded Base BX21 0 0 X 320 0240 BR IPI Other Base BX22 0 0 X 320 0245 BR IPI Amount BX23 0 0 X 320 0246 BR IPI Offset Base BX24 0 0 X 320 0247 BR IPI Offset Amount BX25 0 0 X 320 0248 BR IPI Pauta Amount BXPA 0 0 X 320 0250 BR ICMS Comp. Base BX30 0 0 X 320 0255 BR ICMS Comp. Amnt. BX31 0 0 X 320 0256 BR ICMS Comp. Rate BX32 0 0 X 320 0260 BR SubTrib Base BX40 0 0 X 320 0265 BR SubTrib Amount BX41 0 0 X 320 0270 BR SubTrib Fr. Base BX42 0 0 X 320 0275 BR SubTrib Fr. Amnt BX43 0 0 X 320 0277 BRSubTrib NF Rate BX44 0 0 X 320 0

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FromStep

ToStep

SubTot.

Stat. Alt.Calc.Type

Alt.CBV

Acc.Key

280 BR ICMS Freight Base BX14 0 0 X 320 0285 BRICMS Freight Amnt. BX15 0 0 X 320 0286 BR SubTrib Conh EBas BX4E 0 0 X 320 0287 BR SubTrib Conh Base BX47 0 0 X 320 0289 BR SubTrib Conh Amnt BX49 0 0 X 320 0290 BR ISS Base BX50 0 0 X 320 0295 BR ISS Amount BX51 0 0 X 320 0300 BR ISS Base Prov BX60 0 0 X 320 0301 BR ISS ExBase Prov BX61 0 0 X 320 0305 BR ISS Amount Prov BX62 0 0 X 320 0310 BR ISS WTAmount Prov BX63 0 0 X 320 0311 BR ISS WT Base Prov BX64 0 0 X 320 0312 BR ISS WTExBase Prov BX65 0 0 X 320 0315 BR ISS Base Serv BX6A 0 0 X 320 0316 BR ISS ExBase Serv BX6B 0 0 X 320 0320 BR ISS Amount Serv BX6C 0 0 X 320 0325 BR ISS WTAmount Serv BX6D 0 0 X 320 0330 BR ISS WT Base Serv BX6E 0 0 X 320 0335 BR ISS WTExBase Serv BX6F 0 0 X 320 0339 BR ISS Offset TxIncl BX6O 0 0 X 320 0350 BR COFINS Base BX70 0 0 X 320 0351 BR COFINS Excl.Base BX71 0 0 X 320 0355 BR COFINS Amount BX72 0 0 X 320 0360 BR COFINS Off.TxIncl BX7O 0 0 X 320 0361 BR COFINS Amount Res BX73 0 0 X 320 0362 BR COFINS Res. Base BX7R 0 0 X 320 0365 BR COFINS Pauta Amt. BX7P 0 0 X 320 0366 BR COFINS Pauta Amt. BX7Q 0 0 X 320 0370 BR PIS Base BX80 0 0 X 320 0371 BR PIS Excl. Base BX81 0 0 X 320 0375 BR PIS Amount BX82 0 0 X 320 0380 BR PIS Off.TxIncl BX8O 0 0 X 320 0381 BR PIS Amount Res. BX83 0 0 X 320 0382 BR PIS Res. Base BX8R 0 0 X 320 0385 BR PIS Pauta Amount BX8P 0 0 X 320 0386 BR PIS Pauta Amount BX8Q 0 0 X 320 0400 Tax Code Conditions: 1 0 X 0 0405 IPI NF Zero Line IPI0 245 0 X 0 0 VST406 ICMS NF Zero Line ICM0 225 0 X 0 0 VST410 IPI Industr. In IPI1 245 0 1 0 0 IPI412 IPI -Split Vendor IPI4 247 0 1 0 0 NVV

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FromStep

ToStep

SubTot.

Stat. Alt.Calc.Type

Alt.CBV

Acc.Key

415 ICMS Industr. In ICM1 225 0 1 0 0 ICM416 ICMS DIFAL Con/Asset ICMV 225 0 1 0 0 ICD417 ICMS DIFAL Investmen ICMT 225 0 1 0 0 ICD418 ICMS DIFAL Inv. Off. ICMP 417 0 1 0 164 ICC419 Conhecimento ICMS CIC1 228 0 1 0 0 ICM420 Sub.Tributaria In ICS1 265 0 0 0 ICS425 ICMS S.T. fr. Offset ICMF 225 0 1 0 164 IC1430 ICMS on freight In IFR1 285 0 1 0 0 ICM435 ICMS ST freight In IFS1 275 0 0 0 ICS436 Conhe. SubTrib CST1 289 0 0 0 ICS440 IPI Ind.Clearing IP1C 245 0 1 0 0 IPC445 IPI Ind.Clear.Off. IP1O 245 0 1 0 164 IPC450 ICMS Ind.Clearing IC1C 225 0 1 0 0 ICC455 ICMS Ind.Clear.Off. IC1O 225 0 1 0 164 ICC480 ICMS Compl. Transfer ICO1 255 0 1 0 0 ICP481 ICMS Compl. Tra Offs ICO2 480 0 1 0 164 ICX482 ICMS Compl. NVV ICO3 255 0 1 0 0 NVV483 ICMS Compl. NVV off ICO4 482 0 1 0 164 ICX510 IPI Consumption In IPI2 245 0 1 0 0 NVV515 ICMS Consumption In ICM2 225 0 1 0 0 NVV517 Conhe. ICMS Non.Ded. CIC2 228 0 1 0 0 NVV520 S.T. Consumption In ICS2 265 0 0 0 NVV521 Conhe. SubTr N.Deduc CST2 289 0 0 0 NVV525 ICMS Complement ICOP 255 0 1 0 0 ICP530 STO-ICMS Complement ICOT 255 0 1 0 0 ICP535 ICMS complement 100 ICOX 525 0 1 0 164 ICX555 ISS from MM In ISS2 295 0 1 0 0 IC1560 ISS from SD Out ISSO 555 0 1 0 164 MW4610 IPI from SD Out IPI3 245 0 1 0 0 MW1615 ICMS from SD Out ICM3 225 0 1 0 0 MW2616 ICMS DIFAL Out ICMM 225 0 1 0 0 MW2617 ICMS DIFAL Offs. Out ICML 616 0 1 0 164 ICC618 Conhe. ICMS from SD CIC3 228 0 1 0 0 MW2620 Sub.Tributaria Out ICS3 265 0 0 0 MW3621 Conhe. SubTrib SD CST3 289 0 1 0 0 MW2625 ISS from SD Out ISS3 295 0 1 0 0 MW4630 ICMS Reverse (Z.F.) ICZF 225 0 1 0 164 ICZ640 ICMS on freight Out IFR3 285 0 1 0 0 MW3645 ICMS ST freight Out IFS3 275 0 0 0 MW3650 ICMS Consum Outgoing ICM4 225 0 1 0 0 MW2680 INSS Incoming INSS 10 0 1 0 0 VST

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FromStep

ToStep

SubTot.

Stat. Alt.Calc.Type

Alt.CBV

Acc.Key

685 INSS offset (100-) INSX 680 0 1 0 164 INX710 ICMS Reimbursement IRD1 10 0 1 0 0 IR1715 ICMS Reimbur. Offset IRD2 710 0 1 0 0 IR2720 SUBT Reimbursement IRD3 10 0 1 0 0 IR3725 SUBT Reimbur. Offset IRD4 720 0 1 0 0 IR4730 ICMS Reim.Offset NVV IRD5 10 0 1 0 0 NVV735 SUBT Reim.Offset NVV IRD6 10 0 1 0 0 NVV750 ISS 1 0 X 0 0755 ISS at Provider ISSA 305 0 1 0 0 NVV760 ISS WHT at Provider ISSB 310 0 1 0 0 ISW765 ISS at Service Loc ISSE 320 0 1 0 0 NVV770 ISS WHT at Serv. Loc ISSF 325 0 1 0 0 ISW775 ISS Offset ISSG 339 0 1 0 0 NVV779 PIS/COFINS non deductible 1 0 X 0 0780 COFINS Normal Tax ICON 355 0 1 0 0 NVV782 COFINS OffsetTaxIncl ICOO 360 0 1 0 0 NVV784 PIS Normal Tax IPSN 375 0 1 0 0 NVV786 PIS Offset Tax Incl. IPSO 380 0 1 0 0 NVV789 PIS/COFINS deductible 1 0 X 0 0790 COFINS Deductible ICOF 355 0 X 0 0 VST791 PIS deductible IPIS 375 0 X 0 0 VST792 Cofins Offset ICOV 360 0 1 0 164 CO3793 COFINS Normal PO/GR ICOS 360 0 1 0 0 CO3794 Cofins IV Non Deduct ICOU 360 0 1 0 0 NVV795 COFINS Normal PO/GR ICOA 355 360 1 0 0 CO3796 Offset IPSS / IPSU IPSV 380 0 1 0 164 PI3797 PIS Nrmal PO/GR IPSS 380 0 1 0 0 PI3798 PIS Normal IV NVV IPSU 380 0 1 0 0 NVV799 PIS Normal PO/GR IPSA 375 380 1 0 0 PI3900 Withholding Taxes 1 0 X 0 0904 WHT Coll.Code Gen. BW01 0 0 X 0 5905 WHT Rate Gen. BW02 0 0 X 0 5909 WHT Coll.Code PIS BW11 0 0 X 0 5910 WHT Rate PIS BW12 0 0 X 0 5914 WHT Coll.Code COFINS BW21 0 0 X 0 5915 WHT Rate COFINS BW22 0 0 X 0 5919 WHT Coll.Code CSLL BW31 0 0 X 0 5920 WHT Rate CSLL BW32 0 0 X 0 5924 WHT Coll.Code IR BW41 0 0 X 0 5925 WHT Rate IR BW42 0 0 X 0 5940 BR WHT Base Amount BW51 0 0 2 X 0 160

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FromStep

ToStep

SubTot.

Stat. Alt.Calc.Type

Alt.CBV

Acc.Key

945 BR WHT Base Amount BXWT 0 0 X 900(*) 5946 BR WHT Base Amount BXWA 0 0 X 901(*) 5950 COFINS WHT ICOW 915 0 900(*) 0 WTC951 COFINS WHT Accum. ICOQ 915 0 901(*) 0 WAC952 COFINS WHT Offset ICOZ 950 951 0 164 NVV955 PIS WHT IPSW 910 0 900(*) 0 WTP956 PIS WHT - Accum. IPSQ 910 0 901(*) 0 WAP957 PIS WHT Offset IPSZ 955 956 0 164 NVV960 CSLL WHT ICSW 920 0 900(*) 0 WTS961 CSLL WHT - Accum. ICSQ 920 0 901(*) 0 WAS962 CSLL WHT Offset ICSZ 960 961 0 164 NVV965 IR WHT IIRW 925 0 900(*) 0 WTI966 IR WHT-Accum. IIRQ 925 0 901(*) 0 WAI967 IR WHT Offset IIRZ 965 966 0 164 NVV970 General WHT IGEW 905 0 900(*) 0 WTG971 General WHT-Accum. IGEQ 905 0 901(*) 0 WAG972 General WHT Offset IGEZ 970 971 0 164 NVV981 355 0 E X 0 0982 361 0 D X 0 0986 375 0 E X 0 0987 0 0 D X 0 0998 COFINS Diff Resale ICOR 0 0 12 0 NVV999 Dummy Non-Statistic BI00 0 0 0 163 IPI

Pricing procedure RVABRA5.1.6The 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 isZCSC_BR_CBT_RVABRA_CALC_PROCD_SD.

Details about the structure of the tax calculation procedure RVABRA can be found in the section4.2.12.2.

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 procedureand adapt it according to your business needs. To avoid a too long pricing procedure, which couldhave negative effects on the system performance, you could delete the rows, which are not needed inyour company, from the pricing procedure. For example, if you do not sell services, you do not needthe ISS rows from the pricing procedure RVABRA.

The pricing procedure RVABRA displayed here and contained in the BC set refers to the requirementsfrom 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 accumulationon the outgoing side applies only to a limited group of services and it impacts only a limited number ofcompanies. 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 isdisplayed 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 highlightedas 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 CondType

FromStep

ToStep

SubTot.

Stat. Alt. Calc.Type

Alt.CBV

Acc.Key

1 **** Zero **** 0 0 X 0 010 Price PR00 0 0 0 050 Discount (Value) RB00 0 0 0 0198 Net Base 0 0 0 0199 General Taxability DGTX 0 0 X 0 160200 ICMS Due DICM 0 0 X 0 160201 ICMS Tax Rate ICVA 0 0 X 0 160202 ICMS Tax Base ICBS 0 0 X 0 160203 BR: ICMS Other Base ICOB 0 0 X 0 160204 BR: ICMS 0 Excempt IC0X 0 0 X 0 160205 BR: ICMS Convenio100 I100 0 0 X 0 160206 BR: ICMS Law ICLW 0 0 X 0 160207 ICMS Rate SF=ST ISIC 0 0 X 0 160208 ICMS Rate for ST ISTD 0 0 X 0 160209 BR Cust ICMS Exempt ICXC 0 0 X 0 160210 Zona Franca DIZF 0 0 X 0 160220 Devido ICMS Freight DICF 0 0 X 0 160221 BR: ICMS on Freight ICFR 0 0 X 0 160222 Conhecimento CONH 0 0 X 0 160223 ICMS Conhe Base ICF1 0 0 X 0 160224 ICMS Conhe Rate ICF2 0 0 X 0 160230 ICMS s/IPI Due DISI 0 0 X 0 160240 BR: IPI Due DIPI 0 0 X 0 160241 IPI Tax Rate IPVA 0 0 X 0 160242 IPI Tax Base IPBS 0 0 X 0 160243 BR: IPI Other Base IPOB 0 0 X 0 160244 BR: IPI Pauta IPIP 0 0 X 0 0245 BR: IPI 0 Excempt IP0X 0 0 X 0 160246 BR: IPI Law IPLW 0 0 X 0 160247 BR Cust IPI Exempt IPXC 0 0 X 0 160248 COFINS Due DCOF 0 0 X 0 160249 COFINS Rate BCO1 0 0 X 342 160250 COFINS Rate 4 Dec. BCO3 0 0 X 343 160251 COFINS Pauta Amount BCOP 0 0 X 343 0

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FromStep

ToStep

SubTot.


Alt.CBV

Acc.Key

252 COFINS Pauta Amt4Dec BCO4 0 0 X 343 0253 COFINS Base BCO2 0 0 X 0 160254 PIS Due DPIS 0 0 X 0 160255 PIS Rate BPI1 0 0 X 342 160256 PIS Rate 4Dec. BPI3 0 0 X 343 160257 PIS Pauta Amount BPIP 0 0 X 343 0258 PIS Pauta Amt 4 Dec. BPI4 0 0 X 343 0259 PIS Base BPI2 0 0 X 0 160260 ISS Due DISS 0 0 X 0 160261 BR: ISS Amount ISVA 0 0 X 0 160265 ISS New 2004 1 0 X 0 0266 ISS Rate at Prov. ISVB 0 0 X 0 160267 ISS Base at Prov. ISVC 0 0 X 0 160268 ISS Law at Prov. ISVD 0 0 X 0 160269 IPI from SD ISVE 0 0 X 0 160270 ISS TaxLoc at Prov. ISVF 0 0 X 0 160271 ISS WHT at Prov. ISVG 0 0 X 0 160272 ISS Min WHT at Prov. ISVH 0 0 X 0 160273 ISS Rate at Serv. ISVN 0 0 X 0 160274 ISS Base at Serv. ISVO 0 0 X 0 160275 ISS Law at Serv. ISVP 0 0 X 0 160276 ISS Ins. Cal at Serv ISVQ 0 0 X 0 160277 ISS TaxLoc at Serv. ISVR 0 0 X 0 160278 ISS WHT at Serv. ISVS 0 0 X 0 160279 ISS Min WHT at Serv. ISVT 0 0 X 0 160280 Sub Trib Due DSUB 0 0 X 0 160281 Subtrib Surcharge ISTS 0 0 X 0 160282 BR: Sub.Trib SurType ISTT 0 0 X 0 160283 BR: Sub.Trib MinPric ISTM 0 0 X 0 160284 BR: Sub.Trib FixPric ISTF 0 0 X 0 0285 Sub. Trib Base Value ISTB 0 0 X 0 160286 BR: Sub.Trib Base 2 IST2 0 0 X 0 160287 Subtrib. Base Reduct ISTC 0 0 X 0 160288 Subtrib.MinPr.Factor ISTN 0 0 X 0 160289 S.T. MinPrBef.Surch. ISTI 0 0 X 0 160290 SubTribFreight Due DSUF 0 0 X 0 160300 Price+Tax (for NF) ICMI 0 0 320 0 ERL310 **** Modify Base **** 1 0 X 0 0320 Material K004 0 0 0 0 ERS321 Customer Discount K007 0 0 0 0 ERS322 Customer/Material K005 0 0 0 0 ERS

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FromStep

ToStep

SubTot.


Alt.CBV

Acc.Key

400 Freight KF00 0 0 0 0 ERF600 Brazil tax calc. IBRX 300 599 X 320 0610 BR ICMS Normal Base BX10 0 0 X 320 0612 BR ICMS Excluded Bse BX11 0 0 X 320 0614 BR ICMS Other Base BX12 0 0 X 320 0615 BR ICMS Conhe Base BX17 0 0 X 320 0616 BR ICMS Amount BX13 0 0 320 0 MW2617 BR ICMS Zona Franca BXZF 0 0 320 0 MWS618 BR ICMS Freight Base BX14 0 0 X 320 0619 BR ICMS Conhe E. Bas BX1E 0 0 X 320 0620 BRICMS Freight Amnt. BX15 0 0 320 0 MW3622 BR ICMS Rate BX16 0 0 X 320 0623 BR ICMS Conhe Amount BX19 0 0 320 0 MW2624 BR IPI Normal Base BX20 0 0 X 320 0626 BR IPI Excluded Base BX21 0 0 X 320 0628 BR IPI Other Base BX22 0 0 X 320 0630 BR IPI Amount BX23 0 0 320 0 MW1632 BR IPI Offset Base BX24 0 0 X 320 0634 BR IPI Offset Amount BX25 0 0 X 320 0636 BR SubTrib Base BX40 0 0 X 320 0637 BR SubTrib Conh Base BX47 0 0 X 320 0638 BR SubTrib Amount BX41 0 0 320 0 MW3639 BR SubTrib Conh Ebas BX4E 0 0 X 320 0640 BR SubTrib Fr. Base BX42 0 0 X 320 0642 BR SubTrib Fr. Amnt BX43 0 0 320 0 MW3644 BRSubTrib NF Rate BX44 0 0 X 320 0645 BR SubTri Conhe Amnt BX49 0 0 320 0 MW3646 BR ISS Base BX50 0 0 X 320 0647 BR SubTrib Basered1 BX45 0 0 X 320 0648 BR SubTrib Basered2 BX46 0 0 X 320 0650 BR IPI Pauta Amount BXPA 0 0 1 320 0 MW1652 BR ISS Base Prov BX60 0 0 X 320 0653 BR ISS ExBase Prov BX61 0 0 X 320 0654 BR ISS WT Base Prov BX64 0 0 X 320 0655 BR ISS WT ExBas Prov BX65 0 0 X 320 0656 BR ISS Base Serv BX6A 0 0 X 320 0657 BR ISS ExBase Serv BX6B 0 0 X 320 0658 BR ISS WT Base Serv BX6E 0 0 X 320 0659 BR ISS WT ExBas Serv BX6F 0 0 X 320 0660 BR ISS Amount BX51 0 0 1 320 0 MW4661 BR ISS Amount Prov BX62 0 0 1 320 0 MW4

20.12.2012



FromStep

ToStep

SubTot.


Alt.CBV

Acc.Key

662 BR ISS WTAmount Prov BX63 0 0 1 320 0 WK3663 BR ISS Amount Serv BX6C 0 0 1 320 0 MW4664 BR ISS WTAmount Serv BX6D 0 0 1 320 0 WK3665 BR ISS offset BX6O 660 664 1 0 0 BRI666 BR COFINS Base BX70 0 0 X 320 0667 BR COFINS Excl. Base BX71 0 0 X 320 0668 BR COFINS Amount BX72 0 0 1 320 0 COF669 BR COFINS Pauta Amt. BX7P 0 0 X 320 0670 BR COFINS Pauta Amt. BX7Q 0 0 X 320 0672 BR COFINS offset BX7O 668 668 1 0 0 ERL675 BR PIS Base BX80 0 0 X 320 0677 BR PIS Excl. Base BX81 0 0 X 320 0679 BR PIS Amount BX82 0 0 1 320 0 PIS680 BR PIS Pauta Amt. BX8P 0 0 X 320 0681 BR PIS Pauta Amt. BX8Q 0 0 X 320 0683 BR PIS offset BX8O 679 679 1 0 0 ERL700 **** Tax Code Conditions **** 1 0 0 0702 IPI from SD IPI3 1 0 X 0 0704 ICMS from SD ICM3 1 0 X 0 0706 Sub.Trib. from SD ICS3 1 0 X 0 0708 ISS from SD ISS3 1 0 X 0 0710 ADMS Disc. Zona Fr. ICZF 1 0 X 0 0712 ICMS on freight SD IFR3 1 0 X 0 0714 ICMS ST freight SD IFS3 1 0 X 0 0715 ISS at Provider ISSA 1 0 X 0 0715 ISS WHT at Provider ISSB 1 0 X 0 0715 ISS WHT Off. Prov. ISSC 1 0 X 0 0715 ISS WHT Again Prov. ISSD 1 0 X 0 0715 ISS at Serv.Loc. ISSE 1 0 X 0 0715 ISS WHT at Serv.Loc. ISSF 1 0 X 0 0715 ISS WHT Off. SrvLoc ISSG 1 0 X 0 0715 ISS WHT Again SrvLoc ISSH 1 0 X 0 0716 Conhecimento ICMS CIC3 1 0 X 0 0717 Conhe. SubTrib CST3 1 0 X 0 0719 Total Tax 702 718 0 0720 ICMS offset ICMO 616 0 0 0 BRI721 Conhe. ICMS offset CICO 623 0 0 0 BRI722 Conhe SubTrib offset CSTO 645 0 0 0 BRI740 Rounding Off DIFF 0 0 16 4 ERS750 Net Value + Tax 0 0 4 0800 Cash Discount SKTO 0 0 X 0 11

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FromStep

ToStep

SubTot.


Alt.CBV

Acc.Key

810 Internal price VPRS 0 0 B X 0 0899 WITHHOLDING TAXES ON

GROSS1 0 X 0 0

900 BR General WHT Code WGEC 0 0 X 0 0901 BR PIS WHT Code WPIC 0 0 X 0 0902 BR COFINS WHT Code WCOC 0 0 X 0 0903 BR CSLL WHT Code WCSC 0 0 X 0 0904 BR IR WHT Code WIRC 0 0 X 0 0905 BR ISS WHT Code WISC 0 0 X 0 0910 BR WHT Base Amount BXWT 0 0 X 0 5912 WHT Due DWHT 0 0 X 0 160915 WHTColl.Code Gen. BW01 0 0 X 0 5916 WHT Rate Gen. BW02 0 0 0 5 WG3920 WHT Coll.Code PIS BW11 0 0 X 0 5921 WHT Rate PIS BW12 0 0 0 5 WP3925 WHT Coll.Code COFINS BW21 0 0 X 0 5926 WHT Rate COFINS BW22 0 0 0 5 WC3930 WHT Coll.Code CSLL BW31 1 0 X 0 0931 WHT Rate CSLL BW32 0 0 0 5 WS3935 WHT Coll.Code IR BW41 1 0 X 0 0936 WHT Rate IR BW42 0 0 0 5 WI3960 BR GENERAL WHT Offst BGEZ 916 0 0 164 WG4965 BR PIS WHT Offset BPSZ 921 0 0 164 WP4970 BR COFINS WHT Offset BCOZ 926 0 0 164 WC4975 BR CSLL WHT Offset BCSZ 931 0 0 164 WS4980 BR IR WHT Offset BIRZ 936 0 0 164 WI4999 Dummy Non-Statistic BI00 1 0 X 0 0

RVABRA with withholding tax accumulation


FromStep

ToStep

SubTot.

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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FromStep

ToStep

SubTot.

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 0 900

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

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 configurationTax codes for both MM and SD can be created or changed in the Tax Manager’s Workplace in themenu path Tax Calculation > Tax Codes MM or Tax Codes SD. You need to select one tax code andthen 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-deductible5.2.1

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-deductible5.2.2


X IPSN PIS NVV Normal Tax PIS NVV

X IPSO PIS NVV Offset Tax Included PIS NVV

To activate COFINS deductible5.2.3


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 deductible5.2.4


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 taxes5.2.5


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 ISS5.2.6


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 calculationIf you want to use the condition-based tax calculation after some tax Customizing has already beencarried 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 beused 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 taxrates.

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

Any change to tax settings in an already productive system is a very critical change, which requiresspecial caution. The process of defining the condition types and the other condition-based settingsrequired 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 inthe section 5.3.2.

20.12.2012


Instead we recommend that you analyze your current system settings in detail and define the rightstrategy 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 records5.3.1By 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 bestarted. There, you check if all entries are successfully converted.

5.3.1.1 Check conditionsOn 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 onthe Customizing in the mapping tables J_1BVIEWMAP and J_1BTXCOND) whether correspondingcondition 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) arebeing 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 detailedinformation about the condition record from the corresponding entries in the DDIC tables KONH andKONP.

The traffic lights icon in the leftmost column of the ALV list indicates whether for each field in the tableline, which needs to have a corresponding condition record, a condition exists (green); no conditionsexist 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 thecheck: 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 atleast one line has only some converted fields.

5.3.1.2 Migrate tax data to tax conditionsBy 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 beingissued.

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

Mass migration program5.3.2In order to migrate all tax Customizing data to condition records, SAP provides the programJ_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 tablesand could overwrite your actual customizing settings. As it is written above, you could use the TaxManager’s Workplace to check the completeness of your condition tables, but it is not recommendedto run the migration tool in update mode.