46286991 customizing iss pis cofins for cbt[1]

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Customizing Guide: New Taxes 2004 (ISS, PIS, COFINS, MP-135 Withholding Taxes) – For Condition-Based Tax Calculation – Note: Sections with headers in blue or table entries in blue are specific for condition-based tax calculation (calculation procedures TAXBRA / RVABRA). The parts in black are common for classical and condition-based tax calculation

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Page 1: 46286991 Customizing Iss Pis Cofins for Cbt[1]

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

– For Condition-Based Tax Calculation –

Note:Sections with headers in blue or table entries in blue are specific for condition-based tax calculation (calculation procedures TAXBRA / RVABRA). The parts in black are common for classical and condition-based tax calculation

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Customizing Guide: New Taxes 2004, Condition-Based Tax Calculation

Content1 Create Condition Table 601 .................................................................................................. 4 2 Extend Pricing Field Catalog ................................................................................................. 4 3 Create Access Sequences .................................................................................................... 5 3.1 Access Sequences For Application TX ............................................................................... 5 3.1.1 Access Sequence BRCO ................................................................................................. 5 3.1.2 Access Sequence BRPI ................................................................................................... 5 3.1.3 Access Sequence BRS1 .................................................................................................. 5 3.1.4 Access Sequence BRS2 .................................................................................................. 6 3.1.5 Access Sequence BRWT ................................................................................................. 6 3.2 Access Sequences For Application V ................................................................................. 6 3.2.1 Access Sequence BRCO ................................................................................................. 6 3.2.2 Access Sequence BRPI ................................................................................................... 6 3.2.3 Access Sequence ISS1 .................................................................................................... 7 3.2.4 Access Sequence ISS2 .................................................................................................... 7 3.2.5 Access Sequence BRWT ................................................................................................. 7 4 Create Condition Types ........................................................................................................ 8 4.1 Condition Types For Application TX .................................................................................... 8 4.1.1 Tax Code Conditions ........................................................................................................ 8 4.1.2 Tax Rate Conditions ......................................................................................................... 9 4.1.3 Nota Fiscal Mapping Conditions ....................................................................................... 9 4.1.4 Nota Fiscal Mapping Conditions With Manually Created Condition Records ................. 10 4.2 Condition Types For Application V .................................................................................... 10 4.2.1 Tax Code Conditions ...................................................................................................... 10 4.2.2 WHT Code Conditions .................................................................................................... 12 4.2.3 SD Tax Code Conditions ................................................................................................ 12 4.2.4 Tax Rate Conditions ....................................................................................................... 12 4.2.5 Nota Fiscal Mapping Conditions ..................................................................................... 13 5 Create New Internal Condition Codes ................................................................................. 13 6 Create Mapping of Internal Codes to Condition Types ........................................................ 14 7 Create Mapping of Tax Rate Tables to Condition Tables .................................................... 16 8 Price Conditions Including Taxes ........................................................................................ 16 8.1 Price Conditions SD .......................................................................................................... 17 8.2 Price Conditions MM ......................................................................................................... 17 8.3 Define Which Taxes Are Included in MM/SD Price Conditions ........................................ 17 9 Create Entries in J_1BAJ .................................................................................................... 17 10 Create Processing Keys for FI (T007B) ............................................................................ 18 11 Create G/L Accounts ......................................................................................................... 19 12 Define and Assign Tax Accounts ...................................................................................... 19 13 Define Account Keys for SD (T687) .................................................................................. 19 14 Update Calculation Procedures ........................................................................................ 20 14.1 Update Calculation Procedure FI .................................................................................... 20 14.2 Update Pricing Procedure SD ......................................................................................... 23 15 Nota Fiscal Mapping ......................................................................................................... 26 15.1 Tax Values MM ............................................................................................................... 26 15.2 Tax Laws MM .................................................................................................................. 26 15.3 Tax Values SD ................................................................................................................ 26 16 Customizing of Extended WHT ........................................................................................ 27 16.1 WHT Types at Payment .................................................................................................. 27 16.2 WHT Types at Invoice ..................................................................................................... 27 16.3 WHT Codes ..................................................................................................................... 27 16.4 Define Processing Key For Modified Tax Amount ........................................................... 27 16.5 Assign WHT Types to Company Codes .......................................................................... 28 16.6 Define Accounts For Withholding Tax to Be Paid Over ................................................... 28 16.7 Define Official Collection Codes ...................................................................................... 28 16.8 Assign Condition Types to Withholding Tax Types ......................................................... 28 16.9 Maintain Tax Relevant Classification .............................................................................. 28 16.10 Maintain Withholding Tax SD Conditions ...................................................................... 28

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17 FI Tax Codes .................................................................................................................... 28 17.1 Tax Codes Used in MM ................................................................................................... 28 17.1.1 To activate COFINS non-deductible: ............................................................................ 28 17.1.2 To activate PIS non-deductible: ................................................................................... 29 17.1.3 To activate COFINS deductible: ................................................................................... 29 17.1.4 To activate PIS deductible: ........................................................................................... 29 17.1.5 To activate withholding taxes: ...................................................................................... 29 17.1.6 To activate ISS New 2004: ........................................................................................... 29 18 SD Tax Codes (View J_1BTXSDCV) ................................................................................ 29 19 Maintain Settings For External Tax Calculation ................................................................ 30 19.1 Structure for Tax Jurisdiction Code (View V_TTXD) ....................................................... 30 19.2 Activate External Tax Calculation .................................................................................... 30 19.3 Define Logical Destination ............................................................................................... 30 20 Define Tax Jurisdiction Codes .......................................................................................... 30 21 Assign Jurisdiction Codes to Ranges of Postal Codes ...................................................... 30 22 Master Data Changes ....................................................................................................... 30 22.1 Vendors (Transaction XK02) ........................................................................................... 30 22.2 Customers (Transaction XD02) ....................................................................................... 30 22.3 Other Address Changes: Organizational Structure ......................................................... 30 23 ISS Customizing ............................................................................................................... 31 23.1 Tax Laws ......................................................................................................................... 31 23.2 Official Service Types ..................................................................................................... 31 23.3 Generic Service Types .................................................................................................... 31 23.4 Assign Official Service Types .......................................................................................... 31 24 Tax Rates .......................................................................................................................... 31 24.1 COFINS ........................................................................................................................... 31 24.2 PIS .................................................................................................................................. 31 24.3 ISS .................................................................................................................................. 31 24.4 Withholding Taxes ........................................................................................................... 31

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Customizing Guide: New Taxes 2004, Condition-Based Tax Calculation

Purpose of This Guide

The purpose of this guide is to describe how to technically set up the system for the new tax functions (ISS, PIS, COFINS, and MP-135 withholding taxes). The prerequisite is that all coding and DDIC changes are already implemented. This means, either the support package that contains the changes is installed, or the changes are implemented manually, following the instructions of the respective Note. For further details, see Note 727475 and the Notes mentioned there.

After implementation of the support package or the Note, there are still manual steps necessary to work with the new taxes. These manual steps are described in this guide. It may be that the changes described in some of the steps are already done in your system (e.g. entries in table J_1BAJ). In such case, just skip the section.

1 Create Condition Table 601This table is used for ISS data.

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

2 Extend Pricing Field CatalogIn order to use the new components LOC_PR and LOC_SE in the ISS access sequences, the pricing field catalog has to be extended by these components. This is performed in the maintenance view V_T681F. Specify usage ‘A’, application ‘V’ or ‘TX’, and field group 001. Add the new components from structure KOMP.

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3 Create Access SequencesNew access sequences have to be created that are used in the new condition types that store the rates of the new taxes.

3.1 Access Sequences For Application TX

3.1.1 Access Sequence BRCOName: Brazil COFINS

Step Tab.

Req.

Excl.

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

5 346 0 X ALAND = BR

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

3.1.2 Access Sequence BRPIName: Brazil PIS

Step Tab.

Req.

Excl.

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

5 346 0 X ALAND = BR

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

3.1.3 Access Sequence BRS1Name: Brazil ISS at service provider

Step Tab.

Req.

Excl.

Field AssignmentCondition 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

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

Step 99 is used for country default rates. A different condition table is used that has only country as key field.

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Customizing Guide: New Taxes 2004, Condition-Based Tax Calculation

3.1.4 Access Sequence BRS2Name: Brazil ISS wh. serv. provided

Step Tab.

Req.

Excl.

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

5 601 0 X ALAND = BR

TXJCD = KOMP LOC_SE

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

99 392 0 X ALAND = BR

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

Step 99 is used for country default rates. A different condition table is used that has only country as key field.

3.1.5 Access Sequence BRWTName: Brazil WHT

Step Tab.

Req.

Excl.

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

5 346 0 X ALAND = BR

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

3.2 Access Sequences For Application V

3.2.1 Access Sequence BRCOName: Brazil COFINS

Step Tab.

Req.

Excl.

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

5 346 0 X ALAND = BR

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

3.2.2 Access Sequence BRPIName: Brazil PIS

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Customizing Guide: New Taxes 2004, Condition-Based Tax Calculation

Step Tab.

Req.

Excl.

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

5 346 0 X ALAND = BR

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

3.2.3 Access Sequence ISS1Name: Brazil ISS at service provider

Step Tab.

Req.

Excl.

Field AssignmentCondition 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

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

Step 99 is used for country default rates. A different condition table is used that has only country as key field.

3.2.4 Access Sequence ISS2Name: Brazil ISS wh. serv. provided

Step Tab.

Req.

Excl.

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

5 601 0 X ALAND = BR

TXJCD = KOMP LOC_SE

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

99 392 0 X ALAND = BR

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

Step 99 is used for country default rates. A different condition table is used that has only country as key field.

3.2.5 Access Sequence BRWTName: Brazil WHT

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Step Tab.

Req.

Excl.

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

5 346 0 X ALAND = BR

DYNKEY1 KOMP MATNR

DYNKEY2 = X

DYNKEY3 = X

TAXGROUP = 5

Step 5 is necessary as a template to automatically update access sequences when creating new tax groups of dynamic exceptions. Use requirement formula that is never fulfilled in step 5 of the access sequence if you don’t want to consider it.

4 Create Condition TypesNew condition types have to be created for the new taxes. The following classes of condition types are affected:

• Tax code conditions (activation of taxes; relevant for old and new tax calculation)• Tax rate conditions (specific for CBT)• NF mapping conditions (specific for CBT)• Conditions with WHT codes (specific for SD)

4.1 Condition Types For Application TX

4.1.1 Tax Code ConditionsCond. Class: D (Taxes)Calculat. Type: A (Percentage)Cond. Category: 1 (Jur. Level 1)Access Seq.: MWSTManual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)

Cond. Type DescriptionICN3 COFINS Normal TaxICOA COFINS Normal PO/GRICOF COFINS deductibleICON COFINS Normal Tax ICOO COFINS Offset Tax Included ICOS COFINS Normal PO/GRICOU COFINS COFINS Normal IV NVVICOV COFINS Offset ICOS/ICOUICOW COFINS WHT ICOZ COFINS WHT OffsetICSW CSLL WHT ICSZ CSLL WHT OffsetICW3 COFINS Withholding TaxSD ICZ3 COFINS WHT SD OffsetIGEW General WHT IGEZ General WHT OffsetIGW3 General WHT SD IGZ3 General WHT SD OffsetIIRW IR WHT IIRZ IR WHT OffsetIPIS PIS deductibleIPS3 PIS Normal Tax IPSA PIS Normal PO/GRIPSN PIS Normal Tax IPSO PIS Offset Tax IncludedIPSS PIS Normal PO/GRIPSU PIS Normal IV NVVIPSV PIS Offset IPSS / IPSU

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Cond. Type DescriptionIPSW PIS WHT IPSZ PIS WHT Offset IPW3 PIS WHT SD IPZ3 PIS WHT SD OffsetIRW3 IR Withholding TaxSD IRZ3 IR WHT SD OffsetISA3 ISS at Provider SD ISB3 ISS WHT at Provider SD ISE3 ISS at Service Loc SD ISF3 ISS WHT at Service Loc SD ISSA ISS at Provider ISSB ISS WHT at ProviderISSE ISS at Service LocISSF ISS WHT at Service LocISSG ISS OffsetISW3 CSLL Withholding Tax SDISZ3 CSLL WHT SD Offset

4.1.2 Tax Rate ConditionsCond. Category: 1 (Jur. Level 1)Manual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)

Cond. Description Acc.Seq. Co.Class Cal.Type RefCon RefAppBCO1 COFINS Rate BRCO A ABCO2 COFINS Base BRCO A ABCOP COFINS Pauta Amount BRCO B CBIS1 ISS Rate at Prov. BRS1 A ABIS2 ISS Base at Prov. BRS1 A ABIS3 ISS Law at Prov. BRS1 A ABIS5 ISS Taxloc at Prov. BRS1 A ABIS6 ISS WHT at Prov. BRS1 A ABIS7 ISS Min WHT at Prov. BRS1 A BBISA ISS Rate at Serv. BRS2 A A BIS1 TXBISB ISS Base at Serv. BRS2 A A BIS2 TXBISC ISS Law at Serv. BRS2 A A BIS3 TXBISE ISS Taxloc at Serv. BRS2 A A BIS5 TXBISF ISS WHT at Serv. BRS2 A A BIS6 TXBISG ISS Min WHT at Serv. BRS2 A A BIS7 TXBPI1 PIS Rate BRPI A ABPI2 PIS Base BRPI A ABPIP PIS Pauta Amount BRPI B CBW01 WHT Coll.Code Gen. BRWT A ABW02 WHT Rate Gen. BRWT A ABW11 WHT Coll.Code PIS BRWT A ABW12 WHT Rate PIS BRWT A ABW21 WHT Coll.Code COFINS BRWT A ABW22 WHT Rate COFINS BRWT A ABW31 WHT Coll.Code CSLL BRWT A ABW32 WHT Rate CSLL BRWT A ABW41 WHT Coll.Code IR BRWT A ABW42 WHT Rate IR BRWT A A

4.1.3 Nota Fiscal Mapping ConditionsCond. Class: A (Discount or surcharge)Calculat. Type: B (Fixed amount)Cond. Category: 1 (Jur. Level 1)

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Access Seq.: (empty)Manual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)

Cond. DescriptionBX60 BR ISS Base ProvBX61 BR ISS ExBase ProvBX62 BR ISS Amount ProvBX63 BR ISS WTAmount ProvBX64 BR ISS WT Base ProvBX65 BR ISS WT ExBas ProvBX6A BR ISS Base ServBX6B BR ISS ExBase ServBX6C BR ISS Amount ServBX6D BR ISS WTAmount ServBX6E BR ISS WT Base ServBX6F BR ISS WT ExBas ServBX6O BR ISS Offset TxInclBX70 BR COFINS BaseBX71 BR COFINS Excl. BaseBX72 BR COFINS AmountBX7O BR COFINS Off.TxInclBX7P BR COFINS Pauta Amt.BX80 BR PIS BaseBX81 BR PIS Excl. BaseBX82 BR PIS AmountBX8O BR PIS Off.TxInclBX8P BR PIS Pauta Amount

4.1.4 Nota Fiscal Mapping Conditions With Manually Created Condition RecordsCond. Category: 1 (Jur. Level 1)Manual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)

Cond. Description Acc.Seq. Co.Class Cal.Type RefCon RefAppBXWT BR WHT Base Amount BRB1 D A

With transaction FV11, create a condition record for this condition type with rate 100% and tax code ‘SD’.

4.2 Condition Types For Application V

4.2.1 Tax Code ConditionsCond. Class: D (Taxes)Calculat. Type: A (Percentage)Cond. Category: 1 (Jur. Level 1)Access Seq.: MWSTManual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)

Tax Type DescriptionICN3 COFINS from SDICW3 COFINS Withholding TaxSDIGW3 General WHT SD

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Customizing Guide: New Taxes 2004, Condition-Based Tax Calculation

IPS3 PIS Normal TaxIPW3 PIS WHT SDIRW3 IR Withholding TaxSDISA3 ISS at Provider SDISB3 ISS WHT at Provider SDISE3 ISS at Service Loc SDISF3 ISS WHT at Service Loc SDISW3 CSLL Withholding Tax SD

Cond. Class: D (Taxes)Calculat. Type: A (Percentage)Cond. Category: 1 (Jur. Level 1)Access Seq.: IBRRManual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)Ref. Con. Type: ICMORef. Applicat.: V

Tax Type DescriptionICZ3 COFINS WHT SD OffsetIGZ3 General WHT SD OffsetIPZ3 PIS WHT SD OffsetIRZ3 IR WHT SD OffsetISZ3 CSLL WHT SD Offset

Cond. Class: A (Discount or surcharge)Calculat. Type: A (Percentage)Cond. Category: Access Seq.: IBRRManual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)Ref. Con. Type: ICMORef. Applicat.: V

Tax Type DescriptionICO2 COFINS Offset SDIPS2 PIS Offset SD

Cond. Class: W (Wage Withholding Tax)Calculat. Type: A (Percentage)Cond. Category: D (Tax) Access Seq.: J1AG (Arg.: Tax Relev. Clas)Manual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)Ref. Con. Type: ICMORef. Applicat.: V

Tax Type DescriptionBGEZ BR General WHT offBPSZ BR PIS WHT OffsetBCOZ BR COFINS WHT offsetBCSZ BR CSLL WHT offset

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BIRZ BR IR WHT offset

Cond. Class: D (Taxes)Calculat. Type: A (Percentage)Cond. Category: D (Tax)Access Seq.: IBRXManual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)Ref. Con. Type: IBRXRef. Applicat.: V

4.2.2 WHT Code ConditionsTax Type DescriptionICW4 COFINS WHT codeIPW4 PIS WHT codeISW4 CSLL WHT codeIRW4 IR WHT codeIGW4 General WHT code

4.2.3 SD Tax Code ConditionsCond. Class: D (Taxes)Calculat. Type: A (Percentage)Cond. Category: D (Tax)Manual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)

Cond. Description Acc.Seq.DCOF COFINS Due DIBRDPIS PIS Due DIBRDWHT WHT Due DIBR

4.2.4 Tax Rate ConditionsCond. Category: D (Tax)Manual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)

Cond. Description Acc.Seq. Co.Class Cal.Type RefCon RefAppBCO1 COFINS Rate BRCO D ABCO2 COFINS Base BRCO D ABCOP COFINS Pauta Amount BRCO D CISVB ISS Rate at Prov. ISS1 D AISVC ISS Base at Prov. ISS1 D AISVD ISS Law at Prov. ISS1 D AISVF ISS Taxloc at Prov. ISS1 D AISVG ISS WHT at Prov. ISS1 D AISVH ISS Min WHT at Prov. ISS1 D BISVN ISS Rate at Serv. ISS2 D A ISVB VISVO ISS Base at Serv. ISS2 D A ISVC VISVP ISS Law at Serv. ISS2 D A ISVD VISVR ISS Taxloc at Serv. ISS2 D A ISVF VISVS ISS WHT at Serv. ISS2 D A ISVG VISVT ISS Min WHT at Serv. ISS2 D B ISVH VBPI1 PIS Rate BRPI D ABPI2 PIS Base BRPI D ABPIP PIS Pauta Amount BRPI B C

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Cond. Description Acc.Seq. Co.Class Cal.Type RefCon RefAppBW01 WHT Coll.Code Gen. BRWT D ABW02 WHT Rate Gen. BRWT D ABW11 WHT Coll.Code PIS BRWT D ABW12 WHT Rate PIS BRWT D ABW21 WHT Coll.Code COFINS BRWT D ABW22 WHT Rate COFINS BRWT D ABW31 WHT Coll.Code CSLL BRWT D ABW32 WHT Rate CSLL BRWT D ABW41 WHT Coll.Code IR BRWT D ABW42 WHT Rate IR BRWT D A

4.2.5 Nota Fiscal Mapping ConditionsCond. Class: A (Discount or surcharge)Calculat. Type: B (Fixed amount)Cond. Category: 1 (Jur. Level 1)Access Seq.: (empty)Manual Entries: D (Not possible to process manually)Item Condition: XDelete fr. DB: B (without popup)

Cond. Description BX60 BR ISS Base ProvBX61 BR ISS ExBase ProvBX62 BR ISS Amount ProvBX63 BR ISS WTAmount ProvBX64 BR ISS WT Base ProvBX65 BR ISS WT ExBas ProvBX6A BR ISS Base ServBX6B BR ISS ExBase ServBX6C BR ISS Amount ServBX6D BR ISS WTAmount ServBX6E BR ISS WT Base ServBX6F BR ISS WT ExBas ServBX6O BR ISS Offset TxInclBX70 BR COFINS BaseBX71 BR COFINS Excl. BaseBX72 BR COFINS AmountBX7O BR COFINS Off.TxInclBX7P BR COFINS Pauta Amt.BX80 BR PIS BaseBX81 BR PIS Excl. BaseBX82 BR PIS AmountBX8O BR PIS Off.TxInclBX8P BR PIS Pauta Amount

5 Create New Internal Condition CodesInternal TC Code Description TaxGrp

COFINSBASE COFINS Tax Base COFICOFINSPAUTA COFINS Pauta Rate COFI

COFINSRATE COFINS Tax Rate COFI

ISSBASE_PR ISS Base at Provider ISS

ISSBASE_SE ISS Base at Service Loc.

ISSLAW_PR ISS Law at Provider ISS

ISSLAW_SE ISS Law at Service Loc.

ISSMINVALWT_PR ISS Minimum Value For Withholding Tax at Provider ISS

ISSMINVALWT_SE ISS Minimum Value For Withholding Tax at Service Loc.

ISSRATE_PR ISS Rate at Provider ISS

ISSRATE_SE ISS Rate at Service Loc.

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Internal TC Code Description TaxGrpISSTAXRELLOC_PR ISS Tax-Relevant Location at Provider ISS

ISSTAXRELLOC_SE ISS Tax-Relevant Location at Service Loc.

ISSWITHHOLD_PR ISS Indicator: Withholding Tax at Provider ISS

ISSWITHHOLD_SE ISS Indicator: Withholding Tax at Service Loc.

NF_COFINS_AMOUNT Result of Tax Calculation: COFINS Normal Tax Amount

NF_COFINS_BASE Result of Tax Calculation: COFINS Base Amount

NF_COFINS_EBAS Result of Tax Calculation: COFINS Exclude Base Amount

NF_COFINS_OFFSET Result of tax calc.: COFINS Offset due to tax incl. in price

NF_COFINS_PAUTA_RATE Result of tax calc.: COFINS Pauta rate

NF_ISS_AMOUNT_PROV Result of tax calc.: ISS amount at location of provider

NF_ISS_AMOUNT_SERV Result of tax calc.: ISS amount at location of service

NF_ISS_EBAS_PROV Result of tax calc.: ISS excl. base at location of provider

NF_ISS_EBAS_SERV Result of tax calc.: ISS excl. base at location of service

NF_ISS_LAW Result of tax calc.: ISS Law

NF_ISS_NBAS_PROVResult of tax calc.: ISS normal base at location of provider

NF_ISS_NBAS_SERV Result of tax calc.: ISS normal base at location of service

NF_ISS_OFFSETS Result of tax calc.: ISS Offset due to tax included in price

NF_ISS_WTAMOUNT_PROV Result of tax calc.: ISS WT amount at location of provider

NF_ISS_WTAMOUNT_SERV Result of tax calc.: ISS WT amount at location of service

NF_ISS_WT_EBAS_PROV Result of tax calc.: ISS WT excl. base at loc. of provider

NF_ISS_WT_EBAS_SERV Result of tax calc.: ISS WT excl. base at loc. of service

NF_ISS_WT_NBAS_PROV Result of tax calc.: ISS WT normal base at loc. of provider

NF_ISS_WT_NBAS_SERV Result of tax calc.: ISS WT normal base at loc. of service

NF_PIS_AMOUNT Result of Tax Calculation: PIS Normal Tax Amount

NF_PIS_BASE Result of Tax Calculation: PIS Base Amount

NF_PIS_EBAS Result of Tax Calculation: PIS Exclude Base Amount

NF_PIS_OFFSET Result of tax calc.: PIS Offset due to tax incl. in price

NF_PIS_PAUTA_RATE Result of tax calc.: PIS Pauta rate

PISBASE PIS Tax Base PIS

PISPAUTA PIS Pauta Rate PIS

PISRATE PIS Tax Rate PIS

TXSDCCOFINS Calculate COFINS

TXSDCPIS Calculate PIS

TXSDCWHT Calculate Withholding Taxes

WHTCOLL_COFINS Official Collection Code - COFINS WHT

WHTCOLL_CSLL Official Collection Code - CSLL WHT

WHTCOLL_GEN Official Collection Code - General WHT

WHTCOLL_IR Official Collection Code – IR WHT

WHTCOLL_PIS Official Collection Code – PIS WHT

WHTRATE_COFINS COFINS Withholding Tax Rate WHT

WHTRATE_CSLL CSLL Withholding Tax Rate WHT

WHTRATE_GEN General Withholding Tax Rate WHT

WHTRATE_IR IR Withholding Tax Rate WHT

WHTRATE_PIS PIS Withholding Tax Rate WHT

6 Create Mapping of Internal Codes to Condition TypesInternal TC Code App CTyp

COFINSBASE TX BCO2COFINSBASE V BCO2COFINSPAUTA TX BCOP

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COFINSPAUTA V BCOPCOFINSRATE TX BCO1COFINSRATE V BCO1ISSBASE_PR TX BIS2ISSBASE_PR V ISVCISSBASE_SE TX BISBISSBASE_SE V ISVOISSLAW_PR TX BIS3ISSLAW_PR V ISVDISSLAW_SE TX BISCISSLAW_SE V ISVPISSMINVALWT_PR TX BIS7ISSMINVALWT_PR V ISVHISSMINVALWT_SE TX BISGISSMINVALWT_SE V ISVTISSRATE_PR TX BIS1ISSRATE_PR V ISVBISSRATE_SE TX BISAISSRATE_SE V ISVNISSTAXRELLOC_PR TX BIS5ISSTAXRELLOC_PR V ISVFISSTAXRELLOC_SE TX BISEISSTAXRELLOC_SE V ISVRISSWITHHOLD_PR TX BIS6ISSWITHHOLD_PR V ISVGISSWITHHOLD_SE TX BISFISSWITHHOLD_SE V ISVSNF_COFINS_AMOUNT TX BX72NF_COFINS_AMOUNT V BX72NF_COFINS_BASE TX BX70NF_COFINS_BASE V BX70NF_COFINS_EBAS TX BX71NF_COFINS_EBAS V BX71NF_COFINS_OFFSET TX BX7ONF_COFINS_OFFSET V BX7ONF_COFINS_PAUTA_RATE TX BX7PNF_COFINS_PAUTA_RATE V BX7PNF_ISS_AMOUNT_PROV TX BX62NF_ISS_AMOUNT_PROV V BX62NF_ISS_AMOUNT_SERV TX BX6CNF_ISS_AMOUNT_SERV V BX6CNF_ISS_BASE TX BX50NF_ISS_BASE V BX50NF_ISS_EBAS_PROV TX BX61NF_ISS_EBAS_PROV V BX61NF_ISS_EBAS_SERV TX BX6BNF_ISS_EBAS_SERV V BX6BNF_ISS_NBAS_PROV TX BX60NF_ISS_NBAS_PROV V BX60NF_ISS_NBAS_SERV TX BX6ANF_ISS_NBAS_SERV V BX6ANF_ISS_OFFSETS TX BX6ONF_ISS_OFFSETS V BX6ONF_ISS_WTAMOUNT_PROV TX BX63NF_ISS_WTAMOUNT_PROV V BX63NF_ISS_WTAMOUNT_SERV TX BX6DNF_ISS_WTAMOUNT_SERV V BX6DNF_ISS_WT_EBAS_PROV TX BX65NF_ISS_WT_EBAS_PROV V BX65NF_ISS_WT_EBAS_SERV TX BX6FNF_ISS_WT_EBAS_SERV V BX6FNF_ISS_WT_NBAS_PROV TX BX64NF_ISS_WT_NBAS_PROV V BX64NF_ISS_WT_NBAS_SERV TX BX6ENF_ISS_WT_NBAS_SERV V BX6ENF_PIS_AMOUNT TX BX82NF_PIS_AMOUNT V BX82

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NF_PIS_BASE TX BX80NF_PIS_BASE V BX80NF_PIS_EBAS TX BX81NF_PIS_EBAS V BX81NF_PIS_OFFSET TX BX8ONF_PIS_OFFSET V BX8ONF_PIS_PAUTA_RATE TX BX8PNF_PIS_PAUTA_RATE V BX8PPISBASE TX BPI2PISBASE V BPI2PISPAUTA TX BPIPPISPAUTA V BPIPPISRATE TX BPI1PISRATE V BPI1TXSDCCOFINS V DCOFTXSDCPIS V DPISTXSDCWHT V DWHTWHTCOLL_COFINS TX BW21WHTCOLL_COFINS V BW21WHTCOLL_CSLL TX BW31WHTCOLL_CSLL V BW31WHTCOLL_GEN TX BW01WHTCOLL_GEN V BW01WHTCOLL_IR TX BW41WHTCOLL_IR V BW41WHTCOLL_PIS TX BW11WHTCOLL_PIS V BW11WHTRATE_COFINS TX BW22WHTRATE_COFINS V BW22WHTRATE_CSLL TX BW32WHTRATE_CSLL V BW32WHTRATE_GEN TX BW02WHTRATE_GEN V BW02WHTRATE_IR TX BW42WHTRATE_IR V BW42WHTRATE_PIS TX BW12WHTRATE_PIS V BW12

7 Create Mapping of Tax Rate Tables to Condition TablesAssign all tax groups used in table J_1BTXCOF to condition table 346.

Assign all tax groups used in table J_1BTXPIS to condition table 346.

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

Assign all tax groups used in table J_1BTXCOF to condition table 346.

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

8 Price Conditions Including TaxesThe new solution for tax calculation supports prices which are not the real net prices, but may contain PIS, COFINS, ISS due at the municipio of the service provider, ISS due at the municipio of the service execution, or any combination of these.

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

The following is a suggestion based on 4 new price conditions.

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8.1 Price Conditions SDCopy pricing procedure PR0000 to RVABR2 before creating the conditions.

Cond. Class: B (Prices)Calculat. Type: C (Quantity)Cond. Category: H (Basic Price)Access Seq.: PR00Manual Entries: C (Manual entry has priority)Amount/percent: XItem Condition: XPricing Proc: RVABR2Delete fr. DB: (do not delete)Scale basis: CCheck value: AQuantity Conversion: X

Cond. Type DescriptionZPB0 Price w/o TaxesZPB1 Price+ISSZPB2 Price+PIS+COFZPB3 Price+ISS+PIS+COF

8.2 Price Conditions MMIf necessary, create new price conditions and adapt the MM pricing procedure for Purchase Orders (e.g. RM0000) or create new ones by copying and modifying.

8.3 Define Which Taxes Are Included in MM/SD Price ConditionsViews J_1BSDKON1MMVV and J_1BSDKON1SDVV.

Maintain for each SD (Application V) or MM (Application M) pricing procedure the taxes that are included in each price condition type. As an example, the SD procedure RVABRA is maintained for the conditions ZPB0 … ZPB3

Price Condition Tax GroupZPB1 ISSP ISS at location of service providerZPB1 ISSS ISS at location where service is providedZPB2 COFI COFINSZPB2 PIS PISZPB3 COFI COFINSZPB3 ISSP ISS at location of service providerZPB3 ISSS ISS at location where service is providedZPB3 PIS PIS

9 Create Entries in J_1BAJTax Type Tax Group Description WHT Offset

ICN3 COFI COFINS Normal Tax

ICOA COFI COFINS Normal PO/GR

ICOF COFI COFINS Deductible

ICON COFI COFINS Normal Tax

ICOO COFI COFINS Offset Tax Included X

ICOS COFI COFINS Normal PO/GR

ICOU COFI COFINS COFINS Normal IV NVV

ICOV COFI COFINSOffset ICOS/ICOU X

ICOW WHCO COFINS WHT X

ICOZ COFINS WHT Offset

ICSW WHCS CSLL WHT X

ICSZ CSLL WHT Offset

ICW3 WHCO COFINS Withholding TaxSD X

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Tax Type Tax Group Description WHT Offset

IGEW WHT General WHT X

IGEZ General WHT Offset

IGW3 WHT General WHT SD X

IIRW WHIR IR WHT X

IIRZ IR WHT Offset

IPIS PIS PIS Deductible

IPS3 PIS PIS Normal Tax

IPSA PIS PIS Normal PO/GR

IPSN PIS PIS Normal Tax

IPSO PIS PIS Offset Tax Included X

IPSS PIS PIS Normal PO/GR

IPSU PIS PIS Normal IV NVV

IPSV PIS PIS Offset IPSS / IPSU X

IPSW WHPI PIS WHT X

IPSZ PIS WHT Offset

IPW3 WHPI PIS WHT SD X

IRW3 WHIR IR Withholding TaxSD X

ISA3 ISSP ISS at Provider SD

ISB3 ISSP ISS WHT at Provider SD X

ISE3 ISSS ISS at Service Loc SD

ISF3 ISSS ISS WHT at Service Loc SD X

ISSA ISSP ISS at Provider

ISSB ISSP ISS WHT at Provider X

ISSE ISSS ISS at Service Loc

ISSF ISSS ISS WHT at Service Loc X

ISSG ISSP ISS Offset X

ISW3 WHCS CSLL Withholding Tax SD X

10 Create Processing Keys for FI (T007B)New processing keys (account keys) have to be created to post taxes to separate accounts and to identify withholding tax amounts in the normal tax calculation.

Tax Type: 2 (input tax)Not deductible: XPosting indicator: 3 (Distribute to relevant expense/revenue items)

Processing Key DescriptionISW ISS WHTWTC COFINS WHTWTG General WHTWTI IR WHTWTP PIS WHTWTS CSLL WHT

Tax type: 2 (input tax)Non deductible: spacePosting indicator: 2 (separate line item)

Processing Key DescriptionCO3 COFINS ClearingPI3 PIS Clearing

Tax type: 1 (output tax)Non deductible: spacePosting indicator: 2 (separate line item)

Processing Key Description

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COF COFINSPIS PISWC3 Cofins WHTWC4 Cofins WHT offsetWG3 General WHTWG4 General WHT offsetWI3 IR WHTWI4 IR WHT offsetWP3 PIS WHTWP4 PIS WHT offsetWS3 CSLL WHTWS4 CSLL WHT offset

11 Create G/L AccountsIf you need to post the new taxes to separate accounts, create new G/L accounts. The following is just a suggestion.

177011: COFINS Withholding Tax Posting at Payment 177013: PIS Withholding Tax Posting at Payment177020: CSLL Withholding Tax Posting at Payment177021: IR Withholding Tax Posting at Payment177022: General Withholding Tax (PIS/COFINS/CSLL/IR)177030: PIS Normal Tax 177031: COFINS Normal Tax154031: PIS Tax deductible154008: COFINS Tax deductible177040: ISS Withholding Tax

12 Define and Assign Tax AccountsPosting Keys: 40 – 50

Account Key AccountCO3 154008COF 177031PI3 154031PIS 177030WC3 177011WC4 177011WG3 177022WG4 177022WI3 177021WI4 177021WP3 177013WP4 177013WS3 177020WS4 177020

13 Define Account Keys for SD (T687)Account Key DescriptionCOF COFINSPIS PISWC3 Cofins WHTWC4 Cofins WHT offsetWG3 General WHTWG4 General WHT offsetWI3 IR WHTWI4 IR WHT offsetWP3 PIS WHTWP4 PIS WHT offsetWS3 CSLL WHTWS4 CSLL WHT offset

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14 Update Calculation Procedures

14.1 Update Calculation Procedure FIThe FI calculation procedure below is based on SAP sample delivery TAXBRA. The new entries are shown in red. Adapt the calculation procedure that you use in a corresponding way or create a copy of the old one and adapt the new one in order to have a backup.

Step CTyp Description From To Reqt SubTo Stat AltCTy AltCBV ActKy

1 First line: zero X 10 BASB Base Amount 1 11 Tax-relev. conditions: 1 X 12 BDIS Discount X 320 160 13 BFRE Freight X 320 160 14 BSUB S.T. Base Modif. X 320 160 15 Calling Application: 1 X 17 BXPO BR Caller = PO? 160 X 160 19 Read tax data: 1 X 20 ICMS 1 X 21 BIC0 ICMS Rate X 160 22 BIC1 ICMS Base Reduction X 160 23 BIC2 ICMS Other Base Flag X 160 24 BICX ICMS exempt X 160 25 B100 Convenio 100 X 160 26 BLIC Tax Law ICMS X 160 27 BICH ICMS Rate SF=ST X 160 28 BICS ICMS Rate for S.T. X 160 30 ICMS Complement 1 X 31 BCI1 ICMS Complement Base X 160 32 BCI2 ICMS Complem. Exempt X 160 40 ICMS on Freight 1 X 41 BIF0 ICMS on freight X 160 42 BIFH ICMS Fr Rate SF=ST X 160 50 IPI 1 X 51 BIP0 IPI Rate X 160 52 BIP1 IPI Base Reduction X 160 53 BIP2 IPI Other Base Flag X 160 54 BIPP IPI Pauta Amount X 55 BIPX IPI exempt X 160 56 BLIP Tax Law IPI X 160 60 ISS 1 X 61 BIS0 ISS Rate X 160 70 Sub.Trib. 1 X 71 BST0 Subtrib. Rate X 160 72 BST1 Subtrib. surch. type X 160 73 BST2 Subtrib. Minprice X 74 BST3 Subtrib. Fixprice X 75 BST6 Subtrib. reduction 1 X 160 76 BST7 Subtrib. reduction 2 X 160 77 BST8 Subtrib. base reduct X 160 78 BSTF Subtrib.Minpr.Factor X 160 79 BSTI S.T. Minp.Bef.Surch. X 160 80 ISS New 2004 1 X 81 BIS1 ISS Rate at Prov. X 160 82 BIS2 ISS Base at Prov. X 160 83 BIS3 ISS Law at Prov. X 160 85 BIS5 ISS Taxloc at Prov. X 160 86 BIS6 ISS WHT at Prov. X 160 87 BIS7 ISS Min WHT at Prov. X 160 91 BISA ISS Rate at Serv. X 160 92 BISB ISS Base at Serv. X 160 93 BISC ISS Law at Serv. X 160 95 BISE ISS Taxloc at Serv. X 160 96 BISF ISS WHT at Serv. X 160 97 BISG ISS Min WHT at Serv. X 160

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Step CTyp Description From To Reqt SubTo Stat AltCTy AltCBV ActKy

110 PIS, COFINS 1 X 111 BCO1 COFINS Rate X 160 112 BCO2 COFINS Base X 160 113 BCOP COFINS Pauta Amount X 121 BPI1 PIS Rate X 160 122 BPI2 PIS Base X 160 123 BPIP PIS Pauta Amount X 190 Call Tax Calculation: 1 X 191 BX01 BR Tax Calculation 10 X 320 200 Tax Results: 1 X 210 BX10 BR ICMS Normal Base X 320 215 BX11 BR ICMS Exclude Base X 320 220 BX12 BR ICMS Other Base X 320 225 BX13 BR ICMS Amount X 320 227 BX16 BR ICMS Rate X 320 230 BX20 BR IPI Normal Base X 320 235 BX21 BR IPI Exclude Base X 320 240 BX22 BR IPI Other Base X 320 245 BX23 BR IPI Amount X 320 246 BX24 BR IPI Offset Base X 320 247 BX25 BR IPI Offset Amount X 320 248 BXPA BR IPI Pauta Amount X 320 250 BX30 BR ICMS Comp. Base X 320 255 BX31 BR ICMS Comp. Amnt. X 320 256 BX32 BR ICMS Comp. Rate X 320 260 BX40 BR SubTrib Base X 320 265 BX41 BR SubTrib Amount X 320 270 BX42 BR SubTrib Fr. Base X 320 275 BX43 BR SubTrib Fr. Amnt X 320 277 BX44 BRSubTrib NF Rate X 320 280 BX14 BR ICMS Freight Base X 320 285 BX15 BRICMS Freight Amnt. X 320 290 BX50 BR ISS Base X 320 295 BX51 BR ISS Amount X 320 300 BX60 BR ISS Base Prov X 320 301 BX61 BR ISS ExBase Prov X 320 305 BX62 BR ISS Amount Prov X 320 310 BX63 BR ISS WTAmount Prov X 320 311 BX64 BR ISS WT Base Prov X 320 312 BX65 BR ISS WT ExBas Prov X 320 315 BX6A BR ISS Base Serv X 320 316 BX6B BR ISS ExBase Serv X 320 320 BX6C BR ISS Amount Serv X 320 325 BX6D BR ISS WTAmount Serv X 320 330 BX6E BR ISS WT Base Serv X 320 335 BX6F BR ISS WT ExBas Serv X 320 339 BX6O BR ISS Offset TxIncl X 320 350 BX70 BR COFINS Base X 320 351 BX71 BR COFINS Excl. Base X 320 355 BX72 BR COFINS Amount X 320 360 BX7O BR COFINS Off.TxIncl X 320 365 BX7P BR COFINS Pauta Amt. X 320 370 BX80 BR PIS Base X 320 371 BX81 BR PIS Excl. Base X 320 375 BX82 BR PIS Amount X 320 380 BX8O BR PIS Off.TxIncl X 320 385 BX8P BR PIS Pauta Amount X 320 400 Tax Code Conditions: 1 X 405 IPI0 IPI NF Zero Line 245 X VST 406 ICM0 ICMS NF Zero Line 225 X VST 410 IPI1 IPI Industr. In 245 1 VS1 412 IPI4 IPI -Split Vendor 247 1 NVV 415 ICM1 ICMS Industr. In 225 1 VS2 420 ICS1 Sub.Tributaria In 265 VS3 425 ICMF ICMS S.T. fr. offset 225 1 164 IC1

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Step CTyp Description From To Reqt SubTo Stat AltCTy AltCBV ActKy

430 IFR1 ICMS on freight In 285 1 VS3 435 IFS1 ICMS ST freight In 275 VS3 440 IP1C IPI Ind.Clearing 245 1 IPC 445 IP1O IPI Ind.Clear.Off. 440 1 164 IPC 450 IC1C ICMS Ind.Clearing 225 1 ICC 455 IC1O ICMS Ind.Clear.Off. 415 1 164 ICC 510 IPI2 IPI Consumption In 245 1 NVV 515 ICM2 ICMS Consumption In 225 1 NVV 516 ZCM2 CIAP law 102 225 1 NAV 517 ZCM4 CIAP 4.7 225 1 NAV 520 ICS2 S.T. Consumption In 265 NVV 525 ICOP ICMS complement 255 1 ICP 530 ICOT STO-ICMS complement 255 1 ICP 535 ICOX ICMS complement 100 525 1 164 ICX 555 ISS2 ISS from MM In 295 1 IC1 560 ISSO ISS from MM In Offs 555 1 164 MW4 610 IPI3 IPI from SD Out 245 1 MW1 615 ICM3 ICMS from SD Out 225 1 MW2 620 ICS3 Sub.Tributaria Out 265 MW3 625 ISS3 ISS from SD Out 295 1 MW4 630 ICZF ICMS Rev (Z.F.)-STO 225 1 164 ICZ 640 IFR3 ICMS on freight Out 285 1 MW3 645 IFS3 ICMS ST freight Out 275 MW3 650 ICM4 STO-ICMS SD (ICM3) 225 1 MW2 680 INSS INSS Incoming 10 1 VST 685 INSX INSS offset (100-) 680 1 164 INX

710 IRD1 Reimbursment ICMS 10 1 IR1 715 IRD2 Reimb. ICMS offset 710 1 IR2 720 IRD3 Reimbursment SUBT 10 1 IR3 725 IRD4 Reimb. SUBT offset 720 1 IR4 730 IRD5 Reimb. ICMS off. NVV 10 1 NVV 735 IRD6 Reimb. SUBT off.NVV 10 1 NVV 750 ISS 1 X 755 ISSA ISS at Provider 305 1 NVV 760 ISSB ISS WHT at Provider 310 1 ISW 765 ISSE ISS at Serv.Loc. 320 1 NVV 770 ISSF ISS WHT at Serv.Loc. 325 1 ISW 775 ISSG ISS Offsets 339 1 NVV 779 PIS/COFINS NON-DEDUCTIBLE 1 X 780 ICON COFINS NVV 355 1 NVV 782 ICOO COFINS NVVOff TxIncl 360 1 NVV 784 IPSN PIS NVV 375 1 NVV 786 IPSO PIS NVV Off. TxIncl 380 1 NVV 789 PIS/COFINS DEDUCTIBLE 1 X 790 ICOF COFINS deductible 355 X VST 791 IPIS PIS deductible 375 X VST 792 ICOV Cofins Offset 360 1 164 CO3 793 ICOS COFINS deduct. PO/GR 360 160 1 CO3 794 ICOU Cofins IV Non Deduct 360 161 1 NVV 795 ICOA Cofins ded. not inc. 355 360 1 CO3 796 IPSV Offset IPSS / IPSU 380 1 164 PI3 797 IPSS PIS deduct. PO/GR 380 160 1 PI3 798 IPSU PIS non deductib. IV 380 161 1 NVV 799 IPSA PIS ded. not inc. 375 380 1 PI3 900 WITHHOLDING TAXES 1 X 901 BXWT BR WHT Base Amount X 5 904 BW01 WHT Coll.Code Gen. X 5 905 BW02 WHT Rate Gen. X 5 909 BW11 WHT Coll.Code PIS X 5 910 BW12 WHT Rate PIS X 5 914 BW21 WHT Coll.Code COFINS X 5 915 BW22 WHT Rate COFINS X 5 919 BW31 WHT Coll.Code CSLL X 5 920 BW32 WHT Rate CSLL X 5

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Step CTyp Description From To Reqt SubTo Stat AltCTy AltCBV ActKy

924 BW41 WHT Coll.Code IR X 5 925 BW42 WHT Rate IR X 5 950 ICOW COFINS WHT 915 WTC 951 ICOZ COFINS WHT Offset 950 164 NVV 955 IPSW PIS WHT 910 WTP 956 IPSZ PIS WHT Offset 955 164 NVV 960 ICSW CSLL WHT 920 WTS 961 ICSZ CSLL WHT Offset 960 164 NVV 965 IIRW IR WHT 925 WTI 966 IIRZ IR WHT Offset 965 164 NVV 970 IGEW General WHT 905 WTG 971 IGEZ General WHT Offset 970 164 NVV 999 BI00 Dummy Non-Statistic. 163 VS1

14.2 Update Pricing Procedure SDThe below SD pricing procedure is based on SAP sample delivery RVABRA. Examples for other procedures (like RVXBRE etc.) are not given, since the changes are the same. The new or changed entries are shown in red. Adapt the calculation procedures that you use in a corresponding way or create copies of the old ones and adapt the new ones in order to have a backup.

Step Cntr CTyp Description From To Man. Reqt SubTo Stat AltCTy AltCBV ActKy

1 **** Zero **** X 10 1 ZPB0 Price w/o Taxes 2 10 2 ZPB1 Price+ISS 2 10 3 ZPB2 Price+PIS+COF 2 10 4 ZPB3 Price+ISS+PIS+COF 2 45 50 RB00 Discount (Value) 2 199 Net Base 200 DICM Devido ICMS X 160 201 ICVA ICMS Tax Rate X 160 202 ICBS ICMS Tax Base X 160 203 ICOB BR: ICMS other base X 160 204 IC0X BR: ICMS 0 excempt X 160 205 I100 BR: ICMS

Convênio100X 160

206 ICLW BR: ICMS Law X 160 207 ISIC ICMS SF = ST X 160 208 ISTD ICMS Rate S.T. spec. X 160 209 ICXC X 160 210 DIZF X 160 220 DICF X 160 221 ICFR BR: ICMS on freight X 160 230 DISI Devido ICMS s/IPI X 160 240 DIPI BR: Devido IPI X 160 241 IPVA IPI Tax Rate X 160 242 IPBS IPI Tax Base X 160 243 IPOB BR: IPI other base X 160 244 IPIP BR: IPI Pauta X 160 245 IP0X BR: IPI 0 excempt X 160 246 IPLW BR: IPI Law X 160 247 IPXC X 160 250 DCOF COFINS Due X 160 251 BCO1 COFINS Rate X 160 252 BCO2 COFINS Base X 160 253 BCOP COFINS Pauta Amount X 255 DPIS PIS Due X 160 256 BPI1 PIS Rate X 160 257 BPI2 PIS Base X 160 258 BPIP PIS Pauta Amount X 260 DISS Devido ISS X 160

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Step Cntr CTyp Description From To Man. Reqt SubTo Stat AltCTy AltCBV ActKy

265 ISS New 2004 1 X 266 ISVB ISS Rate at Prov. X 160 267 ISVC ISS Base at Prov. X 160 268 ISVD ISS Law at Prov. X 160 269 ISVE ISS Ins.Cal at Prov. X 160 270 ISVF ISS Taxloc at Prov. X 160 271 ISVG ISS WHT at Prov. X 160 272 ISVH ISS Min WHT at Prov. X 160 273 ISVN ISS Rate at Serv. X 160 274 ISVO ISS Base at Serv. X 160 275 ISVP ISS Law at Serv. X 160 276 ISVQ ISS Ins.Cal at Serv. X 160 277 ISVR ISS Taxloc:1=PR,2=SR X 160 278 ISVS ISS WHT at Serv. X 160 279 ISVT ISS Min WHT at Serv. X 160 280 DSUB X 160 281 ISTS Brazil S.T. surcharg X 160 282 ISTT BR: Sub.Trib SurType X 160 283 ISTM BR: Sub.Trib MinPric X 160 284 ISTF BR: Sub.Trib FixPric X 160 285 ISTB Brazil S.T. red. bas X 160 286 IST2 BR: Sub.Trib Base 2 X 160 287 ISTC S.T. ICMS BasRed X 160 288 ISTN Subtrib.Minpr.Factor X 160 289 ISTI S.T. Minp.Bef.Surch. X 160 290 DSUF X 160 300 ICMI Price+Tax (for NF) 2 320 2 310 1 X 320 K004 Material 321 K007 Customer Discount 322 K005 Customer/Material 329 320 328 400 KF00 Freight 600 IBRX Brazil tax calc. 300 599 X 320 610 BX10 BR ICMS Normal Base X 320 612 BX11 BR ICMS Exclude Base X 320 614 BX12 BR ICMS Other Base X 320 616 BX13 BR ICMS Amount 1 320 MW2 617 BXZF X 1 320 MWS 618 BX14 BR ICMS Freight Base X 320 620 BX15 BRICMS Freight Amnt. 1 320 MW3 622 BX16 BR ICMS Rate X 320 624 BX20 BR IPI Normal Base X 320 626 BX21 BR IPI Exclude Base X 320 628 BX22 BR IPI Other Base X 320 630 BX23 BR IPI Amount 1 320 MW1 632 BX24 BR IPI Offset Base X 320 634 BX25 BR IPI Offset Amount X 320 636 BX40 BR SubTrib Base X 320 638 BX41 BR SubTrib Amount 320 MW3 640 BX42 BR SubTrib Fr. Base X 320 642 BX43 BR SubTrib Fr. Amnt 320 MW3 644 BX44 BRSubTrib NF Rate X 320 646 BX50 BR ISS Base X 320 650 BXPA BR IPI Pauta Amount 1 320 MW1 652 BX60 BR ISS Base Prov X 320 653 BX61 BR ISS ExBase Prov X 320 654 BX64 BR ISS WT Base Prov X 320 655 BX65 BR ISS WT ExBas Prov X 320 656 BX6A BR ISS Base Serv X 320 657 BX6B BR ISS ExBase Serv X 320 658 BX6E BR ISS WT Base Serv X 320 659 BX6F BR ISS WT ExBas Serv X 320 660 BX51 BR ISS Amount 1 320 MW4 661 BX62 BR ISS Amount Prov 1 320 MW4

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Step Cntr CTyp Description From To Man. Reqt SubTo Stat AltCTy AltCBV ActKy

662 BX63 BR ISS WTAmount Prov

1 320 MW4

663 BX6C BR ISS Amount Serv 1 320 MW4 664 BX6D BR ISS WTAmount

Serv1 320 MW4

665 BX6O BR ISS offset 660 664 1 BRI 666 BX70 BR COFINS Base X 320 667 BX71 BR COFINS Excl. Base X 320 668 BX72 BR COFINS Amount 1 320 COF 669 BX7P BR COFINS Pauta

Amt.X 320

672 BX7O BR COFINS offset 668 668 1 ERL 675 BX80 BR PIS Base X 320 677 BX81 BR PIS Excl. Base X 320 679 BX82 BR PIS Amount 1 320 PIS 680 BX8P BR PIS Pauta Amt. X 320 683 BX8O BR PIS offset 679 679 1 ERL 700 **** Tax Code

Conditions **** 1

702 IPI3 IPI from SD 1 X X 704 ICM3 ICMS from SD 1 X X 706 ICS3 Sub.Trib. from SD 1 X X 708 ISS3 ISS from SD 1 X X 710 ICZF ADMS Disc. Zona Fr. 1 X X 712 IFR3 ICMS on freight SD 1 X X 714 IFS3 ICMS ST freight SD 1 X X 715 1 ISSA ISS at Provider 1 X X 715 2 ISSB ISS WHT at Provider 1 X X 715 3 ISSC ISS WHT Off. Prov. 1 X X 715 4 ISSD ISS WHT Again Prov. 1 X X 715 5 ISSE ISS at Serv.Loc. 1 X X 715 6 ISSF ISS WHT at Serv.Loc. 1 X X 715 7 ISSG ISS WHT Off. SrvLoc 1 X X 715 8 ISSH ISS WHT Again SrvLoc 1 X X 719 Total Tax 702 718 720 ICMO ICMS offset 616 BRI 740 DIFF Rounding Off 13 16 4 ERS 750 4 800 SKTO Cash Discount 9 X 11 810 VPRS Cost 4 B X 899 WITHHOLDING

TAXES ON GROSS 1 X

900 WGEC BR General WHT Code X 901 WPIC BR PIS WHT Code X 902 WCOC BR COFINS WHT

CodeX

903 WCSC BR CSLL WHT Code X 904 WIRC BR IR WHT Code X 905 DWHT WHT Due X 160 910 BXWT BR WHT Base Amount X 5 915 BW01 WHT Coll.Code Gen. X 5 916 BW02 WHT Rate Gen. 5 WG3 920 BW11 WHT Coll.Code PIS X 5 921 BW12 WHT Rate PIS 5 WP3 925 BW21 WHT Coll.Code

COFINSX 5

926 BW22 WHT Rate COFINS 5 WC3 930 BW31 WHT Coll.Code CSLL 1 X 931 BW32 WHT Rate CSLL 5 WS3 935 BW41 WHT Coll.Code IR 1 X 936 BW42 WHT Rate IR 5 WI3 960 BGEZ BR General WHT off 916 164 WG4 965 BPSZ BR PIS WHT Offset 921 164 WP4 970 BCOZ BR COFINS WHT

offset 926 164 WC4

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Step Cntr CTyp Description From To Man. Reqt SubTo Stat AltCTy AltCBV ActKy

975 BCSZ BR CSLL WHT offset 931 164 WS4 980 BIRZ BR IR WHT offset 936 164 WI4 999 BI00 Dummy for Tax 1 X X

The SD pricing procedure below is the new price supplement procedure RVABR2 which is introduced for the optional new price conditions. It can be configured in the following way:

St C CTyp Description Fro

To M M S P S Req A.C

A.B.

Act.K

10 1 ZPB0 Price w/o Taxes10 2 ZPB1 Price+ISS10 3 ZPB2 Price+PIS+COF10 4 ZPB3 Price+ISS+PIS+COF40 1 RA00 % Discount from Net40 2 RB00 Discount (Value)40 3 RC00 Quantity Discount40 4 RD00 Weight Discount

15 Nota Fiscal MappingOnly the new entries are listed.

15.1 Tax Values MM

TxTy Tax Rate

Map Pauta Rate

Map Tax Amount

Map Tax Base

Map Ex. Base

Map Other Base

Map WHT Code

ICOF BCO1 1 BCOP 0 ICOF 0 BX70 0 BX71 0 0ICON BCO1 1 BCOP 0 ICON 0 BX70 0 BX71 0 0ICOW BW22 1 0 ICOW 0 BXWT 0 0 0 BW21ICSW BW32 1 0 ICSW 0 BXWT 0 0 0 BW31IGEW BW02 1 0 IGEW 0 BXWT 0 0 0 BW01IIRW BW42 1 0 IIRW 0 BXWT 0 0 0 BW41IPIS BPI1 1 BPIP 0 IPIS 0 BX80 0 BX81 0 0IPSN BPI1 1 BPIP 0 IPSN 0 BX80 0 BX81 0 0IPSW BW12 1 0 IPSW 0 BXWT 0 0 0 BW11ISSA BIS1 1 0 ISSA 0 BX60 0 BX61 0 0ISSB BIS1 1 0 ISSB 0 BX64 0 BX65 0 0ISSE BISA 1 0 ISSE 0 BX6A 0 BX6B 0 0ISSF BISA 1 0 ISSF 0 BX6E 0 BX6F 0 0

15.2 Tax Laws MMTax Group Condition TypeISSP BIS3ISSS BISC

15.3 Tax Values SD

TxTy Tax Rate

Map Pauta Rate

Map Tax Amount

Map Total Base

Map Tax Base

Map Ex. Base

Map Other Base

Map WHT Code

ICON BCO1 1 BX7P 0 BX72 0 BX70 0 BX70 0 0 0ICOW BW22 1 0 BW22 0 BXWT 0 BXWT 0 0 0 BW21ICSW BW32 1 0 BW32 0 BXWT 0 BXWT 0 0 0 BW31IGEW BW02 1 0 BW02 0 BXWT 0 BXWT 0 0 0 BW01IIRW BW42 1 0 BW42 0 BXWT 0 BXWT 0 0 0 BW41IPSN BPI1 1 BX8P 0 BX82 0 BX80 0 BX80 0 0 0IPSW BW12 1 0 BW12 0 BXWT 0 BXWT 0 0 0 BW11ISSA ISVB 1 0 BX62 0 BX60 0 BX60 0 BX61 0 0ISSB ISVB 1 0 BX63 0 BX64 0 BX64 0 BX65 0 0ISSE ISVN 1 0 BX6C 0 BX6A 0 BX6A 0 BX6B 0 0ISSF ISVN 1 0 BX6D 0 BX6E 0 BX6E 0 BX6F 0 0

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16 Customizing of Extended WHT

16.1 WHT Types at PaymentBase amount = Modified Tax AmountRounding rule = W/tax comm roundCash Discount = C/disc pre W/txPost w/tax amount = XNo accumulationW/tax base manual = XManual w/tax amount = XNo cert numbering = XBase amount = W/tax code levelWithholding tax amount = W/tax code levelNo central invoiceMinimum Check at item level

W/Tax Type DescriptionCP COFINS at PaymentGP General WHT (PIS/COF/CSLL/IR) at PaymentPP PIS at PaymentRP IR at PaymentSP CSLL at Payment

16.2 WHT Types at InvoiceBase amount = Modified Tax AmountRounding rule = W/tax comm roundPost w/tax amount = XNo accumulationW/tax base manual = XManual w/tax amount = XNo cert numbering = XBase amount = W/tax code levelWithholding tax amount = W/tax code level

W/Tax Type DescriptionIW ISS WHT

16.3 WHT CodesPercentage subject to tax: 100,00%With/tax rate: 100,00%

W/Tax Type W/Tax Code DescriptionCP CP COFINS 100% WHT AmountGP CP General 100% WHT AmountIW IW ISS 100% WHT AmountPP PP PIS 100% WHT AmountRP RP IR 100% WHT AmountSP SP CSLL 100% WHT Amount

16.4 Define Processing Key For Modified Tax AmountWHT Type Processing KeyIW ISWCP WTCCP WC3PP WTPPP WP3SP WTSSP WS3RP WTIRP WI3GP WTG

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GP WG3

16.5 Assign WHT Types to Company CodesIn IMG, assign all relevant WHT types to all Brazilian company codes that are subject to them.

• To activate for MM, flag With/tax agent in vendor data and assign validity.

• To activate for SD, flag Subject to w/tax in customer data.

16.6 Define Accounts For Withholding Tax to Be Paid OverAssign G/L accounts for WHT to WHT types.

16.7 Define Official Collection CodesThe official WHT codes cannot be used to specify collection codes. Instead, define them in view V_T059Z_WITHCD2.

16.8 Assign Condition Types to Withholding Tax TypesWHT Type Condition TypeCP ICW4PP IPW4SP ISW4RP IRW4GP IGW4

16.9 Maintain Tax Relevant ClassificationArgentina Customizing: view V_1ATXREL, according to Note 178824

Tax rel. TextCP Cofins PaymentGP General WHT paymentPP PIS WHT PaymentRP IR WHT PaymentSP CSLL WHT payment

16.10Maintain Withholding Tax SD ConditionsTransaction VK11.

Country BR. Maintain for all conditions a rate of 100%, assign validity.

Condition Tax Rel. Class. W/tax codeICW4 CP CPIPW4 PP PPISW4 SP SPIRW4 RP RPIGW4 GP GP

17 FI Tax CodesActivate additional taxes in transaction J1BTAX for existing tax codes or create new ones.

17.1 Tax Codes Used in MM

17.1.1 To activate COFINS non-deductible: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

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17.1.2 To activate PIS non-deductible:Active Cond. Type Description Tax Group Acct. Key

X IPSN PIS NVV Normal Tax PIS NVV

X IPSO PIS NVV Offset Tax Included PIS NVV

17.1.3 To activate COFINS deductible:Active Cond. Type Description Tax Group Acct. Key

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

17.1.4 To activate PIS deductible:Active Cond. Type Description Tax Group Acct. Key

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

17.1.5 To activate withholding taxes:Active Cond. Type Description Tax Group Acct. Key

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

17.1.6 To activate ISS New 2004:Active Cond. Type Description Tax Group Acct. Key

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

18 SD Tax Codes (View J_1BTXSDCV)Activate additional taxes for SD tax codes by flagging the relevant taxes on the existing SD tax codes or on newly created ones.

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19 Maintain Settings For External Tax Calculation

19.1 Structure for Tax Jurisdiction Code (View V_TTXD)New entry for TAXBRA. Level1 = 3, level2 = 4.

19.2 Activate External Tax CalculationFor calculation procedure TAXBRA, specify ext. system C.

19.3 Define Logical DestinationFor ext. system C, specify:

C JUR J_1BTAXJUR_DETERMINE_NEW

C TAX J_1BCALCULATE_TAXES

20 Define Tax Jurisdiction CodesFor new ISS calculation, two-level jurisdiction codes should be maintained.

The proposal is to use the first three digits for the state (e.g. ‘SP ‘ for Sao Paulo) and the last four digits to define the municipio. A suggestion is to use the digits 4 through 7 of the IBGE code for this. As an example, ‘SP 0308’ would be the municipio of SAO PAULO, ‘SP 4850’ the municipio of SANTOS, etc.)

21 Assign Jurisdiction Codes to Ranges of Postal CodesFor proper tax jurisdiction code validation and value help, assign valid ranges of postal codes to the newly created tax jurisdiction codes.

22 Master Data ChangesThere are changes to master data necessary in order to correctly effectuate the new tax calculation.

22.1 Vendors (Transaction XK02)

Assign all WHT types and codes that are applicable.

Update address with new tax jurisdiction code for correct ISS calculation.

22.2 Customers (Transaction XD02)

Assign all WHT types and codes that are applicable.

Update address with new tax jurisdiction code for correct ISS calculation.

22.3 Other Address Changes: Organizational StructureIn order to allow correct calculation of ISS, all relevant adresses must be updated with the new Jurisdiction codes. This is necessary for:

• Company Codes

• Plants

• Business Places (Filial)

• General addresses of central address management that are used as delivery addresses

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23 ISS CustomizingDetails about the ISS Customizing logic can be found in the ISS documentation. Here, only an overview of the necessary Customizing steps is given.

23.1 Tax LawsView: J_1BATL3V. Maintain definitions for ISS tax laws.

23.2 Official Service TypesDefine official service types for purchasing (view J_1BSERVTYPES1V) and sales (view J_1BSERVTYPES2V) processes.

23.3 Generic Service TypesDefine generic service types in view J_1BGENSERVTV.

23.4 Assign Official Service TypesAssign official service types as needed:

• to generic service types (table J_1BSERVASSIGN1)• to material numbers (J_1BSERVASSIGN2)

24 Tax Rates

24.1 COFINSMaintain entries in transaction J1BTAX (view J_1BTXCOFV). Use the tax groups of dynamic exceptions you created.

24.2 PISMaintain entries in transaction J1BTAX (view J_1BTXPISV). Use the tax groups of dynamic exceptions you created.

24.3 ISSMaintain entries in transaction J1BTAX (view J_1BTXISSV). Use the tax groups of dynamic exceptions you created.

24.4 Withholding TaxesMaintain entries in transaction J1BTAX (view J_1BTXWITHV). Use the tax groups of dynamic exceptions you created.

You define either a general WHT collection code and a combined rate or the four individual withholding taxes separately.

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