Brazil Taxes Configuration - SD

[Former Member]

Hi,

We are currently rolling out the SD functionality (only service materials) to LATAM and the country specific settings are the major challenges for us. We do not have any inventory managed materials and MM module also being implemented.

The withholding taxes retained by the customers are IR, CSLL, COFINS and PIS. We did the base configuration for SD tax calculation.

I would like to have your suggestions/answers for the following questions?

1) The tax rates for the above mentioned taxes are maintained in the tax tables (T.code :J1BTAX). On saving the values the SD / Tax Condition records are being successfully created for the combination of the dynamic keys. But the system is populating the tax code as "SD" into the condition record which is not maintained any where? Is this the default the system uses or do we need to do any assignments anywhere?

2) Is it required to maintain the SD tax codes in transaction FTXP? (As it is clearly mentioned that it is not required for MM/FI tax codes whereas no where it is given for SD)

3) As we do not have municipal taxes (ISS), do we still need to use Jurisdictions based calculation for above mentioned tax types. (also we do not have external tax calculation systems).

4) In case of pricing, all the tax condition types in the sales documents are having the application values as "V". Is this correct or does it needs to have "TX".

5) In case of above taxes, the invoice results only in debiting the tax accounts once. Is this correct?

6) We understood from the discussions that we have two instances of tax calculation. 1) Customers withholding tax calculation during the creation of domestic invoices. 2) Posting adjustment tax amount(with the amount already with held in the individual invoices) on the invoice accrued amount on periodic basis using FI-JV. Is our understanding correct?

Appreciate your early response. Pls feel free to ask any clarifications you require.

Regards,

Selvakumar

[Former Member]

Hi Anbumani,

R u still looking for some answers or ur problem got solved?

Rgds

manish

[Former Member]

Thanks Manish.

I found the solution by doing some R&D. However, you can always provide some valuable inputs.

Regards,

[Former Member]

Anbumani,

Some comments from myside on your questions.

1) The tax rates for the above mentioned taxes are maintained in the tax tables (T.code :J1BTAX). On saving the values the SD / Tax Condition records are being successfully created for the combination of the dynamic keys. But the system is populating the tax code as "SD" into the condition record which is not maintained any where? Is this the default the system uses or do we need to do any assignments anywhere?

An internal code has to be created for each condition type that is to be used in the automatic gen eration of condition records during the maintenance of the Brazilian tax tables. Only the internal codes are used in the program coding. By this mapping, the customers are free to use their own condition types.The internal codes are maintained in the TMW by choosing Condition Setup u2013 Condition Mapping u2013 Internal Codes in the menu or maintaining the view J_1BCONDMAPV. The customer usually is not expected to maintain this table because SAP delivers the internal codes required for the standard Brazilian tax calculation. For the internal codes that represent condition types that contain data of a specific tax group (ICMS, IPI, ISS, or SubTrib), the respective tax group has to be assigned to the codes. This is necessary for the system to consider the access sequence of the condition type assigned to the internal code in the automatic extension of access sequences after changing tax groups of dynamic exceptions.

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2) Is it required to maintain the SD tax codes in transaction FTXP? (As it is clearly mentioned that it is not required for MM/FI tax codes whereas no where it is given for SD)

Definition of tax codes that are used in SD applications. The activity can also be accessed by pressing the SD button in the application toolbar. The IMG activitity that corresponds to this menu item can be found in IMG  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Calculation  Settings for Tax Calculation in Brazil  Define SD Tax Codes. The corresponding maintenance view is J_1BTAXCODEV.

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3) As we do not have municipal taxes (ISS), do we still need to use Jurisdictions based calculation for above mentioned tax types. (also we do not have external tax calculation systems).

Yes

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Hope this helps you.

Rgds

Manish

[Former Member]

Hi Guys,

we are doing CBT tax calculation with RVABRA and TAXBRA but in the sales order the taxes are not calculated.

For example condition type BX13 is zero and all other tax amounts are zero too.

i do not know where the mistakes come from.

Could somebody advice me?

Many thanks in advance.

Ajay

[former_member485270]

Hi Ajay,

Are you still facing the problem with pricing procedure RVABRA?

Regards,

Nishan

[Former Member]

Hi Níshan,

thanks for asking me about this.

I have solved this issue now.

I have other question related to brazil specific settings.

Do you have any idea how to solve this importation tax in TAXBRA calculation procedure?

Do you have any idea how to implement this kind of syscom expense in this procedure as well?

And future delivery sales can we use also RVABRA?

And if yes why we have in both invoices revenues involved ?

Much appreciated if you can provide me any answers.

Thanks

Ajay

[Former Member]

Hi,

the calculation schema must be activate using the transaction, financial accounting (new), financial accounting global settings (new), tax on sales/purchases, basic settings, brazil, condition-bases tax calculation, specify calc procedures for condition-based tas calculation.

And the taxes and basic rates must be included at j1btax tables.