Brazil_Condition_Based_Tax_Calculation_V1 9

Prévia do material em texto

CBT – Condition-Ba sed Tax Calcula tion 
for Brazil 
16.09.2014 
Condition-Based Tax Calculation for Brazil 2 
 
 
 
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ness Objects and the Business Objects logo are trademarks or registered trademarks of Business 
Objects Software Ltd. Business Objects is an SAP company. 
Sybase and the Sybase logo are registered trademarks of Sybase Inc. Sybase is an SAP 
company. 
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Condition-Based Tax Calculation for Brazil 3 
 
 
 
Table of Contents 
1 Version History .................................................................................... 6 
2 General information ............................................................................. 8 
2.1 Scope of this document ................................................................................... 8 
2.2 Out of scope .................................................................................................... 8 
2.3 How to use this document ............................................................................... 9 
3 Introduction on condition-based tax calculation ............................ 10 
3.1 Classic tax calculation ................................................................................... 10 
3.2 Condition-based tax calculation ..................................................................... 10 
4 How to set up the condition-based tax calculation ......................... 11 
4.1 First steps ..................................................................................................... 11 
4.1.1 Prerequisites and release notes .................................................................... 11 
4.1.2 BC Sets for CBT ............................................................................................ 11 
4.1.3 Maintain Settings for external tax calculation ................................................. 12 
4.1.4 Tax Jurisdiction Codes .................................................................................. 14 
4.2 CBT customizing settings for ICMS, IPI, PIS and COFINS ............................ 15 
4.2.1 Activate condition generation ........................................................................ 15 
4.2.2 Specify Calculation Procedures for Condition-Based Tax Calculation ........... 15 
4.2.3 Assign country to calculation procedure ........................................................ 15 
4.2.4 Access sequences ........................................................................................ 16 
4.2.5 Condition types ............................................................................................. 16 
4.2.6 Account keys ................................................................................................. 18 
4.2.7 Define internal codes for tax conditions ......................................................... 19 
4.2.8 Assign condition types to internal codes for tax conditions ............................ 19 
4.2.9 Assign internal code to tax group................................................................... 20 
4.2.10 Tax groups for dynamic exceptions ............................................................... 20 
4.2.11 Assign condition tables to tax rate tables ....................................................... 22 
4.2.12 Tax calculation logic ...................................................................................... 23 
4.2.13 Tax Types ..................................................................................................... 26 
4.2.14 Price conditions ............................................................................................. 27 
4.2.15 Customizing Settings MM/FI .......................................................................... 28 
4.2.16 Customizing Settings SD ............................................................................... 29 
4.2.17 Tax Rates ...................................................................................................... 32 
4.2.18 Other (manual) Customizing settings for ICMS, IPI, PIS/COFINS.................. 33 
4.3 CBT Customizing settings for ISS .................................................................. 34 
4.3.1 Create condition table A601 .......................................................................... 34 
4.3.2 Extend pricing field catalog. ........................................................................... 36 
4.3.3 Access sequences for ISS ............................................................................. 36 
4.3.4 Create condition types for ISS ....................................................................... 38 
4.3.5 Define account keys for MM/FI and SD.......................................................... 38 
4.3.6 Update calculation procedures for MM/FI and SD .......................................... 39 
4.3.7 Create new internal condition codes .............................................................. 39 
4.3.8 Create mapping of internal codes to condition types ..................................... 39 
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4.3.9 Assign internal code to tax group................................................................... 39 
4.3.10 Tax groups for dynamic exceptions ............................................................... 39 
4.3.11 Assign condition tables to tax rate tables ....................................................... 39 
4.3.12 ISS Tax Types............................................................................................... 39 
4.3.13 Price conditions for ISS ................................................................................. 40 
4.3.14 Assign G/L accounts for ISS posting ............................................................. 40 
4.3.15 ISS tax rates.................................................................................................. 40 
4.3.16 Map MM tax values to nota fiscal fields ......................................................... 40 
4.3.17 Map MM tax laws to nota fiscal fields ............................................................ 41 
4.3.18 Map SD tax values to nota fiscal fields .......................................................... 41 
4.3.19 Other ISS (manual) Customizing Settings ..................................................... 41 
4.3.20 Tax codes for MM and SD ............................................................................. 42 
4.4 CBT Customizing settings for WHT taxes with accumulation ......................... 43 
4.4.1 Access sequences for withholding taxes ....................................................... 43 
4.4.2 Condition types for withholding taxes ............................................................ 43 
4.4.3 Define account keys for MM/FI and SD.......................................................... 44 
4.4.4 Assign G/L accounts for withholding tax posting ............................................ 44 
4.4.5 Create condition value formulas for withholding taxes ................................... 44 
4.4.6 Update calculation procedures for MM/FI and SD .......................................... 44 
4.4.7 Define internal condition codes for withholding taxes ..................................... 45 
4.4.8 Mapping of internal codes to condition types ................................................. 45 
4.4.9 Assign internal code to tax group................................................................... 45 
4.4.10 Assign condition tables to tax rate tables ....................................................... 45 
4.4.11 Tax Types for withholding taxes .................................................................... 45 
4.4.12 Check withholding tax countries ....................................................................45 
4.4.13 Define withholding tax type for invoice posting .............................................. 46 
4.4.14 Define withholding tax type for payment posting ............................................ 46 
4.4.15 Define account key for modified tax amount .................................................. 48 
4.4.16 Assign condition type to withholding tax type ................................................. 49 
4.4.17 Maintain Tax Relevant Classification ............................................................. 50 
4.4.18 Maintain Withholding Tax SD Conditions ....................................................... 50 
4.4.19 Define withholding tax codes ......................................................................... 51 
4.4.20 Define minimum base amount for withholding tax types ................................ 51 
4.4.21 Define official collection codes ...................................................................... 52 
4.4.22 Maintain Wht tax rates and assign official collection codes ............................ 52 
4.4.23 Assign withholding tax types to company code .............................................. 52 
4.4.24 Activate extended withholding tax ................................................................. 52 
4.4.25 Define accounts for withholding tax to be paid over ....................................... 53 
4.4.26 Update vendor and customer master data ..................................................... 53 
4.4.27 Map MM tax values to nota fiscal fields ......................................................... 53 
4.4.28 Map SD tax values to nota fiscal fields .......................................................... 53 
5 Appendix ............................................................................................ 54 
5.1 SAP Standard Tables .................................................................................... 54 
5.1.1 Access sequences for application TX (MM/FI) ................................................... 54 
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5.1.2 Access sequences for application V (SD) ...................................................... 54 
5.1.3 Condition types for application TX (MM/FI) ........................................................ 55 
5.1.4 Condition types for application V (SD) ........................................................... 62 
5.1.5 Tax calculation procedure TAXBRA .............................................................. 67 
5.1.6 Pricing procedure RVABRA ........................................................................... 75 
5.2 Tax codes configuration ................................................................................ 81 
5.2.1 To activate COFINS non-deductible .............................................................. 81 
5.2.2 To activate PIS non-deductible ...................................................................... 82 
5.2.3 To activate COFINS deductible ..................................................................... 82 
5.2.4 To activate PIS deductible ............................................................................. 82 
5.2.5 To activate withholding taxes ........................................................................ 83 
5.2.6 To activate ISS .............................................................................................. 83 
5.3 Migration from classical to condition based tax calculation ............................ 83 
5.3.1 Tools to check and migrate tax customizing to condition records................... 84 
5.3.2 Mass migration program ................................................................................ 84 
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1 Version History 
Document Version Valid From Comment 
 
 
V1 01.12.2012 New documentation for the condition-based tax calculation for 
Brazil, which replaces the documents: 
 Docu_CBT_302.zip attached to the note 664855 (Brazil: 
New Condition-Based Tax Calculation); 
 Customizing_ISS_PIS_COFINS_for_CBT_v2_1.doc at- 
tached to the note 747607 (Basic Customizing for MP135 
and ISS legal change Brazil); 
 Customizing_WHT_Accumulation_for_CBT.pdf at- 
tached to the note 916003 (Brazil: Withholding tax accu- 
mulation for CBT). 
 
V1.1 20.12.2012 Changes to the section 4.1.1: one SAP note has been deleted from 
 the preconditions, because it is obsolete. 
V1.2 08.01.2013 Changes to the section 5.1.5: some steps of the tax calculation 
procedure TAXBRA related to CTe have been updated. The BC 
sets ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM has 
 been updated as well. 
V1.3 09.04.2013 Correction of RVABRA table (p.78), by steps 914 and 915 the for- 
mulas were supposed to be in the Alt.CTy column and not in Alt- 
 CBV. 
V1.4 11.08.2014 Update of pricing procedure RVABRA and corresponding update of 
BC set ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD: subtotal 1 
added to condition type ICMI in step 300 and deleted from other 
steps (see details in chapter 5.1.6). 
 Update of BC set ZCSC_BR_CBT_CONDITION_TYPES_SD: 
update of some condition types for withholding taxes and ISS with- 
held. 
 Update of BC set ZCSC_BR_CBT_CONDITION_TYPES_MM: 
 condition type BFI2 updated. 
 Update of BC set ZCSC_BR_CBT_MAP_SD_VLS_TO_NF_FDS: 
update due to the changes in the SD condition types. 
 Update of BC set ZCSC_BR_CBT_MAP_MM_VLS_TO_NF_FDS: 
update of tax type IC1C. 
 Small changes in the BC set ZCSC_BR_CBT_TAX_TYPES: up- 
 date of PT descriptions. 
V1.5 15.08.2014 Update of BC set ZCSC_BR_CBT_CONDITION_TYPES_MM and 
document section 5.1.3 (condition types CCOP, CCOX, CIC0, 
BX2B, BX7B and BX8B added). 
 Update of BC set ZCSC_BR_CBT_CONDITION_TYPES_SD and 
document section 5.1.4 (condition types ICOL, BPIL, BX2B, BX7B 
and BX8B added). 
 Update of BC set ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM 
and document section 5.1.5. 
 Update of BC set ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD 
and document section 5.1.6. 
 Update of BC set ZCSC_BR_CBT_INTERNAL_COND_CODES 
(internal codes TAXREGION_IN, ICMSDISCOUNT_IN, 
NF_PIS_PAUTA_BASE, NF_COFINS_PAUTA_BASE, 
NF_IPI_PAUTA_BASE added). 
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Condition-Based Tax Calculation for Brazil 7 
 
 
V1.6 Update of BC set CSC_BR_CBT_INT_CODS_TO_CND_TYPS. 
Update of BC sets: 
ZCSC_BR_CBT_MAP_MM_VLS_TO_NF_FDS 
ZCSC_BR_CBT_MAP_SD_VLS_TO_NF_FDS 
 
V1.7 13.01.2016 Update of BC set ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM 
(inclusion of Step 631 – condition ICZG and document section 
5.1.5). 
V1.8 28.04.2016 Enablement of configurations for S4HANA landscape. Changes in 
section 2. 
V1.9 28.12.2016 Calculation Procedure TAXBRA – Accounting Key for Condition 
ICZG (Step 631) changed from ICX to NVV 
BCSet ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM updated. 
 Calculation Procedure TAXBRA – Accounting Key for Conditiion 
ICZF (Step 630) chaged from ICZ to NVV 
BCSet ZCXC_BR_CBT_TAXBRA_CALC_PROCD_MM updated.. 
 Split of ISS offset for MM. Changes in sections 5.1.3 and 5.1.5. 
Changes in MM condition types, TAXBRA procedure, internal 
codes and internal code mapping. 
Update of BC sets: 
ZCSC_BR_CBT_CONDITION_TYPES_MM 
ZCSC_BR_CBT_INT_CODS_TO_CND_TYPS 
ZCSC_BR_CBT_INTERNAL_COND_CODES 
ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM 
ZCSC_BR_CBT_TAX_TYPES 
 
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Condition-Based Tax Calculation for Brazil 8 
 
 
 
 
 
2 General information 
This document is aimed at consultants and customer’s key users to help them implementing the condi- 
tion-based tax calculation (CBT) for the most important types of taxes required in Brazil. 
Additionally to the description of the customizing activities, the present document provides you with the 
information about BC sets which are provided by SAP and which can be used to fill the customizing 
tables more quickly. In this way, you can check the standard customizing entries and also easily im- 
plement them in your system. 
The present documentationand the BC sets described in this document are attached to the note 
1706309. The delivered BC sets are valid for release ECC 6.00 and higher. No BC sets for releases 
ECC 5.00 and lower releases are delivered. 
The present documentation also replaces the document attached to the note 664855 and also the BC 
sets delivered together with the present documentation shall be used instead of the ones provided in 
the note 664855. 
For general information about the SAP strategy on condition-based tax calculation for Brazil and SAP 
recommendations, refer to the note 1538088. 
The described configurations in this document are also valid for S4HANA landscape. New BC 
sets for S4CORE software component are added in note 1706309. 
 
2.1 Scope of this document 
This document describes the settings required by the condition-based tax calculation for Brazil. 
This comprises the CBT customizing settings for handling: 
 IPI and ICMS taxes 
 PIS and COFINS contributions 
 ISS – service taxes 
 Withholding taxes in general and 
 Withholding taxes with tax base amount accumulation. 
The present document provides complete information about the CBT set up and replaces some docu- 
ments about Brazilian tax calculation, which are listed in the section 1. 
The present document focuses on new installations, which means on customers who start implement- 
ing Brazilian tax settings from scratch. The document is also not aimed to customers using the classi- 
cal tax calculation for Brazil and who would like to migrate to the condition-base tax calculation. About 
this topic see also section 5.2 and following. 
Some new developments, like the freight invoice (Conhecimento de Transporte Eletrônico) and the legal 
change for PIS and COFINS rates with 4 decimal places, are only partially covered in the present 
documentation. Details about this can be found in the next section. 
 
2.2 Out of scope 
All customizing activities and BC sets refer to Brazil, which means that they cannot be used for other 
countries even if in those countries the condition-based tax calculation is used. 
This document does not describe generic customizing settings for Brazil which are not related to con- 
dition-based taxes. For example, this document does not handle the setup of Brazil specific movement 
types, billing types and so on. 
This document does not describe the Tax Manager’s Workplace in details, but it considers only the parts 
of the Tax Manager’s Workplace which apply to CBT settings. For example, the customizing of tax 
regions, NCM codes and other entities – which can be customized in the Tax Manager’s Work- place – 
are not handled in this document. 
The development for CT-e (Conhecimento de Transporte Eletrônico) is included in this documentation 
only partially. For simplification reasons, the CT-e content, like condition types and the corresponding 
entries in the tax calculation procedures for MM and SD, are included in the BC sets mentioned in the 
present documentation. In such cases the CT-e entries are mentioned explicitly so that you are aware 
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Condition-Based Tax Calculation for Brazil 9 
 
 
of them. Other settings and coding, which might be required for the CT-e functionality (like for example 
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Condition-Based Tax Calculation for Brazil 10 
 
 
 
condition types for application M) are not part of the present document. Check the note 1677119 and 
other related notes for details about the CT-e legal change and the CT-e solution from SAP. 
The legal change for PIS and COFINS rates with 4 decimal places is treated similarly as the CT-e legal 
change. Such content, like condition types and the corresponding entries in the tax calculation 
procedures for MM and SD, are included in the BC sets mentioned in the present documentation. In 
such cases, the entries related to PIS and COFINS rates with 4 decimal places are mentioned explicit- 
ly. Other settings and coding are not part of the present document. Check the note 1675010 for details 
about the legal change and the solution delivered by SAP. 
 
2.3 How to use this document 
This document is aimed to be a configuration guide for the condition-based taxes required in Brazil. 
It should guide you through the required customizing activities and can be seen as a comprehensive 
check list for CBT settings. 
Of course the business processes of your company determine which settings you need to implement. 
To facilitate the implementation, the present documentation contains different sections for different types 
of taxes, so that you can implement only the settings which are required in your company. For example 
if your company does not buy or sell services, you can skip the part regarding ISS taxes. 
The chapter 4 containing the CBT customizing is therefore divided into different sections: 
 Section 4.1: settings which are common to the different SD and MM areas and to several tax- 
es; you always need to perform these customizing activities. 
 Section 4.2: settings required for ICMS/IPI/PIS/COFINS. 
 Section 4.3: ISS customizing. 
 Section 4.3.20: customizing settings for withholding taxes. 
The required customizing settings are listed in the sequence they should be performed. 
Additionally, having different sections for different tax types allows you to split the work among differ- 
ent persons, for example the MM expert and the SD expert. 
Use this document together with the BC sets delivered in the note 1706309, since some of the cus- 
tomizing activities refer to BC sets and the latter can be used to enter or complete the customizing 
settings in a faster way. 
The chapter 5 provides additional material and references. 
 Section 5.1 shows the access sequences, the conditions types and the tax calculation proce- 
dures for both applications SD and MM as they are contained in the SAP standard delivery. It 
also gives a more detailed explanation about the tax calculation procedure TAXBRA and the 
pricing procedure RVABRA. 
 Section 5.3 highlights what you need to do if you switch on the condition-based tax calculation 
while you are already working with Brazilian taxes using the classic tax calculation. 
There is a variety of customizing settings, which are necessary so that Brazilian taxes can be calculat- 
ed and displayed correctly in the Nota Fiscal. Most of these settings can be done in the Tax Manager’s 
Workplace (transaction J1BTAX). Such preliminary settings are not described in detail in this docu- 
ment, since they are not strictly required for the condition-based tax calculation. However, they are 
mentioned as additional steps since you need to perform these activities before creating posting doc- 
uments in your Brazilian company. 
Selecting the Tax Manager’s Workplace via IMG menu, you will have access to the IMG documenta- 
tion of the Tax Manager’s Workplace which explains all customizing activities to be performed there in 
detail. You do this in the IMG: IMG € Financial Accounting (New) € Financial Accounting Global Set- 
tings (New) € Tax on Sales/Purchases € Calculation € Settings for Tax Calculation in Brazil € Ac- 
cess Tax Manager's Workplace. Instead of entering the Customizing activity, click on the documenta- 
tion icon in order to access the Tax Manager’s Workplace documentation. In the newest support pack- 
ages the Tax Manager’s Workplace documentation can be accessed also from the Tax Manager’s 
Workplace itself (transaction J1BTAX). This change is delivered by support package; the valid support 
package for each release can be seen in the note 1706309. 
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Condition-Based Tax Calculation for Brazil 11 
 
 
 
3 Introduction on condition-based tax calculation 
In Brazil, there are several taxes on sales and purchases of which the most common are: 
 Industrial product tax (IPI - Imposto sobre Produtos Industrializados); this is a federal tax. 
 State value-added tax (ICMS - Imposto sobre Operações relativas à Circulação de Mercado-rias e Prestação de Serviços de Transporte Interestadual e Intermunicipal e de Comuni- cação). 
 Special forms of ICMS: 
o ICMS complement; 
o ICMS on freight (CT-e, which means Conhecimento de Transporte Eletrônico); 
o ICMS tax substitution (SubTrib) and SubTrib on freight CT-e. 
 Municipal tax on services (ISS - Imposto sobre serviços). 
 Social contributions due to special programs on federal level: 
o PIS - social integration program (Programa de Integração Social); 
o COFINS – social security financing contribution (Contribuição para o Financiamento 
da Seguridade Social). 
 Withholding taxes, like for example: 
o ISSF – withholding service tax (Imposto Sobre Servicos na Fonte); 
o IRRF – withholding income tax (Imposto de Renda Retida na Fonte); 
o CSLL – withholding social security tax (Contribuição Social sobre o Lucro Líquido). 
When a company buys or sells products/services, the SAP ERP system must calculate more than one 
tax base amount and tax amount. 
 
3.1 Classic tax calculation 
Due to the complexity of tax calculation in Brazil, the standard tax functionality based on tax rates 
customized in the transaction FTXP was never used. 
Instead, the classic way of calculating Brazilian taxes made use of the external tax interface. The tax 
calculation was executed by a dedicated function module rather than by direct processing of the tax 
calculation procedure assigned to the country. 
The tax code served to indicate which taxes are due, activating specific lines in the calculation proce- 
dure by setting the respective rate to 100%. Lines (taxes) which shall not be taken into account for the 
respective tax code must be deactivated (not only set to be 0%). 
 
3.2 Condition-based tax calculation 
The new approach of the Brazilian tax calculation makes use of the standard condition technique to 
calculate taxes. The rates are stored as condition records and determined during the pricing proce- dure. 
The whole calculation logic is contained in the calculation procedure itself. 
The tax rates, tax laws, and special indicators considering the appearance of the tax line item in the 
Nota Fiscal are maintained in Brazilian-specific views J_1BTX* (for example J_1BTXIP1 contains the 
IPI rates). The data is additionally present as condition records in the database. These records are 
directly read by the pricing logic. 
The generation of the condition records takes place during the view maintenance of the J_1BTX* ta- 
bles. Condition records are automatically written, updated, or deleted when data is maintained in the 
views and saved to the database. 
The whole Nota Fiscal logic is a matter of customizing and no longer to a great extent hard-coded. 
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Condition-Based Tax Calculation for Brazil 12 
 
 
 
4 How to set up the condition-based tax calculation 
 
4.1 First steps 
 
4.1.1 Prerequisites and release notes 
The present documentation is aimed to replace the attachments to the notes 664855, 747607 and 
916003. Therefore, you do not implement the customizing activities as described in the attachments of 
those 3 notes, but use the present document instead. 
However, the notes 664855 and 916003 do contain coding changes which are precondition for the CBT 
customizing and therefore, you must check that all coding and DDIC changes are already imple- mented 
in your system before starting with the customizing activities. 
Note 664855 - Brazil: New Condition-Based Tax Calculation 
If you are using the release 4.7, the required coding changes are contained in the support package 
SAPKH47017. If your system is on a lower support package of the release 4.7, you need to implement 
the coding changes manually. To do this, you need to follow the steps described under point 1“Coding 
Changes Release 4.7” of the note 664855. 
If you are using release 4.7 with SP equal to or higher than SAPKH47017, or if you are using an even 
higher release, all required coding changes are already available in your system. 
Note 916003 - Brazil: Withholding tax accumulation for CBT 
Finally, you need to implement the correction instructions of the note 916003. The DDIC and code 
changes can be applied by installing the required support package which is: 
 
Release SP 
 
470 SAPKH47026 
 
500 SAPKH50022 
 
600 SAPKH60017 
 
602 SAPKH60207 
 
603 SAPKH60306 
 
604 SAPKH60405 
 
Then you need to perform some manual activities which are described in the note text. These refer to 
two new condition value formulas, which are needed for calculating withholding taxes with and without 
accumulation. Such manual activities are described in the present document. Finally, you need some 
customizing activities: These are described in the present document. Therefore, ignore the attachment 
to the note 916003. 
 
4.1.2 BC Sets for CBT 
In order to facilitate the implementation of standard customizing for condition-based tax calculation, SAP 
delivers some BC sets. 
These BC sets contain table entries descriptions in English (EN) and in Portuguese (PT). 
Using the transaction SCPR3, you have access to the content of the BC sets and compare the BC set 
entries with the customizing entries available in your system. 
Since the BC sets contains entries in EN and PT, you must restrict the comparison and the activation of 
the BC sets to these two languages. In case you want to perform a comparison of the Customizing 
activities, it is recommended to only check texts in these two languages. In case you activate a BC set, 
this setting will prevent that entries in other languages are overwritten by empty text fields. 
To do this, go to the menu “Utilities” and select “User Settings”. Then choose “General Settings” and 
activate the check box “Use User Languages”. After that, choose EN and PT and confirm (Enter). This 
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Condition-Based Tax Calculation for Brazil 13 
 
 
 
selection can be done in both – the transactions SCPR3 (NC Sets Display) and SCPR20 (BC Sets 
Activation). 
Decide whether the respective BC set should be activated in your system or whether you want to fill the 
entries manually in the customizing tables. 
NOTE: It is highly recommended that you check any BC set before activating it since it could overwrite 
already existing settings in your system. 
The table below lists the BC sets for the CBT configuration, which you find attached to the note 1706309. 
For each BC set, the corresponding customizing activity, as well as a link to the correspond- ing section 
of the present document, is indicated. 
Note that the BC sets delivered through the note 1706309 start with Z*. This is necessary, so that you 
do not encounter any issue when uploading the BC sets to your SAP ERP system. The same BC sets 
with SAP names starting with CSC* will be delivered in the support package 6 for the release 606. 
The standard delivery customizing, which is provided by SAP for the client 000, is only updated in the 
latest release. Therefore, if you are using an older release, the standard customizing in your client 000 
may not contain the last updates. 
 
 
Customizing Activity Doc. Section BC Set Name 
Condition Types - MM/FI 4.2.5.1 ZCSC_BR_CBT_CONDITION_TYPES_MM 
Condition Types SD 4.2.5.2 ZCSC_BR_CBT_CONDITION_TYPES_SD 
Account Keys for MM/FI 4.2.6.1 ZCSC_BR_CBT_ACCOUNT_KEYS_FI 
Account Keys for SD 4.2.6.24.2.6.2 ZCSC_BR_CBT_ACCOUNT_KEYS_SD 
Define Internal Codes for Tax Conditions 4.2.7 ZCSC_BR_CBT_INTERNAL_COND_CODES 
Assign Condition Types to internal Codes for 
Tax Conditions 
4.2.8 ZCSC_BR_CBT_INT_CODS_TO_CND_TYPS 
Assign Condition Tables to Tax Rate Tables 4.2.11 ZCSC_BR_CBT_CND_TBS_TAX_RT_TBS 
Calculation Procedure TAXBRA (MM) 4.2.12.1 ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM 
Pricing Procedure RVABRA (SD) 4.2.12.2 ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD 
Tax types 4.2.13 ZCSC_BR_CBT_TAX_TYPES 
NF-relevant SD-Conditions for RVABRA 4.2.14.3 ZCSC_BR_CBT_NF_SD_CND_FOR_RVABRA 
Map MM Values to Nota Fiscal Fields 4.2.15.1 ZCSC_BR_CBT_MAP_MM_VLS_TO_NF_FDSMap 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 
 
4.1.3 Maintain Settings for external tax calculation 
The settings described below for external tax calculation as well as the settings for the tax jurisdiction 
codes are required for different purposes: 
 For the ICMS tax determination, the system must be able to determine the state of origin and 
state of destination for the goods. This information is derived from the tax jurisdiction code and 
must also be printed in the Nota Fiscal; 
 For the ISS tax determination, the system must determine the municipality of the service pro- 
vider and of the service recipient. 
 
4.1.3.1 Structure for Tax Jurisdiction Code (View V_TTXD) 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Specify Structure for Tax Jurisdiction Code 
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Condition-Based Tax Calculation for Brazil 14 
 
 
 
 
 
In this Customizing activity, you determine the structure of the tax jurisdiction code. This code is used 
for calculating taxes which are defined below the federal level. In Brazil these are for example ICMS, 
which is a state tax, and ISS, which is a city tax. This way, the tax rate is defined per level and the tax 
value is calculated individually per level. 
Create a new entry for the calculation procedure TAXBRA with the following settings: 
 
Scheme TAXBRA 
Length 1 3 
Length 2 7 
Length 3 Leave it empty 
Length 4 Leave it empty 
Taxes line by line X 
The correct size is 3 and 7 because the SPED FISCAL will capture 10 digits with the following struc- 
ture: 
SP 3550308 - São Paulo 
 “SP " = Region / State (Attention: it is SP and space) 
 35 = SP State code according to IBGE 
 50308 = São Paulo City (Município de São Paulo). 
 
4.1.3.2 Activate External Tax Calculation 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € External Tax Calculation € Activate External Tax 
Calculation 
Transaction Code SPRO 
 
 
 
For Brazil, you need to create the following entry: 
 
Scheme TAXBRA 
 
External system C 
All other fields Leave it empty 
 
 
4.1.3.3 Define Logical Destination 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Financial 
Accounting Global Settings € Tax on Sales/Purchases € Basic Settings € 
External Tax Calculation € Define logical destination 
Transaction Code SPRO 
 
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 
Transaction Code SPRO 
16.09.2014 
Condition-Based Tax Calculation for Brazil 15 
 
 
 
 
TAX J_1BCALCULATE_TAXES Leave it empty 
 
4.1.4 Tax Jurisdiction Codes 
 
4.1.4.1 Define Tax Jurisdiction Codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Financial 
Accounting Global Settings € Tax on Sales/Purchases € Basic Settings € 
Brazil € Define Tax Jurisdiction Codes 
Transaction Code SPRO 
 
For new ISS calculation, two-level jurisdiction codes are to be maintained. 
The proposal is to use 10 digits tax jurisdiction code because the SPED FISCAL will capture 10 digits 
with the following structure: 
SP 3550308 - São Paulo 
 “SP " = Region / State (Attention: it is SP and space) 
 35 = SP State code according to IBGE 
 50308 = São Paulo City (Município de São Paulo). 
Enter all required tax jurisdiction codes in this table according to the rule explained above. 
 
4.1.4.2 Assign Jurisdiction Codes to Ranges of Postal Codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Financial 
Accounting Global Settings € Tax on Sales/Purchases € Basic Settings € 
Brazil € Assign Postal Codes to Tax Jurisdiction Codes 
Transaction Code SPRO 
 
Each geographical region can include a number of tax jurisdictions, which, in turn, are defined by its 
postal codes. In this Customizing activity, you assign a range of postal codes to each tax jurisdiction 
code. For each tax jurisdiction codes, assign the geographical region and the beginning and ending postal 
codes. 
When you maintain Brazilian address data (in master records or transaction data) and enter the postal code 
and geographical region, the system automatically assigns the correct tax jurisdiction code as follows: 
 It first accesses the data in this activity to determine the tax jurisdiction code. 
 If it does not find an entry there, it reads the tax region from the Define Brazilian Tax Regions 
and Assign to Geographical Regions Customizing activity. 
 
Once the system determines either the tax jurisdiction code or the tax region, it stores it in the Jurisdiction 
Code field of the address. 
 
Assign the formerly created tax jurisdiction codes to the ranges on postal codes. 
 
4.1.4.3 Update organizational units with tax jurisdiction code 
In order to allow correct tax calculation, all relevant addresses must be updated with the jurisdiction 
codes. This is necessary for: 
 Company Codes 
 Plants 
 Business Places (Filial) 
 General addresses of central address management which are used as delivery addresses. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 16 
 
 
 
4.2 CBT customizing settings for ICMS, IPI, PIS and COFINS 
The following sections describe the customizing settings which are required to calculate several types 
of taxes using the condition based tax calculation logic. These taxes are: 
 ICMS 
 IPI 
 PIS 
 COFINS 
The settings required for calculating ISS, which is the municipal service tax, will be described in a sep- 
arate section (4.3). 
The document contains also a separate section (4.4) for the withholding tax customizing. 
 
4.2.1 Activate condition generation 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € Acti- 
vate Condition Generation 
Transaction Code SPRO 
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. 
 
4.2.2 Specify Calculation Procedures for Condition-Based Tax Calculation 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide -> Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € 
Specify Calc. Procedures for Condition-Based Tax Calculation 
Transaction Code SPRO 
The system needs to identify whether the tax calculation in the currently processed calculation proce- 
dure is condition-based or not. The standard condition-based tax calculation procedures for Brazil are 
TAXBRA for MM and RVABRA for SD. 
Go to the respective Customizing activity and create two new entries: 
 For MM, create an entry for usage A, application TX, calculation procedure TAXBRA and set 
the CBT Act. Indicator. 
 For SD, create an entry for usage A, application V, calculation procedure RVABRA and set the 
CBT Act. Indicator. 
 
4.2.3 Assign country to calculation procedure 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide -> Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Assign Country to Calculation Procedure 
Transaction Code SPRO 
16.09.2014 
Condition-BasedTax Calculation for Brazil 17 
 
 
 
In this Customizing activity, you need to assign the calculation procedure TAXBRA to the country BR. 
 
4.2.4 Access sequences 
Access sequences are cross-client data delivered by SAP. 
In the condition-based tax calculation, adjust the access sequences whenever a new tax group is cre- 
ated or an existing group is changed. The section 4.2.10.1 describes how to update access sequenc- 
es. 
 
4.2.4.1 Define access sequences for application TX (MM/FI) 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide -> Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Check calculation procedure – Access Sequences 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Access Sequences MM 
Here you define the access sequences within the application TX. These access sequences can be used 
in the tax calculation that is called by the MM applications. The corresponding view cluster is 
VVC_T682_TX. 
Access sequences are delivered by SAP and you do not need to define them. 
All SAP standard access sequences for the application TX can be found in the section 5.1.1 of this 
document. 
 
4.2.4.2 Define access sequences for application V (SD) 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € 
Basic Functions € Pricing € Pricing Control € Define Access Se- 
quences € Maintain Access Sequences 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Access Sequences SD 
At this point, you can define the access sequences within the application V. These access sequences 
can be used in the SD pricing procedures. The corresponding view cluster is V_T682. 
Access sequences are delivered by SAP and you do not need to define them. 
All SAP standard access sequences for the application V can be found in the section 5.1.2 of this doc- 
ument. 
 
4.2.5 Condition types 
 
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 
Transaction Code SPRO 
Tax Manager’s Work- 
place (TMW) 
Condition Setup € Condition Types MM 
16.09.2014 
Condition-Based Tax Calculation for Brazil 18 
 
 
 
At this point, you define the condition types within the application TX. These condition types can be used 
in the tax calculation that is called by the MM application. The corresponding maintenance view is 
VV_T685A_V1. 
Condition types for the application TX (MM/FI) can be classified in the following classes: 
 Tax code conditions: they indicate that a certain tax type is due. These condition types have to 
be entered also in the table J_1BAJ in order to classify them as tax type. Some examples of tax 
code conditions are ICOF (COFINS deductible), ICON (COFINS normal tax). 
 Tax rate conditions: they contain tax data. These condition records are maintained automati- 
cally during the maintenance of the Brazilian tax rate tables. An internal code must be as- signed 
to each tax rate condition. See section 4.2.8. Tax rate conditions are for example BCO1 (COFINS 
Rate), BPI1 (PIS rate). 
 NF mapping conditions: these are only used to mark specific lines of the calculation procedure 
to use them in the Nota Fiscal mapping tables. These are for example BX80 (BR PIS Base), 
BX82 (BR PIS Amount). 
 NF mapping conditions with manually created condition records: these conditions are manual, 
that is, they have no access sequence and no condition records in the database. There are only 
2 such conditions: BXWT (BR WHT Base Amount) and BXWA (BR WHT Acc Base Amt). 
 For using the withholding tax functionality with base amount accumulation, you need the con- 
dition type BW51 (WHT Acc. Flag). 
 Conditions that refer to other conditions: These are conditions that have a reference condition 
containing the data. They are used to reuse a condition value in another line of the calculation 
procedure. 
The BC Set ZCSC_BR_CBT_CONDITION_TYPES_MM contains all standard condition types for MM/FI 
delivered by SAP. 
All standard delivered condition types for MM/FI can be found in the section 5.1.3 and following of this 
document. 
 
4.2.5.2 Create condition types for application V (SD) 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Dis- 
tribution € Basic Functions € Pricing € Pricing Control € 
Define Condition Types € Maintain Condition Types 
Transaction Code SPRO 
Tax Manager’s Workplace (TMW) Condition Setup € Condition Types SD 
At this point, you define the condition types within the application V. These condition types can be 
used in the SD pricing procedures. The corresponding maintenance view is V_T685A. 
Condition types for the application V (SD) can be classified in the following classes: 
 Tax code conditions: they indicate that a certain tax type is due. These condition types have to 
be entered also in the table J_1BAJ in order to classify them as tax type. Some examples of tax 
code conditions are: ICN3 (COFINS from SD), ICW3 (COFINS Withholding TaxSD). 
 SD tax code conditions: DCOF (COFINS due), DPIS (PIS due), DWHT (WHT due). 
 Tax rate conditions: they contain tax data. These condition records are maintained automati- 
cally during the maintenance of the Brazilian tax rate tables. An internal code must be as- signed 
to each tax rate condition. See section 4.2.8. Tax rate conditions are for example: BCO1 (COFINS 
rate), BPI1 (PIS rate). 
 NF mapping conditions: these are only used to mark specific lines of the calculation procedure 
to use them in the Nota Fiscal mapping tables. These are for example: BX80 (BR PIS Base), 
BX82 (BR PIS Amount). 
16.09.2014 
Condition-Based Tax Calculation for Brazil 19 
 
 
 
 For using the withholding tax functionality with base amount accumulation, you need the con- 
dition type BW51 (WHT Acc. Flag). 
 Conditions that refer to other conditions. These are conditions that have a reference condition 
containing the data. They are used to reuse a condition value in another line of the calculation 
procedure. 
You do not need to define condition types, because they are delivered by SAP. The BC Set 
CSC_BR_CBT_CONDITION_TYPES_SD contains all standard condition types for SD delivered by 
SAP. 
All standard delivered condition types for SD can be found in the section 5.1.4 and following of this 
document. 
 
4.2.6 Account keys 
 
4.2.6.1 Define account keys for MM/FI 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Check and Change Settings for Tax Processing 
Transaction Code SPRO 
 
You need several account keys in order to post the different tax types required in Brazil. The account 
keys are the ones which are used by the tax calculation procedure TAXBRA in order to post taxes for 
the application TX. 
In this activity, you make the necessary specifications for posting taxes. By doing this, you specify the fol- 
lowing indicators under an account key: 
 Tax type: output tax, input tax, additional taxes, or "not tax-relevant" can be specified as the 
tax type. 
 No deductibility for tax amounts: For this, tax amounts are marked as not deductible. 
 Posting indicator: you specify whether the tax amount is posted separately or distributed to 
expense or revenue items. 
 Tax not relevant to cash discount (not discount relevant): not relevant for Brazil. 
 
SAP delivers account keys for the most important tax types, you should neither delete nor change the 
standard account keys, but you may add new ones, if required. 
The BC set ZCSC_BR_CBT_ACCOUNT_KEYS_FI shows a list containing the standard account keys 
for Brazil. 
 
4.2.6.2 Define account keys for SDSAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € 
Basic Functions € Account Assignment/Costing € Revenue Ac- 
count Determination € Define And Assign Account Keys 
Transaction Code SPRO 
 
You define your account keys in this menu option and allocate them to the condition types in the pric- 
ing procedures. 
With the account keys, you group together similar accounts in financial accounting. Using the account 
key, the SAP System finds the desired G/L accounts. This way, you can allocate a separate account 
16.09.2014 
Condition-Based Tax Calculation for Brazil 20 
 
 
 
key to each condition type within a pricing procedure to implement detailed revenue account determi- 
nation. 
For example, you can allocate a freight condition to a freight revenue account, or a surcharge for 
packaging costs to a corresponding account for packaging revenues. 
For Brazil, you can use different account keys to post several kinds of taxes within the pricing proce- 
dure RVABRA. 
SAP delivers account keys for the most important tax types and their assignment to the pricing proce- 
dure RVABRA. You should neither delete nor change the standard account keys, but you may add 
new ones, if required. 
The BC set ZCSC_BR_CBT_ACCOUNT_KEYS_SD shows a list containing the standard account 
keys for SD for Brazil. 
 
4.2.7 Define internal codes for tax conditions 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € De- 
fine Internal Codes for Tax Conditions 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Condition Mapping €Internal Codes 
An internal code must exist for each condition type that is to be used in the automatic generation of 
condition records during the maintenance of the Brazilian tax tables. Only the internal codes are used 
in the program coding. 
The customer is usually not expected to maintain this table because SAP delivers the internal codes 
required for the standard Brazilian tax calculation. 
For the internal codes representing condition types that contain data of a specific tax group (ICMS, IPI, 
ISS, or SubTrib), the respective tax group has to be assigned to the codes. This is necessary for the 
system to consider the access sequence of the condition type assigned to the internal code in the 
automatic extension of access sequences after changing tax groups of dynamic exceptions. 
The corresponding maintenance view is J_1BCONDMAPV. 
The BC Set ZCSC_BR_CBT_INTERNAL_COND_CODES contains all standard internal condition codes 
delivered by SAP. 
 
4.2.8 Assign condition types to internal codes for tax conditions 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Financial 
Accounting Global Settings € Tax on Sales/Purchases € Basic Settings € 
Brazil € Condition-Based Tax Calculation € Assign Condition Types to In- 
ternal Codes for Tax Conditions 
Transaction Code SPRO 
Tax Manager’s Work- 
place (TMW) 
Condition Setup € Condition Mapping €Assign conditions to Internal Codes 
The condition types that are used in the tax calculation procedure have to be assigned to the above 
described internal codes. 
For the standard Brazilian tax calculation, SAP delivers all internal codes, condition types, and their 
assignments. 
The corresponding table is J_1BTXCOND. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 21 
 
 
 
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. 
 
4.2.9 Assign internal code to tax group 
The assignment of internal codes to tax groups is a necessary activity but it has no corresponding 
Customizing activity. 
First of all, check that the table J_1BTAXGRPCD contains all required entries as listed in the table 
below. You can do that using the transaction SE16N. 
If entries are missing, enter them. Go to the transaction SE11 and select the table J_1BTAXGRPCD to 
display. From there, follow the menu path Utilities -> Table contents -> Create entries. Alternatively, you 
can use the transaction SE16N to edit the table. 
The table J_1BTAXGRPCD in your system must contain all entries as shown below: 
 
Tax Group Internal Code 
 
COFI TXSDCCOFINS 
 
ICFR TXSDCICMSFREIGHT 
 
ICFS TXSDCSUBTRIBFREIGHT 
 
ICMS TXSDCICMS 
 
ICST TXSDCSUBTRIB 
 
IPI TXSDCIPI 
 
ISS TXSDCISS 
 
ISSP TXSDCISS 
 
ISSS TXSDCISS 
 
PIS TXSDCPIS 
 
WACO WHT_ACTIVE_COFINS_ACC 
WACS WHT_ACTIVE_CSLL_ACC 
WAIR WHT_ACTIVE_IR_ACC 
WAPI WHT_ACTIVE_PIS_ACC 
 
WAT WHT_ACTIVE_GEN_ACC 
 
WHCO WHT_ACTIVE_COFINS 
 
WHCS WHT_ACTIVE_CSLL 
 
WHIR WHT_ACTIVE_IR 
 
WHPI WHT_ACTIVE_PIS 
 
WHT WHT_ACTIVE_GEN 
 
 
4.2.10 Tax groups for dynamic exceptions 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Calculation € Settings for Tax Calculation in Brazil € Tax Rates € 
Define Tax Groups for Dynamic Exceptions 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Tax Calculation € Maintain Tax Groups 
In this Customizing activity, you define tax groups, which you use to define dynamic exceptions for 
Brazilian tax calculation. For each tax group, you can specify up to three key fields that are to be used 
to determine the tax rates for the tax types you activate it for. 
If you use the condition-based tax calculation for Brazil, you must adjust the access sequences that 
belong to the conditions that store the tax rates for each tax group that you create or change. You 
16.09.2014 
Condition-Based Tax Calculation for Brazil 22 
 
 
 
need to include a new step in all those access sequences that conditions use to calculate taxes for the 
tax types marked as active. SAP provides a program, J_1B_EXT_ACC_SEQ, which does this for you 
automatically. You access this from the Tax Manager's Workplace by choosing Condition Setup -> 
Migration -> Tax Groups in Access Sequences (refer to the program documentation for details). 
Note: The running of the J_1B_EXT_ACC_SEQ program can lead to cross-client changes in data. 
You can define groups in the range from 10 to 89. The numbers between 0 and 9 as well as between 
90 and 99 are reserved for SAP. These groups should not be deleted. SAP delivers the groups 1, 5 and 
97 to 99. 
The table below explains the usage of the tax groups delivered by SAP: 
 
Tax Group Usage 
 
1 MM: ICMS base reduction carrier 
SD: ICMS base reduction customer 
ISS rates (material-dependent) 
5 ICMS, IPI, S.T. material-dependent exceptions 
 MM: ISS exceptions (dependent on ship-from, ship-to, material) 
97 SD: IPI tax laws (based on NCM code) 
 
98 IPI standard taxes (based on NCM code) 
SD: IPI tax laws (based on country) 
ICMS standard tax rates (based on ship-from and ship-to) 
S.T. standard tax rates (based on ship-from, ship-to, S.T. group) 
 
99 Default taxes (based on country) 
SD: IPI tax laws (based on tax code) 
 
4.2.10.1 Migration of tax groups in access sequences 
You can use the report J_1B_EXT_ACC_SEQ to automatically update access sequences after you have 
created or changed tax groups for dynamic exceptions. 
You need to be authorized for cross-client Customizing if you want to modify the access sequences. It 
is important that you ensure that tax groups are not customized differently in different clients because 
with each conversion to access sequences, the previous Customizing settings will be overwritten. 
On the program selection screen, you enter the tax groups you want to include in the update. You can 
simulate the results of the program by setting the Simulate Only indicator. This is extremely important 
because the program makes cross-client changes to your data. If you have no authorization for cross- 
client customizing,this indicator is set by default and cannot be cleared. 
Additionally, you need to specify what type of conversion is to take place: 
Update access sequences - if you want to update existing steps in the access sequences. 
Insert into the access sequences - if you want to include new steps in the access sequences after 
creating a new tax group. 
Delete from access sequences - if you want to delete existing steps from the access sequences. 
Following the conversion or the simulation, the system displays a log that contains all messages is- sued 
during processing. 
The system behaves depending on the selected option 
A. Update access sequences 
If the system finds a step in the access sequence that has the same number of the tax group, it over- 
writes the step's field assignment with the values customized for the tax group. 
If the system does not find a corresponding step in the access sequence, it inserts a new step. 
If the system finds a step in the access sequence that corresponds to the selected tax group, but the 
Customizing settings indicate that this access sequence should not have this step, then the system 
deletes the step from the access sequence. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 23 
 
 
 
B. Insert into access sequences 
Select this option if the tax groups you have specified have no corresponding steps and field assign- 
ments in the access sequences yet (this would be the case when you have created a new tax group). If 
the system does find a step with the number of the tax group in an access sequence, it displays one of 
the following in the application logs: 
Warning message: the existing field assignment is identical to the field assignment that would be gen- 
erated by the conversion 
Error message: the actual field assignment differs, in which case the system does not change the access 
sequence 
C. Delete from access sequences 
Select this option if the tax groups you have specified are to be deleted from all access sequences used 
in the CBT. 
 
4.2.11 Assign condition tables to tax rate tables 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € As- 
sign Condition Tables to Tax Tables 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Condition Mapping €Map Tax Rate Tables to 
Condition Tables 
When you maintain Brazilian tax tables, the system generates or changes condition records automati- 
cally. In this Customizing activity, you specify which condition tables are to be used for a specific tax 
table. In the case of dynamic exceptions, you additionally specify the condition table per tax group. The 
system then knows for which condition table (which must be contained in the access sequence) condition 
records are to be generated. 
The BC Set ZCSC_BR_CBT_CND_TBS_TAX_RT_TBS contains all standard assignments of condi- tion 
tables to tax rate tables delivered by SAP. The BC set contains the black entries listed in the table below. 
These are all assignments of tax tables to condition tables, which are not dependent on a tax group (the 
tax group is empty). 
The red entries in the table below are not delivered by SAP because they depend on the tax groups that 
you define. In fact, the assignment of tax tables to condition tables is done with reference to a tax group 
for: dynamic exceptions for IPI, ICMS and Sub.Trib.; always for ISS, PIS, COFINS and withhold- ing 
taxes. 
 
 
Table Name Description Tax group Cond. Table 
J_1BTAXCODEV FI Tax Codes 3 
J_1BTREGX Tax Regions 394 
J_1BTXCI1** Maintain ICMS-Complement Exceptions 349 
J_1BTXDEF** Maintain Default Tax Rate Values 392 
J_1BTXIC1** Maintain ICMS Values 382 
J_1BTXIC2** Maintain ICMS Material-Dependent Excep- 
tions 
 382 
J_1BTXIP1** Maintain IPI Values 346 
J_1BTXIP2** Maintain IPI Material-Dependent Exceptions 346 
J_1BTXSDC SD Tax Codes 291 
J_1BTXIS1 Tax calc.: ISS rules for sales 121 
16.09.2014 
Condition-Based Tax Calculation for Brazil 24 
 
 
 
J_1BTXST1** Maintain SubTrib Material-Dependent Excep- 
tions 
 348 
J_1BTXST2** Maintain SubTrib Values 348 
J_1BTXCOF** Maintain COFINS Values any * 346 
J_1BTXIC3** Maintain ICMS Dynamic Exceptions any * 382 
J_1BTXIP3** Maintain IPI Dynamic Exceptions any* 346 
J_1BTXIS3 Grouped ISS any* 347 
J_1BTXISS** Maintain ISS Values any* except country 601 
 default ( this is table 
392) 
 
J_1BTXPIS** Maintain PIS Values any* 346 
J_1BTXST3** Maintain SubTrib Dynamic Exceptions any* 348 
J_1BTXWITH** Withholding Tax Calculation: Rates and Col- any* 346 
 lection Codes 
 
* 
SAP does not deliver standard Customizing of dynamic tax exceptions. If you create new tax groups, 
you must specify a new entry for each group you use. In SAP’s standard concept, the condition table is 
the same for all tax groups. However, in case you need to follow a different concept of Customizing 
access sequences you can specify different condition tables per tax group. We recommend staying with 
the standard concept of one tax group per table. 
** You can find these entries in the overview page of the Tax Manager’s Workplace (transaction J1BTAX). There 
you define tax rates for several kinds of taxes. 
 
4.2.12 Tax calculation logic 
The tax calculation is performed in ABAP coding. However, different to the classical Brazilian tax cal- 
culation, only the calculation is done there. All data retrieval and Nota Fiscal generation is based on the 
Customizing of the calculation procedure and the Nota Fiscal mapping tables. 
The condition value formula 320, already used in the classical Brazilian tax calculation, was extended to 
work also with CBT. If the calculation procedure is specified in the table J_1BCBTAXPROC, the function 
module J_1B_CBT is called in which the new calculation logic is processed. 
The formula is used to call the tax calculation as well as to retrieve the results of the tax calculation in 
order to store them in the pricing-procedure results table. The differentiation is done by analyzing the 
condition type of the step in the calculation procedure in which the formula was called. By assigning 
internal codes to these condition types, depending on this internal code either the calculation is started 
or a specific tax result is retrieved (identified by the internal code). 
For example, in the MM/FI calculation procedure TAXBRA, the tax calculation is triggered in the step 
that contains the condition type BX01. This is because condition type BX01 is assigned to the internal 
code CALCULATE_TAX. 
The tax results are retrieved in the next section of the calculation procedure. Each line contains a con- 
dition type that is assigned to an internal code that indicates a tax result value. For example condition 
type BX12 is assigned to the internal code NF_ICMS_OBAS which indicates the ICMS other base 
amount. 
In the SD pricing, the formula must be called two times, in case there are Nota Fiscal relevant condi- 
tions (for example. Discounts, Freight etc.) including ICMS. The procedure is identical to the classical 
tax calculation, that is. the first call is calculating tax on the net amount on condition ICMI, whereas the 
second call on condition IBRX is calculating based on the amount including ICMS, possibly modified by 
other conditions in between. 
 
 
16.09.2014 
Condition-Based Tax Calculation for Brazil 25 
 
 
 
4.2.12.1 Calculation Procedure in MM/FI: TAXBRA 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Check Calculation Procedure 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Calculation Procedures € Calculation Proce- 
dures MM 
The calculation procedure TAXBRA is used in the FI tax calculation, whichis called in MM transac- 
tions. This calculation procedure is structured in the following sections: 
 Transaction data retrieval: 
o The first line of the calculation procedure contains just a zero value. It is used to refer to 
it in lines of the calculation procedure that only contain explanatory texts (like for 
example step 011) so that no confusing intermediate sum appears in such lines on the 
pricing results screen in the transactions. 
o In the first section of the calculation procedure, data, specific to the item that is pro- 
cessed in the tax calculation, is processed. These are the net value (step 010, BASB), 
the discount (step 012, BDIS), the freight (step 013, BFRE), and the S.T. base modifi- 
cation amount (step 014, BSUB). Furthermore, the calling application (PO/ IM or IV) is 
determined (step 017, BXPO). 
 Customizing data retrieval: in the next section, the tax customizing data (rates, laws, and other flags) 
are read from the condition database. The access is done based on the actual values in the 
communication structures KOMP and KOMK and is controlled by the access sequences assigned to 
the condition types (step 20 to 125). 
 Tax calculation: after all data are retrieved that are necessary to calculate the taxes, the tax calcu- 
lation is performed (step 191). 
 Results of tax calculation: the results of the tax calculation are retrieved in the next section of the 
calculation procedure. For each value, a condition type is defined that serves to indicate the result in 
the pricing procedure results table. For these new condition types, corresponding internal codes are 
defined which are used in the coding to transfer the tax results back to the calculation proce- dure 
(steps 200 to 386). 
 Tax code conditions: the last section of the tax calculation procedure contains the tax code condi- 
tions, that is. the conditions that you activate (100%) or deactivate (no record) by customizing the tax 
codes. The condition base values are taken from the lines in the calculation procedure that con- tain 
the tax results described in the section before (steps 400 to 972). 
The calculation procedure TAXBRA is delivered by SAP. The standard customizing, which is delivered 
in client 000, is, however, only updated for the latest release. 
The standard calculation procedure TAXBRA is contained in the BC set 
ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM. 
If you intend to activate the BC set to your system and you have already a tax calculation procedure 
named TAXBRA in your system, you should delete the tax calculation procedure TAXBRA before acti- 
vating the BC sets. In fact, if you have already the tax calculation procedure TAXBRA in your system 
and you activate the BC set, it could happen that you get the same entries with different step numbers 
which would cause errors in the calculation procedure. 
When you activate BC set ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM you will see the following 
message “Activation ended with additional information” in the information bar. The system considers 
that not all data in object VVC_T683_TX was activated in all languages, because the BC set delivers 
texts only for the steps which do not have a condition type behind. For all the other steps, the text that 
you can see in the description field (when you have a look at the calculation procedures in J1BTAX) 
comes from the assigned condition type. Ignore the information message that you get at activation, 
16.09.2014 
Condition-Based Tax Calculation for Brazil 26 
 
 
 
because after activation you will have all the texts in the description column of the calculation proce- 
dure. 
You can also check the calculation procedure TAXBRA in the section 5.1.5 of this document. 
 
4.2.12.2 Calculation Procedure in SD: RVABRA 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € 
Basic Functions € Pricing € Pricing Control € Define And Assign 
Pricing Procedures 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Calculation Procedures € Calculation Proce- 
dures SD 
The calculation procedure RVABRA is delivered as a sample SD pricing procedure. Because it con- 
tains normal conditions besides the tax conditions, it will most likely be necessary to adapt it to the 
individual needs. 
It is structured in the following sections: 
 Net price determination: 
o The first line of the calculation procedure contains just a zero value. It is used to refer to 
it in lines of the calculation procedure that only contain explanatory texts (like for 
example step 199) in order that no confusing intermediate sum appears in such lines on 
the pricing results screen in the transactions. 
o The rest covers the determination of the net price (price excluding any kind of tax), for 
example taking into account discounts which should not have impact on Nota Fiscal. 
IMPORTANT: when using CBT you need several prices, which are used to calculated different taxes in 
the correct way. It is recommendable to create condition types like the ones shown in the table be- low. 
In that case, you do not need the standard condition type PR00. 
 
Step Cntr CTyp Description From To Reqt Stat Prt AltCTy AltCBV ActKy 
001 **** Zero **** 000 000 000 X 000 000 
010 1 ZPB0 Price w/o Taxes 000 000 002 000 000 
010 2 ZPB1 Price+ISS 000 000 002 000 000 
010 3 ZPB2 Price+PIS+COF 000 000 002 000 000 
010 4 ZPB3 Price+ISS+PIS+COF 000 000 002 000 000 
010 PR00 Price 000 000 002 000 000 
 
 
 Customizing data retrieval: In the next section, the tax customizing data (rates, laws, and other flags) 
are read from the condition database. The access is done based on the actual values in the 
communication structures KOMP and KOMK and is controlled by the access sequences assigned to 
the condition types (step 200 to 199). 
 Tax calculation on net amount (Step 1): After all data is retrieved that are necessary to calculate the 
taxes, the tax calculation is performed by processing the condition value formula 320 (step 300). 
 Nota Fiscal relevant modifications to the base price including ICMS: In this part, the price including 
ICMS which results from the first step of the calculation amount, can be used to apply conditions that 
modify this amount, for example, Nota Fiscal relevant discounts, freight, insurance, or other 
expenses. These conditions are not really part of the tax calculation, but are specific to individual 
requirements. The step range foreseen for these kinds of conditions is between 301 and 599. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 27 
 
 
 
 Tax recalculation on the modified amount including ICMS (Step 2): The modification amounts that 
have been applied in the previous part require a recalculation of the taxes, this time on the modified 
gross amount. This is done by the condition type IBRX (step 600). 
 Results of tax calculation: The results of the tax calculation are retrieved in the next section of the 
calculation procedure. For each value, a condition type is defined. This condition type serves to in- 
dicate the result in the pricing procedure results table. For these new condition types, correspond- 
ing internal codes exist which are used in the coding to transfer the tax results back to the calcula- 
tion procedure. This coding is processed in the call to the condition value formula 320 as well (step 
610 to 683). 
 Tax code conditions: The last section of the tax calculation procedure contains the tax code condi- 
tions, that is, the conditions that you activate (100%) or deactivate (no record) by customizing the tax 
codes for the MM/FI calculation procedure. In the SD procedure, they are present only to pro- vide a 
counterpart, however they are dummy entries. The true postings are being done directly by the tax 
result conditions of the previous section. The conditions ICMO and ISSO are the known ICMS and 
ISS offset conditions. The part between step 730 and 998 can be used for additionalconditions, for 
example cash discount or rounding difference conditions. 
The calculation procedure RVABRA is delivered by SAP. The standard customizing, which is delivered 
in client 000, is however updated only for the latest release. 
The standard calculation procedure RVABRA is contained in the BC set 
ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD. 
When you activate BC set ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD you will see the following 
message “Activation ended with additional information” in the information bar. The system considers 
that not all data in object VVC_T683_TX was activated in all languages, because the BC set delivers 
texts only for the steps which do not have a condition type behind. For all the other steps, the text that 
you can see in the description field (when you have a look at the calculation procedures in J1BTAX) 
comes from the assigned condition type. Ignore the information message that you get at activation, 
because after activation you will have all the texts in the description column of the calculation proce- 
dure. 
You can also check the calculation procedure RVABRA in the section 5.1.5 of this document. 
 
4.2.13 Tax Types 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Define Tax Types 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Tax Types 
In this Customizing activity, you define tax types for Brazil. At this point, you can define the condition 
types that indicate whether a specific tax is due or whether specific lines are to be listed in the Nota 
Fiscal. The FI/MM condition types are referred to as tax types. 
Furthermore, you can set the LPP (Last Purchase Price) indicator for each tax type in order to activate 
the recording of the LPP. 
The corresponding maintenance view is J_1BAJV. 
All tax types delivered by SAP are contained in the BC set ZCSC_BR_CBT_TAX_TYPES. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 28 
 
 
 
4.2.14 Price conditions 
 
4.2.14.1 Price conditions MM 
In Brazil, depending on your business process, you may need to include certain taxes in the net price of 
materials before the system calculates the tax in the standard way. You do this by defining condition 
types that contain net prices for each combination of tax groups. 
When entering a material's net price in a purchasing info record or in a contract, a dialog box appears 
with the entire basic price conditions defined in the calculation procedure. You select the appropriate 
one. 
When you enter a purchase order item, the system uses the conditions defined in the corresponding info 
record or contract. If no condition is available, then you must specify a net price in the PO. The system 
stores it in the manual condition PBXX, for which you can customize the taxes that are includ- ed by 
default. Alternatively, you can specify the price in a different condition by changing the lines on the 
condition screen in the item details. 
If necessary, create new price conditions and adapt the MM pricing procedure for Purchase Orders (for 
example RM0000) or create new ones by copying and modifying. 
Price conditions are not delivered by SAP; you must create your own conditions. 
 
4.2.14.2 Define Which Taxes Are Included in MM Price Conditions 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Define Which Taxes Are Included in MM 
Price Conditions 
Transaction Code SPRO 
When the system calculates tax for a given transaction, it accesses the entries in this Customizing 
activity to determine if the base value already includes a certain tax group. 
Define which tax is included in which price by specifying a tax group for each of your price condition 
types. Note that those condition types are defined as basic prices (these are assigned the condition 
category H in the definition of the condition type). The following tax groups are supported: PIS, COFINS, 
ISS at location of service provider, ISS at location where service is provided, and ISS at location of 
service recipient. If more than one tax group applies to a single condition type, you must create a 
separate entry for each combination. 
No standard settings are delivered for this Customizing activity; you must define which taxes are in- 
cluded in the MM price conditions manually. 
 
4.2.14.3 NF-relevant Price conditions SD 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € 
Billing € Billing Documents € Country-specific Features € Coun- 
try-specific Features for Brazil € Special Conditions For Pricing 
Transaction Code SPRO 
Tax Manager’s Workplace Nota Fiscal €SD Billing €NF-relevant SD conditions 
In order to allow the correct recalculation of the taxes on the amount including tax during the second 
step of the SD pricing, this customizing indicates how the modification conditions should be taken into 
account, for example, if they are included or not in the IPI base, if they affect the Sub.Trib. base amount 
or if they are relevant for Sub.Trib. on freight. 
The standard settings delivered for pricing procedure RVABRA are in the BC set 
ZCSC_BR_CBT_NF_SD_CND_FOR_RVABRA. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 29 
 
 
 
4.2.14.4 Define Which Taxes Are Included in SD Price Conditions 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Define Which Taxes Are Included in SD 
Price Conditions 
Transaction Code SPRO 
 
In this Customizing activity, you define which taxes are included in which prices. 
 
4.2.15 Customizing Settings MM/FI 
 
4.2.15.1 Map MM values to Nota Fiscal fields 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € Map 
MM Tax Values to Nota Fiscal Fields 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup €Nota Fiscal Mapping €Map Values MM 
By using the new condition-based tax calculation, the pricing-procedure results table contains all val- 
ues that must be listed in the Nota Fiscal. In this Customizing activity you determine which values of the 
table are transferred to which nota fiscal fields. 
The maintenance view is J_1BNFTXCONDMMV for MM. 
A tax line in the Nota Fiscal consists of the tax rate, pauta rate (used for IPI Pauta), the tax value, the 
normal base, the excluded base, and the other base. An active tax type for a tax code leads to a cor- 
responding line in the nota fiscal. In this view, it is specified from which fields in the pricing-procedure 
results table the above mentioned nota fiscal fields are being filled. 
Standard Customizing settings can be found in the BC Set 
ZCSC_BR_CBT_MAP_MM_VLS_TO_NF_FDS. 
 
4.2.15.2 Map MM Tax Laws to Nota Fiscal fields 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € Map 
MM Tax Laws to Nota Fiscal Fields 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
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. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 30 
 
 
 
The tax laws are stored in condition records that are generated by the maintenance of the tax code or 
the maintenance of certain tax rate tables (such as Maintain IPI values or MaintainICMS Material- 
dependent Exceptions). 
Standard Customizing settings are in the BC Set ZCSC_BR_CBT_MAP_MM_LWS_TO_NF_FDS. 
 
4.2.15.3 Create MM tax codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Calculation € Settings for Tax Calculation in Brazil €Define FI/MM 
Tax Codes 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Tax Calculation €Tax Codes MM 
The Customizing of FI/MM tax codes is done in the maintenance view J_1BTAXCODEV. 
The transaction FTXP cannot be used because it is incompatible with the tax calculation procedure 
TAXBRA. For example in FTXP, records can be generated only for condition types that are non- 
statistical and that have an account key assigned in the calculation procedure. In TAXBRA, however, 
there are statistical lines that have tax code conditions. 
In transaction J1BTAX, go to the maintenance of tax codes. Create the tax codes you need. 
In the section 5.2. you find hints on how to configure tax codes for Brazil. 
4.2.15.4 Assign tax accounts 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Posting € Define Tax Accounts 
Transaction Code SPRO 
At this point, you can assign the G/L tax accounts to account keys. You can use the same G/L account 
for more than one account key or use a different G/L account for each account key depending on your 
business needs. 
No standard values are delivered for this customizing table, since G/L account numbers depend on the 
used chart of accounts. 
 
4.2.16 Customizing Settings SD 
 
4.2.16.1 Tax Determination Rules 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € 
Basic Functions € Taxes € Define Tax Determination Rules 
Transaction Code OVK1 
You need to assign the Tax Category IBRX to the country BR. Check if this entry is already available 
in your system or enter it as follows: 
 
Tax country BR 
 
Name Brazil 
Sequence 1 
16.09.2014 
Condition-Based Tax Calculation for Brazil 31 
 
 
 
 
Tax category IBRX (Brazil tax calculation) 
 
 
4.2.16.2 Map SD tax values to Nota Fiscal fields 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € Map 
SD Tax Values to Nota Fiscal Fields 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Nota Fiscal Mapping € Map Values SD 
By using the new condition-based tax calculation, the pricing-procedure results table contains all val- 
ues that need to be listed in the nota fiscal. In this customizing activity you customize which values of 
the table are transferred to which nota fiscal fields. 
The maintenance view is J_1BNFTXCONDV for SD. 
A tax line in the nota fiscal consists of the tax rate, pauta rate (used for IPI Pauta), the tax value, the 
normal base, the excluded base, and the other base. An active tax type for a tax code leads to a cor- 
responding line in the nota fiscal. In this view it is specified from which fields in the pricing-procedure 
results table the above mentioned nota fiscal fields are being filled. 
Standard Customizing settings are in the BC Set ZCSC_BR_CBT_MAP_SD_VLS_TO_NF_FDS. 
 
4.2.16.3 Create SD tax codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Fi- 
nancial Accounting Global Settings € Tax on Sales/Purchases € Calcu- 
lation € Settings for Tax Calculation in Brazil €Define SD Tax Codes 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Tax Calculation €Tax Codes SD 
The Customizing of SD tax codes is done in the maintenance view J_1BTAXCODEV. SD tax codes 
are defined similarly to the MM/FI tax codes. 
In the section 5.2. you find hints on how to configure tax codes for Brazil. 
 
 
4.2.16.4 Define Sequence for Tax Code Determination in SD 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Fi- 
nancial Accounting Global Settings € Tax on Sales/Purchases € Calcu- 
lation € Settings for Tax Calculation in Brazil €Define Sequence for SD 
Tax Code Determination 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Tax Calculation €Tax Code Determination SD 
16.09.2014 
Condition-Based Tax Calculation for Brazil 32 
 
 
 
In Sales and Distribution there are two places to define the SD Tax Code which can be automatically 
determined in a transaction (for example a sales order). It can be either derived from the Item Catego- 
ry, or from the Customer/Material Information Record. 
In this Customizing activity you can define the sequence in which the system accesses these sources. 
You can define in the table J_1BTXCODESEQ a sequence that data sources are to be accessed. Enter 
sequential integer numbers and assign the data sources from the drop down menu to them. During the 
processing, the system will look up the data sources in ascending order of the sequence number until a 
tax code is found. 
You must enter the following settings in your system: 
 
Sequence in Tax Code Determination Source for Tax Code Determination 
 
1 Item Category Table 
2 Customer Material Information 
 
An example is shown in the table above. In this example the system first looks up the item category 
table. If no tax code is found, the system looks up in the customer material information. 
You can define the sequence that better suits your business needs, but it is mandatory that you enter 
a sequence otherwise no tax code determination will take place. 
 
4.2.16.5 Define Sequence for Tax Law Determination in SD 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Fi- 
nancial Accounting Global Settings € Tax on Sales/Purchases € Basic 
Settings € Brazil € Define Sequence for SD Tax Law Determination 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Tax Calculation €Tax Law Determination SD 
In Sales and Distribution, the system derives the tax law for ICMS and IPI automatically from one of 
these sources: 
 Tax exceptions (You maintain tax exceptions under Financial Accounting -> Financial Ac- 
counting Global Settings - > Tax on Sales/Purchases -> Calculation -> Settings for Tax Calcu- 
lation in Brazil -> Tax Rates) 
 Item category 
 Customer master record 
In this Customizing activity, you define the sequence that the system accesses these sources. 
This Customizing activity is performed to define the sequence of the determination logic of the SD tax 
laws. The corresponding table is J_1BTXLAWSEQ. 
 
You could for example enter the following settings in your system: 
 
Sequence in Tax Law Determination Source for Tax Law Determination 
 
1 Tax Exception Tables 
2 Item Category Table 
 
3 Customer Master 
In this example, the system searches for tax laws; first it looks up the tax exception tables, then the 
item category tables, and finally the customer master. 
You can define the sequence that better suits your business needs, but it is mandatory that you enter 
a sequence otherwise no tax law determination will take place. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 33 
 
 
 
4.2.16.6 Assign tax accounts for revenue determination 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € 
Basic Functions € Account Assignment/Costing € Revenue Ac- 
count Determination € Assign G/L Accounts 
Transaction Code SPRO 
In this menu option, you allocate G/L accounts for revenue account determination 
No standard values are delivered for this Customizing table, because G/L account numbers depend on 
the used chart of accounts. 
 
4.2.17 Tax Rates 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
FinancialAccounting Global Settings € Tax on Sales/Purchases € 
Calculation € Settings for Tax Calculation in Brazil € Tax Rates 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Overview Tax Rate Tables 
Tax rates for the different tax types can be entered in the Tax Manager’s Workplace. In the TMW’s 
overview screen you can select for which tax type and according to which criteria you want to enter the 
tax rates (for example for a specific tax type or as dynamic exceptions). Example: IPI 
You can define IPI tax rates based on the NCM code, the official material classification used in Brazil 
(Maintain IPI values). Additionally, you can define IPI tax rates specific to a material (Maintain IPI Ma- 
terial-Dependent Exceptions). Finally, you can define IPI tax rates depending on a tax group that you 
have created before (Maintain IPI Dynamic Exceptions). In addition to these activities, you must enter a 
default tax rate, which is used by the system if it cannot determine the tax rate in any other way (Maintain 
Default Tax Rate Values). 
During tax calculation, the system searches for the correct tax rate in the following tables in the speci- 
fied order, taking the first rate it finds: 
1. Material-dependent exceptions 
2. Dynamic exceptions 
3. Normal values 
4. Default values 
Example: ICMS 
You can define ICMS tax rates based on the combination of ship-from and ship-to state. For each 
combination of ship-from and ship-to location you can enter the tax rate for ICMS and the tax rate for 
freight (called Conhecimento de Transporte Eletrônico). Additionally, you can also define material- 
dependent exceptions, dynamic exceptions and exceptions for ICMS complement. Also for ICMS, you 
must define a default tax rate. 
Example: PIS/COFINS 
For PIS and COFINS it is not possible to enter tax rates directly, but you always enter the tax rates 
based on a group for dynamic exceptions. There are no default values for PIS and COFINS. 
 
4.2.17.1 Create default tax rates for ICMS and IPI 
SAP Access 
16.09.2014 
Condition-Based Tax Calculation for Brazil 34 
 
 
 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Calculation € Settings for Tax Calculation in Brazil € Tax Rates € 
Maintain Default Tax Rate Values 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Overview Tax Rate Tables € Maintain Default Tax Rate Values 
In this Customizing activity, you define default rates for Brazilian tax calculation. The system uses 
these default rates for ICMS and IPI if it cannot determine a valid rate in the specific tax rate tables 
The table below is an example which shows how such entries should look like, but you can enter other 
values: 
 
Tax Valid From Tax Rate 
ICMS 01.01.1995 12,00 
IPI 01.01.1995 10,00 
 
4.2.18 Other (manual) Customizing settings for ICMS, IPI, PIS/COFINS 
In the following sections you can see which other customizing settings are required for a correct post- 
ing of ICMS, IPI and PIS/COFINS taxes. These settings are not required for the tax calculation and are 
therefore not strictly connected to CBT, but you need to perform them in order to get correct tax post- 
ings and a correct and complete Nota Fiscal. Be aware of these customizing settings. For detailed 
information, go to the respective IMG documentation. 
 
4.2.18.1 Tax Regions 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Finan- 
cial Accounting Global Settings € Tax on Sales/Purchases € Basic Set- 
tings € Brazil € Define Brazilian Tax Regions and Assign to Geographical 
Regions 
Transaction Code SPRO 
Tax Manager’s Work- 
place (TMW) 
Entities € Tax Regions 
In this Customizing activity you maintain tax regions for Brazil and assign a geographical region to each tax 
region. For further details, check the IMG documentation. 
 
4.2.18.2 NCM Codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Cross-Application Components 
€ General Application Functions € Nota fiscal € NCM Codes 
Transaction Code SPRO 
Tax Manager’s Work- 
place (TMW) 
Entities € NCM Codes 
Here you define the NCM codes for your materials and material groups. NCM codes are used by the system 
to determine the IPI tax rate. For further details, check the IMG documentation. 
 
4.2.18.3 Sub. Trib. Groups 
SAP Access 
16.09.2014 
Condition-Based Tax Calculation for Brazil 35 
 
 
 
Access Menu … € … € … € … € … € .. 
Transaction Code SPRO 
Tax Manager’s Work- 
place (TMW) 
Entities € Sub. Trib. Groups 
For further details, check the IMG documentation. 
 
4.2.18.4 CFOP 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Cross-Application Compo- 
nents € General Application Functions € Nota fiscal € CFOP Codes 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Entities € CFOP Codes 
Here you define the CFOP codes which must be printed on the Nota Fiscais. For further details, check the 
IMG documentation. 
 
4.2.18.5 Tax Laws and Tax Situations 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Fi- 
nancial Accounting Global Settings € Tax on Sales/Purchases € Basic 
Settings € Brazil € … 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Entities € Tax Laws 
In this Customizing activity, you enter the tax laws and corresponding tax situations to be used in your 
system for different tax types. For further details, check the IMG documentation. 
 
4.3 CBT Customizing settings for ISS 
 
4.3.1 Create condition table A601 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € 
Basic Functions € Pricing € Pricing Control € Define Condition Tables 
Transaction Code SPRO 
 
This table is used for ISS data. You can choose a different number than 601 if this table is already in 
use for something else. In this case, replace 601 by your number in the access sequences described 
in the next sections. 
The table must have the following technical settings: 
 
Technical settings 
 
Name A601 
Short text Country/Tax Jur./Key 1/Key 2/Key 3/Tax Group 
 
Data class APPL0 (Master data, transparent tables) 
 
Size category 0 (Data records expected: 0 to 2.600) 
16.09.2014 
Condition-Based Tax Calculation for Brazil 36 
 
 
 
 
Buffering Buffering switched on 
Buffering type Fully buffered 
 
Maintain as transparent table Yes 
Delivery and maintenance 
 
Delivery class Application table (master and transaction data) 
Data Browser/Table View Maintenance Display/Maintenance allowed with restrictions 
 
The table fields must be created as described below: 
 
Field Key Initial 
value 
Data element Data 
type 
Length Decimals Short description 
MANDT X X MANDT CLNT 3 0 Client 
KAPPL X X KAPPL CHAR 2 0 Application 
KSCHL X X KSCHA CHAR 4 0 Condition type 
ALAND X X ALAND CHAR 3 0 Departure country (coun- 
try from which the goods 
are sent) 
TXJCD X X TXJCD CHAR 15 0 Tax Jurisdiction 
DYNKEY1 X X J_1BDYNKEY1 CHAR 20 0 Dynamic Key Field 1 
DYNKEY2 X X J_1BDYNKEY2 CHAR 20 0 Dynamic Key Field 2 
DYNKEY3 X X J_1BDYNKEY3 CHAR 20 0 Dynamic Key Field 3 
TAXGROUP X X J_1BTXGRP NUMC 2 0 Tax Group for Dynamic 
Tax Exceptions 
DATBI X X KODATBI DATS 8 0 Validity end date of the 
condition record 
DATAB X KODATAB DATS 8 0 Validity start date of the 
condition record 
KNUMH X KNUMH CHAR 10 0 Condition record number 
 
 
The entries for help/checks must be created as shown below: 
 
Field Data element Data 
type 
For. 
keys 
Check 
table 
Origin of the 
input help 
Search 
help 
Domain 
MANDT MANDT CLNT X T000 Input help imple- H_T000 MANDT 
 mented with check 
table 
 
KAPPL KAPPL CHAR X T681A Input help imple- 
mented with check 
table 
CSH_T681A KAPPL 
KSCHL KSCHA CHAR X T685 Input help imple- H_T685 KSCHL 
 mented with check 
table 
 
ALAND ALAND CHAR X T005 Input help imple- 
mentedwith check 
table 
 LAND1 
TXJCD TXJCD CHAR X TTXJ Input help imple- H_TTXJ TXJCD 
16.09.2014 
Condition-Based Tax Calculation for Brazil 37 
 
 
 
 mented with check 
table 
 
DYNKEY1 J_1BDYNKEY1 CHAR J_1BVALUE 
DYNKEY2 J_1BDYNKEY2 CHAR J_1BVALUE 
DYNKEY3 J_1BDYNKEY3 CHAR J_1BVALUE 
TAXGROUP J_1BTXGRP NUMC X J_1BTXGRUOP Input help imple- 
mented with check 
J_1BTXGRP 
 table 
DATBI KODATBI DATS Input help based on 
data type 
DATUM 
DATAB KODATAB DATS Input help based on 
data type 
DATUM 
KNUMH KNUMH CHAR KNUMB 
 
When you are finished, save and activate the new table. 
 
4.3.2 Extend pricing field catalog 
In order to use the new components LOC_PR (Location of Service Provider) and LOC_SE (Location 
Where Service Is Provided) in the ISS access sequences, the pricing field catalog must be extended by 
these components. 
This is performed in the maintenance view V_T681F. 
Use transaction SM30, enter V_T681F in the field table/view, then click the maintain button. 
Specify usage ‘A’, application ‘V’, and field group 001. Add the new components LOC_PR and LOC_SE 
from structure KOMP. 
Do the same for usage ‘A’, application ‘TX’, and field group 001. 
 
4.3.3 Access sequences for ISS 
 
4.3.3.1 Access sequences for application TX 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide -> Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Check calculation procedure – Access Sequences 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Access Sequences MM 
Access sequences, which are used in the condition types for ISS, are delivered in SAP standard (see 
section 4.2.4). 
All SAP standard access sequences for the application TX can be found in the section 5.1.1 of this 
document. 
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 
16.09.2014 
Condition-Based Tax Calculation for Brazil 38 
 
 
 
Step Tab. Req. Excl. 
 
 
Condition 
 
 
I/O 
Field Assignment 
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 
Step Tab. Req. Excl. 
 
 
Condition 
 
 
I/O 
Field Assignment 
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 
 
4.3.3.2 Access sequences for application V 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € 
Basic Functions € Pricing € Pricing Control € Define Access Se- 
quences € Maintain Access Sequences 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Access Sequences SD 
Access sequences, which are used in the condition types for ISS, are delivered in SAP standard (see 
section 4.2.4). 
All SAP standard access sequences for the application V can be found in the section 5.1.2 of this doc- 
ument. 
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 
 
Step Tab. Req. Excl. Field Assignment 
 
16.09.2014 
Condition-Based Tax Calculation for Brazil 39 
 
 
 
 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 ISS2 - steps and field assignment 
 
Step Tab. Req. Excl. Field Assignment 
 Condition I/O Doc.Struc. Doc.Field Constant 
5 601 0 X ALAND = 
 
BR 
392 
TXJCD = KOMP LOC_SE 
Empty 
 DYNKEY1  KOMP MATNR 
 DYNKEY2 = X 
 DYNKEY3 = X 
 TAXGROUP = 5 
99 392 0 X ALAND = 
 
BR 
 
 
4.3.4 Create condition types for ISS 
 
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 
Transaction Code SPRO 
Here you define the condition types within the application TX and V. These condition types can be 
used in the tax calculation that is called by the MM and SD applications respectively. 
The BC Set ZCSC_BR_CBT_CONDITION_TYPES_MM and 
ZCSC_BR_CBT_CONDITION_TYPES_SD contain all standard condition types for MM/FI and SD 
which you need for the ISS tax calculation and which are delivered by SAP (see section 4.2.5). 
All standard delivered condition types for application TX (MM/FI) and V (SD) respectively can be found 
in the sections 5.1.3 and 5.1.4 of this document. 
 
4.3.5 Define account keys for MM/FI and SD 
New account keys must be created to post service taxes to separate accounts. 
For details about the account keys see paragraph 4.2.6. There you can also the BC set containing the 
standard account keys for both FI and SD. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 40 
 
 
 
4.3.6 Update calculation procedures for MM/FI and SD 
For details about the calculation procedures TAXBRA and RVABRA refer to the paragraphs 4.2.12.1 
and 4.2.12.2 respectively. 
 
4.3.7 Create new internal condition codes 
See paragraph 4.2.7 
 
4.3.8 Create mapping of internal codes to condition types 
See paragraph 4.2.8. 
 
4.3.9 Assign internal code to tax group 
See paragraph 4.2.9. 
 
4.3.10 Tax groups for dynamic exceptions 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Calculation € Settings for Tax Calculation in Brazil € Tax Rates € 
Define Tax Groups for Dynamic Exceptions 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
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. 
 
4.3.11 Assign condition tables to tax rate tables 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € As- 
sign Condition Tables to Tax Tables 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Condition Mapping €Map Tax Rate Tables to 
Condition Tables 
In this activity, you need to map the condition tables for ISS to the tax rate tables for ISS. 
Assign all tax groups used in table J_1BTXISS to condition table 601 except country default rates (this 
is condition table 392). 
For details about this activity, check the section 4.2.11. However, keep in mind that you must perform 
this assignment for ISS manually because the ISS related entries are not included in the BC set. 
 
4.3.12 ISS Tax Types 
See paragraph 4.2.13. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 41 
 
 
 
4.3.13 Price conditions for ISS 
The condition-based tax calculation supports prices which are not the real net prices, but may contain 
PIS, COFINS, ISS due at the municipality of the service provider, ISS due at the municipality of the 
service execution,or any combination of these. 
In order to allow the system to consider correctly which taxes are already included in a price and which 
not, corresponding price conditions must be maintained. It is possible to either continue using existing 
price conditions or introduce new ones. Of course, if new price conditions are introduced, all price 
conditions must be updated. 
For details see the paragraph 4.2.14. 
 
4.3.14 Assign G/L accounts for ISS posting 
See paragraph 4.2.15.4 
 
4.3.15 ISS tax rates 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Calculation € Settings for Tax Calculation in Brazil € Tax Rates 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Overview Tax Rate Tables 
In this Customizing activity you maintain the tax rates for ISS taxes. Use the tax groups of dynamic 
exceptions you created before. 
For details about this customizing activity, refer to section 4.2.17. 
 
4.3.15.1 Create default tax rates for ISS 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Calculation € Settings for Tax Calculation in Brazil € Tax Rates € 
Maintain Default Tax Rate Values 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Overview Tax Rate Tables € Maintain Default Tax Rate Values 
In this Customizing activity, you define default rates for Brazilian tax calculation. The system uses 
these default rates if it cannot determine a valid rate in the specific tax rate tables 
It is mandatory to define one default value for ISS. 
The table below is an example which shows how such entries should look like, but you may enter oth- 
er values: 
 
Tax Valid From Tax Rate 
ISS 01.01.1995 5,00 
 
4.3.16 Map MM tax values to nota fiscal fields 
In this activity, you define the mapping of ISS tax values to be copied to the nota fiscal fields per ISS 
tax type. 
For detailed information see paragraph 4.2.15.1. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 42 
 
 
 
4.3.17 Map MM tax laws to nota fiscal fields 
In this activity, you define the mapping of ISS tax laws to be copied to the nota fiscal fields per ISS tax 
type. 
For detailed information see paragraph 4.2.15.2. 
 
4.3.18 Map SD tax values to nota fiscal fields 
In this activity, you define the mapping of ISS tax values to be copied to the nota fiscal fields per ISS 
tax type. 
For detailed information see paragraph 4.2.16.2. 
 
4.3.19 Other ISS (manual) Customizing Settings 
In the following sections you can see which other customizing settings are required for a correct ISS tax 
posting. These settings are not required for the tax calculation and are therefore not strictly con- nected 
to CBT. However, you need to perform such settings in order to get correct tax postings and a correct 
and complete Nota Fiscal for services. 
 
4.3.19.1 Update vendor and customer master data 
For a correct ISS tax calculation, the right tax jurisdiction code must be assigned in the customer’s and 
vendor’s master records. 
You do this in transactions XD02 and XK02. 
 
4.3.19.2 ISS Tax Laws 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Define ISS Tax Laws 
Transaction Code SPRO 
Tax Manager’s Workplace Entities € Tax Laws ISS 
In this Customizing activity, you define tax laws for ISS processing. For each tax law, enter a descrip- 
tion and up to four lines of text that are to be printed on the nota fiscal. 
 
IMPORTANT: If you are required to issue electronic Notas Fiscais for services in the municipality of 
São Paulo, assign the relevant ISS tax situation to the ISS tax law (see Define Tax Situations) addi- 
tionally. 
 
4.3.19.3 ISS Tax Situations 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Define ISS Tax Situations 
Transaction Code SPRO 
In this Customizing activity, you define ISS tax situations as required for your company and the service 
you provide. 
This is only relevant for companies in the municipality of São Paulo (SP) that issue electronic Notas 
Fiscais (NF-e) for services. Note that only certain companies and certain services in SP fall under this 
requirement. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 43 
 
 
 
4.3.19.4 Official Service Types 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Logistics - General € 
Tax on Goods Movements € Brazil € Service Types € Define 
Official Service Types for Incoming Notas Fiscaís AND Define Official 
Service Types for Outgoing Notas Fiscaís 
Transaction Code SPRO 
Here you need to define the official service types for incoming and outgoing Notas Fiscais. Refer to 
the IMG documentation for details. 
 
4.3.19.5 Generic Service Types 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Logistics - General € Tax on 
Goods Movements € Brazil € Service Types € Define Generic Service 
Types 
Transaction Code SPRO 
In this activity, you define generic service types. Refer to the IMG documentation for details. 
 
4.3.19.6 Assign Official Service Types 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Logistics - General € Tax on 
Goods Movements € Brazil € Service Types € Assign Official Service 
Types to Generic Service Types OR Material numbers OR Services 
Transaction Code SPRO 
Refer to the IMG documentation for details. 
 
4.3.20 Tax codes for MM and SD 
 
4.3.20.1 Create MM tax codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Calculation € Settings for Tax Calculation in Brazil €Define FI/MM 
Tax Codes 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Tax Calculation €Tax Codes MM 
The Customizing of FI/MM tax codes is done in the maintenance view J_1BTAXCODEV. 
In transaction J1BTAX, go to the maintenance of tax codes. Create the tax codes you need. 
If you need some hints on how to configure the Brazilian tax codes, refer to section 5.2. 
4.3.20.2 Create SD tax codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Fi- 
nancial Accounting Global Settings € Tax on Sales/Purchases € Calcu- 
lation € Settings for Tax Calculation in Brazil €Define SD Tax Codes 
16.09.2014 
Condition-Based Tax Calculation for Brazil 44 
 
 
 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Tax Calculation €Tax Codes SD 
The Customizing of SD tax codes is done in the maintenance view J_1BTAXCODEV. SD tax codes 
are defined similarly to the MM/FI tax codes. 
If you need some hints on how to configure the Brazilian tax codes, refer to section 5.2. 
 
4.4 CBT Customizing settings for WHT taxes with accumulation 
 
4.4.1 Access sequences for withholding taxes 
 
4.4.1.1 Access sequences for application TX 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide -> Financial Accounting € Finan- 
cial Accounting Global Settings € Tax on Sales/Purchases € Basic Set- 
tings € Check calculation procedure – Access Sequences 
Transaction Code SPRO 
Tax Manager’s Work- 
place (TMW) 
Condition Setup € Access Sequences MM 
Access sequences, which are used in the condition types for withholding taxes, are delivered in SAP 
standard (see section 4.2.4). 
All SAP standard access sequences for the application TX can be found in the section 5.1.1 of this 
document. 
 
4.4.1.2 Access sequences for application V 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Sales and Distribution € Basic 
Functions € Pricing € Pricing Control € Define Access Sequences € 
Maintain Access SequencesTransaction Code SPRO 
Tax Manager’s Work- 
place (TMW) 
Condition Setup € Access Sequences SD 
Access sequences, which are used in the condition types for withholding taxes, are delivered in SAP 
standard (see section 4.2.4). 
All SAP standard access sequences for the application V can be found in the section 5.1.2 of this doc- 
ument. 
 
4.4.2 Condition types for withholding taxes 
 
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 
Transaction Code SPRO 
The following classes of condition types are affected by withholding taxes: 
• Tax code conditions (activation of withholding tax related to base amount accumulation) 
16.09.2014 
Condition-Based Tax Calculation for Brazil 45 
 
 
 
• Conditions with WHT codes (specific for SD) 
The BC Set ZCSC_BR_CBT_CONDITION_TYPES_MM and 
ZCSC_BR_CBT_CONDITION_TYPES_SD contain all standard condition types for MM/FI and SD 
which you need for withholding tax calculation and which are delivered by SAP (see section 4.2.5). 
All standard delivered condition types for application TX (MM/FI) and V (SD) respectively can be found 
in the sections 5.1.3 and 5.1.4 of this document. 
New account keys must be created to post withholding taxes to separate accounts. 
 
4.4.3 Define account keys for MM/FI and SD 
New account keys must be created in order to post service taxes to separate accounts and to identify 
withholding tax amounts in the normal tax calculation. 
For details about the account keys see paragraph 4.2.6. There you can also the BC set containing the 
standard account keys for both FI and SD. 
 
4.4.4 Assign G/L accounts for withholding tax posting 
See paragraph 4.2.15.4. 
 
4.4.5 Create condition value formulas for withholding taxes 
According to the note 916003, you need to create two additional condition value formulas, so that 
withholding taxes with and without accumulation can be calculated in your system. 
The most recent coding for the condition value formulas 900 and 901 is available in the note 1006866, 
which enhances and modifies the formula coding from the notes 916003 and 986453. 
Go to transaction VOFM and choose the menu Formulas > Condition Value. 
There you need to create the condition value formulas 900 (for withholding taxes without accumula- tion) 
and 901 (for withholding taxes with accumulation). If you have already used those numbers in your 
system, create the new formulas with other numbers. 
Once you are done, save and activate the formulas. 
 
4.4.6 Update calculation procedures for MM/FI and SD 
For details about the calculation procedures TAXBRA and RVABRA, refer to the paragraphs 4.2.12.1 
and 4.2.12.2 respectively. 
There you can have a look at the BC sets containing the standard procedures TAXBRA and RVABRA. 
Additionally, the calculation procedures can be found in table form in the sections 5.1.5 and 5.1.5. 
However, in order to calculate withholding taxes with and without accumulation using the condition- 
based technique, you need to adapt the delivered tax calculation procedure (FI/MM) and pricing pro- 
cedure (SD) in order to assign the formulas 900 and 901 to the steps for WHT without accumulation and 
WHT with accumulation respectively. 
The changes to be done to the calculation procedures TAXBRA and RVABRA are described below. 
 
4.4.6.1 Changes in TAXBRA 
In the tax calculation procedure TAXBRA, you need to assign the condition value formula 900 to the 
steps which refer to the withholding tax without accumulation and the formula 901 to the steps which 
refer to the withholding tax with accumulation as shown in the table in section 5.1.5. 
This assignment must be done manually. The assignment of the formulas 900 and 901 in the steps of 
the calculation procedure TAXBRA is marked by a (*) in the table in section 5.1.5. If you implement the 
calculation procedure TAXBRA by uploading the BC set, then those steps will not have the formulas 
900 and 901 assigned. Using the table as reference you can do this assignment very easily. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 46 
 
 
 
4.4.6.2 Changes in RVABRA 
In the pricing procedure RVABRA you need to assign the condition value formula 900 to the steps which 
refer to the withholding tax without accumulation and the formula 901 to the steps which refer to the 
withholding tax with accumulation as shown in the table in section 5.1.5. 
The BC set containing the pricing procedure RVABRA reflects the customizing settings required after 
the law MP135 (notes 664855 and 747607). However, it does not contain the subsequent changes due 
to the implementation of withholding taxes with accumulation. 
The reason for this is that only limited scenarios require that you calculate and post withholding taxes 
with accumulation on the outgoing side, for example if your company sells one of the services which are 
subjected to such tax. 
First, you must analyze your business processes and find out whether you need to calculate such taxes. 
If you do so, update the pricing procedure RVABRA as shown in the section 5.1.6. 
 
4.4.7 Define internal condition codes for withholding taxes 
See paragraph 4.2.7. 
 
4.4.8 Mapping of internal codes to condition types 
See paragraph 4.2.8. 
 
4.4.9 Assign internal code to tax group 
See paragraph 4.2.9. 
 
4.4.10 Assign condition tables to tax rate tables 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Brazil € Condition-Based Tax Calculation € As- 
sign Condition Tables to Tax Tables 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Condition Setup € Condition Mapping €Map Tax Rate Tables to 
Condition Tables 
In this activity, you need to map the condition tables for withholding taxes to the tax rate tables for 
withholding taxes. 
Assign all tax groups used in table J_1BTXWITH to condition table 346. 
For details about this Customizing activity, refer to the section 4.2.11. 
The BC Set ZCSC_BR_CBT_CND_TBS_TAX_RT_TBS contains all standard assignments of condi- 
tion tables to tax rate tables delivered by SAP. 
 
4.4.11 Tax Types for withholding taxes 
 
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. 
 
4.4.12 Check withholding tax countries 
 
SAP Access 
16.09.2014 
Condition-Based Tax Calculation for Brazil 47 
 
 
 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € Finan- 
cial Accounting Global Settings € Withholding Tax € Extended Withholding 
Tax € Basic Settings € Check Withholding Tax Countries 
Transaction Code SPRO 
In this activity, you check the withholding tax countries. 
The withholding tax country is needed for printing the withholding tax form. As the list of country IDs 
prescribed by law is different from the list in the system, you must define the withholding tax countries 
again. 
The entry for BR needs to be added to this table as follows: 
 
Country Wht Country Description 
BR BR Brazil 
 
4.4.13 Define withholding tax type for invoice posting 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Calculation € Withholding Tax Type € De- 
fine Withholding Tax Type for Invoice Posting 
Transaction Code SPRO 
In this activity, you define the withholding tax type for the posting at the time of entering an invoice. This 
withholding tax type does not have any effect on the payment. For example, it could be required to 
define a withholding tax type for ISS to be withheld at invoicing.All calculations for extended withholding tax are made in the first local currency of the respective com- 
pany code. This means that you have to maintain amounts in the company code country currency. 
You define the withholding tax types for invoice posting as follows; as example the ISS withholding tax 
is considered. 
 
Withholding tax type Name 
 
IW ISS WHT 
 
 
The withholding tax type IW shall be defined with the following characteristics: 
 
Base amount Modified Tax Amount 
 
Rounding rule W/tax comm round 
 
Post w/tax amount X 
 
Accumulation type No accumulation 
 
W/tax base manual X 
 
Manual w/tax amount X 
 
No cert numbering X 
 
Base amount W/tax code level 
 
Withholding tax amount W/tax code level 
 
 
4.4.14 Define withholding tax type for payment posting 
 
SAP Access 
16.09.2014 
Condition-Based Tax Calculation for Brazil 48 
 
 
 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Calculation € Withholding Tax Type € De- 
fine Withholding Tax Type for Payment Posting 
Transaction Code SPRO 
In this activity, you define the withholding tax type for posting at the time of payment. 
All calculations for extended withholding tax are made in the first local currency of the respective com- 
pany code. This means that you have to maintain amounts in the company code country currency. 
 
4.4.14.1 Tax types without accumulation 
For posting withholding taxes at time of payment without accumulation, you should customize the fol- 
lowing tax types: 
 
Withholding Type Description 
 
CP COFINS at Payment 
 
GP General WHT (PIS/COF/CSLL/IR) at Payment 
 
PP PIS at Payment 
 
RP IR at Payment 
 
SP CSLL at Payment 
 
 
Each tax type shall be defined with the following characteristics: 
 
Base amount Modified Tax Amount 
 
Origin of base Base in standard FI tables 
 
Rounding rule W/tax comm round 
 
Cash Discount C/disc pre W/tx 
 
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 
Central invoice No central invoice 
Minimum Check Minimum Check at item level 
 
 
4.4.14.2 Tax types with accumulation 
For posting withholding taxes at time of payment with accumulation, you should customize the follow- 
ing tax types: 
 
Withholding tax type Name 
 
CA Cofins at Payment - Accumulated 
 
GA General WHT at Payment - Accumulated 
 
PA PIS at Payment - Accumulated 
 
RA IR at Payment - Accumulated 
 
16.09.2014 
Condition-Based Tax Calculation for Brazil 49 
 
 
 
 
SA CSLL at Payment - Accumulated 
 
 
Each withholding tax type shall be defined with the following characteristics: 
 
Base amount Modified Tax Amount 
 
Origin of base Base Stored in Nota Fiscal 
 
Rounding rule W/tax comm round 
 
Cash Discount C/disc pre W/tx 
 
Post w/tax amount X 
 
Accumulation type Per Month 
 
Combined accum. X 
 
W/tax base manual X 
 
Manual w/tax amount X 
 
W/tax for pmnts X 
 
No cert numbering X 
 
Base amount Type level 
Withholding tax amount W/tax code level 
Central invoice No central invoice 
Minimum Check Minimum Check at item level 
 
 
4.4.15 Define account key for modified tax amount 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Calculation € Withholding Tax Base Amount 
€ Define Processing Key for Modified Tax Amount 
Transaction Code SPRO 
In this activity, you maintain the transaction keys for calculating the tax base amount based on the 
modified tax amount. At this point, modified means, that the transactions that you specified here are 
used as tax base. 
For withholding taxes, the account keys (processing keys) below are needed: 
 
WHT Type Processing Key 
 
CA WAC 
 
CA WC5 
 
CP WTC 
 
CP WC3 
 
GA WAG 
 
GA WG5 
 
GP WTG 
 
GP WG3 
 
IW ISW 
 
IW WK3 
 
16.09.2014 
Condition-Based Tax Calculation for Brazil 50 
 
 
 
 
PA WAP 
 
PA WP5 
 
PP WTP 
 
PP WP3 
 
RA WAI 
 
RA WI5 
 
RP WTI 
 
RP WI3 
 
SA WAS 
 
SA WS5 
 
SP WTS 
 
SP WS3 
 
 
 
4.4.16 Assign condition type to withholding tax type 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Calculation € Withholding Tax Type € As- 
sign Condition Type to Withholding Tax Type 
Transaction Code SPRO 
Withholding tax in FI is determined from the combination of withholding tax type and withholding tax 
code per customer/vendor. In contrast, the withholding tax in SD is determined from the combination of 
withholding tax condition type and withholding tax code per material. Therefore, it is mandatory to assign 
the withholding tax types from FI to the withholding tax condition types from SD. 
You can use the condition types in SD to represent the withholding tax per customer and per material 
item. When posting from SD to FI, the system carries out the following conversions: 
 The withholding tax condition type is converted into the withholding tax type. 
 Material items with different combinations of withholding tax condition type and withholding tax 
code are converted to different customer items. 
Assign the withholding tax types to condition types as follows: 
 
Withholding tax type Name Condition type 
CA Cofins at Payment - Accumulated ICW6 
CP COFINS at Payment WCOC 
GA General WHT at Payment - Accumulated IGW6 
GP General WHT (PIS/COF/CSLL/IR) at Payment WGEC 
IW ISS WHT WISC 
PA PIS at Payment - Accumulated IPW6 
PP PIS at Payment WPIC 
RA IR at Payment - Accumulated IRW6 
RP IR at Payment WIRC 
SA CSLL at Payment - Accumulated ISW6 
SP CSLL at Payment WCSC 
16.09.2014 
Condition-Based Tax Calculation for Brazil 51 
 
 
 
4.4.17 Maintain Tax Relevant Classification 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Tax on Sales/Purchases € 
Basic Settings € Argentina € Maintain Tax Classification 
Transaction Code SPRO 
In this table, you need to enter the withholding tax types relevant for Brazil and their description. This 
setting is needed to create a connection between the withholding taxes calculated in SD and the FI 
module. This table has originally been developed for Argentina. This is why it is located in the Argenti- 
na specific customizing. For more details, refer to the note 178824. 
The entries you need to make in this table are displayed below: 
 
Tax Relevant Classification Text 
 
CA Cofins at Payment - Accumulated 
 
CP COFINS at Payment 
 
GA General WHT at Payment - Accumulated 
 
GP General WHT (PIS/COF/CSLL/IR) at Payment 
 
IW ISS WHT 
 
PA PIS at Payment - Accumulated 
 
PP PIS at Payment 
 
RA IR at Payment - Accumulated 
 
RP IR at Payment 
 
SA CSLL at Payment - Accumulated 
 
SP CSLL at Payment 
 
 
 
4.4.18 Maintain Withholding Tax SD Conditions 
You need to maintain condition records for the withholding tax SD conditions. Please, proceed as de- 
scribed below. 
Go to the transaction VK11. For each condition type listed below you need to create a condition record 
with a rate of 100% and the assignment to the corresponding tax type and tax code. Additionally you 
need to assign a validity period for each new entry. 
Condition Tax Rel. Class. W/tax code 
WISC IW IW 
WCOC CP CP 
WPIC PP PP 
WCSC SP SP 
WIRC RP RP 
WGEC GP GP 
ICW6 CA CA 
IPW6 PA PA 
ISW6 SA SA 
IRW6 RA RA 
IGW6 GA GA 
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Condition-Based Tax Calculation for Brazil 52 
 
 
 
4.4.19 Define withholding tax codes 
 
SAP Access 
Access Menu SAP CustomizingImplementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Calculation € Withholding Tax Codes € 
Define Withholding Tax Codes 
Transaction Code SPRO 
Here you define the tax codes for withholding taxes. You are free to create the withholding tax codes 
choosing your own naming conventions. Below you can find an example on how you could customize 
your system: 
 
Withholding tax type Wht Tax Code Name 
CA CA Cofins at Payment - Accumulated 
CP CP COFINS 100% WHT Amount 
GA GA General WHT at Payment - Accumulated 
GP CP General 100% WHT Amount 
IW IW ISS 100% WHT Amount 
PA PA PIS at Payment - Accumulated 
PP PP PIS 100% WHT Amount 
RA RA IR at Payment - Accumulated 
RP RP IR 100% WHT Amount 
SA SA CSLL at Payment - Accumulated 
SP SP CSLL 100% WHT Amount 
Each withholding tax code for CBT needs to be defined with the following characteristics: 
 
Percentage subject to tax = 100,00% 
Posting indicator = 1 (Standard posting: Bank/vendor/customer line item reduced) 
With/tax rate = 100,00% 
4.4.20 Define minimum base amount for withholding tax types 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Calculation € Minimum and Maximum 
Amounts € Define Min/Max Amounts for Withholding Tax Types 
Transaction Code SPRO 
In this activity, you specify a minimum base amount for all withholding tax types relevant for tax base 
accumulation. 
 
Withholding tax type Currency Minimum Base Amount 
CA BRL 5.000,00 
GA BRL 5.000,00 
PA BRL 5.000,00 
RA BRL 5.000,00 
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Condition-Based Tax Calculation for Brazil 53 
 
 
 
 
SA BRL 5.000,00 
 
 
4.4.21 Define official collection codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Calculation € Brazil € Define Official Col- 
lection Codes 
Transaction Code SPRO 
In this Customizing activity, you define official collection codes for calculating withholding tax in Brazil. 
Enter these settings manually in your SAP system. 
 
4.4.22 Maintain Wht tax rates and assign official collection codes 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Calculation € Brazil € Maintain Withholding 
Tax Rates and Assign Official Collection Codes 
Transaction Code SPRO 
Tax Manager’s Workplace 
(TMW) 
Overview Tax Rate Tables 
Here you enter the tax rates for withholding taxes as well as the corresponding official collection code. 
To do this, you must select the country BR and a tax group. Normally, you enter withholding tax rates 
based on the combination company code + withholding tax code. 
You can enter the withholding tax rates also from the Tax Manager’s Workplace. 
 
4.4.23 Assign withholding tax types to company code 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Company Code € Assign Withholding Tax 
Types to Company Codes 
Transaction Code SPRO 
In this activity, you assign all required withholding tax types to your Brazilian company codes. 
 
4.4.24 Activate extended withholding tax 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Company Code € Activate Extended With- 
holding Tax 
Transaction Code SPRO 
SAP provides you with two procedures for processing withholding tax: "Standard" and extended with- 
holding tax. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 54 
 
 
 
"Standard" withholding tax is the procedure that has always been supported by the system. It offers 
you the following features: 
 Withholding tax for accounts payable 
 Withholding tax calculation during payment 
 Withholding tax code per vendor line item 
Extended withholding tax provides the following additional features: 
 Multiple withholding taxes per customer or vendor line item 
 Withholding tax calculation for partial payments 
You need to activate the extended withholding tax functionality for your Brazilian company codes. 
 
4.4.25 Define accounts for withholding tax to be paid over 
 
SAP Access 
Access Menu SAP Customizing Implementation Guide € Financial Accounting € 
Financial Accounting Global Settings € Withholding Tax € Extend- 
ed Withholding Tax € Postings € Define Accounts for Withholding 
Tax to be Paid Over 
Transaction Code SPRO 
In this activity, you define and assign the G/L accounts which shall be used for the withholding tax 
postings. 
Assign G/L accounts for withholding taxes to withholding tax types. Assign the same G/L account you 
have assigned for each normal withholding tax type and code. For example, if 177011 is assigned for 
withholding tax type CP (COFINS at Payment) / withholding tax code CP (COFINS 100% WHT Amount) 
assign the same code for withholding tax type CA / Withholding tax code CA. 
 
4.4.26 Update vendor and customer master data 
Use transactions XK02 and XD02. 
 
In the vendor and customer master data you assign all withholding tax types and codes applicable to 
that business partner. Additionally you need to check the field “liable” or “W/Tax” for each combination 
wht tax type / wht tax code, so that withholding taxes are calculated. 
 
4.4.27 Map MM tax values to nota fiscal fields 
For detailed information see paragraph 4.2.15.1. 
 
4.4.28 Map SD tax values to nota fiscal fields 
For detailed information see paragraph 4.2.16.2 
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Condition-Based Tax Calculation for Brazil 55 
 
 
 
 
5 Appendix 
The section 5.1 shows the access sequences, the conditions types and the tax calculation procedures 
for both applications SD and MM as they are contained in the SAP standard delivery. 
The section 5.2 highlights what you need to do if you switch on the condition-based tax calculation 
while you are already working with Brazilian taxes using the classical tax calculation. 
Finally, the section 0 gives you some hints on further important points that you should keep in mind 
while working with the condition-based tax calculation for Brazil. 
 
5.1 SAP Standard Tables 
 
5.1.1 Access sequences for application TX (MM/FI) 
The table below shows the access sequences for the application TX which are relevant to Brazil, since 
they are used in the BR specific condition types. Access sequences are not customizing objects, and 
are part of the SAP standard delivery. 
 
Access sequence Description 
 
BRB1 Dummy 1 for Brazil 
BRCC Brazil ICMS Conhecimento 
 
BRCI Brazil ICMS Complement 
BRCO Brazil COFINS 
 
BRIB Brazil ICMS-Basis 
BRIC Brazil ICMS 
 
BRID Brazil ICMS SF=ST 
BRII Brazil ICMS SF=ST for S.T. 
 
BRIP Brazil IPI 
BRIS Brazil ISS 
 
BRLC Brazil Tax Law: ICMS 
BRLO Tax Law: COFINS 
 
BRLP Brazil Tax Law: IPI 
BRLS Tax Law: PIS 
 
BRPI Brazil PIS 
BRS1 Brazil ISS at service provider 
 
BRS2 Brazil ISS wh. serv. provider 
BRST Brazil Sub. Trib. 
 
BRTF Brazil: Tax-Exempt 
BRWT Brazil WHT 
 
MWST Tax Classification 
 
5.1.2 Access sequences for application V (SD) 
The table below shows the access sequences for the application V which are relevant to Brazil be- cause 
they are used in the BR specific condition types. Access sequences are not customizing ob- jects, and 
are part of the SAP standard delivery. 
 
Access sequence Description 
 
BRCC Brazil ICMS Conhecimento 
BRCO Brazil COFINS 
 
BRPI Brazil PIS 
BRWT Brazil WHT 
 
DIBR Brazil: Taxes Due 
DICM BR: ICMS Due 
 
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Condition-Based Tax Calculation for Brazil 56 
 
 
 
 
Access sequence DescriptionDIPI BR: IPI Due 
 
DISI BR: ICMS over IPI Due 
IBRR Brazil: 100% offset 
 
IBRX Brazil: Ext. tax determination 
ICBS BR: ICMS Tax Base Values 
 
ICCB BR: ICMS Offsetting Entry 
ICLW BR: ICMS Tax Laws 
 
ICVA BR: ICMS Tax Rates 
ICXC BR: Customer ICMS Exempt 
 
IDZF BR: ICMS Discount Zona Franca 
IPBS BR: IPI Tax Base Values 
 
IPLW BR: IPI Tax Laws 
IPOB BR: ICMS Discount Zona Franca 
 
IPVA BR: IPI Tax Rates 
IPXC BR: Customer IPI Exempt 
 
ISS1 Brazil ISS at service provider 
ISS2 Brazil ISS wh. serv. provider 
 
ISTC BR: ICMS Rates for Subtrib 
ISTI BR: ICMS Rate for S.T. 
 
ISTV BR: Subtrib Surcharges 
ISVA BR: ISS Tax Rates 
 
IZOF Zona Franca 
J1AG Arg.: Tax relev. class. 
 
 
5.1.3 Condition types for application TX (MM/FI) 
 
Condition Type Description Access Sequence 
 
B100 Convenio 100 BRIC 
BASB Base Amount 
 
BASI Base Amount 
BCI1 ICMS Complement Base BRCI 
 
BCI2 ICMS Complem. Exempt BRCI 
BCI3 ICMS Complement Rate BRB1 
 
BCO1 COFINS Rate BRCO 
BCO2 COFINS Base BRCO 
 
BCO3 COFINS Rate 4 dec. BRCO 
BCO4 COFINS Pauta Amt. 4d BRCO 
 
BCOP COFINS Pauta Amount BRCO 
BDIS Discounting 
 
BFI1 ICMS Conhe Base BRCC 
BFI2 ICMS Conhe Rate BRCC 
 
BFI3 ICMS Conh O.Bas Flag BRCC 
BFRE Freight 
 
BI00 Dummy Non-Statistic BRB1 
BIC0 ICMS Rate BRIC 
 
BIC1 ICMS Base Reduction BRIB 
BIC2 ICMS Other Base Flag BRIC 
 
BIC3 ICMS Rate * Base BRIB 
BIC5 ICMS Rate * 10^n BRIC 
 
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Condition-Based Tax Calculation for Brazil 57 
 
 
 
Condition Type Description Access Sequence 
BIC6 ICMS Base BRB1 
BIC7 ICMS Exclude Base BRB1 
BIC9 ICMS Ind.Calc.Base BRIB 
BICA ICMS Ind.Calc.Base BRIC 
BICB ICMS Ref BIC1 BRIB 
BICC ICMS Conv.100 Flag BRIC 
BICD ICMS Ex.Base Con. BRB1 
BICE ICMS Con.Calc.Base BRIB 
BICF ICMS Other Base Flag BRIC 
BICG ICMS Rate SF=ST BRID 
BICH ICMS Rate SF=ST BRID 
BICS ICMS Rate for ST BRII 
BICX ICMS Exempt MWST 
BICY ICMS Exempt Ref BICX MWST 
BIF0 ICMS on Freight BRIC 
BIFH ICMS Fr Rate SF=ST BRID 
BIP0 IPI Rate BRIP 
BIP1 IPI Base Reduction BRIP 
BIP2 IPI Other Base Flag BRIP 
BIP3 IPI Rate * Base BRIP 
BIP4 IPI Rate Ref BIP0 BRIP 
BIP5 IPI Rate * 10^n BRIP 
BIP7 IPI Exclude Base In BRB1 
BIP9 IPI Calculation Base BRIP 
BIPA IPI Rate Ref BIP0 BRIP 
BIPB IPI Ref. Base BRIP 
BIPC IPI Other Base Flag BRIP 
BIPD IPI Exclude Base Co BRB1 
BIPE Calculate Excl./Oth. BRB1 
BIPP IPI Pauta Amount BRIP 
BIPS IPI -Split Vendor MWST 
BIPT IPI -Split Vendor PO MWST 
BIPU IPI -Split Vendor IV MWST 
BIPX IPI Exempt MWST 
BIPY IPI Exempt Ref BIPX MWST 
BIS0 ISS Rate BRIS 
BIS1 ISS Rate at Prov. BRS1 
BIS2 ISS Base at Prov. BRS1 
BIS3 ISS Law at Prov. BRS1 
BIS5 ISS Taxloc at Prov. BRS1 
BIS6 ISS WHT at Prov. BRS1 
BIS7 ISS Min WHT at Prov. BRS1 
BISA ISS Rate at Serv. BRS2 
BISB ISS Base at Serv. BRS2 
BISC ISS Law at Serv. BRS2 
BISE ISS Taxloc.at Serv. BRS2 
BISF ISS WHT at Serv. BRS2 
16.09.2014 
Condition-Based Tax Calculation for Brazil 58 
 
 
 
Condition Type Description Access Sequence 
BISG ISS Min WHT at Serv. BRS2 
BIZF Zona Franca BRTF 
BLCO Tax Laws for COFINS BRLO 
BLIC Tax Laws for ICMS BRLC 
BLIP Tax Laws for IPI BRLP 
BLPI Tax Laws for PIS BRLS 
BPI1 PIS Rate BRPI 
BPI2 PIS Base BRPI 
BPI3 PIS Rate 4 decimals BRPI 
BPI4 PIS Pauta Amt. 4 dec BRPI 
BPIP PIS Pauta Amount BRPI 
BSF0 Subtrib. Rate BRST 
BSF1 ICMS Fr Rate SF=ST BRID 
BST0 Subtrib. Rate BRST 
BST1 Subtrib. Surch. Type BRST 
BST2 Subtrib. Minprice BRST 
BST3 Subtrib. Fix Price BRST 
BST5 Subtrib Icms Rate BRST 
BST6 Subtrib. Reduction 1 BRST 
BST7 Subtrib. Reduction 2 BRST 
BST8 Subtrib. Base Reduct BRST 
BST9 Subtrib. Calc.Base BRST 
BSTA Subtrib. Surch. Type BRST 
BSTB Subtrib. Surch. Type BRST 
BSTF Subtrib.MinPr.Factor BRST 
BSTI S.T. MinPrBef.Surch. BRST 
BSUB S.T. Base Modif. 
BW01 WHT Coll.Code Gen. BRWT 
BW02 WHT Rate Gen. BRWT 
BW11 WHT Coll.Code PIS BRWT 
BW12 WHT Rate PIS BRWT 
BW21 WHT Coll.Code COFINS BRWT 
BW22 WHT Rate COFINS BRWT 
BW31 WHT Coll.Code CSLL BRWT 
BW32 WHT Rate CSLL BRWT 
BW41 WHT Coll.Code IR BRWT 
BW42 WHT Rate IR BRWT 
BW51 BR WHT Base Amount BRWT 
BX01 BR Tax Calculation 
BX10 BR ICMS Normal Base 
BX11 BR ICMS Excluded Bse 
BX12 BR ICMS Other Base 
BX13 BR ICMS Amount 
BX14 BR ICMS Freight Base 
BX15 BRICMS Freight Amnt. 
BX16 BR ICMS Rate 
BX17 BR ICMS Conhe Base 
16.09.2014 
Condition-Based Tax Calculation for Brazil 59 
 
 
 
 
Condition Type Description Access Sequence 
BX18 BR ICMS Conhe O. Bas 
 
BX19 BR ICMS Conhe Amount 
BX1E BR ICMS Conhe E. Bas 
 
BX20 BR IPI Normal Base 
BX21 BR IPI Excluded Base 
 
BX22 BR IPI Other Base 
BX23 BR IPI Amount 
 
BX24 BR IPI Offset Base 
BX25 BR IPI Offset Amount 
 
BX2B IPI Pauta Base * 10 
BX30 BR ICMS Comp. Base 
 
BX31 BR ICMS Comp. Amnt. 
BX32 BR ICMS Comp. Rate 
 
BX40 BR SubTrib Base 
BX41 BR SubTrib Amount 
 
BX42 BR SubTrib Fr. Base 
BX43 BR SubTrib Fr. Amnt 
 
BX44 BRSubTrib NF Rate 
BX45 BRSubTrib NF Basred1 
 
BX46 BRSubTrib NF Rate 
BX47 BR SubTrib Conh Base 
 
BX49 BR SubTrib Conh Amnt 
BX4E BR SubTrib Conh EBas 
 
BX50 BR ISS Base 
BX51 BR ISS Amount 
 
BX60 BR ISS Base Prov 
BX61 BR ISS ExBase Prov 
 
BX62 BR ISS Amount Prov 
BX63 BR ISS WTAmount Prov 
 
BX64 BR ISS WT Base Prov 
BX65 BR ISS WTExBase Prov 
 
BX6A BR ISS Base Serv 
BX6B BR ISS ExBase Serv 
 
BX6C BR ISS Amount Serv 
BX6D BR ISS WTAmount Serv 
 
BX6E BR ISS WT Base Serv 
BX6F BR ISS WTExBase Serv 
 
BX6G BR ISS Offset Provider 
BX6H BR ISS Offset Serv Loc 
BX70 BR COFINS Base 
 
BX71 BR COFINS Excl.Base 
BX72 BR COFINS Amount 
 
BX73 BR COFINS Amount Res 
BX7B COF Pauta Base * 10 
 
BX7O BR COFINS Off.TxIncl 
BX7P BR COFINS Pauta Amt. 
 
BX7Q BR COFINS Pauta Amt. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 60 
 
 
BX7R BR COFINS Res. Base 
16.09.2014 
Condition-Based Tax Calculation for Brazil 61 
 
 
 
Condition Type Description Access Sequence 
BX80 BR PIS Base 
BX81 BR PIS Excl. Base 
BX82 BR PIS Amount 
BX83 BR PIS Amount Res. 
BX8B PIS Pauta Base * 10 
BX8O BR PIS Off.TxIncl 
BX8P BR PIS Pauta Amount 
BX8Q BR PIS Pauta Amount 
BX8R BR PIS Res. Base 
BXPA BR IPI Pauta Amount 
BXPO BR Caller = PO? 
BXWA BR WHT Base Amount BRB1 
BXWT BR WHT Base Amount BRB1 
BXZF BR ICMS Zona Franca 
CCOP ICMS Conh Complement MWST 
CCOX ICMS Conh Compl 100 MWST 
CIC0 Conh ICMS Exempt MWST 
CIC1 Conhecimento ICMS MWST 
CIC2 Conhe. ICMS Non.Ded. MWST 
CIC3 Conhe. ICMS from SD MWST 
CST1 Conhe. SubTrib MWST 
CST2 Conhe. SubTr N.Deduc MWST 
CST3 Conhe. SubTrib SD MWST 
IC1C ICMS Ind.Clearing MWST 
IC1O ICMS Ind.Clear.Off. MWST 
ICD0 ICMS DIFAL Pri MWST 
ICD1 ICMS DIFAL Asset MWST 
ICD2 ICMS DIFAL Asset Off MWST 
ICD3 ICMS DIFAL/CIAP/Asse MWST 
ICDF ICMS Deductibl-DIFAL MWST 
ICM0 ICMS NF Zero Line MWST 
ICM1 ICMS Industr. In MWST 
ICM2 ICMS Consumption In MWST 
ICM3 ICMS from SD Out MWST 
ICM4 ICMS Consum Outgoing MWST 
ICMF ICMS S.T. fr. Offset MWST 
ICML ICMS DIFAL Offs. Out MWST 
ICMM ICMS DIFAL Out MWST 
ICMO ICMS Ind.Clear.Off. MWST 
ICMP ICMS DIFAL Inv. Off. MWST 
ICMT ICMS DIFAL Investmen MWST 
ICMV ICMS DIFAL Con/Asset MWST 
ICMX ICMS Active MWST 
ICMY ICMS Active MWST 
ICMZ ICMS Active MWST 
ICN3 COFINS Normal Tax MWST 
ICO1 ICMS Compl. Transfer MWST 
16.09.2014 
Condition-Based Tax Calculation for Brazil 62 
 
 
 
Condition Type Description Access Sequence 
ICO2 ICMS Compl. Tra Offs MWST 
ICO3 ICMS Compl. NVV MWST 
ICO4 ICMS Compl. NVV off MWST 
ICOA COFINS Normal PO/GR MWST 
ICOF COFINS Deductible MWST 
ICON COFINS Normal Tax MWST 
ICOO COFINS OffsetTaxIncl MWST 
ICOP ICMS Complement MWST 
ICOQ COFINS WHT Accum. MWST 
ICOR COFINS Diff Resale MWST 
ICOS COFINS Normal PO/GR MWST 
ICOT STO-ICMS Complement MWST 
ICOU Cofins IV Non Deduct MWST 
ICOV Cofins Offset MWST 
ICOW COFINS WHT MWST 
ICOX ICMS complement 100 MWST 
ICOZ COFINS WHTOffset MWST 
ICS1 Sub.Tributaria In MWST 
ICS2 S.T. Consumption In MWST 
ICS3 Sub.Tributaria Out MWST 
ICS4 S.T. Indus Not in NF MWST 
ICS5 S.T. Cons. Not in NF MWST 
ICS6 S.T. Cons.Offset MWST 
ICS7 S.T. Cons. Not in NF MWST 
ICS8 Transf S.T Retail BO MWST 
ICS9 S.T. Consumption In MWST 
ICSQ CSLL WHT - Accum. MWST 
ICSW CSLL WHT MWST 
ICSZ CSLL WHT Offset MWST 
ICW3 COFINS WHT SD MWST 
ICW5 COFINS WHT SD-Accum. MWST 
ICZ3 COFINS WHT Offset SD MWST 
ICZF ICMS Reverse (Z.F.) BRTF 
ICZG ICMS Zona Franca IN MWST 
IFR1 ICMS on freight In MWST 
IFR3 ICMS on freight Out MWST 
IFS1 ICMS ST freight In MWST 
IFS3 ICMS ST freight Out MWST 
IGEQ General WHT-Accum. MWST 
IGEW General WHT MWST 
IGEZ General WHT Offset MWST 
IGW3 General WHT SD MWST 
IGW5 General WHT SD-Accum MWST 
IGZ3 Genera WHT Offset SD MWST 
IIRQ IR WHT-Accum. MWST 
IIRW IR WHT MWST 
IIRZ IR WHT Offset MWST 
INSS INSS Incoming MWST 
16.09.2014 
Condition-Based Tax Calculation for Brazil 63 
 
 
 
Condition Type Description Access Sequence 
INSX INSS offset (100-) MWST 
IP10 IPI Null Values NF MWST 
IP11 IPI Industr. In MWST 
IP12 IPI Consumption In MWST 
IP13 IPI Consumption In MWST 
IP1C IPI Ind.Clearing MWST 
IP1O IPI Ind.Clear.Off. MWST 
IPI0 IPI NF Zero Line MWST 
IPI1 IPI Industr. In MWST 
IPI2 IPI Consumption In MWST 
IPI3 IPI from SD Out MWST 
IPI4 IPI -Split Vendor MWST 
IPI5 IPI Indus. non-dedu MWST 
IPI6 IPI Consu. REF IPI2 MWST 
IPIA IPI Industr. Out MWST 
IPIB IPI Consum Out MWST 
IPIO IPI Null Values NF MWST 
IPIS PIS deductible MWST 
IPIX IPI Active MWST 
IPIY IPI Active MWST 
IPIZ IPI Active MWST 
IPS3 PIS Normal Tax MWST 
IPSA PIS Normal PO/GR MWST 
IPSN PIS NVV MWST 
IPSO PIS Offset Tax Incl. MWST 
IPSQ PIS WHT - Accum. MWST 
IPSS PIS Nrmal PO/GR MWST 
IPSU PIS Normal IV NVV MWST 
IPSV Offset IPSS / IPSU MWST 
IPSW PIS WHT MWST 
IPSZ PIS WHT Offset MWST 
IPW3 PIS WHT SD MWST 
IPW5 PIS WHT SD - Accum. MWST 
IPZ3 PIS WHT SD Offset MWST 
IRD1 ICMS Reimbursement MWST 
IRD2 ICMS Reimbur. Offset MWST 
IRD3 SUBT Reimbursement MWST 
IRD4 SUBT Reimbur. Offset MWST 
IRD5 ICMS Reim.Offset NVV MWST 
IRD6 SUBT Reim.Offset NVV MWST 
IRW3 IR WHT SD MWST 
IRW5 IR WHT SD-Accum. MWST 
IRZ3 IR WHT SD Offset MWST 
ISA3 ISS at Provider SD MWST 
ISB3 ISS WHT at Prov. SD MWST 
ISE3 ISS at Serv.Loc. SD MWST 
ISF3 ISS WHT Srv.Loc. SD MWST 
16.09.2014 
Condition-Based Tax Calculation for Brazil 64 
 
 
 
Condition Type Description Access Sequence 
ISS2 ISS from MM In MWST 
ISS3 ISS from SD Out MWST 
ISSA ISS at Provider MWST 
ISSB ISS WHT at Provider MWST 
ISSE ISS at Service Loc MWST 
ISSF ISS WHT at Serv. Loc MWST 
ISSG ISS Offset Provider MWST 
 ISSL ISS Offset Serv. Loc MWST 
ISSO ISS from SD Out MWST 
ISW3 CSLL WHT SD MWST 
ISW5 CSLL WHT SD - Accum. MWST 
ISZ3 CSLL WHT SD Offset MWST 
IT01 ICMS Industr. In MWST 
IT02 ICMS Industr. In MWST 
IT03 ICMS Industr. In MWST 
 
5.1.4 Condition types for application V (SD) 
Condition Type Description Access Sequence 
BCO1 COFINS Rate BRCO 
BCO2 COFINS Base BRCO 
BCO3 COFINS Rate 4 Dec. BRCO 
BCO4 COFINS Pauta Amt4Dec BRCO 
BCOP COFINS Pauta Amount BRCO 
BCOZ BR COFINS WHT Offset IBRX 
BCSZ BR CSLL WHT Offset IBRX 
BGEZ BR GENERAL WHT Offst IBRX 
BI00 Dummy Non-Statistic IBRX 
BIRZ BR IR WHT Offset IBRX 
BPI1 PIS Rate BRPI 
BPI2 PIS Base BRPI 
BPI3 PIS Rate 4Dec. BRPI 
BPI4 PIS Pauta Amt 4 Dec. BRPI 
BPIL BR: PIS Law BRPI 
BPIP PIS Pauta Amount BRPI 
BPSZ BR PIS WHT Offset IBRX 
BW01 WHTColl.Code Gen. BRWT 
BW02 WHT Rate Gen. BRWT 
BW11 WHT Coll.Code PIS BRWT 
BW12 WHT Rate PIS BRWT 
BW21 WHT Coll.Code COFINS BRWT 
BW22 WHT Rate COFINS BRWT 
BW31 WHT Coll.Code CSLL BRWT 
BW32 WHT Rate CSLL BRWT 
BW41 WHT Coll.Code IR BRWT 
BW42 WHT Rate IR BRWT 
16.09.2014 
Condition-Based Tax Calculation for Brazil 65 
 
 
 
Condition Type Description Access Sequence 
BW51 WHT Acc. Flag BRWT 
BX10 BR ICMS Normal Base 
BX11 BR ICMS Excluded Bse 
BX12 BR ICMS Other Base 
BX13 BR ICMS Amount IBRX 
BX14 BR ICMS Freight Base 
BX15 BRICMS Freight Amnt. IBRX 
BX16 BR ICMS Rate 
BX17 BR ICMS Conhe Base 
BX19 BR ICMS Conhe Amount IBRX 
BX1E BR ICMS Conhe E. Bas 
BX20 BR IPI Normal Base 
BX21 BR IPI Excluded Base 
BX22 BR IPI Other Base 
BX23 BR IPI Amount IBRX 
BX24 BR IPI Offset Base 
BX25 BR IPI Offset Amount 
BX2B IPI Pauta Base * 10 
BX40 BR SubTrib Base 
BX41 BR SubTrib Amount IBRX 
BX42 BR SubTrib Fr. Base 
BX43 BR SubTrib Fr. Amnt IBRX 
BX44 BRSubTrib NF Rate 
BX45 BR SubTrib Basered1 
BX46 BR SubTrib Basered2 
BX47 BR SubTrib Conh Base 
BX49 BR SubTri Conhe Amnt 
BX4E BR SubTrib Conh EBas 
BX50 BR ISS Base 
BX51 BR ISS Amount IBRX 
BX60 BR ISS Base Prov 
BX61 BR ISS ExBase Prov 
BX62 BR ISS Amount Prov IBRX 
BX63 BR ISS WTAmount Prov 
BX64 BR ISS WT Base Prov 
BX65 BR ISS WT ExBas Prov 
BX6A BR ISS Base Serv 
BX6B BR ISS ExBase Serv 
BX6C BR ISS Amount Serv IBRX 
BX6D BR ISS WTAmount Serv 
BX6E BR ISS WT Base Serv 
BX6F BR ISS WT ExBas Serv 
BX6O BR ISS offset IBRR 
16.09.2014 
Condition-Based Tax Calculation for Brazil 66 
 
 
 
Condition Type Description Access Sequence 
BX70 BR COFINS Base 
BX71 BR COFINS Excl. Base 
BX72 BR COFINS Amount IBRX 
BX7B COF Pauta Base * 10 
BX7O BR COFINS offset IBRR 
BX7P BR COFINS Pauta Amt. 
BX7Q BR COFINS Pauta Amt. 
BX80 BR PIS Base 
BX81 BR PIS Excl. Base 
BX82 BR PIS Amount IBRX 
BX8B PIS Pauta Base * 10 
BX8O BR PIS offset IBRR 
BX8P BR PIS Pauta Amt. 
BX8Q BR PIS Pauta Amt. 
BXPA BR IPI Pauta Amount 
BXWA BR WHT Acc Base Amt DIBR 
BXWT BR WHT Base Amount DIBR 
BXZF BR ICMS Zona Franca IBRX 
CIC3 Conhecimento ICMS 
CICO Conhe. ICMS offset IBRR 
CONH Conhecimento 
CST3 Conhe. SubTrib MWST 
CSTO Conhe SubTrib offset IBRR 
DCOF COFINS Due DIBR 
DGTX General Taxability IBRX 
DICF Devido ICMS Freight DIBR 
DICM ICMS Due DIBR 
DIFF Rounding Off 
DIPI BR: IPI Due DIBR 
DISI ICMS s/IPI Due DIBR 
DISS ISS Due DIBR 
DIZF Zona Franca IZOF 
DPIS PIS Due DIBR 
DSUB Sub Trib Due DIBR 
DSUF SubTribFreight Due DIBR 
DWHT WHT Due DIBR 
I100 BR: ICMS Convenio100 ICVA 
IBRX Brazil tax calc. IBRX 
IC0X BR: ICMS 0 Excempt DIBR 
ICBS ICMS Tax Base ICBS 
ICCB BR: ICMS Comp.Base ICCB 
ICCX BR: ICMS Comp.Excmpt ICCB 
ICF1 ICMS Conhe Base BRCC 
16.09.2014 
Condition-Based Tax Calculation for Brazil 67 
 
 
 
Condition Type Description Access Sequence 
ICF2 ICMS Conhe Rate BRCC 
ICFR BR: ICMS on Freight ICVA 
ICLW BR: ICMS Law ICLW 
ICM3 ICMS from SD 
ICMI Price+Tax (for NF) 
ICMO ICMS offset IBRR 
ICN3 COFINS from SD MWST 
ICO2 COFINS Offset SD IBRR 
ICOB BR: ICMS Other Base ICVA 
ICOL BR: COFINS Law BRCO 
ICOQ COFINS WHT Accum. IBRX 
ICOW COFINS WHT IBRX 
ICS3 Sub.Trib. from SD 
ICSO ISS offset IBRR 
ICSQ CSLL WHT - Accum. IBRX 
ICSW CSLL WHT IBRX 
ICVA ICMS Tax Rate ICVA 
ICW3 COFINS WHT SD MWST 
ICW5 COFINS WHT SD - Acc MWST 
ICW6 COFINS WHT code Acc J1AG 
ICXC BR Cust ICMS Exempt ICXC 
ICZ3 COFINS WHT SD Offset IBRR 
ICZF ADMS Disc. Zona Fr. IZOF 
IDZF BR: ICMS Discount ZF IDZF 
IFR3 ICMS on freight SD 
IFS3 ICMS ST freight SD 
IGEQ General WHT - Accum IBRX 
IGEW General WHT IBRX 
IGW3 General WHT SD MWST 
IGW5 General WHT SD - Acc MWST 
IGW6 General WHT code Acc J1AG 
IGZ3 Genera WHT SD Offset IBRR 
IIRQ IR WHT - Accum. IBRX 
IIRW IR WHT IBRX 
IP0X BR: IPI 0 Excempt DIBR 
IPBS IPI Tax Base IPBS 
IPI3 IPI from SD 
IPIO IPI offset IBRR 
IPIP BR: IPI Pauta IPVA 
IPLW BR: IPI Law IPLW 
IPOB BR: IPI Other Base IPVA 
IPS2 PIS Offset SD IBRR 
IPS3 PIS Normal Tax MWST 
16.09.2014 
Condition-Based Tax Calculation for Brazil 68 
 
 
 
Condition Type Description Access Sequence 
IPSQ PIS WHT - Accum. IBRX 
IPSW PIS WHT IBRX 
IPVA IPI Tax Rate IPVA 
IPW3 PIS WHT SD MWST 
IPW5 PIS WHT SD - Acc MWST 
IPW6 PIS WHT code Acc J1AG 
IPXCBR Cust IPI Exempt IPXC 
IPZ3 PIS WHT SD Offset IBRR 
IRW3 IR WHT SD MWST 
IRW5 IR WHT SD - Acc MWST 
IRW6 IR WHT code Acc J1AG 
IRZ3 IR WHT SD Offset IBRR 
ISA3 ISS at Provider SD MWST 
ISB3 ISS WHT at Prov. SD MWST 
ISE3 ISS at Serv.Loc. SD MWST 
ISF3 ISS WHT Srv.Loc. SD MWST 
ISIC ICMS Rate SF=ST ISTC 
ISS3 ISS from SD 
ISSA ISS at Provider MWST 
ISSB ISS WHT at Provider IBRX 
ISSC ISS WHT Off. Prov. MWST 
ISSD ISS WHT Again Prov. MWST 
ISSE ISS at Serv.Loc. MWST 
ISSF ISS WHT at Serv.Loc. IBRX 
ISSG ISS WHT Off. SrvLoc MWST 
ISSH ISS WHT Again SrvLoc MWST 
IST2 BR: Sub.Trib Base 2 ISTV 
ISTB Sub. Trib Base Value ISTV 
ISTC Subtrib. Base Reduct ISTV 
ISTD ICMS Rate for ST ISTI 
ISTF BR: Sub.Trib FixPric ISTV 
ISTI S.T. MinPrBef.Surch. ISTV 
ISTM BR: Sub.Trib MinPric ISTV 
ISTN Subtrib.MinPr.Factor ISTV 
ISTS Subtrib Surcharge ISTV 
ISTT BR: Sub.Trib SurType ISTV 
ISVA BR: ISS Amount ISVA 
ISVB ISS Rate at Prov. ISS1 
ISVC ISS Base at Prov. ISS1 
ISVD ISS Law at Prov. ISS1 
ISVE IPI from SD ISS1 
ISVF ISS TaxLoc at Prov. ISS1 
ISVG ISS WHT at Prov. ISS1 
16.09.2014 
Condition-Based Tax Calculation for Brazil 69 
 
 
 
Condition Type Description Access Sequence 
ISVH ISS Min WHT at Prov. ISS1 
ISVN ISS Rate at Serv. ISS2 
ISVO ISS Base at Serv. ISS2 
ISVP ISS Law at Serv. ISS2 
ISVQ ISS Ins. Cal at Serv ISS2 
ISVR ISS TaxLoc at Serv. ISS2 
ISVS ISS WHT at Serv. ISS2 
ISVT ISS Min WHT at Serv. ISS2 
ISW3 CSSL WHT SD MWST 
ISW5 CSLL WHT SD - Acc MWST 
ISW6 CSLL WHT code Acc J1AG 
ISZ3 CSLL WHT SD Offset IBRR 
WCOC BR COFINS WHT Code J1AG 
WCSC BR CSLL WHT Code J1AG 
WGEC BR General WHT Code J1AG 
WIRC BR IR WHT Code J1AG 
WISC BR ISS WHT Code J1AG 
WPIC BR PIS WHT Code J1AG 
 
5.1.5 Tax calculation procedure TAXBRA 
The table below shows the calculation procedure TAXBRA, which is the standard tax calculation pro- 
cedure for condition-based taxes for the usage A and the application TX. 
The calculation procedure TAXBRA is delivered by SAP. The corresponding BC set is 
ZCSC_BR_CBT_TAXBRA_CALC_PROCD_MM. 
Details about the structure of the tax calculation procedure TAXBRA can be found in the section 
4.2.12.1. 
In order to make the identification of rows relating to special functionalities easier, they are highlighted 
as follows: 
 Blue = Conhecimento de Transporte Eletrônico / ICMS in freight invoices; 
 Red = ISS / Service Tax; 
 Purple = PIS/COFINS with 4 decimal places. 
 Green = Withholding Taxes; the entries marked by (*) are displayed in the table, however they 
are not included in the BC set. These refer to condition value formulas, which are required for 
withholding taxes with and without accumulation (note 916003). The condition value formulas 
must be defined and assigned to the respective steps in the calculation procedure by the cus- 
tomer. 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat Sub 
Tot 
Req Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
1 First line: zero X 
10 Base Amount BASB 1 
11 Tax-relev. conditions: 1 X 
12 Discounting BDIS X 320 160 
13 Freight BFRE X 320 160 
14 S.T. Base Modif. BSUB X 320 160 
16.09.2014 
Condition-Based Tax Calculation for Brazil 70 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat Sub 
Tot 
Req Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
15 Calling Application: 1 X 
16 Determine calling 
application: 
 1 X 
17 BR Caller = PO? BXPO X 160 160 
19 Read tax data: 1 X 
20 ICMS 1 X 
21 ICMS Rate BIC0 X 160 
22 ICMS Base Reduc- 
tion 
BIC1 X 160 
23 ICMS Other Base 
Flag 
BIC2 X 160 
24 ICMS Exempt BICX X 160 
25 Convenio 100 B100 X 160 
26 Tax Laws for ICMS BLIC X 160 
27 ICMS Rate SF=ST BICH X 160 
28 ICMS Rate for ST BICS X 160 
30 ICMS Complement 1 X 
31 ICMS Complement 
Base 
BCI1 X 160 
32 ICMS Complem. 
Exempt 
BCI2 X 160 
40 ICMS on Freight 1 X 
41 ICMS on Freight BIF0 X 160 
42 ICMS Fr Rate SF=ST BIFH X 160 
43 ICMS Conhe Base BFI1 X 160 
44 ICMS Conhe Rate BFI2 X 160 
45 ICMS Conh O.Bas 
Flag 
BFI3 X 160 
50 IPI 1 X 
51 IPI Rate BIP0 X 160 
52 IPI Base Reduction BIP1 X 160 
53 IPI Other Base Flag BIP2 X 160 
54 IPI Pauta Amount BIPP X 
55 IPI Exempt BIPX X 160 
56 Tax Laws for IPI BLIP X 160 
60 ISS 1 X 
61 ISS Rate BIS0 X 160 
70 Sub.Trib. 1 X 
71 Subtrib. Rate BST0 X 160 
72 Subtrib. Surch. Type BST1 X 160 
73 Subtrib. Minprice BST2 X 
74 Subtrib. Fix Price BST3 X 
75 Subtrib. Reduction 1 BST6 X 160 
76 Subtrib. Reduction 2 BST7 X 160 
16.09.2014 
Condition-Based Tax Calculation for Brazil 71 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat Sub 
Tot 
Req Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
77 Subtrib. Base Reduct BST8 X 160 
78 Subtrib.MinPr.Factor BSTF X 160 
79 S.T. MinPrBef.Surch. BSTI X 160 
80 ISS New 2004: 1 X 
81 ISS Rate at Prov. BIS1 X 160 
82 ISS Base at Prov. BIS2 X 160 
83 ISS Law at Prov. BIS3 X 160 
85 ISS Taxloc at Prov. BIS5 X 160 
86 ISS WHT at Prov. BIS6 X 160 
87 ISS Min WHT at BIS7 X 160 
 Prov. 
90 **** Zona Franca **** 1 X 
91 ISS Rate at Serv. BISA X 160 
92 ISS Base at Serv. BISB X 160 
93 ISS Law at Serv. BISC X 160 
95 ISS Taxloc.at Serv. BISE X 160 
96 ISS WHT at Serv. BISF X 160 
97 ISS Min WHT at 
Serv. 
BISG X 160 
110 PIS, COFINS 1 X 
111 COFINS Rate BCO1 X 342 160 
112 COFINS Rate 4 dec. BCO3 X 343 160 
113 COFINS Pauta BCOP X 343 
 Amount 
114 COFINS Pauta Amt. BCO4 X 343 
 4d 
115 COFINS Base BCO2 X 160 
116 Tax Laws for BLCO X 160 
 COFINS 
121 PIS Rate BPI1 X 342 160 
122 PIS Rate 4 decimals BPI3 X 343 160 
123 PIS Pauta Amount BPIP X 343 
124 PIS Pauta Amt. 4 dec BPI4 X 343 
125 PIS Base BPI2 X 160 
126 Tax Laws for PIS BLPI X 160 
190 Call Tax Calculation: 1 X 
191 BR Tax Calculation BX01 10 X 320 
200 Tax Results: 1 X 
210 BR ICMS Normal BX10 X 320 
 Base 
215 BR ICMS Excluded BX11 X 320 
 Bse 
220 BR ICMS Other Base BX12 X 320 
221 BR ICMS Conhe BX17 X 320 
 Base 
16.09.2014 
Condition-Based Tax Calculation for Brazil 72 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat Sub 
Tot 
Req Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
222 BR ICMS Conhe O. 
Bas 
BX18 X 320 
223 BR ICMS Conhe E. 
Bas 
BX1E X 320 
225 BR ICMS Amount BX13 X 320 
226 BR ICMS Zona Fran- 
ca 
BXZF X 320 
227 BR ICMS Rate BX16 X 320 
228 BR ICMS Conhe 
Amount 
BX19 X 320 
230 BR IPI Normal Base BX20 X 320 
235 BR IPI Excluded 
Base 
BX21 X 320 
240 BR IPI Other Base BX22 X 320 
245 BR IPI Amount BX23 X 320 
246 BR IPI Offset Base BX24 X 320 
247 BR IPI Offset Amount BX25 X 320 
248 BR IPI Pauta Amount BXPA X 320 
250 BR ICMS Comp. 
Base 
BX30 X 320 
255 BR ICMS Comp. 
Amnt. 
BX31 X 320 
256 BR ICMS Comp. 
Rate 
BX32 X 320 
260 BR SubTrib Base BX40 X 320 
265 BR SubTrib Amount BX41 X 320 
270 BR SubTrib Fr. Base BX42 X 320 
275 BR SubTrib Fr. Amnt BX43 X 320 
277 BRSubTrib NF Rate BX44 X 320 
280 BR ICMS Freight 
Base 
BX14 X 320 
285 BRICMS Freight 
Amnt. 
BX15 X 320 
286 BR SubTrib Conh 
EBas 
BX4E X 320 
287 BR SubTrib Conh 
Base 
BX47 X 320 
289 BR SubTrib Conh 
Amnt 
BX49 X 320 
290 BR ISS Base BX50 X 320 
295 BR ISS Amount BX51 X 320 
300 BR ISS Base Prov BX60 X 320 
301 BR ISS ExBase Prov BX61 X 320 
305 BRISS Amount Prov BX62 X 320 
310 BR ISS WTAmount 
Prov 
BX63 X 320 
311 BR ISS WT Base 
Prov 
BX64 X 320 
312 BR ISS WTExBase BX65 X 320 
16.09.2014 
Condition-Based Tax Calculation for Brazil 73 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat Sub 
Tot 
Req Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
 Prov 
315 BR ISS Base Serv BX6A X 320 
316 BR ISS ExBase Serv BX6B X 320 
320 BR ISS Amount Serv BX6C X 320 
325 BR ISS WTAmount 
Serv 
BX6D X 320 
330 BR ISS WT Base 
Serv 
BX6E X 320 
335 BR ISS WTExBase 
Serv 
BX6F X 320 
339 ISS Offset Provider BX6G X 320 
340 ISS Offset Serv Loc BX6H X 320 
349 PI Pauta Base * 10 BX2B X 320 
350 BR COFINS Base BX70 X 320 
351 BR COFINS 
Excl.Base 
BX71 X 320 
355 BR COFINS Amount BX72 X 320 
360 BR COFINS 
Off.TxIncl 
BX7O X 320 
361 BR COFINS Amount 
Res 
BX73 X 320 
362 BR COFINS Res. 
Base 
BX7R X 320 
365 BR COFINS Pauta 
Amt. 
BX7P X 320 
366 BR COFINS Pauta 
Amt. 
BX7Q X 320 
367 COF Pauta Base * 10 BX7B X 320 
370 BR PIS Base BX80 X 320 
371 BR PIS Excl. Base BX81 X 320 
375 BR PIS Amount BX82 X 320 
380 BR PIS Off.TxIncl BX8O X 320 
381 BR PIS Amount Res. BX83 X 320 
382 BR PIS Res. Base BX8R X 320 
385 BR PIS Pauta 
Amount 
BX8P X 320 
386 BR PIS Pauta 
Amount 
BX8Q X 320 
387 PIS Pauta Base * 10 BX8B X 320 
400 Tax Code Conditions: 1 X 
405 IPI NF Zero Line IPI0 245 X VST 
406 ICMS NF Zero Line ICM0 225 X VST 
409 Conh ICMS Exempt CIC0 228 X VST 
410 IPI Industr. In IPI1 245 1 IPI 
412 IPI -Split Vendor IPI4 247 1 NVV 
415 ICMS Industr. In ICM1 225 1 ICM 
416 ICMS DIFAL 
Con/Asset 
ICMV 225 1 ICD 
16.09.2014 
Condition-Based Tax Calculation for Brazil 74 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat Sub 
Tot 
Req Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
417 ICMS DIFAL Invest- 
men 
ICMT 225 1 ICD 
418 ICMS DIFAL Inv. Off. ICMP 417 1 164 ICC 
419 Conhecimento ICMS CIC1 228 1 ICM 
420 Sub.Tributaria In ICS1 265 ICS 
425 ICMS S.T. fr. Offset ICMF 225 1 164 IC1 
430 ICMS on freight In IFR1 285 1 ICM 
435 ICMS ST freight In IFS1 275 ICS 
436 Conhe. SubTrib CST1 289 ICS 
440 IPI Ind.Clearing IP1C 245 1 IPC 
445 IPI Ind.Clear.Off. IP1O 245 1 164 IPC 
450 ICMS Ind.Clearing IC1C 225 1 ICC 
455 ICMS Ind.Clear.Off. IC1O 225 1 164 ICC 
480 ICMS Compl. Trans- 
fer 
ICO1 255 1 160 ICP 
481 ICMS Compl. Tra 
Offs 
ICO2 480 1 160 164 ICX 
482 ICMS Compl. NVV ICO3 255 1 160 NVV 
483 ICMS Compl. NVV off ICO4 482 1 160 164 ICX 
510 IPI Consumption In IPI2 245 1 NVV 
515 ICMS Consumption 
In 
ICM2 225 1 NVV 
517 Conhe. ICMS 
Non.Ded. 
CIC2 228 1 NVV 
520 S.T. Consumption In ICS2 265 NVV 
521 Conhe. SubTr 
N.Deduc 
CST2 289 NVV 
525 ICMS Complement ICOP 255 1 ICP 
526 ICMS Conh Comple- 
ment 
CCOP 255 1 ICP 
530 STO-ICMS Comple- 
ment 
ICOT 255 1 ICP 
535 ICMS complement 
100 
ICOX 525 1 164 ICX 
536 ICMS Conh Compl 
100 
CCOX 526 1 164 ICX 
555 ISS from MM In ISS2 295 1 IC1 
560 ISS from SD Out ISSO 555 1 164 MW4 
610 IPI from SD Out IPI3 245 1 MW1 
615 ICMS from SD Out ICM3 225 1 MW2 
616 ICMS DIFAL Out ICMM 225 1 MW2 
617 ICMS DIFAL Offs. 
Out 
ICML 616 1 164 ICC 
618 Conhe. ICMS from 
SD 
CIC3 228 1 MW2 
620 Sub.Tributaria Out ICS3 265 MW3 
621 Conhe. SubTrib SD CST3 289 1 MW3 
16.09.2014 
Condition-Based Tax Calculation for Brazil 75 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat Sub 
Tot 
Req Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
625 ISS from SD Out ISS3 295 1 MW4 
630 ICMS Reverse (Z.F.) ICZF 225 1 164 NVV 
631 ICMS Zona Franca 
IN 
ICZG 225 1 164 NVV 
640 ICMS on freight Out IFR3 285 1 MW3 
645 ICMS ST freight Out IFS3 275 MW3 
650 ICMS Consum Out- 
going 
ICM4 225 1 MW2 
680 INSS Incoming INSS 10 1 VST 
685 INSS offset (100-) INSX 680 1 164 INX 
710 ICMS Reimburse- 
ment 
IRD1 10 1 IR1 
715 ICMS Reimbur. Off- 
set 
IRD2 710 1 IR2 
720 SUBT Reimburse- 
ment 
IRD3 10 1 IR3 
725 SUBT Reimbur. Off- 
set 
IRD4 720 1 IR4 
730 ICMS Reim.Offset 
NVV 
IRD5 10 1 NVV 
735 SUBT Reim.Offset 
NVV 
IRD6 10 1 NVV 
750 ISS 1 X 
755 ISS at Provider ISSA 305 1 NVV 
760 ISS WHT at Provider ISSB 310 1 ISW 
765 ISS at Service Loc ISSE 320 1 NVV 
770 ISS WHT at Serv. 
Loc 
ISSF 325 1 ISW 
775 ISS Offset Provider ISSG 339 1 NVV 
776 ISS Offset Serv Loc ISSL 340 1 NVV 
779 PIS/COFINS non 
deductible 
 1 X 
780 COFINS Normal Tax ICON 355 1 NVV 
782 COFINS OffsetTax- 
Incl 
ICOO 360 1 NVV 
784 PIS Normal Tax IPSN 375 1 NVV 
786 PIS Offset Tax Incl. IPSO 380 1 NVV 
789 PIS/COFINS deducti- 
ble 
 1 X 
790 COFINS Deductible ICOF 355 X VST 
791 PIS deductible IPIS 375 X VST 
792 Cofins Offset ICOV 360 1 164 CO3 
793 COFINS Normal 
PO/GR 
ICOS 360 1 160 CO3 
794 Cofins IV Non Deduct ICOU 360 1 161 NVV 
795 COFINS Normal 
PO/GR 
ICOA 355 360 1 CO3 
796 Offset IPSS / IPSU IPSV 380 1 164 PI3 
797 PIS Nrmal PO/GR IPSS 380 1 160 PI3 
798 PIS Normal IV NVV IPSU 380 1 161 NVV 
16.09.2014 
Condition-Based Tax Calculation for Brazil 76 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat Sub 
Tot 
Req Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
799 PIS Normal PO/GR IPSA 375 380 1 PI3 
900 Withholding Taxes 1 X 
904 WHT Coll.Code Gen. BW01 X 5 
905 WHT Rate Gen. BW02 X 5 
909 WHT Coll.Code PIS BW11 X 5 
910 WHT Rate PIS BW12 X 5 
914 WHT Coll.Code 
COFINS 
BW21 X 5 
915 WHT Rate COFINS BW22 X 5 
919 WHT Coll.Code CSLL BW31 X 5 
920 WHT Rate CSLL BW32 X 5 
924 WHT Coll.Code IR BW41 X 5 
925 WHT Rate IR BW42 X 5 
940 BR WHT Base 
Amount 
BW51 X 2 160 
945 BR WHT Base 
Amount 
BXWT X 900(*) 5 
946 BR WHT Base 
Amount 
BXWA X 901(*) 5 
950 COFINS WHT ICOW 915 900(*) WTC 
951 COFINS WHT Ac- 
cum. 
ICOQ 915 901(*) WAC 
952 COFINS WHT Offset ICOZ 950 951 164 NVV 
955 PIS WHT IPSW 910 900(*) WTP 
956 PIS WHT - Accum. IPSQ 910 901(*) WAP 
957 PIS WHT Offset IPSZ 955 956 164 NVV 
960 CSLL WHT ICSW 920 900(*) WTS 
961 CSLL WHT - Accum. ICSQ 920 901(*) WAS 
962 CSLL WHT Offset ICSZ 960 961 164 NVV 
965 IR WHT IIRW 925 900(*) WTI 
966 IR WHT-Accum. IIRQ 925 901(*) WAI 
967 IR WHT Offset IIRZ 965 966 164 NVV 
970 General WHT IGEW 905 900(*) WTG 
971 General WHT- 
Accum. 
IGEQ 905 901(*) WAG 
972 General WHT Offset IGEZ 970 971 164 NVV 
981 355 X E 
982 361 X D 
986 375 X E 
987 X D 
998 COFINS Diff Resale ICOR 12 NVV 
999 Dummy Non-Statistic BI00 163 IPI 
16.09.2014 
Condition-Based Tax Calculation for Brazil 77 
 
 
 
5.1.6 Pricing procedure RVABRA 
The table below shows the calculation procedure RVABRA, which is the standard tax calculation pro- 
cedure for condition-based taxes for the usage A and the application V. 
The calculation procedure RVABRA is delivered by SAP. The corresponding BC set is 
ZCSC_BR_CBT_RVABRA_CALC_PROCD_SD. 
Details about the structure of the tax calculation procedure RVABRA can be found in the section 
4.2.12.2. 
Even though you need a pricing procedure to calculate Brazilian taxes, it is very common that custom- 
ers use their own pricing procedure instead of the standard one. Copy the RVABRA pricing procedure 
and adapt it according to your business needs. To avoid a too long pricing procedure, which could havenegative effects on the system performance, you could delete the rows, which are not needed in your 
company, from the pricing procedure. For example, if you do not sell services, you do not need the ISS 
rows from the pricing procedure RVABRA. 
The pricing procedure RVABRA displayed here and contained in the BC set refers to the requirements 
from the law MP135 (notes 664855 and 747607). It does not contain the changes due to the require- 
ments about the withholding tax accumulation. The reason for this is that withholding tax accumulation 
on the outgoing side applies only to a limited group of services and it impacts only a limited number of 
companies. If you need to implement withholding taxes with accumulation for your selling scenarios, you 
need to change some steps of the pricing procedure RVABRA and create some new steps. This is 
displayed in the second table below 
RVABRA according to MP135 (note 664855 and 747607) 
In order to make the identification of rows relating to special functionalities easier, they are highlighted 
as follows: 
 Blue = Conhecimento de Transporte Eletrônico / ICMS in freight invoices; 
 Red = ISS / Service Tax; 
 Green = Withholding Taxes; 
 Purple = PIS/COFINS with 4 decimal places. 
 
Step Description Cond 
Type 
From 
Step 
To 
Ste 
p 
Stat. Sub 
Tot. 
Req. Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
1 **** Zero **** X 
10 Price PR00 2 
50 Discount (Value) RB00 2 
198 Net Base 
199 General Taxability DGTX X 160 
200 ICMS Due DICM X 160 
201 ICMS Tax Rate ICVA X 160 
202 ICMS Tax Base ICBS X 160 
203 BR: ICMS Other Base ICOB X 160 
204 BR: ICMS 0 Exempt IC0X X 160 
205 BR: ICMS Convenio100 I100 X 160 
206 BR: ICMS Law ICLW X 160 
207 ICMS Rate SF=ST ISIC X 160 
208 ICMS Rate for ST ISTD X 160 
209 BR Cust ICMS Exempt ICXC X 160 
210 Zona Franca DIZF X 160 
220 Devido ICMS Freight DICF X 160 
16.09.2014 
Condition-Based Tax Calculation for Brazil 78 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Ste 
p 
Stat. Sub 
Tot. 
Req. Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
221 BR: ICMS on Freight ICFR X 160 
222 Conhecimento CONH X 160 
223 ICMS Conhe Base ICF1 X 160 
224 ICMS Conhe Rate ICF2 X 160 
225 ICMS Conh O.Bas Flag ICF3 X 160 
230 ICMS s/IPI Due DISI X 160 
240 BR: IPI Due DIPI X 160 
241 IPI Tax Rate IPVA X 160 
242 IPI Tax Base IPBS X 160 
243 BR: IPI Other Base IPOB X 160 
244 BR: IPI Pauta IPIP X 
245 BR: IPI 0 Excempt IP0X X 160 
246 BR: IPI Law IPLW X 160 
247 BR Cust IPI Exempt IPXC X 160 
248 COFINS Due DCOF X 160 
249 COFINS Rate BCO1 X 342 160 
250 COFINS Rate 4 Dec. BCO3 X 343 160 
251 COFINS Pauta Amount BCOP X 343 
252 COFINS Pauta 
Amt4Dec 
BCO4 X 343 
253 COFINS Base BCO2 X 160 
254 PIS Due DPIS X 160 
255 PIS Rate BPI1 X 342 160 
256 PIS Rate 4Dec. BPI3 X 343 160 
257 PIS Pauta Amount BPIP X 343 
258 PIS Pauta Amt 4 Dec. BPI4 X 343 
259 PIS Base BPI2 X 160 
260 ISS Due DISS X 160 
261 BR: ISS Amount ISVA X 160 
265 ISS New 2004 1 X 
266 ISS Rate at Prov. ISVB X 160 
267 ISS Base at Prov. ISVC X 160 
268 ISS Law at Prov. ISVD X 160 
269 IPI from SD ISVE X 160 
270 ISS TaxLoc at Prov. ISVF X 160 
271 ISS WHT at Prov. ISVG X 160 
272 ISS Min WHT at Prov. ISVH X 160 
273 ISS Rate at Serv. ISVN X 160 
274 ISS Base at Serv. ISVO X 160 
275 ISS Law at Serv. ISVP X 160 
276 ISS Ins. Cal at Serv ISVQ X 160 
277 ISS TaxLoc at Serv. ISVR X 160 
16.09.2014 
Condition-Based Tax Calculation for Brazil 79 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Ste 
p 
Stat. Sub 
Tot. 
Req. Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
278 ISS WHT at Serv. ISVS X 160 
279 ISS Min WHT at Serv. ISVT X 160 
280 Sub Trib Due DSUB X 160 
281 Subtrib Surcharge ISTS X 160 
282 BR: Sub.Trib SurType ISTT X 160 
283 BR: Sub.Trib MinPric ISTM X 160 
284 BR: Sub.Trib FixPric ISTF X 
285 Sub. Trib Base Value ISTB X 160 
286 BR: Sub.Trib Base 2 IST2 X 160 
287 Subtrib. Base Reduct ISTC X 160 
288 Subtrib.MinPr.Factor ISTN X 160 
289 S.T. MinPrBef.Surch. ISTI X 160 
290 SubTribFreight Due DSUF X 160 
300 Price+Tax (for NF) ICMI 1 2 320 ERL 
310 **** Modify Base **** 1 X 
320 Material K004 2 ERS 
321 Customer Discount K007 2 ERS 
322 Customer/Material K005 2 ERS 
400 Freight KF00 2 ERF 
600 Brazil tax calc. IBRX 300 599 X 320 
610 BR ICMS Normal Base BX10 X 320 
612 BR ICMS Excluded Bse BX11 X 320 
614 BR ICMS Other Base BX12 X 320 
615 BR ICMS Conhe Base BX17 X 320 
616 BR ICMS Amount BX13 320 MW2 
617 BR ICMS Zona Franca BXZF 320 MWS 
618 BR ICMS Freight Base BX14 X 320 
619 BR ICMS Conhe E. Bas BX1E X 320 
620 BRICMS Freight Amnt. BX15 320 MW3 
621 BR ICMS Conhe OtherB BX18 X 320 
622 BR ICMS Rate BX16 X 320 
623 BR ICMS Conhe 
Amount 
BX19 320 MW2 
624 BR IPI Normal Base BX20 X 320 
626 BR IPI Excluded Base BX21 X 320 
628 BR IPI Other Base BX22 X 320 
630 BR IPI Amount BX23 320 MW1 
632 BR IPI Offset Base BX24 X 320 
634 BR IPI Offset Amount BX25 X 320 
635 IPI Pauta Base * 10 BX2B X 320 
636 BR SubTrib Base BX40 X 320 
637 BR SubTrib Conh Base BX47 X 320 
16.09.2014 
Condition-Based Tax Calculation for Brazil 80 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Ste 
p 
Stat. Sub 
Tot. 
Req. Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
638 BR SubTrib Amount BX41 320 MW3 
639 BR SubTrib Conh Ebas BX4E X 320 
640 BR SubTrib Fr. Base BX42 X 320 
642 BR SubTrib Fr. Amnt BX43 320 MW3 
644 BRSubTrib NF Rate BX44 X 320 
645 BR SubTri Conhe Amnt BX49 320 MW3 
646 BR ISS Base BX50 X 320 
647 BR SubTrib Basered1 BX45 X 320 
648 BR SubTrib Basered2 BX46 X 320 
650 BR IPI Pauta Amount BXPA 320 MW1 
652 BR ISS Base Prov BX60 X 320 
653 BR ISS ExBase Prov BX61 X 320 
654 BR ISS WT Base Prov BX64 X 320 
655 BR ISS WT ExBas Prov BX65 X 320 
656 BR ISS Base Serv BX6A X 320 
657 BR ISS ExBase Serv BX6B X 320 
658 BR ISS WT Base Serv BX6E X 320 
659 BR ISS WT ExBas Serv BX6F X 320 
660 BR ISS Amount BX51 320 MW4 
661 BR ISS Amount Prov BX62 320 MW4 
662 BR ISS WTAmount Prov BX63 X 320 
663 BR ISS Amount Serv BX6C 320 MW4 
664 BR ISS WTAmount Serv BX6D X 320 
665 BR ISS offset BX6O 660 664 BRI 
666 BR COFINS Base BX70 X 320 
667 BR COFINS Excl. Base BX71 X 320 
668 BR COFINS Amount BX72 320 COF 
669 BR COFINS Pauta Amt. BX7P X 320 
670 BR COFINS Pauta Amt. BX7Q X 320 
671 COF Pauta Base * 10 BX7B X 320 
672 BR COFINS offset BX7O 668 668 ERL 
675 BR PIS Base BX80 X 320 
677 BR PIS Excl. Base BX81 X 320 
679 BR PIS Amount BX82 320 PIS 
680 BR PIS Pauta Amt. BX8P X 320 
681 BR PIS Pauta Amt. BX8Q X 320 
682 PIS Pauta Base * 10 BX8B X 320 
683 BR PIS offset BX8O 679 679 ERL 
700 **** Tax Code Condi- 
tions **** 
 1 
702 IPI from SD IPI3 1 X 
704 ICMS from SD ICM3 1 X 
16.09.2014 
Condition-Based Tax Calculation for Brazil 81 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Ste 
p 
Stat. Sub 
Tot. 
Req. Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
706 Sub.Trib. from SD ICS3 1 X 
708 ISS from SD ISS3 1 X 
710 ADMS Disc. Zona Fr. ICZF 1 X 
712 ICMS on freight SD IFR3 1 X 
714 ICMS ST freight SD IFS3 1 X 
715 ISS at Provider ISSA 1X 
715 ISS WHT at Provider ISSB 662 WK3 
715 ISS WHT Off. Prov. ISSC 1 X 
715 ISS WHT Again Prov. ISSD 1 X 
715 ISS at Serv.Loc. ISSE 1 X 
715 ISS WHT at Serv.Loc. ISSF 664 WK3 
715 ISS WHT Off. SrvLoc ISSG 1 X 
715 ISS WHT Again SrvLoc ISSH 1 X 
716 Conhecimento ICMS CIC3 1 X 
717 Conhe. SubTrib CST3 1 X 
719 Total Tax 702 718 
720 ICMS offset ICMO 616 BRI 
721 Conhe. ICMS offset CICO 623 BRI 
722 Conhe SubTrib offset CSTO 645 BRI 
740 Rounding Off DIFF 13 16 4 ERS 
750 Net Value + Tax 4 
800 Cash Discount SKTO X 9 11 
810 Internal price VPRS X B 4 
899 WITHHOLDING TAXES 
ON GROSS 
 1 X 
900 BR General WHT Code WGEC X 164 
901 BR PIS WHT Code WPIC X 164 
902 BR COFINS WHT Code WCOC X 164 
903 BR CSLL WHT Code WCSC X 164 
904 BR IR WHT Code WIRC X 164 
905 BR ISS WHT Code WISC X 164 
910 BR WHT Base Amount BXWT X 5 
912 WHT Due DWHT X 160 
913 WHT Acc. Flag BW51 X 2 160 
915 WHTColl.Code Gen. BW01 1 X 
916 WHT Rate Gen. BW02 X 5 
920 WHT Coll.Code PIS BW11 1 X 
921 WHT Rate PIS BW12 X 5 
925 WHT Coll.Code COFINS BW21 1 X 
926 WHT Rate COFINS BW22 X 5 
930 WHT Coll.Code CSLL BW31 1 X 
931 WHT Rate CSLL BW32 X 5 
16.09.2014 
Condition-Based Tax Calculation for Brazil 82 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Ste 
p 
Stat. Sub 
Tot. 
Req. Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
935 WHT Coll.Code IR BW41 1 X 
936 WHT Rate IR BW42 X 5 
940 General WHT IGEW 916 WG3 
942 BR GENERAL WHT 
Offst 
BGEZ 916 164 WG4 
945 PIS WHT IPSW 921 WP3 
947 BR PIS WHT Offset BPSZ 921 164 WP4 
950 COFINS WHT t ICOW 926 WC3 
953 BR COFINS WHT Offset BCOZ 926 164 WC4 
955 CSLL WHT ICSW 931 WS3 
957 BR CSLL WHT Offset BCSZ 931 164 WS4 
960 IR WHT IIRW 936 WI3 
962 BR IR WHT Offset BIRZ 936 164 WI4 
999 Dummy Non-Statistic BI00 1 X 
 
 
RVABRA with withholding tax accumulation 
 
 
 
 
Step Description Cond 
Type 
From 
Step 
To 
Step 
Stat. Sub 
Tot. 
Req. Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
 
899 WITHHOLDING TAXES 
ON GROSS 
 1 X 
900 BR General WHT Code WGEC X 164 
901 BR PIS WHT Code WPIC X 164 
902 BR COFINS WHT Code WCOC X 164 
903 BR CSLL WHT Code WCSC X 164 
904 BR IR WHT Code WIRC X 164 
905 BR ISS WHT Code WISC X 164 
906 General WHT code Ac- 
cu 
IGW6 X 164 
907 PIS WHT code Accu IPW6 X 164 
908 COFINS WHT code 
Accu 
ICW6 X 164 
909 CSLL WHT code Accu ISW6 X 164 
910 IR WHT code Accu IRW6 X 164 
911 WHT Due DWHT X 160 
912 WHT Acc. Flag BW51 X 2 160 
913 BR WHT Base Amount BXWT X 900 5 
914 BR WHT Acc Base Amt BXWA X 901 5 
915 WHTColl.Code Gen. BW01 1 X 
916 WHT Rate Gen. BW02 X 5 
920 WHT Coll.Code PIS BW11 1 X 
16.09.2014 
Condition-Based Tax Calculation for Brazil 83 
 
 
 
Step Description Cond 
Type 
From 
Step 
To Stat. 
Step 
Sub 
Tot. 
Req. Alt. 
Calc. 
Type 
Alt. 
CBV 
Acc. 
Key 
 
921 WHT Rate PIS BW12 X 5 
925 WHT Coll.Code COFINS BW21 1 X 
926 WHT Rate COFINS BW22 X 5 
930 WHT Coll.Code CSLL BW31 1 X 
931 WHT Rate CSLL BW32 X 5 
935 WHT Coll.Code IR BW41 1 X 
936 WHT Rate IR BW42 X 5 
940 General WHT IGEW 916 900 WG3 
941 General WHT Accum. IGEQ 916 901 WG5 
942 BR GENERAL WHT 
Offst 
BGEZ 940 941 164 WG4 
945 PIS WHT IPSW 921 900 WP3 
946 PIS WHT - Accum. IPSQ 921 901 WP5 
947 BR PIS WHT Offset BPSZ 945 946 164 WP4 
950 COFINS WHT ICOW 926 900 WC3 
951 COFINS WHT Accum. ICOQ 926 901 WC5 
953 BR COFINS WHT Offset BCOZ 950 951 164 WC4 
955 CSLL WHT ICSW 931 900 WS3 
956 CSLL WHT - Accum. ICSQ 931 901 WS5 
957 BR CSLL WHT Offset BCSZ 955 956 164 WS4 
960 IR WHT IIRW 936 900 WI3 
961 IR WHT - Accum. IIRQ 936 901 WI5 
962 BR IR WHT Offset BIRZ 960 961 164 WI4 
999 Dummy Non-Statistic BI00 1 X 
 
 
5.2 Tax codes configuration 
Tax codes for both MM and SD can be created or changed in the Tax Manager’s Workplace in the menu 
path Tax Calculation > Tax Codes MM or Tax Codes SD. You need to select one tax code and then 
choose the menu path Goto > Maintain Conditions. There you can activate one or more condi- tions for 
the selected tax codes. 
Below you can see some examples. 
 
5.2.1 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 
16.09.2014 
Condition-Based Tax Calculation for Brazil 84 
 
 
 
5.2.2 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 
 
 
5.2.3 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 
 
 
5.2.4 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 
16.09.2014 
Condition-Based Tax Calculation for Brazil 85 
 
 
 
5.2.5 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 
 
 
5.2.6 To activate ISS 
 
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 
 
 
5.3 Migration from classical to condition based tax calculation 
If you want to use the condition-based tax calculation after some tax Customizing has already been 
carried out, you have to initially generate condition records for the entries in the Brazilian tax tables. 
SAP provides a standard functionality in order to migrate the old tax Customizing to condition records. 
This functionality comprises a transaction for migrating single tax tables and a program which can be 
used to migrate more tables at once. 
Details on these tools can be found in the sections 5.3.1 and 5.3.2. 
If you have not maintained any tax rates yet, you do not need to run the migration tools. After activat- 
ing the condition generation, condition records will be generated automatically when maintaining tax 
rates. 
Even if you have already done some customizing settings for the Brazilian taxes or if you want to switch 
from the old tax calculation to condition-based tax calculation, it is NOT recommended to run the 
migration transaction in update mode. 
Any change to tax settings in an already productive system is a very critical change, which requires 
special caution. The process of defining the condition types and the other condition-based settings 
required in your system is a very critical process and it is project work. 
Therefore, our recommendation is to use the tool described in section 5.3.1.1 to check the CBT tables, 
but not to update them. Similarly, we recommend you NOT to use the mass migration program cited in 
the section 5.3.2. 
16.09.2014 
Condition-Based Tax Calculation for Brazil 86 
 
 
 
Instead we recommend that you analyze your current system settings in detail anddefine the right 
strategy to implement the condition-based taxes with the help of a consultant expert in this topic. 
 
 
5.3.1 Tools to check and migrate tax customizing to condition records 
By choosing Condition Setup – Migration (Shift+F5) in the Tax Manager’s Workplace, a screen is dis- 
played where the initial conversion of the entries in the Brazilian tax tables to condition records can be 
started. There, you check if all entries are successfully converted. 
 
5.3.1.1 Check conditions 
On the right side of the screen, you see a table which contains a list of tax rates tables. 
You can check the entries of a tax rate table by selecting the corresponding line and choosing Condi- 
tion Records – Check Conditions (F5). For each entry in the respective table, it is checked (based on 
the Customizing in the mapping tables J_1BVIEWMAP and J_1BTXCOND) whether corresponding 
condition records exist. The selections made in the Application group determine whether the condi- tions 
for the application TX (used in materials management) or V (used in sales and distribution) are being 
checked. 
The entries and the numbers of the corresponding conditions are displayed in the ALV list. By double- 
clicking on a condition record number a modeless popup window is displayed that contains detailed 
information about the condition record from the corresponding entries in the DDIC tables KONH and 
KONP. 
The traffic lights icon in the leftmost column of the ALV list indicates whether for each field in the table 
line, which needs to have a corresponding condition record, a condition exists (green); no conditions 
exist so far (red); or only some fields have corresponding conditions (yellow). 
The icon in the leftmost column of the table control with all Brazilian tax tables gives a summary of the 
check: The magnifying-glass indicates that the respective table has not been checked since the trans- 
action was started. Green traffic lights mean that every entry in the table has all corresponding condi- 
tion records; red means that at least one entry has no condition records so far; yellow means that at 
least one line has only some converted fields. 
 
5.3.1.2 Migrate tax data to tax conditions 
By choosing Condition Records – Convert (F6), the conversion of tax records to conditions is started. It 
is prerequisite that all customizing of the mapping tables is already done; otherwise, errors are being 
issued. 
The selection made in the group Conversion Options determines the mode of conversion. If the first 
option is chosen, every field is converted in any case, even though a corresponding condition record 
already exists. If the second option is chosen, the user, in case of existing condition records, is asked 
what to do. If the third option is chosen, only the fields, which do not have corresponding condition 
records so far, are converted 
 
5.3.2 Mass migration program 
In order to migrate all tax Customizing data to condition records, SAP provides the program 
J_1B_GEN_TAX_COND_BACK. Note 634981 describes the details. 
However, it is NOT recommended to use this program, because it causes changes in several tables and 
could overwrite your actual customizing settings. As it is written above, you could use the Tax Manager’s 
Workplace to check the completeness of your condition tables, but it is not recommended to run the 
migration tool in update mode.