You must include this transaction type when you enter an invoice so the necessary information is applied in the fiscal books.

Tax Calculation -Entering an Invoice - IPI

Payables calculates IPI tax and creates IPI tax distribution lines in the invoice when matching to a purchase order.

Automatic Tax Calculation on Matching against PO - IPI

This feature verifies that the tax name on an invoice line matches the tax name on the corresponding purchase order line. If the tax names are not the same, AutoApproval automatically places a Tax PO/Invoice Difference hold on the invoice.

The information regarding the calculation base, tax rate, and tax amount of the purchase order are automatically considered as base values when the purchase order is matched to the invoice.

If the quantity or unit price on the invoice is different than the quantity or unit price on the purchase order, the base and the value of the taxes are recalculated. If you change the tax rate when you enter the invoice, the tax value is recalculated. Payables leaves the invoice on hold when the calculation base values, rates, and values are different from those on the purchase order.

The Tax PO/Invoice Difference holds are generated if tax rates or amounts for the invoice lines and the corresponding lines on the purchase order are different.

Payables uses the calculation base, rate, and accounting information from the setup as default values for calculating the tax value. You can override this information at the item line level for instances when the tax applied is different from the default tax name used at setup. All of this information is stored at the line level during invoice entry.

Note: To select rates, Payables searches for tax names at the inventory item and then at the fiscal classification. It stops when a tax name is found.

Rate Differential - ICMS

Rate differential is the rate applied to items that were purchased from a different state and the interstate ICMS rate is lower than the intrastate rate.

The rate differential is identified by the operation fiscal code (CFO) 261, 262, 291, or 292. You use the Operation Fiscal Code window to assign a rate differential CFO.

Tax Calculation - Entering an Invoice - ICMS

Payables calculates your tax value based on your tax location when ship-from is defined in the Supplier Site window and ship-to is defined in the Payables Options window. You can override this information at the header level for instances when the tax applied is different from the default tax name used at setup. All of this information is stored by line during invoice entry.

Automatic Tax Calculation on Matching against PO - ICMS

This feature verifies that the tax name on an invoice line matches the tax name on the corresponding purchase order distribution line. If the tax names are not the same, AutoApproval automatically places a Tax PO/Invoice Difference hold on the invoice.

The CFO that you specified for the invoice header is used as the default CFO value for the invoice lines.

Since the ICMS tax is price inclusive, the amount is deducted when the distribution is generated.

The purchase order calculation base, tax rate, and tax amount are automatically used as base values when the purchase order is matched to the invoice.

If the invoice quantity or unit price is different than the purchase order quantity or unit price, the base and the value of the taxes are recalculated. If you change the tax rate when you enter the invoice, the tax value is recalculated.

The Tax PO/Invoice Difference holds are generated only if the tax rates for the invoice lines and the corresponding lines on the purchase order are different.

Payables automatically uses the calculation base, rate, and accounting information from the setup and calculates the tax value. You can override this information at the item line level for instances when the tax applied is different from the default tax name used at setup. All of this information is stored by line during invoice entry.

Note: To select rates, Payables searches for tax names at the Supplier Sites, fiscal classification, item, and location levels. Payables uses the first tax name it finds.