5 Setting Up the System for Argentinian Taxes

This chapter contains the following topics:

5.1 Common Fields Used in This Chapter

Address Number

Enter a number that identifies an entry in the JD Edwards EnterpriseOne Address Book system, such as employee, applicant, participant, customer, supplier, tenant, or location.

Effective Date and Expiration Date

Enter the date when a transaction, contract, obligation, preference, or policy rule becomes effective, or ceases to be in effect.

Tax Rate/Area

Enter a code that identifies a tax or geographic area that has common tax rates and tax authorities. The system validates the code you enter against the F4008 table. The system uses the tax rate/area with the tax explanation code and tax rules to calculate tax and GL distribution amounts when you create an invoice or voucher.

Tax Code

Enter a code that defines a Tax.

5.2 Setting Up Tax User-Defined Codes

Set up UDCs for standard tax processing and to meet the requirements of RG 1361 for sales and purchase transactions.

See Setting Up UDCs for Tax Processing for Argentina.

5.3 Setting Up Tax Constants

This section discusses how to set up tax constants for Argentina.

You must specify whether tax areas will apply to the system as a whole, to specific companies, or to specific business units within companies. You must also specify whether the system includes previously calculated tax amounts when calculating taxes.

This section discusses how to set up tax constants.

5.3.1 Form Used to Set Up Tax Constants

Form Name Form ID Navigation Usage
Taxes Initial Setup - ARG - 00 W76A00C Tax Set up (G76A00B), Tax Constants

Click the Taxes Constants button on the Taxes Constants form.

Set up the tax constants.

5.3.2 Setting Up Tax Constants

Access the Taxes Initial Setup - ARG - 00 form.

Number Access Tax Groups

Enter a value that exists in the ARG - Item ANAT Allowed Values (76A/B7) UDC table. Examples are:

1: Tax Area

2: Tax Area / Co

3: Tax Area / Co / Business Unit

Tax on Tax Y/N

Enter a value that exists in the ARG - Item ANAT Allowed Values (76/A3) UDC table to specify whether tax is calculated on the tax amount. Values are:

Blank or N: No tax is calculated on the tax.

Y: Tax is calculated on the tax.

Note:

The Tax on Tax functionality is applicable for Invoices in Sales Order Process and Account Receivable. Auto Cash Receipt will not process Tax on Tax.

Select N in the Tax on Tax Y/N field to indicate that the Auto Cash Receipt will not have the tax on tax calculation.

Validate Tax Letter

Enter a value that exists in the ARG - Item ANAT Allowed Values (76A/A3) UDC table to specify whether the system validates the tax letter. Values are:

Blank or N: No

Y: Yes.

5.4 Setting Up Tax Areas

This section provides overviews of tax areas, tax areas for RG 1361, tax area relationships for credit invoices, lists a prerequisite, and discusses how to:

  • Set up tax areas for Argentina.

  • Set up tax area relationships for credit invoices.

5.4.1 Understanding Tax Areas

The tax area is a code that represents a tax structure, and includes a start and end date. Each tax for a tax area has its own characteristics, such as calculation method, tax minimum, and account. The system maintains a relationship between the standard tax areas and the country-specific tax areas.

Each tax can have only one minimum (such as the IIBB). Therefore, you must split the tax into as many codes as there are required minimums.

You set up country-specific tax areas in the standard Tax Rate/Areas program (P4008), and then you create a tax group with the same name in the Tax Groups program (P76A15).

5.4.2 Understanding Tax Areas Additional Information (Release 9.2 Update)

The system uses tax areas in many programs and for many purposes. For some of these functionalities, you must include additional information about the tax rates. You can enter additional data in the Additional Tax Information form and the Work With Additional Tax Rate Information form using the Regional Info row menu option in the Tax Rates Setup program (P4008).

The system only launches the Localizations Additional Fields Tax Area program (P704008A) and displays the Work With Additional Tax Rate Information form when the Localization Country Code in your user profile is set to AR (Argentina).

The Work With Tax Area Additional Information form includes the tabs String, Numeric, Date, and Character. The information in each tab is grouped according to the type of data that you enter. The system uses the information entered in these fields for different purposes.

The system saves the data that you enter for tax areas in the Work With Tax Area Additional Information form to the Localizations Additional Fields Tax Area - 04 table (F704008).

Note:

Before you can work with Tax Area Additional Information, ensure that the solution has been set up running the Localizations Additional Information Setup program (R7000100).

See Setting Up Localizations Additional Information for Argentina.

5.4.3 Understanding Tax Areas for RG 1361

The country-specific tax area setup includes fields to meet the requirements of RG 1361. The Tax Rate Maintenance - ARG program (P764008A) includes fields in which you specify the tax codes types and tax percentages for different fiscal areas. You enter this information so that the tax information can be used in the subledgers according to RG 1361.

The tax code type fields are activated for tax rates 2, 3, and 4 if you specify a percentage for those tax rates on the Tax Rate/Area Revisions form. Tax rate 1 is reserved for VAT tax and tax rate 5 is reserved for VAT perception.

These hard-coded values exist in the ARG-Item ATSx-allowed values (76/A7) UDC table and identify tax code types:

Code Description
1 VAT (value-added tax)
2 Gross Income Perception
3 City Council Tax Perception
4 Internal Taxes
5 VAT Perception
6 Others
7 Other Perceptions of National Taxes

This example displays a tax area with all five tax rates used:

Tax Rate Percentage Tax Code Type
1 21 1 (VAT)
2 4 3 (City Council Tax Perception)
3 2 4 (Internal Taxes)
4 10 2 (Gross Income Perception)
5 5 5 (VAT Perception)

5.4.4 Understanding Tax Area Relationships for Credit Invoices

You must set up a temporary tax areas for each tax area that is used by the suppliers who issue credit invoices. The temporary tax areas must have the same percentage as the original tax area and an offset that uses the temporary fiscal credit account.

You cross-reference the original tax areas to the temporary tax areas by using the AP Tax Areas Relationship program (P76A25). You can cross-reference only one temporary tax area to each original tax area. Tax area cross-references are stored in the Credit Invoice Tax Area Relationship table (F76A25).

5.4.5 Prerequisite

Review the standard steps for setting up a tax area.

See Setting Up Tax Areas.

5.4.6 Forms Used to Set Up Tax Areas

Form Name Form ID Navigation Usage
Work With Tax Rate/ Areas W4008A Tax Set up (G76A00B), Tax Areas Review and select tax rate/area records.
Additional Tax Information W764008AC Use one of these navigation options:

· Select Regional Info from the Row menu on the Work With Tax Rate/ Areas form.

· Select a record in the Work With Tax Rate/Areas form and access the Tax Rate Area Revisions form. Go to the Form menu Regional Info. (Release 9.2 Update)

Add and revise additional tax area information for Argentina.
Work With Tax Area Additional Informations (Release 9.2 Update) W704008AC In the Additional Tax Information form, click Save or Cancel. Add and revise additional tax area information for Argentina in the Numeric Data tab.
Work With Credit Invoice Tax Areas Relationships W76A25A Credit Invoice System Set up (G76A00D), AP Tax Areas Relationship Review and select tax area relationship records.
Enter Tax Areas Relationship Information W76A25B Click Add on the Work With Credit Invoice Tax Areas Relationships form. Add and revise tax area relationship records.

5.4.7 Setting Up Tax Areas for Argentina

Access the Additional Tax Informations form.

Invoice Group (A,B,C)

Enter a value that exists in the ARG - Item ARGP-Allowed Values (76/B1) UDC table to specify the invoice group to which the tax area belongs.

5.4.8 Entering Additional Tax Rate Information (Release 9.2 Update)

Access the Work With Tax Area Additional Informations form.

5.4.8.1 Numeric Data

The information that you enter in the pre-defined fields listed in this tab is a set of numeric characters.

VAT Rate Not Identified

Enter the tax rate that the system uses for vouchers where VAT is not identified. The system uses this information in the VAT withholding process.

5.4.9 Setting Up Tax Area Relationships for Credit Invoices

Access the Enter Tax Areas Relationship Information form.

Tax Area

Enter a code that identifies a tax or geographic area that has common tax rates and tax authorities. The system validates the code you enter against the F4008 table. The system uses the tax rate/area with the tax explanation code and tax rules to calculate tax and general ledger distribution amounts when you create an invoice or voucher.

Tax Area FC (tax rate/area 2)

Enter a user-defined code that identifies a tax or geographical area that has common tax rates and tax distribution. The tax rate/area must be defined to include the tax authorities (for example, state, county, city, rapid transit district, or province) and their rates.

Tax Area FC is the temporary tax area for credit invoices.

5.5 Setting Up Tax Definitions

This section provides overviews of tax definitions and tax minimums, lists prerequisites, and discusses how to:

  • Set up basic tax information.

  • Specify a predecessor tax.

  • Specify tax rates.

  • Specify minimum invoice amounts.

5.5.1 Understanding Tax Definitions

When you set up taxes for Argentina, you define basic tax information and define:

  • Tax minimums

  • Taxes by predecessor taxes

  • Tax rates

5.5.1.1 Tax Definitions

You use the Tax Definitions program (P76A10) to set up basic tax information that includes:

  • The customer type and customer category code to use to determine the tax.

  • The GL class that the system uses to configure the tax automatic accounting instruction (AAI). AAIs are used to move taxes from the trade account to the final account.

  • The invoice line in which tax will appear.

  • The column of the VAT Sales Subledger report in which the tax will appear, which ensures that the taxes calculated for credit notes are equal to those of the invoices to which they are related.

  • Whether taxes should be split in Invoice B.

    Legally, Invoice B taxes should be included in the unit price. However, some taxes are exempt from the law and, therefore, must be separated in all instances, including Invoice B.

  • The hierarchy that the system uses to process the tax values.

    You can specify whether item hierarchy or customer hierarchy is used. The hierarchy is hard-coded. The processing method uses the item or customer combinations to look for the value of the tax, but does not change what you can access.

  • The end date, tax calculation date, and tax category.

5.5.1.2 Setting Up Tax Definitions for RG 1361

You must complete the Tax Category field on the Tax Definition form with one of these values to meet the requirements of RG 1361.

Code Description
1 VAT
2 National perception of taxes
3 Jurisdictional
4 Gross incomes
5 Internal taxes
6 Other (corresponds to exempt concepts)

5.5.1.3 Taxes by Predecessor

You define taxes by predecessor if a tax amount must be calculated and added to the taxable amount before the new tax is applied.

5.5.1.4 Tax Values

You can define tax rates (tax values) as a percentage of the taxable amount or as a fixed amount per unit of measure by customer and item. You can also define tax values for customers within a group, as identified by a category code. You use the Tax Definitions program to set up tax values.

If the value in the Order Tax Processing field (APTO) on the Tax Definition form is C (first by Customer, and then Item), the system retrieves tax values by using this hierarchy:

Key Number ATXC AN8 ITM AC20 SRP0
0 Value Value Value . .
1 Value Value . . Value
2 Value Value . . .
3 Value . Value Value .
4 Value . . Value Value
5 Value . . Value .
6 Value . Value . .
7 Value . . . Value
8 Value . . . .

If the value in the Order Tax Processing field (APTO) on the Tax Definition form is I (first by Item, and then Customer), the system retrieves tax values by using this hierarchy:

Key Number ATXC AN8 ITM AC20 SRP0
10 Value Value Value . .
11 Value . Value Value .
12 Value . Value . .
13 Value Value . . Value
14 Value . . Value Value
15 Value . . . Value
16 Value Value . . .
17 Value . . Value .
18 Value . . . .

Note:

Category codes values are retrieved from the Customer Master by Line of Business (F03012) table.

5.5.2 Understanding of Tax Minimums

You can specify a minimum value that will determine whether a tax should be applied. You can specify minimums by tax code or by invoice amount. Only one minimum can be used, whether it be the invoice minimum or the tax code minimum. Both are set up by using effective dates.

If you specify minimums by tax code, the system uses the invoice total to calculate the tax value and the resulting tax value is compared to the minimum; this comparison is then used to determine whether the tax should be applied to the invoice.

Note:

Changing the tax percentage can affect the minimum.

If you specify minimums by invoice amount, the taxable base amount is compared to the minimum. If the minimum is greater than the taxable base amount, the tax is not calculated.

5.5.2.1 Example: Invoice Minimum Calculations

Invoice minimum for tax XXX = 500

Percentage of tax XXX = 10 percent

Invoice total without taxes = 5100

Because the invoice total without taxes (5100) is greater than the minimum (500), the tax is calculated as 5100 *.10 = 510. If the invoice total without taxes had been less than 500, the tax would not be calculated.

Note:

The minimum tax value is expressed by using the company's base currency.

5.5.3 Prerequisites

Before you complete the tasks in this section:

  • Define these UDCs:

    • (76A/TC)

    • (76A/B3)

    • (76A/UM)

  • Set up the customer and item category codes to use for tax codes.

  • Configure units of measure for taxes.

5.5.4 Forms Used to Set Up Tax Definitions

Form Name Form ID Navigation Usage
Work with Tax Definition - ARG - 00 W76A10A Tax Set up (G76A00B), Tax Definitions Review and select tax definition records.
Tax Definition W76A10B Click Add on the Work with Tax Definition - ARG - 00 form. Set up or revise basic tax information.
Tax Predecessor W76A10E Select a record on the Work with Tax Definition - ARG - 00 form and select Tax Predecessor from the Row menu. Specify the tax type that is calculated as a predecessor for the tax being set up.
Tax Values W76A10D Select a record on the Work with Tax Definition - ARG - 00 form and select Tax Values from the Row menu. Specify tax rates by customer, item, or unit of measure.
Tax Minimum W76A10C Select a record on the Work with Tax Definition - ARG - 00 form and select Tax Values from the Row menu. Specify the minimum invoice amount on which tax is calculated.

5.5.5 Setting Up Basic Tax Information

Access the Tax Definition form.

Tax Code

Enter a value that exists in the Tax Code (76A/TC) UDC table to specify the tax code.

GL Offset (general ledger offset)

Enter a code that determines the trade account that the system uses as the offset when you post invoices or vouchers. The system concatenates the value that you enter to the AAI item RC (for JD Edwards EnterpriseOne Accounts Receivable) or PC (for JD Edwards EnterpriseOne Accounts Payable) to locate the trade account. For example, if you enter TRAD, the system searches for the AAI item RCTRAD (for receivables) or PCTRAD (for payables).

You can assign up to four alphanumeric characters to represent the GL offset or you can assign the three-character currency code (if you enter transactions in a multicurrency environment). You must, however, set up the corresponding AAI item for the system to use; otherwise, the system ignores the GL offset and uses the account that is set up for PC or RC for the company specified.

If you set up a default value in the GL Offset field of the customer or supplier record, the system uses the value during transaction entry unless you override it.

Note:

Do not use code 9999. It is reserved for the post program and indicates that offsets should not be created.
Customer Type

Enter a value that exists in the ARG - Item CTYA Allowed Values (76A/B2) UDC table to specify the customer type used to determines the tax. Examples are:

1: Customer

2: Ship to number

3:Parent number

Customer Category Code Number

Enter a code that specifies the Customer Category code number to use to determine the tax.

If you complete this field, the system displays the Cust Code field on the Tax Values form, which enables you to set up tax values by customer category code. For example, if you specify 05 in this field, you can enter values from UDC (01/05) in the Cust Code field on the Tax Values form.

Item Category Code Number

Enter a code that specifies the Item Category code number to use to determines the Tax.

If you complete this field, the system displays the Item Code field on the Tax Values form, which enables you to set up tax values by item category code. For example, if you specify 03 in this field, you can enter values from UDC (41/S3) in the Item Code field on the Tax Values form.

The Item Category Code Number field applies to sales order processing only.

Sales Invoice Bucket

Enter a value that exists in the ARG - Item ASIB Allowed Values (76A/B3) UDC table to specify the sales invoice bucket in which the system accumulates the tax amount.

Sales Report Group Column

Enter a value that exists in the ARG - Item ASGC Allowed Values (76A/B4) UDC table to specify the Sales VAT Report column to which the system prints the tax amount.

Dependence Credit Note/Invoice

Enter a value that exists in the ARG - Allowed Values Y/N (76/A3) UDC table to specify whether the system overrides minimums so that the same taxes can be calculated for the credit note as for the original invoice. To do this, you must specify document dependency on the tax definition. If you do not specify document dependency, the minimum is enforced. Related credit notes let you link a credit note to the original invoice.

Examples are:

Blank and N: Minimums of related credit notes are enforced.

Y: Override the minimums of related credit notes. t

Y/N Discriminate Amount B Invoice

Enter a value that exists in the ARG - Allowed Values Y/N (76/A3) UDC table to specify whether to split out (discriminate) the amounts in B-type invoices. Examples are:

Blank and N: Do not discriminate taxes.

Y: Discriminate taxes.

Order Tax Processing

Enter a value that exists in the ARG - Item APTO Allowed Values (76A/B6) UDC table to specify the order in which taxes are processed. Examples are:

C: First by customer, then by item.

I: First by item, then by customer.

Expiration Date

Enter the date when a transaction, contract, obligation, preference, or policy rule ceases to be in effect.

Tax Calculation Date

Enter a value that exists in the Tax Calculation Date (76A/CD) UDC table to specify whether the tax expiration date is based on the invoice or the shipment note date. Values are:

I: Invoice

S: Shipment note

Tax Category

Enter a value that exists in the ARG-Item ATSx-allowed values (76/A7) UDC table to specify the tax category. Values are:

1: VAT

2: Gross Income Perception

3: Municipal Tax Perception

4: Internal Taxes

5: National Taxes Perception

6: Other

5.5.6 Specifying a Predecessor Tax

Access the Tax Predecessor form.

Predecessor Tax Code

Enter the Precedent Tax Code used to calculate the current record.

5.5.7 Specifying Tax Rates

Access the Tax Values form.

Cust Code (customer code)

The system displays this field if you entered a code in the Customer Category Code Number field on the Tax Definition form. Select a code from the Address Book category code that you entered in the Customer Category Code Number field. For example, if you entered code 10 (Customer Group), you can select a value from the 01/10 (Customer Group) UDC table to specify the customer code.

Item Code

The system displays this field if you entered a code in the Item Category Code Number field on the Tax Definition form. Select a code from the Inventory category code that you entered in the Item Category Code Number field. For example, if you entered code 05, you can select a value from the 41/05UDC table to specify the item code.

Effective Date

Enter the date when a transaction, contract, obligation, preference, or policy rule becomes effective.

Tax Rate

Enter a number that identifies the percentage of tax that should be assessed or paid to the corresponding tax authority, based on the tax area.

Enter the percentage as a whole number and not as the decimal equivalent. For example, to specify 7 percent, enter 7, not .07.

Meas Unit Tax Amount (unit of measure tax amount)

Specify the tax amount by unit of measure.

UM (unit of measure)

Enter a user-defined code (00/UM) that indicates the quantity in which to express an inventory item, for example, CS (case) or BX (box).

5.5.8 Specifying Minimum Invoice Amounts

Access the Taxes Minimum form.

Effective Date and Expiration Date

Enter the date when a transaction, contract, obligation, preference, or policy rule becomes effective, or ceases to be in effect.

Min Inv Tot Amo (minimum invoice total amount)

Enter the minimum tax invoice total amount.

5.6 Setting Up Tax Groups

This section provides overviews of tax groups and general resolution 1575, and discusses how to:

  • Associate a tax code to a tax area.

  • Associate an invoice and shipment group to a tax area.

5.6.1 Understanding Tax Groups

You use the Tax Groups (P76A15) program to establish a relationship between tax codes that exist in the Tax Codes (76A/TC) UDC table and tax areas that exist in the Tax Areas (F4008) table.

Note:

If a customer's tax situation changes, you must invoice whatever is pending and then make changes to the tax areas.

5.6.2 Understanding General Resolution 1575

The AFIP (Administracion Federal de Ingresos Públicos) created the legal invoice type M through General Resolution 1575. To meet the legal requirements, you must add a value for invoice group M to UDC 76/B1 and then create new tax groups by using the Tax Groups program (P76A15) and assign invoice group M on the Invoice Shipment Note Letter - ARG - 00 form.

Note:

Vouchers in invoice group M are prenumbered. Therefore, companies using invoice group M should not set up the autoprinter option in the Work with RG100 -Autoprinter Supp-AR/SOP program (P76A004).

5.6.3 Prerequisites

Before you complete the tasks in this section:

  • Set up invoice group codes in UDC 76/B1 (ARG - Item ARGP-Allowed Values).

  • Set up standard tax areas.

  • Set up tax definitions.

5.6.4 Forms Used to Set Up Tax Groups

Form Name Form ID Navigation Usage
Work with Tax Groups - ARG - 00 W76A15B Tax Set up (G76A00B), Tax Groups. Review and select tax definition records by tax code.
Tax Groups - ARG - 00 W76A15A Click Add on the Work with Tax Groups - ARG - 00 form. Associate tax codes to a tax area.
Tax Groups - Invoice Shipment Note Letter - ARG - 00 W76A15D Select a record on the Work with Tax Groups - ARG - 00 form and select Inv./Ship. Letter from the Row menu. Specify the invoice group and shipment group for a tax area.

5.6.5 Associate Tax Codes to Tax Rate and Areas

Access the Tax Groups - ARG - 00 form.

Tax Rate/Area

Enter a code that identifies a tax or geographic area that has common tax rates and tax authorities. The system validates the code you enter against the F4008 table. The system uses the tax rate/area with the tax explanation code and tax rules to calculate tax and GL distribution amounts when you create an invoice or voucher.

Effective Date and Expiration Date

Enter the date when a transaction, contract, obligation, preference, or policy rule becomes effective, or ceases to be in effect.

Company

Enter the company for which you set up the association between a tax code and tax area.

Business Unit

Enter the business unit for which you set up the association between a tax code and tax area.

Tax Code

Enter a value that exists in the Tax Codes (76A/TC) UDC table to associate the code with the tax area.

5.6.6 Associating Invoice and Shipment Groups to Tax Rate and Areas

Access the Tax Groups - Invoice Shipment Note Letter - ARG -00 form.

Invoice Group

Enter a value that exists in the ARG - Item ARGP-Allowed Values (76/B1) UDC table to specify the invoice group to associate with the tax area.

Shipment Group

Enter a value that exists in the ARG - Item ARBR Allowed Values (76/B8) UDC table to specify the shipment group to associate with the tax area.

5.6.7 Example: Tax Configuration

This example displays a tax area that has two different tax codes, one with minimums and a predecessor; the relation between the tax area and the tax codes; and the assignment of the letter to the tax area.

The tax area is set up in the Tax Areas program (P4008) as:

Tax Rate/Area Description Tax Authority Address GL Offset Tax Rate
IVA26A Prueba 26 percent A 99999999 CTR <blank>

These tax codes are set up in UDC 76A/TC:

Code Description 01 Special Handling Hard Coded
IVA IVA 21 percent <blank> N
PER IVA perception <blank> N

Two tax codes are set up in the Tax Definitions program (P76A10) as:

Field to Complete Value 1 Value 2
Tax Code IVA PER
GL Offset IV21 PERC
Customer Type 1 1
Customer Category Code Number 0 0
Item Category Code Number 0 0
Sales Invoice Bucket 1 2
Sales Report Group Column 1 3
Dependence Credit Note/Invoice N N
Y/N Discriminate Amount B Invoice N N
Order Tax Processing C C
Expiration Date 31/12/05 31/12/05
Tax Calculation Date I I
Tax Category 1 2

The tax values are set up for the IVA tax code as:

Address Number Short Item No Effective Date Expiration Date Tax Rate Meas Unit Tax Amount UM
. . 1/1/01 31/12/05 21,000 . .
. 721351 28/11/00 28/11/01 25,000 . .
. 721369 28/11/00 28/11/01 26,000 . .
1000 . 26/1/01 26/1/01 21,000 . .
34016 . 28/11/00 28/11/01 23,000 . .
34294 . 6/12/00 6/12/01 27,000 . .
34323 . 6/12/00 6/12/01 22,500 . .

The tax values are set up for the PER tax code as:

Address Number Short Item No Effective Date Expiration Date Tax Rate Meas Unit Tax Amount UM
. . 1/1/90 31/12/04 5,000 . .

The tax predecessor for the PER tax code is set up as:

Predecessor Tax Code Description
IVA IVA 21 percent

These tax minimums are set up for the PER tax code:

Effective Date Expiration Date Min Inv Tot Amo
1/1/01 8/1/01 100,00
9/1/01 1/2/01 10,00

The following tax codes are listed in the Tax Groups - ARG - 00 form for the IVA26 tax group:

Tax Code Description
IVA IVA 21 percent
PER IVA perception

The tax codes are related to the tax area in the Tax Groups program as:

Field to Complete Value
Tax Rate/Area IVA26A
Company <blank>
Business Unit <blank>
Effective Date 1/1/00
Expiration Date 31/12/05

These letters are associated with the IVA26A tax area in the Tax Groups program:

Group IVA26A Tax Area
Invoice Group A
Shipment Group X

5.7 Setting Up Exclusion Percentages

This section provides an overview of exclusion percentages and discusses how to set up companies to calculate exclusion percentages.

5.7.1 Understanding of Exclusion Percentages

AFIP requires that you print the exclusion percentages for perceptions and the date of the Official Bulletin in which they were published. You use the Tax Liberation (P76A8050) program to set up the exclusion percentage and the date of the official bulletin publication. The system saves this data in the Perceptions Exempt Percentages (F76A8050) table. If the exclusion percentage set up for a company does not exist in the F76A8050 table, the system uses the set up for company 00000. You then use the Localization Constants (P76A8051) program to specify whether the system runs the calculations. The system stores this data in the Perceptions Exempt per Company (F76A8051) table.

5.7.1.1 Example: Tax Code with No Exclusion Percentages

Examples:

  • Perception: 5 percent

  • Exclusion: 17.5 percent

  • Calculations:

  • 100 percent-17,5 percent=82,5 percent

  • 82,5 percent*5 percent=4.125 percent tax to be calculated

5.7.2 Forms Used to Set Up Exclusion Percentages

Form Name Form ID Navigation Usage
Work with Exclusion Percentages W76A8050A Tax Set up (G76A00B), Tax Liberation Review and select exclusion percentage records by address book number.
Exclusion Percentages W76A8050B Click Add on the Work with Exclusion Percentages form. Add and revise exclusion percentages and dates by customer.
Tax Calculation Mode W76A8051B Tax Set up (G76A00B), Localization Constants Review and select the company record for the tax calculation mode.
AR/SOP Tax Calculate W76A8051C Click Add on the Tax Calculation Mode form. Specify whether to calculate the exclusion.

5.7.3 Entering Exclusion Percentages for Customers

Access the Exclusion Percentages form.

Address Number

Enter the company for which you set up the exclusion percentage.

Tax Code

Enter a value that exists in the Tax Code (76A/TC) UDC table to specify the tax code for which you set up the exclusion percentage.

Exclusion Percentage

Enter the exclusion percentage.

Resolution Date

Enter the effective date of the resolution.

5.7.4 Setting Up Companies to Calculate Exclusion Percentages

Access the Localization Constants - AR/SOP Tax Calculate form.

Tax Calculate Exclusion Percentage

Enter Y (yes) to calculate the percentage, or N (no) to suppress the calculation.