Setting Up Vouchers with Invoice Type M

Invoice type M is used for the emission of documents with tax discrimination. General Resolution 1575 defines these withholding requirements for vouchers with invoice type M:

• The withholding is calculated when the taxable amount of the transaction is equal or greater than 1000 USD.

  In this case, the transaction is excluded from other withholding or perception requirements that might be applied (except Guía Fiscal Ganadera, Harinera, or both).

• If the taxable amount of the transaction is less than 1000 USD and the payer is a withholding agent in any other regime that makes withholdings for less than 1000 USD, the withholding must occur.

The withholding amounts are calculated as follows:

• VAT

  The net transaction amount multiplied by 100 percent of the corresponding tax rate. This amount is calculated for each payable voucher.

• Profit

  The net transaction amount multiplied by three percent. This calculation does not consider the accumulated profit for the month. This calculation must be done for each payment.

To perform these calculations:

• Create a document type in UDC 00/DT and UDC 00/DV to identify type M vouchers.

• Create a tax area exclusively for type M vouchers.

  Specify invoice group M for this tax area on the Additional Tax Information form.

• Add these legal withholding regimes, which are reported in the SICORE report and in the withholding certificate:

  UDC	Code	Description
  76/L3	99	Invoice M - Profit - Emission of documents with tax discrimination.
  76/L1	499	Invoice M - VAT - Emission of documents with tax discrimination.

Add these legal withholding concepts, which are used during voucher entry:

UDC	Code	Description
76/04	GAM	Invoice M - Profit - Emission of documents with tax discrimination. The code is just an example.
76/02	IVM	Invoice M - VAT - Emission of documents with tax discrimination. The code is just an example.

Note: These concepts must be different from those already defined in the system. The existing concepts cannot be reused because they have different withholding calculations.

For VAT withholdings, set up a withholding percentage in the VAT WH - Percentages program (P760402A).

See Setting Up VAT Withholding for Argentina.

For profit withholdings, set up a withholding percentage in the Profit W/H - Percentages program (P760403A)

Note: You must specify 1 in the Misc Code field to indicate to the system that it does not have to consider the accumulated amounts from the month in the profit withholding calculation for the payment group.

See Setting Up Profit Withholding for Argentina.

When you enter a voucher into the system, assign the withholding concepts corresponding to the operation on the Withholdings tab of the Voucher Additional Information - Revision form, as shown in this example:

Field	Code	Description
VAT Withholding Concept	IVM	Invoice M - VAT
G.I. Agreement Code	02	Multilateral Agreement
G.I. Concept Source	BIE	Goods
G.I. State Source	04	Neuquen
G.I. Concept Destination	FLT	Shipment
G.I. State Destination	02	Mendoza
Profit Withholding Condition	INS	Registered
Profit Withholding Concept	GAM	Invoice M - Profit
Contract Concept	500	More than 500 square meters
S.U.S.S. Concept	LIM	Cleaning Services

Note: When a transaction with invoice type M is less than 1000 USD, specify the appropriate profit withholding concept (regardless of the general withholding method). If the transaction is greater than 1000 USD, specify the withholding concept of RG 1575.

See Working with Voucher Entry and Review for Argentina.

• If you are adhering to General Resolution 1575, you generate certificates before you update the payment group in the same way as if you were not adhering to this resolution.

• For General Resolution 1575, you report withholdings using the SICORE report.