1. Localizations for Argentina Implementation Guide
  2. Understanding Validations and Calculations for VAT and Profit Withholding for Small Contributors

Understanding Validations and Calculations for VAT and Profit Withholding for Small Contributors

To perform validations and calculate VAT and profit withholding for automatic or manual payments, the system:

Steps

Description

1. Checks the supplier condition.

The system verifies whether the supplier is set up as a small contributor, and if a small contributor, whether a record for the small contributor exists in the F76A405 table. A record will exist in the F76A405 table if withholding was previously calculated for the supplier because the 12-month amount limit was exceeded, or because you manually added the supplier to the table because you could not verify the small contributor status with the AFIP.

If the supplier is set up as a small contributor and a record exists in the F76A405 table, the system skips the rest of the validations and applies withholding to the current payment when you process automatic payments or manual payments (if you activated the validations in the corresponding processing options). The system also skips the rest of the validations and applies withholding if the supplier is not set up as a small contributor.

If the supplier is set up as a small contributor and no record for the supplier exists in the F76A405 table, the system continues with Step 2.

2. Gets the small contributor limits from the F76A050 table.

The system uses the small contributor classification code that you assigned to the supplier to get the invoice limits from the F76A050 table.

Note: The effective date of the limit must be prior to the oldest voucher to process. If the voucher date is before the effective date, the system assumes that no limit exists

3. Performs small contributor validations.

The system compares the current transaction to the limits for the 12-month period. If the current transaction does not cause the small contributor to exceed the limits, the system does not perform additional validations and does not apply VAT and profit withholding to the transaction.

If the current transaction causes the small contributor to exceed the limits, the system updates records as described in Step 4.

To determine if a small contributor exceeds the 12-month limit, the system accumulates the gross amounts in the Accounts Payable Ledger table (F0411), discards records for which the tax rate area or document type is set up in the 76A/XD or 76A/XT UDC to be excluded, and then uses these factors to process the records:

  • The address book number of the supplier.

  • The vouchers' invoice date.

  • The company according to the value in the processing options for P76A570 or P76A0461.

4. Updates supplier information in the F76A405 table for small contributors who exceed the limits.

If the validations performed in Step 3 determine that the supplier exceeded the 12-month amount, the system adds a record for the supplier to the F76A405 table.

After the system creates a record for a supplier in the F76A405 table, the system always calculates VAT and profit withholding for the supplier for subsequent transactions when you use the automatic payment process.

For manual payments, you must manually enter the VAT and profit withholding information. If you do not enter the appropriate information, the system issues a warning message and does not allow you to save the record.