Purchase Use (76/PU)

You set up purchase use codes for these supplier withholding taxes and contributions:

• INSS

• PIS/PASEP

• COFINS

• CSLL

You set up purchase use codes for INSS contributions in the Purchase Use (76/PU) UDC table to specify whether individuals and cooperatives are subject to INSS aggregation and retention contributions. You might set up different codes for different circumstances under which an individual or cooperative is subject to INSS aggregation and retention contributions. For example, set up different purchase use codes when the INSS contribution rate for one group of individuals differs from another group.

The system uses the values that you specify in the Description 02 field to determine the INSS contribution rate for aggregation and retention. The values that you enter for the Description 02 field must exist in the Tax Code table (F76B0401). You can enter a value for retention, for aggregation, or for both. You must enter a / (slash) after a value for retention and before a value for aggregation, even when you enter only one code.

This table includes examples of values for the Description 02 field:

Tax codes for retention and aggregation	Description 02
Retention = INSR	INSR/
Aggregation = INSA	/INSA
Retention = INSR Aggregation = INSA	INSR/INSA

When you run the Tax Calculation ISS, INSS, FUNRURAL, and IRPJ program (R76B4310), the system uses the purchase use code that you enter in the Purchase Use Code processing option to determine how to apply INSS contribution rates. The system compares the purchase use code to the values in the F76B0401 table to obtain the contribution rate. If the purchase use code has two values in the Description 02 field, the system accesses the F760401 table twice:

• Once to obtain the rate for aggregation.

• Once to obtain the rate for retention.

If you do not complete the Purchase Use processing option, the system uses the purchase use code from the Purchase Order Detail Tag File - Brazil table (F76432) or the tax code for the supplier in the Address Book Brazilian Tag Table (F76011).

You also set up purchase use codes for PIS/PASEP, COFINS, and CSLL contributions in the 76/PU UDC table, and then use the Purchase Use Tax Setup program (P76B003) to create associations between the purchase use codes for PIS/PASEP, COFINS, and CSLL and the tax codes that exist in the F76B0401 table.

See Setting Up Purchase Use Codes for PIS/PASEP, COFINS, and CSLL Contributions.

See Setting Up UDCs for Procurement Processing for Brazil.

You also set up purchase use codes for ICMS and IPI taxes. Use the special handling code to specify this tax information:

For ICMS tax:

• 0: ICMS tax is nonrecoverable.

• 1: ICMS tax is 100 percent recoverable.

For IPI tax:

• 0: IPI tax is nonrecoverable.

• 1: IPI tax is 50 or 100 percent recoverable, depending on the status of the ship-to and ship-from taxpayer.