Understanding How to Associate Purchase Use Codes with Tax Codes

You use the Purchase Use Tax Setup - Brazil program (P76B003) to set up associations between purchase use codes and tax codes for PIS/PASEP and COFINS tax credits. When you run the Nota Fiscal Check & Close program (P76B900) or the Generate Nota Fiscal - Brazil program (R76558B), the system accesses the associations between the purchase use codes and tax codes to determine whether to calculate the taxes. If an association exists in the Purchase Use Tax Setup - Brazil table (F76B003) between a tax code and the purchase use code on a line item, the system calculates the tax as specified by the tax code. When you set up the associations, select the appropriate Apply option to instruct the system to calculate the tax.

Note: The Purchase Use Tax Setup Revisions form in the Purchase Use Tax Setup - Brazil program has a section for setting up tax credits and a section for setting up withholding. Use the fields in the Taxes Information section to associate purchase use codes with tax codes for tax credits.