1. Localizations for Brazil Implementation Guide
  2. Understanding PIS/PASEP and COFINS for Sales Order Transactions

Understanding PIS/PASEP and COFINS for Sales Order Transactions

When you run the Generate Nota Fiscal program, the system creates the outbound nota fiscal with the temporary nota fiscal number and calculates taxes. The system uses this logic to determine whether to calculate PIS/PASEP and COFINS tax credits:

  1. The system compares the Purchase Use Code for each line item on the nota fiscal to the Purchase Use Codes in the Purchase Use Tax Setup - Brazil table (F76B003).

  2. If the system finds a match between the purchase use codes, the system reads the record in the F76B003 table to determine if a tax code for PIS/PASEP tax credits (data item BTPIS) or COFINS tax credits (data item BTCOF) is associated with the purchase use code.

    If a tax credit code is associated with a purchase use code in the F76B003 table, the system calculates PIS/PASEP or COFINS taxes if the Apply field for the tax specifies that the tax is to be applied. If a tax credit code is associated with the purchase use code in the F76B003 table and the Apply field for the tax does not specify that the tax is to be applied, the system does not calculate the tax for the line.

  3. If the system does not find a match between the purchase use code for a line item and the purchase use codes in the F76B003 table, the system retrieves the tax information for PIS/PASEP and COFINS tax credits (data item BRTAX1 through BRTAX8) from the supplier's address book entry from the Address Book Brazilian Tag File table (F76011) and calculates the tax, based on the code in the address book entry.

    If the supplier's address book entry does not contain a tax valid tax code for PIS/PASEP or COFINS tax credits, the system does not calculate these withholding taxes for the line.

Note:

  1. Tax codes for PIS/PASEP and COFINS tax credits are valid only if the Retention/Aggregation/Credit field in the Tax Code table (F76B0401) (data item BRRTA) contains a C. The Generate Nota Fiscal program ignores PIS/PASEP and COFINS tax codes that do not contain a C in the Retention/Aggregation/Credit field.

  2. (Release 9.2 Update) JD Edwards EnterpriseOne Sales Order Management system allows the customer to include or exclude the ICMS tax value from the base amount for calculating PIS and COFINS tax value, for nota fiscal documents produced in the country.

  3. (Release 9.2 Update) Enter the required value in the processing option ICMS Tax in PIS/COFIN Basis for Generate Nota Fiscal (R76558B) to proceed with calculating the PIS/COFINS taxes. See Setting Processing Options for Generate Nota Fiscal (R76558B)

When it calculates PIS/PASEP and COFINS taxes, the system follows these steps for notas fiscais in the JD Edwards EnterpriseOne Sales Order Management system:

  • Calculates the tax by using this formula: [(Nota Fiscal Line Extended Amount + Freight + Insurance + Expenses - Discount Amount) - ICMS Tax] * Rate of PIS/PASEP or COFINS Tax.

  • Writes records to the Nota Fiscal Taxes Header - Brazil table (F76B001) and the Nota Fiscal Taxes Detail - Brazil table (F76B011), and marks the records as unprocessed.