Understanding the Automatic Payment Process for Brazil (Release 9.2 Update)
The system processes records differently for Brazilian transactions than for standard transactions. For standard transactions, you use the Calculate Withholding program (R04580) to calculate supplier withholding. In Brazil, you use a Brazil-specific calculation program (Tax Calculation ISS, INSS, FUNRURAL and IRPJ [R76B4310]) to calculate some types of supplier withholding after you enter vouchers, but before you process payments. Other supplier withholdings are calculated during the automatic payment process when the Create Payment Control Groups program (R04570) runs a Brazil-specific function to calculate IR, PIS, COFINS AND CSLL withholdings.
When you run the Create Payment Control Groups program, the system:
Disregards lines for ISS, INSS and FUNRURAL withholding.
Calculates IR, PIS/PASEP, COFINS, and CSLL withholdings for each voucher line of the payment.
The system determines whether the company and transaction type is set up in the PIS-COFINS-CSLL Minimum Withholding Setup program (P76B410) to use Withholding Method 1 or Withholding Method 2 for PIS, COFINS, and CSLL withholding. If a transaction type is not set up in the PIS-COFINS-CSLL Minimum Withholding Setup program, then the system uses Withholding Method 2 for the payment. You use the PIS-COFINS-CSLL Minimum Withholding Setup program (P76B410) to set up values for the sale of services only.
See Specifying the PIS, COFINS, and CSLL Minimum Withholding Method (Release 9.2 Update).
If Withholding Method 1 is used for the nota fiscal for the payment, the system calculates the sum of the PIS, COFINS, and CSLL withholdings and compares it to the minimum amount specified in the PIS-COFINS-CSLL Minimum Withholding Setup program to determine whether to write lines for the withholding for the payment.
If Withholding Method 2 is used, or the transaction type for the sale of services is not set up in the PIS-COFINS-CSLL Minimum Withholding Setup program, the system searches for accumulated amounts in the Tax Accumulates by AN8, Company table (F76B4017) before performing the tax calculations.
For vouchers in a foreign currency, the system converts the foreign amounts to amounts in the domestic currency using the value in the Payment Currency processing option to determine whether to use the system exchange rate or the exchange rate on the voucher before performing the calculations.
Saves the tax calculation information to the Payment Processing - Detail (F04573) and F04573 Brazilian Temp WH File (F76B473T) tables.
For vouchers in a foreign currency, the system converts the withholding amount from the domestic currency amount to the foreign currency amount before saving the values in the tables.
Updates the A/P Payment Processing - Summary table (F04572) with the payment amount, less the taxes calculated.
When using Withholding Method 2, you specify minimum amounts for PIS/PASEP, COFINS, and CSLL withholdings in processing options in the Brazilian Payment Process - PO program. If the accumulated gross amount in a month is less than the minimum amount that is entered in the processing options, the system writes the tax amount and the gross amount for the voucher line in the PIS, COFINS and CSLL Below Min. table (F76B411A) for control purposes and does not write lines for the withholding amounts.
If IR withholding is for an individual, then the system calculates the payment total IR withholding. If this amount is less or equal than the IR Withholding individual person minimum specified in the processing options, then the system deletes the records in the F76B473T and F04573 tables for IR withholding. The system always accumulates the base amount whether or not it arrives to be greater than the specified minimum.
If IR Withholding is for a corporate entity, then the system calculates the voucher total IR withholding. If this amount is less or equal than the IR Withholding corporate person minimum specified in the processing options, then the system deletes the records in the F76B473T and F04573 tables for IR withholding.
For both corporate and individual person IR, the system updates the payment amount in the A/P Payment Processing - Header (F04571) and F04572 tables if it deletes the F76B473T and F04573 records for IR withholding.
When you run the Update process for payments, compares the exchange rate written to the F04573 Brazilian Temp WH File table (F76B473T) to the exchange rate indicated by the value in the Exchange Rate processing option in the P04571 program, if you set a processing option to cause the system to compare the exchange rates.
You set a processing option in the Brazilian Payment Process - PO program (P76B470) to specify whether the system compares the exchange rates. If you set the processing option to validate the exchange rates and the rates are different, the system uses the exchange rate that was in effect when you created the payment group.
If you do not set the processing option to validate the exchange rates and the rates are different, the system calculates the payment at the exchange rate indicated in the processing options for the Work With Payment Groups program when you run the Update process and creates a record in the Accounts Payable Matching Document Detail table (F0414) for the difference in the payment amount that is calculated at the create and the update steps.
See Updating Payments.
After you write and update the payment, the system copies the records from the temporary tables to the Accounts Payable Matching Document (F0413) and Accounts Payable Matching Document Detail (F0414) tables. The system also updates the F76B4017, F76B0411, and F0411 tables.
For PIX-enabled payments, each payment is associated with a unique PIX key and any one of the vouchers in the Payment Group must be updated with this PIX key detail. Suppliers must be set up with a separate Payment Instrument for PIX. For example: +, and include this payment instrument in the data selection of the Create Payment Control Groups (R04570) report to process PIX payments separately.
Note: The Dynamic formatting attributes for PIX key fields must be set up in the UDC 76B/F1. Dynamic Formatter Layout Set up should be set for the Outbound detail record.
The system processes payments in a foreign currency in the same manner as it processes payments in domestic currency, except that the system converts the foreign currency to domestic currency before performing calculations. The system saves the withholding amounts in the domestic currency in the Brazil-specific tables, and converts the calculated withholding amounts back to the foreign currency to save the amounts in the F0411 and F0911 tables.