Understanding the Process to Calculate ISS Withholding

You use a combination of standard and Brazil-specific steps in the process of calculating ISS withholding.

To calculate ISS withholding for a transaction for which you have a purchase order:

1. Enter the standard purchase order information.

2. Enter the Brazil-specific purchase order information.

   The system supplies default values for the Brazil-specific forms from the supplier's address book record and the programs that you used to set up ISS withholding information. The system saves the ISS withholding information to the Purchase Order ISS Tax Information table (F76B705).

3. Use the standard software program to receive the purchase order.

4. Use the standard software program to match the purchase order to a voucher.

5. Run the Tax Calculation ISS, INSS, FUNRURAL and IRPJ program (R76B4310) to calculate the ISS withholding.

   For each voucher line, the system retrieves the ISS withholding information from the F76B705 and other setup tables, validates the information, then calculates the ISS withholding. The system saves the calculations to these tables:

   Withholding by City and Service Detail (F76B415)

   Voucher Additional Information (F76B0411)

   Accounts Payable Ledger (F0411)

   Voucher Tax Processed File (F76B4012)

To calculate ISS withholding for a transaction for which you do not have a purchase order:

1. Use a standard voucher entry program to enter the voucher.

2. Run the Tax Calculation ISS, INSS, FUNRURAL and IRPJ program to calculate the ISS withholding.

   For each voucher line, the system retrieves information for ISS withholding from the supplier's address book record and the Supplemental Data table (F00092), then validates the tax information and calculates the ISS withholding.

You can override the values that the system retrieves from the supplier's address book record and the F00092 table by setting processing options in the Tax Calculation ISS, INSS, FUNRURAL and IRPJ program.

For each voucher line for which ISS withholding applies, the Tax Calculation ISS, INSS, FUNRURAL and IRPJ program:

1. Retrieves ISS withholding information.

2. Validates ISS withholding information.

3. Calculates ISS withholding.

See also:

• Understanding the Tax Calculation ISS, INSS, FUNRURAL and IRPJ Program.