Understanding the Setup for Calculating the Taxable Base

Use the Work with Taxable Base Include Setup application (P76TI001) to define the tax details to be considered while applying the formula for calculation of taxable base for a combination of a tax code and a Ship To address book number. To define the tax codes, you must have the tax code specified in the 76/TX UDC table. You also use this program to specify whether to include or to exclude the Federal tax (CBS), State tax (IBS), City tax (IBS), and Selective tax (IS) for calculating the taxable base for the specific tax code.

Note: To include PIS or COFINS in the taxable base for calculating ICMS, you can set the ICMS Taxable Base Include processing options of the Nota Fiscal Receipts Brazil program (P4312BR) for the purchase order cycle and the processing options of the NF generation (R76558B) program for the sales order cycle to include one or both of these in the taxable base.