Validations

Before the system calculates withholding amounts, it must validate whether certain conditions are met. This table describes the conditions validated:

Validated Condition	Description
The sales order is for a service and includes withholding information.	The system compares the transaction nature code of the lines on the sales order to the values in UDC 76B/TT. If the transaction nature code does not exist in UDC 76B/TT, then the system processes the sales order as a service sales order. The system accesses the Sales Order Withholding Concept Tag File (F76B423) to determine if withholding information exists for the sales order. If no withholding information exists, the system does not process withholding for the sales order. If withholding information for the sales order exists in the F76B423 table, the system retrieves the withholding concepts from the table and uses the concepts to retrieve the withholding percentage from the tax percentages that you set up for the company in the Review A/P Tax Code program (P76B0401) and the Taxes Setup by City & Service program (P76B409).
(Release 9.2 Update) (Withholding Method 1) The minimum amounts for PIS, COFINS, and CSLL withholding are met.	If the service sold is subject to withholding for PIS, COFINS, or CSLL, the system: Calculates the withholding amounts for PIS, COFINS, and CSLL for the payment or invoice (depending on the set up in the Withholding Taxes on Services - Calculation Method program) when you run the Generate Nota Fiscal program (R76558B). If the total of the PIS, COFINS, and CSLL amounts meet or exceed the minimum withholding amount in the PIS-COFINS-CSLL Minimum Withholding Setup program (P76B410), then the system writes the amounts to the Sales Order Detail File (F4211). Writes the PIS, COFINS, and CSLL amounts to the nota fiscal when you run the Print Nota Fiscal program (P7611B).
(Withholding Method 2) The minimum amounts for PIS, COFINS, and CSLL withholding are met.	If the service sold is subject to withholding for PIS, COFINS, or CSLL, the system: Retrieves the minimum amounts from the Minimum Amounts to Withhold table (F76B422). Retrieves the accumulated amounts for services sold to the customer for the month from the Service Nota Fiscal Accumulated Withholding table (F76B424). If the total of the accumulated amount for the month and the total from the new transactions is not greater than the minimum amount stored in the F76B422 table, then the system does not calculate the withholding amounts. If the total of the accumulated amount and the new transaction amount is greater than the minimum amount, then the system calculates the withholding. Whether or not the total exceeds the minimum amount, the system saves the new accumulated amount to the F76B424 table. See Understanding the Minimum Monthly Basis Amount for PIS, COFINS, and CSLL Withholding (Withholding Method 2)
What percentage of the ISS withholding amount is exempt, as set up in the Services ISS Exempt program (P76B106).	The system retrieves the ISS rate, city, service, and current date, and then calculates the ISS withholding amount. The system then applies the exempt percentage to the calculated amount to determine the actual ISS withholding amount.