The specific customizing entries for withholding taxes are delivered in client 000. It is recommended to copy these entries from client 000 to each client where the calculation of withholding taxes is needed. In particular, you may adapt the account assignment corresponding to your respective chart of accounts.

Brazilian withholding taxes are always posted at the time when the invoice is created.

The activation of the extended withholding tax functionality for a company code is done as follows:

1. The 'Document entry screen variant' of the company code processing parameters set to '2'.
2. The extended withholding tax functionality is activated.
3. The withholding tax types have to be assigned to the respective company codes. A withholding tax type is processed only if it is assigned to a company code and the company code is 'withholding agent' for the withholding type.

In addition, the activation of extended withholding tax functionality for a vendor is done as follows:

• The withholding tax fields are open for input in the posting transactions in which withholding tax is calculated. This is achieved by checking/maintaining the field status on posting key level and the field status group(s) which are assigned to the reconciliation accounts for A/P. For further information, please see the R/3 documentation.
• The withholding tax types have to be assigned to the respective vendors. A certain withholding tax type is processed only if it is assigned to a vendor and the vendor is subjected to this withholding type.

In invoice verification, the following withholding tax data can be transferred to the Nota Fiscal:

• Transfer of the withholding tax amount for selected withholding tax types. The amount of these withholding tax types is summed up and deducted from the total value of the Nota Fiscal.
• Generation of variable header texts with the withholding tax amount for selected withholding tax types.