The system comes complete with two tax calculation procedures for Brazil, one of which must be assigned to your country:
We recommend that you use procedure TAXBRA, as it enables you to flexibly adapt the tax calculation logic to cover new legal requirements or special customer needs.
This procedure is used for calculating Brazilian taxes based on the standard condition technique. Tax rates, tax laws, and special indicators that influence whether tax line items are included in the nota fiscal are all stored in the system as condition records. By means of mapping tables and tax code configuration, you can customize which values are written to which fields of the nota fiscal, and which tax lines are generated.
If you employ condition-based tax calculation, you need to activate it and carry out all related Customizing activities, all of which are found in Customizing of taxes for Brazil, under Basic Settings.
If you want to switch to the procedure TAXBRA (and you formerly used TAXBRJ), a migration function is available in the Tax Manager's Workplace, which you can use to carry out the initial conversion of entries in the Brazilian tax tables to condition records. Afterwards, the system automatically generates condition records for all new or changed entries in these tables.
Another function is available that allows you to evaluate condition tables and find condition records with missing tax table (J_1B*) entries; see Checking Data Consistency.
For detailed information on configuring condition-based tax calculation for Brazil, log on to the SAP Service Marketplace, enter the Quick Link globalization, and choose Country Information ® Country-Specific Documentation ® Brazil – Condition-Based Tax Calculation.
When the system processes this procedure, it calculates the taxes externally by calling function module J_1BCALCULATE_TAXES.
When you create a company code using the template for Brazil, the system sets the TAXBRJ procedure automatically. If you want to assign a different procedure, you do so in Customizing for FI, under Financial Accounting Global Settings ® Tax on Sales/Purchases ® Basic Settings ® Assign Country to Calculation Procedure.