Purpose
In Argentina, the tax authorities (Administración Federal deIngresos Públicos, AFIP) require companies to withhold value-addedtax (VAT) on payments to certain vendors. Each month the AFIP sends eachcompany required to withhold tax a file that contains information onrelevant vendors - including their payment status, which controls thepercentage of VAT that must be withheld for them. You use this report toupload the file, and update vendor master data and open items. You thenprint the output and submit it to the AFIP upon request, in accordancewith General Resolution 615/99 and complementary Resolution 1575/03.

Prerequisites
Before you run the report, you must define a new withholding tax code inCustomizing for 100% VAT withholding, and each month you must save theAFIP file on the application server that you run the report on.
Warnings

• Do not change any of the withholding tax codes assigned to the vendors
manually, as this will lead to errors.

• Fields LFB1-QSBGR (status of the vendor in AFIP file) and LFBW-WT_WITHCD
(withholding tax code) in the vendor master record are directly relatedin the report. Do not change them individually for any reason because itwill create inconsistencies in the master record and in the related openitem when you run the report.

Features
When you run the report, it reads the file and makes the followingchanges in the system viabatch input:
In each vendor master record, it enters:
The vendor's payment status, in the Exemption Number field(LFB1-QSZNR)
The transaction code (a technical code that serves as proof that thestatus has been changed correctly), in the Exempt.Authorityfield (LFB1-QSBGR)
The period for which the new rate of withholding tax applies - in theformat MM/YYYY, in the Account Memo field (LFB1-KVERM)
It changes the withholding tax code in any open items related to thevendor.
There are five payment statuses, which govern how much VAT you have towithhold as follows:
Payment status,,VAT withheld,,Explanation
1,,Normal rate - less than 100%,,Assigned to what the AFIP considersgood vendors.
2,,100%,, Vendor does not comply with AFIP regulations in providingfiscal documents, so AFIP considers it a bad vendor and 100% VAT mustbe withheld.
3,,0%,,VAT is not withheld because vendors are either exempt or notregistered for VAT with AFIP.
4,,100%,,Vendor does not comply with the recognized supply chainprocess, so AFIP considers it a bad vendor and 100% VAT must bewithheld.
5,,100%,,Vendor has issued type-M invoices with net amount over ARS100, so AFIP considers it a bad vendor and 100% VAT must be withheld.

Selection
On the report selection screen, enter data as required:


• The company code you want to run the report for


• The withholding tax type and code that you have defined for withholding
100% VAT

• The file name of the current AFIP file stored on the application server


• A minimum amount above which the system updates a document

You can simulate the results by running setting the appropriateindicator.

Output
The output list displays the following information per vendor:


• Company code


• CUIT number


• Old status (that was previously in the vendor master record)


• New status (that was updated from the AFIP file)


• Withholding tax code (from the AFIP file)


• Results (various types of information, for example, the reason why the
system was not able to process the batch input session)

• Type (the type of message resulting from the batch input process)


• Batch input message (detailed information from the batch input process)

You can expand the list for each vendor to view its open itemsthat were modified. The expanded list displays:

• Number of document


• Year of document


• Item number (modified vendor line)


• Withholding tax code (new tax code)


• Type (same as above)


• Batch input message (same as above)