3796437 - Brazil Withholding Taxes - Employer INSS (INSS Patronal) incorrectly deducted from vendor payment in MIRO

When posting or simulating a service invoice in transaction MIRO, the Employer INSS (INSS Patronal) withholding tax amount is deducted from the vendor payment (accounts payable open item), reducing the net amount paid to the service provider.

The expected behavior is that INSS Patronal — the employer's own social security contribution paid by the company directly to the government — posts as an independent liability/expense entry and does not reduce the vendor payment. Only INSS Retenção (contractor retention, typically 11%) and IRRF should reduce the vendor open item.

The incorrect accounting result observed at simulation or posting:

G/L Account	Description	Posting
Vendor AP	Net payable to vendor	Reduced by INSS Patronal (incorrect)
INSS Patronal liability	Employer INSS	Posted as expected

The expected accounting result:

G/L Account	Description	Posting
Vendor AP	Net payable to vendor	Not reduced by INSS Patronal
INSS Patronal liability	Employer INSS (company cost)	Credit
INSS Patronal expense	Employer INSS (company cost)	Debit

Read more...

• Localization for Brazil Withholding Taxes
• SAP ERP
• SAP ERP Central Component
• SAP enhancement package for SAP ERP
• SAP enhancement package for SAP ERP, version for SAP HANA
• SAP S/4HANA
• SAP S/4HANA Finance
• SAP S/4HANA Cloud Private Edition
• SAP Fiori for SAP S/4HANA
• SAP Fiori for SAP S/4HANA Finance
• SAP Fiori for SAP S/4HANA Cloud Private Edition

SAP ERP Central Component all versions ; SAP ERP all versions ; SAP Fiori for SAP S/4HANA Cloud Private Edition all versions ; SAP Fiori for SAP S/4HANA Finance all versions ; SAP Fiori for SAP S/4HANA all versions ; SAP S/4HANA Cloud Private Edition 2023 ; SAP S/4HANA Finance all versions ; SAP S/4HANA all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions

INSS Patronal, Employer INSS, INSS empregador, INSS 20%, MIRO, logistics invoice verification, withholding tax, extended withholding tax, WHT type, posting indicator, vendor payment reduction, net payment, FI-LOC-FI-BR-WHT, T059Z, SPRO, Brazil, service invoice, nota fiscal, MP 1.171/2023, Simplified Discount, Desconto Simplificado, CL_FIWTBR_SIMPLIFIED_DISC, Official WHT Key, QSCOD , KBA , FI-LOC-FI-BR-WHT , Withholding Taxes for Brazil , Problem