Analysis and Solutions to Systematic Errors Which Resulted in Incorrect Book Balance of Withholding Taxes from Invoices Issued to Customers

Abstract

Objective: To bring up the accounting and systemic (ERP) aspects of withholding taxes on invoices for services rendered; to clarify the moment when these tax credits can be used for tax offset purposes; and to externalize the problems regarding systemic errors, which have led to distortions in the accounting balances.

Diagnosis: A systemic error was identified regarding the receipt of "accounts receivable" from more than one NF issued to the same customer; the ERP did not transfer the balances of withheld taxes from the "deferred taxes" accounts to the "taxes to be offset" accounts in cases where customers made payments with a difference of one decimal place; and the ERP did not transfer the balances of withheld taxes from the "deferred taxes" accounts to the "taxes to offset" accounts, in the processes of receiving invoices issued to clients who, based on a contract signed between the parties, made the payment applying a withholding of an amount pre-determined in the contract, under the heading of guarantee.

Methodology: The article was based on the case study method, an exploratory and descriptive research.

Results: the results found were the correction of the accumulated balances of the withholding tax accounts, and the possibility of making corrections in the PIS, Cofins, IRPJ and CSLL assessments, to consider the correct withholding tax balances.

Contribution: bring to light the fact that tax accounting and ERP systemic processes need to be subject to continuous improvement so that organizations can have reliability in their tax business.