Imposto Sobre Produtos Industrializados (IPI) 
Introduction to IPI
IPI is a federal tax applied when selling, transferring, etc. goods.
The percentage rate and the base value of IPI depends on several factors:
- Usage of the goods:
Usage determines how the amounts are posted in purchasing. If a material is used for production, the tax amounts are posted to separate line items. If a material is used for consumption, the taxes are seen as non-deductible. The IPI amount is added to the value of the material and can not be recovered. If a material is used for reselling, the IPI tax value is not deductible but added to the inventory value.
- NBM code:
IPI is applied per product and calculated from the goods value including ICMS. The rate depends on a product classification called NBM code. For some products, IPI is calculated on a reduced base.
- Material:
NBM dependent codes can be overwritten by specific material dependent codes as exceptions.
- Customer:
Companies can be exempted from IPI. This is only relevant for SD.
- Vendor:
If the vendor is not an industry equivalent company, half of the IPI amount is deducted from the inventory value and the other half of the IPI amount is posted to deductible IPI. This is only relevant for MM.
Rate Determination in MM
IPI rates are derived from the following parameters and tables:
- FI tax code:
The FI tax code carries the information to determine whether IPI must be calculated.
- Vendor master:
The indicator Not ind. equivalent controls how IPI is posted for vendors which are not industry equivalent companies.
- IPI rate tables per NBM code and per material:
When calculating the tax, the system tries to first find a material dependent rate. If no material dependent rate exists, the calculation uses the NBM-code dependent rate. In both cases, IPI rates are defined date-dependent. You can define the fields tax rate, tax base, indicator for Other Base, and tax law per material and per NBM code. To maintain IPI rates per material and per NBM code, choose the Customizing paths for
IPI Rates.
If no rate can be found in the table IPI rates, the IPI tax rate is taken from Default rates.
Rate Determination in SD
IPI rates are derived from the following parameters and tables:
- SD tax codes:
The SD pricing procedure uses the indicator Calculate IPI of the SD tax code to determine whether IPI must be calculated. SD tax codes are specified in the sales order on line level.
- Customer master:
A customer can be exempted from IPI. Use the indicator IPI exempt for customers who are not obligated to pay IPI.
- IPI rate tables per NBM code and per material:
When calculating the tax, the system tries to first find a material dependent rate. If no material dependent rate exists, the calculation uses the NBM-code dependent rate. In both cases, IPI rates are defined date-dependent. You can define the fields tax rate, tax base, indicator for Other Base, and tax law per material and per NBM code. To maintain IPI rates per material and per NBM code, choose the Customizing paths for
IPI Rates.
If no rate can be found in the table IPI rates, the IPI tax rate is taken from Default rates.
IPI Pauta
R/3 also supports a special variant of IPI tax, which is the volume-dependent tax IPI Pauta. Customizing tables are the same as for the regular IPI.
IPI Tax Law
The IPI tax law is used for generating automatic Nota Fiscal texts and for legal reporting. R/3 can automatically determine the IPI tax law in MM and SD.
You can maintain IPI tax laws by choosing the Customizing paths for
IPI Rates.Determination Rules in MM:
The IPI tax law is determined from the tax code enhancement (see
Tax Code Enhancements). It can be overwritten by an entry in at least one of the tables IPI rates (general)
or
IPI rates (exceptions).Determination Rules in SD:
The access sequence for tax laws is:
- Sales item category only if tax code is entered
- Customer master
- Material (IPI general / IPI exceptions / ICMS exceptions)
- Sales item category again without checking tax code
A manual entry in the sales order is also possible.