FI/MM Tax Code

Definition

See tax code.

Use

The system uses FI/MM tax codes to automatically calculate taxes in Materials Management (MM).

Structure

In contrast to standard FI tax codes, these tax codes contain additional information that is required for tax calculation according to Brazilian legal requirements:

  • Material usage (industrialization/production or consumption)

    The usage determines how the system calculates tax amounts in Purchasing (MM-PUR).

  • Service

    You must set the Service indicator if the system is to calculate the service tax ISS or INSS.

  • ICMS and IPI texts

    The ICMS and IPI tax laws are stored in the tax code, which specify legal nota fiscal texts and the respective tax situation used for legal reporting.

  • Exemptions

    If the respective tax code does not trigger an ICMS or IPI calculation and the ICMS-exempt or IPI-exempt indicator is set, the system stores the respective base value (ICMS or IPI) as the Excluded/Exempt base instead of the Other base in the nota fiscal database (required for legal reporting). If, however, a calculation does take place, the system ignores this exemption indicator in the tax code.

When you create a company code using the template for Brazil , the system sets up the following sample tax codes:

Input Tax

Tax code

Description

C0

Consumption: No tax

C1

Consumption: ICMS + ICMS comp. only

C2

Consumption: ICMS + ICMS comp. + ST

C3

Consumption: ICMS + ICMS comp. + IPI

C4

Consumption: ICMS + ICMS comp. + ST + IPI

C5

Consumption: IPI only

CF

Consumption: ICMS (ST on freight)

I0

Industrialization: No tax

I1

Industrialization: ICMS only

I2

Industrialization: ICMS + ST

I3

Industrialization: ICMS + IPI

I4

Industrialization: ICMS + ST + IPI

I5

Industrialization: IPI only

I6

Industrialization: ICMS + IPI: resale

I7

Industrialization: ICMS + ST + IPI: resale

IE

Tax-exempt transactions

IF

Industrialization: ICMS (ST on freight)

IN

INSS 15%

IS

ISS 2004

K0

Future delivery purchasing G/R

K1

Future delivery purchasing I/R

K2

Future delivery G/R - Indust. all taxes

K3

Future delivery I/R - Indust. all taxes

K5

Consignment - Shipment G/R

K6

Consignment - Invoice I/R

K8

Future delivery I/R - Indust. all taxes

K9

Future delivery - Resale purchasing I/R

Output Tax

Tax code

Description

A0

Industrialization: No tax

A1

Industrialization: ICMS only

A3

Industrialization: ICMS + IPI

B0

Consumption: No tax

I9

ISS

S0

SD tax: No tax

SD

SD tax: ICMS/IPI/SubTrib

SE

Tax-exempt transactions

SI

SD tax: ISS

SZ

SD tax: ICMS Zona Franca

In Customizing for Financial Accounting , you can define additional tax codes with additional tax details for each tax procedure. To do so, choose Start of the navigation path Financial Accounting Global Settings Next navigation step Tax on Sales/Purchases Next navigation step Calculation Next navigation step Settings for Tax Calculation in Brazil Next navigation step Define FI/MM Tax Codes End of the navigation path .

See also:

Tax Codes