SD Tax Code

Definition

See tax code .

Use

The system uses tax codes defined for Sales and Distribution (SD) to automatically calculate taxes when you post a sales order in SD. The SD tax codes contain additional tax-related information need for Brazilian tax calculation, such as the usage of the goods.

When you enter a sales order, you must specify an SD tax code. The system can determine a default tax code if:

  • Tax-related information is maintained in Customizing for SD, under Start of the navigation path Billing Next navigation step Billing Documents Next navigation step Country-Specific Features Next navigation step Country-Specific Features for Brazil Next navigation step Maintain Sales Document Item Category End of the navigation path .

  • Or, the tax code is entered in the customer material info record.

Structure

SD tax codes contain the information required for tax calculation according to Brazilian legal requirements. They specify:

  • Whether the material is used for industrialization (production) or consumption

  • Which tax is to be calculated for the tax code (ICMS, IPI, SubTrib, ISS, ICMS on freight, or SubTrib on freight)

  • If there are to be any exemptions for tax reporting (ICMS or IPI)

The system comes complete with all SD tax codes required by the delivered pricing procedures:

Tax code

Description

C0

Consumption: No taxes

C1

Consumption: ICMS tax

C2

Consumption: ICMS + SubTrib

C3

Consumption: ICMS + IPI

C4

Consumption: ICMS + IPI + SubTrib

C5

Consumption: IPI

I0

Industrialization: No taxes

I1

Industrialization: ICMS

I2

Industrialization: ICMS + SubTrib

I3

Industrialization: ICMS + IPI

I4

Industrialization: ICMS + IPI + SubTrib

I5

Industrialization: IPI

I9

Service: ISS

If you need to define additional SD tax codes, in Customizing for Financial Accounting , 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 SD Tax Codes End of the navigation path .