CFOP Code
Definition
A code defined by the Brazilian authorities that describes the type of business transaction. In Portuguese, it is called código fiscal de operações e prestações.
A CFOP code contains information on the good’s origin as well as the type of operation, such as sales, returns, stock transfers, or services.
Use
The CFOP code must be printed on most notas fiscais and is included in most forms of legal reporting. An exception would be some types of services where CFOP is not required.
Structure
As of January 1, 2003, the CFOP code consists of four digits, for instance, 1122. In addition, you can define extensions for each code, which the system uses to assign texts to it.
The first digit is based on the following criteria:
|
Direction of Goods Movement |
First Digit |
Destination Category |
|
Incoming |
1 |
Same state |
|
2 |
Different state |
|
|
3 |
Different country |
|
|
Outgoing |
5 |
Same state |
|
6 |
Different state |
|
|
7 |
Different country |
Integration
The system determines the CFOP code automatically in Sales and Distribution (SD) and Materials Management (MM), based on how you have defined your Customizing settings (see CFOP Codes).
See also: