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 Financial Accounting Global Settings ® Tax on Sales/Purchases ® Calculation ® Settings for Tax Calculation in Brazil ® Define FI/MM Tax Codes.

See also:

Tax Codes