SD Tax Code (SAP Library

SD Tax Code

Definition

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 Billing ® Billing Documents ® Country-Specific Features ® Country-Specific Features for Brazil ® Maintain Sales Document Item Category.

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