SAP ERP ECC Local Versions Brazil

4/11/2024
Brazil
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Brazil
Use
This local version is designed for use by businesses with operations in Brazil. As well as the generic SAP system functions, it
comprises functions designed for laws and business practices particular to Brazil.
This documentation explains how the country-speci c functions work and what Customizing settings are needed to implement
these country-speci c functions. It does not cover the generic functions, which are described in the rest of the SAP Library.
Features
Country-Speci c Functions
Most of the country-speci c functions for Brazil relate to Financials, Logistics, and Human Resources. The main areas are as
follows:
Tax calculation
Automatic generation of notas scaís
Statutory reporting, including the modelos
Localized version of the Payroll (PY) component, Payroll Brazil (PY-BR)
Initial Settings
Use
This process describes how you customize the system for use in conjunction with Local Version Brazil.
Process
You need to perform the following steps in the order in which they appear:
1. Work through Customizing activities in the Implementation Guide (IMG). The following areas are relevant to Brazil:
Nota Fiscal
Taxes
Invoice Veri cation
Inventory Management
Sales and Distribution (SD)
Legal Books
Integration of SAP ERP with SAP TM: Customizing
The above links merely provide a list of all required Customizing activities, along with how to navigate to them. Detailed
descriptions of the integration into Brazilian business processes and compliance with legal requirements are provided in
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documentation of the application areas that follow. In addition, you should refer to the IMG documentation for
instructions and notes pertaining to the activities.
2. Upload tax rates for your tax codes.
3. Maintain the conditions for tax calculation in SD.
4. Make additional Customizing settings needed for processing returns, complementars, and corrections with batch.
Customizing Settings Made Using CATT

When you run the Country Installation Program, it automatically activates a number of CATT test cases. In case you are setting
up Brazil in an existing implementation, you also need to run the Brazil speci c CATT test cases.
Below you will nd the Customizing settings that are made during this process. These additional settings are required for local
version Brazil in the areas of Materials Management (MM) and Sales and Distribution (SD).
To start each test case, go to transaction SCAT, enter the test case name and start it with log type long, in error mode, and
without variants.
The MM test case is P40XXXX_CU_BR. It deletes and recon gures all the movement types in the SAP namespace beginning
with 8--. In case you are already using MM movement types in the 8—number namespace, copy them to a different namespace
before running the test case to avoid them being deleted.
 Note
You can runt MM test case for different languages, for instance, you can login in English and run the test case and later login
in Portuguese and run it again.
The SD test case is P99CUST_SD_BR. It makes Customizing settings - the exact entries shown in the tables below - for:
Billing document types
Sales document item categories
Document procedures
Sales document types
Incompletion procedures
Automatic nota scal header texts
If you want to delete these SD Customizing settings later on, you can use test case P99DECUST_SD_BR.
 Note
The SD test case can only be run in one language, that is, if you run a second one, the rst language is overwritten. In case
you need the descriptions in a second language, you must enter them manually in customizing.
Billing Document Types
Billing Document Type Short Text
F2B Nota scal
L2B Debit memo
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Billing Document Type Short Text
FA Advance invoice
FAR Invoice (future delivery)
FC Nota scal (consignment issue)
FCR Nota scal (consignment ll-up)
G2B Credit memo
REB Credit memo (returns)
FST Nota scal (ship-to party)
FTB Nota scal (transfer)
Sales Document Item Categories
Sales Document Item Category Short Text
TBD Services
KBNB Consign. Fill-up BR
KENB Consignment issue
LANB RTP pickup
LBNL RTP pickup (statistical) in nota scal
LPNB Sched. Agr. Item BR
NLNB Standard stock transport order item
RBB Standard batch item
RBN Standard item
TBL RTP shipment
TBLL RTP (statistical) in nota scal
TBN Standard item
TBNL Item with statistical billing
TBPS Standard item (PS)
TBS Third-party item
TBX Non-stock item
TBB Standard batch item
Document Procedures (for Pricing Procedure Determination)
Document Procedure Short Text
E Advance invoice
F Sales future delivery
K Consignment ll-up
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Document Procedure Short Text
M Consignment issue
Sales Document Types
Sales Document Type Short Text
ORB Standard order
DRB Complement request
REB Returns
COB Schedule agreement
CRB Correction request
CXB Credit memo (error)
DLB Delivery without order
DXB Debit memo request
KBB Consignment ll-up
KEB Consignment issue
LAB RTP pickup with separate nota scal
RCM Rem.p/cta.e ord.merc
RCS Rem.p/cta. simpl.f.
ROB Return
VDOR Order (venda à ordem)
VEF Future delivery (invoice)
VEFR Future delivery (shipment)
Incompletion Procedures
Incompletion Procedure Short Text
B1 Standard item BR
JC Order with cust. NF
JH Return with cust. NF
JP RTP ret. w/ cust. NF
JQ RTP ret. w/ own NF
JS Order f/NF simp.fat
B2 Free of charge BR
B3 Value item BR
BC Consignt/packg. BR
BT 3rd party item BR
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Automatic Nota Fiscal Header Texts
Sales Document Type Short Text
COB Scheduling agreement number: &
CXB Exchange rate: &
DXB Exchange rate: &
ORB Simples faturamento de mercadoria em consignação - NF acima

referida
RCM Exchange rate: &
RCM Mercadoria que lhe foi vendida por &,
RCM Conforme nota scal &
RCS Do &
RCS Mercadoria que tem sido remetida ao destinatário p
RCS Nota scal acima referida.
RCS O destinatário é &.
REB Order reason: &
ROB Order reason: &
VDOR Goods will be sent directly by & on our expense
VEF Sem valor para acompanhar o produto - Mercadoria para entrga

simbólica
VEFR Sem valor para acompanhar o produto - Mercadoria para entrga

simbólica
Importing Tax Rates for Tax Codes
Use
You run this report to import tax rates for Financial Accounting (FI) tax codes that are delivered with local version Brazil.
Prerequisites
You must run this report in all existing system clients that Brazilian functions are required in, including client 000. Before doing
so, ensure that you have the same tax calculation procedure in all clients into which you are importing rates.
Procedure
1. In Customizing for FI, choose Financial Accounting Global Settings Tax on Sales/Purchases Calculation De ne
Tax Codes for Sales and Purchases .
2. Enter country BR .
3. From the Maintain Tax Code: Initial Screen , choose Tax Code Transport Import .
4. The Import Tax Codes After Transport screen appears.

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5. Choose .
6. Check that the related batch input has been processed, by choosing System Services Batch Input Sessions .
For more information, refer to the report documentation.
Financial Accounting (FI)
Purpose
The Financial Accounting (FI) component covers the most important laws and business practices speci c to Brazil. The
following documentation describes these aspects of the component.
Features
Local version Brazil allows for the business place entity, the level which is used for reporting taxes on sales/purchases, nota
scal reporting, and official document numbering.
In your day-to-day activities, it:
Calculates taxes automatically when you post a purchase order in Materials Management (MM) or a sales order in Sales
and Distribution (SD)
Processes incoming and outgoing payments in Accounts Receivable (FI-AR) and Accounts Payable (FI-AP)
This includes boletos, faturas, and DME.
You can also use the Brazilian FI functions to ful ll statutory reporting requirements, including the legal books and legal les.
Taxes (FI-AP/AR)
Use
The Taxes component covers the most important laws and business practices speci c to Brazil. For generic information about
Taxes, see Taxes (FI-AP/AR).
Prerequisites
You have maintained all the tax settings in Customizing. Each tax rate is described in detail in the following documentation,
along with the required Customizing settings. However, for an overview, you may want to refer to this list of Customizing
activities for Brazilian taxes.
In addition, you must have entered all relevant tax numbers for your customers, vendors, and your own company code.
Features
Local version Brazil calculates the following forms of taxes automatically:
Tax on sales/purchases
Withholding tax
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The system calculates Brazilian taxes that are levied at federal, state, and municipal levels. It takes into account the many
exceptions that may occur, and it makes available all tax-related data required for statutory reporting.
Taxes: Customizing
The following list contains all required Customizing activities related to the tax functions for local version Brazil , including the
basic settings and those needed for tax calculation. The activities are listed in the same order in which they appear in the
Implementation Guide (IMG).
 Note
The Tax Manager's Workplace enables you to make all tax-related Customizing settings from a single point of access.
The SAP note 1706309 provides a detailed documentation of the tax con guration for Brazil as well as BC Sets which can be
used to accelerate the implementation of Brazilian condition-based tax calculation. For general information on how to work with
BC Sets, see Business Con guration Sets (BC-CUS).
Basic Settings
Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil
De ne IPI Tax Situations
De ne IPI Tax Laws
De ne ICMS Tax Laws
De ne ISS Tax Laws
De ne Sequence for SD Tax Law Determination
De ne Brazilian Tax Regions and Assign to Geograph. Regions
De ne Tax Regions for Foreign Customers/Vendors
De ne Tax Jurisdiction Codes
Assign Postal Codes to Tax Jurisdiction Codes
Assign Alternative Calculation Procedure per FI/MM Tax Code
De ne Tax Types
De ne Which Taxes Are Included in MM Price Conditions
De ne Which Taxes Are Included in MM-SRV Price Conditions
De ne Which Taxes Are Included in SD Price Conditions
Condition-Based Tax Calculation Settings (only necessary if you employ this type of tax calculation), Condition-Based Tax
Calculation
Activate Condition Generation
Specify Calculation Procedures for Condition-Based Tax Calculation
Map MM Tax Values to Nota Fiscal Fields
Map SD Tax Values to Nota Fiscal Fields
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Map MM Tax Laws to Nota Fiscal Fields
De ne Internal Codes for Tax Conditions
Assign Condition Types to Internal Codes for Tax Conditions
Assign Condition Tables to Tax Tables
Tax Calculation
Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Settings for Tax
Calculation in Brazil
Access Tax Manager's Workplace
De ne SD Tax Codes
De ne Sequence for SD Tax Code Determination
De ne FI/MM Tax Codes
De ne Customer Groups for SubTrib Calculation
De ne Tax Groups for Dynamic Exceptions
Tax Rates,Tax Rates
Maintain Default Tax Rate Values
Maintain IPI Values
Maintain IPI Material-Dependent Exceptions
Maintain IPI Dynamic Exceptions
Maintain ICMS Values
Maintain ICMS Material-Dependent Exceptions
Maintain ICMS Dynamic Exceptions
Maintain ICMS-Complement Dynamic Exceptions
Maintain SubTrib Values
Maintain SubTrib Material-Dependent Exceptions
Maintain SubTrib Dynamic Exceptions
Maintain ISS Values
Maintain PIS Values
Maintain COFINS Values
See also:
Tax Calculation
Tax Number
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De nition
See tax number .
Use
Local version Brazil covers multiple tax numbers required in Brazil for levying taxes and subsequently reporting to the tax
authorities. You maintain your customers' and vendors' tax numbers in their master records, on the Control data tab
(customers) or on the Control screen (vendors).
CNPJ number for legal persons
CPF number for natural persons
You enter the CPF number in the Tax Number 2 eld and set the Natural Person indicator. The CPF number consists of 11 digits,
for example, 076.635.658-80. Enter all 11 digits directly – with no spaces, periods, or hyphens.
State tax number
You enter the state tax number in the Tax Number 3 eld (no xed number of digits or special format).
Municipal tax number
You enter the municipal tax number in the Tax Number 4 eld (no xed number of digits or special format).
You enter your own state and municipal tax numbers per business place (see Business Place ).
CNPJ Number
De nition
See CNPJ number .
Structure
The CNPJ number consists of 14 digits, for example, 12.345.678./0001-96. These digits represent three distinct elements:
The rst eight digits refer to the company registration number assigned to the company by the tax authorities.
The next four digits comprise the business place .
The last two digits refer to the check digits , which the system uses to perform automatic checks when you create a
customer or vendor master record, to ensure that no invalid numbers are stored in the system.
Master Data
You maintain your customers' and vendors' CNPJ numbers in their master records, on the Control data tab (customers) or on
the Control screen (vendors), in the Tax Number 1 eld. When you enter your customers' and vendors' CNPJ numbers, you just
enter the 14 digits directly – with no spaces, periods, slashes or hyphens.
You enter the various elements of your own CNPJ number in your company code master data. In Customizing for Financial
Accounting (FI), choose Financial Accounting Global Settings Company Code Enter Global Parameters . Choose
Additional details , and enter data as follows:
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CNPJ Business Place
Here you enter the business place element that is assigned to your company's headquarters. In most cases, this is 0001. The
system requires it to process Accounts Receivable (FI-AR) and Accounts Payable (FI-AP).
CNPJ Company Registration No.
Here you enter your company registration number, which is the same for all business places de ned within your company.
Each combination of company registration number and business place provides a unique CNPJ number; the business place is the
level at which reporting must be carried out.
Business Place
De nition
See business place . In Brazil, it refers to an organizational unit located between the company code and plant levels, as
illustrated in the following graphic (called BP):
Use
In Brazil, the business place is used for reporting taxes on sales/purchases, nota scal reporting, and official document
numbering.
Customizing
You need to make the following settings for your business places in Customizing for Cross-Application Components , under
General Application Functions Nota Fiscal CNPJ Business Places :
De ne Business Places
Here you de ne all the business places you require for your company. For each business place, you enter nota scal-related
information, such as the tax numbers. If substituição tributária (ST) is to be applied, you can enter the state tax number for ST,
per tax region. You also need to maintain address data for each business place since the nota scal print program uses the
business place address as the address of the issuer ( not the address of the delivering plant).
By making these settings, the system establishes the business place as the entity registered with the authorities that is
responsible for issuing notas scais and for tax and nota scal reporting.
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Assign Business Places to Plants
You assign a business place to one or more plants.
 Note
The plant must be assigned to a Brazilian company code before you can allocate a business place to it.
You are also required to assign number range groups to the business place, since it is at the level of the business place that the
outgoing forms are numbered. You do this in nota scal Customizing (see path above), under Output De ne Nota Fiscal
Numbers and Form Sizes .
In addition, you need to maintain your business place assignment in your company code master data, as described under CNPJ
Number .
Tax on Sales/Purchases
De nition
See Tax on Sales/Purchases, Sales Taxes, and Additional Taxes .
Use
In Brazil, there are a number of taxes on sales and purchases, of which Local Version Brazil covers the following:
Industrial products tax (IPI)
State value-added tax (ICMS), as well as special forms of ICMS:
ICMS complement
ICMS on freight
ICMS tax substitution (SubTrib) and SubTrib on freight
Municipal tax on services (ISS)
Social contribution tax on services (INSS)
When you create a company code using the template for Brazil and complete the required Customizing steps , the system
automatically makes all the settings required for these taxes.
The following sections explain the taxes in detail, starting with an explanation of the various rates per tax, and how the system
calculates them.
Tax Manager's Workplace
Use
The Tax Manager's Workplace (TMW) is a Customizing tool that enables you to make all required settings relevant to tax
calculation in Brazil (nearly 50), from a single screen.
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 Recommendation
We recommend that you work through the individual IMG activities when you rst con gure Brazilian taxes in your system,
documenting as you need to on a project basis. Then, as you need to make changes (due to a change in tax rate, for
instance), you can do so quickly using the TMW.
You can use the TMW regardless of the tax calculation method you employ; it simply brings all tax activities to a single
transaction. Only the pull-down menu Condition Setup contains activities that are relevant only to condition-based tax
calculation ( Migration , Condition Mapping , and Nota-Fiscal Mapping ), and these are not visible if you have not activated
condition-based tax calculation.
Integration
All TMW options can also be found as separate activities within the Implementation Guide (IMG), with the exception of two:
1. Option to change to a different country within the TMW
2. Migration of existing tax rates to condition records, which is necessary if you use condition-based tax calculation (only if
you switch tax calculation procedures )
Activities
You access the TMW in Customizing for Financial Accounting , by choosing Financial Accounting Global Settings Tax on
Sales/Purchases Calculation Settings for Tax Calculation in Brazil Access Tax Manager's Workplace . Refer to the IMG
documentation for a complete listing of all activities contained in the TMW.
You can access the documentation of the individual activities in the standard way (by clicking the document icon to the left of
the activity in the IMG), or by choosing the blue i icon within each activity.
You can also access the TMW by calling the transaction J1BTAX.
Tax Rates
You can de ne various tax rates for IPI , ICMS , SubTrib and ISS , which the system then accesses during tax calculation in the
sequence described below. The standard values correspond to those published by the government, and they are based on a
certain factor or combination of factors:
Tax Rate Factor(s)
IPI NCM code
ICMS Ship-from tax regionShip-to tax region
SubTrib Ship-from tax regionShip-to tax region
ISS ISS is based primarily on the tax jurisdiction code, but many other
factors can in uence its calculation (see ISS ). ISS is handled
differently than the other tax rates: there is one tax rate table, in
which you enter all standard rates as well as any exceptions. If ISS
is to be calculated, the system always accesses this rate table.
In addition, you can de ne exceptions for each tax rate. Dynamic exceptions allow you to de ne special rates based on key elds
stored in master records or taken from transaction data, such as the tax code. By means of tax groups, which you then assign to
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the dynamic exception tables, you can de ne up to three key elds that the system uses to determine the appropriate tax rate
in the case of dynamic exceptions.
 Recommendation
You can also de ne material-dependent exceptions, but we recommend that you de ne any rate exceptions using dynamic
exceptions; the material is one of the key elds you can de ne for your tax group.
Lastly, you can de ne default values for IPI, ICMS, and ISS (not SubTrib), which the system uses if it does not determine a valid
rate in the other tax rate tables.
Priority of Values
During tax calculation, the system searches for the correct tax rate in the tax rate tables. It looks in the following tables for
each tax type, in the speci ed sequence, and takes the rst rate it nds:
1. Material-dependent exceptions
2. Dynamic exceptions
3. Standard values
4. Default values
See also:
Taxes: Customizing , for IMG paths for de ning tax rates and tax groups for dynamic exceptions, under Tax Calculation
Industrial Products Tax (IPI)
De nition
See IPI .
Use
IPI, which is included in nota scal documents, must be submitted to the Brazilian tax authorities. It is reported in Modelo 8,
Directory for Calculating IPI Tax ( Registro de Apuração do IPI ).
The system also calculates a special quantity-based form of IPI called IPI pauta . Goods falling in this category are taxed per
piece or by kilogram, rather than being taxed a de ned percentage per product. You make these additional speci cations in the
IPI tax Customizing activities, but instead of entering a rate in the Tax Rate eld, you use the Rate/Unit eld and additionally
specify the number of units and unit of measurement.
Integration
Several factors in uence the percentage rate and base value of IPI:
Usage of the goods (based on the posting in Purchasing)
If a material is used for industrialization (production), the tax amounts are posted to separate line items. If a material is used
for consumption , the tax is nondeductible, in which case the IPI amount is added to the value of the material and you cannot
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offset the tax against your output tax. If a material is resold , the IPI tax amount is nondeductible, but it is added to the
inventory value. IPI is typically not due in resale, since it is an excise duty levied on the production or import of goods.
NCM code
The rate varies depending on its product classi cation, as de ned by its NCM code. For some products, IPI is calculated on a
reduced base amount.
Material
In most cases, the system uses the IPI rate entered for the material's NCM code. However, if any other value has been entered
as an exception (including per material), this value always overwrites that of the NCM code.
Customer
In certain cases, customers can be exempt from IPI. This only applies to SD, as described below.
Vendor
If the vendor is a wholesaler who does not pay IPI, 50% of the calculated IPI value can be recovered. Since the wholesaler does
not charge any IPI at all, this IPI credit is deducted from the inventory value (half of the IPI amount is deducted from the
inventory value and the other half of the IPI amount is posted to deductible IPI). The IPI is not stored and printed on the nota
scal. This is only relevant for MM.
Rate Determination in Materials Management (MM) and Sales and Distribution (SD)
When you enter a purchase order in MM or a sales order in SD, the system derives the IPI rate from the following factors:
Factor MM SD
Tax code The FI tax code determines whether the The pricing procedure checks the SD tax
system must calculate IPI. code: If the Calculate IPI indicator is set,
the system calculates IPI. You specify the
SD tax code in the sales order on line-item
level.
Master record Vendor master: Customer master:
If the Tax split indicator is set, then 50% of If the IPI-exempt indicator is set, the
the calculated IPI value is posted as system does not calculate IPI on sales to
deductible input tax, and 50% is deducted the customer.
from the inventory posting or the posting to
an expense account. You generally set this
indicator for wholesale vendors who do not
pay IPI.
IPI rates The system searches for a rate as described here .
See also:
IPI Tax Law
State Value-Added Tax (ICMS)
De nition
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See ICMS .
Use
ICMS is applied when goods or services are sold or transferred. The cost of freight and insurance are usually, but not always,
included in the base value used for calculating ICMS.
ICMS is reported in Modelo 9, Directory for Calculating ICMS Tax ( Registro de Apuração do ICMS ).
The tax region Zona Franca de Manaus , a special duty-free zone created by government incentive to promote development,
represents a special case for ICMS calculation: It must be calculated, but it is subsequently discounted – so that no ICMS
payments are made. A few other regions, called the Cidades Conveniadas , possess a similar status.
Integration
Several factors in uence the percentage rate and base value of ICMS:
Where the goods originate from and where they are being shipped to
Product codes
ICMS exemptions are possible for certain products. An exemption can be either permanent or valid only through a speci ed
date, and its validity can apply to one state or it can extend to all states.
Different or reduced ICMS rates are applied to certain products. Reduced rates are only charged within one state; therefore,
the rates do not depend on the states of origin and destination.
For some products, ICMS is calculated on a reduced base (for example, 80% of the goods' value is taxed and 20% is not taxed).
As is the case with exemptions, the base-value reduction can be valid either permanently or only for a speci ed time period.
Reduced bases are only applied within one state, so again, they do not depend on the states of origin and destination.
Customer
Some companies are not subject to ICMS, such as some government-owned companies.
Usage of the goods
The base value for calculating ICMS depends on the usage of the goods. If a customer buys goods for production or resale, ICMS
is calculated on the goods' value not including IPI. If the goods are earmarked for consumption, the base value used to calculate
ICMS is the value of the goods plus IPI.
In addition, the usage determines how the system posts the amounts in Purchasing (MM-PUR). If the material's usage is
production or resale, the tax amounts are posted to separate line items. If the usage is consumption, the tax increases the
value of the material and it is nondeductible.
When you enter a purchase order in MM or a sales order in SD, the system derives the ICMS rate from the following factors:
Factor MM SD
Tax code The FI tax code determines whether the The pricing procedure checks the SD tax
system must calculate ICMS code: If the Calculate ICMS indicator is set,
the system calculates ICMS. You specify
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the SD tax code in the sales order on line-
item level.
Master record Vendor master: Customer master:
The system checks the tax jurisdiction code The system checks the tax jurisdiction
of the vendor to determine the ship-from code of the customer to determine the ship-
tax region, which is required to nd the to tax region, which is required to nd the
ICMS rate. ICMS rate.
In the case of conhecimentos, the system If the ICMS-exempt indicator is set, the
may calculate ICMS on a reduced base system does not calculate ICMS tax on
value of 80%. To obtain this reduced base sales to the customer.
value, enter 1 in the Tax base eld, on the
Control screen.
Plant Receiving plant: Issuing plant:
The system checks the tax jurisdiction code The system checks the tax jurisdiction
of the receiving plant to determine the ship- code of the issuing plant to determine the
to tax region, which is required to nd the ship-from tax region, which is required to
ICMS rate. nd the ICMS rate.
ICMS rate The system searches for the rate as described here .
See also:
ICMS Tax Law
ICMS Complement
De nition
A special form of ICMS (in Portuguese, complemento de ICMS ).
Use
The system calculates and posts ICMS complement when a company buys goods in a state other than its own and the goods'
usage is consumption.
ICMS complement is calculated as the difference between the ICMS rate that the vendor charges and the ICMS rate valid in the
company's own state. The rates are based on the ship-from and ship-to tax regions, as described under ICMS .
Exceptions can be applied to the calculation of ICMS complement. A state can de ne that for a given material either:
ICMS complement is not to be calculated, or
A different base value is to be used for the calculation (for example, 80%)
You can maintain exceptions for ICMS complement in Customizing for Financial Accounting (FI), under Financial Accounting
Global Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates Maintain ICMS-
Complement Exceptions .
Integration
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The system posts ICMS complement as a tax liability in FI, but it is not added to the price of the goods, and therefore does not
constitute part of the nota scal.
ICMS on Freight
De nition
ICMS levied on freight services.
Integration
In Sales and Distribution (SD), the system calculates ICMS on freight if the Calculate ICMS on freight indicator is set in the
respective SD tax code .
ICMS Tax Substitution (Substituição Tributária)
De nition
Tax substitution in Brazil. Local version Brazil calculates one form of substituição tributária , for ICMS. The system refers to it as
substituição tributária , SubTrib, or ST.
Use
Tax substitution is a method of collecting taxes for products that typically have few producers, but many customers (alcoholic
beverages, for example). It simpli es tax collection since the tax authorities process a much-reduced volume of ICMS payments.
It works in the following way:
A producer manufactures its product and sells it to a reseller, who in turn sells it to the nal customer. Instead of both the
producer and the reseller submitting ICMS payments to the tax authorities, the tax authorities transfer the right to collect
taxes to the producer of the goods. The producer, called the substitute taxpayer ( substituto tributário ), is obligated to submit
ICMS tax to the tax authorities, including the tax incurred when it sells to the reseller and the tax on the presumed resale
surcharge that it collects from the reseller.
The system calculates the surcharge for the product by applying a percentage rate or a xed price per unit.
When you enter a purchase order in MM or a sales order in SD, the system derives the SubTrib rate from the same information
it checks for ICMS rate determination , only it checks for SubTrib instead:
FI/SD tax code
Vendor/customer master record
In SD, if the customer's tax classi cation is 2 ( Zona Franca - ICMS ), the system can also calculate ST in the special way
required for sales to customers located in the tax region of Zona Franca de Manaus .
Receiving/issuing plant
SubTrib rate (in MM and SD)
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The system searches for the rate as described here .
 Note
If the system does not nd a SubTrib rate, it does not calculate SubTrib. There is no default rate, as there is for IPI, ICMS and
ISS.
You can group customers according to what rules they use for calculating SubTrib and then specify the customer group in
customer master records. You de ne the customer groups in Customizing for Financial Accounting , under Financial
Accounting Global Settings Tax on Sales/Purchases Basic Settings Settings for Tax on Sales/Purchases in Brazil
De ne Customer Groups for SubTrib Calculation .
Substituição Tributária on Freight
De nition
ICMS tax substitution for freight services (ST on freight) when a transport company provides the service, but the company who
pays for the freight service calculates and submits ICMS.
Use
If the freight invoice ( conhecimento ) does not contain the ICMS amount, then the company receiving the service must
calculate ICMS, which is called "ST on freight" in the system.
When you create a company code using the template for Brazil, the system sets up the tax codes IF (input tax on goods for
production, ICMS ST on freight) and CF (input tax on goods for consumption, ICMS ST on freight).
Calculation in Materials Management (MM) and Sales and Distribution (SD)
The system calculates ST on freight as follows:
Factor MM SD
Tax code You must create a new FI/MM tax code and The system calculates the tax if the
activate the calculation of ICMS SubTrib on Calculate ICMS Sub.Trib. on freight
freight (by choosing Goto Maintain indicator is set in the respective SD tax
Conditions ). code .
Base value For the system to calculate the tax, you must de ne the base value for the calculation. You
enter the freight conditions used to calculate the base value in Customizing. In the
activities listed below, you must set the S.T.fr. (Add condition to base value for Sub.Trib on
freight) indicator for conditions that are part of the base value for calculation.
The system does not check if conditions for which the S.T.fr. indicator is set are
statistical or not. This indicator is not related to the de nition of freight conditions in the
NF value (SD/MM: Transfer rules: Pricing to Nota Fiscal) eld, which determines to which
elds of the nota- scal line-item a condition value is transferred.
Materials Management Logistics Sales and Distribution Billing

Invoice Veri cation Incoming Invoice Billing Documents Country-Speci c
Nota Fiscal Value Determination. Features Country-Speci c Features for
Brazil Special Conditions for Pricing.
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Municipal Tax on Services (ISS)
De nition
See ISS(in Portuguese, Imposto sobre Serviços ).
ISS can be due to the municipal tax authority either where the service is provided or where the service provider is located, or
under certain circumstances to both authorities.
A number of factors in uence the calculation, levying, and reporting of ISS, including:
Tax-relevant location
This can be one of three tax jurisdictions: where the service provider is located, where the service is provided, or where
the service recipient is located.
Who the tax is levied by
This is typically the service provider, but in certain cases it can also be withheld by the service recipient.
Integration
ISS Determination
The system derives the ISS rate from the following factors when you post a sales order in Sales and Distribution (SD) or a
purchase order in Materials Management (MM):
Factor MM SD
1) Tax code The FI tax code determines whether the The pricing procedure checks the SD tax
system must calculate ISS. code: If the Calculate ISS indicator is set,
the system calculates ISS. You specify the
SD tax code in the sales on line-item level.
2) Master record
Depending on which location(s) are tax-relevant for a transaction, the system checks the tax jurisdiction code in the address data for
customers, vendors, and plants as follows:
a) Service provider Vendor Plant
b) Service recipient Plant Sold-to party(business partner role)
c) Location where service is provided Delivery address Ship-to party(business partner role)
If not speci ed, then the system checks the

plant.
Note that for ISS only (unlike ICMS and

SubTrib), the system takes the jurisdiction
code entered on the Delivery Address tab (
Address Details button) – and not the one
entered on the Invoice tab.
3) ISS rate The system searches for the rate as de ned in Customizing: Financial Accounting
Financial Accounting Global Settings Tax on Sales/Purchases Calculation
Settings for Tax Calculation in Brazil Tax Rates Maintain ISS Values .
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Whether ISS amounts are already included in the net price of a material depends on how you have customized your price
conditions, under Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings
Brazil De ne Which Taxes Are Included in MM Price Conditions or MM-SRV Price Conditions or SD Price Conditions .
Master Data Maintenance
If ISS needs to be calculated, you must enter the tax jurisdiction code in customer, vendor, and plant master records.
Social Contribution Tax (INSS)
De nition
INSS (in Portuguese, Instituto Nacional da Seguridade Social ) is a social tax that a company pays when it receives a service
from a natural person.
Use
When you create a company code using the template for Brazil, the system sets up the tax code IN , which it uses to calculate
INSS based on a xed rate.
Tax Calculation
Use
The system uses different methods to calculates taxes, depending on whether you enter a purchase order in Materials
Management (MM) or a sales order in Sales and Distribution (SD), as described below. If you post a document directly in
Financial Accounting (FI), certain tax-related data is not available, such as the material and the NCM code; the system
proceeds in the same way it does in MM, but it does not nd this data. If default rates are maintained for ICMS, IPI and ISS, the
system uses these in FI.
When the system calculates taxes, it:
Determines whether a given tax is to be calculated (based on the tax codes)
Determines which rate applies, and subsequently the tax amounts and tax base values per line item
Transfers the calculated tax amounts per line item to the nota scal
The system accounts for tax situations and tax laws , as well as tax regions and tax jurisdiction codes .
Prerequisites
You have made all Customizing settings required for taxes in Brazil.
 Note
The Tax Manager's Workplace enables you to make all tax-related Customizing settings from a single point of access.
Note, also, that a Business Con guration Set is available that contains most of the Customizing settings required in MM/FI
and SD (see Taxes: Customizing for details).
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Tax Calculation in MM
In MM, the system uses the calculation procedure assigned to Brazil . When you create a company code using the template for
Brazil , the system sets the TAXBRJ procedure automatically (but we do recommend that you change it to TAXBRA, as
described in Calculation Procedure, link above). The delivered procedures allow for all the FI/MM tax codes supplied with the
system.
 Caution
For the Brazilian tax calculation procedures to function correctly, be sure that the Tax base is net value and Discount base is
net value elds are deactivated in Customizing for your company code.
Tax Calculation in SD
In SD, the system calculates taxes using the pricing procedures supplied with the system. These procedures require information
stored in SD tax codes .
Calculation Procedure
De nition
See The Calculation Procedure
Use
The system comes complete with two tax calculation procedures for Brazil, one of which must be assigned to your country:
 Recommendation
We strongly recommend that you use procedure TAXBRA, as it enables you to exibly adapt the tax calculation logic to cover
new legal requirements or special customer needs.
TAXBRA
This procedure is used for calculating Brazilian taxes based on the standard condition technique . Tax rates, tax laws, and special
indicators that in uence whether tax line items are included in the nota scal are all stored in the system as condition records.
By means of mapping tables and tax code con guration, you can customize which values are written to which elds of the nota
scal, and which tax lines are generated.
If you employ condition-based tax calculation, you need to activate it and carry out all related Customizing activities, all of which
are found in Customizing of taxes forBrazil, under Basic Settings .
If you want to switch to the procedure TAXBRA (and you formerly used TAXBRJ), a migration function is available in the Tax
Manager's Workplace, which you can use to carry out the initial conversion of entries in the Brazilian tax tables to condition
records. Afterwards, the system automatically generates condition records for all new or changed entries in these tables.
Another function is available that allows you to evaluate condition tables and nd condition records with missing tax table
(J_1B*) entries; see Checking Data Consistency .
For detailed information on con guring condition-based tax calculation for Brazil, see SAP note 1706309 . This SAP note
provides a detailed documentation as well as BC Sets which can be used to implement the condition-based tax calculation for
Brazil.
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TAXBRJ
When the system processes this procedure, it calculates the taxes externally by calling function module
J_1BCALCULATE_TAXES.
SAP strongly recommends to use the calculation procedure TAXBRA. For more information, see SAP note 1538088 .
FI/MM Tax Code
De nition
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 scal 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 scal 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:
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
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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
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
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In Customizing for Financial Accounting , you can de ne 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 De ne FI/MM Tax Codes .
See also:
Tax Codes
Pricing Procedure
De nition
See Pricing Procedures .
Use
The system comes complete with the following sample pricing procedures for calculating taxes in Sales and Distribution (SD)
for Brazil:
TPP/Pricing Procedure
TPP Pricing Procedure Description
E RVXBRE Advance invoicing
F RVXBRF Sales future delivery
K RVXBRK Consignment ll-up
L RVXBRL Consignment issue
S RVXBRA Brazil: standard
To de ne additional pricing procedures, in Customizing for SD, choose Basic Functions Pricing Pricing Control De ne and
Assign Pricing Procedures .
SD Tax Code
De nition
See tax code .
Use
The system uses tax codes de ned 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-Speci c
Features Country-Speci c Features for Brazil Maintain Sales Document Item Category .
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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:
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 de ne 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 De ne SD Tax Codes .
Tax Region
De nition
Code that identi es a Brazilian region for purposes of tax calculation.
Use
The system calculates ICMS and SubTrib based on materials' ship-from and ship-to tax regions. For Brazilian company codes,
the ship-from and ship-to locations are stored in the tax jurisdiction code , which can be found in address data.
Note that to calculate ISS, the system requires additional information at the municipal level (see Tax Jurisdiction Code ).
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Activities
Customizing
You can maintain tax regions in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global
Settings Tax on Sales/Purchases Basic Settings Brazil De ne Brazilian Tax Regions . Here you establish the
assignment of tax regions to regions. Each region can have one or more tax regions assigned to it. For example, the region
Amazonas has assigned to it the tax regions Amazonas and Zona Franca Manuas . In most cases, however, there is one tax
region for every region, and they both have the same code.
The system handles foreign customers and vendors a bit differently. Additional tax regions have been de ned (where the region
is left blank), for example, XX for trade with the United States . You can then assign a tax region to the foreign countries you
need by choosing the same path above, but the activity De ne Tax Regions for Foreign Customers/Vendors .
For the system to automatically determine the tax region during tax calculation, ensure that the following settings are made in
Customizing for FI, under Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings External Tax
Calculation
De ne Logical Destination
Ex = B; Event = JUR; Function Module = J_1BTAXJUR_DETERMINE_NEW; RFC Destination = leave blank
Activate External Tax Calculation
Reference = enter your calculation procedure (TAXBRA or TAXBRJ); External System = B; leave all other elds blank
Master Data
When you enter address data in master records, the system automatically determines the tax jurisdiction code based on the
region (geographical) that you enter. If a single tax region corresponds to the region, the system assigns this tax region to the
master record in the Jurisdict. Code eld. If more than one tax region is assigned to the region, you must choose the
appropriate tax region for the plant, customer, vendor, or company code.
Day-to-Day Activities
When you then post a purchase order in Materials Management (MM) or a sales order in Sales and Distribution (SD), the
system uses the tax jurisdiction code from the respective master record. Or if you enter address data directly in the sales or
purchase order, the system determines the tax jurisdiction code in the same way as described above, by checking which one is
assigned to the geographical region you enter.
Tax Jurisdiction Code
De nition
A code used for determining tax rates in Brazil ; it controls which tax authorities must be paid for a given transaction.
Structure
The tax jurisdiction code is comprised of the following two parts:
Characters Contain
1-3 Tax region
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Characters Contain
4 up to 16 Municipal ( município ) code
The system additionally requires the second part of the tax jurisdiction code, the municipal code, to calculate ISS; for ICMS and
SubTrib, the three-character tax region is sufficient.
Integration
When you maintain Brazilian address data in master records or transaction data, and enter the postal code and geographical
region, the system automatically assigns the correct tax jurisdiction code by accessing the entries in Customizing for Financial
Accounting (FI), under Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Assign
Postal Codes to Tax Jurisdiction Codes. If it does not nd an entry here, it reads the tax region from the De ne Brazilian Tax
Regions and Assign to Geograph. Regions activity.
Once the system determines either the tax jurisdiction code or the tax region, it stores the value in the Jurisdict. Code eld of
the address.
 Note
The municipal code you enter as part of the tax jurisdiction code is not the same one you may have entered as the city code
in Sales and Distribution (SD), which is visible in the customer and plant masters, but not in the vendor master (in
Customizing for SD, under Basic Functions Taxes De ne Regional Codes De ne City Code ). You must always enter
tax jurisdiction codes for the system to calculate ISS.
Example
Assume that you procure window-cleaning services from a company located in the tax jurisdiction of São José do Rio Preto, and
for calculation of ISS, the location of the service provider is the tax-relevant location. In Customizing, you de ne the tax region
SP for the state of São Paulo . São José do Rio Preto has the municipal code 4980, so you de ne the tax jurisdiction code SP
4980 . Note that the space after the SP counts as the third character of the tax region.
Tax Law
De nition
Tax laws are de ned by the relevant tax authorities and describe what rates apply forIPI, ICMS, and ISS for different sales and
purchases of goods or services. They detail which transactions are subject to the full rate, which are subject to a reduced rate,
and which are exempt from the tax.
Use
Associated with each tax law is a text which might have to be printed on the nota scal. For IPI and ICMS, you need to print this
text for transactions that are not subject to the full rate. It is not mandatory to print a tax law text for ISS, but we recommend
that you print a dummy tax law, such as IS0.
The system automatically determines the tax laws in Materials Management (MM) and Sales and Distribution (SD) as follows:
MM
For IPI and ICMS, the system takes the tax law from the FI/MM tax code . If, however, an IPI text has been speci ed for
the IPI rate or an ICMS text has been speci ed for the ICMS rate, this entry overwrites the one in the tax code.
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For ISS, if a tax law text is to be printed, the system takes this directly from the ISS tax rate table.
SD
The system takes the tax law from one of these sources: sales item category, customer master record, or tax exceptions.
You de ne the sequence in which the system is to access these sources in Customizing for Financial Accounting (FI),
under Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil De ne Sequence for
SD Tax Law Determination .
You can also manually enter a text for the tax law in the sales order.
You can maintain IPI, ICMS, and ISS tax laws in Customizing for FI, by choosing the relevant activity under Financial
Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil.
ICMS Exclusion from PIS and COFINS Tax Base

Based on the Supreme Court Decision related to Leading Case RE 574706, your company’s legal department may choose to
exclude the ICMS-related amounts from the tax base of the PIS and the COFINS contributions on sales and purchasing
transactions.
To perform the exclusion, you have the following options available:
Exclude only the ICMS amount.
Exclude the ICMS and the Poverty Combat Fund (FCP) amounts on ICMS.
Exclude the ICMS and the ICMS Partilha amounts in an interstate transaction with non-ICMS contributors.
Exclude the ICMS, the ICMS Partilha, and the FCP on ICMS Partilha amounts in an interstate transaction with non-ICMS
contributors.
For purchasing, if your company's legal department choose to exclude the ICMS-related amounts from the tax base of the PIS
and the COFINS contributions for credits, you can use this solution. Otherwise, verify if the net price in the purchasing
documents is calculating the expected values for all taxes, except for PIS and for COFINS. If not, the net price has to be
manually updated.
You can customize your system and de ne in which scenarios this exclusion should take place. For scenarios that you enable the
exclusion, the following changes to the calculation process happen:
The unit price calculation is changed so that the ICMS amounts are excluded from the PIS and the COFINS tax base
during the price formation.
During the calculation of the PIS and the COFINS, the ICMS amounts are excluded from the tax base.
(For Materials Management only) The PIS and the COFINS credit are reduced.
To have this solution available in your system, implement the Exclude ICMS from PIS and COFINS base
(EXCLUDE_ICMS_FROM_PIS_COF_BASE) method in the BAdI: Extension of Tax Calculation Features Customizing activity, under
SAP Customizing Implementation Guide Logistics - General Tax on Goods Movement Brazil Materials Management
Invoice Veri cation Business Add-Ins (BAdIs) or under SAP Customizing Implementation Guide Logistics - General
Tax on Goods Movement Brazil Sales and Distribution - Billing Documents Business Add-Ins (BAdIs). For more
information, see the system documentation.
For tax reporting purposes, the ICMS Amount Excluded from the PIS/COFINS Calculation Base eld is available in the nota
scal, and indicates the sum of the ICMS-related amounts excluded from the tax base of PIS and the COFINS contributions on
sales transactions
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Migrating Tax Rates to Condition Records
Use
If you switch from using tax procedure TAXBRJ to TAXBRA, which corresponds to condition-based tax calculation, you can
migrate existing tax rate entries to condition records.
Procedure
1. From the Tax Manager's Workplace , choose Condition Setup Migration Tax Tables to Conditions .
2. Select an individual tax rate table and check whether corresponding condition records exist, by choosing Condition
records Check conditions and the appropriate application, MM or SD.
A log appears on the bottom half of the screen, which displays the status of each entry in the table:
Traffic Light Meaning
Green Condition records exist for all elds in the table entry
Yellow At least one eld in the table is missing a condition record (but
some do exist)
Red No condition records exist for elds in the table entry that are
supposed to have one (some do not require one)
The whole tax rate table receives the color status of the lowest of any of its entries.
3. Convert the entries of the tax rate table if it has yellow or red status, by selecting the table, specifying the application
(MM or SD), and choosing a conversion option.
4. Repeat steps 2 and 3 for each of the tax rate tables.
Result
Once you have condition records for all your tax rates, you can use condition-based tax calculation.
Checking Data Consistency
Use
For Brazilian condition-based tax calculation to function correctly, each tax entry in the Brazilian tax tables (J_1B* tables) must
have exactly one corresponding entry in the condition database, and vice versa, meaning there must be a 1:1 relationship.
However, for a number of reasons, the corresponding tax entry or condition record may be missing. You can use the migration
function to check for missing condition records. The other case would be for condition records to exist without corresponding
tax entries – if, for example, you have deactivated automatic generation of condition records and subsequently deleted tax
data, or if you have manually created condition records. To ensure consistency of data in the tax tables, follow the procedure
below.
Procedure
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1. From the SAP Easy Access menu, choose Tools ABAP Workbench Development ABAP Editor (Transaction
SE38).
2. Run program J_1B_CBT_CONSIST, and the system displays a list of condition tables.
3. Double-click a table, and the system displays all condition records used for Brazilian tax calculation.
The traffic light indicates the status of the condition record: red means there is no corresponding record in the
tax table; yellow means a record exists in the tax table, but the data differs (for example, the tax rate); and green
means a correct corresponding entry exists.
At the far right, you see the corresponding Brazilian tax table as well as the index in the table (for condition
records with yellow and green status only; for red entries, this eld is blank).
4. Select all condition records with red and yellow status, and delete them by choosing the Delete condition records
pushbutton.
5. Repeat steps 3 and 4 for each of the condition tables. For the tax calculation to function properly, all condition tables
must contain green entries only.
Once you have viewed a condition table, the icon next to it changes to include a pair of eyeglasses, ; if you have made
at least one change to a table, the icon includes a diskette, .
Last Purchase Price
De nition
In Brazil, retail companies pay taxes based on the last purchase price of incoming items. Therefore, the last price of an incoming
movement must be available in the system.
This price can be derived from invoices or incoming transfers. In retail companies it is common to transfer the material from a
distribution center to warehouses. The distribution center buys the materials from a vendor and pays the taxes. Later on by
transferring the materials to the warehouses the sending distribution center has the authorization to credit the taxes.
Use
The last purchase price is used within the Brazilian Tax Calculation Schema (TAXBRJ), when calculating certain tax types from
the following tax groups:
ICMS
Substituição Tributária
Reimbursement
For more information, see Activating Last Purchase Price.
Activating Last Purchase Price
Procedure
1. Access Customizing for Financial Accounting under Financial Accounting Global Settings Tax on Sales/ Purchases
Basic Settings Brazil De ne Tax Types .
2. Select the Last PP checkbox (Activate Last Purchase Price for Stock Transfers) for the following tax groups:
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ICMS
Substituição Tributária
Reimbursement
3. Save your entries.
Results
When you activate the last purchase price for ICMS and Substituição Tributária tax groups, the system uses the last purchase
price from the Inventory Management (MM-IM) process, as the base for the tax calculation, and it in uences the values of the
nota scal. For this reason, a tax code must be used with the tax type/condition, in the cases where this indicator is set;
postings in Financial Accounting (FI) are not affected.
When you activate the last purchase price for the Reimbursement tax groups, the system creates an offset posting in the FI
document based on the moving average tax. This amount is not transferred to the nota scal.
Last Purchase Price Calculation
Use
You use this function to calculate the last purchase price (LPP), for taxation purposes. The LPP is calculated for the base unit of
measure of the item.
Integration
This function uses information about goods receipts and invoice veri cation from the Materials Management component (MM).
This function is also integrated with the Brazilian Tax Calculation Schema (TAXBRJ).
Activities
After you activate the last purchase price, the system calculates it using two different formulas, depending on the available
data as described below:
When the goods receipt for a certain purchase has been posted, the system uses the following formula:
LPP = (total stock x average from database + tax amount) / (total stock + GR quantity)
All needed information is available in the internal tables referring to table Document Segment: Material (MSEG). The
quantity of the goods receipt is not yet added to the total stock.
When the invoice veri cation for the same purchase is posted, the system recalculates the last purchase price using the
following formula:
LPP = ((average from database x (total stock x numerator / denominator)) + tax value) / total stock
The goods receipt quantity is already included in the total stock and must be subtracted for the calculation. The base
unit of measure is not directly available, which is why the system has to calculate it. For that purpose the system uses
the numerator and the denominator from the conversion rules, de ned in the units of measure conversion of the
material master.
 Example
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Consider an invoice for screws. The screws are ordered by the box. However, the vendor's price is $10 per kg, and 1 kg
of screws lls 24 boxes. In this case, “numerator / denominator” would equal “24 boxes / 1 kg”.
Accounts Receivable (FI-AR)
Use
The Accounts Receivable (FI-AR) component covers the most important laws and business practices speci c to Brazil. The
following documentation describes these aspects of the component. For generic information about FI-AR, see Accounts
Receivable and Accounts Payable: Overview .
Features
The system automatically creates open items from notas scais generated in the sales processes. You then have several
options for collecting your receivables; the system enables you to:
Automatically generate and process duplicatas in local currency, including those related to installments or credit memos
Issue and process your own boletos , or arrange for your bank to issue them
Send DME les to banks in the most widely used bank le formats , and automatically process collection information
returned by the bank via electronic account statement functions
Process vendor operation nancing
In addition, the customer master record has been enhanced to cover Brazilian needs.
Customer Master (Brazilian Fields)

Some elds in the customer master are designed speci cally for Brazil, while others are of a more generic nature, but have a
particular use for Brazil. All the elds that are relevant to Brazilian customers are described below.
For more information, see Customer Master .
General Data
On the Address tab, the tax region is displayed in the Jurisdict. code (Tax jurisdiction code) eld. When you enter the
geographical region, the system automatically determines the tax region.
On the Control data tab, enter data as required:
Tax number(s)
CFOP category
The system uses this value to determine the CFOP code when you enter a sales order, in order to create a nota scal in
Sales and Distribution (SD).
ICMS tax law
IPI tax law
Whether the customer is exempt from IPI and/or ICMS
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SubTrib group, a group of customers subject to the same SubTrib tax calculation
On the Payment transactions tab, you can specify an instruction key for duplicata processing and activate automatic collection,
both related to collection via DME (see Customizing Outgoing DME Files ).
Company Code Data

On the Payment transactions tab, set Single payment (Indicator: Pay all items separately?). This must be set since the system
creates a duplicata for each open item.
See also:
Creating a Customer Master Record Centrally
Creation of Open Items
Use
In Brazil, when you enter an invoice in Sales and Distribution (SD), the system automatically generates the corresponding open
items in Financial Accounting (FI).
Features
The system automatically creates one open item for each nota scal – except for installment payments, in which case several
open items are created per nota scal.
Note, however, that if your company issues a fatura instead of the common nota scal fatura , you must manually post the
fatura before the system can create the open items.
Integration
When you run the payment program , the open items are available for selection.
Posting Faturas
Use
If your company issues a fatura instead of the typical nota scal fatura (see Nota Fiscal ), you need to manually post the fatura
in order to create the related open items in Accounts Receivable (FI-AR).
 Note
You can post a fatura in the system, but the system does not print faturas.
Procedure
1. From the SAP Easy Access screen, choose Accounting Financial Accounting Accounts Receivable Document
entry Other Intern.transf.psting With clearing .
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2. Enter the header data for the open items that are to be created, including the document date, company code, and
currency.
3. Choose the open items (that is, the notas scais) to be cleared.
4. Enter the total amount of the selected items in the Document eld and enter other line items.
5. Choose Save .
For more information on this transaction, see Posting with Clearing .
Incoming Payments
Use
Local version Brazil enables you to process your incoming payments in accordance with the most common payment procedures
in Brazil: duplicata , boleto , and vendor operation .
Features
The standard system comes with a number of prede ned payment methods:
A, for duplicata
D, for boleto/duplicata
V, for vendor operation
For collection involving banks, the system processes payments automatically using the standard electronic bank statement
functions.
Duplicata/Boleto Payment Methods

In Brazil, the typical collection process involves making a sale, creating an invoice (nota scal), and sending it to your customer
along with the goods. The system automatically transfers this information and creates open items in Financial Accounting (FI).
You execute a payment run and generate the necessary payment media.
Duplicata
If you employ a duplicata payment method, what you create out of the payment run is called duplicata , since it duplicates the
information you already sent your customer in the invoice; it is a type of trade bill. The system generates a duplicata for each
open item (see Duplicata Creation ). In most cases, you send a DME le, containing the duplicata information, to your bank (you
can also send a paper payment list, called a borderô ). The bank then acts on the instructions to collect the payment, by sending
a payment slip called a boleto to your customer. Your customer pays the boleto at its bank, and, if it is not the same bank, it is
then transferred to your bank. Your bank sends you relevant payment information via DME, which the system uses to update
the corresponding open item (see Communication with Bank ) and, in some cases, to clear the open items automatically (see
Processing of Bank Files ).
Boleto/Duplicata
This payment method is similar to the duplicata one – except that a company can print its own boletos – for example, to save
the fee charged by the bank for this service, or to save time and receive the payment quicker. In this case, the company also
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sends the duplicata DME le to the bank and processing is the same as above (see Boleto Creation ).
Duplicata Creation
Use
The system comes with all the settings you need to be able to collect payments by duplicata with the Duplicata File program.
Companies in Brazil can use this program to create electronic les in the most common bank le formats .
It is not possible to create a duplicata le for one-time customers.
Features
You generate the payment media using the payment program in conjunction with the supplied payment method A (duplicata)
and report RFFOBR_A.
Activities
Customizing
You rst have to set the payment method A and make payment method settings at the company code level in Customizing for
Financial Accounting , under Accounts Receivable and Accounts Payable → Business Transactions → Outgoing Payments →
Automatic Outgoing Payments → Payment Method/Bank Selection for Payment Program → Set Up Payment Methods per
Country for Payment Transactions and Set Up Payment Methods per Company Code for Payment Transactions .
Refer to the RFFOBR_A program documentation for further details on customizing the duplicata le program. For general
payment program settings, see Customizing the Payment Program .
Master Data
In the customer master record , make sure that the Single Payment indicator is set on the Payment Transactions screen.
Periodic Processing
When you execute a payment run, the system creates duplicatas in the following steps:
Selects the open items
The payment program selects open items in customer accounts that are linked to a duplicata payment method. In most cases,
only those items are to be selected that are related to notas scais which have already been printed, and have therefore been
assigned a nota scal number. You can ensure this by: printing notas scais immediately after they have been created, selecting
only relevant document entry dates in the payment program, or excluding the nota scal number ʻ0’ in the payment program
(specify eldBKPF-XBLNRon the Free Selection tab).
Creates the duplicatas in the system
For each open item, the system creates a duplicata, which is represented in the system by a bill of exchange payment request .
The system updates the customer’s open item with the bill of exchange payment request; it is entered as a noted item, which
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signi es that a duplicata has already been created for the open item, but it has not yet been paid (thereby blocking it from
being selected in a future payment run). The payment request also contains information on the selected bank.
The payment program also processes credit memos with an invoice reference along with the original item. The credit memo
amount is entered in the corresponding bank le as a rebate (called abatimento ) associated with the original item, reducing its
amount. If more than one credit memo corresponds to a single item, then the rebate of this item is the sum of all credit memos.
Generates the payment media required for collecting the payments
After processing the open items, the payment program triggers the print program assigned to the duplicata payment method,
RFFOBR_A.
You can con gure your program variant to generate the following to send to your bank:
DME le (select Data Medium Exchange ), or
Paper payment list, borderô (select Print collective order )
In most cases, companies send a DME le with the payment information.
Boleto Creation
Use
The system comes with all the settings you need to be able to collect payments by boleto with the International Payment Media
– Boleto (Brazil) program. Companies in Brazil can use this program to:
Fill in prenumbered boleto forms
Print numbered boleto forms
Create a duplicata le to send to the bank
Create a paper payment list ( borderô ) to send to the bank
Features
You generate the payment media using the payment program in conjunction with the supplied payment method D
(boleto/duplicata) and report RFFOBR_D.
Activities
Customizing
You rst have to set the payment method D and make payment method settings at the company code level in Customizing for
Financial Accounting (FI), under Accounts Receivable and Accounts Payable Business Transactions Outgoing Payments
Automatic Outgoing Payments Payment Method/Bank Selection for Payment Program Set Up Payment Methods per
Country for Payment Transactions and Set Up Payment Methods per Company Code for Payment Transactions.
Refer to the RFFOBR_D program documentation for further details on customizing the boleto program. For general payment
program settings, see Customizing the Payment Program.
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You manage boletos in the system using the standard check management functions; make the related settings in Customizing
for FI, under Accounts Receivable and Accounts Payable Business Transactions Outgoing Payments Automatic
Outgoing Payments Payment Media Check Management .
Periodic Processing
When you run the payment program, it creates a duplicata for each open item – by creating a bill of exchange payment request
(in the same way as described in Duplicata Creation). If a company prints its own boletos, the system assigns a boleto number
from a customized number range.
After processing the open items, the payment program triggers the print program assigned to the duplicata/boleto payment
method, RFFOBR_D. You can con gure your program variant to:
Print boletos – either generate your own, or ll in prenumbered forms (select Print Boletos)
Create a duplicata le to send to the bank (select Data Medium Exchange )
Regardless of who issues the boletos, the company sends the duplicata information to its bank – in the form of a DME le or a
payment list.
Communication with Bank
Purpose
In Accounts Receivable (FI-AR), you send a duplicata DME le to your bank to trigger the collection process.
Prerequisites
Make sure you have con gured Customizing settings as required.
Process Flow
1. The system generates a duplicata le with the relevant program (see Duplicata Creation or Boleto Creation ).
2. You send the DME le to your bank.
Each duplicata contained in the le is represented by a unique duplicata number , called seu número .
3. The bank con rms it has received your le by sending you a return le ( arquivo retorno ).
4. You import this le and the system updates the following information in the related open items:
Type of Information Entered in Following Field
Bank House bank
Duplicata number assigned by the bank ( nosso número ) Reference key 3
Bank account statement number and item number within the Reference key 1
statement
Collection agency ( agência cobradora ) Reference key 2
 Note
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If the bank rejects any duplicatas, this is displayed in the return le; you can de ne the error codes in Customizing for
FI, under Bank Accounting Business Transactions Payment Transactions Electronic Bank Statement De ne
Error Codes .
The system does not update the corresponding open items. You can use the postprocessing function to branch
directly to the open items and then make the required corrections manually. Before you can create a new duplicata
for these items, you must rst reverse the existing bill of exchange payment requests.
5. Most Brazilian companies take the information contained in the return le ( retorno ) and actually clear the open items
(see Processing of Bank Files ).
Customizing Outgoing DME Files

To send a DME le to your bank ( arquivo remessa ), you need to make the following Customizing or master record settings:
Carteira
In Brazil, you must specify additional information when you collect payments by sending a DME le to your bank, so the bank can
identify how it is to perform a given transaction; this is referred to as carteira . For example, when boletos are involved in
collecting customer payments, you need to inform your bank about who creates and issues them – the bank or you, the vendor.
You maintain a carteira value per bank account, in Customizing for Financial Accounting (FI), under Accounts Receivable and
Accounts Payable → Business Transactions → Incoming Payments → Automatic Incoming Payments → Payment
Method/Bank Selection for Payment Program → De ne Value Date Rules . Afterwards you assign the relevant payment
methods to the carteira, in the activity Assign Payment Method to Bank Transaction .
You enter carteiras in the Trans. (Transaction type for determining bank terms) eld. The carteira format differs from bank to
bank:
Bank Format Meaning Example
Banco Itaú YXXX or XXX Y = carteira code X = carteira I112 or 112

number
Banco Bradesco XXX X = carteira code 009
Other banks (including Febraban XABC X = carteira code ( código de 1211

format) carteira ) A = form of
registration ( forma de
cadastramento do título no
banco ) B = Issuer of boleto (
identi cação da emissão ) – ʻ1’
(bank) and ʻ2’ (company)
supported C = Sender of boleto
( identi cação da distribuição )
- ʻ1’ (bank) or ʻ2’ (company)
supported
Instruction keys
The instruction key speci es further processing of the duplicata. Instruction keys are supplied for the delivered payment
methods. If you need to de ne additional instruction keys, you do so in Customizing for FI, under Accounts Receivable and
Accounts Payable → Business Transactions → Outgoing Payments → Automatic Outgoing Payments → Payment Media →
Data Medium Exchange → De ne Instruction Keys . Note that instruction key 1 corresponds to the código de occorencia
(payment code), while keys 2 and 3 correspond to instruçoes de cobrança (collection instructions).
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You can enter an instruction key into each individual open item. When the system creates a duplicata, the key entered in the
corresponding item is transferred to the duplicata. If no instruction key is entered in the item, the system takes the instruction
key from the customer master ( General Data , on the Payment Transactions tab) or the respective house bank (under Data
Medium Exchange ).
DME user IDs
If your bank requires, it assigns and gives you a DME user ID. The system lls this value in the DME le you send to your bank,
and it enables the bank to easily identify the sending party. Note that the bank le formats refer to this value differently:
Febraban: Código do Convênio no Banco
Itaú: Código da Empresa
Bradesco: Códigos que identi cam a empresa junto aos bancos
You maintain DME user IDs in Customizing for FI, under Accounts Receivable and Accounts Payable → Business Transactions
→ Outgoing Payments → Automatic Outgoing Payments → Payment Media → Country-Speci c Settings for Payment Media
→ De ne DME User IDs . You can only assign a DME user ID to a single bank account, so if you have several accounts with one
bank, you must use a different ID for each account.
DME currency codes
You need to maintain currency codes as they are to be represented on various payment media (boletos and DME les). You do
so in Customizing for FI, under Accounts Receivable and Accounts Payable → Business Transactions → Outgoing Payments →
Automatic Outgoing Payments → Payment Media → Country-Speci c Settings for Payment Media → Maintain Currency
Codes for DME (Brazil) .
Automatic collection
Banco Bradesco offers automatic collection via DME. To activate automatic collection:
In customer master records, set the Coll. auth . indicator for the relevant bank account (on the Payment Transactions tab).
Employ (create if necessary) a payment method for which bank details must be maintained in customer master records.
For further control, you can also set the Collection authorization indicator for this payment method.
Duplicata Number
A number that uniquely identi es a single duplicata. The system refers to two types of duplicata number:
1. Company duplicata number ( seu número )
The payment program generates this number; it is composed of the nota scal number and the line item number.
 Example
Nota scal number: 123456
Line item number: 001
Duplicata number: 123456001
2. Bank duplicata number ( nosso número )
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The bank generates this number, and includes it in the return le it sends to con rm receipt of the original le (see
Communication with Bank ).
Changing Duplicatas
Procedure
If you need to make a change to a duplicata, you need to rst reverse it and then generate a new one:
1. Display the corresponding open item.
From the SAP Easy Access menu, choose Accounting Financial Accounting Accounts Receivable Account
Display/Change Line Items .
2. Select the More data pushbutton.
3. Reverse the bill of exchange payment request in the B/e pmnt req. eld.
From the Accounts Receivable menu, choose Document Reverse Individual Reversal .
4. Display the open item again, and go into change mode.
5. Make your change, for example, bank or payment method, and save.
6. Include the open item in a payment run, and the system generates a new duplicata .
Result
The document change administration logs the entire duplicata history – including duplicata changes.
Interest on Overdue Items
Use
You can employ standard interest calculation functions to calculate and charge interest on overdue duplicata items.
Features
The duplicata contains information on the interest amount the customer is charged for each day that the payment is overdue.
You can customize a reference interest rate per year and an optional surcharge. The system calculates interest by applying the
interest rate which is valid at the item due date; it then calculates the daily interest amount to be paid by the overdue
customer, per item, by dividing the annual interest rate by 360.
Activities
Customizing
The following standard Customizing activities are relevant under Financial Accounting → Accounts Receivable and Accounts
Payable → Business Transactions → Interest Calculation →
Interest Calculation Global Settings → De ne Interest Calculation Types
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De ne Reference Interest Rates
De ne Time-Based Terms
Enter Interest Values
Alternatively, you can specify tolerance days for arrears; to customize this, choose Interest Calculation Global Settings →
Prepare Interest on Arrears Calculation.
In Brazil, it is common to print an interest rate on the boleto, which applies in the case of an overdue payment. For the boleto
print program (see Boleto Creation ) to access this information, be sure to make settings in the activities above, De ne
Reference Interest Rates and De ne Time-Based Terms , in addition to setting the indicator listed under Master Data .
Master Data
If you want to charge a customer for overdue items, enter an appropriate interest calculation indicator in the customer master
record (under Company Code Data , on Account management tab).
Periodic Processing
If a customer pays a boleto after the due date, the bank calculates and collects interest. It then includes any interest amounts in
the return le it sends to the company – per item. You import this le and, if an item is overdue, the system calculates the
expected interest and compares it against any interest the bank has collected. If the difference exceeds a given threshold, the
system displays a warning. You can customize thresholds per customer under Financial Accounting → Accounts Receivable and
Accounts Payable → Business Transactions → Incoming Payments → Manual Incoming Payments → De ne Tolerances
(Customers). Make sure you enter the threshold amount in the Gain/Adjust discount by eld ( Maximum Discount Adjust. for
Gain from Payment Differences ; eld SKNTS).
Overview of Issued Duplicatas

You can display a list of duplicatas you have issued in the following ways:
SAP Query for duplicatas
Local version Brazil contains a report on issued duplicatas in the form of a SAP Query. The name of the query is DU, the
functional area is /SAPQUERY/J1B1, and the user group /SAPQUERY/XX. You access it from the SAP Easy Access menu, under
Accounting → Financial Accounting → Accounts Receivable → Reporting → Brazil → List of Open Items .
This report covers the legal requirements for the Registro de Duplicatas a receber , such as reporting due date, duplicata issue
date, gross amount, customer name/street, and amount. The list is sorted by due date, and you can select by customer,
company code, due date, issue date, document number, and seu número . Additionally, the report supports speci c Brazilian
business needs, enabling you to select data, for example, by:
Bank
Instruction key
Bank duplicata number ( nosso número )
This number is only available to the system if the bank has con rmed the duplicata.
You can also select open items for which no duplicatas have been created, by double-clicking the Created on eld and selecting
= Single value and leaving the eld blank.
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The output displays:
Bank ID where the duplicata is presented
Any rebate associated with a duplicata by related credit memos
Instruction key
Bank duplicata number
Subtotals per bank
Standard line item overview
You can use the standard line item reports to display open items and perform due date analysis. You nd the reports in the SAP
Easy Access menu, under Accounting → Financial Accounting → Accounts Receivable → Information System → Reports for
Accounts Receivable Accounting → Customers: Items .
Open items appear on the standard screen for line item display. If a duplicata has been issued for these items, the Bill of
exchange payment request eld is lled and related information is displayed.
Vendor Operation
Use
Vendor operation functions enable you to arrange special nancing for your customers with one or more banks, passing on
favorable interest rates and banks' days net to your customers. You receive immediate payment from the bank, but you also
function as the guarantor in the operation, should your customer default on their payment to the bank.
Both you and the bank charge the customer interest for this procedure. The bank pays you the cost of the goods plus your
charge, and the customer pays the bank the cost of the goods plus the bank's charge (the difference between the two amounts
is referred to in the system as equalization ). You only pay the taxes due (ICMS, IPI and COFINS) on the amount you receive
from the bank, and not on the bank's interest/ nance charge.
Prerequisites
You have already established a vendor operation contract with your customer, and have entered the necessary data in your
customer's master record .
Before you can use the vendor operation functions, you also need to make a number of Customizing settings .
Activities
The vendor operation procedure involves the following steps (for an overview of the business process itself, see Payment
Scenarios ):
1. Create an invoice for your customer, using special payment method V.
2. Create a vendor operation document using the Vendor Operation report, based on the selected bank's interest rate.
3. Execute a payment run for these documents.
To restrict the payment to vendor operation documents only, you need to specify your special G/L indicator on the Free
selection tab. To do so, choose F4 for the Field name eld, and specify that you want to nd a eld for a document . In the
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dialog box, select Special G/L ind. ( eld name BSEG-UMSKZ). Next, enter your special G/L indicator in the Values eld.
4. Create a DME le and boletos, where required, using the print program for vendor operation (RFFOBR_V).
 Note
You can trigger the automatic creation of the DME le and boletos from the payment run (step 4), by entering
program RFFOBR_V on the Printout/data medium tab.
5. Process information from the bank .
Customizing Vendor Operation

To use the vendor operation functions, you need to work through the following Customizing activities in Financial Accounting ,
under Accounts Receivable and Accounts Payable → Business Transactions
Customizing Path Activity and Comments
Incoming Payments → Automatic Incoming Payments → 1) Create a new payment method, V, which is needed for the print
Payment Method/Bank Selection for Payment Program → program.
Set up Payment Methods per Country for Payment Transactions Specify that the payment method is for incoming payments,
choose Debit memo as the classi cation, and set the Payment
Set up Payment Methods per Company Code for Payment
order only indicator under Posting details . EnterRFFOBR_Vas the
Transactions
payment medium program.
2) Assign payment method V to your company code.
Under Groping of items , select Single payment for marked item .

Under Form data, enterJ_1B_BOLETOfor Form for the next
payment transfer medium , andJ_1B_DMEfor Next form .
Incoming Payments → Automatic Incoming Payments → For payment block B, set the Change in pmnt prop. (Change in
Payment Proposal Processing → Check Payment Block Reasons Payment Proposal Permitted?) indicator.
(Default)
Dunning → Printout → Attached Payment Media → De ne House 1) Create a house bank for your company, which is used to store
Banks/Bank Account your company's interest rate it charges customers for the vendor
operation nancing option; the house bank should be the same as
your company code (for example, BR01). 2) Create a house bank
called IOF, which is used for posting nancial operations tax (
Imposto sobre operações nanceiras , IOF).
Postings with Alternative Reconciliation Account → Other De ne a special G/L indicator, called I, used to identify vendor
Special G/L Transactions → De ne Alternative Reconciliation operation documents.
Account for Customers
Incoming Payments → Automatic Incoming Payments → Enter your special G/L indicator as a special G/L transaction to be
Payment Method/Bank Selection for Payment Program → Set Up paid for customers.
All Company Codes for Payment Transactions
Add it to any existing entries by selecting via the F4 help.
Accounts Receivable and Accounts Payable → Business Maintain interest rates for your house banks
Transactions → Interest Calculation → Interest Calculation →
Maintain Bank Interest Rates for Vendor Operation ( Brazil )
Electronic Bank Statement – Posting Rules

You also need to make standard settings related to the electronic bank statement, so that the system correctly posts in the
system all transactions the bank informs you of. You do so in Customizing for FI, under Bank Accounting → Business
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Transactions → Payment Transactions → Electronic Bank Statement → Make Global Settings for Electronic Bank Statement ,
which consists of the following activities (see also Recommended Sequence of Con guration Tasks ):
Create an account symbol, for Banco and BankVendor .
Assign accounts to account symbols, in which you link a G/L account to the account symbols.
Create the following keys for posting rules:
02VO for vendor con rmation
06VO for vendor payment
06ER for vendor cancellation
VEND for vendor operation posting rule
De ne the following posting rules, all in posting area 2:
Posting Rule Posting Key Special G/L Account Symbol Compression Document Type Posting Type
Indicator
02VO 40 Blank Banco No DZ 8
06VO 40 Blank BankVendor No DZ 8
06ER (Debit) 01 Blank Blank No – –
06ER (Credit) 50 Blank Banco No SA 9
VEND (Debit) 09 I Blank No – –
VEND (Credit) 50 Blank BankVendor No DZ 2
Create a transaction type and assign external transaction types to your posting rules
In most cases, your bank uses the same return codes for vendor operation and standard return les. To differentiate them in the
system, use these special suffixes when you de ne the posting rules for vendor operation:
V1for the return le, including the credit data from the bank
V2for the information of customer payments or overdue items
ERfor the scenario of overdue items – in this case you add the suffix to a posting rule that already exists, indicating additional
error treatment.
Make the following settings:
External Transaction Sign of Incoming Posting Rule Interpretation Processing Type

Amount Algorithm
02V1 + 02VO 030 Brazil
06V2 + 06VO 030 Dummy entry
30V2 + 06VO 030 Dummy entry
30V2ER + 06ER 020 Dummy entry
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Assign the external transaction type to bank account.
Maintaining Customer Master Data

To offer vendor operation nancing to your customers, you rst establish a vendor operation contract with them. By signing this
contract, the customer authorizes you to negotiate conditions with the banks to cover their nancing needs.
You need to store the related contract information in the customer's master data , and the Vendor Operation report then
searches the banks entered there. A contract agreement can exist with different banks for the same time period, as well as for
varying periods.
Enter the following information on the Payment transactions tab:
Field Entry
Ctry (Bank country key) Country of the bank (most likely BR)
Bank key Key for the bank, as it appears in the Customizing activity,
Maintain Bank Interest Rates for Vendor Operation (Brazil)
Bank account Vendor contract number
Acct holder (Account holder name) Validity dates for the contract
Enter the start and end dates, separated by a space only, for
example: 01/01/200X 12/31/200X
Bk.typ. (Partner bank type) Vendor bank information (you)
– Enter a 4-character code that contains the following

information:First two should be letters (such as VN), and must
correspond to the value entered in the ID Vendor Op. eld in the
Vendor Operation report (its default value is set to VN).– Last two
should be sequential numbers (such as 00, 01, 02), and they
cannot be repeated within the same master record
Reference details Financing period agreed upon in the contract between the bank and
your customer (for example, enter 90 for 90 days net period)
Example
The customer's master record could look like this:
Payment Transactions Tab
Ctry Bank key Bank account Acct holder Bk.typ. Reference details
BR 12345678 1000 01/01/2001 VN01 90

12/31/2001
BR 23456781 125080 03/15/2002 VN02 120

02/14/2003
BR 34567812 2875 01/01/2001 VN03 90

12/31/2001
BR 45678123 299800 03/15/2002 VN04 120

02/14/2003
BR 56781234 21550 02/25/2001 VN05 45
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02/24/2002
Creating Vendor Operation Documents
Use
You use the Vendor Operation report to monitor and create documents for the vendor operation procedure. The report takes an
existing invoice and uses it to create a new one for the original amount plus the fees for the vendor operation procedure – in
much the same way as the bill of exchange procedure. The items in the new invoice are assigned a special G/L indicator of their
own and the system blocks the original invoice for payment.
The report enables you to determine which bank offers the lowest interest rates and stores this information in the vendor
operation document for use later on during payment runs. Alternatively, you can select the bank yourself.
Prerequisites
The report accesses the customer's master data as well as Customizing settings , so be sure you have maintained both of
these.
Procedure
To access the Vendor Operation report, from the SAP Easy Access menu, choose Accounting Financial Accounting
Accounts Receivable Reporting Brazil Vendor Operation .
Selection
Make the following required entries:
The company code that the report is to cover
The scal year that you want to select open customer items for
The posting rule that the vendor operation documents are to be posted with
If you create a special G/L indicator other than I (as described under the Customizing settings), then you must enter it in
include RFBRVEND as constant SPLIND.
The ID Vendor Op. eld
Whatever value you enter here, you must also enter it as the rst two digits of the partner bank type in the customer master
record. The eld's default value is VN.
You can restrict your selection with the following optional criteria related to the invoices :
Reference number of the invoices
Customers
Document numbers
Posting dates
Payment methods
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If you create a payment method other than V (as described under the Customizing settings), then you must enter it in the
include RFBRVEND as constant PAYMETH.
Lastly, you can control the list display with the following criteria:
Status display : If you set this indicator, the system displays the items already dealt with in addition to the open items
The name of the display variant for the SAP List Viewer
Output
The system displays a list of each vendor's open items that have not yet been included in the vendor operation procedure. If you
have set the Status display indicator, the list also shows the items that have already been dealt with. If any errors occur while
the list is being generated, the elds are highlighted in red. To nd out what caused the errors, choose Error list .
From the output screen, you have the following options:
Activity User Action/Follow-On Actions
Access a customer's master record or a document Double-click the customer number or the document number.
Find the best interest rate for the vendor operation procedure Select the items you want and choose Find best interest rate .
Then, in the dialog box, enter the number of days that you want to
extend the due date by (for example, 20). The bank values, interest
rates, and amounts are then displayed in the list.
Assign a particular bank's interest rate to an item Select it and choose Interest rate overview . Then, in the dialog
box, double-click the bank you want. If you have not already used
the best interest rate function, you must also enter how many days
you want to extend the due date by. Again, the bank values, interest
rates, and amounts are displayed in the list.
Create a vendor operation document for an item Select the item and choose Create vendor operation document .
The document number is displayed in the list. You cannot process
the item further.
Reverse the last activity that you have carried out Choose Undo . If you undo the creation of a vendor operation
document, the documents are reversed. To this end, a dialog box
appears, in which you enter the reason for the reversal. Choosing
Undo a second time reverses the reversal.
The other icons are part of the standard SAP List Viewer functions and are used to format the list layout.
Processing Bank Information
Use
The last step in the vendor operation procedure involves importing information from the bank – return les ( arquivo retorno ) –
and clearing the items.
Prerequisites
Ensure you have made all the required Customizing settings . In particular, note the special suffixes you need to use when you
de ne the posting rules.
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Procedure
To import the les, from the SAP Easy Access menu, choose Accounting Banks Incomings Bank Statement Import .
1. Import the rst return le, which is the bank's con rmation of the vendor operation transaction, as well as the payment
you requested.
2. Depending on the payment scenario , import the les as follows:
1. If the customer pays as agreed, import the second return le, which clears the vendor operation document. It has the
return code ( código de movimento ) 06, for payment.
2. If the customer does not pay (scenario 2), import the second return le, which has the return code 30, for overdue
payments. Importing this return le clears the vendor operation document, cancels the bank con rmation return le (the
rst le you imported from the bank), and reverses the original invoice.
Example
You have de ned your posting rules in Customizing with the special suffixes (V1, V2, and ER) to distinguish the return les
relating to vendor operation.
In step 1 above, your bank informs you of credit data in the rst return le with the return code 02. You import the le, and the
system posts the data with posting rule 02V1 (as you have de ned in Customizing); this clears the original invoice. The
algorithm is 30.
In the case that your customer pays the bank (step 2a), your bank then informs you of your customer's payment in the second
return le with the return code 06. You import the le and the system uses posting rule 06V2 to clear the vendor operation
document. The algorithm is 30.
If your customer does not pay the bank (step 2b), the bank informs you of overdue items with a return code 30. You import the
le, and the system uses posting rule 30V2 to clear the vendor operation document, and posting rule 30V2ER to post a new
invoice including bank interest (simple posting without algorithm).
See also:
Electronic Account Statement
Posting and Clearing
Payment Scenarios
When you arrange a vendor operation agreement for your customer, one of two payment scenarios can occur:
Scenario 1: Customer Pays Bank as Agreed
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You sell the goods to your customer and enter a standard invoice (1). You then set up a vendor operation agreement with a bank
you select. You send the bank the payment request (2), and the bank in turn sends the customer a boleto for making the
payment (3); alternatively you can send the customer the boleto yourself (instead of the bank doing it), if that is your
procedure. You receive immediate payment from the bank (referred to in Brazil as "payment on sight", pagamento à vista ) (4),
and the customer pays the bank, as agreed upon in the payment terms (5). The bank sends you con rmation of the customer's
payment (6).
Scenario 2: Customer Defaults on Payment to Bank
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The second scenario is similar to the rst one, except that the customer does not pay the boleto to the bank as agreed. In step
5, the bank informs you of the customer's overdue payments, and you pay the bank the overdue items (6) – since you are
guarantor for the nancing arrangement. The customer then pays you the overdue items (7).
Accounts Payable (FI-AP)
Use
The Accounts Payable (FI-AP) component covers the most important laws and business practices speci c to Brazil. The
following documentation describes these aspects of the component. For generic information about FI-AP, see Accounts
Receivable and Accounts Payable: Overview.
Features
Local version Brazil supports fatura creation and payments in local currency via prenumbered checks, payment list ( bordero )
and DME les ( arquivo remessa ). It also supports the optional processing of received boletos.
Vendor Master (Brazilian Fields)

Some elds in the vendor master are designed speci cally for Brazil, while others are of a more generic nature, but have a
particular use for Brazil. All the elds that are relevant to Brazilian vendors are described below.
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For more information, see What Data is Contained in the Vendor Master Record?
General Data
The tax region is displayed in the Jurisdict. code (Tax jurisdiction code) eld on the Address screen. When you enter the region,
the system automatically determines the tax region.
Enter data as required on the Control screen:
Tax number , in the Tax Number 1 or Tax Number 2 eld
State tax number (i nscrição estadual ), in the Tax Number 3 eld
Municipal tax number ( inscrição municipal ), in the Tax Number 4 eld
Tax split
If you set this indicator, the system posts half of the calculated IPI value as deductible input tax, and deducts the other half from
the inventory posting or the posting to an expense account. You generally set this indicator for wholesale vendors who do not
pay IPI (see IPI ).
Tax base
In Logistics Invoice Veri cation, the system calculates the ICMS tax value with a reduced tax base for freight charges only.
Brazilian law stipulates a reduced tax base of 80% of the transport invoice (conhecimento). Enter tax base 1 if the carrier is to
receive an 80% ICMS base reduction.
Company Code Data
For vendors that send boletos, you should maintain your payment terms with a payment block, by setting the Payment block
indicator.
See also:
Creating a Vendor Master Record Centrally
Direct Debit Authorization
Use
In Brazil, banks use Direct Debit Authorization (DDA) to increase the overall efficiency of banking services. DDA enables
customers to access and pay bills in the electronic format. This process replaces paper boletos with electronic boletos (e-
boletos) thereby signi cantly reducing the number of paper payment slips issued by the companies or their banks. DDA is a
more secure, efficient, and a convenient method for handling payments.
Prerequisites
The buyer has chosen a bank as the electronic buyer (e-buyer) and has registered this bank with the Interbank Chamber of
Payments (CIP).
Process
In the DDA process, the company that issues boletos is the seller and the company that pays is the buyer.
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DDA includes the following steps:
1. Sellers register the electronic payment slips (e-boletos) in their banks
2. Seller’s bank checks if the buyer is an e-buyer
3. If buyer’s bank is registered with CIP, seller’s bank sends payment slips relevant to that buyer to CIP
4. CIP stores the payment slips
5. Banks chosen by the e-buyer check CIP for electronic payment slips and retrieves the payments slips relevant to that
buyer
6. Buyer’s banks present these electronic payment slips to the buyer
7. Buyer pays the seller through any of its house banks using the electronic bank format for payments
8. Once the payment le reaches CIP, it informs all banks about the status of payment
The following diagram indicates the main entities involved in DDA:
DDA: Bank Communication Scenario
The following diagram gives you a detailed description about the ow of information between the participating companies'
banks for payments based on DDA.
In this example, you have the following entities:
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Company A is the buyer and its bank is Bank A
Company B is the seller and its bank is Bank B
CIP is the intermediary organization between the companies' banks (Bank A and Bank B)
More Information
Processing of Incoming DDA Files
Processing of Incoming DDA Files
Use
In Brazil, the system enables you to handle payments based on Direct Debit Authorization (DDA). The incoming DDA le from
the buyer’s bank contains details of all electronic payment slips or electronic boletos (e-boletos) for which the buyer needs to
pay the seller (vendor). This incoming le also has the required information to generate bar codes. The system processes
outgoing vendor payments only if vendor invoices in the buyer’s system are updated with the bar codes generated from the
incoming bank le. Therefore, the system updates vendor invoices with the bar code information available in the boletos issued
for that purchase.
Features
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For local version Brazil, the system enables you to do the following activities:
Generate bar codes
The system generates a 47-digit bar code from the information available in the incoming le.
 Note
Itau and Febraban
The incoming les from Itau and Febraban contain segment G. The system generates a 44-digit bar code from
the various elds available in this segment such as bank key, currency, free eld, maturity factor, and
document amount. These elds, along with the control digits and the bar code verify digit, form the 47-digit bar
code.
Bradesco
The incoming le from Bradesco contains a transaction register. The system generates a 47–digit bar code
from the various elds available in the transaction register.
Retrieve vendor invoices
The system retrieves vendor invoices in the buyer’s SAP system based on the information available in the incoming le.
The incoming le from the buyer’s bank contains one of the following information:
Invoice number
Collection document number / Bills of Exchange payment request number
Nota scal number
With this information, the system traces the relevant vendor invoice and then updates it with the generated bar code.
Update vendor invoices
The system compares the following elds in the incoming le and the vendor invoice:
CNPJ number
Due date
Document amount
If the values of all these three elds in the incoming le are the same, the system updates the open vendor invoices with
bar codes and includes these vendor invoices in the next payment run. If the values are different, the system displays
these invoices in an error log.
The DDA Details for Brazil (RFFOBR_DDA) report displays the DDA details. The status message S or E displayed against each
row on the report output screen helps you identify whether the corresponding vendor invoice in the system is updated with the
bar code or not. The status message S indicates that DDA processing is complete and the vendor invoice is updated with the
bar code, whereas the status message E indicates that DDA processing is not successful.
Post Processing of DDA Files
During this phase, you can process all vendor invoices that are not updated with the bar code information. You can lter all
entries with the status message E on the report output screen and can correct the corresponding vendor invoices in the
system. To navigate to the vendor invoices in the system, double click these entries on the report output screen. Once you
correct these vendor invoices, select the corrected rows with red status icons on the report output screen and choose the Post
Processing button. The system compares the CNPJ number, due date, and the document amount of the selected entries with
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the corresponding vendor invoices in the system. If the values of these elds match, the system updates these vendor invoices
with the bar code information and then changes the status icon from red to green and the status message from E to S.
More Information
Direct Debit Authorization
CNPJ Number
Payment Transactions
Local version Brazil supports the following payment transactions:
Payments in local currency by:
Prenumbered checks
Payment list (bordero)
DME les (Arquivo remessa).
Fatura creation
The system also supports the optional handling of received boletos.
Bank Transfers
Use
You use this function to make payments in the form of bank transfers. The system generates payments in one of the following
forms:
Payment list ( borderô )
In this case, you send your bank a list of all vendor payments outstanding, and the bank transfers the payments to the bank
accounts of your vendors.
Data medium exchange (DME) le
You send a DME le to your bank, which contains all payment information.
Both methods generate the same payment information for the banks; the only difference is that for the second method, the
information is sent electronically. In addition, banks require an additional speci cation regarding the form of payment , which
the system transfers to the payment list or DME le.
Prerequisites
Maintain the following information in Customizing for Financial Accounting , under Accounts Receivable and Accounts
Payable Business Transactions Outgoing Payments Automatic Outgoing Payments Payment Method/Bank Selection
for Payment Program
Set Up Payment Methods per Country for Payment Transactions
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The system comes complete with payment method U ( Transfêrencia ), which is already set up to run the print program for
printing a payment list or generating a DME le.
If you create new payment methods for bank transfers, you must specify the print program RFFOBR_U . Refer to the online
documentation of the print program for complete details on how to customize bank transfers.
Set up Payment Methods per Company Code for Payment Transactions
Here you assign SAPscript forms to the payment method. Double-click the payment method and enter the forms under Form
data .
J_1B_BORDERO for the payment list
J_1B_DME for the DME accompanying sheet
Set Up Paying Company Codes for Payment Transactions
When you run the print program, you have the additional option of printing payment advice notes for your vendor. If you want to
do this, specify the form J_1B_AVIS for each paying company code.
See also:
Payments
Form of Payment
When you make your payment by bank transfer (via payment method U), Brazilian banks require additional information about
the form of payment. In the table below, you see the common Brazilian forms of payment that the system supports. Banks
require the respective key to be printed in the coding line of the payment list or DME le accompanying sheet.
Brazilian Forms of Payment
Key Form of Payment (Portuguese) Description
01 Credito em Conta Corrente Credit the current account, where your

house and partner banks are the same
02 Cheque Pagamento Payment by check, where your house bank

issues a check to payee
03 Documento de Credito Bank credit document, where your house

and partner banks are different
10 Ordem de Pagamento a Disposição Payment order, where the payee receives

payment at a branch of the house bank
30 Titulo nosso banco Payment with boleto issued by the house

bank
31 Titulo outro banco Payment with boleto issued by bank other

than the house bank
Activities
If you need to make payments for forms 02 or 10, you must create separate country-speci c payment methods in Customizing
for Financial Accounting , under Accounts Receivable and Accounts Payable Business Transactions Outgoing Payments
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Automatic Outgoing Payments Payment Method/Bank Selection for Payment Program Set Up Payment Methods Per
Country for Payment Transactions . You can copy the delivered payment method U, and you then enter 02 or 10 in the Key in
code line eld for the respective payment method.
You do not need to do anything for the other forms; the system selects them automatically, as described below.
Selection of Form
For forms 01, 03, 30 and 31, the system uses payment method U that is delivered. In these cases, the system automatically
determines the form of payment based on conditions involving the banks and the barcode number:
Description of banks Entry in eld Barcode nr. Payment form selected
House and partner banks are the same No 01
House and partner banks are different No 03
House bank and boleto-issuing bank are the Yes 30

same
House bank and boleto-issuing bank are Yes 31

different
For payments that do not involve the boleto payment method – forms 01, 02, 03 and 10 – any entry you make in the Key in code
line eld overwrites the automatic selection.
If, however, you enter the eld Barcode number into the open item, the system selects payment form 30 or 31 based on the
conditions above, and the eld Key in code line is of no relevance.
House banks and partner banks are identi ed by the rst three digits of the bank number. The bank that issues the boleto is
identi ed by the rst three digits of the speci ed barcode number.
 Note
Note that Banco Bradesco does not offer form 10, and it uses form 31 even if the house bank and boleto-issuing bank are the
same.
Data Medium Exchange (DME)

You can generate payment les in payment medium formats and send the DME les (in Portuguese, arquivo remessa) to the
bank.
DME User ID (Codigo de Empresa)
De nition
A bank-internal code required by some Brazilian banks for data medium exchange (DME).
Use
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The DME user ID is called the codigo da empresa in the bank le layout. It is used, for example, for Banco Bradesco and is
particularly important for DME le reception from the bank since the system makes the link to the relevant general ledger bank
accounts via the DME user ID.
You can maintain DME user IDs in Customizing for Financial Accounting , by choosing Bank Accounting Business
Transactions Bill of Exchange Transactions Bill of Exchange Receivable Present Bill of Exchange Receivable at Bank
De ne DME User IDs.
In this activity, you specify the house bank, account ID, and DME identi cation, but leave the payment method blank.
 Note
You can only maintain one account number for each DME user ID. If you have several accounts at one bank, you must specify
a different DME user ID for each account.
Document Number (Seu Número)

For payments processing in Accounts Payable (FI-AP), Brazilian banks require the document number of the document
generated by the payment program. In the system, this is referred to as the Seu Número .
Boleto Payments
The following forms of payment are used when a boleto is involved in the payment. Note the required maintenance.
Form of Payment: With Boleto
Form of Payment Code Explanation Maintenance
Titulo nosso banco 30 Payment with boleto issued by Enter the barcode number
the house bank
Titulo outro banco 31 Payment with boleto issued by Enter the barcode number
bank other than the house bank
All debit notes with invoice reference are processed by the automatic payment program together with the original item, that is,
one payment is created for both the item and the related credit memo. If the bank layout requires an entry in the Rebate eld
(for Banco Itaú, for example), the credit note amount is entered in the corresponding bank le as a rebate belonging to the
original item, reducing its amount. If there is more than one credit note related to one item, the rebate of this item is the sum of
all those credit notes.
Individual Payment
Each open item must be paid individually because there is always one boleto per open item (except for debit notes with invoice
reference).
Non-Boleto Payments
The following forms of payment are used when a boleto is not involved in the payment. Note the required maintenance.
Forms of Payment: Without Boleto
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Form of Payment Code Explanation Maintenance
Credito em Conta Corrente 01 Credit the current account, 1) Key in payment method is 01
where your house and partner
2) If blank, house bank and
banks are the same
partner bank are the same
Cheque Pagamento 02 Payment by check, where your Key in payment method is 02

house bank issues a check to
payee
Documento de Credito 03 Bank credit document, where 1) Key in payment method is 03

your house and partner banks
2) If blank, house bank and
are different
partner bank are different
Ordem de Pagamento a 10 Payment order, where the payee Key in payment method is 10
Disposição receives payment at a branch of
the house bank
Grouped Payments
For payments via DOC or OP (that is, without boletos), you may want to pay several items grouped together in one payment.
Local version Brazil offers various options to meet this requirement automatically:
If Then
Individual payment in vendor/customer master is set All items for this vendor/customer are always paid individually
regardless of any further speci cations.
Individual payment in vendor/customer master is not set, and the

If you enter the barcode number Individual
payment method is not explicitly entered in the open item
payment
If you do not enter the barcode number No

individual payment
You enter the payment method explicitly in the open item

If payment method is agged 'Single payment for
marked item' Individual payment
If payment method is not marked 'Single payment for

marked item' No individual payment
Checks
Use
The system supports the use of prenumbered checks, which is a common method of payment in Brazil.
Customizing
In addition to the standard Customizing settings for lots and check number ranges, you maintain the following information in
Customizing for Financial Accounting , under Accounts Receivable and Accounts Payable Business Transactions Outgoing
Payments Automatic Outgoing Payments Payment Method/Bank Selection for Payment Program
Set Up Payment Methods per Country for Payment Transactions
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The system comes complete with payment method C ( Cheque ), which is already set up to run the print program for printing a
prenumbered check and a payment list ( borderô ).
If you create new payment method for checks, you must specify the print program RFFOUS_C . Refer to the online
documentation of the print program for complete details on how to customize payments by check.
In addition, the maintenance of print program RFCHKN00 in the setup of the payment run provides you with detailed
information on used check numbers and related payments. For more information, refer to the program documentation.
Set up Payment Methods per Company Code for Payment Transactions
Here you assign a SAPscript form to the payment method. Double-click the payment method and enter the form J_1B_CHECK
(prenumbered check) under Form data .
Set Up Paying Company Codes for Payment Transactions
When you run the print program, you have the additional option of printing payment advice notes for your vendor. If you want to
do this, specify the form J_1B_AVIS for each paying company code.
See also:
Payments
Fatura
A fatura summarizes notas scaís of a certain period. You can post a fatura by choosing Accounts Receivable Others
Internal transfer posting With clearing .
For more information on this transaction, see the standard documentation.
Instant Payment Processing (PIX)

In Brazil, a new instant payment method is introduced that enables electronic money transfers in real-time available 24/7
between accounts without any intermediary. The system that enables this electronic money transfer is called PIX, and falls
under the responsibility of the Central Bank in Brazil.
For PIX payments, you can:
Use a PIX key
Use a QR code generated by the payment system (PIX)
Payments via the PIX system are enabled for batch processing for both outgoing and incoming payments as described in:
Processing Outgoing PIX Payments
Processing Incoming PIX Payments
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Related Information
Instant Payment Scheme (PIX) Processing in Contract Accounting
Processing Incoming PIX Payments

Explains the process of managing PIX payments during payment processing in Accounts Receivable (FI-AR).
Prerequisites
You have completed the activities that are described in Prerequisites for Incoming PIX Payment Processing.
Context
When you sell any goods or services, you create customer invoices in your system, and send the payment data in a payment le
(in format BR_FEBRABAN_750 (CNAB 750)) to the bank or payment system to request a dynamic QR code. The payment
system generates a QR code, and sends the data back to you in a return le. You can then print the invoice with the QR code and
send it to your customer.
As soon as the payment is completed, you receive the payment status information from the bank.
Procedure
1. De ne PIX keys and assign them to a house bank account.
When you send payment information to the bank, in this step you de ne which PIX key is used to generate the QR code
and where the payment shall be sent. When you receive the bank statement the PIX key identi es the house bank that
the system uses for processing the bank statement.
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You can de ne PIX keys with a validity period that you want the system to use during payment le processing. You can
assign more than one PIX key to the same house bank and account ID, but you can choose only one PIX as the leading key
in a certain validity period. The system uses the leading PIX key during the payment le creation (in format
BR_FEBRABAN_750).
You can de ne the PIX keys for bank accounts in Customizing for Financial Accounting under Bank Accounting Bank
Accounts Country-Speci c Functions Brazil De ne PIX Keys for Bank Account .
2. Assign the relevant ISPB code to a company code and house bank.
You can make the assignment in Customizing for Financial Accounting under Bank Accounting Bank Accounts
Country-Speci c Functions Brazil Assign ISPB Codes to Bank Codes .
3. Post a customer invoice.
When you post customer invoices, use the payment method you created with payment medium format
BR_FEBRABAN_750.
4. Execute a payment run using transaction F110.
5. Create payment media.
After you have executed a payment run, the Bill-of-Exchange (BoE) payment request is created and updated in the
customer invoice.
6. Send the payment le to the bank.
The bank sends back a return le (CNAB750) that can contain one of the following information:
QR code for the invoice
Rejection with error codes
7. Import the return le that contains either the QR code or a rejection.
The return le can be:
QR code update return le containing the QR code in segment 4
When you import the le, the system updates the QR code in the relevant FI document. If you set the
correspondence, you can print out the invoice contianing the QR code.
Rejection return le with up to 10 error codes explaining the reason for rejection of the QR code creation
Import the received return le into your system using the Bank Statement: various Formats (SWIFT, MultiCash, BAI...)
(RFEBKA00) report (transaction code FF_5). Proceed as follows:
a. Select the Import Data checkbox
b. Choose FEBRABAN CNAB 750 in the XML or Bank Speci c Format eld
c. Choose the location of the le in your computer in the Statement File eld and also select the Workstation upload
checkbox
d. Choose Post Immediately radio button and the Assign Value Date checkbox in the Posting parameters group box
e. Enter a BELNR number interval as the algorithm
f. Select the Print bank statement and the Print posting log checkboxes
g. Execute the report
8. Send the invoice to your customer.
Your customer pays the invoice based on the data in the QR code.
9. When the payment is completed by the customer, the banks sends a return le (in CNAB750 format) with the details of
the successful or rejected incoming payment.
The return le can be:
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Com rmation return le containing data on the con rmation of payments in segment 5
Rejection return le with up to 10 error codes explaining the reason for payment rejection
10. Import the return le.
Prerequisites for Incoming PIX Payment Processing

Explains the prerequisite settings for the processing of incoming PIX payments.
You have completed the following activities:
You have created a payment method for your incoming payments in transaction FBZP with the following settings:
You selected the Bill/exch.pyt.req radio button in the Payment method classi cation section.
You entered value 'R' in the Sp. G/L Ind. B/Ex. B/Ex.Pmt.Req eld in the Required master record speci cations
section.
You entered BR_FEBRABAN_750 as the format in the Payment medium section.
You have de ned error codes for rejection return les in Customizing for Financial Accounting under Bank Accounting
Business Transactions Payment Transactions Electronic Bank Statement Error Codes .
You have set up correspondence if you want to print out the invoice that already contains the QR code after you
imported the CNAB750 return le the bank sent to you
So that you can display or print the received QR code for the invoice, set up correspondence by assigning a
correspondence program and variant to your company code as follows:
1. Allocate the RFKORDPIX_PDF correspondence program and the BR_PIX_QR variant to your company code with
correspondence type SAPBR.
You can do so in transaction OB78, which is in Customizing for Financial Accounting under Accounts Receivable
and Accounts Payable Business Transactions Closing Count Balance Con rmation Correspondence
Make and Check Settings for Correspondence Assign Programs for Correspondence Types .
 Note
We deliver the correspondence program and the variant.
2. De ne trigger points for call options when correspondence is called.
You can do so in transaction OB79, which is in Customizing for Financial Accounting under Financial Accounting
Global Settings Business Transactions Closing Count Balance Con rmation Correspondence Make and
Check Settings for Correspondence Determine Call-Up Functions .
3. Assign the template PDF form IDFI_PAYM_BR_PIX_PDFPDF to the RFKORDPIX_PDF print program in
Customizing for Financial Accounting under Financial Accounting Global Settings Correspondence PDF-
Based Forms De ne Form Names for Correspondence Printing .
Processing Outgoing PIX Payments

Explains the process of managing outgoing PIX payments for vendor invoices during payment processing in Accounts Payable
(FI-AP).
Prerequisites
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You have created a payment method for your outgoing payments in Customizing for Accounts Receivable and Accounts
Payable under Business Transactions Outgoing Payments Automatic Outgoing Payments Payment Method/Bank
Selection for Payment Program with the following settings:
You selected the Bank transfer radio button in the Payment method classi cation section.
You selected the Bank Details and the Account Number Required checkboxes in the Required master record
speci cations section.
You entered BR_FEBRABAN_A as the format and PIX as the format supplement in the Payment medium section.
Context
After you purchased any goods or services, the supplier sends you the invoice that contains either the QR code with the PIX link
(dynamic QR code) or the transaction ID with the supplier's account details (static QR code) that you need to use during the
payment process. The following process explains to you the steps of con guring the system and the PIX data transfer from the
master data through document posting and payment run to the payment media. When you create the payment media, the
system lls out segments J and J52 or segments A and B with the PIX key in the payment le.
Procedure
1. Run the Create Bank for PIX (IDFI_PIX_CREATE_BANK) report to create the internal banks with type 5 (Payment
System).
The report creates the master data of the following technical banks and inserts them in the BNKAIN database table with
eld BINTK = 5 (Payment System):
PIX_CPF
PIX_CNPJ
PIX_EMAIL
PIX_PHONE
PIX_RANDOMKEY
2. Set up the supplier master data in the Manage Business Partners app/Business Partner (BP) transaction.
On the Payment Transactions tab, enter the bank country/region, bank key, the technical bank account with the required
<ALIAS> pre x, and enter the PIX key in the Account Holder eld (the CNPJ or CPF numbers can also be used as PIX
keys). Note that the maximum character limitation in the Account Holder eld is 60 characters.
However, an e-mail address can exceed the character limitation. In this case, enter the rst 60 characters in the Account
Holder eld, and enter the rest of the characters starting with an 'At sign' (@) in the Reference Details eld - see the
second example below:
 Example
ID/Bank C/R Bank Key Bank Account Reference Details Account Holder
Type
0002 BR PIX_EMAIL <ALIAS>123456 emailaddress@email.com
0003 BR PIX_EMAIL <ALIAS>234567 @1234567891234.BR rstsixtycharacters@oftheemailaddress
For PIX transfers to bank accounts, you can enter the bank account data on the Payment Transactions tab as follows.
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For all PIX payments, the bank account type data is required. The PIX key contains the data that identi es the bank
account type (01-Current account, 02-Payment account, 03-Savings account) and inserts the data in segment B in the
payment le (in format BR_FEBRABAN_A).
For information, see Bank Data.
 Example
Four ways of entering bank account data for business partner
ID/Bank Type C/R Bank Key Bank Account Control Key
0001 BR XXXYYYY 123456789012-AB C (this is the validation digit

for the agency)
'A' is the validation digit for
the account
'B' is the validation digit for

the account and agency
0002 BR XXXYYYY 123456789012-A C (this is the validation digit

for the agency)
'A' is the validation digit for
the account
0003 BR XXXYYYY 123456789012 CD
'C' is the validation digit for

the agency
'D' is the validation digit for

the account
0004 BR XXXYYYY 123456789012 C (this is the validation digit

for the agency)
If the business partner does not have a PIX key, or the proper PIX key is not selected, the system must identify the
account type in a different way that can then be inserted in segment B in the payment le (in format BR_FEBRABAN_A).
You can provide the necessary account type data on the Payment Transactions tab by entering 2 additional characters
to the bank account separating them with a slash ('/') sign. Any 2 characters which are after the '/' sign are used as
account type and are inserted in segment B in the payment le.
 Example
Additional characters to identify account types
ID/Bank Type C/R Bank Key Bank Account Control Key
0001 BR XXXYYYY 123456789012-AB/01 C
0002 BR XXXYYYY 123456789012-A/01 C
0003 BR XXXYYYY 123456789012/02 CD
0004 BR XXXYYYY 123456789012/03 C
3. Post business partner documents.
You can post business partner documents with PIX info in the following two ways using transaction Enter Vendor Invoice
(FB60) or Post Document (FB01):
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You choose the relevant partner bank type that already contains the PIX keys in the Part. Bank eld (PIX
transfer).
You choose the PIX Info button in the top icon row, and enter data as follows:
If you received a static QR code, enter the transaction ID in the popup window.
The system adds the PIX key and the transaction ID in the payment le that is generated later, calling the
data from the supplier's master data.
If you received a dynamic QR code, enter the PIX URL in the popup window.
The system adds the data from the PIX URL to the payment le that is generated later.
The PIX URL and the transaction IDs are stored during document posting and are then read from the relevant
database table (IDFI_PIX_DOC) during the payment media creation.
4. Execute a payment run using transaction F110.
5. Create payment media.
The payment le is generated using payment medium format BR_FEBRABAN_A (CNAB240) as follows depending on
which document posting option you have chosen:
When you posted documents with a PIX key de ned by the partner bank type and the transaction ID, the system
enters the information needed for clearing in segment A and enters the alias in segment B in the payment le
with format BR_FEBRABAN_A (CNAB240).
When you posted documents with the QR code (PIX URL), the system enters the information needed for clearing
in segment J and enters the PIX URL in segment J52 in the payment le with format BR_FEBRABAN_A
(CNAB240).
6. Send the payment le to the bank.
The bank executes the payments according to the information in the payment le and sends back a return le
(CNAB240) to the supplier.
7. Import the return le.
The return le contains payment con rmation or rejection data. So that the relevant open items can be cleared, import
the received return le into your system.
Use the Bank Statement: various Formats (SWIFT, MultiCash, BAI...) (RFEBKA00) report (transaction code FF_5) to
import the return le. Proceed as follows:
a. Select the Import Data checkbox
b. Choose Cobranca/Pagar Itau - Brazil in the Electr. bank statement format eld
c. Choose the location of the le in your computer in the Statement File eld and also select the Workstation upload
checkbox
d. Choose Post Immediately radio button and the Assign Value Date checkbox in the Posting parameters group box
e. Enter a BELNR number interval as the algorithm
f. Select the Print bank statement and the Print posting log checkboxes
g. Execute the report
Related Information
Bank Data
Instant Payment Processing (PIX)
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Bank Accounting (FI-BL)

Purpose
The Bank Accounting (FI-BL) component covers the most important laws and business practices speci c to Brazil. The following
documentation describes these aspects of the component. For generic information about FI-BL, see Bank Accounting (FI-BL)
Processing of Bank Files
Use
You use standard electronic bank statement functions to import DME les you receive from your bank. The system
automatically reads and processes les in the formats it supports ; this includes posting and clearing of open items in Accounts
Receivable (FI-AR) and Accounts Payable (FI-AP), including simultaneous processing of different forms of payment in FI-AP.
In Brazil, a company typically sends a DME le ( arquivo remessa ) to its bank to request it to perform collection or payment.
The bank con rms receipt of this le by sending a return le ( arquivo retorno ). The system enables you to clear open items
based on this return le.
 Note
If you already implemented SAP Note 3137377 and executed the Mark All RETORNO Records in FEBKO Table
(IDFI_BR_MARK_RETORNO_STMTS) report, the return le (RETORNO) records are marked with value 'RE' in the FEBKO
database table. This value enables the separate processing of bank statements and return les in the bank statement
monitor and also in cash management.
Prerequisites
See Customizing for Incoming DME Files .
Activities
To process incoming les, from the SAP Easy Access screen, choose Accounting → Financial Accounting → Banks → Incomings
→ Bank Statement → Import, Reprocess, or Display.
You import a le following the standard procedure; note, however, the following entries for Brazilian formats:
Specify an electronic bank statement format:
B for collection (cobrança)/payments (pagar) for Itaú or Febabran
1 1 for collection/payments for Bradesco
You may want to create a report variant for each of the formats you work with, and one each for collection and payment.
Enter a name for the le in the Statement le eld. Unlike other formats, in Brazil you do not enter a name in the Line item le
eld.
Related Information
Incoming Payment File Processing
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Bank File Formats

In Brazil , it is common for companies to communicate with banks by sending DME les (in Portuguese, intercâmbio de dados
por suporte magnético ). By doing so, they can trigger both collection and payments for Accounts Receivable (FI-AR) and
Accounts Payable (FI-AP) respectively.
The system supports outgoing (sent to your bank) and incoming (received from your bank) DME les for the following banks:
Itaú
Bradesco
Febraban, a Brazilian association of banks that use the same format
See also:
Customizing Incoming DME Files
Delivered Settings
The system comes complete with basic Customizing settings that enable you to clear open items based on return ( retorno )
les in the SISPAG (Itaú) and PFEB (Bradesco) formats. This includes the de nition of SAP-internal transaction codes (in the
form of posting rules), and the assignment of external transaction codes used in the SISPAG format to the posting rules.
Settings for the Febraban/CNAB format are the same as for SISPAG format.
 Tip
If you need to create new external transaction codes, note that there is a Brazilian -speci c interpretation algorithm, 030,
which searches for line items via the document number, year, and line item.
Additional Settings
Error codes
You need to de ne the possible error codes that the bank can send in the le; the error codes, provided by the bank, explain why
speci c items were rejected by the bank. The texts that you de ne here are then displayed on the note to payee. You de ne
error codes in Customizing for Financial Accounting (FI), under Bank Accounting → Business Transactions → Payment
Transactions → Electronic Bank Statement → De ne Error Codes .
Account for bank charges
In Customizing for FI, choose Accounts Receivable and Accounts Payable → Business Transactions → Incoming Payments →
Incoming Payments Global Settings → De ne Accounts for Bank Charges (Customers).
Posting rule and account for interest (see Interest on Overdue Items )
Incoming Payment File Processing

Bank statements are les used to import payment data received from the bank.
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You can use the Bank Statement: Various Formats (SWIFT, MultiCash, BAI...) report to manually import bank statements.
To access the report, from the SAP Easy Access screen, choose Accounting → Financial Accounting → Banks → Incomings →
Bank Statement → Import. You can also choose the Reprocess or the Display transactions.
The following bank statement is available for Brazil:
Extrato Bancario (in CNAB240 format)
During the import of the bank statement, the system reads data as follows:
The bank statement number is read from eld 19.00 of the bank statement, whose values are located in positions 158-
163.
The external transaction is a concatenation of the values in elds 25.3E and 26.3E.
The external transaction can contain maximum 7 digits, from which the rst 3 digits are mandatory and are called from
eld 25.3E. The next 4 digits are optional and are called from eld 26.3E.
 Note
As a prerequisite, external transactions must be de ned in the Make Global Settings for Electronic Bank Statement
Customizing activity in Customizing for Financial Accounting (New) under Bank Accounting Business
Transactions Payment Transactions Electronic Bank Statement Make Global Settings for Electronic Bank
Statement .
 Example
You have the following records in the Make Global Settings for Electronic Bank Statement Customizing activity:
Transaction Type External Transaction +/- Posting Rule
CNAB240 1234567 + B03D
CNAB240 123 + B06D
You receive the following incoming le with seven lines where lines 3-5 are segment 'E' with the information lled in
positions 170-176:
Line 1. 341 … 0 …
Line 2. 341 … 1 …
Line 3. 341 … 3 … 1234567 ...
Line 4. 341 … 3 … 1233333 ...
Line 5. 341 … 3 … 3334444 ...
Line 6. 341 … 5 …
Line 7. 341 … 9 …
The system determines the posting rule for lines 3-5 as follows:
Line 3:
In positions 170-176, the report nds a full external transaction with value 1234567 and that the transaction
type is CNAB240. The report nds the B03D posting rule assigned to this external transaction in the Make
Global Settings for Electronic Bank Statement Customizing activity and uses it for posting.
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Line 4:
type is CNAB240. The report tries to nd a posting rule for this value in the Make Global Settings for
Electronic Bank Statement Customizing activity, but there is no such entry, so no posting rule is determined.
In this case, the report changes the posting rule to 123, taking the rst three characters of the whole external
transaction, and tries to determine the posting rule again. Since there is an entry in the Make Global Settings
for Electronic Bank Statement Customizing activity for the 123 external transaction, the report uses posting
rule B06D.
Line 5:
type is CNAB240. The report tries to nd a posting rule for this value in the Make Global Settings for
Electronic Bank Statement Customizing activity, but there is no such entry, so no posting rule is determined.
In this case, the report changes the posting rule to 333, taking the rst three characters of the whole external
transaction, and tries to determine the posting rule again. Since there is no such entry in the Make Global
Settings for Electronic Bank Statement Customizing activity, the report ends the processing of the incoming
le and raises an error message explaining that the posting rule could not be identi ed.
Related Information
Bank Data
Bank numbers, account numbers and corresponding control digits do not follow a standard pattern in Brazil. You can, however,
classify them according to the types described below.
Bank numbers
You enter bank numbers in the formatXXXYZ..Z, where:
XXX is the bank number (for instance, 341 for Itaú)
Y is the control digit for the bank number (for instance, 7 for Itaú)
Z..Z is the bank key with no leading zeros (for instance four digits for Itaú)
Bank account and control digits for bank and account number
Type Account Format Control Format Explanation
Itaú U…U X X = control digit for

combination of bank and
account
Bradesco U...U XY X = control digit for bank Y =

control digit for account
Other U...U-XY Z Z = control digit for bank XY =

control digits for account
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Note that for the type other , such as Banco Bamerindo, you must enter the account control digits directly in the account eld,
separated from the account number by a dash (-).
Asset Accounting (FI-AA)
Purpose
The Asset Accounting (FI-AA) component covers the most important laws and business practices speci c to Brazil . The
following documentation describes these aspects of the component. For generic information about FI-AA, see Asset Accounting
(FI-AA) .
Features
Country VersionBrazilenables you to meet reporting requirements relating to the law Controle de Crédito de ICMS do Ativo
Permanente (CIAP). The CIAP functions cover the 48-month depreciation of ICMS tax in conjunction with xed assets. Detailed
information can be found about the CIAP solution in the SAP Service Marketplace, under the Quick Link globalization; choose
Country Information Country-Speci c Documentation .
Its country template includes a sample chart of depreciation, 1BR, and the system calculates and applies the PIS and COFINS
social tax contributions.
Chart of Depreciation
De nition
See Chart of Depreciation .
Use
When you create a company code using the template for Brazil, you can use the chart of depreciation 1BR, which follows
Brazilian accounting requirements.
 Note
Chart of depreciation 1BR is a template and can only be used as a reference. You must then make additional settings based
on the individual structure and legal requirements for your company.
Financial Supply Chain Management (FIN-FSCM)
Purpose
The Financial Supply Chain Management (FIN-FSCM) component covers the most important laws and business practices
speci c to Brazil . The following documentation describes these aspects of the component.
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For generic information about FIN-FSCM, see SAP Financial Supply Chain Management (FIN-FSCM).
Features
Local version Brazil comes with functions for dealing with tax calculations for different products (swap, intercompany loans,
funds) as well as with balance sheet transfers in accordance with the Brazilian requirements.
Sales and Distribution (SD)
Purpose
The Sales and Distribution (SD) component covers the most important laws and business practices speci c to Brazil. The
following documentation describes these aspects of the component. For generic information about SD, see Sales and
Distribution (SD) .
Features
Country-Speci c Functions
Local version Brazil enables you to handle sales transactions so that they are taxed and documented according to Brazilian
requirements.
The system automatically transfers all relevant taxes and generates a nota scal from the Brazilian future-delivery process, as
well as from the following SD standard business processes:
Creation of a sales order in Billing (SD-BIL)
Consignment
Third-party order processing
Returns and cancellations
Returnable packaging
Batches
Retroactive billing
Additional elds have been added to the customer master record to store data speci c to Brazil, and one-time customers are
also supported.
Country Template
The country template for Brazil comes with sample pricing procedures and all SD tax codes required by them.
Customizing
The following documents describe the required customizing in Sales and Distribution (SD) for Brazil.
Sales and Distribution: Customizing

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The following table provides an overview of all required Customizing activities related for Sales and Distribution (SD) functions
for Local Version Brazil. The activities are listed in the same order in which they appear in the Implementation Guide (IMG).
Customizing Activity IMG Path: Sales and Distribution Billing Billing

Documents Country-Speci c Features Country-Speci c
Features for Brazil
Assign nota scal types Specify Nota Fiscal Category
Maintain nota scal header texts Maintain Automatic Nota Fiscal Header Texts
Maintain sales item categories Maintain Sales Document Item Category
Maintain billing item categories Maintain Billing Document Item Category
Maintain billing document types Maintain Billing Types
Maintain special pricing conditions Special Conditions for Pricing
Maintaining Conditions for Taxes in SD
Use
In addition to the various Customizing activities you must complete for local version Brazil, you also need to maintain additional
data in Sales and Distribution (SD) for the system to calculate taxes correctly in SD.
For tax processing in SD, the system requires an assignment between the following data for the condition type IBRX (Brazil tax
calculation):
Customer tax classi cation
Material tax classi cation
Tax rate
Financial Accounting (FI) tax code
You also need to maintain rates for additional condition types that are used for Brazilian tax calculation.
Procedure
Enter the following data in all system clients that Brazilian functions are required in, including client 000. All entries listed below
are valid for an unrestricted length of time, meaning that the system automatically lls the Valid to date with 12/31/9999.
1. From the SAP Easy Access screen, choose Logistics Sales and Distribution Master Data Conditions Select
using condition type Create .
2. Enter condition type IBRX .
3. The Create Brazil Tax Calc. Condition (IBRX): Fast Entry screen appears.
4. Enter data as follows:
Tax Classi cation for Tax Classi cation for Rate Tax Code
5. Customer Material
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0 1 leave blank S0
0 2 leave blank S0
1 1 100.000 SD
1 2 100.000 SI
2 1 100.000 SZ
2 2 100.000 SI
6. Choose .
7. Choose .
8. For each of the following condition types, enter data as speci ed:
9. Condition Type Country Rate
ICMO BR 100-
ICSO BR 100-
IPIC BR 100 (no minus)
IPIO BR 100-
10. Choose each time, and repeat step 6 for each condition type.
Customizing Returns, Complementars, and Corrections with

Batch
Use
To prevent warnings from occurring when you create returns, complementars, and corrections with reference to a billing
document containing batch sub-items, you need to make the Customizing settings described below.
Procedure
1. In Customizing for Sales and Distribution (SD), choose Sales Maintain Copy Control for Sales Documents Copying
Control: Billing Document to Sales Document .
You need to make settings for the following sales document types, all of which have the reference billing document type F2B
(Brazil Nota Fiscal): CRB, CXB, DRB, DXB, REB, and ROB. Repeat steps 2-5 for each of the sales document types.
1. Select the row containing the sales document type, which you see in the Tgt (Copying control: target sales doc. type)
eld.
2. Double-click Item in the left-hand navigation structure.
3. The Item: Overview screen appears.
4. Double-click the item category TBB .
5. The Item: Details screen appears.
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6. Specify the copying requirement 302 Do not copy item .
Material Master (Brazilian Fields)

The material master record has been enhanced to store additional data relevant to materials in Brazilian company codes. The
system primarily uses this information to determine the CFOP code , calculate relevant taxes, and generate the nota scal
when you procure materials or transfer stock.
The following data is contained on both the Foreign Trade Import and Foreign Trade Export tabs:
Control code
This eld contains the NCM code. The system uses the NCM code to calculate taxes, and it is then printed on the nota
scal.
You can assign NCM codes to material groups in Customizing, under Cross-Application Components General
Application Functions Nota Fiscal NCM Codes Assign to Material Groups .
Material CFOP category
This eld contains the CFOP category for the material, which the system uses to determine the CFOP code during nota
scal generation.
The following elds, all of which are used to determine the CFOP code, can be found on the Accounting 2 tab:
Material usage
Here you enter the intended usage of the material, for instance, consumption.
Material origin
This value speci es whether the material was produced in Brazil or imported.
Produced in-house
If this indicator is set, the material was produced by the company (not procured externally).
See also:
Taxes
Customer Master (Brazilian Fields)

Some elds in the customer master are designed speci cally for Brazil, while others are of a more generic nature, but have a
particular use for Brazil. All the elds that are relevant to Brazilian customers are described below.
For more information, see Customer Master .
General Data
On the Address tab, the tax region is displayed in the Jurisdict. code (Tax jurisdiction code) eld. When you enter the
geographical region, the system automatically determines the tax region.
On the Control data tab, enter data as required:
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Tax number(s)
CFOP category
The system uses this value to determine the CFOP code when you enter a sales order, in order to create a nota scal in
ICMS tax law
IPI tax law
Whether the customer is exempt from IPI and/or ICMS
SubTrib group, a group of customers subject to the same SubTrib tax calculation
On the Payment transactions tab, you can specify an instruction key for duplicata processing and activate automatic collection,
both related to collection via DME (see Customizing Outgoing DME Files ).
Company Code Data

On the Payment transactions tab, set Single payment (Indicator: Pay all items separately?). This must be set since the system
creates a duplicata for each open item.
See also:
Creating a Customer Master Record Centrally
Nota Fiscal Integration into SD
Use
One of the primary features of Local Version Brazil is that it automatically generates a nota scal within the billing function of
Integration
The SD process is illustrated below, starting with the creation of a sales order and concluding with the generation of the
required notas scais.
Nota Fiscal Integration into SD Billing
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The system creates a nota scal for each billing document that is generated, these being invoices in the above example. A nota
scal is also generated from several other SD business processes; these are described in the following documentation.
Once a nota scal is generated, you can view and print it using the Nota Fiscal Writer . You can also view the nota scal by
branching directly to it from the billing document, by choosing the Accounting pushbutton; it either appears directly, or you
choose the nota scal from the list of displayed accounting documents.
Prerequisites
Before the system can generate the notas scais automatically, you must complete a number of Customizing settings .
Nota Fiscal Customizing in SD

To work with the nota scal in local version Brazil, you need to make a number of Customizing settings. Most of these are
general settings (see Customizing for Nota Fiscal under Cross-Application Components General Application Functions
Nota Fiscal ); however, there are a few settings that are speci c to the automatic generation of a nota scal from the billing
process in Sales and Distribution (SD). You need to:
Activate nota scal creation
Set up CFOP determination
Con gure nota scal texts
Con gure the transfer of nota scal values
Enable a nota scal split (if required)
SD calculates the relevant taxes and transfers them to the nota scal, for which tax settings are required.
Activating Nota Fiscal Creation in SD

For the system to create a nota scal item, you need to activate nota scal creation on three different levels. In Customizing for
Sales and Distribution (SD), under Billing Billing Documents Country-Speci c Features Country-Speci c Features for
Brazil
1. Specify Nota Fiscal Category
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Prerequisite to this activity: the sales document types for Brazil which are delivered via CATTs have to be de ned in the
system (see Customizing Settings Made Using CATT ).
For each sales document type that is relevant to nota scal creation, you need to assign a nota scal type, for example
N1, Nota Fiscal Outgoing. Most of the sales document types for Brazil are identi ed by BR in the description, for instance,
sales document type ORB for Standard Order BR.
2. Maintain Billing Types
For each billing type that is relevant to nota scal creation, you need to set the NF rel. (Nota Fiscal Relevance) indicator,
and specify additional information such as the partner ID (for instance RE, bill-to party) and the maximum number of
lines of text permitted for the header and line item.
3. Maintain Billing Document Item Category
For each combination of billing type and item category, you must activate nota scal creation by setting the NF
relevance indicator.
Setting Up CFOP Determination in SD
Use
To enable automatic nota scal creation, the system needs to determine the CFOP code during the sales process in Sales and
Distribution (SD). The system accesses the information mentioned below to determine the CFOP code in either the sales order
or the delivery, and it then transfers it to the billing document and subsequently the nota scal. If the system is unable to
determine a code using the CFOP determination table, you must enter one manually in the sales order or delivery.
Procedure
Customizing
Work through the Customizing activities under Cross-Application Components General Application Functions Nota Fiscal
CFOP Codes. .
You also need to assign the nota scal item type to the item category and sales order type, inCustomizing for Sales and
Distribution (SD), under Billing Billing Documents Country-Speci c Features Country-Speci c Features for Brazil
Maintain Sales Document Item Category.
See also:
CFOP Redetermination
Master Data
If a customer performs certain types of operation – for instance, it is an electric company or an agricultural customer – you
must enter a customer CFOP category in the customer master record, under General Data on the Control Data tab. The
system uses this information to determine the correct CFOP code.
CFOP Redetermination
Use
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As a result of legal changes generally valid as of a certain date, or due to special legislation in individual states within Brazil , the
system enables you to de ne CFOP versions and assign them to the CFOP codes as you require.
If a new version comes into effect, the system can redetermine the CFOP code for pending documents in Sales and Distribution
(SD). For example, you have already entered a sales order or delivery, a new CFOP version becomes valid, and you later process
billing: you need the new CFOP version in the billing document.
Prerequisites
The system redetermines the CFOP code following a version change if the new version is relevant for redetermination. You
de ne this in Customizing for CFOP versions, under Cross-Application Components General Application Functions Nota
Fiscal CFOP Codes De ne CFOP Versions , by setting the Redeterm. (Automatic CFOP Redetermination Following Version
Change) indicator.
You can overwrite the parameters for CFOP Determination in Customizing for Cross-Application Components, under General
Application Functions Nota Fiscal CFOP Codes Business Add-Ins (BadIs) Parameter Changes for CFOP Determination
.
Features
The system determines the CFOP code in the sales order or delivery, and as the table below illustrates, it only redetermines the
CFOP code if the indicator is set and a version change occurs. If a version change occurs and the indicator is not set, the system
copies the CFOP code as usual, which in this case would be the incorrect one.
RedeterminationIndicator Set Version Change Between System Response in Billing CFOPCorrect?

Order/Delivery and Billing
Yes No Copies CFOP from Yes

order/delivery
Yes Redetermines CFOP Yes
No No Copies CFOP from Yes

order/delivery
Yes Copies CFOP from No

order/delivery
Whether the CFOP is correct in the billing document depends, of course, on correct determination in the sales order or delivery
(automatic or manual entry), and correct Customizing of CFOP determination in Customizing for Nota Fiscal under Cross-
Application Components General Application Functions Nota Fiscal CFOP Codes .
Note that in the case of an incorrect CFOP code in the billing document, you cannot manually change it. If the billing document
is already saved, you have to cancel it as well as the corresponding nota scal. Then manually change the delivery or sales order,
and bill the delivery again.
Activities
If you want CFOP redetermination to occur automatically, set the redetermination indicator as described above.
 Caution
Because it is not possible to change the CFOP code manually in the billing document, we recommend that you set the
redetermination indicator for versions with caution – and only for a transition period during which a version change for
pending documents is likely.
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Con guring Nota Fiscal Texts

You can con gure the system so that nota scal texts are determined automatically. The system then transfers the text types
described below to the nota scal. The corresponding IMG activities can be found in Customizing for Sales and Distribution
(SD), under Billing Billing Documents Country-Speci c Features Country-Speci c Features for Brazil . Make the
following entries as needed:
1. Nota scal header texts based on the sales order type
You can de ne automatic nota scal header texts for each sales order type, in the Maintain Automatic Nota Fiscal
Header Texts Customizing activity. For each text you can also de ne an argument (variable) that is to be incorporated
into the text, such as the order reason or the exchange rate.
2. Tax laws
You can de ne default IPI and ICMS tax law texts, in the Maintain Sales Document Item Category Customizing activity.
For more information on tax law determination, see Tax Law.
3. Manual texts
The system can transfer any texts entered manually – at header or item level – in any preceding document prior to its
creating the nota scal. This could be in the sales order, delivery, or billing document; when you create these documents,
you can enter the text under Goto Header or Item Texts . Both the text type and the length of the text can be
de ned in the Maintain Billing Types Customizing activity.
4. Dangerous goods texts
The system can add a dangerous goods text to notas scais created for the movement of such goods. The text can come
from one of the following sources:
Hazardous material data (created with the VM01 transaction)
Dangerous goods master data (created with the DGP1 transaction)
Your internal comment about the dangerous goods that is stored in the additional data section of the material
master on the Internal comment tab page
To enable the system to transfer the dangerous goods texts from the correct source, in Customizing for Cross-
Application Components, choose General Application Functions Nota scal CNPJ Business Places De ne
Business Places . In the Details for the corresponding business places, make a selection for the Nota Fiscal: Source of
Dangerous Goods Data eld. For more information, see the eld help in the system.
Con guring Transfer of Nota Fiscal Values
Use
The nota scal (NF) contains several values, such as those for discounts, freight, insurance, total nota scal value, and so on.
The pricing procedure you employ de nes how the system calculates these values.
Procedure
In Customizing for Sales and Distribution (SD), under Billing Billing Documents Country-Speci c Features Country-
Speci c Features for Brazil Special Conditions for Pricing ,you need to assign a NF value to the condition type used in each
pricing procedure. The condition types maintained here control:
Which condition is used to ll which NF values
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Whether a condition is excluded from the base value used for calculating IPI
Whether a condition is part of the base value used for calculating ICMS/Sub.Trib. on freight
You can assign the NF values below to condition types, whereby the following equations are established:
Gross unit price = unit price + PIS and COFINS, and either ICMS or ISS (if item is a service)
Gross item amount = gross unit price x quantity
Value Means that the system
Value (0) Transfers the gross item amount to the NF, and calculates the gross
unit price in the NF.
Discount (1) Transfers the sum of the assigned condition types to the Discount
eld in the NF.
Freight (2) Transfers the sum of the assigned condition types to the Freight
eld in the NF.
Insurance (3) Transfers the sum of the assigned condition types to the Insurance
eld in the NF.
Other expenses (4) Transfers the sum of the assigned condition types to the Others
eld in the NF.
Value and price (5) Transfers the gross item amount and the gross unit price to the NF.
Value, price from value (6) 1. Transfers the gross item amount and the gross unit price
determined in pricing to the NF.
2. Triggers rounding in pricing routine 323.
3. Groups invoice items, during creation of a NF from an SD invoice,

if the following criteria are identical for the items: material number,
valuation area, valuation type, NCM code, Item usage, and identical
tax types and rates (base reductions are not considered). Within
each group, the gross unit price is taken from the item with the
highest gross amount and applied to the other items. The system
then checks that the equation "gross unit price x quantity = gross
amount" is still valid after replacing the gross price. If this equation
is no longer true, then the item price is restored to its original value.
Enabling Split Invoices (Nota Fiscal Split)
Use
In Brazil, companies must print and report notas scaison the business place level. In most cases, a nota scal split is required
by law when you print notas scais (only those companies possessing a special permit are exempt from this requirement). This
means that if the length of the nota scal exceeds one page, the business place must issue as many notas scais as pages are
required. The system enables this by means of a nota scal split.
Procedure
Make the following Customizing settings, under Cross-Application Components General Application Functions Nota Fiscal
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CNPJ Business Places De ne Business Places
Double-click the relevant business place, and set the Single Page indicator. This enables the system to allow for split
invoices (or other billing documents), which in turn leads to the corresponding nota scal tting on a single page.
Only if you are permitted to print multiple-page notas scais do you not set this indicator.
Output De ne Nota Fiscal Numbers and Form Sizes
Here you need to maintain the number of lines permitted in the header message, as well as the number of permissible
item lines for each combination of company code, business place, and nota scal form.
 Note
A nota scal will contain fewer items if one item generates several nota scal lines – discount cases, for example.
Creating Sales Orders
Procedure
You create a sales order for Brazilian company codes following the standard procedure . Enter order type ORB for a Brazilian
standard order. (For the other SD processes documented in this section, enter the order type as speci ed.)
The line-item level contains a number of elds speci c to Brazil (on the Country tab), all of which the system lls automatically
based on your Customizing settings:
Brazilian SD tax code
CFOP code
If the system is unable to determine the item's CFOP code, then you must enter it manually. For more information, see
Setting Up CFOP Determination in SD .
ICMS and IPI tax law texts
Integration
Once you have created a sales order, you create an outbound delivery and a billing document (invoice). You can do this directly
from the order creation screen, by choosing Sales document Deliver or Billing . The system automatically generates a
nota scal from the billing document. You then print the nota scal with the Nota Fiscal Writer.
Future Delivery
Use
In Brazil, you may want to deliver goods to your customer only once they have paid. In this case, a vendor sends an invoice, the
customer pays, and the vendor then ships the goods. In Brazil, this is referred to as venda para entrega futura , and it is covered
in local version Brazil by the future delivery function.
Two notas scais must be generated in the process – the one you send that functions as an invoice ( nota scal fatura ), and
the one you send with the shipment of goods ( nota scal remessa ). The system creates them automatically when you process
future delivery sales as described below.
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Integration
You create an SD billing document following the standard procedure, and the system automatically generates the
corresponding nota scal in the background. It is important to distinguish between these two separate documents.
Normally you would send your customer the bill after you complete processing of the billing document. In Brazil, however, you
need to print and send the nota scal – not the SD billing document. You print the nota scal with the Nota Fiscal Writer .
In the future delivery process, you rst send your customer the billing nota scal (fatura); it is not linked to a delivery at this
point. When you deliver the goods, you need to create another nota scal (remessa). This second nota scal must reference the
rst one – it must be printed on the nota scal and included in the legal books (Modelo 2). The system inserts this reference
automatically when you create the sales order for the shipment with reference to the previous billing document.
Activities
Creating Future Delivery Invoices
1. Create a sales order with the order type VEF .
2. Create the subsequent billing document (from the Sales Order transaction, choose Sales Document Billing ).
The system automatically uses the billing type FA (Advance Invoice BR). When you save the billing document, the system
generates the nota scal.
3. Print the nota scal with the Nota Fiscal Writer, and send it to your customer.
Creating Future Delivery Shipments
1. When you are ready to deliver the goods, create a sales order with the order type VEFR .
You must enter a reference to the previous billing document from step 2 above.
2. Create a delivery (from the Sales Order transaction, choose Sales Document Deliver ).
The delivery type is LF , but you do not need to enter this if you create the delivery with reference to the order.
3. Create the billing document.
The system automatically uses the billing type FAR (Future Delivery Invoice BR). Again, it generates the nota scal
automatically; it inserts the necessary reference in the Orig.docum.num. ( Reference to NF) eld and transfers the
information to reporting.
4. Print the nota scal with the Nota Fiscal Writer, and send it to your customer along with the goods.
Consignment
Use
See Consignment Stock Processing .
Local version Brazil automatically generates notas scais out of the consignment ll-up and consignment issue functions.
Activities
Creating Consignment Fill-Ups
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1. Create a sales order with order type KBB .
2. Enter a delivery with delivery type LF .
3. Create a billing document with billing type FCR , with reference to the delivery document, not the sales order.
4. The system automatically generates a nota scal from this billing document.
5. Print the nota scal using the Nota Fiscal Writer, and send it to your customer along with the goods.
Creating Consignment Issues
1. Create a sales order with order type KEB .
2. In the dialog box that appears, specify the billing document that was created for the ll-up.
3. Enter a delivery with delivery type LF .
4. Create a billing document with billing type FC , with reference to the delivery document, not the sales order.
5. The system automatically generates a nota scal from this billing document. It inserts into the appropriate eld the
reference to the original nota scal from the ll-up, and transfers this information to reporting.
6. Print the nota scal using the Nota Fiscal Writer, and send it to your customer.
Third-Party Order Processing
Use
See Third-Party Order Processing .
Activities
To use this function in Brazil, you need to enter a separate sales order for third-party items, with the special order types
described below.
Local version Brazil supports the following Brazilian business scenarios involving third-party sales:
Venda à Ordem
You sell goods to a customer and have them delivered by a third-party supplier. Proceed as follows:
1. Create a sales order with the type VDOR .
The system automatically assigns the item category TBS (third-party item Brazil) to the item, and creates a purchase
requisition for it. If the system does not determine the source of supply automatically, you need to manually enter who is
to deliver the goods in the Fixed vendor eld in the purchase requisition.
 Note
The supplier must be included on the billing nota scal (fatura) generated in step 3. To ensure this, maintain the nota
scal header text as follows: for document type VDOR, sequence number 10, enter the text Goods will be sent
directly from & at our expense , and enter argument VENDOR .
2. Complete the required purchasing steps: purchase order and invoice veri cation.
The third-party supplier delivers the goods to your customer, accompanied by its own nota scal.
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3. Create a billing document with biling type F2B ; the system assigns this automatically if you bill with reference to the
sales order.
When you save the document, the system automatically creates the nota scal.
4. Print the nota scal using the Nota Fiscal Writer, and send it to your customer.
Remessa por Conta e Ordem
In this case, you function as the supplier: your customer (sold-to party) orders goods from you, which you then ship to its
customer (ship-to party), while billing your customer (sold-to party).
You need to create two notas scais – one to accompany the goods, and one to send to the sold-to party which serves as an
invoice:
Creating a Nota Fiscal to Accompany the Goods
1. Create a sales order with the type RCM
Enter the sold-to and ship-to parties. The sold-to party has already sent a nota scal to its customer and informed you of
this nota scal. You then enter the date of this nota scal in the PO date eld, and the nota scal number in the
Reference eld (under Goto Header Accounting ).
2. Create a delivery
3. Create a billing document
The invoice has a total value of zero and does not generate an accounting document. But, it does generate a nota scal.
4. Print the nota scal using the Nota Fiscal Writer, and send it to with the goods to the ship-to party
Creating the Nota Fiscal to the Sold-To Party
5. Create a sales order with the type RCS
In the dialog box that appears, you need to enter the billing document number of the invoice from step 3 above.
6. Create a billing document
The system generates the nota scal for the sold-to party and the corresponding accounting document
7. Print the nota scal using the Nota Fiscal Writer, and send to the sold-to party (your customer)
Returns
Use
See Returns .
In Brazil, you can only process a return once the preceding outgoing nota scal (saída) has been printed.
Activities
You can process the following types of returns using local version Brazil, by creating a sales order (return):
Return with a customer nota scal
In this case, your customer accepted the delivered goods, then later sent them back with a new nota scal.
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You create a return with the order type REB . Enter the original billing document number in the dialog box that appears. In order
to create a credit memo, you also need to enter date of your customer's nota scal in the PO date eld, and the nota scal
number in the Reference eld (under Goto Header Accounting ).
Create the returns delivery and billing document (credit memo), and the system generates the incoming nota scal (entrada).
Print the nota scal with the Nota Fiscal Writer.
Return with your own nota scal
In this case, your customer rejects the shipment of goods directly and sends it back with the nota scal that you, the vendor,
issued.
You create a return with the order type ROB . Enter the original billing document number in the dialog box that appears, and an
order reason. Complete the process by creating the returns delivery and billing document as described in the case above.
Returnable Packaging
Use
See Returnable Packaging .
Local version Brazil enables both the shipment and pick-up of returnable packaging (RP) with integrated nota scal creation.
Activities
Processing RP Shipments
There are two ways of processing RP shipments, depending on whether a separate nota scal is to be generated for the RP:
1. With separate nota scal (recommended)
Create a separate sales order for the RP with the type ORB . The system calculates the total value of the nota scal as
the sum of the RP items, but it creates no payables for the customer. Print the nota scal with the Nota Fiscal Writer.
2. One nota scal for all items including the RP
Enter the RP as an item in the sales order with the type ORB . Process the delivery and billing as usual. In this case, the
RP price is not included in the total value of the nota scal.
It is also possible to add the RP item when you create the delivery. The system lls the SD tax code automatically if it is
stored in the customer-material info record.
Processing RP Pick-Ups
The RP pick-up process involves creating a return order, a returns delivery, and a billing document (from which a nota scal is
generated).
Creating an RP Return
You have to create an RP pick-up order separately from the returns orders of regular material, even if they are returned with a
single nota scal. You create the order with reference to the billing document that was created when you shipped the RP to the
customer.
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1. Returns order with a separate nota scal for the RP
Create a sales order of the type LAB , and enter the reference nota scal number.
2. Returns order with a single nota scal for the RP and other material
You have to create a separate return order for the non-RP materials; the appropriate order types are described in the
following cases (also see Returns ):
a. a. If the customer returns goods with its own nota scal, create a return order of the type RTEB , and enter the
nota scal number and date in the elds PO Number and PO Date . For non-RP materials, create a separate
returns order of the type REB .
b. b. If the customer returns goods with the nota scal you issued, use the order type RTOB , and enter the
reference nota scal number. For non-RP materials, create a separate order of the type ROB .
Creating a Returns Delivery for the RP
Enter a return following the standard procedure.
Billing an RP Return
If the incoming nota scal consists of RP and other materials, process the normal returns and the RP returns order together to
generate a single nota scal.
 Note
In this case, you need to ensure that the shipping conditions are the same for the original order type and the RTP returns
orders RTEB and RTOB, and that the customer nota scal number has exactly the same format in return orders REB and
RTEB.
Retroactive Billing
Use
Retroactive billing enables you to generate a list of billing documents that need to be adjusted as a result of a new pricing
agreement going into effect after their creation, and subsequently reevaluate them with the new price and generate the
resulting debit or credit memos.
Integration
The standard Retroactive Billing (SD-SLS-OA) function in Sales and Distribution (SD) has been enhanced to enable nota scal
integration as follows.
In Brazil, notas scais must be generated together with the debit and credit memos, for which the system requires the nota
scal type . Nota scal types are assigned to sales order types in Customizing (step two below).
In the standard billing process , the system derives the nota scal type from the sales order type of the sales order you create.
In the retroactive billing process , data is copied directly from the billing document selected for retroactive billing. In order to
determine the nota scal type, the system requires a link between a sales order type and the billing document type of the debit
or credit memo to be generated. You establish this link by creating a dummy sales order type, as described below.
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Prerequisites
In addition to the Customizing settings required for standard retroactive billing, you need to:
1. Create two dummy sales order types – in Customizing for SD, under Sales Sales Document Sales Document
Header De ne Sales Document Types .
2. You could, for instance, copy your standard debit and credit memo request types. Within the sales order types, you then
enter the debit and credit memo billing types you designed speci cally for retroactive billing as the order-related billing
types (located in the Billing group box).
3. Assign relevant nota scal types to your dummy sales order types – in Customizing for SD, under Billing Documents
Country Speci c Features Country Speci c Features for Brazil Specify Nota Fiscal Category .
One-Time Customers
Use
The system enables you to process sales orders for customers you deal with only once or very rarely, called one-time customers.
Integration
The standard sales order process in Sales and Distribution (SD) has been enhanced to enable nota scal integration. When you
create an invoice for a one-time customer in SD, the system transfers relevant information to the nota scal , taking it from the
following sources:
The customer master record template for one-time customers
Information entered in the sales order, in particular the customer (ship-to party) address, the CNPJ or CPF number, and
in certain cases the state tax number
Activities
Customizing
You need to de ne an account group for one-time customers, in Customizing for Financial Accounting (FI), under Accounts
Receivable and Accounts Payable Customer Accounts Master Data Preparations for Creating Customer Master Data
De ne Account Groups with Screen Layout (Customers) .
You can copy the standard account group CPD (internal numbering) or CPDA (external numbering), and rename it. Maintain the
eld status for General data as follows:
Choose group Set elds to "Display" Set elds to "Optional entry"
Address All elds that you want to appear when you –

display the nota scal (such as the postal
code, city, street, region, and so on)
Control Tax code 1Tax code 2CFOP category Natural personTax code 3Tax code
4Brazilian taxes: ICMS, IPI, S.T.
If you use the CPDA account group, then you also need to copy all entries where account group CPD exists by overwriting the
entry CPD with CPDA. You do this in Customizing for SD, under Basic Functions Partner Determination Set Up Partner
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Determination Set Up Partner Determination for Customer Master . Select the relevant partner and choose Account
Groups – Function Assignment from the dialog structure.
Master Data
Create the following customer master record templates that you can then specify when you create an invoice for a one-time
customer:
1. One for natural persons (for which a CPF numberwill need to be entered in the invoice)
Set the Natural person indicator on the Control data tab, and enter ISENTO in the Tax Number 3 eld.
2. One for companies (for which a CNPJ numberwill need to be entered in the invoice)
Optionally you can create additional templates for each ICMS liability that may occur. In this case, the system would then take
the tax information from the master record.
When you go to post an invoice for a one-time customer, specify the relevant template as the customer. In the dialog box that
appears, you enter your customer's name and address data. If your customer is a natural person, enter the CPF number in the
Tax Number 2 eld; otherwise enter the CNPJ number in the Tax Number 1 eld. If you enter a CNPJ number, you also need to
enter the company's state tax numberin the Tax Number 3 eld. If your customer is a natural person, this eld should already be
lled with ISENTO as de ned in the template for natural persons.
Note that if you change the partner data in the process of creating a sales order:
Each different entry in one of the partner functions creates a separate entry in the central address database; no
consistency check occurs.
If you need to change the region or the tax jurisdiction code of the customer (due to a typing error, for instance), CFOP
redetermination is triggered only if the appropriate changes are made to the ship-to party.
Process all subsequent functions following the standard procedure , and the system transfers the customer data automatically
to the nota scal, where it is later available for reporting. You cannot, however, create duplicatas or boletos for one-time
customers.
Orders in Foreign Currency
Use
When you create a sales order denominated not in Brazilian real but in a foreign currency, the system automatically generates a
corresponding nota scal in the local currency.
Integration
The exchange rate is available as an argument for the automatic nota scal header texts. For more information, see Texts in the
Nota Fiscal .
 Caution
If you create any follow-up sales documents, for instance in the case of a return, the system uses the current exchange rate,
not the one from the original document.
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Canceling Notas Fiscais

To cancel a nota scal that was created in Sales and Distribution (SD), you have to cancel the corresponding billing document .
Once you have done this, the system automatically creates a new nota scal with the type Cancel , which it stores in the nota
scal database. It automatically assigns the appropriate nota scal cancellation type de ned for the corresponding nota scal
type (see the settings in Customizing for Nota Fiscal under Cross-Application Components General Application Functions
Nota Fiscal ), which in the case of SD would be an outgoing nota scal.
 Note
Before you can cancel a billing document, you must have already printed the corresponding nota scal.
Business Add-Ins (BAdIs) for Nota Fiscal Integration into SD
Use
You can enhance the Nota Fiscal integration process into Sales and Distribution (SD) by implementing the following Business
Add-Ins (BAdIs):
BAdI: Redetermination of Nota Fiscal Type per Line Item (CL_SD_NFTYPE)
This BAdI allows you to:
Determine a different nota scal type for each line item.
Remove the contingency indicator for the nota scal at line-item level.
BAdI: Set Net Price in Return Movements (BADI_J_1BADJ_NET_PRICE_RETURN)
This BAdI allows you to:
Set an alternate net price in return movements.
Activities
To access the BAdIs, in Customizing for Cross-Application Components, choose General Application Functions Nota Fiscal
Sales and Distribution - Billing Documents Business Add-Ins (BAdIs) .
Con guration for CT-e Scenarios
Use
To be able to process a CT-e in an incoming scenario in MM, or an outgoing scenario in SD, you must perform the Customizing
and con guration procedures described in the following sections:
Incoming CT-e Scenarios in MM
Outgoing CT-e Scenarios in SD
Customizing for CT-e ICMS Taxation
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More Information
For more information about the general Customizing and con guration required for CT-e, see Customizing for CT-e
Use
To be able to enter an incoming CT-e in MM, you must perform the con guration and steps described here.
Con guration
This section describes the con guration for an incoming CT-e scenario in MM.
Con guring Tax Code MM
Condition types are available to calculate ICMS on a CT-e. They are different from ICMS on freight in nota scal and from ICMS
on goods. This also applies to ICMS ST. Two other conditions are available to calculate the Complementary ICMS tax (ICMS
DIFAL). For more information, see SAP Note 1792935 , CT-e: Incoming Complementary ICMS. As ICMS DIFAL is only relevant
for consumption/asset material transportation, then it is necessary to set the usage of the tax code as Consumption.
To use these condition types, it is necessary to create an MM tax code (or customize an existing one), activating the related
condition types, as follows:
Tax Conditions
ICMS CIC1 – ICMS on Conhecimento
CIC2 – ICMS Non-Deductible on Conhecimento
CST1 – Sub. Trib. on Conhecimento
CST2 – Sub. Trib. Non-Deductible on Conhecimento
CCOP – ICMS Conh Complement
CCOX – ICMS Conh Compl 100
PIS Activate the existing condition types
COFINS Activate the existing condition types
 Note
For ICMS, it is not necessary to activate all conditions. Activate only the conditions related to your tax classi cation.
You maintain tax codes in Customizing for Financial Accounting under Financial Accounting Global Settings Tax on
Sales/Purchases Calculation Settings for Tax Calculation in Brazil De ne FI/MM Tax Codes . Here you activate
conditions for a tax code by choosing Goto Maintain Condtions .
Determining Purchasing Tax Code
For PO tax code determination, you can use the NAVS condition technique. For more information, see SAP Note 501054 ,
FAQ: Taxes in purchasing.
 Note
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The NAVS condition technique does not work if your pricing procedure has requirement 60 in the NAVS condition. In this
case, you can either remove it or create another pricing procedure depending on your business needs.
Con guring Conhecimento Determination
Conhecimento determination is used to differentiate a normal service purchase order from a purchase order intended to be
used as a base document for the creation of a CT-e. In addition to the new condition types, the purchase order for CT-e is also
different in other aspects:
For CT-e, the taxes are calculated at Purchase Order item level. For ISS, the taxes can be calculated at service item level.
The ICMS and ICMS ST rates are different in goods documents than in CT-e. For CT-e, the rate is indicated in the column
ICMS on Freight, if it exists in the Tax Rate Tables. This column is maintained in the Tax Manager’s Workplace Brazil
(transaction J1BTAX), in Maintain ICMS Values (table J_1BTXIC1). For others Tax Rate Tables, ICMS Base and ICMS
Rate are used.
In a standard nota scal (for example, 1A) the freight value is just a part of the Net Amount. For CT-e, however, the Net
Amount represents the freight value itself.
The system determines that a document is a CT-e when the condition type CONH (or another condition type assigned to the
internal code CONHECIMENTO) is found in the pricing procedure. The condition CONH can be activated in the pricing procedure
either manually or via a correspondent condition record retrieved by an access sequence. An access sequence is not provided to
determine CONH as you might have different requirements to determine if a process corresponds to freight.
Creating Condition CONH in Purchasing Calculation Schema
The following steps are an example. You can adapt them to an existing condition type and purchasing calculation schema
accordingly.
1. Create purchasing condition CONH in Customizing for Materials Management under Purchasing Conditions De ne
Pricing Determination Process De ne Condition Types .
2. Enter purchasing calculation schema de nition menu in Customizing for Materials Management under Purchasing
Conditions De ne Pricing Determination Process De ne Calculation Schema .
3. Select schema RM0000 and choose Control Data.
4. Choose the New Entries pushbutton.
5. Enter the information as follows, where the value 30 in the Step column is an example:
Step Counter Condition Type Requirement
30 0 CONH 10
 Recommendation
When creating the condition CONH (step 1) include an access sequence in it. Otherwise, whenever the associated pricing
procedure (that is, RM0000) is called, the purchase order will activate CT-e determination and CT-e taxes calculation.
Assigning Purchasing Condition to Internal Code CONHECIMENTO
1. Execute transaction J1BTAX.
2. Enter BR in the Country eld.
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3. Choose Condition Setup Condition Mapping Assign Conditions to Internal Codes .
5. Enter the information as follows:
Internal Code Application Condition Type
CONHECIMENTO M CONH
Tax Group 6: Service Item Level
Tax group 6 is available for CT-e. This tax group makes use of the dynamic exception tax table and uses Service Item Level as the
key for retrieving tax data (for example, rate and base). For more information, see SAP Note 1714749 , CT-e LC: Extension of
Tax Calculation Features.
You de ne tax groups for dynamic exceptions in Customizing for Financial Accounting under Financial Accounting Global
Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil De ne Tax Groups for Dynamic
Exceptions
You maintain ICMS dynamic exceptions in Customizing for Financial Accounting under Financial Accounting Global Settings
Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates Maintain ICMS Dynamic
Exceptions
For tax calculation purposes, if there is more than one service item in the purchase order, the item with the higher net value is
used for retrieving tax data. That is, the selected service determines the condition records to be retrieved. You can overridde
this selection using the BAdI Select Service Master Used in Dynamic Exceptions (J_1BCTE_SELECT_SRVPOS). For more
information, see Business Add-Ins (BAdIs) for Incoming and Outgoing Scenarios in Customizing for CT-e.
ICMS Complement - DIFAL
When carrying out a consumption/asset material transportation, if the intrastate ICMS Tax is greater than the interstate Tax, it
is necessary to collect the difference between them, that is, the ICMS complement. For example, if a transport from state RS to
state SP has 5% of ICMS and the intrastate tax for SP is 12%, it is necessary to evaluate the difference between the taxes.
In the standard pricing procedure, the DIFAL base amount is stored in condition type BX30 and the tax amount is stored in
condition type BX31.
In the CT-e document, tax type CCOP highlights the calculated DIFAL tax value. The CCOX condition type (in the pricing
procedure) stores the offset (minus CCOP) so that this value is not added in the total taxes of the nota scal.
Con guring Screen Controls
You must assign NF Types to the screen controls for handling CT-e incoming documents.
You must create your own NF Types for incoming documents in Customizing for Cross-Application Components under General
Application Functions Nota Fiscal Nota Fiscal Document Maintenance Assign Screen Control Groups to NF Type as
follows:
NF type Description Manual Mode Screen Control for Screen control

Header Fields reference
description
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description
<C1> Conhecimento Change 28 Change application

incoming generated CT-e (via
MM-IV)
<C1> Conhecimento Create 23 Create application

MM-IV)
<C1> Conhecimento Display 21 Display application

incoming generated CT-e
<C1> Conhecimento X Change 29 Change manually

incoming entered CT-e
<C1> Conhecimento X Create 25 Create incoming CT-

incoming e manually
<C1> Conhecimento X Display 22 Display manually

Activities
Creating a CT-e
You use the following steps to create a CT-e in an incoming scenario in MM.
1. Create a Purchase Order
1. Start the purchase order creation process. In the SAP Easy Access menu, choose Logistics Materials Management
Purchasing Purchase Order Create Vendor/Supplying Plant Known .
2. In the Vendor eld select the company that executes the freight. Enter the Purchasing Organization, Purchasing Group
and Company Code.
3. Enter a Goods Supplier business partner to determine the starting point (ship-from location for tax determination). To
determine the ship-to location, enter a code in the Tax Jurisdiction Code eld in the Invoice tab.
4. Create a new item with Item Category D – Service. The Item Category that you select indicates that the item of the
document is a service.
5. Enter the Short Text, Material Group and other relevant information.
6. Enter information in the Service tab by adding new lines and entering Short Text (or Service Number from Service
Master) and Gross Price.
7. Activate the condition type CONH or another condition assigned to the internal code CONHECIMENTO. The system can
be con gured to allow the manual addition of this condition or to use an access sequence to automatically activate the
condition according to the vendor, the order type or other information available in the PO.
8. In the Invoice tab, ensure that the Service-Based Invoice Veri cation checkbox is not selected. If selected, it generates
one line for each service item. In the same tab, enter a tax code with CT-e conditions (CIC1, CIC2, CST1, and so on) and
choose the Taxes pushbutton to verify the calculated taxes.
9. Save the purchase order.
2. Create a Service Entry Sheet
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Service Entry Sheet creation does not require any speci c procedures other than the standard process. However, it is necessary
to perform invoice veri cation.
1. Start the Service Entry Sheet creation process. (In the SAP Easy Access menu, choose Logistics Sales &
Distribution Bill of Services Service Entry Sheet Create .)
2. Enter the required information and save the document.
3. Create an Invoice
Create an invoice referring to the purchase order created above.
As of SAP Note 1766209 , CT-e: new CT-e Tax Calculation determination for Incoming, tax calculation does not take NF Type
into consideration when executing an invoice, only condition CONH, as described in Con guring Conhecimento Determination.
4. Fill in the CT-e Details
Fill in the details of the CT-e. For more information, see Nota Fiscal Writer and Nota Fiscal Data.
Use
To be able to enter an outgoing CT-e in SD, you must perform the con guration and steps described here.
In general, the outgoing CT-e process follows the steps of a normal sales process, that is, the creation of a Sales Order, the
creation of a Billing Document and the correspondent CT-e document.
Con guration
This section describes the con guration for an outgoing CT-e scenario in SD.
Freight Service Con guration
Create a material for freight service with Material Type DIEN – Service.
Sales Order Type Con guration
Create a new sales order type (or use an existing one) and assign it to a nota scal type with model 57.
Con guring Tax Code SD
Create a new SD tax code (or use an existing one).
Activate the options Calculate ICMS (or Calculate Sub. Trib.), Calculate PIS and Calculate COFINS, depending on the
tributary classi cation of the freight.
In order to calculate freight taxes in SD, set the customer usage to Industrialization.
Ship-from location for SD
To determine the ship-from location, use Customizing activity Map CT-e Partner to NF Partner Function
(J_1BCTE_PAR_MAPV).
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The Partner Function assigned to the 0 – Goods Sender CT-e Partner determines the ship-from location. For example, when the
RE – Bill-to Party is mapped, the Bill-to Party business partner address of the Sales Order is the ship-from location.
Item Description
Ship-From Address of Business Partner mapped as Goods Sender in the view
Ship-To Address of “WE – Ship-to Party” business partner (no mapping)
This ship-from location affects tax rates, CFOP determination and the determination of the elds for Jurisdiction Code in the CT-
e.
Screen Control Assignment
You must assign NF Types to the screen controls for handling CT-e outgoing documents.
You must create your own NF Types for outgoing documents in Customizing for Cross-Application Components under General
follows:

description
<CO> Conhecimento Change 28 Change application

outgoing generated CT-e (via
MM-IV)
<CO> Conhecimento Create 24 Create outgoing CT-

outgoing e manually
<CO> Conhecimento Display 21 Display application

outgoing generated CT-e
<CO> Conhecimento X Change 29 Change manually

outgoing entered CT-e
<CO> Conhecimento X Create 24 Create outgoing CT-

outgoing e manually
<CO> Conhecimento X Display 22 Display manually

Activities
Creating a CT-e
You use the following steps to create a CT-e in an outgoing scenario in SD.
1. Create a Sales Order
1. Create a new sales order using the sales order type assigned to a CT-e nota scal type.
2. Enter the Sold-To Party, Ship-To Party and the PO Number.
3. Add a new line for a material that will represent the freight service. Enter Quantity, Plant and Amount. Inform a Tax Code,
CFOP and texts for the related taxes in the Country tab.
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4. In the Item Condition tab, activate the condition type CONH or another condition assigned to the internal code
CONHECIMENTO.
2. Create a Billing Document
As freight is a service, Outbound Delivery is not necessary.
1. Create a Billing Document using the Sales Order number as a reference and save it.
2. Execute transaction J1B3N to display the created CT-e.

Some Brazilian processes are exempt of ICMS, and therefore it should not be charged. The source and end locations of the
service, and the product being transported, usually determine ICMS exemption according to federal and state laws.
However, even if it is not necessary to calculate ICMS, the ICMS base value must be visible in the CT-e and ICMS must be
reported in legal reports. The ICMS base for ICMS exempt must be calculated and displayed as the excluded base. The law that
allows for exemption of ICMS must be printed on the CT-e.
MM ICMS Exempt
MM scenarios that are ICMS-exempt require the use of the correct tax code. Additional Customizing steps must be carried out
to report the ICMS exemption correctly, as follows:
Create a new tax code (or use an existing one), making sure that the option ICMS-ex. is marked.
You do this in Customizing for Financial Accounting under Financial Accounting Global Settings Tax on
Sales/Purchases Calculation Settings for Tax Calculation in Brazil De ne FI/MM Tax Codes
A tax type for ICMS-exempt must be active. To move the base values to the CT-e document, the tax type for ICMS-
exempt must have Ex. Base Cond. and Other Base Con. lled with the correct conditions. With this customizing the
condition record that identi es the ICMS exemption is generated. In SAP default customizing, this condition is BICx (for
example BIC0 or BIC1), related to the internal code ICMSNULLEXEMPT, application TX.
Sales/Purchase Basic Settings Brazil Condition-Based Tax Calculation Assign Condition Types to Internal Codes
for Tax Conditions .
SD ICMS EXEMPT
For SD scenarios, the tax code must have Industrialization as Customer usage and ICMS-exempt must be checked. The tax
type use must have Ex. Base Cond correctly lled. With these settings, the condition record that identi es the ICMS exemption
is generated. In the default Customizing, this condition is BICx (for example BIC0 or BIC1), related to the internal code
ICMSNULLEXEMPT, application V.
Materials Management (MM)
Use
The Materials Management (MM) component covers the most important laws and business practices speci c to Brazil - in
particular, the automatic generation of notas scais from the invoice veri cation and inventory management processes. The
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following documentation describes these aspects of the component. For generic information about MM, see Materials
Management (MM).
Features
Local Version Brazil includes the following features:
Master Data
The material master has been enhanced so that you can enter all information required for the system to determine the CFOP
number, calculate relevant taxes, and generate a nota scal when you procure materials or transfer stock.
Similarly, the vendor master has been enhanced to contain tax-relevant information. The system is therefore able to calculate
the relevant taxes for each combination of material and vendor.
The plant master data remains unchanged. The only thing you need to do is assign a business place to each of your plants, in
Customizing, under Cross-Application Components General Application Functions Nota Fiscal CNPJ Business Places
Assign to Plants . You can assign more than one plant to a single business place.
You have to maintain all of this master data before you can start working with the system.
Purchase Requisition and Purchase Order
In the Purchase Requisition and Purchase Order screens, Brazil-speci c elds are enabled under certain conditions. For more
information, see Purchase Requisition and Purchase Order (Brazilian Fields).
With the relevant information maintained in your master records and in Customizing for MM, the system can create a nota
scal automatically when you:
Enter an invoice in Logistics Invoice Veri cation (MM-IV-LIV)
Enter a goods movement in Inventory Management (MM-IM), including goods maintained as special stock
Reporting
You can create all required legal books pertaining to MM.
Material Master (Brazilian Fields)

The material master record has been enhanced to store additional data relevant to materials in Brazilian company codes. The
system primarily uses this information to determine the CFOP code , calculate relevant taxes, and generate the nota scal
when you procure materials or transfer stock.
The following data is contained on both the Foreign Trade Import and Foreign Trade Export tabs:
Control code
This eld contains the NCM code. The system uses the NCM code to calculate taxes, and it is then printed on the nota
scal.
You can assign NCM codes to material groups in Customizing, under Cross-Application Components General
Application Functions Nota Fiscal NCM Codes Assign to Material Groups .
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Material CFOP category
This eld contains the CFOP category for the material, which the system uses to determine the CFOP code during nota
scal generation.
The following elds, all of which are used to determine the CFOP code, can be found on the Accounting 2 tab:
Material usage
Here you enter the intended usage of the material, for instance, consumption.
Material origin
This value speci es whether the material was produced in Brazil or imported.
Produced in-house
If this indicator is set, the material was produced by the company (not procured externally).
See also:
Taxes
Vendor Master (Brazilian Fields)

Some elds in the vendor master are designed speci cally for Brazil, while others are of a more generic nature, but have a
particular use for Brazil. All the elds that are relevant to Brazilian vendors are described below.
For more information, see What Data is Contained in the Vendor Master Record?
General Data
The tax region is displayed in the Jurisdict. code (Tax jurisdiction code) eld on the Address screen. When you enter the region,
the system automatically determines the tax region.
Enter data as required on the Control screen:
Tax number , in the Tax Number 1 or Tax Number 2 eld
State tax number (i nscrição estadual ), in the Tax Number 3 eld
Municipal tax number ( inscrição municipal ), in the Tax Number 4 eld
Tax split
If you set this indicator, the system posts half of the calculated IPI value as deductible input tax, and deducts the other half from
the inventory posting or the posting to an expense account. You generally set this indicator for wholesale vendors who do not
pay IPI (see IPI ).
Tax base
In Logistics Invoice Veri cation, the system calculates the ICMS tax value with a reduced tax base for freight charges only.
Brazilian law stipulates a reduced tax base of 80% of the transport invoice (conhecimento). Enter tax base 1 if the carrier is to
receive an 80% ICMS base reduction.
Company Code Data
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For vendors that send boletos, you should maintain your payment terms with a payment block, by setting the Payment block
indicator.
See also:
Creating a Vendor Master Record Centrally
Purchase Requisition and Purchase Order (Brazilian Fields)
Use
For a purchase requisition or purchase order created for a Brazilian material, additional country-speci c elds are available.
In the Purchase Requisition and Purchase Order screens, the Brazil-speci c elds are displayed on the Brazil tab in the Item
Detail section.
The Brazil tab is available in the following cases:
You create a purchase requisition for a material maintained in a plant in Brazil
You create a purchase order for a material maintained in a plant in Brazil
You create a purchase order based on a purchase requisition for a material maintained in a plant in Brazil
Integration with SRM
When the SAP ERP system is integrated with SAP SRM, the Brazil-speci c elds are automatically transferred between the
systems when relevant, for example, as follows:
SAP ERP can create a purchase order automatically from a Shopping Cart or a Request for Quotation in SAP SRM. If the
purchase requisition is for a material maintained in a plant in Brazil, the Brazil tab is available in the Purchase
Requisition screen and the elds are populated with the data from SAP SRM.
When you create a purchase requisition for a Brazilian material and the purchase requisition is automatically transferred
to SAP SRM, this creates a Shopping Cart in SAP SRM that includes the data from the Brazil-speci c elds.
Features
The following elds are displayed on the Brazil tab:
Material Usage - Speci es the intended usage of the material, for instance, consumption.
Material Origin – Speci es whether the material was produced in Brazil or imported.
NCM Code – The system uses the NCM code to calculate taxes, and it is then printed on the Nota Fiscal. You can assign
NCM codes to material groups in Customizing, under Cross-Application Components General Application Functions
Nota Fiscal NCM Codes Assign to Material Groups .
Material Category – Speci es the CFOP category for the material, which the system uses to determine the CFOP code
during Nota Fiscal generation.
Produced In-House – If this indicator is set, the material was produced by the company (that is, it was not procured
externally).
More Information
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Purchase Requisitions (MM-PUR-REQ)
Purchase Orders (MM-PUR-PO)
Nota Fiscal Integration into Logistics Invoice Veri cation
Purpose
This process describes how the system generates a nota scal automatically in the invoice-veri cation process in Materials
Management (MM).
Prerequisites
A number of Customizing activities are required to con gure automatic nota scal generation.
You must work with Logistics Invoice Veri cation (MM-IV-LIV) to use the integrated nota scal functions.
Process Flow
The following steps, together with the graphic, describe the process leading up to nota scal generation:
Nota Fiscal Generation in the Logistics Invoice Veri cation Process
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1. You enter a purchase order in MM.
2. Upon receiving the goods, you enter the corresponding number of goods receipts in the system.
Follow the standard procedure , and enter the nota scal number of the nota scal issued by your vendor in the Delivery Note
eld.
1. You enter an invoice based on each goods receipt.
2. The system automatically generates a nota scal for each invoice.
Inventory Management: Customizing

The following table provides an overview of all required Customizing activities related to Inventory Management (MM-IM)
functions for local version Brazil. The activities are listed in the same order in which they appear in the Implementation Guide
(IMG).
Customizing Activity IMG Path: Materials Management Inventory

Management and Physical Inventory Nota Fiscal
Maintain nota scal item relevance and type determination Maintain Nota Fiscal Category Derivation
Maintain tax posting strings Maintain Tax Posting String
Invoice Veri cation: Customizing

The following table provides an overview of all required Customizing activities related to Invoice Veri cation (MM-IV) functions
for Local Version Brazil. The activities are listed in the same order in which they appear in the Implementation Guide (IMG).
Customizing Activity IMG Path: Materials Management Logistics Invoice

Veri cation Incoming Invoice Nota Fiscal
Assign nota scal item type to item category of the purchasing Line Category
document
Maintain value transfers to notas scais Value Determination
De ne texts Automatic Texts
Maintain transfer of withholding tax data to notas scais Withholding Tax Value Determination
Maintain material document lines Material Document Lines
De ning Nota Fiscal Header Texts for Invoice Veri cation
Context
Once they have been de ned, the system can automatically generate appropriate header texts in the following cases:
Returns for which the IPI value is displayed as a text
Material document items that are not processed in Invoice Veri cation and therefore do not generate separate nota
scal items
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Withholding tax amounts
Procedure
1. In Customizing for Materials Management, choose Logistics Invoice Veri cation Incoming Invoice Nota Fiscal
Automatic Texts .
2. Maintain the header texts as described in the system documentation.
Entering Purchase Orders
Use
The purchase order screen has been enhanced to include additional information required for the nota scal. If you enter a
purchase order for items a material master has been maintained for, the system derives the necessary information from the
master record. If no material master is maintained, you need to enter this information manually, as described below. If you enter
a purchase order for services, you follow the standard procedure (specify item category D), since the Brazilian elds are not
relevant in this case.
Procedure
From the SAP Easy Access screen, choose Logistics Materials Management Purchasing Purchase Order Create
Vendor/Supplying Plant Known , and enter the purchase order following the standard procedure , noting the following:
At the item level, on the Invoice tab, make sure the GR-based IV (Goods-receipt-based invoice veri cation) indicator is
set – except in the case of future deliveries . (For more information on this function, see Goods-Receipt-Based Invoice
Veri cation .)
If you enter a free text for the material description (and not a material with a master record), you need to enter the
following data manually:
On the Material Data tab, enter the material group. The system uses the material group during Logistics Invoice
Veri cation to derive the item's NCM code, which it transfers to the nota scal. You can overwrite the
automatically determined NCM code in the purchase order, if necessary.
On the Brazil tab, specify the following:
Material usage
Material origin
Prod. in-house (set this indicator for goods produced in-house)
Mat. category (material CFOP category)
Integration
In addition, you can maintain special pricing conditions for Logistics Invoice Veri cation. When you create or change a purchase
order, the system then calculates values based on these pricing conditions, and transfers them to the nota scal during
invoicing. For example, you can map how discount and insurance values are to be transferred. The only value you cannot map is
the freight value.
To maintain the pricing conditions, in Customizing for Materials Management (MM), choose Logistics Invoice Veri cation
Incoming Invoice Nota Fiscal Value Determination .
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Entering Invoices
Use
You enter an invoice for each goods receipt you receive, and the system automatically generates a corresponding nota scal.
You must create it on a 1:1 basis, meaning you cannot group several goods receipts on a single invoice (the only exception is a
conhecimento created based on multiple notas scais).
Prerequisites
You have already entered the purchase order and the goods receipt(s).
Procedure
From the SAP Easy Access screen, choose Logistics → Materials Management → Logistics Invoice Veri cation → Document
Entry → Enter Invoice .
On the PO Reference tab, enter one of the following:
...
Nota scal number, if you entered it in the goods receipt (choose document category Delivery Note )
If you enter the nota scal number, the system automatically copies over the purchase order items relevant to the nota scal. It
also automatically transfers the nota scal number to the nota scal.
Purchase order (choose document category Purchase Order/Scheduling Agreement )
If the purchase order refers to several items, you need to select the relevant ones included in the invoice.
If you did not enter the nota scal number in the purchase order, you must enter it in the Reference eld, in order for the
system to transfer it to the nota scal. For more information, see Nota Fiscal Number .
On the Details tab, enter an appropriate nota scal type (such as E1, which is delivered with Country VersionBrazil).
Choose Enter .
The Nota scal pushbutton appears, which you can use to branch directly to the automatically-generated nota scal.
Post the invoice.
Once you have posted the invoice, you have to go into invoice display mode to access the Nota scal pushbutton. Alternatively,
you can view the generated nota scal in the Nota Fiscal Writer.
Future Delivery
Use
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You purchase goods and must pay before the vendor delivers them. The process involves two notas scais – the one you receive
that serves as an invoice, and the one that accompanies the goods.
Activities
To process a future delivery in Logistics Invoice Veri cation:
1. Enter a purchase order. From the SAP Easy Access screen, choose Logistics Materials Management Purchasing
Purchase Order Create Vendor/Supplying Plant Known .
2. Since you post the invoice before you receive the goods, you need to deactivate the GR-based IV (Goods-receipt-based
invoice veri cation) indicator, located at the item level on the Invoice tab.
3. Post the invoice , and specify the following:
Enter a reference to the purchase order.
Manually enter the amount and quantity of the goods.
Enter the nota scal number in the Reference eld.
Local version Brazil).
The system automatically generates the corresponding nota scal.
1. Post the goods receipt with reference to the purchase order. From the SAP Easy Access screen, choose Logistics
Materials Management Inventory Management Goods Movement Goods Receipt For Purchase Order GR for
Purchase Order (MIGO) .
Specify an appropriate movement type (for instance, 801).
Enter the number of the second nota scal you receive with the goods, in the Delivery Note eld.
Enter the number of the rst nota scal received (in step 2), in the Header txt eld.
The system automatically generates the corresponding nota scal, which contains the internal number of the rst nota scal in
the Orig.docum.num. (Original document number) eld.
Subsequent Debit/Credit
Use
You post a subsequent debit or credit in any case when a vendor sends you an additional invoice linked to an original one, for
instance, accompanying a subsequent delivery.
Another example would be if you receive a nota scal that contains incorrect information. Brazilian law stipulates that you must
enter it in your records, and subsequently request the vendor to send you a correction, called a complementar . Depending on
the error, you post the correction in the system as either a subsequent debit or credit.
Activities
1. Enter a subsequent debit or a subsequent credit, using the invoice transaction .
2. On the PO Reference tab, either:
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Select Delivery Note and enter the reference nota scal number, or
Select Purchase Order/Scheduling Agreement and enter the reference purchase order.
If goods-receipt-based invoice veri cation was activated in the corresponding purchase order , the system automatically copies
over the reference nota scal. If this function was not activated, then you must enter the reference nota scal number in the
Header Text eld, on the Details tab.
1. On the Basic data tab, enter the new nota scal number in the Reference eld.
2. On the Details tab, enter an appropriate nota scal type (such as E2, which is delivered with local version Brazil).
3. Post the debit or credit.
The system automatically generates the corresponding nota scal, and links it to the original nota scal by lling its internal
number in the Original document number eld.
Conhecimento (Freight Invoice)
Use
Local Version Brazil enables you to enter conhecimentos (Brazilian freight invoices) in the system as a subsequent debit. They
are either based on a single nota scal or on multiple notas scais, as illustrated below:
Conhecimento for Multiple Notas Fiscais
This second case represents the only exception to the 1:1 relationship between invoice and nota scal in the system.
Activities
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To enter a conhecimento based on a single nota scal, follow the procedure for creating a subsequent debit , but specify nota
scal type C1.
To enter a conhecimento based on multiple notas scais:
1. Post a subsequent debit using the same procedure as above.
2. On the PO Reference tab, you can enter multiple nota scal numbers or multiple purchase orders by using the extended
selection function.
 Note
If you have not posted an invoice for a goods receipt, the system does not allow the material lines to be included in the
conhecimento. You must deselect these lines in the selection screen manually.
1. On the Details tab, enter an appropriate nota scal type (such as CR, which is delivered with Local Version Brazil).
2. Enter the freight amounts for each of the items. If you only have one amount, enter it on the Details tab, in the Unpl. Del.
Costs (Unplanned delivery costs) eld, and the system will distribute it across the items.
3.
You cannot post unplanned delivery costs to a separate G/L account by entering them as unplanned delivery costs in the
invoice – since this would only enable you to specify a tax code at the header level, and in Brazil taxes are calculated at
the item level. If you want to do this, you have to enter a separate posting directly to the G/L account.
4. Post the debit.
The system automatically generates the corresponding nota scal. It does not display an associated original document, since
there is more than one.
Returns
Use
You use this function when you return goods, which must be accompanied by a nota scal, to your vendor.
Activities
1. Enter a credit memo using the invoice transaction .
2. On the PO Reference tab, specify either a reference purchase order or a reference nota scal (delivery note).
3. If you enter a purchase order for which goods-receipt-based invoice veri cation was not activated, then you must enter
the reference nota scal number in the Reference eld.
4. On the Details tab, enter an appropriate nota scal type (such as E4, which is delivered with local version Brazil).
5. Post the credit memo, and the system automatically generates a corresponding outgoing nota scal.
6. Lastly, you must reduce your stock accordingly. Enter a goods receipt with reference to the purchase order, and specify
an appropriate movement type, for instance, 102.
Changing Nota Fiscal Values

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The system automatically generates a nota scal once you have:
Entered an invoice within Logistics Invoice Veri cation (MM-LIV)
Entered a goods movement within Inventory Management (MM-IM)
Completed any of the other processes with integrated nota scal creation, such as subcontracting
If you need to make subsequent changes to the nota scal, you must do so via the Nota Fiscal Writer . You can change the
following nota scal values:
Tax law ICMS
Tax law IPI
CFOP code
Tax base amount, excluded base amount, and other base amount
Tax rate
Tax value
Discount
Insurance
Other expenses
Observation eld, used, for instance, to refer to external documents
Item texts
Note the following for MM-LIV:
1. You cannot change the values for price , freight , or total on the nota scal screen – since the system calculates the price
based on the value and quantity, and it derives the freight and total from the invoice. You can, however, change these
values on the invoice veri cation screen.
2. Any changes you make on the nota scal level will be lost if you change them subsequently on the invoice level.
Canceling Invoices
Use
When you cancel an invoice entered for a Brazilian company code, the system cancels the corresponding nota scal as
described below.
Procedure
1. From the SAP Easy Access screen, choose Logistics Materials Management Logistics Invoice Veri cation
Further Processing Cancel Invoice Document .
2. Enter the invoice document number, scal year, and reversal reason.
3. Choose Invoice Document Reverse .
The system creates a new nota scal with the type Cancel , and it sets the Canceled indicator in the original nota scal.
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Nota Fiscal Integration into Inventory Management
Use
This process describes how the system generates a nota scal automatically when you record a nota- scal-relevant goods
movement in Inventory Management (MM-IM).
Since taxes are levied in Brazil on the movement of goods, each goods movement must be accompanied by a nota scal. The
integrated nota scal functions in Inventory Management generate notas scais for relevant goods movements for which no
nota scal was generated within Logistics Invoice Veri cation (MM-IV-LIV) or Billing (SD-BIL). For example, you need a nota
scal when you transfer stock, even if the transfer does not involve a purchase order or sales order.
Prerequisites
You need to con gure the following information in Customizing for MM, under Inventory Management and Physical Inventory
Nota Fiscal :
Maintain Nota Fiscal Category Derivation
In this activity, you de ne which goods movements are relevant to nota scal generation. To do so, you specify X
(Relevant) in the NF rel. eld, and the NF type. In addition, you need to maintain the NF item type, whether SubTrib is
to be included in CFOP determination, the NF partner type, and the partner function.
Maintain Tax Posting String
In this activity, you maintain – for the tax procedure you use, for posting strings that call for tax calculation – the
conditions under which taxes are posted in Inventory Management.
You need to con gure the following information in Customizing for Cross-Application Components, under General Application
Functions Nota scal Materials Management Inventory Management :
 Note
To access the following Customizing activities for inventory adjustment, you must activate the business function ERP, Tax
Declaration Framework – Brazil (LOG_TMF_INT_1).
Determine Movement Types for Inventory Adjustment
In this activity, you specify which movement types are used to post an inventory adjustment.
Determine Tax Code for Inventory Adjustment
In this activity, you specify the tax codes used for calculating taxes for positive and negative movement types for
inventory adjustments.
BAdI: Brazil Inventory Adjustment
This Business Add-In (BAdI) is used in Materials Management (MM) for the creation of a nota scal. You can implement
this BAdI as an alternative to the activity Determine Tax Code for Inventory Adjustment.
If your company handles scenarios with mixed nota scal (NF) types, con gure the following information in Customizing for
Cross-Application Components, under General Application Functions Nota scal Materials Management Inventory
Management :
De ne NF Type Redetermination for Goods Movements
De ne NF Type Determination for Vendors
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For more information, see Customizing NF Type Determination for Mixed Scenarios.
Process
1. You enter a goods movement.
2. The system creates a material document.
3. For each material document, the system automatically generates a nota scal.
You can access the nota scal directly from the goods movement screen by choosing the Nota scal pushbutton; from
the subsequent screen, you are able to make changes to the nota scal.
Entering Goods Movements

You can enter all types of goods movements – goods receipts, goods issues, transfer postings, and so on – from the SAP Easy
Access screen, by choosing Logistics Materials Management Inventory Management Goods Movement Goods
Movement (MIGO) . Once you are in the transaction, you specify which business transaction you want to perform.
 Note
Note that the late material block function is not available for goods movements involving nota scal generation, but you can
make use of the exclusive material block (see Material Block (Material Enqueue) for Goods Movements ).
Note the following Brazil-speci c entries:
For incoming notas scais (goods receipts), you need to enter the nota scal number of the issued nota scal. Enter this
number in the Delivery Note eld.
In the case of returns, you enter the reference nota scal number in the Header txt eld.
The system automatically determines the:
CFOP code per line
Nota scal item value, based on the value you enter in the Alternative base amount eld
If a purchase order is available, the system automatically transfers the net value of the purchase order as the value of the nota
scal line item.
Subcontracting
Use
See Subcontracting .
For Brazilian company codes, the system automatically generates a nota scal for goods movements initiated as part of a
subcontract order.
Prerequisites
You have completed the relevant Customizing activities described here .
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Activities
The subcontracting process involves two phases: providing your vendor with the necessary components to ful ll the subcontract
order, and processing the nished goods the vendor sends you (including the incoming nota scal/notas scais).
Shipping Components for Subcontract Orders
1. Enter a purchase order with item category L (for subcontracting).
You need to enter a tax code at the item level. If a bill of material (BOM) is maintained for the product, the system uses
this to determine which components need to be shipped. If no BOM is available, then the system branches to the
Overview Component screen, where you can enter the component(s) manually.
2. Enter a transfer posting to transfer the component to your vendor (unless it already has sufficient stock stored at its
plant to ful ll the order). From the SAP Easy Access screen, choose Logistics Materials Management Inventory
Management Goods Movement Transfer Posting . Alternatively you can display a list of all open orders containing
components to be shipped, select the relevant order, and directly post a goods issue. To do so, choose Logistics
Materials Management Purchasing Purchase Order Reporting SC Stocks per Vendor .
Specify movement type 541 (delivered with the standard system) to transfer stock from your own unrestricted stock to
the subcontracting stock of your vendor. Enter a net alternate base amount. Once you choose Enter , a Nota Fiscal
pushbutton appears, which you can choose to branch to the nota scal generated as a result of the goods movement.
Within the nota scal, you need to enter an ICMS and IPI tax law (in most cases IC0 and IP0) and other base amount.
Note that no taxes are due on the transfer of subcontracting stock to your vendor, if the nished goods are delivered to
you within 180 days.
The system automatically determines the CFOP codefrom the item type, which it derives from the movement type. The
CFOP code, displayed on the nota scal, indicates that the stock is part of a subcontract order and that no tax is due at
this point.
3. Print the outgoing nota scal with the Nota Fiscal Writer .
Processing the Finished Goods
Once you receive the nished goods from your vendor, you post a goods receipt and enter an invoice. However, these last steps
differ – depending on whether your vendor issues a single nota scal containing the nished goods and the components, or
whether it issues two notas scais, one each for the nished goods and the components. The main item refers to the nished
product.
Single nota scal
1. Enter a goods receipt for purchase order, with an appropriate movement type (such as 101) for the main item.
Enter the nota scal number in the Delivery Note eld. If you display the components, you see that the system
automatically generates movement type 543 for the components, which you cannot change. You can, however, change
the quantity. Enter an alternate base amount on the item detail screen.
When you post the goods receipt, the system records two movements – one for the incoming main item (101) and one to
reduce th especial stock at the vendor (543). Note that movement type 101 is relevant for the invoice, while 543 is not –
but the components must appear on the nota scal. To handle this case, you must specify which movement types are not
invoice-relevant, but which are relevant for the nota scal. To do so, in Customizing for Materials Management , choose
Logistics Invoice Veri cation Incoming Invoices Nota Fiscal Material Document Lines .
2. Post the invoice.
Enter the nota scal number in the Delivery Note eld. Once you choose Enter , you see the Nota Fiscal pushbutton. The
single nota scal that is generated displays all items. The component item is statistical, meaning no tax is due.
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Two notas scais
1. Enter a goods receipt for the nished material.
Enter the nota scal number in the Delivery Note eld. Manually change the quantity of components to zero. Unlike the
case of the single nota scal above, the goods receipt does not reduce the special stock at vendor.
2. Post an invoice for the main item with, for instance, nota scal type E1 (delivered with the standard system).
The system generates the rst nota scal.
3. Enter a subsequent adjustment for the purchase order.
In this process, you make an adjustment of the main item, and you reduce the special stock at vendor (which leads to
nota scal generation). From the SAP Easy Access screen, choose Logistics Materials Management Inventory
Management Goods Movement Subsequent Adjustment Subcontracting . Enter the following information:
The number of the nota scal for the component, in the Delivery Note eld
The number of the nota scal for the main item, in the Doc.Header Text eld
Purchase order number
The system displays the main items with movement type 121 (GR subsequent adjustment), which does not relate
to any goods movement. To revaluate the stocks, manually enter the quantity of components used to produce the
product (the number of items on the second nota scal). At the component level, you see movement type 543 for
reduction of special stock at vendor. Enter the alternate base amount at the item level. Once you choose Enter ,
the Nota Fiscal pushbutton appears. In this second nota scal, the reference nota scal number is displayed in
the Observations eld.
Returnable Transport Packaging

Use
See returnable transport packaging (RTP).
Local version Brazil enables you to manage RTP stocks with integrated nota scal generation. You can trigger this in one of two
ways:
1. By posting the quantity of RTP goods only (as you do in standard RTP processing)
2. By posting the quantity and inventory in Inventory Management
You must create a separate material (special stock data) for this form of RTP processing because it has to be valuated
separately from your other materials.
RTP in Simple Material Movements

The system creates a nota scal based on the following RTP shipments:
Shipments with an appropriate movement type
Cancellation of shipments
Returns with a second appropriate movement type
To enter these in the system, create a goods receipt with the rst movement type, and enter the nota scal number of the RTP
shipment in the Material slip eld.
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RTP in Invoices
The system also creates notas scais based on RTP together with other items in the invoice:
Debit notes with additional items from the shipment
Cancellation of invoices with additional items from the shipment
In this case, proceed as follows:
1. Create a purchase order with item category Standard .
2. Create a goods receipt for purchase order with an appropriate movement type. Enter the nota scal number of the
invoice as the delivery note. Before you post the goods receipt, create a new item without purchase order using a second
appropriate movement type.
3. Create an invoice with reference to the delivery note. Enter the nota scal number of the invoice as the delivery note.
The resulting nota scal contains both the invoice-relevant items as well as the RTP items found in the goods receipt.
Future Delivery
Use
In Brazil, your vendor may demand payment for goods before it delivers them. In this case, the vendor would send an invoice, the
customer (you) would pay, and the vendor then sends the goods. In Brazil, this is referred to as venda para entrega futura , and
it is covered in local version Brazil by the future delivery functions.
Integration
The process involves two notas scais – the one you receive that functions as an invoice, and the one that you receive with the
goods. Both contain relevant tax information.
Features
The system automatically creates notas scais for the following types of future delivery invoices:
Debit notes
Credit notes
Cancellation of invoices
And for the following types of future delivery shipments:
Activities
1. Enter a purchase order with the item category Standard . Enter the tax code K1 (delivered with the standard system, for
“future delivery purchasing I/R”) at the item level. Deactivate the GR-based IV (Goods-Receipt-Based Invoice
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Veri cation) indicator at the item level.
2. Enter an invoice with reference to the purchase order. Enter the nota scal number of the invoice as the reference
document, and enter the tax code K1 for the selected items.
3. Create a goods receipt for purchase order with an appropriate movement type. Enter the nota scal number of the
delivery as the delivery note, and the nota scal number of the invoice as the header text. Enter the tax code K0 (for
“future delivery purchasing G/R”) for all selected items.
Consignment
Use
See Consignment .
To cover Brazilian requirements, the system generates notas scais in the following cases:
1. Based on the consignment shipments
2. Based on the consignment invoices
Debit notes
Credit notes
Prerequisites
You need to create a separate material for consignment stock, since it must be valuated separately from all normal materials.
Activities
You process consignment materials as follows:
1. Enter a purchase order
Specify item category Standard (leave blank), and enter tax code K6 at the item level.
2. Post a goods receipt for the purchase order
Specify an appropriate movement type. Enter the nota scal number of the nota scal that accompanies the
consignment goods in the Delivery Note eld, and enter tax code K5 for all selected items.
3. Post goods issues (following the standard procedure)
You may transfer the material to your own stock by a material-to-material transfer.
4. Create an invoice with reference to the delivery note
Enter the nota scal number of the delivery in the Delivery Note eld, and the nota scal number of the invoice as the
reference document. Enter tax code K6 for all selected items.
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Third-Party Processing
Use
See Third-Party Processing.
In Brazil, third-party processing involves third-party shipments, vendor invoices, supplier invoices, and future-delivery supplier
invoices.
The graphic below illustrates the relationship between customers, vendors, and suppliers:
Third-Party Processing in Materials Management (MM)
Vendor’s Perspective
As a vendor, you create the nota scal based on the supplier’s invoice. To do this, proceed as follows:
1. Enter a purchase order with item category S (third party); you can also convert a purchase requisition created in Sales
and Distribution (SD). Create a goods receipt for the purchase order with an appropriate movement type. Create an
invoice with reference to the delivery note. Enter the nota scal number of the invoice as the reference document, and
the nota scal number of the actual shipment as the vendor text.
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2. Create a goods receipt for purchase order with the same movement type. Enter the nota scal number of the delivery as
the delivery note.
3. Create a Financial Accounting (FI) document with ICMS tax postings.
4. For the supplier future-delivery shipment, create a nota scal using the Nota Fiscal Writer . Enter the nota scal number
of the symbolic delivery. Enter the nota scal number (in this case, a document number) of the invoice as original
document, and enter the nota scal number of the actual shipment as the observation.
Customer’s Perspective
As a customer, you create notas scais based on the following third-party shipments:
Shipments with an appropriate movement types
and on the following vendor invoices:
Debit note
Credit note
Proceed as follows:
1. Create a purchase order with item category Standard (leave blank). Enter the supplying vendor in the header details.
2. Create a goods receipt for purchase order with the rst movement type. Enter the nota scal number of the shipment as
the delivery note, and the nota scal number of the invoice as the header text.
3. Create an invoice with reference to the delivery note. Enter the nota scal number of the invoice as the reference
document, and the nota scal number of the shipment as the vendor text.
 Note
Use goods-receipt-based invoice veri cation – even if the invoice arrives rst.
Posting Cross-Plant Transfers via Goods Issues/Goods Receipts
Use
A cross-plant stock transfer is a typical Brazilian business process within Inventory Management that involves two movement
types that are relevant to nota scal generation.
For more information, see Stock Transfer From Plant to Plant .
Prerequisites
To transfer stock between plants, both a vendor master and a customer master must be de ned and assigned to the plants
involved:
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To assign the vendor master to a plant, from the vendor master, choose Goto Purchasing org.data Purchasing data
Extras Add.purchasing data .
To assign the customer master to a plant, in Customizing for Materials Management (MM), choose Purchasing
Purchase Order Set Up Stock Transport Order.
You also need to enter account assignments for transaction key GBB (Offsetting entry for inventory posting) and offset TRA. To
do so, in Customizing for MM, choose Valuation and Account Assignment Account Determination Automatic
Determination Without Wizard Con gure Automatic Postings.
Goods Issues
To enter a goods issue, create a goods transfer with the movement type 833. Enter the tax code A0, A1, A3 or B0 at the item
level.
Goods Receipts
To enter a goods receipt, choose Materials Management Material document Place in storage . The system
automatically uses the movement type 835. Enter the nota scal number in the Delivery note eld, and the corresponding tax
code I0, I1, I3, or C0 at the item level. The system automatically lls the net item value of the issuing plant, which is then printed
on the nota scal.
Posting Cross-Plant Transfers Using Stock Transfer Orders
Use
You may need to process goods movements in other ways than the standard goods issue/goods receipt process; it may be
necessary to use internal stock transfers between your plants. To generate a stock transfer using Material Requirements
Planning (MRP), you need to enter the goods issue by means of a delivery (sale) in Sales and Distribution (SD) and the goods
receipt in Materials Management (MM). For more information, see Stock Transfer Using Stock Transport Order .
The system comes complete with two movement types needed for posting a stock transfer order:
Movement type 862 for goods issue
Movement type 861 for good receipt
Procedure
To post a stock transfer order using MRP, proceed as follows:
1. In MM, create a stock transfer order in the receiving plant.
From the SAP Easy Access screen, choose Logistics Materials Management Purchasing Purchase Order
Create Vendor/Supplying Plant Known .
2. Generate a delivery document in SD.
From the SAP Easy Access screen, choose Logistics Sales and Distribution Shipping and Transportation
Outbound Delivery Create Collective Processing of Documents Due for Delivery Purchase Orders .
3. Perform picking and packing of the goods, and post a goods issue in SD.
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From the SAP Easy Access screen, choose Logistics Sales and Distribution Shipping and Transportation
Outbound Delivery Change Single Document .
4. Print an outgoing nota scal with the Nota Fiscal Writer.
5. Post a goods receipt in MM.
Changing Nota Fiscal Values

The system automatically generates a nota scal once you have:
Entered an invoice within Logistics Invoice Veri cation (MM-LIV)
Entered a goods movement within Inventory Management (MM-IM)
Completed any of the other processes with integrated nota scal creation, such as subcontracting
If you need to make subsequent changes to the nota scal, you must do so via the Nota Fiscal Writer . You can change the
following nota scal values:
Tax law ICMS
Tax law IPI
CFOP code
Tax base amount, excluded base amount, and other base amount
Tax rate
Tax value
Discount
Insurance
Other expenses
Observation eld, used, for instance, to refer to external documents
Item texts
Note the following for MM-LIV:
1. You cannot change the values for price , freight , or total on the nota scal screen – since the system calculates the price
based on the value and quantity, and it derives the freight and total from the invoice. You can, however, change these
values on the invoice veri cation screen.
2. Any changes you make on the nota scal level will be lost if you change them subsequently on the invoice level.
Con guration for CT-e Scenarios
Use
To be able to process a CT-e in an incoming scenario in MM, or an outgoing scenario in SD, you must perform the Customizing
and con guration procedures described in the following sections:
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More Information
For more information about the general Customizing and con guration required for CT-e, see Customizing for CT-e
Use
To be able to enter an incoming CT-e in MM, you must perform the con guration and steps described here.
Con guration
This section describes the con guration for an incoming CT-e scenario in MM.
Con guring Tax Code MM
Condition types are available to calculate ICMS on a CT-e. They are different from ICMS on freight in nota scal and from ICMS
on goods. This also applies to ICMS ST. Two other conditions are available to calculate the Complementary ICMS tax (ICMS
DIFAL). For more information, see SAP Note 1792935 , CT-e: Incoming Complementary ICMS. As ICMS DIFAL is only relevant
for consumption/asset material transportation, then it is necessary to set the usage of the tax code as Consumption.
To use these condition types, it is necessary to create an MM tax code (or customize an existing one), activating the related
condition types, as follows:
Tax Conditions
ICMS CIC1 – ICMS on Conhecimento
CIC2 – ICMS Non-Deductible on Conhecimento
CST1 – Sub. Trib. on Conhecimento
CST2 – Sub. Trib. Non-Deductible on Conhecimento
CCOP – ICMS Conh Complement
CCOX – ICMS Conh Compl 100
PIS Activate the existing condition types
COFINS Activate the existing condition types
 Note
For ICMS, it is not necessary to activate all conditions. Activate only the conditions related to your tax classi cation.
You maintain tax codes in Customizing for Financial Accounting under Financial Accounting Global Settings Tax on
Sales/Purchases Calculation Settings for Tax Calculation in Brazil De ne FI/MM Tax Codes . Here you activate
conditions for a tax code by choosing Goto Maintain Condtions .
Determining Purchasing Tax Code

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For PO tax code determination, you can use the NAVS condition technique. For more information, see SAP Note 501054 ,
FAQ: Taxes in purchasing.
 Note
The NAVS condition technique does not work if your pricing procedure has requirement 60 in the NAVS condition. In this
case, you can either remove it or create another pricing procedure depending on your business needs.
Con guring Conhecimento Determination
Conhecimento determination is used to differentiate a normal service purchase order from a purchase order intended to be
used as a base document for the creation of a CT-e. In addition to the new condition types, the purchase order for CT-e is also
different in other aspects:
For CT-e, the taxes are calculated at Purchase Order item level. For ISS, the taxes can be calculated at service item level.
The ICMS and ICMS ST rates are different in goods documents than in CT-e. For CT-e, the rate is indicated in the column
ICMS on Freight, if it exists in the Tax Rate Tables. This column is maintained in the Tax Manager’s Workplace Brazil
(transaction J1BTAX), in Maintain ICMS Values (table J_1BTXIC1). For others Tax Rate Tables, ICMS Base and ICMS
Rate are used.
In a standard nota scal (for example, 1A) the freight value is just a part of the Net Amount. For CT-e, however, the Net
Amount represents the freight value itself.
The system determines that a document is a CT-e when the condition type CONH (or another condition type assigned to the
internal code CONHECIMENTO) is found in the pricing procedure. The condition CONH can be activated in the pricing procedure
either manually or via a correspondent condition record retrieved by an access sequence. An access sequence is not provided to
determine CONH as you might have different requirements to determine if a process corresponds to freight.
Creating Condition CONH in Purchasing Calculation Schema
The following steps are an example. You can adapt them to an existing condition type and purchasing calculation schema
accordingly.
1. Create purchasing condition CONH in Customizing for Materials Management under Purchasing Conditions De ne
Pricing Determination Process De ne Condition Types .
2. Enter purchasing calculation schema de nition menu in Customizing for Materials Management under Purchasing
Conditions De ne Pricing Determination Process De ne Calculation Schema .
3. Select schema RM0000 and choose Control Data.
5. Enter the information as follows, where the value 30 in the Step column is an example:
Step Counter Condition Type Requirement
30 0 CONH 10
 Recommendation
When creating the condition CONH (step 1) include an access sequence in it. Otherwise, whenever the associated pricing
procedure (that is, RM0000) is called, the purchase order will activate CT-e determination and CT-e taxes calculation.
Assigning Purchasing Condition to Internal Code CONHECIMENTO
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1. Execute transaction J1BTAX.
2. Enter BR in the Country eld.
3. Choose Condition Setup Condition Mapping Assign Conditions to Internal Codes .
5. Enter the information as follows:
Internal Code Application Condition Type
CONHECIMENTO M CONH
Tax Group 6: Service Item Level
Tax group 6 is available for CT-e. This tax group makes use of the dynamic exception tax table and uses Service Item Level as the
key for retrieving tax data (for example, rate and base). For more information, see SAP Note 1714749 , CT-e LC: Extension of
Tax Calculation Features.
You de ne tax groups for dynamic exceptions in Customizing for Financial Accounting under Financial Accounting Global
Settings Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil De ne Tax Groups for Dynamic
Exceptions
You maintain ICMS dynamic exceptions in Customizing for Financial Accounting under Financial Accounting Global Settings
Tax on Sales/Purchases Calculation Settings for Tax Calculation in Brazil Tax Rates Maintain ICMS Dynamic
Exceptions
For tax calculation purposes, if there is more than one service item in the purchase order, the item with the higher net value is
used for retrieving tax data. That is, the selected service determines the condition records to be retrieved. You can overridde
this selection using the BAdI Select Service Master Used in Dynamic Exceptions (J_1BCTE_SELECT_SRVPOS). For more
information, see Business Add-Ins (BAdIs) for Incoming and Outgoing Scenarios in Customizing for CT-e.
ICMS Complement - DIFAL
When carrying out a consumption/asset material transportation, if the intrastate ICMS Tax is greater than the interstate Tax, it
is necessary to collect the difference between them, that is, the ICMS complement. For example, if a transport from state RS to
state SP has 5% of ICMS and the intrastate tax for SP is 12%, it is necessary to evaluate the difference between the taxes.
In the standard pricing procedure, the DIFAL base amount is stored in condition type BX30 and the tax amount is stored in
condition type BX31.
In the CT-e document, tax type CCOP highlights the calculated DIFAL tax value. The CCOX condition type (in the pricing
procedure) stores the offset (minus CCOP) so that this value is not added in the total taxes of the nota scal.
Con guring Screen Controls
You must assign NF Types to the screen controls for handling CT-e incoming documents.
You must create your own NF Types for incoming documents in Customizing for Cross-Application Components under General
follows:
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description
<C1> Conhecimento Change 28 Change application

MM-IV)
<C1> Conhecimento Create 23 Create application

MM-IV)
<C1> Conhecimento Display 21 Display application

incoming generated CT-e
<C1> Conhecimento X Change 29 Change manually

<C1> Conhecimento X Create 25 Create incoming CT-

incoming e manually
<C1> Conhecimento X Display 22 Display manually

Activities
Creating a CT-e
You use the following steps to create a CT-e in an incoming scenario in MM.
1. Create a Purchase Order
1. Start the purchase order creation process. In the SAP Easy Access menu, choose Logistics Materials Management
Purchasing Purchase Order Create Vendor/Supplying Plant Known .
2. In the Vendor eld select the company that executes the freight. Enter the Purchasing Organization, Purchasing Group
and Company Code.
3. Enter a Goods Supplier business partner to determine the starting point (ship-from location for tax determination). To
determine the ship-to location, enter a code in the Tax Jurisdiction Code eld in the Invoice tab.
4. Create a new item with Item Category D – Service. The Item Category that you select indicates that the item of the
document is a service.
5. Enter the Short Text, Material Group and other relevant information.
6. Enter information in the Service tab by adding new lines and entering Short Text (or Service Number from Service
Master) and Gross Price.
7. Activate the condition type CONH or another condition assigned to the internal code CONHECIMENTO. The system can
be con gured to allow the manual addition of this condition or to use an access sequence to automatically activate the
condition according to the vendor, the order type or other information available in the PO.
8. In the Invoice tab, ensure that the Service-Based Invoice Veri cation checkbox is not selected. If selected, it generates
one line for each service item. In the same tab, enter a tax code with CT-e conditions (CIC1, CIC2, CST1, and so on) and
choose the Taxes pushbutton to verify the calculated taxes.
9. Save the purchase order.
2. Create a Service Entry Sheet
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Service Entry Sheet creation does not require any speci c procedures other than the standard process. However, it is necessary
to perform invoice veri cation.
1. Start the Service Entry Sheet creation process. (In the SAP Easy Access menu, choose Logistics Sales &
Distribution Bill of Services Service Entry Sheet Create .)
2. Enter the required information and save the document.
3. Create an Invoice
Create an invoice referring to the purchase order created above.
As of SAP Note 1766209 , CT-e: new CT-e Tax Calculation determination for Incoming, tax calculation does not take NF Type
into consideration when executing an invoice, only condition CONH, as described in Con guring Conhecimento Determination.
4. Fill in the CT-e Details
Fill in the details of the CT-e. For more information, see Nota Fiscal Writer and Nota Fiscal Data.
Use
To be able to enter an outgoing CT-e in SD, you must perform the con guration and steps described here.
In general, the outgoing CT-e process follows the steps of a normal sales process, that is, the creation of a Sales Order, the
creation of a Billing Document and the correspondent CT-e document.
Con guration
This section describes the con guration for an outgoing CT-e scenario in SD.
Freight Service Con guration
Create a material for freight service with Material Type DIEN – Service.
Sales Order Type Con guration
Create a new sales order type (or use an existing one) and assign it to a nota scal type with model 57.
Con guring Tax Code SD
Create a new SD tax code (or use an existing one).
Activate the options Calculate ICMS (or Calculate Sub. Trib.), Calculate PIS and Calculate COFINS, depending on the
tributary classi cation of the freight.
In order to calculate freight taxes in SD, set the customer usage to Industrialization.
Ship-from location for SD
To determine the ship-from location, use Customizing activity Map CT-e Partner to NF Partner Function
(J_1BCTE_PAR_MAPV).
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The Partner Function assigned to the 0 – Goods Sender CT-e Partner determines the ship-from location. For example, when the
RE – Bill-to Party is mapped, the Bill-to Party business partner address of the Sales Order is the ship-from location.
Item Description
Ship-From Address of Business Partner mapped as Goods Sender in the view
Ship-To Address of “WE – Ship-to Party” business partner (no mapping)
This ship-from location affects tax rates, CFOP determination and the determination of the elds for Jurisdiction Code in the CT-
e.
Screen Control Assignment
You must assign NF Types to the screen controls for handling CT-e outgoing documents.
You must create your own NF Types for outgoing documents in Customizing for Cross-Application Components under General
follows:

description
<CO> Conhecimento Change 28 Change application

outgoing generated CT-e (via
MM-IV)
<CO> Conhecimento Create 24 Create outgoing CT-

outgoing e manually
<CO> Conhecimento Display 21 Display application

outgoing generated CT-e
<CO> Conhecimento X Change 29 Change manually

<CO> Conhecimento X Create 24 Create outgoing CT-

outgoing e manually
<CO> Conhecimento X Display 22 Display manually

Activities
Creating a CT-e
You use the following steps to create a CT-e in an outgoing scenario in SD.
1. Create a Sales Order
1. Create a new sales order using the sales order type assigned to a CT-e nota scal type.
2. Enter the Sold-To Party, Ship-To Party and the PO Number.
3. Add a new line for a material that will represent the freight service. Enter Quantity, Plant and Amount. Inform a Tax Code,
CFOP and texts for the related taxes in the Country tab.
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4. In the Item Condition tab, activate the condition type CONH or another condition assigned to the internal code
CONHECIMENTO.
2. Create a Billing Document
As freight is a service, Outbound Delivery is not necessary.
1. Create a Billing Document using the Sales Order number as a reference and save it.
2. Execute transaction J1B3N to display the created CT-e.

Some Brazilian processes are exempt of ICMS, and therefore it should not be charged. The source and end locations of the
service, and the product being transported, usually determine ICMS exemption according to federal and state laws.
However, even if it is not necessary to calculate ICMS, the ICMS base value must be visible in the CT-e and ICMS must be
reported in legal reports. The ICMS base for ICMS exempt must be calculated and displayed as the excluded base. The law that
allows for exemption of ICMS must be printed on the CT-e.
MM ICMS Exempt
MM scenarios that are ICMS-exempt require the use of the correct tax code. Additional Customizing steps must be carried out
to report the ICMS exemption correctly, as follows:
Create a new tax code (or use an existing one), making sure that the option ICMS-ex. is marked.
Sales/Purchases Calculation Settings for Tax Calculation in Brazil De ne FI/MM Tax Codes
A tax type for ICMS-exempt must be active. To move the base values to the CT-e document, the tax type for ICMS-
exempt must have Ex. Base Cond. and Other Base Con. lled with the correct conditions. With this customizing the
condition record that identi es the ICMS exemption is generated. In SAP default customizing, this condition is BICx (for
example BIC0 or BIC1), related to the internal code ICMSNULLEXEMPT, application TX.
Sales/Purchase Basic Settings Brazil Condition-Based Tax Calculation Assign Condition Types to Internal Codes
for Tax Conditions .
SD ICMS EXEMPT
For SD scenarios, the tax code must have Industrialization as Customer usage and ICMS-exempt must be checked. The tax
type use must have Ex. Base Cond correctly lled. With these settings, the condition record that identi es the ICMS exemption
is generated. In the default Customizing, this condition is BICx (for example BIC0 or BIC1), related to the internal code
ICMSNULLEXEMPT, application V.
External Services Management (MM-SRV)
Purpose
In Brazil , you can procure and manage ISS -taxed services using External Services Management (MM-SRV). The following
documentation describes the Brazilian aspects of the component. For generic information about the component, see External
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Services Management (MM-SRV) .
Integration
MM-SRV has been enhanced to cover the following Brazilian requirements:
The service master contains a eld for the generic service type, which enables maintenance of service-tax data and
determination of the official service type.
The service line contains a eld for the generic service type. The system creates service lines in the purchase order,
contract, service-entry sheet, and purchase requisition.
For standard MM-SRV transactions in which the system calculates tax, the system calculates Brazilian taxes per service
line. You can maintain tax rates based on service numbers.
The system generates a service nota scal from the relevant transactions; the nota scal contains the service number,
official service type, and CFOP code of services that are procured in MM-SRV.
Features
Customizing
Make the required Customizing settings.
Master Data
Maintain service and vendor master data as described.
Business Transactions
You procure services following the standard process in MM-SRV.
Speci c to Brazil , you can enter or display the generic service type in the Tax Tariff Code eld in the following transactions:
contract, purchase requisition, purchase order, and service-entry sheet. The eld is at the service-line level.
The following documentation describes special notes on entering purchase orders and invoices , and what service information is
displayed on the automatically generated service nota scal .
Statutory Reporting
You report service notas scaís in the legal book, Registro de Notas Fiscais – Faturas de Serviços Prestados a Terceiros . To do
so, call Transaction SA38 and run report J_1BLB56.
Constraints
The Brazilian localization of MM-SRV does not include:
Integration of ICMS-taxed services (for example, no support of CFOP code)
Brazilian taxes on limits (in the service speci cation)
Nota- scal integration with the evaluated-receipt-settlement (ERS) procedure
Brazilian taxes in the comparison of quotation prices
Enhancement of standard MM-SRV Business Application Programming Interfaces (BAPIs) for Brazil
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Customizing MM-SRV for Brazil

Use
To customize External Services Management (MM-SRV) for use in Brazil , make the settings as described below.
 Note
Since MM-SRV localization for Brazil complies with the requirements set forth in Brazilian law MP-135/LC116, ensure that
you have implemented the legal change and con gured your system as described in SAP Notes 852302 and 747607.
Activities
Make the following settings, divided into general tax settings, service-type settings, and screen layout options:
IMG Path Comments
General Tax Settings
Materials Management External Services Management In Brazil , services may be taxed differently depending on a
Taxes at Individual Service Level number of parameters, so it is necessary to calculate tax for each
individual service, that is, per service line. To con gure this, set the
Taxes at Ind. Serv. Level indicator for Brazil .
When this indicator is set, the Taxes tab is available on the service-
line detail screen, which provides an input eld for the tax code.
Financial Accounting Financial Accounting Global Settings You can use the service number as a dynamic key eld when you
Tax on Sales/Purchases Calculation Settings for Tax de ne tax groups. A tax group is characterized by up to three
Calculation inBrazil De ne Tax Groups for Dynamic dynamic keys and it enables you to maintain tax data, such as tax
Exceptions rate and tax base, for any combination of available key eld values.
Via tax groups, you can maintain tax data for individual services or
for services in conjunction with other dynamic keys, such as vendor
or service location.
Financial Accounting Financial Accounting Global Settings For the MS (External Services Management) application, you need
Tax on Sales/Purchases Basic Settings Brazil De ne to de ne for each pricing condition those taxes that are to be
Which Taxes Are Included in MM-SRV Price Conditions included in the net price when the system calculates tax amounts.
Service Types
Cross-Application Components G eneral Application The system derives the official service type (needed for reporting)
Functions Nota Fiscal Service Types from either the service number or the generic service type.
Depending on how you con gure the system to derive the official
service type, make settings in the following activities as required:
De ne Official Service Types for Incoming Notas Fiscaís
De ne Generic Service Types
Assign Official Service Types to Generic Service Types
Assign Official Service Types to Services
Note that in the service master and on the service-line

detail screen, you enter or display the generic service type
in the Tax Tariff Code eld.
For more information on con guring service types, see the

IMG documentation.
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IMG Path Comments
Screen Layout Options
Materials Management Purchasing Purchasing Documents In Brazil , since services are taxed individually, invoice veri cation
Purchase Order De ne Screen Layout at Document Level needs to occur per service line, in order for separate service lines
to be listed in the related nota scal. To have all service lines as
separate entries in the nota scal, service-based invoice
veri cation must be activated for each service item in the purchase
order. To do this, you set the Srv-based IV indicator in the purchase
order, on the Item Detail screen, on the Invoice tab.
To make this indicator visible, follow the path listed, and choose
eld selection keys ME21N, PT9F, and NBF, and from the Details
screen double-click the eld selection group GR/IR Control .
De ne the eld LE-Related Invoice Veri catn as a required entry.
Materials Management External Services Management The tax code is a mandatory entry, required for the system to
De ne Screen Layout calculate taxes. In the purchase order, service-entry sheet, or
contract, you can specify the tax code per PO item or per service
line. To make the tax-code eld visible on the service-line level,
follow the path listed and for each of the eld selection keys 4, 7,
ME21, ME31, PT9, and NB, double-click Additional data , and set
Tax code to optional.
ISS taxes are de ned per municipio , which is identi ed in the

system by a tax jurisdiction code . Note that there is an option to
enter a tax jurisdiction code per service line in the service-detail
screen, but that the system does not use this for tax-calculation
purposes. For this reason, we recommend that you con gure it as
hidden. To do so, for each of the eld selection keys ME21, 4, PT9,
and NB, double-click Additional data , and set the Jurisdiction
code eld to hidden.
De ne the eld Tax Tariff Code as an optional input eld, for

entering or displaying the generic service type , on the service-
detail screen of a purchase order, service-entry sheet, or contract.
Follow the path listed and for the desired eld selection keys (for
example, ME21 and PT9), set Tax Tariff Code to optional. Or you
can con gure this eld as a mandatory input eld in the service
detail to ensure that an entry is made in case you use free-text
service lines
Materials Management External Services Management In the standard system, the Tax Tariff Code eld is hidden. For
Service Master Field Display for Service Master De ne Field customers who operate with a Brazilian company code, we
Selection for Service Master (Individual Maintenance) recommend that you de ne this eld as a mandatory input eld.
This is not necessary if you do not make use of the generic service
type, which is what is entered in this eld. In this case, the system
would have to derive the official service type from the service
number, but this would prevent you from being able to procure
services by means of free-text service lines.
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IMG Path Comments
Materials Management Purchasing Purchase Order The Brazil tab on the PO item (with the elds NCM code, material
De ne Screen Layout at Document Level usage, produced in-house, and material category) should be hidden
for PO service items. To do so, follow the path listed, choose eld
selection key PT9F, then Administrative Data , and deselect all
elds.
If the material group is not required for service items, then you can
con gure the Matl group eld in the item overview as an optional
input eld. To do so, for each of the eld selection keys AKTH, NBF,
ME21, ME21N, and PT9F, choose Basic Data, Item , and set
Material group to Opt. entry .
Maintaining Service Master Data

Use
The central store of information about a service. For generic information about the service master, see Service Master Record .
Procedure
To access the service master, on the SAP Easy Access screen, choose Logistics Materials Management Service Master
Service Service Master .
In Brazil , you maintain your master data following the standard procedure. In addition, under Basic Data , you can enter a
generic service type for the service in the Tax Tariff Code eld.
 Note
It is not mandatory to enter a generic service type. It provides exibility in how you want the system to determine the tax
rate and official service type, as follows:
Regarding tax calculation , you can maintain relevant tax rates based on any of the dynamic key elds, such as the service
number, and in this case, the system creates a direct link from the service to the tax rate.
Regarding reporting , the generic service type is used to derive the official service type needed for reporting. However, the
system can also derive the official service type from the assignment of service number to official service type in Customizing.
An exception is if you enter free-text service items in a purchase order, where you need to specify the generic service type
since there is no link to Customizing.
Result
When you go to create a purchase order and enter a service line based on a service master, the system automatically proposes
the generic service type from the service master.
Maintaining Vendor Master Data
Use
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The central store of information about a vendor.
Procedure
To access the vendor master (including purchasing details), on the SAP Easy Access screen, choose Logistics Materials
Management Purchasing Master Data Vendor Central ….
In Brazil , you maintain your master data following the standard procedure. In addition, on the Purchasing Data screen, you can
set the Srv.-Based Inv. Ver. (Service-Based Invoice Veri cation) indicator.
Result
When you go to create a purchase order and you procure services from a vendor for which you have maintained this indicator,
the system automatically sets the Srv.-Based IV indicator at the item level, on the Invoice tab. This indicator must be set for
Brazil.
Entering Purchase Orders

On the SAP Easy Access screen, choose Logistics Materials Management Purchasing Purchase Order Create
Vendor/Supplying Plant Known . Follow the standard procedure for creating a purchase order, but note the following details
for procuring services in a Brazilian company code:
Item Level
Ensure that the Srv.-Based IV (Service-Based Invoice Veri cation) indicator is set, on the Invoice tab. This is required so that the
system creates, per PO service line, a separate invoice item and a separate nota scal item in the subsequent invoice and nota
scal documents. Also make sure that the GR-Based IV (Goods-Receipt-Based Invoice Veri cation) indicator is set.
Service-Line Level
When you enter service items with item category D, the Services tab appears in the item detail, where you enter the service
speci cations. Here you can enter service lines as follows: 1) with reference to a service master, by entering the service number,
or 2) as a free-text service line, in which case you must manually enter a generic service type in the Tax Tariff Code eld.
The system calculates taxes on service-line level, according to Brazilian requirements. To enable correct tax calculation, you
must specify a tax code that has been de ned as service-enabled (see Customizing ). You enter the tax code on the service-line
level. If the same tax code applies to all service lines in the PO item, you can enter the tax code on the item level, but note that
you must do so before entering any service lines.
 Note
If you enter several service lines perPO, it is easiest to enter them on the Service Speci cations screen. To access the
screen, on the Services tab at service-line level, choose the pushbutton with the quick info text Full Scr.:Services . Note
that from the Service Speci cations screen, you can branch to tax information by choosing Goto Taxes .
Note that there are elds for the tax jurisdiction code on both the item and service-line level, but the system does not use this
for tax-calculation purposes. For this reason, you may want to hide the eld (see Customizing ).
Entering Invoices
Procedure
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1. On the SAP Easy Access screen, choose Logistics Materials Management Logistics Invoice Veri cation
Document Entry Enter Invoice .
2. Enter the related purchase order or service-entry sheet that you are posting the invoice in reference to.
3. Enter standard invoice data as required.
4. Enter an appropriate nota scal type on the Details tab.
5. Choose Enter .
A Nota Fiscal pushbutton appears; from here you can branch to the service nota scal that the system generates
automatically when you save the invoice.
6. Check the nota scal data. If the CFOP eld is open for input and the system did not ll it based on your Customizing
settings, then you must enter a CFOP code manually.
7. Return to the invoice and save your invoice.
Result
The system creates:
An invoice that contains an invoice item for each service line in the purchase order
If you distribute a service line to different cost elements, the system creates a separate invoice item for each account
assignment. So, for example, if you assign a service line to three different accounts, the system creates three separate
invoice items for that service line.
A service nota scal
The system creates a nota scal item for each service line in the purchase order. There is no differentiation in the case of
multi-account assignment per service line, as there is in the invoice. So, in the above example, the system creates a
single nota scal item, not three.
Service Nota Fiscal
De nition
A nota scal for services.
Use
The system automatically generates a service nota scal when you enter an invoice in Logistics Invoice Veri cation for a service
you have procured. The nota scal serves as the basis for statutory reporting.
Structure
The nota scal contains an item for each service line created in the purchase order.
If the Service indicator is set for the tax code used to procure the service, then the service nota scal displays information
relevant to services, including:
Service number
Generic service type (in the Control Code eld)

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CFOP code
And at the item-detail level, the system hides information that is relevant only for materials, such as material usage. At the
item-detail level, on the Taxes tab, it displays the derived official service type , required for reporting, in the SrvTyp In (Official
Service Type for Brazil (Incoming)) eld.
Determination of Official Service Type
Use
See official service type.
Features
The system derives the official service type in one of the following ways, depending on how you maintain service master data
and customize service types :
1. Service number
The system reads the assignment you have con gured in the Customizing activity, Assign Official Service Types to
Services .
2. Generic service type
The system reads the generic service type assigned to the service master, or the generic service type that you enter
directly in the relevant transactions, such as purchase-order entry. It then reads the assignment in the Customizing
activity, Assign Official Service Types to Generic Service Types .
Note that the direct assignment of an official service type to a service (case 1 above) takes priority over the assignment of a
generic service type to a material.
If you procure a service by entering a free-text service line, the system reads the generic service type you enter in the
transaction. This is a mandatory entry since the system does not access the service master data.
Integration of SAP ERP with SAP TM: Customizing
Use
The following list contains required Customizing activities related to the integration of SAP ERP with SAP Transportation
Management for Brazil. The activities are listed in the same order in which they appear in the Implementation Guide (IMG),
under Integration with Other SAP Components Transportation Management Invoice Integration Brazil .
Assign TM Sales Organizational Unit to Plant in Brazil
Assign TM Shipper to ERP Vendor
Assign MM Tax Condition Types to Condition Types in AB Documents
Prerequisites
You must have enabled the following business function: TMS-ERP Integration: Localization Brazil (LOG_TM_ERP_LOCL_BR01)
and the related dependencies.
4/11/2024

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Automatic generation of notas scaís

Statutory reporting, including the modelos

Localized version of the Payroll (PY) component, Payroll Brazil (PY-BR)

Invoice Veri cation

Sales and Distribution (SD)

Integration of SAP ERP with SAP TM: Customizing

2. Upload tax rates for your tax codes.

3. Maintain the conditions for tax calculation in SD.

Customizing Settings Made Using CATT

Billing document types

Sales document item categories

Sales document types

Automatic nota scal header texts

Billing Document Types

Billing Document Type Short Text

F2B Nota scal

L2B Debit memo

Billing Document Type Short Text

FAR Invoice (future delivery)

FC Nota scal (consignment issue)

FCR Nota scal (consignment ll-up)

G2B Credit memo

REB Credit memo (returns)

FST Nota scal (ship-to party)

FTB Nota scal (transfer)

Sales Document Item Categories

Sales Document Item Category Short Text

KBNB Consign. Fill-up BR

KENB Consignment issue

LANB RTP pickup

LBNL RTP pickup (statistical) in nota scal

LPNB Sched. Agr. Item BR

NLNB Standard stock transport order item

RBB Standard batch item

RBN Standard item

TBL RTP shipment

TBLL RTP (statistical) in nota scal

TBN Standard item

TBNL Item with statistical billing

TBPS Standard item (PS)

TBS Third-party item

TBX Non-stock item

TBB Standard batch item

Document Procedures (for Pricing Procedure Determination)

Document Procedure Short Text

F Sales future delivery

Document Procedure Short Text

Sales Document Types

Sales Document Type Short Text

ORB Standard order

DRB Complement request

COB Schedule agreement

CRB Correction request

CXB Credit memo (error)

DLB Delivery without order

DXB Debit memo request

KBB Consignment ll-up

KEB Consignment issue

LAB RTP pickup with separate nota scal