Material Master- Brazil Localization

Generated by Jive on 2014-05-16+02:001

Material Master- Brazil Localization

Material Master in Brazil play a very important role in identification of tax structure for the SAP MM. Correctconfiguration of material master as well as understanding of key fields is very important for Brazil Localization.Also, the taxes configuration involved in Brazil business are handled by the individual teams MM, SD & FICO.

Explained below are the key fields which should be considered while configuring the SAP material master &vendor master data in Brazil. These fields play a critical role in understanding of SAP MM localization relateddetails in Brazil.

1. Material MasterThe following three material master views play a very important role in configuration of new material- SALESVIEW, FOREIGN TRADE IMPORT/EXPORT VIEW & ACCOUNTING VIEW.

1. SALES VIEWSales View contains the information related to general data & Tax data. Tax data section provides the detailabout the tax classification which will be applicable for the type of material/service/product created.

We can configure the tax classification as option 1- having IPI/ICMS/Sub. Trib or Option 2- having ISS-Service, Field: TSKMT- VTEXT.The main difference between option 1 & option 2 is that former option is applicable where service is beingoffered as a product. This is municipal tax levied on services. Calculation of ISS (Service tax) depends onmany factors, such as type of service or location.



Based on the above information configured, tax applicable to product/service is determined. The main taxeswhich are applicable in Brazil are IPI/ICMS/Sub. Trib/PIS/COFINS or ISS.

2. FOREIGN TRADE IMPORT/EXPORT VIEWForeign trade import/export views provide us the details of foreign trade data, Origin/EU market organization/preference, legal control and material CFOP category. Under Foreign trade, we have NCM code i.e.consumption control code. Snapshot below shows the control code and Material CFOP category as anexample.



CONTROL CODE is used calculating the IPI tax percentage. IPI Stands for Imposto Sobre ProdutosIndustrializados. In Brazil, IPI is an excise tax levied at federal level on most domestic and importedmanufactured goods. IPI is assessed per product and is applied to the gross price. In Indian terminology, IPI isequivalent to VAT tax. The field is MARC-STEUC.

Path to configure NCM code to material group is below:

Cross-Application Components General Application Functions Nota Fiscal NCM Codes Assign toMaterial Groups

The system enters this value when you create a purchase order, unless you have maintained a different NCMcode in the material/vendor info record.

Material CFOP category, this field contains the CFOP category for the material, which the system uses todetermine the CFOP code during nota fiscal generation. Nota fiscal is a statutory document which is generatedon the movement of material and is approved by the federal authority of Brazil.



Path for configuring the CFOP codes in SAP is below:

Cross-Application Components General Application Functions Nota Fiscal CFOP Codes Assign toMaterial Groups

The field is MARC-INDUS

It includes information on the good's origin as well as the type of operation, such as sales, returns, or stocktransfers. The CFOP number must be printed on all Notas fiscals and is included in legal reporting.

3. ACCOUNITNG VIEW

The third view in the material master is accounting view which provides the inputs fordetermination of CFOP code. These inputs are available in the Accounting View 2 of the materialmaster. Under section Determination of CFOP code, fields Material usage (MBEW-MTUSE),Material Origin (MBEW-MTORG) and Produced in-house (MBEW-OWNPR) indicator.These 3 fields are linked in determination of CFOP code used in Nota Fiscal generation.



Material usage (MBEW-MTUSE)

This indicator shows the intended usage of a particular material in inventory

Material Origin (MBEW-MTORG)This indicator shows whether the products were produced inside Brazil or were imported. If the goods wereimported, it also indicates whether they were imported directly by the company or not.

Produced In-house (MBEW-OWNPR) IndicatorThis indicator shows whether the material was produced by the company or another one. It is used for purposeof CFOP determination.If the indicator is set the material was produced by the company. If the indicator is not set the material wasproduced by another company.

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Material Master- Brazil Localization