MM Display Tax Conditions in Purchase Order For Brazilian Companies

MM: Display Tax Conditions in
Purchase Order for Brazilian

Companies
Applies to:
This solution could be applied for release 4.6 and higher.
The documents was created using ECC 6.0
For more information, visit the Enterprise Resource Planning homepage
Summary
Before the OSS note 1551566 provided by SAP in 2011, was not possible to show the Brazilian tax
conditions in the tab Conditions in the PO without a custom program/formula.
With this note now is possible to bring the Brazilian taxes to tab Conditions and also it helps to solve
another problem for Brazil, to print the tax values in the standard PO form, once in Brazil is common to have
the price of goods/products negotiated with ICMS amount included.
Author:
Carlos Moatto
Company: CWM Consultoria em Informtica Ltda.
Created on: 3 June 2011
Author Bio
Carlos Moatto, is currently working on CWM Consultancy company, associated with
working with SAP Solutions since year 2000 as certified consultant, also is Certified
SAP Instructor, giving SAP trainings in Brazil, specialized in Brazilian taxes on Logistic
area, he also is MBA, in Logistics.
SAP COMMUNITY NETWORK

2011 SAP AG
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MM: Display Tax Conditions in Purchase Order for Brazilian Companies
Table of Contents
Aim of this document .......................................................................................................................................... 3
Short overview about Brazilian taxes ................................................................................................................. 3
ICMS ............................................................................................................................................................... 3
IPI
............................................................................................................................................................... 3
Complemento de ICMS ................................................................................................................................... 4

Substituio Tributria .................................................................................................................................... 4
Required setting on SAP to Print Tax condtions out in the PO Form. ................................................................ 5
Adding Formulas to Tax Calculation Procedure ................................................................................................. 6
Creation of Condition Types for Taxes in Purchase Pricing ............................................................................... 7
Adding Formulas to Pricing Calculation Procedure .......................................................................................... 10
Mapping Between Tax Condition Types and Pricing Condition Types ............................................................ 11
Displaying Tax Values in PO. ........................................................................................................................... 12
Related Content ................................................................................................................................................ 14
Disclaimer and Liability Notice .......................................................................................................................... 15

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Aim of this document

This document intent to show an alternative way to have the Brazilian taxes displayed in the tab Conditions
on the PO, making the analysis for the Buyer a little bit easier, once tax procedure TAXBRA has a lot of
levels and conditions that could make the analysis of the Tax amount quite difficult for beginners.
The aim of the SAP not is initially to show tax conditions in the tab Conditions, but we will extend this
solution showing how to print tax values in the standard PO form, without a development to change
the PO printout.
Short overview about Brazilian taxes

Different from other markets, Brazilian companies usually negotiates its goods/products with the *ICMS
included in the price.
There is many taxes involved in one procurement process:
Direct taxes (Withholding taxes):

Withholding taxes are considered direct taxes on purchasing, for a regular procurement process of
services treated in the LC116 we have:
PIS
Program for Social Integration (Federal tax)
COFINS Social Contribution (Federal tax)

CSLL
Social Contribution (Federal tax)
IR
Withholding tax for certain services to be withheld from legal persons
ISS
City tax on services.
this document show how to print the Indirect taxes on PO form.
Indirect taxes:
ICMS
Imposto sobre Circulao de Mercadorias e Servios
Brazilian state tax on the circulation of goods and services. Influencing factors on the ICMS rate are:
-
state of origin and state of destination of the goods
if the customer is subject or not to ICMS
IPI
Imposto sobre Produtos Industrializados Brazilian federal tax on industrial goods; IPI is
charged per product and calculated on the basis of the value of the good including ICMS. The tax
rate due depends on the NBM code, which is a Brazilian classification of products, and the origin of
the product (domestic/imported). Some companies are exempt from IPI (e.g. some governmentowned companies).
Influencing factors on the IPI rate are:
-
type of operation (CFOP) - for example, export, stock transfers...
product classification (NBM code) - a classification of goods issued by the Brazilian

government
if the customer or vendor is subject or not to IPI
usage of the goods (consumption or production)

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Complemento de ICMS
ICMS complement a special form of ICMS which is due if a company buys a product in
another state of Brazil and if the product is used for consumption. The ICMS complement is
calculated as the difference between the ICMS rate charged by the vendors state and the ICMS rate
applicable within the customers state.
Substituio Tributria
In Brazil, certain materials are subject to substituio tributria. This means that the fiscal
authorities transfer the right to collect taxes to the producer or distributor of the goods, called the
substituto tributrio. He pays the tax, including tax on the presumed resale surcharge, and collects
it from the reseller who buys the goods. When re-selling the goods, the buyer can charge the tax on
the surcharge to the original price. The Substituicao tributaria can also influence the CFOP.

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Required setting on SAP to Print Tax condtions out in the PO Form.

1) Note implementation
First step is to apply the OSS note 1551566, to create new objects on SAP.
In the OSS note, you will find an attachment that shows all required steps to create
File:
(1)_Creation_of_New_Objects.pdf
2) Customizing settings
2.1) Create new formulas to read values on TAXBRA and another to recover the tax values as
results of this reading.
Tcode: VOFM
*Step to be done for a Developer.

Double click in the formula 959, and insert the code:
FORM FRM_KONDI_WERT_959.
INCLUDE J_1B_FORM_WRITE_TO_MEMORY.
ENDFORM.
Double click in the formula 960, and insert the code:

FORM FRM_KONDI_WERT_960.
INCLUDE J_1B_FORM_READ_FROM_MEMORY.
ENDFORM
Save and activate formulas

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Adding Formulas to Tax Calculation Procedure

1. tcode: J1BTAX.
2. In the menu, go to Condition setup Calc. Procedures Calc. Procedures MM.
3. In the Procedures group box, select the line with your tax calculation procedure.
4. In the Dialog Structure group box, double-click Control Data to open the overview of your tax calculation
procedure.
5. For each tax condition type that you want to carry over to the pricing calculation schema, enter the
corresponding formula number for the tax calculation procedure in the CalType column. In our example (see
the following figure), 959 is entered as the formula, so that the values for the IPI1 and ICM1 tax conditions
appear in pricing:
Set the formula 959 for all Tax Codes Conditions you want to print in the PO form.

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**Keep in mind that which conditions should be selected is a decision of the company.
After set the formula in each Tax Code Condition, we have to create the equivalent condition types in MM
application.
Creation of Condition Types for Taxes in Purchase Pricing

To enable the system to display the tax values in purchase pricing, you have to create new conditions that
correspond to the tax conditions that are to be used for pricing.
Note: The name of the pricing condition type does not have to match the name of the tax condition type. The
mapping between the two condition types is done in a database table, which is described in the following
documentation.
1. tcode: SPRO.
2. In the SAP Customizing Implementation Guide (IMG), choose Materials Management Purchasing
Conditions Define Price Determination Process Define Condition Types.
3. In the Choose Activity dialog box, double-click Define Condition Type.
4. Create a new entry for each condition type that should be carried over from tax calculation.
Or invoke tcode M/06
5. Enter the following values for each condition type:
For each single condition type you entered the formula in Tax procedure TAXBRA you have to create the
equivalent condition type here and name it In the way you want to see in the PO form.

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Settings for the condition types:

Use the same settings for all conditions.

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We also entered a translation to PT for each condition, if your logon language is PT.
ICM1
ICM2
ICOF
ICON
ICS1
ICSF
IPI1
IPI2
IPIS
IPSF
IPSN
English
ICMS Industr. In(PO)
Portuguese
ICMS Industr. In(PO)
English
ICMS Consump.In(PO)
Portuguese
ICMS Consump.In(PO)
English
COFINS deductible-PO
Portuguese
COFINS deductible-PO
English
COFINS Non Deduct.
Portuguese
COFINS .Dedut. (PO)
English
Sub.Tributaria In-PO
Portuguese
Sub.Tributaria In-PO
English
COFINS Normal Tax
Portuguese
COFINS Indust.In(PO)
English
IPI Industr. in(PO)
Portuguese
IPI Industr. in(PO)
English
IPI Consumpt.In (PO)
Portuguese
IPI Consumpt.In (PO)
English
PIS deductible - PO
Portuguese
PIS deductible PO
English
PIS Normal Tax
Portuguese
PIS Industr. in(PO)
English
PIS Non Deductib.
Portuguese
PIS .Dedut. (PO)
***The condition activated within the tax code that will determine the text in PT or EN that will be printed in
the PO form, we will see it later on on this document.

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Adding Formulas to Pricing Calculation Procedure

1. tcode SPRO.
2. In the SAP Customizing Implementation Guide (IMG), choose Materials Management Purchasing
Conditions Define Price Determination Process Define Calculation Schema.
3. In the Schemas group box, select the line with your pricing calculation procedure.
4. In the Dialog Structure group box, double-click Control Data to open the overview of your pricing
calculation procedure.
Or invoke tcode M/08
5. Add a new entry for each tax condition type with the following values (Note that you must leave the
columns that are not mentioned here empty):
Select the calculation schema for MM that will be used in your implementation, if you have more, do
the same for all used in you company, for local purchasing.
Add in the end of the pricing schema the new entries, entering also the formula 960 to read and recover the
data calculated in TAXBRA.
1) Set the flag in the field PRINT, to standard program used in the PO form to read and print each
tax code condition activated into the tax code used in the item level in the PO.
2) Formula 960 that will retrieve data calculated for the Brazilian Tax procedure TAXBRA.

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Mapping Between Tax Condition Types and Pricing Condition Types

1. Invoke tcode SM30.
2. Enter J_1B_PO_TAX_MAPV as the view name.
3. Switch to edit mode and choose New Entries.
4. Now you can determine on which pricing condition type a specific tax condition type should be mapped:
a. On the left side, select the pricing condition type using the F4-Help for the Condition Type field. The
Application field is automatically set to M.
b. On the right side, select the tax condition type using F4-Help for the Condition Type field. The Application
field is automatically set to TX.
For each condition map the correspondent one.

This step will make SAP to transfer the value form TAXBRA to MM Calculation schema.

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Displaying Tax Values in PO.

Tcode ME21N:
Tax code used is I1- In.Indust: No IPI -w/ICMS+PIS+COFINS Recoverable

For this tax code there is no IPI, but the ICMS + PIS + COFINS recoverable are flagged on into the tax code
configuration, it means that considering the regular scenario in the tab Condition we will see these taxes
displayed with value.
And in the PO printout we have those printed.

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To check the values, return to tab Invoice and hit button [Taxes]
Go down till you find the tax code conditions in TAXBRA and compare values.
Do this for each line item you have in the PO.

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Check PO form/Printout
Related Content
All settings was taken from the OSS note 1551566 provided by SAP and performed small adjustments to use
the standard functionality of PO printout.

2011 SAP AG

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Disclaimer and Liability Notice

This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not
supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.
SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document,
and anyone using these methods does so at his/her own risk.
SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or
code sample, including any liability resulting from incompatibility between the content within this document and the materials and
services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this
document.

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15

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MM: Display Tax Conditions in

Purchase Order for Brazilian

Company: CWM Consultoria em Informtica Ltda.

Created on: 3 June 2011

SAP COMMUNITY NETWORK

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