MM: IPI Exclusion from PIS and COFINS tax base
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You can choose to exclude the IPI from the PIS and COFINS tax base on purchasing transactions. The solution delivered by SAP allows you the following options in the context of excluding IPI from the PIS and COFINS tax base in Materials Management (MM):
- No changes.
- Exclude the IPI amount (IPI1 or IPI2).
You can customize your system and define in which purchasing 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 IPI amounts are excluded from the PIS and COFINS tax base during the price formation.
- During the calculation of PIS and COFINS, the IPI amounts are excluded from the tax base.
- The PIS and the COFINS credit will be reduced.
Enabling the exclusion
A new Exclude IPI from PIS and COFINS base (EXCLUDE_IPI_FROM_PIS_COF_BASE) method is available in the BAdI for Brazil Tax Extensions (BADI_J1B_EXTEND_TAXES). This method allows you to activate the IPI exclusion according to your legal requirements. If you activate this method, the settings in the Define Flexible PIS/COFINS Bases for FI/MM Tax Codes (CBT) (J_1BTX_FLEX_CBT) or Define Flexible PIS/COFINS Bases for FI/MM Tax Codes (Clas. Tax. Calc.) (J_1BPISCOF_CLASV) Customizing activities are not considered.
In the description of SAP Note 3301723 – IN 2.121/2022: Prerequisites Objects for Exclusion of IPI from PIS/COFINS Credit Base, you find more technical information the prerequisite objects for IPI exclusion from the PIS/COFINS credit base.
SAP Notes for this solution
To have this solution active on your system, apply the following SAP Notes:
- If you use the pricing procedure TAXBRA, implement SAP Note 3310173 – IN 2.121/2022: IPI Exclusion from PIS and COFINS Base Amount (TAXBRA)
- If you use the pricing procedure TAXBRJ, implement SAP Note 3315504 – IN 2.121/2022: IPI Exclusion from PIS and COFINS Base Amount (TAXBRJ)
- If you use the Oil & Gas solution, implement the SAP Note 3316264 – IS-OIL: IN 2.121/2022: IPI Exclusion from PIS and COFINS Base Amount
If you choose not to exclude the IPI from the PIS and COFINS tax base using the BAdI for Brazil Tax Extensions, you must reduce the product price during the purchase order in the Net Order Price (NETPR) field, regardless of the pricing procedure you use. By doing so, the total values of your nota fiscal are equivalent to the total values of the nota fiscal issued by the supplier.
The ICMS exclusion options existing in this BAdI are not affected, they work independently of the IPI options. Therefore, they should continue to be used normally, at your discretion.
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