Last purchase price in R/3 for Brazil

Content

Last purchase price in R/3 for Brazil.............................................................1

1. Glossary..............................................................................................1

2. Overview.............................................................................................12.1. Legal Requirement.........................................................................................12.2. Reimbursement..............................................................................................12.3. Affected Areas................................................................................................1

3. Customizing the Last Purchase Price......................................13.1. Activation of LPP.............................................................................................1

3.2. Setting for Tax Calculation...........................................................................2

3.3. Conditions........................................................................................................2

3.4. Account posting keys....................................................................................3

3.5. Calculation Schema.......................................................................................3

3.6. Tax codes.........................................................................................................4

3.7. Calculation of Last Purchase Price..............................................................4

1. Glossary

Term, definitionLast Purchase PriceLPP = Last purchase PriceReimbursement Nota FiscalStock Transfer Order

2. Overview

2.1. Legal Requirement

LPP is a legal requirement in Brazil for Retail companies in stock transfer order process. This price must be taken as base for tax calculation. Therefore the last price of an incoming movement must be available in the system. This could be derived from incoming transfers or invoices.

2.2. Reimbursement

Tax credit for sending plants based on average tax amounts for ICMS and SubTrib.In Retail companies it’s common to distribute 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. Later on by transferring the materials to the warehouses the sending distribution center has the authorization to credit the taxes.

2.3. Affected Areas

The LPP affects material management and invoice verification.

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3. Customizing the Last Purchase Price

3.1. Activation of LPP

The LPP is activated setting a flag on the tax condition (see the screenshot in Figure 1). The Customizing step in the IMG is: IMG Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Basic Settings Brazil Define Tax Types. In this customizing activity, the table J_1BAJ is maintained.The flag Last LPP could be for conditions ICMS, SubTrip and reimbursement when LPP should be calculated. For IPI there is no calculation for LPP.

3.2. Setting for Tax Calculation

LPP requires changes in customizing for the tax calculation. Enhancements are necessary in the following described areas.

3.3. Conditions

LPP requires 6 new conditions IRD1 thru IRD6

Condition Text

IRD1 Reimbursment ICMS

IRD2 Reimbursment ICMS Offset

IRD3 Reimbursment SubTrip

IRD4 Reimbursment SubTrip Offset

Figure 1. Activation of LPP

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IRD5 Reimbursment ICMS Offset non deductible

IRD6 Reimbursment SubTrip Offset non deductible

Each condition use the following parameters. Non listed parameters are initial.

Parameter Value Description

Access sequence MWST Tax code

Condition class D Taxes

Calculation type A Percentage

Condition category

1 Tax Jurisdiction Diction Level 1

Manual entries D Not possible to process manually

Item condition X

Delete from DB Do not delete (set for deletion)

3.4. Account posting keys

LPP requires 4 new account posting keys IR1 thru IR4

ProcessDescription

IR1 Reimbursement ICMSIR2 Reimbursement ICMS OffsetIR3 Reimbursement SubTripIR4 Reimbursement Subtrip Offset

General details for the account posting keys are set as follow

Parameter Value

Description

Tax type 1 Output tax

Non deductible

Posting indicator 2 Separate line item

Non discount relevant

3.5. Calculation Schema

The Brazilian tax calculation schema TAXBRJ is extended up from level 800 with new conditions which are used for LPP calculation and account determination.

Level

Condition

Description From

Statistic

AccKey

800 Definition LPP X810 IRD1 Reimbursement ICMS 100 IR1820 IRD2 Reimbursement ICMS Offset 810 IR2830 IRD3 Reimbursement SubTrip 100 IR3840 IRD4 Reimbursement SubTrip Offset 830 IRD4850 IRD5 Reimbursement ICMS Offset NVV 100 NVV860 IRD6 Reimbursement SubTrip Offset

NVV100 NVV

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Non listed columns of the calculation schema maintenance view remains with initial value. For conditions IRD5 and IRD6 the account posting key NVV (non deductible) is used. The calculated value for reimbursement in this case is added to the stock account of the receiving plant (valuation area) during the transfer process.As colunas não listadas da opinião da manutenção do esquema do cálculo permanecem com valor inicial. Para as condições IRD5 e IRD6 a chave NVV da afixação do cliente (não deductible) é usada. O valor calculado para o reembolso é adicionado neste caso ao cliente conservado em estoque da planta de recepção (área da avaliação) durante o processo de transferência.

3.6. Tax codes

It’s necessary to create new tax codes for LPP calculation where the conditions for LPP calculation needs to be activated depending on their needs. The rates for the activation should be 100% or –100%.É necessário criar impostos novos para o cálculo de LPP onde as condições para o cálculo de LPP precisam de ser ativadas dependendo de suas necessidades. As taxas para a ativação devem ser 100% ou - 100%.

3.7. Calculation of Last Purchase Price

The LPP is calculated in relationship to the base unit of measure.The calculation formula is different for goods receipt and invoice verification. For goods receipts posted in inventory management all needed information is available in the internal tables referring to MSEG. The quantity of the goods receipt is not yet added to the total stock LBKUM.O LPP é calculado no relacionamento à unidade de medida baixa. A fórmula do cálculo é diferente para bens dá um recibo e factura à verificação. Para bens os recibos afixaram na gerência que de inventário toda a informação necessário está disponível nas tabelas internas que referem MSEG. A quantidade do recibo dos bens não é adicionada ainda ao estoque total LBKUM.

Formula goods receipt:

Novo média = (estoque total * calcule a média de) do DB + da quantidade do imposto/(estoque total + quantidade da GR)

During invoice verification the data is different. The base unit of measure is not available only factors for conversion. The goods receipt quantity is already included in the total stock LBKUM and must be subtracted for the average calculation. Durante a verificação da factura os dados são diferentes. A unidade de medida baixa não é somente fatores disponíveis para a conversão. A quantidade do recibo dos bens já é incluída no estoque total LBKUM e deve ser subtraída para o cálculo médio.

Formula invoice verification:

Média nova = (média do DB * (estoque total * fator 2 de fator de conversão 1/conversão)) + valor do imposto)/estoque total

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New average = (average from DB * (total stock * conversion factor 1 / conversion factor 2)) + tax value) / total stock

New average = (total stock * average from DB + tax amount) / (total stock + GR quantity)