Brazilian master data: the fields that drive tax and the nota fiscal

Material master · MM01

Five Brazilian fields on the material

Field	Technical name	Where in MM01	What it does
Control code	MARC-STEUC	Foreign trade: import	The NCM, the 8-digit Mercosur product code. It sets the IPI rate and many tax rules, and is printed on the nota fiscal.
Material CFOP category	MARC-INDUS	Foreign trade: import / export	Groups materials for CFOP determination when the nota fiscal is created.
Material usage	MBEW-MTUSE	Accounting	What the material is for: industrialization, resale, consumption or a fixed asset. Drives the CFOP and the tax credits.
Material origin	MBEW-MTORG	Accounting	Domestic or imported, and how much imported content. It becomes the first digit of the ICMS tax situation code (CST) and can trigger the 4% interstate rate.
Produced in-house	MBEW-OWNPR	Accounting	Made by the company or bought in. Separates CFOPs such as 5101 (own production) from 5102 (resale).

Try it

How the master data picks the CFOP

Set the conditions and see the CFOP SAP would put on the nota fiscal. The first digit tells the direction and the route; the rest tells the kind of operation.

Suppliers · BP

Supplier master record

Some supplier fields exist only for Brazil; others are generic but have a special use there. In S/4HANA they live in the business partner (transaction BP).

Field	Where in BP	Use in Brazil
Tax jurisdiction	General data · Address	Shown in the Jurisdiction code field. SAP derives it from the region and postal code you enter.
CNPJ (BR1)	General data · Identification · Tax numbers	For companies (legal entities) only.
CPF (BR2)	General data · Identification · Tax numbers	For natural persons only. Also set the natural person indicator.
State tax number (BR3)	General data · Identification · Tax numbers	The inscrição estadual (IE). If the supplier is exempt, enter the word ISENTO.
Municipal tax number (BR4)	General data · Identification · Tax numbers	The inscrição municipal (IM). If exempt, enter ISENTO.
Tax split	Supplier · control data	Posts half of the IPI as deductible input tax and adds the other half to inventory or expense. Usually set for wholesalers that don’t pay IPI.
Tax base	Supplier · control data	For carriers entitled to a reduced ICMS base on freight: value 1 applies the 80% base in invoice verification. Confirm the current rule of each state.
Payment block	Company code · payment terms	For suppliers that send boletos: block the item until the boleto arrives, so you pay its bar code.

In SAP ECC the same tax numbers sat in Tax Number 1 to 4 on the vendor’s Control screen.

Customers · BP

Customer master record

Field	Where in BP	Use in Brazil
Tax jurisdiction	General data · Address	Derived from the region and postal code; decides the destination state of each sale.
Tax numbers (BR1–BR4)	General data · Identification	CNPJ or CPF, state and municipal registrations, as for suppliers.
ICMS taxpayer	Customer · control data	Whether the customer is registered for ICMS. A non-taxpayer changes the ICMS base and can trigger DIFAL.
CFOP category	Customer · control data	Used with the material’s data to determine the CFOP on the sales order and the nota fiscal.
ICMS law · IPI law	Customer · control data	Whether the customer is exempt from ICMS and/or IPI.
SubTrib group	Customer · control data	Groups customers subject to the same ICMS tax substitution calculation.
Pay all items separately	Company code · payment transactions	Must be set: the system creates one duplicata for each open item.

Data quality

Ask the tax team to validate the NCM of every material before go-live. A wrong NCM gives a wrong IPI rate on every invoice.

New CNPJ format

Make sure upload templates and interfaces accept letters in the CNPJ. See the alphanumeric CNPJ.