Last purchase price in R/3 for Brazil

Content
Last purchase price in R/3 for Brazil...............................................................1
1. Glossary...........................................................................................................1
2. Overview .........................................................................................................1
1.1.Legal Requirement...................................................................................................1
1.2.Reimbursement .......................................................................................................1
1.3.Affected Areas .........................................................................................................1
3. Customizing the Last Purchase Price..........................................................1
1.4.Activation of LPP......................................................................................................1
1.5.Setting for Tax Calculation .....................................................................................2
1.6. Conditions...............................................................................................................2
1.7. Account posting keys..............................................................................................3
1.8. Calculation Schema ...............................................................................................3
1.9. Tax codes...............................................................................................................3
1.10.Calculation of Last Purchase Price.........................................................................4

1. Glossary
Term, definition
Last Purchase Price
LPP = Last purchase Price
Reimbursement
Nota Fiscal
Stock Transfer Order

2. Overview

1.1. 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.

1.2. 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.

1.3. Affected Areas

The LPP affects material management and invoice verification.

3. Customizing the Last Purchase Price

1.4. 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.
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Figure 1. Activation of LPP

1.5. Setting for Tax Calculation

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

1.6. 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
IRD5 Reimbursment ICMS Offset non deductible
IRD6 Reimbursment SubTrip Offset non deductible

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

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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)

1.7. Account posting keys

LPP requires 4 new account posting keys IR1 thru IR4

Description
Process
IR1 Reimbursement ICMS
IR2 Reimbursement ICMS Offset
IR3 Reimbursement SubTrip
IR4 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

1.8. 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 X
810 IRD1 Reimbursement ICMS 100 IR1
820 IRD2 Reimbursement ICMS Offset 810 IR2
830 IRD3 Reimbursement SubTrip 100 IR3
840 IRD4 Reimbursement SubTrip Offset 830 IRD4
850 IRD5 Reimbursement ICMS Offset NVV 100 NVV
860 IRD6 Reimbursement SubTrip Offset NVV 100 NVV

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.

1.9. 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%.

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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%.

1.10. 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:

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

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:

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

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