Understanding Purchase Order Entry in Brazil

The Brazilian government requires companies to maintain additional purchase order information for tax audit purposes. This additional information includes:

• Transaction nature

• Tax code

• Fiscal classification

• Whether the item is subject to ICMS Substitution

• Origin of the item

• Purchase use

• Fiscal message

• If the item is imported:

  • Import Content (CI)

  • Import Content From (FCI)

  • Ex TIPI

When you enter a purchase order, you also enter information that the system uses to generate the associated nota fiscal document.

When you enter item information, the system calculates any applicable IPI, ICMS, and ICMS Substitution taxes. The Brazilian government holds both the seller and buyer responsible for the accuracy of tax calculations.