Understanding Tax Codes

You use the Tax Code Revision program (P7617B) to set up tax codes to define the taxes that apply to an item. The tax codes that you set up determine the ICMS and IPI taxes that apply to the item. When you enter a purchase or sales order for the item, the system uses the tax code from the Item Branch Regional Information - Brazil table (F76412). If the tax code does not exist in the F76412 table, the system uses the tax code from the Item Master Regional Information - Brazil table (F76411).