Set up adjustment codes for ICMS tax (Brazil)

This article describes how to set up adjustment codes for the Circulação de Mercadorias e Serviços (ICMS) tax in Brazil with Microsoft Dynamics 365 Finance.

In the Sistema Publico de Escrituração Digital (SPED) fiscal text file, record C197 includes information about any adjustments of ICMS information on fiscal documents. These adjustments can occur because of deferral, suspension, differential of tax rates, anticipation, and other situations of exception in the ICMS tax. The adjustments require an adjustment code.

Use the following procedure to set up adjustment codes. The procedure uses the BRMF demo company.

To set up adjustment codes for the ICMS tax, follow these steps.

1. In Dynamics 365 Finance, go to Fiscal books > Setup > Tax adjustment codes > ICMS, ICMS-ST, and ICMS-DIF adjustment codes.
2. Select New.
3. In the Identification field, enter a value.
4. In the Description field, enter a value.
5. In the State field, enter or select a value.
6. In the Occurrence code field, enter a value.
7. In the Valid From Date field, enter a date.
8. Expand the Payment section.
9. Expand the Posting section.
10. Select New.
11. In the list, mark the selected row.
12. In the Company accounts field, enter or select a value.
13. In the Sales tax code field, enter or select a value.
14. In the Main account field, enter a value.
15. Select Save.
16. Close the page.