Creating CFOP Determination Rules

With Brazil Localization, transaction nature records can include default Códigos Fiscais de Operações e Prestações (CFOP) codes for intrastate, interstate, and international transactions. When you add items to a transaction, NetSuite automatically populates the CFOP code based on the selected transaction nature.

However, these default CFOP codes may not always apply to all of your transactions with a given nature. The applicable CFOP code may vary for some items, or for transactions involving a given customer, for example.

To further specify which CFOP code should apply to transactions, you can create CFOP determination rules. The rules enable you to define whether a code applies to transactions based on the customers or vendors, location, or items purchased or sold.

For example, to apply the 7.102 code to an item in a transaction with the following characteristics:

From any subsidiary in Santa Catarina, Brazil.
To a particular customer outside of Brazil.
With the Nota fiscal de exportação transaction nature, in which the default CFOP code for outgoing international transactions is set as 7.949.

You need to create a CFOP determination rule with the following criteria:

General information
- Transaction nature – Nota fiscal de exportação
- CFOP code – 7.102
Customer or vendor information
- Customer – Foreign customer
- ICMS taxpayer status – Nontaxpayer
- State of the issuer – SC
- State of the receiver – EX
Item information

Item code – 0809.10.00

With this rule, instead of setting the default CFOP code (7.949), NetSuite sets the 7.102 code in transactions involving the selected customer and item code.

With CFOP determination rules, when you add items to a transaction, the system uses the current transaction details to assign a CFOP code to each item. If you later make changes to the transaction, such as selecting a different customer or transaction nature, NetSuite doesn't update the assigned CFOP code of existing items.

Create different CFOP determination rules for your specific business needs.

To create a CFOP determination rule:

Go to Setup > Brazil Localization > CFOP Determination Rule > New.
Under General Information, do the following:
1. In the Name field, enter a name to identify the rule.
2. In the Transaction Nature field, select one or more transaction natures to which the rule applies.
3. In the CFOP Code field, select the CFOP code for which you want to define the rule.
To apply the rule to specific customers or vendors, under Customer or Vendor Information, do the following:
1. To apply the rule to transactions involving specific customers, in the Customer field, select one or more customers.
  
  If you leave this field blank, the rule can apply to any customer.
2. To apply the rule to transactions involving specific vendors, in the Vendor field, select one or more vendors.
  
  If you leave this field blank, the rule can apply to any vendor.
3. In the ICMS Taxpayer Status field, select the option that identifies their ICMS taxpayer status.
  - Taxpayers – All of the selected customers or vendors pay ICMS.
  - Non-taxpayers – None of the selected customers or vendors pay ICMS.
  - Taxpayers and non-taxpayers – Some of the selected customers or vendors pay ICMS, and some don't.
4. To apply the rule to transactions from a specific state, in the State of the Issuer field, enter the acronym of the state in which the issuer of the transaction is located.
  
  If you leave this field blank, the rule can apply to transactions from any state.
5. To apply the rule to transactions to a specific state, in the State of the Receiver field, enter the acronym of the state in which the receiver of the transaction is located.
  
  If you leave this field blank, the rule can apply to transactions to any state.
To apply the rule to specific items or classes of items, under Item Information, do the following:
1. To apply the rule to specific goods or services, in the Item field, select one or more items.
  
  If you leave this field blank, the rule can apply to any item.
2. To apply the rule to specific classes of goods or services, in the Item Code field, select one or more item codes.
  
  For example, select a Mercosur Common Nomenclature (MCN) code. If you leave this field blank, the rule can apply to any class of items.
Click Save.
(Optional) Add other criteria for applying the rule.

For more information, see Additional Criteria for CFOP Determination Rules.

To create a CFOP determination rule:

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