What is NCM code in SAP FI - Financial Accounting?

SAP Term: NCM code

• Component: FI

• Component Name: Financial Accounting

• Description: A classification of goods that is issued by the Brazilian government and used to determine the IPI tax rate.

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• Key Concepts: 
  NCM code stands for National Classification of Manufactured Products and is a system used by the Brazilian government to classify goods and services. It is used in the FI Financial Accounting component of SAP to identify the type of product or service being purchased or sold. 
  
  How to use it: 
  In order to use the NCM code, you must first enter the product or service into the system. Once it is entered, you will be able to assign an NCM code to it. This code will then be used to identify the product or service when it is purchased or sold. 
  
  Tips & Tricks: 
  When entering a product or service into the system, make sure that you enter all relevant information such as the name, description, and NCM code. This will ensure that the correct NCM code is assigned and that all transactions are properly recorded. 
  
  Related Information: 
  The NCM code is part of a larger system known as the Brazilian System of Classification of Economic Activities (Sistema Brasileiro de Classificação de Atividades Econômicas - SBCAE). This system is used to classify businesses and activities in Brazil and is used in conjunction with the NCM code.