CIAP in SAP: the ICMS credit on fixed assets, from the asset to its retirement

The legal text speaks of permanent assets, not of a list of assets

Art. 20 of LC 87 secures the credit for the tax charged on inbound purchases, "including" goods meant for permanent assets, and gives no list of assets that are in or out. Two limits appear in the article itself: an exempt or non-taxed purchase gives no credit, nor do goods unrelated to the business of the establishment, and vehicles for personal transport are presumed unrelated until proven otherwise (LC 87, art. 20, caput and §§ 1 and 2).

The reversal in art. 21 and the role of SAP

The reversal in art. 21 completes the picture. An asset loses the credit if it perishes, spoils, or goes missing, or if it starts to be used for a purpose unrelated to the business (art. 21, III and IV). All of these are conditions of the right, which the client decides and documents. SAP does not answer "does this asset give credit?". It records the answer the company gave.

Asset and component: the distinction the file requires

The master data of the file separates two figures, and the difference changes how you fill it in.

The component route in practice

This shows up in companies that assemble equipment from bought parts: the credit can arise with each component or only when the asset is completed, depending on the state. The Guide has both routes, and SAP has classifications that handle them. Which route applies to the establishment is a matter of state law and a decision for the client.

Where this data comes from in SAP

The SAP documentation describes one path precisely. The report that loads CIAP records from a legacy system asks for this data (SAP Help, Creating a CIAP Record from a Legacy System):

• code and description of the asset or component, and the function of the asset;
• code of the main asset, when it is a component;
• ledger account, cost center, and useful life in months.

The EFD report uses these values to fill records 0300, 0305, 0500, and 0600 and Block G. It is the clearest map between the SAP master data and the file.

What the asset master data must have

On the asset master data side, the practical question is whether every asset that gives credit has a unique code that CIAP recognizes, an asset account that matches COD_CTA, a valid cost center, and an entry date that matches the date of the tax document. An asset with no entry date has no month for the first installment (LC 87, art. 20, § 5, I). The tax master data of the environment is covered in tax master data in SAP.

Three consequences for the project

The calculation, as the law and the file describe it

LC 87 asks, for each period, for the 1/48 factor multiplied by the ratio between taxed sales and total sales in the same period. Sales abroad count as taxed, and the law adds those of paper for books, newspapers, and periodicals (LC 87, art. 20, § 5, III).

Model C of Ajuste SINIEF 8/97 calls the ratio the crediting coefficient and requires at least four decimal places. The credit of the month is the product of three numbers: coefficient, accumulated balance, and monthly fraction (Ajuste SINIEF 8/97, clause 4).

In the file, the same calculation is in record G110 (Practical Guide, record G110):

• Field 06. Taxed sales and export sales.
• Field 07. Total sales. Field 06 cannot exceed field 07.
• Field 08. Ratio, equal to field 06 divided by field 07, with eight decimal places.
• Field 09. ICMS to claim, equal to field 05 (sum of the installments that can be claimed) multiplied by the ratio.

What the rule leaves to the state and to the client

Two points often raise doubts and have no answer in the text of the federal rule. The first: whether tax substitution operations go into the numerator and the denominator. The Guide sends the content of fields 06 and 07 to "state law", and each state's rule settles this case. The second: which sales count as "related to ICMS" for the denominator, such as shipments, transfers, and returns. The answer comes from state law and the client's policy, and it changes the result in a material way.

The role of the factor report in SAP

The SAP design does not replace this decision. The SAP documentation says the credit factor is set in the report Define Credit Factor, and that the accounting entry uses the factor calculated there (SAP Help, CIAP Record Quotas). What the report counts as a sale, and on what basis, is configuration, and it must be checked against the client's decision before the first close.

The monthly rule, in one sentence

First fraction in the month of entry, 1/48 of the credit multiplied by the coefficient, pro rata die adjustment, and cancellation of the balance at the end of the 48th month (LC 87, art. 20, § 5, I, IV and VII). The CIAP calculator in 48 installments shows the 48 installments of one asset.

What changes for the person who runs the file

Ajuste SINIEF 8/97 adds that the accumulated balance of the assets does not fall with the monthly claim: it changes only with a new purchase or with disposal, transfer, perishing, going missing, spoilage, retirement, or another movement of the asset (clause 4, § 1, I) (Ajuste SINIEF 8/97). In other words, the credit claimed in one month does not "use up" the base of the next month. The base moves only when an asset comes in or goes out.

In G125, each asset with an installment in the period states two fields (Practical Guide, record G125):

Posting and deadline for the entry

Clause 6 requires CIAP to be posted by the day after the asset enters, the exit invoice is issued, or the asset perishes, goes missing, or spoils. Entries for credit or reversal installments are made on the last day of the assessment period, with no delay of more than five days (Ajuste SINIEF 8/97). For those who close the month with an automatic routine, this rule calls for a data cut-off that includes asset movements up to the last day.

Four events end or interrupt the credit

After entry, the asset can leave the control in four ways. It can complete the claim period, be sold or transferred, perish, spoil, or go missing, or leave for another reason that state law recognizes. LC 87 covers a sale before four years: from the date of disposal, the credit for the fraction that would correspond to the rest of the four-year period is not allowed (LC 87, art. 20, § 5, V). Perishing, spoilage, and going missing lead to a reversal (art. 21, IV).

Transfer between establishments

Ajuste SINIEF 8/97 adds that states may set specific rules for posting internal transfers of assets (clause 8, II) (Ajuste SINIEF 8/97). In other words, a transfer between establishments of the same taxpayer has no uniform treatment in the federal text, and the client must read the rule of the origin state and the rule of the destination state before SAP is set up.

Partial retirement: the file rule and the SAP option

SAP accepts partial retirement of a record, for example when only some of the components go to another plant. For this, the business function "ERP, CIAP Partial Retirement" must be active and the configuration done.

SAP movements that do not pass through FI‑AA

The same documentation notes that retiring the CIAP record and retiring the asset in FI‑AA are two separate operations (SAP Help, Retire CIAP Records and SAP Help, Transfer Asset Between Plants). The asset must be retired by hand in FI‑AA, and the transfer of an asset between plants does not carry the data of the financial module.

The practical consequence is the most important one: the sale of a machine may be retired in the asset ledger while a CIAP installment keeps being claimed.

G110 is a summary, G125 is the proof

G110 says what the company will post in the ICMS assessment for the month. The Guide states that the value of field ICMS_APROP is claimed directly in the ICMS assessment record, as an assessment adjustment, unless the law requires a tax document to be issued. The same applies to the sum of other credits in field SOM_ICMS_OC (Practical Guide, record G110, fields 09 and 10). G125 shows, asset by asset, where the G110 number came from: each line is an asset with its installment for the period.

The opening balance of G110

Field SALDO_IN_ICMS of G110 deserves attention. It gathers the ICMS of assets that came in during earlier periods and already had an installment claimed, and these assets are reported in G125 with type SI, opening balance, with the start date of the period. Left out of the balance are components with type IA from earlier periods, whose credit is only claimed when the main asset is ready (Practical Guide, record G110, field 04).

The nine movement types

G125 accepts nine values in field TIPO_MOV. The SAP documentation gives the same list, in English, as the movement statuses of the record (SAP Help, CIAP Record Quotas).

Four filling rules that explain most rejections

How these records relate to the ICMS assessment, the inventory, and the rest of the file is covered in SPED Fiscal, EFD ICMS IPI in SAP, which describes how the data is created in SAP and where the file breaks.

The path in SAP

It happens more than it seems: the invoice of an asset comes in with a CFOP that does not create a CIAP record, and months later someone notices. The SAP documentation describes the fix (SAP Help, Creating a CIAP Record for an Existing Nota Fiscal):

The late installments

For records submitted late, the system also creates the installments that should have been credited in each past period, with the credit factor of each one, flags these installments as special credit, and reports them in record G126 of the file. The example from the documentation: material document posted on 12/08/2015, invoice posted on 03/09/2015 with the start of the credit period on 12/08/2015. The system creates one late installment, with reporting period September 2015, that refers to August 2015, and the normal installment for September (SAP Help, CIAP Record Quotas).

The right record in the file

G126 is the right record for this, according to the Guide: it is used to list the amounts to claim as ICMS credit on fixed assets that were not posted in earlier periods, "when the law allows" (Practical Guide, record G126). Whether state law allows it, and within what time, is the point the client must answer before using the feature. SAP offers the mechanism, and the decision to use it is not technical.

What SAP posting does for each installment

When a CIAP record is posted, the installment that receives credit is booked and the system generates a financial document with three effects (SAP Help, CIAP Record Quotas):

• reclassification between the short-term and long-term accounts;
• posting of the ICMS value according to the credit factor;
• posting of the amounts not credited to the expense account or to the original account (asset or investment).

After that, the system creates a new installment for the reporting period, to be reported in Block G. There are also installments for the retirement processes: the documentation lists operations such as regular credit, reclassification, credit reversal, keeping the credited amount, and adjustment.

Posting is done by the report Run Accounting for CIAP Records (SAP Help, Retire CIAP Records by Reversal). This matters for the close: if the report does not run before the file, the ICMS accounts on fixed assets and G110 tell different stories.

Where the asset accountant comes in

A fixed asset has three lives that do not match. The accounting life is measured by depreciation, the credit life is measured in 48 months from entry, and the physical life ends with the sale, the loss, or the scrapping. CIAP follows the second and reacts to the third.

Depreciation of the asset does not affect the installment (the law does not mention it in § 5), and the useful life field of 0305 is only for information (Practical Guide, record 0305). The reconciliation works on this mismatch, and what is not reconciled later becomes credit with no backing or a reversal that no one expected.

A support note that changed the record

An article from the SAP community, dated 24/08/2022, says that SAP note 3225801 began to allow more than one CT-e on the same CIAP record (SAP Community, CIAP in the TDF: support for multiple CT-es):

• Each freight charge becomes an installment of type F. The related documents tab shows all the CT-e and the taxes by invoice, saved in table CIAP_D_NF.
• The record gained new fields and moved to version 7.0.0. Whoever applies the note must run the migration process, without which the old records cannot be accessed.
• Note 3165820 must also be applied: it changes the supplementary tables of records G130 and G140, and whoever uses them must adjust the implementations.

Two lessons do not depend on the note. The CIAP record is a versioned object, and a support update may require a data migration before the next file. And the Block G file may depend on supplementary client tables, which also change with the notes. The article is from 2022: whether these notes are still current, and the state of each environment, are checked in the SAP support portal, with the client's access.

Before you change anything: what the environment already has

A CIAP review starts with what is active, not with what the documentation promises: which account assignment categories create a record, whether partial retirement is active, which BAdIs were implemented, how many records exist by status, and whether the posting report runs at the close. The overview of the tax layer is in SAP Tax Declaration Framework and the starting assessment is in tax diagnostic in SAP.

What LC 227 says about ICMS balances

Chapter I of Title IV of LC 227/2026 covers the ICMS credit balances that exist on 31/12/2032, recognized by the states and the Federal District (LC 227/2026, arts. 132 to 134). To be recognized, the balance must:

• be allowed by the state law in force on that date and arise from operations up to it;
• be properly assessed in the books;
• not have been offset or used;
• have been approved (art. 132, § 1).

From 01/02/2033, the balance is updated by the monthly change in the IPCA (art. 133).

The own treatment of the credit on permanent assets

• Request. Filed in the same assessment period in which use of the credit begins, for an asset with entry from 01/01/2029 (art. 134, § 1, I).
• Reply. The state or the Federal District responds within 60 days (art. 134, § 1, II). With no reply, the balance is considered approved, which does not prevent the assessment and posting of related amounts while the tax authority's right has not expired (art. 134, §§ 3 and 4).
• Information to the IBS Management Committee. The credit on permanent assets is reported apart from the others (art. 136).
• Offset against IBS. Over the remaining period under § 5 of art. 20 of LC 87. The other credits are offset in 240 monthly installments (art. 137).

And the sale of the asset in the transition period

LC 214/2025 covers, in art. 406, the sale of used machines, vehicles, and equipment acquired up to 31/12/2032, with the purchase backed by a valid tax document and more than 12 months in the seller's fixed assets. § 5 requires, for ICMS, that item V of § 5 of art. 20 of LC 87 be observed, the same rule for a sale before four years in art. 20, § 5, V (LC 214/2025, art. 406). What this means for each sale is a decision for the client with its legal team.

In CIAP, DFSpro's work has four parts, all within what the company already does in tax setup, ABAP development, and checking of ancillary obligations, alongside the project integrator.

• Review. Which categories create a record, which records exist by status, which BAdIs are active, and how the close posts the installments.
• Design of the master data and the link. Unique asset code, account, cost center, number of installments, and the link between the invoice, the record, and the asset.
• Configuration and ABAP. Setup of what the configuration can reach and development of what it cannot, such as the routine that warns when a retired asset still has a live record.
• Proof. Check of Block G against the ledger and the master data, with the six reconciliation checks, and a record of what stayed open.

DFSpro's part is the behavior of the system: design, configure, and prove. The right to credit, the classification of the asset, the coefficient rule, and the use of features such as late credit belong to the client.

DFSpro designs, configures, and proves the behavior of SAP in CIAP, alongside the integrator. What it delivers is not a legal opinion, does not say whether a specific asset gives the right to credit, and does not estimate the credit value of any company.

• The right to credit, the classification of an asset as a permanent asset, and the reading of the law of each state belong to the client and its legal team.
• The coefficient rule, the treatment of tax substitution in the calculation, the use of late credit, and the approval request in the transition are client decisions.
• Once the decision is made, DFSpro designs, configures, and proves the behavior of SAP and records the evidence.