localization brazil

© SAP AG 2007, 0

Rolling SAP out to Brazil: A Comprehensive Guide to SAP Solutions for Brazil Localization

Jan-Klaas Heinsohn and Eduardo BorbaSAP AG

Wrap-up

Elements of Brazilian Localization in SAP ERP FI/LO

Introducing the Brazilian Country Version

Appendix: Processes with Nota Fiscal Integration

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Processes Involving the Nota Fiscal

Nota Fiscal

Tax Calculation and Reporting

Financial Accounting


© SAP AG 2007, 4

Organizational Unit: Business Place

Additional organizational unit:Is a legal entity with own tax ID (CNPJ number)Brazilian tax reporting has to be submitted per “Filial”Nota Fiscal (NF) configuration at filial level

Each location with separate address needs to be a distinct Filial:

n:1 relationship between filial and company code1:m relationship between filial and plant

Client

Companycode

Plant Plant Plant

Filial Filial

CNPJ

Companycode

Filial

© SAP AG 2007, 5

What Is a Nota Fiscal?

Legally required document:As invoice (NF Fatura) without accompanying goodsAccompanying all public goods movements such as deliveries (NF Remessa), returns (NF Retorno), and even stock transfers between two business places (sites with different tax registration numbers)

Is the basis for Brazilian tax reporting and realized as a separate document in the system

Includes both logistics data (from delivery or goods movement) and fiscal data (from pricing/tax calculation of invoice)

Contains more detailed tax values than invoices in other countries (such as excluded base amounts, statistical taxes, etc.)

Needs to be sequentially numbered; therefore, the numbering is done at the time of printing

Needs to be in Portuguese and all values in Brazilian currency

Different physical layouts possible, depending on agreement with tax authorities (e.g., single page, endless paper)

In future: electronic nota fiscal (NF-e) via XML

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© SAP AG 2007, 6

Nota Fiscal: Integration in Logistics

The nota fiscal contains both logistics and fiscal data

This has several implications for the integration in logistics:In SD, a nota fiscal would be needed at delivery time; however, pricing and tax information is needed, which is only available at billing time– Therefore, billing must be done before the physical delivery

In MM invoice verification, the nota fiscal received from the vendor must be captured in the system for reporting purposes– Therefore, the logistics-invoice verification is enhanced with a nota fiscal

entry transaction

In MM inventory management, notas fiscais need to be generated during goods movements (e.g., in stock transfers)– Special movement types generate the necessary tax postings and creation of

notas fiscais

Note when you use a global template:There are special SD order types and item categories for BrazilThere are special movement types for Brazil that partly replace the standard movement types

Note

© SAP AG 2007, 7

Sales Order FI Accounting

Sales

NotaFiscal

SD-Billing Delivery

Purchase Order FI Accounting NotaFiscal

Invoice Verification Nota

FiscalGoods Receipt

Purchasing

FI Accounting NotaFiscal

Goods Receipt NotaFiscal

Goods Issue

Inventory Management

Nota Fiscal: Integration in SAP ERP Logistics Modules

© SAP AG 2007, 8

MM-Inventory Management

MM-Invoice Verification

SD-Billing

Nota Fiscal

Writer

Interface

MM-IV

Interface

MM-IM

Interface

SD-BI

Nota Fiscal Application Interfaces

Nota Fiscal Dialog Functions

Nota Fiscal Database Functions

Logistics in SAP R/3

Nota Fiscal

Reporting

Nota Fiscal: Architecture in SAP ERP

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Nota Fiscal




© SAP AG 2007, 10

Nota Fiscal: Special Processes

In Brazil, there are some special processes …Which require multiple notas fiscais (e.g., third-party process: one for the invoice and one to accompany the goods)Which do not exist in other countries (e.g., Future Delivery)Where in other countries no tax invoice is needed (e.g., stock transfers)Where there are special rules regarding tax posting and materialvaluation (e.g., consignment, subcontracting)

For most special processes, an automatic generation of the nota fiscal integrated in the standard logistics processes in SAP ERP is supported

However, due to many special scenarios, Brazil-specific SD order types and item categories, as well as MM movement types, are neededFor very special cases, which are not supported for automatic creation of a nota fiscal, notas fiscais can be manually created (FI and material postings need to be done manually, too)

© SAP AG 2007, 11

Overview of Processes with NF Integration

Process Description Details

Normal Sales Standard process: sales order – goods issue – invoice

Customer Returns Goods returned by customer, accompanied by nota fiscal

Future Delivery Sales After the sales order, first the invoice is issued, later the goods are sent

Customer Consignment First NF at consignment fill-up delivery, second NF at withdrawal

Third-Party Selling – Venda á Ordem Company is selling to customer, but goods are delivered by different vendor

Third-Party Supply – Venda por Conta e Ordem Company is shipping goods in the name of another vendor

Normal Procurement Standard process: purchase order – goods receipt - invoice

Special Procurement – Future Delivery After the purchase order, first the invoice has to be paid, later the goods are received

Special Procurement – Subcontracting Subcontracting components are sent to vendor who fabricates finished goods

Subsequent Debit in Procurement Referencing to original NF in a subsequent debit

Returns to Vendor Goods returned to vendor are accompanied by an NF referencing original procurement

Stock Transfer (Two-Step MM) Stock transfers between two different business places (inventory management only)

Stock Transfer with Stock Transport Order Stock transfers between two different business places (with integration in purchasing)

Standalone Nota Fiscal Direct posting of NF without reference to standard SAP ERP document

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© SAP AG 2007, 12

Nota Fiscal Screens

The nota fiscal screens can be called up from the standard screens to edit nota fiscal data integrated into standard documents (customer/supplier invoices and goods-movement documents)

With transaction J1B1Nyou can create standalone notas fiscais

Tip


Nota Fiscal




© SAP AG 2007, 14

Brazilian Tax Types

IPI – Federal Tax on Industrialized Products

ICMS – State Tax on Goods Movements

Substituição Tributária – Tax Substitution

ISS – Municipal Service Tax

PIS, COFINS, CSLL – Social Contributions

IRRF, INSS – Withholding Taxes

Brazilian taxes can depend on many parameters (material, business partner, location, special regimes) and calculation is too complex to be handled by standard FI tax calculation:

Dedicated customizing for Brazilian tax rates and rulesCalculation via ABAP code in addition to standard pricing procedureSince SAP R/3 Enterprise: Tax Manager’s Workplace for Brazil

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© SAP AG 2007, 15

Tax Configuration

Due to the complexity of the Brazilian tax configuration, we developed a dedicated workplace.

© SAP AG 2007, 16

Configuration of Tax Rates and Tax Codes

Tax rates are defined in special Brazilian tables and not in tax codes

The tax code only specifies which tax types are due

© SAP AG 2007, 17

Legal Reporting

SAP’s standard FI reporting is insufficient for Brazil:Nota Fiscal is the relevant document, not the FI invoice documentGoods movement data have to be reported together with taxesInventory has to be reported in detailBusiness partners (vendors/customers) have to be reportedSpecial reporting for fixed assetsSpecial magnetic files

Most importantly, legal reports are supported by the system:Layouts generally provided based on São Paulo legislationLegal changes and important new reports (e.g., Ato Cotepe) are regularly providedHowever, adjustments (for different states) or additional reports, which are not provided, may need to be developed in the project

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© SAP AG 2007, 18

List of Legal Reports for Brazil

Modelo 1, 2 (List of incoming and outgoing documents)

Modelo 3, 7 (Overview of production and inventory)

Modelo 8, 9 (Summary on taxes IPI/ICMS)

Modelo 51, 56 (List of service documents)

Modelo 12 (Interstate goods movements)

IN68/IN86 (Master data, document files, and tables)

SINTEGRA, IN359 (Magnetic files on inventories/movements)

DIRF (Withholding tax report)

CIAP (ICMS credit on fixed assets)

Livro Diário, Livro Razão (Journal, list of accounts)


Nota Fiscal




© SAP AG 2007, 20

Financial Accounting and Costing

Financial Accounting:Specific accounts (e.g., for Brazilian taxes)Gross revenue posting

Asset Accounting:Specific chart of depreciationTax incentive on investment in assets (CIAP)

Costing and valuation:Trading goods need to be valuated at moving average priceFor manufacturing and importation, period-based actual costing required

Note when you use a global template:Possible impact on global chart of accounts, consolidation, etc.Actual costing requirements covered by use of material ledgerNote

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© SAP AG 2007, 21

Payments: Overview

Collect Payments

Data Capture

Reconcile Payment

Make Payment

Banks

Accounts Receivable:Data Media Exchange (DME) Formats

- Remittance File (Arquivo Remessa)- Confirmation File (Arquivo Retorno)- Bank Statement File (Arquivo Extrato)

Borderô Printing (list of payments)Boleto Printing (payment form)

PurchaseOrder

Goods Receipt

Invoice Verification Payment

Require-ment

SalesOrder

Delivery Billing PaymentOffer

Accounts Payable:DME Formats

- Remittance File - Confirmation File - Bank Statement File

Check Printing Borderô PrintingDME for HR Payment

Wrap-up




Where to Get Help from SAP

What to Consider Before Introducing Country Version Brazil


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© SAP AG 2007, 24

World Map for Globalization Services

Brazil (São Leopoldo)

Ireland (Galway)

China (Shanghai)

Germany (St. Leon-Rot)

Russia (Moscow)

Hungary (Budapest)

Czech Republic (Brno)

India (Bangalore)

Japan (Tokyo)

© SAP AG 2007, 25

Help Available Through Service Marketplace

© SAP AG 2007, 26

What Is Available Through Service Marketplace?

Whereto

FIND it

Want information about Brazilian country version?

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© SAP AG 2007, 27

http://service.sap.com/globalization *

* Requires login credentials to the SAP Service Marketplace

© SAP AG 2007, 28

Service Offerings Globalization Services

© SAP AG 2007, 29

Service Offerings Globalization Services (cont.)

Request thru portalMailbox [email protected] Unicode WorkshopSAP Unicode TrainingSAP Globalization WorkshopGlobalization Architecture & StrategySAP Unicode Technical Integration CheckSAP Unicode Conversion Project ReviewSAP Unicode Downtime Optimization Service

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© SAP AG 2007, 30

http://service.sap.com/globalization *


© SAP AG 2007, 31

Country Information on SAP Service Marketplace

https://websmp208.sap-ag.de/globalization

© SAP AG 2007, 32

Country Information on SAP Service Marketplace (cont.)

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© SAP AG 2007, 33

Country Versions

© SAP AG 2007, 34

Brazilian Country Version Documentation

© SAP AG 2007, 35

How Do I Include a New Country on My Existing Installation?

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Where to Get Help from SAP

What to Consider Before Introducing Country Version Brazil


© SAP AG 2007, 37

Before Introducing the Country Version Brazil …

Never start rolling out to your Brazilian subsidiary without clarifying legal requirements with your local expert (fiscal, accounting)

He/she must be part of the project definition!

Carefully evaluate necessary customizing for Brazil before deciding on your company template

Customizing the Brazilian country version most likely requires support from local experts (consultants)

Check SAP Note 81892 and related ones

© SAP AG 2007, 38

Before Introducing the Country Version Brazil … (cont.)

If your original installation started prior to SAP R/3 Release 4.0B, then you will need extra attention to start the Brazilian version (one should never try that alone …)

You should have a maintenance team in charge of your Brazilian installation

Legal changes happen quite often and are never easy

Keep in contact with the user group (ASUG), which is very activein Brazil

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Wrap-up




© SAP AG 2007, 40

Resources

Country Pagehttp://service.sap.com/globalization *– You are here Country Information Brazil– You are here Country Information Globalization Knowledge Base

Country Version Documentationhttp://help.sap.com– Country versions Americas Brazil

Country-Specific Noteshttp://service.sap.com/notes *– Components: XX-CSC-BR

SAP Brazilwww.sap.com/brazil/


© SAP AG 2007, 41

7 Key Points to Take Home

SAP ERP contains the country version Brazil as a standard solution

Brazil has a special legal document: the Nota Fiscal

Taxes in Brazil are more complicated than in other countries

In Brazil, there are taxes on goods movements

Global templates generally cannot be used for SAP ERP Brazil

Brazil has separate legal reports that differ from standard SAP ERP

To help you successfully introduce SAP ERP Brazil, you should work with a local expert in your project team

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© SAP AG 2007, 42

Your Turn!

How to contact us:Jan-Klaas Heinsohn

[email protected] Borba

[email protected]

© SAP AG 2007, 43

Wrap-up




© SAP AG 2007, 44

Normal Sales

SalesOrder

Delivery Billing PaymentOffer

NotaFiscal

Outgoing

Brazil Specific Order Type in order to:Assign and create Nota FiscalDetermine Tax Code for CalculationDetermine CFOP/Tax Laws according to special requirements (in combination with Item Category)

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© SAP AG 2007, 45

Customer Returns

SalesOrder Delivery Billing

NFRemessa

Returns Delivery Billing

NFRetorno

Reference

Createwith

Reference

Two scenarios:ROB: return with original NF (goods were not delivered)REB: return with NF issued by customer

© SAP AG 2007, 46

Future Delivery Sales

SalesOrder

Billing Payment

NFFatura

SalesOrder

Delivery Billing

NFRemessa

Reference

Createwith

Reference

Two NFs needed:Invoice, however tax on goods movements only statisticalDelivery with reference to Invoice and definite tax postings

© SAP AG 2007, 47

Customer Consignment

ConsignmentFill-up Delivery Billing

NFRemessa

ConsignmentWithdrawal Delivery Billing

NFFatura

Reference

Createwith

ReferencePayment

Two NFs needed:For Goods Movement with transitory tax, but no receivablesInvoice for Withdrawal with definite tax postings

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© SAP AG 2007, 48

Third-Party Selling – Venda à Ordem

SalesOrder Billing

NFFatura

Createdautomatically

Payment

PurchaseRequisition

Company is selling to customer, but goods are delivered by different vendor:

Order Type VDOR and Item Category TBS used to automatically create Purchase RequisitionNF Fatura needs to mention that goods will be delivered by third party. NF texts can be configured for this.

© SAP AG 2007, 49

Third-Party Supply – Venda por Conta e Ordem

SalesOrder Delivery Billing

NFRemessa

SalesOrder Billing

NFFatura

Reference

Createwith

ReferencePayment

Company is shipping goods in the name of another vendor:

Ship-To party different from Bill-To partyNF Remessa to accompany goods to customerNF Fatura to invoice the vendor, needs to reference the NF Remessa

© SAP AG 2007, 50

Normal Procurement

PurchaseOrder

GoodsReceipt

InvoiceVerification PaymentPurchase

Requisition

NotaFiscal

Incoming

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© SAP AG 2007, 51

PurchaseOrder

InvoiceVerification

GoodsReceiptPaymentPurchase

Requisition

NFRemessaIncoming

NFFatura

Incoming

Reference

Special Procurement: Future Delivery

© SAP AG 2007, 52

PurchaseOrder

PurchaseRequisition

NotaFiscal

Outgoing

Goods IssueSubcontracting

Components(Stock Transfer)

Vendor fabricates finished goods

GoodsReceipt

Finished Goods

InvoiceVerification

SubcontractingSubsequent Adjustment

(Stock Transfer)

Payment

NotaFiscal

Incoming

NotaFiscal

Incoming

Special Procurement: Subcontracting

© SAP AG 2007, 53

InvoiceVerification:SubsequentDebit

PaymentOriginalPurchase

Order

NotaFiscal

Incoming

NotaFiscal

Incoming

Reference

OriginalGoodsReceipt

OriginalInvoice

Subsequent Debit in Procurement

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© SAP AG 2007, 54

InvoiceVerification:

Credit Memo

GoodsIssue

of Return

Original Purchase

Order

NotaFiscal

Outgoing

NotaFiscal

Incoming

Reference

Original Goods Receipt

Original Invoice

Returns to Vendor

© SAP AG 2007, 55

Stock Transfer (Two-Step MM)

GoodsIssue

in Plant 1

GoodsReceipt

in Plant 2

NotaFiscal

Outgoing

NotaFiscal

Incoming

© SAP AG 2007, 56

Stock Transfer with Stock Transport Order

StockTransportOrder

DeliveryGoodsIssue

in Plant 1

GoodsReceipt

in Plant 2

NotaFiscal

Outgoing

NotaFiscal

Incoming

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localization brazil

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