Global SAP Environments 007 MIAMI * OcT 22 -24 Rolling SAP out to Brazil: A Comprehensive Guide to SAP Solutions for Brazil Localization Jan-Klaas Heinsohn and Eduardo Borba SAP AGflOrganizational Unit: Business Place Additional organizational unit: EI w isa tegal nt th on tb (CNPY number) = Brazilian tax reporting has to be submitted per “Filial” won rosa compton at filial level EI Each location with separate address needs to be a distinct Filial: = n:1 relationship between filial and company code :m relationship between and plant What Is a Nota Fiscal? Legally required document: = As invoice (NF Fatura) without accompanying goods "= Accompanying all puble goods mevements such as deliveries (NF Remessa), retums (NF Retorno), and even stock transfers between two business places (sites with cifferent t3x 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 atthe time of printing Needs to be in Portuguese and all values in Brazilian currency Different physical layouts possible, depending on agreement with tax authorities [eg., single page, endless paper) In future: electronic nota fiscal (NF-e) via XML.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 Brazil + There are special movement types for Brazil that partly replace the standard movement types oy Nota Fiscal: Integration in SAP ERP Logistics Modules | cl $0.8ingNota Fiscal: Architecture in SAP ERP Losisticsin SAPRISNota Fiscal: Special Processes In Brazil, there are some special processes ... = Which require multiple notas fiscais (¢.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) m= Where there are special rules regarding tax posting and material valuation (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 needed = For 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) Overview of Processes with NF Integration Sarcapones cet arer= gute ne er | Pest aes tp tay insta Convon/sutings aeons: sesteueansehenebystentent Convanjaurceng rcs eeranestretenesee Src peces peas opt eee el Susertsing separa we tt nconeunesertnaas est Feary inequities etsenas sr ens rened ore spicata Nba oW pace aOverview of Processes with NF Integration Sarcapones cet arer= gute ne er | nsec pany nanan Convon/sutings aeons: sesteueansehenebystentent Convanjaurceng rcs eeranestretenesee Src peces peas opt eee Ate be pcan ce Eten ep nee gonna Susertsing separa we tt nconeunesertnaas est Feary inequities etsenas sr ens rened ore spicata Nba oW pace a > The nota fiscal sereens can be called up from the ‘standard sereens to eat nota fseal esta Integrated Tip into standard documents (customer/supplier invoices and goods- movement documents) > With transaction J1B1N yeu can ereste standalone notas fisesis,Brazilian Tax Types IPI - Federal Tax on Industrialized Products ICMS ~ State Tax on Goods Movements Substituic&o Tributéria - 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 rules = Calculation via ABAP code In addition to standard pricing procedure m Since SAP R/3 Enterprise: Tax Manager's Workplace for Brazil EyTax Configuration ™ Due to the complexity of the Brazilian tax configuration, we developed a dedicated workplace. Configuration of Tax Rates and Tax Codes Tax rates are defined in special Brazilian tables and notin tax codes The tax code only specifies which tax types are dueLegal Reporting SAP's standard Fl reporting is insufficient for Brazil: = Nota Fiscal is the relevant document, not the Fl invoice document = Goods movement data have to be reported together with taxes = Inventory has to be reported in detail = Business partners (vendors/customers) have to be reported = Special reporting for fixed assets = Special magnetic files Most importantly, legal reports are supported by the system: = Layouts generally provided based on Sao Paulo legislation = Legal changes and important new reports (e.g., Ato Cotepe) are regularly provided = However, adjustments (for different states) or additional reports, which are not provided, may need to be developed in the project 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 IPVICMS) 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 Diario, Livro Razao (Joumal, list of accounts)Financial Accounting and Costing Financial Accounting: = Specific accounts (e.g., for Brazilian taxes) = Gross revenue posting Asset Accounting: = Specific chart of depreciation = Tax incentive on investment assets (CIAP) Costing and valuation: = Trading goods need to be valuated at moving average price = For manufacturing and importation, period-based actual costing required [=> Note when you use a global template: * Possible impact on global chart of accounts, consolidation, etc. Note * Actual costing requirements covered by use of material ledgerieee or te | Accounts Receiv able: * Dats Media Exchange (OME) Formets ~ Remittance File (Arquive Remessa) = Confirmation File (Arquive Retorno) ~ Bank Statement File (Arquive Extrato) * Borders Printing (lst of payments) * Boleto Printing (payment form) Accounts Payable: = DME Formats Romittance Filo = Confirmation File Bank Statement File * Check Printing = Borderé Printing * DME for HR PaymentWorld Map for Globalization ServicesHelp Available Through Service Marketplace Want information about Brazilian country version?* Requires login credertiais to the SAP Service Marketplace Monti Your teten on investment or lal KAP istatetons Seas inten atin eee eeService Offerings Globalization Services (cont.) Request thru portal = Mailbox globalization@sap.com = SAP Unicode Workshop = SAP Unicode Training = SAP Globalization Workshop Globalization Architecture & Strategy = SAP Unicode Technical Integration Check = SAP Unicode Conversion Project Review = SAP Unicode Downtime Optimization Service http:/service.sap.com/globalization * leis Om: 2 Oj einen OIG es IB fate Ds [0 wanes to Bien Fae * Requires login credentials to the SAP Seruce Marketplace‘Country Information on SAP Service Marketplace https://websmp208.sap-ag.de/globalization8 country Versions = purpose eee nom mo ate igs Seti Pens mane Senco ea secre ange Say Soames eee a Sins eo _ Pmpose Sea \ceumy SpsemeFuneteneHow Do I Include a New Country on My Existing Installation?Before Introducing the Country Version Bra: Never start rolling out to your Brazilian subsidiary without clarifying legal requirements with your local expert (fiscal, accounting) = Helshe must be part of the project definition! Carefully evaluate necessary customizing for Brazil before deci ‘on your company template ing Customizing the Brazilian country version most likely requires support from local experts (consultants) Check SAP Note 81892 and related ones Before Introducing the Country Version Brazil ... (cont.) If your original installation started prior to SAP R/3 Release 4.08, 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 active in BrazilResources Country Page = http://service.sap.comiglobalization * ~ You are here ~+ Country Information ~ Brazil ~ Youare here + Country Information -+ Globalization Knowledge Base Country Version Documentation = http://help.sap.com ~ Country versions + Americas + Brazil Country-Specific Notes = http://service.sap.cominotes * — Components: XX-CSC-BR SAP Brazil = www.sap.com/brazil/ * Requires login credentials to the SAP Service Marketplace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 Your Turn! How to contact us: Jan-Klaas Heinsohn jan-klaas.heinsohn@sap.com Eduardo Borba e.borba@sap.comNormal Sales La XN \\ ina A, S yy Brazil Specific Order Type In order to: ‘Assign and create Nota Fiscal = Determine Tax Code for Calculation Determine CFOP/Tax Laws accorsing to special requirements (in combination with item Category)‘Two NFs needed: '= For Goods Movement with transitory tax, but ne receivables 1 Invoice for Withdrawal with definite fax postings Third-Party Selling — Venda 4 Ordem us Company is selling to customer, but goods are delivered by different vend 1 Order Type VDOR and item Stiegon TSS used to automatically create Purchase Fequistion 1 NF Fatura needs to mention that {occ will be devered by this ur tects can be cohngured \Third-Party Supply - Venda por Conta e Ordem Le Company is shipping goods in the name of another vendor: # Ship-To panty diferent rem BillTo party 1 NF Remessa to accompan jood tocustomer f= NF Fatura to invoice the vendor, nesds to reference the NFRemessa Normal Procurement‘Special Procurement: Future Delivery a Seis: Ld ‘Special Procurement: Subcontracting i, a — meonase eotecting. fabricates: 7, Basuistion 0 oa mate il bo goods,‘Subsequent Debit in Procurement laStock Transfer (Two-Step MM) i Stock Transfer with Stock Transport Order i