Brazil Localization Workshop

Knowledge Sharing Workshop

1

<Topic>

August, 2005August, 2005

Introduction

Procwork

Introducing PW teamPP Consultant : Leonardo Abreu

2

PP Consultant : Leonardo AbreuMM Purchasing Consultant : Marcelo Stieger & Rafael CostaIM/WM Consultant : Reanato PennaFI / CO Consultant : Alexandre MatosoSD Consultant : Marcelo Stieger & Marcell MascarenhasPM : Marcelo Stieger

Output & Deliverables

• Understanding– Impacts of Brazil local legal requirements on Global Solution

• RiskConsultant

Brazil

3

• Risk– Complexity and effort to meet the Brazilian local legal requirements

PW

Brazil

Localization Principles

Where do all these requirements come from?

• Culture of bureaucracy– reality since very early in Brazil’s history– continued regardless of many attempts to modernize

• Long period of high inflation– during the last decade

5

– during the last decade– required complex calculation rules

• High historic level of tax evasion– creation a very complex set of rules and regulations

.. Mainly the requirements are concentrated on tax calculation and reporting, new document flow (“nota fiscal”) and specific accounting rules (p.e., product costing)

Legal and Tax Requirements for Brazil

What are their impacts on a SAP R/3 implementation ?

6

.. There are specific SAP hierarchy elements and some additional customizing required for Brazil in a R/3 implementation

Brazil LocalizationBenchmark data based on Procwork Roll Out Experiences

Based on several SAP R/3 roll out projects in Brazil, Procwork have learned the following * :

• Over 300 process variants can be impacted by localization requirements

• Average level of adherence of “international templates” (developed without Brazilian requirements) for implementation in Brazil

SAP Module Adherence*

7

SD 40%MM 50%CO 60%FI 60%PP 90%

Average 60%

• Some processes not fully supported by standard SAP R/3- Foreign trade document flow & documentation- Tax reports for different regions and/or for specific requirements of the business- some aspects of Payroll, External Warehouse, Bank EDI, etc ...

* impact varies significantly considering client specific business’ requirements, therefore, data should be used as a benchmark reference only

Hierarchy

“Filial”

Company

Hierarchy - Branch

• The “Filial” (branch)– tax reporting– Nota Fiscal reporting

• Legally represents each physical address of the company in which there will take place any tax related

9

Plant

StorageLocation

Plant

there will take place any tax related operations

• Important data is maintained at this level

• Nota Fiscal and Legal books are issued at this level

JABIL Circuit Brasil

Hierarchy – Company Code

Company Code

10

Banch 1 Branch 2

• Jabil Circuit could be structured as only one Company Code.

• Reports could be taken at Company Code level, for Legal and Business requirements.

Branches

Brazilian Localization


• Most important fiscal/tax document for– Invoicing– Accounting– Goods movement

• Contains taxes and business requirements

Nota Fiscal

12


• Pre-printed form

• Sequenced numbers by physical site (branch)

• Audited by local Fiscal Authorities

• Source of key integration data– Accounting information– Tax information


• Nota Fiscal Types– Nota Fiscal Fatura (invoice)– Nota Fiscal Complementar (complement)– Nota Fiscal de Correção (correction)– Nota Fiscal de Devolução (returns)– Nota Fiscal de Transferência (transfers)

Nota Fiscal

13

– Nota Fiscal de Transferência (transfers)– Nota Fiscal de Simples Remessa (issue goods without billing)– Nota Fiscal de Entrada (incoming - e.g. Importation)– Nota Fiscal de Conhecimento de Transporte (freights)– Nota Fiscal de Energia Elétrica (energy)– Nota Fiscal de Telefonia (telecomunications)

• SAP Configuration– Nota fiscal has internal and external number ranges– Depends on Sales document type– Depends on Movement type


• There are many taxes in Brazil

• Main ones affecting almost all goods movements:

– ICMS - Material Circulation tax – IPI - Manufacturing tax

Taxes

14

– IPI - Manufacturing tax – PIS - Social Integration– COFINS - Contribution for social funds

– ISS - Services tax– IRRF - Withholding tax – INSS - Withholding tax social purpose


• IPI is a federal tax and depends on: – Control code (in Brazil is used as NCM code)– Material exception

• ICMS is a state tax and depends on:– Goods movement

Taxes

15

– Goods movement– State from (plant) / State to (ship-to) for outgoing– State from (vendor) / State to (plant) for incoming– Material exception

• PIS and COFINS:– Could be customized using sales organization and country


• IRRF is a tax related to natural person (IRPF) and legal entities (IRPJ) and depends on:

– Vendor for incoming

• INSS is a tax related to natural person and depends on:

Taxes

16

– Vendor for incoming

• ISS is a city tax and depends on:– Material number for outgoing– Vendor for incoming


• Tax related transactions should be stored in Fiscal Books (“livros fiscais”)

• There are rules on how to register them

Tax Reports

17

• Requirements for printing and archiving are needed

• Different sorts of industry (or even company) operations require reports adaptation


• Real Cost Method is mandatory

• Requires a significant amount of configuration and testing (Material Ledger)

Product Costing

18

• SAP have developed specific programs to be executed every time a period is closed

• “Localization Brazil” now is part of SAP standard.

Master Data

Master Data Records – Material

• NCM Code – Brazilian naming of goods

• CFOP Category – the type of operation

• Material Destination – Resale, Consumption & Asset

• Material Origin– Domestic

20

– Domestic– Imported

• Produced in-house or not

• Taxes Classification– ICMS / IPI– ISS

Material Master Screen

21

Material Master Screen

22

Master Data Records – Vendor

• Natural person or Legal entity indicator

• Legal Information– CNPJ number (identification for legal entity) or– CPF number (identification for natural person)– Natural person (must be set when CPF number is informed)– “Inscrição Estadual” (regional tax code – ‘state inscription’)

23

– “Inscrição Municipal” (city tax code – ‘municipal inscription’)– “Domicílio Fiscal” (jurisdiction code, ex. SP – São Paulo

• Situação Tributária IPI and ICMS

• Withholding category indicator– indicates that a tax will be withheld for payment. ex. IRRF Income tax held at the origin

Vendor Master Screen

CNPJ

Insc.Estadual

CPF

24

Insc.Municipal

Master Data Records - Customer

• Natural person or Legal entity indicator

• Legal Information– CNPJ number (identification for legal entity) or– CPF number (identification for natural person) – “Inscrição Estadual” (regional tax code – ‘state inscription’)– “Inscrição Municipal” (city tax code – ‘municipal inscription’)– “Domicílio Fiscal” (jurisdiction code, ex. SP – São Paulo

25

– “Domicílio Fiscal” (jurisdiction code, ex. SP – São Paulo

• Text code– texts are printed in the Nota Fiscal

• Tax Classification– 0 : Not Taxable– 1: Taxable– 2: Zona Franca

• CFOP Category

Customer Master Screen

CNPJ

26

Insc.Estadual

Nota Fiscal - Sales

Operation Description

CFOPCode

Outgoing or Incoming Nota Fiscal

CNPJ

Inscrição Estadual

Nota Fiscal Number

ICMS item rates

27

Nota Fiscal

Observations

Tax related part of the Nota Fiscal

Nota Fiscal - Symbolic Return

Operation Description

CFOPCode

Outgoing or Incoming Nota Fiscal

CNPJ

Inscrição Estadual

Nota Fiscal Number

ICMS and IPI item rates and

NCM Code

28

IPI amounts

ICMS and IPI Texts and

observations

Tax related part of the Nota Fiscal

Code

Observation and Special Rule description

Bolt-ons

Indicative Map of Interfaces (Bolt-ons)

Payroll

DWWDBanks(EDI)

Global

30

Export

Legal Books

WebShopping

SAP R/3WinChem

Import

GlobalMarketing

Bolt-ons

• Legal Books

• Export/ Import

31

Bolt-ons

• Objectives : 1. Generate the Legal Books according to the Federal, State and City laws2. Calculate the amounts to be paid, issue the legal documents (“gias”) and

generate electronic files, when applied

Legal Books

32

• Notes :– SAP provides some of the Legal Books – based on São Paulo state only– It is necessary to issue the other books / same books for other states– Most clients decide to use specialized bolt-on systems to support these legal

requirements– Even with these bolt-on systems it’s absolutely necessary to do all the

configurations in the SAP side– Bolt-ons just get the information from SAP and put it into the specific lay-outs,

according to the legislation

Bolt-ons

• Effort : – Dependant on the fiscal requirements of the company– Should start at the Realization phase

• Resources :– Business input – tax resources

Legal Books

33

– Business input – tax resources– Designers – tax resources– Specialists – bolt-on specialists

• Options :– Mastersaf – Aspen-Sati– Syncro– . . .

Bolt-ons

• Objectives : 1. Export Data Bases 2. Control Export Orders and Shipments 3. Processes Follow-Up 4. Issue Documents

Export

34

5. Export Exchange Control6. Issue Reports7. Generate daily and monthly accounting postings

Bolt-ons

• Objectives : 1. Import documentation – from the Import Order to the issue of the Receipt

Fiscal Invoice2. Import Data Bases3. Issue Documents

Import

35

4. Follow-up reports5. Import exchange control6. Generate daily and monthly accounting postings

• Note : – The physical receipt, as well as the fiscal and accounting receipt are not

included in the scope but may be executed in SAP

Bolt-ons

• Effort : – High– Should start at the Realization phase

• Resources :– Business input – import/export resources

Export / Import

36

– Business input – import/export resources– Designers – import/export resources– Specialists – bolt-on specialists

• Options :– Bergen– Aspen – CE (Procwork)– Bysoft– Average– . . .

The Scenarios & Presentation Approach

Customer to Cash Scenarios

• For discussion SD:– Standard Sales– Export Orders– 3rd Party Sales– Consignment– Samples and Free of Charge (FOC)

38

– Samples and Free of Charge (FOC)– Customer Returns with customer Nota Fiscal– Customer Returns with Company’s own Nota Fiscal– Correction of prices or quantity

• Other Local Legal Scenarios

Purchase to Pay Scenarios

• For discussion in MM :– Standard Purchasing– Stock Transfers– Import– Subcontracting– Consignment

39

– Consignment– Vendor Returns


Finance Integration Scenarios

• For discussion in FI / CO :– Product Costing– Legal Books & Files

40

Finance Specific Scenarios

• For discussion FI :– Accounts Payable and Payments– Accounts Receivable Collections– Legal Books and Files Preparation

41


Presentation Approach

A Generic Business Process Model

Define &MaintainData

ForecastOrder

HandlingPurchasingPurchasingPlanning Production

Shipping &Shipping &Logistics

Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

Finance

43

Agenda – <Scenario>

Overview

Ø Description of Scenario

ØOverview Business Process Flow

Main Localization Requirements

Ø Solutions

Ø SAP configuration

44

Ø Special Development

Ø Bolt – Ons

Ø Manual workaround

Summary

Ø Reminder of Key Points

<Scenario Description>

Scenario : <Scenario Name>

This scenario describes …


ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

45

This scenario describes …

Customer

<Overview Business Process Flow>

Requestfor

quotation

QuotationApproved,PurchaseOrder

Nota Fiscal for

DomesticSales

;Local Legalisation Impact

;Description of Impact etc. Print

ShippingDoc.

documents

Receives Goods &documents

Plan Shipments & BookTransport

LoadTruck

46

Suppliers

Sales order Create

Sales order ref. quot.

Quotation(optional)

CreateDelivery

ConfirmPurchase order

To Production & Purchasing

Confirmqty

Sales order

Transfer Goods from productionto Warehouse

Create/ConfirmTransferOrder

PostGoodsIssue

CreateBillingDoc.

ReceivableAccountReceivable

FiscalBooks

PostingG/L

Bolt-on

The purpose of this level is to give a short overview of what the Scenario contains. It does not need to link directly to the detailed swimlane - it is more informal and flexible. It should be based around the business process (largely R3 system independent) as they do it generically and is open to modification to best suit your presentation needs. The level of detail should be selected using judgement as to what is appropriate to give a clear view of what is going on with the scenario - where it starts in practical terms. Where it ends in practical terms (or hands off to other scenarios) and what it contains. The second purpose is a backdrop to talk about the variations to the scenario that are possible, the benefits specific to the scenario, and the impact of the scenario on the organisation. To present this you would go through it four times. First explaining the Scenario and what it contains Then showing the Variations Then showing the Benefits Finally showing the Organisational impacts. The last three are done by successive builds of the symbols and the captions explaining them. Although here they are all shown here on one slide, they would be each on a separate copy of the slide in the final presentation - A Variant slide, a benefit slide, and and impacts slide.

<The Scenario Solution>

The Solution– What is the solution?

• SAP configuration• special development• bolt-on• manual workaround• Is it a mixture of these?

47

• Is it a mixture of these? – What does the solution do?

Implementation– How COMPLEX is this to do?– How much EFFORT is required, type of resources, duration, etc.

C E

Brazilian Localization Review



Nota Fiscal

48








• Main ones affecting almost all goods movements are:


Taxes

49

– IPI - Manufacturing tax – ISS - Services tax– PIS - Social Integration– COFINS - Contribution for social funds

– IRRF - Withholding tax – INSS - Withholding tax social purpose

Master Data Records

Material• NCM Code – Brazilian naming of goods• CFOP Category – the type of operation• Material Destination – Resale, Consumption & Asset• Material Origin (domestic / imported)• Produced in-house or not• Taxes Classification (ICMS, IPI/ISS)

50

Vendor• Legal Information (tax code i.e. CNPJ)• Situação Tributária IPI and ICMS• Withholding category indicator

Customer• Legal Information (tax code ie. CNPJ, Insc.Estadual)• Text code (texts are printed in the Nota Fiscal)• Tax Classification (Taxable, Zona Franca)• CFOP Category



• For discussion now:– Standard Sales– Export Orders– 3rd Party Sales– Consignment– Samples and Free of Charge

52

– Samples and Free of Charge– Customer Returns with customer Nota Fiscal– Customer Returns with Company’s own Nota Fiscal– Correction of prices or quantity


Agenda – Standard Sales

Overview




Ø Solutions


53


Ø Bolt – Ons


Summary


Standard Sales

Scenario : Standard Sales

This scenario describes the main flow of activities to be performed in Brazil from


ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

54

This scenario describes the main flow of activities to be performed in Brazil from the creation of a sales quotation (optional) and convert it to a sales order until the delivery the goods to the customer, the billing and the Sales Nota Fiscal generation.

Customer

Standard Sales

Requestfor

quotation


Nota Fiscal for

DomesticSales

;Customer Region (state)

;Tax Code for Brazil

;Pricing Procedure for BR Domestic Sales

; Taxes calculation (ICMS, IPI, PIS,COFINS)

;Fiscal Texts for ICMS & IPIPrint

ShippingDoc.

documents


Plan Shipments & Book

Transport

55

Suppliers

Quotation(optional)

CreateDelivery



Confirmqty

Sales order


PostGoodsIssue

CreateBillingDoc.(F2B)

t

;Pricing Procedure for BR Domestic Sales


;Account Keys for BR Dom. Sales

;Fiscal Texts for ICMS & IPI

Bolt-on

Sales order Create

Sales order ref. quot.(ORB)

GenerateNota Fiscal (N1)

FiscalBooksReceivable

AccountReceivable

PostingG/L

PostingG/L


Standard Sales

The Solution– SAP configuration

• Configuration specific for Brazil;• New Sales order type and item category;• New Billing document;• New Incompletion proc.for Brazilian mandatory fields; • New Pricing procedure and Account keys assigned to the new condition types; • Legal Text for ICMS and IPI;

– Special development• SAP Script development for Nota Fiscal

56

• SAP Script development for Nota Fiscal

– Bolt-on• MASTERSAF, Aspen-Sati, SYNCRO [Fiscal Books]

Implementation– A standard sales order process is not difficult to be implemented. There are some points of attention to consider:• Standard pricing procedure for Brazil must be adjusted;• Complex SAP Script development for NF;• All business variants relevant to Brazilian operations must be tested;• Knowledge of the BBRAUN fiscal area to handle correctly the Brazilian requirements in SAP

C E

-Automatic condition calculated by a formula

Pricing Procedure

Initial Price (PR00)-/+ Discount/Surcharge *

(without taxes)______________________________+ Price with ICMS (ICMI)-/+ Discount/Surcharge *

* Sales Pricing Procedure for Brazil (Std.: RVXBRA)

*Optional conditions for pricing

57

by a formula-/+ Discount/Surcharge *(including taxes)

______________________________Tax Base

+ IPI+ ICMS+ ISS

_ _Final Sales Price (NF)

_______________________________Base of PIS/COFINSPIS (statistic)COFINS (statistic)

- PIS and COFINS calculation:Condition records

- IPI calculation:NCM code / material

-ICMS Region-from/ Region-to

-ISSTax for services

Agenda – Export Orders

Overview




Ø Solutions


58


Ø Bolt – Ons


Summary


Export Orders

Scenario : Export Orders



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

59

This scenario describes the main flow of activities to be performed in Brazil from the creation of a export quotation (optional) and convert it to a sales order until the export documentation preparation, the delivery to the external agent, the billing and the Export Nota Fiscal generation.

Customer

Export Orders

Requestfor

quotation


To ConfirmTransfer Goods Post Create


Create PackingList

Create CommercialInvoice

Create Generate

documents


;Customer Country

;Tax Code for Brazil (I0,C0)

;Pricing Procedure for BR Export Sales

; NO Taxes calculation


60

Quotation(optional)

CreateDelivery



Confirmqty

Sales order


PostGoodsIssue

CreateBillingDoc.

Nota Fiscal/ Invoicefor Export

Suppliers

Requestforexportdocum.

AgentConfirmexportDoc.

Add ExportDoc. –Deliver to customer

Sales order Create

Sales order ref. quot.

GenerateNota Fiscal

Bolt-onBolt-onBolt-on

Bolt-on


FiscalBooks

PostingG/L

PostingG/L

;Pricing Procedure for BR Export Sales

; NO Taxes calculation

;Account Keys for BR Export



Export Orders


• Specifics for Brazil;• Sales order type, item category and billing document; • New incompletion proc.for Brazilian mandatory fields; • New Pricing procedure specific for BR Export and Account keys assigned to new condition types;• Legal Text for Export;


– Bolt-on

61

– Bolt-on• Bergen, Aspen – CE [Export and documentation Control];• MASTERSAF, Aspen-Sati, SYNCRO [Legal Books]

– Manual workaround• Extra export documentation, communication with SISCOMEX

Implementation– It’s a complex solution because requires or a large manual documentation for export process or an new integration with the bolt-on system to solve this. Besides, new SD documents, pricing procedure and accounting assignment must be created.

C E

Agenda – 3rd Party Sales

Overview




Ø Solutions


62


Ø Bolt – Ons


Summary


3rd Party Sales

Scenario : 3rd. Party Sales

This scenario describes the main flow of activities to be performed in Brazil


ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

63

This scenario describes the main flow of activities to be performed in Brazil when for the same customer, you have a payer different from ship-to address. Locally this process is called “Venda por conta e ordem”. In this case, to support the Brazilian legal requirements, SAP system must provide 2 different types of “Notas Fiscais”. The first one must to be issued to the payer (just to bill the customer) and another one must to be issued and sent to the ship-to address (just to follow the goods to the customer plant).

3rd Party Sales

Requestfor

quotation


Nota Fiscal W/ ref.toPayer

(send by mail)

; New Sales order type (1)

;Use Customer-Payer (address)

;Pricing Procedure for BR 3 rd. Party Sales


;Fiscal Texts for ICMS & IPIPlan

Shipments & BookTransport

LoadTruck



;Account Keys for BR 3rd. Party

;Fiscal Texts for ICMS & IPI and manual fiscal text

Customer(payer)

Create Nota

Fiscal (N1); No Accountings

Manual texts for NF (if necessary)

; New Sales order type (2)

;Use Customer-Send to (address)


64

Suppliers

Sales order Create

Sales order ref. quot.(RCS)

QuotationCreateDelivery (1)


Confirmqty

Sales order


Create/ConfirmTransferOrder

PostGoodsIssue

CreateBillingDoc. (F2B)

Bolt-on

Step 1Payer

Ship-to

Customer(send-to) documents



Step 2

Reference:Billing doc.Step 1 Doc. (FST)

CreateBilling

Doc. (FST)

Ref. First NF

Nota FiscalW/ ref.Send-to

Bolt-on

Fiscal (N1)

CreateNota

Fiscal (N1)

CreateSales order ref. Bill.doc.(RCM)


FiscalBooks

PostingG/L

;Manual texts for NF (if necessary)

;Reference w/ the first NF issued

Party Sales




3rd Party Sales


• Specifics for Brazil;• Sales order type, item category and billing document (one for each step of the process);• New incompletion proc.for Brazilian mandatory fields; • New Pricing procedure specific for BR 3rd.party and Account keys assigned to new condition types;• Legal Text for ICMS and IPI;


65


Implementation– This scenario has a medium effort to be implemented. There are some points of attention to consider:• Distinct configurations to support the first and second “Nota Fiscal”, it’s take more time to prototype and test;

• The scripts are important to drive the user in order to choose the correct documents in the right sequence;

• Knowledge of the BBRAUN fiscal area

C E

Agenda – Consignment Sales

Overview




Ø Solutions


66


Ø Bolt – Ons


Summary


Consignment Sales

Scenario : Consignment Sales



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

67

This scenario describes the main flow of activities to be performed in Brazil when you need to send products in consignment to the customer without bill him, but to support the Brazilian legal requirements, you need to send a “Nota Fiscal” to follow goods. When customer consumes your products, you have to invoice him, sending another “Nota Fiscal”.In the first Nota Fiscal, we have to bring the taxes but we will not charge the customer, and then in the second Nota Fiscal, it will have the same taxes

Consignment Sales

Customerrequest

Nota Fiscal just to followgoods

Customer(payer) Receives

goods

CreateSales order(KBB)

CreateDelivery (LFB)


Confirmqty

Sales order


PostGoodsIssue


GenerateNotaFiscal

CreateBillingDoc.(FCR)

Customerinformsconsumed quantity

Nota Fiscalwith ref.Step 1

; New Sales order type (KBB)

;Use Customer Region

;Pricing Procedure for BR Consignment Fill-up

; Taxes calculation (ICMS, IPI statistic)


; Accountings only for ICMS

;No account receivable

;Taxes calculation (ICMS, IPI statistic)

;Fiscal texts for ICMS, IPI

;Pricing procedure for BR Consignment Issue

Account receivable and IPI

; New Sales order type (KEB)

;Use Customer Region

;Pricing Procedure for BR Consignment Issue

68

Suppliers

Step 1: Fill-up


(KBB)

Bolt-on(FCR)

AccountReceivable

FiscalBooks

PostingG/L

PostingG/LStep 2: Issue

CreateSales order ref. Bill.doc.(KEB)

Create”Symbolic”Delivery

CreateBillingDoc. (FC)

Post GoodsIssue fromconsig. stock

CreateNotaFiscal

Bolt-on

;Account receivable and IPI

; Taxes calculation (ICMS statistic, IPI, PIS,COFINS)


; Taxes calculation (ICMS statistic, IPI, PIS,COFINS)


Consign.Special Stock

FiscalBooks

PostingG/L


Consignment Sales

Customerrequest

Nota Fiscal just to followgoods

Customer(payer) Receives

goods

CreateSales order(KBB)

CreateDelivery (LFB)


Confirmqty

Sales order

PostGoodsIssue


GenerateNotaFiscal(N1)

CreateBillingDoc.(FCR)

ReturncustomerNota Fiscal & goods


;Specific Sales Order type (KAB) and item category for Brazil

;Use same Pricing Procedure for BR Consignment Fill-up

; Inform Customer NF number (Legal It’s not necessary It’s not necessary to issue another NF

69Suppliers

Step 1: Fill-up


(KBB) (N1) Bolt-on

(FCR)

Step 3: Pick-up

CreateSales order ref. Bill.doc.(KAB)

CreateDelivery(LRB)

CreateBillingDoc.

(REB+N4)

Post GoodsReceipt fromconsig. stock


FiscalBooks

PostingG/L


Bolt-on

RegisterReason

RegistercustomerNota Fiscalref: bill.doc.

;Specific Billing document (REB)

;Use same Pricing Procedure for BR Consignment Fill-up

; Inform Customer NF number (Legal Books) w/o reference in SAP

;Usually created with reference to a billing

FiscalBooks

PostingG/L

to issue another NF to receive goods. The customer NF will support the process


Consignment Sales


• Specifics for Brazil;• Sales order type, item category and billing document (one for each step of the process);• New incompletion proc.for Brazilian mandatory fields; • New Pricing procedure specific for BR 3rd.party and Account keys assigned to new condition types;• Legal Text for ICMS and IPI;


70

– Bolt-on• MASTERSAF, ASPEN-SATI , SYNCRO [Fiscal Books]

Implementation– This scenario has a medium effort to be implemented. There are some points of attention to consider:• Distinct configurations to support the first and second “Nota Fiscal”, it’s take more time to prototype and test;

• The scripts are important to drive the user in order to choose the correct documents in the right sequence;

• Knowledge of the Jabil fiscal area

C E

Agenda – Samples and FOC

Overview




Ø Solutions


71


Ø Bolt – Ons


Summary


Samples and Free of Charge

Scenario : Samples and Free of Charge

This scenario describes the main flow of activities to be performed in Brazil to


ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

72

This scenario describes the main flow of activities to be performed in Brazil to send some samples or free of charge products to a customer. Every product must be followed by a Nota Fiscal, even if it is free of charge. Samples with less than 5 kg are tax exempt, otherwise they will have ICMS and/or IPI.In cases we have taxes, we need to account them and register in Legal Books.

Customer


;Customer Region (state)


;Pricing Procedure for BR Samples

;Taxes calculation (ICMS, IPI)

;Fiscal Texts for ICMS, IPI

Requestfor

Samples

Nota Fiscal for

Samples


73

Suppliers


;Pricing Procedure for BR Samples

;Taxes calculation (ICMS, IPI)

;Fiscal Texts for ICMS, IPI

FiscalBooks

PostingG/L

PostingG/L

CreateDelivery


Confirmqty

Sales order


PostGoodsIssue

CreateBillingDoc.(ZXX)

rt

CreateSampleOrder (ZXX)

GenerateNota Fiscal


Bolt-on




• Configuration specific for Brazil;• New Sales order type and item category;• New Billing document;• New Incompletion proc.for Brazilian mandatory fields; • New Pricing procedure and Account keys assigned to the new condition types; • Legal Text for ICMS and IPI;• Billing has to account the ICMS and IPI, but not account receivable.


74

• SAP Script development for Nota Fiscal

– Bolt-on• MASTERSAF, ASPEN-SATI , SYNCRO [Fiscal Books]

Implementation– A sample or free of charge process is not difficult to be implemented. There are some points of attention to consider:• Standard pricing procedure for Brazil must be adjusted;• Complex SAP Script development for NF;• All business variants relevant to Brazilian operations must be tested;• Knowledge of the BBRAUN fiscal area to handle correctly the Brazilian requirements in SAP

C E

Agenda – Customer Returns

Overview




Ø Solutions


75


Ø Bolt – Ons


Summary


Customer Returns

Scenario : Customer Returns



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

76

This scenario describes the main flow of activities to be performed in Brazil when a customer returns the goods for commercial or quality reasons. The difference in Brazil exists only because of the Nota Fiscal that will be used during the process.There are two different process: one with own Nota fiscal that Jabil has to create another incoming nota fiscal and the other with Customer´s nota fiscal where Jabil has only to inform in incoming Legal Book.

CustomerReject goodsbeforereceiving

Createspecific Confirm

PostGoods

CreateBilling

Customer Returns – Company’s own NF

ReturnBBRAUNNota Fiscal & goods

Receivethe goodsto returnto stock

Analyse the goods and releaseor Reject

GenerateIncoming

;Specific Sales Order type (ROB) and item category for Brazil

;Use same Pricing Procedure for BR Standard Sales

; Inform Jabil NF number (Legal Books)


CreateDelivery

77

Suppliers

RegisterReason

Sales Order(ROB)

Qty OrderGoodsReceipt

Doc.(REB)

RegisterJabil

Nota Fiscalref: bill.doc.

NotaFiscal (N5)



Bolt-on

Delivery(LRB)

AccountPayable(Credit)

FiscalBooks

PostingG/L

PostingG/L


CustomerReject goodsbeforereceiving

Createspecific Confirm

PostGoods

Customer Returns – Customer NF

ReturncustomerNota Fiscal & goods

Receivethe goodsto returnto stock

Analyse the goods and releaseor Reject

CreateDelivery

;Specific Sales Order type (REB) and item category for Brazil


; Inform Customer NF number (Legal Books) w/o reference in SAP


CreateBilling

It’s not necessary to issue another NF to receive goods. The customer NF will support the process.

78

Suppliers

RegisterReason

Sales Order(REB)

Qty OrderGoodsReceipt

RegistercustomerNota Fiscalref: bill.doc.



Delivery(LRB)

Doc.(REB + N4)

Bolt-on

AccountPayable(Credit)

FiscalBooks

PostingG/L

PostingG/L


Customer Returns


• Configuration specific for Brazil;• New Sales order type and item category (consider 2 scenarios);• Billing document;• New incompletion proc.for Brazilian mandatory fields; • Automatic Legal Text for ICMS and IPI and manual texts (if necessary)

– Special development• SAP Script development for incoming Nota Fiscal (Scenario: Returns w/ BBRAUN NF)

– Bolt-on

79


Implementation– The returns from the customers process isn’t difficult to be implemented. There are some points of attention to consider:• Two different scenarios for Brazil, using specific documents types, will demand a effort of configuration and testing

• The scripts are important to drive the user in which documents must be used• Knowledge of the Jabil fiscal area to understand and fill correctly all the Brazilian legal fields in SAP and how the process must be handle in SAP

C E

Agenda – Correction of price or qty

Overview




Ø Solutions


80


Ø Bolt – Ons


Summary


Correction of price or quantity

Scenario : Correction of price or quantity



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

81

This scenario describes the main flow of activities to be performed in Brazil when Jabil makes a mistake related to the price or quantity and the customer or the own firm recognize issue and decide to correct the amounts.For Brazil, the SAP needs to provide a Nota Fiscal (Complement NF) to match the legal requirements.

Customer

Notifiy NF Error:Qty NF

< real price/qty

CreateDebit Request

CreateBilling

ComplementNotaFiscal

;Specific Sales Order type (DRB) and item category for Brazil

;Manual condition type to inform de difference of price

; Inform BBRAUN NF number (Legal Books)



GenerateComplement

;Specific Billing type (L2B) for Brazil

;Manual condition type to inform de difference of price

; Inform BBRAUN NF number (Legal Books)

82

Suppliers

Inform theDifference(PR00 orQty)

Sales Order(DRB)

Doc.(L2B)

Informorderreason

InformOriginal NFRef.:bill.doc.

AccountReceivable(Debit/ Credit)

PostingG/L

FiscalBooks

Nota Fiscal (N2)

Bolt-on




• Configuration specific for Brazil;• New Sales order type and item category;• New Billing document;• New incompletion proc.for Brazilian mandatory fields;• Automatic Legal Text for ICMS and IPI


83

– Bolt-on• MASTERSAF, ASPEN-SATI, SYNCRO [Fiscal Books]

Implementation– This scenario requires a low effort be implemented. There are some points of attention to consider:• Besides the low complexity, this scenario is very important to the day by day for all the companies in Brazil.

C E

Customer to Cash

• Other Local Legal Scenarios– Services;– Industrialization;– Resales;– Sales for consumption;– Zona Franca (Resales and Industrialization;

84

– Zona Franca (Resales and Industrialization;– Scrapping;– Fixed Assets;– Credit Memos;



• For discussion now:– Standard Purchasing– Stock Transfers– Import– Subcontracting– Consignment

86



Agenda - Standard Purchasing

Overview




Ø Solutions


87


Ø Bolt – Ons


Summary


Standard Purchasing

Scenario : Standard Purchasing



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

88

This scenario describes the main flow of activities to be performed in Brazil from the creation of a purchase requisition for an item and its release procedure until payment of the item when it is received.

Standard Purchasing

Customers

OutlineAgreement

PostingG/L

AccountsPayable

PostingG/L

FiscalBooks

Nota Fiscal Receiving

- At Invoice Verification, inform Nota Fiscal Number, Issuing date, receiving date, total amount, Nota Fiscal Type

- At Goods Receipt, inform Nota Fiscal Number, Issuing date, receiving date

89

SuppliersDelivermaterial

Purchase requisition

Requestfor

quotation

Evaluatequotations

Releasepurchaserequisition

Purchaseorder

Goods receipt

Invoiceverification

QuotationNota Fiscal

Follow-upon

delivery

EnterorderConfirm.

Confirmorder

CreateSalesOrder

Bolt-On

- Nota Fiscal Type

- Tax code

- PO Number

- Pricing Schema

- Tax code

- Additional data: Material Usage, Material Origin, Material Category, NCM code

- Pricing Schema

- Tax code



Standard Purchasing

The Solution– SAP Configuration

• Pricing Schema with Brazilian taxes (ICMS, IPI);• Tax code configuration.

– Special Development• SAPscript for Purchase Order Printing.

– Bolt-Ons• MASTERSAF, ASPEN_SATI, SYNCRO.

90

• MASTERSAF, ASPEN_SATI, SYNCRO.

Implementation– A standard purchasing order process configuration isn’t difficult to be implemented. The complexity will be the fiscal variants to be tested and configured. There are 3 points of attention to consider:

• pricing schema configuration;• SAP Script development;• basic fiscal knowledge of the buyer to understand which tax code should be used.

C E

Price with ICMS+ IPI

+Gross Price (Preço Bruto)

(- Consumption ICMS)(- Industrialization ICMS)

- Automatic ICMS calculation:Standard;

- Automatic IPI calculation:Standard;By NCM Code;Exception by material.

Pricing Procedure

Example of basic Pricing Procedure for Brazil: ZRM0000

91

(- Industrialization ICMS)(- IPI)

+Net Price (Preço Líquido)

IPIICMS

IVA CODE

Standard;By State;Exception by material.

Agenda - Stock Transfer

Overview




Ø Solutions


92


Ø Bolt – Ons


Summary


Stock Transfer

Scenario : Stock Transfer



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

93

This scenario describes the main flow of activities to be performed in Brazil while transferring a material from one plant to another.

Stock Transfer - Unplanned

Customers

Goods Issueof Material/TransferNota Fiscal

Cotia

FiscalBooks

PostingG/L Nota Fiscal Issuing

- Generate Nota Fiscal to support material transfer from one plant to the other (outgoing Nota Fiscal) using a special movement type

- Fiscal Texts for ICMS and IPI

94

Nota Fiscal

GoodsReceipt ofMaterial/TransferNota Fiscal

Supplier

Pirapozinho

FiscalBooks

PostingG/L


- Receive Nota Fiscal from the other (incoming Nota Fiscal) using a special movement type


Bolt-On

Bolt-On


Stock Transfer - Planned

Customers

Create Transfer Purchase Order

CotiaGoodsReceipt ofMaterial/TransferNota Fiscal

FiscalBooks

- PO Type UB

- Item Category U

- Pricing Schema

- Tax code



95

Analyse pending deliveries

Supplier

Pirapozinho

Goods Issueof Material/TransferNota Fiscal

FiscalBooks

PostingG/L

Bolt-On

Bolt-OnNota Fiscal Receiving

- Receive Nota Fiscal from the other (incoming Nota Fiscal) using a special movement type


Nota Fiscal Issuing

- Generate Nota Fiscal to support material transfer from one plant to the other (outgoing Nota Fiscal) using a special movement type



Stock Transfer


• Nota Fiscal Association to special movement types;• Associate Issuing Plant as a customer;• Create Receiving Plant as a vendor;• Tax Code configuration.

– Special Development• Adjustments to SAPscript for Outgoing Nota Fiscal form (Nota Fiscal de Transferência).

96

Transferência).– Bolt-Ons

• MASTERSAF, ASPEN_SATI, SYNCRO.

Implementation– The process has an standard operation in SAP. The complexity will be the planning and control of the transfers between plants.

– In case of using business areas some complex ABAP programs should be developed to support the transfers.

C E

Agenda - Import

Overview




Ø Solutions


97


Ø Bolt – Ons


Summary


Import

Scenario : Import



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

98

This scenario describes the main flow of activities to be performed in Brazil from the creation of a purchase requisition for an item and its release procedure until payment of the item when it is received for a material bought out of the country. It also shows the integration points of SAP to bolt-on systems that control the imports.

Import


Customers

Invoiceverification

Enterorder

OutlineAgreement

CreateDown-

PurchaseOrder

AccountsPayable

FiscalBooks

FiscalBooks

PostingG/L

AccountsPayable

PostingG/L

PostingG/L

Exchangerate variation

Bolt-On

Custom Expenses Invoice Verification

- The Custom Expenses declared by the agent to “nationalize” the imported materials are received with a Nota Fiscal in the Invoice Verification transaction as a planned cost receipt (if the cost was planned in the pricing schema in the purchase order)

Nota Fiscal Writer Receiving

- The Nota Fiscal issued by the agent to support material transfer from the harbor to the plant should be received manually at the Nota Fiscal Writer Transaction

99

Foreign Suppliers


Invoice

Follow-upon

delivery

Confirmorder

Agent

ReceiveDown-payment

CustomExpensesInvoiceverification

Nota FiscalCustomExpenses

ReceiveMaterial

CreateSalesOrder

DeliverMaterial

DeliverMaterial

Nota Fiscal WriterReceipt

NotaFiscal

Goods receipt

verificationConfirm.payment

Order

Bolt-On Bolt-On

Bolt-On Bolt-On

- Nota Fiscal type

- Company Code

- Branch

- Vendor number

- Material information (Quantity, Unit price, CFOP, ICMS Tax Situation, IPI Tax Situation, Material Usage, Material Origin, Material Category, NCM code)

- Nota Fiscal Type

- Tax code

- PO Number

- Planned costs

- Pricing Schema

- Tax code


Bolt-On

Bolt-On


Import


• Pricing Schema with import pricing (Import Tax, freights, …).– Special Development

• SAPscript for Purchase Order Printing;• SAPscript for Incoming Nota Fiscal form (Nota Fiscal de Entrada).

– Bolt-Ons• Bergen, SIGA-EIC (Easy Management) [Import Control];• MASTERSAF, ASPEN_SATI, SYNCRO [Fiscal Books].

100

• MASTERSAF, ASPEN_SATI, SYNCRO [Fiscal Books].– Manual Workaround

• Nota Fiscal Writer to receive the materials in stock;• Distribution of custom expenses.

Implementation– It’s a complex solution because requires the configuration of an import pricing schema, manual Nota Fiscal Writer for the goods receipt and the integration with the bolt-on system.

C E

Agenda - Subcontracting

Overview




Ø Solutions


101


Ø Bolt – Ons


Summary


Subcontracting

Scenario : Subcontract



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

102

This scenario describes the main flow of activities to be performed in Brazil from the creation of a purchase requisition for an item and its release procedure until payment of the item when it is received for a material that was processed outside the plant using components sent by the plant.In this process, the company sends components to the vendor which processes it and send back to the company the processed material.

Subcontracting

Customers

OutlineAgreement

Issuing of Components

(Remessa para Beneficiamento)

- At goods issue the components used in the subcontracting process are sent to vendor

AccountsPayable

FiscalBooks

FiscalBooks

PostingG/L

FiscalBooks

PostingG/L

PostingG/L


- At Invoice Verification, inform Nota Fiscal Number, Issuing date, receiving date, total amount, Nota Fiscal Type and system will include the line items for the symbolic return of the components used by the vendor

At goods receipt the components used in the subcontracting process are consumed to “produce” the material that was subcontracted

A specific Nota Fiscal is required to support this operation and can be sent by the vendor in 2

- separated from the Nota Fiscal to bill the service (special transaction to receive it)

- together with the Nota Fiscal to bill the service (received at invoice verification)

103

SuppliersDelivermaterial


Requestfor

quotation

Evaluatequotations


Purchaseorder


Follow-upon

delivery

EnterorderConfirm.

Confirmorder

CreateSalesOrder

GoodsIssue of

Components

Nota Fiscalto receiveComponents

Goods receipt

Invoiceverification

Bolt-OnBolt-On- Pricing Schema

- Tax code


- Pricing Schema

- Tax code


- Special Movement Type


- Amount of each component being sent to subcontracting

- PO Number

- Nota Fiscal Type

- Tax code

- PO Number

Bolt-On


Subcontracting


• Pricing Schema with Brazilian taxes (ICMS, IPI);• Special Nota Fiscal type to support Subcontracting Nota Fiscal;• Special movement type to support Subcontracting components issue and Subcontracting components return (symbolic);

• Nota Fiscal Association to Movement types for Subcontracting;• Account association to subcontracting movements.

– Special Development• SAPscript for Purchase Order Printing;• Adjustments to SAPscript for Outgoing Nota Fiscal form (Remessa para Beneficiamento).

104

• Adjustments to SAPscript for Outgoing Nota Fiscal form (Remessa para Beneficiamento).

– Bolt-Ons• MASTERSAF, Aspen-Sati, SYNCRO.

– Manual Workaround• Price of each component to be sent to subcontracting should be informed manually.

Implementation– The complexity of this solution is high due to:

• control the components sent to subcontracting and do the manual movements to adjust stock in case of material loss;

• look for the price of each component to be sent to subcontracting and calculate the amount of the material to be sent to inform in the goods issue transaction to generate the Nota Fiscal;

• match the values of the components sent to subcontracting in the Symbolic Nota Fiscal of Return of the Components used in the subcontracting;

• process definition difference between subcontracting (components <> processed material) and industrialization (components = processed material).

C E

Agenda - Consignment

Overview




Ø Solutions


105


Ø Bolt – Ons


Summary


Consignment

Scenario : Consignment



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

106

This scenario describes the main flow of activities to be performed in Brazil from the creation of a purchase requisition for an item and its release procedure until payment of the item when it is received for a material that was received in the plant used a consignment process. In this process, the material is sent by the vendor without payment and at a certain period (for example, the end of the month) it is verified the usage of this material and the vendor invoices the company the quantity used. Replenishments of this stock are performed during the month to avoid lack of material in stock.

Consignment

Customers

OutlineAgreement

AccountsPayable

PostingG/L

FiscalBooks

PostingG/L

FiscalBooks

PostingG/L

FiscalBooks

Goods Receiving of Materials in Consignment (Remessa em Consignação)

- At goods receipt the materials in consignment are received in SAP in a special stock (or accounting control) and a Nota Fiscal of Remessa em Consignação is generated in SAP (that has all the information of the Nota Fiscal sent by the vendor)


- At Invoice Verification, inform Nota Fiscal Number, Issuing date, receiving date, total amount, Nota Fiscal Type and the reference to the Nota Fiscal received in consignment

Goods Receiving of Materials in Consignment (Remessa em Consignação)

- At goods receipt the materials in consignment are received in SAP in a special stock (or accounting control) and a Nota Fiscal of Remessa em Consignação is generated in SAP (that has all the information of the Nota Fiscal sent by the vendor)

107

SuppliersDeliverMaterial/Nota Fiscal


Requestfor

quotation

Evaluatequotations


Purchaseorder


Follow-upon nextdeliveries

EnterorderConfirm.

Confirmorder

CreateSalesOrder

DeliverMaterial

(replenishment)

Goods receipt

Goods receipt

Invoiceverification

Bolt-On Bolt-OnBolt-On

- Nota Fiscal Type

- Tax code

- PO Number

- Pricing Schema

- Tax code


- Pricing Schema

- Tax code




- Tax Code

- PO Number



- Tax Code

- PO Number


Consignment


• Pricing Schema with Brazilian taxes (ICMS, IPI);• Special Nota Fiscal type to support Consignment Nota Fiscal;• Special movement type to support Consignment receipt;• Nota Fiscal Association to Movement type for Consignment receipt;• Account association to consignment movement;• Special Tax Code configuration for Consignment process.

– Special Development

• SAPscript for Purchase Order Printing.– Bolt-Ons

108

– Bolt-Ons

• MASTERSAF, ASPEN_SATI , SYNCRO.– Manual Workaround

• Use of SAP standard reports to gather information about consignment stock in hand, materials received in consignment and usage of materials.

Implementation– The process has an standard operation in SAP. The complexity will be the control of stock in consignment because it’s required to use some SAP standard reports to control these stocks.

C E

Agenda - Vendor Returns

Overview




Ø Solutions


109


Ø Bolt – Ons


Summary


Vendor Returns

Scenario : Vendor Returns



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

110

This scenario describes the main flow of activities to be performed in Brazil when a material received is rejected by any reason and it is necessary to return the goods to the vendor.

Vendor Returns

Customers

ReverseAccountsPayable

PostingG/L

FiscalBooks

PostingG/L

Return to Vendor Nota Fiscal

- Create a Credit Memo to the vendor informing Purchase Order Number, total amount being returned, materials being returned, amounts per material being returned, Nota Fiscal Type, Fiscal Texts for ICMS and IPI

111

SuppliersReceiveReturnedmaterial

RejectMaterial

ReopensPurchaseOrderbalance

Nota Fiscal receipt

Goods issue of returned materials

Return NotaFiscal(CreditMemo)

Bolt-On


Vendor Returns


• Pricing Schema with Brazilian taxes (ICMS, IPI);• Special Nota Fiscal type to support Return to Vendor Nota Fiscal;• Special movement type to support Return to Vendor issue.

– Special Development• Adjustments to SAPscript for Outgoing Nota Fiscal form (Vendor Return).

– Bolt-Ons

112

– Bolt-Ons• MASTERSAF, ASPEN-SATI , SYNCRO.

Implementation– The process has an standard operation in SAP.

C E

Purchase to Pay

• Other Local Legal Scenarios– Utilities Nota Fiscal (Energy, Phone, Water);– Future Delivery on purchasing;– Third-Party;– Complementar Nota Fiscal;– Free of Charge (Donations, Samples);

113

– Free of Charge (Donations, Samples);– Return of Repairs;– Test;– Returnable Packaging;– Freights;– Inventory Write-offs;– Purchase of Services.

Reminder of Key Points - Logistics

MASTER DATA:• Material, vendors and customer master data should have the localized fields filled correctly in order to

allow localization operation and minimize the fiscal problems;

CONFIGURATIONS:• Different pricing schemas for several scenarios in Sales and Purchasing (complex configurations);• New SD documents should be created using specific doc. types for Brazil;• Different Nota Fiscal types to support business processes;• New movement types to support business processes;

114

• New movement types to support business processes;• Different tax codes should be created to support business process; • Upload or input exceptions related to taxes calculation (ICMS and IPI rates - exception by material,

ICMS and IPI Fiscal Texts, withholding taxes - IRRF, INSS, ISS);• Extra configuration required in case of using bolt-on systems.

DEVELOPMENTS:• SAP Script development for the main documents in Logistics (purchase order, sales order and picking

list);• SAP Script development for the Nota Fiscal and high effort to test all the business variants and validate

the Nota Fiscal printing (Outgoing and Incoming);• Extra ABAP developments in case of using interfaces of SAP to other systems.

Reminder of Key Points - Logistics

TESTING:• High effort to map and consider all business and fiscal variants that must be used during the test

of the scenarios. The validation process should involve the key-users and also the Fiscal Area.

FISCAL KNOWLEDGE:• BBRAUN Fiscal Area participation during the project is essential in order to transfer their fiscal

knowledge, provide information during configuration, validate the tests and learn how to handle the SAP system;

115

the SAP system;• Basic fiscal knowledge of the buyers and the sales team to understand all Brazilian legal fields

and their correct application in SAP documents affected by localization (sales orders, purchase orders, goods movements, Nota Fiscal).




Nota Fiscal

116








• Main ones affecting almost all goods movements are:


Taxes

117

– IPI - Manufacturing tax – ISS - Services tax– PIS - Social Integration– COFINS - Contribution for social funds

– IRRF - Withholding tax – INSS - Withholding tax social purpose

Material

• NCM Code – Brazilian naming of goods• CFOP Category – the type of operation• Material Destination – Resale, Consumption & Asset• Material Origin (domestic / imported)• Produced in-house or not• Taxes Classification (ICMS, IPI/ISS)

Vendor

118

Vendor• Legal Information (tax code i.e. CNPJ)• Situação Tributária IPI and ICMS• Withholding category indicator

Customer• Legal Information (tax code ie. CNPJ, Insc.Estadual)• Text code (texts are printed in the Nota Fiscal)• Tax Classification (Taxable, Zona Franca)• CFOP Category


• For discussion now:– Standard Sales– Export Orders– 3rd Party Sales– Consignment– Samples and Free of Charge

119

– Samples and Free of Charge– Customer Returns with customer Nota Fiscal– Customer Returns with BBRAUN Nota Fiscal– Correction of prices or quantity



• For discussion now:– Standard Purchasing– Stock Transfers– Import– Subcontracting– Consignment

120



Finance Integration Scenarios

Agenda - Product Costing

Overview




Ø Solutions


122


Ø Bolt – Ons


Summary


Scenario: Product Costing

Actual Cost Method is mandatory in Brazil for legal requirements.

It requires specific configurations and a significant amount of

Accounts Accounts PayablesClosure

Accounts Receivables Accounts Receivables Closure

GeneralLedger Closure

Product CostingAdjustments

InventoryAdjustments

ReportingFiscal BooksClosure

123

It requires specific configurations and a significant amount of testing.

SAP developed specific programs that have to be executed at every period end.

The solution was part of “Localization Brazil” but now, it is part of SAP standard through the Material Ledger tool.

An additional feature is the inventory control in 3 currencies

Description of Scenario – Std Cost

Production

ProductionOrder

Finished Product

Customer

Cost CenterExpenses

124

Raw Material

Planned Rates (std costing structure)

Price Variance

ProductionOrder

ProductionOrder

Semi-finished Product

Filial/PlantaPaulínea

Área de Negócio

Filial/PlantaITB

Área de NegócioITB

AMBEVCBB

Entidade Legal

Expenses

Spending Variance(c.c. balance)

Description of Scenario – Std Cost

Production

ProductionOrder

Finished Product

Customer

Cost CenterExpenses

125

Raw Material

ProductionOrder

ProductionOrder


P&L


Área de Negócio

Filial/PlantaITB


AMBEVCBB

Entidade Legal

Expenses



Price Variance

Description of Scenario – Actual Cost

Production

ProductionOrder

Finished Product

Customer


Área de Negócio

Filial/PlantaITB


AMBEVCBB

Entidade Legal

Cost CenterExpenses

Spending Variance

126

Raw Material

ProductionOrder

ProductionOrder




Price Variance


Finished Product

Customer

Production

ProductionOrder


Área de Negócio

Filial/PlantaITB


AMBEVCBB

Entidade Legal

Cost CenterExpenses

Spending Variance

127

Raw Material


ProductionOrder

ProductionOrder



Price Variance


Finished Product

Customer

Production

ProductionOrder


Área de Negócio

Filial/PlantaITB


AMBEVCBB

Entidade Legal

Cost CenterExpenses

Spending Variance

128

Raw Material

ProductionOrder


ProductionOrder

ProductionOrder

WIP Inventory


Price Variance



Finished Product

Customer(COGS)

Production

ProductionOrder

129


Área de Negócio

Filial/PlantaITB


AMBEVCBB

Entidade Legal

Raw Material

PlannedRates

Expenses

CC. Balance


ProductionOrder

ProductionOrder

Price Variance

• All goods movements within a period are valuated preliminarily at the standard price.

• At the same time, all price and exchange rate differences for the material are collected in the material ledger.

• At the period end, the periodic unit price (actual price) is calculated based on each material’s actual costs. The periodic unit price is used to

Product Costing

130

based on each material’s actual costs. The periodic unit price is used to revaluate the inventory at period close.

•Actual costing determines the portion of the variance debited at the next-highest level using material consumption. With the actual BOM, variances can be rolled up over multiple production levels to the finished product and COGS (if sold).

• The revaluation is automatic reversed in next period and it is input back as "price difference". It will only definitely revaluate the inventory after the next standard cost calculation, which will probably take a good portion of the price variance.

Product Costing

The Solution– Material Ledger activation– Actual Costing functionality activation– SAP Configuration

• Automatic Postings• Movement Type Classification

– Special Correction Note Application– Variance Adjustments Development for WIP inventory

131

– Variance Adjustments Development for WIP inventory– Abap Reporting (optional)

Implementation– Some difficulty to understand the concept ;– High effort (resources and time) ;

C E

Detail analisys

• Ensure correct costing in materials movement

• Period End Closing

132

Standard Raw MaterialPackageSemi-Finished ProductFinished Product

Price Control

All material movements are valuated at standard price and at period end, they are revaluated at moving average price.

133

Moving Average All the remaining materials consumed at cost

center level, not in production orders.

The moving average price is calculated at the moment of the entrance (Logistics Invoice Verification ). The consunption is valuated by the moving average price at the moment of each consumption.

revaluated at moving average price.

Logistics Invoice Verification ofSoya oil:

Soya oil consumption in Production of

Complementary cost (ex. Freight)

Of soya oil:

Soya oil consumption in Production of

Date: 01/05 Date: 02/05 Date: 03/05 Date: 04/05

Example

134

Soya oil:Quant. = 1.000 KgAmount = R$ 1.000

Production of I / Mono-di:

900 KG

Of soya oil:Quant. = 0 Kg

Amount = R$ 5.000

Production ofMono-di:100 KG

Soya oilInit Bal.: 0Entrance: 1.000 KgEnd Bal: 1.000 Kg

Soya oilInit Bal: 1.000 Kg

Sales: 900 KgEnd Bal: 100 Kg

Soya oilInit Bal: 100 Kg End Bal: 100 Kg

Soya oilInit Bal: 100 Kg Sales: 100 KgEnd Bal: 0 Kg

Inventory Movement of Soya Oil

I / Mono-di

Glicerine

Unit PriceR$ 1,00

Example

135

Soya oilSoya oil

Value: R$ 900,00Quantity: 900 Kg

Mono-di

Glicerine

Unit PriceR$ 51,00

Example

136

Soya oilSoya oil

Value: R$ 5.100,00Quantity: 100 Kg

Transfer at standard price(during month)

SAP R/3

Transfer between plants

137

Plant A Plant B

Transfer at standard price(during month)

SAP R/3

Transfer between plants

138

Plant A Plant BMaterial ledger – price variance

update (period end)

Example of purchase with PRD

139

Example of goods issue to a process order

140

Month End Closing Steps

The shaded steps refers to financial postings .

RevaluationProcess Order

Calculate Actual

Activity Prices

Calculate

Actual Activity Split

141

Single Level

Costing

Post Periodic Unit Price

(inventory reval)

Calculate STD WIP amount

Calculate Variances

Order Settlement

Adjust Actual WIP (GAP)

COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing


The shaded steps refers to financial postings .


Calculate Actual

Activity Prices

Calculate


142

Single Level

Costing


Calculate STD WIP amount

Calculate Variances

Order Settlement

Inventory and COGS Revaluation

Multi Level Costing and calculate plus post Actual WIP

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

Solution availablein November 2002



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


143

Single Level

Costing


(inventory reval)

STD WIP amount

Variances Settlement


COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

KSS2 – Actual Activity Split

The cost center “XXX” produces 2 activities (labour and machine). The building renting actual expense is posted to the cost center and then split accross the activies labor and machine.

144



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


145

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

KSII – Actual Price Calculation

Actual activity rate =

Actual expense posted against the activity

Actual activity utilization

146



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


147

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

Cost center cost report - before P.O revaluation

148

Utilization and Spending variance



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


149

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

Cost center cost report - after P.O revaluation

150

No more utilization and Spending variance



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


151

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

CKM3 – Before Order Settlement

152

Material: AM0657050AG



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


153

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

CO88 – Order Settlement

154

CKM3 – After order settlement

155

The variance is posted as a price difference in the ML. This means it will be posted back to inventory when running the actual price revaluation

CKMLCP – Cockpit Actual Costing

156



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


157

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

CKMLCP – Selection of materials

158



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


159

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

CKMLCP – Determine sequence

160



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


161

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

CKMLCP – Single-level price determination

162



Calculate Actual

Activity Prices

Calculate STD WIP

Calculate Variances

Order Settlement


163

Single Level

Costing


(inventory reval)

STD WIP amount



COGS Revaluation

Multi Level

Costing

Material Selection

Material Sequence

Single Level

Costing

Multi Level

Costing

CKMLCP – Multi-level price determination

164

CKMLCP - Check all calculations (single and multi-level)

165

CKM3 after multi-level price determination

The finished products receive the price difference from the lower levels according to the proportionality of the lower level

166

DoubleClick

the lower level consumption


167

DoubleClick


168

640,000100,017,373

X 0.028 = 0.18

Reminder of Key Points

Ø Logistics Invoice Verification required

Ø Impacts every logistic scenario

Ø Price Control issues– Raw material price control : Moving Average or Standard

169

– Raw material price control : Moving Average or Standard

Ø WIP Inventory variance allocation when MTO

Financial Accounting Scenarios

Finance Specific Scenarios

• For discussion now:– Accounts Payable and Payments– Accounts Receivable Collections– Legal Books and Files Preparation

171


Agenda – Acc.Payable and Payments

Overview




Ø Solutions


172


Ø Bolt – Ons


Summary


Vendor Master Records

• Vendor Master Records:

– Vendor Master maintenance follows standard procedures. However, for Brazil, you must maintain the following fields:

• Partner bank type in order to enter the vendor´s bank into the open

173

• Partner bank type in order to enter the vendor´s bank into the open item.

• Bank address• When paying in general individually, use the indicator individual payment.

• For vendor that send boletos, the maintenance of payment terms with payment block.

Boleto Forms

174

Bank Transfer

• Bank Transfer:– The following Brazilian-specific print program must be entered in the country dependent customizing of all payment methods that are used to create bank transfers. As part of localization, payment methods U and N are already customizing this way:

175

• RFFOBR_UThis program prints a payment list (Bordero) or a DME (Data Medium exchange/Arquivo Remessa) file containing all payment information.

• The following Brazilian-specific payment transfer must be customized per company code.– J_1B_BORDERO: Payment list– J_1B_DME: accompanying sheet

Bank File Formats

• Bank File Formats:– Brazilian localization supports the following bank file formats for DME:

• SISPAG Itaú • PFEB Bradesco• FEBRABAN/CNAB

176

• FEBRABAN/CNAB

Payment FormsThe Brazilian localization supports all Brazilian-specific payment forms summarized in the table below.

Bank File Formats

177

For each of the both payment forms 02 and 10, a respective payment method has to be definedcountry dependent as a copy of the released payment method U (bank transfer) with acorresponding entry (02 or 10, respectively) in the field key in code line.

For payments without boleto, that is, for payment forms 01, 02, 03 and 10, any entry in the field Key incode line overwrites the automatic selection.However, if the field barcode number is entered into the open item, the resulting Payment form is 30or 31 pending on the above conditions and the field key in code line is of no relevance.House bank and partner bank are identified by the first three digits of the entered barcode number.

SPB - Brazilian Payment System

• SPB– The law that controls the new Brazilian Payment System is Law 10.214, March 27th of 2001.

– Payment systems is a set of rules, procedures, instruments and operating systems integrated used to transfer funds from payer to receiver.

– The objective is to reduce the credit risk and liquidity. The payment system will make transfers and payments between economic agencies safer and efficient, with benefits that will be reflected in the companies and

178

safer and efficient, with benefits that will be reflected in the companies and people and in the perception outside of Brazil decreasing the risk for Brazil.

– Nowadays customers transfer their resources using checks or DOCs. By this way, the money is just available after the traditional clearing that lasts at least one day.

– Starting on April, 22nd of 2002, the new Brazilian Payment System allows the customers to transfer the money, in the same day, for payments and other purposes in a safer way and it will not take so long as the tradition clearing system.


• TED– The new SPB offers a new transfer option from one bank to the other named as Transferência Eletrônica Disponível – TED. Through TED the amount will be credited in the bank account and it will be available as soon as the bank receives the transfer message.

179

Transfer options:• STR – huge amount interbanks• Clearing / Payments – big / medium amount via electronic payments• Compe – checks, DOCs below R$5.000,00 in retail


• Definitions :– STR – Sistema de Transferência de ReservasThe Transfer of Funds System manages the funds transfer between financial institutions (STR) in real time, managed by the Central Bank of Brazil. The system will check the bank fund account balance and rejects the debits greater than the bank account balance. The customer can transfer funds from his own bank account to other bank using STR.

180

– COMPE - Compensação de cheques e outros PapéisThis system is responsible for check clearing and other papers, it is managed by Banco do Brasil. The objective is to remove from Compe the critical payments or high value payments, as well as other payments that can be done by STR.

– CIP – Câmara Interbancária de PagamentosThe payment clearing is managed by the Banks for values higher than R$5.000,00 and the liquidation is done in the end of the day. The objective of Clearing House is to liquidate payments in a faster way, secure and cheaper than traditional liquidation system.

Accounts Payable and Payments

Scenario : Accounts Payable and Payments


ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

Finance

181

Scenario : Accounts Payable and Payments

This scenario describes the activities flow regarding documents registering in Accounts Payable through the utilization of bar code reader device and also payments execution with files generation and exchange with banks.

Customer


Generate file to

banks w/ posting

Carry out payment routine

Integrate confirmation

file

-Automatic payment confirmation of payments

Purchase/Goods Mov.Op.

-Automatic document posting without typing

Pass ”boleto” onto bar code reader

Register Payable in SAP

182

Bank / Interchange

Supplier Generate ”boleto”

Payments

Generate payment confirmation

file-Automatic file generation

Customer


Pass ”boleto” onto bar code reader

Generate file to

banks w/ posting

Carry out payment routine

-Each bank has its own file layout (Itaú, Bradesco and Interchange)

-Configuration and extensive testing involving bank’s folks and testing environment

-Development is required

-Acquire appropriate bar code device

-Configuration and extensive testing

Register Payable in SAP

Purchase/Goods Mov. Op.

Integrate confirmation

file

183

Bank / Interchange

Supplier Generate ”boleto”

Generate payment confirmation

file

-Each bank has its own file layout

-Configuration and extensive testing involving bank’s folks at its system environment for testing is needed


Payments

Accounts Payable and Payment

The Solution:– SAP configuration at payment program transactions– Special ABAP development regarding files generation to be exchanged with bank

The objective of this solution is address automatic payment through bank exchange files

184

The complexity of this solution addresses:– extensive configuration required by payment program– extensive testing with each one of the banks involved. – contact banks folks to ask them to create system testing environment to start testing files exchange ASAP

C E


• Bar code reader device utilization• Complex payment program configuration• ABAP development is needed in order to generate files• Extensive testing with banks involved since the beginning of the project.

185

beginning of the project. • High level of interaction with banks is needed• Electronic/Manual Extracts

Agenda – Acc. Receivable Collections

Overview


Ø Overview Business Process Flow

Main Localistion Requirements

Ø Solutions



186


Ø Bolt – Ons


Summary


Accounts Receivable Collections

• Duplicata:

– An essential element of accounts receivable in Brazil is the concept of duplicata. For each debit liability the vendor collects the expected money with the active help of its house banks. For this purpose, information on the liability must be passed to the respective bank. This information is called duplicata.

187

called duplicata.

– The localization Brazil supports the automatic generation and processing of duplicatas in local currency.

– The duplicata information is based on the related open items and is extended through additional information such as the instruction key. The information returned by the bank can be electronically processed (Arquivo retorno).


• Customer Master Data:

– Customer master maintenance follows standard procedures. However, for Brazil, you must maintain the following fields:

• Interest calculation indicatorThis indicator is used to charge interest payment for overdue items.

188

This indicator is used to charge interest payment for overdue items.

• Individual paymentThis must be entered because a duplicata is created for each open item.


• Bill of Exchange Payment Request:

– Duplicata creation is represented by a standard R/3 payment method, namely the creation of a bill of exchange payment request. As for any other R/3 payment method, specifications have to be customized country and company code dependent.

– When running the payment program for the duplicata creation, one bill of exchange payment request is created for each open item. This BOE is only

189

exchange payment request is created for each open item. This BOE is only a statistical document in the context of the Brazilian localization. It has two main function:

• It labels the related item as being processed, meaning it indicates that the duplicata has been created. Thus, no second duplicata is created for this specific item when running the payment program again.

• It carries the information on the selected bank.


• Print Programs and Forms for Payment Transfer Media

– The following Brazilian-specific print program must be entered in the country dependent customizing of all payment methods that are used to create duplicatas. As part of localization, payment methods A is already customizing this way:

• RFFOBR_A

190

• RFFOBR_AThis program prints a duplicata list or a DME (Data Medium exchange/Arquivo Remessa) file containing all duplicata information.

• The following Brazilian-specific payment transfer media must be customized per company code.

– J_1B_DUPLICATA: Duplicata list


• Data Medium Exchange (Arquivo Remessa)– Bank File Format– Cobrança Itaú– Cobrança Bradesco– Febraban/Cnab

• Instruction Code– The instruction code specifies further processing of the duplicata. Basic

191

– The instruction code specifies further processing of the duplicata. Basic instruction codes are part of the localization Brazil. However, if required, additional instruction codes may be added though customizing.

• Instruction Code 1 = Codigo de ocorrencia• Instruction Code 2/3 = Instruções de cobrança

– The instruction code can be entered into each individual item, when creating a duplicata the entered instruction code is transported into the duplicata. If there is no instruction code entry in the open item, instruction code defaults (e.g. REMESSA) are set either through the customer master or the respective house bank.


• SAP Query

– A report on issued duplicatas in the form of a SAP Query is part of the localization for Brazil. This specific SAP Query is called DU. It is linked to the functional area / SAPQUERY/J1B1 and the user group /SAPQUERY/XX.

– This report covers the legal requirements for the ´Registro de Duplicatas a receber´ such as reporting due date, duplicata issue date, gross amount,

192

receber´ such as reporting due date, duplicata issue date, gross amount, customer name/street and amount. The list is sorted by due date. You can select via customer, company code, due date, issue date and document number.



ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

Finance

193

Scenario : Accounts Receivable Collections

This scenario describes the activities flow regarding the execution of accounts receivable collections with files generation and exchange with banks (Itaú and Bradesco) and Interchange.

Customer

Register Receivables in SAP

Generate file to

banks w/o posting

Carry out collection routine

Integrate collections file w/ paymentpostings

Print ”boleto”

Receive ”boleto”

Proceed ”boleto”payment

-Automatic payment confirmation and posting in accounting

Sales Operations


194

Bank / Interchange

Supplier

Collections

Generate collections file w/ client’s payments

-Automatic file generation

CollectionsUpdated

Customer


Register Receivables in SAP

Generate file to

banks w/o posting

Carry out collection routine

Integrate collections file w/ paymentpostings

Receive ”boleto”

Proceed ”boleto”payment

- Sapscript development form

Sales Operations

Print ”boleto”

195

Bank / Interchange

Supplier

Collections

-Each bank has its own file layout

-Configuration and extensive testing involving bank’s folks at its system environment for testing is needed

-Development is required-Each bank has its own file layout Configuration and extensive testing involving bank’s folks and testing environment


Generate collections file w/ client’s payments

CollectionsUpdated

Account Receivable - Specific Scenarios

Accounts posting

Accounts Receivable

Bank issues the BOLETO

196

Nota Fiscal

Customer Boleto

Payment program

Duplicatas file

Bordero

Bank


Accounts posting

Accounts Receivable

Company issues the BOLETO

197

Nota Fiscal

CustomerBoleto

Payment program

Duplicatas file

Bordero

Bank


Bank Return file

Import R/3

(Treasury)

Return file

198

Bank Return file

Automatic postingPosting

error log


The Solution:– SAP configuration at payment program transactions for collections (as the same as payments)

– Special ABAP development regarding files generation that will exchanged with bank and “boleto” form

The objective of this solution is address automatic collection through bank exchange files

199

collection through bank exchange files

The complexity of this solution addresses basically to:– extensive configuration required by payment program– extensive testing with each one of the banks involved. It’s important to contact banks folks since the beginning of the project in order to ask them to create system testing environment to start testing files exchange ASAP

C E


• Complex payment program configuration for collections

• ABAP development is needed in order to generate files and “boleto” form

• Extensive testing with banks folks involved since the

200

• Extensive testing with banks folks involved since the beginning of the project.

• High level of interaction with banks is needed

• Electronic/Manual Extracts

Agenda – Legal Books and Files Prep

Overview


Ø Overview Business Process Flow

Main Localistion Requirements

Ø Solutions


201



Ø Bolt – Ons


Summary


Legal Books and Files Preparation

Scenario : Legal Books and Files Preparation


ForecastOrder



Invoice &Payment

Claims &Feedback

Inquiry &Quotation

ExecuteWork

Inventory

Finance

202

Scenario : Legal Books and Files Preparation

This scenario describes the activities necessaries to address Brazilian Legal and Tax requirements through legal books and files preparation.

It’s important to mention that most of sales, purchases and goods movement have tax impact in the books and files and based on these data repositories, taxes are calculated to be paid.

There are three taxes levels: country, state and city levels.

Customer


Register ”Nota Fiscal”at tax tableswithin SAP

Generate Legal Books

Send ”Nota Fiscal”

GenerateLegalFiles

Receive and book“Nota Fiscal”

Sales Operations

Purchase / Goods Mov.Operations

Calculate tax to be paid

Accountingbooks and reports

Bolt-on

Prepare ”Guias de Recolhim.”

AccountsPayable

- Configuration of all fiscal variations

- Extensive testing of all fiscal variations of sales and purchases operations

203

Authorities

Supplier

Send files as required

Send ”Nota Fiscal”

Operations be paid

Display books as required

Recolhim.”

- Bolt-on implementation in parallel with SAP

- ABAP development of Interface between SAP and Bolt-on (e.g. Mastersaf, Syncro, Aspen-Sati)

-Legal files and Books generation through Bolt-on

- Manual workaround for Fiscal and Accounting issues not treated even by Bolt-on


The Solution:– Tax configuration with high level of complexity:

• IPI– for purchases operations IPI is calculated based on:

» NCM code identified at material master» Tax code defined at purchase order» It’s booked in accounting and Legal Books at invoice verification posting» Tax calculated only at manufactured goods» Tax accounts by plant

– for sales operations IPI is calculated based on:

C E

204

– for sales operations IPI is calculated based on:

» NCM code identified at material master» Tax code defined at sales order» It’s booked in accounting and Legal Books at billing document posting» Necessity of releasing billing documents which accounting documents weren’t booked » Tax calculated only at manufactured goods» Tax accounts by plant

• ICMS– for purchases ICMS is calculated based on:

» Jurisdiction Code defined at vendor master data (to define rate) » Jurisdiction Code define at plant address data (to define rate) » Tax code defined at purchase order» It’s booked in accounting and Legal Books at invoice verification posting» Tax calculated based on goods movement and services (e.g. freight) » Tax accounts by plant


The Solution:– for sales ICMS is calculated based on:

» Jurisdiction Code defined at customer master data (to define rate)» Jurisdiction Code define at plant address data (to define rate)» tax code defined at purchase order» It’s booked in accounting and Legal Books at billing document posting» Necessity of releasing billing documents which accounting documents weren’t booked » Tax calculated based on goods movement and services (e.g. freight)

» Tax accounts by plant

205

» Tax accounts by plant• Withholding Tax (IRRF and ISS on services purchases)

– WT field in Vendor Master identify if WT should be calculated or not– WT can be booked in two different moments:

» during invoice verification / FI invoice posting or» Invoice payment / Down Payment

– Services are classified by fiscal codes (e.g. code 1708, 3205). Standard Sap report by code is developed to reach this necessity.

• ISS– for services sales ISS is calculated based on:

» ISS tax code defined at sales order» It’s booked in accounting and Legal Books at billing document posting» Necessity of releasing billing documents which accounting documents weren’t booked


The Solution:– Third-party software bolt-on for legal books below:

• Mod-1 Registro de Entradas (List of incoming documents)• Mod-2 Registro de Saídas (List of outgoing documents)• Mod-3 Controle de produção (Overview of production and inventory)• Mod-7 Registro de Inventário (Physical of inventory overview)

206

• Mod-7 Registro de Inventário (Physical of inventory overview)• Mod-8 Registro de Apuração do IPI (Directory for calculating IPI tax)• Mod-9 Registro de Apuração do ICMS (Directory for calculating ICMS tax)• Listagem Operações Interestaduais (List of interestate goods movements)• Livro Diário (with historical description) • Livro Razão (with historical description)• Razão Auxiliar de Fornecedores (Statement for Vendor accounts)• Razão Auxiliar de Clientes (Statement for Customers accounts)• Registro de Duplicatas a Receber (List of open items to receive)

• GIA Guia de Informação e Apuração (Tax payment form)


The Solution:– Third-party software bolt-on for legal files below:

• Arquivo Magnético Convênio ICMS no. 57/95 (file as per law ICMS)• DIRF• IN 86 (Master data, documents files and tables)

– Manual workaround

207

– Manual workaround• LALUR (Taxable Income Control Register)• DOAR (Source and Funds)• Mutações do Patrimonio Liquido (Equity Moviment)• Lucros ou Prejuízos Acumulados (Retained Earnings Demonstration)• PIS (Employees Profit Participation Program) and COFINS (Tax for Social Security Financing) calculation

• IR (Income Tax): Provision, normal calculation, and calculation with indirect benefits

The Solution:– Assets

• It’s important to mention that assets control in Brazil is treated through SAP standard functionality however there is an specific topic called CIAP. It addresses to the ICMS recovering of assets purchased for utilization at productive process. It has legal requirements represented by specific legal book and rules for it’s calculation. The

C E


208

represented by specific legal book and rules for it’s calculation. The main activities necessaries to implement CIAP control are:

– extensive configuration– ABAP development for reports– patches aplication into system environment

The complexity of this solution addresses basically to:– extensive configuration and testing of all legal requirements and fiscal variants at SAP

– definition of procedures for legal issues treatment after SAP implementation


209

implementation– Definition of procedures about how to handle manual workarounds– Develop ABAP program for interface between SAP and Legal Books bolt-on

– Patches application for CIAP control for assets besides configuration and ABAP development


• Legal Books bolt-on implementation doesn’t avoid extensive configuration and testing at SAP, because SAP is bolt-on information source

• Extensive configuration and testing of all legal variants in SAP

210

• Bolt-on implementation in parallel with SAP and ABAP development to integrate both SAP and bolt-on

• Necessity to define procedures to handle manual workarounds for cases not treated by SAP or bolt-on

• Patches application for CIAP

Questions

211