Solution ID: 200782233
Doc ID: 625577.1
Date Last Revised: 12/29/2004
Title: Brazilian Localization SetupAbstract: This paper will
cover all the steps needed to setup Brazilian Localization.
Table of ContentsOverview Activate Localization Tax Code
Revision (P7617B) ICMS Tax Revision (P7608B) IPI Tax Revision
(P76B18) Transaction Nature (P7615B) Next Number Nota Fiscal
(P7600B) Next Number Fiscal Books (P7602B) Brazilian P.O.
Additional Information (P4310BR) Brazilian S.O. Additional
Information (P4210BR) Item Master Brazil (P4101BR) Item
Branch/Plant Brazil (P76412B) Address Book Additional Info Brazil
(P01012BR) Nota Fiscal Receipts (P4312BR)
OverviewThis paper will cover all the steps needed to set up
Brazilian Localization. The system must be setup to process tax
information including IPI (Imposto Sobre Produtos
Industrializados), ICMS (Imposto Sobre Circulao de Mercadoria e
Servios), and ICMS Substitution (Imposto Sobre Circulao de
Mercadoria e Servios) taxes. Automatic Accounting Instructions
(AAIs) must be set for Sales and Purchasing for IPI, ICMS and ICMS
Substitution, and other Brazilian taxes. Set up for Brazilian taxes
includes the following tasks off menu G76B31:
Setting up Tax Codes Setting up ICMS Tax Rates Setting IPI Tax
Rates Transaction Nature Next Number - Nota Fiscal Next Number -
Fiscal Books
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Activate LocalizationActivate Brazilian Localization by going to
Users Profile (P0092) off menu GH9011, add BR in the Localization
Country Code field.
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Tax Code Revision (P7617B)Set up Tax Codes to define the taxes
that apply to an item. The tax codes determine the ICMS and IPI
taxes that apply to the item. When a Purchase or Sales Order for
the item, the Tax Code defaults from the Item Branch Regional
Information - Brazil (F76412) table. If the item doesnt exist in
the Item Branch it will default form the Item Master Regional
Information - Brazil (F76411) table. From menu G76B41B select Tax
Code Revision (P7617B), click on Add and populate the fields Tax
Code and Description also define the Tax Incidence.
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ICMS Tax Revision (P7608B)ICMS (Imposto Sobre Circulao e
Mercadoria) is a State Tax that the government charges on
purchasing and sales transactions in Brazil. The tax rate varies
from state to state, and some products may be taxed at different
rates. The price of the product always includes ICMS tax, but the
amount of this tax also appears on the Nota Fiscal. Current ICMS
must be setup and maintained for all of the states where business
is done. The system will calculate the ICMS tax rates for
purchasing and sales transactions based on the rates you set up on
the ICMS tax rate table. Specific ICMS Tax Rate can also be defined
by item or mark up level, which is a code that is used in
conjunction with Address Book Category Code 30 (AC30). The system
will look first at the most specific one, which is the mark up
level, and then if it doesnt find anything it will look for an item
number, if it doesnt find it will use the generic state-to-state
tax. The mark up level cannot be left blank, if it not used,
populate it with an '*'. From menu G76B41B select ICMS Tax Revision
(P7608B) and click on Add:
To define the rates, click on ICMS Tax Revisions (P7608B) on the
row exit. Populate all the necessary fields according to business
needs. NOTE: Tax Rates must be expressed as a percentage and not as
the decimal equivalent. For example, 17% is typed as 17.
ICMS Reduction A factor that the system uses to reduce the
amount of the taxable base of a product. Substitution Mark-up A
theoretical mark-up factor, defined by the state, that is used to
calculate the maximum price a retail seller can charge customers
for a certain product. Substitution Reduction A factor that reduces
the ICMS substitution Tax Amount.Back to Top
IPI Tax Revision (P76B18)IPI (Imposto Sobre Produtos
Industrializados) is a federal tax that the government charges at
various rates on manufactured products. The tax is payable at the
point of production or importation. To calculate the IPI tax that
is paid to the customers and suppliers, setup Tax Rates and
Reductions. IPI Tax Rates can be setup either by Fiscal
Classifications or by a default tax that will apply to all
customers and suppliers. From menu G76B41B select IPI Tax Revision
(P76B18), click on Add and populate the necessary fields according
to business needs.
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Transaction Nature (P7615B)The Transaction Nature code (Natureza
da Operao) is a legal code established by the Brazilian government.
In Brazil, the government requires companies to assign each
business transaction a Transaction Nature code for tax purposes.
Tax identification is the primary purpose of the code. Originally,
the Transaction Nature code was a threecharacter code with a
two-character suffix. After January 01, 2002 the legislation
changed and the Transaction Nature changed from 3 to 5 digits,
however in Update 4, the 5 digits can only be viewed in the Fiscal
Books and not at the time the sales or purchasing Nota Fiscal is
entered. The 5 digits must be specified by each client according to
their business needs, the Transaction Nature Cross Reference
(P76B2001) table must be manually setup. When running the Nota
Fiscal Conversion (R76B200A), the Transaction Nature will be
converted from three to five digits according to the Transaction
Nature Cross Reference table defined by client. The calculation for
the Transaction Nature is hard coded and its done by the system as
it follows: 1st digit:
* If it is NF inbound/purchase, it will be: 1 - Transaction
inside the state 2 - Transaction interstate 3 - Foreign transaction
* If it is NF outbound/sales it will be: 5 - Transaction inside the
state 6 - Transaction Inter state 7 - Foreign transaction 2nd
digit: NOTE: This digit is calculated by the system, not setup
anywhere; it will depend on the type of transaction that is being
done. 1 - Sales or Purchase 2 - Transfer item 3 - Return 7 -
Sales/Purchase with tax substitute 9 - Other... (Note: This number
will never allow the system to calculate ICMS and IPI
recoverability or ICMS substitution and reduction) 3rd digit: NOTE:
Address Book Category Code 6 will define if the item was
manufactured by the company or purchased from another company. 1 -
Product manufactured by the company 2 - Product purchased that
belongs to a branch plant 3 - Product purchased from another
supplier/company From menu G76B41B select Transaction Nature
(P7615B), and click Add, populate the necessary fields according to
business needs.
The Transaction Suffix is a two-character field that works in
conjunction with the Transaction Nature code to identify the
complimentary implications of a type of a transaction. For example,
the suffix might indicate that a certain type of transaction is an
inventory change, or a transaction is eligible for a certain type
of tax. Transaction Nature suffixes are set up using the
Transaction Nature (P7615B) program. Valid values are: 01 02 03 04
04 06 Bonus Demo Sample Return Merchandise Back order Donation
Examples of Transaction Nature codes with suffixes:
Sales-in state, Demo Sales-import, 711 01 Bonus 511 02Back to
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Next Number Nota Fiscal (P7600B)This is where the next number
that the system will automatically assign to each Nota Fiscal is
setup. A next number must be setup for all of the Document Types
that will be used and the same is set up based on the Fiscal
Company.
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Next Number Fiscal Books (P7602B)
This is where the next number is setup that the system will
automatically assign when running the Fiscal Book programs. The
Opening and Closing Statements for the report type used can also be
setup here. A number must be setup for all of the report types used
by a company.
The Print Date field (below) will be populated with the last
date that the program was run.
All the other programs in the menu are user defined and must be
setup to fit the business needs. Menu G76B31 will have all the
information that was set up and used to default to the Sales and
Purchase Orders.Back to Top
Brazilian P.O. Additional Information (P4310BR)This program will
display the regional information for the Purchase Order that was
calculated based on the item and customer set up the values used
are from the set up from the previous menu. Information cannot be
added here, just review. To view the information from menu G76B31,
highlight the line and click Select.
Taking the row exit to PO Header will show the Transaction
Nature and Suffix.
Taking the row exit to PO Detail Revisions will show all of the
other information that defaulted for that particular transaction
from the Item Branch/Additional Information and the Address
Book/Additional Information.
Processing Options for Brazilian P.O. Additional Information
(P4310BR)Use these processing options to specify which value
Brazilian P.O. Additional Information (P4310BR) will apply to the
transaction if nothing is entered. Enter a value for the
Transaction Nature and Transaction Suffix that will be used in all
of the Purchase Orders entered, if not entered manually.
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Brazilian S.O. Additional Information (P4210BR)This program
works exactly like Brazilian P.O. Additional Information (P4310BR)
but it has all the information from the sales transactions (see
above).Back to Top
Item Master Brazil (P4101BR)This program will only display (not
add) the tag file information for a particular item. In Brazil it
is mandatory that companies maintain additional information for
each item. When additional information is entered for an item, the
system creates a record for the item in the Item Master Regional
Information Brazil (F76411) table. From menu G76B31, select Item
Master Brazil, choose an item to view the record.
To add the additional information, go to the Item Master (P4101)
off menu G4111 inquire on the item then take the Regional
Information row exit, the system automatically displays the form
where a new inventory item record is entered.
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Item Branch/Plant Brazil (P76412B)Use this program to access the
additional information for the item, like the Item Master, the
information can only be viewed not added. To make any changes, go
to the Item Branch (P4102) off menu G4111 and take the Regional
Information row exit. In Brazil, companies can choose to override
the Item Master information entered for specific Lot/Locations,
when entering a Purchase or Sales Order the system will search for
the item information first in the Item Branch/Plant and if it
doesnt find it there it will search in the Item Master. When
Additional Branch/Plant Information is entered for an item, the
system creates a record for the item in the Item Branch Regional
Information Brazil (F76412) table. From menu G76B31, select Item
Branch/Plant Brazil, choose an item to view the record.
To add the additional information, go to the Item Branch/Plant
(P4102) off menu G4111, choose a Branch/Plant, take the Location
Revisions row exit, highlight the location desired then take the
Regional Information row exit.
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Address Book Additional Info Brazil (P01012BR)In this program,
only set up the processing options to determine if the system will
allow values to be duplicated when entering new Address Book
information. Regional Information can be added or changed for a
client by going to menu G01, select Address Book (P01012), choose a
client and take the row exit to Regional Information.
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Nota Fiscal Receipts (P4312BR)Here is where the defaults to
create an Inbound Nota Fiscal can be setup. What is set up in the
Processing Options will default to the Nota Fiscal.
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