2. 2
The success of an implementation initiative is the sum of many elements that are
inter-dependent and influence the final outcome if not planned and monitored
during the course of the rollout
Implementation
Approach
Template
Management
Project and
Method
Organization
Governance
Change
Management
Global Rollouts
Application
Integration
Data
Management
3. 3
The following picture shows a typical team evolution
Global Template Implementation Rollout Phase
IT 1
IT 3
Implementation
Team (IT)
Global Template
Team (GTT) GTT GTT
IT 2
Local Resources (Localization)
Offsite Resources (Software Factory, etc.)
Pilot
4. 4
• Clarify what elements of the template (configuration, processesand
developments) are standard vs. what elements are local
• Localize strategically - the level of localization is a major driver of project
benefits and costs as well as long-term support costs
Approach - Global vs Local
5. 5
Given the complexity of Brazil a special focus
on the Brazilian SAP localization is
recommended for the implementation
Some parameters to show the importance of it
are as follows:
• Brazil has the most complex SAP localization
worldwide
• An average Brazilian company spends 2.600
man hours per year on tax declarations
compared with 250 hours of an average
European company, so special focus on
fiscal obligations should be considered
Approach - Localization
6. 6
Countries/ Areas BRAZIL MEXICO PERU COLOMBIA VENEZUELA
Localization influence
in the Business
Process
Configuration of
Localization
Taxes Legislation
Legal Books
Fixed Asset
Localization
Changes in the
Chart of Account
Special
Considerations
The complexity of SAP configuration in relation to the localization ofeach
country involved in a rollout in the LA region is shownbelow
6
Approach - Localization
7. 7
•Nota Fiscal
•Tax Calculation (ICMS/IPI)
•CFOP Determination
•Actual Costing
•Fiscal Books
•Specific Process for:
Consignment
Future Delivery
Import / Export
•Check routines for tax numbers
•and official document numbers,
•Fiscal Reports
•Journal
•General ledger
•Sales ledger
•Purchase ledger
•COA report
•Management of pre-numbered forms
Colombia
•Inflation Adjustment
•Fixed Asset
•G/L Account
•Multiple Withholding Taxes
•Legal Certificates into the Business
Process
•Stamp Tax
•Tax Reports by municipal
Venezuela
•Inflation accounting for:
•assets
• inventories
•and financials
•Financial reports:
•sales ledger
•purchase ledger
•Payroll Venezuela (PY-VE)
Each country of the region has its own set of localization issues
Brazil Mexico Peru
•VAT booking
•INMA configuration
•Inflation Adjustment of inventory
•VAT Tax
•Withholding Tax Certificate
•Tax Books
Approach - Localization
8. 8
Approach - Main Tax Reports and Obligations
CIAP ICMS
Fiscal
Booking
SINTEGRA
DFC/GI GIA
CAT
83/2009
DAPISEF
DAMEF/VAF
CSLL DACON DARF
DCTF DIPJ DIRF
GPS IN86
Withhold
INSS
IPI IRPF IRPJ
Lalur PIS/COFINS DNF
BADI
Implementation
PIS/COFINS
BADI
Implementation
BLOCO G
Federal SPED
ISS
GISS
Online
CityState
9. 9
Approach - Scope
• The activities of the local implementation partner in
Brazil comprise normally the following activities:
• Review of Global Templatefunctionality and GAP
identification
• GAP resolution
• Implementation of additionallyneeded
functionalitieslike:
• NFe outbound
• NFe inbound
• Actual Costing
• SPEDs
• Other fiscal obligations
• etc.
• Implementation of specific
fiscal solution (optional)
• Facilitate communication
between local Process Experts
and Core Team (SAP and
language)
• Testing and Training support
• Change Management support
10. 10
Global Template Processes
Nota Fiscal
= DANFE + XML
Additional
Taxes +
Calculation
Business
Place
Master Data
Add. Fields
New
Movement
Types
Special BR
Processes
Additional
Document
Types
Global Template Processes + Brazilian Processes
What are the issues of the Brazilian version to the Global Template?
11. 11
SAP
BI/BW SAP
SRM
SAP ERP MM
Master Data
Nota Fiscal
Tax calculation
SAP ERP FI
Payment
Reporting
Taxes
SAP ERP CO
Material Ledger
Costing-based
profitability analysis
SAP ERP SD
Master Data
Nota Fiscal
Tax calculation
SAP
GRC NFe
SAP
MDM
[CS / LE] [PM / PP]
Which SAP Applications are affected by BR and where are theefforts?
17. 17
CNPJ =
In Portuguese,
the tax numberis
known as
Cadastro Nacional
de Pessoas Jurídicas.
CPF Number
Natural Person
State Tax
Municipal Tax
The municipal tax
number is known in
Brazil as
inscrição municipal.
Master Data - Vendor – screenshot – Control data
18. 18
Specify all WHT
types that can
be relevant for
the vendor.
Specify the trivial
single WHT
code for each
WHT type.
Exemptions can
be specified here
or – better – in the
WHT record table
(by specifying 0%
rates).
WHT Data of Vendor
20. 20
Municipal tax no. (Inscrição Municipal)
Determination Substit. Tributária
State tax no. (InscriçãoEstadual)
CPF number privateperson
CNPJ number company
Determination ICMS/IPI exempt
Tax Law Determination
CFOP Determination
Master Data - Customer – screenshot 2
22. 22
WHT Data of Customer
Specify all WHT types that can be relevant for the customer
Specify the trivial single WHT code for each WHT type
Exemptions can be specified here or – better – in the WHT record table
(by specifying 0% rates)
23. 23
CFOP = Código Fiscal de Operações e de Prestações (Fiscal code for type of operation)
Characteristics:
The CFOP has to be printed on all Notas Fiscais and is included in legal reporting, such as the Livros
Fiscais, or fiscal books. It contains information on the origin of the goods and on the type of operation
(sales, returns, stock transfers, sales of communication or transportation services, exports)
The type of operation (CFOP) determines if IPI is charged ornot.
Type of operation is defined per line item.
CFOP is currently implemented in the Nota Fiscal. But it in the standard system it is not used to
determine which tax types have to be calculated in a special business case.
CFOP
24. 24
. 1. Direction of movement
2. Destination CFOPCat.
4. NF item type
3. Material CFOPCat.
5. Special cases
CFOP - N.Fiscal
6. Produced in-house
yes
no
8. Customer CFOP Cat.
7. Material usage
CFOP Determination for Nota Fiscal SD (out/in)
25. 25
. 1. Direction of movement
2. Destination CFOPCat.
4. NF item type 5. Special cases
6. Material usage
CFOP - N.Fiscal
7. CFOP Cat. Bus. Place
3. Material CFOPCat.
CFOP Determination for Nota Fiscal MM (in/out)
26. 26
In Brazil, tax paying companies must issue Notas Fiscais for virtually all
business processes …
With Business Partners (Customers, Vendors)
For Inter-Company Transactions
For Intra-Company Transactions between “Filiais” (Branches – in ERP called
“Business Place)
Company = Filial 0001
Filial 0003Filial 0002
Each Filial …
Is a juridical Person.
Is registered with one or several tax authorities
and hence has distinct tax registration numbers
(that differ from the companies’).
Sends and receives Notas Fiscais.
Has to keep fiscal books and declare taxes.
Nota Fiscal - Organizational Structure
27. 27
Nota Fiscal
A Nota Fiscal …
Is a (tax-) invoice.
Has to acompany all goods movements between companies orbranches.
Also for transactions without goods movements (Services, Credit Memos,
etc.).
Is basis for tax declarations.
Includes logistics data, fiscal data and financial data.
Contains a lot of specific information usually not found on invoices inother
countries.
Has specific printing requirements (e.g. on special layout, sequentially
numbered etc.).
From 2010 on, almost all companies are obliged to issue electronic Nota
Fiscal (NF-e), where an XML file is sent to the local authorities before goods
can leave the company.
28. 28
– Complex process for
cancellation of Notas Fiscais
correction of Notas Fiscais
returns of goods
– Different types of Notas Fiscais, for example:
Nota Fiscal Remessa
Nota Fiscal de Devolução
Nota Fiscal de Correção
Nota Fiscal de Retorno
Nota Fiscal ao Consumidor
In the system, there are Brazil-specific sales and billing document types, item categories for sales and billing
documents, and Nota Fiscal types...
Nota Fiscal
29. 29
Sales Order FI
Accounting
Sales
Purchase
Order
FI
Accounting
Purchasing
FI
Accounting
Inventory Management
SD-Billing
Invoice
Verification
Goods
Receipt
Goods
Receipt
Goods Issue
Delivery
NFNF
NF
Nota
Fiscal
Model
55
Nota
Fiscal
Model
55
Nota
FiscaNlota
ModeFliscal
1-1AModel
55
Nota
FiscalNota
ModeFliscal
1-1A Model
55
Nota
FiscNaolta
ModFeislcal
1-1AModel
55
NF
NF
Nota Fiscal Integration in Logistics NF-e (Model 55)
30. 30
Companies selling products in Brazil must send each invoice
electronically to the government for validation before
shipping their goods.
Companies purchasing goods in Brazil must validate the
electronic invoice at the government before receiving the
goods.
Bottom line: The government wants to be sure they are
getting all of their tax revenue.
Companies need to handle these activities with an
automated solution that can scale to high volumes of
invoices and meet their business process requirements.
SAP BusinessObjects
Electronic Invoicing
for Brazil
aka
Nota Fiscal Eletronica
(NFe)
What is Nota Fiscal Eletronica?
31. 31
The SAP solution for SEFAZ’ NF-e comprises of two parts (I):
SAP ERP NF-e: provides the necessary tools for the NF-e data sending to an external
component (messaging system) and the subsequent document processing, after the
government approval;
An integration of NF-e process logic into the application logic of the SAP backend
– Electronic Nota Fiscal (NF-e) – Status: Released
– Electronic Fiscal File (Escrituração Fiscal Digital, EFD) – Status: Released
– Electronic Accounting File – Status: Released
Nota Fiscal Eletrônica (NF-e)
32. 32
SAP GRC NF-e: SAP solution for the processing of electronic Notas Fisca is (Invoices).
A solution for a messaging system supporting the implementation in the backend. (new
• SAP product GRC NFE, component SLL-NFE 100)
The SAP GRC NF-e solution is an application developed over the SAP NetWeaver platform
(SAP xApps) for the processing of electronic Notas Fiscais, specified according to the
technical requirements of the Brazilian Government NF-e Project, as well as the main
business requirements gathered from our customers
The release date for SAP GRC NF-e 10.0 January 2012.
Nota Fiscal Eletrônica (NF-e)
33. 33
Where is Nota Fiscal Eletronica supported within SAP?
Profitability and
Cost Management
Consolidation
Spend and Supply
Chain
Enterprise Performance
Management
Strategy Planning, Budgeting,
Management and Forecasting
Reporting Interactive
Analysis
Dashboards and
Visualization
Data Exploration
Advanced
Analytics
Business Intelligence
Risk
Management
Access Control
Process Control GlobalTrade
Services
Governance, Risk, and
Compliance
Data Integration
DataQuality
Management
Master Data
Management
Metadata
Management
Enterprise Information
Management
Environment, Health, Sustainability
and Safety Performance
Management Management
Nota Fiscal
Eletronica
34. 34
NF Print
Program
Delivery
Billing
Document
SEFAZ
Sales
Order
NF Issuer
Nota Fiscal – Normal Outbound Process Flow
NF-e
Validation
SAP NFE 10.0
Nota Fiscal
Digital
Signature
Batch
Creation
Receive NF-e
Batch
Process
Batch
Request and
Receive
SEFAZ
Status
Send to
SEFAZ
Set NF-e
Status
Save XML
Update NF-e
status in
backend
ERP
Integration
35. 35
Post GR
for
Inbound
Delivery
GR, IR Check
Create
Inbound
Delivery
SEFAZ
Provide
PO Data
NF Receiver
Nota Fiscal – Normal Inbound Process Flow
Receive and
Check Inbound
Nfe XML
SAP NFE 10.0
Receive
DANFE
Assign PO
Simulate
Invoice
Check
Authorization
Trigger GR
and IR
Postings
Trigger/Check
Inbound
Delivery
Compare
DANFE to
XML
Check
Planned vs
Actual
Quantities
ERP
Create
Invoice and
Nota Fiscal
Vendor
Receive
Acceptance /
Rejection
Notification
37. 37
Nota Fiscal = Danfe + XML-File!!
A DANFE …
Still has to be printed.
Has to acompany all goods
movements between
companies or branches.
Is NOT the Nota Fiscal, i.e.
without the authorized XML it
is not legally valid.
39. 39
Regular Sales
Regular Sales – Export
Regular Sales – Free-of-Charge
Returns
Future Delivery
Consignment
3rd Party Selling - Venda à Ordem
3rd Party S. - Venda p Conta e Ordem
Fiscal Divergences – Credit Note
Fiscal Divergences – Debit Note
• Service
• Cancellation of Nota Fiscal
• Returnable Transport Packaging / One-
way-package
• Batches
• Retroactive Billing
Sales Processes
40. 40
Domestic Procurement for Material with
Master Data
Domestic Procurement for Services
Domestic Procurement with Scheduling
Agreement
Domestic Procurement with Framework
Order “Limit” Contract
Subsequent Debit for add. Costs (Freight,
services, etc.)
Returns to Vendor
Stock Transfer (Two-Step MM)
Stock Transfer with Stock Transport Order
Purchase Processes
• Special Procurement: Future Delivery
• Special Procurement: Subcontracting
• Consignment
• Import Process
• Nota Fiscal Manual
• Free of Charge
• Returnable Transport Packaging
• Simples Remessa
• Price Revaluation
• 30 New movement types
41. 41
Brazil has no VAT…
But a lot of similar transactional taxes,
Levied by various Tax Authorities:
On Federal Level (e.g. IPI “excise” tax)
On State Level (e.g. ICMS “goods movement” tax)
On Municipal Level (e.g. ISS “service” tax)
A lot of additional “contributions” for social and other purposes:
PIS/PASEP, COFINS, CSLL …
Withheld taxes, such as income tax:
IRRF, INSS …
Brazilian Taxes Overview
42. 42
There are many kinds of exemptions for Brazilian Tax
“Regime Especial”: special tax treatments allowed by the authorities. May
apply to certain products or certain types of business partners /industries.
Exemptions come in the form of:
Base Reductions.
Special Tax Rates.
Tax Credits (e.g. in Zona Franca de Manaus).
Taxable and Exempted Base need to be stated in the Nota Fiscal.
Some Base Reductions are calculated differently (Convênio 100/99).
Example: ICMS Tax Base is reduced to 80%:
Due to inclusion of other taxes in the base amount, the application of base reductions is not always trivial.
1 (PISRate COFINSRate ICMSRate 0.8)
Brazilian Tax Exemptions
NetAmount
TaxBase
43. 43
There are specific rules on taxation of
Discounts and Surcharges
Usually, any discounts and surcharges apply on
the tax base amount, but not always (in most
cases: not on IPI).
Discounts, surcharges and other accessory costs
such as freight, insurance etc. must be shown on
the Nota Fiscal.
In case of freight, a separate tax calculation on
freight may be required (see also: Conhecimento).
Brazilian Tax
Handling of Discounts, Surcharges etc.
44. 44
Brazilian Payment Instruments
Checks.
Credit Transfer.
Standard (DOC) and real-time (TED) fund transfer.
Payment Bills (Boleto, Duplicata …).
Payment Cards.
Direct Debit - recurring and authorized (DDA).
Brazilian Central Bank Statistics (2008)
Brazil has one of themost
modern clearing
systems of the world,
with real-time credit
transfer.
On the other hand, especially
in B2C, paper checks
are still widely used.
It is very common to pay in
many installments, even
smallest amounts at the
supermarket or gas
station.
Financing models are also
common where
companies act ascredit
institutes for their
customers.
Paym
ent
card
37%
Direct
debit
6%
Credit
transf
er
44%
By volume
Check
13%
Credit
transf
er
85%
Payments
Paym
ent
card
2%
Check
12%
Direct
debit
1%
By value
45. 45
Main topics for asset management in Brazil:
– Depreciation calculation according to BR-GAAP, US-GAAP, IFRS
– PIS and COFINS calculation (credits according to the depreciation time) – no
longer necessary for assets purchased since July 2012
– Calculation of the ICMS credit for a correct CIAP reporting
– Depreciation balance – treatment of ICMS credit in case of transfer or sale of
an asset
– Sales control – determination of the CIAPfactor
Asset Management
46. 46
Actual Costing
In order to determine the real profit for income tax purposes,
Brazilian companies need to apply actual costing.
For manufacturing industry, it is necessary to roll-up all differences
between planned and actual cost to Work in Process, Inventory
and Cost of Goods sold.
Also in service industries, the time sheet data, wages etc. must be
used to revaluate the actual cost of projects, services etc. at period
end.
Therefore in ERP it is mandatory to use Material Ledger
for manufacturing companies in order to meet actual
costing requirements.
Cost Accounting
47. 47
Accounting
Livro Diário (Journal)
Livro Razão (GL account statement)
Register of Receivables Duplicatas
Local Tax (State, Municipal)
Modelo 1, 2 (List of incoming/outgoing
documents)
Modelo 10 (Vendor list)
Modelo 3 (Overview of production and inventory)
Modelo 7 Physical inventory overview
Modelo 8, 9 (Summary on IPI/ ICMS taxes)
Modelo 12 (Interstate goods movements)
Modelo 51, 56 (List of service documents)
Federal Tax
DIRF (Declaration of Withholding Tax)
LALUR (Income Tax) – not provided by SAP
DIPJ (Declaration of Juridical Persons) – not provided by SAP
Legal files
Arquivo Magnético ICMS – SINTEGRA
Issued Notas Fiscais Zona Franca
CIAP – ICMS control on assets
IN86
DIRF – Withholding tax declaration
Classical Reports and Files
48. 48
SPED = Public System of Electronic Bookkeeping
Accounting: ECD (SPED Contábil)
Replaces paper based accounting reports, e.g. Journal, Balancesetc.
Tax Reporting: EFD (SPED Fiscal)
Replaces some paper based fiscal reports (“Modelos”) e.g. list of
incoming and outgoing Notas Fiscais, tax consolidation for ICMS and IPI
taxes, Production, inventory and goods movements, physical inventory
overview.
Tax Reporting: EFD PIS/COFINS
Contains detailed information about PIS/Pasep and COFINS tax
contributions and the related tax consolidation.
FCONT: Fiscal control of accounting system transition
Reports differences in accounting according to Brazilian GAAP andIFRS
during a transition period.
Not provided by SAP standard.
49. 49
Alexandra Marinho Santiago
Gerente de Negócios SAP
e-mail:amarinho@indracompany.com
T.: 55 11 5186.3200
C.: 55 11 9.4519-0420
Whatsapp:21 9.9476-0383
www.indracompany.com
