brazilian localization basic setup

8/17/2019 Brazilian Localization Basic Setup

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E1: 76B: Brazilian Localization Basic Setup For the Distribution Module (Doc ID625577.1)

In this Document

Purpose

Scope

Details 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 Regional Information - Brazil (P4101BR)

Item Branch Regional Information - Brazil (P76412B)

Address Book Additional Information – Brazil (P01012BR)

Nota Fiscal Receipts - Brazil (P4312BR)

References

APPLIES TO:

JD Edwards EnterpriseOne Procurement and Subcontract Management - Version XE and laterInformation in this document applies to any platform.System Code: 76B-Brazil

PURPOSE

Prior to using Brazilian localization with the Inventory, Procurement and Sales modules, the system must be setupto process basic tax information including IPI (Imposto Sobre Produtos Industrializados), ICMS (Imposto SobreCirculação de Mercadorias e Serviços), and ICMS Substitution taxes. Automatic Accounting Instructions (AAIs) mustalso be setup for IPI, ICMS, ICMS Substitution, and other Brazilian taxes.

SCOPE

Not Applicable

DETAILS

Activate Localization

Activate Brazilian Localization by going into Users Profile (P0092) on menu GH9011, and populating LocalizationCountry Code (LCTR) field with BR.

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Tax Code Revision (P7617B)

Set up Tax Codes to define scenarios of how ICMS and IPI taxes will be applied to an item. Each tax code willcontain a specific combination of ICMS and IPI taxes. When a purchase or sales order is created for a stock item,the Tax Code will default from the Item Branch Regional Information - Brazil (F76412) table. If the item does nothave an Item Branch plant record, the Tax Code will default from the Item Master Regional Information - Brazil(F76411) table.

From menu G76B41B, select Tax Code Revision (P7617B), click on Add, populate fields Tax Code (BCTF) andDescription (DL05), and define the Tax Incidence for the ICMS (BFII) and IPI (BFIP) taxes.

The Tax Incidence can be populated with the following values:

Taxable


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Exempt or Not Taxable

Other

These values come from UDC 76/II

ICMS Tax Revision (P7608B)

ICMS is a state government value-added tax applicable to the sales of both goods and services. ICMS tax rates varyfrom state to state, and some goods/services may be taxed at different rates within a state. The price of theproduct always includes ICMS tax, but the amount of this tax will also be reflected on the Nota Fiscal. Current ICMStax rates must be setup and maintained for all Brazilian states where sales/procurement transactions occur. Thesystem will calculate ICMS tax for procurement and sales transactions based on the rates set up on the ICMS TaxRates (F7608B) table. Specific ICMS tax rates can also be defined based on the Item Number (UITM) or Mark-UpLevel (AC76), which is a code that is used in conjunction with the Address Book Category Code 30 (AC30). Thesystem will look first at the most specific tax rate setup, which is the mark up level, and if there is no specific rateat the mark up level, it will look for a tax rate based on the item number. If neither is found, the generic state-to-state ICMS tax rate will be used.

Note: The mark up level cannot be left blank. If it will not be used, populate it with an '*'.

From menu G76B41B, select ICMS Tax Revision (P7608B) and click on Add:


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Populate all the necessary fields according to business needs. NOTE: Tax Rates must be expressed as a percentageand not as the decimal equivalent. For example, 17% is typed as 17.

Notes:

ICMS Reduction (BIRF) – A factor used by the system to reduce the amount of the taxable base of a product.

Substitution Mark-up (BISF) – A theoretical mark-up factor, defined by the state, that is used to calculate thesurcharge that will be placed on the item price over which the ICMS tax substitution will be calculated.

Substitution Reduction (BISR) – A factor that reduces the ICMS substitution Tax Amount.

IPI Tax Revision (P76B18)

IPI is a federal tax applied at various rates on the sales or transfer of manufactured items. IPI tax is payable at thepoint of production or importation, and can be setup either by Fiscal Classifications (BCLF), Item Number (UITM) orby a default tax rate 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


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business needs.

Transaction Nature (P7615B)

The Transaction Nature code (Natureza da Operação) is a legal code established by the Brazilian government. InBrazil, the government requires companies to assign each business transaction a Transaction Nature code for taxpurposes. Tax identification is the primary purpose of the code. Originally, the Transaction Nature code was athree-character code with a two-character suffix. After January 01, 2002 the legislation changed and the

Transaction Nature changed from 3 to 5 digits. In all E1 releases, however, the 5-digit Transaction Nature code canonly be viewed in the Fiscal Books and not at the time the sales or purchase order or Nota Fiscal is created. The 5digits 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 TransactionNature will be converted from three to five digits according to the Transaction Nature Cross Reference tabledefined by the user. The calculation for the Transaction Nature is hard coded and calculated by the system usingthe following criteria:

1st digit:

* If it is an inbound/purchase Nota Fiscal, it will be:

1 - Transaction inside the state

2 – Interstate transaction

3 - Foreign transaction

* If it is an outbound/sales Nota Fiscal, it will be:

5 - Transaction inside the state

6 – Interstate transaction

7 - Foreign transaction

2nd digit:

NOTE: This digit is an algorithm calculated by the system, not setup anywhere; it will depend on the type of

transaction that is being done.


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1 - Sales or Purchase

2 - Transfer item

3 - Return

7 - Sales/Purchase with tax substitute

9 - Other...(Note: This number will not allow the system to calculate ICMS and IPI recoverability or ICMS substitution and

reduction)

3rd digit:

1 - Product manufactured by the company

2 - Product purchased from a different branch plant

3 - Product purchased from another supplier/company

NOTE: By default, the Item Branch Plant Category Code 6 (SRP6) in the P41026 will define if the item wasmanufactured by the company or purchased from another company. The system allows the flexibility of usinganother category code, different than SRP6, by populating UDC 76/CN Codes (KY) field with NATUR and its desired

corresponding category code in the Description 01 (DL01) field.

From menu G76B41B select Transaction Nature (P7615B), click Add, and populate the necessary fields according tobusiness needs.


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The Transaction Suffix (BSOP) is a two-character field that works in conjunction with the Transaction Nature codeto identify the complementary implications of a type of a transaction. For example, the suffix might indicate that acertain 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) application.

Valid values include:

01 Bonus

02 Demo

03 Sample

04 Return

Merchandise

05 Back order

06 Donation

Examples of Transaction Nature codes with suffixes:

511 02 Sales-in state, Demo


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711 01 Sales-import, Bonus

Next Number – Nota Fiscal (P7600B)

When generating an outbound nota fiscal, the system will automatically assign a nota fiscal number based on thenext number setup in P7600B. Nota Fiscal next numbers are defined by Fiscal Company (FCO), Nota FiscalDocument (DCT), and Nota Fiscal Series (BSER). Furthermore, users can define how many detail lines per page

will be displayed in each nota fiscal.

Next Number – Fiscal Books (P7602B)

When generating Fiscal Books, the system will automatically assign a fiscal book number based on the next numbersetup in P7602B. Fiscal Book next numbers are defined by Company (CO) and Fiscal Book type (BFBC). TheOpening and Closing Statements for the report type used can also be setup here. A fiscal book next number mustbe setup for all report types being used by a company.


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The Print Date (DTPR) field must be populated with the last date when the fiscal book was printed.

Brazilian P.O. Additional Information (P4310BR)

This application will display the regional information for the Purchase Order that was calculated based on the item,branch plant, and supplier setup. The information displayed on this application is stored in the Purchase OrderHeader Tag File – Brazil (F76431). P4310BR can be accessed from menu G76B31.


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Taking the row exit to PO Header Revision 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 Plant Regional Information (P76412B) and the Address Book AdditionalInformation (P01012BR). The information displayed on this screen W4310BRF is contained in the Purchase OrderDetail Tag File – Brazil (F76432).

Processing Options for Brazilian P.O. Additional Information (P4310BR)

Use these processing options to specify which Transaction Nature and Transaction Nature Suffix will default intopurchase orders created with this specific P4310BR version. If these processing options are blank, the system will


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use 111 for the transaction nature, and 00 for the suffix. The user can manually override both the transactionnature and its suffix at the time of purchase order entry/revision.

Brazilian S.O. Additional Information (P4210BR)

This program works exactly like Brazilian P.O. Additional Information (P4310BR), containing all the information fromthe sales/outbound transactions. The information displayed on this application is contained in tables Sales OrderHeader Tag File – Brazil (F76421) and Sales Order Detail Tag File - Brazil (F76422).

Processing Options for Brazilian S.O. Additional Information (P4210BR)

Use these processing options to specify which Transaction Nature and Transaction Nature Suffix will default intosales orders created with this specific P4210BR version. If these processing options are blank, the system will use

511 for the transaction nature, and 00 for the suffix. The user can manually override both the transaction natureand its suffix at the time of sales order entry/revision.


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Item Master Regional Information - Brazil (P4101BR)

This program will only display (not add) the tag file information for a particular item. In Brazil, it is mandatory for

companies to maintain additional information for each stock and non-stock item. When additional information isentered 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, and inquire on an item to view the record.

To add the additional information for Brazilian localization items, go to the Item Master (P4101), from menu G4111,inquire on the item and then take the Regional Information row exit.


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Item Branch Regional Information - Brazil (P76412B)

The P76412B is used to access the additional information for the item branch plant record. Just like the Item MasterRegional Information application, in the P76412B the information can only be viewed, but not added. From menuG76B31, select Item Branch/Plant – Brazil, and choose an item to view the record.

To add the regional information at the item branch plant location level, go to the Item Branch (P41026) from menuG4111, and take the Location Revisions row exit. Select the specific item branch plant location, and take theRegional Information row exit.

When populating the P76412B for a specific item branch plant location, the system creates a record for this item inthe Item Branch Regional Information – Brazil (F76412) table. In Brazil, companies may choose to override theItem Master regional information with more specific Branch Plant Lot/Location regional information. When enteringa Purchase or Sales Order, the system will search for the item’s regional information at the Item Branch/Plant


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location level (F76412) first, and if it doesn’t find it there it will then search at the Item Master level (F76411).

Address Book Additional Information – Brazil (P01012BR)

The P01012BR contains the regional information for Brazilian localization address book records, as a complementto the information already existent in the standard Address Book (P01012) program. Processing options for theP01012BR will determine if the system will validate the CGC or CPF for that specific address book record, as well asif the system will allow duplicate CGC, CPF or State Tax ID numbers.

The Regional Information can be added or modified for an existing address book record by go to menu G0110,select Address Book Revisions (P01012), select a specific address book record and take the row exit RegionalInformation. Users should populate the address book regional information according to their specific businessneeds. The information populated in the P01012BR is stored in the Address Book Brazilian Tag (F76011) table.


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Nota Fiscal Receipts - Brazil (P4312BR)

The P4312BR processing options will determine the default information used to create inbound notas fiscais at thetime of purchase order receipt. The P4312BR should not be used by itself, and is always called by the PurchaseOrder Receipts (P4312) program by using the same version name between these two applications.


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