ocrti company overview + br localization
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See a summary about BR Localization and about us.TRANSCRIPT
Delivering Customer Satisfaction in JD Edwards
Agenda
Companies Overview
Brazilian Localization High-Level Review
JDE Brazilian Localization Support
Project Plan
Impacts for Fiscal Auditing
Accounting & Fiscal Bookkeeping
Company Overview
Who is OCR TI?
JD Edwards Focused Consulting Company
Very Specialized Services
Brazilian Localization – Government Compliance
Industry Knowledge Life
Sciences, Mining, Telecommunications, Automotive, Oil & Gas, Manufacturing, Retail, Pharmaceuticals, and more.
What do we offer?
Customer-Focused Services Fit/Gap Analysis
○ As-is, Brazilian impact (Global vs Local processes / Localization)
Project Management & Governance
Functional Consulting
Technical Consulting
Interface Design and Development
Training
Support
Documentation
Strong consultant skills and experienced team.
Many consultants have more than 12 years of Oracle JD Edwards
know-how JD Edwards local Market, including localization
Experience and Expertise at a Competitive Prices
Why OCR TI?
Brazilian Localization
Implement JD Edwards in BrazilWith Knowledge and Experience
Brazilian Particularities
COMPLEX FISCAL LEGISLATION
Different tax rules according to industry segment
Different tax calculations depending on the geographical region
Three levels of legislation: Federal, State and Municipal A single sales must cover all
More than 6000 changes in Legislation in one year
+ 110 different taxes Corporation and non-corporation
CSS
COFINS
CSLL
Contribuições de melhoria
FAER
FUST
FISTEL
FGTS
FUNDAF
ICMS
IPI
Imposto de importação
IPVA
IPTU
ITR
IR
IOF
ISS
ITBI
INSS
INSS empregados
INSS patronal
PIS/PASEP
Some Taxes in Brazil
Background: TAXES
Federal
Import Tax (II)
Income Tax (IR)
Production Tax (IPI)
Social Security Contribution (INSS)
State
Product Movement Tax (ICMS)
County
Service Tax (ISS)
Social Contributions
Social Integration Contribution (PIS)
Social Security Funding Contribution (COFINS)
Social Contribution over Net Profit (CSLL)
Social Security Contribution (FUNRURAL)
MANAD
DIRF
LALUR
DCTF
DACON
IN68
IN86
SINTEGRA
CIAP
SPED
DIPJ
GIA
FISCAL BOOKS
> Inbound (model 1)
> Outbound (model 2)
> IPI Register (model 8)
> NFe – Nota Fiscal Eletrônica
> ICMS Register
> Production Register (model 3)
> Fiscal Documents / Occurencies (model 6)
> Inventory Register (model 7)
Background: OBLIGATIONS
Legislation Overview – What? Why? How?SPED – Federal Project
SPED is an acronym that in Portuguese means – Sistema Público de Escrituração Digital or Public Digital Reporting System.
A brief history about SPED:
A. On August 18th 2005, one of the largest Brazilian newspaper, Folha de São Paulo, published an article about tax evasion. According to this article, 63% of small companies have tax evasion evidences. On the other hand, the same happens to 49% of medium firms and only 27% of large enterprises. All Brazilian fiscal authorities know it. They also know that tax evasion can be reduced by increasing fiscal monitoring. The question is “how to monitor 5.7 million companies?”
B. The answer is obvious: the use of information technology and scientific knowledge to create a “fiscal intelligence” capable to handle operations on a large scale.
Legislation OverviewSPED – Federal Project
The SPED project is composed by 3 key initiatives:
More is coming…
Key InitiativeLegally
RequiredOverview
Federal Electronic
InvoiceSince April 2008
Replaces Formal Nota Fiscal
Printing by EI
Fiscal SPED January 2009Replaces fiscal books by a
monthly Electronic txt file
Accounting SPED June 2009
Replaces Accounting books
(Daily Ledger and Balance
Sheet) by an annually txt file
PIS/COFINS February 2012Replaces fiscal books by a
monthly Electronic txt file
FCONT February 2012 Accounting (P&L, equity acc)
Brazilian Localization and
JDE
Companies Matrix for Basic
RequirementsCompany Profile
JDEdwards Support Custom
Manufacturing Reseller ServicesReal
Estate Mining Oil&Gas
Provider (Energy/Wate
r) JDE E1 JDE WS JDE E1 JDE WS
Fiscal Requirements
Fiscal SPED
Y Y N N Y Y N Y Y S R
Account SPED
Y Y Y Y Y Y Y Y Y N N
SPED Contr.
Y Y Y Y Y Y Y Y Y S R
FCONT Y Y Y Y Y Y Y Y Y S R
Requirements and Controls
State Tax Credits
Y Y N N Y Y Y/N Y Y N N
Fed. Tax Credits
Y Y N N Y Y Y/N Y Y N N
Average Cost
Products
Y Y N N Y Y N Y Y S S
NF-e Y Y N N Y Y Y/N Y Y R R
NFS-e Y Y Y N Y Y Y/N Y Y R R
Complexity
High X X X Y Y
Medium X Y Y
Low X X Y Y
N/A X Y Y
Required
Suggested
Not Need
CONTRACT
SALES ORDER CREDIT
ORDER
APPROVAL
INVOICING
INVENTORY PICKING SHIPPING
MAKE TO ORDER
GENERAL LEDGER
TAX CALCULATION
ELETRONIC
FISCAL BOOKSNFe - ELETRONIC
INVOICING XML
JDEdwards System 76BLocalization for Brazil ADDITIONAL
SPECIFIC CUSTOMER DATA
ACCOUNTS RECEIVABLES
Government
Messaging
Protocol
Customer´s
Choice for
Messaging System
SPED
FISCAL BOOKS
NFe CERTIFICATION
TAX RULESREGULATORYDATABASE
MANDATORY REPORTS
TAX ASSESSMENT
FederalGovernment
StateGovernment
MunicipalGovernment
Continuous Legal Support and Up-To-Date Compliance
Standard
Option
DANFE - sample
Totals with Taxes
Green Circle = Goods Total Amount
Yellow = ICMS
Light Blue = IPI
Red = ICMS-ST
Blue = Expenses (Freight, Insurance, Additional)
Green = Discount
Light Red = Final Total
Brazilian Taxes Supported
Tax and JDE Information need to be updated during project time
TAXApply to Goods or
Services
Supported by JDE
Processes Where Used Fiscal Books / SPED
Withholding Retenção
ICMS G / S Y PTP / OTC Y NA
IPI G / S Y PTP / OTC Y NA
PIS G / S Y PTP / OTC Y Y*
COFINS G / S Y PTP / OTC Y Y*
CSLL S Y PTP / AP NA Y
IRRF S Y PTP / AP NA Y
INSS S Y PTP / AP NA Y
ISS S Y PTP / AP NA Y
Y* Apply withholding for Services
Books GL / NFSupported by JDE
Processes Where Used SPEDsWithholding Retenção
NF Costs NF Y PTP / OTC Y NA
NF-e NF Y* PTP / OTC Y NA
NFS-e NF N PTP / OTC NA NA
DG GL Y GL Y NA
RE NF Y PTP / OTC Y NA
RS NF Y PTP / OTC Y NA
RI NF Y PTP / OTC Y NA
SINTEGRA NF Y PTP NA NA
DES S Y PTP NA NA
IN86/68 S Y PTP NA NA
Y* XML file generation
Brazilian Taxes Supported
Finance / Banking Interface
It covers AP and AR
Dynamic Formatter
Brazilian Banks: Itau / Bradesco / Santander / BB / others (CNAB240 / CNAB400)
(JDE E1 ONLY, Xe – 9.1; it is a Custom required for
JDE WS A7.3 to A9.3)
JDE Brazil Implementation
PROJECT PLAN
Initials
Workshop to Local Key-
Users about JDE and
Processes for Medical devices
in Brazil
Connect users to change experience
Finance
General Ledger
GL Books / Reports
Fixed Asset (basic)
AP / Bank Interface
AR / Bank Interface
Real State
Distribution
Inventory
MRP/DRP
Procurement and Import Process
Sales w/ Adv. Price
Consignment and Virtual Inv. Control
Fiscal
Referential Chart of Accounts (BR Government)
Fiscal Books (ICMS / IPI)
SPEDs Fiscal / Acc / PIS & COFINS
DG Books (support for eBID w/ public
Hospitals)
Key Deliverables - SETUP
DESIGN
Kick-off the project:
Consulting Team and Client Team (Brazil and US)
Establish/gathering requirements from US and meet with Brazil
requirements (Chart of Accounts, Business Units Structures,
Taxes Accounts, USGAAP x BRGAAP, processes discussions,
AVG Costs x Standard Cost)
Meetings to review plans and align the project plan to initial scope;
Workshop to delivery the design plan to be setup on JDE (including
code changes, BI interface, Consolidation with US)
Approvals for Next Steps (Building)
Overview for Business Model
BRASIL STRUCTURE
BR FISCAL COMPANIES/BPs
Office 3PL Other 1 Other 2 Other 3 Other 4
BRAZIL TAX ID 0001-00 0002-xx 0003-xx 0004-xx 0005-xx 0006-xx
MFG N N N N N N
Purchase Order Y Y ? ? ? ?
Sales Order Y Y ? ? ? ?
Finance (AP / AR) Y Y ? ? ? ?
GL
REVENUE ? Y ? ? ? ?
COST ? Y ? ? ? ?
EXPENSES Y ? ? ? ? ?
TAXES Y Y ? ? ? ?
CO: BRAZIL CO
Setup and Composition by B/P
0001-00
0003-00
0005-000004-00
0002-00
Each Branch Plant has their own Tax ID and they use it (hard REQUEST) to
communicate with SEFAZ (Fiscal Authority). By the Messaging System, it
needs to take the tax ID and communicate with SEFAZ. Each B/P will be a
BR FISCAL Company.
Overview for Business Model
Required
BU / BP
Fiscal Companies
SP* / RJ**
Acc Company
Brazil
Company US/EU
00000 07600
076007600RE
7600FI
076017601RE
7601FI
When the billing process occurs from different States, it is required to setup multiple Fiscal Companies.
* SAO PAULO / ** RIO DE JANEIRO (States in Brazil)
Overview for Business Model
Required
Each Fiscal Company will have the Nota Fiscal sequence (similar to Invoice)
Each Fiscal Company will have the Ship From Tax ID
Each Fiscal Company will communicate with the Local Fiscal Authority (SEFAZ)
Each Fiscal Company MUST have the Fiscal Books ready to be audited by the Government Agents (State ICMS / Federal IRS / City ISS)
Building
JDE Setup/Code Changes/Tests:
Consulting Team and Client Team (Brazil and US)
JDE Setup, code changes, training and tests
Meetings to review plans and align the project plan to initial scope;
Workshops to delivery and present how each process will work
Approvals for Next Steps
Basic SETUP Required
Chart Of Accounts: P&L Accounts for BUs: 7600/7601
DMAAIs: Company: 07600/07601 / GL Class: by product
and Taxes by a cross reference with GL from Products
BU: Blank, will take from SO/PO EMCU/MCU
Fiscal: Setup Company (P0010): 07600/07601
○ Setup BR localization: Link Branch Plants to Fiscal Companies
Sequence for NF Next Number
P & L / Month End Process
Month end overview
CO: 07600 Total
Business Units> 07600 07601 BRAZIL 7600
P&L 3.375 5.625 9.000
REVENUE 20.000 15.000 35.000
COST 10.000 8.000 18.000
EXPENSES 3.000 5.000 8.000
TAXES 3.625 2.538 6.163
D-ICMS 3.400 2.550 5.950
D-IPI 2.000 1.500 3.500
D-PIS 330 248 578
D-COFINS 1.520 1.140 2.660
C-ICMS 1.700 1.360 3.060
C-IPI 1.000 800 1.800
C-PIS 165 132 297
C-COFINS 760 608 1.368
D=Debit / C=Credit (netting process to pay taxes)
P & L / Month End Process
Month end overview
CO: 07600 Total
Business Units> 07600 07601 BRAZIL 7600
P&L 3.375 1.463 9.000
REVENUE 20.000 15.000 35.000
COST 10.000 8.000 18.000
EXPENSES 3.000 3.000 8.000
TAXES 3.625 2.538 6.163
D-ICMS 3.400 2.550 5.950
D-IPI 2.000 1.500 3.500
D-PIS 330 248 578
D-COFINS 1.520 1.140 2.660
C-ICMS 1.700 1.360 3.060
C-IPI 1.000 800 1.800
C-PIS 165 132 297
C-COFINS 760 608 1.368
D=Debit / C=Credit (netting process to pay taxes)
Details of taxes booked
Working with JDE
By using JDE and run inquires or reports based on: Object Accounts, it will be possible to see the
totals for all BUs/BPs, Revenues, COGS, etc
By BU: Reliable on GL and integrity with Tax/Fiscal
Books/SPED
Interfacing to messaging system for NF-e and/or SPED Easier to build to separate the Fiscal
Companies by Tax ID;
Statutory Reports
SINTEGRA/Fiscal Books (ICMS)
SPED FISCAL (PRINT PER STATE,
ICMS/IPI/PIS/COFINS)
SPED ACCOUNTING (GL LEDGER / GL
BALANCE)
SPED PIS/COFINS (Q4 2011, Doc ID
752291.1)
SPED
Run extracts from JDE to compose a Flat Files:
Accounting, collect data from F0911, F0902, F0902A; Sending General Ledger and Balances (per
B.Unit);
P&L and Taxes per Business Unit
Fiscal, collect data from: F7601B/F7611B/F76B001/F76B011/F03B11 / F0411
/ F0101 / F4101 / F4102 / F4111 / F41112.
All Transactions sending to Government by State (B/P).
○ Tables F7601B/F7611B works like a copy from F4201/F4211 and F4301/F4311 but keeps the taxes amounts and codes for each item for all transactions.
JD Edwards BR Road Map
JD Edwards BR Road Map
Johnson & Johnson
Project: Oracle JD Edwards implementation
Scope: Financials, Distribution, EDI, MFG, Localization
Location: USA , EU and Brazil
Damovo (Data Mobile Voice)
Project: Oracle JD Edwards implementation
Scope: Financials, Distribution, Bar Coding, CSMS,
Localization
Location: EU and Brazil
References: Ennio Bianchini +55 11 3365 6321
Yamana Gold
Project: Oracle JD Edwards implementation
Scope: Financials, Distribution, Job Cost, Eqpt
Maintenance, MFG, Localization
Location: CA, Brazil, Chile and Mexico
References: Renata Blaxtar / Mannie Baltonado
to Bard’s Project
THE VALUES WE WILL BRING
THE VALUES WE WILL BRING
Results-oriented delivery based on high quality implementation, consistent standards and methodologies – OCR TI experience.
Solid co-operation between OCR TI/Denovo and CR Bard leveraging of each other's expertise to provide the best possible solution.
High quality solution, leveraging existing functionality in JDE, integrating all the processes, and replacing customized solutions when possible and feasible
To make Brazilian implementation a worldwide successful reference.
Thank You! www.ocrti.com
1 714 408 1627
1 714 598 3466
+ 55 11 4506 3180
+ 55 11 3230 7113