2uoa015 106 ConnectRotlng Out SAP to Brall- Key Sogs and Chatlenges Login/Register a Menu * Opinion * Interviews © Analysis/Review * News * White papers ‘Search Africa Asia Australia Europe Middle East North America Latin America Search by Topic hnipshwwwidgconnect comblog-abetracl9002Koling-of-sap-brazi-tny-steps-chalenges wie2uoa015 106 Connect Rolling Out SAP to Brail- Key Sogs and Chalenges Image credit: dabldy / Shutterstock.com oT « [G#1) +1 Recomendar Project Management and Collaboration Rolling Out SAP to Brazil —- Key Steps and Challenges +0 * Posted by IDG Connect + on October 28 2014 Brazil is the world's seventh largest economy, and one of the fastest growing over the last decade. This has led to many new, fast-growing organisations in Brazil, and major international firms establishing local operations. Many companies are therefore building, rolling out or maintaining SAP enterprise solutions in Brazil or for their Brazilian entities. Global expansion entails significant complexity, risk, and a need for country-by- country knowledge. Brazil is the perfect example for a heavily regulated country, with restrictive taxation requirements. The local culture and language are additional factors to consider, which increase projects’ complexity. hnipshwwwidgconnect comblog-abetracl9002Koling-of-sap-brazi-tny-steps-chalenges an2uoa015 106 ConnectRotlng Out SAP to Brall- Key Sogs and Chatlenges Many of these issues are common across other enterprise software projects. Let's look at some of the key challenges, organized by project phase. Preparation phase Every SAP project starts with a design phase. Designing a template for Brazil is fundamentally different from that in other countries, due to SAP's localization and legal requirements. Program management experts and solution architects with local IT, business experience and language skills need to be involved as early as possible, even before the international template is built. The greatest challenge at this stage is matching the SAP global solution with Brazil's requirements: * Fiscal calendar - according to Brazilian legislation it is mandatory to use fiscal calendar K4: Gregorian calendar from January to December. + Payables and receivables processes are almost 100% done by interfacing the ERP with banks — electronic banking in Brazil is a reality + Revenue recognition — principles in Brazil differ from US GAAP. Those principles basically define when a company can recognize a sale. in Brazil the revenue recognition may vary due to fiscal and financial standpoints — when the goods are received by customers, when the Nota fiscal is issued and so on «Material ledger — the actual costing/material ledger is a legal requirement for Brazil and is used to calculate actual product costs for each material at the end of the period «Duty drawback — to stimulate the economy, the Brazilian government has created initiatives to enhance exports. One of these is the drawback regime, which reduces taxes on products used in the production of exports. This means that the system must be able to prove the link between the imported goods and the materials subsequently sold, + Nota fiscal - this is a statutory document that formalizes any transaction between two legal entities. itis not just an invoice. Each and every goods transaction is informed to and authorized by the fiscal authority, electronically. + Sales and purchasing pricing procedures — are highly integrated with the tax engine. Itis mandatory in sales to have a specific pricing procedure for Brazil. Implementation phase Once you have designed the template, the real implementation phase begins. The critical success factor at this stage is to have experienced consultants, with IT experience and a solid business background, and specific experience of the Brazilian marketplace. Major challenges include: ‘+ Project timeline — due to the heavy regulations and specific legislation in Brazil, the planned project timeline often seems wildly inaccurate, and the implementation phase can easily be prolonged by 6 to 12 months. This is because the process of addressing issues, changes and the additional complexity of the system in Brazil is substantially underestimated — for example, if a process in the UK usually takes 10 days to be set up, in Brazil it may take up to 100 days. «Project complexity — one of the greatest issues with SAP rollouts in Brazil is that once business requirements have been defined and fixed, they've already become out-dated. Government changes to rules and legislation are extremely dynamic. * Project team — the ability to contextualize, document and communicate properly with the global organization, in order to have all requirements quickly addressed, with ‘tending to zero’ disruptions in the global solution and business operations. Ongoing maintenance hnipshwwwidgconnect comblog-abetracl9002Koling-of-sap-brazi-tny-steps-chalenges ane2uoa015 106 ConnectRotlng Out SAP to Brall- Key Sogs and Chatlenges Due to the dynamic nature of the environment and legal/fiscal regime in Brazil, you need proactive support from a partner who is fully engaged, and dedicated to helping you achieve your goals. The best support offerings usually include: + System audits — to validate the system design and ensure it's compliant, no matter what regulatory changes have been applied. + Experienced consultants and enterprise architects — in-house or partner, you need a qualified team that understands the business requirements and can quickly adapt the system. + Advice from partners - it's best to have a local partner that specializes in monitoring and applying the statutory requirements. In Brazil the implications for non-compliance can be significant, and can translate into multi-million dollar fines Good partners should have specialized resources focused on SAP, with many years of experience in implementing SAP in Brazil. Try and find a partner who has a highly-skilled team in both the technical and language areas, with specific experience in your industry sector, and who can prove they understand your business properiy. Eneas Bernardo is Managing Director Brazil at RED TAGS: * SAP, Architecture, project management, IT Projects PREVIOUS ARTICLE «News Roundup: Polit-Tech, CV Lies and McWearables NEXT ARTICLE Why Business Women Leave Tech-Intensive Industries» IDG Connect Comments * Comments * Top comments Add Your Comment Add Your Comment Log-in to comment * Your Name * Email Address + Website hnipshwwwidgconnect comblog-abetracl9002Koling-of-sap-brazi-tny-steps-chalenges ane.2uoa015 106 Connect Rolling Out SAP to Brall- Key Sogs and Challenges + Comment Submit Comment No sou um robo weet [Related reading Google Mobile Applications: Tap the Potential of Shadow IT: Give Employees Tools They... * Google = 09/10/2015 IT and business leaders today are grappling with the ever-increasing use of personal devices and unauthorized apps at the office, often referred to Q sitecore tomer Experience Management Digital Disruption: Have You Been Disrupted Yet? * Sitecore = 07/20/2015 hnipshwwwidgconnect comblog-abetracl9002Koling-of-sap-brazi-tny-steps-chalenges sr2uoa015 106 ConnectRotlng Out SAP to Brall- Key Sogs and Chatlenges No organization, industry or region will avoid digital disruption, It can be seen as both a threat and an opportunity, but organizations that sit b Blogs Thinking Different Digital tech lets musicians play on Jon Collins’ in-depth look at tech and society Tech Transformations, Bloat-to-content ratio is killing the Web — here’s how to fix i Rupert Goodwins’ unique angle on tech change China Rising From maker to taker: China’s $5bn search for M&A tech targets Phil Muncaster reports on China and beyond Top Content * Opinion Interview = Analysis + News hnipshwwwidgconnect comblog-abetracl9002Koling-of-sap-brazi-tny-steps-chalengesBUSINESS MANAGEMENT Uber a step closer to ditching the sharing... od INTERNET News Roundup: FB Buttons, Cortana everywhere, ‘TECHNOLOGY PLANNING AND ANALYSIS VIRTUALIZATION Seeing Gaudi's Casa Batll6 through augmented... ‘SYSTEM DESIGN & MANAGEMENT Design guru Don Norman slams Apple's ease-of-us Will future employment just be for robots?... a hnipuhwwwigconnectcomblog-abetracl9002Koling-of-sap-brazi-ey-steps-chalengas 106 ConnectRotlng Out SAP to Brall- Key Sogs and Chatlenges am2uoa015 106 ConnectRotlng Out SAP to Brall- Key Sogs and Chatlenges CRM SOFTWARE SAP takes aim at “legacy CRM" of Salesforce... 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