Brazil Localization Workshop

Knowledge Sharing Workshop
<Topic>
August, 2005
1
Introduction
Procwork
Introducing PW team
PP Consultant : Leonardo Abreu
MM Purchasing Consultant : Marcelo Stieger & Rafael Costa
IM/WM Consultant : Reanato Penna
FI / CO Consultant : Alexandre Matoso
SD Consultant : Marcelo Stieger & Marcell Mascarenhas
PM : Marcelo Stieger
2
Output & Deliverables
• Understanding
– Impacts of Brazil local legal
requirements on Global
Solution
Consultant
Brazil • Risk
– Complexity and effort to meet
the Brazilian local legal
requirements
PW
3
Localization Principles
Where do all these requirements come from?
• Culture of bureaucracy
– reality since very early in Brazil’s history
– continued regardless of many attempts to modernize
• Long period of high inflation

– during the last decade
– required complex calculation rules
• High historic level of tax evasion

– creation a very complex set of rules and regulations
5
Legal and Tax Requirements for Brazil
What are their impacts on a SAP R/3

implementation ?
.. Mainly the requirements are concentrated on tax calculation and

reporting, new document flow (“nota fiscal”) and specific
accounting rules (p.e., product costing)
.. There are specific SAP hierarchy elements and some additional

customizing required for Brazil in a R/3 implementation
6
Brazil Localization
Benchmark data based on Procwork Roll Out Experiences
Based on several SAP R/3 roll out projects in Brazil,

Procwork have learned the following * :
• Over 300 process variants can be impacted by localization requirements
• Average level of adherence of “international templates” (developed without
Brazilian requirements) for implementation in Brazil
SAP Module Adherence*
SD 40%
MM 50%
CO 60%
FI 60%
PP 90%
Average 60%
• Some processes not fully supported by standard SAP R/3
- Foreign trade document flow & documentation
- Tax reports for different regions and/or for specific requirements of the business
- some aspects of Payroll, External Warehouse, Bank EDI, etc ...
* impact varies significantly considering client specific business’ requirements, therefore, data should be used as a
benchmark reference only
7
Hierarchy
Hierarchy - Branch
• The “Filial” (branch)

Company – tax reporting
– Nota Fiscal reporting
“Filial” • Legally represents each physical

address of the company in which
there will take place any tax related
Plant Plant
operations
• Important data is maintained at this

level
• Nota Fiscal and Legal books are

Storage
Location issued at this level
9
Hierarchy – Company Code
JABIL Circuit Brasil

Company Code
Banch 1 Branch 2
Branches
• Jabil Circuit could be structured as only one Company Code.
• Reports could be taken at Company Code level, for Legal and

Business requirements.
10
Brazilian Localization
Nota Fiscal
• Most important fiscal/tax document for

– Invoicing
– Accounting
– Goods movement
• Contains taxes and business requirements
• Pre-printed form
• Sequenced numbers by physical site (branch)
• Audited by local Fiscal Authorities
• Source of key integration data

– Accounting information
– Tax information
12
Nota Fiscal
• Nota Fiscal Types

– Nota Fiscal Fatura (invoice)
– Nota Fiscal Complementar (complement)
– Nota Fiscal de Correção (correction)
– Nota Fiscal de Devolução (returns)
– Nota Fiscal de Transferência (transfers)
– Nota Fiscal de Simples Remessa (issue goods without billing)
– Nota Fiscal de Entrada (incoming - e.g. Importation)
– Nota Fiscal de Conhecimento de Transporte (freights)
– Nota Fiscal de Energia Elétrica (energy)
– Nota Fiscal de Telefonia (telecomunications)
• SAP Configuration
– Nota fiscal has internal and external number ranges
– Depends on Sales document type
– Depends on Movement type
13
Taxes
• There are many taxes in Brazil
• Main ones affecting almost all

goods movements:
– ICMS - Material Circulation tax
– IPI - Manufacturing tax
– PIS - Social Integration
– COFINS - Contribution for social
funds
– ISS - Services tax
– IRRF - Withholding tax
– INSS - Withholding tax social
purpose
14
Taxes
• IPI is a federal tax and depends on:

– Control code (in Brazil is used as NCM code)
– Material exception
• ICMS is a state tax and depends on:

– Goods movement
– State from (plant) / State to (ship-to) for outgoing
– State from (vendor) / State to (plant) for incoming
– Material exception
• PIS and COFINS:

– Could be customized using sales organization and country
15
Taxes
• IRRF is a tax related to natural person (IRPF) and legal entities

(IRPJ) and depends on:
– Vendor for incoming
• INSS is a tax related to natural person and depends on:

• ISS is a city tax and depends on:

– Material number for outgoing
16
Tax Reports
• Tax related transactions should be stored in Fiscal Books (“livros

fiscais”)
• There are rules on how to register them
• Requirements for printing and archiving are needed
• Different sorts of industry (or even company) operations require

reports adaptation
17
Product Costing
• Real Cost Method is mandatory
• Requires a significant amount of configuration and testing (Material

Ledger)
• SAP have developed specific programs to be executed every time

a period is closed
• “Localization Brazil” now is part of SAP standard.
18
Master Data
Master Data Records – Material
• NCM Code – Brazilian naming of goods
• CFOP Category – the type of operation
• Material Destination – Resale, Consumption & Asset
• Material Origin
– Domestic
– Imported
• Produced in-house or not
• Taxes Classification
– ICMS / IPI
– ISS
20
Material Master Screen
21
Material Master Screen
22
Master Data Records – Vendor
• Natural person or Legal entity indicator
• Legal Information
– CNPJ number (identification for legal entity) or
– CPF number (identification for natural person)
– Natural person (must be set when CPF number is informed)
– “Inscrição Estadual” (regional tax code – ‘state inscription’)
– “Inscrição Municipal” (city tax code – ‘municipal inscription’)
– “Domicílio Fiscal” (jurisdiction code, ex. SP – São Paulo
• Situação Tributária IPI and ICMS
• Withholding category indicator

– indicates that a tax will be withheld for payment. ex. IRRF Income tax held at
the origin
23
Vendor Master Screen
CNPJ
CPF
Insc.Estadual
Insc.Municipal
24
Master Data Records - Customer
• Natural person or Legal entity indicator
• Legal Information
– CNPJ number (identification for legal entity) or
– CPF number (identification for natural person)
– “Inscrição Estadual” (regional tax code – ‘state inscription’)
– “Inscrição Municipal” (city tax code – ‘municipal inscription’)
– “Domicílio Fiscal” (jurisdiction code, ex. SP – São Paulo
• Text code
– texts are printed in the Nota Fiscal
• Tax Classification
– 0 : Not Taxable
– 1: Taxable
– 2: Zona Franca
• CFOP Category
25
Customer Master Screen
CNPJ
Insc.Estadual
26
Nota Fiscal - Sales
Nota
Fiscal
Number
Inscrição
Operation CFOP Estadual
Description Code
CNPJ
Outgoing or ICMS item

Incoming rates
Nota Fiscal
Observations
Tax related part of

the Nota Fiscal
27
Nota Fiscal - Symbolic Return
Nota
Fiscal
Number
Operation CFOP Inscrição

Description Code Estadual
CNPJ
Outgoing or ICMS and

NCM Incoming IPI item
Code Nota Fiscal rates and
IPI amounts
Observation and
Special Rule
description
Tax related part of

the Nota Fiscal
ICMS and IPI

Texts and
observations
28
Bolt-ons
Indicative Map of Interfaces (Bolt-ons)
Payroll
Banks
DWWD (EDI)
Global
Marketing
WinChem SAP R/3
Export
Web
Shopping Legal Import
Books
30
Bolt-ons
• Legal Books
• Export/ Import
31
Bolt-ons
Legal Books
• Objectives :
1. Generate the Legal Books according to the Federal, State and City laws
2. Calculate the amounts to be paid, issue the legal documents (“gias”) and
generate electronic files, when applied
• Notes :
– SAP provides some of the Legal Books – based on São Paulo state only
– It is necessary to issue the other books / same books for other states
– Most clients decide to use specialized bolt-on systems to support these legal
requirements
– Even with these bolt-on systems it’s absolutely necessary to do all the
configurations in the SAP side
– Bolt-ons just get the information from SAP and put it into the specific lay-outs,
according to the legislation
32
Bolt-ons
Legal Books
• Effort :
– Dependant on the fiscal requirements of the company
– Should start at the Realization phase
• Resources :
– Business input – tax resources
– Designers – tax resources
– Specialists – bolt-on specialists
• Options :
– Mastersaf
– Aspen-Sati
– Syncro
– ...
33
Bolt-ons
Export
• Objectives :
1. Export Data Bases
2. Control Export Orders and Shipments
3. Processes Follow-Up
4. Issue Documents
5. Export Exchange Control
6. Issue Reports
7. Generate daily and monthly accounting postings
34
Bolt-ons
Import
• Objectives :
1. Import documentation – from the Import Order to the issue of the Receipt
Fiscal Invoice
2. Import Data Bases
3. Issue Documents
4. Follow-up reports
5. Import exchange control
6. Generate daily and monthly accounting postings
• Note :
– The physical receipt, as well as the fiscal and accounting receipt are not
included in the scope but may be executed in SAP
35
Bolt-ons
Export / Import
• Effort :
– High
– Should start at the Realization phase
• Resources :
– Business input – import/export resources
– Designers – import/export resources
– Specialists – bolt-on specialists
• Options :
– Bergen
– Aspen – CE (Procwork)
– Bysoft
– Average
– ...
36
The Scenarios & Presentation Approach
Customer to Cash Scenarios
• For discussion SD:

– Standard Sales
– Export Orders
– 3rd Party Sales
– Consignment
– Samples and Free of Charge (FOC)
– Customer Returns with customer Nota Fiscal
– Customer Returns with Company’s own Nota Fiscal
– Correction of prices or quantity
• Other Local Legal Scenarios
38
Purchase to Pay Scenarios
• For discussion in MM :
– Standard Purchasing
– Stock Transfers
– Import
– Subcontracting
– Consignment
– Vendor Returns
39
Finance Integration Scenarios
• For discussion in FI / CO :
– Product Costing
– Legal Books & Files
40
Finance Specific Scenarios
• For discussion FI :
– Accounts Payable and Payments
– Accounts Receivable Collections
– Legal Books and Files Preparation
41
Presentation Approach
A Generic Business Process Model
Define &
Order Shipping & Invoice & Claims &
Maintain Forecast Planning Purchasing Inventory Production
Handling Logistics Payment Feedback
Data
Inquiry & Execute

Quotation Work
Finance
43
Agenda – <Scenario>
Overview
Ø Description of Scenario
ØOverview Business Process Flow
Main Localization Requirements
Ø Solutions
Ø SAP configuration
Ø Special Development
Ø Bolt – Ons
Ø Manual workaround
Summary
Ø Reminder of Key Points
44
<Scenario Description>
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : <Scenario Name>
This scenario describes …
45
<Overview Business Process Flow>
Quotation Nota Fiscal
Request Receives
Approved, for
for Goods &
Customer Purchase Domestic
quotation documents
Order Sales
;Local Legalisation
Impact
;Description of Impact
etc. Loa Print

Plan
Shipments d Shipping
& Book Tru Doc.
Transport ck
Confirm Create/
Create To Transfer Goods Post Create
Quotation qty Create Confirm
Sales order Production & from production Goods Billing
(optional) Sales order Delivery Transfer
ref. quot. Purchasing to Warehouse Issue Doc.
Order
Bolt-on
Posting Account Fiscal

G/L Receivable Books
Confirm
Suppliers Purchase
order
46
<The Scenario Solution>
The Solution
– What is the solution?
• SAP configuration
• special development
• bolt-on
• manual workaround
• Is it a mixture of these?
– What does the solution do?
Implementation C E
– How COMPLEX is this to do?
– How much EFFORT is required, type of resources, duration, etc.
47
Brazilian Localization Review
Nota Fiscal

– Invoicing
– Accounting
– Goods movement

– Tax information
48
Taxes

goods movements are:
funds
purpose
49
Master Data Records
Material
• Material Origin (domestic / imported)
• Taxes Classification (ICMS, IPI/ISS)
Vendor
• Legal Information (tax code i.e. CNPJ)
Customer
• Legal Information (tax code ie. CNPJ, Insc.Estadual)
• Text code (texts are printed in the Nota Fiscal)
• Tax Classification (Taxable, Zona Franca)
• CFOP Category
50
• For discussion now:

– Standard Sales
– Export Orders
– 3rd Party Sales
– Consignment
– Samples and Free of Charge
– Customer Returns with Company’s own Nota Fiscal
52
Agenda – Standard Sales
Overview
Ø Solutions
Ø Bolt – Ons
Summary
53
Standard Sales
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Standard Sales
This scenario describes the main flow of activities to be performed in Brazil from
the creation of a sales quotation (optional) and convert it to a sales order until
the delivery the goods to the customer, the billing and the Sales Nota Fiscal
generation.
54
Standard Sales
Quotation ; Customer Region (state) Nota Fiscal
Request Receives
Approved, Tax Code for Brazil for
for ; Goods &
Customer Purchase Domestic
quotation documents
Order ;Pricing Procedure for BR Sales
Domestic Sales
; Taxes calculation (ICMS, IPI,
PIS,COFINS)
; Fiscal Texts for ICMS & IPI
Plan
Shipmen Print
ts & Shipping
Book Doc.
Transpor
t
Create Create Generate
To Transfer Goods Confirm Post
Quotation Sales order Create Billing Nota
Production & from production qty Goods
(optional) ref. quot. Delivery Doc. Fiscal
Purchasing to Warehouse Sales order Issue
(ORB) (F2B) (N1)
Bolt-on
;Pricing Procedure for BR

Posting Account Fiscal
Domestic Sales
; Taxes calculation (ICMS, IPI, Posting
PIS,COFINS) G/L
Confirm
;Account Keys for BR Dom.
Suppliers Purchase
Sales
order
55
Standard Sales
The Solution
– SAP configuration
• Configuration specific for Brazil;
• New Sales order type and item category;
• New Billing document;
• New Incompletion proc.for Brazilian mandatory fields;
• New Pricing procedure and Account keys assigned to the new condition types;
• Legal Text for ICMS and IPI;
– Special development
• SAP Script development for Nota Fiscal
– Bolt-on
• MASTERSAF, Aspen-Sati, SYNCRO [Fiscal Books]
Implementation C E
– A standard sales order process is not difficult to be implemented. There are some points of
attention to consider:
• Standard pricing procedure for Brazil must be adjusted;
• Complex SAP Script development for NF;
• All business variants relevant to Brazilian operations must be tested;
• Knowledge of the BBRAUN fiscal area to handle correctly the Brazilian requirements in
SAP
56
Pricing Procedure
* Sales Pricing Procedure for Brazil (Std.: RVXBRA)
Initial Price (PR00)

-/+ Discount/Surcharge * *Optional conditions for pricing
(without taxes)
______________________________
+ Price with ICMS (ICMI) -Automatic condition calculated
-/+ Discount/Surcharge * by a formula
(including taxes)
______________________________
Tax Base - IPI calculation:
+ IPI NCM code / material
-ICMS
+ ICMS Region-from/ Region-to
+ ISS -ISS
_ _ Tax for services
Final Sales Price (NF)
_______________________________
Base of PIS/COFINS
PIS (statistic) - PIS and COFINS calculation:
Condition records
COFINS (statistic)
57
Agenda – Export Orders
Overview
Ø Solutions
Ø Bolt – Ons
Summary
58
Export Orders
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Export Orders
the creation of a export quotation (optional) and convert it to a sales order until
the export documentation preparation, the delivery to the external agent, the
billing and the Export Nota Fiscal generation.
59
Export Orders
Quotation Customer Country
Request ;
Receives
Approved,
for Goods &
Customer Purchase ; Tax Code for Brazil (I0,C0)
quotation documents
Order
; Pricing Procedure for BR Export Sales
; NO Taxes calculation
Plan
; Fiscal Texts for ICMS & IPI Shipme
nts & Create Create
Book Packing Commercial
Transpo List Invoice
rt
Create To Transfer Goods Confirm Post Create Generate

Quotation Create
Sales order Production & from production qty Goods Billing Nota
(optional) Delivery
ref. quot. Purchasing to Warehouse Sales order Issue Doc. Fiscal
Bolt-on Bolt-on Bolt-on

Bolt-on
Posting Posting Account Fiscal

G/L G/L Receivable Books

Agent Request
Export Sales Add Export
Confirm Nota Fiscal
for Doc. –
; NO Taxes calculation
export / Invoice
export Deliver to
Doc. for Export
docum. ; Account Keys for BR Export customer
Suppliers Confirm ; Fiscal Texts for ICMS & IPI

Purchase
order
60
Export Orders
The Solution
• Specifics for Brazil;
• Sales order type, item category and billing document;
• New incompletion proc.for Brazilian mandatory fields;
• New Pricing procedure specific for BR Export and Account keys assigned to new condition types;
• Legal Text for Export;
– Bolt-on
• Bergen, Aspen – CE [Export and documentation Control];
• MASTERSAF, Aspen-Sati, SYNCRO [Legal Books]
– Manual workaround
• Extra export documentation, communication with SISCOMEX
Implementation C E
– It’s a complex solution because requires or a large manual documentation for
export process or an new integration with the bolt-on system to solve this.
Besides, new SD documents, pricing procedure and accounting assignment must
be created.
61
Agenda – 3rd Party Sales
Overview
Ø Solutions
Ø Bolt – Ons
Summary
62
3rd Party Sales
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : 3rd. Party Sales
This scenario describes the main flow of activities to be performed in Brazil

when for the same customer, you have a payer different from ship-to address.
Locally this process is called “Venda por conta e ordem”. In this case, to
support the Brazilian legal requirements, SAP system must provide 2 different
types of “Notas Fiscais”. The first one must to be issued to the payer (just to bill
the customer) and another one must to be issued and sent to the ship-to
address (just to follow the goods to the customer plant).
63
3rd Party Sales
Quotation Nota Fiscal
Customer Request
Approved, W/ ref.to
(payer) for ; New Sales order type (1)
Purchase ;Pricing Procedure for BR 3 rd. Payer
quotation
Order Party Sales (send by mail)
; Use Customer-Payer (address)
; Taxes calculation (ICMS, IPI,
;Pricing Procedure for BR 3 rd.
Party Sales PIS,COFINS)
Taxes calculation (ICMS, IPI,

;
Account Keys for BR 3rd. Party
;
PIS,COFINS) Fiscal Texts for ICMS & IPI and

Loa
; New Sales order type (2) ;
Plan Create
;Fiscal Texts for ICMS & IPI
manual fiscal text
Shipments d
Nota
;Use Customer-Send to (address) Tru
& Book Fiscal (N1)
; No Accountings
ck
;Pricing Procedure for BR 3 rd. Transport
Party Sales ; Manual texts for NF (if necessary)
Create Confirm Create/ Create
To Transfer Goods Create Post
Sales order
; Taxes calculation (ICMS, IPI, qty Reference w/Confirm
; the first NF Goods
issued Billing
Quotation Production & from production Delivery
PIS,COFINS) ref. quot. Purchasing to Warehouse
Sales order
(1)
Transfer
Issue
Doc.
(RCS) Order (F2B)
Payer Bolt-on
Step 1 Posting Account Fiscal
Create
Reference: Create Create
Sales order
Billing doc. Billing Nota
ref. Bill.doc.
Step 1 Doc. (FST) Fiscal (N1)
Step 2 (RCM)
Ship-to Ref. First NF
Confirm Bolt-on
Suppliers Purchase
order
Nota Fiscal Receives
Customer
W/ ref. Goods &
(send-to) Send-to documents
64
3rd Party Sales
The Solution
• Sales order type, item category and billing document (one for each step of the process);
• New Pricing procedure specific for BR 3rd.party and Account keys assigned to new condition types;
– Bolt-on
Implementation C E
– This scenario has a medium effort to be implemented. There are some points of
• Distinct configurations to support the first and second “Nota Fiscal”, it’s take more time to
prototype and test;
• The scripts are important to drive the user in order to choose the correct documents in the
right sequence;
• Knowledge of the BBRAUN fiscal area
65
Agenda – Consignment Sales
Overview
Ø Solutions
Ø Bolt – Ons
Summary
66
Consignment Sales
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Consignment Sales

when you need to send products in consignment to the customer without bill
him, but to support the Brazilian legal requirements, you need to send a “Nota
Fiscal” to follow goods.
When customer consumes your products, you have to invoice him, sending
another “Nota Fiscal”.
In the first Nota Fiscal, we have to bring the taxes but we will not charge the
customer, and then in the second Nota Fiscal, it will have the same taxes
67
Consignment Sales
; New Sales order type (KBB)
Customer Customer
Nota Fiscal Nota Fiscal
Customer ;Use Customer Region
informs Receives
(payer) ;Accountings only for ICMS with ref. just to follow
request consumed goods
;Pricing Procedure for BR ;No account receivable
Step 1 goods
quantity
Consignment Fill-up
Plan;Taxes calculation (ICMS, IPI
Shipme
; Taxes calculation (ICMS, IPI statistic)
statistic) nts &

Book;Fiscal texts for ICMS, IPI
; New Sales order type (KEB) Transpo
rt
;Use Customer Region
To Confirm Create
Create Transfer Goodsprocedure for BR Create
;Pricing Post Generate
;Pricing Procedure for BR&
Production qty Billing
Sales order fromConsignment
production Issue Delivery Goods Nota
Consignment Purchasing
Issue Sales order Doc.
(KBB) to Warehouse (LFB) Issue Fiscal
;Account receivable and IPI
(FCR)
; Taxes calculation (ICMS statistic, Bolt-on
IPI, PIS,COFINS) ; Taxes calculation (ICMS
Consign. Posting Fiscal
statistic, IPI, PIS,COFINS) Special G/L Books
Step 1: ;Fill-up
Fiscal Texts for ICMS & IPI
Stock
Create Create
Create Post Goods Create
Sales order Billing
”Symbolic” Issue from Nota
ref. Bill.doc. Doc.
Delivery consig. stock Fiscal
(KEB) (FC)
Bolt-on
Posting Posting Account Fiscal

Step 2: Issue G/L G/L Receivable Books
Confirm
Purchase
Suppliers order
68
Consignment Sales
Customer Return
Nota Fiscal
(payer) Customer customer Receives
just to follow
request Nota Fiscal goods
goods
& goods
Plan
Shipme
nts &
;Specific Sales Order type (KAB) and
Book
item category
Transpo for Brazil
rt
;Use same Pricing Procedure for BR
To Confirm Create Generate
Create Transfer Goods Consignment Create
Fill-up Post
Production & qty Billing Nota
Sales order from production
Sales order
Delivery Goods It’s
Doc.
not necessary
Fiscal
Purchasing to Warehouse (LFB) Issue
(KBB) ; Inform Customer NF number (Legal to issue another
(FCR) (N1)NF
Books) w/o reference in SAP to receive goods. Bolt-on
Consign. to a The customer
Posting NF
Fiscal
;Usually created with reference will
Special G/L support the
Books
Step 1: Fill-up billing Stock process
Create Create
Create Post Goods
Sales order Billing
Delivery Receipt from
ref. Bill.doc. Doc.
(LRB) consig. stock
(KAB) (REB+N4)
Bolt-on
Register
customer ;Specific
Register Billing document Consign. Posting Fiscal
Special
Step 3: Pick-up Nota Fiscal Reason
(REB) Stock
G/L Books
ref: bill.doc.
;Use same Pricing Procedure
Confirm for BR Consignment Fill-up
Purchase
order
Suppliers
69
Consignment Sales
The Solution
• Sales order type, item category and billing document (one for each step of the process);
• New Pricing procedure specific for BR 3rd.party and Account keys assigned to new condition types;
– Bolt-on
• MASTERSAF, ASPEN-SATI , SYNCRO [Fiscal Books]
Implementation C E
– This scenario has a medium effort to be implemented. There are some points of
• Distinct configurations to support the first and second “Nota Fiscal”, it’s take more time to
prototype and test;
• The scripts are important to drive the user in order to choose the correct documents in the
right sequence;
• Knowledge of the Jabil fiscal area
70
Agenda – Samples and FOC
Overview
Ø Solutions
Ø Bolt – Ons
Summary
71
Samples and Free of Charge
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Samples and Free of Charge
This scenario describes the main flow of activities to be performed in Brazil to

send some samples or free of charge products to a customer.
Every product must be followed by a Nota Fiscal, even if it is free of charge.
Samples with less than 5 kg are tax exempt, otherwise they will have ICMS
and/or IPI.
In cases we have taxes, we need to account them and register in Legal Books.
72
Request Nota Fiscal

for ; Customer Region (state) for
Customer
Samples ; Tax Code for Brazil Samples

Samples
; Taxes calculation (ICMS, IPI)
; Fiscal Texts for ICMS, IPI Plan
Shipme
nts &
Book
Transpo
rt
Create To Create
Transfer Goods Confirm Post Generate
Sample Production & Create Billing
from production qty Goods Nota
Order Purchasing Delivery Doc.
to Warehouse Sales order Issue Fiscal
(ZXX) (ZXX)
Bolt-on
Posting Posting Fiscal

; Tax Code for Brazil
G/L G/L Books
Samples
Confirm
;Taxes calculation (ICMS,
Suppliers Purchase
IPI)
order
; Fiscal Texts for ICMS, IPI
73
The Solution
• New Incompletion proc.for Brazilian mandatory fields;
• New Pricing procedure and Account keys assigned to the new condition types;
• Billing has to account the ICMS and IPI, but not account receivable.
– Bolt-on
• MASTERSAF, ASPEN-SATI , SYNCRO [Fiscal Books]
Implementation C E
– A sample or free of charge process is not difficult to be implemented. There are some points of
• Standard pricing procedure for Brazil must be adjusted;
• Complex SAP Script development for NF;
• All business variants relevant to Brazilian operations must be tested;
• Knowledge of the BBRAUN fiscal area to handle correctly the Brazilian requirements in
SAP
74
Agenda – Customer Returns
Overview
Ø Solutions
Ø Bolt – Ons
Summary
75
Customer Returns
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Customer Returns

when a customer returns the goods for commercial or quality reasons. The
difference in Brazil exists only because of the Nota Fiscal that will be used
during the process.
There are two different process: one with own Nota fiscal that Jabil has to
create another incoming nota fiscal and the other with Customer´s nota fiscal
where Jabil has only to inform in incoming Legal Book.
76
Customer Returns – Company’s own NF
Return ;Specific Sales Order type (ROB)

Reject goods
BBRAUN and item category for Brazil
before
Customer Nota Fiscal
receiving Use same Pricing Procedure for
& goods ;
BR Standard Sales
;Inform Jabil NF number (Legal Receive Analyse the
Books) the goods goods and
to return release
;Usually created with reference to
to stock or Reject
a billing

Create Post
specific Confirm Billing Incoming
Delivery Goods
Sales Order Qty Order Doc. Nota
(LRB) Receipt
(ROB) (REB) Fiscal (N5)
Bolt-on
Register Account
Posting Posting Fiscal
Jabil Register Payable
G/L G/L Books
Nota Fiscal Reason (Credit)
ref: bill.doc.
;Specific Billing document

(REB)
;Use same Pricing
Suppliers Procedure for BR Standard
Sales
77
Customer Returns – Customer NF
; Specific Sales Order type (REB) and
Return item category for Brazil
Reject goods
customer
before
Customer Nota Fiscal ;Use same Pricing Procedure for BR
receiving
& goods Standard Sales
; Inform Customer NF number (Legal
Books) w/o reference in SAP Receive Analyse the

It’s not necessary
the goods goods and
;Usually created with reference to a
to return release to issue another NF
billing to stock or Reject to receive goods.
The customer NF
will support the
Create Create
Create Post process.
specific Confirm Billing
Delivery Goods
Sales Order Qty Order Doc.
(LRB) Receipt
(REB) (REB + N4)
Bolt-on
Register Account
Posting Posting
customer Register Payable
G/L G/L
Nota Fiscal Reason (Credit)
ref: bill.doc.
;Specific Billing document Fiscal

(REB) Books
;Use same Pricing

Suppliers Procedure for BR Standard
Sales
78
Customer Returns
The Solution
• New Sales order type and item category (consider 2 scenarios);
• Billing document;
• Automatic Legal Text for ICMS and IPI and manual texts (if necessary)
• SAP Script development for incoming Nota Fiscal (Scenario: Returns w/ BBRAUN NF)
– Bolt-on
Implementation C E
– The returns from the customers process isn’t difficult to be implemented. There are
some points of attention to consider:
• Two different scenarios for Brazil, using specific documents types, will demand a effort of
configuration and testing
• The scripts are important to drive the user in which documents must be used
• Knowledge of the Jabil fiscal area to understand and fill correctly all the Brazilian legal
fields in SAP and how the process must be handle in SAP
79
Agenda – Correction of price or qty
Overview
Ø Solutions
Ø Bolt – Ons
Summary
80
Correction of price or quantity
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Correction of price or quantity

when Jabil makes a mistake related to the price or quantity and the customer or
the own firm recognize issue and decide to correct the amounts.
For Brazil, the SAP needs to provide a Nota Fiscal (Complement NF) to match
the legal requirements.
81
Notifiy NF ;Specific Sales Order type (DRB)
Error: and item category for Brazil Complement
;Specific Billing type (L2B)
Customer Qty NF Nota
< real price/qty
for Brazil Fiscal
;Manual condition type to inform
de difference of price ;Manual condition type to
inform de difference of price

; Inform BBRAUN NF number
(Legal Books) ; Inform BBRAUN NF number
(Legal Books)
;Usually created with reference
to a billing
Debit Request Billing Complement
Sales Order Doc. Nota
(DRB) (L2B) Fiscal (N2)
Bolt-on
Inform the
Inform Inform
Difference Account
Original NF order Posting Fiscal
(PR00 or Receivable
Ref.:bill.doc. reason G/L Books
Qty) (Debit/ Credit)
Suppliers
82
The Solution
• Automatic Legal Text for ICMS and IPI
– Bolt-on
• MASTERSAF, ASPEN-SATI, SYNCRO [Fiscal Books]
Implementation C E
– This scenario requires a low effort be implemented. There are some points of
• Besides the low complexity, this scenario is very important to the day by day for all the
companies in Brazil.
83
Customer to Cash

– Services;
– Industrialization;
– Resales;
– Sales for consumption;
– Zona Franca (Resales and Industrialization;
– Scrapping;
– Fixed Assets;
– Credit Memos;
84

– Stock Transfers
– Import
– Subcontracting
– Consignment
– Vendor Returns
86
Agenda - Standard Purchasing
Overview
Ø Solutions
Ø Bolt – Ons
Summary
87
Standard Purchasing
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Standard Purchasing
the creation of a purchase requisition for an item and its release procedure until
payment of the item when it is received.
88
Standard Purchasing
Customers Nota Fiscal Receiving
- AtInvoice Verification, inform
Nota Fiscal Number, Issuing date,
receiving date, total amount, Nota
Fiscal Type
- At Goods Receipt, inform Nota
Posting Posting Accounts Fiscal
Fiscal Number, Issuing date, G/L G/L Payable Books
receiving date
Outline
Agreement
Request Release Enter Follow-up

Purchase Evaluate Purchase Goods Invoice
for purchase order on
requisition quotations order receipt verification
quotation requisition Confirm. delivery
Bolt-On
- Pricing Schema - Pricing Schema
- Tax code Tax code
-
- Nota Fiscal Type
- Additional data: Material - Additional data: Material
Suppliers Usage, Material Origin,
- Tax code
Usage, Material Origin,
Create
Material Category, Confirm Deliver
NCM codeNota
Quotation Sales NCM codeMaterial Category,
- PO Number
order material Fiscal
Order
89
Standard Purchasing
The Solution
– SAP Configuration
• Pricing Schema with Brazilian taxes (ICMS, IPI);
• Tax code configuration.
– Special Development
• SAPscript for Purchase Order Printing.
– Bolt-Ons
• MASTERSAF, ASPEN_SATI, SYNCRO.
Implementation C E
– A standard purchasing order process configuration isn’t difficult to be implemented.
The complexity will be the fiscal variants to be tested and configured. There are 3
points of attention to consider:
• pricing schema configuration;
• SAP Script development;
• basic fiscal knowledge of the buyer to understand which tax code should be used.
90
Pricing Procedure
Example of basic Pricing Procedure for Brazil: ZRM0000
- Automatic IPI calculation:

Price with ICMS
Standard;
+ IPI
+ By NCM Code;
Gross Price (Preço Bruto) Exception by material.
(- Consumption ICMS) - Automatic ICMS calculation:
(- Industrialization ICMS) Standard;
(- IPI)
By State;
Exception by material.
+
Net Price (Preço Líquido) IVA CODE
IPI
ICMS
91
Agenda - Stock Transfer
Overview
Ø Solutions
Ø Bolt – Ons
Summary
92
Stock Transfer
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Stock Transfer

while transferring a material from one plant to another.
93
Stock Transfer - Unplanned
Customers
Posting Fiscal
G/L Books Nota Fiscal Issuing
-Generate Nota Fiscal to support
Cotia
material transfer from one plant to
the other (outgoing Nota Fiscal)
using a special movement type
Goods Issue
of Material/ - Fiscal Texts for ICMS and IPI
Transfer
Nota Fiscal
Bolt-On Nota Fiscal Receiving

Pirapozinho Goods -Receive Nota Fiscal from the
Receipt of other (incoming Nota Fiscal)
Material/
Transfer
using a special movement type
Nota Fiscal
- Fiscal Texts for ICMS and IPI
Bolt-On
Posting Fiscal
Supplier G/L Books
94
Stock Transfer - Planned
Customers - PO Type UB
- Item Category U Fiscal
Books
- Pricing Schema
- Tax code
Cotia - Additional
data: Material
Usage, Material Origin, Material Goods
Create Receipt of
Transfer Category, NCM code
Material/
Purchase Transfer
Order Nota Fiscal
Nota Fiscal Receiving
Bolt-On
-Receive Nota Fiscal from the
other (incoming Nota Fiscal)
Pirapozinho using a special movement type
- Fiscal Texts for ICMS and IPI Goods Issue
Analyse
of Material/
pending
Transfer
deliveries
Nota Fiscal
Nota Fiscal Issuing
Bolt-On
-Generate Nota Fiscal to support
material transfer from one plant to
Supplier the other (outgoing Nota Fiscal)
using a special movement type Posting Fiscal
G/L Books
95
Stock Transfer
The Solution
• Nota Fiscal Association to special movement types;
• Associate Issuing Plant as a customer;
• Create Receiving Plant as a vendor;
• Tax Code configuration.
• Adjustments to SAPscript for Outgoing Nota Fiscal form (Nota Fiscal de
Transferência).
– Bolt-Ons
• MASTERSAF, ASPEN_SATI, SYNCRO.
Implementation C E
– The process has an standard operation in SAP. The complexity will be the planning
and control of the transfers between plants.
– In case of using business areas some complex ABAP programs should be
developed to support the transfers.
96
Agenda - Import
Overview
Ø Solutions
Ø Bolt – Ons
Summary
97
Import
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Import
payment of the item when it is received for a material bought out of the country.
It also shows the integration points of SAP to bolt-on systems that control the
imports.
98
Import
Customers Custom Expenses Invoice Verification
Posting Fiscal
Nota Fiscal Writer Receiving G/L Books
Posting Accounts - The Custom Expenses declared by the
-The Nota Fiscal issued by G/L
the agent to support
Payable agent to “nationalize” the imported
material transfer from the harbor to the plant materials are received with a Nota Fiscal
should be received manually at the Nota Fiscal
Outline Accounts
in the Invoice Verification
Posting Fiscal transaction as
Payable
Agreement
Writer Transaction G/L cost receipt
a planned Books
(if the cost was
Release
planned in the pricing schema in the
purchase
requisition purchase order) Exchange
rate variation
Create Enter
Purchase Invoice
Down- order Bolt-On
Order verification
payment Confirm.
Purchase
requisition Nota Custom
Bolt-On Bolt-On Bolt-On Fiscal Expenses
Follow-up Goods
Writer Invoice
on receipt
- Nota Fiscal type Receipt verification
delivery
Bolt-On Bolt-On
- Company Code
Foreign Suppliers- Branch -- Pricing Schema
Nota Fiscal Type
Create Receive
Confirm Deliver
Sales Down- -- Tax
- Vendor number Tax code
code Invoice
order Material
Order payment
-- Additional
- Material information data:
(Quantity,
PO Number Material
Unit price, CFOP,
ICMS Tax
Situation, IPI Tax Situation, Material Usage, Material Origin,
Agent Material Category,- Planned
Material costs
Category,
NCM code) NCM code
Nota Fiscal
Receive Deliver Nota
Custom
Material Material Fiscal
Expenses
99
Import
The Solution
• Pricing Schema with import pricing (Import Tax, freights, …).
• SAPscript for Purchase Order Printing;
• SAPscript for Incoming Nota Fiscal form (Nota Fiscal de Entrada).
– Bolt-Ons
• Bergen, SIGA-EIC (Easy Management) [Import Control];
• MASTERSAF, ASPEN_SATI, SYNCRO [Fiscal Books].
– Manual Workaround
• Nota Fiscal Writer to receive the materials in stock;
• Distribution of custom expenses.
Implementation C E
– It’s a complex solution because requires the configuration of an import pricing
schema, manual Nota Fiscal Writer for the goods receipt and the integration with
the bolt-on system.
100
Agenda - Subcontracting
Overview
Ø Solutions
Ø Bolt – Ons
Summary
101
Subcontracting
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Subcontract
payment of the item when it is received for a material that was processed
outside the plant using components sent by the plant.
In this process, the company sends components to the vendor which processes
it and send back to the company the processed material.
102
At goods receipt the components used in the
ubcontracting process are consumed to
produce” the material that was subcontracted
A specific Nota Fiscal is required to support this
Subcontracting
operation and can be sent by the vendor in 2
Customers Issuing of Components

-separated from the Nota Fiscal to bill the Nota Fiscal Receiving
service (special transaction(Remessa
to receivepara
it) Beneficiamento)
- At Invoice Verification, inform
- - AtFiscal
together with the Nota goodstoissue the components used in
bill the Nota Fiscal Number, Issuing
service (received at invoice verification) process are sent to
the subcontracting
date, receiving date, Posting
total Accounts Fiscal
vendor G/L Payable Books
amount, Nota Fiscal Type and
Posting system
Fiscalwill include the line items
G/L for Books
the symbolic return of the
components used by the vendor
Outline Posting Fiscal

Agreement G/L Books
Request Release Enter Goods Follow-up

Purchase Evaluate Purchase Goods Invoice
for purchase order Issue of on
requisition quotations order receipt verification
quotation requisition Confirm. Components delivery
Bolt-On Bolt-On Bolt-On

- Special Movement
- Pricing Schema Type
- Pricing Schema
- Tax code
- Tax code - Nota Fiscal Type
- Amount of each component
- Additional data: Material
Suppliers being sentMaterial
Usage, to subcontracting - Tax code
Origin,
Create Usage, Nota Fiscal
Material Origin,
Material Category, Confirm
NCM code Deliver Nota
Quotation - PO Number Sales to receive - PO Number
Order
Material
order Category,
Components
NCM code material Fiscal
103
Subcontracting
The Solution
• Special Nota Fiscal type to support Subcontracting Nota Fiscal;
• Special movement type to support Subcontracting components issue and Subcontracting components
return (symbolic);
• Nota Fiscal Association to Movement types for Subcontracting;
• Account association to subcontracting movements.
• SAPscript for Purchase Order Printing;
• Adjustments to SAPscript for Outgoing Nota Fiscal form (Remessa para Beneficiamento).
– Bolt-Ons
• MASTERSAF, Aspen-Sati, SYNCRO.
• Price of each component to be sent to subcontracting should be informed manually.
Implementation C E
– The complexity of this solution is high due to:
• control the components sent to subcontracting and do the manual movements to adjust stock in case of
material loss;
• look for the price of each component to be sent to subcontracting and calculate the amount of the
material to be sent to inform in the goods issue transaction to generate the Nota Fiscal;
• match the values of the components sent to subcontracting in the Symbolic Nota Fiscal of Return of the
Components used in the subcontracting;
• process definition difference between subcontracting (components <> processed material) and
industrialization (components = processed material).
104
Agenda - Consignment
Overview
Ø Solutions
Ø Bolt – Ons
Summary
105
Consignment
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Consignment
payment of the item when it is received for a material that was received in the
plant used a consignment process. In this process, the material is sent by the
vendor without payment and at a certain period (for example, the end of the
month) it is verified the usage of this material and the vendor invoices the
company the quantity used. Replenishments of this stock are performed during
the month to avoid lack of material in stock.
106
Consignment
Customers
Goods Receiving of Materials in Nota Fiscal Receiving
Posting Accounts Fiscal
Consignment (Remessa em Consignação) G/L Payable Books
- At Invoice Verification, inform
- At goods receipt the materials in Nota Fiscal Number, Issuing
consignment are received in SAP in a date, receiving date, total
special stock (or accounting control) and a amount, Nota Fiscal Type and
Nota Fiscal of Remessa em Consignação the reference
Posting Fiscalto the Nota Fiscal
G/L Books
received in consignment
is generated in SAP (that has all the
information of the Nota Fiscal sent by the Posting Fiscal
vendor) G/L Books
Outline
Agreement
Request Release Enter Follow-up

Purchase Evaluate Purchase Goods Invoice Goods
for purchase order on next
requisition quotations order receipt verification receipt
quotation requisition Confirm. deliveries
Bolt-On Bolt-On Bolt-On

- Pricing Schema - Pricing Schema
- Special Movement Type
- Tax code - Tax code
- Fiscal Texts for ICMS and IPI - Nota Fiscal Type
Suppliers - Tax Code
Usage, Material Origin, - Tax code
Create Deliver Deliver
Material Category,
- PO Number NCM
Material
Confirm code
Category, NCM code
- PO Number Nota
Quotation Sales Material/ Material
order Fiscal
Order Nota Fiscal (replenishment)
107
Consignment
The Solution
• Special Nota Fiscal type to support Consignment Nota Fiscal;
• Special movement type to support Consignment receipt;
• Nota Fiscal Association to Movement type for Consignment receipt;
• Account association to consignment movement;
• Special Tax Code configuration for Consignment process.
• SAPscript for Purchase Order Printing.
– Bolt-Ons
• MASTERSAF, ASPEN_SATI , SYNCRO.
• Use of SAP standard reports to gather information about consignment stock in hand, materials received in
consignment and usage of materials.
Implementation C E
– The process has an standard operation in SAP. The complexity will be the control
of stock in consignment because it’s required to use some SAP standard reports to
control these stocks.
108
Agenda - Vendor Returns
Overview
Ø Solutions
Ø Bolt – Ons
Summary
109
Vendor Returns
Define &
Data
Inquiry & Execute

Quotation Work
Scenario : Vendor Returns

when a material received is rejected by any reason and it is necessary to return
the goods to the vendor.
110
Vendor Returns
Customers Return to Vendor Nota Fiscal
-Create a Credit Memo to the
vendor informing Purchase
Order Number, total amount
being returned, materials being
Reverse returned, amounts per material
Posting Fiscal Posting
Accounts being returned, Nota Fiscal Type,
G/L Books G/L
Payable Fiscal Texts for ICMS and IPI
Return Nota Goods Reopens

Reject Fiscal issue of Purchase
Material (Credit returned Order
Memo) materials balance
Bolt-On
Suppliers
Nota Receive
Fiscal Returned
receipt material
111
Vendor Returns
The Solution
• Special Nota Fiscal type to support Return to Vendor Nota Fiscal;
• Special movement type to support Return to Vendor issue.
• Adjustments to SAPscript for Outgoing Nota Fiscal form (Vendor Return).
– Bolt-Ons
• MASTERSAF, ASPEN-SATI , SYNCRO.
Implementation C E
– The process has an standard operation in SAP.
112
Purchase to Pay

– Utilities Nota Fiscal (Energy, Phone, Water);
– Future Delivery on purchasing;
– Third-Party;
– Complementar Nota Fiscal;
– Free of Charge (Donations, Samples);
– Return of Repairs;
– Test;
– Returnable Packaging;
– Freights;
– Inventory Write-offs;
– Purchase of Services.
113
Reminder of Key Points - Logistics
MASTER DATA:
• Material, vendors and customer master data should have the localized fields filled correctly in order to
allow localization operation and minimize the fiscal problems;
CONFIGURATIONS:
• Different pricing schemas for several scenarios in Sales and Purchasing (complex configurations);
• New SD documents should be created using specific doc. types for Brazil;
• Different Nota Fiscal types to support business processes;
• New movement types to support business processes;
• Different tax codes should be created to support business process;
• Upload or input exceptions related to taxes calculation (ICMS and IPI rates - exception by material,
ICMS and IPI Fiscal Texts, withholding taxes - IRRF, INSS, ISS);
• Extra configuration required in case of using bolt-on systems.
DEVELOPMENTS:
• SAP Script development for the main documents in Logistics (purchase order, sales order and picking
list);
• SAP Script development for the Nota Fiscal and high effort to test all the business variants and validate
the Nota Fiscal printing (Outgoing and Incoming);
• Extra ABAP developments in case of using interfaces of SAP to other systems.
114
Reminder of Key Points - Logistics
TESTING:
• High effort to map and consider all business and fiscal variants that must be used during the test
of the scenarios. The validation process should involve the key-users and also the Fiscal Area.
FISCAL KNOWLEDGE:
• BBRAUN Fiscal Area participation during the project is essential in order to transfer their fiscal
knowledge, provide information during configuration, validate the tests and learn how to handle
the SAP system;
• Basic fiscal knowledge of the buyers and the sales team to understand all Brazilian legal fields
and their correct application in SAP documents affected by localization (sales orders, purchase
orders, goods movements, Nota Fiscal).
115
Nota Fiscal

– Invoicing
– Accounting
– Goods movement

– Tax information
116
Taxes

goods movements are:
funds
purpose
117
Material

• Material Origin (domestic / imported)
• Taxes Classification (ICMS, IPI/ISS)
Vendor
• Legal Information (tax code i.e. CNPJ)
Customer
• Legal Information (tax code ie. CNPJ, Insc.Estadual)
• Text code (texts are printed in the Nota Fiscal)
• Tax Classification (Taxable, Zona Franca)
• CFOP Category
118

– Standard Sales
– Export Orders
– 3rd Party Sales
– Consignment
– Samples and Free of Charge
– Customer Returns with BBRAUN Nota Fiscal
119

– Stock Transfers
– Import
– Subcontracting
– Consignment
– Vendor Returns
120
Finance Integration Scenarios
Agenda - Product Costing
Overview
Ø Solutions
Ø Bolt – Ons
Summary
122
Scenario: Product Costing
Accounts Accounts General Fiscal

Inventory Product
Payables Receivables Ledger Books Reporting
Adjustments Costing
Closure Closure Closure Closure
Actual Cost Method is mandatory in Brazil for legal

requirements.
It requires specific configurations and a significant amount of

testing.
SAP developed specific programs that have to be executed at

every period end.
The solution was part of “Localization Brazil” but now, it is part

of SAP standard through the Material Ledger tool.
An additional feature is the inventory control in 3 currencies
123
Description of Scenario – Std Cost
Customer
Production
Order
Finished Product
Cost Center
Production
Expenses Order
AMBEV
CBB
Semi-finished Product
Entidade Legal
Área de Negócio Área de Negócio

ITB
Filial/Planta Filial/Planta
Paulínea ITB
Production Planned Rates (std costing structure)
Spending Variance Order
(c.c. balance)
Price Variance
Raw Material
124
Description of Scenario – Std Cost
Customer
Production
Order
Finished Product
Cost Center
Production
Expenses Order
AMBEV
CBB
Entidade Legal

ITB
Paulínea ITB
Spending Variance Order
(c.c. balance)
P&L
Price Variance
Raw Material
125
Description of Scenario – Actual Cost
Cost Center Customer

Expenses Production
Order
AMBEV
CBB
Entidade Legal
Finished Product
ITB
Paulínea ITB
Spending Variance Production

Order
(c.c. balance)

Order
Price Variance
Raw Material
126

Expenses Production
Order
AMBEV
CBB
Entidade Legal
Finished Product
ITB
Paulínea ITB

Order
(c.c. balance)

Order
Price Variance
Raw Material
127

Expenses Production
Order
AMBEV
CBB
Entidade Legal
Finished Product
ITB
Paulínea ITB

Order
(c.c. balance)
WIP Inventory
Production
Order
Planned Rates (std costing structure)
Price Variance
Raw Material
128
Customer
Production (COGS)
Order
Finished Product
Production
Order
Expenses
AMBEV
CBB
Entidade Legal
Planned
Production
ITB Rates Order
Paulínea ITB
CC. Balance
Price Variance
Raw Material
129
Product Costing
• All goods movements within a period are valuated preliminarily at the

standard price.
• At the same time, all price and exchange rate differences for the
material are collected in the material ledger.
• At the period end, the periodic unit price (actual price) is calculated
based on each material’s actual costs. The periodic unit price is used to
revaluate the inventory at period close.
•Actual costing determines the portion of the variance debited at the next-
highest level using material consumption. With the actual BOM, variances
can be rolled up over multiple production levels to the finished product and
COGS (if sold).
• The revaluation is automatic reversed in next period and it is input back as

"price difference". It will only definitely revaluate the inventory after the next
standard cost calculation, which will probably take a good portion of the
price variance.
130
Product Costing
The Solution
– Material Ledger activation
– Actual Costing functionality activation
• Automatic Postings
• Movement Type Classification
– Special Correction Note Application
– Variance Adjustments Development for WIP inventory
– Abap Reporting (optional)
Implementation C E
– Some difficulty to understand the concept ;
– High effort (resources and time) ;
131
Detail analisys
• Ensure correct costing in materials movement
• Period End Closing
132
Price Control
Standard Raw Material

Package
Semi-Finished Product
Finished Product
All material movements are valuated at standard price and at period end, they are
revaluated at moving average price.
Moving Average
All the remaining materials consumed at cost
center level, not in production orders.
The moving average price is calculated at the moment of the entrance (Logistics
Invoice Verification ). The consunption is valuated by the moving average price at
the moment of each consumption.
133
Example
Date: 01/05 Date: 02/05 Date: 03/05 Date: 04/05
Logistics Invoice Soya oil Complementary Soya oil

Verification of consumption in cost (ex. Freight) consumption in
Soya oil: Production of Of soya oil: Production of
Quant. = 1.000 Kg I / Mono-di: Quant. = 0 Kg Mono-di:
Amount = R$ 1.000 900 KG Amount = R$ 5.000 100 KG
Inventory Movement of Soya Oil
Soya oil Soya oil Soya oil

Soya oil
Init Bal.: 0 Init Bal: 1.000 Kg Init Bal: 100 Kg
Init Bal: 100 Kg
Entrance: 1.000 Kg Sales: 900 Kg Sales: 100 Kg
End Bal: 100 Kg
End Bal: 1.000 Kg End Bal: 100 Kg End Bal: 0 Kg
134
Example
I / Mono-di
Unit Price
Glicerine R$ 1,00
Soya oil
Soya oil Value: R$ 900,00
Quantity: 900 Kg
135
Example
Mono-di
Unit Price
Glicerine R$ 51,00
Soya oil
Soya oil Value: R$ 5.100,00
Quantity: 100 Kg
136
Transfer between plants
SAP R/3
Transfer at standard price
(during month)
Plant A Plant B
137
Transfer between plants
SAP R/3
Transfer at standard price
(during month)
Plant A Plant B
Material ledger – price variance
update (period end)
138
Example of purchase with PRD
139
Example of goods issue to a process order
140
Month End Closing Steps
The shaded steps refers to financial postings .
Calculate
Actual Revaluation
Actual
Activity Split Activity Prices Process Order
Calculate
Calculate Order
STD WIP
Variances Settlement
amount
Single Multi
Material Material Adjust Actual WIP
Level Level
Selection Sequence (GAP)
Costing Costing
Single Multi Post Periodic

COGS
Level Level Unit Price
Revaluation
Costing Costing (inventory reval)
141
The shaded steps refers to financial postings .
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order Solution available
STD WIP
Variances Settlement in November 2002
amount
Single Multi Level Costing

Material Material
Level and calculate plus
Selection Sequence
Costing post Actual WIP
Single Multi Inventory

Post Periodic
Level Level and COGS
Unit Price
Costing Costing Revaluation
142
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
143
KSS2 – Actual Activity Split
The cost center “XXX” produces 2 activities (labour and machine).

The building renting actual expense is posted to the cost center and
then split accross the activies labor and machine.
144
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
145
KSII – Actual Price Calculation
Actual activity rate =

Actual expense posted
against the activity
Actual activity utilization
146
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
147
Cost center cost report - before P.O revaluation
Utilization and
Spending
variance
148
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
149
Cost center cost report - after P.O revaluation
No more
utilization and
Spending
variance
150
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
151
CKM3 – Before Order Settlement
Material: AM0657050AG
152
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
153
CO88 – Order Settlement
154
CKM3 – After order settlement
The variance is posted as a price difference in the ML. This means

it will be posted back to inventory when running the actual price
revaluation 155
CKMLCP – Cockpit Actual Costing
156
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
157
CKMLCP – Selection of materials
158
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
159
CKMLCP – Determine sequence
160
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
161
CKMLCP – Single-level price determination
162
Calculate
Actual Revaluation
Actual
Calculate
Calculate Order
STD WIP
amount
Single Multi
Level Level
Costing Costing

COGS
Revaluation
163
CKMLCP – Multi-level price determination
164
CKMLCP - Check all calculations (single and multi-level)
165
CKM3 after multi-level price determination
The finished
products receive
the price
difference from the
lower levels
according to the
proportionality of
the lower level
consumption
Double
Click
166
Double
Click
167
640,000
X 0.028 = 0.18
100,017,373
168
Reminder of Key Points
Ø Logistics Invoice Verification required

Ø Impacts every logistic scenario
Ø Price Control issues
– Raw material price control : Moving Average or Standard
Ø WIP Inventory variance allocation when MTO
169
Financial Accounting Scenarios
Finance Specific Scenarios

– Accounts Payable and Payments
– Accounts Receivable Collections
– Legal Books and Files Preparation
171
Agenda – Acc.Payable and Payments
Overview
Ø Solutions
Ø Bolt – Ons
Summary
172
Vendor Master Records
• Vendor Master Records:
– Vendor Master maintenance follows standard procedures. However, for

Brazil, you must maintain the following fields:
• Partner bank type in order to enter the vendor´s bank into the open
item.
• Bank address
• When paying in general individually, use the indicator individual
payment.
• For vendor that send boletos, the maintenance of payment terms
with payment block.
173
Boleto Forms
174
Bank Transfer
• Bank Transfer:
– The following Brazilian-specific print program must be entered in the
country dependent customizing of all payment methods that are used to
create bank transfers. As part of localization, payment methods U and N
are already customizing this way:
• RFFOBR_U
This program prints a payment list (Bordero) or a DME (Data
Medium exchange/Arquivo Remessa) file containing all payment
information.
• The following Brazilian-specific payment transfer must be

customized per company code.
– J_1B_BORDERO: Payment list
– J_1B_DME: accompanying sheet
175
Bank File Formats
• Bank File Formats:

– Brazilian localization supports the following bank file formats for DME:
• SISPAG Itaú
• PFEB Bradesco
• FEBRABAN/CNAB
176
Bank File Formats
Payment Forms
The Brazilian localization supports all Brazilian-specific payment forms summarized
in the table below.
For each of the both payment forms 02 and 10, a respective payment method has to be defined
country dependent as a copy of the released payment method U (bank transfer) with a
corresponding entry (02 or 10, respectively) in the field key in code line.
For payments without boleto, that is, for payment forms 01, 02, 03 and 10, any entry in the field Key in
code line overwrites the automatic selection.
However, if the field barcode number is entered into the open item, the resulting Payment form is 30
or 31 pending on the above conditions and the field key in code line is of no relevance.
House bank and partner bank are identified by the first three digits of the entered barcode number.
177
SPB - Brazilian Payment System
• SPB
– The law that controls the new Brazilian Payment System is Law 10.214,
March 27th of 2001.
– Payment systems is a set of rules, procedures, instruments and operating
systems integrated used to transfer funds from payer to receiver.
– The objective is to reduce the credit risk and liquidity. The payment
system will make transfers and payments between economic agencies
safer and efficient, with benefits that will be reflected in the companies and
people and in the perception outside of Brazil decreasing the risk for
Brazil.
– Nowadays customers transfer their resources using checks or DOCs. By
this way, the money is just available after the traditional clearing that lasts
at least one day.
– Starting on April, 22nd of 2002, the new Brazilian Payment System allows
the customers to transfer the money, in the same day, for payments and
other purposes in a safer way and it will not take so long as the tradition
clearing system.
178
• TED
– The new SPB offers a new transfer option from one bank to the other
named as Transferência Eletrônica Disponível – TED. Through TED the
amount will be credited in the bank account and it will be available as
soon as the bank receives the transfer message.
Transfer options:
• STR – huge amount interbanks
• Clearing / Payments – big / medium amount via electronic payments
• Compe – checks, DOCs below R$5.000,00 in retail
179
• Definitions :
– STR – Sistema de Transferência de Reservas
The Transfer of Funds System manages the funds transfer between financial
institutions (STR) in real time, managed by the Central Bank of Brazil. The system
will check the bank fund account balance and rejects the debits greater than the
bank account balance. The customer can transfer funds from his own bank account
to other bank using STR.
– COMPE - Compensação de cheques e outros Papéis

This system is responsible for check clearing and other papers, it is managed by
Banco do Brasil. The objective is to remove from Compe the critical payments or
high value payments, as well as other payments that can be done by STR.
– CIP – Câmara Interbancária de Pagamentos

The payment clearing is managed by the Banks for values higher than R$5.000,00
and the liquidation is done in the end of the day. The objective of Clearing House is
to liquidate payments in a faster way, secure and cheaper than traditional liquidation
system.
180
Accounts Payable and Payments
Define &
Data
Inquiry & Execute

Quotation Work
Finance
Scenario : Accounts Payable and Payments
This scenario describes the activities flow regarding documents registering in

Accounts Payable through the utilization of bar code reader device and also
payments execution with files generation and exchange with banks.
181
-Automatic document posting

Customer without typing
-Automatic payment
Purchase/
confirmation of
Goods
Mov.Op. payments
Pass Generate
Register Carry out Integrate
”boleto” file to
Payable payment confirmation
onto bar banks w/
in SAP routine file
code reader posting
Generate
payment
Bank / Interchange Payments confirmation
-Automatic file generation file
Generate
Supplier
”boleto”
182
-Acquire appropriate bar code device -Each bank has its own file
layout (Itaú, Bradesco and
Customer -Configuration and extensive testing Interchange)
Purchase/
-Configuration and extensive
Goods
Mov. Op. testing involving bank’s folks
and testing environment
-Development is required
Pass Generate
Register Carry out Integrate
”boleto” file to
Payable payment confirmation
onto bar banks w/
in SAP routine file
code reader posting
Generate
-Each bank has its own payment
Bank / Interchange Payments
file layout confirmation
file
-Configuration and
extensive testing
involving bank’s folks at
its system environment
Generate for testing is needed
Supplier
”boleto”
183
Accounts Payable and Payment
The Solution:
– SAP configuration at payment program transactions
– Special ABAP development regarding files generation to be
exchanged with bank
The objective of this solution is address automatic payment

through bank exchange files
C E
The complexity of this solution addresses:
– extensive configuration required by payment program
– extensive testing with each one of the banks involved.
– contact banks folks to ask them to create system testing
environment to start testing files exchange ASAP
184
• Bar code reader device utilization

• Complex payment program configuration
• ABAP development is needed in order to generate files
• Extensive testing with banks involved since the
beginning of the project.
• High level of interaction with banks is needed
• Electronic/Manual Extracts
185
Agenda – Acc. Receivable Collections
Overview
Ø Overview Business Process Flow
Main Localistion Requirements
Ø Solutions
Ø Bolt – Ons
Summary
186
Accounts Receivable Collections
• Duplicata:
– An essential element of accounts receivable in Brazil is the concept of

duplicata. For each debit liability the vendor collects the expected money
with the active help of its house banks. For this purpose, information on
the liability must be passed to the respective bank. This information is
called duplicata.
– The localization Brazil supports the automatic generation and processing

of duplicatas in local currency.
– The duplicata information is based on the related open items and is

extended through additional information such as the instruction key. The
information returned by the bank can be electronically processed (Arquivo
retorno).
187
• Customer Master Data:
– Customer master maintenance follows standard procedures. However, for

Brazil, you must maintain the following fields:
• Interest calculation indicator

This indicator is used to charge interest payment for overdue items.
• Individual payment
This must be entered because a duplicata is created for each open item.
188
• Bill of Exchange Payment Request:
– Duplicata creation is represented by a standard R/3 payment method,

namely the creation of a bill of exchange payment request. As for any other
R/3 payment method, specifications have to be customized country and
company code dependent.
– When running the payment program for the duplicata creation, one bill of
exchange payment request is created for each open item. This BOE is only
a statistical document in the context of the Brazilian localization. It has two
main function:
• It labels the related item as being processed, meaning it indicates that

the duplicata has been created. Thus, no second duplicata is created
for this specific item when running the payment program again.
• It carries the information on the selected bank.
189
• Print Programs and Forms for Payment Transfer Media
– The following Brazilian-specific print program must be entered in the

country dependent customizing of all payment methods that are used to
create duplicatas. As part of localization, payment methods A is already
customizing this way:
• RFFOBR_A
This program prints a duplicata list or a DME (Data Medium
exchange/Arquivo Remessa) file containing all duplicata information.
• The following Brazilian-specific payment transfer media must be

customized per company code.
– J_1B_DUPLICATA: Duplicata list
190
• Data Medium Exchange (Arquivo Remessa)

– Bank File Format
– Cobrança Itaú
– Cobrança Bradesco
– Febraban/Cnab
• Instruction Code
– The instruction code specifies further processing of the duplicata. Basic
instruction codes are part of the localization Brazil. However, if required,
additional instruction codes may be added though customizing.
• Instruction Code 1 = Codigo de ocorrencia

• Instruction Code 2/3 = Instruções de cobrança
– The instruction code can be entered into each individual item, when creating
a duplicata the entered instruction code is transported into the duplicata. If
there is no instruction code entry in the open item, instruction code defaults
(e.g. REMESSA) are set either through the customer master or the respective
house bank.
191
• SAP Query
– A report on issued duplicatas in the form of a SAP Query is part of the

localization for Brazil. This specific SAP Query is called DU. It is linked to the
functional area / SAPQUERY/J1B1 and the user group /SAPQUERY/XX.
– This report covers the legal requirements for the ´Registro de Duplicatas a
receber´ such as reporting due date, duplicata issue date, gross amount,
customer name/street and amount. The list is sorted by due date. You can
select via customer, company code, due date, issue date and document
number.
192
Define &
Data
Inquiry & Execute

Quotation Work
Finance
Scenario : Accounts Receivable Collections
This scenario describes the activities flow regarding the execution of accounts
receivable collections with files generation and exchange with banks (Itaú and
Bradesco) and Interchange.
193
Proceed -Automatic payment

Receive
Customer ”boleto” confirmation and posting in
”boleto”
payment accounting
Sales
Operations
Generate Integrate
Register Carry out
Print file to collections file
Receivables collection
”boleto” banks w/o w/ payment
in SAP routine
posting postings
Generate
-Automatic file collections Collections
Bank / Interchange Collections file w/ client’s
generation Updated
payments
Supplier
194
-Sapscript
development form Proceed
Receive
Customer ”boleto”
”boleto”
payment
Sales
Operations
Generate Integrate
Register Carry out
Print file to collections file
Receivables collection
”boleto” banks w/o w/ payment
in SAP routine
posting postings
-Each bank has its own file

layout
Generate
-Configuration and extensive collections Collections
Bank / Interchange Collections file w/ client’s
testing involving bank’s folks Updated
payments
at its system environment for
testing is needed
-Each bank has its own file layout
-Development is required Configuration and extensive testing
involving bank’s folks and testing
Supplier environment
195
Account Receivable - Specific Scenarios
Bank issues the BOLETO
Accounts posting
Accounts
Receivable
Bordero
Payment program
Nota Fiscal
Duplicatas file
Customer Boleto
Bank
196
Company issues the BOLETO
Accounts posting
Accounts
Receivable
Bordero
Payment program
Nota Fiscal
Duplicatas file
Boleto
Customer Bank
197
Return file
Import R/3
(Treasury)
Bank Return file
Automatic posting
Posting
error log
198
The Solution:
– SAP configuration at payment program transactions for collections
(as the same as payments)
– Special ABAP development regarding files generation that will
exchanged with bank and “boleto” form
The objective of this solution is address automatic
collection through bank exchange files
C E
The complexity of this solution addresses basically to:
– extensive configuration required by payment program
– extensive testing with each one of the banks involved. It’s important to
contact banks folks since the beginning of the project in order to ask them
to create system testing environment to start testing files exchange ASAP
199
• Complex payment program configuration for collections
• ABAP development is needed in order to generate files

and “boleto” form
• Extensive testing with banks folks involved since the

beginning of the project.
• High level of interaction with banks is needed
• Electronic/Manual Extracts
200
Agenda – Legal Books and Files Prep
Overview
Ø Overview Business Process Flow
Main Localistion Requirements
Ø Solutions
Ø Bolt – Ons
Summary
201
Legal Books and Files Preparation
Define &
Data
Inquiry & Execute

Quotation Work
Finance
Scenario : Legal Books and Files Preparation
This scenario describes the activities necessaries to address Brazilian Legal and
Tax requirements through legal books and files preparation.
It’s important to mention that most of sales, purchases and goods movement
have tax impact in the books and files and based on these data repositories,
taxes are calculated to be paid.
There are three taxes levels: country, state and city levels.
202
- Configuration of all fiscal variations

Receive
Customer and book
-Extensive testing of all fiscal variations
“Nota Fiscal”
of sales and purchases operations
Register Generate Accounting

Sales Send ”Nota Fiscal” Legal books and
Operations ”Nota Fiscal” at tax tables Books reports
within SAP
Bolt-on
Purchase / Generate
Calculate Prepare Accounts
Goods Mov. Legal
tax to ”Guias de Payable
Operations Files
be paid Recolhim.”
-Bolt-on
implementation in
parallel with SAP
Display
Authorities - ABAP development of Send books as
files as required
Interface between SAP required
and Bolt-on (e.g. -Manual workaround for
Mastersaf, Syncro, Fiscal and Accounting
Aspen-Sati) issues not treated even by
Bolt-on
-Legalfiles and Books
Supplier Send
”Nota Fiscal”
generation through
Bolt-on
203
The Solution: C E
– Tax configuration with high level of complexity:
• IPI
– for purchases operations IPI is calculated based on:
» NCM code identified at material master
» Tax code defined at purchase order
» It’s booked in accounting and Legal Books at invoice verification posting
» Tax calculated only at manufactured goods
» Tax accounts by plant
– for sales operations IPI is calculated based on:
» NCM code identified at material master
» Tax code defined at sales order
» It’s booked in accounting and Legal Books at billing document posting
» Necessity of releasing billing documents which accounting documents weren’t booked
» Tax calculated only at manufactured goods
• ICMS
– for purchases ICMS is calculated based on:
» Jurisdiction Code defined at vendor master data (to define rate)
» Jurisdiction Code define at plant address data (to define rate)
» Tax code defined at purchase order
» It’s booked in accounting and Legal Books at invoice verification posting
» Tax calculated based on goods movement and services (e.g. freight)
204
The Solution:
– for sales ICMS is calculated based on:
» Jurisdiction Code defined at customer master data (to define rate)
» Jurisdiction Code define at plant address data (to define rate)
» tax code defined at purchase order
» Tax calculated based on goods movement and services (e.g. freight)
• Withholding Tax (IRRF and ISS on services purchases)
– WT field in Vendor Master identify if WT should be calculated or not
– WT can be booked in two different moments:
» during invoice verification / FI invoice posting or
» Invoice payment / Down Payment
– Services are classified by fiscal codes (e.g. code 1708, 3205). Standard Sap report by code is
developed to reach this necessity.
• ISS
– for services sales ISS is calculated based on:
» ISS tax code defined at sales order
205
The Solution:
– Third-party software bolt-on for legal books below:
• Mod-1 Registro de Entradas (List of incoming documents)
• Mod-2 Registro de Saídas (List of outgoing documents)
• Mod-3 Controle de produção (Overview of production and inventory)
• Mod-7 Registro de Inventário (Physical of inventory overview)
• Mod-8 Registro de Apuração do IPI (Directory for calculating IPI tax)
• Mod-9 Registro de Apuração do ICMS (Directory for calculating ICMS tax)
• Listagem Operações Interestaduais (List of interestate goods movements)
• Livro Diário (with historical description)
• Livro Razão (with historical description)
• Razão Auxiliar de Fornecedores (Statement for Vendor accounts)
• Razão Auxiliar de Clientes (Statement for Customers accounts)
• Registro de Duplicatas a Receber (List of open items to receive)
• GIA Guia de Informação e Apuração (Tax payment form)
206
The Solution:
– Third-party software bolt-on for legal files below:
• Arquivo Magnético Convênio ICMS no. 57/95 (file as per law ICMS)
• DIRF
• IN 86 (Master data, documents files and tables)
– Manual workaround
• LALUR (Taxable Income Control Register)
• DOAR (Source and Funds)
• Mutações do Patrimonio Liquido (Equity Moviment)
• Lucros ou Prejuízos Acumulados (Retained Earnings Demonstration)
• PIS (Employees Profit Participation Program) and COFINS (Tax for
Social Security Financing) calculation
• IR (Income Tax): Provision, normal calculation, and calculation with
indirect benefits
207
The Solution: C E
– Assets
• It’s important to mention that assets control in Brazil is treated
through SAP standard functionality however there is an specific topic
called CIAP. It addresses to the ICMS recovering of assets purchased
for utilization at productive process. It has legal requirements
represented by specific legal book and rules for it’s calculation. The
main activities necessaries to implement CIAP control are:
– extensive configuration
– ABAP development for reports
– patches aplication into system environment
208
The complexity of this solution addresses basically to:

– extensive configuration and testing of all legal requirements and fiscal
variants at SAP
– definition of procedures for legal issues treatment after SAP
implementation
– Definition of procedures about how to handle manual workarounds
– Develop ABAP program for interface between SAP and Legal Books
bolt-on
– Patches application for CIAP control for assets besides configuration
and ABAP development
209
• Legal Books bolt-on implementation doesn’t avoid extensive

configuration and testing at SAP, because SAP is bolt-on
information source
• Extensive configuration and testing of all legal variants in SAP
• Bolt-on implementation in parallel with SAP and ABAP development

to integrate both SAP and bolt-on
• Necessity to define procedures to handle manual workarounds for

cases not treated by SAP or bolt-on
• Patches application for CIAP
210
Questions
211

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Knowledge Sharing Workshop

• Long period of high inflation

• High historic level of tax evasion

What are their impacts on a SAP R/3

.. Mainly the requirements are concentrated on tax calculation and

.. There are specific SAP hierarchy elements and some additional

Based on several SAP R/3 roll out projects in Brazil,

• The “Filial” (branch)

“Filial” • Legally represents each physical

• Important data is maintained at this

• Nota Fiscal and Legal books are

JABIL Circuit Brasil

• Jabil Circuit could be structured as only one Company Code.

• Reports could be taken at Company Code level, for Legal and

• Most important fiscal/tax document for

• Contains taxes and business requirements

• Sequenced numbers by physical site (branch)

• Audited by local Fiscal Authorities

• Source of key integration data

• Nota Fiscal Types

• There are many taxes in Brazil

• Main ones affecting almost all

• IPI is a federal tax and depends on:

• ICMS is a state tax and depends on:

• PIS and COFINS:

• IRRF is a tax related to natural person (IRPF) and legal entities

• INSS is a tax related to natural person and depends on:

• ISS is a city tax and depends on:

• Tax related transactions should be stored in Fiscal Books (“livros

• There are rules on how to register them

• Requirements for printing and archiving are needed

• Different sorts of industry (or even company) operations require

• Real Cost Method is mandatory

• Requires a significant amount of configuration and testing (Material

• SAP have developed specific programs to be executed every time

• “Localization Brazil” now is part of SAP standard.

• NCM Code – Brazilian naming of goods

• CFOP Category – the type of operation

• Material Destination – Resale, Consumption & Asset

• Produced in-house or not

• Natural person or Legal entity indicator

• Situação Tributária IPI and ICMS

• Withholding category indicator

• Natural person or Legal entity indicator

Outgoing or ICMS item

Tax related part of

Operation CFOP Inscrição

Outgoing or ICMS and

Tax related part of

ICMS and IPI

• For discussion SD:

• Other Local Legal Scenarios

• Other Local Legal Scenarios

• Other Local Legal Scenarios

Inquiry & Execute

Inquiry & Execute

Scenario : <Scenario Name>

This scenario describes …

etc. Loa Print

Posting Account Fiscal

• Most important fiscal/tax document for

• Contains taxes and business requirements

• Sequenced numbers by physical site (branch)