Brazil Localization
Brazil Localization
Brazil Localization
<Topic>
August, 2005
1
Introduction
Procwork
Introducing PW team
PP Consultant : Leonardo Abreu MM Purchasing Consultant : Marcelo Stieger & Rafa
el Costa IM/WM Consultant : Reanato Penna FI / CO Consultant : Alexandre Matoso
SD Consultant : Marcelo Stieger & Marcell Mascarenhas PM : Marcelo Stieger
2
Localization Principles
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 l
evel of adherence of international templates (developed without Brazilian requirem
ents) 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 region
s and/or for specific requirements of the business - some aspects of Payroll, Ex
ternal 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)
tax reporting Nota Fiscal reporting
Company
Filial
Plant
Plant
Legally represents each physical address of the company in which there will take
place any tax related operations Important data is maintained at this level
Storage Location
Nota Fiscal and Legal books are issued at this level
9
Brazilian Localization
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 p
hysical site (branch) Audited by local Fiscal Authorities Source of key integrat
ion data
Accounting information Tax information
12
Brazilian Localization
Nota Fiscal Nota Fiscal Types
Nota Fiscal Fatura (invoice) Nota Fiscal Complementar (complement) Nota F
e Correo (correction) Nota Fiscal de Devoluo (returns) Nota Fiscal de Transferncia (t
ransfers) Nota Fiscal de Simples Remessa (issue goods without billing) Nota Fisc
al de Entrada (incoming - e.g. Importation) Nota Fiscal de Conhecimento de Trans
porte (freights) Nota Fiscal de Energia Eltrica (energy) Nota Fiscal de Telefonia
(telecomunications)
SAP Configuration
Nota fiscal has internal and external number ranges Depends on Sales document ty
pe Depends on Movement type
13
Brazilian Localization
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 ta
x INSS - Withholding tax social purpose
14
Brazilian Localization
Taxes IPI is a federal tax and depends on:
Control code (in Brazil is used as NCM code) Material exception
Brazilian Localization
Taxes IRRF is a tax related to natural person (IRPF) and legal entities (IRPJ) a
nd depends on:
Vendor for incoming
Brazilian Localization
Tax Reports Tax related transactions should be stored in Fiscal Books (livros fis
cais) There are rules on how to register them Requirements for printing and archi
ving are needed Different sorts of industry (or even company) operations require
reports adaptation
17
Brazilian Localization
Product Costing Real Cost Method is mandatory Requires a significant amount of c
onfiguration and testing (Material Ledger) SAP have developed specific programs
to be executed every time a period is closed Localization Brazil now is part of SA
P standard.
18
Master Data
CFOP Category
25
Bolt-ons
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. Cal
culate the amounts to be paid, issue the legal documents (gias) and generate elect
ronic files, when applied
Notes :
SAP provides some of the Legal Books based on So Paulo state only It is necessar
to issue the other books / same books for other states Most clients decide to u
se specialized bolt-on systems to support these legal requirements Even with the
se bolt-on systems its absolutely necessary to do all the configurations in the S
AP 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 Realizat
ion phase
Resources :
Business input tax resources Designers tax resources Specialists bolt-on special
ists
Options :
Mastersaf Aspen-Sati Syncro ...
33
Bolt-ons
Export Objectives :
1. 2. 3. 4. 5. 6. 7. Export Data Bases Control Export Orders and Shipments Proce
sses Follow-Up Issue Documents Export Exchange Control Issue Reports Generate da
ily 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 inclu
ded 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 Special
ists bolt-on specialists
Options :
Bergen Aspen CE (Procwork) Bysoft Average ...
36
Presentation Approach
Agenda <Scenario>
Overview Description of Scenario Overview Business Process Flow Main Localizatio
n Requirements Solutions SAP configuration Special Development Bolt Ons Manual w
orkaround Summary Reminder of Key Points
44
<Scenario Description>
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : <Scenario Name> This scenario describes
45
Standard Sales
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute 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 co
nvert it to a sales order until the delivery the goods to the customer, the bill
ing and the Sales Nota Fiscal generation.
54
Standard Sales
Customer
Request for quotation Quotation Approved, Purchase Order
Customer Region (state) Tax Code for Brazil Pricing Procedure for BR Domestic Sa
les Taxes calculation (ICMS, IPI, PIS,COFINS) Fiscal Texts for ICMS & IPI
Plan Shipmen ts & Book Transpor t Create Delivery Print Shipping Doc. Receives G
oods & documents
Nota Fiscal for Domestic Sales
Quotation (optional)
Create Sales order ref. quot. (ORB)
To Production & Purchasing
Transfer Goods from production to Warehouse
Confirm qty Sales order
Post Goods Issue
Create Billing Doc. (F2B)
Generate Nota Fiscal (N1) Bolt-on
Pricing Procedure for BR Domestic Sales Taxes calculation (ICMS, IPI, PIS,COFINS
) Suppliers
Confirm Purchase order Posting G/L
Posting G/L
Account Receivable
Fiscal Books
Account Keys for BR Dom. Sales Fiscal Texts for ICMS & IPI
55
Standard Sales
The Solution
SAP configuration
Configuration specific for Brazil; New Sales order type and item category; New B
illing document; New Incompletion proc.for Brazilian mandatory fields; New Prici
ng procedure and Account keys assigned to the new condition types; Legal Text fo
r ICMS and IPI; SAP Script development for Nota Fiscal
MASTERSAF, Aspen-Sati, SYNCRO [Fiscal Books]
Special development
Bolt-on
Implementation
C
E
A standard sales order process is not difficult to be implemented. There are som
e 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 * (without taxes) __________________
____________ + Price with ICMS (ICMI) -/+ Discount/Surcharge * (including taxes)
______________________________ Tax Base + IPI + ICMS + ISS _ _ Final Sales Pric
e (NF) _______________________________ Base of PIS/COFINS PIS (statistic) COFINS
(statistic)
*Optional conditions for pricing -Automatic condition calculated by a formula IPI calculation: NCM code / material -ICMS Region-from/ Region-to -ISS Tax for s
ervices
- PIS and COFINS calculation: Condition records
57
Export Orders
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Export Orders This scenario describes the main flow of activities to
be performed in Brazil from the creation of a export quotation (optional) and co
nvert it to a sales order until the export documentation preparation, the delive
ry to the external agent, the billing and the Export Nota Fiscal generation.
59
Export Orders
Customer
Request for quotation Quotation Approved, Purchase Order
Customer Country Tax Code for Brazil (I0,C0) Pricing Procedure for BR Export Sal
es NO Taxes calculation Fiscal Texts for ICMS & IPI Shipme
nts & Book Transpo rt Plan
Receives Goods & documents
Create Packing List
Create Commercial Invoice
Quotation (optional)
Create Sales order ref. quot.
To Production & Purchasing
Transfer Goods from production to Warehouse
Confirm qty Sales order
Create Delivery
Post Goods Issue Bolt-on Posting G/L
Create Billing Doc.
Generate Nota Fiscal Bolt-on Bolt-on Fiscal Books
Bolt-on
Posting G/L
Account Receivable
Agent
Request for export docum. Confirm Purchase order
Pricing Procedure for BR Export Sales NO Taxes
Confirm calculation export Doc. Nota Fiscal / Invoice for Export
Account Keys for BR Export Fiscal Texts for ICMS & IPI
Add Export Doc. Deliver to customer
Suppliers
60
Export Orders
The Solution
SAP configuration
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; SAP Script development for Nota Fiscal Bergen, Aspen CE [Export and docu
mentation Control]; MASTERSAF, Aspen-Sati, SYNCRO [Legal Books] Extra export doc
umentation, communication with SISCOMEX
Special development
Bolt-on
Manual workaround
Implementation
C
E
Its a complex solution because requires or a large manual documentation for expor
t 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
Consignment Sales
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Consignment Sales This scenario describes the main flow of activities
to be performed in Brazil 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 se
cond Nota Fiscal, it will have the same taxes
67
Consignment Sales
Customer (payer)
Customer request Customer Use Customer Region informs consumed Pricing Procedure
for BR quantity
New Sales order type (KBB)
Receives Accountings only for ICMS with ref. goods Step 1 No account receivable
Nota Fiscal Nota Fiscal just to follow goods
Step
Account receivable and IPI Taxes calculation (ICMS statistic, IPI, PIS,COFINS) T
axes calculation (ICMS statistic, IPI, PIS,COFINS) Fiscal Texts for ICMS & IPI 1
: Fill-up Fiscal Texts for ICMS & IPI
Create Sales order ref. Bill.doc. (KEB)
Plan Taxes calculation (ICMS, IPI Shipme Taxes calculation (ICMS, IPI statistic)
nts & statistic) Book Fiscal texts for ICMS, IPI New Sales order type (KEB) Fis
cal Texts for ICMS &Transpo IPI rt Use Customer Region Confirm To Transfer Goods
Post Pricing procedure for BR Create Create qty Pricing Procedure for BR& Produ
ction fromConsignment production Delivery Goods Sales order Issue Sales order Pu
rchasing Consignment Issue to Warehouse (LFB) Issue (KBB) Consign. Special Stock
Consignment Fill-up
Create Billing Doc. (FCR) Posting G/L
Generate Nota Fiscal Bolt-on Fiscal Books
Create Symbolic Delivery
Post Goods Issue from consig. stock
Create Billing Doc. (FC)
Create Nota Fiscal Bolt-on
Step 2: Issue
Confirm Purchase order
Posting G/L
Posting G/L
Account Receivable
Fiscal Books
Suppliers
68
Consignment Sales
Customer (payer)
Customer request Return customer Nota Fiscal & goods Receives goods Plan Shipme
nts & Specific Sales Order type (KAB) and Book item category Transpo for Brazil
rt Use same Pricing Procedure for BR Confirm Create Post Consignment Fill-up qty
Delivery Goods Sales order (LFB) NF number Issue (Legal Inform Customer Nota Fi
scal just to follow goods
Create Sales order (KBB)
To Production & Purchasing
Transfer Goods from production to Warehouse
Create Generate Billing Nota Its not necessary Doc. Fiscal to issue another NF (F
CR) (N1)
Books) w/o reference in SAP
Step 1: Fill-up
Consign. to a Usually created with reference Special billing Stock
to receive goods. Bolt-on The customer NF Posting Fiscal will G/L support the Bo
oks process
Create Sales order ref. Bill.doc. (KAB) Register customer Nota Fiscal ref: bill.
doc. Confirm Purchase order
Create Delivery (LRB)
Post Goods Receipt from consig. stock
Create Billing Doc. (REB+N4) Bolt-on
Step 3: Pick-up
Specific Register Reason (REB)
Billing document Consign.
Special Stock
Posting G/L
Fiscal Books
Use same Pricing Procedure for BR Consignment Fill-up
Suppliers
69
Consignment Sales
The Solution
SAP configuration
Specifics for Brazil; Sales order type, item category and billing document (one
for each step of the process); New incompletion proc.for Brazilian mandatory fie
lds; New Pricing procedure specific for BR 3rd.party and Account keys assigned t
o new condition types; Legal Text for ICMS and IPI;
SAP Script development for Nota Fiscal MASTERSAF, ASPEN-SATI , SYNCRO [Fiscal Bo
oks]
Special development
Bolt-on
Implementation
C
E
This scenario has a medium effort to be implemented. There are some points of at
tention to consider:
Distinct configurations to support the first and second Nota Fiscal, its 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 f
iscal area
70
Bolt-on
Implementation
C
E
A sample or free of charge process is not difficult to be implemented. There are
some points of attention to consider: Standard pricing procedure for Brazil mus
t be adjusted; Complex SAP Script development for NF; All business variants rele
vant to Brazilian operations must be tested; Knowledge of the BBRAUN fiscal area
to handle correctly the Brazilian requirements in SAP
74
Customer Returns
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Customer Returns This scenario describes the main flow of activities
to be performed in Brazil when a customer returns the goods for commercial or qu
ality reasons. The difference in Brazil exists only because of the Nota Fiscal t
hat will be used during the process. There are two different process: one with o
wn Nota fiscal that Jabil has to create another incoming nota fiscal and the oth
er with Customers nota fiscal where Jabil has only to inform in incoming Legal Bo
ok.
76
Customer Returns
The Solution
SAP configuration
Configuration specific for Brazil; New Sales order type and item category (cons
der 2 scenarios); Billing document; New incompletion proc.for Brazilian mandator
y fields; Automatic Legal Text for ICMS and IPI and manual texts (if necessary)
SAP Script development for incoming Nota Fiscal (Scenario: Returns w/ BBRAUN NF)
MASTERSAF, Aspen-Sati, SYNCRO [Fiscal Books]
Special development Bolt-on
Implementation
C
E
The returns from the customers process isnt difficult to be implemented. There ar
e 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 use
r in which documents must be used Knowledge of the Jabil fiscal area to understa
nd and fill correctly all the Brazilian legal fields in SAP and how the process
must be handle in SAP
79
Customer to Cash
Other Local Legal Scenarios
Services; Industrialization; Resales; Sales for consumption; Zona Franca (Res
s and Industrialization; Scrapping; Fixed Assets; Credit Memos;
84
Standard Purchasing
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Standard Purchasing This scenario describes the main flow of activiti
es to be performed in Brazil from 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
- At
Nota Fiscal Receiving Invoice Verification, inform Nota Fiscal Number, Issuing d
ate, receiving date, total amount, Nota Fiscal Type
- At Goods Receipt, inform Nota Fiscal Number, Issuing date, receiving date
Posting G/L
Posting G/L
Accounts Payable
Fiscal Books
Outline Agreement
Purchase requisition
Request for quotation
Evaluate quotations
Release purchase requisition
Purchase order
Enter order Confirm.
Follow-up on delivery
Goods receipt
Invoice verification Bolt-On
Pricing Schema Tax code
Pricing Schema
Suppliers
Quotation
Tax code - Nota Fiscal Type - Additional data: Material - Additional data: Mater
ial - Tax code Usage, Material Origin, Usage, Material Origin, Create Confirm De
liver Nota Material Category, Material Category, NCM code - PO Number Sales NCM
code
Order order material
Fiscal
89
Standard Purchasing
The Solution
SAP Configuration Pricing Schema with Brazilian taxes (ICMS, IPI); Tax code conf
iguration. Special Development SAPscript for Purchase Order Printing. Bolt-Ons M
ASTERSAF, ASPEN_SATI, SYNCRO.
Implementation
C
E
A standard purchasing order process configuration isnt difficult to be implemente
d. 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 s
hould be used.
90
Pricing Procedure
Example of basic Pricing Procedure for Brazil: ZRM0000
Price with ICMS IPI + (((Gross Price (Preo Bruto) Consumption ICMS) Industrializa
tion ICMS) IPI) + Net Price (Preo Lquido) IPI ICMS
- Automatic IPI calculation: Standard; By NCM Code; Exception by material. - Aut
omatic ICMS calculation: Standard; By State; Exception by material.
+
IVA CODE
91
Stock Transfer
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Stock Transfer This scenario describes the main flow of activities to
be performed in Brazil while transferring a material from one plant to another.
93
Stock Transfer
The Solution
SAP Configuration
Nota Fiscal Association to special movement types; Associate Issuing Plant as a
customer; Create Receiving Plant as a vendor; Tax Code configuration.
Special Development
Adjustments to SAPscript for Outgoing Nota Fiscal form (Nota Fiscal de Transfernc
ia).
Bolt-Ons
MASTERSAF, ASPEN_SATI, SYNCRO.
Implementation
C
E
The process has an standard operation in SAP. The complexity will be the plannin
g and control of the transfers between plants. In case of using business areas s
ome complex ABAP programs should be developed to support the transfers.
96
Agenda - Import
Overview Description of Scenario Overview Business Process Flow Main Localizatio
n Requirements Solutions SAP configuration Special Development Bolt Ons Manual w
orkaround Summary Reminder of Key Points
97
Import
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Import This scenario describes the main flow of activities to be perf
ormed in Brazil from the creation of a purchase requisition for an item and its
release procedure until payment of the item when it is received for a material b
ought out of the country. It also shows the integration points of SAP to bolt-on
systems that control the imports.
98
Import
Customers
Nota Fiscal Writer Receiving
Posting
Custom Expenses Invoice Verification
Accounts Posting G/L
The Nota Fiscal issued by G/L the agent to support Payable material transfer fro
m the harbor to the plant Outline should be received manually at the Nota Fiscal
Agreement Writer Transaction
Release purchase requisition Create Downpayment Bolt-On
The Custom Expenses declared by the agent to nationalize the imported materials ar
e received with a Nota Fiscal Accounts Posting Fiscal transaction as in the Invo
ice Verification Payable G/L cost receipt Books a planned (if the cost was plann
ed in the pricing schema in the purchase order) Exchange
rate variation
Fiscal Books
Purchase Order Purchase requisition
Enter order Confirm. Bolt-On
Invoice verification Bolt-On Nota Fiscal Writer Receipt Custom Expenses Invoice
verification Bolt-On
Bolt-On
Nota Fiscal type Company Code
Follow-up on delivery
Goods receipt
Bolt-On
Foreign Suppliers- Branch
Schema - Pricing Nota Fiscal Type Receive Create Confirm Deliver code Down- Invo
ice Sales - Vendor number - Tax Tax code order Material payment Order data: Mate
rial - Material information (Quantity, Unit price, CFOP, - Additional PO Number
Agent
ICMS Tax Usage, Material Origin, Situation, IPI Tax Situation, Material Usage, M
aterial Origin, - Planned costs Material Category, NCM code Material Category, N
CM code)
Receive Material Deliver Material Nota Fiscal
Nota Fiscal Custom Expenses
99
Import
The Solution
SAP Configuration
Pricing Schema with import pricing (Import Tax, freights, ).
Special Development
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, SYNC
RO [Fiscal Books].
Manual Workaround
Nota Fiscal Writer to receive the materials in stock; Distribution of custom exp
enses.
Implementation
C
E
Its a complex solution because requires the configuration of an import pricing sc
hema, manual Nota Fiscal Writer for the goods receipt and the integration with t
he bolt-on system.
100
Agenda - Subcontracting
Overview Description of Scenario Overview Business Process Flow Main Localizatio
n Requirements Solutions SAP configuration Special Development Bolt Ons Manual w
orkaround Summary Reminder of Key Points
101
Subcontracting
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Subcontract This scenario describes the main flow of activities to be
performed in Brazil from the creation of a purchase requisition for an item and
its release procedure until payment of the item when it is received for a mater
ial 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 t
o produce the material that was subcontracted
A specific Nota Fiscal is required to support this operation and can be sent by
the vendor in 2
Subcontracting
Nota Fiscal Receiving
- At Invoice Verification, inform Nota Fiscal Number, Issuing Posting Accounts d
ate, receiving date, total G/L Payable amount, Nota Fiscal Type and Posting syst
em Fiscalwill include the line items for Books the symbolic return of the G/L co
mponents used by the vendor
Issuing of Components Customers separated from the Nota Fiscal to bill the (Reme
ssa para service (special transaction to receive it) Beneficiamento)
- AtFiscal goodsto issue the components used in together with the Nota bill the
the subcontracting service (received at invoice verification) process are sent t
o vendor
Fiscal Books
Outline Agreement
Posting G/L
Fiscal Books
Purchase requisition
Request for quotation
Evaluate quotations
Release purchase requisition
Purchase order
Enter order Confirm.
Goods Issue of Components
Follow-up on delivery
Goods receipt
Invoice verification
Suppliers
Quotation
Bolt-On Type - Pricing Schema - Fiscal Texts for ICMS and IPI - Tax code - Nota
Fiscal Type - Tax code - Amount of each component - Additional data: Material Tax code being sent to subcontracting - Additional data: Material Usage, Materia
l Origin, Create Nota Fiscal Usage, Material Origin, Confirm Deliver Nota Materi
al Category, NCM code - PO Number Sales to receive - PO Number order material Fi
scal Material Category, NCM code Order Components
- Special Movement - Pricing Schema
Bolt-On
Bolt-On
103
Subcontracting
The Solution
SAP Configuration
Pricing Schema with Brazilian taxes (ICMS, IPI); Special Nota Fiscal type to sup
port Subcontracting Nota Fiscal; Special movement type to support Subcontracting
components issue and Subcontracting components return (symbolic); Nota Fiscal A
ssociation to Movement types for Subcontracting; Account association to subcontr
acting movements. SAPscript for Purchase Order Printing; Adjustments to SAPscrip
t for Outgoing Nota Fiscal form (Remessa para Beneficiamento). MASTERSAF, AspenSati, SYNCRO. Price of each component to be sent to subcontracting should be inf
ormed manually.
Special Development
Bolt-Ons
Manual Workaround
Implementation
The complexity of this solution is high due to:
C
E
control the components sent to subcontracting and do the manual movements to adj
ust stock in case of material loss; look for the price of each component to be s
ent to subcontracting and calculate the amount of the material to be sent to inf
orm 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 betw
een subcontracting (components <> processed material) and industrialization (com
ponents = processed material).
104
Agenda - Consignment
Overview Description of Scenario Overview Business Process Flow Main Localizatio
n Requirements Solutions SAP configuration Special Development Bolt Ons Manual w
orkaround Summary Reminder of Key Points
105
Consignment
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Consignment This scenario describes the main flow of activities to be
performed in Brazil from the creation of a purchase requisition for an item and
its release procedure until payment of the item when it is received for a mater
ial 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
- At Invoice Verification, inform Nota Fiscal Number, Issuing - At goods receipt
the materials in date, receiving date, total consignment are received in SAP in
a amount, Nota Fiscal Type and special stock (or accounting control) and a Post
ing Fiscalto the Nota Fiscal the reference Nota Fiscal of Remessa em Consignao G/L
Books received in consignment is generated in SAP (that has all the information
of the Nota Fiscal sent by the vendor)
Goods Receiving of Materials in Consignment (Remessa em Consignao)
Nota Fiscal Receiving Posting Accounts
G/L Payable
Fiscal Books
Outline Agreement
Posting G/L
Fiscal Books
Purchase requisition
Request for quotation
Evaluate quotations
Release purchase requisition
Purchase order
Enter order Confirm.
Goods receipt
Follow-up on next deliveries
Invoice verification
Goods receipt
Suppliers
Quotation
Bolt-On - Pricing Schema - Pricing Schema - Special Movement Type - Tax code - T
ax code - Fiscal Texts for ICMS and IPI - Nota Fiscal Type - Additional data: Ma
terial - Additional data: Material - Tax Code - Tax code Usage, Material Origin,
Usage, Material Origin, Create Deliver Material Category, NCM Material code Cat
egory, NCM code Confirm - PO Number - PO Number Sales Material/ order Order Nota
Fiscal
Bolt-On
Bolt-On
Nota Fiscal
Deliver Material (replenishment)
107
Consignment
The Solution
SAP Configuration
Pricing Schema with Brazilian taxes (ICMS, IPI); Special Nota Fiscal type to sup
port Consignment Nota Fiscal; Special movement type to support Consignment recei
pt; Nota Fiscal Association to Movement type for Consignment receipt; Account as
sociation to consignment movement; Special Tax Code configuration for Consignmen
t process. SAPscript for Purchase Order Printing. MASTERSAF, ASPEN_SATI , SYNCRO
. Use of SAP standard reports to gather information about consignment stock in h
and, materials received in consignment and usage of materials.
Special Development
Bolt-Ons Manual Workaround
Implementation
C
E
The process has an standard operation in SAP. The complexity will be the control
of stock in consignment because its required to use some SAP standard reports to
control these stocks.
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Vendor Returns
Define & Maintain Data Forecast Order Handling Planning Purchasing Inventory Pro
duction Shipping & Logistics Invoice & Payment Claims & Feedback
Inquiry & Quotation
Execute Work
Scenario : Vendor Returns This scenario describes the main flow of activities to
be performed in Brazil when a material received is rejected by any reason and i
t is necessary to return the goods to the vendor.
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Vendor Returns
Customers
Return to Vendor Nota Fiscal Create a Credit Memo to the vendor informing Purcha
se Order Number, total amount being returned, materials being returned, amounts
per material being returned, Nota Fiscal Type, Fiscal Texts for ICMS and IPI
Posting G/L
Reverse Accounts Payable
Fiscal Books
Posting G/L
Reject Material
Return Nota Fiscal (Credit Memo)
Goods issue of returned materials
Reopens Purchase Order balance
Bolt-On
Suppliers
Nota Fiscal receipt Receive Returned material
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Vendor Returns
The Solution
SAP Configuration Pricing Schema with Brazilian taxes (ICMS, IPI); Special Nota
Fiscal type to support Return to Vendor Nota Fiscal; Special movement type to su
pport Return to Vendor issue. Special Development Adjustments to SAPscript for O
utgoing Nota Fiscal form (Vendor Return). Bolt-Ons MASTERSAF, ASPEN-SATI , SYNCR
O.
Implementation
The process has an standard operation in SAP.
C
E
112
Purchase to Pay
Other Local Legal Scenarios
Utilities Nota Fiscal (Energy, Phone, Water); Future Delivery on purcha
rd-Party; Complementar Nota Fiscal; Free of Charge (Donations, Samples); Return
of Repairs; Test; Returnable Packaging; Freights; Inventory Write-offs; Purchase
of Services.
113
CONFIGURATIONS:
Different pricing schemas for several scenarios in Sales and Purchasing (comple
configurations); New SD documents should be created using specific doc. types f
or Brazil; Different Nota Fiscal types to support business processes; New moveme
nt types to support business processes; Different tax codes should be created to
support business process; Upload or input exceptions related to taxes calculati
on (ICMS and IPI rates - exception by material, ICMS and IPI Fiscal Texts, withh
olding taxes - IRRF, INSS, ISS); Extra configuration required in case of using b
olt-on systems.
DEVELOPMENTS:
SAP Script development for the main documents in Logistics (purchase order, sale
s order and picking list); SAP Script development for the Nota Fiscal and high e
ffort to test all the business variants and validate the Nota Fiscal printing (O
utgoing and Incoming); Extra ABAP developments in case of using interfaces of SA
P to other systems.
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115
Material
NCM Code Brazilian naming of goods CFOP Category the type of operation Materi
Destination Resale, Consumption & Asset Material Origin (domestic / imported) Pr
oduced in-house or not Taxes Classification (ICMS, IPI/ISS)
Vendor
Legal Information (tax code i.e. CNPJ) Situao Tributria IPI and ICMS Withholding ca
tegory indicator
Customer
Legal Information (tax code ie. CNPJ, Insc.Estadual) Text code (texts are printe
d in the Nota Fiscal) Tax Classification (Taxable, Zona Franca) CFOP Category
118
Product Costing
All goods movements within a period are valuated preliminarily at the standard p
rice. 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 pric
e (actual price) is calculated based on each materials actual costs. The periodic
unit price is used to revaluate the inventory at period close. Actual costing de
termines the portion of the variance debited at the nexthighest level using mate
rial 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". I
t will only definitely revaluate the inventory after the next standard cost calc
ulation, which will probably take a good portion of the price variance.
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Product Costing
The Solution
Material Ledger activation Actual Costing functionality activation SAP Configura
tion Automatic Postings Movement Type Classification Special Correction Note App
lication Variance Adjustments Development for WIP inventory Abap Reporting (opti
onal)
Implementation
Some difficulty to understand the concept ; High effort (resources and time) ;
C
E
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 ar
e revaluated at moving average price.
Moving Average
All the remaining materials consumed at cost center level, not in production ord
ers.
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 Verification of Soya oil: Quant. = 1.000 Kg Amount = R$ 1.000
Soya oil consumption in Production of I / Mono-di: 900 KG
Complementary cost (ex. Freight) Of soya oil: Quant. = 0 Kg Amount = R$ 5.000
Soya oil consumption in Production of Mono-di: 100 KG
Inventory Movement of Soya Oil Soya oil Init Bal.: 0 Entrance: 1.000 Kg End Bal:
1.000 Kg Soya oil Init Bal: 1.000 Kg Sales: 900 Kg End Bal: 100 Kg Soya oil Ini
t Bal: 100 Kg End Bal: 100 Kg Soya oil Init Bal: 100 Kg Sales: 100 Kg End Bal: 0
Kg
134
Example
I / Mono-di
Glicerine
Unit Price R$ 1,00
Soya oil
Soya oil Value: R$ 900,00 Quantity: 900 Kg
135
Example
Mono-di
Glicerine
Unit Price R$ 51,00
Soya oil
Soya oil Value: R$ 5.100,00 Quantity: 100 Kg
136
Boleto Forms
174
Bank Transfer
Bank Transfer:
The following Brazilian-specific print program must be entered in the country de
pendent customizing of all payment methods that are used to create bank transfer
s. 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 Mediu
m exchange/Arquivo Remessa) file containing all payment information. The followi
ng Brazilian-specific payment transfer must be customized per company code.
J_1B_BORDERO: Payment list J_1B_DME: accompanying sheet
175
205
Questions
211