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Localization BrazilLocalization BrazilSAP R/3 MM – 4.6CSAP R/3 MM – 4.6CLocalization BrazilLocalization BrazilSAP R/3 MM – 4.6CSAP R/3 MM – 4.6C

MMMM1. Organizational Structure1. Organizational Structure

Branch 1

Plant 1

Branch 2

Plant 4Plant 3Plant 2

Company

1.1 CNPJ Branch– To model Brazilian business, it is necessary to another organizational unit

called branch, the level where tax reporting and Nota Fiscal reporting is done. It is also the organizational unit where the CNPJ number is assigned.

1.2 Company Code– There is a customizing path that should be customized to indicate CNPJ

company– The CNPJ company is the part of the CNPJ number, which is the same for

all branches defined in the company. Please note that the system creates the CNPJ number using the CNPJ company and the CNPJ branch.

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PLANT01

PLANT02

Branch1

1. Organizational Structure1. Organizational Structure

1.3 PLANT

– Plant must be assigned to a Branch.

– Every place that receive and issue material (physical goods movement) can be considerate by law as a Fiscal Branch, so each branch must have a Plant linked, to support goods movements into the SAP.

MMMM2. Master Data2. Master Data

2.1 – Material MasterNew fields of the material master, used in the Nota Fiscal, to determine CFOP and for Tax calculations, including:

Field UsageNBM code (also: NCM code) Nota fiscal printing, Tax calculationMaterial CFOP category Nota fiscal CFOPMaterial usage Nota fiscal CFOP, tax calculationMaterial origin Nota fiscal CFOPIndicator Produced in-house Nota fiscal CFOP

2.2- Vendor MasterSpecifics fields necessary for Brazilian Operations:

– Industry equivalent• Indicator Not industry equivalent

– Tax code 1(filled with CNPJ number of the vendor, if the vendor is a Company). If it is a Natural person, Natural Person Field must be on, and Regional Tax code must be the CPF of the Person

– Tax code 2 (filled with the number of the vendor regarding to a legal ID for the State)– Tax code 3 (filled with the number of the vendor regarding to a legal ID for the City

MMMM3. SAP Transactions3. SAP Transactions

3-1 – Invoice Verification3.1.1- NF Type

NF type should be filled to create Nota Fiscal document automatically and register vendor Invoice (Nota Fiscal) into the Legal Book.

3.1.1- CFOP Determination

Special customizing must be done do get CFOP determined automatically at the Invoice Verification time.

3.2 – Material Document GenerationGoods Movement transactions can automatically create Notas Fiscais. This is required for Nota Fiscal relevant movements that are not entered in Invoice Verification

Goods movement

(Material document)NOTA FISCAL

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3.3- Special CasesThere are special cases that Nota Fiscal must be created and printed and Taxes must be considerate.Special Movement Types and Tax Codes must be used to support these operations below:

a) Subcontractingb) Transfer between Plants with Taxesc) Returnable Transport Packagingd) Future Deliverye) Consignmentf) Third Party Handlingg) Imports

The processes below requires special procedures and pre-requisites to be supported in SAP:– Goods nationalization and landing– Nota Fiscal printing– Tax accounting– Exchange rates (Purchase Order currency x Company/hard currency)– Down payments

3. SAP Transactions3. SAP Transactions

MMMM4. TAX Configuration4. TAX Configuration

4.1 Tax CodesThe Localization Brazil supports the automatic calculation of the following taxes:

IPI ICMS Complement of ICMS Substituição Tributária (Tax Substitution)

SAP delivers the calculation procedure TAXBRJ that defines tax calculation in the modules MM, FI and SD. Although TAX Codes configuration appears in FI Customizing Path, specifics configurations for Finance, Sales and Purchase require different experts (Finance, Sales and Purchase specialists) to set up these needs.

Specially for MM, to support Purchasing Process, new Tax codes must be created to differentiate tax accounting when a company buy for Consumption and Assets.

A new Price Procedure can be created to be linked to Brazilian Vendors in Price, Tax conditions must be filled to work together with Tax Procedure TAXBRJ.

Special changes in SapScripts for Purchase Order should be done to support Brazilian needs regarding to forms.

MMMM4. TAX Configuration4. TAX Configuration

4.2 Tax Rates

There are special tables that must be filled with tax rates.

Tax calculation programs use these tables with a different access sequence to find the right tax rate for each operation

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Every operation that involves Nota Fiscal issuing and receiving must be registered into Legal Books (incoming, outgoing) and update other Legal Reports:

• List of incoming documents and vendor list• List of outgoing documents• Overview of production and inventory• Physical inventory overview• Directory for calculating IPI tax• Directory for calculating ICMS tax• List of interstate goods movements• Directory for calculating ISS tax• File as per law ICMS 131/97• IN68: Master data, document files, and tables• Statements for customers/vendors/G/L accounts

5. Legal Books Reporting5. Legal Books Reporting