This chapter contains the following topics:
Section 2.1, "How to Validate Tax IDs in Latin American Countries"
Section 2.2, "Understanding Tax Information for Address Book Records for Brazil"
The logic for validating tax IDs for customers and suppliers for Latin American users in countries for which localized solutions are available is different from the logic for users in other countries. JD Edwards EnterpriseOne software supports localized software for these Latin American countries:
Argentina
Brazil
Chile
Colombia
Ecuador
Mexico
Peru
Venezuela
The standard logic for validating tax IDs uses the country code of the customer or supplier, along with values in the Tax Id Validation (70/TI) user-defined code (UDC) table. For the Latin American countries, the logic uses the user's country code as set up in the User Profile Revisions program - Localization Country Code field (P0092) when:
The user's country code is different from the supplier or customer country code, and
The user's country code is for a supported Latin American country.
For example, if the user's country code is AR (Argentina) and the supplier's country code is IT (Italy), the system:
Verifies that the IT value exists in the 70/TI UDC table.
Uses the validation routine for Argentina instead of the validation routine for Italy.
To process business transactions accurately in Brazil, the government requires companies to maintain detailed tax information and specifications for all customers, suppliers, and tax authorities. To maintain this information, you access the Address Book Additional Information - Brazil program (P01012BR) when you add a new address book record or when you change the information for an existing record.
The system uses the value in the Person/Corporation Code field of an address book record to determine the tabs to activate on the Address Book Additional Information - Brazil form. The Person/Corporation Code field must contain one of the following hard-coded values from UDC table H00/TA:
1: Individual.
2: Corporate entity.
3: Both an individual and a corporate entity.
The Address Book Additional Information - Brazil program validates state tax ID numbers if you set the processing options accordingly.
If you set the processing options accordingly, the system runs the validation routine when you click OK on the Address Book Additional Information - Brazil form. The system validates the data in the State Tax ID field (TX2) when all of the following conditions are met:
The processing option for Duplicate State Tax ID Numbers is set to blank.
The processing option for Duplicate State Tax ID Error or Warning is set to a valid value.
A valid state is entered in the State field in the address book record and the value of the Country Codes UDC (00/CN) for the address book record is set to BR (Brazil).
A valid state code exists in the State field (ADDS) in the address book record.
The validation routine does the following:
To validate, the system strips out alpha and special characters (!, @, #, $, %, ^, &, *, (, ), _, +, ., /) but displays the ID number in the State Tax ID field with the characters. For example, if you enter 011-445-22.5, the validation routine changes the ID number to 011445225.
If the ID number in the State Tax ID field is an agricultural producer tax ID for São Paulo, the system allows the letter P in the first position of the ID number. For example, if you enter P100-444-8, the system changes the ID number to P1004448.
Note: If an address book record does not have a tax ID number, you can enter the word INSENTO (uppercase) in the State Tax ID field and the system will not validate the tax ID number. |
Stores the ID number with the special characters so that the ID number appears in reports with the special characters.
Recognizes that the special characters are a value that makes the number unique. For example, the system recognizes that these numbers are different:
12345
123.45
12/345
The state of Pernambuco allows tax IDs with either 9 or 14 digits. The validation routine (business function B7602122) in the Address Book Additional Information - Brazil program (P01012BR) accommodates the two tax ID lengths.
The system runs the revised validation routine when you enter or revise an address book record for a supplier or customer and:
The value in the Localization Country Code field in the User Profile Revisions program (P0092) is set to BR (Brazil), and;
The State field in the address book record is set to PE (Pernambuco).
This table describes the country-specific setup and functionality for Brazil:
Setup or Process | Description |
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User-defined codes (UDCs) | Set up base-software UDCs with Brazil-specific values, and set up Brazil-specific UDCs for:
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Automatic accounting instructions (AAIs) | Set up these AAIs to work with Brazilian transactions:
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Next numbers | In addition to the base software next numbering requirements, set up next numbering schemes for:
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Companies | In addition to the base software setup for companies, for Brazil:
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Customers | In addition to the base software setup for customers, for Brazil:
See Setting Up Company and Branch/Plant Cross-References for Brazil. |
Suppliers (setup) | In addition to the base software setup for suppliers, for Brazil:
See Setting Up Company and Branch/Plant Cross-References for Brazil. |
Supplier withholding (setup) | JD Edwards EnterpriseOne supplier withholding for Brazil includes calculations for Imposto de Renda (IR), Imposto sobre Serviços (ISS), Instituto Nacional do Seguro Social (INSS), (Fundo de Assistência e Previdência do Trabalhador Rural) (FUNRURAL), Programa de Integração Social/Programa de Formação do Patrimônio do Servidor Público (PIS/PASEP), Contribuição para Financiamento da Seguridade Social (COFINS), and Contribuição Social sobre o Lucro Líquido (CSLL).
To set up to work with supplier withholding for Brazil:
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Supplier withholding setup (continued) | To set up to work with supplier withholding for Brazil:
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Supplier withholding (processes) | To work with supplier withholding for Brazil:
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Withholding for services sold | If you sell services, you must set up your system to show the amounts that your customers withhold from the invoices that they pay to you. To set up and process withholding for services sold:
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Electronic banking | You set up electronic banking so that you can work with automatic payments and automatic receipts. To set up your system for electronic banking:
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Voucher processing | In addition to the base software process for vouchers, for Brazil:
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Payment processing | In addition to the base software functionality, to work with payment processing in Brazil:
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Invoice processing | In addition to the standard processes for working with invoices, purge the A/R Additional Information – Brazil table (F7603B1) after you run the Invoice Transaction Purge program (R03B800). |
Automatic receipt processing | In addition to the base software processes for automatic receipt processing, you can use a Brazil-specific outbound automatic receipts process to send files to banks so that the bank collects payments from your customers, and use a Brazil-specific inbound automatic receipts process to import files from your bank to JD Edwards EnterpriseOne tables.
To work with automatic receipt processing for Brazil:
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Fiscal books | Fiscal books are required by the Brazilian government to report information about taxable transactions and the taxes due on those transactions. To set up your system to work with fiscal books:
To process fiscal books:
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Electronic GIA reporting | GIA is the ICMS Assessment and Information form. Taxpayers use the GIA to report their economic activities, such as the selling and purchasing of goods within a state and between states.
To work with electronic reporting using the GIA:
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Electronic tax reporting in Pernambuco and the Federal District, Brazil | Ato Cotepe 70 refers to a legal reporting requirement in Brazil. Only the state of Pernambuco and the Federal District (Distrito Federal ) use the guidelines described in the chapters for Ato Cotepe 70 of 2006. All other states use the electronic file generation as described in the chapters for SPED Fiscal. All other states use the electronic file generation as described in the chapters for SPED Fiscal.
To set up your system to work with electronic tax reporting:
See Setting Up Your System for Electronic Tax Reporting for Brazil. To use the electronic reporting process, set up blocks, extract the data, and join the data into flat files. See Understanding Electronic Tax Reporting for Ato Cotepe 70 for Brazil. See Understanding Blocks, Registers, and Records for Ato COTEPE 70 of 2006. See Working with Blocks, Registers, and Records for Electronic Tax Reporting for Ato COTEPE 70 of 2006. |
Electronic tax reporting for states other than Pernambuco, Brazil | SPED Fiscal refers to a legal reporting requirement in Brazil. All states other than Pernambuco and the Federal District (Distrito Federal ) use the guidelines described in the chapters for SPED Fiscal.
To set up your system to work with electronic tax reporting:
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Inventory management | In addition to the standard item and branch/plant setup, for Brazil, set up information about:
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Sales order processing (setup) | In addition to the standard setup for sales order processing, for Brazilian transactions:
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Sales order processing (processes) | In addition to the standard processes for sales order processing, Brazil-specific processes exist to:
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Tax processing for IPI, ICMS, and PIS/COFINS | You can set up the system to perform calculations for these taxes:
In addition to the base setup for tax processing, for Brazil:
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Tax processing for IPI, ICMS, and PIS/COFINS (continued) | In addition to the base setup for tax processing, for Brazil:
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Procurement processing | In addition to the standard setup for procurement processing, for Brazil:
In addition to the standard functionality for procurement processing, Brazil-specific processes exist to:
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Address book records | When working with address book records in Brazil:
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Reports for Brazil | To work with fiscal reports for Brazil:
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Release 9.1 Update
EFD PIS/COFINS |
To work with the EFD PIS/COFINS electronic reporting requirement:
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