(BRA) Working With Inventory Management for Brazil

This chapter discusses how to:

Add additional item master information.
Add additional branch/plant information.

Adding Additional Item Master Information for Brazil

This section provides an overview of additional item master information for Brazil and discusses how to add additional item master information.

Understanding Additional Item Master Information for Brazil

The Brazilian government requires Brazilian businesses to enter specific tax information that is related to each inventory item. The system uses this tax information to calculate Imposto sobre Produtos Industrialzados (IPI), Imposto sobre Circulaõ de Mercadorias e Servios (ICMS), and Imposto sobre Circulaõ de Mercadorias e Servios Substituto (ICMS) Substitution taxes; generate nota fiscal documents; and generate applicable fiscal reports.

You must enter general information for all stock and nonstock items. The system uses this information to identify and process each item in the distribution and manufacturing systems.

In Brazil, the government requires companies to maintain this additional information for each item:

Fiscal classification.
Tax code (IPI or ICMS).
Whether the item is subject to tax substitution markup.
Item origin.
Purchase use.
Messages to print.
Retention of IR.
Reduction of IR.
Whether the item is a part of retention or reduction of INSS.

The system automatically displays the additional information form when you enter a new inventory item record. To access the additional information form when you inquire on an existing inventory item, select a record and select Regional Information from the Row menu.

You may also review (but not add) additional information from the Inventory Master - Brazil menu (G76B4111). You can review additional information by choosing Item Master.

When you enter additional information for an item, the system creates a record for the item in the F76411 table.

Prerequisite

Verify that UDC 76/CN is set up.

Form Used to Add Additional Item Information for Brazil

Form Name	FormID	Navigation	Usage
Item Master Regional Information - Brazil	W4101BRA	Inventory Master - Brazil (G76B4111), Item Master - Brazil. Select a row in the detail area on the Work With Item Master Regional Information - Brazil form, and select Select.	Enter additional item master information.

Form Name

FormID

Navigation

Usage

Item Master Regional Information - Brazil

W4101BRA

Inventory Master - Brazil (G76B4111), Item Master - Brazil.

Select a row in the detail area on the Work With Item Master Regional Information - Brazil form, and select Select.

Enter additional item master information.

Entering Additional Item Master Information

Access the Item Master Regional Information - Brazil form.

Fiscal Class

Specify groups of products, as defined by the local tax authorities. The product groups are based on taxing conventions and other national statistics. The system uses this code to determine the applicable tax rate for a product.

Tax Code

Enter an auxiliary code that you use to combine ICMS and IPI tax characteristics. Values might include:

01: Taxed domestic goods (IPI and ICMS).

02: Taxed domestic goods (ICMS taxed, IPI tax rate Zero).

03: Exempt products.

04: Export.

05: ICMS deferred, IPI suspended.

06: ICMS exempt, IPI taxed.

Purchase Use

Enter a code that identifies the purpose for which the merchandise was purchased. You define purchase use codes in the Purchase Use UDC table (76/PU).

Print Message

Enter a user-defined code (40/PM) that you assign to each fiscal print message that appears on the nota fiscal.

ICMS Substitution

Enter a code that specifies whether a client or product is subject to tax substitution. Values are:

Y: Use list price.

Z: Use net price.

N: No.

Item Origin

Enter a code that specifies the origin of a product. You must select a hard-coded value from the Item Origin UDC (76/IO).

Retention of IR

Enter the percentage of the retention of income tax for a legal entity.

Reduction IR

Enter the percentage of the reduction of the tax calculation base for an individual.

INSS Y/N

Specify whether the item is part of the retention/aggregation calculation for INSS. A check mark in the box indicates that the item is part of the calculation.

Adding Additional Branch/Plant Information for Brazil

This section provides an overview of additional branch/plant information and discusses how to add additional branch/plant information.

Understanding Additional Branch/Plant Information for Brazil

Information about an item might be different from warehouse to warehouse. For example, taxes might be applicable to an item at one warehouse but not at another. You might also have different quantity requirements for each item, based on the warehouse. After you enter master information for an item, you can assign the item to different warehouses or branch/plants. You can then customize the item information for each branch/plant. You can also specify at which locations in the branch/plant the item is stored.

Every system that retrieves item information searches for the item branch/plant information before using the item master information.

In Brazil, companies can override the Item Master information that they enter for specific lot locations. Companies should maintain these fields:

Fiscal classification.
Tax code (IPI or ICMS).
Whether the item is subject to tax substitution markup.
Item origin.
Purchase use.
Messages to be printed.

To associate the additional information that is required to meet Brazilian reporting requirements with the inventory items that you enter, the country that is specified in the user display preferences must be Brazil (BR). To access the additional information form when you inquire on an existing inventory item, select a record and then select Regional Information from the Row menu. Brazilian information needs to be added only by location if the location is different than that added for the item.

You may also review (but not add) additional information from the Inventory Master - Brazil menu (G76B4111). You can review additional information by choosing Item Branch/Plant - Brazil.

When you enter additional branch/plant information for an item, the system creates a record for the item in the F76412 table.

Forms Used to Enter Additional Branch/Plant Information

Form Name	FormID	Navigation	Usage
Work With Item Locations	W41024B	Lot Control (G4113), Item/Lot Information Revisions.	Enter additional branch/plant information for items for Brazil.
Item Branch Regional Information - Brazil	W76412BA	Select Regional Info. from the Row menu on the Work With Item Locations form.	Enter additional branch/plant information for items for Brazil.

Entering Additional Branch/Plant Information for Items for Brazil

Access the Work With Item Locations form.

This presents the Item Branch Regional Information - Brazil form that you use to enter additional branch/plant information for items for Brazil.

Branch/Plant

Enter an alphanumeric code that identifies a separate entity within a business for which you want to track costs. For example, a business unit might be a warehouse location, job, project, work center, branch, or plant.

Item Number

Enter a number that the system assigns to an item. It can be in short, long, or third item number format.

Fiscal Class

Enter a code that specifies groups of products, as defined by the local tax authorities. The product groups are based on taxing conventions and other national statistics. The system uses this code to determine the applicable tax rate for a product.

Tax Code

Enter an auxiliary code that you use to combine ICMS and IPI tax characteristics. Values might include:

01 Taxed domestic goods (IPI and ICMS).

02 Taxed domestic goods (ICMS taxed, IPI tax rate Zero).

03 Exempt products.

04 Export.

05 ICMS deferred, IPI suspended.

06 ICMS exempt, IPI taxed.

Purchase Use

Enter a code that identifies the purpose for which the merchandise was purchased. You define purchase use codes in the Purchase Use UDC table (76/PU). When you define purchase use codes, use the special handling code to specify this tax information:

For ICMS tax:

0: ICMS tax is nonrecoverable.

1: ICMS tax is 100 percent recoverable.

For IPI tax:

0: IPI tax is nonrecoverable.

1: IPI tax is 50 or 100 percent recoverable, depending on the status of the ship-to and ship-from taxpayer.

Print Message

Enter a user-defined code (40/PM) that you assign to each fiscal print message that appears on the nota fiscal.

ICMS Substitution

Enter a code that specifies whether a client or product is subject to tax substitution. Values are:

Y: Use list price

Z: Use net price.

N: No.

Item Origin

Enter a code that specifies the origin of a product. You must select a hard-coded value from the Item Origin UDC (76/IO).

Retention of IR

Enter the percentage of the retention of income tax for a legal entity.

Reduction IR

Enter the percentage of the reduction of the tax calculation base for an individual.

INSS Y/N

Specify whether the item is part of the retention/aggregation calculation for INSS. A check mark in the box indicates that the item is part of the calculation.

Fiscal Class	Specify groups of products, as defined by the local tax authorities. The product groups are based on taxing conventions and other national statistics. The system uses this code to determine the applicable tax rate for a product.
Tax Code	Enter an auxiliary code that you use to combine ICMS and IPI tax characteristics. Values might include: 01: Taxed domestic goods (IPI and ICMS). 02: Taxed domestic goods (ICMS taxed, IPI tax rate Zero). 03: Exempt products. 04: Export. 05: ICMS deferred, IPI suspended. 06: ICMS exempt, IPI taxed.
Purchase Use	Enter a code that identifies the purpose for which the merchandise was purchased. You define purchase use codes in the Purchase Use UDC table (76/PU).
Print Message	Enter a user-defined code (40/PM) that you assign to each fiscal print message that appears on the nota fiscal.
ICMS Substitution	Enter a code that specifies whether a client or product is subject to tax substitution. Values are: Y: Use list price. Z: Use net price. N: No.
Item Origin	Enter a code that specifies the origin of a product. You must select a hard-coded value from the Item Origin UDC (76/IO).
Retention of IR	Enter the percentage of the retention of income tax for a legal entity.
Reduction IR	Enter the percentage of the reduction of the tax calculation base for an individual.
INSS Y/N	Specify whether the item is part of the retention/aggregation calculation for INSS. A check mark in the box indicates that the item is part of the calculation.

Branch/Plant	Enter an alphanumeric code that identifies a separate entity within a business for which you want to track costs. For example, a business unit might be a warehouse location, job, project, work center, branch, or plant.
Item Number	Enter a number that the system assigns to an item. It can be in short, long, or third item number format.
Fiscal Class	Enter a code that specifies groups of products, as defined by the local tax authorities. The product groups are based on taxing conventions and other national statistics. The system uses this code to determine the applicable tax rate for a product.
Tax Code	Enter an auxiliary code that you use to combine ICMS and IPI tax characteristics. Values might include: 01 Taxed domestic goods (IPI and ICMS). 02 Taxed domestic goods (ICMS taxed, IPI tax rate Zero). 03 Exempt products. 04 Export. 05 ICMS deferred, IPI suspended. 06 ICMS exempt, IPI taxed.
Purchase Use	Enter a code that identifies the purpose for which the merchandise was purchased. You define purchase use codes in the Purchase Use UDC table (76/PU). When you define purchase use codes, use the special handling code to specify this tax information: For ICMS tax: 0: ICMS tax is nonrecoverable. 1: ICMS tax is 100 percent recoverable. For IPI tax: 0: IPI tax is nonrecoverable. 1: IPI tax is 50 or 100 percent recoverable, depending on the status of the ship-to and ship-from taxpayer.
Print Message	Enter a user-defined code (40/PM) that you assign to each fiscal print message that appears on the nota fiscal.
ICMS Substitution	Enter a code that specifies whether a client or product is subject to tax substitution. Values are: Y: Use list price Z: Use net price. N: No.
Item Origin	Enter a code that specifies the origin of a product. You must select a hard-coded value from the Item Origin UDC (76/IO).
Retention of IR	Enter the percentage of the retention of income tax for a legal entity.
Reduction IR	Enter the percentage of the reduction of the tax calculation base for an individual.
INSS Y/N	Specify whether the item is part of the retention/aggregation calculation for INSS. A check mark in the box indicates that the item is part of the calculation.