(BRA) Understanding Country-Specific Functionality for Brazil

This chapter provides an overview of tax information for address book records for Brazil and discusses the Brazil-specific setup and processes that you use in addition to the standard setup and processes provided in the base software.

Understanding Tax Information for Address Book Records for Brazil

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.

State Tax ID Numbers

The Address Book Additional Information - Brazil program validates state tax ID numbers if you set the processing options to do so.

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 number 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

Brazil-Specific Setup and Processes

This table describes the country-specific setup and functionality for Brazil:

Setup or Process	Description
User-defined codes (UDCs)	Set up base-software UDCs with Brazil-specific values, and set up Brazil-specific UDCs for: Supplier tax processing. Fiscal books and electronic GIA. Tax processing. Procurement processing. IN86 and IN89 reporting. See Setting Up UDCs for Brazil.
Automatic accounting instructions (AAIs)	Set up these AAIs to work with Brazilian transactions: Brazilian localization uses AAIs 4220 and 4240 in the JD Edwards EnterpriseOne Sales Order Management system; and AAIs 4385 and 4390 in the JD Edwards EnterpriseOne Procurement system to account for Brazilian taxes, freights, expenses, insurance, and discounts. You must set up these AAIs for ICMS, ICMS Substitution, and IPI tax calculations: 4210, 4220 4240, 4285, 4290, 4310, 4385, and 4390. For sales transactions, the system uses AAI 4220 to generate a debit to the posting account and uses AAI 4240 to generate a credit to the posting account when you update the general ledger with PIS/PASEP and COFINS tax credits. For procurement transactions, the system uses AAI 4385 to generate a debit to the posting account and uses AAI 4390 to generate a credit to the posting account when you update the general ledger with PIS/PASEP and COFINS tax credits. Set up the Cost/Expense Adjustments AAI (4385) and the Cost/Liability Adjustments AAI (4390) prior to closing notas fiscais. See Setting Up AAIs for Tax Processing for Brazil.
Next numbers	In addition to the base software next numbering requirements, set up next numbering schemes for: Notas fiscais. Electronic GIAs (Guia de Informação e Apuração). Fiscal books. Remessa. See Setting Up Next Numbers for Brazil.
Companies	In addition to the base software setup for companies, for Brazil: Set up corresponding versions of the Address Book Additional Information - Brazil (P01012BR) and the Address Book Revisions (P01012) programs. Set the processing options for the Address Book Additional Information - Brazil program. Set up cross-references between companies and branch/plants to assure that each business unit is associated with only one fiscal company. See Setting Up Company and Branch/Plant Cross-References for Brazil.
Customers	In addition to the base software setup for customers, for Brazil: Set up corresponding versions of the Address Book Additional Information - Brazil (P01012BR) and the Address Book Revisions (P01012) programs. Set the processing options for the Address Book Additional Information - Brazil program. See Setting Up Company and Branch/Plant Cross-References for Brazil.
Suppliers (setup)	In addition to the base software setup for suppliers, for Brazil: Set up corresponding versions of the Address Book Additional Information - Brazil (P01012BR) and the Address Book Revisions (P01012) programs. Set the processing options for the Address Book Additional Information - Brazil program. 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: Set up UDCs. See Setting Up UDCs for Supplier Withholding for Brazil. Set up AAIs to account for taxes. See Setting Up AAIs for Tax Processing for Brazil. Set up the IR, INSS, PIS/PASEP, COFINS, CSLL, and FUNRURAL tax codes that you need. See Setting Up Withholding Tax Codes. Set up the income range, percentage of funds to be withheld, and the amount of the deduction for IR taxes for individuals. See Setting Up the Income Tax Schedule for Individuals. Set up associations between purchase use codes and tax codes for PIS/PASEP, COFINS, and CSLL contributions. See Setting Up Purchase Use Codes for PIS/PASEP, COFINS, and CSLL Contributions. Set up date ranges, due date rules, and payment terms in the Advanced Payment Terms module in the JD Edwards EnterpriseOne Accounts Payable system. See Setting Up Payment Due Dates for Taxes. See Advanced Payment Terms.
Supplier withholding setup (continued)	To set up to work with supplier withholding for Brazil: Complete the appropriate fields for every vendor for which you calculate supplier withholding taxes on the Tax Information tab on the Address Book Additional Information - Brazil form in the Address Book Additional Information - Brazil program (P01012BR). See (BRA) Entering Tax Information for Address Book Records. For INSS taxes, enter the Código Brasileiro de Operações (CBO) code for the supplier in the Complementary ID field on the Address Book Additional Information - Brazil form in the Address Book Additional Information - Brazil program. Complete these fields in the Item Master program for every item for which you will calculate supplier withholding taxes: Retention of IR Reduction IR Complete these fields in the Branch/Plant Master program for every item for which you will calculate supplier withholding taxes: Retention of IR Reduction IR For INSS taxes, enter in the Service Taxes Paid Externally program (P76B0403) the INSS contribution amounts that are held by others. See Working with Service Taxes Paid Externally for Brazil.
Supplier withholding (processes)	To work with supplier withholding for Brazil: Update the general ledger with PIS/PASEP and COFINS tax credits. Run the programs to calculate the taxes. Print INSS withholding certificates. Maintain ISS and INSS tax records. Generate the text file for taxes. Generate withholding tax reports. See (BRA) Processing Supplier Withholding.
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: Set up UDCs. See Setting Up UDCs for Electronic Banking for Brazil. Set up the monthly late fee rate. See Setting Up the Monthly Late Fee Rate. Set up bank layouts. See (BRA) Setting Up Electronic Banking.
Voucher processing	In addition to the base software process for vouchers, for Brazil: Some voucher processing functions work differently for Brazilian transactions. See Understanding Voucher Processing for Brazil. See Understanding Voucher Entry and Voucher Match for Brazil. Add bar code information to vouchers. See Setting Up Company and Branch/Plant Cross-References for Brazil.
Payment processing	In addition to the base software functionality, to work with payment processing in Brazil: Review how the system validates conditions for tax processing and restricts the voiding of payments. See Understanding Automatic Payment Processing for Brazil. Set up payment formats. See Setting Up Payment Formats for Brazil. Add bar code information to vouchers. See Adding Bar Code Information to Vouchers for Brazil. Set up corresponding versions of the Create Payment Control Groups (R04570) and the Brazilian Payment Process - PO (P76B470) programs. Use Brazil-specific programs to process inbound and outbound payments. See Processing Inbound and Outbound Payments for Brazil. Enter tax amounts for IR, PIS/PASEP, COFINS, and CSLL taxes when you enter manual payments. See Entering Manual Payments for Brazil.
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). See Understanding Invoice Processing for Brazil. See Purging Invoice Transactions for Brazil.
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: Review the overview of automatic receipts for Brazil. See Understanding Automatic Receipts for Brazil. Set up bank layouts. See (BRA) Setting Up Electronic Banking. Process outbound automatic receipts by running the program to create the bank tape and creating the outbound text file. See Processing Outbound Automatic Receipts. Process inbound automatic receipts by importing and uploading files from your bank and updating credit groups. See Processing Inbound Automatic Receipts.
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: Set up UDCs. See Setting Up UDCs for Fiscal Books and Electronic GIAs for Brazil. Set up next numbers for fiscal books. See Setting up Next Numbers for Fiscal Books. Set up opening and closing terms for fiscal books. See Setting Up Opening and Closing Terms for Fiscal Books for Brazil. To process fiscal books: Generate the fiscal books workfiles. Maintain nota fiscal and tax records. Maintain GNRE information. Generate the ICMS magnetic files. Purge incomplete fiscal books. Print reports and generate the fiscal books. See (BRA) Processing Fiscal Books.
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: Set up UDCs. See Setting Up UDCs for Fiscal Books and Electronic GIAs for Brazil. Set up next numbers for GIA. See Setting Up Next Numbers for Electronic GIAs. Run the Nota Fiscal Conversion program (R76B200A) to populate required JD Edwards EnterpriseOne tables. See Generating the Fiscal Books Workfiles. Use the Electronic GIA Workbench programs to maintain or add records and generate the flat file that you send to the government. See (BRA) Working with the Electronic GIA Workbench.
Inventory management	In addition to the standard item and branch/plant setup, for Brazil, set up information about: 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. See (BRA) Working With Inventory Management for Brazil.
Sales order processing (setup)	In addition to the standard setup for sales order processing, for Brazilian transactions: Set up corresponding versions of: Sales Order Brazilian Additional Information - Brazil (P4210BR) and Sales Order Entry (P4210) Sales/Purchase Returns - Brazil (P76B805), Sales Order Entry (P4210) and Sales Ledger Inquiry (P42025) Stand Alone Nota Fiscal (P7611B) and Generate Nota Fiscal (R76558B) Set up AAIs for sales transactions to account for taxes. See Setting Up AAIs for Tax Processing for Brazil. Set up next numbers for notas fiscais. See Setting Up Next Numbers for Notas Fiscais. Set up transaction nature codes. See Setting Up a Cross-Reference for Transaction Nature Codes for Brazil. Set up branch/plant cross-references to assure that each business unit is associated with only one company. See Setting Up Company and Branch/Plant Cross-References for Brazil. Set up the system to process Brazilian taxes. See (BRA) Setting Up the System for Brazilian Taxes.
Sales order processing (processes)	In addition to the standard processes for sales order processing, Brazil-specific processes exist to: Enter transaction nature codes and suffixes and additional detail information. See Entering Additional Sales Order Information for Brazil. Generate a nota fiscal with a temporary nota fiscal number and calculate taxes. See Generating Outbound Notas Fiscais. Enter freight, insurance, and other charges. See Entering Additional Charges. Work with messages that print on notas fiscais. See Working with Print Messages for Notas Fiscais. Review outbound notas fiscais. See Reviewing Outbound Notas Fiscais. Print outbound notas fiscais with the official nota fiscal numbers. See Printing Outbound Notas Fiscais. Update sales. See Updating Sales in Brazil. Enter transfer orders. See Entering Transfer Orders for Brazil. Generate a nota fiscal when not generating a purchase order or sales order transaction. See Entering Stand-Alone Notas Fiscais. Work with ship-to and ship-from returns, sales order reverses, and cancellations. See Working With Returns, Reverses, and Cancellations in Brazil.
Tax processing for IPI, ICMS, and PIS/COFINS	You can set up the system to perform calculations for these taxes: IPI (Imposto sobre Produtos Industrializados). ICMS (Imposto sobre Circulação de Mercadorias e Serviços). ICMS Substitution. ISS (Imposto sobre Serviços). PIS/PASEP (Programa de Integração Social/Programa de Formação do Patrimônio do Servidor Público). COFINS (Contribuição para Financiamento da Seguridade Social). In addition to the base set up for tax processing, for Brazil: Review the overview for setup for repasse. See Understanding Advanced Pricing Setup for Repasse. Set up UDCs. See Setting Up UDCs for Tax Processing for Brazil. Set up AAIs. See Setting Up AAIs for Tax Processing for Brazil. Set up transaction nature codes. See Setting Up Transaction Nature Codes. Set up tax codes for ICMS and IPI. See Setting Up Tax Codes for ICMS and IPI. Set up ICMS and IPI. See Setting Up ICMS (Imposto sobre Circulaço de Mercadorias e Serviços) Tax Calculations and IPI (Imposto sobre Produto Industrializado) Tax.
Tax processing for IPI, ICMS, and PIS/COFINS (continued)	In addition to the base set up for tax processing, for Brazil: Set Up GL Class Codes for PIS/PASEP and COFINS Tax Credits. See Setting Up GL Class Codes for PIS/PASEP and COFINS Tax Credits. Setting Up Tax Codes for PIS/PASEP. See Setting Up Tax Codes for PIS/PASEP (Programa de Integração Social/Programa de Formação do Patrimônio do Servidor Público) and COFINS (Contribuição para Financiamento da Seguridade Social) Tax Credits. Setting Up Tax Line Types for PIS/PASEP and COFINS Tax Credits. See Setting Up Tax Line Types for PIS/PASEP and COFINS Tax Credits.
Procurement processing	In addition to the standard setup for procurement processing, for Brazil: Set up UDCs. See Setting Up UDCs for Procurement Processing for Brazil. Set up AAIs. See Setting Up AAIs for Tax Processing for Brazil. Set up the system to process Brazilian taxes. See (BRA) Setting Up the System for Brazilian Taxes. Set up the Sales ledger Inquiry program (P42025) to process purchase order returns for Brazil. See Understanding Setup Considerations for Purchase Order Returns. Set up corresponding versions of the Sales Ledger Inquiry (P42025), Sales Order Entry (P4210), and Sales/Purchase Returns - Brazil (P76B805) programs to work with purchase order returns. Set up corresponding versions of the Nota Fiscal Receipts - Brazil (P4312BR) and PO Receipts (P4312) programs to work with receipts for procurement. Review setup considerations for purchase order returns. In addition to the standard functionality for procurement processing, Brazil-specific processes exist to: Enter purchase orders for Brazil. Enter and review receipts. Enter reversing receipts. Work with errors on notas fiscais. Close inbound notas fiscais. Generate a correction letter for notas fiscais. Enter landed costs and freight notes. Process purchase order returns for Brazil. Generate the nota fiscal for a purchase return. Print the nota fiscal for purchase returns. See (BRA) Working With Procurement Processes for Brazil.
Address book records	When working with address book records in Brazil: Enter supplier withholding information. See (BRA) Entering Tax Information for Address Book Records. After you use the Purge Address Book Records program (R01800P) to purge standard address book tables, use the Purge Brazilian Address Book Tag Files program (R76011P) to purge records from the Address Book Brazilian Tag Table (F76011). See (BRA) Purging Brazilian Address Book Records.
Reports for Brazil	To work with fiscal reports for Brazil: Set up transaction nature code cross-references. See Setting Up a Cross-Reference for Transaction Nature Codes for Brazil. Use the Transaction Journal program (R76321B) to generate a report that lists the totals all of the journal entries in the Journal Entry Book by company, day, and accounting period. Use the Four Columns Trial Balance program (R76B09410) to print a trial balance report that shows total debits and credits for each account. Use the General Ledger program (R76B420) to generate a list of all transactions by company and general ledger account for a specific accounting period. See (BRA) Reports for Brazil.
IN86/IN89 tax reporting	IN86 and IN89 refer to legal reporting requirements which require businesses to report via magnetic media all of their business transactions that occur over a period of time. To work with IN86/IN89 tax reporting for Brazil: Set up UDCs. See Setting Up UDCs for IN86 and IN89 Tax Reporting. Filter records. See (BRA) Filtering Records for IN86 and IN89 Tax Reporting. Maintain records. See (BRA) Maintaining Records for IN86 and IN89 Tax Reporting. Generate the text and data files. See (BRA) Generating the Data and Text Files for IN86 and IN89 Tax Reporting.
IN68 tax reporting	IN68 refers to legal reporting requirements. To work with IN68 tax reporting for Brazil: Generate the workfiles. Maintain the work file tables. Generate the reports. See (BRA) Processing IN68 Records for Tax Reporting.