(BRA) Setting Up Country-Specific Functionality for Brazil

This chapter provides an overview of advanced pricing setup for repasse and discusses how to:

• Set up user-defined codes (UDCs).

• Set up automatic accounting instructions (AAIs).

• Set up next numbers.

• Set processing options for Address Book Additional Information - Brazil (P01012BR).

• Set up corresponding versions.

• Set up opening and closing terms for fiscal books.

• Set up cross-references for transaction nature codes.

• Set up company and branch/plant cross-references.

• Set up payment formats.

Understanding Advanced Pricing Setup for Repasse

The JD Edwards EnterpriseOne Advanced Pricing system from Oracle is integrated with the Brazil sales order tax calculator to compute:

• Trade discounts.

• Pricing rule discounts.

• ICMS repasse discounts.

• Free port zone discounts.

The system does not consider interest on installment payments when generating notas fiscais.

To work with advanced pricing for repasse, you must:

• Verify that a master record exists for the preference hierarchy.

• Verify that customer information is set up in the Address Book Master table (F0101) and the Customer Ledger table (F03B11).

• Verify that customer billing instructions are set up for customers.

• Verify that item information is set up in the F4101, F4102, and F41021 tables.

• Verify that you have set up customer and item price group names in the UDC 40/PC.

• Set up the Adjustment/Preference Name (40/TY) UDC table with special handling codes that the system uses to locate repasse discounts.

  See Setting Up UDCs for Tax Processing for Brazil.

Setting Up UDCs for Brazil

Setting up Brazil-specific UDCs enables you to use Brazil-specific functionality. You also set up some base software UDCs with Brazil-specific values.

Set up UDCs for:

• Supplier tax withholding.

• Electronic banking.

• Fiscal books and electronic GIA.

• Tax processing for IPI, ICMS, ICMS substitution, PIS/COFINS.

• Procurement processing.

• IN86 and IN89 tax reporting.

Setting Up UDCs for Supplier Withholding for Brazil

Set up these UDCs before you process supplier withholding for Brazil:

• Document Type (00/DT).

• Purchase Use (76/PU).

• Retired IR-PF (Income Tax) (76B/AP).

• Dependence Reduction IR-PF (76B/DP).

• Document Type INSS - Brazil (76B/DT).

• INSS Code (76B/IN.)

• Recieta Code (76B/IR).

• Service Code (76B/IS).

• Explanation of Installments.

• Tax Code A/P (76B/TR).

• Maximum Monthly INSS Amount (76B/TX).

• Cross Reference - Due Date Tax (76B/VE).

• Doc Types Unaffected Withholding (76B/UW).

Document Type - All Documents (00/DT)

You set up document types so that you can identify, group, and process similar transactions.

In addition to the hard-coded document types that are used throughout the software, you can set up document types that are based on your specific business needs. For example, you might set up these document types for Brazil:

To process INSS taxes, you must set up special handling codes for the Brazil-specific document types to specify an operation type and to create a cross-reference between the two-character document types that JD Edwards EnterpriseOne software uses and the three-character Brazilian document types.

Set up the special handling code with three or four characters. The system uses the first character to determine the operation type of the transaction, and uses characters 2, 3, and 4 to determine the Brazil-specific document type.

For example, you might set up a document type for a nota fiscal with a special handling code of CDUP in which C represents the operation type for an accounts payable voucher or an accounts receivable invoice and the characters DUP represent a document type that exists in the Document Type INSS - Brazil (76B/DT) UDC table. You must assign as characters 2, 3, and 4 a document type that appears in the 76B/DT UDC table.

This example illustrates a possible document type and special handling code:

Note. When you assign a code for a Nota Promissória, enter NP for characters 2 and 3, and leave character 4 blank.

If you do not set up special handling codes for Brazil-specific document types, the system uses these values when you process records for INSS taxes:

Important! The system does not validate the characters that you enter in the Special Handling Code field. To ensure accurate data for INSS tax reporting, you must ensure that the characters are valid and enter the four characters in the correct order.

Purchase Use (76/PU)

You set up purchase use codes for these supplier withholding taxes and contributions:

• INSS

• PIS/PASEP

• COFINS

• CSLL

You set up purchase use codes for INSS contributions in the Purchase Use (76/PU) UDC table to specify whether individuals and cooperatives are subject to INSS aggregation and retention contributions. You might set up different codes for different circumstances under which an individual or cooperative is subject to INSS aggregation and retention contributions. For example, set up different purchase use codes when the INSS contribution rate for one group of individuals differs from another group.

The system uses the values that you specify in the Description 02 field to determine the INSS contribution rate for aggregation and retention. The values that you enter for the Description 02 field must exist in the Tax Code table (F76B0401). You can enter a value for retention, for aggregation, or for both. You must enter a / (slash) after a value for retention and before a value for aggregation, even when you enter only one code.

This table includes examples of values for the Description 02 field:

When you run the Tax Calculation ISS, INSS, FUNRURAL program (R76B4310), the system uses the purchase use code that you enter in the Purchase Use Code processing option to determine how to apply INSS contribution rates. The system compares the purchase use code to the values in the F76B0401 table to obtain the contribution rate. If the purchase use code has two values in the Description 02 field, the system accesses the F760401 table twice:

• Once to obtain the rate for aggregation.

• Once to obtain the rate for retention.

If you do not complete the Purchase Use processing option, the system uses the purchase use code from the Purchase Order Detail Tag File - Brazil table (F76432) or the tax code for the supplier in the Address Book Brazilian Tag Table (F76011).

You also set up purchase use codes for PIS/PASEP, COFINS, and CSLL contributions in the 76/PU UDC table, and then use the Purchase Use Tax Setup program (P76B003) to create associations between the purchase use codes for PIS/PASEP, COFINS, and CSLL and the tax codes that exist in the F76B0401 table.

See Setting Up Purchase Use Codes for PIS/PASEP, COFINS, and CSLL Contributions.

See Setting Up UDCs for Procurement Processing for Brazil.

Retired IR-PF (Income Tax) (76B/AP)

Set up codes for income tax deductions for retired persons. Enter the amount of the deduction in the Description 01 field. The system uses the schedule to calculate income taxes for persons who are retired and who have provided a service that is included on a nota fiscal.

Dependence Reduction IR-PF (76B/DP)

Set up codes for the income tax deductions for the dependents of an individual. Enter the amount of the deduction in the Description 01 field. The system uses the codes when it calculates income tax for an individual who has provided a service that is included on a nota fiscal.

Document Type INSS - Brazil (76B/DT)

You use the values in the Document Type INSS - Brazil (76B/DT) UDC table to populate the Document Type INSS field in the INSS/IN89 Mntn 3^rd Party Svcs Inbound NF program (P76B200H). The system prints the value in the Observations column for the cover letter that accompanies the text file, which is generated by the Services Third Parties Notas Fiscais Flat File - Header program (R76B300H). These values are hard-coded in the system:

You must set up these values in the Document Type - All Documents (00/DT) UDC table and assign valid special handling codes to the codes in the 00/DT UDC table.

INSS Code (76B/IN)

Set up codes for the schedule of INSS taxes. The system uses these codes when calculating taxes for services that are on a nota fiscal.

Recieta Code (76B/IR)

The system uses the values in the Recieta Codes UDC table when it calculates the income tax for an individual or corporate entity that has provided a service that is included on a nota fiscal. For individuals, the system uses the DIPAM Table (76/DP) and the Retired IR-PF (Income Tax) (76B/AP) UDCs to reduce the amount of the income tax in this UDC, if applicable.

These values are hard-coded for Brazilian localization:

Service Code (76B/IS)

Set up codes that identify the type of service for a city.

Explanation of Installments (76B/OB)

The system prints the codes in the 76B/OB UDC table on vouchers to identify taxes.

The descriptions that you associate with the codes appear on the voucher. Values 00 through 07 are hard-coded in Brazilian localization, but you can change the descriptions to suit your needs.

The Tax Code A/P UDC (76B/TR) uses specific codes for the various taxes. You can set up the codes for the 76B/OB UDC in the same way to make it easier to remember the description that goes with each code.

Tax Code A/P (76B/TR)

The system uses the codes in UDC 76B/TR to identify taxes.

These values are hard-coded for this UDC:

Maximum Monthly INSS Amount (76B/TX)

You set up the 76B/TX UDC table with the maximum withholding amounts for INSS taxes for each job type. You must set up a percentage and corresponding amount in the 76B/TX UDC table for each INSS retention tax percentage that exists in the Tax Code (F76B0401) table. Enter the INSS retention percentage from the F76B0401 table in the Codes field in the UDC table, and enter the maximum withholding amount in the Description 01 field.

Note. Enter the percentage amount as an integer with three decimals. For example, for 10 percent, enter 10.000 instead of .10.

When you run the Tax Calculation ISS, INSS, FUNRURAL program, the system compares the calculated INSS retention to the values that you specify for the INSS maximum amount to determine the amount of INSS retention.

Cross-Reference - Due Date Tax (76B/VE)

The system uses the Cross-Reference - Due Date Tax code when it calculates the due date for IR taxes. The code comprises four digits. The first two digits are the month, and the second two digits are the year. You should set up codes for each month/year combination for which you have notas fiscais. You enter a payment term for the description of the code.

Doc Types Unaffected Withholding (76B/UW)

Use this UDC to specify the document types for which the system does not calculate taxes. The system ignores the specified document types when you run the Tax Calculation ISS, INSS, FUNRURAL program (R76B4310) or the Create Payment Groups program (R04570).

Setting Up UDCs for Electronic Banking for Brazil

Before using electronic banking, you must set up UDCs that the system uses to process inbound and outbound automatic receipts.

Record Type (00/RD)

Record types identify the components in the flat files that you use to electronically transfer banking data.

For example, you might set up these record types:

Transaction Type (00/TT)

The two transaction type UDCs that are hard-coded for use with the Brazil electronic banking applications are listed in this table:

Bank Codes (76/BC)

Set up UDCs for the banks with which you do business. The system relates a three-digit code to a bank you set up. For example, you can set up these codes:

Bank Record Status (76/BS)

Set up UDCs for bank status to track the status of the accounts receivable information that you send to the bank for processing.

For example, you can set up these codes:

Bank Receive Code (76/RC)

Set up receive transaction status codes to indicate the status of the duplicata that you receive from the bank that is responsible for collecting the Accounts Receivable invoices. When the bank sends a file to you to confirm the receipt of the transmission, the system processes the files that contain a 1 in the Special Handling field of this UDC. If the system does not find a 1 in the Special Handling field, it does not process the return transaction.

Note. You should establish these codes with the bank.

Bank Send Code (76/SC)

Set up send transaction status codes to indicate the status of the duplicata that you send to the bank that is responsible for collecting the Accounts Receivable invoices. For example, you can set up these document types:

You should establish these codes with the bank.

Dynamic Formatter Attributes (76B/F1)

You define layout attributes for electronic banking in the Dynamic Formatter Attributes UDC table (76B/F1). Attributes that begin with an S are constants. For example, S0002 is the attribute for zeros; and S0003 is the attribute for blanks. Attributes that begin with a Z are defined by each transaction application. For example, Z0002 is the Company Tax ID and Z0009 is the Company Name.

Some of the hard-coded attributes have a value in the Special Handling field. A value of 1 means that information originating in the JD Edwards EnterpriseOne system is cross-referenced to information provided by the bank. A value of 2 means that information originating with the bank is cross-referenced to information in the JD Edwards EnterpriseOne system.

This table describes the predefined attributes:

Decimal Format (H98/DE)

The system uses the Decimal Format UDC to separate a string of numbers when the Data Type for a field is Math Numeric. You must set up codes to specify the acceptable separators for decimals. For example, you can set up these codes:

Date Separator (H98/DS)

The system uses the Date Separator UDC to format a string of numbers that the system will use as a date. You must set up codes to specify the acceptable separators for dates.

For example, you can set up these codes:

Setting Up UDCs for Fiscal Books and Electronic GIAs for Brazil

The JD Edwards EnterpriseOne system provides several UDCs that are specifically for fiscal books and electronic GIAs (Guia de Informação Apuração de ICMS). You must set up these UDCs for the system to produce accurate fiscal books.

Activity/Status Codes (40/AT)

To advance an order line through the order process, you must create order activity rules to establish a sequence of processing steps.

Note. You must set up codes 997 for canceled notas fiscais.

The system processes an order line based on the order activity rules that you set up for the order type and line type combination. For example, you can set up these order activity rules for Brazil:

Documents Using Text Messages (40/OR)

Set up codes to identify programs that use text messages. The system uses these codes when you use the Preference Profiles Inquiry by Customer/Item program (P40300).

Fiscal Book Code (76/FB)

The system uses the Fiscal Book Code UDC to identify types of fiscal books. It also includes a code that you use to identify text for a correction request to a nota fiscal.

These codes are hard-coded:

Flag - Free Port Zone (76/FR)

Set up free port zone codes to indicate whether a company is located in a free port zone. For example, you can set up these free port zone codes:

Sales Reverse - Brazil (76/RD)

Set up receive document types for sales reverse to indicate which line types you use to reverse a sale. For example, you can set up document type: VC - Sales Reverse - Brazil

Sales Return - Brazil (76/SR)

Set up return document types for sales return to indicate which line types you use for sales returns. For example, you can set up these document types:

DIPI Annual Movements Report (76B/DA)

The system uses the DIPI Annual Movements Report UDC table (76B/DA) to determine how to write data to the DIPI Annual Movements report (R76B4011). The DIPI Annual Movements report lists the customers who comprise the top 80 percent of the sales that are generated for a company.

The value in the Codes field in the UDC table is the transaction nature code (data item BRNOP). The values in the Description 01 and the Description 02 fields are the Ficha numbers (section numbers within the DIPI Annual Movements report) to which the system writes the customer information.

The system reads the value in field BRNOP in the F76111B table and compares it to the values in the 76B/DA UDC table. It then determines the Ficha section where data about the customer is included.

This table lists examples of codes:

Decendio (76B/DE)

Use these codes to group IPI taxes for a 10-day period. Several fiscal book programs use these codes.

DIPI Inbound Report Line Definitions (76B/DI)

The system uses the DIPI Inbound Report Line Definitions UDC table (76B/DI) to determine how to write data to the FICHA 23 - Entradas e Crédititos report that is produced by the DIPI Resumes and Statements program (R76B4006).

The value in the Codes field in the UDC table is the transaction nature code (data item BRNOP). The value in the Description 01 field is the Ficha (report), and the value in the Description 02 field is the line number of the report.

When you run the DIPI Summaries and Statements program, the system reads the value in the Transaction Nature Code field from the F76111B table and compares it to the values in the 76B/DI UDC table. It then determines the report and line for which to print the data.

This table lists examples of codes:

DECLAN Codes (76B/DM)

Use these codes to group tax amounts for the DECLAN Annual Report (R76B4015). In the Codes field, enter a code that is a concatenation of each transaction nature, plus a suffix. You must enter the demonstrative code, by which the tax amounts are summed, in the Description 01 field. To sum the tax amounts by more than one demonstrative code, enter all of the codes in the Description 01 field and separate them with spaces.

This table shows an example of DECLAN codes:

DIPI Outbound Report Line Definitions (76B/DO)

The system uses the DIPI Outbound Report Line Definitions UDC table (76B/DO) to determine how to write data to the FICHA 24 - Saidas e Débitos report that is produced by the DIPI Summaries and Statements program.

The value in the Codes field in the UDC table is the transaction nature code (data item BRNOP). The value in the Description 01 field is the Ficha (report), and the value in the Description 02 field is the line number of the report.

The system reads the value in the Transaction Nature Code field from the F76111B table and compares it to the values in the 76B/DO UDC table. It then determines the report and line for which to print the data.

This table lists examples of codes:

Invoice Type (76B/IT)

You use the Invoice Type codes to specify whether a transaction was completed as a cash or an installment transaction. The values are hard-coded:

Related to Energy and Petroil (76B/NS)

The system uses the codes in the Related to Energy and Petroil UDC table to accumulate amounts on notas fiscais that are related to energy and petrol. The Codes field contains a code that is a concatenation of a transaction nature code plus a suffix. The system uses these codes in the Inbound Interstate Operation form (R76B4009) and the Outbound Interstate Operation form (R76B4010) programs.

These values are hard coded for Brazilian localization:

Resumes and Demonstratives (76B/RD)

Use these codes to group tax amounts for the DIPI - Resumes and Demonstratives program. In the Code field, enter a code that is a concatenation of each transaction nature plus a suffix. You must enter the demonstrative code by which the tax amounts are summed in the Description 1 field. If you need to sum the tax amounts by more than one demonstrative Code, enter all of the codes in the Description 1 field and separate them with spaces.

This table shows examples of resumes and demonstratives codes:

Demonstration Codes - Verification (76B/TD)

Use demonstration codes to identify debit and credits for the Verification of IPI report (R76B4002) and the Verification of ICMS report (R76B4003). For example, you could set up these codes as indicated in the table:

Fiscal Tax Type (76B/TI)

Use this code to specify the type of fiscal book information that the system processes when you add information in the inbound or outbound Nota Fiscal Maintenance program (P76B1001).

Sintegra CFOP Cross-Reference (76B/TN)

Use these codes to associate a transaction nature/suffix combination with a nota fiscal model. The Generating ICMS Magnetic Files - Sintegra (Systema Integrado de Informacoes) program (R76B201) uses the codes that you set up, or the program uses 01 if the transaction nature/suffix combination is not in this UDC table.

The system calculates the ICMS Tax Situation code by displaying a one-digit value from the Item Origin UDC (76/IO) along with a calculated two-digit value that is based on the ICMS tax criterion of the item. The three-digit value is the ICMS Tax Situation Code.

The algorithm for calculating the ICMS Tax Situation code uses the special handling code in the Transaction Nature UDC (76/TN) to determine the ICMS Tax Situation code when an item is not taxed or has deferred tax. The algorithm then populates the Tax Situation field (data item BST1) with a three-digit tax situation code.

The system uses the ICMS Tax Situation code for the accounting of deferred ICMS taxes in the fiscal books.

For example, you could set up these codes:

State & Province Codes (00/S)

You set up the State & Province Codes (00/S) UDC so that system associates a two-digit code to the state or province. When you use the Print GIA program (R76B131) and the Send GIA program (R76B132) to create the flat file to send for ICMS tax reporting, the State & Province Codes UDC table must also include a special handling code so that the system can provide numeric characters for the state.

For example, you can set up these state and province codes for Brazil:

GIA Taxation Rules (76B/G1)

You associate taxation rules to the companies that you include in company profiles that you create for ICMS tax reporting. You set up values in the GIA Taxation Rules UDC (76B/G1) to specify how a company is taxed. For example, you might set up these codes:

GIA Type (76B/G2)

You use the GIA Type UDC (76B/G2) to specify whether a GIA is a substitute submission. For example, you might set up these codes:

GIA CFOP for Oil & Energy (76B/G3)

Set up this UDC with the transaction nature codes that you use for the oil and energy industries. The system uses the codes that you set up when it processes ICMS Tax Substitution amounts for transactions involving oil and energy. For example, you might set up these codes:

GIA Occurrence Type (76B/G4)

You use the GIA Occurrence Type UDC (76B/G4) to specify whether a transaction is assessed by tax substitution. For example, you might set up these codes:

GIA Record Type (76B/G6)

The electronic GIA must be sent in a government-required layout that contains specified record types. The data for each record type is sent to the government in a flat file. The record types for the electronic GIA are:

Setting Up UDCs for Tax Processing for Brazil

You set up UDCs to define the taxes that apply to items and services, the rate of the taxes, and other information required by the system.

Person Corporation Code (H00/TA)

These values in H00/TA are valid for Brazil localizations only. These value represent the nature of an address book entity and are hard coded in UDC table H00/TA.

• 1: Individual

• 2: Corporate Entity

• 3: Both an Individual and Corporate Entity

Adjustment/Preference Name (40/TY)

You must set up the Adjustment/Preference Name (40/TY) UDC table with price adjustment names and a special handling code that corresponds to the price adjustment name that the JD Edwards EnterpriseOne Advanced Pricing system uses. The tax calculator uses these adjustment names to determine which category codes to use. In this list, the first name is the UDC and the second name is the special handling code.

Note. The special handling code names are identical to names found in UDC table 76/CN, but the system uses them for different purposes.

This table lists and describes the codes:

The names of the pricing adjustments are found in the Adjustment/Preference Name (40/TY) UDC table. You must manually add this special handling code name after setting up a new adjustment. For example, for the tax calculator to find the repasse discount (REPASSE), you must enter PREPAS as a special handling code in the special handling column of UDC 40/TY.

Code - Taxpayer (76/CC)

In Brazil, different tax rules apply to different types of taxpayers. To identify the types of taxpayers in your system, you use the codes in UDC table 76/CC. These codes are hard coded for Brazil localization:

Category Code Name/Code (76/CN)

You can set up address book and item category codes for use in Brazilian tax calculations. Brazilian localization reserves seven category codes in the JD Edwards EnterpriseOne Address Book system and the item tables. To avoid conflicting with the category codes that are already in use, localization dynamically allocates the category codes that it requires.

Brazilian localization requires that seven category codes be set up. In UDC table 76/CN, each category code has a hard-coded name that the program uses to establish a relationship with the category code variable in the tables.

You set up UDCs for:

• Address book category codes.

• Item Nature and Item Branch/Plant category codes.

• Identification of category codes that store information which is specific to Brazil.

These category codes in UDC table 76/CN are hard-coded for Brazil localization:

Tax Code (76/CT)

Set up tax codes to identify the taxes that apply to the specific business needs. For example, you can set up these codes:

These codes should match the codes in the F7617B table.

GL/Class Code Cross-Reference (76/GL)

You must set up UDC table (76/GL) for Brazilian tax accounting. When you set up the GL/Class Code Cross-Reference UDC, complete the Codes field by entering the first three characters of the tax name followed by four characters that represent the GL class of the item or service at the branch/plant level.

This table displays examples of GL cross-reference codes that use GL class code IN30:

GL/Class Code Cross-Reference (76/GL)

For PIS/PASEP and COFINS tax credits, you set up codes in the GL/Class Code Cross-Reference (76/GL) UDC table to create a cross-references between GL offset accounts and GL classes for suppliers, fiscal companies, and tax codes instead of setting up a cross-reference between the GL offset account and the GL class for an item or service.

When you set up the GL/Class Code Cross-Reference UDC for PIS/PASEP and COFINS tax credits:

• Complete the Codes field by entering the first three characters of the tax name followed by four characters that represent the GL category code that is associated with the company/transaction type/account combination for the AAI.

  Note. For PIS/PASEP tax credits, you must enter PIS for the first three characters of the code COF for the first three characters for COFINS tax credits.

  The first three characters of the codes must be completed as:

  Tax, Cost, or Discount	Code
  COFINS	COF
  ICMS Differential	DIF
  Expenses	EXP
  Freight	FRT
  ICMS	ICM
  ICMS Recoverable	ICR
  IPI	IPI
  IPI Recoverable	IPR
  PIS/PASEP	PIS
  ICMS Repasse Discount	REP
  ICMS Substitution Recoverable	SBR
  Insurance	SEG
  ICMS Substitution Tax	SUB
  Trade Discount	TDC

• Create codes for default AAIs that point to a specific default account. The system first searches for a code with a specific GL class in the last four characters (for example, COFGL30, where GL30 is the supplier's GL class). If a specific code that includes the item's GL class does not exist, then the system locates the default code (for example, COF****).

• Complete the Description 01 field with the GL category code that is associated with the GL offset account for the JD Edwards EnterpriseOne Distribution system AAI to which the system posts the transaction.

See Setting Up UDCs for Procurement Processing for Brazil.

ICMS Code - Fiscal Value (76/II)

The fiscal value codes for ICMS tax indicate whether transactions are taxable, exempt, or eligible for a reduced tax rate. You can also use this code to indicate whether the tax can be recovered for a transaction. ICMS fiscal value codes for taxable transaction have a 1 in the Special Handling field.

This table displays the ICMS fiscal value codes that are hard coded for Brazilian localization:

Item Origin (76/IO)

The origin flag represents the origin of the item. These values are hard-coded for Brazil:

IPI Code - Fiscal Value (76/IP)

The fiscal value codes for IPI tax indicate whether transactions are taxable, exempt, or eligible for a reduced tax rate. You can also use this code to indicate whether the tax can be recovered for a transaction. IPI fiscal value codes for taxable transactions have a 1 in the Special Handling field.

This table displays the IPI fiscal value codes that are hard coded for Brazilian localization:

States That Add IPI/Imported (76/SI)

Set up this UDC to identify which Brazilian states do not add IPI to the ICMS basis of imported products. The UDC codes consists of a two-character abbreviation of the state in the Code field and the full name of the state in the Description 01 field.

ICMS Tax Substitution Markup (76/SM)

Set up this UDC to identify the items to which ICMS Substitution applies. These values are hard-coded in Brazilian localization:

Tax Summary (76/ST)

The codes in the Tax Summary UDC (76/ST) represent the type of tax payment that is applied to an item. These values are hard-coded.

This table displays the codes for the Tax Summary UDC:

Transaction Nature (76/TN)

The algorithm for calculating the ICMS Tax Situation code uses the special handling code in the Transaction Nature UDC (76/TN) to determine the ICMS Tax Situation code when an item is not taxed or has deferred tax. The algorithm then populates the Tax Situation field (data item BST1) with a three-digit tax situation code. You must set up a special handling code of 10 for items that are not taxed, and a code of 01 for items that have deferred tax.

See Setting Up Transaction Nature Codes.

Fiscal Amount Codes - ICMS (76B/CV)

Use these codes to specify how ICMS tax applies to an item. The JD Edwards EnterpriseOne system provides these codes for this UDC table:

Fiscal Value Codes - IPI (76B/CW)

Use these codes to specify how IPI tax applies to an item. The JD Edwards EnterpriseOne system supplies these codes for this UDC table:

Services Code (76B/IS)

Set up codes for Imposto sobre Serviços (ISS) taxes. You must set up codes for each type of service for each city of origin for services that appear on a nota fiscal.

Setting Up UDCs for Procurement Processing for Brazil

Before you use the JD Edwards EnterpriseOne Procurement system, set up these UDCs.

Average Cost Calculation (40/AV)

Set up this UDC with the programs that the system runs to process taxes during purchase order processing.

This UDC links the base software for the JD Edwards EnterpriseOne Procurement system to the Brazil localization. You must add this codes to the UDC table:

Item Category Code 06 (41/06)

JD Edwards EnterpriseOne software provides hard-coded values that the system uses to indicate whether an item is manufactured or purchased. The system uses these values to determine the transaction nature of the item.

G/L Posting Category (41/9)

Set up codes for the general ledger class descriptions for the distribution AAIs. The G/L Posting Category UDC table (41/9) controls which general ledger accounts receive the currency amount of inventory transactions for an item.

Example of codes for Brazil are:

Category Code Name/Code (76/CN)

JD Edwards EnterpriseOne software provides hard-coded values for this UDC. The system uses the NATUR value in the JD Edwards EnterpriseOne Procurement system.

GL/Class Code Cross-Reference (76/GL)

Set up UDC table 76/GL for Brazilian tax accounting. 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. The system uses these four key fields to associate these AAIs with an account:

• Company

• AAI

• Document type

• GL class code

When you set up the G/L Code Cross-Reference UDC, complete the fields as follows:

• Complete the Codes field by using the first three characters of the tax name followed by four characters that represent the general ledger class of the item or service at the branch/plant level.

  The first three characters of the codes must be completed as illustrated in this table:

  Tax, Cost, or Discount	Code
  ICMS Differential	DIF
  Expenses	EXP
  Freight	FRT
  ICMS	ICM
  ICMS Recoverable	ICR
  IPI	IPI
  IPI Recoverable	IPR
  ICMS Repasse Discount	REP
  ICMS Substitution Recoverable	SBR
  Insurance	SEG
  ICMS Substitution Tax	SUB
  Trade Discount	TDC

• Create codes that for default AAIs that point to a specific default account.

  The system first searches for a code with a specific general ledger class in the last four fields (for example, EXPIN30, where IN30 is the item general ledger class). If a specific code that includes the item's general ledger class does not exist, then the system locates the default code (for example, EXP****).

• Complete the Description 01 field with the general ledger offset account for the JD Edwards EnterpriseOne Distribution system AAI to which the system posts the transaction.

Nota Fiscal Source (76/NF)

The JD Edwards EnterpriseOne software provides hard-coded values that identify different notas fiscais in the system.

Setting Up UDCs for IN86 and IN89 Tax Reporting

Set up the UDCs described in this section before you process IN86 or IN89 tax reporting.

Document Type - All Documents (00/DT)

You set up document types so that you can identify, group, and process similar transactions.

In addition to the hard-coded document types that are used throughout JD Edwards EnterpriseOne software, you can set up soft-coded document types that are based on the specific business needs. For example, you can set up the document types shown in this table for Brazil:

You set up special handling codes for the Brazil-specific document types to specify an operation type and to create a cross-reference between the two-character document type that JD Edwards EnterpriseOne software uses and the three-character Brazilian document types. The system uses the operation type and the cross-reference when processing records for IN86 and IN89 tax reporting.

You set up the special handling code with three or four characters. The system uses the first character to determine the operation type of the transaction; and uses characters 2, 3, and 4 to determine the Brazil-specific document type. For example, you might set up a document type and special handling codes as shown in this table:

For IN89 tax processing, you must assign as characters 2, 3, and 4 a document type that appears in the Document Type INSS - Brazil (76B/DT) UDC table.

Note. When you assign a code for a Nota Promissória, you enter NP for characters 2 and 3; leave character 4 blank.

This table describes the values the system uses when you process records for IN86 or IN89 tax reporting if you do not set up special handling codes for Brazil-specific document types:

Important! The system does not validate the characters that you enter in the Special Handling Code field. To ensure accurate data for IN86 and IN89 tax reporting, you must ensure that the characters are valid and enter the four characters in the correct order.

Codes - IN68 (76/IN)

Set up the codes that the Codes Table - IN68 (F76B80) uses to validate records in the IN68 work files. When you run any of the IN68 workfile generation programs, the system writes the appropriate code to the Codes Table - IN68 only if the code exists in the 76/IN UDC.

Purchase Use (76/PU)

Set up purchase use codes to identify how the item being purchased will be used, or in some instances, to specify the type of transaction. The purchase use of the item determines the tax recoverability of the item. For example, you can set up codes to identify purchases as:

Note. These codes are user-defined, except for CON and AF. Both CON and AF are hard-coded in the system.

The system uses the first four characters in the Special Handling Code field to determine the tax recoverability of the purchased item. Use position 1 for IPI tax and position 2 for ICMS tax. Position 3 is reserved for future use. For positions 1, 2, and 3, enter 1 for recoverable and 0 (zero) for nonrecoverable taxes.

The system uses position 4 of UDC table (76/PU) for items that are purchased for manufacturing or purchased for resale. The fourth position determines the suggested Transaction Nature code for those companies to which ICMS Substitution applies. Enter 1 in position 4 when buying or transferring items for manufacturing purposes. Enter 2 in position 4 when buying or transferring items for resale purposes.

See Setting Up UDCs for Supplier Withholding for Brazil.

Cancel Situation (76B/CS)

You use the Cancel Situation UDC (76B/CS) to specify whether a transaction was canceled. The values shown in this table are hard-coded:

Packing Materials (76B/EM)

Set up codes to identify the packing materials that appear on notas fiscais. For example, you can set up the codes shown in this table:

Freight Mode (76B/FM)

You use the Freight Mode UDC (76B/FM) to specify the method of freight. The values shown in this table are hard-coded:

Inventory Status (76B/IV)

You use the Inventory Status UDC (76B/IV) to specify the ownership and location of inventory. The values shown in this table are hard-coded:

Fiscal Messages/Observations (76B/M1)

Set up codes for messages that will appear in the fiscal books and on IN68 reports. When you enter the codes in certain processing options for fiscal books or IN68 reports, the system prints the message that is associated with the code on the report or fiscal book.

Nota Fiscal Document Model (76B/MD)

You use the Nota Fiscal Document Model UDC (76B/MD) to specify the model of the nota fiscal that you used for the transaction. For example, you might set up these values:

Merchandise Movement (76B/MM)

You use the Merchandise Movement UDC (76B/MM) to specify when merchandise is moved from one location to another. The values shown in this table are hard-coded:

Nature of Document Type - BR (76B/ND)

You use the Nature of Document Type - BR UDC (76B/ND) to specify whether the transaction was completed by using a nota fiscal. The values shown in this table are hard-coded:

End Items (76B/PA)

Set up codes to identify the type of end items that you ship. For example, you can set up these codes:

Raw Materials (76B/SC)

Set up codes to represent the types of raw materials that you use. For example, you could set up the codes as shown in this table:

Storage Control Document Type (76B/SD)

You use the Storage Control Document Type UDC (76B/SD) to specify the type of operation. The values shown in this table are hard-coded:

Merchandise Movement (76B/MM)

You use the Merchandise Movement UDC (76B/MM) to specify when merchandise is moved from one location to another. The values shown in this table are hard-coded:

End Items (76B/PA)

Set up codes to identify the type of end items that you ship. For example, you can set up these codes:

Raw Materials (76B/SC)

Set up codes to represent the types of raw materials that you use. For example, you could set up the codes as shown in this table:

Storage Control Document Type (76B/SD)

You use the Storage Control Document Type UDC (76B/SD) to specify the type of operation. The values shown in this table are hard-coded:

Volume Type (76B/VT)

You use the Volume Type UDC (76B/VT) to specify the type of container for bulk items. For example, you might set up the values as shown in this table:

Business Unit Reporting Code 30 (00/01 - 00/30)

The Generate ICMS Magnetic Files - Sintegra program (R76B201) and the IN86-Filter for Inventory Records program (R76B100B) require that you set up a branch/plant category code with values to store inventory status information. For example, you might set up UDC 00/30 as the Business Unit Reporting Code 30 UDC.

The Branch/Plant (Business Unit) Category Code processing option uses the Business Unit Reporting Code 30 to determine how to process inventory records.

This table shows the valid values for the Business Unit Reporting Code 30 UDC:

After you set up a UDC category code with the Business Unit Reporting Code 30 values, you must associate a value from the UDC to the business units for which you report IN86, IN89, or ICMS data.

Setting Up AAIs for Tax Processing for Brazil

Set up these AAIs for Brazilian transactions:

• Set up the standard JD Edwards EnterpriseOne Distribution system AAIs to account for Brazilian taxes.

  For example, the system uses AAI 4385 for debits and AAI 4390 for credits for Programa de Integração Social/Programa de Formação do Patrimônio do Servidor Público (PIS/PASEP) and Contribuição para Financiamento da Seguridade Social (COFINS) taxes.

• To account for ICMS, ICMS substitution, and IPI tax calculations, set up AAIs 4210, 4220 4240, 4285, 4290, 4310, 4385, and 4390.

• To account for Brazilian taxes, freights, expenses, insurance, and discounts, set up AAIs 4220 and 4240 in the JD Edwards EnterpriseOne Sales Order Management system and set up AAIs 4385 and 4390 in the JD Edwards EnterpriseOne Procurement system.

• 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.

• To account for taxes when closing a nota fiscal, set up the Cost/Expense Adjustments AAI (4385) and the Cost/Liability Adjustments AAI (4390).

Setting Up Next Numbers for Brazil

This section provides an overview of next numbers for Brazil and discusses how to:

• Set up next numbers for notas fiscais..

• Set up next numbers for electronic GIAs.

• Set up next numbers for Fiscal Books.

Understanding Next Numbers for Brazil

You must set up next numbers for notas fiscais, electronic GIAs, and fiscal books to correctly process sales information for Brazil.

Next Numbers for Notas Fiscais

You set up temporary next numbers for notas fiscais. These numbers are assigned to you by the government. The system uses the temporary next numbers when you run the Generate Nota Fiscal program (R76558B). After you review the temporary numbers for notas fiscais and make any necessary corrections, you run the Print Nota Fiscal program (R76560B) to generate the nota fiscal that accompanies merchandise or services. The Print Nota Fiscal program prints on the nota fiscal a next number from the block of nota fiscal numbers that are assigned to a company by the government.

Next Numbers for Electronic GIAs

You set up next numbers for electronic GIAs by completing the tenth next numbering position. The system uses the next number as part of the String Key field data item GISTR) when you run the Extract GIA program (R76B130) or when you manually create a new GIA.

Next Numbers for Fiscal Books

Each type of fiscal book that you generate must be sequentially numbered and can contain no more than 500 pages. You use the Fiscal Books Next Number program (P7602B) to specify the book number, the starting page number, and the maximum number of pages for each book.

Next Numbers for Remessa

Remessa is the remittance process for accounts receivable in which you send customer account information to a bank through an electronic media or the internet for collection purposes. After the bank receives the customer account information, the bank sends the customer a collection document called a boleto. The boleto indicates the amount that is owed to you. The customer uses the boleto to determine the amount that must be remitted to you.

You must set up next numbers in system 76 for remessa so that each transaction that you send to the bank is uniquely identified.

Forms Used to Set Up Next Numbers for Brazil

Setting Up Next Numbers for Notas Fiscais

Access the Nota Fiscal Next Number Revision form.

Fiscal Company	Enter the company in which to set up next numbers for notas fiscais.
NF Document Type (nota fiscal document type)	Enter a value from UDC table 00/DT that identifies the origin and purpose of a transaction. The prefix for sales order documents is S.
NF Series (nota fiscal series)	Enter a two-character number that along with the nota fiscal next number identifies a nota fiscal. This field is the second key that the system uses to access a specific nota fiscal.
Nota Fiscal Next Number	Enter a six-character number that identifies a nota fiscal. This number consists of the nota fiscal next number and the nota fiscal series.
Number of Detail Lines per Page	Enter the maximum number of lines that can be printed in the detail section of the nota fiscal.

Setting Up Next Numbers for Electronic GIAs

Access the Set Up Next Numbers by System form.

Setting up Next Numbers for Fiscal Books

Access the Fiscal Books Next Number Revision form.

Report Type	Enter a UDC (76/FB) from the Fiscal Book Code table that identifies the type of fiscal book.
Book Number	Enter the next number that the system uses to automatically assign numbers. Next numbers can be used for many types of documents; they include voucher numbers, invoice numbers, journal entry numbers, employee numbers, address numbers, and so on. You must adhere to the next numbers that have been preestablished unless custom programming is provided.
Next Page Number	Enter the number of the page that follows the opening statement. The system automatically inserts the opening statement beginning on page one.
Maximum Number of Pages	Enter the maximum number of pages in the fiscal book. Brazilian government regulations limit the size of a fiscal book to 500 pages.
Print Date	Review the date the fiscal book is printed. This value is system-assigned.

Setting Processing Options for Address Book Additional Information - Brazil (P01012BR)

These processing options specify whether the system validates, allows duplicates for, and displays error or warning messages for CGC and CPF numbers. You can also specify whether the system validates the state tax ID in address book records.

Edits

Setting Up Corresponding Versions of Programs for Brazil

Some country-specific functionality requires that you create versions of the same name for a country-specific programs and a base software program. For example, to have the system access the processing options for a country-specific voucher program, you might need to set up a version named XYZ for the country-specific voucher program, and a version named XYZ of the Standard Voucher Entry (P0411) program.

Set up corresponding versions for these programs:

Setting Up Opening and Closing Terms for Fiscal Books for Brazil

This section provides and overview of opening and closing terms and discusses how to add opening or closing terms for fiscal books.

Understanding Opening and Closing Terms

Before writing any fiscal book, you must include the opening term and the closing term for the book on the first and last pages of the book, respectively.

The opening term of the book should include this information:

• Purpose of the book.

• Number of the book.

• Number of pages.

• Business to which the book pertains.

• Business address.

• Number assigned to the book by the Junta Comercial and the date when the number was assigned.

• CGC tax ID number.

These examples of an opening term and a closing term were taken from Departmento Fiscal Modelo (Ribeiro, Wanderlei Ban, São Paulo: Informações Objetivas Publicações Jurídicas Ltda., 1994, pp.1-2 in the section titled IV-Dos Livros Fiscais). This model is an opening term:

Termo de Abertura

Este livro que servirá como Diário Geral, n° 3, contém 200 folhas, numeradas tipograficamente, da São José Ltda., sita na Rua São Joaquim, 33, na Cidade de Cruz Torta-SP, registrada na Junta Comercial sob o n° 456378957, na seção de 23.12.66, inscrita no Cadastro Geral de Contribuintes sob o n° 56.678.978/0001-90 e na Fazenda Estadual sob o n° 122.345.234.111.

The closing term contains the:

• Purpose of the book.

• Number of the book.

• Number of pages.

• Name of the company.

This model is a closing term:

Termo de Encerramento

O presente livro serviu como Diário Geral, n° 3, com 200 folhas, numeradas tipograficamente, da São José Ltda.

Both the opening and closing terms should contain the date and signature of the business owner and the business' accountant.

Use these variables if you want the system to enter default values into the opening or closing terms:

• ###### (six # signs) - Use a default book number when you run the Transaction Journal report.

• @@@@@@ (six @ symbols) - Add the page number of the closing term to the statement.

• $$$$$$ (six $ signs) - Add either the issue date or the current date to the term.

You enter the opening and closing terms in the Media Object form.

Form Used to Set Up Opening and Closing Terms

Adding an Opening or Closing Statement

Access the Fiscal Books - Work With Fiscal Books Next Number form.

1. Click Find to view available records, and then select a record.

2. To add an opening or closing statement to the fiscal book, select Opening Statement or Closing Statement from the Row menu.

3. On Fiscal Books - Opening Statement or Fiscal Books - Closing Statement, click OK.

4. On Media Object Viewer, click Text, enter the opening or closing statement, and then click Save.

Setting Up a Cross-Reference for Transaction Nature Codes for Brazil

This section provides an overview of cross-references for transaction nature codes and discusses how to set up a cross-reference.

Understanding Cross-References for Transaction Nature Codes

JD Edwards EnterpriseOne uses three digits for transaction nature codes. Some states in Brazil require a five-digit code. You can use the Setup Transaction Nature Cross Reference program (P76B2001) to create a cross-reference between the standard three-digit codes in the JD Edwards EnterpriseOne software the five-digit codes that are required for Brazil. You set up the cross-references by company.

Forms Used to Set Up a Cross-Reference

Setting Up a Cross-Reference for Transaction Nature Codes

Access the CFOP Cross References form.

From CFOP	Enter a three-character code that for tax purposes, identifies a type of transaction. To enter values for the transaction nature code, use this convention: X.YY where X defines the origin of the transaction (inbound or outbound), and YY defines the transaction as a whole, such as a sales transaction. Values for X are: 1:Inbound, inside the state. 2:Inbound, other states. 3:Inbound, import. 5:Outbound, inside state. 6:Outbound, other states. 7:Outbound, export. Examples of transaction nature codes: 511: In-state sale. 611: Out-of-state sale.
Suffix	Complete this two-character field in conjunction with the transaction nature code to identify the complementary implications of a type of transaction. For example, the suffix might indicate that a certain type of transaction represents a inventory change, or that a transaction is eligible for a certain type of tax. Values might include: 01: Bonus 02: Demo 03: Sample 04: Return merchandise 05: Back order 06: Donation Examples of transaction nature codes with suffixes: 511 01: In-state sale, bonus. 511 05: In-state sale, back order.
To CFOP	Use this three-character code to indicate different types of transactions for tax purposes. To enter values for the transaction nature code, use the convention: X.YY where X defines the origin of the transaction (inbound or outbound) and YY defines the transaction as a whole, such as a sales transaction. Values for X are: 1:Inbound, inside the state. 2:Inbound, other states. 3:Inbound, import. 5:Outbound, inside state. 6:Outbound, other states. 7:Outbound, export. Examples of transaction nature codes (values for YY) include: 511: In state sale. 611: Out of state sale.
Effective Date	Enter the date on which you confirm that a specific order line was shipped.

Setting Up Company and Branch/Plant Cross-References for Brazil

This section provides an overview of company and branch/plant cross-references for Brazil and discusses how to set them up.

Understanding Company and Branch/Plant Cross-References for Brazil

In Brazil, the government requires every business unit (branch/plant) that belongs to a fiscal company to have a separate tax identification number. For reporting purposes, the government requires companies to verify that every business unit is assigned to only one fiscal company.

To associate business units with a fiscal company and prevent assigning the same business unit to more than one fiscal company, you set up fiscal company and branch/plant cross-references. You must set up a cross-reference for each branch/plant. You might need to complete the steps several times if you have more than one cross-reference.

Form Used to Set Up Company and Branch/Plant Cross-References

Setting Up Company and Branch/Plant Cross-References for Brazil

Access the Fiscal Company/Branch Plant Revision form.

Setting Up Payment Formats for Brazil

This section provides an overview of payment formats for Brazil and discusses how to set up processing options for:

• Print Automatic Payments - Check & Bordero - Brazil (R04572CB1).

• Print Automatic Payments - Bordero Money Transfer (R04572DB).

• Print Automatic Payments - Check - Brazil (R04572DB1).

• Print Automatic Payments - Bordero with Boleto - Brazil (R04572RB).

Understanding Payment Formats for Brazil

JD Edwards EnterpriseOne software provides these payment formats for Brazil:

Additionally, you can set up payment formats in the Dynamic Formatter program (P76B474).

See (BRA) Setting Up Electronic Banking.

Setting Processing Options for Print Automatic Payments - Check & Bordero - Brazil (R04572CB1)

Processing options enable you to specify the default processing for programs and reports.

Translation

Payment

Setting Processing Options for Print Automatic Payments - Bordero Money Transfer - Brazil (R04572DB)

Processing options enable you to specify the default processing for programs and reports.

Translation

Payment

Setting Processing Options for Print Automatic Payments - Check - Brazil (R04572DB1)

Processing options enable you to specify the default processing for programs and reports.

Address

Translation

Conversion

Payment

Print

Setting Processing Options for Print Automatic Payments - Bordero with Boleto - Brazil (R04572RB)

Processing options enable you to specify the default processing for programs and reports.

Translation

Payment