19 Overview to Procurement Requirements
This chapter contains these topics:
19.1 About Procurement Requirements
In Brazil, the government requires that businesses maintain detailed information regarding all merchandise and associated taxes during the delivery process. The information accompanies shipments in the form of a document. This document is a Nota Fiscal.
When you enter a purchase order, you also enter information that the system uses to generate the associated Nota Fiscal document.
JD Edwards World allows you to receive notas fiscais in the following formats:
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Paper Nota Fiscal (type 1)
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Sao Paulo Nota Fiscal (type 2)
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Electronic Nota Fiscal (type 3)
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Telephonic Services Nota Fiscal (type 4)
When you receive a shipment for the purchase order, you enter or update information for the related Nota Fiscal. At this time, the system first validates the nota fiscal number and series format based on the Document Type selected, then, it calculates any applicable PIS, COFINS, ICMS and IPI taxes. The Brazilian government holds both the seller and buyer responsible for the accuracy of tax calculations. You can verify the accuracy of Nota Fiscal document that your supplier sends with the shipment based on the inbound version of the Nota Fiscal that your system generates.
IPI and ICMS calculations are based on the Address Book Additional Information of the address book number in the Ship-To field.
When you run the Voucher Match program, that program updates the Voucher Match table with the IPI tax amount from the Nota Fiscal table. Unless you use ICMS tax substitution, there is no need to update the Voucher Match table for the ICMS tax, because the price of the merchandise includes ICMS tax. If you do use ICMS tax substitution, the Voucher Match program writes another line item for substitution tax amount to the Voucher Match table.
The system automatically creates journal entries to account for the Nota Fiscal documents that the Procurement process creates, except for PIS/COFINS. The journal entries for PIS/COFINS Taxes are created with the Tax Netting Process.
JD Edwards World solution for procurement requirements in Brazil includes the following tasks:
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Entering purchase orders for Brazil
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Working with receipts for procurement
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Entering landed costs
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Reviewing inbound Nota Fiscal
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Printing inbound Nota Fiscal
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Creating vouchers
The following graphic is an overview of the purchase order process, including the role of the Nota Fiscal, and the point at which the system calculates ICMS and IPI taxes.
