This chapter contains these topics:
JD Edwards World user guides provide you with the information that you need to implement and use JD Edwards World applications from Oracle.
The following Financial Reports are available in JD Edwards World:
Printing the General Ledger Book (Diário Geral)
Printing the Transactional Journal (Livro Razão)
Printing the Account Balance
Reviewing Account Balance
A/R Transaction Ledger
A/P Build Transaction Work file
A/P Transaction Journal
SPED Contabil
The following Fiscal Reports are available in JD Edwards World:
Fiscal Books
IN86
Sintegra
The basic reporting element of the taxing system in Brazil is the Nota Fiscal (Fiscal Note). The Nota Fiscal is a document that accompanies merchandise during the delivery process. It is similar to an invoice. In JD Edwards World software, there are three categories of Nota Fiscal: Stand-Alone, Inbound, and Outbound.
The Brazilian government requires that businesses control and verify the accuracy of Nota Fiscal documentation for audit purposes. The Nota Fiscal document includes the following information:
Merchandise price
Any applicable tax amounts
How the merchandise will be used
Origin and destination of the shipment
Any other expense associated with the transaction
The Brazilian government holds both the seller and buyer responsible for the accuracy of tax calculations. Consequently, businesses in Brazil are very careful to control and verify the accuracy of the Nota Fiscal documents that are received from suppliers and sent to customers.
| Process | Description |
|---|---|
| Payment Processing (A/P) | EFT interface and Bordero payment processing |
| Cash Processing (A/R) | Collection of customer accounts by way of bank tape or transmission |
You can set up your system to perform calculations for the following taxes:
| Tax | Calculation |
|---|---|
| IPI - Tax on Industrial Products (Imposto Sobre Productos Industrializados) | This is a federal excise tax that the government charges on goods that a manufacturing process changes. The tax amount combines with the finished product price and is payable at the point of production or importation. The government allows a credit for excise tax that the manufacturer pays on the purchase of raw materials or component parts used for production. If the manufacturer imports and sells the product at a higher price, the manufacture must pay an IPI tax on the price differential.
The government groups products with the same characteristics. Depending on the nature of the goods, the government calculates the IPI at rates that vary according to the degree of necessity for the goods. The government identifies its groupings in a Fiscal Classification, and the specific classification determines excise tax rates accordingly. The government passes on the excise tax to the purchaser as an addition to the sales price of each item shown on the Nota Fiscal. |
| ICMS - Tax on the Circulation of Merchandise and Services (Imposto Sobre Cirçulacão de Mercadorias e Serviços) | This is a state tax that the government charges on purchasing and sales transactions. The tax rate varies from state to state and some products may be taxed at different rates. The price of the product generally includes ICMS tax, but the amount of this tax also appears on the nota fiscal. The tax charge on monthly purchases is offset against tax payable on monthly sales.
There are two exceptions to the usual ICMS processing:
Deferred ICMS: The fiscal authorities grant some industries in Brazil the benefit of deferring the ICMS tax partially or totally. This means that the payment is not required until later in the process of commercializing goods and the responsibility is transferred to the buyer of the product. This causes a reduction in the applicable ICMS tax. |
| ICMS Substitution - Secondary Tax on the Circulation of Merchandise and Services (Imposto Sobre Cirçulacão de Mercadorias e Serviços Substituto ) | This is an ICMS tax charged on special products and clients that may go through multiple distributors before reaching the end consumer. The manufacturer of the product collects the tax based on the end selling price of the product. The government charges the ICMS substitution tax to the ICMS tax that is due for subsequent transactions with the product.
The substitution also facilitates the effort of collection of the ICMS due in intrastate transactions. The government determines tax rates by ship-from/ship-to states and the tax rates vary for each item and business type. |
| ISS - Service Tax (Imposto Sobre Serviços) | This is a city tax that the government charges on services. |
| IR - Income Tax (Imposto Sobre a Renda) | This is a federal tax that the government charges on services. |
| PIS/PASEP (Programa de Integração Social/Programa de Formação do Patrimônio do Servidor Público) | The PIS contribution is made to Brazilian social programs by private companies and enterprises. |
| COFINS (Contribuição para Financiamento da Seguridade Social) | A mandatory contribution that is levied as a percentage of monthly billings on merchandise and services. |
Brazil retains various business practices that pertain to high inflationary accounting. For example, some businesses in Brazil maintain ledgers in both the local currency and in a foreign currency, such as the U.S. dollar. This affects all aspects of accounting, including fixed assets and inventory.
To process business transactions under these circumstances, you must set up your system for specific Brazilian requirements.
JD Edwards World setup requirements for Brazil consist of the following tasks:
Setting up user display preferences
Setting up an alternate chart of accounts
Setting up user defined codes for Brazil
Working with next numbers for Brazil
Setting up company and plant cross references
Setting up generic function key exits
Setting up order line types
Setting up order activity rules
Setting up distribution messages
Setting up transaction nature codes
Setting up tax codes
Setting up ICMS tax rates
Setting up IPI tax rates
Entering additional address book information
Setting up advanced pricing for Repasse
Setting up AAIs for Brazil Localization Programs