1. Localizations for Brazil Implementation Guide
  2. Setting Up AAIs for Tax Processing for Brazil

Setting Up AAIs for Tax Processing for Brazil

(Release 9.2 Update) 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 or 4315 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 or 4315 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 (4385/4315) and the Cost/Liability Adjustments AAI (4390).