Understanding Purchase Order Entry in Brazil
In Brazil, the government requires that businesses maintain detailed information about all merchandise and associated taxes during the delivery process. The information accompanies shipments in the form of a document known as a nota fiscal.
When you enter a purchase order, you also enter information that the system uses to generate the associated nota fiscal document. When you receive a shipment for the purchase order, you enter or update information for the related nota fiscal. When you enter item information, the system calculates any applicable IPI, ICMS, and ICMS Substitution taxes. The Brazilian government holds both the seller and buyer responsible for the accuracy of tax calculations. You can verify the accuracy of the nota fiscal document that the supplier sends with the shipment, based on the inbound version of the nota fiscal that the system generates.
When you use the JD Edwards EnterpriseOne Procurement system in Brazil, you enter additional information in the header and then in the detail portions of the purchase order.
When you enter purchase orders, the system automatically displays the additional information forms for the purchase order header and detail. To access additional information forms when you inquire on existing purchase orders, use the regional information menu option.
The system automatically creates journal entries to account for the notas fiscais that the procurement process creates.
The Brazilian government requires companies to maintain additional purchase order information for tax audit purposes. This additional information includes:
Transaction nature.
Tax code.
Fiscal classification.
Whether the item is subject to ICMS Substitution.
Origin of the item.
Purchase use.
Fiscal message.
If the item is imported:
Import Content (CI)
Import Content From (FCI)
Ex TIPI