Import of Goods using Foreign Purchase Order
In this flow, the customer places an order to a foreign supplier for importing materials into Brazil.
Based on the foreign currency purchase order, the supplier ships goods and sends commercial invoice in foreign currency to the Brazil broker. Once the shipment reaches Brazil Customs, the Brazil broker generates the importation fiscal document in Brazil currency and sends to the customer. The fiscal document specialist then receives, validates, and captures the fiscal document, and generates a receipt.
Customer creates an invoice directly in Accounts Payables by matching the PO. Broker handles the payment to Seller. The following are the conditions for this flow to work:
-
Invoice is created in Accounts Payable using the user-defined currency rate, and the amount is paid to supplier directly, much before the fiscal document is validated.
-
The PO match option for the Foreign PO is Order, unlike other POs that have the match option as Receipt.
-
The currency conversion rate on the PO will be a user-defined rate, as the actual conversion rate isn't known until the fiscal document is created.
-
The currency conversion rate used in invoice and fiscal document must be the same. If they're different for any reason, it might lead to variances in accruals. In such a scenario, you must manually adjust the values in records.
-
No complementary fiscal documents are expected for this type of fiscal document.
-
This flow isn't applicable for Brazil for Global procurement flow with Importation and Customer drop ship flow with importation scenarios.
Price tolerances become applicable when comparing the PO value that was converted into Brazil currency using the PO conversion rate with the value in fiscal document. If the difference is outside the tolerance, a hold is placed on the fiscal document for user action. The most common reason for this can be the difference in the conversion rate used on PO and that used in the fiscal document. To resolve, update the PO and rerun the fiscal document validations. This ensures that the calculated fiscal document amount is updated using the latest PO conversion rate.