1. Implementing Manufacturing and Supply Chain Materials Management
  2. Supply Chain Financial Orchestration Validations for Brazil

Supply Chain Financial Orchestration Validations for Brazil

If the buyer business unit is located in Brazil, internal material transfers must comply with specific requirements.

The Brazil-specific requirements are as follows:

  • Transfer of ownership on shipment

  • All fiscal documents must be in Brazilian Real (BRL)

  • No tax calculation in intercompany invoices

To comply with these requirements, Oracle Fusion Cloud Supply Chain Financial Orchestration provides additional validations for all internal material transfer related financial orchestration flows. For example, a buyer business unit in Brazil must indicate the following:

  • In the Manage Documentation and Accounting Rule page, the currency option is set to Buying node.

  • In the Manage Documentation and Accounting Rule page, the ownership change event for forward flow, Internal Transfer, is set to Interorganization Shipment.

  • In the Manage Supply Chain Financial Orchestration page, the Transaction Business Category is set in Sell Side Tax Determinants, and is passed to the intercompany receivables invoice and Oracle Fusion Tax. Oracle Fusion Tax is configured to not apply taxes for this transaction business category.