OCRTI Company Overview + BR Localization

Delivering Customer Satisfaction in JD Edwards

Agenda

Companies Overview

Brazilian Localization High-Level Review

JDE Brazilian Localization Support

Project Plan

Impacts for Fiscal Auditing

Accounting & Fiscal Bookkeeping

Company Overview

Who is OCR TI?

JD Edwards Focused Consulting Company

Very Specialized Services

Brazilian Localization – Government Compliance

Industry Knowledge Life

Sciences, Mining, Telecommunications, Automotive, Oil & Gas, Manufacturing, Retail, Pharmaceuticals, and more.

What do we offer?

Customer-Focused Services Fit/Gap Analysis

○ As-is, Brazilian impact (Global vs Local processes / Localization)

Project Management & Governance

Functional Consulting

Technical Consulting

Interface Design and Development

Training

Support

Documentation

Strong consultant skills and experienced team.

Many consultants have more than 12 years of Oracle JD Edwards

know-how JD Edwards local Market, including localization

Experience and Expertise at a Competitive Prices

Why OCR TI?

Brazilian Localization

Implement JD Edwards in BrazilWith Knowledge and Experience

Brazilian Particularities

COMPLEX FISCAL LEGISLATION

Different tax rules according to industry segment

Different tax calculations depending on the geographical region

Three levels of legislation: Federal, State and Municipal A single sales must cover all

More than 6000 changes in Legislation in one year

+ 110 different taxes Corporation and non-corporation

CSS

COFINS

CSLL

Contribuições de melhoria

FAER

FUST

FISTEL

FGTS

FUNDAF

ICMS

IPI

Imposto de importação

IPVA

IPTU

ITR

IR

IOF

ISS

ITBI

INSS

INSS empregados

INSS patronal

PIS/PASEP

Some Taxes in Brazil

Background: TAXES

Federal

Import Tax (II)

Income Tax (IR)

Production Tax (IPI)

Social Security Contribution (INSS)

State

Product Movement Tax (ICMS)

County

Service Tax (ISS)

Social Contributions

Social Integration Contribution (PIS)

Social Security Funding Contribution (COFINS)

Social Contribution over Net Profit (CSLL)

Social Security Contribution (FUNRURAL)

MANAD

DIRF

LALUR

DCTF

DACON

IN68

IN86

SINTEGRA

CIAP

SPED

DIPJ

GIA

FISCAL BOOKS

> Inbound (model 1)

> Outbound (model 2)

> IPI Register (model 8)

> NFe – Nota Fiscal Eletrônica

> ICMS Register

> Production Register (model 3)

> Fiscal Documents / Occurencies (model 6)

> Inventory Register (model 7)

Background: OBLIGATIONS

Legislation Overview – What? Why? How?SPED – Federal Project

SPED is an acronym that in Portuguese means – Sistema Público de Escrituração Digital or Public Digital Reporting System.

A brief history about SPED:

A. On August 18th 2005, one of the largest Brazilian newspaper, Folha de São Paulo, published an article about tax evasion. According to this article, 63% of small companies have tax evasion evidences. On the other hand, the same happens to 49% of medium firms and only 27% of large enterprises. All Brazilian fiscal authorities know it. They also know that tax evasion can be reduced by increasing fiscal monitoring. The question is “how to monitor 5.7 million companies?”

B. The answer is obvious: the use of information technology and scientific knowledge to create a “fiscal intelligence” capable to handle operations on a large scale.

Legislation OverviewSPED – Federal Project

The SPED project is composed by 3 key initiatives:

More is coming…

Key InitiativeLegally

RequiredOverview

Federal Electronic

InvoiceSince April 2008

Replaces Formal Nota Fiscal

Printing by EI

Fiscal SPED January 2009Replaces fiscal books by a

monthly Electronic txt file

Accounting SPED June 2009

Replaces Accounting books

(Daily Ledger and Balance

Sheet) by an annually txt file

PIS/COFINS February 2012Replaces fiscal books by a

monthly Electronic txt file

FCONT February 2012 Accounting (P&L, equity acc)

Brazilian Localization and

JDE

Companies Matrix for Basic

RequirementsCompany Profile

JDEdwards Support Custom

Manufacturing Reseller ServicesReal

Estate Mining Oil&Gas

Provider (Energy/Wate

r) JDE E1 JDE WS JDE E1 JDE WS

Fiscal Requirements

Fiscal SPED

Y Y N N Y Y N Y Y S R

Account SPED

Y Y Y Y Y Y Y Y Y N N

SPED Contr.

Y Y Y Y Y Y Y Y Y S R

FCONT Y Y Y Y Y Y Y Y Y S R

Requirements and Controls

State Tax Credits

Y Y N N Y Y Y/N Y Y N N

Fed. Tax Credits

Y Y N N Y Y Y/N Y Y N N

Average Cost

Products

Y Y N N Y Y N Y Y S S

NF-e Y Y N N Y Y Y/N Y Y R R

NFS-e Y Y Y N Y Y Y/N Y Y R R

Complexity

High X X X Y Y

Medium X Y Y

Low X X Y Y

N/A X Y Y

Required

Suggested

Not Need

CONTRACT

SALES ORDER CREDIT

ORDER

APPROVAL

INVOICING

INVENTORY PICKING SHIPPING

MAKE TO ORDER

GENERAL LEDGER

TAX CALCULATION

ELETRONIC

FISCAL BOOKSNFe - ELETRONIC

INVOICING XML

JDEdwards System 76BLocalization for Brazil ADDITIONAL

SPECIFIC CUSTOMER DATA

ACCOUNTS RECEIVABLES

Government

Messaging

Protocol

Customer´s

Choice for

Messaging System

SPED

FISCAL BOOKS

NFe CERTIFICATION

TAX RULESREGULATORYDATABASE

MANDATORY REPORTS

TAX ASSESSMENT

FederalGovernment

StateGovernment

MunicipalGovernment

Continuous Legal Support and Up-To-Date Compliance

Standard

Option

DANFE - sample

Totals with Taxes

Green Circle = Goods Total Amount

Yellow = ICMS

Light Blue = IPI

Red = ICMS-ST

Blue = Expenses (Freight, Insurance, Additional)

Green = Discount

Light Red = Final Total

Brazilian Taxes Supported

Tax and JDE Information need to be updated during project time

TAXApply to Goods or

Services

Supported by JDE

Processes Where Used Fiscal Books / SPED

Withholding Retenção

ICMS G / S Y PTP / OTC Y NA

IPI G / S Y PTP / OTC Y NA

PIS G / S Y PTP / OTC Y Y*

COFINS G / S Y PTP / OTC Y Y*

CSLL S Y PTP / AP NA Y

IRRF S Y PTP / AP NA Y

INSS S Y PTP / AP NA Y

ISS S Y PTP / AP NA Y

Y* Apply withholding for Services

Books GL / NFSupported by JDE

Processes Where Used SPEDsWithholding Retenção

NF Costs NF Y PTP / OTC Y NA

NF-e NF Y* PTP / OTC Y NA

NFS-e NF N PTP / OTC NA NA

DG GL Y GL Y NA

RE NF Y PTP / OTC Y NA

RS NF Y PTP / OTC Y NA

RI NF Y PTP / OTC Y NA

SINTEGRA NF Y PTP NA NA

DES S Y PTP NA NA

IN86/68 S Y PTP NA NA

Y* XML file generation

Brazilian Taxes Supported

Finance / Banking Interface

It covers AP and AR

Dynamic Formatter

Brazilian Banks: Itau / Bradesco / Santander / BB / others (CNAB240 / CNAB400)

(JDE E1 ONLY, Xe – 9.1; it is a Custom required for

JDE WS A7.3 to A9.3)

JDE Brazil Implementation

PROJECT PLAN

Initials

Workshop to Local Key-

Users about JDE and

Processes for Medical devices

in Brazil

Connect users to change experience

Finance

General Ledger

GL Books / Reports

Fixed Asset (basic)

AP / Bank Interface

AR / Bank Interface

Real State

Distribution

Inventory

MRP/DRP

Procurement and Import Process

Sales w/ Adv. Price

Consignment and Virtual Inv. Control

Fiscal

Referential Chart of Accounts (BR Government)

Fiscal Books (ICMS / IPI)

SPEDs Fiscal / Acc / PIS & COFINS

DG Books (support for eBID w/ public

Hospitals)

Key Deliverables - SETUP

DESIGN

Kick-off the project:

Consulting Team and Client Team (Brazil and US)

Establish/gathering requirements from US and meet with Brazil

requirements (Chart of Accounts, Business Units Structures,

Taxes Accounts, USGAAP x BRGAAP, processes discussions,

AVG Costs x Standard Cost)

Meetings to review plans and align the project plan to initial scope;

Workshop to delivery the design plan to be setup on JDE (including

code changes, BI interface, Consolidation with US)

Approvals for Next Steps (Building)

Overview for Business Model

BRASIL STRUCTURE

BR FISCAL COMPANIES/BPs

Office 3PL Other 1 Other 2 Other 3 Other 4

BRAZIL TAX ID 0001-00 0002-xx 0003-xx 0004-xx 0005-xx 0006-xx

MFG N N N N N N

Purchase Order Y Y ? ? ? ?

Sales Order Y Y ? ? ? ?

Finance (AP / AR) Y Y ? ? ? ?

GL

REVENUE ? Y ? ? ? ?

COST ? Y ? ? ? ?

EXPENSES Y ? ? ? ? ?

TAXES Y Y ? ? ? ?

CO: BRAZIL CO

Setup and Composition by B/P

0001-00

0003-00

0005-000004-00

0002-00

Each Branch Plant has their own Tax ID and they use it (hard REQUEST) to

communicate with SEFAZ (Fiscal Authority). By the Messaging System, it

needs to take the tax ID and communicate with SEFAZ. Each B/P will be a

BR FISCAL Company.

Overview for Business Model

Required

BU / BP

Fiscal Companies

SP* / RJ**

Acc Company

Brazil

Company US/EU

00000 07600

076007600RE

7600FI

076017601RE

7601FI

When the billing process occurs from different States, it is required to setup multiple Fiscal Companies.

* SAO PAULO / ** RIO DE JANEIRO (States in Brazil)

Overview for Business Model

Required

Each Fiscal Company will have the Nota Fiscal sequence (similar to Invoice)

Each Fiscal Company will have the Ship From Tax ID

Each Fiscal Company will communicate with the Local Fiscal Authority (SEFAZ)

Each Fiscal Company MUST have the Fiscal Books ready to be audited by the Government Agents (State ICMS / Federal IRS / City ISS)

Building

JDE Setup/Code Changes/Tests:

Consulting Team and Client Team (Brazil and US)

JDE Setup, code changes, training and tests

Meetings to review plans and align the project plan to initial scope;

Workshops to delivery and present how each process will work

Approvals for Next Steps

Basic SETUP Required

Chart Of Accounts: P&L Accounts for BUs: 7600/7601

DMAAIs: Company: 07600/07601 / GL Class: by product

and Taxes by a cross reference with GL from Products

BU: Blank, will take from SO/PO EMCU/MCU

Fiscal: Setup Company (P0010): 07600/07601

○ Setup BR localization: Link Branch Plants to Fiscal Companies

Sequence for NF Next Number

P & L / Month End Process

Month end overview

CO: 07600 Total

Business Units> 07600 07601 BRAZIL 7600

P&L 3.375 5.625 9.000

REVENUE 20.000 15.000 35.000

COST 10.000 8.000 18.000

EXPENSES 3.000 5.000 8.000

TAXES 3.625 2.538 6.163

D-ICMS 3.400 2.550 5.950

D-IPI 2.000 1.500 3.500

D-PIS 330 248 578

D-COFINS 1.520 1.140 2.660

C-ICMS 1.700 1.360 3.060

C-IPI 1.000 800 1.800

C-PIS 165 132 297

C-COFINS 760 608 1.368

D=Debit / C=Credit (netting process to pay taxes)

P & L / Month End Process

Month end overview

CO: 07600 Total

Business Units> 07600 07601 BRAZIL 7600

P&L 3.375 1.463 9.000

REVENUE 20.000 15.000 35.000

COST 10.000 8.000 18.000

EXPENSES 3.000 3.000 8.000

TAXES 3.625 2.538 6.163

D-ICMS 3.400 2.550 5.950

D-IPI 2.000 1.500 3.500

D-PIS 330 248 578

D-COFINS 1.520 1.140 2.660

C-ICMS 1.700 1.360 3.060

C-IPI 1.000 800 1.800

C-PIS 165 132 297

C-COFINS 760 608 1.368

D=Debit / C=Credit (netting process to pay taxes)

Details of taxes booked

Working with JDE

By using JDE and run inquires or reports based on: Object Accounts, it will be possible to see the

totals for all BUs/BPs, Revenues, COGS, etc

By BU: Reliable on GL and integrity with Tax/Fiscal

Books/SPED

Interfacing to messaging system for NF-e and/or SPED Easier to build to separate the Fiscal

Companies by Tax ID;

Statutory Reports

SINTEGRA/Fiscal Books (ICMS)

SPED FISCAL (PRINT PER STATE,

ICMS/IPI/PIS/COFINS)

SPED ACCOUNTING (GL LEDGER / GL

BALANCE)

SPED PIS/COFINS (Q4 2011, Doc ID

752291.1)

SPED

Run extracts from JDE to compose a Flat Files:

Accounting, collect data from F0911, F0902, F0902A; Sending General Ledger and Balances (per

B.Unit);

P&L and Taxes per Business Unit

Fiscal, collect data from: F7601B/F7611B/F76B001/F76B011/F03B11 / F0411

/ F0101 / F4101 / F4102 / F4111 / F41112.

All Transactions sending to Government by State (B/P).

○ Tables F7601B/F7611B works like a copy from F4201/F4211 and F4301/F4311 but keeps the taxes amounts and codes for each item for all transactions.

JD Edwards BR Road Map

JD Edwards BR Road Map

Johnson & Johnson

Project: Oracle JD Edwards implementation

Scope: Financials, Distribution, EDI, MFG, Localization

Location: USA , EU and Brazil

Damovo (Data Mobile Voice)

Project: Oracle JD Edwards implementation

Scope: Financials, Distribution, Bar Coding, CSMS,

Localization

Location: EU and Brazil

References: Ennio Bianchini +55 11 3365 6321

[email protected]

Yamana Gold

Project: Oracle JD Edwards implementation

Scope: Financials, Distribution, Job Cost, Eqpt

Maintenance, MFG, Localization

Location: CA, Brazil, Chile and Mexico

References: Renata Blaxtar / Mannie Baltonado

[email protected]

[email protected]

to Bard’s Project

THE VALUES WE WILL BRING

THE VALUES WE WILL BRING

Results-oriented delivery based on high quality implementation, consistent standards and methodologies – OCR TI experience.

Solid co-operation between OCR TI/Denovo and CR Bard leveraging of each other's expertise to provide the best possible solution.

High quality solution, leveraging existing functionality in JDE, integrating all the processes, and replacing customized solutions when possible and feasible

To make Brazilian implementation a worldwide successful reference.

Thank You! www.ocrti.com

[email protected]

[email protected]

1 714 408 1627

1 714 598 3466

+ 55 11 4506 3180

+ 55 11 3230 7113