brazil electronic invoicing and tax reporting requirements
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Brazil Electronic Invoicing and Reporting Requirements
INVOICEWARE INTERNATIONALGlobal Compliance - Simplified
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Why Leading Organizations Choose Invoiceware International
Regional Latin America Platform
• One Platform, multiple countries – Brazil, Mexico, Argentina, Chile, Ecuador, Uruguay, Peru & Colombia
Lower IT Costs - Today & In Future
• Eliminate SAP ERP Configuration & Support issues
• Enterprise end-to-end support in English, Portuguese, and Spanish
• Fixed, Predictable Cost Today & Through Changes
Eliminate Operational Issues
• Increase employee productivity by 25% with a single SAP monitor for end users
• Built-in business process automation to eliminate manual data entry tasks and shut downs
Avoiding Audit Issues & Financial Penalties
• SAP ERP is the system of record, not 3rd parties
• Fiscal reporting and transactional compliance from a single solution
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Tax Authorities Control an End To End ProcessGovernment standardized XML linked to VAT Tax reporting = Real Time Audits
Supplier Registers XML
Government XML Standard Only Legal document Registers VAT Tax Obligation
PDF Accompanies Truck
Copy of Invoice OR Signed Shipping Document
depending on country
VAT Tax Linked to XML
Buyer only able to take VAT tax credits that are linked to approval codes in supplier XML
Errors or corrections are the buyer’s issue to get fixed
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Solution RequirementsSimplify Complexity Today, Manage Change in the Future
Cash, Compliance & CostEfficiency & Stability
CFO
ObjectivesHow do I automate processes with
my customers and suppliers?
How do I streamline transparency of
reporting & cash flow?
Efficiency On-time delivery
Lower Inbound Receiving costs
Accurate tax reporting & IVA Credits
Complete audit trails
Cost Employee productivity
Cost and time of shutdowns
Tax penalties, missed deductions
Cost of closing books monthly
Flexibility Automated Contingency in place
Process workflows
Working capital optimization
SAP as single system of record
IT Consolidation
Chief Information Officer
How do I provide value with fewer
systems and lower costs of upgrades?
Effort build, integrate, and maintainSAP & multiple country solutions
Staff, Solutions, Infrastructure
Annual upgrades & consulting
Stable budgeting vs. fire drill projects
Buffer SAP from change
VP Supply Chain
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Multiple Solutions• Local country solutions
• Middleware interfaces
• SAP ERP updates
SAP not System of Record• Data is changed in 3rd party
tools not in SAP ERP
Who Supports?• Search & Rescue Missions
Who Maintains?• Alignment with SAP ERP –
global regression testing?
• Ongoing knowledge of what was done and what needs to be done
IT – Traditional Approach is CostlyMultiple Solutions, Constant Upgrades
SAP
ERP
Middleware
Integrate the
System
Different
Solutions for
Each Country
CUSTOMER
IDOC1
2
3
4
5
Monitor #1 Monitor #2 Monitor #3-6
Who
Supports
Who
Supports
Who
Supports
6
7
8
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Supply Chain – Business Impact is SubstantialMission Critical Timing & End User Productivity
Invoicing Can Shut Down Operations
Government approved documents are needed to ship legally. Built in back up processes ensure you can always ship.
Level 1 - On Network Contingency
Level 2 – On Premise Contingency
Automatic Reconciliation to get invoice registered when systems back on line
Standardization can drive down costs
Use XML Invoice and PDF on trucks to lower cost in inbound receiving
Automated Purchase Order – Invoice matching before the truck arrives
Eliminate data entry at warehouse by scanning the PDF for data entry
Manage discrepancies and trigger government processes (return orders, gov’t status messages)
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IT – Financial Accuracy Equals Cash FlowVAT Remittances & Working Capital Issues
Working Capital Optimization• Accurate invoicing equates to lower DSO & less returns
• VAT tax obligations & deductions equal millions for multinationals
• Transform mandated compliance into Supply Chain Financing opportunities
Financial Reporting Accuracy - VAT
VAT obligations in Latin America – 16-22% of goods sold
Brazil VAT – based on physical movement of goods which means can owe even before you collect from your end customer
VAT Credits/Deductions must be linked to supplier’s registered XML
Finance Penalties – Local and FCPA for US Public Companies• Mexico - $3,000 per event (i.e. transaction) plus denial of deductions
• Brazil -75% to 150% of tax values - $50 Million dollar Chem business fined $3 Million by SEFAZ for deduction issues (page 30 of 10K)
• Foreign Corrupt Practices Act – SEC fines CPG company 4.2 Million of Mexico invoices issues; High Tech company FCPA issues approach $108 Million
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Invoiceware InternationalBusiness-to-Government Compliance Suite for SAP
Latin America Regional Platform
• Brazil, Mexico, Chile, Argentina, Peru, Ecuador, Uruguay & Colombia
SAP System of Record
• SAP sole system of record
• Single user interface inside SAP
Process Automation
• Automated Contingency – always be able to ship
• Lower Inbound Receiving & AP Costs
• Transactions & Reports are fully integrated
• Working Capital Optimization solutions
End to End Support
• End to End support in Portuguese, Spanish and English whether SAP issue or gov’t issues
Fixed Fee - Change Management
• All maintenance is covered by fixed cost annual fee (software & labor included)
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Invoiceware International
SAP ERPExpertise
Local CountryCompliance
The Business Impact – IT CostsDo you Have the Right Resources?
Invoiceware Resource Knowledge
Functional SAP ERP experts in each country in Latin America AND
Experts in Local Country compliance
Invoiceware Resource Language
English with global support AND
Portuguese & Spanish in local time zones
Invoiceware Economies of Scale
Our only focus in Latin America compliance AND
Learn and apply from over 200 SAP enterprise customers – common logistics issues, billing issues, cost savings
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Reports Consistency
Operational NFe (Real-Time) Accounting/Fiscal (Monthly/Year-end)
Consistency
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Invoiceware SAP Extensions for SendingTransmits Invoices, Visualizes DANFE, Cancellations, Contingency Alternatives
Integrated Archive Access
Error Correction & Reprocessing
Automatic Contingency (both On-Network and On-Premise)
Signing Attributes (“Full Loop”)
Audit Trail, Status Log
Event Based CCE & Cancellations
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Why Leading Organizations Choose Invoiceware International
Regional Latin America Platform• One Platform, multiple countries – Brazil, Mexico,
Argentina, Chile, Ecuador, et al…
SAP Hybrid Cloud Deployment• Eliminate SAP ERP Configuration & Support issues
• Single SAP Monitor for End Users
• Fixed, Predictable Cost Today & Through Changes
Production Support• Invoiceware a phone call away for day to day calls
• English, Spanish or Portuguese
• End to End Support – including SAP issues
Change Management• Ongoing Changes Included (including both software &
consulting)• Local teams work with the governments (i.e. SEFAZ, SAT, AFIP, SII)
• Remove dependency on Internal Resources & SAP to keep system updated
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Resources Click the links below for more information
Learn more about the requirements in Brazil
Brazil 2016 SPED Requirements: Block K Adds Complex Inventory and Production Reports
Upgrading Brazil Nota Fiscal 2015: Is your business at risk?
Want to stay up to date on compliance in Latin America?
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Next Steps Contact Us To Learn More
+ 1800 – 988 – 0728www.invoicewareint.com