SAP BusinessObjects Electronic Invoicing for Brazil (NF-e) Greg Ertel, Director, Solution Marketing SAP Linda McKee, Director, Solution Management, SAP Anil Mahendra, Vice President of Sales, Politec October 13, 2011
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Agenda
Introductions
SAP in Brazil
Nota Fiscal Eletronica Background
SAP’s Electronic Invoicing for Brazil Solution Scope Functionality Landscape Roadmap
Implementing NF-e with Politec SAP Relationship Key Brazil Localization Topics Critical Success Factors Lessons Learned
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Introductions
Gregory Ertel SAP
Linda McKee SAP
Anil Mahendra Politec
SAP in Brazil
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SAP BRAZIL
15 years in Brazil
656 employees and 48 trainees
Best enterprise solutions in 25 industry segments
Indirect workforce of ~11,100 certified consultants
1.5 million end-users
Strong ecosystem: 113 partners (Integrators and Channels)
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SAP BRAZIL
2.700+ Customers
Large Small
Medium
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Some of our customers in Brazil
Nota Fiscal Eletronica Background
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Why Nota Fiscal Eletronica?
Notal Fiscal Eletronica (NF-e) is part of the Digital Public Bookkeeping System for Brazil, more commonly known as SPED. SPED consists of 3 main pillars:
Fiscal Accounting SAP Solutions:
Part of Decree No. 6.022 – Issued January 22, 2007
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What is Nota Fiscal Eletronica?
Companies selling products in Brazil must send each invoice electronically to the government for validation before shipping their goods.
Companies purchasing goods in Brazil must check the electronic invoice at the government before receiving the goods.
Bottom line: The government wants to be sure they are getting all of their tax revenue.
Companies need to handle these activities with an automated solution that can scale to high volumes of invoices and meet their business process requirements.
SAP BusinessObjects Electronic
Invoicing for Brazil or more commonly referred to as
Nota Fiscal Eletronica (NF-e)
SAP’s Electronic Invoicing for Brazil Solution
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Where is Nota Fiscal Eletronica supported within SAP?
Strategy Management
Planning, Budgeting, and Forecasting
Profitability and Cost Management Consolidation
Spend and Supply Chain
Enterprise Performance Management
Reporting Interactive Analysis
Dashboards and Visualization Data Exploration
Advanced Analytics
Business Intelligence
Risk Management
Access Control
Process Control Global Trade Services
Governance, Risk, and Compliance
Data Integration Data Quality Management
Master Data Management
Metadata Management
Enterprise Information Management
Environment, Health, and Safety Management
Sustainability Performance Management
Nota Fiscal Eletronica
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Reduced Manual Effort
Value Drivers
Reduced Integration Costs
Reduced Time and Effort During Audits
Reduced Supply Chain Delays
•Pre-built integration between NFe and back-end SAP ERP
•No custom tables
•Reduced risk during changes/upgrades
•Stop shipments automatically if outbound NFe not authorized
•Automate processes required to check NFe’s from suppliers
•Automatically trigger creation of inbound delivery for faster receiving
•Automate MIRO/MIGO
•Fewer errors with information transferred automatically from XML
Country Version Brazil
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NFe Communication
Management
Status Monitoring
and Updates
Automated contingency
(SCAN)
Inbound NF-e’s
Outbound NF-e’s
Digital Signature and Validation
Batch Creation
Key features Automated triggering of back-end transactions ABAP Digital signature service
“
PO Assignment Invoice Simulation Vendor Notification
Inbound Delivery Creation
DANFE Receipt Quantity Validation
Trigger of Goods Receipt
and Invoice Creation
Digital Signature Check
Authorization
Validation
SAP’s Electronic Invoicing for Brazil (NF-e) - Automation and Compliance of Nota Fiscal Eletronica Processes
Automated handling of inbound NF-e’s Notification to Vendors electronically
Compliance with NFe regulations Automated issuance and management of outbound NF-e’s
We issue 15,000 to 16,000 invoices per month, reaching a peak of 500 to 1,000 per hour. All of them must be validated by SAP Business Objects Electronic Invoicing, which responds perfectly to the demand Marcos Mazarin
IT Manager Merck SA
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“Outbound” Nota Fiscal Eletronica – Tied To Sales Process at a Company, Versions 1.0 and 10.0 of NF-e
Sales Order
Billing Document SEFAZ
Nota Fiscal Eletronica Nota Fiscal
DANFE
Shipment
Company’s Localized ERP GRC NFe
XML
Government Systems
SCAN
Create XML
Digital Signature
Create Batches
Authorize, Reject, Deny NF-e Status from Government
NF-e Status To ERP
Government System Status to ERP
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“Inbound” Automation Nota Fiscal Eletronica – Tied To Purchasing Process at a Company, Version 10.0 of NF-e
Purchase Order
G/R
SEFAZ
Nota Fiscal Eletronica
Invoice
DANFE
Company’s Localized ERP
GRC NFe
Government Systems
Supplier
XML
Sales Order
Nota Fiscal
Billing Document
Nota Fiscal Eletronica
Nota Fiscal
Check Authorization
Assign PO Simulate Invoice Create Inbound Delivery
Trigger Goods Receipt
Trigger Invoice Creation
Check for XML Enter and Check Received Quantities
Check Digital Signature
Inbound Delivery
PO Data
Nota Fiscal Eletronica
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Highlight What it Does
Automation of Inbound Processing
Automate the handling of inbound NFe’s for Normal Purchases and Stock Transfer Orders
Flexibly determine whether to automate or process steps manually Trigger supporting back-end transactions
Vendor Notification Notify vendors electronically regarding status of their NFe messages Both acceptance and rejection messages possible
“Lean” Inbound Freight Invoice (CT-e) Management
Receive and validate inbound electronic freight invoices
Automated Switch to SCAN for Contingency System checks for status of both SEFAZ and SCAN systems Trigger creation of invoices using SCAN automatically when SEFAZ
system not available
Inbound NF-e Dashboard • Simplified visibility to summarized information for inbound NF-e’s
DANFE pdf Create a pdf version of a DANFE for greater ease in comparing information
ABAP Digital Signature Service Use ABAP Digital Signature Service instead of Java Service Now a synchronous call of the NetWeaver SSF Service
Highlights in Nota Fiscal Eletronica 10.0
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NF-e 10.0 System Landscape
Delivered with SAP Electronic Invoicing for Brazil (NFe)
Country Version Brazil
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Leading Companies Implement SAP NF-e
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SAP BusinessObjects Electronic Invoicing for Brazil NF-e Roadmap
Focused on company selling goods (referred to as Outbound)
Manage communication with government of invoices (NF-e) in XML format
Technical validation and digital signature of each message
Governance of communication processes and statusing
Enable processing when government systems unavailable (contingency)
B2B integration w/ business partners to send/receive XML’s
NFe 1.0 Focused on company buying goods (referred to as Incoming)
Check and validate NF-e’s from suppliers
Automation of manually intensive processes:
Compare XML data to purchase order
Creation of inbound delivery
GR and IR Coverage for normal
purchases, stock transfer orders, sub-contracting, future deliveries, returnable packaging, and inbound freight invoices (CT-e)
Change Letters (CC-e) as first phase of new event requirements
SCAN enhancements
NFe 10.0
Support legal changes enacted by Brazilian government since release of 1.0, incl. layout 2.0
SCAN Resource intensive
and high priority
NFe Legal Changes and
Updates
Outbound CT-e Services electronic
invoices Import/export NF-e’s Additional events Enhanced B2B
scenarios Others TBD On-going legal
changes
Future (2012 and beyond)
4/2008
12/2010 and 11/2011 2012+
Important Note: 2011 and 2012+ are for planned, and/or future releases. Everything described is just a plan, not a commitment, and is therefore subject to change or removal at SAP’s discretion.
SAP and Politec
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Founded in 1970/ 40 + Years in Business
Leading “Nearshore” SAP & IT Services Provider
Part of the Indra Group of Companies
Revenues: US$300M (2010)
Politec/Indra expanded global capabilities
31,000 employees globally Presence in 110 countries
Global SAP Services Partner Centers of Excellence across Americas, EMEA, and APAC
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Politec SAP Overview
Politec is a Gold SAP Service & Channel Partner (Latin America, USA + EMEA)
Politec is a complete end>end SAP service provider
Established Exclusive “Go To Market” partnership with SAP for NF-e Sales Support and Best Practices implementation approach
First CMMI-Level 3 certified ABAP/NetWeaver software factory in Latin America (2006)
1st SAP-Certified Provider of Application Management Services
Invitation to participate in SAP Eco-Hub program for success with NF-e campaign
Politec is development Partner of SAP involved in important initiatives such as NF-e and Payroll localization for Brazil
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Collection and Reporting of Duties and Taxes Across the Supply Chain in Brazil
Challenge: Every Day is Tax Day Over 17 taxes that must be paid to the Federal, State and Municipal authorities; Tax is due on 14 different days of the month
Challenge: Constant Changes to Laws There are over 5,000 tax laws. The production tax (IPI) alone has 14,357 different applications and was modified 216 times in 2007 and 85 times YTD
Exame, Um Mergulho no Labirinto Tributario, 10/09/08
Challenge: Tax and Accounting Reports In 2007 a company printed 426 tax and accounting books containing 500 pages each (213,000 pages).. Books are stored for five years for tax auditors
Challenge: Duplicate Information Tax authorities from each State (27) mandate annual reports consisting of the same data that is reported on a monthly basis for goods movement (ICMS)
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Brazil Localization Focus Areas
Organizational Structures Master Data Brazil Taxes
Financials
•CNPJ •CPF •State Inscription •Municipal Inscription •Tax Classification •Type of Business •NCM •Origin •Usage •Type of Material
•Financial Accounting: •Specific accounts (e.g. for Brazilian Taxes) •Gross revenue posting
•Asset Accounting •Specific chart of depreciation •Tax incentive on investment in assets (CIAP)
•Costing and valuation •Trading goods to be valuated at moving average price •Manufacturing and importation require period based actual costing
Legal Books •IN68 / IN86 (Master data, document files, and tables) •DIRF (Withholding tax report) •CIAP (ICMS credit on fixed assets) •Livro Diário, Livro Razão (Journal, list of accounts) •Accounting SPED •Fiscal SPED •PIS/COFINS SPED •* Most can be covered by standard SAP
•IPI – Federal Tax on Industrialized Products •ICMS – State Tax on Goods Movements •Substituição Tributária – Tax Substitution •ISS – Municipal Service Tax •PIS, COFINS, CSLL – Social Contributions •IRRF, INSS – Withholding Taxes
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Project Methodology – Global ASAP
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Critical Success Factors
• Select an experienced partner that has proven global delivery capabilities. Make sure the partner is able to support your Brazil localization requirements • Ensure your local resources have the bandwidth, especially in the Finance/Tax department. They will assist in the design, validation and testing of the solution. • Early participation of local SAP GRC PI expertise is needed to enable messaging with the Brazilian tax authorities (SEFAZ) • Invest in Project Management. Significant coordination with global COE’s has to occur from BOTH a technical and functional perspective • Do not underestimate complexity of installing technical environment such as installing the Brazil CATT (BASIS activity) and configuring GRC PI Server •Certification of the transaction by local agencies tends to take time (GRC PI is messaging with SEFAZ correctly)
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Lessons Learned
Try and standardize global business processes (Global Template approach) to
Brazil as much as possible and focus on uniqueness of localization
Utilize SAP’s native solution for NFe instead of 3rd Party- SAP NFe allows for
tighter integration between SAP components going forward
Invest in a Discovery Session to determine infrastructure, resources, business
and data requirements for the project.
Master Data Quality – Customers, Vendor and Material. The government will
recalculate taxes and penalties can be assessed if not correct
Develop a contingency plan if any communication issues with the government
arise. This is not only a go-live requirement, but a necessity for any time after
the implementation.
Both Parties should have a good understanding of the respective challenges
Thank You! Contact information: Linda McKee Senior Director, Solution Management, SAP [email protected] Gregory Ertel Director, Marketing, SAP [email protected] Anil Mahendra Vice President of Sales, Politec [email protected]