The document discusses setting up JD Edwards in Brazil to support localization requirements like taxes, fiscal books, and reports, with an overview of the key steps in the implementation process including initial setup, designing the system, building out the configured solution, and handling the monthly financial close process across multiple business units and fiscal companies. It provides details on specific tax and reporting obligations in Brazil and how they can be managed within JD Edwards.

1. Delivering Customer Satisfaction in JD Edwards

2. Agenda
 Companies Overview
 Brazilian Localization High-Level Review
 JDE Brazilian Localization Support
 Project Plan
 Impacts for Fiscal Auditing
 Accounting & Fiscal Bookkeeping

3. 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, O
il & Gas, Manufacturing, Retail, Pharmaceuticals, and
more.

4. 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

5. Why OCR TI?
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

6. Brazilian Localization
Implement JD Edwards in Brazil
With Knowledge and Experience

7. Brazilian Particularities
COMPLEX FISCAL LEGISLATION
 + 110 different taxes
 Corporation and non-corporation
 Three levels of legislation: Federal, State and Municipal
 A single sales must cover all
 Different tax calculations depending on the geographical region
 Different tax rules according to industry segment
 More than 6000 changes in Legislation in one year

8. Some Taxes in Brazil
 CSS  Imposto de importação
 COFINS  IPVA
 CSLL  IPTU
 Contribuições de melhoria  ITR
 FAER  IR
 FUST  IOF
 FISTEL  ISS
 FGTS  ITBI
 FUNDAF  INSS
 ICMS  INSS empregados
 IPI  INSS patronal
 PIS/PASEP

9. Background: TAXES
Federal State
Product Movement Tax (ICMS)
Import Tax (II)
Income Tax (IR)
County
Production Tax (IPI)
Social Security Contribution (INSS) Service Tax (ISS)
Social Contributions
Social Integration Contribution (PIS)
Social Security Funding Contribution (COFINS)
Social Contribution over Net Profit (CSLL)
Social Security Contribution (FUNRURAL)
Background: OBLIGATIONS
 MANAD  GIA
 DIRF  FISCAL BOOKS
 LALUR
 DCTF > Inbound (model 1) > Production Register (model 3)
 DACON > Outbound (model 2) > Fiscal Documents / Occurencies (model 6)
 IN68
 IN86 > IPI Register (model 8) > Inventory Register (model 7)
 SINTEGRA > NFe – Nota Fiscal Eletrônica
 CIAP
 SPED > ICMS Register
 DIPJ

10. 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.

11. Legislation Overview
SPED – Federal Project
The SPED project is composed by 3 key initiatives:
Legally
Key Initiative Overview
Required
Federal Electronic Replaces Formal Nota Fiscal
Since April 2008
Invoice Printing by EI
Replaces fiscal books by a
Fiscal SPED January 2009
monthly Electronic txt file
Replaces Accounting books
Accounting SPED June 2009 (Daily Ledger and Balance
Sheet) by an annually txt file
Replaces fiscal books by a
PIS/COFINS February 2012
monthly Electronic txt file
FCONT February 2012 Accounting (P&L, equity acc)
More is coming…

12. Brazilian Localization and
JDE

13. Companies Matrix for Basic
Requirements Required
Suggested
Not Need
Company Profile
JDEdwards Support Custom
Provider
Real (Energy/Wate
Manufacturing Reseller Services Estate Mining Oil&Gas r) JDE E1 JDE WS JDE E1 JDE WS
Fiscal Y Y N N Y Y N Y Y S R
SPED
Account Y Y Y Y Y Y Y Y Y N N
Fiscal
SPED
Requirements
SPED Y Y Y Y Y Y Y Y Y S R
Contr.
FCONT Y Y Y Y Y Y Y Y Y S R
State Tax Y Y N N Y Y Y/N Y Y N N
Credits
Fed. Tax Y Y N N Y Y Y/N Y Y N N
Credits
Requirements and
Controls Average
Cost Y Y N N Y Y N Y Y S S
Products
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
High X X X Y Y
Medium X Y Y
Complexity
Low X X Y Y
N/A X Y Y

14. INVENTORY PICKING SHIPPING
ORDER
SALES ORDER APPROVAL MAKE TO ORDER
CREDIT
INVOICING GENERAL LEDGER
CONTRACT
JDEdwards System 76B
Localization for Brazil ADDITIONAL
SPECIFIC
CUSTOMER DATA
Standard
TAX CALCULATION ACCOUNTS RECEIVABLES
Option
Federal
Customer´s
Government Choice for NFe - ELETRONIC ELETRONIC
Messaging System INVOICING XML FISCAL BOOKS
State
Government Government
Messaging
Municipal Protocol
Government
NFe CERTIFICATION TAX ASSESSMENT
TAX RULES
REGULATORY
DATABASE SPED
MANDATORY REPORTS FISCAL BOOKS
Continuous Legal Support and Up-To-Date Compliance

15. 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

16. Brazilian Taxes Supported
Supported by
Apply to Goods or Processes Where Withholding
JDE
TAX Services Used Fiscal Books / SPED 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
Tax and JDE Information need to be updated during project time

17. Brazilian Taxes Supported
Supported by JDE Withholding
Books GL / NF Processes Where Used SPEDs 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

18. 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)

19. JDE Brazil Implementation
PROJECT PLAN

20. Key Deliverables - SETUP
Initials Finance Distribution Fiscal
General Ledger Referential Chart of
Inventory
Accounts (BR
Government)
Workshop to GL Books / Reports
Local Key- MRP/DRP
Users about Fiscal Books (ICMS /
JDE and IPI)
Processes for Fixed Asset (basic)
Medical devices Procurement and
in Brazil Import Process
AP / Bank Interface
SPEDs Fiscal / Acc /
PIS & COFINS
Connect users
Sales w/ Adv. Price
to change AR / Bank Interface
experience
DG Books (support
Consignment and for eBID w/ public
Real State Virtual Inv. Control Hospitals)

21. 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)

22. 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

23. Setup and Composition by B/P
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.
0001-00
0002-00 0003-00
0004-00 0005-00

24. Overview for Business Model
Required
When the billing process occurs from different States, it is required to setup multiple Fiscal Companies.
Acc Fiscal
Company Companies
Company BU / BP
US/EU
Brazil SP* / RJ**
7600RE
07600
7600FI
00000 07600
7601RE
07601
7601FI
* SAO PAULO / ** RIO DE JANEIRO (States in Brazil)

25. 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)

26. 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

27. 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

28. 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)

29. 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
Details of taxes booked
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)

30. 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;

31. 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)

32. 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.

33. JD Edwards BR Road Map

34. JD Edwards BR Road Map

35. 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
ennio.bianchinijr@damovo.com

36. 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
rblaxtar@yamana.com
mbaltonado@yamana.com

37. THE VALUES WE WILL BRING
to Bard’s Project

38. 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.

39. Thank You!
 www.ocrti.com
 contactus@ocrti.com
 cristiano.oliveira@ocrti.com
 1 714 408 1627
 1 714 598 3466
 + 55 11 4506 3180
 + 55 11 3230 7113