Oracle Financials Cloud

Latin America Cloud Local Solution Brazil

Financial and Fiscal Solution Path
A Localization Approach

Doc Id 2291252.1
Version 11.1.1113.24

15-October-2021

DISCLAIMER:

This guide may contain screen shots and output reports to facilitate the user comprehension about the topic.
The content represents a fictitious sample. Any similarity to actual persons, living or dead, or company
names, active or inactive, is purely coincidental and not intended in any manner.
TABLE OF CONTENTS
TABLE OF CONTENTS ..............................................................................................................................................2

REVISION HISTORY .................................................................................................................................................6

LATIN AMERICA CLOUD LOCAL SOLUTION FOR BRAZIL ..........................................................................................8

USER AND ROLES ...................................................................................................................................................9

IMPLEMENTER ROLES ..................................................................................................................................................... 9

FUNCTIONAL ROLES ....................................................................................................................................................... 9
ASSIGN ROLES ............................................................................................................................................................ 13
USER AS EMPLOYEE ..................................................................................................................................................... 14

GEOGRAPHY ........................................................................................................................................................ 15

DEFINE ADDRESS FORMAT ............................................................................................................................................ 15

DEFINE LOOKUP CODES FOR GEOGRAPHY......................................................................................................................... 16
DEFINE GEOGRAPHY .................................................................................................................................................... 19

GENERAL LEDGER ................................................................................................................................................. 21

RAPID IMPLEMENTATION .............................................................................................................................................. 22

ENTERPRISE STRUCTURE ...................................................................................................................................... 23

LEGAL ENTITIES ........................................................................................................................................................... 23

LEGAL REPORTING UNITS .............................................................................................................................................. 24
Define First-Party Taxpayer ID ........................................................................................................................... 24
MANAGE ASSOCIATED BALANCING SEGMENTS FOR LRU ..................................................................................................... 25
BALANCE SEGMENT VALUES (BSV) ................................................................................................................................. 25
Assign BSV in the Legal Reporting Unit .............................................................................................................. 25
MANAGE ASSOCIATED BUSINESS ENTITIES FOR LRU ......................................................................................................... 26
CONFIGURING TAX REGISTRATIONS FOR BRAZIL ................................................................................................................. 27
CNO NUMBER ........................................................................................................................................................... 28

DEFINE PARTIES FOR BRAZIL ................................................................................................................................ 30

RECEIVABLES ........................................................................................................................................................ 31

INTEREST TRANSACTION................................................................................................................................................ 31

LOCALIZATION SYSTEM OPTIONS ......................................................................................................................... 34

ENABLE REGIONAL LOCALIZATION ................................................................................................................................... 34

LOCALIZATION SYSTEM OPTION ...................................................................................................................................... 36

FISCAL DOCUMENT CAPTURE............................................................................................................................... 37

FISCAL FLOWS/CFOP .................................................................................................................................................. 38

TOLERANCES............................................................................................................................................................... 40
SUPPLIERS AND PURCHASE ORDERS ................................................................................................................................ 41
SERVICES MODEL 55 FROM BRASÍLIA .............................................................................................................................. 41

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FISCAL DOCUMENT GENERATION ........................................................................................................................ 42

FISCAL DOCUMENT GENERATION CONTROLS .................................................................................................................... 43

NFSE SUBSTITUTE ....................................................................................................................................................... 45
FISCAL DOCUMENT MODEL 21 ...................................................................................................................................... 47
Setup .................................................................................................................................................................. 48
How to Update a Note ....................................................................................................................................... 54
Create Model 21 ................................................................................................................................................. 55

TAX ...................................................................................................................................................................... 56

WITHHOLDING CALENDAR............................................................................................................................................. 58
TAX REGIME ............................................................................................................................................................... 60
BRAZILIAN TAX TYPE .................................................................................................................................................... 65
TAX .......................................................................................................................................................................... 69
TAX RATE................................................................................................................................................................... 70
PARTY FISCAL CLASSIFICATION ....................................................................................................................................... 71
PRODUCT-BASED FISCAL CLASSIFICATIONS ....................................................................................................................... 72
CONFIGURATION OWNER TAX OPTIONS ........................................................................................................................... 78
TAX RULES ................................................................................................................................................................. 80
WITHHOLDING TAXES AND MULTIPLE TAXABLE BASIS ......................................................................................................... 84
Create Formula ................................................................................................................................................... 85
Create Withholding Tax Code ............................................................................................................................. 85
Create Determine Factor .................................................................................................................................... 86
Create Conditions Values ................................................................................................................................... 87
Create Tax Rules ................................................................................................................................................. 87
Purchase Document Styles ................................................................................................................................. 88
Scenario Procedure Simulation .......................................................................................................................... 88
CALCULATE WITHHOLDING TAX WITH RETAINAGE TERMS.................................................................................................... 89
Create Formula ................................................................................................................................................... 91
Create Withholding Tax Code ............................................................................................................................. 91
Create Document Fiscal Classification ................................................................................................................ 91
Determining Factor ............................................................................................................................................ 92
Create Conditions Values ................................................................................................................................... 93

BRAZILIAN FISCAL CODES ..................................................................................................................................... 94

CST ASSOCIATION ....................................................................................................................................................... 94

MANAGE TAX RERPORTING TYPES .................................................................................................................................. 94
DEFINE CBENEF ......................................................................................................................................................... 95
DEFINE MVA RATE ..................................................................................................................................................... 96
DEFINE REDUCTION BASIS RATE ..................................................................................................................................... 98
DEFINE ORGINAL RATE ............................................................................................................................................... 100
DEFINE ICMS-ST FISCAL CODES .................................................................................................................................. 102
DEFINE ICMS DESONSONERADO .................................................................................................................................. 104
DEFINE LEGAL MESSAGES ........................................................................................................................................... 106
DEFINE TAX TYPE FOR WITHHOLDING AS TRANSACTION .................................................................................................... 108

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 DARF AND GPS ASSOCIATION..................................................................................................................................... 110

PAYABLES .......................................................................................................................................................... 112

DEFINE PAYMENT TERMS ............................................................................................................................................ 112

PROCUREMENT .................................................................................................................................................. 113

DEFINE TAX AUTHORITY.............................................................................................................................................. 113

PROCUREMENT MANAGEMENT......................................................................................................................... 116

MAPPING SUPPLIER ITEM............................................................................................................................................ 116

SELF-ASSESSED TAX............................................................................................................................................ 117

PROCUREMENT TRANSACTION ACCOUNT RULES .............................................................................................................. 117

LOOKUPS ................................................................................................................................................................. 118
TAX DEFINITIONS....................................................................................................................................................... 118
PIS AND COFINS DEFINITION ...................................................................................................................................... 119
PIS AND COFINS COST DEFINITION ............................................................................................................................ 125
PIS AND COFINS RECUP DEFINITION .......................................................................................................................... 130
DIFAL DEFINITION .................................................................................................................................................... 135
IPI REP DEFINITION................................................................................................................................................... 140
TAX REGISTRATION .................................................................................................................................................... 145

SPECIAL TAXES ................................................................................................................................................... 147

ICMS DEFERRED (DIFERIDO) ....................................................................................................................................... 147

ICMS Normal .................................................................................................................................................... 148
ICMS Report...................................................................................................................................................... 153
ICMS Deferred .................................................................................................................................................. 158
Define Calculation Formula using ICMS-Normal and ICMS-Deferred taxes ..................................................... 163
DEFINE ICMS PARTILHA ............................................................................................................................................. 164
ICMS RE 574.706 ................................................................................................................................................... 168
ICMS Tax as Report .......................................................................................................................................... 168
Formula ............................................................................................................................................................ 169
Party Fiscal Classification ................................................................................................................................. 169
Tax Rules for Inbound ....................................................................................................................................... 169
Tax Rule for Outbond ....................................................................................................................................... 169

DOING TRANSACTION ........................................................................................................................................ 170

FISCAL DOCUMENT CAPTURE ENTRANCE ........................................................................................................................ 170

MAIN PROCESS JOB ................................................................................................................................................... 176

SCENARIOS ........................................................................................................................................................ 177

RESALES WITH IPI NOT ICMS ST ................................................................................................................................. 177

CONSUMPTION WITH IPI ............................................................................................................................................ 181
FREIGHT ACQUISITION (CTE) ....................................................................................................................................... 182
FIXED ASSET NOT IPI .................................................................................................................................................. 185
CONSIGNED .............................................................................................................................................................. 186

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BRAZILIAN FINANCIAL BANKS ............................................................................................................................ 189

PIX PAYMENT FOR ITAU BANK ..................................................................................................................................... 189

FREQUENTLY ASKED QUESTIONS (FAQ) ............................................................................................................. 191

HOW TO VIEW A XML FILE STRUCTERED?...................................................................................................................... 191

WHAT ARE A DIFERENCE BETWEEN SPECIAL INCLUSIVE AND STANDARD INCLUSIVE TAX? ......................................................... 191
SHOULD “TIME ZONE” NEEDS TO BE DEFINED IN THE LEGAL ADDRESS? ............................................................................... 191
HOW TO HAVE A CORRECT ACCOUNTING FOR AN EXPENSES OR SERVICES PO? ..................................................................... 191
WHY PURCHASE ORDER IS NOT SHOWN IN FDC? ............................................................................................................ 191
WHY TAXES IS NOT BEEN CALCULATED IN THE ERP CLOUD? .............................................................................................. 192
WHY ICMS TAX OR ISS TAX DOES NOT CALCULATED IN THE TRANSACTIONS? ....................................................................... 192
ERROR AT “SHIP TO SITE” FOR RECOVERABLE TAX RULE .................................................................................................... 192
UNDERSTANDING PLACE OF SUPPLY .............................................................................................................................. 192
BEST PRACTICE TO SETUP A RECOVERABLE TAX RATE ........................................................................................................ 192
CAN I USE THE SAME EETERMINING FACTOR FOR MORE THAN ONE TAXES ........................................................................... 193
HOW TO DEFINE MINIMUM TAX AMOUNT FOR WITHHOLDING TAX? ................................................................................. 193
HOW TO CHANGE IRRF TAXABLE BASES USING INSS TAX AMOUNT? ................................................................................. 194
HOW TO OPEN A SERVICE REQUEST (SR) FOR FDG, FDC AND LACLS? .............................................................................. 194
WHICH PARTY SHOULD BE DEFINE IN THE TAX REGIME? ................................................................................................... 195
WHY TAX CLOUD DOES NOT CALCULATE? ...................................................................................................................... 195
HOW TO DEFINE A BRAZILIAN CALENDAR? ..................................................................................................................... 195
HOW TO DEFINE DOCUMENT TO TAX AUTHORITY? .......................................................................................................... 196
WHY PURCHASE ORDERIS DOES NOT HAVE INCLUSIVE TAX IN AP INVOICE MATCH? ............................................................... 196
HOW TO IDENTIFY TAXABLE REGIME FOR DIFFERENT COMPANIES? ..................................................................................... 196
WHEN SHOULD IT USE A LOCATION OF FINAL DISCHARGE? ................................................................................................ 196
HOW TO IDENTIFY TAXABLE REGIME FOR DIFFERENT COMPANIES? ..................................................................................... 196
HOW TO CHANGE “ACCOUNTING CLASS” FOR FISCAL DOCUMENTS FROM FDC TO AP? .......................................................... 197

APPENDIX 1 – ACCOUTING FLOW WT TAX ......................................................................................................... 198

5
REVISION HISTORY

This document will continue to evolve as existing sections change and new information is added. All
updates are logged below, with the most recent updates at the top.

Date Version Notes

15-Oct-2021 11.1.1113.24 Define two new report codes to attend MVA Percentage for
ICMS-ST and Reduction Basis Percentage.
LACLS_BR_MVA_RATE_ICMSST
LACLS_BR_RED_BASIS_RATE
08-Sep-2021 11.1.1113.23 Include procedure to associate BSV in the LRU.
06-Sep-2021 11.1.1113.22 Update Model 21 to use Note instead DFF.
New setup and procedure to calculate withholding tax with
multiples taxable basis and retainage terms.
13-Aug-2021 11.1.1113.21 Clarify procedure when it is must calculate PIS and COFINS taxes
printed (destacado) in the fiscal document.
06-Aug-2021 11.1.1113.20 Adjusts in the ICMS Deferred definition
Procedure to attend ICMS RE#547.706
04-Aug-2021 11.1.1113.19 New Structure for Tax Reporting Type
Change original document title from "Fiscal Solution Path" to
"Financial and Fiscal Solution Path"
Pix Payment for Itau Bank
27-Jun-2021 11.1.1113.18 Reviewed spelling errors
Change Brazilian NFSe procedure to import XML in FDC

15-Jun-2021 11.1.1113.17 Define ICMS Diferred (Diferido)

Define ICMS Partilha
Define general messages for Model 21
Define Note Type to store Hash Code
Change Accounting Class for fiscal documents from FDC to AP

6
Date Version Notes
19-May-2021 11.1.1113.16 Update regime for ICMS, IPI, ISS, II, IOF, PIS and COFINS
Update steps procedures for Model 21
18-May-2021 11.1.1113.15 Update new instruction about CNO Number
06-May-2021 11.1.1113.14 New Tax Reporting Type and Tax Type to attend ICMS Deferred
(ICMS Diferido)

05-May-2021 11.1.1113.13 New feature Model 21

Change name NFSe-Replacement to NFSe-Substitute
CNO Number for Social Security and Labor Obligations bookkeeping
(eSocial) in Brazil for services related to construction industry
New group: G_FINAL_DISCHARGE_LOCATION in
LACLS_ExtractApSpedData_Incremental extractor

19-Mar-2021 11.1.1113.12 Tax Reporting Type to indicate Transaction Tax as Withholding Tax
in AR Extractor
New Feature NFSe-Substitute
02-Mar-2021 11.1.1113.11 Fiscal Document Services Model 55 from Brasilia-FDC
New Tax Reporting Type
Change Self-Assessed document layout
12-Feb-2021 11.1.1113.10 Change how to define IPI Tax Report and DIFAL Tax
04-Feb-2021 11.1.1113.9 Included procedure to open SR for FDG, FDC and LACLS- Extractor
01-Jan-2021 11.1.1113.8 Included rules for tax type in the AP-ISV Extractor
03-Dec-2020 11.1.1113.7 Included important information about Tax Type on Tax chapter
Include more information about COTO to Payables
10-Sep-2020 5 Change lookup code IRPF
Change steps and name for DARF and GPS Association
04-Sep-2020 4 New procedure to define Brazilian Tax Type
Associate tax in the catalog
New information on FAQ
Change procedure about Withholding Tax progressive table
association for IRPF Tax
27-Aug-2020 3 Define Configuration Owner Tax Options for Brazil and appendix 1
Define Tax Registration
Reduction IRPF Taxable Base
Map Supplier Item to Internal Item
14-Aug-2020 2 Define lookups for a tax type
12-Aug-2020 1 First version document

7
LATIN AMERICA CLOUD LOCAL SOLUTION FOR BRAZIL

This document aim to help consultants that are implementing Fiscal Document Capture (FDC), Fiscal
Document Generation (FDG) and Tax for Brazil, with an easy guidelines, step by step, through
product setup configuration describing an approach already tested by Localization team. This is not
the only one approach, since company can have specific business requirements.

The way this document organized, presents some tasks are a part of common features or tax
configuration. There are briefly described here, and for more information on the setup of
common features and tax configuration, see the corresponding Oracle Financials Cloud
implementation guides at (http://docs.oracle.com).
USER AND ROLES

This topic shows what are the roles necessary for implementer user, FDC user, FDG user and
Tax user.

IMPLEMENTER ROLES

The roles bellow must be assigned for implementer users:

Role Name Description

Application Implementation Performs setup tasks for ERP Cloud.

Consultant

Application Implementation Manages implementation projects. Also responsible for assigning task
Manager owners, but does not perform setup tasks.

Financial Application Manages financial application administration. Collaborates with

Administrator financial application users to maintain consistent financial application
setup, rules, and access.

IT Security Manager Accesses to create users, define custom roles and assigned roles in the
users.

Employee Identifies the person as an employee.

FUNCTIONAL ROLES

Functional roles must be assigned for implementer users and final users that will works in the
functional areas. The table below list roles and a brief description about it.

For more information about Job Roles, see the Oracle Applications Cloud Security Reference for
Common Features and Oracle Financials Cloud Security Reference for Financials guides on the
Oracle Help Center (http://docs.oracle.com).

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Role Name Description

Accounts Payable Manager Manages Accounts Payable department and personnel. Overrides exceptions, analyzes
Oracle Fusion Payables balances, and submits income tax and withholding reports to
meet regulatory requirements.

Accounts Payable Specialist Enters invoices ensuring accuracy, uniqueness, and completeness. Matches invoices to
correct purchase orders or receipts ensuring that invoices comply with company policy.

Accounts Payable Supervisor Oversees the activities of Accounts Payables Specialists. Initiates and manages pay
runs. Resolves nondata entry holds.

Accounts Receivable Manager Manages all accounts receivable activities, including defining policy and controls,
establishing processes and procedures, resolving issues, monitoring and analyzing
accounts receivable balances, and creating reports and business intelligence.

Accounts Receivable Specialist Manages and implements all customer payment activities, including receiving
customer payments and electronic remittance advice, performing cash handling
activities, processing customer payments, and applying payments to customer
accounts.

Asset Accountant Performs asset transactions including additions, adjustments, transfers, and
retirements, ensuring accuracy and completeness. Verifies asset information,
transaction details, and accounting entries through inquiry and reports.

Asset Accounting Manager Manages fixed assets department and personnel. Monitors and performs asset
transactions, maintains asset books and set ups in Oracle Fusion Assets, and views
asset information and accounting entries.

Buyer Create purchasing order

Cash Manager Protects and develops the company's liquid assets maximizing their use and return to
the organization.

Catalog Manager Create and update catalog in the ERP cloud

Category Manager Create and update category in the ERP Cloud

Cost Accountant Manage Costing

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Role Name Description

Accounts Payable Manager Manages Accounts Payable department and personnel. Overrides exceptions, analyzes
Oracle Fusion Payables balances, and submits income tax and withholding reports to
meet regulatory requirements.

Expense Audit Manager Plans, leads, and controls the activities of the internal audit staff to achieve the
objectives of the Internal Audit function for an organization.

Expense Auditor Reviews and audits expense reports on a daily basis to ensure compliance with the
company's reimbursement policy.

Expense Manager Manages company's expense policies and processes. Reviews and proposes changes to
expense policies.

Financial Analyst Analyzes the financial performance of an enterprise or an organization within an

enterprise.

Financial Application Manages financial application administration. Collaborates with financial application
Administrator users to maintain consistent financial application setup, rules, and access.

Financial Integration Specialist Individual responsible for planning, coordinating, and supervising all activities related
to the integration of financial information systems.

General Accountant Records and reports financial transactions and manages revenue, expense, asset,
liability and equity accounts. Responsible for recording accounting adjustments,
accruals, allocations, currency revaluations and translations.

General Accounting Manager Records and reports financial transactions and manages revenue, expense, asset,
liability and equity accounts. Responsible for recording accounting adjustments,
accruals, allocations, currency revaluations and translations.

Procurement Application Create and update procurement setup

Administrator

Procurement Contract Create and update contract setup

Administrator

Procurement Manager Create orders

Supplier Administrator Manages supplier profile and user provisioning.

11
Role Name Description

Accounts Payable Manager Manages Accounts Payable department and personnel. Overrides exceptions, analyzes
Oracle Fusion Payables balances, and submits income tax and withholding reports to
meet regulatory requirements.

Procurement Catalog Procurement Catalog Administrator

Administrator

Supplier Manager Create and update suppliers

Tax Accountant Prepares and files tax returns and reports for an enterprise, including country, federal,
state, and local corporate, payroll, and transaction taxes.

Tax Administrator Sets up technical areas and the integration with tax service providers.

Tax Manager Defines the tax policies and most efficient tax configuration. Sets up relatively stable
entities that seldom require updates, such as tax regimes and taxes.

Tax Specialist Maintains tax configuration, especially the variable entities that require periodic
updates, such as tax rates and tax jurisdictions.

Role do FDC Fiscal Document Capture duty role

Role do FDG Fiscal Document Generation duty role

12
ASSIGN ROLES

The user must be previous created in the Oracle ERP Cloud, please check this information with
the administrator responsible in the system

Following the steps below to define a user in the ERP Cloud:

1- Go to Tools and click on Security Console

2- Go to Users
3- Search for your user.
4- Click on the user name to open a new UI to edit information.
5- Click on Edit
6- Click on Add Role

7- Search for intended role.

8- Click on the Add Role Membership and Done

NOTE: Add Role Membership option will be unavailable if the role is already associated with your user.

9- Save and Close and click Done

10- Log out from the Oracle ERP Cloud and sign in again to ensure the changes take effect.

13
USER AS EMPLOYEE

To enable your user with employee access, perform the following steps:

1- Go to Setup and Maintenance

2- Setup Financials Offerings
3- Functional Areas Users and Security
4- Task Manage Users
5- Click on Create
6- In the Personal Details, fill with the required information ( Last Name, First Name, Email,
Hire Date )
7- In the User Details, enable the Link User Account, and click on the Link icon.
8- Select your user and click Save and Close.
9- In the Employment Information, fill with the required information:
a. Person Type > Select Employee
b. Legal Employer > Select your Legal Employer
c. Business Unit > Select your Business Unit
10- Save and Close

14
GEOGRAPHY

You must define geography to inform in the tax level region (Country, State or City) and the
jurisdiction level where the tax will apply.

This structure will affect Supplier, Customer and Legal Structure to calculate a tax in the transaction.

This step is divided in:

- Define Address Format

- Define Lookup Codes for Geography
- Define Geography

DEFINE ADDRESS FORMAT

To define the address format for Brazil, perform the following steps:

1. Click on Home
2. Click on Setup and Maintenance
3. Search for Define Address Configuration
4. Click on Define Address Configuration to open tasks
5. Click on task Manage Address Formats to open the task
6. Select Brazil in the Country field and search
7. Update Brazil Posta Address Format
8. Define address as show below:

9- Save and Close

15
DEFINE LOOKUP CODES FOR GEOGRAPHY

The lookup code is an alternative field in the geographic structure to define some Brazilian
Government requirements as:

- IBGE Code: Brazilian Institute of Geography and Statistics where define conde for States
and Cities
- SISCOMEX Code: used to define code for foreign countries

DEFINE ALTERNATIVE FIELDS FOR IBGE CODES

The Brazilian Institute of Geography and Statistics (IBGE) defines standard numeric codes for each city and state
in Brazil. The tax authority requires these geography identification codes.

Note: In the geography structure, they are defined as alternative codes.

To create a new alternative code type by entering a lookup value for geography identifier subtype, perform the
following steps:

1. Navigate to Setup and Maintenance

2. Search for the Manage Geography Lookups task;
3. Select HZ_GEO_IDENTIFIER_SUBTYPE;
4. In the Lookup codes section, click New;
5. Enter the lookup code as IBGE_CODE;
6. Enter the start date of the record;
7. Click Enabled;
8. Enter the following values:
Attribute Value

Brazil IBGE Geography Code

Meaning
Brazil IBGE Geography Code
Description
C
Tag

9. Click Save and Close.

16
DEFINE ALTERNATIVE FIELDS FOR SISCOMEX CODE

The Brazilian Central Bank (BACEN) defines standard numeric codes for each Country. The tax
authority requires these geography identification codes for foreign transaction. If you do not have
business in others countries you should not define this step

To create a new alternative code type by entering a lookup value for geography identifier subtype, perform the
following steps:

1. Navigate to Setup and Maintenance

2. Search for the Manage Geography Lookups task;
3. Select HZ_GEO_IDENTIFIER_SUBTYPE;
4. In the Lookup codes section, click New;
5. Enter the lookup code as SISCOMEX_CODE;
6. Enter the start date of the record;
7. Click Enabled;
8. Enter the following values:

Attribute Value

Siscomex Code
Meaning
Siscomex Code
Description
C
Tag

9. Click Save and Close.

CHECK IBGE CODES FOR CITIES AND STATES

To configure the corresponding IBGE code as an alternative code for the geography for each state, perform the
following steps:

1. Navigate to Setup and Maintenance

2. Search for the Manage Geographies task;
3. In the Country Name field, select Brazil;
4. Select the Brazil geography record and click Hierarchy Defined;
5. In the Geography Hierarchy section, select first state under Brazil to highlight the table row;
6. Click Edit. The Edit State page opens;
7. In Primary And Alternative Codes section, click Add;
8. Enter the following values
9. Click Save and Close;
10. Repeat these steps for the other states.

17
CHECK SISCOMEX CODES FOR COUNTRIES

To configure the corresponding SISCOMEX code as an alternative code for the geography for each Country,
perform the following steps:

1. Navigate to Setup and Maintenance

2. Search for the Manage Geographies task;
3. In the Country Name field, select Brazil;
4. Select the Brazil in search results to highlight the table row;
5. Click Edit. The Edit Country page opens;
6. In Primary And Alternative Codes section, click Add;
7. Enter the following values:
8. Click Save and Close.

18
DEFINE GEOGRAPHY

To create Brazil Geography, you must define:

- Define Geography Structure

- Define Geography Validation
- Define Geography Hierarchy

DEFINE GEOGRAPHY STRUCTURE

To define the geography structure, perform the following steps:

1. Go to Setup and Maintenance

2. Setup Financials Offerings;
3. Navigate to Functional Areas Enterprise Profile;
4. Click on Manage Geographies task;
5. In the Country Name Field, select Brazil;
6. Search for Brazil
7. From the Actions menu, select Structure Geography;
8. Click Create;
9. Select the geography type as State and click Add;
10. Select the geography type as City and click Add;
11. Select the geography type as Postal Code and click Add;

12. Click Save and Close.

19
DEFINE GEOGRAPHY VALIDATION

To configure the geography validation and address styles for Brazil, perform the following steps:

1. Navigate to Manage Geographies task;

2. Search for the country Brazil;
3. From the Actions menu select Validation Geography;
4. Click add and add the following address style formats:
i. Brazil Postal Address Format;
ii. Brazil Tax Address Format.
5. In the Address Style Format field, select No Styles Format.
6. In Geography Mapping and Validation region, select the geography type as State.
7. Select the Enable List of Values, Tax Validation, and Geography Validation check boxes.
8. Select the geography type as City.
9. Select the Enable List of Values, Tax Validation, and Geography Validation check boxes.
10. Repeat these steps for the Brazil Postal Address Format and Brazil Tax Address Format
address style formats.

11. Click Save and Close.

DEFINE GEOGRAPHY HIERARCHY

You can manually enter with each state and city or upload a file using “Manage File Import Activities”.

20
GENERAL LEDGER

Some specific account combinations need to be defined before working with Fiscal Documents
in Brazil.

Define General Accounting for

 transaction taxes

 withholding taxes

 recovery taxes

 fixed assets

 inventory items,

 costs

 supplier

 customer

 expense accounts

 payments

 accounts payables

 accounts receivable

 revenue

 freight

 miscellaneous

21
RAPID IMPLEMENTATION

Rapid implantation is a way to create GL Accounts in Oracle General Ledger. This spreadsheet
creates all GL Structure (chart of account, segment values, accounting calendar and ledger
book). It is possible create a Legal Entity and Business Unit for the company.

Perform the following steps to find a General Ledger rapid implementation in the Oracle ERP
Cloud:

1. Go to Setup and Maintenance

2. Navigate to Tasks Icon on the right side on the UI
3. Click Search;
4. In the Search page, search by Define Enterprise Structures Configuration for Rapid
Implementation and click the task link;

5. Select the Create Chart of Accounts, Ledger, Legal Entities, and Business Units in
Spreadsheet to define the business requirements;

6. After define your business requirement in the rapid implementation upload the files using the
sequence bellow:
a. ChartOfAccounts.zip
b. FinancialsCommonEntities.zip

7. If the process upload with success check your configuration.

22
ENTERPRISE STRUCTURE
It is mandatory complement fiscal information for enterprise. All steps is described in the document LACLS Fiscal
ISV Integrations for Brazil available in My Oracle Support note number 2240956.1

This chapter lists steps to setup a basic enterprise structure for Brazil.

LEGAL ENTITIES

Verify if the Legal Entity has the Purpose defined, perform the following steps:

1. Navigate to Setup and Maintenance -> Financial -> Legal Structures

2. Select the Scope for Manage Legal Entities option;
3. If the scope already selected, click on Manage Legal Entities link.
4. In the Name field, inform the Company Legal Name;
5. In the Legal Entity Identifier field, inform the Company Taxpayer identifier;
6. In the Legal Entity Address section, click Create and in the field Purpose, inform Legal option in the
List of Value;
7. Click Save and Close.

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LEGAL REPORTING UNITS

Legal Reporting Units are used to issue and receiving fiscal documents in the ERP Cloud and integrate information
to ISV.

Generally Company has one main LRU that usually it is a parent CNPJ and the others LRUs are the subsidiaries of
parent CNPJ.

How to define address and address propose for each LRU to the company.

1. Navigate to Setup and Maintenance -> Financial -> Legal Structures

2. Select the Scope for Manage Legal Reporting Unit option;
3. Inform the subsidiary name in the Legal Reporting Unit Name;
4. Create on Create option, in the Legal Reporting Unit Addresses section, to inform the subsidiary
address.
5. Inform the “Time Zone” for the subsidiary.
6. Inform an older date in the “From Date” field
7. Active the address as Primary flag.
8. Click on Create option, in the Address Purpose section, to define propose address for shipment
transactions, the fiscal document generation feature requires the legal reporting unit associated with the
ship-from and ship-to organizations.
Note: More information about this step go to MOS and search Order to Cash for Brazil (Doc ID
2335507.1), document name “Configuring Fiscal Documents for Brazil” chapter “Define Ship-From and
Ship-To Legal Reporting Units”.
9. Save and Close

DEFINE FIRST-PARTY TAXPAYER ID

Check the document Tax Registrations and Taxpayer IDs for Brazil (Doc ID 2347408.1) to define CNPJ, IM. IE
and SUFRAMA for subsidiaries (LRUs) to the company.

24
Manage Associated Balancing Segments FOR LRU

Company must associated the Balance Segment Values (BSV) in the Main LRU to integrate journal lines and balance
accounts to Fiscal ISV generate Accounting SPED.

How to associate BSV:

1. Navigate to Setup and Maintenance -> Financial -> Legal Structures

2. Choose for Manage Associated Balancing Segments;
3. Select the Main LRU in the Scope field;
4. Click on Create option;
5. Select the BSV;
6. Inform an older date in the “Start Date”;
7. Save and Close.

BALANCE SEGMENT VALUES (BSV)

To assign Legal Entity and Balance Segment Values (BSV) in the Primary Ledger, perform the following steps:

1. Navigate to Setup and Maintenance > Financial > General Ledger;

2. Change the option Show field to All Tasks;
3. Select the Scope for Manage Primary Ledgers option;
4. Choose the Assign Balancing Segment Values to Legal Entities;
5. Enter the following values, informing the respective Name for each Type selected:
6. Click Save and Close.

ASSIGN BSV IN THE LEGAL REPORTING UNIT

The Balance Segment Value must be associated in the Legal Reporting Unit, because LACLS ISV identify the CNPJ
for company in the SPEP Accounting.

If your company has a SPED Accounting by main CNPJ the BSV must be associated in the main LRU. However if
the SPED Accounting is reported by establishment the association must be by LRU and if company needs to report
in this way the establishments must be defined as BSV in the General Ledger Chart of Accounts.

Note: Define establishment as BSV because ERP Cloud assign only primary segment balance in the Manage
Associated Business Entities.

1. Navigate to Setup and Maintenance > Legal Structures

2. Change the option Show field to All Tasks;
3. Choose the LRU in the Scope;
4. Select the Manage Associated Business Entities;
5. Click on Create;
6. Select the BSV for LRU;
7. Save and Close.

25
MANAGE ASSOCIATED BUSINESS ENTITIES FOR LRU

Ensure that the same is setup for Business Unit, Inventory Organization & Ship from or to location.

This setup is import to the ERP Cloud found the CNPJ in the transaction for fiscal bookkeeping.

To define the Associated Business Entities structure, perform the following steps:

1. Navigate to Setup and Maintenance -> Financial -> Legal Structures

2. Select the Scope for Manage Associated Business Entities option;
3. If the scope already selected, click on Manage Associated Business Entities link.
4. Click Create;
5. Enter the following values, informing the respective Name for each Type selected:

Type Name

Select option in List of Values

Bill From or to location
Select option in List of Values
Inventory Organization
Select option in List of Values
Business Unit
Select option in List of Values
Ship From or to location

6. Click Save and Close.

26
CONFIGURING TAX REGISTRATIONS FOR BRAZIL

Check the document Tax Registrations and Taxpayer IDs for Brazil (Doc ID 2347408.1) to define CNPJ, IM. IE
and SUFRAMA for subsidiaries (LRUs) to the company.

27
CNO NUMBER

CNO (Cadastro Nacional de Obras) is requirement number control by Federal Goverment (Receita Federal) for
each activity constrution in the Brazil.

This topic describe how to define the CNO Number in the ERP Cloud.

ISV integration can consume this information in LACLS_ExtractApSpedData_Incremental extractor, tag

“<CNO_NUMBER/>”.

DEFINE CNO NUMBER

Steps to define CNO Number:

1- Navigate to Setup and Maintenance click on Menu Tasks (located on right) and select Search option.
2- Inform Manage Classification Categories in the field and search for it.
3- Open Manage Classification Categories.
4- Create a new classification category.
5- Inform LACLS_BR_CNO_NUMBER in the fields:
a. Classification Category Field
b. Classification Category Meaning
c. Classification Category Description
6- Save information.
7- Click on Create Classification Codes.
8- Create a code, click on creation option.

9- Click on Next field.

10- Inform the CNO data information:
a. Classification Code: CNO Number
b. Classification Code Meaning: CNO information
c. Classification Code Description: CNO complement information

11- Save the information and OK.

12- Click on Save and Close.
13- Search the LACLS_BR_CNO_ NUMBER
14- Click on Edit

28
 15- Click on Add Row in the Entity Assignment
16- Inform AP_INVOICES_ALL and HZ_PARTIES in the Table Name field
17- Save and Close

Steps to execute Classification Hierarchy Generation job:

1- Navigate to Tools option.

2- Select Scheduled Process.
3- Click on Schedule New Process.
4- Search the job.
5- Inform Classification Hierarchy Generation in the Name field and search for it.
6- Click ok.
7- Search for LACLS_BR_CNO_NUMBER in the Classification Category parameter.
8- Change Flattening Method to Force Flattening parameter.
9- Submit job.

Final steps to create a CNO Number must be check in the DocId 2654454.1 (AP: Payables Invoices Questions For
Brazil) available in My Oracle Support.

29
DEFINE PARTIES FOR BRAZIL

Parties can be a supplier, customer or freight carrier that company has a business. The procedure to
create Tax Payer Id (CNPJ) and inscriptions (IM/IE) is described in the note 2347408.1 available in My
Oracle Support

CUSTOMER INFORMATION

It is important define at least one phone and e-mail in the customer. This information will be used in the
Fiscal Document Issue.

For contacts use primary contact registration available in communications area on site level.

FREIGHT CARRIER

Freight Carrier is register as supplier in the Oracle ERP Cloud.

30
RECEIVABLES

As a system prerequisite for defining Localization System Options for Brazil, you need to define
which transaction source, transaction types and receipt methods that are subject to interest
transactions.

INTEREST TRANSACTION

Sales transactions (goods and services) can have interest on the receipt transaction and the system
needs the following setup to create the interest transactions.

INTEREST RECEIPT METHOD

The receipt method is import for system create an interest transaction. This value will be used in the
Localization System Option for Brazil setup.

To define an Interest Receipt Method for Brazil, performing the steps bellow:

1- Navigate to Setup and Maintenance >Financials Offerings> Customer Payments >

Manage Receipt Classes and Methods
2- In the Receipt Classes and Methods page, click on create
3- In the Create Receipt Class and Methods, enter with a name for your interest receipt
method.
4- Select the Creation Method, the Remittance method and the Clearance method.
5- In the Regional Information field, select the Receipt Class for Brazil option;
6- In the Receipt Methods section, click on create
7- Enter with an Interest Receipt Method name and the effective start date.
8- Save and Close

31
INTEREST BATCH SOURCE

Transaction sources are used to assign a default transaction type during invoice entry in the
interest transactions.

To define an Interest Transaction Source performing the steps bellow:

1- Navigate to Setup and Maintenance > Financials > Customer Billing > Manage Transaction
Source
2- In the Transaction Source page, click on Create ( + ) menu
3- In the General Information section, select the Transaction Source Set option
4- Enter with the name of Interest Transaction and Description Select Manual in the type option
5- Select Manual in the type option
6- Enable the Active check box
7- Enter with the start date
8- In the Source Details section, enable check Automatic transaction numbering
9- Enter with the Last Transaction Number
10- Click Save and Close

INTEREST TRANSACTION TYPE

Transaction types contains information about interest transaction types used for invoices, bills receivable, and credit
memos.

To define an Interest Transaction Type, performing the steps bellow:

1- Navigate to Setup and Maintenance > Financials > Customer Billing > Manage Transaction Type

2- In the Transaction Type page, click on Create ( + ) menu

3- Enter with Name of the Interest Transaction in the Name field.

4- Select Debit Memo in the transaction class field

5- Select Open option in the transaction status field

6- Enter with the start date for the transaction type

7- In the Creation Sign, select Positive Sign

8- In the Generate Bill, select Yes option

9- Enable the Open Receivable option

10- Allow adjustment posting option

11- Enable Post to GL option

32
12- Enable Natural application only option

13- In the Reference Accounts, click on create and enter with accounting combination for your Business Unit and
Ledger.

14- Click Save and Close

33
LOCALIZATION SYSTEM OPTIONS

It is necessary enable Regional Localization in the Oracle ERP Cloud to define system option for
Brazilian Solution.

The configuration tasks are organized sequentially in this document to ensure that you perform
setup tasks in the appropriate order. Certain tasks are a part of common features or tax
configuration, and these are briefly described here. For more information on the setup of common
features and tax configuration, see the corresponding Oracle Financials Cloud Implementation
guides at (https://docs.oracle.com/)

ENABLE REGIONAL LOCALIZATION

Navigate through:

1. Go to Setup and Maintenance

2. Navigate to Actions menu and click Go to Offerings;

3. Select Financials Offerings and click on Opt In Features;

34
4. Select Financials Feature and click Edit;

5. Select Regional Localizations Feature and click Edit Enable;

6. Select Brazil check box, click Save and Close and Done.

Note: This enables the specific features for Brazil.

35
LOCALIZATION SYSTEM OPTION

The steps described in this topic reference to a fresh install environment.

Before starting this setup it is important check the Receivables Cloud topic and define values for
fields:

- Interest Receipt Method

- Interest Batch Source
- Interest Transaction Type

Navigate through:

1. In the Setup and Maintenance page, navigate to Tasks Icon ;

2. Navigate to Search Tasks;
3. Search for Manage Localization System Options and click on link;
4. Click on Create;
5. Select a Brazilian Business Unit;
6. Define the field requirement on the Localization System Options UI.
7. Enable field “Enable Fiscal Document Processing” to enable Business Unit run the FDG and
FDC.
8. Salve and Close.
When this feature is enabled it changes the way purchasing receiving, costing, shipping,
accounting receivables works.
The PO Receiving and Costing will only consider the Inventory Item transaction from FDC
source.
The Shipping is enable to work with FDG
The Receivables is enable to work with FDG and the transaction is completed only with FDG
return from tax authority. Save and Close.

36
FISCAL DOCUMENT CAPTURE

A fiscal document is captured automatically using an XML import process or captured manually.

This process of capturing the fiscal document information is closely related to the business flow of the
receiving, shipping (for in transit receipts), and inventory management applications.

It´s important to mention that FDC only works with fiscal document models 55 (goods) and 57 (freight)
for automatically entrance flow. For manually entrance FDC can handle other fiscal documents models
beyond models 55 and 57.

The main purpose of FDC is allow entrance of fiscal documents and relationship among them in order
to have proper acquisition costs for inventory item.

For expenses item and services the customer can alternatively chose to enter straight to AP (Account
Payables).

MAIN FISCAL FLOWS

• Standard Documents - Purchase orders for goods

• Standard Documents - Purchase orders for services

• Complementary standard documents

• Drop shipment remittances

• Drop shipment sales

• Complementary drop shipment sales

• Freight acquisition

• Complementary freight acquisition

• Internal transfer

• Import goods

• Goods Return

37
FDC MAIN FEATURES

FISCAL FLOWS/CFOP

FDC needs to have all the flows defined and CFO´s associated in order to automate the inbound
process, when using XMLs files. The process uses the outbound CFO that come in the supplier xml
file to identify the right flow to follow.

Steps

1- Fiscal Document Capture work area

2- Tasks panel drawer

3- Manage Fiscal Flows

38
Note: if for some reason you need to add a new CFO here, it´s necessary to open an SR asking for it. It´s not
allowed to create values here with your on

All Fiscal Flows are seed data and should be reviewed by implementer because for some CFOP there are more
than one possible flow

39
TOLERANCES

FDC will consider the tolerance defined here to validate, or not, the fiscal document entrance.

The tolerance can be defined at Supplier, Inventory Organization and Item level.

Steps

1- Fiscal Document Capture work area

2- Tasks panel drawer

3- Manage Fiscal Document Tolerances

Note: if FDC doesn´t find any tolerance set here, the system follows the hierarchy existing in the process: PO,
Receiving options and so on

40
SUPPLIERS AND PURCHASE ORDERS

Suppliers are created and purchase orders (when applicable) are entered against these suppliers –
The supplier must exist in the system in order to have its fiscal document registered by FDC.

The same occurs with the PO (purchase order), you need to create it previously if you want to have
the fiscal document received against it.

Steps to search Supplier:

1- Procurement
2- Suppliers

Navigation: Suppliers work area => Tasks panel drawer => Search area

Type the name of supplier to search for it and tap “enter”

If you need to create a new supplier, you can find more details at http://docs.oracle.com

Steps to search a PO

1- Procurement
2- Purchase Orders

Navigation: PO work area => Tasks panel drawer => Orders => Create Order

Fill the fields with the Supplier information and click in Create button. Finish to complement the PO
information and then submit for approval.

Note: Things FDC consider to be able to find the PO to receive it:

- Status “Open” (approved)

- The “Invoice Match Option MUST be “Receipt”

If you don´t pay attention in these things, FDC won´t be able to use your PO to receive the fiscal document
against it

For more information about Fiscal Document Capture see Procure to Pay for Brazil (Doc ID
2347415.1) on MyOracle Support (https://support.oracle.com/).

SERVICES MODEL 55 FROM BRASÍLIA

Fiscal Document Capture is able to process fiscal document Services Model 55 from Brasília. Before execute check
the following tasks:

1- Map Supplier Item with Internal Item

2- Change CMK to replace 00 to 00000000 for NCM tag.
3- The XML must be in the UFT-8 format.

41
FISCAL DOCUMENT GENERATION
The configuration tasks are organized sequentially in this document to ensure that you perform setup tasks in the
appropriate order. Certain tasks are a part of common features or tax configuration, and these are briefly described
here. For more information on the setup of common features and tax configuration, see the corresponding Oracle
Financials Cloud Implementation guides at (https://docs.oracle.com/).

For more information about Fiscal Document Generate see Order to Cash for Brazil guide (Doc ID 2335507.1)
on MyOracle Support (https://support.oracle.com/).

Before you configure a fiscal document, you must enable the fiscal document generation feature by performing the
following steps:

Note: Ensure that you assigned the Financials Administration for Brazil duty role to the user to configure the fiscal
document generation feature and the Fiscal Document Generation duty role to the user to enable the creation and
handling of fiscal documents.

42
FISCAL DOCUMENT GENERATION CONTROLS

1. In the Setup and Maintenance page, navigate to Tasks Icon ;

2. Navigate to Search Tasks;
3. Search for Manage Fiscal Document Generation Controls for Brazil task and click on link;
4. Search for Fiscal Document Control;
5. In the Search Results section, click on the Actions menu and Create;
6. On the Create Fiscal Document Generation Controls page, for Event Class field, select the
event class for which you want to define the controls and the defaults. The following table
lists the event class and the corresponding fiscal document type:

Application Event Class Fiscal Document Type

Inventory Management Returns to supplier shipment Return to supplier fiscal documents

Inventory Management Transfer order shipment Internal material transfer fiscal documents

Receivables Debit memo Complementary fiscal documents based on

debit memo transactions

Receivables Invoice Regular fiscal documents based on invoice

transactions

7. In the Associated Business Units section, for the Business Unit field, select the business
unit for which you want to define the controls and defaults for the fiscal document
generation.

Note: Only the business units that were enabled for fiscal document processing are available for selection.

8. You can optionally isolate the controls and defaults by transaction-based fiscal
classifications. In this case, in the Document Fiscal Classification field, select the fiscal
classification that identifies the transaction.
9. Enter the start date of the record.
10. Click Enabled;

43
 11. In the Control Information section, enable Require Approval check box;

Note: To complete the invoice before the fiscal document is approved by the tax authority, select the Allow
Completion before Fiscal Document Generation check box in the Control Information section. In this case, you can
complete the invoice manually regardless of the fiscal document’s status. However, if this check box is not selected,
the invoice cannot be completed before the corresponding fiscal document is approved. Once the tax authority
approves it, the invoice is automatically completed.

12. Select the product type (Goods, Service, Goods and Service for mixed fiscal documents)
option;
13. Select Goods Series value;

Note: During transaction entry, this value defaults on the Fiscal Attributes page for goods and mixed fiscal
documents. Only the series defined for a business unit, application, event class, and document fiscal classification is
available for selection on the Fiscal Attributes page.

14. Select Service Series value;

Note: This value defaults on the Fiscal Attributes page for service and mixed fiscal documents. Only the series
defined for a business unit, application, event class, and document fiscal classification is available for selection on
the Fiscal Attributes page.

15. Select Attribute Template value, if necessary;

Note: During transaction entry, the default values defined for the template are automatically populated on the Fiscal
Attributes page.

16. Select Contingency Type value;

17. Select Contingency Series value;
18. Enter with a Contingency Reason;

Note: When a contingency fiscal document is requested by clicking Generate Contingency Fiscal Document on the
Manage Fiscal Document Generation page.

19. Click Save and Close.

For more information on transaction-based fiscal classifications, see the Oracle Financials Cloud
Implementing Tax guide at docs.oracle.com and for more information about Fiscal Document
Generate see the Order to Cash for Brazil, Configuring Fiscal Documents for Brazil guide (Doc ID
2335507.1) on MyOracle Support (https://support.oracle.com/).

44
NFSE SUBSTITUTE

The Electronic Service Fiscal Document (NFSe) Substitute must be used when it is necessary to cancel a previous
issued and approved NFSe by the Government. In this case, user must create a new fiscal document using previous
information reference from the NFSe that will be cancelled.

Macro Solution Steps

This is a macro solution steps for NFSe Substitute:

MACRO STEP 1: CREATE FIRST NFSE (RPS-1)

1- Create AR Transaction (manual procedure)

2- Process RPS-1 in the FDG (manual procedure)
3- Consume information from RPS-1 by Fiscal ISV (automatic)
4- Format XML Standard Government by Fiscal ISV (automatic)
5- Send XML to Government by Fiscal ISV (automatic)
6- Return Government Status and Official NFSe number by ISV (automatic)
7- Run FDG processes to update fiscal document information (automatic)
8- Finish the process

MACRO STEP 2: CREATE SECOUND (NFS-2) NFSE AS A SUBSTITUTE OF RPS-1

1- Create AR Transaction informing LACLS attributes to reference RPS-1, attribute name and procedure are
describing in more details in Create NFSe Substitute (manual procedure)
2- Process RPS-2 in the FDG (manual procedure)
3- Consume information from RPS-2 by Fiscal ISV (automatic)
4- Format XML Standard Government by Fiscal ISV and inform tags related to NFSe Substitute based in the
LACLS Attributes (automatic)
5- Send XML to Government by Fiscal ISV (automatic)
6- Return Government Status and Official NFSe number by ISV (automatic)
7- Run FDG processes to update RPS-2 information (automatic)
8- Finish the process

Note: RPS-1 won´t be update in this moment.

MACRO STEP 3: REQUEST CANCEL FIRST NFSE (RPS-1)

1- Request to FDG cancel the RPS-1 (manual request)

2- Consume RPS-1 cancelation by Fiscal ISV (automatic)
3- Format XML Standard Government by Fiscal ISV (automatic)
4- Send XML to Government by Fiscal ISV (automatic)
5- Return Government Status by ISV. The XML (automatic)
6- Run FDG processes to update fiscal document status as “Canceled” (automatic)
7- Create a Credit Memo in AR to void RPS-1 (manual procedure) and finish the process

45
Detailed explanation about sequence 5 from Macro Step 3

The Government XML file will return with an “ERROR”, because the NFSe has been previous canceled by NFSe-
Substitute.

Fiscal ISV must process this information and return to FBDI with “Canceled” status information and ERP Cloud,
based on FBDI, will update the NFSe to cancel fiscal document.

FBDI name “TaxAuthorityReturnImportTemplate” available in Oracle Docs (https://docs.oracle.com) Cloud

Applications section.

Setup
The setup required to use the NFSe Substitute it is define a LACLS DFFs.

Check DocId 2240956.1 (Flex Fields Configuration) in My Oracle Support (https://support.oracle.com/portal/)

46
FISCAL DOCUMENT MODEL 21

Telecommunication companies, such as multimedia communication (internet providers), radio and TV broadcasters
have a specific invoice model named Model21 (Nota Fiscal de Comunicação Modelo 21”).

This fiscal document has been in force for issuing since 2003 in Brazil.

It is important to note that Model21 must be issued for all communication services rendered in the form of
generation, transmission, retransmission and amplification.

LACLS Brazilian development team created a special extractor to generate a “Hash Code” with important
information that must be printed in this type of fiscal document.

Macro Solution Flow

Macro solution steps:

1- Create AR Transaction
2- Run extractor LACLS_ExtractArMod21. Extractor will create a hash code and it will list only new
transaction without MD05 information
3- Consume extractor information by Fiscal ISV
4- Format the fiscal document model 21 according customer template
5- Update AR Transaction with Hash Code in the Note name “BR Modelo 21 Hash Code” by Fiscal ISV
6- Finish process

Note: Important information to Fiscal ISV. In the topic name “How to update a Note” describe in this chapter, it
will find the procedure to update hash code in the Note name ““BR Modelo 21 Hash Code”.

47
SETUP

Bellow the setup requirement to attend the solution.

ENABLE SEQUENCE NUMBER

This an optional setup and should be define if the company needs to control a sequence number. It will recommend
to enable “Receivable for the Enforce Document Sequencing” available in the Ledger Options.

If the company does not define this feature Oracle Receivable Cloud will generate a number without a sequence.

Enable document sequence in the Oracle ERP Cloud:

1- Setup and Maintenance

2- Chance scope “Setup:” to Financials, if necessary.
3- Select General Ledger
4- Select the ledger name in the Scope
5- Go to Sequencing section
6- Select Ledger in the Sequencing By
7- Select Receivables for the Enforce Document Sequencing
8- Save and Close

DEFINE TRANSACTION TYPE

Create a specific Transaction Type to use Model 21. Note that if the company (Legal Entity) has a central document
sequence number for the model 21 it is recommend use only one transaction type.

However if the document sequence number it is by establishment it is recommend to define transaction type by
each establishment.

Note: Transaction Type can be defined as “Invoice” or “Debit Memo”

Note: It is not necessary define DFFs in the Transaction Type for model 21

48
DEFINE SOURCE

Create a specific Source to use Model 21. There are attributes (ISV Additional Information) available to define a
model type.

In attribute field (Modelo/Model) it must be informed the value equal to 21. The LACLS-Extractor uses this
information to generate the XML file.

Note: The extractor will select the fiscal document 21 based on number informed in the DFF available in this section

If the attribute field (DFF) is not available in the Source UI definition. It is recommend check DocId 2240956.1
LACLS Fiscal Integration for Brazil (available in My Oracle Support (https://support.oracle.com/portal/).

Check chapter 5-Flex Fields Configuration, section 5.1.2 DFF-Receivables-Batch Sources in the manual LACLS
Fiscal Integration for Brazil.

49
DEFINE LACLS NOTE

Define a note to ISV Integration store the HashCode in the AR Transaction. Follow the steps bellow to create a note:

1- Navigate through Setup and Maintenance

2- Go to Tasks and select Search option
3- Inform “Manage Receivables Note Type” and search
4- Create a new lookup code
Important: the Lookup Code field must be exactly as show in the table below. The Fiscal ISV will be use the statement code to insert Hash Code information.

Lookup Code Display Enabled Start Date End Date Meaning Description Tag
Sequence

LACLS_BR_AR_MOD21_HASHCODE Yes 1/1/2011 BR Modelo 21 Hash Code BR Modelo 21 Hash Code

5- Save and Close.

6- Inform “Manage Receivables Note Type Mapping” in the Search field and search
7- Select “Receivables Transaction” in the Business Object field
8- Click on “Add Row”
9- Select “BR Modelo 21 Hash Code” in the Mapped Lookup Value field
10- Inform “N” in the Default field
11- Save and Close
DEFINE ADDITIONAL MESSAGES IN THE MODEL21

Define additional messages for Model21 follow the steps below:

1- Navigate through Setup and Maintenance

2- Go to Tasks and select Search option
3- Inform “Manage Common Lookups” and search
4- Create a new lookup type as show in the table
Important: the Lookup Type field must be exactly as show in the table below.

Lookup Type Meaning Description Module Lookup Rest Access Recured

Configuration
Level

LACLS_BR_MOD21_MSG LACLS_BR_MOD21_MSG Mensagens Complementares Functional Setup User Secure

para o Modelo 21 Manager

5- Save

51
 6- Create new lookup code
Important 1: the TAG field will be use to separate information according to State abbreviation. If the TAG has RJ the extractor will consider the information
for LRU that has address state equal to RJ if the state to be different the message will not listed in the Model21 extractor.
If there is no information in the TAG (null) the Model21 extractor will list the message for all LRUs.
Important 2: the lookup code can be define according with project, there is no necessary to be the same description shown in the table below.
It is only an example.

Lookup Code Display Enabled Start Date End Meaning Description Tag
Sequence Date

MOD21_01 Yes 1/1/2011 MOD21_01 Inform the message that must be printed in the document

MOD21_02 Yes 1/1/2011 MOD21_02 If the message is bigger. It is possible continue the
information in this another lookup code

MOD_RJ_01 Yes 1/1/2011 MOD_RJ_01 PROCON Estadual: Rua da Ajuda 5 - Subsolo - Centro - RJ
Rio de Janeiro - DISK PROCON: (21) 151
www.procon.rj.gov.br

MOD_RJ_02 Yes 1/1/2011 MOD_RJ_02 Nº do Regime Especial: 009/2016 RJ

MOD_DF_01 Yes 1/1/2011 MOD_DF_01 Nº do Regime Especial: 022/2015 – DF

GEESP/COTRI/SUREC/SEF

MOD_MG_01 Yes 1/1/2011 MOD_MG_01 Nº do Regime Especial: PTA 45.000010196-19 MG

7- Save and Close

52
DEFINE SEQUENCE NUMBER

Define a numeric sequence for Model 21. There is no sequence by Business Unit or Legal Report Unit. If the
company needs a sequence by each establishment it is recommend to create one Transaction Type for each one of
them.

Follow the steps below to define a sequence number:

1- Navigate through Setup and Maintenance

2- Go to Tasks and select Search option
3- Inform Manage Receivables Document Sequence and search
4- Open Receivables Doc Sequence
5- Inform the transaction name on the field “Document Sequence Category Name” and search
6- Find the Document Sequence Name assignment for correctly company ledger. This information is available
in the Assignment section located in the bottom of page
7- Define a initial value

8- Save

DISABLE FISCAL DOCUMENT GENERATOR

The Model 21 does not use a Fiscal Document Generator (FDG). It is important to define a setup where this type
of transaction it is disabled to go to the FDG.

To access steps to define are available in the Cloud Readiness 20D:

1- Click on the link:

https://www.oracle.com/webfolder/technetwork/tutorials/tutorial/cloud/r13/wn/fin/financials-wn.htm
2- Go to Financials for Americas
3- Click on Advanced Configuration Options to Generate Fiscal Documents for Brazil.

Macro steps described in the link:

1- Enable Fiscal Document Generation: this setup active the FDG for Brazil in the Oracle ERP Cloud.
2- Create A Document Fiscal Classification: this setup must be defined for FD Model 21 and will required to
use in the transaction.
3- Disable The Fiscal Document Generation For Specific Transactions: this setup must be defined to FD
Model 21 to disable the “Document Fiscal Classification” for FDG
4- Save
HOW TO UPDATE A NOTE

This topic is a technical procedure and must be use to Fiscal ISV to update hash code in the note name “BR Modelo 21 Hash Code”. Fiscal ISV needs to use the
following Oracle Service to update the note:

https://servername/fscmRestApi/resources/11.13.18.05/receivablesInvoices/{CustomerTransactionId}/child/notes

- servername: it is specific by company

- CustomerTransactionId: it get from extractor tag <G_MD5>.<CUSTOMER_TRX_ID>

Bellow there are more columns that must be populated:

Columns Information Observation

{ "NoteTxt":
"NUQwMTkwMzNBOEE4NERDMDYxMkUxM0NFMkZDOUQxNTk=", G_MD5>.<MD5> This information must be in the
“base64”

"NoteTypeCode": "LACLS_BR_AR_MOD21_HASHCODE", Fix information

"SourceObjectCode": "AR_TRANSACTION", Fix information

"CreatorPartyId": <G_PARTIES>.<PARTY_ID>, when

<G_PARTIES>.<SITE_USE_TYPE> =
"BILL_TO"

Note: If there is any question. It is recommend to open an Oracle Service Request (SR) in My Oracle Support to LACLS. Details steps to open a SR is describe in the
chapter "FREQUENTLY ASKED QUESTIONS (FAQ)" in this document.
CREATE MODEL 21

After define the required setups the company are able to create a Model 21 in ERP Cloud.

User will be able to create a transaction as Model 21 following the steps:

1- Go to Receivables
2- Select Billing option
3- Go to Tasks and select Create Transaction
4- Inform a Business Unit
5- Inform the specific Transaction Source created to Model 21
6- Inform the specific Transaction Type where the fiscal document will use the sequence number
7- Inform Customer
8- Click in the option Show More
9- Go to Miscellaneous section
10- Inform a Legal Report Unit related to the Transaction Type informed before.

Note: Step 10 it is an important step because without this information the extractor won´t list the CNPJ.
The information on the Tax Registration Number should be coherent set with the Transaction Type. Because
the fiscal document sequence is associated with Transaction Type.

11- Inform the Document Fiscal Classification (DFC) created to Model 21

Note: This is an important step because controls if the transaction must be integrated or not to FDG

12- Save and Complete the transaction

13- Finish user procedure

ISV procedure

1- Run extractor LACLS_ExtractArMod21 by IVS user does not have access to process this extractor

Note: The DocId 2240956.1 has a procedure to run the extractor for Model 21
(https://support.oracle.com/portal/)

2- Consume extractor information by ISV

3- Format the fiscal document model 21 according customer template
4- Update AR Transaction with Hash Code in the note name “BR Modelo 21 Hash Code”
5- Finish ISV procedure
TAX
The purpose of this document is to assist in the definition of Brazilian taxes using the Oracle Tax Cloud. The product
is flexible, allowing the definition in different ways, in this document we will suggest an initial approach, but it can
be changed according to the complexity of the taxes applied by the company.

The figure below illustrates the macro structure of the Oracle Tax Cloud:

Tax Rules

Tax Regimes

Taxes

Status Jurisdiction

Rates

Tax Regime: it is the set of rules and institutions that govern the tax situation of a legal entity. There two types of
regime:

 Transaction Tax
 Withholding Tax

Tax: it is a tax attributes as inclusive or no inclusive, government institution and defaults simple rules.

Status: classify the tax status such as Standard or Interstate for instance.

Jurisdiction: determine where the tax will be calculated.

Rate: can be define a percentage or table percentage for IRPF Tax.

Tax Rules: there are two types of rules one as a simple rule (defined in the tax) and a complex rules defined to
overlap the simple rule to calculated tax based on others determinants.

56
COMPLEX TAX RULES

The complex rule is based on Determining Factor and Condition Sets. This combination drives the calculate tax in
the transaction.

The Determining Factor it is compose in the 4 groups:

Party Party Fiscal Classification

Product Product-Based Fiscal Classification

Process Transaction-BasedFiscal Classification

Place Geography

The Determining Factor for Brazil has a specific definition for each group:

The Party Fiscal Classification: is a contribution type for Supplier, Customer and Legal Report Unit.

The Product-Based Fiscal Classification:

Product Fiscal Classification Types and Codes: used to define a NCM information.

Intended Use Fiscal Classifications: intended use for the product or service.

The Transaction-Based Fiscal Classification:

Transaction Business Category: used to define CFOP.

The Place: based on the geography defined in the Suppliers and Customers Address, Inventory Location or Legal
Address.

The picture bellow shows the complex tax rule structure in the Oracle Tax Cloud:

57
WITHHOLDING CALENDAR

Navigation path:

Setup and Maintenance > Define Tax Configuration > Manage Withholding Tax Calendars
The withholding calendar should be used to control tax calculation and the due date for tax documents.

TYPE CALENDARS

General Purpose: control the fiscal period of tax. This type is used to define the period of withholding tax.

58
Payment Terms: control the due date document created in the system. This calendar is used in the “Payment
Terms” field when it is define a tax authority.

59
TAX REGIME

Tax Regime is a group of taxes in the Oracle Tax Cloud with rules to the system apply tax rates in
transactions according to the company's business.

Oracle Fusion Tax Cloud has two types of regimes witch we suggest to group them according to the
example listed in the tables.

A tax regime must have a Party associated to able calculate a tax in the transactions. The list of value
shows Legal Entity or Business Unit.

Note: Associate a Business Unit in the Tax Regime.

The Oracle Tax Cloud is ready to use by Business Unit. If it is the first-time Tax Regime configuration
it can defined a Party with the Business Unit.

However if it is not first time configuration and the Oracle Tax Cloud does not calculate a tax, it must
check some steps describe in the “Why Tax Cloud does not calculate?” located in the topic
FREQUENTLY ASKED QUESTIONS (FAQ).

Navigation: Setup and Maintenance>Transaction Tax>Manage Tax Regimes

TRANSACTION TAX REGIME

In this regime must be defined the following Brazilian Taxes:

Regime Tax Name Description

CIDE Regime CIDE Tax type code for CIDE Tax.

COFINS COFINS Tax type code for Social Security Funding Contribution Tax.

COFINS COFINS-ST Tax type code for Social Security Funding Contribution Tax with
tributary substitution.

ICMS FCP-DIFAL Tax type code for tax on circulation of goods and services with rate
differential and FCP.

ICMS DIFAL-ICMS Tax type code for tax on circulation of goods and services with rate
differential.

60
Regime Tax Name Description

ICMS FCP Advance Tax type code for FCP advance.

ICMS FCP Tax type code for FCP Tax.

ICMS FCP-ST Tax type code for FCP Tax with tributary substitution.

ICMS ICMS Tax type code for Tax on Circulation of Goods and Services.

ICMS ICMS Advance Tax type code for tax on circulation of goods and services advance.

ICMS ICMS Exempted The ICMS exempted consists of a tax benefit that grants a tax
(Desonerado) discount on the amount of the tax waived on non-taxed, exempt or
suspended operations

ICMS ICMS-ST Tax type code for tax on circulation of goods and services with
tributary substitution.

II II Tax type code for import tax.

II IOF Tax type code for financial operations tax.

INSS REGIME INSS-Expense Tax type code for Expense Contribution to the National Institute of
Social Security for Companies Tax.

IPI IPI Tax type code for Industrial Product Tax.

PIS PIS Tax type code for Social Integration Program Tax.

PIS PIS-ST Tax type code for Municipal Service Tax with tributary substitution.

61
WITHHOLDING TAX REGIME

There are two ways to calculate tax in the ERP Cloud.

 Oracle Tax Cloud

 Oracle Payables Cloud. DO NOT use this way. Because all Brazilian features are only develop considering
Oracle Tax Cloud.

Using Oracle Fusion Tax Cloud to define:

 Deduction amount per dependent (Fixed Deduction per Dependent)

 Number of dependents (Number of dependents)
 Amount deducted from Alimony Amount
 Monthly progressive table for Individual Income Tax
 Minimum payment amount (Threshold Buckets)
 Social Security Contribution deduction amount

In this regime (only one regime is necessary) must be defined the following Brazilian Withholding Tax:

Regime Tax Name Description

Brazil WT Tax type code for Social Security Funding

COFINS_WT
Contribution retention Tax.

Brazil WT Tax type code for Net Income Social

CSLL
Contribution Tax.

Brazil WT Tax type code for RURAL Contribution to the

INSS_CP National Institute of Social Security for
Companies Tax.

Brazil WT Tax type code for Contribution to the

INSS_PF_WT
National Institute of Social Security for
INSS_PJ_WT
Companies Tax.

Brazil WT Tax type code for RAT Contribution to the

INSS_RAT National Institute of Social Security for
Companies Tax.

62
Regime Tax Name Description

Brazil WT Tax type code for SENAR Contribution to the

INSS_SENAR National Institute of Social Security for
Companies Tax.

Brazil WT Tax type code for Brazilian Federal Income

IRPJ
Tax for Companies.

Brazil WT IR is a tax in which each taxpayer, whether

an individual or a legal entity, is required to
pay a certain percentage of their income to
IRRF_PF_WT the government, national or regional ,
IRRF_PJ_WT depending on each jurisdiction.

Brazil WT Tax type code for Municipal Service

ISS_WT
retention Tax.

Brazil WT Tax type code for Social Integration Program

PIS_WT
retention Tax.

Brazil WT tax aimed at valuing autonomous

transporters and workers in the
SENAT transport sector

Brazil WT tax aimed at valuing autonomous

transporters and workers in the
SEST transport sector

63
DEFINE CONTROLS AND DEFAULTS

Define the default options that will be automatically inherited by the taxes when their creation.

Define in the Tax Inclusive Method field as Special Inclusive Handling, as it is the standard configuration adopted
for calculation in most taxes in Brazil. If you need an inclusive tax, change its method during the tax definition.

Tax Inclusive Method definition according to tax:

• Special Inclusive Handling: used for PIS, COFINS and ISS transactional tax. In this method, the tax amount is not
added to the invoice total amount at fiscal document.

• Standard Noniclusive Handling: used for IPI taxes. In this method, the tax value is added to the invoice total
amount.

CONFIGURATION OPTIONS AND SERVICE SUBSCRIPTIONS

Associate the legal entity or business unit with the Regime (depending in witch level you setup was defined). This
procedure is important for Oracle Tax Cloud to recognize the regime that must be applied in the transactions legal
entity or business unit.

64
BRAZILIAN TAX TYPE

It is very important classify all Brazilian Taxes using the Tax Type field on the Manage Tax page.

This field is used to integrate fiscal document into ISV for inbound processes.

The AP-ISV Extractor has the following logic to list the tax in the XML based on field “TAG” and
the tax calculated in the transaction:

1- Show in the extractor if the tax has a Tax Type defined as “ORA_”.
2- Show is not allowed in the extractor if the tax has a Tax Type defined as “ORA_” and
another tax has a Tax Type defined as “LACLS_” plus “TAG” with “ORA_”. Example:
Recovery PIS and COFINS must be defined in the field TAG “ORA_PIS” and
“ORA_COFINS”.
IMPORTANT: This setup must be defined only if company has PIS and COFINS
recoverable.
3- Show in the extractor if the tax has defined a Tax Type with “LACLS_”.
4- Show is not allowed in the extractor if the tax does not have Tax Type defined.

DEFINE LOOKUP CODES

The table below lists the tax type that must be defined in Oracle ERP Cloud. Other tax types was
predefined in the system installation and must be considered to define tax either.

Navigation: Transaction Tax => Manage Tax Lookup Codes

In Lookup Type code, search for “ZX_TAX_TYPE_CATEGORY”.

Create values based in the table and it is import define the Lookup Code has the correctly name
informed in this topic, because it was previous mapped with ISV.

Lookup Code Reference Meaning Tag

LACLS_CIDE Common Set CIDE LACLS_ISV

LACLS_CIDE_WT Common Set CIDE Retido LACLS_ISV

LACLS_IPI_PRES Common Set IPI Presumido (Recup) ORA_IPI

65
LACLS_IPI_COST Common Set IPI Cost

LACLS_DIFAL_FCP Common Set FCP DIFAL LACLS_ISV

LACLS_DIFAL_ICMS Common Set ICMS DIFAL LACLS_ISV

LACLS_FCP Common Set FCP LACLS_ISV

LACLS_FCPST Common Set FCP ST LACLS_ISV

LACLS_FCPST_ADV Common Set FCP ST Antecipado LACLS_ISV

LACLS_ICMSST_ADV Common Set ICMS-ST Antecipado LACLS_ISV

Common Set ICMS Presumido ORA_ICMS

LACLS_ICMS_PRES (Recup)

LACLS_ICMS_COST Common Set ICMS Cost

LACLS_ICMS_DESON Common Set ICMS Desonerado LACLS_ISV

LACLS_INSS_CP_WT Common Set INSS CP Retido LACLS_ISV

LACLS_INSS_EXP Common Set INSS Despesa LACLS_ISV

LACLS_INSS_RAT_WT Common Set INSS RAT Retido LACLS_ISV

66
Lookup Code Reference Meaning Tag

LACLS_INSS_SENAR_WT Common Set INSS SENAR Retido LACLS_ISV

LACLS_INSS_SENAT_WT Common Set SENAT Retido LACLS_ISV

LACLS_INSS_SEST_WT Common Set SEST Retido LACLS_ISV

LACLS_INSS_AD15_WT Common Set INSS Adicional 15 LACLS_ISV

LACLS_INSS_AD20_WT Common Set INSS Adicional 20 LACLS_ISV

LACLS_INSS_AD25_WT Common Set INSS Adicional 25 LACLS_ISV

LACLS_IRPF_WT Common Set IRPF Retido LACLS_ISV

LACLS_ISS_WT Common Set ISS Retido LACLS_ISV

LACLS_CSRF_WT Common Set CSRF Retido LACLS_ISV

LACLS_PIS_WT Common Set PIS WT LACLS_ISV

LACLS_PISST Common Set PIS ST LACLS_ISV

LACLS_PIS_RECUP Common Set PIS RECUP ORA_PIS

LACLS_PIS_COST Common Set PIS COST

LACLS_COFINS_RECUP Common Set COFINS RECUP ORA_COFINS

LACLS_COFINS_COST Common Set COFINS COST

LACLS_COFINS_WT Common Set COFINS WT LACLS_ISV

67
 LACLS_COFINSST Common Set COFINS ST LACLS_ISV

LACLS_REPORT Common Set Relatório

LACLS_FUNDERSUL Common Set FUNDERSUL LACLS_ISV

LACLS_FUNDEMS Common Set FUNDEMS LACLS_ISV

LACLS_ICMS_DEFFERED Common Set ICMS Differido LACLS_ISV

LACLS_ICMS_PART Common Set ICMS Partilha LACLS_ISV

Note: Types created by the system MUST BE used normally in the Tax Definition, example ICMS Tax.

Note: The TAX_COST is not listed in the extractor outbound because it is not requirement to bookkeeping in the
fiscal book.

68
TAX

To define a tax, follow:

Setup and Maintenance > Define Tax Configuration > Manage Taxes
Specify the details of the tax within the regime, be it Transaction Tax or Withholding Tax, as each tax contains its
own specification that should be assigned only to it. Oracle Fusion Tax Cloud determines that macro specifications
are defined as standards and exceptions worked through rules.Capítulo dividido em duas partes um explicando
cadastro dos impostos de transações e outro para impostos de retenção.

A quick guide to setting transaction tax. In this document you can find an example of the PIS tax, with
examples of rules and fees.

1- Define a Tax Code, Tax name and Tax Type.

Note: You must define a Tax Type for all taxes that will be integrated to ISV. If you create transactions
without a tax type you must create the transaction again in the system. Because Tax Cloud registered the
tax type during transaction creation.

2- Define the Tax geography. Other values will be filled in automatically.

3- Define the tax point like an Invoice and keep the Tax Inclusive Handling as Regime standard.
4- Define the Tax liability account.
5- Create the indirect values for the Tax
6- Create the Jurisdiction
7- Define the Tax Status
8- Define the Standard Tax Rate
9- Active the Tax for simulation. This option help in the rules validation before definitively activating the tax.

69
TAX RATE

To define a Tax Rate, navigate to:

Setup and Maintenance > Define Tax Configuration > Manage Tax Rates and Tax Recovery Rates

The tax may have different rates, such as ISS, IR and ICMS Brazilian tax rates.

This topic will show you how to create a tax rate that is not define such as a tax standard, but will be part of a tax
rule defined in Oracle Fusion Tax Cloud.

All Brazilians taxes are based on a percentage applied on the invoice total amount or item total amount (line based),
except IRPF, which is based on a progressive table by the Receita Federal do Brasil authority.

For other taxes, the setting is the same for both transaction tax and withholding tax. For the IRPF, the registration
of the progressive table in the system will be demonstrated in detail.

1- Select the tax, the situation and define the tax rate code. This information will be displayed on the tax lines
generated in the transactions, enter a code according to the planned percentage.
2- Inform the percentage and start date of the tax rate.

IRPF WITHHOLDING TAX PROGRESSIVE TABLE ASSOCIATION

1- Select the IRPF and inform IRPF followed by the year as best practices for identifying the tax in the fiscal
document transaction.
2- Change the rate type to “Gross Amount Rate Schedule”;
3- Inform start date and navigate to Rate Schedule tab;
4- Inform the range and the corresponding tax rates. Note, the starting value from one range to another has
to be the same value as the final range, exactly as shown below:

5- Click on Save

70
PARTY FISCAL CLASSIFICATION

To define the Organization Type in Fusion Tax follow the steps:

1. Browse:

Setup and Maintenance> Define Tax Configuration> Manage Party Fiscal Classifications

2. Create a record as shown in the figure below:

3. Select the value ORAGANIZATION_TYPE in the Party Classification field (option will attend the registration
of suppliers and customers).

4. Define an easy-to-understand code and nomenclature for future reference and use in the tax rules quick
implementation sheets. Example: Code: TIPO_CONTR and Name: Taxpayer Type.

5. Associate the regime in the "Associated Tax Regimes" region, be sure to associate the regime, otherwise the
classification will not be available for the definition of the rules or for the classification of suppliers and customers.

DEFINE ORGANIZATION TYPE VALUES

The definition is free and here are just a few examples, but these are generally used in most businesses

Nomenclature

Contribuinte

Não Contribuinte

Contribuinte Individual ou Pessoa Física ou Autônomo

Industrial

Simples Nacional

71
PRODUCT-BASED FISCAL CLASSIFICATIONS

The catalog LACLS_SERVICE_CODE and LACLS_NCM_SERVICE_CODE can be used to calculate tax in the transaction. The steps bellow described how
to associate the catalog with the tax.

Note: Check the LACLS - Integrations with ISVs (Doc ID 2240956.1) for more information about catalog.

Navigation: Setup and Maintenance > Transaction Tax > Manage Product-Based Tax Classifications

DEFINE PRODUCT FISCAL CLASSIFICATION TYPE

1- Create a record

2- Select the catalog in the Inventory Category Set field

3- Define levels in the Number of Levels field.

System allow to define until 5 levels. It can be used to segregate codes defined in the catalogs. See the corresponding Oracle Financials
Cloud implementation guides at (http://docs.oracle.com). In the Implementation Tax Manual, chapter “Manage Product-Based Fiscal
Classification” for more information.

4- Inform the same name from catalog in the Fiscal Classification Type Group field

5- Define levels if necessary

6- Associate the tax that will be used to calculate in the transactions.

7- Save and Close.

DEFINE INTENDED USE

1- Change “Search for” to “Intended Use Fiscal Classification Codes”

2- Create a record

3- Enter with Code, Name, Country and Start Date

4- Save and Close

Note: The table below lists the possible intended use that can be applied in the companies. The list shown the taxes that can be applied according with operation name
(intended use).

Intended Use - Operations

Intended Use IPI ICMS ICMS ST ICMS-DIFAL PIS COFINS II

Fixed Asset Add IPI in the Add IPI in the Add IPI in the Calculate Calculate Not Applied
With IPI Calculate Taxable Basis Taxable Basis Taxable Basis if
interstate

Fixed Asset not Calculate Calculate Calculate if Calculate Calculate Not Applied
Not Applied
IPI interstate

Fixed Assets Calculate Calculate Not Applied Not Applied Calculate Calculate Calculate
Imported

73
 Intended Use IPI ICMS ICMS ST ICMS-DIFAL PIS COFINS II

Energy Calculate Not Applied Not Applied Calculate and Calculate and Not Applied
Not Applied
Recovery Recovery

Acquisition Calculate and Calculate and Calculate if Calculate and Calculate and Not Applied
Freight between Not Applied Recovery Recovery interstate Recovery Recovery
States

Exportation Calculate Calculate Not Applied Calculate and Calculate and Not Applied
Not Applied
Freight Recovery Recovery

Acquisition Calculate and Calculate and Not Applied Calculate and Calculate and Not Applied
Freight same Not Applied Recovery Recovery Recovery Recovery
States

Not Planned Calculate Calculate Not Applied Calculate and Calculate and Not Applied
Exportation Not Applied Recovery Recovery
Freight

Not Planned Calculate and Calculate and Not Applied Calculate and Calculate and Not Applied
Acquisition Not Applied Recovery Recovery Recovery Recovery
Freight

74
Intended Use IPI ICMS ICMS ST ICMS-DIFAL PIS COFINS II

Internal Calculate and Calculate and Not Applied Calculate and Calculate and Not Applied
Not Applied
Transfer Freight Recovery Recovery Recovery Recovery

Raw Material Calculate and Not Applied Not Applied Calculate and Calculate and Calculate
Imported Calculate and Recovery Recovery Recovery
Recovery
Non-inclusive Non-inclusive Non-inclusive

Resales Calculate and Not Applied Not Applied Calculate and Calculate and Not Applied
Calculate and
Imported Recovery Recovery Non- Recovery Non-
Recovery
inclusive inclusive

Consumption Calculate Not Applied Not Applied Calculate Calculate Calculate

Calculate
Imported

75
Intended Use IPI ICMS ICMS ST ICMS-DIFAL PIS COFINS II

Raw Material Calculate and Calculate and Calculate Not Applied Calculate and Calculate and Not Applied
Recovery Recovery Recovery Recovery

Raw Material Not Applied Not Applied Not Applied Not Applied Calculate and Calculate and Not Applied
CST 60 Recovery Recovery

Resales with IPI Calculate and Calculate Not Applied Add IPI in the Add IPI in the Not Applied
Calculate and
and ICMS-ST Recovery Taxable Basis and Taxable Basis and
Recovery
Recovery Recovery

Resales with IPI Calculate and Not Applied Not Applied Add IPI in the Add IPI in the Not Applied
Calculate and
and not ICMS-ST Recovery Taxable Basis and Taxable Basis and
Recovery
Recovery Recovery

Resales not IPI Not Applied Calculate and Calculate Not Applied Calculate and Calculate and Not Applied
with ICMS-ST Recovery Recovery Recovery

Resales not IPI Not Applied Calculate and Not Applied Not Applied Calculate and Calculate and Not Applied
and ICMS-ST Recovery Recovery Recovery

76
 Intended Use IPI ICMS ICMS ST ICMS-DIFAL PIS COFINS II

Consumption Add IPI in the Not Applied Add IPI in the Calculate Calculate Not Applied
Calculate
with IPI Taxable Basis Taxable Basis

Consumption Calculate Calculate Calculate if Calculate Calculate Not Applied

Not Applied
not IPI interstate

DEFINE WITHHOLDING TAX DEDUCITONS

Navigation: Setup and maintenance> Transaction Tax > Manage third-party tax profiles

This chapter describes the procedure for setting income taxes for the following legal requirements in Brazil:

- Deduction amount of alimony (Amount of alimony)

- Number of dependents (Number of dependents)

- Amount of Social Security Contribution deduction

Information is individualized by supplier and is available in the Withholding tax deductions option.

1- Add information in the Withholding tax deductions option

2- Inform the current Tax Regime for the Legal Entity

3- Inform the type income tax

4- Add another line (when applicable) otherwise, save your work.

77
CONFIGURATION OWNER TAX OPTIONS

This setup is important to starting Oracle Tax Cloud to calculate tax in the transactions. The configuration owner is
defined by Party instead to “Global Configuration Owner”.

It is important check which party was associated in the Tax Regime before define the owner options. The wrong
party defined in the owner option will made the system not calculated a tax.

Choose the correct Party in the field “Configuration Owner” field.

DEFINE CONFIGURATION OWNER TAX OPTIONS FOR TRANSACTIONS TAX

Navigate to:

1. Setup and Maintenance

2. Define Tax Configuration
3. Manage Configuration Owner Tax Options
4. In the Search for, select Transaction Tax

Payables

Choose the event class for Payables and check the fields below:

 Perform additional applicability for imported documents

 Enforce tax from reference document

Another import definition is able “Receipt Tax Options”, check the field “Allow delivery-based tax calculation” and
check the bellow information:

Allow delivery-based tax calculation: is used to calculated tax in the receiving processing and affect the Brazilian
Transactions created in the Fiscal Document Capture.

Receivables

At receivables transaction time, the tax option settings of the configuration owner and application event class are
used instead of the default settings.
DEFINE CONFIGURATION OWNER TAX OPTIONS FOR WITHHOLDING TAX

Navigate to

1. Setup and Maintenance

2. Define Tax Configuration
3. Manage Configuration Owner Tax Options
4. In the Search for, select Withholding Tax

Withholding Event Class

Brazil is the only country that has event class for Payables and Receivables

Payables has two event “Standard Invoices” is applied for all documents that will be enter in the Oracle Payables
Cloud. If the company applied withholding tax in the advanced documents it is necessary define “Prepayment
Invoices”.

Calculation Point must have “Both” in this field because in this way Oracle Tax Cloud will be able to calculate tax
in the invoice enter or payment creations.

Tax Invoice Creation Point should be defined according business company requirement. Now in Oracle Tax Cloud
it is possible choose if the system will create a document to a Tax Authority in the Oracle Payables Cloud.

If choose:

 Both: the system will create a document to a Tax Authority in the Invoice Enter or Payment Creation,
according with tax definition.
 Payment: the system will create a document only in the Payment Creation.
 Null: no definition the system won´t create document in the system.

Note: LACLS recommend to define null in the “Tax Invoice Creation Point” because this definition allow the
company has a better administration with the Tax Payments (DRAFs/GPS) created by ISV Partner.

Note: Accounting flow is mapped in the appendix 1.

Receivables is available only to Brazil and could be defined if the company need to create collection documents
without tax.

79
TAX RULES

Navigation: Setup and Maintenance> Transaction Tax> Manage Tax Rules

This topic will describe the basic tax drives for each transaction tax that can be used to define a
tax rule for Brazil.

ICMS

Can be applied for all ICMS variances. The examples shows the geography applicability for
ICMS. The Tax Rules can be defined by process, example Sales Transaction can be define by
two Determining Factor Name:

 Transaction Business Category

 Transaction Type

Example 1: ICMS Tax in the same State.

Determining Factor Sets Condition

Determining Factor Class Tax Class Qualifier Determining Factor Name Operator Value

Geography Ship From State Equal to SP

Geography Ship to State Equal to SP

Party Fiscal Classification Bill from Organization_type Not SIMPLES_NACIONAL

Equal to

Transaction Input Factor Not applied Intended Use In Fixed Asset With IPI;Fixed
Asset not IPI;Fixed Assets
Imported;Energy;Exportation
Freight;Acquisition Freight
same States;Consumption with
IPI;Consumption not IPI

Transaction Input Factor Not applied Product Type Equal to GOODS

80
Example 2: ICMS Tax in the different State. Based on the LRU as a ship to location, it is necessary
two conditions

One: Include all states from South and Southwest, example:

Determining Factor Sets Condition

Determining Factor Class Tax Class Qualifier Determining Factor Name Operator Value

Geography Ship From State Equal to SP;RJ;SC;RS;PR;MG

Geography Ship to State Equal to CE

Party Fiscal Classification Bill from Organization_type Not SIMPLES_NACIONAL

Equal to

Transaction Input Factor Not applied Intended Use In Fixed Asset With IPI;Fixed
Asset not IPI;Fixed Assets
Imported;Energy;Exportation
Acquisition Freight between
States;Consumption with
IPI;Consumption not IPI

Transaction Input Factor Not applied Product Type Equal to GOODS

81
Two: Exclude all states from South and Southwest, example:

Determining Factor Sets Condition

Determining Factor Class Tax Class Qualifier Determining Factor Name Operator Value

Geography Ship From State Not SP;RJ;SC;RS;PR;MG

Equal to

Geography Ship to State Equal to CE

Party Fiscal Classification Bill from Organization_type Not SIMPLES_NACIONAL

Equal to

Transaction Input Factor Not applied Intended Use In Fixed Asset With IPI;Fixed
Asset not IPI;Fixed Assets
Imported;Energy;Exportation
Acquisition Freight between
States;Consumption with
IPI;Consumption not IPI

Transaction Input Factor Not applied Product Type Equal to GOODS

82
PIS TAX AND COFINS TAX

Example 1: PIS Tax and COFINS Tax

Determining Factor Sets Condition

Determining Factor Class Tax Class Qualifier Determining Factor Name Operator Value

Transaction Input Factor Not applied Intended Use In Fixed Asset With IPI;Fixed
Asset not IPI;Fixed Assets
Imported;Energy;Exportation
Acquisition Freight between
States;Consumption with
IPI;Consumption not IPI

IPI TAX

Example 1: PIS Tax and COFINS Tax

Determining Factor Sets Condition

Determining Factor Class Tax Class Qualifier Determining Factor Name Operator Value

Transaction Input Factor Not applied Intended Use In Fixed Asset With
IPI;Consumption with IPI;
Consumption with IPI

Product Inventory Linked Level3 NCM Equal to 99999999

Transaction input factor Not Applied Product Type Equal to GOODS

Party Fiscal Classification Bill from Organization_type Not SIMPLES_NACIONAL

Equal to

83
WITHHOLDING TAXES AND MULTIPLE TAXABLE BASIS

Some Brazilian scenarios have Service Fiscal Documents (NFSe) with different taxable basis to calculate withholding
tax. This topic described how to calculate withholding tax using one or more taxable basis.

Let starting with a real example. The NFSe bellow has four different taxable basis to:

- INSS with R$7.000,00

- ISS with R$4.000,00
- IRPJ with R$5.000,00
- PIS,COFINS and CSLL with R$4.480,00

NFSe Total 10.000,00

INSS Taxable Basis 7.000,00

INSS 3,5% 245,00

ISS Taxable Basis 4.000,00

ISS 5% 200,00

IRPJ Taxable Basis 5.000,00

IPPJ 1,5% 75,00

NFSe Schedule Payment 9.480,00

PIS, COFINS and CSLL Taxable Basis 9.480,00

PIS, COFINS and CSLL 4,65% 440,82

NFSe Final Payment 9.039,18

The steps bellow describe how to define Oracle Tax Cloud and procedure in AP to enter and calculate this NFSe
above.

84
CREATE FORMULA

Create a formula based in the “Taxable Basis Formula” and change the “Taxable Basis Type” to “Assessable Value”
for taxes INSS, ISS and IRPJ.

The PIS, COFINS and CSLL are not applicable because the taxable basis for this tax is based on payment amount.

Steps:

1- Be sure that has a Withholding Tax in the “Scope” field before open the Manage Tax Formulas.
2- Do not change the default information in the “Search for” field.
3- Create a new formula without change ‘Search for”.
4- Inform the “Configuration Owner”, Tax Formula Code and Name.
5- Change the “Taxable Basis Type” to “Assessable Value”.
6- Maintain the default tax regime code.
7- Select a Tax.
8- Change “Start Date” to an older date.
9- Save the new formula.

CREATE WITHHOLDING TAX CODE

This is a tax drive in Oracle Tax Cloud and it must be define to created tax rules to attend the cases when NFSe has
more than one taxable basis in the document.

Steps:

1- Go to Manage Tax Lookup Codes.

2- Inform “ZX_WHT_TAX_CLASSIFICATION_CODE” in the “Lookup Type” field.
3- Search for it.
4- Go to Financials Generic Lookup Type and click on “Create” option.
5- Inform the tax name, example, INSS in the Lookup Code, Meaning and Description fields.
6- Select the appropriate “Reference Data Set”.
7- Inform an older date in the “Start Date” field.
8- Save.

Note: Realize the same procedure for ISS and IRPJ.

85
CREATE DETERMINE FACTOR

This determine factor is a suggestion to use to create a tax rules to attend the scenario with more than one taxable
basis in the transaction.

Steps

1- Go to Manage Tax Determining Factor Sets.

2- Change “Search for” to “Withholding Tax”.
3- Click on the “Creation” option.
4- Inform a Code and Name
5- Check if the “Tax Regime Code” is related to tax that is must be defined.
6- Select the following “Determining Factor Class and Name”:

Determining Factor Class Tax Class Qualifier Determining Factor Name

Product inventory linked Automatic populated NEW_LACLS_NSM_SERVICE_CODE

Transaction input factor Null Product Type

Transaction input factor Null Withholding tax classification code

Note: It is necessary to create a determining factor for each tax INSS, ISS and IRPJ

7- Save.

86
CREATE CONDITIONS VALUES

Conditions are the value that will start Oracle Tax Cloud to calculate a tax on the transactions.

Steps

1- Inform a Condition Code and Name.

2- Fill values according with each “Tax Determining Factor”

Determining Factor Name Operator Value or Start from Range

NEW_LACLS_NSM_SERVICE_CODE Check note

Product Type Equal to SERVICES

Withholding tax classification Equal to Inform the withholding tax code created to
code attend the scenario INSS, ISS and IRPJ

Note: “Product inventory linked” has an “Operator” restriction and Brazilian consults used to define “Equal to”,
but it is important to analyze the company scenario to better definition.

Note: “Product Type” and “Withholding tax classification code” must be define as “Equal to”.

3- Save.

CREATE TAX RULES

Create three tax rules to calculate INSS, ISS and IRPJ

- Applicability rule: this rule made the Tax available to calculate on the transactions.
- Rate Rule: this rule must be define when tax has more than one rate. The INSS and IRPJ depend on services.
For ISS depend on place, service and CPOM (Cadastro de Empresas de Fora do Município).
- Taxable Basis: create to change the taxable basis according with formulas.

Note: The ISS Tax is required to have a Determining Factor with Geography and CPOM. In this chapter the
approach was to determining how to calculate tax using different taxable basis. So it is important to analyze which
conditions must be applied in ISS tax to derivate rates.

87
PURCHASE DOCUMENT STYLES

Define a purchase order for services using style with “Purchase Bases” only for “Amount”.

SCENARIO PROCEDURE SIMULATION

This topic describes procedures to enter with NFSe in Oracle Payables Account and calculate tax using different
taxable basis.

Purchase Orders

1- Go to Procurement.
2- Create a PO as a services.

Payables Invoices

1- Go to Payable.
2- Select Invoices.
3- Create a NFSe.
4- Inform PO number in the “Identifying PO” field.
5- Inform NFSe number, amount, date and payment terms.
6- Click on “Match Invoice Lines” to match PO Lines in the NFSe.
7- Click on the “Match” field.
8- Change the amount to the lower taxable amount generated in the NFSe in the “Amount” field.
Example: ISS tax is the lower taxable amount in the NFSe scenario in this chapter.
9- Click on “Ok” option.
10- Click on “Save” option.
11- Go to “Tax” option.
12- Click on “Withholding” field and inform the appropriate Wth Tax Code.
13- Go to “Assessable Value” field and inform the same taxable base amount.
14- Repeat the steps 6, 7 and 8
Note: If there more two taxable basis amount, in this step you inform the lower amount. For NSFe scenario
in this chapter you must inform IRPJ taxable amount.
15- Repeat steps 9,10 11, 12 and 13.
16- Repeat steps 6 and 7
17- Change the amount to remaining value for total NFSe. In the NFSe scenario in this chapter it must be the
difference between the previous amount with total NFSe.
18- Repeat step 12 and 13.
19- Open Taxes information.
20- Check the Wth Taxes calculate.

88
CALCULATE WITHHOLDING TAX WITH RETAINAGE TERMS

In the release 21A Oracle delivered a new feature named as “Retainage” for more information about it check the
internet documents Cloud Readiness / Oracle Procurement Cloud (What's New) 21A and Oracle Cloud
Applications Documentation.

The “Retainage” can be used on Construction services fiscal documents (NFSe) where it has a percentage detention
in the amount that will be pay to supplier. However the Retainage feature has differents criteria to calculate tax where
is not applied for Brazilian Tax Legal Requirements.

Here it will described a simple example to understand the “Retainage” feature. Supplier billing an invoice to the
company and the contract has a deduction percentage (10%). Company paid supplier with net amount, considering
deduction percentage. The 10% was deduction will be paid to supplier according with contract and this event the
only tax that must be calculated it is PIS, COFINS and CSLL.

This topic is help how to define Oracle Tax Cloud to attend the local tax legal requirement, but there are others
setups and procedure that must be define in Oracle ERP Cloud to user the “Retainage” event and to apply this
setups and procedures LACLS recommends to check documents informed in the first paragraph.

89
The NFSe bellow will be use as example using a Retainage Percentage and four different taxable basis to:

- INSS with R$7.000,00

- Retainage Amount with R$1.000,00
- ISS with R$4.000,00
- IRPJ with R$5.000,00
- PIS,COFINS and CSLL with R$4.480,00

NFSe Total 10.000,00

Retainage Percentage 10%

Retainage Percentage 1.000,00

INSS Taxable Basis 7.000,00

INSS 3,5% 245,00

ISS Taxable Basis 4.000,00

ISS 5% 200,00

IRPJ Taxable Basis 5.000,00

IPPJ 1,5% 75,00

NFSe Schedule Payment 8.480,00

PIS, COFINS and CSLL Taxable Basis 8.480,00

PIS, COFINS and CSLL 4,65% 394.32

NFSe Final Payment 8.085,68

This is an example to validate the setup in Oracle Tax Cloud.

90
CREATE FORMULA

Create a new formula or use the previous formula created to calculate withholding tax based on "Assessable Value".

CREATE WITHHOLDING TAX CODE

Create a new withholding tax code or use a previous code created.

CREATE DOCUMENT FISCAL CLASSIFICATION

It is very important define a new value for Document Fiscal Classification to attend Brazilian Tax Legal
Requirements. This new tax drive will be used to Oracle Tax Cloud “knows” when taxes must be calculated for
Retainage scenario.

Based on Brazilian Tax Legal Requirements taxes like INSS, ISS and IRPJ must be calculated on the NFSe entry and
the PIS, COFINs and CSLL in the NFSe payment.

When the retainage amount must be paid to supplier the taxes calculated in the NFSe entry do not be calculated
only withholding tax that will calculate is PIS, COFINS e CSLL.

Steps

1- Go to Manage Transaction-Based Fiscal Classifications.

2- Change “Search for” to “Document Fiscal Classification Codes”.
3- Click on the “Create Level 1 Node” option.
4- Inform a Code and Name that must be applied in the Retainage scenarios.
5- Inform Brasil in the Country field.
6- Inform older date in the “Start Date” field.
7- Save and Close.

91
DETERMINING FACTOR

A new “Determining Factor” must be created to increment the new tax drive “Document Fiscal Classification” that
will be responsible to calculate tax for Retainage Scenarios.

Note: It is very important mapping company scenarios to check if company will applied retaining scenario. If yes
the company must consider this new determining factor instead to explain in the chapter “Withholding Taxes and
Multiple Taxable Basis”.

This new determine factor must has the following tax drivers:

Determining Factor Class Tax Class Qualifier Determining Factor Name

Document Level1 Document Fiscal Classification

Product inventory linked Automatic populated NEW_LACLS_NSM_SERVICE_CODE

Transaction input factor Null Product Type

Transaction input factor Null Withholding tax classification code, only for
INSS, ISS and IRPJ.

92
CREATE CONDITIONS VALUES

Conditions are the value that will start Oracle Tax Cloud to calculate a tax on the transactions.

Steps

1- Inform a Condition Code and Name.

2- Fill values according with each “Tax Determining Factor”

Determining Factor Name Operator Value or Start from Range

Document Fiscal Classification Check Note Name of Document Fiscal Classification

create to define this condition

NEW_LACLS_NSM_SERVICE_CODE Check note

Product Type Equal to SERVICES

Withholding tax classification Equal to Inform the withholding tax code created to
code attend the scenario INSS, ISS and IRPJ

Note: “Product inventory linked” has an “Operator” restriction and Brazilian consults used to define “Equal to”,
but it is important to analyze the company scenario to better definition.

Note: “Product Type” and “Withholding tax classification code” must be define as “Equal to”.

Note: LACLS recommend to create a Tax Applicability Rules for INSS, ISS and IRPJ using one condition set with
Document Fiscal Classification “Equal to” and another with “Not Equal to” to calculate tax for other scenarios.

3- Save.

93
BRAZILIAN FISCAL CODES
Some taxes in Brazil has a code to identify the type of operation was applied the rate. This topic explain how to
associate the code in the system. This information will be integrated to fiscal partner for fiscal legal requirements.

CST ASSOCIATION

CST is a Brazilian Fiscal Code to identify the rate and operation to the Government Report. For integration
proposes, this code must be defined in the rate level as listed below:

Navigate to Manage Tax Rate

1- Search for the tax rate

2- Edit the rate
3- Go to “Tax Reporting Code”
4- Inform the CST for the rate

Note: Recommend to define a rate with CST Code, example TaxName_Rate_CST ICMS_18%_00 or ICMS_18_20.

MANAGE TAX RERPORTING TYPES

The Tax Reporting Types should be used to complement fiscal information to attend Brazilian Fiscal Requirements
for inbound and outbound processes.

Define or complement a Reporting Type navigate through:

Setup and Maintenance>Define Tax Configuration>Manage Tax Reporting Type

94
DEFINE CBENEF

CBENEF (Código de Benefício Fiscal) is a new tag used in the billing fiscal document to identify the type of fiscal
privilege where company received by the Government. The CBENEF is requirement in some Brazilian States and
must be associated in the Tax Rule (Tax Cloud). Create CENEF as reporting type:

Determining Factor Class

Tax Reporting Type Code LACLS_BR_CBENEF

Tax Reporting Type Name LACLS_BR_CBENEF

Tax Reporting Type Purpose Tax reporting type

Country Brazil

Data Type Text

Tax Regime Code Inform the ICMS tax regime code

Tax Inform the ICMS tax code

Minimum Length of Reporting Codes 1

Maximum Length of Reporting Codes 10

Start Date Inform a start date

End Date

95
 Reporting Type Uses

Process Result Enable

Note: Enable only the option above, because this reporting type will use only in the Tax Rule.

Tax Reporting Codes

Tax Reporting Code Inform the Fiscal Code given by the State Government

Description Inform the Fiscal Description or the Code given by the State
Government

Effective Start Date Inform a start date

DEFINE MVA RATE

This code must be defined when company bills a fiscal document with a combination of ICMS-ST reduction basis
and MVA percentage.

Determining Factor Class

Tax Reporting Type Code LACLS_BR_MVA_RATE_ICMSST

Tax Reporting Type Name LACLS_BR_MVA_RATE_ICMSST

Tax Reporting Type Purpose Tax reporting type

Country Brazil

Data Type Text

Tax Regime Code Inform the ICMS tax regime code

96
Tax Inform the ICMS-ST tax code

Minimum Length of Reporting Codes 1

Maximum Length of Reporting Codes 30

Start Date Inform a start date

End Date

97
 Reporting Type Uses

Process Result Enable

Note: Enable only the option above, because this reporting type will use only in the Taxable Basis Rule.

Tax Reporting Codes

Tax Reporting Code Inform MVA percentage

Description Inform MVA percentage

Effective Start Date Inform a start date

DEFINE REDUCTION BASIS RATE

This code must be defined when company bills a fiscal document with a combination of ICMS-ST reduction basis
and MVA percentage.

This definition can be used to define others reductions basis.

Determining Factor Class

Tax Reporting Type Code LACLS_BR_RED_BASIS_RATE

Tax Reporting Type Name LACLS_BR_RED_BASIS_RATE

Tax Reporting Type Purpose Tax reporting type

Country Brazil

Data Type Text

Tax Regime Code

98
Tax

Minimum Length of Reporting Codes 1

Maximum Length of Reporting Codes 30

Start Date Inform a start date

End Date

99
 Reporting Type Uses

Process Result Enable

Note: Enable only the option above, because this reporting type will use only in the Taxable Basis Rule.

Tax Reporting Codes

Tax Reporting Code Inform reduction basis percentage

Description Inform reduction basis percentage

Effective Start Date Inform a start date

DEFINE ORGINAL RATE

The original rate should be defined because the rate used to calculate the tax amount is changing by Oracle Tax
Cloud when is applying a formula to find the taxable mount and apply the rate. This setup was identified for IMCS-
ST, FCP-ST and ICMS Deferred (ICMS Diferido).

Create original rate as reporting type and inform the type code and name according to the tax:

IMCS-ST: LACLS_BR_ICMSST_ORIG_RATE

FCP-ST: LACLS_BR_FCPST_ORIG_RATE

ICMS Deferred: LACLS_BR_ICMSDEFER_ORIG_RATE

Determining Factor Class

Tax Reporting Type Code According to name above

Tax Reporting Type Name According to name above

Tax Reporting Type Purpose Tax reporting type

100
 Country Brazil

Data Type Text

Tax Regime Code Inform the ICMS tax regime code

Tax Inform the tax for each type:

ICMS-ST

FCP-ST

ICMS Deferred

Minimum Length of Reporting Codes 1

Maximum Length of Reporting Codes 2

Start Date Inform a start date

End Date

Reporting Type Uses

Tax Rate Enable

Note: Enable only the option above, because this reporting type will use only in the Tax Rate.

Tax Reporting Codes

Tax Reporting Code Inform the original rate for the tax that was informed in the
header

Description Inform any description that clarify the code for user

Effective Start Date Inform a start date

101
DEFINE ICMS-ST FISCAL CODES

Define a fiscal category code that determine a taxable amount to ICMS-ST tax.

Create fiscal category code as reporting type:

Determining Factor Class

Tax Reporting Type Code LACLS_BR_MOD_DET_BC_ICMSST

Tax Reporting Type Name LACLS_BR_MOD_DET_BC_ICMSST

Tax Reporting Type Purpose Tax reporting type

Country Brazil

Data Type Text

Tax Regime Code Inform the ICMS tax regime code

Tax Inform the ICMS-ST tax code

Minimum Length of Reporting Codes 1

Maximum Length of Reporting Codes 1

Start Date Inform a start date

End Date

Reporting Type Uses

Process Result Enable

Note: Enable only the option above, because this reporting type will use only in the Tax Rule.

102
Tax Reporting Codes

Tax Reporting Code Inform the code defined by SEFAZ

Description Inform description that clarify the code defined by SEFAZ

Effective Start Date Inform a start date

103
DEFINE ICMS DESONSONERADO

Define reason code to calculate ICMS Desonerado Tax. The codes are available in the SEFAZ manual. This code
will apply in the SEFAZ tag name “<motDesICMS>”.

Create reason as reporting type:

Determining Factor Class

Tax Reporting Type Code LACLS_BR_ICMS_DESON

Tax Reporting Type Name LACLS_BR_ICMS_DESON

Tax Reporting Type Purpose Tax reporting type

Country Brazil

Data Type Text

Tax Regime Code Inform the ICMS tax regime code

Tax Inform the tax code related to ICMS Desonerado

Minimum Length of Reporting Codes 1

Maximum Length of Reporting Codes 2

Start Date Inform a start date

End Date

104
 Reporting Type Uses

Process result Enable

Note: Enable only the option above, because this reporting type will use only in the Tax Rule.

Tax Reporting Codes

Tax Reporting Code Inform the code defined by SEFAZ

Description Inform description that clarify the code defined by SEFAZ

Effective Start Date Inform a start date

105
DEFINE LEGAL MESSAGES

It should be define a legal message as reporting code when fiscal description has a fix text to the tax.

Bellow the Reporting Type Code for each Taxes:

- ICMS: LACLS_BR_ICMS_MSG_LEGAL
- IPI: LACLS_BR_IPI_MSG_LEGAL
- PIS and COFINS: LACLS_BR_PIS_COF_MSG_LEGAL

Create legal message as reporting type:

Determining Factor Class

Tax Reporting Type Code Inform one of reporting type code listed above.

This is code will list in the LACLS Extractors and FDG XML
and ISV will be to be able to map this information.

Tax Reporting Type Name Inform the same data from field Tax Reporting Type Code

Tax Reporting Type Purpose Legal justification message type

Country Brazil

Data Type Text

Tax Regime Code Inform the tax regime code

Tax Inform the tax code

Minimum Length of Reporting Codes 1

Maximum Length of Reporting Codes 20

Start Date Inform a start date

End Date

106
 Reporting Type Uses

Process Result Enable

Tax Rate Enable

Note: Choose the better place to inform a legal message.

Tax Reporting Codes

Tax Reporting Code Inform a code to the legal message

Description Inform the legal message that must be printed in the Fiscal
Document

Effective Start Date Inform a start date

107
DEFINE TAX TYPE FOR WITHHOLDING AS TRANSACTION

It should be define a tax type as reporting code to identify in AR Extractor a transaction tax as withholding tax.

Create tax type as reporting type:

Determining Factor Class

Tax Reporting Type Code LACLS_BR_WHT_TYPE

Tax Reporting Type Name LACLS_BR_WHT_TYPE

Tax Reporting Type Purpose Tax reporting type

Country Brazil

Data Type Text

Tax Regime Code Null

Tax Null

Minimum Length of Reporting Codes 1

Maximum Length of Reporting Codes 2

Start Date Inform a start date

End Date

Reporting Type Uses

Tax Enable

108
Tax Reporting Codes

Tax Reporting Code WH

Description Wihholding tax (Imposto de Retenção)

Effective Start Date Inform a start date

109
DARF AND GPS ASSOCIATION

The fiscal code for withholding taxes is not a seed and must be defined in the ERP Cloud before to associate in the
rate.

CREATE FISCAL CODE

The steps bellow explain how to create the fiscal codes in the system:

1- Navigate Setup and Maintenance > Define Tax Configuration > Manage Tax Reporting Type
2- Search for Brazil in the Country field
3- Click on Create
4- Enter with the SAME NAME write in the table below:

Fields Value

Tax Reporting Type Code LACLS_IRS_WTH_CODE

Tax Reporting Type Name LACLS_IRS_WTH_CODE

5- Select “Withholding tax reporting type” in the Tax Reporting Type Purpose field
6- Select “Text” in the Data Type field
7- Select “Brazil” in the Country field
8- Define minimum and maximum values
9- Go to Reporting Type Uses section
10- Select “Tax Rate”
11- Go to Tax Reporting Codes section
12- Click on create.
13- Inform DARF Code or GPS Code in the Tax Reporting Code
14- Inform Description and the Effective Start Date
15- Save information

ASSOCIATE FISCAL CODE

The steps bellow explain how to associate fiscal codes in the system:

1- Navigate Setup and Maintenance > Define Tax Configuration > Manage Tax Rates and Tax Recovery Rates
2- Search for the IRRF or PCC Tax;
3- Go to Tax Reporting Code and click on create;

110
7- Save and Close.

111
PAYABLES

For the Tax module we use the Payment Terms to configure the conditions for paying the tax.
Each tax has a type of maturity determined by the Tax Authority for payment. For municipal
taxes (ISS) the date of collection is defined by the mayor, for federal taxes, normally, the date of
tax collection is 30 days after payment of the invoice. . These settings are of paramount
importance for the tax module as it is where we define your payments.

DEFINE PAYMENT TERMS

Navigation: Setup and Maintenance > Manage Payment Terms

Create payment terms for withholding taxes in order to control the maturity of documents that will be created in the
Oracle Fusion Payables Cloud.

112
PROCUREMENT

Tax authority has the function of controlling and inspecting compliance with tax legislation

The system need to have them registered as suppliers, classified as "Tax Authority” in order to have the
withholding taxes generating their income taxes to them.

DEFINE TAX AUTHORITY

On the Oracle ERP Cloud main page, navigate to the Procurement module and select the Suppliers option.

The Tax Authority as Supplier must be create in order to be associated with the tax that will be used in
withholding fiscal document in Oracle Fusion Payables Cloud.

Points of attention to define Tax Authority.

CLASSIFICATION

Supplier Type: must have the same option of Tax Authority

Tax Classification: classification as Tax Authority

113
SITES

In the address tab, Procurement BU’s must be associated. For the name of the site, it is recommend define
as a Tax Name.

114
CONTROL

On the website, an important point is the definition of the, "Payment Terms" specific to each tax in order to
meet the salary schedule.

Another point is to define in the field “Terms Date Basis” as “Invoice Date”.

115
PROCUREMENT MANAGEMENT

Define a mapping item code must be done when the supplier item does not have the same internal item
code used by company.

The mapping is required to import XML through the Fiscal Document Capture, if there is no mapping defined
the electronic fiscal document will be held in the interface waiting for correction item.

MAPPING SUPPLIER ITEM

The procedure bellow explain how to map supplier item with internal item company.

Navigate: Product Management -> Product Information Management

1- Select Task List and choose “Manage Trading Partner Items”;

2- Click on Create;
3- Inform the supplier item in the “Trading Partner Item” field;
4- Select Supplier in the “Type” field;
5- Select supplier in the “Trading Partner” field;
6- Go to Relationships;
7- Click on Create;
8- Select the inventory organization and the item that must be mapping to supplier item;
9- Click n Ok button;
10- Save the mapping.

Note: Check note 2379878.1 to upload map item using a file. The document is available in My Oracle
Support.

116
SELF-ASSESSED TAX
Tax defined as Self-Assessed must defined and impact only for Procure-to-Pay processes together with Fiscal
Document Capture (FDC) and never must be used in the Order-to-Cash processes.

The setup must apply in the following taxes:

1. PIS e COFINS: only if the company (Legal Entity) has a Brazilian Fiscal Regime defined as “Lucro Real”.

2. IPI: this tax will define if IPI compound taxable basis amount for taxes defined as Self-Assessed.

3. DIFAL: this tax always define as self-assessed, because it is not highlighted in the fiscal document and it
must be calculated to register in the Fiscal Books and posted in the ledger.

This is a solution proposed by Oracle's development team to treat the entrance or recovery in FDC cloud of taxes
that do not come into the fiscal document XML file.

It is important to clarify that PIS and COFINS printed (destacado) in the fiscal document should not considered in
the tax calculation when it is entrance directly in the Oracle Payable Cloud.

The recommendation to calculate this taxes it is only applied in the FDC entrance by XML.

PROCUREMENT TRANSACTION ACCOUNT RULES

Need to define the clearing account to PIS_RECUP, PIS_COST, COFINS_RECUP and COFINS COST. It will
have the zero balance in the receiving process.

The Procurement account definition must be done at “Transaction Account Type”, option “Variance Account”.

117
LOOKUPS

The procedure lookup code for self-assessed should be define in the topic “Brazilian Tax Type”.

TAX DEFINITIONS

PIS and COFINS recovery tax rates depends entirely on buyer´s company tax regime (LRU). Because of that, it is
need to setup PIS and COFINS as SELF-ASSESSED tax. If the company does not recovery in any situation, the
steps below are not necessary.

PIS and COFINS, depending on the application of the material, needs to reach item cost or expense. In order to
attend this requirement, you need to create three taxes for each PIS and COFINS.

It is important to clarify that PIS and COFINS printed (destacado) in the fiscal document should not considered in
the tax calculation when it is entrance directly in the Oracle Payable Cloud.

The recommendation to calculate this taxes it is only applied in the FDC entrance by XML.

Lookup Code Meaning

PIS Used to carry the tax that comes printed (destacado) in the fiscal document
XML file and entered electronic through FDC´s processes

PIS_RECUP Used to calculate and recovery the tax

PIS_COST Used to achieve the cost or expense of the transaction

COFINS Used to carry the tax that comes printed (destacado) in the fiscal document
XML file and entered electronic through FDC´s processes

COFINS_RECUP Used to calculate and recovery the tax

COFINS_COST Used to achieve the cost or expense of the transaction

118
PIS AND COFINS DEFINITION

The table below describes how to define PIS and COFINS that printed (destacado) in the fiscal document (XML)
and entered electronic through FDC´s processes. The table below explains how to define tax PIS as example; please
follow the same procedure to the COFINS.

It is important to clarify that PIS and COFINS printed (destacado) in the fiscal document should not considered in
the tax calculation when it is entrance directly in the Oracle Payable Cloud.

The recommendation to calculate this taxes it is only applied in the FDC entrance by XML.

Tax Header

Tax Regime Code PIS

Configuration Owner Global configuration owner

Tax PIS

Tax Name PIS

Tax Type PIS Tax

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type COUNTRY

Parent Geography Type COUNTRY

Parent Geography Name Brazil

119
Override Geography Type Null

Tax Currency BRL-Brazilian Real

Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence Null

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Null

Tax Controls and Defaults - CONTROLS

Tax Point Basis Null

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

120
Allow override of calculated tax lines Yes

Allow entry of manual tax lines Yes

Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

121
122
 Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

Validation Type Null

Validation Level Null

Duplicate Validation Level Null

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Null

Note: The “Allow tax recovery” flag should not be set to this tax

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Bill from

Tax Applicability Not Applicable

Tax Registration Bill-from party

Tax Calculation Formula STANDARD_TC

Taxable Basis Formula STANDARD_TB

123
 Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform Jurisdiction responsible to control the tax

Tax Status Inform appropriate status to the tax

Tax Rate Should be defined a zero rate

Note: It is recommend a zero rate because the tax printed in the fiscal document won´t be used in the Tax Cloud.
However must be posted in the ledger using the same account defined in the line type ITEM.

TAX ACCOUNTS

Inform the Liability Tax Account for the tax.

124
PIS AND COFINS COST DEFINITION

The table below describes how to define PIS_COST and COFINS_COST. The table demonstrate PIS as example;
please follow the same procedure to the COFINS.

Tax Header

Tax Regime Code PIS

Configuration Owner Global configuration owner

Tax PIS_COST

Tax Name PIS_COST

Tax Type LACLS PIS Cost

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type COUNTRY

Parent Geography Type COUNTRY

Parent Geography Name Brazil

Override Geography Type Null

Tax Currency BRL-Brazilian Real

125
Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence Null

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Null

Tax Controls and Defaults - CONTROLS

Tax Point Basis Invoice

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

Allow override of calculated tax lines Yes

Allow entry of manual tax lines Yes

126
Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

127
 Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

Validation Type ORA_BR_OTHER

Validation Level No validation

Duplicate Validation Level None

Note: Select ORA_BR_OTHER for Validation type; NONE for validation level! This will be used in Tax Registration
setup later! This tax will be liable to be recoverable, select Allow to Recovery and RECOVERABLE to Primary Recovery
Type!

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Null

Note: The “Allow tax recovery” flag should not be set to this tax

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Bill from

Tax Applicability Not Applicable

Tax Registration Bill-to party

Tax Calculation Formula STANDARD_TC

Taxable Basis Formula STANDARD_TB

128
 Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform Jurisdiction responsible to control the tax

Tax Status Inform appropriate status to the tax

Tax Rate Should be defined a negative rate

TAX ACCOUNTS

Inform the Liability Tax Account for the tax.

129
PIS AND COFINS RECUP DEFINITION

The table below describes how to define PIS_RECUP and COFINS_RECUP. The table demonstrate PIS as
example; please follow the same procedure to the COFINS.

Tax Header

Tax Regime Code PIS

Configuration Owner Global configuration owner

Tax PIS_RECUP

Tax Name PIS_RECUP

Tax Type LACLS PIS Recup

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type COUNTRY

Parent Geography Type COUNTRY

Parent Geography Name Brazil

Override Geography Type Null

Tax Currency BRL-Brazilian Real

130
Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence Null

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Null

Tax Controls and Defaults - CONTROLS

Tax Point Basis Invoice

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

Allow override of calculated tax lines Yes

Allow entry of manual tax lines Yes

131
Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

132
 Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

Validation Type ORA_BR_OTHER

Validation Level No validation

Duplicate Validation Level None

Note: Select ORA_BR_OTHER for Validation type; NONE for validation level! This will be used in Tax Registration
setup later! This tax will be liable to be recoverable, select Allow to Recovery and RECOVERABLE to Primary Recovery
Type!

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Yes

Allow tax recovery rate override Null

Primary Recovery Type RECOVERABLE

Secondary Recovery Type Null

Note: The “Allow tax recovery” flag should not be set to this tax

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Bill from

Tax Applicability Not Applicable

Tax Registration Bill-to party

Tax Calculation Formula STANDARD_TC

133
 Taxable Basis Formula STANDARD_TB

Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform Jurisdiction responsible to control the tax

Tax Status Inform appropriate status to the tax

Tax Recovery Rate Inform the percentage that company uses to recovery tax

Tax Rate Inform the rate used to calculate the tax

TAX ACCOUNTS

Inform the Recoverable Tax Account and Liability Tax Account for the tax.

134
DIFAL DEFINITION

Differently from PIS and COFINS, to have DIFAL tax calculated and reflected into item cost, it is necessary to
create only one Self Assessed tax. Follow the steps below to do it:

Tax Header

Tax Regime Code ICMS

Configuration Owner Global configuration owner

Tax DIFAL

Tax Name DIFAL

Tax Type ICMS DIFAL

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type STATE

Parent Geography Type COUNTRY

Parent Geography Name Brazil

Override Geography Type Null

Tax Currency BRL-Brazilian Real

135
Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence Inform a number higher than IPI_REP

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Null

Tax Controls and Defaults - CONTROLS

Tax Point Basis Invoice

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

Allow override of calculated tax lines Yes

Allow entry of manual tax lines Yes

136
Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

137
 Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

Validation Type ORA_BR_OTHER

Validation Level No validation

Duplicate Validation Level None

Note: Select ORA_BR_OTHER for Validation type; NONE for validation level! This will be used in Tax Registration
setup later! This tax will be liable to be recoverable, select Allow to Recovery and RECOVERABLE to Primary Recovery
Type!

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Null

Note: The “Allow tax recovery” flag should not be set to this tax

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Ship to

Tax Applicability Not Applicable

Tax Registration Bill-to party

Tax Calculation Formula STANDARD_TC

Taxable Basis Formula STANDARD_TB

138
 Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform default Jurisdiction responsible to control the tax

Tax Status Inform a state in Jurisdiction that will be more applicable in the
tax

Tax Rate Should be defined default differential rate

Note: It is important create all states as Jurisdiction; use the procedure XX as state plus -GOV DO ESTADO. Example,
SP-GOV DO ESTADO

Note: DIFAL rates must be always a differential rate, because Tax Self-Assessed does not calculate with a Normal
Tax in this point ICMS Tax.

Note: DIFAL Tax it is not a recoverable tax and Registration Number with no validation in the Duplicate Validation
and none in the Validation Level

TAX ACCOUNTS

Inform the Liability Tax Account for the tax.

139
IPI REP DEFINITION

Sometimes IPI Tax compound a taxable amount for PIS, COFINS and DIFAL.

The way to have that in Tax Cloud is creating a second tax, as reporting only, that the only purpose is to calculate
this amount and, once PIS, COFINS and DIFAL are SELF ASSESSED taxes, this IPI REP must be SELF
ASSESSED as well.

The IPI REP code was created to differentiate from regular IPI since IPI REP do not account and recover, it is just
part of the tax calculation formula for PIS, COFIN and DIFAL as SELF ASSESSED.

Tax Header

Tax Regime Code IPI

Configuration Owner Global configuration owner

Tax IPI_REP

Tax Name IPI_REP

Tax Type Report Only

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type COUNTRY

Parent Geography Type COUNTRY

Parent Geography Name Brazil

140
Override Geography Type Null

Tax Currency BRL-Brazilian Real

Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence Inform a number lower than DIFAL Tax (Self Assessed)

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Yes

Tax Controls and Defaults - CONTROLS

Tax Point Basis Invoice

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

141
Allow override of calculated tax lines Yes

Allow entry of manual tax lines Yes

Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

142
 Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

Validation Type ORA_BR_OTHER

Validation Level No validation

Duplicate Validation Level None

Note: Select ORA_BR_OTHER for Validation type; NONE for validation level! This will be used in Tax Registration
setup later! This tax will be liable to be recoverable, select Allow to Recovery and RECOVERABLE to Primary Recovery
Type!

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Null

Note: The “Allow tax recovery” flag should not be set to this tax

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Bill from

Tax Applicability Not Applicable

Tax Registration Bill-to party

Tax Calculation Formula STANDARD_TC

Taxable Basis Formula STANDARD_TB

143
 Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform Jurisdiction responsible to control the tax

Tax Status Inform appropriate status to the tax

Tax Rate Inform rate for the tax report

TAX ACCOUNTS

There is no account definition for this tax.

144
TAX REGISTRATION

In order to activate a TAX as SELF-ASSESSED, it is necessary to setup the tax registration for each LRU. Be sure
what is the main LRU defined in the ERP Cloud and defined it first in the tax registration

For the solution defined by the development team, it´s necessary to setup here the taxes: PIS_RECUP, PIS_COST,
COFINS_RECUP, COFINS_COST, DIFAL and IPI REP.

Legal Reporting Unit Tax Registration

Legal Reporting Unit

Tax Regime Code

Tax

Tax Jurisdiction Code

Tax Point Basis

Legal Reporting Unit Tax Registration

Registration Details

Tax Registration Type Null

Company Reporting Name Null

Legal Registration Address Null

Validation Type ORA_BR_OTHER

Validation Level None

Duplicate Validation Level No validation

145
 Registration Number Inform LRU CNPJ

Issuing Tax Authority No

Set as default registration No

Tax Registration Status Registered

Tax Registration No

Start Date Inform an old date

End Date Null

Source Null

Legal Reporting Unit Tax Registration

Invoice Controls

Rounding Rule Null

Set as self-assessment Yes

Set invoice values as tax inclusive Null

Note: Other fields not listed in the table above does not be change

Note: Select the SET AS SELF-ASSESSED (reverse charge) flag; the validation type and level, set at the tax setup is
inherit here!

146
SPECIAL TAXES
Taxes that have special definitions in Oracle Tax Cloud:

- ICMS Deffered (Diferido)

- ICMS Partilha

ICMS DEFERRED (DIFERIDO)

The ICMS Deferred is a type of tax substitution, in which occurs the postponement or advanced of the tax payment,
where the recovery obligation will be transfer to another party.

This topic describe how to define this tax to attend an Outbound Fiscal Document.

It is necessary three taxes:

 ICMS Normal: used to post the tax amount, when the ICMS Differed is not equal to 100% (one hundred
percentage), and inform the CST number in the XML and base tax to use in the calculation formula with
ICMS Deferred.
 ICMS Report: used to show in the xml the original rate, taxable amount and tax amount that must be
informed in the Fiscal Document XML. The reason of this tax it is because ICMS Normal change
information after applied the formula during tax calculation.
 ICMS Deferred: used to show the deferred amount into FDG XML and base tax to use in the calculation
formula with ICMS Normal

147
ICMS NORMAL

Define ICMS Normal using the follow information. If the system has ICMS Normal defined, this step it is not
necessary.

Tax Header

Tax Regime Code ICMS

Configuration Owner Global configuration owner

Tax ICMS

Tax Name ICMS

Tax Type ICMS Tax

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type STATE

Parent Geography Type COUNTRY

Parent Geography Name Brazil

Override Geography Type Null

Tax Currency BRL-Brazilian Real

148
Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence If the company has IPI in the sales transactions. It is important
define a compound number lower that IPI

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Null

Tax Controls and Defaults - CONTROLS

Tax Point Basis Null

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

Allow override of calculated tax lines Yes

149
Allow entry of manual tax lines Yes

Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

Validation Type Null

150
Validation Level Null

Duplicate Validation Level Null

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Enable this field if the company has ICMS Recoverable in the
purchasing process

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Ship to

Tax Applicability Not Applicable

Tax Registration Bill-from party

Tax Calculation Formula STANDARD_TC

Taxable Basis Formula STANDARD_TB

151
 Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform Jurisdiction responsible to control the tax

Tax Status Inform appropriate status to the tax

Tax Rate Inform appropriate rate to the tax

TAX ACCOUNTS

Inform the Liability Tax Account for the tax and Recoverable Tax Account.

TAX JURISDICTION

Inform the 27 Brazilian States in the Jurisdiction for the ICMS Normal.

152
ICMS REPORT

Define ICMS Report using the follow information. If the system has ICMS Report defined, this step it is not
necessary.

Tax Header

Tax Regime Code ICMS

Configuration Owner Global configuration owner

Tax ICMS Report

Tax Name ICMS Report

Tax Type Report

This type must be define before starting this setup, check the
topic Brazilian Tax Type

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type STATE

Parent Geography Type COUNTRY

Parent Geography Name Brazil

Override Geography Type Null

153
Tax Currency BRL-Brazilian Real

Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence It is not applied for ICMS Deferred

It is requirement to attend ICMS RE#547.706

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Yes

Tax Controls and Defaults - CONTROLS

Tax Point Basis Null

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

154
Allow override of calculated tax lines Yes

Allow entry of manual tax lines Yes

Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

155
Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

Validation Type ORA_BR_OTHER

Validation Level No validation

Duplicate Validation Level None

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Null

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Ship to

Tax Applicability Not Applicable

Tax Registration Bill-to party

Tax Calculation Formula STANDARD_TC

Taxable Basis Formula STANDARD_TB

156
 Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform Jurisdiction responsible to control the tax

Tax Status Inform appropriate status to the tax

Tax Rate Inform appropriate rate to the tax

TAX ACCOUNTS

Tax Account does not need for tax report.

TAX JURISDICTION

Inform the 27 Brazilian States in the Jurisdiction for the ICMS Report. It is very important define this jurisdiction
as equal to ICMS Normal.

157
ICMS DEFERRED

Define ICMS Deferred as report using the follow information.

Tax Header

Tax Regime Code ICMS

Configuration Owner Global configuration owner

Tax ICMS Deferred

Tax Name ICMS Deferred

Tax Type ICMS Deferred

This type must be define before starting this setup, check the
topic Brazilian Tax Type

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type STATE

Parent Geography Type COUNTRY

Parent Geography Name Brazil

Override Geography Type Null

158
Tax Currency BRL-Brazilian Real

Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence It is necessary inform a higher number than ICMS Normal

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Yes

Tax Controls and Defaults - CONTROLS

Tax Point Basis Null

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

Allow override of calculated tax lines Yes

159
Allow entry of manual tax lines Yes

Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

160
Validation Type Null

Validation Level Null

Duplicate Validation Level Null

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Null

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Ship to

Tax Applicability Not Applicable

Tax Registration Bill-from party

Tax Calculation Formula STANDARD_TC

Taxable Basis Formula STANDARD_TB

Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform Jurisdiction responsible to control the tax

Tax Status Inform appropriate status to the tax

Tax Rate Inform appropriate rate to the tax

161
TAX ACCOUNTS

Tax Account does not need for tax report.

TAX JURISDICTION

Inform the 27 Brazilian States in the Jurisdiction for the ICMS Normal.

162
DEFINE CALCULATION FORMULA USING ICMS-NORMAL AND ICMS-DEFERRED TAXES

Setup and Maintenance>Manage Tax Formula

1- Change Tax Formula Type to Tax Calculation Formula.

2- Click and Create.
3- Inform the Tax Formula Code and Tax Formula Name.
4- Select ICMS tax regime.
5- Select ICMS-Normal.
6- Change Start Date to older date.
7- Go to Details region.
8- Select ICMS tax regime in the Compound Tax Regime Code field.
9- Select ICMS-Differed in the Compound Tax field.
10- Change to Subtract in the Compounding Rule field.
11- Save.

163
DEFINE ICMS PARTILHA

Define ICMS Partilha Tax for Outbound propose (O2C) inside ICMS Tax Regime. The table below shows detail
information about field in the Tax Cloud.

Tax Header

Tax Regime Code ICMS

Configuration Owner Global configuration owner

Tax ICMS-PARTILHA

Tax Name ICMS-PARTILHA

Tax Type ICMS Partilha

This type must be define before starting this setup.

Start Date 1/1/2019

Enable tax for simulation Yes

Enable tax for transactions Yes

Tax Information

Geography Type STATE

Parent Geography Type COUNTRY

Parent Geography Name Brazil

Override Geography Type Null

164
Tax Currency BRL-Brazilian Real

Tax Minimum Accountable Unit 0,01

Tax Precision 2

Conversion Rate Type Corporate

Rounding Rule Nearest

Compounding Precedence If the company has IPI in the sales transactions. It is important
define a compound number lower that IPI

Reporting Tax Authority Null

Collecting Tax Authority Null

Applied Amount Handling Prorated

Set as offset tax Null

Set tax for reporting purposes only Null

Tax Controls and Defaults - CONTROLS

Tax Point Basis Null

Tax Inclusion Method Special inclusive handling

Allow override and entry of inclusive tax lines Yes

Allow tax rounding override Yes

165
Allow override of calculated tax lines Yes

Allow entry of manual tax lines Yes

Use legal registration number Yes

Allow duplicate registration numbers Null

Allow multiple jurisdictions Yes

Allow creation of multiple jurisdictions Null

Use in withholding tax calculation Null

Tax Controls and Defaults – TAX ACCOUNTS CONTROLS

Tax Accounts Creation Method Create tax accounts

Tax Accounts Source Null

Tax Controls and Defaults – TAX EXCEPTIONS AND EXEMPTIONS CONTROLS AND DEFAULTS

Allow tax exceptions Yes

Allow tax exemptions Yes

Use tax exemptions from an existing tax Null

Tax Exemptions Source Null

166
 Tax Controls and Defaults – REGISTRATION NUMBER CONTROLS AND DEFAULTS

Validation Type Null

Validation Level Null

Duplicate Validation Level Null

Tax Controls and Defaults – TAX RECOVERY CONTROLS AND DEFAULTS

Allow tax recovery Null

Note: The “Allow tax recovery” flag should not be set to this tax

Tax Rule Defaults - DIRECT DEFAULTS

Place of Supply Ship to

Tax Applicability Not Applicable

Tax Registration Bill-from party

Tax Calculation Formula STANDARD_TC

Taxable Basis Formula STANDARD_TB

It can be substituted for a new formula if the company use IPI

in the sales transactions.

167
 Tax Rule Defaults - INDIRECT DEFAULTS

Tax Jurisdiction Inform Jurisdiction responsible to control the tax

Tax Status Inform appropriate status to the tax

Tax Rate Inform appropriate rate to the tax

TAX ACCOUNTS

Inform the Liability Tax Account for the tax.

TAX JURISDICTION

Inform the 27 Brazilian States in the Jurisdiction for the ICMS Partilha.

ICMS RE 574.706

The RE (Recurso Extraordinário) number 574.706 determine that companies can exclude the ICMS Amount in the
fiscal document of taxable basis to calculate PIS and COFINS taxes.

The company only applying this resource if the Government authorized.

In the Outbound process, company that has this authorization can issue the fiscal document and calculate PIS e
COFINS with ICMS exclude in the taxable basis.

However the company must be check if their supplies were applied the RE#547.706 in the fiscal document, before
calculation the PIS and COFINS without ICMS in the taxable basis.

This topic will explain how to exclude the ICMS tax amount from taxable basis to PIS and COFINS Taxes in the
inbound and outbound process.

ICMS TAX AS REPORT

It needs define other ICMS with the field “Set tax for reporting purposes only”. This must calculated together with
“Original” ICMS, but using negatives rates.

Example: Interstate Operation rate 12% for ICMS Report -12%.

168
FORMULA

Create Taxable Basis Formula to exclude the ICMS Tax Amount from PIS and COFINS. If the company has
scenarios with Reduction Basis in the ICMS (CST-20). It is important define PIS and COFINS formulas using
Reduction Basis Percentage.

Compounding Precedence to New ICMS Report must be lower than PIS and COFINS taxes.

PARTY FISCAL CLASSIFICATION

It needs mapping which suppliers has Government authorization to exclude the ICMS Tax Amount from PIS and
COFINS taxable basis. This classification must be use in the Tax Applicability Rule as determine factor to Tax Cloud
calculated the ICMS Report.

TAX RULES FOR INBOUND

Inbound process will be necessary three rules:

1- Tax Applicability Rule to calculate ICMS Report

2- Tax Rate Rule to determine ICMS Report rates
3- Tax Taxable Basis Rule for PIS and COFINS to exclude the ICMS Report amount. In this rule it is very
important use Party Fiscal Classification as a determine factor to Tax Cloud knows when tax must excluded.

TAX RULE FOR OUTBOND

Outbound process can use two rules

1- Tax Applicability Rule to calculate ICMS Report

2- Tax Taxable Basis Rule for PIS and COFINS to exclude the ICMS Report amount. Here it is not necessary
user a Party Fiscal Classification because the company has Government authorization to exclude the ICMS
Tax Amount from PIS and COFINS taxable basis.

169
DOING TRANSACTION

This topic shown the main processes jobs that should be ran to entrance a fiscal document in the
Oracle ERP Cloud.

 Entrance fiscal document in the FDC

o Manual Entrance
o Electronic Entrance

FISCAL DOCUMENT CAPTURE ENTRANCE

A fiscal document is captured automatically using an XML import process or captured manually. This
process of capturing the fiscal document information is closely related to the business flow of the
receiving, shipping (for in transit receipts), and inventory management applications.

MANUALLY ENTRANCE

You can enter a fiscal document manually in FDC (without a XML associated). To do that, you need
to provide all the main information necessarily to process the document.

Navigation: Supply Chain Execution => Fiscal Document Capture

In the Fiscal Document Capture work area, in the Fiscal Document tasks panel drawer, select ”Manage
Inbound Fiscal Documents”

On the Fiscal Document Capture page, click the Add icon

In the Header infolets, provide the required information. Based on the fiscal document information you
are recording, select a fiscal flow (as described below).

Standard Flows:

 Standard - Select this option for creating fiscal documents involving goods or services that may not match
purchase orders and may contain transactions that may not involve payments.
 Standard Complementary - Select this option for creating complementary fiscal documents for standard
fiscal documents involving goods or services that may not match purchase orders and may contain
transactions that may not involve payments.
 Bookkeeping - Select this option for creating fiscal documents involving fiscal flows that do not match
purchase orders or shipments and the fiscal documents are captured only for fiscal reporting purposes

170
Drop Shipment Flows:

 Drop Shipment Remitance - Select this option for creating fiscal documents involving drop shipment
remitances that match fiscal documents.
 Drop Shipment Sales - Select this option for creating fiscal documents involving drop shipment sales,
where the fiscal document includes goods or services that match purchase orders and contains transactions
that may involve payments.
 Drop Shipment Sales Complementary - Select this option for creating complementary fiscal documents
for fiscal documents involving drop shipment sales, where the fiscal document includes goods or services
that match purchase orders and contains transactions that may involve payments.

You can create a complementary fiscal document for recording additional changes to an existing fiscal document.

Freight Acquisition Flows:

 Freight Acquisition - Select this option for creating fiscal documents involving freight services that are
issued by a service provider.
 Freight Acquisition Complementary - Select this option for creating complementary fiscal documents for
fiscal documents involving freight services.

You can create a complementary fiscal document for recording additional changes to an existing fiscal document.

Internal Transfer Flow:

 Internal Transfer - You can capture internal transfer information in fiscal documents

Import Goods Flow:

 Import Material by Internal Transfer - You can import goods from the overseas branch organization to
your organization within Brazil for self use or to be delivered to your customer organization

Goods Return Flows - Return Material Authorization:

 Material Returned by Seller - Create fiscal documents involving return of goods from sellers.
 Material Returned by Customer - Create fiscal documents involving return of goods from customers.

Based on the requirement select an infolets and provide information, once the required information is recorded,
click Save and Close.

To provide information in the Lines infolets, provide details of the line items regarding item, purchase (when
applicable), schedules (when PO applicable), and taxes.

A single fiscal document can have multiple PO schedules from a supplier shipping to a same ship to location

Click in the ADD button to insert the item line information. You can have receipts with or without a PO associated.
For receipt with PO, the required fields are:

 Document type – Select here Purchase Order if your receipt will have a PO associated, or No Source if don´t;
 Source Document BU (where the PO is placed) – Inform the BU (Business Unit) where the PO comes
from;

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  Item – the Item code of the PO
 Type – Goods or service, depends on the nature of you item
 Quantity – Invoice Item Quantity
 UOM – unit of measure of the item in the invoice
 Unit Price – unit price of the item in the invoice

Based on the information above, the system will afford the POs that are available and eligible to be received of that
supplier and items you informed in the receipt line.

Click in the ADD button to select the POs and Schedules that will be associated with this line. (As mentioned before,
you can have multiple POs schedules for the same supplier to the same ship to location).

Enter the PO number, line number and schedule number and allocate the quantity you need to match with the fiscal
document line.

Charge lines include supplier charges paid by the supplier and billed to the buying organization. You can capture the
total amount of supplier charges shown in the fiscal document and then proportionately allocate the charge amounts
to the individual items in the fiscal document using item material amount as the allocation basis.

The freight information includes carrier waybill number and carrier vehicle plate number and whether International
Commercial Terms (INCOTERMS) are free on board (FOB) or Cost, Insurance, and Freight (CIF).

Supplier charges are taxable and are added to the material cost of the item. The summed amount of material and
supplier charges equals the tax basis of the item on which some taxes are calculated. Usually charges only include
freight charges.

To provide information on charges, provide the required information. Allocate charges manually or keep default
value as calculated by the supplier and validate taxes.

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Other documents include referenced fiscal documents and legal documents. When additional changes are required
in a fiscal document, you can create a complementary fiscal document to record these additional changes. While
creating this complementary fiscal document, you can reference the earlier fiscal document and this reference is
recorded as a referenced fiscal document.

To provide information on other documents infotile, provide the required information. Include all the legal
transactions that are associated with this fiscal document in the legal processes. Include referenced fiscal document
information here.

After entering all the information related to the fiscal document item line, you can (when applicable) calculate the
taxes that needs to be reflected in the document. To do that, click in Actions and then click VALIDATE FISCAL
DOCUMENT. After validating all the information, system will release the function Calculate taxes.

If any taxes rule were identified by the system, you can ask FDC to do it. Click in Actions again and then click in
CALCULATE TAX.

Several aspects of a fiscal document are validated. The validation activity detects the process and type of fiscal
document and based on the expected behavior captured from the process options entity, a series of validations are
performed on the fiscal document. This activity includes validation for data integrity, price and quantity tolerances.
Based on the validation, price and quantity holds on the fiscal document are generated. Information is gathered on
tax calculation and returns that can generate tax holds on the documents. Validation also sets the fiscal document's
status. When necessary you need to manage the system errors and holds, to perform that, click in Actions and then
click in View Validation Errors.

With the fiscal document validated, you need to Confirm Item Deliveries in order to have your fiscal document captured
by FDC and released to all the other modules integrations.

To record item deliveries, click Actions and Validate deliveries, and in the confirmation message click OK. This action
starts the fiscal document validation activity, which validates the delivered quantities entered against the tolerance
rules defined and other validation parameters. Click Save and Close.

The status of you fiscal document should be Captured at this point and time

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ELECTRONIC ENTRANCE

The electronic entrance of the fiscal document in FDC occurs through the XML import process. It´s necessary to
upload in Oracle Cloud environment the files sent by the suppliers to be process in FDC.

For that, you need to create the files in the right place in the system:

1- Insert the XML into the system

2- Navigation: Tools>File Import and Export
3- Click on the ADD (+) button to upload the XML in the directory. Browse your file and click in Save and
Close.

Note: IMPORTANT! Your file must be browsed from a main directory tree, otherwise the system will not
recognize it as a valid directory.

The XMLs MUST be placed at the Account: scm/BrazilSEFAZSupplierMessages/import. FDC is expecting to find the
files exactly here.

Once placed the file, it will be necessary to run two process in order to import the XMLs to FDC final tables/pages.

Run the import process to input the information as follow:

1- Navigation: Tools>Schedule Processes

2- Click on Schedule New Process button, and then search for the Import Brazil Electronic Documents job.

Note: This job doesn´t have any parameters! So just click on OK button !

After running the Import Electronic Fiscal document, to affort the xml file in the FDC pages it´s necessary to run the
Import Brazil Electronic Documents.

You can run this job for every XML uploaded, or fill the parameters in order to control witch Supplier you want to
run the process.

If everything runs fine, you will be able to find your fiscal document in the Fiscal Document Capture work place with the
status as NEW.

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Manage the fiscal document uploaded

Click on the fiscal document link to open it and review it is content.

It´s important to mention that, in order to have everything loaded automatically, some assumptions must be
consider:

 Supplier register must be valid

 Purchase order must be with OPEN status and have the invoice match option with RECEIPT
 The supplier item cross reference MUST be done
 Tax rules should be defined

All Infolets should have been filled automatically: header, lines, charges and so on. When needed, you can complete
the information imported, such as any tax determinant, accounting combination (for freight fiscal document).

After reviewing all the necessary information, you should be able to validate the fiscal document, check and release
all holds and confirm the items deliveries.

MANAGE INTERFACE EXCEPTIONS

Exceptions can include deviations in quantity, price, taxes, general attributes, and other fiscal attributes.

The Fiscal Document Capture page with the View drop-down list set to Interface Exceptions, lists all the discrepancy
available for review and reconciliation, errors found by preprocessing validation, and errors found in the fiscal
document import process are listed here. You can resolve these exceptions automatically or through manual
intervention.

To view interface exceptions, do the following:

In the Fiscal Document Capture work area, in the Fiscal Document tasks panel drawer, select Manage
Interface Exceptions.

In the Fiscal Document Capture page, list of fiscal documents with exceptions are listed. Correct
everything needed and save it.

The status should be MODIFIED.

Back to the Schedule Process and re-run the Import Brazil Electronic Documents job. Check the FDC workplace to
find out the fiscal document imported.

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MAIN PROCESS JOB

This topic explain the main processes that must be executed to integrate and processing data to entrance fiscal
document in the ERP Cloud.

1. Import Brazil Electronic Documents: load the fiscal document XML to FDC Interface
2. Import Electronic Fiscal Documents: import fiscal document XML to FDC
3. Put Away: delivery item to inventory organization
4. Transfer Transactions from Receiving to Costing: transfer transaction to be accounting cost
5. Create Receipt Accounting Distributions: create accounting distributions for Receiving transactions
6. Validate and Posting Payables Transactions: complete transaction payables
7. Transfer Costs to Cost Management: transfer Payables Transactions to be accounting cost
8. Transfer Transactions from Inventory to Costing: transfer Inventory Transaction to be costing
9. Create Receipt Accounting Distributions: run this processes one more time to update transactions
10. Create cost accounting distributions: create accounting distributions for Costing transactions
This process MUST BE run in the Cost Account UI
11. Create Accounting for Receipt and Cost to transfer transactions into General Ledger
12. Finish

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SCENARIOS
This topic shows five scenarios tested and validated by Localization Brazilian Team as examples:

 Resales with PIP not ICMS ST

 Consumption with IPI
 Freight Acquisition (CTe)
 Fixed Asset not IPI
 Consigned

RESALES WITH IPI NOT ICMS ST

FDC main page and transaction line 2 represents the resales operation.

Taxes from transaction line 2

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ICMS Rules

IPI Rules

COFINS RECUP Rules

178
COFINS COST Rules

PIS RECUP Rules

PIS COST Rules

179
IPI REP Rules

180
CONSUMPTION WITH IPI

FDC main page and transaction line 1 represents the consumption operation.

ICMS Rules

IPI Rules

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FREIGHT ACQUISITION (CTE)

This CTe shows as reference the fiscal document used in the examples above, FD number 08157.

CTe taxes

182
PIS RECUP

PIS COST

COFINS RECUP

183
COFINS COST

184
FIXED ASSET NOT IPI

ICMS

DIFAL

185
CONSIGNED

More information about Consigned Flow check the note Procure to Pay for Brazil (Doc ID 2347415.1), available in
My Oracle Support.

FD1: entrance of consignment material in the company.

186
ICMS

IPI

FD3: entrance of sales material based on FD1 and FD2

187
PIS RECUP

PIS COST

COFINS RECUP

COFINS COST

188
BRAZILIAN FINANCIAL BANKS
This topic is dedicated to local solutions applied to meet the requirements of Brazilian Banks.

PIX PAYMENT FOR ITAU BANK

PIX Payment solution was developed by Brazil local team to settle supplier’s documents available to pay in Oracle
Payables Cloud.

This feature has a specific electronic layout to attend PIX and it uses only supplier´s bank account information.

The Brazilian PIX has others ways to process a payment, however in this moment LACLS attend just using supplier´s
bank account.

Following the next steps to use this new feature:

BI PUBLISH

It needs to execute the procedures describe in the next Docs.ID:

1- Latin America Cloud Local Solutions (LACLS) - Installation and Maintenance Notes (Doc ID 2568812.1)
2- Latin America Cloud Local Solutions (LACLS) - How to Get Latest Pack (Doc ID 2588752.1)
3- Latin America Cloud Local Solution for Brazil (Doc ID 2291252.1)

CREATE FORMATS

Format link to template (BI), step above.

1- Navigate to Setup and Maintenance

2- Search for Manage Formats
3- Create a new format to PIX Itau Payment
4- Finish the process

CREATE PAYMENT METHOD

It needs create a new payment method

1- Navigate to Setup and Maintenance

2- Search for Manage Payment Method
3- Create a new payment method for PIX
4- Finish the process

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CREATE PAYMENT PROCESS PROFILE (PPP)

The PPP will be create to set some financials rules to select only documents with payment method define as PIX

1- Navigate to Setup and Maintenance

2- Search for Manage Payment Process Profiles
3- Create a new PPP with name and code that easy to understand that applied for Itau bank and it is for PIX
4- Select the appropriate Payment File Format. It was defined in the Manage Format
5- Define processing type as Electronic
6- Select a specific Payment Method related to PIX, in the Usage Rules page
7- Select only Itau bank accounts, in the Usage Rules page
8- Define BRL as a specific currency code for this PPP
9- Finish the process

190
FREQUENTLY ASKED QUESTIONS (FAQ)

This topic has a set of frequent questions and answers found through during implementations.

HOW TO VIEW A XML FILE STRUCTERED?

Install the software “Notepad++” in the computer. For Oracle employees you can find it in My Desktop.
Open it and go to “Plugins>Plugins Admin>Search to XML Tools and Install.

WHAT ARE A DIFERENCE BETWEEN SPECIAL INCLUSIVE AND STANDARD INCLUSIVE TAX?

There are three different tax inclusion method in Oracle ERP Cloud.

 Standard non-inclusive handling: This option calculates the taxes as exclusive of the given
transaction line amount.
 Special inclusive handling: This option calculates the taxes as inclusive of the given transaction
line amount, but the calculation methodology differs from the standard inclusive process.
 Standard inclusive handling is not applied to Brazil.

SHOULD “TIME ZONE” NEEDS TO BE DEFINED IN THE LEGAL ADDRESS?

It is requirement to define a time zone in the legal address to avoid issues in the import XML through FDC.

HOW TO HAVE A CORRECT ACCOUNTING FOR AN EXPENSES OR SERVICES PO?

When the FDC is enabled, the receiving has a modified behaver, and starts receiving only through FDC.
For inventory items, the correct accounting occurs in the receipt transaction (put way-FDC).

For items of expenses or services that do not enter through the FDC, it is necessary that when creating a
PO, the “Receipt Close Tolerance Percent “field, located in the “Schedules” section, must be 100%. This
way the receiving action is not necessary, because the line is automatically closed when the entrance is
done by AP.

When AP finds this PO definition, the system creates the amount value directly to the expense account
informed in the PO (accrual account).

WHY PURCHASE ORDER IS NOT SHOWN IN FDC?

Change the “Invoice Match Option” field to “Receipt” value instead of “Order”.

191
WHY TAXES IS NOT BEEN CALCULATED IN THE ERP CLOUD?

Check the level of the party. The default level is Business Unit, but can be changed by Legal Entity. This
information can be checked in the Manage Party Tax Profiles.

WHY ICMS TAX OR ISS TAX DOES NOT CALCULATED IN THE TRANSACTIONS?

ICMS and ISS taxes are calculated for many Jurisdictions, so when the tax is not calculated it is need to
check if the jurisdiction is created for the tax. ICMS must be defined at State level and ISS must be defined
at City level.

ERROR AT “SHIP TO SITE” FOR RECOVERABLE TAX RULE

The Recoverable Tax Rule does not recognize the function “NOT EQUAL TO”. It only recognize positive
operator like “Equal to” and “In”.

UNDERSTANDING PLACE OF SUPPLY

During in the entrance of fiscal document, the application derives the place of supply of the transaction
as shown in the table below. It is important to understand how event class consider which jurisdiction
will be used on the tax calculation.

In the table below we have Jurisdiction as a Place of Supply. Order to Cash and Procure to Pay as
event classes.

BEST PRACTICE TO SETUP A RECOVERABLE TAX RATE

In general is more frequently to not recoverable a tax than the opposite. Because of that the
recommendation is to use ZERO as “Tax Rules Default”, leaving the rates for recovery to be defined
at “Recoverable Tax Rules”.

192
CAN I USE THE SAME EETERMINING FACTOR FOR MORE THAN ONE TAXES

Tax Cloud allow to use the same Determining Factor and Conditions Sets for different taxes as long
as they are all under in the same Tax Regime.

HOW TO DEFINE MINIMUM TAX AMOUNT FOR WITHHOLDING TAX?

The minimum tax amount can be defined in the “Threshold Controls” section at Manage Tax UI.

Navigate to Manage Tax, search for the Tax that needs to minimum amount and go to “Threshold
Controls” section.

In the “Threshold Controls” section define minimum amount as table below:

Fields Value

Threshold Buckets Level All

Threshold Basis Period

Withholding Tax Calendar Inform the withholding tax calendar

Threshold Type Tax Amount

Minimum Value Inform minimum amount for the tax

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HOW TO CHANGE IRRF TAXABLE BASES USING INSS TAX AMOUNT?

Fowling the steps bellow to change the IRPF taxable basis:

1- Inform a “Compounding Precedence” to determine a sequence that system will use to

calculate a tax. The sequence for INSS Tax must be lower than IRRF Tax. Example: If INSS
Tax has a compound number 10 the IRRF Tax must have a compound greater that number
10.
The “Compounding Precedence” field is located in Manage Tax, in the Tax Information region.

Note: The compound is important to define sequence calculation and tax formula definition.

2- Create a new Taxable Formula for IRRF Tax

a. Navigate through Transaction Tax > Manage Tax Formulas
b. Change the scope to “Withholding Tax” and Tax Formula Type equal to “Taxable Basis
Formula”;
c. Click on create;
d. Define Configuration Owner as “Global Configuration Owner”
e. Define Tax Formula Code and Name
f. Inform Tax Regime Code
g. Inform Tax IRRF Tax
h. In the Tax Formula Compounding Details inform Tax Regime and Compounding Tax
INSS Tax;
i. Save and close.
3- Create a Tax Rule based on the “Taxable Basis Rules”.

HOW TO OPEN A SERVICE REQUEST (SR) FOR FDG, FDC AND LACLS?

Following the steps bellow to open a SR to:

Fiscal Document Generator (FDG):

1- Inform the “Problem Summary” and “Problem Description”

2- Change the tab for “Cloud” in the section “Where is the Problem?”
3- Select “Oracle Fusion Tax Cloud Services” in the “Service Type” field
4- Choose environment if necessary
5- Select problem type in the “Choose Problem Type” drop list. For FDG select:
a. “Country Tax Reporting” and “AR Reports for AMER (Latin America)
6- Select the “Support Identifier”

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Fiscal Document Capture (FDC):

1- Inform the “Problem Summary” and “Problem Description”

2- Change the tab for “Cloud” in the section “Where is the Problem?”
3- Select “Oracle Fusion Inventory Management Cloud Service” in the “Service Type” field
4- Choose environment if necessary
5- Select problem type in the “Choose Problem Type” drop list. For FDC select:
a. “Fiscal Document Capture” and choose the appropriated option
6- Select the “Support Identifier”

LACLS Extractors:

1- Inform the “Problem Summary” and “Problem Description”

2- Change the tab for “Cloud” in the section “Where is the Problem?”
3- Select “Latin America Cloud Local Solutions (LACLS)” in the “Service Type” field
4- Choose environment if necessary
5- Select problem type in the “Choose Problem Type” drop list. For FDC select:
a. “General Service Request - LACLS”
6- Select the “Support Identifier”

WHICH PARTY SHOULD BE DEFINE IN THE TAX REGIME?

Party for the Tax Regime can be Legal Entity or Business Unit and the Oracle Cloud Tax is ready to
calculate by Business Unit. So, if it is the first-time configuration you can defined a Party with the
Business Unit.

WHY TAX CLOUD DOES NOT CALCULATE?

If the Tax Cloud does not calculate tax in the transactions you have to check the following steps:

 Manage Party Tax Profiles: you have to check if the Business Unit has the fields “Use legal
entity tax subscription” and “Use legal entity withholding tax subscription”.
If the field is enable the system will be consider to calculate tax by Legal Entity and in this case
you must associate the Legal Entity in the:
o Manage Tax Regime
o Manage Configuration Owner Tax Options.

HOW TO DEFINE A BRAZILIAN CALENDAR?

Oracle ERP Cloud is ready to define a Brazilian Calendar to set holiday and weekend, please check
note 2347415.1 Procure to Pay for Brazil available in My Oracle Support and look for Managing
Payables Collection Documents for Brazil file.

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HOW TO DEFINE DOCUMENT TO TAX AUTHORITY?

The Oracle ERP Cloud allow two type definition to define a document to a Tax Authority please check
the topic Configuration Owner Tax Options in this document.

WHY PURCHASE ORDERIS DOES NOT HAVE INCLUSIVE TAX IN AP INVOICE MATCH?

It is necessary enable the “Inclusive Tax handling in Procure to Pay flow” option. Following steps in the
PRC:PO: How To Enable Incorporate Tax-Inclusive Pricing on Purchase Orders / Inclusive Tax
Handling in Purchase Orders ? (Doc ID 2470965.1).

HOW TO IDENTIFY TAXABLE REGIME FOR DIFFERENT COMPANIES?

There are two different taxable regime in Brazil Assumed Profit (Lucro Pressumido) and Actual Profit
(Lucro Real).

The definition can be done in Manage Tax Profile using Legal Entity level. There is a tab
“Classifications” where it is possible define the regimes.

After this definition you must create a Tax Rule based on this classification to apply the correct rate
for PIS and COFINS.

WHEN SHOULD IT USE A LOCATION OF FINAL DISCHARGE?

The Location of Final Discharge can be used to calculate tax when Ship-to Jurisdiction is not the basis to
apply tax. In this case it is possible define another address that is not in the linked with Legal Entity
address.

ISS tax case, example Company Address (Ship-to Location) establish in Sao Paulo city, Supplier
(Ship-from) located in Barueri City but the service was executed in Guarulhos city. So the ISS tax
must be calculated where service was executed (Guarulhos), in this case the recommendation is use
the field Location of Final Discharge.

There is a new group in LACLS_ExtractApSpedData_Incremental extractor named

G_FINAL_DISCHARGE_LOCATION to attend this case.

HOW TO IDENTIFY TAXABLE REGIME FOR DIFFERENT COMPANIES?

There are two different taxable regime in Brazil Assumed Profit (Lucro Pressumido) and Actual Profit
(Lucro Real).

196
The definition can be done in Manage Tax Profile using Legal Entity level. There is a tab
“Classifications” where it is possible define the regimes.

After this definition you must create a Tax Rule based on this classification to apply the correct rate
for PIS and COFINS.

HOW TO CHANGE “ACCOUNTING CLASS” FOR FISCAL DOCUMENTS FROM FDC TO AP?

The accounting class “NonRecoverable” can be change using the Oracle Subledger Accounting Cloud
(SLA). It is possible consolidate the line information generated in the NonRecoverable class with
Accrual, allowing the system to display only one line in the AP transaction and journal in the General
Ledger Cloud. The definition of the SLA must be done in the subledger that will generate the
accounting of the fiscal document, so the configuration may vary according to the purchase made.

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APPENDIX 1 – ACCOUTING FLOW WT TAX

This topic show the accounting flow related to Withholding Tax Document created or NOT in Oracle Payables Cloud.
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