Brazil Electronic Invoicing and Reporting Requirements

INVOICEWARE INTERNATIONALGlobal Compliance - Simplified

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Why Leading Organizations Choose Invoiceware International

Regional Latin America Platform

• One Platform, multiple countries – Brazil, Mexico, Argentina, Chile, Ecuador, Uruguay, Peru & Colombia

Lower IT Costs - Today & In Future

• Eliminate SAP ERP Configuration & Support issues

• Enterprise end-to-end support in English, Portuguese, and Spanish

• Fixed, Predictable Cost Today & Through Changes

Eliminate Operational Issues

• Increase employee productivity by 25% with a single SAP monitor for end users

• Built-in business process automation to eliminate manual data entry tasks and shut downs

Avoiding Audit Issues & Financial Penalties

• SAP ERP is the system of record, not 3rd parties

• Fiscal reporting and transactional compliance from a single solution

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Tax Authorities Control an End To End ProcessGovernment standardized XML linked to VAT Tax reporting = Real Time Audits

Supplier Registers XML

Government XML Standard Only Legal document Registers VAT Tax Obligation

PDF Accompanies Truck

Copy of Invoice OR Signed Shipping Document

depending on country

VAT Tax Linked to XML

Buyer only able to take VAT tax credits that are linked to approval codes in supplier XML

Errors or corrections are the buyer’s issue to get fixed

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Solution RequirementsSimplify Complexity Today, Manage Change in the Future

Cash, Compliance & CostEfficiency & Stability

CFO

ObjectivesHow do I automate processes with

my customers and suppliers?

How do I streamline transparency of

reporting & cash flow?

Efficiency On-time delivery

Lower Inbound Receiving costs

Accurate tax reporting & IVA Credits

Complete audit trails

Cost Employee productivity

Cost and time of shutdowns

Tax penalties, missed deductions

Cost of closing books monthly

Flexibility Automated Contingency in place

Process workflows

Working capital optimization

SAP as single system of record

IT Consolidation

Chief Information Officer

How do I provide value with fewer

systems and lower costs of upgrades?

Effort build, integrate, and maintainSAP & multiple country solutions

Staff, Solutions, Infrastructure

Annual upgrades & consulting

Stable budgeting vs. fire drill projects

Buffer SAP from change

VP Supply Chain

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Multiple Solutions• Local country solutions

• Middleware interfaces

• SAP ERP updates

SAP not System of Record• Data is changed in 3rd party

tools not in SAP ERP

Who Supports?• Search & Rescue Missions

Who Maintains?• Alignment with SAP ERP –

global regression testing?

• Ongoing knowledge of what was done and what needs to be done

IT – Traditional Approach is CostlyMultiple Solutions, Constant Upgrades

SAP

ERP

Middleware

Integrate the

System

Different

Solutions for

Each Country

CUSTOMER

IDOC1

2

3

4

5

Monitor #1 Monitor #2 Monitor #3-6

Who

Supports

Who

Supports

Who

Supports

6

7

8

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Supply Chain – Business Impact is SubstantialMission Critical Timing & End User Productivity

Invoicing Can Shut Down Operations

Government approved documents are needed to ship legally. Built in back up processes ensure you can always ship.

Level 1 - On Network Contingency

Level 2 – On Premise Contingency

Automatic Reconciliation to get invoice registered when systems back on line

Standardization can drive down costs

Use XML Invoice and PDF on trucks to lower cost in inbound receiving

Automated Purchase Order – Invoice matching before the truck arrives

Eliminate data entry at warehouse by scanning the PDF for data entry

Manage discrepancies and trigger government processes (return orders, gov’t status messages)

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IT – Financial Accuracy Equals Cash FlowVAT Remittances & Working Capital Issues

Working Capital Optimization• Accurate invoicing equates to lower DSO & less returns

• VAT tax obligations & deductions equal millions for multinationals

• Transform mandated compliance into Supply Chain Financing opportunities

Financial Reporting Accuracy - VAT

VAT obligations in Latin America – 16-22% of goods sold

Brazil VAT – based on physical movement of goods which means can owe even before you collect from your end customer

VAT Credits/Deductions must be linked to supplier’s registered XML

Finance Penalties – Local and FCPA for US Public Companies• Mexico - $3,000 per event (i.e. transaction) plus denial of deductions

• Brazil -75% to 150% of tax values - $50 Million dollar Chem business fined $3 Million by SEFAZ for deduction issues (page 30 of 10K)

• Foreign Corrupt Practices Act – SEC fines CPG company 4.2 Million of Mexico invoices issues; High Tech company FCPA issues approach $108 Million

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Invoiceware InternationalBusiness-to-Government Compliance Suite for SAP

Latin America Regional Platform

• Brazil, Mexico, Chile, Argentina, Peru, Ecuador, Uruguay & Colombia

SAP System of Record

• SAP sole system of record

• Single user interface inside SAP

Process Automation

• Automated Contingency – always be able to ship

• Lower Inbound Receiving & AP Costs

• Transactions & Reports are fully integrated

• Working Capital Optimization solutions

End to End Support

• End to End support in Portuguese, Spanish and English whether SAP issue or gov’t issues

Fixed Fee - Change Management

• All maintenance is covered by fixed cost annual fee (software & labor included)

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Invoiceware International

SAP ERPExpertise

Local CountryCompliance

The Business Impact – IT CostsDo you Have the Right Resources?

Invoiceware Resource Knowledge

Functional SAP ERP experts in each country in Latin America AND

Experts in Local Country compliance

Invoiceware Resource Language

English with global support AND

Portuguese & Spanish in local time zones

Invoiceware Economies of Scale

Our only focus in Latin America compliance AND

Learn and apply from over 200 SAP enterprise customers – common logistics issues, billing issues, cost savings

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Reports Consistency

Operational NFe (Real-Time) Accounting/Fiscal (Monthly/Year-end)

Consistency

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Invoiceware SAP Extensions for SendingTransmits Invoices, Visualizes DANFE, Cancellations, Contingency Alternatives

Integrated Archive Access

Error Correction & Reprocessing

Automatic Contingency (both On-Network and On-Premise)

Signing Attributes (“Full Loop”)

Audit Trail, Status Log

Event Based CCE & Cancellations

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Why Leading Organizations Choose Invoiceware International

Regional Latin America Platform• One Platform, multiple countries – Brazil, Mexico,

Argentina, Chile, Ecuador, et al…

SAP Hybrid Cloud Deployment• Eliminate SAP ERP Configuration & Support issues

• Single SAP Monitor for End Users

• Fixed, Predictable Cost Today & Through Changes

Production Support• Invoiceware a phone call away for day to day calls

• English, Spanish or Portuguese

• End to End Support – including SAP issues

Change Management• Ongoing Changes Included (including both software &

consulting)• Local teams work with the governments (i.e. SEFAZ, SAT, AFIP, SII)

• Remove dependency on Internal Resources & SAP to keep system updated

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Resources Click the links below for more information

Learn more about the requirements in Brazil

Brazil 2016 SPED Requirements: Block K Adds Complex Inventory and Production Reports

Upgrading Brazil Nota Fiscal 2015: Is your business at risk?

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Next Steps Contact Us To Learn More

+ 1800 – 988 – 0728www.invoicewareint.com