Brazil Localization: How is it different?
With the economy in such turmoil, more and more companies are looking at emerging countries (Brazil, Russia, India and China) for growth. With unique statutory, legal and language requirements, it is imperative that companies follow the rules of the land to do business.
Take the case of Brazil. Brazil has a very long customs clearance process (about 30 days) and during this time you cannot receive the inventory in your system. You need to show it as an accrual and receive it only after customs clearance.
Also, goods movement within Brazil needs to be accompanied by Invoices (Nota Fiscals being the actual term). And this needs to be in the local language (Portuguese). And to add to the complexities there is a complicated set of taxes for federal, state and local authorities, some of which are recoverable. IPI, PIS, COFINS are federal taxes while ICMS is State Tax. Also from September 2009, it will be mandatory that all invoices be transmitted electronically to the Brazil Govt and goods can be moved only after they are approved.
Oracle E-Business Suite provides Globalization and Localization patches to enable Brazil systematically. There are Brazil specific modules like Integrated Receiving (RI), Periodic Average Costing (BRPAC) which adhere to Brazil’s statutory and legal requirements.
Oracle’s solution has evolved over the years and is not fully complete. Third party tools like eComex, Mastersaf, which have easy integration with Oracle EBiz, are used extensively in Brazil.
So if you are thinking of enabling Brazil, Brazil Localization is the way forward.!!!
Comments
Hi Sandeep,
The fact that Oracle application is evolving to meet the local business needs and this gap is overcome by many Third Party tools, to understand and meet the countrys' specific needs like invoices for Transfer of goods, process to handle Custom Clearance makes the implementation in these countries challing and interesting.
Thanks for sharing this interesting information.
Posted by: Pradeep Kotagar | July 31, 2009 1:17 PM