Manage Invoice Matching for Brazil

In Brazil, a country configuration solution is used to perform supplier invoice matching of purchase orders. When goods are received in 'Purchase Order. Receive Goods' (PPS300), the supplier invoice number is specified together with the invoice line and supplier invoice series. This is used as the base in the invoice matching function 'Supplier Invoice. Record' (APBR01).

Before you start

You must be familiar with the terms when working with supplier invoice lines, see provided calculations:

Basic values used for calculation of taxes:

  • Service value or goods value = quantity * price
  • Customs value = goods value divided by (1 + Importation rate/100)
  • Importation tax = customs value * importation rate.

IPI amounts are calculated as follows:

The IPI base amount consists of goods value, freight, insurance, and other expenses. For importation invoices, the base is set to the customs value plus the importation tax. The IPI base can be adjusted based on 'IPI reduced base in percent' in 'Settings - CFOP Code' (CRBR07) or based on 'Reduced or increased base IPI in percent' in 'Item. Open Complement' (CRBR04).

If IPI tax calculation is not activated on the CFOP in (CRBR07) and the fiscal code in (CRBR07) is normal or ICMS to others, the IPI tax base is zeroed and the tax base is instead stored in 'IPI amount not attributed'. The same applies if IPI tax calculation is activated but no IPI tax rate is found.

If IPI tax calculation is not activated on the CFOP in (CRBR07) and the fiscal code in (CRBR07) is IPI to others or IPI/ICMS to others, the IPI tax base is zeroed and the tax base is instead stored in 'IPI other amount'. The same applies if IPI tax calculation is activated but no IPI tax rate is found.

IPI percentage is retrieved from the purchase order line.

IPI amount is calculated by using the IPI base multiplied by the IPI percentage.

IPI credit amounts are manually handled and should be specified per supplier invoice line.

ICMS amounts are calculated as follows:

The ICMS base amount consists of goods value, freight, insurance, and other expenses. If industry equivalence is disabled in 'Supplier Invoice Line. Record' (APBR02), the IPI amount is also included. The tax base can be adjusted according to the 'ICMS reduced base in percent' in (CRBR07).

For importation invoices, the ICMS base amount consists of goods value, freight, insurance, other expenses, and the IPI amount. In addition, the PIS importation amount and the COFINS importation amount are added to the base. The base is adjusted by dividing the tax base by the 1-adjusted ICMS rate, where the adjusted ICMS rate is either equal to the ICMS percent, or the ICMS percent adjusted with the value by 'ICMS reduced base in percent' in (CRBR07).

If ICMS tax calculation is not activated on the CFOP in (CRBR07), the fiscal code in (CRBR07) is normal or IPI to others. The ICMS tax base is zeroed and the tax base is instead stored in 'ICMS amount not tributed'. The same applies if ICMS tax calculation is activated but no ICMS tax rate is found.

If ICMS tax calculation is not activated on the CFOP in (CRBR07), the fiscal code in (CRBR07) is ICMS to others or IPI/ICMS to others. The ICMS tax base is zeroed and the tax base is instead stored in 'ICMS other amount'. The same applies if ICMS tax calculation is activated but no ICMS tax rate is found.

The ICMS percent can be retrieved from the CFOP code in (CRBR07) or from the federation unit in 'Federation Unit. Open' (CRBR01).

The ICMS amount is calculated by using the retrieved ICMS rate multiplied with the tax base.

If 'CNPJ at Facility level' in 'Company. Connect Division' (MNS100) is selected, the ICMS tax is retrieved in 'From To Federation Unit' (CRBR60), instead of in (CRBR01).

ICMS tax substitution amounts are calculated as follows:

The ICMS tax substitution base, percent and amount are specified manually per supplier invoice line.

If 'CNPJ at Facility Level' in (MNS100) is selected, the ICMS tax substitution rate is based on the 'From Federation Unit' and 'To Federation Unit' in 'ICMS Tax Subst Rate. Open per Item/FU' (CRBR02).

ICMS Taxpayer Tax Rate Differential (DIFAL) is calculated as follows:

DIFAL calculation can be activated in 'CFOP. Open Settings' (CRBR07). DIFAL is the ICMS difference between the interstates and internal rates. If 'DIFAL calculation' is activated in (CRBR07), the DIFAL value will be calculated and the corresponding entries for DIFAL will be created after supplier invoicing. The DIFAL calculation applies to interstate operations for final consumers only.

DIFAL for purchase invoices (Single/Double base) can be calculated with these conditions:

  • Interstate operations (different states)
  • ICMS taxpayer
  • Final consumer

Double base and Single base settings can be defined in 'From/To Federation Unit. Open' (CRBR60) if CNPJ is at facility level and in 'Federation Unit. Open' (CRBR01) if it is at division level.

The calculated DIFAL value for Purchase Invoices generates accounting entries with accounting event PP20 and these accounting types:
  • E16 - DIFAL to be deducted (debit)
  • E167 - DIFAL (credit)

INSS amount

The INSS amount is specified manually per supplier invoice line.

IRRF amount

The IRRF amount is specified manually per supplier invoice line.

PIS amounts are calculated as follows:

The PIS tax base consists of goods value, service amount, freight, insurance and other expenses. IRRF, INSS, and discount are withdrawn from the tax base. For importation invoices, the tax base is the customs value. The PIS base can be adjusted by 'PIS reduced base in percent' in (CRBR07) or based on 'Reduct/incr on PIS calc base percent' in (CRBR04).

As the first option, the PIS percentage is retrieved from (CRBR07) and if it cannot be found, it is retrieved from the item in (CRBR04) if 'PIS from item' is selected in (CRBR04). The last option is to retrieve the rate from the division in (MNS100).

If 'CNPJ at Facility level' in (MNS100) is selected the PIS percentage is retrieved in 'Facility. Open' (CRS008) from the X-panel in 'Federation Unit per Facility' (CRBR55), instead of in (MNS100).

The PIS amount is calculated by multiplying the PIS base with the PIS percentage.

PIS importation amounts are calculated as follows:

The PIS importation tax base is the customs value. The tax base can be adjusted by 'PIS reduced base in percent' in (CRBR07) or based on 'Reduct/incr on PIS calc base percent' in (CRBR04).

As the first option, the PIS importation percentage is retrieved from (CRBR07) and if cannot be found, it is retrieved from the item in (CRBR04) if 'PIS from item' is selected in (CRBR04). The last option is to retrieve the rate from the division in (MNS100).

If 'CNPJ at Facility level' in (MNS100) is selected the PIS percentage is retrieved in (CRS008) from the X-panel in (CRBR55), instead of in MNS100.

The PIS importation amount is calculated by multiplying the PIS base with the PIS percentage.

COFINS amounts are calculated as follows:

The COFINS tax base consists of goods value, service amount, freight, insurance, and other expenses. IRRF, INSS, and discount are withdrawn from the tax base. For importation invoices, the tax base is the customs value. The COFINS base can be adjusted by 'COFINS reduced base in percent' in (CRBR07) or based on 'Pct reduced/increased base COFINS' in (CRBR04).

As the first option, the COFINS percentage is retrieved from (CRBR07). If it cannot be found, it is retrieved from the item in (CRBR04) if 'COFINS from Item' is selected in (CRBR04). The last option is to retrieve the rate from the division in (MNS100).

If 'CNPJ at Facility level' in (MNS100) is selected the COFINS percentage is retrieved in (CRS008) from the X-panel in (CRBR55), instead of in (MNS100).

For importation invoices, the COFINS percentage is retrieved from 'Pct COFINS credit' in (CRBR04) as the first option. If it cannot be found, the rate is instead retrieved as the COFINS rate described above.

The COFINS amount is calculated by multiplying the COFINS base by the COFINS percentage. For importation invoices, the calculated amount in 'COFINS importation credit' in (APBR02) can be changed manually.

COFINS importation amounts are calculated as follows:

The COFINS importation tax base is the customs value. The tax base can be adjusted by 'COFINS reduced base in percent' in (CRBR07) or based on 'Pct reduced/increased base COFINS' in (CRBR04).

As the first option, the COFINS percentage is retrieved from (CRBR07), if not found there it is retrieved from the item in (CRBR04) if 'COFINS from Item' is selected in (CRBR04). The last option is to retrieve the rate from the division in (MNS100).

If 'CNPJ at Facility level' in (MNS100) is selected the COFINS percentage is retrieved in (CRS008) from the X-panel in (CRBR55), instead of in (MNS100).

The COFINS amount is calculated by multiplying the COFINS base by the COFINS percentage.

The total value of invoice line is calculated as follows:

  • Goods value
  • Service amount
  • Freight amount
  • Insurance amount
  • Other expense amount
  • IPI amount
  • ICMS tax substitution amount.

If the supplier invoice is importation (federation unit is EX), add these items:

  • ICMS amount
  • PIS importation amount
  • COFINS importation amount
  • COFINS importation credit amount.

Deduct these items:

  • INSS amount
  • IRRF amount
  • Discount amount.

PIS retained amount is calculated as follows:

PIS retained amount is only calculated for service invoices. The retained tax base is the total value of the invoice line (adding the INSS and IRRF amounts). The PIS retained percentage is retrieved from (MNS100). If 'CNPJ at Facility level' in (MNS100) is selected, the PIS retained percentage is retrieved in (CRS008) from the X-panel in (CRBR55), instead of in (MNS100). The retained PIS amount is calculated by multiplying the tax base by the percentage.

COFINS retained amount is calculated as follows:

COFINS retained amount is only calculated for service invoices. The retained tax base is the total value of the invoice line (adding the INSS and IRRF amounts). The COFINS retained percentage is retrieved from (MNS100). If 'CNPJ at Facility level' in (MNS100) is selected, the COFINS retained percentage is retrieved in (CRS008) from the X-panel in (CRBR55), instead of in (MNS100). The retained COFINS amount is calculated by multiplying the tax base by the percentage.

CSLL retained amount is calculated as follows:

CSLL retained amount is only calculated for service invoices. The retained tax base is the total value of the invoice line. The CSLL retained percentage is retrieved from (MNS100). If 'CNPJ at Facility level' in (MNS100) is selected the CSSL retained percentage is retrieved in (CRS008) from the X-panel in (CRBR55), instead of in (MNS100). The CSLL retained amount is calculated by multiplying the tax base by the percentage.

ISS retained amount is calculated as follows:

ISS retained amount is only calculated for service invoices. The retained tax base is the total value of the invoice line. If 'CNPJ at Facility level' in (MNS100) is selected, the ISS percentage is retrieved in (CRS008) from the X-panel in (CRBR55), instead of in (MNS100). The ISS retained percentage is retrieved from (MNS100). The ISS retained amount is calculated by multiplying the tax base by the percentage.

Invoice matching and transfer

These steps should be performed to complete the invoice matching process and to transfer the supplier invoice to accounts payable and general ledger. The steps are not mandatory.

Register supplier invoice

  1. The user selects a FAM function in (APBR01).

    The supplier, the supplier invoice number, the supplier invoice series, and the supplier invoice type ('Especie') should be specified. In addition, the dates should be specified if they differ from the current date. The import registration number can also be specified.

    The due date and the payment terms should be retrieved from the selected supplier.

    The due date is calculated based on the invoice date, the payment terms, and the system calendar.

    Both the due date and the payment terms can be changed manually.

  2. When the details are specified, the user registers the totals of the invoice.

    The total invoice amount is compared to the total of the fields for different types of taxes and other charges or discounts and the total amount must match in order to proceed. In addition, some optional fields can be specified such as the 'NF-e ID'. For importation invoices, additional fields can be specified such as 'PIS importation' and 'COFINS importation'.

    The total invoice amount is compared against the total of these fields:

    • Total goods value
    • Service amount
    • Freight amount
    • Insurance amount
    • Other expense amount
    • IPI amount
    • ICMS tax substitution amount.

    If the supplier invoice is importation (federation unit is EX), add these items:

    • ICMS amount
    • PIS importation amount
    • COFINS importation amount.

    Deduct these items:

    • INSS amount
    • IRRF amount
    • Discount amount.

Work with supplier invoice lines

  1. Change the invoice line.
  2. Add the invoice price.
  3. Add the internal CFOP code.
  4. If applicable, enter freight amount, insurance amount, or other expense amount, and press Enter.

    The fiscal class is retrieved from (CRBR04).

    The internal CFOP in (CRBR07) determines if the invoice is a service invoice or not, and computes the taxes that should be calculated in (APBR02). For importation invoices, the importation rate is stored in (CRBR04). When all values are calculated in (APBR02), the 'Acquisition cost' field is updated in 'Stock Transaction. Display History' (MWS070).

    Note: If you want to check a calculation, see the Before you start section.

In supplier invoicing and customer order invoicing, the inclusion of freight, insurance, and other expenses in the IPI base calculation, may vary depending on the parameter set in the field 'IPI Calculation Base' (XIPC) in (CRBR07).

These are the alternatives:

0 = All

1 = Freight

2 = Insurance

3 = Expenses

4 = Freight + Insurance

5 = Freight + Expenses

6 = Insurance + Expenses

7 = No charges.

Check invoice

Before the account entries can be created, a check should be done to verify that the total line amount and the total header amount matches. The tax amounts are controlled, not the tax bases. If the tax amounts do not match, 'Supplier Invoice. Compare' (APBR03) is displayed where the variances are displayed. The user can select to work with supplier invoice header or the supplier invoice lines to correct the differences. When corrected, a new check should be performed.

Note:  The accepted ICMS amount variances can be defined by using sorting order 9 in 'Settings – Supplier Invoice Matching' (APS900).

Create account entries

When the supplier invoice is approved, account entries can be created. The account entries are based on the accounting rules in 'Accounting Rule. Set' (CRS395).

The following accounting rules are used when accounting is performed in (APBR02).

Follow-up

The invoice header (APBR01) and the invoice lines can be displayed from 'Supplier Invoice. Display' (APBR20). From (APBR20) it is also possible to see the account entries that are created.

Transfer to the financial system

To transfer the account entries to general ledger and accounts payable, 'Supplier Invoice. Post-Process (APBR05) should be run.

Cost Complement

A cost complement can be made in (APBR02). When specifying an amount, the average cost is updated and displayed in 'Average Cost. Display/Update History' (CAS371). The cost complement is stored and displayed in 'Supplier Invoice. Dsp Cost Complement' (APBR04).

Functional limitations

When the accounting is performed in (APBR02), the amounts are calculated by reading all invoice lines and accumulating the values. You cannot, for example, create account entries per goods receipt. Purchase order charges are not managed in (APBR02). When invoice matching is performed, no account entries are created to offset the accounting rule PP10/225.