Customer Insight – Global CPG Experience with Brazil Nota Fiscal

Scott Lewin
January 22, 2013

The Company- Fortune 100 CPG (Food & Beverage) multi-national

The Problem- this CPG Company, much like most large multi-nationals, was managing their global operations, including Brazil, from a SAP Center of Excellence. Because outbound Nota Fiscal processes in Brazil are required to be real-time or the truck is not allowed to leave the loading dock, IT was always on call for day to day production support issues. The headache was further compounded by the disparate and customized nature of their in-house Nota Fiscal solution which had multiple components including: SAP configuration, a print procedure, a middleware component, and a specific software for Nota Fiscal compliance. Beyond day to day support activity, the in-house solution required updates and configurations to manage the changing Brazil Nota Fiscal legislation. These upgrades posed two issues:

  • The in-house solution required the support of multiple hardware boxes – needing a separate instance for Production, QA, and Development. This made the work more difficult especially during the testing and transport processes.
  • Additionally, each new country change required external consulting services for upgrades, maintenance and support which became very expensive on top of the software maintenance.

So when a new December 2012 business requirement was threatening the financial team with non-compliance and the logistics teams with an inability to ship, the leadership started looking for an alternative that:

  • eliminated the SAP configuration issues now and in the future
  • lowered the ongoing costs to support
  • provided enterprise support where they could pick up the phone in Portuguese, Spanish and English
  • guaranteed compliance with any future changes
  • eliminated duplicate hardware and multiple systems
  • reduced reliance on outside consulting firm for changes
  • provided a Latin America eInvoicing network that covered multiple countries including Brazil and Mexico

The Solution– By utilizing a SAP Rapid Deployment Template from Sovos, this food & beverage manufacturer was able to maintain their current global version of SAP, meet the newly mandated NFe changes, and protect their SAP system from future issues. Additionally, the approach of the Rapid Deployment Template and Latin American eInvoicing Network will allow this CPG company to upgrade their SAP system on their terms, not on the terms dictated by one country’s unique legislation. Changes to the local requirements are managed within the rapid deployment template which removes the burden of constantly updating your ERP every time the local regulation changes and the Latin America eInvoicing Network maintains the connectivity for Brazil Nota Fiscal for Goods, NF for Services, CTe for Transportation Invoices, Mexico eFactura (CFD and CFDI), Argentina AFIP, et al….

The Lesson- Managing in-house software solutions for SAP Brazil Nota Fiscal can be complex and has many costs: multiple software solutions, multiple maintenance fees, multiple hardware maintenance fees, maintaining the solution through a multi-tier SAP deployment, day to day production support, ongoing change management and upgrade support. Additionally, most in-house solutions are limited to one country. As your company looks to comply with the constantly changing legislation in Latin America, ensure you understand the support issues you are experiencing during both production and upgrades.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Scott Lewin

Gain timely insight and important up to the minute information about the current legislative changes in Latin America, including Brazil Nota Fiscal, Mexico CFDI, Argentina AFIP and Chile DTE. Learn how these changes affect your operations, your finances and also your Information Technology teams.
Share This Post

Sales & Use Tax United States
June 17, 2019
South Dakota v. Wayfair One Year Later – Retrospective and Look Ahead Webinar

Since the groundbreaking Supreme Court decision in South Dakota v. Wayfair last June, tax compliance requirements of sellers have undergone a seismic shift. In recent months, we have also witnessed a series of after-shocks directed at setting the foundation for U.S. sales tax compliance in the modern age. In a live webinar and Q&A, “South […]

United States
June 14, 2019
Sovos Again Named a Top Workplace Based on Employee Satisfaction

Earlier this week, the Star Tribune (Minneapolis, MN) released its annual list of Top Workplaces. The newspaper compiles this list based on employee satisfaction scores for companies across Minnesota. Sovos has once again been named to this list as a national standard setter of leading workplaces because of the actions we take to put employees […]

E-Invoicing Compliance EMEA
June 13, 2019
French VAT Fraud Prevention Package to Include a New Attempt to Mandate B2B E-invoicing

The French Minister of Public Accounts and Action, which has authority over all tax matters, has taken advantage of the process that is required to transpose the EU E-Commerce Directive to launch a number of initiatives to curb VAT fraud, including a renewed attempt to create a system of mandatory e-invoicing. Going from B2G to […]

EMEA IPT
June 13, 2019
Knowing When and How to Reclaim IPT

An insurer may need to reclaim insurance premium tax (IPT) from a tax authority for many reasons. These include a policy cancellation or mid-term adjustment, an administrative error or issuing a no claims bonus. In each case, it’s important to be aware of the issues involved ahead of any reclaim to ensure taxes are recovered […]

Sales & Use Tax United States
June 7, 2019
Marketplace Sales Tax Collection Rules and Current State of Affairs

Marketplace sales tax laws are being used by states as an additional means to collect more sales tax revenue from remote sellers on marketplaces like Amazon, eBay, Etsy, and WalMart. These online marketplaces and the rules being introduced to compel marketplace tax compliance have introduced new sales tax collection and remittance questions and complexity. According […]