Brazil Nota Fiscal – Key Support Costs that Go Undetected

Scott Lewin
July 12, 2013

This blog was last updated on June 27, 2021

The biggest challenge with Nota Fiscal in Brazil is not the selection of a solution for compliance, it is the ongoing support costs.

If you are looking to implement Nota Fiscal in Brazil, ensure you cover the following topics so you don’t create an out of control support process.

  • Breadth of Functionality – your solution needs to be able to handle all of the following.
    • Nota Fiscal for Goods
    • Nota Fiscal for Services (City Level Integration)
    • CTe – Transportation Invoices
    • Nota Fiscal Entrada
    • SPED reporting within SAP ERP
  • Architecture – how many integrations and solutions are you really supporting?
    • You want to have an architecture that doesn’t have a lot of break points
    • Many solutions require SAP PI or a middleware – for an end to end process that can affect your ability to ship product, this is just another potential failure point
    • A solution should manage the SAP configuration issues in a “buffered” approach so that your customizations and customer requirements are not forcing constant changes on your core SAP. I have seen companies that end up with hundreds of hard coded fixes to SAP configuration problems – these lead to nightmares during upgrades regression testing
    • How many integration points are you supporting, how many different solutions are required?
    • Are you only upgrading the core/centralized ERP system every 3 months, 4 months or 6 months — these Center Of Excellence limitations place your Latin America operations at risk for non-compliance as you wait for your needed changes to reach the top of the priority list
  • A Single Monitor – can you look in one monitor to see all issues?
    • You should have one single monitor for all issues including details. It is not good enough to have to look in the ERP system, to look in the NFe stand alone box, to look in the middleware, and then to monitor the printing network for an error that can keep a truck from leaving the warehouse.
    • You solution should have one simple monitor that is part of the SAP system, and this is not standard functionality
  • Support – what are you really paying for?
    • If you pay 18-25% maintenance on a software solution and all you get are patches and updates, you are wasting your money. The process changes too often for a traditional software support model.
    • If your solution doesn’t support the SAP configuration issues with Brazil Nota Fiscal, the middleware processes including the printer management, and the government connections, then you have a lot of internal costs that are wasted
    • You should be able to pick up a phone, call a local Brazil number in Portuguese or a global number in English; speak to someone immediately about your problem regardless of where it is in the process; and have your problem solved as part of your support fees.
    • Too often support stops at a “Service Transfer Point” and you are left holding the money bags for internal resources, outsourced consultants, and T&M projects from the providers that only offer a small portion of the solution
  • Change Management – who is really maintaining the end to end process?
    • In 80% of implementations, the internal SAP COE and Support team is stuck holding the bill for end to end support. This means a good portion of your resources are struggling to fight fires rather than improve processes and create more efficiency.
    • If your solution maintenance doesn’t cover your specific SAP configuration issues, your customer specific requests, all the middleware components from integration, conversion, signing, archiving, printing, contingency, and all the government connections and legislative changes, then your team is responsible for supporting these changes.

As we approach the end of summer, now is the time to understand the true cost of ownership of SAP in Brazil. There is a better way…a much better way.

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

form 1099-k reporting
North America Tax Information Reporting
November 25, 2024
Form 1099-K Reporting: What TPSOs Should Know

This blog was last updated on November 25, 2024 As tax year 2024 approaches, third-party settlement organizations (TPSOs) are keeping a close watch on IRS guidance regarding their obligations under the IRS’s Form 1099-K reporting requirements. Recent changes to the 1099-K reporting threshold, coupled with delayed enforcement and conflicting guidance, have left many TPSOs uncertain […]

2025 tax filing season
North America Tax Information Reporting
November 21, 2024
Top 5 FAQs to Prepare for the 2025 Tax Filing Season

This blog was last updated on November 21, 2024 While “spooky season” may be over for most of us, the scariest time of year for many businesses is right around the corner: tax filing season. As they brace themselves for the flood of forms, regulatory updates, and tight deadlines, the fear of missing a critical […]

dtc shipping law updates
North America ShipCompliant
November 13, 2024
DtC Shipping Laws: Key Updates for Alcohol Shippers

This blog was last updated on November 13, 2024 When engaging in direct-to-consumer (DtC) shipping of alcohol, compliance with different state laws is paramount and so keeping up with law changes is critical. In 2024, the rules in several states for DtC have already been adjusted or will change soon. Here is a review of […]

sales tax vs. use taxes
North America Sales & Use Tax
November 8, 2024
Sales Tax vs. Use Tax, Explained. Who Reports What, and When?

This blog was last updated on November 19, 2024 One of the core concepts in sales tax compliance is also one of the most frequently misunderstood: the differences between sales tax and use tax. These tax types may look similar on the surface, but knowing the differences is essential for staying compliant and avoiding costly […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
2025 NAIC Bond Project – The Insurer’s Guide

This blog was last updated on November 14, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]