In Argentina, the system must print a document that shows the legality of an inventory movement. A document called a Remito is legally required for shipping transactions as a proof of the legality of inventory movements. The document contains shipping information (ship-to address, freight carrier, and shipped items) that supports the calculation of retained tax.

Because legal document content, format, and layout vary by country and, sometimes, by company; the system provides a number of country-specific legal document templates that can be readily tailored to meet unique customer-specific formatting and printing requirements.

The legal document template form code for Argentina is 31. You can use Legal Document Control (7.10.24) to configure settings that affect the generation and printing of legal documents for Argentina.

For more information on legal documents, see QAD Sales User Guide.

In Argentina, documents (invoices, credit notes, and debit notes) with pre-numbered forms are required.

You can define pre-assigned invoice numbers—called fiscal numbers—in Number Range Maintenance (36.2.21.1) and generate them when printing invoices. This addresses the special legal requirements on invoice numbering in Argentina, where invoice numbers are preprinted on government-issued invoice forms and companies are not authorized to assign their own invoice numbers.

Use Legal Document Print (7.10.4) to print generated legal documents that have not been printed yet or to reprint previously printed documents.

You can use the Legal Document Cancel Time Fence field in Legal Document Control (7.10.24) to specify the time frame (number of days) after you create a legal document during which it can be canceled, along with its associated shipper.

To cancel a legal document, unconfirm its corresponding shipper in Shipper Unconfirm (7.9.2) and the system automatically sets the legal document status to Canceled.

In Brazil, the supplier’s bank often plays a more significant role in collecting cash from customers than is traditional in other countries.

EDI Advanced Banking supports business cases where the bank acts as an intermediary to collect cash from customers. In these cases, the supplier notifies the bank of the invoice or staged payment details shortly after the invoice is issued to the customer. The bank then starts a process in which a document is issued to notify the customer that the invoice or staged payment must be paid through the bank.

To start the process, select open customer invoices and payment stages, and create a payment selection at status Initial, which does not create GL entries or update AR open balances.

You then execute the payment selection. EDI eCommerce sends the file to the bank to notify it of payments to collect. The bank then notifies you regarding whether it accepts or rejects the requests.

If you need to cancel invoices from the executed payment selection or change due dates or the interest rate, you can use Customer Payment Selection Modify.

You must define an instruction code in Bank File Format Maintain for receiving the instruction acknowledgement from the bank. When the bank sends the acknowledgement, the bank title number is updated on the corresponding invoice or stage. The bank title number is the reference that the bank has assigned to the customer invoice.

When the bank notifies you that it has received payment from customers, the system creates a new payment with the status For Collection or Paid. The system also post discounts allowed for early payment and posts interest received if customers do not pay by the due date.

For more information, see QAD Financials User Guide.

 

As in the process for Accounts Receivable, the EDI Advanced Banking process for Accounts Payable supports business cases where the bank acts as an intermediary to collect cash from customers. In these cases, the supplier notifies the bank of the invoice or staged payment details (including the amount, due date, and early or late payment conditions) shortly after the invoice is issued to the customer. The bank then sends a boleto bancário to the customer.

When you (the customer) receive the boleto bancário, you must quote the boleto bancário number on payments. Therefore, you must update the invoice or stage accordingly using Supplier Payment Reference Modify (28.1.1.13).

If applicable, you can manually include an interest amount on supplier payment lines in Supplier Payment Create or Supplier Payment Selection Create.

If you are using payment selections and you execute the payment selection, the system generates a bank file that includes interest, stage details, and the boleto bancário number. EDI eCommerce then sends the resultant file to the bank.

For more information, see QAD Financials User Guide.

Nota Fiscal–Invoicing

In Brazil, the Nota Fiscal legal document virtually replaces the invoice as a debt instrument in the shipping process and is used to calculate related taxes.

To address this requirement, the system posts Brazilian legal documents along with invoices.

Whenever an invoice is posted using the following functions, the system automatically posts its corresponding legal document:

After a legal document is posted, its status is changed to Posted in the Legal Document Report (7.10.2).

Additionally, you can create a legal document in any inventory transaction that requires a shipper such as item transfers and unplanned issues.

For more information, see QAD Sales User Guide.

Nota Fiscal–Receiving

In Brazil, the Nota Fiscal is mandatory for any material a company receives, regardless of whether or not the item is a memo item; even services require a Nota Fiscal. No goods or material can arrive at a company without a Nota Fiscal containing all information related to the attributes of the goods.

You can use the system to receive and confirm legal documents. You can effectively record legal document information and the system automatically verifies the physical amount against the amount described on the legal document. The verification is regarded as a receiver matching performed in the operational module. You can use fiscal receiving in conjunction with ERS to automate the creation of supplier invoices in the Financials module.

When the fiscal receiving and the physical receiving have both been successfully confirmed, you can use the ERS (Evaluated Receipt Settlement) processor to automatically create confirmed and matched supplier invoices.

See see QAD Sales User Guide and QAD Financials User Guide for more information.

The shipping and receiving processes must support Brazilian legal and business practices regarding taxes.

The shipping and receiving processes contain additional tax parameters.

The additional parameters relate to trailer expense attributes, fiscal legal tax types, item fiscal class, sales discount accounting, tax expense accounting, tax rate attributes, tax base attributes, tax methods, and tax usage attributes.

For more information, see QAD Global Tax Management User Guide.

Código de Situação Tributária (CST) Code in Tax Rate and Fiscal Receiving

Brazilian fiscal receiving requires that a CST code be provided. This is a legal requirement, and the code must be provided in all Nota Fiscal for issuing and receiving.

Tax Rate Maintenance contains a field, Tax Status Code, which lets you select the legal document tax status code used to identify the tax policy for goods. You define the list of tax status codes in Generalized Codes Maintenance.

The tax status code you specify in Tax Rate Maintenance is retrieved as the default for that tax rate in fiscal receiving.

For more information, see QAD Global Tax Management User Guide.

It is a legal requirement in Brazil that sales accounts are posted including tax and that the tax is simultaneously posted as an expense with chart of account (COA) analysis that matches the sales posting.

For each sales account and tax payable grouping, Gross Income Acctg Create (25.3.25.1) lets you define the tax expense COA components that the system must use to create the additional gross income accounting posting. You can define groupings to include accounts, sub-accounts, cost centers, and projects.

When gross income accounting is enabled in Financials, Invoice Post and Print (7.13.4) creates an additional posting when the sales invoice uses specific sales and tax account combinations. The additional gross income accounting posting debits the tax expense account and credits the sales account with the tax amount.

For more information, see QAD Global Tax Management User Guide.

 

Operational Transaction Post now posts all GTM transactions in the Unposted GL Transactions table.

GTM has been applied to distribution order shipments, item transfers, unplanned issues, and all non-sales shipments.

The tax postings are summarized.

Non-purchased and purchase receiving are supported by a single legal document.

Shipper complementary fiscal data was added to support fiscal information in legal documents.

For more information, see QAD Sales User Guide.

Customer Retrobilling must also generate a Nota Fiscal containing all values to be corrected.

Retrobilling in the Brazil environment requires some additional steps to generate legal documents for retrobills.

Usually, pricing is negotiated for specific items when a customer schedule is opened. When price changes occur due to cost fluctuations in materials or processes, you can perform additional steps to generate legal documents.

For more information, see QAD Sales User Guide.

Payment terms can be divided into multiple payments; for example, three payments at 30, 60 and 90 days after the invoice.

In Brazil, each payment stage must be managed independently with regard to due date, interest, and discounts negotiations. In addition, the payment process for each stage can have specific requirements.

In Customer Invoice Create and Supplier Invoice Create, you can update some fields for staged payments such as the due date, discount date, and % discount.

In Customer Payment Selection Create and Supplier Payment Selection Create, you can select a single staged payment, if required.

You can use new fields in GL Account Create to define standard accounts for interest charges. You can use the same GL account for both AR and AP interest charges, or you can use a separate account for each. As part of EDI Advanced Banking for Accounts Receivable, the system posts interest received if the customers do not pay by the due date.

For more information, see QAD Financials User Guide.

A tax collection method is required for products that typically have few producers, but many customers (for example, alcoholic beverages).

A producer manufactures its product and sells it to a reseller, who in turn sells it to the final customer. Instead of both the producer and the reseller submitting ICMS payments to the tax authorities, the tax authorities transfer the right to collect taxes to the producer of the goods. The producer, called the substitute taxpayer (Substituto Tributario), is obligated to submit ICMS tax to the tax authorities, including the tax incurred when it sells to the reseller and the tax on the presumed resale surcharge that it collects from the reseller.

ICMS Substitution Tax is a non-included tax in GTM.

In QAD EE, a tax zone can only have one state tax ID specified. However, for Brazilian ICMS Substitution Tax, multiple IDs may be required in cases where the company is issuing goods or services to multiple states and each state has its own tax ID.

To set up substitution tax, define a Substitution address type in the business relation and link it to the state and the state tax ID.

A new GTM tax calculation method has been created for ICMS Substitution Tax.

For more information, see QAD Global Tax Management User Guide.

A function is required that generates shippers for non-inventory items. The function must also have the option to create a Nota Fiscal.

You can ship memo (non-inventory) items to a customer, supplier, or site without GL cost and inventory balance updates. However, taxes related to inventory movement must be recorded in the related GL accounts.

You can use Non-inventory Shipper Maintenance to create draft shippers for non-inventory items and then perform shipper confirm and, optionally, legal document creation. You can also use Non-Inventory Shipper Maintenance to modify unconfirmed shippers, but not inventory shippers.

For more information, see QAD Sales User Guide.

 

Shipper Control (3.15.24) contains an option called Create Shipper that lets you combine multiple lines into the same shipper and legal document.

When generating a shipper, if you leave the shipper number blank, the system automatically assigns a new shipper number.

For more information, see QAD Sales User Guide.

Unconfirm Shippers and Cancel Nota Fiscal for Non-Sales Transactions

Use Inventory Shipper Unconfirm (3.15.2) to unconfirm shippers and, optionally, cancel related legal documents for non-sales transactions. However, this function does reverse inventory transactions.

You can use Shipper Unconfirm (7.9.21) to unconfirm sales order shippers and related legal documents, but not non-sales shippers and legal documents.

For more information, see QAD Sales User Guide.

Processing Nota Fiscal in Sales Returns

A customer can return sales goods due to non conformities of the item, invalid item quantities, or any other difference between sales orders and the issued Nota Fiscal.

When the system recognizes a sales return, it lets you enter an external legal document number and effective issue date in addition to the legal document NRM sequence ID.

You can either leave the external legal document number blank or enter the received legal document and effective issue date from the customer and system disables the Sequence ID field.

For more information, see QAD Sales User Guide.

 

If you purchase goods domestically that have associated logistics charges, the supplier issues a legal document in base currency that includes the logistics charge lines. Alternatively, the supplier can issue a combined legal document that includes both material and logistics charge lines.

When you use Fiscal Receiving to fiscally receive the carrier’s legal document and confirm the receipt, the system creates a pending invoice based on the legal document.

You can then run the ERS Processor to process the pending invoice. The system creates a matched supplier invoice for the legal document logistics charges, and updates the relevant accounts and taxes.

If the legal document includes both material and logistics charge lines, the ERS Processor creates a matched supplier invoice for the combined material and logistics charges if the material supplier is named as the logistics supplier on the purchase order. Otherwise, the system creates separate material and logistics charge invoices.

For more information, see QAD Financials User Guide.

 

When importing goods, an import agent can handle the import process and incur certain logistics charges on behalf of the customer. The import agent charges the customer for managing the import and for acting as an intermediary between the customer and the foreign material supplier.

If the legal document contains logistics charge lines only, use ERS to create supplier invoices for the logistics charges and to update AP in the name of the import agent. ERS also creates the associated AP, matching, and tax postings.

If the purchase order is in a foreign currency, ERS creates a foreign currency supplier invoice, but the legal document is in base currency. The system uses the exchange rate from the legal document and not from the pending invoice.

If the legal document for the imported goods contains combined materials and logistics charge lines, the ERS Processor:

For more information, see QAD Financials User Guide.

 

If you use ERS to process legal documents, you can reverse the invoices that ERS creates.

If you reverse an invoice that ERS created from a legal document, you cannot directly replace the reversed invoice in Accounts Payable. For supplier invoices created by ERS where Fiscal Confirm Required is activated in Purchasing Control, the Create Replacement field is unavailable if you try to reverse the invoice in Supplier Invoice Reverse.

To reverse and replace an ERS invoice created from a legal document, reverse the invoice using Supplier Invoice Reverse, unconfirm the associated legal document, and then make the required corrections. Then, reconfirm the legal document and generate a replacement supplier invoice using ERS.

For legal documents that reference multiple supplier invoices, reverse all the supplier invoices before you can unconfirm the legal document.

For more information, see QAD Financials User Guide.

 

Use Purchase Order Returns (5.13.7) to process supplier returns for legal documents, including items for which logistics charges apply.

When purchase order line items with associated logistics charges are returned using Purchase Order Returns, the system does not reverse the accrued value of the logistics charges. Some logistics charges, like freight or insurance, could be payable to a third-party supplier regardless of whether the items are returned.

When you process a return for purchase order line items with associated logistics charges in Purchase Order Returns, the system:

When the purchase order return is processed, the system generates a separate legal document for the returned materials. The legal document for the material return is linked to the original legal document.

Run the ERS Processor by legal document to generate a supplier credit note for the returned materials. ERS does not create a credit note for the logistics charges associated with the returned materials.

For more information, see QAD Financials User Guide.

The system supports material purchases where logistics expenses apply. Logistics expenses include items—such as freight and insurance expenses—that were previously paid by the supplier.

When you purchase goods for which logistics expenses apply, the material supplier normally issues a combined legal document. No accounts payable update or periodic costing apportionment is required for the expenses.

In Fiscal Receiving, the system creates logistic expense lines. However, the system does not create a pending invoice for the logistics expenses, does not update transaction history, and does not update inventory for periodic costing.

When you confirm a logistic expense fiscal receipt, the system updates the relevant tax records. The logistic expense lines are then included in the Brazilian fiscal interface audit reports.

In Brazil, there is a requirement to have the ability to cancel a legal document associated with a PO return.

For example, cancellation is required when:

In such cases, first use Non-Sales Shipper Unconfirm (3.15.2) to unconfirm the PO shipper and cancel the legal document. Then, depending on the type of correction, use additional programs to reprocess the return:

For more information, see QAD Purchasing User Guide.

The Address field in Receipts-Unplanned (3.9) is validated using the Address table when the inventory movement code references an external process.

In Brazil, in more complex tax situations, the tax usage alone is not enough to define all CFOP codes used. For example, in a transfer from one site to another, CFOP codes depend on the item type that is being sent. Therefore, although the tax type and tax rate are the same, you may require a different tax usage for each CFOP code.

You can now calculate CFOP codes in Fiscal Receiving and Shipper Maintenance/Confirm using a custom program.

This custom program simplifies GTM setup and prevents you from creating multiple tax rates in Tax Rate Maintenance (29.4.1) with the same combination of tax types and tax rates.

In Brazil, it is a requirement to allow the same legal document numbering for a different site in the same domain. It is possible to have the same numbers because when the CNPJ code (GST tax ID) is different from one site to another, the unique CNPJ code ensures that each number can be uniquely identified.

 

The number range (NRM) target dataset for legal documents allows you to create the same set of segments with the same format. In Number Range Maintenance (36.2.21.1), the target dataset for legal documents is lgd_nbr.xxxx, where xxxx can be any character.

You can create two different NRMs with the same segment formats and issue the same numbering. In Legal Document NRM (36.2.21.9), two or more different sites can be linked with independent NRMs and the same segment formats.

In all shipper confirmations, the legal document is not validated when the same legal document number exists in the same domain. In Shipper Unconfirm, the legal document related to the unconfirmed shipper is reverted and the status changed to Canceled.

For more information, see QAD Sales User Guide.

In sales and in DRP flow, it is common to issue separate legal documents for the material and the container because different taxes may apply to them. In addition, containers are sometimes unplanned issues and the customer is not charged for them. Therefore, you also need to be able to specify whether a container legal document has an impact on AR.

To treat the container separately from the material and to create separate legal documents and GTM usage, you must perform the necessary setup. In Container/Line Charge Control (7.22.24), select the Separate Legal Doc for Container field. This value is set at global level and also by default at customer level in Ship-To Control Maintenance. You can change the value for each customer.

To treat the container as an unplanned issue, in Container/Line Charge Control, select the Recalculate Container Taxes field. This field indicates that you are using a different GTM base for the container and tax is determined according to the container lines on shipper. It is not accounted for in AR or displayed on the customer invoice. You can also set this field at customer level in Ship-To Control Maintenance.

For more information, see QAD Sales User Guide.

In Brazil, companies need to create supplier invoices from legal documents. When this process takes place automatically, accounting entries are created immediately and the user saves the time spent performing the step manually.

When a user creates a legal document, ERS runs automatically to process the lines on the legal document when it is confirmed and create a supplier invoice. This process has been implemented for the following programs:

In ERS Control (28.10.24), four fields enable you to auto run ERS in these four programs.

When you select these fields and run the relevant program, an information message is displayed to inform you that ERS will run automatically on confirmation of a legal document. The messages in each program are the same.

When you click Yes, the legal document is sent to the ERS processor. When complete, a message is displayed informing you that the supplier invoice has been created. You can view the invoice in Supplier Invoice View.

This approach ensures that Periodic Costing values inventory correctly.

In Brazil, transportation of merchandise requires a document to prove legality and possession of the inventory being moved.

Legal documents include shipping information, such as item and tax. Legal documents are generated along with the shipper.

The legal document number needs to be shown in some AR financial reports and stored in related GL transaction posting lines.

In Simultaneous Operation Maintenance (7.10.13), two legal documents are created for a single shipper separately. One is the sales legal document and the other is the shipping legal document. Both legal documents are posted to the invoice and posting lines.

Legal document numbers are available in the following programs. For these programs, the legal document number is added in the Shipper field. New layouts of these programs are also available. These new layouts contain the LD suffix in the name; for example, Customer Open Item Report - LD. When there are multiple legal documents for the same invoice, they can be listed as a comma-separated list. The Excel layout also has an LD variant.

Legal document numbers are also available in the following GL transaction reports and views:

When purchasing memo items, you can use operational allocation codes at purchase order line level to split the posting lines across several GL accounts, sub-accounts, cost centers, and projects. To use operational allocation, specify the allocation code in the Pur Acct field in Purchase Order Maintenance.

You can subsequently use ERS to split the posting lines for the invoice and receiver matching across GL accounts, sub-accounts, cost centers, and projects in the allocation code.

Receiver Matching also supports the use of operational allocation codes. If you set up an operational allocation code for several GL accounts and then specify the allocation code on a purchase order, Receiver Matching splits the posting lines across the GL accounts, sub-accounts, cost centers, and projects in the allocation code. For memo purchases only, you can change the GL account on the Receiver Matching line to an allocation code or you can change the allocation code on the matching line to a different one.

If you create and receive a purchase order for a memo item that uses an operational allocation code in one entity and then create the supplier invoice and receiver matching in another entity, the system creates cross-company postings. The GL accounts in the operational allocation code must be Standard accounts, and the system then uses the AP cross-company control account specified in the domain for the cross-company postings. During Operational Transaction Post, the posting lines, split according to the operational allocation code, are transferred to the other entity, where the original expense was recorded.

Use DO Pre-Shipper/Shipper Unconfirm (12.19.21) to unconfirm a shipper. This program places items on the shipper back into inventory and creates the corresponding tax transactions.

The fields in this program are the same as in DO Pre-Shipper/Shipper Confirm.

Each line of a call combines different service and operation types with products, depending on the end user request. In Brazil, different combinations of service, operation, and product require specific tax usages.

Service Category Tax Detail Maintenance (11.21.21.15) enables you to define a combination of service category, charge code, return status code, and the related tax usage code for use in legal document creation. The expense and labor service codes then default from this program when you run Call Invoice Recording.

Because separate legal documents are required for services, a shipper is not created in Call Activity Recording. The shipper is created when you run Call Invoice Recording.

Use SSM/LD Call Shipper Confirm (11.1.1.29) to create legal document numbers for legal document lines created using Call Invoice Recording.

Similarly, contracts combine different service and operations types. When you create a contract in Contract Maintenance and run Billing Release to Invoice, a shipper is created. To assign numbers to the legal documents for the contract, you run SSM/LD Contract Shipper Confirm (11.5.13.26).

For more information, see QAD SSM User Guide.

The Canadian Payment Association Format Standard 006 specifies:

QAD EE Financials Reports are fully customizable to optimally support your company processes and best practices. The Reports Designer tool lets you modify the report layout, add and remove data fields, add calculation logic, or change sort order and grouping. You can also customize system-supplied report templates that contain formatting information such as fonts, logo, and paper orientation and length.

The default AP check print report is Supplier Check Print (28.9.9.3). Use Report Options to select the dedicated Canadian check print report.

For more information on these reports, see QAD Financials User Guide.

The transportation of merchandise requires a document called the Guia de Despacho to prove legality and possession of the inventory being moved. Typically, the content of this legal document includes details such as document number, ship-from address, ship-to address, item number and description, and quantity. In general terms the legal requirement impacts any kind of transaction where the goods are moved out from a company or received into a company.

The Guia de Despacho should be printed with a specific numbering sequence and this document must legally support the goods and taxes involved in that issuing shipment process.

The Legal Document option within Shipping Group lets you specify the document format required for each country.

It is possible to create a Document Format for this new document.

Its generation is optional and can occur for all inventory Issuing Transactions. The Shipper generation is expanded to other transactions.

For more information, see QAD Sales User Guide.

The layout and format of the Guia de Despacho varies per company. This means that each company must be able to create its own design. Therefore a legal document template is required for each country, which can then be used to generate new documents.

The Legal Document Form Code field in Document Format Maintenance (2.18.13) is a two-digit numeric form code that uniquely identifies a country-specific legal document type. The form code identifies the appropriate printing procedure. The current form code for Chile is 21.

For more information, see QAD Sales User Guide.

If a Legal Document is canceled, you must reverse inventory transactions and return the original sales orders to their previous status. For this reason, you must be able to postpone the deletion of a fully invoiced sales order, and unconfirm the shipper.

The Days to Retain SO After Invoicing field in Legal Document Control is used to specify the number of days after Invoice Post a fully-shipped sales order can be deleted in Completed Sales Order Delete. Completed sales order within this time frame cannot be deleted.

The Legal Document Cancel Time Fence field in Legal Document Control is used to specify the number of days after the creation date within which a legal document can be canceled during shipper unconfirm. Legal documents cannot be canceled outside this time frame.

For more information, see QAD Sales User Guide.

In Mexico, companies must report taxes (IVA) at the moment that the money is debited (customer payments) or credited (payments to suppliers) on the bank account. If using QAD Financials payment instruments, taxes must accrue at the point when the payment has a status of Paid.

The Suspended and Delayed Tax options let you defer the payment of taxes on AR and AP payments. Suspended and delayed taxes are booked initially to dedicated suspended or delayed accounts, and are then booked to normal sales tax accounts when the payment is completed.

You define Suspended or Delayed Tax capability for an entity using the fields in the Entity master table. You can also use the Suspend Until Paid Status field to suspend the payment of taxes until the payment status is set to Paid, or the Delay Until Paid Status field to delay the payment of taxes until the payment status is set to Paid.

For a description of suspended and delayed tax setup and implementation, see QAD Financials User Guide.

In Mexico, companies have to declare taxes to the government as soon as the money is debited from or credited to the company's bank account. The Mexican legal requirement is that the posting to the final tax account must use the exchange rate published by the tax authorities at the date of the payment, or the accounting rate at the date of payment, if the tax rate is not defined.

When you define the Suspended or Delayed Tax capability for an entity using the fields in the Entity master, the Suspended Date Type and Delayed Date Type fields let you indicate the date the system must use to retrieve the exchange rate for suspended or delayed tax transactions. The options are:

In the United States, the Internal Revenue Service (IRS) requires organizations to submit an annual 1099 form on certain kinds of payments to suppliers. The IRS uses the 1099 form declarations to track payments between businesses, or between an organization and independent contractors. The declaration must differentiate several categories of payments, such as rent, royalties, medical, and health care.

The system supplies functions for generating both printed 1099 reports and electronic files:

You select the Tax Report option in the Supplier master record to include the supplier in 1099 reports. For a description of 1099 Reporting setup and implementation, see QAD Global Tax Management User Guide.

If suppliers do not provide a tax ID number (TIN) to their customers, the customer is required to withhold 28% of the payment from the supplier as tax.

The Global Tax Management withholding tax features can be used to collect withholding tax for non-compliant US suppliers.