S4/HANA in Brazil

The Hurdles of S4/HANA in Brazil

SAP S/4HANA is aimed at easing work processes and reduce business costs: improved data models, an intuitive user interface as well as innovative functions motivate companies to implement the software update. In order to work with a global template the S4/HANA rollout tide will soon reach Latin America.


3 Implementation Options for S4/HANA

Green Field Approach: migration from a non-SAP-System or another ERP system to a SAP-system

  • Requires initial data migration process to transfer the old master data into the new SAP system

System Conversion: existing SAP Business Suite will be converted into new SAP-S/4-HANA-Release

  • Data migration implemented through Software-Update-Manager (SUM) using the Data-Migration-Option (DMO)

Transformation of the System Landscape: consolidation of different SAP systems into one central system or split of a central SAP system into individual ones


6 Steps to S4/HANA

The Localization is carried out in six steps:

1.       Installation of the country version Brazil

2.       Localization process for SD/MM

3.       Masterdata collection (Business Partners and Material)

4.       Calculation of taxes via Nota SAP 1706309 – CI BR: CBT – Condition Based Tax Calculation Brazil

5.       Nota Fiscal

  • Configuration of the NF-e
  • SAP NFE (GRC) Outbound
  • SAP NFE (GRC) Inbound
  • SAP NFS-e (Nota Fiscal Serviço)

6.       Reports: Tax Declaration Framework (TDF)


What S4/HANA can do in Brazil

The planned Brazil-specific localization includes the following functions:

  • creation of invoices for logistics
  • creation of additional invoicing documents (DANFE)
  • payments and money transfers between banks
  • outgoing payments
  • accounting for specific taxes (ICMS, IPI)
  • reference tables for international fiscal reports (IFRS)
  • e-Invoicing– Nota fiscal eletrônica
  • integration of tax calculation with certified SAP partners


What S4/HANA in Brazil is missing

Although S4/HANA includes quarterly updates it cannot comprehensively cover the complexity of the Brazilian tax system. Instead of a common VAT there are multiple similar taxes with different levels on the municipal, state and federal level. Moreover, all of these entities require different mandatory electronic accounting and tax reports which are not fully covered by S/4HANA.

Currently, SAP S/4HANA can cover the same Brazilian Localizations as SAP ECC except for:

  • the accounting and tax reports SPEDs (partially) und CIAP (fully)
  • the ICMS, PIS and COFINS taxes

SPED and CIAP can be created using SAP`s TDF Add-on which requires an additional license.

Furthermore, SAP advises users to opt for TAXBRA instead of TAXBRJ  to calculate taxes as well as the SAP Tax Declaration Framework for Fiscal and Accounting Legal Reporting.


Third Party Software

is needed despite the usage of TDF in order to complete the required information on S4/HANA Enterprise Management OP. These information are essential for creating the following mandatory reports:

  • IN86, DIRF, municipal reports
  • Tax incentives
  • Data for Import and Export
  • Tax calculations
  • Additional, non-ERP (ECC) systems


Please contact us to learn about the SAP solution that is the best fit for your company`s needs – we are happy to assist you!