Living La Vida Loca and the Brazilian Localization Project

Brazil is one of the fasting growing economies in the 21st Century and has the glitz, sex, and sizzle of a Parisian runway. As an emerging market and the 6th largest global economy, it is a prime target for foreign investors. With a successful hosting of the 2014 World Cup and the 2016 Olympics just around the corner, this is a ‘must-be’ place to do business. But you must keep your eyes wide open to the financial, statutory, and compliance aspects of doing business in Brazil. 
The Brazilian government is accused of being heavy-handed and burdensome when it comes to doing business in their country. This additional ‘taxing’ puts a hefty liability on the planning, investment, and implementing of ERP systems like SAP. If the systems are not properly configured or enhanced to support the Nota Fiscal requirements or SPED reporting submissions, initial implementation costs can quickly parallel a frustrating and elongated death spiral. 
The breadth of this impact is not one that can be isolated to the FICO modules because the requirements affect all components of the Supply Chain and kicking this ‘statutory can’ down the road is not an option. Significant fines, penalties, and even shutting down the business are levied until the requirements are implemented and conform to these standards. 
SAP has provided a safety net by adding configurable functionality and enhancements that address some of the critical requirements, but not all requirements are satisfied. This solution also comes as an additional licensed component and ASUG Face-to-face Meetings: Education & Networking in Your Local AreaAGENDA PAGE: 3 
 may shock the sponsors and planners of this project. These gaps could be addressed by a select few third party tools and solutions or additional application development work that adds to the time and effort of the project. 
The Brazilian Localization project is a specialized project and requires the appropriate understanding of the compliance and statutory requirements and the available standard solutions and gaps that exist. Additionally, Brazil has changed these requirements on an annual basis as they ask for more data in specified formats and tags on a periodic and annual basis resulting in an on-going cost of ownership and maintenance challenge. 
Understanding these arduous requirements and appropriately planning the project, deciding upon the most effective roadmap and implementing this solution, is critical to enjoying the growth and vibrant culture that Brazil offers. 

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