localization

Why is Brazil localization so important in SAP implementation? 

Localization in SAP refers to adapting the system to meet the specific legal, tax and regulatory requirements of a given country or region. 

This includes configuring system functionalities and parameters to ensure it complies with local accounting and tax practices. 

Specialist consultancies play a key role in ensuring that SAP is configured accurately and in compliance with local regulations. 

By deeply understanding the complexities and specific requirements of each reality, consultancies deliver a successful implementation, free from unnecessary complexities, in much less time. 

The challenge of localizing Brazil 

It is nothing new that Brazil’s fiscal and tax complexity is enormous. In general, Brazilian taxpayers spend 10 times more time than OECD countries to comply with their tax obligations. 

The Brazil localization in SAP is extremely important for companies operating in the country or wanting to enter this market. It refers to adapting the system to meet specific Brazilian requirements, reducing exposure to risks of non-compliance, fines, penalties and tax disputes. 

Brazil has several indirect taxes, such as ICMS, IPI, PIS and COFINS. Localization in SAP includes the configuration and calculation of these taxes in accordance with state and federal legislation. 

There are also municipal taxes, such as the ISS, which require an even deeper degree of localization and constant attention to regulatory changes. 

We cannot forget that Brazil has 5,568 municipalities, plus two districts (Fernando de Noronha and Distrito Federal), for a total of 5,570 locations. All of this generates an absolutely accelerated pace of regulatory changes, with dozens of fiscal and tax news being launched every day. 

The language barrier is also another challenge in implementing Brazil localization for multinational companies, since, in general, the level of English knowledge on the part of users is basic to intermediate. 

This scenario can lead to communication failures and important errors in SAP implementation, generating a highly damaging cost chain for companies. 

Origen Tech: SAP customizations do not need to be complex 

To accommodate with maximum effectiveness the accelerated pace of tax regulatory changes specific to Brazil, customizations are necessary in the SAP system. 

There are those who believe that this process is, by nature, extremely challenging. However, when conducted by a truly specialized team, customizations become free from unnecessary complexities, being executed with great agility and security. 

At Origen Tech, we work with cutting-edge technology combined with a senior team of consultants, specialized in simplifying the Brazil localization process. 

In our methodology, we apply some strategies that are strongly consolidated and tested in more than 12 years of experience with hundreds of clients served. Among them we can highlight: 

Real Needs Assessment: 

Before starting any customization, we assess whether it is really necessary. Sometimes it is possible to meet requirements using standard SAP functionality without the need for complex customizations. 

Use of Best Practices: 

With well-defined guidelines adapted to different sectors and business processes, we were able to minimize customization complexities, activating the system in record time. 

Impact Assessment: 

Before carrying out a customization, we carefully evaluate the impact it will have on the system as a whole. This includes considering possible side effects and the need for future updates. 

Constant Monitoring and Maintenance: 

After customizations are implemented, we continually monitor the system to ensure everything is working correctly. 

Long-Term Assessment: 

Our processes are designed to be sustainable and scalable in the long term, always following the growth of our customers. 

Want to know more details about the exclusive methodology 

of work Origen Tech? 

Fill out the form and we will contact you as soon as possible 

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