Creating Items with Brazil Localization in NetSuite

To create items for Brazil in NetSuite with localization support, follow these steps to ensure compliance with local tax regulations.

TL;DR Opening

Creating items for Brazil Localization in NetSuite allows businesses to classify transactions correctly, apply relevant tax rules, and manage accounting entries. This is crucial for ensuring compliance with Brazilian tax laws and effective business operations.

Supported Item Types

Brazil Localization supports the following item types when creating items:

• Assembly item
• Inventory item
• Group
• Kit/package
• Lot numbered assembly item
• Lot numbered inventory item
• Non-inventory item
• Other charge
• Serialized assembly item
• Serialized inventory item
• Service

Steps to Create an Item for Brazil

1. Navigate to New Item Creation: Go to Lists > Accounting > Items > New.

2. Select Item Type: Click the item type you want to create based on the list above.

3. Enter Item Name/Number: In the Item Name/Number field, input the name of the item. This name will be used across various transaction lists.

4. Optional Display Name/Code: Use the Display Name/Code field to enter an alternate name for the item to be used in electronic invoices. If left blank, the Item Name/Number will appear instead.

5. Fill Relevant Information: Provide any other necessary details about the item.

6. Classify Tax Rules: In the SuiteTax Latam Engine Item Code field under Classification, select the appropriate code for tax classification. This field will show available MCN codes and service codes if the SuiteTax Latam Engine is installed.

7. Select SPED EFD Type: If generating EFD files, select the SPED EFD Type for the item, as defined by the Sistema Público de Escrituração Digital (SPED).

8. For Product Items:

   • Origin Code: Select the Origin code that identifies where the item comes from. Note that origin codes for sales cannot be modified directly on transactions after the item is added.
   • If applicable, choose the IPI Legal Framing Code for items subject to IPI taxes.
   • Choose the CEST Code for items associated with ICMS tax substitution.

9. For Service Items:

   • Select a classification for services provided in the Classification of the Provided Service field.
   • Optionally define the Nature of the Income to indicate the type of income generated by the service.

10. Set Accounting Entries:

    • Under the Accounting subtab, input details for accounts related to sales cancellations and returns:
      • In Canceled Sales Account, choose the account for canceled sales transactions.
      • In Returned Goods Account, set the account for posting amounts from goods returned.

11. Save the Item: Finally, click Save to create the item record.

Key Considerations

• Ensure all fields are filled accurately to comply with Brazilian tax regulations.
• Consult with a local tax expert if unsure about specific regulatory requirements.

Related Topics

• Getting Started with Brazil Localization
• Adding Inventory Ownership Types for Brazil
• Associating SPED EFD Types with Items

By following these steps, you can effectively manage items relevant to Brazil's distinct regulatory environment in NetSuite.