How to Execute a Payment Run for a Brazilian Banking Account

  • by Rina Mukherjee
  • April 11, 2012
Learn the configurations for various formats for Brazilian electronic bank statements (EBS). Follow step-by-step instructions for preparing a payment run for banking receivables and payables specific to Brazilian banks.
Key Concept
Brazilian banking involves various formats, including FEBRABAN and Bradesco. FEBRABAN is the most popular format used for most of the banks in Brazil. Bradesco is another important format used for any document transactions used in Brazil. It is also called Banco Bradesco.

An electronic bank statement (EBS) varies from country to country, and in general, an electronic document sent by the bank provides details of the transactions done by the account holder. A bank can remit an EBS in the following formats: SWIFT, Multicash, or BAI. In an SAP system this statement is used to perform an automatic reconciliation. However, for Brazil, the format of an EBS is different. My examples are based on the requirements of an implementation project that I executed in the US. Later, the BRAIL EBS was used when this project was rolled out in Brazil.

Based on my experience I found that the Brazil configuration was complex owing to the different formats used. Some of the Brazilian formats that were used in this project were FEBRABAN and Bradesco. I used the entire EBS-based FEBRABAN format as a reference for the configuration shown in my examples.

During the rollout in Brazil, I noticed that banks that had used the FEBRABAN format do not always use the codes the same way. The payment and transaction codes were derived based on various business transaction events that the customer had with the bank. The format used in Brazil involves many new payment codes that are required to be tested during the implementation phase.

The test phase also had to undergo extensive testing on bank statements as payment codes are always a part of any files. This requirement for the implementation phase posed a real challenge in the rollout. We had to make sure we understood the requirement for business processes for Brazilian customers.

I adopted the following approach for the aforementioned issue: To have all bank transactions being posted according to their nature and per the business’ requirements, I proposed the solution to create two different posting rules for FEBRABAN: FEBRABAN and FEBRAI.

 

Rina Mukherjee

Rina Mukherjee is an FI consultant and has worked mostly as a freelancer. He has expertise working in the area of AP, AR, and integration of finance with material management. He also covered some areas of SAP ERP HCM. He has worked on country-specific projects and has been involved in testing, rolling out, and upgrading SAP modules.

 

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