1 Képpel FELS Brasil S.A. Management Presentation: J.D.Edwards System Presenter: Richard L Berry and Paulo de Tarso Rocha Coelho Jr.

2 Agenda System Overview10 mins Project Costing Overview20 mins Purchasing Process20 mins Stores Processes20 mins Payment Process10 mins Conclusion10 mins

3 The J.D.Edwards software is now ‘live’ Apart from JDE, the KFELS 6 digit Cost Code scheme, and a new standardised Inventory Item Number have also been implemented There are many changes of procedure that affect daily operations: –Costing –Purchasing –Integration –Fiscal –Payment J.D.Edwards Overview

4 J.D.Edwards System Overview Costing Procurement Inventory Management Payments Billing and Receipts General Ledger Fiscal Fixed Assets

5 J.D.Edwards: Integration General Ledger Project Ledger Purchasing Inventory Accounts Payable Address Book Accounts Receivable Fixed Assets Fiscal ApplicationConsumable Issue

6 Job Cost: Integration Purchasing –Commitments (as soon as PO or subcontract is entered) –Receiving (immediately updates cost) –Cost is charged to the Job, quantity updates inventory Inventory –Inventory Issues and Returns of consumable materials Fiscal –Taxes charged to the Job Fixed Assets –Assets may be bought for a project Accounts Receivable Accounts Payable General Ledger

7 Job Cost Cost Types –Labour –Material –Subcontract –Other Cost Code 6 – digit has been implemented Labour Costing interfaced from RM Labore, and hours from SAMO.

8 Job Status Inquiry: Cost Code Level 9

9 Job Status Inquiry: Cost Code Level 6

10 Job Status Inquiry: Cost Code Level 4

11 Job Status Inquiry: Cost Type Level 7

12 Job Status Inquiry: Cost Type Level 4

13 Purchasing Types: –OI Consumable Inventory –OD Direct Application –OS Subcontract –OF Fixed Assets Process Changes: –All PO are in JDE –Costing must be entered into the PO –Tax information must be correct in the PO Benefits –Integration –Consolidated view of purchases –Delivery statistics J.D.Edwards System Overview: Procurement Management

14 Procurement Process: Consumable Stores Requisition Purchase Order Receive Fiscal Accounts Payable Requisition and Tabulation outside JDE Enter, print and approve Stores receive, update stock, create Nota Fiscal information Verify tax information Update due date, print espelho Treasury Pay

15 Procurement Process: Application Stock Requisition Purchase Order Receive Fiscal Accounts Payable Requisition and Tabulation outside JDE Enter, print and approve Stores receive, update project costs, update project warehouse, create Nota Fiscal information Verify tax information Update due date, print espelho Treasury Pay

16 Procurement Process: Services Requisition Purchase Order Receive Accounts Payable Calculate ISS/INSS Requisition and Tabulation outside JDE Enter, print and approve Accounts Payable Department ‘receive’, update project costs, create Nota Fiscal information Update Accounts Payable Fiscal Department calculate ISS and INSS withholding taxes Accounts Payable Print Espelho Treasury Pay

17 Procurement Process: Fixed Assets Requisition Purchase Order Receive Fiscal Accounts Payable Requisition and Tabulation outside JDE Enter, print and approve Stores receive, update accounts, create Nota Fiscal information Verify tax information Update due date, print espelho Treasury Pay Fixed Assets Update Fixed Assets Ledger

18 Procurement Management Procurement History by: –Type of Purchase: Application or Consumable –Project –Supplier –Item –Cost Code –Requisition Number –Dates Expediting –Promised delivery date revision –Expediting report –Outstanding Order ListOutstanding Order List –Late DeliveryLate Delivery

19 Purchase Order History Inquiry

20 Purchase Order Expediting

21 Consumable Stores Niterói and Angra Application Stores Niterói and Angra FSTP material bought for KFB Locations have not yet been defined New structured item number J.D.Edwards System Overview: Inventory Management

22 Disponibilidade

23 Disponibilidade

24 J.D.Edwards System Overview: Inventory Management Processes Receiving: –Application Material –Consumable Material –Overhead Material –Ativo Fixo Transferencia Remessa Devolução Emissão & Retorno Physical Count

25 Inventory Process: Transferencia Transfer Entry Confirm Nota Fiscal Finance The ‘Sending’ Yard enters a Transfer: this creates simultaneously a ‘Sales Order’ and a ‘Purchase Order’ Stores confirm the issue of the items: this reduces stock levels Fiscal Department Print the Nota Fiscal Finance update the General Ledger Receive The ‘Receiving’ Yard receives the material

26 Inventory Process: Remessa Stores Request a Nota Fiscal Print Nota Fiscal Issue Material Finance Stores Department request a Nota Fiscal to be printed Fiscal Department print a Nota Fiscal Stores Department issue the material Finance update the General Ledger

27 Inventory Process: Devolução Stores Request a Nota Fiscal Print Nota Fiscal Issue Material Credit Note Stores Department request a Nota Fiscal to be printed Fiscal Department print a Nota Fiscal Stores Department issue the material Accounts Payable enter Credit Note Finance Finance update the General Ledger

28 J.D.Edwards System Overview: Payments Majority of payments now done electronically through Banco Itaú

29 Receive Nota Fiscal Calculate ISS and INSS Print Espelho Approve Create Payments Transmit Payment File Receive Notification of Successful Payment Payment Process Stores Request a Nota Fiscal Print Nota Fiscal Issue Material Credit Note Treasury

30 Contabilidade Geral Contas a Pagar Contas a Receber Fiscal Ativo Fixo J.D.Edwards System Overview: Financial

31 Contabilidade Geral Both companies in one environment: –Képpel FELS Brasil (company 00001) –BrasFELS (company 00002) Yards and Offices: –F7001 Matriz –F7002 Niterói –F7003 Macaé –F7004 Angra –F7005 Képpel FELS Brasil (Angra)

32 Format of accounts in JDE Contabilidade Geral Exemplo: Cost CentreContaDetalhe TelefoneF Project MaterialC6005N Ativo Fixo

33 Fiscal Notas Fiscais Entrada captured when materials or services are ‘received’ Notas Fiscais Saida for: –Transferencia –Remessa –Devolução –Sales ICMS and IPI calculated ISS and INSS calculated PIS/COFINS/CSLL and IR calculated at the point of payment

34 Fiscal Livros Fiscais printed from JDE Sintegra generated from JDE Payment instruments DARF, DARJ printed by Banco Itaú

35 Ativo Fixo Combined asset register of all assets Normal daily operations within JDE: –Additions –Transfers –Disposal –Depreciation

36 Thank you