- Feature
- Synchronize establishments in the direct delivery chain
- Availability
- Generally available in Supply Chain Management 10.0.49 (enhancement)
- Industry focus
- Distributors operating in Brazil
Brazil's tax system is famously demanding. Every movement of goods needs the right fiscal document, and the details on that document depend on which establishment of a company is involved. For distributors, direct delivery, where a supplier ships straight to the customer, is common. It is also a scenario where fiscal details have to line up across both the sales and purchase sides.
The industry challenge
In the Brazilian localization of Dynamics 365, the fiscal establishment identifies the specific registered unit of a company, which affects tax calculation and the fiscal documents issued. In a direct delivery, a sales order to the customer generates a linked purchase order to the supplier.
If the establishment on the purchase order does not match the one on the sales order, the fiscal treatment of the purchase and the sale can diverge. That can lead to incorrect tax calculations, fiscal documents that need correcting and extra work for tax teams already busy with Brazil's complex reporting obligations. Teams often catch and fix these mismatches manually, which is slow and error-prone.
What Microsoft delivered in Supply Chain Management 10.0.49
Supply Chain Management 10.0.49 synchronizes establishments between sales orders and purchase orders in the direct delivery chain. The behaviour is controlled by a parameter in procurement settings, so organizations can decide whether to use it.
When enabled, the establishment on the linked purchase order follows the sales order, keeping fiscal information aligned on both sides.
Where the value shows up
| Business area | Impact |
|---|---|
| Tax compliance | Consistent establishment data on both sides of a direct delivery |
| Fiscal documents | Fewer corrections caused by mismatched establishments |
| Order processing | Less manual checking of linked purchase orders |
| Tax team workload | Fewer exceptions to investigate during fiscal reporting |
| Customer service | Fewer delays caused by fiscal document problems |
A worked scenario
(An illustrative example.) An agricultural inputs distributor operates several establishments across Brazilian states. Many orders for fertilisers and crop protection products are shipped directly from manufacturers to farms.
Previously, the purchasing team sometimes created linked purchase orders with the default establishment rather than the one used on the sales order, and the fiscal team had to correct them. With synchronization enabled through the procurement parameter, the linked purchase order automatically carries the sales order's establishment. The fiscal documents for the purchase and sale align, and the tax team sees fewer exceptions at month end.
Adoption considerations
- Decide on the parameter. Confirm with tax and procurement teams that establishment synchronization fits your direct delivery processes.
- Involve tax advisers. Brazilian fiscal rules are complex; validate behaviour with local tax experts.
- Test multi-state scenarios. Check direct deliveries across different states and establishment combinations.
- Review existing orders. Consider how open direct delivery orders created before enabling the parameter should be handled.
- Update procedures. Remove manual checks that the synchronization now covers.
The bottom line
In Brazil, fiscal accuracy is not optional, and direct delivery adds a layer of complexity. Synchronizing establishments between linked sales and purchase orders removes a common source of mismatches and manual correction. It is a targeted enhancement that saves tax teams time. Review it with an experienced Dynamics 365 adviser familiar with the Brazilian localization.
Source: Microsoft: What's new or changed in Dynamics 365 Supply Chain Management 10.0.49