Deposit and Return Scheme (DRS)

In Portugal, the DRS - Deposit and Refund Scheme is an environmental scheme designed to encourage the collection and recycling of single-use beverage containers (such as plastic bottles and metal cans), by charging a deposit at the time of purchase and providing the respective refund to the consumer when the packaging is returned to an authorised collection point.

This system, managed by SDR Portugal, represents an important step towards achieving the objectives of the circular economy and national and European environmental targets.

Deposit Item

A deposit item is an item that represents the deposit amount to be included in the documents. This document has certain specific features that must be correctly applied and reported via SAF-T, such as:

• It must be configured with an exempt VAT rate with reason M99 – Not subject to tax or not taxed defined;
• Have a item type configured with SAF-T classification as I - Taxes, duties and parafiscal charges;
• Cannot be used to move stock;
• Cannot be subject to header discounts;
• Must be configured as a warehouse item;
• It must have direct and indirect unit conversion relationships with the units of the items to which it will be linked.

To create a stock item, follow these steps:

1. Go to Marketing & Sales | Inventory | Items;
2. Create an item;
3. On the General tab, mark the item as a Warehouse Item;
4. Ensure that the Move Stock option is disabled;
5. Enable the optionNot Subj. To Header Discount;
6. Specify an exempt VAT rate configured with exemption reason M99 - Not subject or not taxed;
7. Specify an Item Type configured with SAF-T classification as I - Taxes, duties and parafiscal charges;
8. Enter the item price (warehouse value);
9. Make any additional settings (optional)
10. Click Save.

Although the stock item is not subject to header discounts, it is possible to specify discounts at line level. For example, you can apply a 100% discount and offer the deposit amount to the customer.

Item under the SDR

Items covered by the SDR must be correctly configured for this purpose, as they have a distinct EAN from the item used prior to the SDR. Therefore, new articles should be added to this scheme.

The coexistence of SDR and non-SDR items is ensured in terms of stock management and related transactions.

To create and configure an item subject to SDR, follow these steps:

1. Go to Marketing & Sales | Inventory | Items;
2. Create an item;
3. On the Taxation tab, specify the Deposit Item in the Deposit and Refund Systemsection;
4. Configure the remaining item settings;
5. Click on Save.

You must ensure that there are direct and indirect unit conversion relationshipsfor the units of the related stock item.

Creating Sales Documents

The creation of sales documents containing items subject to SDR involves a distinct process for entering lines and quantities to simplify the use of these items.

When you insert a line in the editor of an article subject to SDR, a line is automatically inserted with the repository article associated with it. The conversion of the respective quantities between items is also carried out automatically . When you change the quantity or unit in the item subject to SDR, the quantity is automatically updated in the stock item.

If you add a new line for another item subject to SDR, configured with the same stock item, the line for the stock item is updated , with the corresponding impact on quantities. If a line for an item subject to SDR is entered, and another stock item is configured, the corresponding linefor the stock item will be inserted. In other words, the line for the stock item is only posted if the item does not exist in the document.

In warehouse item lines the following changes are not permitted to certain attributes, such as:

• VAT rate
• Quantity
• Unit

The stock item cannot be enteredon its own in the sales editor.

This behaviour also applies to the POS editor.

Sales to Entities Outside the National Tax Territory

When items subject to SDR are sold to entities whose tax jurisdiction is not national, the transaction is not subject to the rules of the Deposit and Refund System (SDR).

Therefore, when the entity associated with the sales document is configured with a tax jurisdiction other than National, the automatic mechanism for inserting the stock item will not add any lines in the document editor.

This behaviour ensures that:

• sales to entities outside national territory are not unduly subject to the SDR;
• there is no need to manually intervene in the document lines to remove stock items from international transactions.

In this way, the system ensures compliance with SDR rules only for transactions carried out within the national tax jurisdiction, whilst simplifying the sales registration process for foreign markets.

Creation of Purchase Documents

There is no mechanism within the scope of creating purchase documents; in other words, as the purchase document is created based on the document issued by the supplier , these rules do not apply.

This ensures that the document is created in accordance with the supplier’s document, regardless of how it was created or structured.

Transformation, Conversion, Line Copying and Reversal

The processes of Transformation, Conversion, Line Copying and Document Reversal involvinglines of items subject to SDR and warehouse items do not have any mechanism.

This allows documents to be created with a different structure, with no requirement to include the deposit slip.

In this way, it is possible, for example, to create a credit note only for the line item(s) in the stock item.

Implementation Recommendation

The requirements of the SDR (Deposit and Refund System) can be implemented in various ways within the ERP. However, Cegid recommends the following approach for the main operational processes: production, sales, purchasing and deposit refunds.

This proposal aims to ensure traceability, effective stock management and operational simplicity.