Los Angeles, California (PRWEB) February 22, 2016
Pacific Precision Metals has operated in Mexico for years, but when it recently updated its ERP, it was confronted with the new reality of doing business in Mexico.
PPM isn’t alone. Since 2014, companies doing more than 250,000 Pesos (about $20,000 USD) in business annually in Mexico must monthly present accounting-related information to the country’s taxing authority for approval.
That mandate changed the rules for doing business in Mexico—and changed the requirements for what ERP and FMS systems have to provide.
Standard solutions just don’t work to meet requirements in Mexico anymore. But the best ERPs are meeting those needs through partnerships. And for companies, that streamlined, automated process means saving time and money.
Guide Technologies has the expertise and partnerships to help you through that process. Below, we share some of that knowledge to help your company get a better handle on the situation and the solutions.
The country’s taxing authority, the Servicio de Administracion Tributaria (SAT), now requires companies that meet the 250,000 Pesos threshold to submit three different XMLs: the chart of accounts, trial balance and accounting transactions.
Those XML documents have to be uploaded in the CFDI format to the SAT portal using the company RFC and the FIEL (electronic sign) password. (CFDI=Comprobante Fiscal Digial por internet.) A digital signature known as a Sello has to be applied to government-assigned certificates.
All commercial invoices by those companies must be submitted to SAT. Invoices now can only be created by accredited service providers authorized by the government. The organizations that can provide the authorized government signatures that the invoice requires are PACs (Proveedor Autorizado de Certificacion), and companies must either work with a PAC or use an e-invoicing provider that partners with a PAC.
Other requirements include:
- Receiving and storing the “Timbre Fiscal,” the government seal, in the back-end accounting system for each invoice
- Making the signed XML available to customers
- Storing the invoices for a minimum of five years
- If the invoice has to be changed, a company must first cancel the original invoice with the government and then generate a new one. Otherwise, the company will still be on the hook for the tax implications associated with the older invoice
What it means to your business
Some data required is likely not present in a typical ERP implementation; in those cases, complementary tables or fields will be needed. And there’s a mess of other headaches to be considered and avoided.
Fortunately, there are ERP vendors that quickly became experts at this. For example, Infor’s SyteLine ERP can automate the necessary accounting processes for meeting the requirements.
Important tips for your business
It’s important that, if you’re doing business in Mexico, you ensure your solution supports the extraction of information from different applications, facilitates the matching of CFDI Identify with accounting transactions, and generates XML files. Also, your vendor needs to understand the process, provide an end-to-end solution, and speak both Spanish and English.
Pacific Precision Metals relied on Guide Technology’s expertise to help them navigate SAT’s requirements. If you need help ensuring your ERP is up to the task, give us a call.
About Guide Technologies
Guide Technologies is a leading provider of ERP implementation solutions and strategic consulting services for discrete manufacturers who operate in highly complex environments. As a top Infor Gold Channel Partner specializing in the full suite of Infor ERP solutions, Guide’s seasoned experts enable clients to mitigate risk, realize a rapid return on their technology investment and increase the profitability of their long term operations through our proven business strategies