As discussed in previous blogs, there are many differences between eInvoicing in Latin America and the rest of the world. This includes Europe specifically. In this article, I specifically point out the key differences from the Accounts Payable perspective. With the new legislation in 2012 mandating inbound einvoice validation in both Mexico and Brazil, this topic is top of mind in most of the companies I speak with on a daily basis.
Top 5 Differences in Brazil and Mexico:
- The dreaded scanning and OCR technologies are removed, as the government mandatesthe use of an electronic invoice.
- Multiple invoice formats go away because the governments in Mexico and Brazil have standardizedthe invoice XML and data format.
- Supplier rolloutsand conversion to electronic invoice are simplified as the government mandates that the XML invoice, which is what matters fiscally, be made available to the buyers
- Manyaccuracy issuesare eliminated as what is on the invoice will match what is on the truck. Part of the process mandates that a truck cannot leave the warehouse without a special printed version of the invoice accompanying the truck.
- Processing timeconstraints shrink because the XML invoice can be made available to the Buyer even before the goods arrive at the unloading dock. Your invoice can run through the majority of matching even prior to the truck arriving. This accelerated matching and time savings make the Latin America market an opportune target for supply chain financing and reverse factoring.
Many organizations are transitioning to Shared Service centers and consolidating how they process inbound invoices and pay suppliers. Latin America has many additional benefits available and also some potential roadblocks. Ensure you have the right solution to handle the inbound mandates in Mexico and Brazil or you will find yourself out of compliance and facing fines and additional penalties for fraud.