Did you just implement a Single Point of Failure – Mexico CFDI PAC Strategies (Part 1 of 5)

Scott Lewin
July 30, 2013

In my previous article, we discussed the common issues that are starting to make their way to the operational and finance teams. Many companies are setting themselves up for customer service issues, delayed payments, and most importantly delayed or lost revenue recognition as they implement their Mexico CFDI electronic invoicing strategy. In this document, we are discussing the issue of shipping and logistics.

What you need to know:

If you are switching from a legacy, batch format (CFD or CBB) to the real-time CFDI electronic legislation like a half million other companies, you need to understand that your ability to ship is directly linked to your ability to get your invoice approved by the government based on the letter of the law. In short, if you can’t get your invoice approved you shouldn’t ship according to the statements in Article 29 of the Mexico SAT Diaries. The issue is further clarified in the definition of Carte Porte (Transportation documents required for shipping).

Did you just unknowingly sign up for a single point of failure?

One of the most overlooked areas of CFDI evaluation is the effect on shipping. Ask yourself one question: if we can’t ship for a day, a few days – what will be the negative outcomes. There definitely won’t be positive outcomes from your operations being shut down due to having no backup plan.

Many corporations are not aware of this legislation and requirement as it is much different from the previous batch requirements. Also, many companies are just looking to sign up with a single vendor. The issue is centered on the fact that there is no “contingency” process in the model. For example in Brazil, an organization has two different options to get the government approval if the main government systems at the SEFAZ are down, slow or unable to be reached because of network failure. They have On Network contingency designed for fall back web service connections. This “Provisional Danfe” or forms process allows you to still ship as long as there is power to the printer. Your solution for Nota Fiscal can then reconcile the issues automatically once the SEFAZ is back up and running.

Organizations need to understand the backup plan if the system is slow or bogged down by sudden increases in volume. In your evaluations, ask these two simple question:

How does your service ensure that I can always ship?

Do you have a multi-PAC strategy that allows me to switch automatically to get the Timbre if one data center is slow or not working properly due to volume issues?

There are solutions in the market that offer built-in contingency to get the Timbre and offer multi-PAC, multi-switching platforms that ensure that if one signature provider is down, that you can access a network of providers. The goal should be to eliminate the single point of failure and any associated shipping issues.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Scott Lewin

Gain timely insight and important up to the minute information about the current legislative changes in Latin America, including Brazil Nota Fiscal, Mexico CFDI, Argentina AFIP and Chile DTE. Learn how these changes affect your operations, your finances and also your Information Technology teams.
Share This Post

Sales & Use Tax United States
June 17, 2019
South Dakota v. Wayfair One Year Later – Retrospective and Look Ahead Webinar

Since the groundbreaking Supreme Court decision in South Dakota v. Wayfair last June, tax compliance requirements of sellers have undergone a seismic shift. In recent months, we have also witnessed a series of after-shocks directed at setting the foundation for U.S. sales tax compliance in the modern age. In a live webinar and Q&A, “South […]

United States
June 14, 2019
Sovos Again Named a Top Workplace Based on Employee Satisfaction

Earlier this week, the Star Tribune (Minneapolis, MN) released its annual list of Top Workplaces. The newspaper compiles this list based on employee satisfaction scores for companies across Minnesota. Sovos has once again been named to this list as a national standard setter of leading workplaces because of the actions we take to put employees […]

E-Invoicing Compliance EMEA
June 13, 2019
French VAT Fraud Prevention Package to Include a New Attempt to Mandate B2B E-invoicing

The French Minister of Public Accounts and Action, which has authority over all tax matters, has taken advantage of the process that is required to transpose the EU E-Commerce Directive to launch a number of initiatives to curb VAT fraud, including a renewed attempt to create a system of mandatory e-invoicing. Going from B2G to […]

June 13, 2019
Knowing When and How to Reclaim IPT

An insurer may need to reclaim insurance premium tax (IPT) from a tax authority for many reasons. These include a policy cancellation or mid-term adjustment, an administrative error or issuing a no claims bonus. In each case, it’s important to be aware of the issues involved ahead of any reclaim to ensure taxes are recovered […]

Sales & Use Tax United States
June 7, 2019
Marketplace Sales Tax Collection Rules and Current State of Affairs

Marketplace sales tax laws are being used by states as an additional means to collect more sales tax revenue from remote sellers on marketplaces like Amazon, eBay, Etsy, and WalMart. These online marketplaces and the rules being introduced to compel marketplace tax compliance have introduced new sales tax collection and remittance questions and complexity. According […]