This blog was last updated on June 27, 2021
The March deadline to transition to version 3.1 of Brazil’s Nota Fiscal process is quickly approaching. As the largest change to NFe since the 2010 introduction of 2.0, the new mandates pose a significant challenge to companies operating in Brazil. There is no room for error in the transition – support for 2.0 will be completely shut off in March, and the consequences of non-compliance equate to operational shut downs.
For many companies, this new mandate equals another huge expense, requiring substantial changes to their on-premise ERP and significant time and talent resources. Corporations often only update their ERP systems once or twice a year, leaving them out of date on the latest service packs and vulnerable to missing updates only released in the newest versions. Additionally, updating systems to comply with new regulations can take months requiring all hands on deck from IT departments and pulling them away from other projects.
But there is a better way. Companies like The Coca-Cola Company, Brown-Forman and Siemens have improved their businesses processes while reducing ongoing support and maintenance costs with a hybrid cloud Latin American electronic invoicing solution.
In this six-part blog series, we will explore the top five benefits of switching from on-premise solutions to an SAP ERP Hybrid Cloud based solution.
- Eliminates failure points and the need for constant monitors
On-premise NFe solutions require multiple components that could be failure points, bringing a halt to business operations.
- Provides real-time day-to-day support
On-premise support challenges lead to operational shut downs for days to weeks each year as IT teams search for the root of the problem and identify a solution.
- Configures to your unique SAP ERP and eliminates multiple upgrades
As many companies move to a single or regional instance of SAP ERP, on-premise solutions require upgrades with every single new regulation in Latin America – which can be multiple times per year.
- Streamlines the compliance process and frees up finance and technical staff
Change management involves many people, groups and system developers just to maintain the compliance system – valuable resources that could be focused on business innovation.
- Provides multi-country support
Brazil, Mexico, Argentina, Chile, Uruguay, Peru and Ecuador all have separate compliance regulations, with more Latin American countries introducing mandates in 2015, taxing on-premise solutions and internal staff to constantly monitor and respond to regulations.
Companies that are turning away from on-premise solutions and replacing them with native SAP ERP extensions and managed services are:
- Reducing their SAP ERP support costs in Latin America by upwards of 70-80%
- Increasing the productivity of their line of business users by 25-40%
- Transitioning constant and costly projects into a fixed predictable cost
As we explore each of the benefits in depth in the coming weeks, it’s time to examine your e-invoicing solution throughout Latin America to explore increased efficiencies and cost reductions.
