Mexico eContabilidad (eAccounting) Reports – 2 Issues Not to Overlook with SAP ERP

Scott Lewin
September 17, 2014

This blog was last updated on June 27, 2021

As in other Latin America countries, the transactional signing of standardized XML is always implemented with a corresponding reporting element. Brazil has Nota Fiscal and SPED. Chile has DTE and Libros. And now Mexico has CFDI and electronic books.

The Basics

Taxpayers must maintain accounting records through electronic systems that can create XML format files, which include the following:

1. Chart of accounts used during the period.  Due in January and if changes are made within 3 days of alterations.

2. Trial balance, with initial balances, movement for the period and final balances for each of the accounts of the taxpayer, including assets, liabilities, equity and results of operations (revenue, costs and expenses). Due January 2015 for (July to December) and monthly afterwards no later than the 25th of the following month or April 20th for annual forms.

3. Information related to journal entries in the accounting records. Will be due based upon audit requests. In other words – you have to implement them as they will be used to audit you and compare your transactions to the government databases.

 

Two Issues that you cannot avoid:

  •          The Chart of Accounts while stating only level 1 and level 2 data, could cause companies a number of issues. For example, what if you don’t break your sales down by the SAT classifications – this will cause you to have to right split procedures or adjust how your accounting system reflects accounts. This is just one example (Depreciation, Rebates, etc…)

 

  •          The UUID (which is the unique code identifying a legal, registered invoice) will have to accompany the journal entries. The UUID code will be used to justify your tax deductions.  99% of companies don’t integrate these signing attributes back into their ERP system, let alone ensure that valid UUIDs are posted to the accounting documents, as they didn’t implement end to end solutions. Instead, they implemented 3rd party signing solutions that are loosely integrated and have no capability to solve this problem as it is an SAP issue, not a PAC issue.

 

Invoicing transactions produce data that is heavily analyzed in Latin America;  Reports provide the ability to find discrepancies and trigger real-time audits.  There have been a lot of lessons in other countries that have moved to this e-accounting process – Brazilian SPED is by far the most complex. But remember, what Brazil started with in 2007 is similar to the Mexico SAT is requesting in 2014. It is only a matter of time before the legislation evolves. So be ready.

Sign up for Email Updates

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

Author

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

alcohol deliveries
North America ShipCompliant
December 20, 2024
What if No One is Home to Sign for an Alcohol Delivery?

This blog was last updated on December 20, 2024 When no one is home to sign for an alcohol delivery, it becomes more than just a minor hiccup for direct-to-consumer (DtC) alcohol shippers. It’s a domino effect that transforms a perfectly curated product into a customer’s disappointment before it’s ever opened. This becomes an even […]

taxation of motor insurance policies france
North America VAT & Fiscal Reporting
December 18, 2024
Taxation of Motor Insurance Policies: France

This blog was last updated on December 18, 2024 France is one of the most challenging countries in Europe when it comes to the premium tax treatment of motor insurance policies. This is mainly due to the variety of taxes and charges that can apply and the differing treatment of different vehicle types. This blog […]

california bottle bill compliance
North America ShipCompliant
December 13, 2024
California Bottle Bill: Compliance Updates for Wine and Spirits

This blog was last updated on December 16, 2024 California’s bottle bill got a major upgrade earlier this year, and it’s changed the rules for wineries, distilleries and beverage distributors in a big way. For the first time, wine and spirits manufacturers will need to register with CalRecycle, report sales and pay California Redemption Value […]

unclaimed property compliance for wineries
North America ShipCompliant
December 12, 2024
Unclaimed Property Compliance: What Wineries and Wine Clubs Need to Know

This blog was last updated on December 12, 2024 Although hard to believe, unclaimed property obligations impact ALL industries, including wineries and other wine clubs. While most companies typically only associate unclaimed property with outstanding checks, including accounts payable and payroll, there are other exposures for wineries and wine clubs to consider. Understanding these risks […]

retail delivery fees for alcohol shipping
North America ShipCompliant
December 5, 2024
Navigating Retail Delivery Fees: A Guide for DtC Alcohol Sellers

This blog was last updated on December 5, 2024 Direct-to-consumer (DtC) alcohol shippers are no strangers to navigating a complex regulatory landscape. However, recently, a new challenge has emerged—the rise of retail delivery fees. From excise taxes to shipping restrictions, the industry has long dealt with a maze of state-specific rules that require careful attention […]