Mexico government has made Mandatory the use of e-invoices for large taxpayers. Earlier invoice was issued in paper but now the process has been designed around Digital Tax Receipt on the Internet (CFDI) electronic invoice which is made up of an XML file and a PDF File.
This is digitally certified by the Mexican Tax Administration Service (SAT). Before We go deeper first we need to know what is E-Invocie , PAC & Peidmento
Electronic Invoice is a generic name provided to all Digital Invoice Documents (CFD or CFDI). Some examples of CFDs and CFDIs are bills, invoices for professional services, lease receipts, bills of lading, credit notes and debit notes.
An Authorized E-invoicing Certification Provider (PAC) is a certification provider that has been authorized by Mexican Tax Administration Service SAT to stamp the Invoice Digitally. PACs provide mandatory validation and Stamped services through a web service. It is mandatory in Mexico to use a PAC for performing the stamping operations for CFDIs only.
Mexico government’s rule is that, when a company in Mexico imports goods from outside Mexico, the company needs to keep track of the Import Invoice Number (Pedimento) , date, and place of importation and linking to the inventory while doing goods receipt. Having the Pedimento details make that the goods has been legally Imported in Mexico.
On our Mexico implementation we Integrated SAP Business one with one of the authorized e-invoicing services provider and we seamlessly generate the E-Invoice from SAP Business one and transmit it to e-invoicing services provider to get digitally certified & generate UUID.
In this process we capture the Pedimento information in SAP Business one during inbound process. And the same information is shared to e-invoicing services provider for the corresponding items when we issue the A/R Invoice to the customers. We generate electronic invoice, made up of an XML file once the A/R Invoice is posted in SAP Business one and transmit it to e-invoicing services provider to get digitally certified through web service.
An e-invoicing services provider approved by the Mexican Government verifies that the electronic file complies with all established regulations and Standard and adds its UUID (universally unique identifier) number to the invoice.
The e-invoicing service provider send back the UUID (universally unique identifier) to SAP Business one through web service. And we capture all the information in SAP Business One and generate a PDF version of the stamped A/R Invoice and shared it to the customer.
The e-invoicing services provider reports the invoice to the Mexican Government within 72 hours of its creation.