One of the fastest growing and challenging markets often overlooked for E-Invoicing is not Europe but actually Latin America.

For some time now, a number of Latin American countries have mandated electronic invoicing compliance regulations that are dictated by taxation or government authorities for each specific country. Mexico, Argentina, and Chile’s E-Factura follows Brazil’s Nota Fiscal Eletrônica, where local government entities have required companies to replace standard paper invoices with electronic invoices.

 

The primary drivers for implementing e-invoicing compliance in these Latin American countries are as follows:

  • Promoting a more transparent relationship between tax authorities and taxpayers to ensure that tax authorities can maximize their respective tax revenue
  • Eliminating tax evasion and preventing unfair competition
  • Speeding up and improving the tax inspection processes
  • Rationalizing, standardizing and consolidating the accessory obligations required of taxpayers
  • Reducing the cost of taxpayers’ accessory obligations
  • Protecting the environment by reducing the use of paper
 

Each of these Latin American countries has unique processes that are defined by the respective local government authorities. Non-compliance can have severe consequences such as penalties, fines, interruption/halt of supply chain activities, and in rare cases, even jail time for company representatives.

Origen E-Factura

Origen Technologies is a best in class e-Invoicing integrator for companies that run SAP for Latin American operations. With different mandates across the region and the growing demands of e-billing and e-invoicing, we enable compliance while maintaining the SAP inherent country version to maximize SAP cross-functional ROI and strategy.

Origen’s expertise in e-Invoicing helps companies maintain and control complex regulatory requirements, completes the end-to-end solution requirements needed for e-Invoicing compliance and also helps companies avoid cumbersome and costly partner integrations.

 

The Origen E-Factura suite simplifies the process of adopting e-Invoicing for the Latin America region while reducing costs and efforts to maintain compliance. You can send and receive legally compliant, digitally signed invoices electronically and in the formats your business and partners require. In addition to connecting you with partners, the solution architecture facilitates compliance and optimizes your internal resources for maximum ROI.

 

Origen will keep you at the forefront of mandates that need to be implemented and updated on the most recent announcements issued by local government authorities. Origen enables your company to focus on core that help grow your business, while receiving first-class support for high-volume processing of e-invoicing processing and efficiency throughout your financial operations.

Immediate benefits of using Origen E-Factura Managed Services:
  • Satisfy and comply with specific country tax requirements
  • Maintain compliance and eliminate risks with our legal requirements monitoring and maintenance capabilities
  • Consolidate existing relationships with partners by automating invoice validation and processing
  • Reduce operational costs
  • Reduce costs with our expertise in simplified deployments and maintenance
  • Multi-lingual support facilitates and expedites change management
  • ERP Console monitoring for seamless adoption
Key Features

SAP Endorsed Solutions Providers

SAP PI Integration Capabilities with Government Entities

End-to-End Delivery of Project

Support multi-lingual capabilities

Ability to handle all SAP localization as required

Easy adoption of compliance changes

Reduce Overall IT Costs

Offer actualization to SAP latest compliance standardization

eDocument Solution for LATAM Countries

The eDocument Framework is a solution for managing electronic documents that have legal compliance aspects. The eDocument country-specific solutions are built on top of this framework that is provided by SAP.

SAP harmonizes the increasing number of country specific approaches that are considered “country specific” into a uniform framework lowering overall complexity and day to day management.

Country specific solutions

(<2014)

  • Argentina (PI)
  • Brazil (NF-e)
  • Mexico (PI)
New adopters

Available for:

  • Chile (2015)
  • Peru (2014)
 

Under evaluation:

  • Ecuador (2016)
  • Colombia (2016)
Overview

The SAP eDocument Framework has been developed by SAP Globalization Services and helps to transform documents created in various SAP applications into predefined exchange formats and transfer it electronically to external systems, such as legal entities or tax authorities.

The SAP eDocument Framework facilitates realization of different local requirements by:

Leveraging their similarities

Ensuring high standards

Providing consistent user experience and lower operational cost

There are two variants of eDocument for LATAM countries: the Basic Solution and the Full Solution.

The eDocument Basic solution allows you to create eDocuments based on source documents previously created in other SAP applications, such as FI and SD. The system makes the eDocument available for downloading and further processing by your own solutions. This eDocument solution variant requires the implementation of a customer-specific solution to handle the mapping of the data to the legally required XML format and the submitting of the eDocument to the tax authorities or business partner's system.

The eDocument Full solution allows you to create eDocuments based on source documents previously created in other SAP applications, such as FI and SD. The system uses the Application Interface Framework (AIF) to map the transactional data to the required XML format. For this solution, you use the SAP HANA Cloud Integration platform (HCI) to establish communication with the external system by using web services to send data from SAP ERP/SAP AIF and to receive data from the external systems. HCI also formats the data to comply with the web service parameters, signs the document digitally, and establishes a secure connection using SSL.

The following figure depicts the process of eDocument Full solution:

SAP AIF (Application Interface Framework) is the tool used to handle the mapping of the data to the legally required XML format.

SAP AIF provides structured guidance to help you quickly and cost-effectively create and deploy compliant interfaces, empower business users to monitor interfaces, troubleshoot issues without IT, and customize authorizations to protect sensitive data.

SAP AIF main product capabilities:
  • Develop and deploy application interfaces in an SAP-centric or heterogeneous system environment;
  • Guided framework to efficiently implement interfaces, re-use logic, and improve data accuracy;
  • Monitor interfaces across technologies such as IDOC, Web services, qRFC, tRFC, files, batch input, and others;
  • Interface versioning;
  • Automated testing tool;
  • Tool-supported interface documentation.
 

The eDocument Full solution uses the SAP HANA Cloud Integration platform to communicate with the tax authorities via web services. In order for this to occur, the following settings must be enabled in your SAP environment:

  • Connection of SAP ERP and SAP AIF with HCI
  • Set up of HCI for connecting to the external servers
eDocument Framework, AIF and HCI Benefits
  • Full Compliance: coverage of all legally required processes and e-documents (not only e-invoices)
  • One Support: legal changes on ERP and eDocument service from SAP Globalization Services;
  • Low TCO: Communication requirements to legal authorities delivered by SAP on the Cloud;
  • Single monitor for multiple countries and business processes;
  • Achieve cost reductions of up to 40% for interface implementation and 75% for monitoring
  • Provide business users with integrated, intuitive interface monitoring tools – no IT required

Specific Solution Details per Country

Mexico CFDI

On May of 2013, SAT Mexico announced changes to the legislation in regards to e-Invoicing. Here are the implications of the new legislation.

  • CFD expired end of 2013
  • Companies with revenues greater than 250,000 Mexican Pesos or roughly $20,000 USD adopt CFDI (Factura Electrónica) before the end of 2013.
  • CFDI requires the adoption of new extensions affecting PDF layout, response content to integrate with your ERP for real-time activities as well as other technical features such as 2-D barcode to facilitate government auditing.

Origen is a thought leader in e-Invoicing integration for SAP customers doing business in Mexico because of the following:

  • We provide both outbound and inbound solution architecture. Inbound is often overlooked as a priority in the implementation process but it is critical to maximize the companies tax deductions come year end. Often, the inbound process becomes a manual task and is prone to human error. Automating this process will not only improve your tax deductions efficiency but it will also consolidate your relationship with existing and future suppliers.
  • We have an experienced team familiar with the intricacies of the SAT legislation and how these changes will apply to your SAP ERP environment such as your master data or FI/SD modules will expedite the implementation project and guarantee the success of the integration, all within the allotted time frame.
  • Our team provides multi-lingual skills to make the project inclusive to all participants. The multi-lingual skills are also inherent within the support team. Support provides rapid response with contingency plans so that your merchandise is not withheld and supply chain is not interrupted.
  • The Origen solution architecture will allow your company to remain compliant when new changes are issued while necessary ERP functionality and localization is maintained for the long-haul so your company does not diverge from the SAP compliance roadmap.
  • Addenda deployment is critical to the success of many of our customers. Situations occur where the majority of the business a company performs is done with a partner who only accepts Addenda schema. Therefore, we provide experienced teams with the correct implementation approach to leverage Addenda set-up when needed.