Kevin's e-Invoicing News - September 30, 2010

This newsletter is for those interested in global e-invoicing.  There are a lot of new requirements in places like Mexico and Brazil and deadlines coming up that makes this an important and relevant topic.  Contact me if you would like more information on any of these requirements, and I will do my best to answer them or introduce you to the right experts.

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At a time when every penny counts and companies are looking to operate with maximum efficiency, major national retailers are turning to e-Invoicing to help make bottom line gains. Companies such as 7-Eleven, Tim Hortons and Restaurant Depot have found that e-Invoicing not only cuts costs, it eliminates the inefficiencies inherent in the process of receiving paper invoices from suppliers -- resulting in the ability to do more with less.

Educational Webinar on Mexico e-Invoicing

I have received a lot of inquiries about the latest mandates in Mexico for e-Invoicing.  Crossgate, a company that SAP co-owns and the developers of SAP's SAP Information Interchange has just put up a link to an educational pre-recorded webinar.  You can watch it now at:

http://www.crossgate.com/index.php?id=103&webinarID=996&no_cache=1

The PDF that goes along with the webinar can also be downloaded.

http://www.crossgate.com/fileadmin/specdown/Crossgate_Overview_with_Mexico_eInvoicing_Webinar_c2.pdf

The following slide from the webinar is enough to motivate you to watch it:

Click image to enlarge

The idea that your backend systems needs to produce and send new data in real time to SAT, and receive and integrate a certificant in real time makes things interesting.

I will keep posting new developments as I hear about them.  Let me know if you have specific questions and I will do my best to get them answered.  You can contact me here.

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Kevin R Benedict SAP Mentor, SAP Top Contributor, SAP Blogger

Independent e-Invoicing and EDI Analyst and Consultant

www.linkedin.com/in/kevinbenedict

Follow me on Twitter @krbenedict

Join the SAP EDI and SAP Information Interchange group on Linkedin:

http://www.linkedin.com/groups?about=&gid=2884582&trk=anet_ug_grppro

*Full Disclosure: I am an independent consultant that has worked with and for many of the companies mentioned.

The Real Time Component of Mexico e-Invoicing and SAT Enhancements, Part 3

This is Part 3 in the series The Real Time Component of Mexico e-Invoicing and SAT Enhancements.  In Part 1 we identified four key enhancements of the Mexico e-Invoicing enhancements that could require work.  In Part 2 we identified follow-up questions that we all have and IT departments are going to need to know.  In Part 3 we will list out some potentially impacted IT systems.

Let's first list the four key enhancements that were recently announced by the Mexico SAT:

The Real Time Component of Mexico e-Invoicing and SAT Enhancements, Part 2

This article is Part 2 in this series on The Real Time Component of Mexico's e-Invoicing and SAT Enhancements.  In Part 1 we listed four new requirements that the Mexico SAT authorities identified recently as enhancements for e-Invoicing.  In this article we will explore some questions IT departments will ask themselves upon reading these requirements.

1. Companies will be required to integrate with the SAT for invoice approvals in real time.  How do I integrate?  What am I integrating with?  What is the data format?  What fields are required?  "Real-time?"  What data exchange standard do I use?  What are the header and footer requirements?  What kind of B2B/EDI system will I need?  Where am I going to pull the data that SAT requires?
2. Outgoing invoices must be prepared in a specific XML format and authorized in advance as part of the logistics process before shipments can be delivered. How do I convert my invoice format to SAT's XML?  How do I map my data to their formats?  How do I get authorization in advance of shipping?  What will this do to my shipping process?  Will this delay shipments?
3. Incoming invoices must be externally validated.  I must now validate my vendors' and suppliers' invoices?  How?  How do I trigger a validation process when an invoice comes in?  What does a validation look like?  Where do I store a validation?  How do I associate a validation with an invoice?



e-Invoicing Panelist

4. Incoming invoices must be archived and stored. Where must they be archived?  What format?  How long do I archive them?  How can I find them quickly when audited?  What are the format requirements for archiving?

As you can quickly see there are some issues that need to be learned, and in a hurry.  If you would like to be introduced to some Mexico e-Inovicing experts, let me know and I can put you in touch with them.

I also know that Crossgate, a company co-owned by SAP, is planning a webinar on Mexico e-Invoicing.  You may want to check out their website for dates and times.

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Kevin R Benedict SAP Mentor, SAP Top Contributor, SAP Blogger
Independent e-Invoicing and EDI Analyst and Consultant
www.linkedin.com/in/kevinbenedict
Follow me on Twitter @krbenedict
Join the SAP EDI and SAP Information Interchange group on Linkedin:
http://www.linkedin.com/groups?about=&gid=2884582&trk=anet_ug_grppro

*Full Disclosure: I am an independent consultant that has worked with and for many of the companies mentioned.

The Real Time Component of Mexico e-Invoicing and SAT Enhancements, Part 1

e-Invoicing Networks

The evolution of e-Invoicing in Mexico is very interesting to me. The most recent announcement (in Spanish) is a significant mandate that requires IT organizations to change architecture, business processes and methodologies. Let's take a look at a few sentences regarding the requirements.

1. Companies will be required to integrate with the SAT for invoice approvals in real time.
2. Outgoing invoices must be prepared in a specific XML format and authorized in advance as part of the logistics process before shipments can be delivered.
3. Incoming invoices must be externally validated.
4. Incoming invoices must be archived and stored.

It doesn't take much pondering to realize these requirements involve significant change and work.

I came across this warning last week from e-Invoicing expert Scott Lewin from Crossgate, the developers of SAP's SAP Information Interchange.  “With these new regulations, the government will be intimately involved in every step of the shipping process.  Traditional invoicing processes will not be able to support the real-time interactions between a company’s IT systems and the Mexico SAT."

I would encourage IT organizations to meet quickly and review the four requirements listed above.  Each of those four points can require a separate IT project that may involve B2B/EDI systems, integrations, database development and other work.  The alternative, of course, would be to discuss your requirements with an e-Invoicing managed services provider like Crossgate and learn if they can save you effort and time.

Real Time Component of Mexico e-Invoicing and SAT Enhancements, Part 2 

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Kevin R Benedict SAP Mentor, SAP Top Contributor, SAP Blogger
Independent e-Invoicing and EDI Analyst and Consultant
www.linkedin.com/in/kevinbenedict
Follow me on Twitter @krbenedict
Join the SAP EDI and SAP Information Interchange group on Linkedin:
http://www.linkedin.com/groups?about=&gid=2884582&trk=anet_ug_grppro

*Full Disclosure: I am an independent consultant that has worked with and for many of the companies mentioned.

Crossgate Offers e-Invoicing Solution to Comply with Mexico SAT Enhancement

Today I received this announcement from Crossgate about their support for the new Mexico e-Invoicing requirements.  For those not familiar with Crossgate, SAP co-owns them, and Crossgate developed SAP's SAP Information Interchange EDI and e-Invoicing managed services hub.

Atlanta, Georgia, September 13, 2010 Crossgate Inc., the global expert in business-to-business integration (B2B) and eInvoicing, releases an e-invoicing solution that provides real-time compliance with newly announced regulations by Mexico’s Servicio de Administración Tributaria (SAT).

In a press conference held on September 3, 2010, Mexico’s SAT announced new compliance laws for electronic invoicing which will take effect January 1, 2011; and the impact on business processes will be significant for companies that haven’t prepared in advance. Many companies are still adapting to the major changes that went into effect in 2009 requiring companies to either obtain invoice forms from the government or adopt an e-invoicing solution to replace traditional paper invoices.

When last year’s regulatory changes were announced, Crossgate immediately stepped up to help global businesses meet the new requirements with a fully compliant, on-demand e-invoicing solution that uses the Firma Eléctronica Avanzada (FIEL) and meets all of the technical specifications and standards specified by the SAT. Now, with new mandates on the horizon, Crossgate is again ready to help companies meet the challenge with an even more robust and streamlined e-invoicing solution that is fully integrated not only with the SAT, but also with SAP.

The new compliance mandates being instituted next year in Mexico will:

• Take effect January 1, 2011

• Eliminate folio numbers which are replaced by digitally signing and archiving an invoice with a valid timbre number

• Require regulatory compliance checks with government certified organizations for both senders and receivers of invoices

• Invoices in excess of 2,000 pesos must be approved digitally

Companies will be required to integrate with the SAT for invoice approvals in real time. Outgoing invoices must be prepared in a specific XML format and authorized in advance as part of the logistics process before shipments can be delivered. Similarly, incoming invoices must be externally validated, then archived and stored. “With these new regulations, the government will be intimately involved in every step of the shipping process,” said Scott Lewin, President, Crossgate, Inc. “Traditional invoicing processes will not be able to support the real-time interactions between a company’s IT systems and the SAT. Global companies need a managed B2B service that can remain in compliance with the changing mandates of the SAT while providing real-time operational support in Spanish. Crossgate also supports the electronic invoice requirements in Brazil, Argentina and Chile, enabling companies to access one solution and comply with all major LATAM eInvoicing regulations. Since Crossgate’s B2B 360 Services and e-Invoicing Network is already fully integrated with SAP, companies can leverage their existing IT investments to interact seamlessly with our network based service.”

The new regulations are still a few months away, but companies should start planning now. “With a large influx of implementation requests, we are encouraging organizations to lock in solutions and service personnel by the end of September,” adds Lewin. “We know the required processes and can help companies adapt to the changing regulatory landscape in Mexico but there is only limited time remaining for companies to adapt.”

Crossgate’s B2B 360 Services and e-Invoicing Network is a proven solution that makes it easy for companies around the world to comply with government regulations in 38 countries including Mexico, Brazil, Argentina, Chile and the European Union.

I have a lot of friends and contacts that are working on Mexico e-Invoicing projects, so if you have any questions about it contact me and I will do my best to get some answers for you.

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Kevin Benedict

SAP Mentor, SAP Top Contributor, SAP Blogger

Independent e-Invoicing and EDI Analyst and Consultant

www.linkedin.com/in/kevinbenedict

Follow me on Twitter @krbenedict

Join the SAP EDI and SAP Information Interchange group on Linkedin:

http://www.linkedin.com/groups?about=&gid=2884582&trk=anet_ug_grppro

*Full Disclosure: I am an independent consultant that has worked with and for many of the companies mentioned.

New e-Invoicing Requirements for Mexico - Read Here!

Crossgate, a company co-owned by SAP and developers of the SAP Information Interchange, announced this week support for the new e-Invoicing requirements coming out of Mexico.  These new mandates from Mexico SAT are set to take effect in January 2011.  I am told that some ERPs and backend systems will need signifcant work to support these requirements.

Here is an excerpt from one of my readers this week:

In a press conference held on September 3, 2010, Mexico’s SAT announced new compliance laws for electronic invoicing which will take effect January 1, 2011; and the impact on business processes will be significant for companies that haven’t prepared in advance. Many companies are still adapting to the major changes that went into effect in 2009 requiring companies to either obtain invoice forms from the government or adopt an e-invoicing solution to replace traditional paper invoices.



Based on the released information, the new compliance mandates being instituted next year in Mexico will:

• Take effect January 1, 2011 
• Eliminate folio numbers which are replaced by digitally signing and archiving an invoice with a valid timbre number 
• Require regulatory compliance checks with government certified organizations for both senders and receivers of invoices
• Invoices in excess of 2,000 pesos must be approved digitally

I will be gathering additional information over the next few weeks and posting it here.  I have many friends and contacts working on Mexico e-Invoicing projects, so please contact me with any questions and I will try to get them answered for you.
 
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Author: Kevin Benedict SAP Mentor, SAP Top Contributor, SAP Blogger, Independent Consultant
Join SAP EDI and SAP Information Interchange group on Linkedin:
http://www.linkedin.com/groups?about=&gid=2884582&trk=anet_ug_grppro
www.linkedin.com/in/kevinbenedict
***Full Disclosure: I am an independent consultant that has worked with and for many of the companies mentioned. ************************************************