Tuesday, March 15, 2011

Mexico e-Invoicing and Good Business

Many of us involved in the e-Invoicing industry understand the importance of being compliant with the local tax authorities (Nota Fiscal Electronica, Servicio de Administración Tributaria, Administración Federal de Ingresos Públicos, etc.) and their mandates around e-invoices, but what about supporting e-invoicing simply because it is good business? 

Let's take a look at a simple financial supply chain:

First let's look at it from the perspective of the manufacturer:
  • Send Purchase Order
  • Receive products
  • Receive an invoice
  • Clarify or dispute an invoice
  • Issue payment (and thus impact working capital)
  • Archive invoice and payment information
Now let's now look at the supplier side:
  • Receive product order
  • Deliver product
  • Submit invoice
  • Clarify or resolve invoice dispute
  • Receive payment
  • Clear receivables
When you review the above processes and see the words, "receive" or "send" they can both represent slow, costly and efficient postal services and manual handling of paper documents.  The more you can eliminate these inefficiencies with cost effective EDI, electronic invoicing and electronic payments, the better.

My point is there are more reasons to eliminate paper processes, than just being compliant with governmental e-invoicing mandates.

If you are an SAP user, you may want to discuss your e-invoicing needs with Crossgate, a global e-invoicing service provider co-owned by SAP.

Kevin R Benedict Independent e-Invoicing/EDI Consultant, Analyst and Blogger
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*Full Disclosure: I am an independent consultant that has worked with and for many of the companies mentioned.

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