Invoiceware Content

Buyer-Side E-Invoicing Networks Insufficient to Manage Latin American Requirements

Spend Matters welcomes this guest article by Steve Sprague, vice president of product strategy at Invoiceware International.

Multinationals operating in both Europe and Latin America may be tempted to use their European e-invoicing networks to manage Latin American compliance. However, these systems do not go far enough to meet the complexities of Latin American business-to-government regulations. In fact, many of these mandates have made traditional e-invoicing networks unnecessary in Latin America, as governments – such as Brazil’s SEFAZ – are offering invoice access directly from the government servers.

Latin American E-Invoicing Standardization Opens the Door for Supply Chain Finance

Spend Matters welcomes this guest article by Steve Sprague, vice president of product strategy at Invoiceware International. Multinational companies operating in Latin America know that compliance with strict electronic invoicing legislation is a part of doing business in the region. However, despite the IT and processing challenges that these mandates present, companies operating here can capitalize on the resulting standardization. Through required e-invoicing, companies are able to realize business efficiencies and facilitate supply chain financing, ultimately improving liquidity in the entire region. Today, 95% of business transactions in the largest Latin America economies are electronic, as mandated by government legislation that imposes standardized reporting formats and approval processes. Specifically, suppliers must use a standard XML invoice that is transmitted and approved via government servers. This invoice often acts as a bill of lading that must accompany all shipments, and buyers must validate and approve the invoice in real time – as soon as shipments arrive. These requirements have led to a high degree of automation throughout the region.

Compliance Mandates in Mexico Give SEC Increased Visibility into Accounting Records, Opening the Door for FCPA Penalties

Spend Matters welcomes this guest article by Steve Sprague, vice president of product strategy at Invoiceware International. As we discussed previously, the introduction of Mexico’s e-contabilidad (e-accounting) mandates has resulted in increased visibility into the financial records of companies operating here. This increased visibility has many advantages, including encouraging cash flow efficiencies, but it also results in increased enforcement of tax laws. Many companies approach e-contabilidad as a local issue, but the fines and penalties that can result from inaccurate or delayed reporting can be felt company-wide. This visibility also opens up US-based enterprises to greater scrutiny under the Foreign Corrupt Practices Act (FCPA), one of the most frequently overlooked risks of e-accounting mandates.

Mexico’s E-Accounting Legislation Drives Accounts Payable Efficiencies

Spend Matters welcomes this guest article by Steve Sprague, vice president of product strategy at Invoiceware International. As Mexico’s e-contabilidad (e-accounting) mandates go into effect this quarter, companies operating in this country need to take a hard look at their compliance platforms and financial processes. In addition to the previous e-invoicing mandate required by Mexico’s tax authority, the SAT, the government has added accounting reports to its list of required business processes. Companies now have to provide their chart of accounts, monthly trial balances and journal entries to support tax deductions.

Traditional Supplier Portal E-Invoicing Models Made Obsolete by Brazilian Nota Fiscal Mandates

Spend Maters welcomes this guest article by Steve Sprague, vice president of product strategy at Invoiceware International. As we explored previously, the Brazilian government recently introduced a new web recovery service for required NFe goods and CTe transportation documentation, allowing companies to pull their XML invoicing records back 5 years. The implication is that the government intends to increase its auditing efforts and will severely fine companies that do not adhere to the 5-year invoice archiving mandate. While these fines can be tremendous for unprepared companies, this recovery service also has benefits, such as helping companies to streamline processes and eliminate obsolete e-invoicing solutions.

Is Your Company Prepared For an Audit in Brazil?

Spend Matters welcomes this guest article by Steve Sprague, vice president of product strategy at Invoiceware International. The Latin American compliance landscape is already challenging for procurement and accounts payable specialists, and in Brazil, it’s now getting even tougher. With the move to Nota Fiscal v3.1 (NFe) on April 1, Brazil is making fundamental changes to its web services and reporting requirements, the largest change to the country’s compliance environment since 2010.

Latin America E-Invoicing 2014 Update: Summary of Requirements

I have written over the past few weeks on the requirements in Brazil, Mexico, Chile, and Argentina. I chose these as they have specific mandates that will have an effect on the Account Payable processes. In today’s post, I’m going to provide a summary of what to look for as you approach these countries -- and Latin America in general -- from the AP and Shared Services perspective.

Latin America E-Invoicing 2014 Update: Argentina eFactura

Since October 2013, there have been a number of changes in the laws that will affect the Account Payables organization. Initially, the changes were associated to the “sin detail” invoices (i.e. the invoices without detail or line items). However, on December 16, 2013, the AFIP published General Resolution 3571/13, listing the new industry sectors that must transition to electronic invoicing. The industries were segmented into six different groups according to the type of activity they engage in. Gradually, all of them must migrate to the electronic billing system regulated by AFIP.

Latin America E-Invoicing 2014 Update: Chile DTE eFactura

In the recent months, the Chilean tax author, the SII, has been working on the mandates. Initially, Chile was a prescribed country – meaning that if you wanted to do electronic invoicing, you had to do it the government way. With the new laws and further announcements coming in February 2014, companies will become mandated as early as November 2014. The rollout through smaller enterprises will be through 2017, with different revenue tiers dictating who and when. But if you are a large multinational enterprise, Chile electronic invoicing is a reality in 2014.

Invoiceware: Do You Need a Specialized Latin America E-Invoicing Solution? [Plus+]

This post is designed to provide a quick background on Invoiceware, including a product overview and country-specific focus and capabilities (for the latest on Invoiceware’s approach to Mexican compliance, read the interview series above). We’ll begin with a quick backdrop on Latin American invoice compliance nuances. Those with any experience in intra-country Latin American manufacturing or retailing are likely aware of the compulsory nature of the move to digital invoicing and tax/government communication and signing. The penalties for non-compliance are stiff, ranging from fines to criminal charges with the prospect of jail time. The reason for these tough requirements is due to specific aims of the country-specific legislation (i.e., to reduce tax evasion, underpayment, and fraud).