Learn more about Latin America e-invoicing and fiscal reporting requirements

1. Latin America E-Invoicing Compliance
Overview
INVOICEWARE INTERNATIONAL
Global Compliance - Simplified

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Latin America E-Invoicing & Reporting
It is All About Maximizing Tax Collection
Importance of VAT to Latin America Economies
 Colombia: 50% reduction in VAT and corporate tax evasion could bring
more than COP 15 trillion (USD 8 billion) in additional revenues.
 Mexico SAT – 34% increase in VAT collections (~5 Billion USD) in 1H 2014
due to CFDI and automated reporting
VAT Tax Evasion range from 25 to 50% of total potential

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Latin America E-Invoicing & Reporting
What is VAT?
Minus
Tax You Charge
Your Customers
Tax You Pay
Your Suppliers
Tax You Owe
To Government

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Tax Authorities Control an End To End Process
Government standardized XML linked to VAT Tax reporting = Real Time Audits
Supplier Registers XML
 Government XML Standard
 Only Legal document
 Registers VAT Tax Obligation
PDF Accompanies Truck
 Copy of Invoice OR
 Signed Shipping Document
depending on country
VAT Tax Linked to XML
 Buyer only able to take VAT tax
credits that are linked to
approval codes in supplier XML
 Errors or corrections are the
buyer’s issue to get fixed

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Rules are Constantly Changing & Accelerating
From 3 to 10 Countries in less than 2 Years, More Business Processes Affected
2013 2014 2015-2016
AR eInvoicing
AR eInvoicing
AR eInvoicing
AP eInvoicing
Freight Invoices
SPED ECD
AR eInvoicing
AP eInvoicing
Nomina
eContabilidad
AR eInvoicing
Proforma VAT
AR eInvoicing
AP eInvoicing
Freight Invoices
SPED ECD
SPED ECF
eSocial
AR eInvoicing
AP eInvoicing
Libros Reports

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The Problem
Constant Change meets Process Driven, Centralized SAP Maintenance
The Latin America Effect
 Day to Day Support
 Once local IT issues are now corporate IT issues
 Change Management
 Each country can change 2-3x per year
“One of the major problems with single instance is the inability to adapt the
applications to ever evolving business requirements and advances in
technologies in real time so that true business value is consistently delivered to
the local teams” - Gartner Group

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The Cost
Resources Focused on Maintaining, Not Innovating
 Ongoing Costs Overlooked
 Annual cost for each local providers (annual fees, maintenance, hardware)
 Cost for Day To Day Support
 Someone has to monitor and manage the middleware issues
 Someone has to monitor and manage the SAP system – an invoice isn’t done until it is posted or
acknowledged in the ERP system
 ABAP developer
 Changes based on the law a few times per year, per country
 Changes based on customer requests
 Could affect SAP master data, middleware, PDF output or distribution rules
 Controllers at end of month
 As data is different in multiple systems or silos, constantly checking numbers to avoid fines
 Annual Cost of Change Management
 Staffing - Look at a percentage of the functional analysts, middleware architect, project manager
and SME (subject matter experts), System Integrator for a time period each year
 Unintended Costs
 Operations Shut Down, Collection Issues, Tax Audits, FCPA Issues

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The Cause
End to End Process Supported in Silos
SAP
ERP
Middleware
Integrate the
System
Different
Solutions for
Each Country
CUSTOMER
IDOC1
2 3
4
5
Monitor #1 Monitor #2 Monitor #3-6
Who
Supports
Who
Supports
Who
Supports
Short-Term Issues
• Multiple Solutions
• Internal Staffing Requirements
• SAP Functional Experts
• Middleware – SAP PI
• ABAP Development
Long-Term Issues
• Monitor & Support
• Who do you call when there is an
issue?
• Level 1, 2, and Level 3 Issues
• Change management
• Legislation updates?
• Translating into technical
requirements?
• Who tests?
• What internal staff is needed?
6

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The Business Impact
IT, Operations, and Finance Affected Constantly
Cash, Compliance & CostEfficiency & Stability
CFO
Objectives
How do I automate processes with
my customers and suppliers?
How do I streamline transparency of
reporting & cash flow?
Efficiency
 On-time delivery
 Lower Inbound Receiving costs
 Accurate tax reporting & IVA Credits
 Complete audit trails
Cost
 Employee productivity
 Cost and time of shutdowns
 Tax penalties, missed deductions
 Cost of closing books monthly
Flexibility
 Data standard support
 Complete audit trails
 Working capital optimization
 SAP as single system of record
IT Consolidation
Chief Information Officer
How do I provide value with fewer
systems and lower costs of upgrades?
 Effort build, integrate, and maintain
SAP & multiple country solutions
 Staff, Solutions, Infrastructure
 Annual upgrades & consulting
 Stable budgeting vs. fire drill projects
 Buffer SAP from change
VP Supply Chain

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Why Leading Organizations Choose
Invoiceware International
Regional Latin America Platform
• One Platform, multiple countries – Brazil, Mexico,
Argentina, Chile, Ecuador, Uruguay, Peru & Colombia
SAP Hybrid Cloud Deployment
• Eliminate SAP ERP Configuration & Support issues
• Single SAP Monitor for End Users
• Fixed, Predictable Cost Today & Through Changes
Production Support
• Invoiceware a phone call away for day to day calls
• English, Spanish or Portuguese
• End to End Support – including SAP issues
Change Management
• Ongoing Changes Included (including both software &
consulting)
• Local teams work with the governments (i.e. SEFAZ, SAT, AFIP, SII)
• Remove dependency on Internal Resources & SAP to
keep system updated

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Invoiceware Solution Coverage
Digitizing the Economy through Real-Time Compliance
Government Mandates
Solutions
• Brazil
• Nota Fiscal
• SPED
• eSocial
• Mexico
• CFDI & Nomina Electronica
• eAccounting
• Chile
• DTE & Libros Reporting
• Argentina
• eFactura multi-invoice types
• Ecuador
• CE multiple invoice types
• Uruguay
• CFE & Daiy reports
• Peru
• CPE & Libros
• Additional countries in 2016
• Colombia
• Inbound MIRO/MIGO automation
• SAP Localization & Configuration

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SAP ERP
• Single Monitor within SAP ERP
• Absorbs unique customizations &
configurations of customer
• Flexibility for SAP Upgrade Teams
• Includes Change Management at a Fixed
& Predictable Cost
Invoiceware International – SAP Hybrid Cloud
A Different Approach Versus On-Premise or 100% Cloud
Invoiceware
Latin America
Compliance App
• Multi-Country Support
• Economies of Scale of government
interfaces
• Single Source of Support End-to-
End

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The Need
Invoiceware Value
LATAM Capability
Change Management
Enterprise Support
Eliminate SAP Work
 Multiple Countries, One Platform
 Reduce dependency on internal resources: SAP,
Middleware, AR, AP, Shipping, Receiving, & Controllers
 Avoid Company & Customer specific development
 Savings – avoid country specific ABAP
development & deployment
Simple Architecture
 One Monitor, Reusable components across countries
 Less Hardware & Architecture Costs
 One Support Team for YOUR implementation
 Solve Issues in Minutes, Not Days
 Keep Up with the Legislation
 All Updates Included (Software & Services) for all
components at a Fixed Cost

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Next Steps
Contact Us To Learn More
+ 1800 – 988 – 0728
www.invoicewareint.com