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Tradeshift Webinar: Fully Compliant E-Invoicing Solution to Latin America


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Learn How Tradeshift & Invoiceware International Deliver Fully Compliant E-Invoicing Solution to Latin America

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Tradeshift Webinar: Fully Compliant E-Invoicing Solution to Latin America

  1. 1. Latin America E-InvoicingGlobal Platform. Local Compliance.
  2. 2. Today’s AgendaSteve SpragueVP, Marketing & Product StrategyInvoicewarePresented by:Catherine LiaoHead of Presales1. Tradeshift Introduction2. e-Invoicing in Latin America3. Achieve 100% compliance inLATAM with Tradeshift
  3. 3. Tradeshift Business CloudA cloud-based platform enabling businessinteractions including e-Invoicing, workflow,payments, vendor management and more.196Countries5mil.+Businesses15mil.Invoices$200bnSpend
  4. 4. E-Invoicing with Tradeshift• There are no barriers to join, allcompanies can sign up and startsending e-invoices for free.• Buyers and sellers can interactand collaborate in real-time• A rapidly growing eco-system ofapplications supporting enterpriseinvoice presentment and payment(EIPP) processes.• Companies can extend businessprocesses onto Tradeshift byinstalling or building their ownapps.
  5. 5. E-Invoicing Challenges for MultinationalsDomestic e-invoice &Cross Border Domestic Invoices subject to electronic mandates Cross-Border – still predominately paperVATTax Remittance Supplier VAT deductible only from gov’t valid invoices Coordination of Credit/Debit notes to adjust gov’tregistered taxes once goods accepted PO usage on the rise but still low E-invoice formats don’t support “Straight ThroughProcessing” – need ability to append dataPO Usage“STP” CapabilitySupplierCollaboration Master Data & Onboarding Requirements Payment Status, PO Append, Dispute Management,Supply Chain Finance Different e-Invoicing provider in each country Complex legislation equals high internal support costsMultiple Local VendorsCross Border
  6. 6. E-Invoicing in Latin America
  7. 7. Differences to other Regions of the WorldDifferent Types of Countries• Mandated electronic invoicing: Brazil, Mexico,Argentina• Expanding Countries: Chile, Guatemala, Uruguay,Costa Rica, ColombiaDomestic versus Cross Border• Domestic equals VAT tax and is subject to countrymandates• Cross Border is predominately paperMandates Constantly Evolve• Can change 3-4 times per year as the tax regulationsevolve• Average multinational spends 2600 hours a yearmanaging Brazil issues versus an avg. of 80 hours ayear in other countries
  8. 8. Government in LATAM• Mandates the use of electronic invoices• Mandates that supplier must make e-Invoice available to Buyer• Mandates the Format of the Invoice• Requirement of Supplier Invoice: Approved and Accompany the Truck• Increases accuracy of what was ordered, shipped and invoiced• Invoice can arrive even before the GoodsPaper Invoices Supplier Rollout Multiple Formats Accuracy TimingX X X X XGov’t Mandates for e-InvoicingEliminate Common Roadblocks
  9. 9. Real-Time E-InvoicingBaseline Compliance Process Sets the Stage for Straight Through ProcessingBrazil Real-Time Compliance Mandates• Real time integration with Brazilian Tax Authority (SEFAZ)• For Accounts Payable – Goods Nota Fiscal, Service Invoices at City Level & CTe -Transporation• NF-e received electronically by recipient in advance. Must be validated and any returnsaccounted for via “return order process”• SEFAZ does not validate your taxes in real time but they do data-mine to check later• Brazilian companies are responsible for accurate taxes of their suppliers as wellPaperElectronicInbound A/P• Paper not authoritative forcompliance• Suppliers must provide XMLelectronically• Step 6 (required) sets upopportunity for automatedmatching & “straight-though”processing.5
  10. 10. E-Invoicing in MexicoCompliance UpdateDecember 31, 2013– CFD is Repealed– There is NO “Grandfather” clause – everyonemust switch• Includes all current CFD Users• CBB (paper) allowed only for companies >$250K Peso (~20K US Dollars)
  11. 11. Mandated Inbound ValidationMexico Moves to CFDIMexico SAT - Real-Time Compliance Mandates• Real time integration – legacy was a batch process• Invoices must be registered and approved before being sent• Printed CFDI is also a valid, legal invoice, XML must be archived for 5 Years• CFDI may be received electronically in advance. Must be validated as authentic beforepayment.• Each outbound e-Invoicing solution must also provide for inbound validation as well• IMPORTANT: Step 6 – You do not want to pay invalid invoices – Audit Risk & You Assume TaxIssue
  12. 12. SEFAZ Solution – Two Way Process Orchestration via NFE “events”• NFE is acknowledged by the receiving CNPJ through event posted back to SEFAZ.• NFE must be acknowledged within 180 days initially, and eventually before shipment asphased roll-out progresses.• Greater burden on receiving CNPJ, but many large receiving CNPJ are pushing for thesechanges to guard against ghost transactions in the first place.• Solution very similar to EMCS for Alcohol/Tobacco/Energy within EuropeDraft, subject to changeBi-Directional Process Orchestration withSEFAZ as the Mediator Between Parties
  13. 13. 100% LATAM compliancewith Tradeshift
  14. 14. Considerations for E-InvoicingCompliance• Avoid ~$250 fine per invalid invoice• e-Invoice received must match the e-Invoice previously registeredwith the Tax Authority.• Valid invoice = Okay to Deduct VAT on remittances to Government.AP Efficiency• If PO backed, does invoice = PO = Goods Receipt?• If not PO backed, does commodity manager or buyer approve?• Have the Goods Arrived and been processed?FinanceOptimization• Inability to optimize cash flow (e.g., Missed Discounts)• Liquidity concerns for supplier operations• Short-term investment of cash
  15. 15.  A single process to addressFiscal Compliance (OK-to-Deduct)andCommercial Compliance (OK-to-Pay) Local language phone support Flexible supplier connectivity options Highest supplier value proposition No supplier fees!LATAM Compliance App(powered by Invoiceware)
  16. 16. How Does It Work?12 34
  17. 17. 100% Compliance in LATAMGuarantee Compliance– Full AP and AR invoice validations– Immediate upgrades to accommodate any changes in mandatedregulations– Ensure fiscal and commercial complianceStreamline Business Processes– Eliminate configuration issues– Cut high cost of localizing & configuring ERP installation– Support in a local languageRemove Risks– Eliminate the risk of audits, stiff penalties and potential criminal charges– Avoid receiving and posting invalid invoices– Guarantee your ability to ship, collect money, and legally file local taxes
  18. 18. Let Tradeshift assist with yourLATAM E-Invoicing rollouts.
  19. 19. Q&A