Mexico Tax Invoicing Add-On

Tax Invoicing add-on for Mexico
Overview & Demo

Francisco Bonett, Localization Product Manager, SAP Globalization Services
June 2023
INTERNAL
Things to know about tax invoicing in Mexico
• SAT (“Servicio de Administración Tributaria”)
• Government Tax Administration in Mexico
• There is one and only one SAT
• PAC (“Proveedor Autorizado de Certificación”)

• Authorized Certification Provider
• There are over 80 PACs in Mexico
• Private Companies that provide this service
• CFDI (“Comprobante Fiscal Digital por Internet”)

• The electronic billing schema defined by the Mexican federal tax code
• XML format must be validated and stamped by a PAC
• All companies/suppliers must submit their invoices in CFDI format
• PO # and other business references can be optionally added in the Addenda segment
• Payment receipt (“Complemento de Pago”)

• XML format quite similar to CFDI invoice. It must be issued by suppliers when they receive payments in installments or after invoice date. This way,
SAT is trying to avoid inappropriate cancellations
• It must be done no later than the tenth calendar day of the month immediately following the corresponding payment date received. Failure to comply
may result in a penalty
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

SAP Business Network for Procurement
Mexico tax invoicing add-on
One single channel to receive and process all your inbound tax Relevant country-specific data (UUID among others) are mapped into
documents (CFDI – Comprobante Fiscal Digital por Internet) from your cXML as extrinsic fields.
suppliers via different means.
• CFDI invoices version 4.0 Business references can be keyed during manual upload or adding
Addenda section within CFDI file according to Ariba guidelines.
• Types Ingreso, Egreso, and Payment receipts supported
Mexican Vendors
Manual upload via UI for small/medium suppliers • Conversion from CFDI file to Buyer
cXML standard
Email submission for tail suppliers • ERP system
• Fiscal validations through a
• Buying & Invoicing
connection with one certified
Post via API for high-volume suppliers solution
provider (PAC)
(planned for Q4-2023)
• Business rules set by buyer
PO-Flip, cXML integration out of scope
• Status visibility and search
functionality
Fees
• Subscription fees based on Invoice volume Supplier Enablement
(PAC services included)
• One-time setup fees based on scope (Is B&I in • Enterprise-account suppliers
scope?) including SOW for Buyer Integrator • Standard-account suppliers
and Supplier Enablement.
• Non-Ariba suppliers
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 3
Further considerations
In regards to integrations with other solutions:
• B&I has been localized to process CFDI invoices coming from the Network (additional hours to customize must be
added)
• Supply Chain Collaboration has not been localized for Mexican invoices. Gap analysis is planned for H2’2023.
• 42K scope item (Automation of Source-to-Pay with SAP Business Network) is still not officially supported but is under
review by product teams. ETA towards Q1’2023
• Central Invoice Management (CIM) not accounted for Mexican market yet.
In terms of roadmap, important changes are in progress:
• Ability to receive and process CFDI invoices via a new API channel. ETA: Q3’2023
• New model to support extensions built by partners through SAP Store. ETA: Q1’2024

High-level Diagram Partner
Mexico tax invoice add-on
SAP Business Network
Localizations
UI Upload
Fiscal CFDI >

Input
validation cXML
Email
Layer 1
SAP Business Network Core

Online
creation
Buyer’s
Supplier
Business Distribution
invoice
rules rules reconciliation
Integra-
Integrated and payment
cXML tion
Layer 2 Layer 3
3 layers of validations
Invoice data flow with Invoice Automation
Clearance
process
CFDI data is
Tax invoice add-on
communicated
SAT later
PAC converts UUID is

Buyer legal
invoice to allocated, and
validations
PAC CFDI CFDI is signed
with Ariba’s
and stamped
selected PAC
User can add

business via UI or
via supported
Supplier
Suppliers Supplier submits receives the Supplier uploads
Addenda Ariba.
Invoice to PAC stamped CFDI CFDI to AN

(manual)
Ariba Network CFDI is sent for Invoice is Invoice Transforms to AN Business Sends to the Invoice status
Ariba Network receives CFDI legal validation validated Enrichment cXML Validations ERP update /
invoice remittance advice
Received by the
ERP ERP

New option to upload CFDIs in Ariba Network

STEP 1: Upload CFDI
Browse local XML

files

STEP 1: Basic and legal validations
Validation results
displayed to user

STEP 2: Optional PDF upload
Generic PDF
generation
Optional PDF
upload
Note Ariba does not generate and attach the PDF when it is uploaded by supplier
STEP 3: Add/Edit references
Business references
at header level
Note: If the CFDI uploaded

contains references within the
Addenda Ariba, these values
are pulled and displayed here.
References at
item line level
STEP 4: Confirmation and submission for business validations
Confirmation &
New upload
submission
Delivery to buyer
Reference type
Sent to Buyer

cXML + PDF + XML PDF
XML

CFDI Credit Memo
• In order to receive and process CFDI Credit memos, the buyer has to
enable at least one of the two adjustments (Quantity/Price) through
Ariba business rules.
• Credit memos must reference either InvoiceID = ’Serie+Folio’ or PO#
• Credit memos must be CFDI type “E” and linked to the invoice UUID
including mandated field tipoRelacion
▪ 01 – Price adjustment > The flag (IsPriceAdjusmentInLine = true) is added to
the invoice cXML
▪ 02 – Debit Note
▪ 03 – Quantity adjustment due to goods return (no flag inserted)
▪ 04 – Replacing another CFDI. it can be PriceAdjustment or QuantityAdjustment
– so here we will need a way for them to specify what they are doing in the
Addenda.
▪ 05-09 – not relevant for Credit Memo

CFDI version 4.0 supported
A new version of CFDI 4.0 was published by the Tax Administration Service (SAT) and it came into effect on January 1st, 2022, and it will be
mandatory as of January 2023.
SAP GS will handle this legal change accordingly:
• This new version 4.0 is supported as GA since May 2022
• cXML now supports new fields added to CFDI tax invoices and payment receipts (version 2.0)
❖ DomicilioFiscalReceptor - Fiscal address of the receiver.
❖ RegimenFiscalReceptor required to incorporate the tax regime key of the recipient taxpayer
❖ Attribute ObjetoImp required at line-item level to express whether or not the commercial operation is subject to tax.
• Versions 3.3 and 4.0 will coexist until the deadlines set by SAT.
• Some changes do not have direct impact on the Ariba solution but the invoicing process:
❖ Cancellation process
❖ New validations and updates on the matrix of errors
❖ Withholdings report
• Further details can be found on KT NG-5191

New channel to support CFDI invoices via email (GA since Feb’2022)
Inbound invoice channels

addressing different suppliers’ groups ▪ Legal validations
▪ Mexican service providers through a PAC
(aka PACs) issue invoices
on behalf of suppliers
Manual upload (available)

Mid-size suppliers
AN-Registered suppliers upload CFDI
invoices and optionally enter business Mexico Tax Invoicing add-on
references. Ariba Network (Legal Service Gateway)
Localization done to manage

CFDI invoices:
• Mandated fiscal validations
through a PAC
• Conversion to cXML standard
• Business references
validations
Email with CFDI invoice attached (GA 2022-Q1)
Tail suppliers
Mexican suppliers can email their invoices
Low-volume,
now. Applicable to suppliers and utilities that
sporadic, Non-Ariba
suppliers, Utilities, &
will not use manual upload. Mail server
• One generic mailbox
professionals • CFDI invoices can be attached (Max 10 files
recommended)
• Other files are ignored
New flow connected to the existing Tax invoice add-on • All CFDI invoices are validated with a PAC
• Only fiscally valid documents are posted to
buyer account on Ariba Network.
• Ariba Network validations are then performed
See Blog •
© 2019 SAP SE or an SAP affiliate company. All rights reserved. CONFIDENTIAL 20

High-level process for inbound email channel
Mailbox Mail Server Validations ANID Allocation Conversion AN rules
Suppliers can post their Inbound emails are Buyer legal validations are The corresponding ANIDs for The CFDI invoice (XML Business validations are
CFDI invoices & payment processed in Ariba mail performed through partner each invoice are assigned format) is converted to performed according to the
receipts via email to the server. PAC. based on the Tax ID coming cXML buyer business rules enabled
NEW mailbox. within the CFDI file. in Ariba Network.
❖ All attachments are ❖ Standard PDF is generated ❖ Only valid cXML
❖ Max 10 CFDI invoices extracted and every through the PAC. ❖ If an unknown supplier’s invoices are posted to ❖ Validations are done on
can be attached per email CFDI XML is posted to Tax ID is found, then Quick AN existing flow the cXML invoice As Is
❖ Business references can be
Legal Service Gateway Enablement is triggered (if today
❖ XML file mandatory. processed for those ❖ If Ariba Addenda is
(LSG) for individual enabled) to create a
Otherwise, automatic invoices including Ariba included, the references ❖ Once successful, the
validation. private account with basic
failure. Addenda. Otherwise, Non- will be mapped cXML invoice is delivered
data. Note this process
❖ Automatic response is PO invoice is assumed. to the Buyer´s ERP.
❖ Non-XML files are may be not compatible ❖ If No addenda or
sent back to the email’s
ignored ❖ Non-PO invoices may be with the buyer´s process if another addenda is ❖ Failed invoices due to
issuer when buyer is not
allowed additional details such as included, the invoice is business rules are visible
❖ Subject or body text does found for one of the
Vendor ID is required. treated as a Non-PO with error details.
not matter. Neither does invoices. ❖ Only fiscally valid invoices
invoice
email type. are sent to the next step. ❖ Ideally, new suppliers ❖ Notifications can be sent
should be uploaded in to registered suppliers
❖ One generic mailbox is ❖ Fiscal errors are not visible
advance with all the with that option activated.
enabled and the to suppliers but will be
information needed.
Test/Prod environment is included in buyer´s failed ❖ Non-Ariba suppliers won´t
determined based on the invoice report. have visibility of invoice
Buyer Tax ID status status unless they take
❖ Buyer has access to a LSG
ownership of their AN
report with failed invoices
account.
Comparison: Manual upload vs Email channel
Manual Upload Email channel
1. No access required, but recommended to see status

1. Access to AN UI is required
2. Invoice are submitted via email
2. Invoice are uploaded manually
3. Non-Ariba suppliers could be allowed to post invoices but some
3. All suppliers must be registered with proper Tax IDs and configured. restrictions exist:
▪ Quick enablement feature must be turned on.
4. Basic and fiscal validations are performed with immediate feedback via ▪ Private accounts are automatically created with Company name and Tax ID but
vendor ID is missing
UI
▪ Supplier group rules cannot be used
▪ Buyer Tax ID
▪ Prior registration required if using B&I
▪ Supplier Account configuration
▪ Fiscal compliance 4. Basic and fiscal validations are performed:
▪ Buyer Tax ID
▪ Business references are validated and can be edited in UI
▪ Supplier Account configuration
▪ Fiscal compliance
5. Only fiscally valid invoices are posted to Ariba Network
▪ Business references are NOT validated and can be added to the addenda
section within CFDI file
6. Business validations are performed at all levels (company, country, and
supplier group) 5. Idem
7. Online support is provided via the supplier account 6. Idem
7. Buyer must provide proper support to suppliers that do not

access SAP Business Network to track status of their invoices.

Email Flow Enablement & Operations
1. Enablement Configuration at the buyer admin UI
a. Buyer must raise a ticket to configure VAT IDs if not done earlier.
b. Vendor upload is a prerequisite. Although, Quick Enablement option can be checked so that private
accounts are created for non-registered suppliers. Otherwise, those invoices will failed and be part
of the non-cxml report. Note this option only works for the email channel and must be analyzed by
each buyer (vendor ID needed?).
c. The corresponding email address will be informed to the buyer
2. Error handling:
a. An invoice is addressed to a Buyer Tax ID not enabled for this > An email notification is sent back
with error “Buyer not found”
b. Other files like PDF are also attached to the email > Any non-XML file will be automatically ignored
by the system
c. Several CFDI invoices are attached to an email > Our recommendation is to have max 10 CFDI
invoices attached to avoid heavy files and consequent performance issues
Failed invoices report on Buyer’s AN account
d. If one generic mailbox is available, How does the system determine if test or prod? > It is
determined based on the Buyer Tax ID
e. One of the invoices attached does not pass fiscal validation > Only that invoice will fail on LSG
module but the rest will be processed
f. Some invoices fail with no visibility to suppliers > Buyer has access to a report with failed invoices
incl. reasons.
g. A CFDI sent has no addenda > It will be processed as a Non-PO invoice
h. A CFDI has a non-Ariba addenda > It will be treated as Non-PO invoice
i. The PO referenced within the CFDI Addenda is not found > Same as above (treated as Non-PO
invoice)
j. If a supplier is misconfigured (null or duplicate records) > The invoice will fail and will be visible o
the internal AN report of Non-cXML invoices. Further action can be asked to Ariba support team.
k. Tail suppliers may also take ownership of their Network account and activate notifications.

Addenda Ariba
• Addenda is an open free section within the structured CFDI format for suppliers to insert
additional information.
• SAP Ariba has designed its own Addenda to standardize and facilitate the exchange of
information between the different buyers and suppliers of the community. This way, suppliers
can upload their CFDI invoices with all the business references required by the buyer with no
need for manual entry in Ariba Network.
• The chosen structure is simple and easy for suppliers to adopt because it contains the
minimum additional information required by buyers to process their invoices, automate internal
processes, and reduce processing times.
• Basically, the required data are business references that allow us linking a CFDI invoice with the
supporting documents traded on the Ariba platform to ensure compliance with the buyer
requirements.
❖ Business references at header level: Purchase order, Service entry sheet, Good receipt, Sales order, infernal
reference, contract.
❖ Line item number at line level
❖ Note namespace xmlns cannot be overridden as it causes problems to read the Addenda
• For testing purposes, a CFDI invoice can be edited to add the Addenda segment which is not
affected by signature.
❖ Further details:
https://jam4.sapjam.com/groups/qLUo2MHsLb4aJytblwPK5k/documents/yUPSR62b2o7h1QtC8
TQjK6

Project steps
1. Buyer entitlement
a. Configuration of the buyer's account in Ariba Network for Tax Invoicing.
b. Review of business scenarios:
▪ Non-PO Invoices,
▪ Material invoices including Good Receipts (GR),
▪ Services invoices and Service Entry Sheets (SES),
▪ Credit Memos to return goods or adjust prices, etc.
▪ Payment receipts (“Complemento de pago”)
c. Presentation of the Ariba Addenda in alignment with the flows in scope
d. Buyer’s business rules review and settings
▪ Decide if quick enablement will be used for non-Ariba suppliers
e. Knowledge transfer of the Ariba Network invoicing rules to the client
f. Test script and Testing
g. Cutover of the technical configuration of Ariba Network for the production account
h. Post go-live support for two weeks
2. Buyer integrator activities

a. Kickoff meeting explaining the solution and scope.
b. Integration of the CXML Invoice interface and attachments with the adapter
c. Support the mapping of country-specific fields from the CXML invoice (UUID, stamping date, among others)
d. Configuration of the technical End Point in Ariba Network for the invoicing flow.
e. Support testing the solution and integration
f. Cutover of the technical configuration of Ariba Network for the production account.
g. Support the customization of the Invoice UI (User Interface) in Ariba Network, if necessary
3. Supplier enablement
a. Flight plan to onboard suppliers after proper analysis of supply base
b. Vendor Upload and configurations
c. Ongoing updates of supply base
d. Supplier Education, material (Addenda Ariba, among others)
e. Prepare support channel for suppliers not using their AN account

Time estimation for deployment
High level activity Time estimation
Document process flow
Tax Invoicing demo to Buyer 1 day
Enhanced Inbound CFDI flow to Buyer 1 day
Buyer entitlement
Review of business scenarios in scope 2 days
Addenda Ariba presentation 1 day
Buyer’s business rules setting 1 week
Standard testing 1 week
Buyer integrator activities
Kickoff meeting explaining the solution and scope. 1 day
Support the integration of the CXML Invoice interface and attachments with the adapter 2 weeks
Support the mapping of country-specific fields from the CXML invoice (UUID, stamping
date, among others) 1 week
Configuration of the technical End Point in Ariba Network for the invoicing flow. 1 day
Support testing the solution and integration 2 weeks
Cutover of the technical configuration of Ariba Network for the production account. 1 day
Support the customization of the Invoice UI (User Interface) in Ariba Network, if
necessary 4 days
Supplier Enablement
Flightplan to onboard suppliers after proper analysis of supply base 2 weeks
Vendor Upload, Tax ID configurations, among others 1 week
Supplier Training (Addenda Ariba, account configurations, among others) 12 weeks **Please note that some activities are
Test specific scenarios 2 weeks dependant from others, but can be done in
Migrate Tax Invoicing configurations to PROD 1 week parallel so the timing is not consecutive

Payment receipt / “Complemento de Pago”
• Generically speaking, payment receipt is a document given by a supplier to a customer (Buyer) as proof of full or partial
payment for a product or service.
• It is also referred to as a ‘receipt for payment and created after payment has been entered on a given sale. The amount of
payment can be the full amount stated on the invoice for the sale, or a partial amount.
• Payment receipts can be useful for both the seller and the buyer, and are an additional document used in communication in the
sales process.
• One receipt may be linked to one or more invoices. This way, suppliers can group many invoices related to the same buyer in
one document. It could be additionally linked to another payment receipt for update (Replace / cancel)
• Its use is mandatory in Mexico since August 31st, 2018 and it is called “Complemento de pago” (Payment supplement) by SAT.
• It must be done by supplier no later than the tenth calendar day of the month immediately following the corresponding payment
date received. Failure to comply may result in a penalty.
• Buyer must store the payment receipts and be ready for any fiscal audit.
Typically, a payment receipt will include the following:

❑ A clear label (‘Payment receipt’) or any equivalent term set by any Tax Authority
❑ The original invoice number (one or many). Other references may be to remittance advice and/or previous payment receipt
❑ The date the payment was received
❑ The amount received
❑ Any remaining amount due
❑ If the related invoice has been paid in full, this should also be clearly indicated on the payment receipt, preventing any confusion on the
part of the customer.

Payment Receipt data flow (Basic version)
A set of additional
validations can be
Clearance enabled to ensure
process consistency with
invoice data.
Receipt data is
communicated
SAT later
Tax invoice add-on
PAC converts UUID is Buyer legal

payment allocated, and validations
receipt to CFDI receipt is signed with Ariba’s
PAC and stamped selected PAC
Supplier Supplier uploads

Suppliers Supplier submits
receipts to PAC
receives the
stamped receipt
payment receipt to
AN (manual)
Ariba Network Receipt is sent for Payment receipt PDF can be Send to the
Payment receipt
Ariba Network receives payment legal validation is Ok or rejected uploaded buyer via e-mail
status (accepted /
receipt rejected)
Received by the Buyer business

ERP ERP for review and validations +
approval (Accepted / UUID update for
Rejected) payments
Payment Receipt data flow with CIG
Some additional
Clearance validations can be
enabled to ensure
process consistency with
Receipt data is invoice data.
communicated
SAT later
Tax invoice add-on
PAC converts UUID is Buyer legal

payment allocated, and validations
receipt to CFDI receipt is signed with Ariba’s
PAC and stamped selected PAC
If Rejected, supplier
needs to create a
new receipt that
replaces the
previous one.
Supplier Supplier uploads
Suppliers Supplier submits receives the payment receipt to
receipts to PAC stamped receipt AN (manual)
Ariba Network Receipt is sent for Payment receipt PDF can be Conversion to Send to the Payment receipt
Ariba Network receives payment legal validation is Ok or rejected uploaded cXML ERP status update
receipt through CIG (accepted / rejected)
Received by the Buyer business

ERP ERP for review and
approval
validations +
UUID update for
payments
Data flow for Payment Receipts
Manual upload Buyer legal validations PDF & Business validations cXML support Delivery to buyer
Users see an option available in Legal validations are performed as The system automatically Documents are stored in AN The payment receipt successfully
Ariba Network to upload their part of the first step in the wizard: generates a graphical database. validated, the cXML payment
payment receipts (complemento de representation in PDF format for receipt is delivered to the Buyer.
❖ Buyer legal validations are ❖ A new document type supported
pago): Payment Receipts if no PDF is
performed through a PAC via cXML in Ariba Network. ❖ A new routing configuration
uploaded by user.
❖ Same wizard based simple user synchronously added for those payment
❖ Conversion to cXML format.
Interface will be provided as is ❖ Done through a PAC receipts that passed all the
❖ Files imported successfully or PaymentReceiptConfirmationRequest
for CFDI invoices validations.
The buyer can optionally enable a transaction supported
❖ Users can browse their file ❖ Errors displayed in screen. Fiscal set of standard business rules (all ❖ Final status (approved or
validation errors are shown with or nothing) to ensure consistency ❖ Payment fields supported as well
system to select the rejected) is posted by Buyer
description. Same applies to as references to invoices
corresponding Payment Receipt between the payment receipts and through StatusUpdateRequest
document schema validation errors. the linked invoices: ❖ Payment receipt report available message to AN providing
for buyers and suppliers on Ariba visibility to suppliers
❖ XML file upload support ❖ Invoice UUID must exist in AN
Network
❖ Duplicate receipts are not allowed ❖ Notifications to suppliers via
❖ Basic validations are performed:
❖ Buying & Invoicing is out of email
Buyer and Supplier Tax ID’s are ❖ If one single payment, then PR scope for this document type and
first validated against Ariba amount = invoice amount. Else, must be processed in buyer’s
records to ensure consistency PR amount <= invoice amount ERP
❖ PR receipt currency = Invoice ❖ No search on UI today but
currency
reports available
❖ Tax IDs consistency between
payment receipts & invoices • Restrictions in red.

Further details re payment receipts
1. Support the Payment Receipt as a new transaction document in AN

• New PaymentReceiptConfirmationRequest transaction as a document type in cXML format
• New rule related to Payment Receipts: “Allow suppliers to send Payment Receipts for their paid Invoices”. When turned ON,
it overrides the functionality to send by email to the Buyer
• A supplier can send a Payment Receipt confirming payments for a single or multiple Invoices.
• The supplier can also send multiple Payment Receipts to confirm one Invoice.
2. Map CFDI Complemento de Pago to Payment Receipt cXML transaction document

• For CFDI type = P
• Conversion from CFDI format to cXML including Mexico-specific fields
3. A new routing configuration added for Payment Receipts

• Buyer should be able to receive the Payment Receipt as a cXML document
• IN scope is any End Point POST channel including CIG
• NOT IN Scope is Pending Queue channel as CI adapter/AddOn
4. Ability to receive Status updates from the Buyer for Payment Receipts
• StatusUpdateRequest with APPROVED or REJECTED status
Official information here

Further details re enhancements (cont´d)
5. Send notifications to suppliers on status updates

• Notification configuration Supplier Account > Settings -> Notifications
• when the status of the Payment Receipt is updated
• when the Payment Receipt is Rejected by the Buyer
6. New AN report for Payment Receipts

• Payment Receipts. Basic report that provides the Invoice payment information for Payment
Receipts received by Ariba Network.
– filter by Status
– Date Range - Past 24 hours, Past Week, Past Month
– Supplier Filter – Single Selection, All, Supplier Group
Notes:
– these reports will be available for buyers and suppliers
– Note the list of invoices without Payment Receipts can be obtained by filtering
Future enhancements (under consideration)
Ability to view, search, and download payment receipts on Ariba Network

• To be built on new IT stack

Known restrictions
1. CFDI Invoices
a. Supply Chain Collaboration (SCC) scenarios such as CFDI invoices against consignment movements, scheduled
agreements, PO return, and subcontract PO are not supported yet
➢ These business scenarios can be handled as Non-PO invoices so that suppliers enter internal references that can be
validated on the buyer’s ERP through custom validations
➢ Suppliers must be educated to provide the right references for each scenario through Addenda Ariba or the invoice
enrichment step
b. Once a buyer goes live, they cannot use same Tax IDs (RFCs) for testing
➢ Dummy Tax IDs provided by SAT can be used for testing purposes
c. Mass CFDI upload is not supported yet

➢ All CFDI invoices must be uploaded manually today (one at a time).
➢ Suppliers can deliver their CFDI documents via email attaching multiple documents
➢ A future API is under design to allow large suppliers to post invoices to AN. No timelines yet.
d. Option for buyer to upload invoices on behalf of suppliers is not available

➢ These suppliers must either upload their CFDI invoices to AN by their own
➢ Buyer can optionally email these documents and check out receipt on the Network afterwards
e. No custom Addenda is supported

➢ Suppliers must either adopt Addenda Ariba, which is quite simple, or enter the references on the invoice enrichment
page during the manual upload process

Known restrictions (cont´d)
f. Standard Accounts still require registration and maintenance by buyers
➢ Every new standard supplier must be configured by the buyer through Vendor Upload File including RFC. This is an
ongoing process under buyer’s responsibility. This is a must when B&I is involved.
➢ Alternately, Quick Enablement can be turned ON but only basic information travels to the buyer (supplier name and
tax id)
g. Fields within Complementos are not mapped today

➢ Only mandated fields within the CFDI body are supported today.
2. Payment receipts
a. These documents are not visible nor searchable in AN UI.
➢ These business scenarios can be handled as Non-PO invoices so that suppliers enter internal references that can be
validated on the buyer’s ERP through custom validations
➢ However, there are reports available for buyers and suppliers
b. CI and other former adapters do not support payment receipts

➢ Only CIG supports this new document type through end point configuration
c. This document type is not integrated with Buying & Invoicing (B&I)
➢ Unlike CFDI invoices, payment receipts can be passed onto buyer´s ERP only.
➢ No plan to support it either as no clear value is seen

Thank you.
Contact information:
Francisco Bonett
Localization Product Manager
Globalization Services
Francisco.Bonett@sap.com
Appendix
Frequently Asked Questions (FAQ)
1. Can a buyer use their preferred PAC?

▪ No, they can not. Business Network is ionly ntegrated with PAC EDICOM at his time. All the inbound invoices are validated through them with no exception.
2. Could a buyer use proforma invoice to support Mexican tax invoices instead of the Add-on?
▪ Yes, it can be used so that suppliers flip POs into invoices and attached the legal CFDI XML file. However, the following validations must be performed by the buyer:
– Fiscal validation on the attached CFDI file
– Consistency validation to ensure the online invoice is consistent with the attached file in terms of key data (invoice ID, Tax IDs, amounts, taxes, etc.)
– Note these can be done either on the buyer´s ERP or Ariba Network by using the Flow Extension API (suspend mode) with a client application
3. Can I implement custom validations?

▪ Yes. As explained above, these can be done either on the buyer´s ERP and use Status Update Request (SUR) message flowing back to the Network.
4. How does the new tax reform impact on our solution?

▪ See next slide

Impact on New Reform of VAT Withholding
For 2020 the Value Added Tax Law was reformed, and one of the main changes was made in the article 1-A of the
mentioned Law which establishes the following gray box:
• Since VAT is a cash flow base tax, the withholding tax must be levied on services paid from 1st January 2020,
regardless of when they were accrued.
“Taxpayers in any of the following classifications
are required to withhold taxes charged to them:
• it is necessary to clarify that the concept of subcontracting disappears in the wording compared with the tax
reform, and therefore each case must be analyzed individually. If there is any doubt, it is highly advisable to … Corporations or individuals with business
consult a labor lawyer, since the fact of assuming the deduction could have some labor repercussions from a activities, who receive services in which personnel
subcontracting perspective, and if there were an obligation to withhold VAT, not doing so would imply a is available to the contracting party or a related
nondeductibility for corporate income tax of all the services in question.
party, that carry out their functions in the facilities
of the contracting party or a related party, or even
Then, this new rule does not impact our CFDI flow on Ariba Network but requires changes on the buyer side:
outside the facilities, whether or not they are under
• Suppliers keep issuing their CFDI invoices through their preferred certified provider (aka PAC) with no changes the direction, supervision, coordination or
on their CFDI data dependence of the contracting party, regardless of
the name given to the contractual obligation. In
• Ariba Network receives, validates, and converts these invoices to cXML format including all relevant taxes this case the withholding shall be made for 6% of
among other Mexico-specific fields, with no changes
the value of the consideration actually paid…”
• However, buyer must do changes on their system and process to determine if this new rule applies and withhold
the corresponding 6% when applicable.

Additional considerations
1. PO-Flip option is not available for Mexico due to little to no value.

▫ Integration with PACs other than EDICOM is not supported today
▫ Only external invoices in CFDI format can be sent to AN.
2. Only Addenda Ariba is supported. The flows to be supported and the corresponding business references required need to be reviewed
with delivery team. Suppliers can enter business references during step 3 for enrichment.
3. Supply Chain Collaboration (SCC) scenarios re CFDI invoices are NOT supported through this add-on:
▫ Consignment and other scenarios like Scheduled Agreements, PO return, and Subcontracting have not been certified to be used with SCC and this add-on
4. Restrictions on Testing environment

▫ Known restriction: the same Tax ID cannot be used in Test and Prod environments at the same time. Once in Production, buyers need to use a dummy Tax ID for the buyer
account.
▫ Buyer should test scenarios using real invoices from a small group of suppliers
5. Payment receipts can be received through AN but delivered to buyer via email or CIG
▫ These documents cannot be processed through B&I /P2P either.
6. Supplier enablement
▫ This process should be supported by our AN regional team always as it requires initial setup but ongoing maintenance.
▫ Premium/Standard suppliers must be onboarded by buyers through Vendor Upload File (VUF) including Tax ID, Vendor ID and System ID, among the most relevant fields.
▫ Invoices from non-Network suppliers could be also processed via Quick Enablement option, but it requires further assesment with Buyer Integrator team as that option may
not work for a buyer that needs vendor Ids.

Buyer legal validations
• Validations are done on Ariba Network through a PAC Service synchronously.

➢ Basic validations performed by Ariba Network to ensure consistency
– Match between supplier account and the invoice uploaded (based on Tax ID)
– Account linked to buyer’s Tax ID coming into the CFDI invoice
– Invoice type must match with doc type selected
➢ All the fiscal validations performed through PAC according to SAT guidelines:
– SAT Schema validation
– Catalogs of data CFDI 4.0
– Digital signature and issuer’s digital certificate
– Fiscal validations according to Annex 20 Some of the errors
– Matrix of errors for CFDI version 4.0 & payment receipts
– Obligations of PACs
– Validations of issuer and recipient against SAT’s 69-B list **New
– Status of CFDI at SAT site
• Results and errors, if any, are displayed in screen to end users.

cXML extrinsic fields supported for CFDI Invoices

Additional validations for CFDI Invoices
Additional validations beyond the fiscal ones have been implemented under one standard package with EDICOM:
1. Any CFDI invoice with type = I (“Ingreso”) must have combination payment method = PPD (Payment in installments) and
payment mean = 99 (Other).
2. Suppliers that could have a different combinations (payment method = PUE and payment mean with other values) can be
handled through a short exception list.
3. No additional validations are applied to CFDI type = E (“Egreso”)
Configuration of the optional rules above:

▪ List of Buyer company names and Tax IDs associated must be provided and configured by SAP Ariba
▪ List of supplier names and Tax IDs for exceptions of rule #1 must be provided and configured by SAP Ariba
▪ Note all the rules are applies as part of the package. Application of some rules is not possible. It is all or nothing.
Example of an error re rule #1
Execution:
CFDI Invoices that do not meet the rules above are rejected immediately after CFDI upload by displaying the corresponding error
message.

Cancellation of CFDI invoices and Payment receipts
• When the issuer of a CFDI needs to cancel it, said cancellation

may be requested through the SAT’s website.
• The tax invoice recipient will receive a message through the tax
mailbox indicating there is a CFDI cancellation request, and the
recipient shall state, through SAT’s website if it accepts or
denies the cancellation of the CFDI, the period for said response
is 3 business days (72 hours) after receiving the CFDI
cancellation request.
• SAT will deem that the recipient accepts the CFDI cancellation if upon expiration of the term
mentioned above, no statement is made.
• Upon cancelling a CFDI related to other CFDIs, the latter are to be previously cancelled. If a
CFDI is cancelled applying the facility established on this rule, but the transaction subsists, a
new CFDI related to the cancelled document will be issued pursuant to the guide for filling
CFDI indicated on Exhibit 20.
• Taxpayers may also cancel CFDI massively.
• A CFDI invoice already paid cannot be cancelled but can be modified through a credit memo
• A payment receipt can be cancelled by submitting a new one linked to the previous one.

Further validations before payment
The SAT enabled a Web Service that is used to check the status of a CFDI before proceeding with its
payment, which makes it possible to identify if it has been cancelled.
See more info at SAT Portal – WS Consulta CFDI
This service can be consumed directly by a taxpayer or through most service providers (PAC) that offer
their services.

Enhancements done to support Mexico withholding taxes in B&I
Detailed feature information

• AN added ability to set Tax Type for AN invoices. AN invoice cXML will contain Tax Type information in extrinsic cXML tag for some countries.
• P2P consumes the below new extrinsic tag and update it accordingly for AN /CXML post invoices. See P2P JIRA Id: SINV-8313
• This is a general change to support new TaxType, not just for Mexico or Italy SDI.
• For Mexico invoices specific Tax Type example Withholding Tax Types are IVA and ISR.
• Example of changes in cXML invoice:
2 new extrinsic fields added at line level when required in some countries
• Changes have been done on both ways:

➢ Inbound flow (AN → P2P). moved "ExtrinsicsDecode" before "create4LineItem" since we need handle WTH tax in createLineItem() after parsing/got value
of the taxType.
➢ Outbound flow (P2P → AN). Logic added in getTaxCategory() to remap from TaxDetail.TaxType -> Extrinsic "taxType" field for WTH. The outgoing
documents from P2P-> AN also have this extrinsic flag and it is consumed in AN side too
• The reconciled IR document (Invoice Pro and Combo use case) is also having the new extrinsic field
• With feature toggle off no new extrinsic is sent in the cxml (refer attached). P2P has toggle and it is NP-10268 (No toggle on AN)
Buying & Invoicing UI
P2P UI is showing at the summarised level as Withholding tax.
Ariba Network UI
AN UI displays all the tax details at line level.

AN Business rules regarding Goods Receipts
• There is a business rule in Ariba network that requires references to receipts on invoices. See picture below:
• If buyer rule “Require references to receipts on invoices.” is ON, then GR# is required.
– If GR# is missing an error is prompted: “Your buyer requires reference to goods receipt on your invoice.”
– If wrong, then error “The goods receipt XXXXX' does not exist in Ariba Network.”

Business inconsistencies identified through Network rules.
1. Network business rule are able to identify any inconsistency between PO and SES.
2. Likewise for inconsistencies between PO and SES.

Disabling PO-Flip – Not available any longer
By activating the following entitlement, It was possible to prevent suppliers from creating PO-Flip invoices.
• An invoice was created, signed with wrong certificate and failed later by EDICOM due to improper signature.
However, this flow was discontinued as CFDI version 4.0 is not supported through PO-Flip.

Carta Porte Supplement
On 1 May 2021, the Mexican tax administration (SAT) released one of the most important updates to the electronic invoicing system of the country
since 2017.
• The update is about the new Bill of Lading Supplement (locally known as Suplemento de Carta Porte) that should be added as an annex to the
electronic invoice of Transfer (CFDI de Traslado) or to the CFDI of Revenues (CFDI de Ingresos) that are issued for hauling services.
• Reason: According to SAT, 60% of the goods transported in Mexico have an illegal origin.
• Purpose: Ensure the traceability of the products moved inside the Mexican territory by requiring the provision of additional information about
the origin, location, precise destination and routes of transport of the products transferred by roads, rail, water or air in Mexico.
• Who is required to issue it?

❑ The owner of goods transporting its own assets. In those cases the Carta Porte supplement will come as part of the CFDI of Transfers
➢ zero as a value of the products and the generic RFC used for transactions carried out with the public
❑ The intermediaries and agents of transport. In these cases, they will be required to issue the Carta Porte supplement as part of a CFDI of Transfers
➢ zero value as above
❑ The hauling companies: When they supply services of transportation of goods by whichever means: water, air, road or rail. The suppliers of transportation services
should issue a CFDI of Revenues with the Carta Porte supplement
➢ value will be the price of transportation services charged
Source: Sovos

Carta Porte Supplement (cont´d)
• The new Carta Porte supplement became effective on 1 June 2021, but its use will become mandatory 120 days counted from that effective
date (30 September 2021). It applies to any goods being transferred, regardless of its origin.
• The transporter of the product should have with him a copy of the digital CFDI of Transfer or the CFDI of Revenues, properly validated with the
SAT via the corresponding authorized provider of certification services (PAC). The tax and transportation authorities will enact random
verification checks on the roads, airports, waterways, train stations, and other transportation means, to ensure compliance with this mandate.
• Note that Carta Porte supplement does not substitute other documents necessary to prove the legitimate origin or ownership of products.
Other additional documents will be required for this purpose.
• Technical details: It will be conveyed via a number of fields (around 215) that will contain optional and mandatory information about the
product being transported, type of packaging used, weight, quantity, insurance, the permit of transportation provided to the hauling company
by the Secretary of Public transportation, plate and registration of the motor vehicle used, driver, as well as information about the recipient of
the products being transported within Mexico. The information of those fields will be filled via direct input by the taxpayers or in some cases
via the specific choices available in a set of catalogs established by the SAT.
• Penalties and Sanctions: non-compliance with this requirement will have several immediate consequences for the violators.

SAP GS’s position on Carta Porte Supplement
According to the new regulation, there are a couple of scenarios set by SAT as follows:
a. The CFDI is issued by the hauling companies. Then, a CFDI of Revenues (CFDI de Ingresos) with the Carta Porte supplement is
required.
➢ This scenario is supported today on SAP Business Network
➢ Note although we run the fiscal validation and conversion to cXML, we do not extract nor map any data from that supplement.
b. The CFDI is issued by the owner of goods transporting its own assets or the intermediaries and agents of transport. In these cases, a
Carta Porte supplement will be required as part of a CFDI of Transfers (CFDI de Traslado).
➢ This type of CFDI is NOT supported by SBN today as our focus has been on invoices, and credit/debit memos only. No
requested by customers either. No plans to support it any time soon. If you see this as a requirement, please raise an Influence
ticket with your business case to be analyzed by us.

CFDI - Services Invoices
• A CFDI can be referenced to a SES #, which is validated by AN.

❖ If validation fails, error “The service entry sheet ‘XXX' does not exist in Ariba Network.” is prompted
• User must also enter PO # and SES dates (start & end dates)
❖ If validation fails, error “A service entry sheet must contain the service entry sheet number, start and end dates of service.” is prompted
• User must also enter the corresponding PO Line-item # (Not SES line #) linked to each invoice item

Advance Payment (Anticipos)
SAT has established the way in which companies must issue invoices in certain Approach:
operations such as payment advances. According to SAT:
As there is no PO associated to an advance
• It is considered an operation with anticipos when parties do not know well the payment, then a Non-PO CFDI invoice must
good/service to be acquired or the price associated. be issued by the supplier.
• It is not considered anticipo when it refers to a guarantee or deposit that See procedure set by SAT here (Spanish)
guarantees the fulfillment of any condition, or when there is already agreement
on the price of a good/service and the buyer makes a partial payment.
• Two procedures were established for issuing CFDI regarding advance payment
when there are excess payments and when not.

Reuse CFDI invoice number through AN rule
This way, suppliers can submit their CFDI invoices with different addenda information until it is accepted by the system.
If a supplier creates a new Invoice, a new UUID will be assigned to it. So, suppliers cannot send CFDI invoices with the same UUID but different Invoice number.

The cXML resulting from CFDI conversion is slightly different from
the Invoice cXML created via PO-Flip
PO-Flipped Invoice CFDI-converted Invoice
No further address details come in CFDI invoices

Cont´d
Many Mexico-specific data captured through extrinsic fields.
Blank payload IDs, GTIN classification, and

no Good Receipt line-item reference.

History log of changes re Mexico Tax Invoicing add-on
2018 2019 2020 2021 2022
CFDI invoice
Redesign
Initial phase for Biz CFDI
payment receipts validations 4.0
cXML Support
Request to committee
Payment receipts
E-mail
cXML definition Specs Phase 2 (Network)
channel
Phase 2 (CIG) B&I

B&I SES ID
support fix
Preliminary gap LICM for
Tests for SCC
analysis for SCC Return PO
Fix re SCC Fixes
suppliers GLBs
• 2020 Transactional cXML flow for PR with basic reports will be available in Q3 as part of the AFR.
t
• Fixes for Go-Live Blockers: NP-22544 Cannot create Service Invoice in Tax Invoicing for IENOVA & NP-23337 Upload Screen should allow duplicate Line item reference for BP
• Enhancement: new e-mail channel for CFDI docs (GLO-450/NG-4793) WMG on Nov, GA on Q1-2022
• GLO-543/NG-5191 CFDI 4.0
INTERNAL History Log
1. GLO-278 Migration of Mexico Tax Invoicing from Quadrem ESP to AN (2018.09)
2. NG-1537 Ability for suppliers to enrich invoices by adding/editing business references in AN (Fix 2018.11)
3. NG-1968 (ref: GLO-413 / NP-18266): Fix Invoice enrichment step to fully support Non-PO Invoice flow (part 1) (Fix 1906w1)
4. GLO-287 Enhancements in AN to support Mexico tax Invoicing with Buying & Invoicing (GA 2019.06)
5. NG-138 (NP-22544) - Cannot create Service Invoice in Tax Invoicing (Fix 2003)
6. NG-1610 Upload Screen should allow duplicate Line item reference - Duplicate check removed from upload screen (Fix 2005)
7. GLO-343 Transactional support for Payment Receipt (GA Q2 2020)
8. GLO-483 Supplier Report support for Payment Receipts (GA Nov 2020)
9. NG-60 CFDI credit memo failure due to new flag (IsPriceAdjusmentInLine = True) added to Credit Memo cXML when TipoRelacion = 01 (Fixed 2010)
10. GLO-504 Mapping local taxes (deployed on Q3.2021 but not released as it fails in B&I)
11. GLO-450/NG-4793 New e-mail channel for CFDI docs (WMG on Nov, GA on Q1-2022)
12. NG-5083 Support for Carta Porte Supplement within CFDI de Ingresos
13. GLO-543/NG-5191 Support CFDI 4.0
14. Service Invoice issue for MX / CS20220003059022 / SR002075129400002402492022 - Walmart Go Live Blocker – Fix released on Aug 19, 2022
15. NG-6281 MX Disable CFDI invoice 3.3 creation flow (2023.Q1 release)

INTERNAL History Log (Cont’d)
16. NG-1396 Open API for 3rd party e-invoice integration (2023.Q4 release)
17. NG-6281 CFDI Invoice not referencing SES line number (Esentia SAP Case 5956131 / 2023 – fix 2309 release)

Follow us
www.sap.com/contactsap
© 2018 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/copyright for additional trademark information and notices.

Mexico Tax Invoicing Add-On

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Mexico Tax Invoicing Add-On

Uploaded by

Copyright:

Available Formats

Tax Invoicing add-on for Mexico

Overview & Demo

• PAC (“Proveedor Autorizado de Certificación”)

• CFDI (“Comprobante Fiscal Digital por Internet”)

• Payment receipt (“Complemento de Pago”)

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

In regards to integrations with other solutions:

In terms of roadmap, important changes are in progress:

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 4

Mexico tax invoice add-on

SAP Business Network

Fiscal CFDI >

SAP Business Network Core

PAC converts UUID is

User can add

Invoice to PAC stamped CFDI CFDI to AN

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 10

Browse local XML

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 11

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 12

Note: If the CFDI uploaded

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 16

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 17

• Credit memos must reference either InvoiceID = ’Serie+Folio’ or PO#

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 18

SAP GS will handle this legal change accordingly:

• This new version 4.0 is supported as GA since May 2022

• Further details can be found on KT NG-5191

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 19

Inbound invoice channels

Manual upload (available)

Localization done to manage

© 2019 SAP SE or an SAP affiliate company. All rights reserved. CONFIDENTIAL 20

Mailbox Mail Server Validations ANID Allocation Conversion AN rules

Manual Upload Email channel

1. No access required, but recommended to see status

7. Online support is provided via the supplier account 6. Idem

7. Buyer must provide proper support to suppliers that do not

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 22

© 2019 SAP SE or an SAP affiliate company. All rights reserved. CONFIDENTIAL 23

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 24

2. Buyer integrator activities

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 26

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 27

Typically, a payment receipt will include the following:

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 28

PAC converts UUID is Buyer legal

Supplier Supplier uploads

Received by the Buyer business

PAC converts UUID is Buyer legal

Received by the Buyer business

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 31

1. Support the Payment Receipt as a new transaction document in AN

2. Map CFDI Complemento de Pago to Payment Receipt cXML transaction document

3. A new routing configuration added for Payment Receipts

Official information here

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 32

5. Send notifications to suppliers on status updates

6. New AN report for Payment Receipts

Future enhancements (under consideration)

Ability to view, search, and download payment receipts on Ariba Network

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 33