JD Edwards implementations in Mexico have changed…a lot.
Few years ago, Mexico used to be the simplest country in the region, the example of a quick roll-out project with low risk, a fast project with a couple of legal requirements to comply with. Well, that is not the case anymore.
Mexico tax authority, the SAT, has issued in the last years important laws, applicable to every company and industry in Mexico, that have considerably changed the way taxes need to be reported, and the quantity of information that needs to be sent to the government.
Those laws have clearly showed to Mexican tax contributors that all the electronic files requested are checked, that information is crossed, and that tax fines exist when figures do not look correct to the SAT.
In this context, JD Edwards clients had to find the way for complying with these new requirements. Many of them started doing customization, as Oracle did not develop all of them. Unfortunately, laws had several changes during the years, and maintaining these customizations has been costly…and you never know when another change will happen, or what could change.
So which is the best way to handle new Mexico requirements in JD Edwards? How could we avoid a costly maintenance?
For answering that question, it is important to understand first what JD Edwards provides, what the Oracle localization offers, remember the best practice is to use the standard localization for always taking advantage of Oracle future updates.
Oracle Localization functionalities are:
- VAT calculation.
- VAT journal entries (there are additional JEs for VAT in Mexico, and localization AAIs for this).
- A/P withholdings.
- Electronic Accounting Reports for Mexico (COA catalog, Trial Balance, Journal Entries)
- Manual UUID update for vouchers and invoices.
Now, it is also important to understand the requirements the localization does not meet:
- Electronic Invoice Integration between JD Edwards and PAC software. In Mexico every company is obliged to use a “PAC vendor or software” for approving and validating invoice issued and received. Then, JDE needs to generate a file with the invoice, send it to the PAC for the approval process, and then receive it back for updating the approval number (called UUID field) in JD Edwards again.
- UUID field automatic update on every journal entry for vouchers, invoices, payments and A/R receipts (SAT e-invoice authorization number)
- New law “CFDI 3.3” now request more files/sections generation: Payment Complement file, MX BOL file, Exports complement file.
- “Pedimento” number entry (Customs declaration number) in Purchase Order Processing receipts.
- Pedimento number print in sales invoice.
- E-withholdings report (TXT file)
- DIOT report (in TXT format)
- Voucher Automation entry: for quickly entering xml files you receive into JD Edwards. Not actually a mandatory requirement, but it definitely avoids manual errors when entering the 36-digit UUID code on every voucher manually, apart from accelerating the process.
All requirements above are complex, and mean customization. They could also have a future change, that will mean more customization.
There are Oracle Validated Integration solutions that can help your company quickly solve tax requirements in Mexico. Oracle Validated Integration is a program Oracle has created for certifying that vendors solutions have been developed using Oracle best practices, and that work as documented. There are OVI solutions for solving Mexico additional functionalities needed.
The solution is a CONFIGURABLE integration between JD Edwards and Mexico PACs, that allows you to build or setup the integration file your PAC requires (not matter which PAC you hired). It is not a fix integration, you create the mapping, and you can also change it in the future. The tool allows you to map JDE tables linked to the invoice print program (SOP or A/R), and you can also create your own custom fields. The main benefit is the fact that you could avoid development in the future, by simply deleting fields, and adding new ones just with configuration. The solution includes invoice file generation, payment complement, exports complement, BOL file generation, UUID automatic update. The solution has passed the OVI program for versions 9.1 and 9.2, but can also be installed in older releases.
Find more information about the solution in Oracle’s website, solutions catalog: https://solutions.oracle.com/scwar/scr/Solution/SCSP-JQHBWVUH.html
The solution allows you to automatically import the xml files received from Mexico suppliers, entering them into JD Edwards Accounts Payable module, and updating not only standard voucher information but also the 36-digit UUID code in every voucher, needed for complying with Electronic Accounting law.
Find more information about the solution in Oracle’s website, solutions catalog: https://solutions.oracle.com/scwar/scr/Solution/SCSP-RBPFAHGT.html
This is a configurable integration, that allows the user to create all the different bank formats they work with, for generating massive payment files. Those files can then be imported into the bank applications or websites. The solution is not licensed by company, and not limited to Mexico, so you could use it in other JDE countries.
Find more information about the solution in Oracle’s website, solutions catalog: https://solutions.oracle.com/scwar/scr/Solution/SCSP-UJANWJXG.html
Despite all the new laws to comply with, when you are well guided and you know the best way to approach an implementation in another country, such as in Mexico in this case, a quick and low risk implementation is still possible.