Mexico e-Invoicing and e-Accounting Definitions
Mexico is one of the most sophisticated countries in the world, with its mandates reaching into five key areas: accounts receivable, accounts payable, electronic accounting, logistics, and human resources. Below we've put together a list of common terms used for compliance in Mexico:
- Addenda – Additional information on an invoice mostly utilized for commercial matters.
- Amparo – A means of constitutional defense of the Mexican legal system. Amparos were granted by the Mexican government for companies that wanted to temporarily delay electronic accounting legislation (eContabilidad).
- Archiving – All documents must be archived for five years.
- Buzón Tributario - An online communication service to share digital documents with the tax authorities.
- CFDI (Comprobante Fiscal Digital por Internet) – The electronic billing schema defined by the Mexican federal tax code.
- Cadena Original – Sequence of data that contains information in the CFDI. With your cadena orignal and digital certificate, you can generate the sello digital certificado.
- Carte Porta – The bill of lading that justifies the transfer of goods from a source to a destination specified by the customer/supplier.
- Código de Barras Bidimensional QR – Paper invoices must include this two-dimensional bar code format under the QR Code (Quick Response Code) described in ISO / IEC18004 standard.
- Contabilidad Electrónica aka eContabilidad (Electronic Accounting) – Required electronic accounting reports for chart of accounts, trial balances and journal entries which need to be linked to government CFDI XML approval codes known as UUID.
- FIEL (Firma Electrónica Avanzada) – The advanced electronic signature certificate used to authenticate the tax payer.
- MIRO/MIGO automation: Three-way match which guarantees that the purchase order, goods receipt and supplier invoice are identical. Any deviations can trigger audits and result in fines, penalties and lost tax deductions.
- Nomina Electrónica – Electronic payroll receipts that must be validated before it is possible to deduct taxes, this is retroactive and effective as of January 1, 2014.
- RFC (Registro Federal de Contribuyentes – Mexican tax identification number.
- SAT (Servicio de Administración Tributaria) – Mexican federal tax administration.
- Sello Digital Certificado – Stamp used to verify the origin of the electronic invoice. This stamp validates that the invoice is not falsified.
- Timbre Fiscal – The process in assigning the UUID folio and the digital signature when the electronic invoice is generated.
- PAC (Authorized Certification Provider) – A provider capable of producing the Timbre Fiscal. In other words, PACs can sign on behalf of the government. This does not entail the complex process of mapping you ERP master data to the Mexican government format.
- Pedimento – The import number that must be applied to invoices.
- UUID (Universally Unique Identifier) – The alphanumeric number made up of 36 characters that expresses the fiscal folio of the transaction. It is assigned to the CFDI once the PAC validates it and approves the invoice.
- XML (Extensible Markup Language) – The required standard schema for electronic invoices.
To learn more about the latest requirements in Mexico, please download our Mexico mandate checklist