SAP Orders to Cash - AR Strategies

April 25, 2015 Karen Marchione

E-Invoicing in Latin America, such as Brazil NFe, Chile DTE and Mexico CFDI, is a series of business processes that include your company, your customers, and the government. In many of these countries, you cannot ship, that is right, you cannot ship until a government approved copy of the invoice is on the truckAs you evaluate vendors be sure you cover these mission-critical strategies or you will find your truck sitting at the warehouse, customers not paying your bill, and paying extensive fines when you get audited.

On-Premise Contingency Processes – When the networks are down or the government systems are slow – the only way to ship is by having on-premise contingency. This process allows you to print a provisional paper document and legally ship. When the systems come back on line, your solution should automatically reconcile the provisional invoices or your team will be doing it manually via spreadsheets. Be careful and be thourough - one mistake could mean massive financial penalties. 

Automated Cancellation/Correction Notices – You can’t just change an invoice after it has been created, as the tax obligations have been registered in the government servers. For example, in Brazil it is a common practice for your customer to deny your truck entry to their manufacturing facility if the Nota Fiscal is invalid.  Therefore, you need an automated way to manage the cancellation and change process - this means a solution needs to be embedded into the SAP ERP processes.

Data Extraction – It is not easy to force your company's way of managing data into rigid government XML. If a solution forces you to do all the data extraction and pass them a file – the solution also just passed 80% of the work, support issues, and change management to your team.

Customer Specifics - Your end customer in any country may have requirements that make you go above and beyond the government XML.  For example, in Mexico you have to deal with customer-specific Addenda as well as changing PDF requirements.  In addition to the government requirements, you will still need to deal with these additonal customer specific customizations.  An enterprise vendor will manage the customer specifics and, more importantly, keep up with them as part of maintenance.

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