Mexican Fiscal Requirements Enhancement for Sage X3

Tax Management for Sage X3 in Mexico

Southeast Computer Solutions designed the Mexican Fiscal Requirements Enhancement custom-programmed specifically for businesses that run Sage X3 in their home country and have at least one subsidiary in Mexico. The add-on allows companies to meet the tax reporting requirements of the Mexican Tax Authority (SAT – “Servicio de Administración Tributaria”).

Queries and Reports

• IVA Efectivamente Pagado (VAT Paid) – available in summary and detail mode
• IVA Efectivamente Cobrado (VAT Collected) – available in summary and detail mode.
• DIOT (Declaración Informativa de Operaciones con Terceros)– this required report is a detailed declaration of monthly activities with third-party service providers. A specific file form provides a company’s purchasing and sales activities with third parties; the Mexican Tax Authority then requires a specific file format to be uploaded to their web portal, which the Sage Enterprise Management Mexican Fiscal Requirements Enhancement generates.

Electronic Invoicing

Electronic invoicing allows Sage X3 users to satisfy mandatory requirements of the SAT tax office, including generating electronic documents for invoices, credit memos, and debit memos. It also supports integration with third-party Authorized Certification Providers, which allows users to sign and save documents digitally to ensure authenticity and integrity.

Retentions

The Sage X3 Mexican Fiscal Requirements Enhancement performs payment withholdings for earnings tax and value-added tax to be compliant with current Mexican Fiscal Requirements Enhancement; it handles the withholdings by configuring vendors and retention codes as well as issuing required certificates and reports.

Retention management includes configuration, payments traceability, vendor retention accruals, queries, and reports to SAT retentions performed during the period. It also includes historic retentions data management.

ISR Reporting (Impuesto Sobre la Renta)

An ISR report calculates the period income by deducting corresponding expenses minus losses pro-rated from prior years. It also manages a variety of rules, such as the monthly sales tax based on income payments.

Distribution Localization

Pedimentos Traceability

A pedimento is the most relevant customs form that Mexican importers and exporters use for the international trade of goods; when a company in Mexico purchases previously imported goods, it must ensure that it has a pedimento number, date, and importation location. 

The pedimento form stores specific information about the goods, including the description, quantity, classification, origin, value, weight, and size. It also includes parties involved, such as the importer, exporter, customs broker, and freight forwarder as well as the places involved, like the port of entry, place of delivery, place of shipment, and the use of free trade agreements.

In addition to capturing the aforementioned information, the Sage X3 Fiscal Requirements Enhancement offers the ability to trace the life cycle of the imported products by matching the item on the receipt of goods with pedimento information and sorting it with serial/lot for items received.

The pedimento is also a part of the company's fiscal records, as it includes information about the fiscal duties, taxes, fees, and their payment.

IMMEX Program Compliance

The Mexican government offers certain tax benefits to companies that import goods temporarily. This program is called Programa para la Industria Manufacturera, Maquiladora y de Servicios de Exportación (IMMEX). The ERP user must control and manage information regarding those goods in order to report and receive the benefits. Participating in this program also allows companies to receive a preferential duty rate of 0%. This IMMEX program is used in conjunction of the pedimentos traceability.

Several reports need to be produced and provided to the authorities to stay compliant and to continue benefitting from the different incentives.

Accounting Enhancements & Modifications

Sage X3 Mexican Fiscal Requirements Enhancement provides:

• Local tax configuration
• Mexico general ledger accounts
• Regional language adaptations
• Local payment methods and conditions
• Extended company name field

Sage X3 - The Mexican Market

Staying compliant with the Mexican Tax Authority while being headquartered in another country isn’t easy. With the Sage X3 Mexican Fiscal Requirements Enhancement created by Southeast Computer Solutions, however, it can be easier. The custom program allows you to obtain the tax information required by the Mexican Tax Office and provides reporting and calculations for the necessary taxes. It also compiles information into the reports necessary to meet the Mexican government’s strict tax regulations.

Since 1985, Southeast Computer Solutions has been consulting and implementing Sage Software Solutions throughout the United States, the Caribbean, and Latin America. Our multi-lingual – English, Spanish, Portuguese, Italian, and French – consultants and support staff serve as liaisons between Sage Software tech support and the end user to ensure nothing ends up lost in translation.