The webcast was extremely well attended, with nearly all of the participants staying on line for the full hour, asking an unprecedented number of questions. As always we are happy to provide a complete transcript of the Q and A session.
1. Is there any way to prevent unauthorized users from seeing information from Ledgers they’re not allowed to work with?
Yes. If you’re not used to the security features in Oracle E-Business Suite R12, there’s a new entity called Data Access Sets, which is a list of lectures linked to a user or responsibility. The way this works is that a user logged in with a responsibility tied to a Data Access Set will only be able to see the lectures linked to that list. We are honoring this set up in our solution, so if you have a user logged in with a responsibility tied to a Data Access Set that includes two sub-ledgers, they will only be able to see information for those two sub-ledgers.
2. I understand from our Mexico accounting group that copies of invoices will also have to be provided? Do we need to provide these invoices upon request or should they be filed with the reports?
The files that need to be sent to the SAT do not include the full text of the invoices – that is, invoice documents are not to be sent. But you need to include the electronic document information for all the invoices accounted in the journal entries. So you need to provide the EDI, but not the full document. The invoice information is to be provided in the Journal Entry file that will be specifically required by the SAT. You don’t need to send it every month, but you need to have it available in case the SAT requires it.
There are three different files:
- Chart of Accounts file: to be presented by October 2014, and every time you make modifications afterwards
- Trial Balance file: required by January 2015, you need to present it every month with the information of that period
- Journal Entry file: sent only when the SAT requests it, contains invoice documents information
Yes. The regulation was published effective July 1st, it had an initial schedule that was laid out for several months, and later this initial schedule was changed. As to deadlines being extended, that is very difficult to say as the government is posting changes every month.
4. Are we no longer sending a copy of our COA (Chart of Accounts)?
Yes, you are actually sending that file with the mapping between your Chart of Accounts and the Grouping Codes published by the SAT. You need to do that by October 2014, and every time you introduce any modifications to your COA, such as creating a new account.
5. For the Trial Balances due in January 2015, which months are due? Are we submitting the data for July 2014 – December 2014?
The original schedule called for presenting the Trial Balance by October this year for the period July 2014 onwards. Now the deadline has been moved to January 2015, but you still need to present July to December 2014 information.
6. What kind of supporting information do I need to provide with the Journal Entry file? Are we talking about all the subledger transactions?
The Journal Entry file requires electronic invoice information for the payables and receivables documents, and also the date of the document, the description, its total amount. You need to be able to tie that information to the monthly Journal Entry file. That can be done through internal codes or identification numbers. This needs to be done starting January next year, so if you consider December is a short month typically, we’d say you need to do some testing and all, so it would be good to get the information ready by November.
7. Do you know how much time a company has to produce the Journal Entry Files once the SAT requests it?
We are not sure. Mexico’s SAT requirements usually are to be fulfilled very quickly.
8. How we can cover Gaps once tax requirements are retroactive from July and the system is not adapted with the DFF and setups to cover July or any period before the modifications are in place?
The SAT has already stated they won’t be requiring Journal Entry information for periods before January 2015, so you have plenty of time to implement the solution and adjust your data capturing processes to begin collecting that information. So by the time we get to the deadline you will have the information available in your system to provide to the SAT.
9. Do you provide the numbers in US GAAP/Mexico GAAP or tax reporting?
We provide the numbers in Tax reporting.
10. You say tax reporting, does that include the limitations on travel should be included in the numbers? Also what is the period for reporting in Jan-15?
SAT requires all transactions to be reported. The exact date of Jan-15 is still under discussion. It could be Jan 25th.
11. I’ve been told from our Mexico Finance Users that the government also requires supplemental reports with this new SAT requirement?
The SAT has not released any information about this.
12. Are there any specific requirements around customer and vendor invoices?
Yes, the requirement is to provide the electronic document information with the Journal Entry files. Each company generating electronic invoices has its own code (CFDI or UUID in English). Those codes need to be provided. You also need the fiscal identification, called RFC for each of the parties generating electronic documents (these are usually stored in the Taxpayer attribute on Oracle EBS).
13. There is another request to upload something called UUID to each supplier invoice. Do you have a solution for that? We are currently updating each supplier invoice manually.
Well that is exactly what needs to be done. The UUID is a code that identifies the taxpayer that is generating the document, and that information needs to be presented within the Journal Entry file. It’s good that you have that info on EBS.
14. Are you going to talk about how to get the CFDI number from the Sub Ledger transaction onto the GL Journal Entry? I believe that it is a requirement as well.
Oracle Applications keep an internal linkeage between all generated accounting postings and subledger transactions. CFDIs needs to be entered on the customer and vendor documents. Our solution provides a flexfield for that and we can help you automate the integration with any external system in case you want to automate that data entry.
15. Do I need to translate the description of my accounts in my primary Chart of Accounts to Spanish?
During the webcast we made a mistake and said “No,” but reality is that the SAT requires that all information is presented in Spanish. If your environment has Spanish language installed, the account names will be taken from your language. In case you don’t have Spanish installed, our solution allows to you enter the account names in Spanish into a new descriptive flexfield segment in the account record, so that you don’t need to install an additional language just for the sake of complying with this requirement.
16. If I have setup the accounting periods 5-4-4 weeks how I should I present to SAT?
Ok, here we are talking about a very common practice that divides the year into 12 periods with a regular number of weeks. So the first period has 4 weeks, the second 4 weeks and the third 5 weeks, regardless of the calendar. So for instance your first period in Q1 could be from January 1st to 25th, and the second period in Q1 from January 26th to February 27th, etc. That means that you’ll have Journal entries for January 30th, which is still January in the calendar year, but you are already on your second period in your fiscal year. So our solution doesn’t cover that option unless you are registering your transactions with the last date of the period. So if your fiscal period ends on January 25th, and you need to enter a Journal entry on January 26th, you should chose to enter it with the date January 25th. In that case, the solution will work.
17. What if not all of the required information is in our Oracle instance, as required by the government?
It’s clear that this solution is for customers working with Oracle General Ledger. In addition to that, there’s information stored in other modules, such as Oracle Payables and Accounts Receivable, that’s also required to complete the SAT regulations. The mapping between the accounts and the SAT grouping codes requires that you have your COA information in Oracle E-Business Suite.
The Trial Balance includes information from General Ledger account balances and transactions, so you already have that in GL. The problem is the Journal Entry file, because it requires invoice documents from customers, vendors and professional services. Many companies work with external solutions to generate the electronic invoice information, and then there are different ways to manage that information. Some send it back to Oracle EBS, so that on the invoice records in the E-Business Suite they also have the electronic document information. Some keep that information available in separate files in the operating system, they don’t send it back to EBS but the information is still available through integrations. And then there are companies that don’t have that information because it is stored in a manual system or a solution that cannot be integrated.
The solution we have created assumes that all information will be available in Oracle Financials. For those companies who have that information stored anywhere else, we can build an additional integration.
18. Why not just use a secondary ledger and map primary to secondary (SAT Chart)?
You can do that, you would basically be replicating the account information, but you still need to generate the XML files. However, the cost of maintaining a secondary ledger is way higher that just mapping the accounts to the SAT grouping codes.
19. Does this solution work for E-Business Suite 11.5.9?
We are developing this solution for Oracle R12, but the differences are not very significant, so we plan to offer additional adjustment services to customers still using Oracle 11i.
20. Under which responsibility are the 3 XML interface programs are available?
That will be up to you. This is a solution that we are offering as a customization, and it can be installed in any request group or responsibility. By default, our installation process is on the default GL reporting group, but we provide instructions to make it available to others, so you can run your reports from any group or responsibility that makes sense to you.
21. How many grouping codes are there? Are they generic?
There are actually 75 grouping codes, with additional accounts for some of them (adding up to 200).
22. Where can we get more information on SAT’s Grouping Codes?
Those were published with the SAT regulations on July 1st, it’s a document called Annex 24 (or Anexo 24 in Spanish). You can get it in Diario Oficial de la Federación which publish all modifications to Mexican Law. Additional information will be in SAT website www.sat.gob.mx
23. Should the changes be applied in the statutory book instead of the corporate book once we report statutory to SAT?
You don’t have to go to the statutory book; the solution can work in both books. The issue is you will have to review the functional currency that you have, as the statutory book will have Mexican pesos, while the corporate book might have a foreign currency. In any way, the Trial Balance will can be submitted from any ledger, if both are in Pesos you can choose whichever book you want, as long as it is in Pesos.
24. Will ITC provide upgrades to the solution in case the SAT modifies the regulation?
We will analyze all future modifications and new requirements as soon as they’re published. Initially, our goal is to keep the solution current and apply new details as they arise, provided they are related to the current set of requirements.
25. How will you provide support to the installation and testing processes?
We provide complete Installation, System Administration and User Guides, and we give you access to a support email account that will help you address all your issues with our support team. We also offer the possibility to coordinate online support during your installation.
26. How long would it take to implement and test the solution? What is the estimated cost?
Implementation of this solution only requires 1 or 2 hours to install. The process is simple with the accounts are mapped to the grouping codes (another hour if you already completed the mapping in an Excel sheet). Of course the process varies depending on your specific needs and system set up. To get a full quote, please contact us.
27. Are the new processes out of Oracle?
No, it is a specially tailored Oracle E-Business Suite solution.
28. Can this solution be used in other countries, France for an example?
It’s a custom development made to comply with this regulation for Mexico, but if it can be used for any purpose in other country, there’s no technical reason why it wouldn’t work. So, the answer is yes.
Don’t Let SAT’s Regulations Catch You Sitting Down!
For Spanish speaking Oracle E-Business Suite users IT Convergence is hosting an encore presentation of the webast “¿Cómo Cumplir con los Nuevos Requerimientos fiscales de México?“ on September 9th at 10:00 am Mexico Time/11:00 am Eastern Standard Time.
If found this post after the webcasts but are still interested in seeing a demo of this solution, simply click here to visit our Contact Us page and we’ll be happy to set one up. Finally, if you have needs that go beyond complying with Mexico’s new SAT electronic transaction accounting requirements, please check out or Oracle consulting services for Latin America in English and/or Spanish.