Latin America is known for strict regulations when it comes to e-invoicing. Watch this informative webinar to learn the top five best practices for deploying electronic invoicing in Latin America and understand: • The latest invoicing mandates in Mexico, Brazil, Chile and Argentina • Differences between In-Country and Cross-Border Invoices • Supplier Collaboration best practices • Beyond invoicing: Supply Chain Finance and Electronic Payments

1. INVOICEWARE INTERNATIONAL © 2013
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Invoiceware International
The Leader in Latin America eInvoicing Compliance
Lower Total Cost of Ownership
• One Platform, multiple countries – Brazil, Mexico,
Argentina, Chile
• Minimal Internal Resources
• Simplified Architecture
• Fixed, Predictable Cost Today & Through Changes
Production Support
• Invoiceware a phone call away for day to day calls
• English, Spanish or Portuguese
• End to End Support – including SAP issues
Change Management
• Ongoing Changes Included (including both software &
consulting)
• Local teams work with the governments (i.e. SEFAZ, SAT, AFIP, SII)
• Remove dependency on Internal Resources to keep
system updated

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Latin America eInvoicing
Understanding the Basic Differences to other Regions of the World
 Different Types of Countries
 Mandated electronic invoicing
 Brazil
 Mexico
 Argentina
 Expanding Countries
 Chile
 Guatemala, Uruguay, Costa Rica
 Colombia
 Domestic versus Cross Border
• Domestic equals VAT tax and is subject to country
mandates
• Cross Border is predominately paper
 Mandates Constantly Evolve
• Can change 3-4 times per year as the tax regulations
evolve
• Average multinational spends 2600 hours a year
managing Brazil issues versus an avg. of 80 hours a
year in other countries

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Latin America e-Invoicing Gov’t Mandates
Eliminate Common Roadblocks
Government in LATAM
• Mandates the use of electronic invoices
• Mandates that supplier must make e-Invoice available to Buyer
• Mandates the Format of the Invoice
• Requirement of Supplier Invoice: Approved and Accompany the Truck
• Increases accuracy of what was ordered, shipped and invoiced
• Invoice can arrive even before the Goods
Paper Invoices Supplier Rollout Multiple Formats Accuracy Timing
X X X X X

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How to Approach Latin America
Government Compliance vs. Commercial Compliance
Compliance - Okay to Deduct
 Avoid ~$250 fine per invalid invoice
 The e-Invoice received must match the e-Invoice previously
registered with the Tax Authority.
 Valid invoice = Okay to Deduct VAT on remittances to
Government.
Account Payables Efficiency – Okay to Pay
 If PO backed, does invoice = PO = Goods Receipt?
 If not PO backed, does commodity manager or buyer approve?
 Have the Goods Arrived and been processed?
Working Capital Optimization
 Inability to optimize cash flow (e.g., Missed Discounts)
 Liquidity concerns for supplier operations
 Short-term investment of Cash

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Mexico eInvoicing
Compliance Update
December 31, 2013
 CFD is Repealed
 There is NO “Grandfather” clause –
everyone must switch
 Includes all current CFD Users
 CBB (paper) allowed only for companies >
$250K Peso (~20K US Dollars)

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Mexico e-Invoicing: Mandated Inbound Validation
Country Moves to CFDI
Mexico SAT - Real-Time Compliance Mandates
• Real time integration – legacy was a batch process
• Invoices must be registered and approved before being sent
• Printed CFDI is also a valid, legal invoice, XML must be archived for 5 Years
• CFDI may be received electronically in advance. Must be validated as authentic before payment.
• Each outbound e-Invoicing solution must also provide for inbound validation as well
• IMPORTANT: Step 6 – You do not want to pay invalid invoices – Audit Risk & You Assume Tax Issue
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Real-Time E-Invoicing
Baseline Compliance Process Sets the Stage for Straight Through Processing
Brazil Real-Time Compliance Mandates
• Real time integration with Brazilian Tax Authority (SEFAZ)
• For Accounts Payable – Goods Nota Fiscal, Service Invoices at City Level & CTe - Transporation
• NF-e received electronically by recipient in advance. Must be validated and any returns accounted
for via “return order process”
• SEFAZ does not validate your taxes in real time but they do data-mine to check later
• Brazilian companies are responsible for accurate taxes of their suppliers as well
Paper
Electronic
Inbound A/P
• Paper not authoritative for
compliance
• Suppliers must provide XML
electronically
• Step 6 (required) sets up
opportunity for automated
matching & “straight-though”
processing.
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NFE Events
Bi-Directional Process Orchestration with SEFAZ as the Mediator Between Parties
SEFAZ Solution – Two Way Process Orchestration via NFE “events”
• NFE is acknowledged by the receiving CNPJ through event posted back to SEFAZ.
• NFE must be acknowledged within 180 days initially, and eventually before shipment as phased roll-out progresses.
• Greater burden on receiving CNPJ, but many large receiving CNPJ are pushing for these changes to guard against
ghost transactions in the first place.
• Solution very similar to EMCS for Alcohol/Tobacco/Energy within Europe
Draft, subject to change

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Multiple Local
Vendors
VAT
Tax Remittance
Domestic e-invoice &
Cross Border
 Different e-invoicing provider in each country
 Complex legislation equals high internal support costs
 Domestic Invoices subject to electronic mandates
 Cross-Border – still predominately paper
 Supplier VAT deductible only from gov’t valid invoices
 Coordination of Credit/Debit notes to adjust gov’t
registered taxes once goods accepted
 PO usage on the rise but still low
 E-invoice formats don’t support “Straight Through
Processing” – need ability to append data
Common Challenges for Multinationals
PO Usage
“STP” Capability
Supplier
Collaboration
 Master Data & Onboarding Requirements
 Payment Status, PO Append, Dispute
Management, Supply Chain Finance

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Regional Compliance
 Multi-Country Support
 Domestic Buyer Side
Mandates:
• Brazil – NFe, NFS, CTe,
MDFe
• Mexico
• Chile
• Argentina
 Guaranteed e-invoice
Compliance
Automation & Workflow
 Purchase Order & Goods
Receipt Matching
 Line Item Matching for Tax
Rate Issues –to request
need for Credit/Debit
 Data Append: Suppliers add
PO & Other Matching Info
to Invoice (i.e. Mexico
Addenda)
Comprehensive
 Support Electronic In Country
Mandates
 Cross-Border & In Country
Paper (CloudScan)
 No supplier fees to inhibit
adoption
 Onboarding and & Master
Data Collection for Supplier
Management
 Supply Chain Finance
Partnership with Tradeshift
Regional Latin America Shared Services Platform

11. Tradeshift Business Cloud
Connecting companies, creating value and empowering business
Electronic Invoicing
& Data Capture
Workflow
Financial Services
Enterprise
Management
• There are no barriers to join, all companies
can sign up and start sending business
documents for free.
• Buyers and sellers can interact and
collaborate in real-time.
 A rapidly growing eco-system of
applications supporting electronic invoice
presentment and payment (EIPP)
processes.
 Companies can extend business
processes onto Tradeshift by installing or
building their own apps.

13. Capturing both Electronic & Paper Invoices
ERP
Scanned & PDF invoices Validated e-Invoice
Onboarding
Learns invoice formats
automatically
Advanced heuristics with
machine learning and
discovery abilities to
recognize and remember new
invoice formats.
Exceptional data quality,
validated by suppliers
Exceptions flagged by the
Business Firewall. Suppliers
corrects the exceptions and
sign-off on the conversion
prior to submission.
First step to e-Invoicing
It’s an onboarding tool to
convert PDF and paper
senders to submit
electronically.

14. Tradeshift is Configurable…
Entities
Entities are legal
business units and are
the way in which we
model enterprises on
Tradeshift
1
Validation rules
The rules that define what
is required on a
document in order to
optimize processing - are
typically branch and
supplier group specific.
3
Supplier groups
Predefined groups of
suppliers, who have
similar characteristics
regarding the way in
which they send
documents
2

15. …Global

16. ...and Extensible
TRADESHIFT BUSINESS CLOUD
Invoicing
Purchase
Orders
SupplyChain
Financing
Dynamic
Discounting
Compliance
CloudScan®
Collaboration
&Workflow
Vendor
Management
Yourown
apps
Supplier Buyer

17. Connect with all trading
partners via one common
business platform
Deliver business
documents electronically
into ERP system
Automate business
processes
Future-proof new
business needs

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Regional Compliance
 Multi-Country Support
 Domestic Buyer Side
Mandates:
• Brazil – NFe, NFS, CTe,
MDFe
• Mexico
• Chile
• Argentina
 Guaranteed e-invoice
Compliance
Automation & Workflow
 Purchase Order & Goods
Receipt Matching
 Line Item Matching for Tax
Rate Issues –to request
need for Credit/Debit
 Data Append: Suppliers add
PO & Other Matching Info
to Invoice (i.e. Mexico
Addenda)
Comprehensive
 Support Electronic In Country
Mandates
 Cross-Border & In Country
Paper (CloudScan)
 No supplier fees to inhibit
adoption
 Onboarding and & Master
Data Collection for Supplier
Management
 Supply Chain Finance
Invoiceware & Tradeshift
Regional Latin America Shared Services Platform