Understanding Legal Concepts for Mexico

You must set up your system with the legally required reporting codes (concepts) for VAT and income withholding. The system uses the legal codes on the supplier withholding certificate that you generate for VAT and income withholding. You obtain the legal codes from the government.

Because you might need to set up multiple withholding rates for a legal concept, you can set up the legally required codes and then associate them with the withholding codes (concepts). You can associate multiple withholding codes to a legal concept.

You use the Work with Legal Concepts program (P76M001) to set up legal constants. You can manually set up legal concepts, or you can import the codes from a MicroSoft Excel© spreadsheet. The system saves the legal concepts to the Withholding Legal Concepts table (F76M001). You cannot delete a legal concept after you associate a withholding concept to it.