How You Configure Chart of Accounts for Mexico Report

The Chart of Accounts for Mexico report displays all the mapped accounts of your company and the corresponding SAT accounts in XML format.

Before you run the Chart of Accounts for Mexico report process, you must complete these setup steps:

• Set up the company's Taxpayer Identification Registry (RFC)

• Define a value set and values for the company segment

• Define a value set and values for the account segment

• Define the contra account for Mexico

• Define a value set and values for the contra account segment

• Define the chart of accounts

• Define the chart of accounts mapping

Set Up Taxpayer Identification Registry for the Company

Update the legal entity to specify the taxpayer identification registry (RFC).

Sign in as an Application_Implementation_Consultant user and navigate to the Setup and Maintenance page.

In the Setup and Maintenance work area, select these options:

• Offering: Financials

• Functional area: Legal Structures

• Task: Manage Legal Entity Registrations

To register a legal entity, you need to select it from the Selected Scope List. If the required legal entity isn't in the list, select the option Select and Add. The list of all the legal entities defined in the application is displayed. Select the one defined for Mexico and click Apply and Go to Task.

After the selected scope is set, the page for the Legal Entity Registration opens for the selected legal entity. To define the RFC, click the Edit button.

Note: If RFC value isn't specified in the Legal Entity Registration, RFC will be blank in Journals for Mexico report.

Define Value Set and Values for Company Segment

1. Sign in as an Application_Implementation_Consultant user and navigate to the Setup and Maintenance page.

2. In the Setup and Maintenance work area, select these options:

   • Offering: Financials

   • Functional area: Financial Reporting Structures

   • Task: Manage Chart of Accounts Value Set

3. Click the Create icon or Action > Create to create a new value set.

4. Search the value set you just created and then click Manage Values.

5. On the Manage Values page, click Create to add a value.

Define Value Set and Values for Account Segment

Just as you created the value set for company segment, use the Manage Chart of Accounts Value Set page to create a value set for the account segment. Use the Manage Values page to create the values for the account segment value set.

It is preferable to enter the GL Accounts after the Chart of Accounts structure is defined and the value set is assigned to the Natural Account segment. This helps you to define all the qualifiers for each account.

Note: To correctly map the source accounts of your company to the SAT target accounts, don't define the SAT level 1 accounts (such as 1, 2, 3 and so on) as parents of SAT level 2 accounts (such as 1.1, 1.2, 2.1, and so on). The SAT account segment doesn't require a hierarchy definition.

Define Contra Account for Mexico

The contra account segment label indicates the contra accounts that are reported in the Chart of Accounts for Mexico report. A contra account is an account used in an account ledger to reduce the value of a related account. The natural balance of a contra account is opposite of the associated account.

Define contra accounts (rectifier accounts) for offset account types such as assets, liabilities, and owner equity. You must correctly identify and mark your contra accounts.

In the Chart of Accounts for Mexico report, the contra accounts are displayed in the Natur field of the Ctas element with reversed values. Let this table give you an idea. Here, D stands for debit and A stands for credit.

Account Type Code	Description	Debit or Credit	Field Value
A	Assets	DR	D
A	Rectifier Assets	CR	A
L	Liability	CR	A
L	Rectifier Liability	DR	D
O	Owner Equity	CR	A
O	Rectifier Owner Equity	DR	D
E	Expense	DR	D
R	Revenue	CR	A

Use the Manage Segment Labels page to create a new contra segment for Mexico.

1. Sign in as an Application_Implementation_Consultant User and navigate to the Setup and Maintenance page.

2. In the Setup and Maintenance work area, select these options:

   • Offering: Financials

   • Functional area: Financial Reporting Structures

   • Task: Manage Chart of Accounts Structures

3. Search for the key flexfield name.

4. Select the flexfield and then select Action > Manage Segment Labels.

5. Add a new row for MX_CONTRA_ACCOUNT.

Define Value Set and Values for Contra Account Segment

Use the Manage Chart of Accounts Value Set page to create a value set for the contra account segment. Use the Manage Values page to create the values for the contra account segment value set. Y as the contra account segment value indicates that the contra accounts will report the Natur field (of element Ctas) with reversed values.

Define Chart of Accounts

Define the SAT chart of accounts for Mexico and include these segments:

• Company account segment

• Account segment

• Contra account segment

1. Sign in as an Application_Implementation_Consultant User and navigate to the Setup and Maintenance page.

2. In the Setup and Maintenance work area, select these options:

   • Offering: Financials

   • Functional area: Financial Reporting Structures

   • Task: Manage Chart of Accounts Structures

3. Search for the key flexfield name.

4. Select the flexfield and then click Manage Structures.

5. On the Manage Key Flexfield Structures page, click the Create icon or Action > Create to create a new chart of accounts structure.

6. Save the chart of accounts structure.

7. Create account segments for company, account, and contra account with the relative qualifiers.

After adding all the required segments, define the Accounting Flexfield structure instance.

1. On the Manage Chart of Accounts Structures page, click Manage Structure Instances.

2. Select the required chart of accounts structure and click the Edit icon.

3. Open each segment in edit mode and select the Required and BI enabled check boxes.

After setting the flexfield structure instance and adding all the natural accounts, you must deploy the accounting flexfield.

1. Select the accounting flexfield on the Manage Chart of Accounts Structures page.

2. Click Deploy Flexfield.

Define Chart of Accounts Mapping

Define the chart of accounts mapping with source as the primary chart of accounts of your company and target as the SAT chart of accounts.

Follow these steps:

1. Sign in as an Application_Implementation_Consultant User and navigate to the Setup and Maintenance page.

2. In the Setup and Maintenance work area, select these options:

   • Offering: Financials

   • Functional area: Financial Reporting Structures

   • Show: All Tasks

   • Task: Manage Chart of Accounts Mappings

3. Click the Create icon to create a new mapping.

It is recommended that you map the natural account segment values between the chart of accounts of your company and the SAT chart of account. You can do this in multiple ways:

• Assign single value as the mapping method for the company target segment.

• Use rollup rules as the mapping method and Account as the source segment for the account target segment.

• Use rollup rules as the mapping method and Account as the source segment for the contra account target segment.

If the source accounts are contra in nature, create a rollup rule. Map the target value to the source account values (the primary chart of accounts).

To complete the mapping, follow these steps:

1. Click the Segment Rules tab.

   • In the Rollup Rules, enter Y as the target value and assign the from and to values for the accounts.

2. Click the Account Rules tab.

   1. Enter the target SAT account.

   2. Specify the source account using the filter conditions.