Mexico Compliance Features (Mexico Compliance SuiteApp)

Important:

The Mexico Compliance SuiteApp is not compatible with the SuiteTax feature. If the SuiteTax feature is enabled in your NetSuite account, please do not install this SuiteApp.

The Mexico Compliance SuiteApp provides custom fields, validations, and other customizations for Mexican businesses to comply with tax and other government requirements in Mexico. These requirements are defined in the Mexican VAT law, Ley del Impuesto al Valor Agregado, published on July 12, 2009.

Note:

The Mexico Compliance SuiteApp is intended to be used with the Tax Audit Files SuiteApp, which provides the Mexico DIOT and Electronic Accounting feature, and the International Tax Reports SuiteApp, which provides the tax code properties used for Mexico tax codes.

The Mexico Compliance SuiteApp includes the following:

• Mexico Compliance Custom Roles

• Mexico Compliance Custom Fields

• Mexico Compliance Validations

• Mexico Compliance Validation Tool

• Mexico Compliance Vendor Payment Method

Mexico Compliance Custom Roles

To use the Mexico features, you can use any of the following custom roles that are included in the Mexico Compliance SuiteApp:

• Mexico Accountant

• Mexico A/P Clerk

• Mexico A/R Clerk

• Mexico Bookkeeper

• Mexico CEO

• Mexico CFO

If you want to use your own customized role, make sure that the role has these permissions:

Subtab	Permission	Level
Lists	Subsidiary	View
Lists	Tax Items	View

You can set permissions for a role by going to the Permissions subtab of the Role record. For more information, see Customizing or Creating NetSuite Roles. For information about access levels, see Access Levels for Permissions.

Mexico Compliance Custom Fields

The Mexico Compliance SuiteApp provides the following custom fields:

Field name
RFC	Available on the following records: - Employee - Vendor - Customer
Operation Type	Available on the following records for Mexico company or subsidiary only: - Purchase Order - Vendor Bill - Expense Report - Vendor Credit
Vendor	Available on the following records: - Expense Report

Mexico Compliance Validations

The Mexico Compliance SuiteApp validates the following fields:

Field name
RFC (custom field)	The Registro Federal de Contribuyentes (RFC) code is required for DIOT reporting. The system checks the format and length of the RFC code. Customer, vendor, and employee records can be saved without an RFC code. Customer, vendor, and employee records cannot be saved if the format and length of the RFC code are incorrect. The system does not perform RFC check digit validation. Company type entity records can be saved with the generic RFC code for foreign entities.
Operation Type (custom field)	The operation type for a transaction is required for DIOT reporting. Allowable values are Professional Services, Real Estate Leasing, or Others. Real Estate Leasing is not available in the Operation Type dropdown list for foreign vendors and foreign employees. If you save the record without an operation type, the system will use Others as the default value, and this is what will be reported in the DIOT file.
Country (standard field on vendor record)	If a vendor is Mexican, transactions for that vendor are included in the DIOT file. In OneWorld accounts, if no billing address country is found on the vendor record, the system will look at the subsidiary country to check if the vendor is Mexican. If you do not have a OneWorld account, the system will assume the vendor is in Mexico if there is no billing address country on the vendor record.
Tax code (standard field on transactions)	The system runs the Mexico compliance tax code validation on vendor bills, vendor credits, expense reports, checks, and credit card transactions for Mexico companies or subsidiaries. If a transaction has no tax code, or if the tax code is marked as Exclude from VAT reports, the transaction will not be included in the DIOT file. Tax codes with the Import property are allowed only on transactions for a non-Mexican vendor. Non-import tax codes are allowed only on transactions for Mexican vendors. The system runs the Mexico compliance tax code validation only on manually created transactions on the user interface, not during data import.
Vendor (custom field on expense report)	The vendor name is not required when saving an expense report in NetSuite. The vendor name is required for all lines in expense reports that are included in the DIOT file. If you run the Mexico Compliance Validation tool, the system checks expense reports of employees in Mexican companies or subsidiaries to verify that each line item indicates the name of the vendor or supplier.

Mexico Compliance Validation Tool

The Mexico Compliance SuiteApp comes with a validation tool that checks the integrity of data to help you generate a complete and accurate Mexico DIOT File (Mexico Compliance SuiteApp). The validation tool identifies which records have missing fields or incorrect information, so that you can fix them before you generate a DIOT file.

The validation tool can filter records by:

• type (Vendor, Employee, Customer, Bill, Bill Credit, Expense Report, Check)

• subsidiary

• transaction date

Use the validation tool filters to narrow the search result. Then, when you run the validation, the system displays a list of records and the corresponding validation rules that apply. For each record, you should add or modify a value to conform to the indicated rule. For example, if the rule says that the Vendor record must have an RFC number, click the record's link to edit the record and add the RFC number.

To understand the validations being implemented by the Mexico Compliance SuiteApp, see Mexico Compliance Validations.

To use the Mexico compliance validation tool:

1. Go to Reports > Tax > Mexico Validation Tool.

2. Select a record type. If you want to run the validation for all record types at the same time, select the value (all).

3. Select a subsidiary. If you want to validate records for all subsidiaries at the same time, select the value (all).

4. To validate records that were created within a specific date range, select a period. To validate records without specifying a date range, select the value (all).

5. To start the validation, click Run.

6. To edit a record, click the record's link in the Name column.

Mexico Compliance Vendor Payment Method

The Mexico Compliance SuiteApp supports vendor payment through the Payment Method subtab, which offers payment method options when creating bill payment records. The Payment Method subtab gets essential information such as the bank account number and bank name from bank information records. Therefore, you must create vendor bank information records first, before using the payment method.

Aside from the user interface, the vendor payment method is also supported when creating bill payment records through CSV, Web Service or script.

Creating a Bank Information Record

Bank information records contain the details of where the payment will be sent using EFT or bank transfer.

To create a bank information record:

1. Open the vendor or employee record that you want to create a bank information record for. On the Vendor or Employee page, click the Bank Information Details subtab.

2. Click New Bank Information.

3. On the Bank Information page, complete the following fields:

   • Name — Enter the name of the bank information record or select from the list. You can enter the bank name for easy reference.

     Note:

     The Name of the bank information record must be unique, or no two records should have the same name.

   • Account Number — Enter the bank account number that will receive the payment.

     Bank Name — Enter the bank name.

4. Click Save.

   The new bank information record is added in the table on the Bank Information subtab.

You can also add bank information records using Saved CSV Imports. For more information, see Working with Saved CSV Imports.

Important:

Before generating the Mexico Electronic Accounting files, bank accounts on vendor and employee records must be mapped to the corresponding national bank ID codes. Doing so ensures that the Mexico Electronic Accounting Files complies with SAT requirements. For more information, see Mapping Bank Accounts and Payment Methods for Mexico Journal Entries.

Deleting a Bank Information Record

To delete a bank information record:

1. On the Bank Information Details subtab, click the bank information record you want to delete, or click its Edit link.

2. On the Bank Information page, click the Actions dropdown list and then select Delete.

Using the Payment Method Subtab

After creating bank information records, you can proceed with making payments using the Payment Method subtab. For OneWorld accounts, the Payment Method subtab is displayed only if the nexus of the subsidiary is in Mexico, otherwise the subtab will not be displayed. For single instance accounts, the subtab is always displayed. The Payment Method subtab is available on the Bill Payment page.

To use the Payment Method subtab:

1. Go to Transactions > Payables > Pay Single Vendor. The Bill Payment page is displayed.

2. If you are using a OneWorld account, in the Payee field, select either a vendor, partner or employee. If the Payee is a multisubsidiary vendor, select a Mexico subsidiary in the Subsidiary field.

   If you are using a single instance account, the Payment Method subtab is always displayed regardless of the selected Payee.

   If you want to change the Payee, select a new Payee and click Leave on the confirmation message that appears. The page will display the bank information details of the new Payee.

3. Click the Payment Method subtab.

4. In the Payment Method field, select a payment method.

5. In the Bank Information field, select the name of the bank information record you want to use. The Account Number and Bank Name is automatically provided with values from the selected bank information record.

6. Click Save.

Related Topics

Mexico Tax Codes (Mexico Compliance SuiteApp)

Tax Code Mapping for Mexico DIOT File (Mexico Compliance SuiteApp)

Mexico Tax Setup (Mexico Compliance SuiteApp)

Mexico DIOT File (Mexico Compliance SuiteApp)

Mexico Electronic Accounting File (Mexico Compliance SuiteApp)

General Notices