Dan's Presentation

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Invoiceware is now a Sovos Compliance Company. Learn more at sovos.com

Invoiceware Solution

Presentation

11.3.16

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Click to edit Master title styleIntroductions

Daniel Wain Sales Director

Augusto LopezSolutions Engineer

Slide 2

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Click to edit Master title styleAgenda

Introductions

LATAM Compliance As a Service Impact on Business and IT

Orders to Cash Solution Requirements

The Real Cost of Compliance: Build, Monitor, Maintain

Customer Invoicing and eContabilidad Reporting Demo

Mutual Action Plan for Evaluation

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LATAM Compliance

AEOI

Sales Tax

VAT

10-Series Compliance

ACA

About Sovos Compliance

• 30+ Years of Success

• Category leader with over 3,000 clients

• Average client partnership of 10+ years

• 98.8% client retention rate

• Serve nearly 50% of the Fortune 500

Risk Mitigation

Operational Efficiency

Scalability

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Click to edit Master title styleMultinationals Trust Invoiceware

Regional Latin America Platform

• Covers AR, AP & Reporting for Brazil, Mexico, Chile,

Argentina, Colombia, Ecuador, Uruguay & Peru

• Use your investment in SAP

Lower IT Support & Change Management Costs

• Eliminate SAP ERP Configuration & Support issues

• End-to-end support in Portuguese, Spanish & English

• Fixed Cost to Implement & Maintain

Employee Productivity

• Increase employee productivity by 25% with a single SAP

monitor for end users

• Built-in business process automation to eliminate manual

data entry tasks and shut downs

Peace of Mind - Audit Defense

• SAP ERP is the system of record, not 3rd parties

• Fiscal reporting and transactional compliance from a single

solution

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Business Recap

Business Processes and

Implementation Plans

7Proprietary and Confidential—the information and materials in this document are not for use or disclosure outside of Taxware and Sovos Compliance except under express written consent.


Proprietary and Confidential—the information and materials in this document are not for use or disclosure outside of Taxware and Sovos Compliance except under express written consent.

Mexico Seller/Buyer Transaction Process

8Proprietary and Confidential—the information and materials in this document are not for use or disclosure outside of Taxware and Sovos Compliance except under express written consent.


Proprietary and Confidential—the information and materials in this document are not for use or disclosure outside of Taxware and Sovos Compliance except under express written consent.

Current LATAM Audit Fulfillment Process

SAP Updates Country Mandates and Solutions

Middleware

Invoice

IDOC

AP AR Reporting

XML

Government

Agencies

Unique Accounting Reports• SPED

• eContabilidad

• Libros

PAC

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Click to edit Master title styleCompliance Impact on the Business

Revenue Issues

• Increased DSO as invoices not paid due to compliance issues

• ~10% of invoices have collection issues

Logistics Issues

• Missed Customer Shipments• 3PL penalties – resend trucks• Increased receiving costs upwards of 70%

Accounts Payable Costs

• 300% increase in cost of manual operation vs. automated

• 5%-7% missed deductions equals cash flow

Audit Penalties

• $50-$4,000 dollars per transactional issue• Loss of tax status – e.g. company loses

favored Maquila status, increased rates

VAT Issues – KPMG 2015 Study

• 34% of company gross sales • 340% of Net income• One the company’s largest cash flows

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Click to edit Master title styleMexico Mandates and PenaltiesPenalties for Poor Reporting and XML

$300-$4,602 per missing/incorrect invoice

$15 - $4,092 per invoice that does not match accounting records (eContabilidad)

Up to $200 fine for each transaction that should have been posted in the delinquent or inaccurate Polizas

Increased risk of direct electronic audit by SAT for compliance errors

2016 Issues

Rumblings of 3.3 CFDI Schema Change

Inbound Procurement – your invoices don’t have the UUID, needs to match and align to the FI posting in SAP

Gastos (T&E) & Nomina (Paychecks) issues within Polizas

Expectation of end of life for Amparo exception for reporting, even with an Amparo, SAT will require eContabilidad XML for remittance – they’ll even come to your office to pick it up!

Starting to share data with US/Canada for purchases from Mexico RFC

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Sovos LATAM Compliance

Proposed Solution Suite

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Click to edit Master title styleInvoiceware Compliance and Localization

Operational Compliance Support 8 countries Turn-key, natively integrated, Rapid Deployment Templates for

SAP in Brazil, Argentina, and Mexico Not just software, not just implementation – full-service,

providing ongoing support in production in either Portuguese, Spanish or English as needed

Compliance Updates and Upgrades included in fixed fee

Fiscal/Statutory Compliance (SPED, E-Contab, Libros) Rapid Deployment Templates extend the SAP reporting

framework to fill gaps and address customizations needed for company specific validations

Maintenance updates included in annual fee

SAP Localization Consulting Decades of knowledge and experience implementing SAP

localization in Latin America Flexible Engagement Model Firm, Committed Deliverables

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Click to edit Master title styleInvoiceware Compliance As a Service (CaaS)Outbound Billing Advantages

SAP User management console

Automated Contingency to avoid shipping issues

Automated Cancellations & Corrections

Inbound Accounts Payable Advantages “Okay to Deduct” – ensure invoices are

compliant

“Okay to Pay” – automate PO, Invoice, GR matching

Audit Defense – ensure XML backs up reports

Fiscal Reporting SAP is system of record, not local 3rd party

database

Change management fixed fee

Data validations ensure accuracy prior to filing reports

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Click to edit Master title styleAR – Outbound Invoicing

Integrated Archive Access

AutomaticProcessing Grid

Cancel Inv with SAT and in SAP

Manual Processing Grid

All Signing Attributes Included

“Full Loop”

Regenerate Addenda for Customers

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Click to edit Master title styleAP – Inbound Invoicing

Revalidate XML: You should have ability to revalidate XML as a supplier could cancel an XML days after first sending. This process ensures that time stamp and validation happens when XML received as well as when payed (could be days later)

5 Year Archive: Integrated archiving, so can access XML and PDF from SAP monitors

UUID and Signing Attributes: UUID automatcially posted to SAP once validated with gov’t and all signing attributes for audit included in SAP monitor

Process Automation: XML linked to a PO or processed along with SAP MIGO

Fiscal Compliance: XML Invoice collected and status updated inside of SAP

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Click to edit Master title styleInvoiceware Extractor and Real Time Connector

Standard SAP Extractor• SAP SD Data• SAP FI Data• SAP MM Data• Customer Master• Country

Localization Tables

Government FileStandard Extractor +

Delta File = IDOC

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Click to edit Master title styleReal Time Data Connector

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Click to edit Master title styleInvoiceware Compliance Network

Cloud Service

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eContabilidad

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Click to edit Master title styleeContabilidad—Matching to SAP Master Data

Matching• Sales: Match on Invoiceware Z-Table, link

from SAP Billing Document number to Accounting Posting

• Purchases: Match RFC_EMISOR + SERIE + FOLIO.

• Nomina: Assess during project.

• Gastos: Assess during project.

Upload

• Nominas from external HR/Payroll system

• Gastos from external travel expense system

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Click to edit Master title styleReporting – Sales, Purchases, T&E, Payroll

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Click to edit Master title styleValidation Reports –Missing UUID

View/Filter

Edit/Update

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Click to edit Master title styleCompliance Defense

Validation Reports UUID to Combat Big Data Audits

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Click to edit Master title styleCompetitive Landscape

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Click to edit Master title styleLATAM Human Capital Requirements

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• Expertise

• Technology Leadership

• Client Success

Why Sovos Compliance?

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• 50+ dedicated tax compliance researchers

• 14,000+ jurisdictions monitored

• 200+ international localities supplying tax research

• Leadership providing guidance on relevant

regulatory committees

Efficiency, Compliance & Peace of

Mind

Focused Expertise

Technology Leadership

ClientSuccess

Tax Compliance Expertise

100% dedicated to tax compliance

and reporting solutions

We transform compliance knowledge into highly

functional, scalable and secure solutions

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Click to edit Master title styleProject Objectives

Employee Productivity /

Scaling

Smooth Transition into

Mexico ‘17

Reduce contract

employees touching invoices

Make TAX and AR an

efficiency engine not just a

compliance center

Change Management Risk Mitigation

Partnership with expert in

the region for legislative

mandates

Integrate SAP

Eliminate Tax Department

& IT overhead in managing

updates and configuration

changes

Draw down regional

penalties in FY ‘17 for missing

documentation

Contingency to eliminate

printer and web service errors

CFDI comparison with

orders takes too much time

(Inbound)

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Click to edit Master title styleSovos Benefits - Summary

Mitigate Risk

Increase Operational

Efficiency

Scalability

Minimize risk, audit defense, support time

Focus on key department functions

Keep pace with growth plans

Stay ahead of compliance in LATAM

Protect Maquila Tax Rating

Improve work experience for AP, AR

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Next Steps

Proposal and

Mutual Action Plan

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Click to edit Master title styleInvoiceware Mutual Plan

Discovery Meetings

• Complete

Sovos Presentation

• Complete

Technical Discussions

• Complete

Solution Presentation

• 10/4

Begin Onsite Implementation

• 11/21

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Thank you very much for

the opportunity to work

with your organization!Daniel WainGlobal Account Executive

[email protected]

P: 843.412.00409

Dan's Presentation

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