Ecuador Electronic Invoicing and Tax Reporting Requirements

Ecuador Electronic Invoicing and Reporting Requirements

INVOICEWARE INTERNATIONALGlobal Compliance - Simplified

INVOICEWARE INTERNATIONAL © 2016

Confidential

Why Leading Organizations Choose Invoiceware International

Regional Latin America Platform

• One Platform, multiple countries – Brazil, Mexico, Argentina, Chile, Ecuador, Uruguay, Peru & Colombia

Lower IT Costs - Today & In Future

• Eliminate SAP ERP Configuration & Support issues

• Enterprise end-to-end support in English, Portuguese, and Spanish

• Fixed, Predictable Cost Today & Through Changes

Eliminate Operational Issues

• 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

Avoiding Audit Issues & Financial Penalties

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

• Fiscal reporting and transactional compliance from a single solution


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The Problem for MultinationalsConstant Change meets Process Driven, Centralized SAP Maintenance

“One of the major problems with single instance is the inability to adapt the

applications to ever evolving business requirements and advances in

technologies in real time so that true business value is consistently delivered to

the local teams” - Gartner Group

Constantly Changing Government Regulations

Consolidated ERP System


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SAP

ERP

Middleware

Integrate the

System

Different

Solutions for

Each Country

CUSTOMER

IDOC1

2 3

4

5

Monitor #1 Monitor #2 Monitor #3-6

Who

Supports

Who

Supports

Who

Supports

Who do you Call?

• Multiple Solutions

• Internal Support Staff

• SAP Functional Experts

• Middleware – SAP PI

• Third Party

Real Infrastructure Costs

• Multiple Vendors• Country E-Invoice

• Country Record To Report

• HR & Payroll Compliance

• Hardware & Maintenance• Local Box PROD

• Local Box QA/TEST

• Synchronized across multi-Tier SAP Landscape (DEV/QA/PROD)

6

The Business Impact – IT CostsCurrent Architectures Cause Issues & Cost Overruns


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Subject Matter ExpertCompliance expert per country – typically 1-2

FTE internally or System Integrator

MM Functional Expert.20 FTE per country to

deal with changes annually.

SD Functional Expert

.20 FTE per country to deal with

changes annually.

Middleware Interfaces.20 FTE across region annually

Financial Analyst & SAP Support Teams1-3 FTE time to review and adjust issues between SAP and 3rd party system.

SAP Basis, Record To Report & Project Management.25 to 2 FTE to day to day issues & manage upgrades

FI-CO Functional Expert.20 FTE per country to deal with changes annually.

5-11 Full Time

Equivalents

The Business Impact – IT CostsImplementing & Supporting Internally is Resource Intensive


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SAP ERP

• Single Monitor within SAP ERP

• Absorbs unique customizations & configurations of customer

• Flexibility for SAP Upgrade Teams

• Includes Change Management at a Fixed & Predictable Cost

Invoiceware International – Hybrid CloudLower IT Costs – Today & In The Future

InvoicewareLatin AmericaCompliance App

• Multi-Country Support

• Single Source of Support End-to-End

• Economies of Scale of resources

• Eliminate 3rd party systems each country: AR, AP, Record To Report, HR & Payroll Compliance


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SAP Process Execution

Visualize entire end-to-end process with government from inside ERP

Manually switch or automated time out values

Automatic reconciliation with Contingency processes

Automated 3 Way match (MIRO/MIGO/FB60)

Automated Contingency

Solution is set up for both manual and automatic transition in and out of contingency mode

Level 1 - On Network Contingency

Level 2 – On Premise Contingency

Reporting Tables & Extracts

All transactions referenced back via linking attributes in Invoiceware monitors to ensure all transactions have valid XML references checked with the gov’t servers

Reporting checks as all data extracts check for approved Gov’t signing attributes prior to extraction

Invoiceware InternationalEliminate Operational Shut Downs & Financial Delays



Invoiceware Solution CoverageRegional Latin America Compliance Platform

Solutions• Brazil

• Nota Fiscal• SPED• eSocial

• Mexico• CFDI & Nomina Electronica• eContabilidad

• Chile• DTE & Libros Reporting

• Argentina• eFactura multi-invoice types• Remitto - COTS

• Uruguay• Documents & Reports

• Peru• Documents & Reports

• Ecuador • Documents & Reports

• Colombia - PendingServices

• SAP 3 Way Match & Inbound Receiving• Supply Chain Finance


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SRI Requirements Requirements in Ecuador to Legally Operate under E-Invoicing Legislation

Readiness Declaration Register Clave de Acceso – Must make this available to the customer 49 digits

Certification – Testing and Production

Outbound – Must be approved by the SRI.

Inbound – Mandatory to validate via SRI Web Portal

Sending Documents – Individual or a catch of 50 max

SRI Authorization Number – 37 digits

Storage – 7 years

Contingency Processes – Used when systems are down or low internet connectivity by taxpayer

RIDE – Paper representation

Cancellations

Currency – “DOLLAR”

Shipping Affected – Invoice, Guia de Remision

Financial Impact Able to deduct taxes with electronic invoices


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SRI Documents Required

1. Invoice 2. Credit Notes3. Debit Notes4. Bill of Lading - Must be on truck when moving goods. Don’t need it when moving own Assets 5. Withholdings – Must make it available 5 days after receiving the Comprobante Electronico

The key access of each document will have 49 character numbers. This is generated by the system of the taxpayer automatically. This is a requirement and is unique for each comprobante. This will let the SRI indicate if the comprobante is Authorize or rejected.


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Printer layout - Factura

Access Key

Status

Environment

37 Digits Authorization Number


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Why Leading Organizations Choose Invoiceware International

Regional Latin America Platform

• One Platform, multiple countries – Brazil, Mexico, Argentina, Chile, Ecuador, Uruguay, Peru & Colombia

Lower IT Costs - Today & In Future

• Eliminate SAP ERP Configuration & Support issues

• Enterprise end-to-end support in English, Portuguese, and Spanish

• Fixed, Predictable Cost Today & Through Changes

Eliminate Operational Issues

• 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

Avoiding Audit Issues & Financial Penalties

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

• Fiscal reporting and transactional compliance from a single solution



ResourcesClick the links below for more information

Learn more about Ecuador requirements

Ecuador E-Invoicing Mandates: What You Need to Know

Ecuador SRI mandates checklist

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Ecuador Electronic Invoicing and Tax Reporting Requirements

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