In 2014, Chile began to join other Latin American countries in making electronic invoicing mandatory, a process which allows countries to standardize and automate invoice transactions. By the end of 2014, Chile had required all large revenue companies (with revenues exceeding 4.2 million dollars) to use electronic invoicing, with medium and small enterprises gradually being folded into these requirements, in order to be completely electronic by the end of 2017. Chile has incredibly complex e-invoicing governmental requirements, including separate document types, in addition to yearly and monthly accounting reports. Given that, companies of all sizes will need to be effectively converted to electronic invoicing by the end of 2017, multinationals working in Chile need appropriate e-business software to guarantee compliance with Chile’s intricate regulatory system.
Since 2014, LatamReady has been offering LatamReady SuiteApp Chile, including a specific e-invoicing solution for multinationals and local Oracle+NetSuite customers with business in Chile. LatamReady offers a SuiteApp that works natively within Oracle+NetSuite Cloud ERP software allowing customers to be locally compliant in Chile, Argentina, Mexico, Colombia, Peru, Ecuador, Uruguay, Brazil, Colombia, Peru, Bolivia, Costa Rica, Ecuador, El Salvador, Panama and Paraguay. LatamReady fully implement Oracle+NetSuite localizations including Electronic Invoicing solutions for multinationals working several Latin American countries simultaneously. With LatamReady Chile, LatamReady SuiteApp keeps multinational enterprises electronic invoicing compliant with Chile’s Servicio de Impuestos Internos (its tax administration authority).
Why Oracle-NetSuite cloud-based ERP and LatamReady?
Globally, the future of business software is cloud-based systems. Cloud-based computing makes important business documents safer, streamlines document organization, and allows businesses to run software more efficiently than on local servers. Recent surveys of medium and large businesses found that 88% of cloud users found that adopting cloud computing resulted in significant financial savings, and 56% of companies surveyed saw an increase in profits. Oracle+NetSuite is the number one cloud Enterprise Resource Planning software. With more than 30,000 businesses using Oracle+NetSuite across 160 countries, it is ten times larger than its nearest competitor.
More importantly, Oracle+NetSuite’s cloud ERP is built from the ground up for cloud-based computing.
Oracle+NetSuite sets of modules are built specifically for the cloud, they are able to capitalize on lower costs of implementation and reduced problems for local IT departments. Oracle+NetSuite cloud financials allows for real-time access to live financial data, which makes additions and addendums easier, quickly resolves delays, and generates compliance documents more quickly. Top 10 ERP.org, the ERP Software Systems index, places Oracle+NetSuite in the top 10 of ERP software, noting that its core significance lies in its ability to keep all business operations in an integrated suite. PC Magazine rates NetSuite ERP as “excellent,” remarking that Oracle+NetSuite ’s core configuration meets the needs of a wide variety of kinds of companies.
Since last year, Oracle+NetSuite ’s native NetSuite Electronic Invoicing SuiteApp helps companies to stay compatible with their business partners while cutting the costs associated with manual paper invoicing. And, as countries are becoming required to use electronic invoicing, Oracle+NetSuite’s experience with local compatibility and efficient invoicing makes it the best selection for multinational invoicing integration into local government regulation.
LatamReady SuiteApp works entirely inside of Oracle+NetSuite to create cloud-based localization and electronic invoicing solutions for multinationals in Latin America. Since 2009, LatamReady SuiteApp is the #1 Latin American NetSuite extension and has the most experience of any Latin American NetSuite SuiteApp working with local regulation. LatamReady SuiteApp (built for and certified by Oracle-NetSuite ) is the first SuiteApp to be created especially for the Oracle+NetSuite Electronic Invoicing SuiteApp, and LatamReady SuiteApp uses NetSuite Standard Electronic Invoicing SuiteApp technology to connect Oracle+NetSuite to local e-invoicing suppliers. With each national edition, LatamReady has specified its SuiteApp to meet the invoicing needs of specific countries.
LatamReady SuiteApp Chile can lead multinationals through Chile’s intricate regulatory structures. Like most Latin American countries, Chile’s electronic invoicing needs are specific and require a thorough understanding of local legal systems. Currently, Chilean structures use elements of a batch-oriented folio scheme combined with real-time communication elements. The process is comprised of two steps. In the first, a delivery document (the original, establishing document) is generated and registered with the government as the initial transport event. In the second step, the other documents (like invoice or credit/debit notes) will be generated and registered with reference to the original document as a follow-up to activities occurring later in the process.
Key elements of the Chilean electronic invoicing system include:
- Different types of electronic fiscal documents, which are collectively referred to as “Documentos Tributarios Electrónicos” or DTEs. Each DTE deals with its own specific government issues. The fiscal data required for each document is packaged in a DTE specific XML format, and then signed and registered with the government in real time via web services endpoints exposed by the Chilean tax authority and signed using a public key. At the end of each month, monthly compliance reports must be uploaded to the government web manually or using a web service. These reports summarize the DTE transactions produced during the month and also include any contingency (paper DTEs) as well. Electronic folios can be skipped or voided via the web, but the paper-based contingency processed within the month-end reports do not need to be destroyed.
- Customers must receive an inbound memo as well (provided as an XML response back to the SII via HTTP). There are government web services endpoints that provide for inbound validation. The buyer has 8 days to provide this response. If the buyer neither rejects nor notifies the supplier about an issue, then the invoice is presumed to have been accepted. If the buyer rejects the inbound invoice, then it is up to the supplier to correct it via credit memo. In the event of a discrepancy between XML and paper DTE, only the XML file will count – if the XML file is invalid, then the entire transaction is invalid, even if the paper DTE was printed correctly.
- Paper-based DTE documents are allowed as a contingency measure. Contingency DTEs are printed on special paper that is specifically authorized by the government notarized by an SII watermark. Contingency DTEs have a separate range of folio numbers and need not be registered with the government.
- Cancellations should be avoided. Instead of cancellations, the Chilean system favors separate credit/rebill transactions to reestablish the transaction.
- Registration functions are provided via web services maintained by the government. Multiple certificates can be used based upon permissions configured in the SII portal for each RUT, though the monthly compliance reports should be submitted using the credentials of the company’s fiscal manager.
LatamReady provides the legal structures and documents needed to remain legally compliant with the SII and Chile’s regulatory system.
Conclusion: Oracle+NetSuite and LatamReady combined solution and expertise with Chilean Legal requirements is the key to open NetSuite’s cloud-based computing efficiency in Chile and Latin America
LatamReady professional services team members are extensively familiar with Chilean legal requirements, and the LatamReady SuiteApp is designed with the nuances of the system in mind. As such, LatamReady combines the ease and cloud-oriented approach of Oracle+NetSuite with the LatamReady SuiteApp software’s integration of a nuanced understanding of Chile’ s specific governmental regulations. Most importantly, LatamReady works inside of Oracle+NetSuite, allowing multinationals to continue working within NetSuite and its cloud-based business management software seamlessly.
Miami based, LatamReady is Oracle+NetSuite for US+Latin America. Multinationals working in multiple Latin American countries will appreciate LatamReady’s seamless ability to work in most Latin American countries, and multinationals working in Chile will appreciate LatamReady’s clear grasp of necessary electronic invoicing regulations.
Being compliant–and electronic invoicing ready–is crucial for businesses in Latin America in the twenty-first century, and LatamReady provides the important elements to be roll out Oracle+NetSuite to Chile.