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Colombia Localization
What a Colombian company code needs in SAP S/4HANA: NIIF with a tax view, IVA and ICA, withholding on almost every payment, DIAN e-invoicing and the exógena reports. And where the standard stops.
- NIIF · PUC
- IVA · INC · ICA
- Retención en la fuente
- DIAN e-invoicing
- Exógena
At a glance
- Country code
- CO · COL · +57
- Currency
- COP ($) · no decimals in SAP
- Tax authorities
- DIAN, departments, municipalities
- IVA (VAT)
- 19% · 5% · 0%
- Corporate income tax
- 35% · 15% minimum rate
- Accounting
- NIIF (IFRS) · 3 groups
- UVT 2026
- COP 52,374
- SAP fiscal year variant
- K4
- SAP tax procedure
- TAXCO
Overview
Colombia has one national VAT, but taxes are collected at three levels of government, almost every payment carries a withholding, and DIAN validates every invoice before the buyer receives it. The localization work sits in three areas:
Financial accounting
NIIF in the leading ledger, a tax view for the conciliación fiscal, the PUC as the local chart and assets with book and tax values.
Tax
IVA and INC with tax procedure TAXCO, three withholdings on purchases, DIAN e-documents, the exógena and the monthly returns.
Treasury
The daily TRM, bank-specific payment files, ACH, PSE and Bre-B, and the 4 per mil tax on bank movements.
Who taxes what
- National · DIAN1 authority
Income tax, IVA, INC, withholdings, GMF (4 per mil), carbon and product taxes, customs.
- Departments32 + Bogotá
Consumption taxes on beer, liquor and tobacco, vehicle tax, registration tax.
- Municipalitiesmore than 1,100
ICA on revenue and its withholding (ReteICA), property tax (predial).
Currency
Colombian peso (COP, $). The Colombian template sets COP as local currency and SAP recommends using it with no decimal places. The template also activates the US dollar as hard currency.
Did you know? A 2018 bill to drop three zeros from the peso passed its first debate in Congress but never became law. The 100,000-peso note is still the largest.
Exchange rate
The TRM (Tasa Representativa del Mercado) is calculated and certified by the Superintendencia Financiera from the previous business day’s spot trades. Tax law converts foreign-currency items at the TRM.
Did you know? Each day’s TRM is published in the late afternoon and applies from the next calendar day. The one certified on Friday covers Saturday to Monday, and to Tuesday after a holiday Monday.
Language
Spanish (castellano). The Constitution (art. 10) also makes the languages of ethnic groups official in their territories. Install Spanish as a logon language: DIAN forms, e-invoices and auditors work in Spanish.
Did you know? Colombia has 32 departments plus Bogotá, a capital district, and more than 1,100 municipalities, each able to set its own ICA rates.
What SAP covers, and what it doesn’t
The Colombian country version in SAP S/4HANA 2025 (FPS02, October 2026) covers the national taxes, the withholdings, DIAN e-documents and the main DIAN reports. Municipal ICA, the tax reconciliation and the supervisors’ filings stay with you or a partner.
- Standard delivered in the country version
- DRC Document and Reporting Compliance
- Configure standard tools, your setup
- Gap partner, custom or outside SAP
| Area | Requirement | Asked by | SAP | How |
|---|---|---|---|---|
| Master data | NIT with check digit | DIAN | Standard | Tax number 1 (16 characters) with checking rule 5. “Sole prop.” switches the check off for NITs without a check digit. |
| Tax | IVA: taxed, exempt and excluded | DIAN | Standard | Procedure TAXCO with sample codes A0–A4 and V0–VM per kind of business. Update the sample rates to 19% and 5%. |
| Tax | Provisional VAT (transitorio) | DIAN | Standard | Provisional codes VG–VM post to one account; the period-end split is calculated by hand. |
| Tax | INC consumption tax | DIAN | Configure | Your own non-deductible tax codes in TAXCO; the sample excise code IC is a starting point. |
| Tax | Taxes on sugary drinks and ultra-processed food | DIAN | Configure | E-invoice XML covered; the per-100 ml amounts need pricing conditions and, for three categories, a BAdI. |
| Withholding | Retención en la fuente on purchases | DIAN | Standard | Extended withholding tax: types, codes, minimum base per code, key W_INC. |
| Withholding | ReteIVA (15% of the IVA) | DIAN | Standard | Withholding codes on the tax amount, key W_VAT. |
| Withholding | ReteICA per municipality | Municipalities | Configure | Withholding types and codes per municipality and rate. Not read by the DRC withholding reports. |
| Withholding | Autorretención and customer withholding | DIAN | Standard | Types S1–S3 for what customers withhold, AT for self-withholding on your own sales. |
| Withholding | Freelancers: contributions before withholding | DIAN | Standard | Monthly Data for Freelancers app; key UVT on the codes. |
| Returns | Form 350, withholding return (monthly) | DIAN | DRC | Report category CO_WHT_F350 in Run Statutory Reports. |
| Returns | Form 300, IVA return | DIAN | DRC | CO_VAT_DCL produces a PDF with the amounts to type into DIAN’s form. |
| Returns | Income and VAT withholding certificates | DIAN | DRC | Supplier certificates in Run Statutory Reports, with a correction phase. |
| Returns | Exógena formats 1001–1009 | DIAN | DRC | XML files from Run Statutory Reports; BC set FICODIAN_BCSET. |
| Returns | Other exógena formats (1010, 1012…) | DIAN | Gap | Not in the delivered set: own report definitions or a partner. |
| Returns | ICA return in each municipality | Municipalities | Gap | No delivered report. Revenue by municipality has to come from the ledger. |
| Returns | Conciliación fiscal (formato 2516) | DIAN | Gap | No delivered report; a tax ledger makes it a mapping job. |
| Ledger | Monthly ledger and UGPP trial balance | DIAN, UGPP | DRC | Ad hoc reports in CSV (monthly ledger CO_ACCT_BAL_LEDGER; UGPP trial balance and auxiliary of accounts). |
| Ledger | Financial statements in XBRL | Supersociedades | Gap | Prepared outside SAP in the supervisor’s XBRL tool. |
| E-docs | E-invoice, credit and debit notes, contingency | DIAN | DRC | Direct to DIAN through SAP Integration Suite, or through a technology provider. |
| E-docs | Documento soporte and its adjustment note | DIAN | DRC | Electronic support documents for purchases from suppliers who do not invoice. |
| E-docs | Supplier e-invoices and events | DIAN | DRC | Acknowledgement, receipt, acceptance, rejection; tacit acceptance after 3 business days. |
| E-docs | Electronic payroll document | DIAN | DRC | Payroll files from SAP payroll or another system are uploaded and sent to DIAN. |
| E-docs | POS electronic ticket | DIAN | Gap | Issued by the point-of-sale system or a technology provider. |
| Treasury | Daily TRM | Superfinanciera | Configure | Exchange rate type M loaded by your rate feed. |
| Treasury | Bank payment files | Banks | Configure | No Colombian format delivered: one DMEE format per bank in the Payment Medium Workbench. |
| Treasury | GMF, 4 per mil | DIAN | Configure | Posted from the bank statement, split 50% deductible by posting rule. |
| Treasury | Exchange operation reports | Banco de la República | Gap | Filed through the banks, outside SAP. |
| Controlling | Hard currency in USD | Common practice | Standard | The Colombian template activates USD as hard currency. |
| Payroll | Payroll, PILA and UGPP files | Ministry, UGPP | Standard | SAP HCM Payroll Colombia (also in Employee Central Payroll). |
| Logistics | Customs declarations | DIAN | Gap | Filed in DIAN’s customs systems by the broker; no SAP delivery for Colombia. |
Based on the SAP Help Portal guide for Colombia (SAP S/4HANA 2025 FPS02). The Cloud Public Edition has carried a Colombian local version since 2208, with a similar scope. How the DRC pieces work: SAP DRC; Colombia next to other countries: Country versions.
What changed recently
The changes that reached SAP systems in Colombia: accounting frameworks, the electronic documents, withholding and payments.
- Dec 2015In force
NIIF in one decree
Decree 2420 compiles the IFRS frameworks for groups 1, 2 and 3.
- May 2020In force
E-invoicing rules
Resolution 000042: every invoice validated by DIAN before it reaches the buyer.
- Apr 2022In force
RADIAN events
Resolution 000085: the events that make an e-invoice a negotiable título valor.
- Aug 2022In force
Documento soporte
Purchases from suppliers who do not invoice need an electronic support document.
- Dec 2022In force
Tax reform
Law 2277: 15% minimum effective rate and new taxes on sugary drinks and ultra-processed food.
- May 2024In force
Annex 1.9
Resolution 000165 of 2023 replaces 000042; its technical annex drops rounding rules and adds product taxes and export invoices in COP.
- Nov 2024In force
Equivalent documents
POS tickets and other equivalent documents are electronic for all.
- Jun 2025In force
Decree 572
Lower withholding bases and higher autorretención rates. Suspended in May 2026, back from 1 July.
- Oct 2025In force
Bre-B goes live
The central bank’s instant payments, 24/7, with keys such as a phone number.
- Jul 2026In force
NIIF amendments
Decree 0701: Pillar Two for groups 1 and 2; supplier finance, lack of exchangeability, covenants and sale-and-leaseback for group 1.
- Nov 2026In force
Bogotá ICA rates
Acuerdo 1084 for bimonthly filers; annual filers from January 2027.
- 2027Next
Bre-B for companies
Batch payroll and supplier payments expected once the central bank issues the rules.
- Jan 2028Planned
IFRS 18 (draft)
A draft decree would make it mandatory for group 1, with early adoption from 2027.
Financial accounting: NIIF and the PUC
Colombia adopted IFRS as NIIF under Law 1314 of 2009. Decree 2420 of 2015 compiles the rules, and each company falls into one of three groups.
In SAP: NIIF goes in the leading ledger. Income tax starts from the NIIF figures but has its own rules (ET art. 21-1), so many companies keep a tax ledger for the differences that feed the conciliación fiscal.
Did you know? The PUC of 1993 is no longer mandatory for companies under NIIF: each company may define its own chart (CTCP concept 2024-0061). Supervisors such as the Superintendencia Financiera still impose their own catalogues.
| Group | Who |
|---|---|
| Group 1Full NIIF (IFRS) | Securities issuers and public-interest entities, plus large companies with more than 200 staff or 30,000 minimum salaries of assets that are linked to a foreign IFRS group or trade mostly abroad. |
| Group 2NIIF for SMEs | Everyone not in group 1 or group 3. |
| Group 3Simplified, micro-entities | Small companies under sector revenue caps (23,563 to 44,769 UVT) with no subsidiaries, consolidation or defined-benefit plans. |
| Class | PUC (Decree 2650 of 1993) | In SAP |
|---|---|---|
| 1 | ActivoAssets | Balance sheet accounts; fixed assets and inventory sub-ledgers. |
| 2 | PasivoLiabilities | Payables, tax and withholding payable accounts. |
| 3 | PatrimonioEquity | Equity; result carried forward at year-end. |
| 4 | IngresosRevenue | Revenue accounts, with Margin Analysis attributes. |
| 5 | GastosExpenses | Expense accounts posted to cost centers. |
| 6 | Costos de ventasCost of sales | Cost of goods sold from goods issues and settlement. |
| 7 | Costos de producción u operaciónProduction or service costs | Collected on orders and Material Ledger, then moved to inventory or cost of sales. |
| 8 | Cuentas de orden deudorasMemo accounts, debit | Statistical accounts outside the balance sheet. |
| 9 | Cuentas de orden acreedorasMemo accounts, credit | Statistical accounts outside the balance sheet. |
SAP chart of accounts
The Colombian template creates CACO, which holds the main PUC accounts. Accounts have eight digits; the last two are for detail.
A group with a global operating chart usually keeps the PUC number as the alternative account in the country chart.
Accounting books
Books are no longer registered with the Cámara de Comercio (Decree-Law 019 of 2012); only the shareholders’ register and minutes books are. Electronic books are allowed.
Keep books and supporting documents for 10 years (Commercial Code art. 60, as amended by Law 962 of 2005).
Year-end and filing
Companies close their accounts at least once a year, on 31 December (Law 222 of 1995). Supersociedades receives the statements in XBRL; for 2025 statements the window was 13 April to 11 May 2026.
Revisor fiscal
A statutory auditor is required above 5,000 minimum salaries of assets or 3,000 of income, and always for sociedades anónimas, sociedades en comandita por acciones and branches of foreign companies.
IVA, INC and ICA
IVA (VAT, national) and ICA (industry and commerce tax, set by each municipality on revenue) reach almost every company. INC, the national consumption tax, applies to a few sectors such as restaurants, telecoms and vehicles.
- 19%
General rate
Most goods and services.
- 5%
Reduced rate
Listed goods and services, for example some foods and inputs.
- 0%
Exempt (exentos)
No IVA on the sale, input VAT recovered. Exports are exempt.
- —
Excluded (excluidos)
Outside IVA: no tax charged, and input VAT becomes cost.
IVA is filed every two months by companies with income of 92,000 UVT or more in the previous year (and by exporters); everyone else files every four months.
Tax codes in the Colombian template
The calculation procedure is TAXCO. The template’s sample codes are split by the kind of business, because exempt and excluded companies treat input VAT differently. The samples still carry an old 15% rate: set 19% and 5% yourself.
| Business | Sales | Purchases of goods | Purchases of services | Input VAT goes to |
|---|---|---|---|---|
| Taxed at normal rates | A1 | V1 · V0 · VG | VB · VA · VK | Deductible input VAT |
| Exempt business | A0 | V2 · V4 · VH | VC · VE · VL | VAT expense account |
| Excluded business | A2 | V3 · V5 · VI | VD · VF · VM | Inventory: the VAT is part of cost |
| Sellers not responsible for IVA | — | RG · RT | RS · RA | Old simplified-regime codes. The regime ended in 2019 (Law 1943 of 2018) and the buyer no longer assumes VAT: use them only to report these purchases |
Export codes A3 (direct) and A4 (through agencies) are 0%. The sample excise code IC adds a consumption tax on top of VAT.
Provisional VAT (transitorio)
When a purchase may serve both taxed and exempt or excluded sales, its VAT is posted to one provisional account and split at the end of the period. SAP delivers the codes; the split itself is calculated by hand.
Post the purchases with the provisional codes: the net goes to inventory, the VAT to the provisional VAT account.
At period end, read the share of taxed sales (codes A1, A3, A4) in the additional list of the advance return.
Read the provisional VAT posted in the period from the advance return for tax on sales/purchases.
Multiply the two, post that part to VAT and the rest to expense.
INC, consumption tax
- 8% restaurants, cafeterias and bars; vehicles under USD 30,000
- 4% mobile phone, internet and data services
- 16% vehicles of USD 30,000 or more, private aircraft
INC gives no credit: in SAP it is a non-deductible tax code that lands in cost or expense.
Taxes on products
Sugary drinks pay per 100 ml by sugar content (COP 0, 40 or 68 in 2026); ultra-processed foods pay 20%. Carbon tax, single-use plastic packaging and plastic bags (COP 73 per bag in 2026) come on top.
E-invoice annex 1.9 carries them; SAP covers the XML, three of the four categories through a BAdI. The pricing logic is yours.
ICA, municipal
Each municipality sets its rates per mil of gross revenue, generally between 0.2% and 1% (financial activities more). ICA is 100% deductible for income tax. A single national return form exists since 2018 (Resolution 4056 of 2017), filed in each municipality where the company earns revenue.
Bogotá rewrote its rates in October 2026 (Acuerdo 1084): bimonthly filers apply them from November–December 2026, annual filers from January 2027.
ICA in SAP
SAP has no ICA calculation on your own revenue and no ICA return. What it can do is give you revenue by municipality, if the ledger carries it.
Tip: decide early where the municipality lives on each revenue line: plant, sales office, profit center or a custom field. ReteICA, the withholding, is handled with withholding tax codes per municipality.
Income tax
35% general rate, with surtaxes for financial institutions, extractive and hydroelectric companies, and a 15% minimum effective rate since 2023. Industrial users of free trade zones pay 20% on export income (with an internationalization plan) and 35% on the rest.
The Ley de Rescate bill (477 of 2026, Cámara), filed at the end of October 2026, would cut the rate to 33% in 2027 and 31% from 2028. It is a proposal until Congress passes it.
Withholding: retención en la fuente, ReteIVA and ReteICA
In Colombia the buyer collects tax for the government. On a typical service invoice a large company withholds income tax, part of the IVA and the municipal ICA, all at once, when it pays or accrues the invoice, whichever comes first.
- 1–11%
Retención en la fuente
Income tax withheld from the supplier, by concept, above a minimum base in UVT. These are the usual domestic rates; payments abroad and dividends go higher.
- 15%
ReteIVA
15% of the IVA, withheld by large taxpayers and other designated agents.
- ‰
ReteICA
ICA withheld at the municipality’s rate, per mil of the base.
- 0.55–4.5%
Autorretención
Income tax the seller withholds from itself on every sale.
| Concept | Minimum base | Rate |
|---|---|---|
| Purchases of goodsFilers | 10 UVT · COP 523,740 | 2.5% |
| Services in generalFilers | 2 UVT · COP 104,748 | 4% |
| Fees (honorarios)Companies | No minimum | 11% |
| Fees (honorarios)Individuals up to 3,300 UVT a year with 2+ employees; otherwise the art. 383 table | No minimum | 10% |
| Rent of real estate | 10 UVT · COP 523,740 | 3.5% |
| Rent of movable goods | No minimum | 4% |
| Cargo transport | 4 UVT · COP 209,496 | 1% |
| Financial yields | No minimum | 7% |
Rates for suppliers who file income tax; non-filers pay more on purchases (3.5%) and services (6%). Bases from Decree 572 of 2025, back in force since 1 July 2026 after a two-month court suspension. 1 UVT = COP 52,374 in 2026.
Every January: DIAN publishes the new UVT. SAP keeps the minimum base as a COP amount on each withholding code, so every code needs a new value for 1 January.
Autorretención
Companies that file income tax and are exempt from payroll contributions (ET art. 114-1), which is most of them, withhold income tax on their own sales: 0.55% to 4.50% of revenue by activity code (CIIU) since Decree 572. In SAP it is withholding type AT on the customer, posted as expense and payable when you bill.
Freelancers
For independent workers, mandatory pension (16%), health (12.5%) and occupational-risk contributions are taken off the invoice before withholding. SAP keeps them per month in the Monthly Data for Freelancers app.
Posting example: a supplier invoice
The buyer is a large taxpayer and ICA withholding agent
| Line | Debit (COP) | Credit (COP) |
|---|---|---|
| Expense or inventoryServices | 1,000,000 | |
| IVA deductible19% | 190,000 | |
| SupplierWhat the supplier is paid | 1,111,500 | |
| Retención en la fuente payable4% of the net | 40,000 | |
| ReteIVA payable15% of the IVA | 28,500 | |
| ReteICA payable10 per mil of the net | 10,000 |
Minimum base for this concept: COP 104,748. The buyer still claims the full IVA; the 15% it withholds is paid to DIAN on its own Form 350.
Extended withholding tax, step by step
Define income types
The concepts DIAN asks for, used by the reports.
Check withholding countries
Country keys for foreign suppliers.
Define withholding tax types
For invoice posting, since withholding is due at accrual or payment, whichever is first.
Define withholding tax codes
One per concept and rate, with the base: net amount or the IVA.
Assign the reporting keys
W_INC for income tax, W_VAT for ReteIVA, UVT for freelancers.
Set minimum base amounts
At code level, in COP, renewed every January with the UVT.
Assign types to the company code
Mark the company as withholding agent, and self-withholding agent if it is one.
Activate and set the accounts
Activate extended withholding tax and define the payable accounts.
Customizing for Financial Accounting › Financial Accounting Global Settings › Withholding Tax › Extended Withholding Tax. Only the keys W_INC, W_VAT and UVT are read by the withholding reports.
When customers withhold from you
On a customer invoice SAP posts the withholding the customer is expected to keep (types S1, S2, S3), so the open item is the amount you will really receive. A self-withholding company uses AT instead.
Returns and certificates
The monthly Form 350 (income and VAT withholding) and the income and VAT withholding certificates for suppliers run in Run Statutory Reports. Income withholding certificates are due by 31 March for the previous year; ReteIVA certificates every two months.
ReteICA returns and certificates are not in the DRC reports; program RFIDYYWT still has forms for income, VAT, ICA and stamp tax.
DIAN e-invoicing and electronic documents
An electronic invoice counts as issued only when DIAN has validated it and the buyer has received it. SAP Document and Reporting Compliance (DRC) builds the XML, sends it to DIAN through SAP Integration Suite and tracks every status.
- Billing
Billing or FI document with a DIAN-authorized number.
VF01 · FB70
- eDocument
DRC creates the eDocument and maps the XML (UBL 2.1).
EDOC_COCKPIT
- Signed and coded
Signed, with the CUFE code built from DIAN’s technical key.
Integration Suite
- DIAN validates
DIAN accepts or rejects in seconds; rejections are fixed and resent.
Get Status
- Buyer receives
XML and PDF in DIAN’s container; the buyer answers with events.
Manage Electronic Documents
| Document | What it is | Code | In SAP |
|---|---|---|---|
| Electronic invoiceMandatory for all since 2019–2020 | Sales invoice validated by DIAN before delivery. | CUFE | DRCFrom SD billing, FI and convergent invoicing. |
| Credit and debit notes | Corrections that refer to the invoice. | CUDE | DRCRanges kept by hand. |
| Contingency invoiceTypes 03 and 04 | Issued while your system or DIAN is down, sent within 48 hours. | CUFE | DRCContingency process with its own ranges. |
| Documento soporteSince August 2022 | The buyer documents a purchase from a supplier not obliged to invoice. | CUDS | DRCElectronic support documents and adjustment notes. |
| Supplier invoice eventsRADIAN, 2022 | Acknowledgement, receipt of goods or services, acceptance or claim. | 030 · 032 · 033 | DRCSupplier invoice process with subsequent documents. |
| Electronic payrollSince 2021–2022 | Monthly support document for salary payments, sent early the following month. | CUNE | DRCUploads payroll files from SAP or another system. |
| POS electronic ticketSince 2024 | Equivalent document for point-of-sale sales. | CUDE | GapIssued by the POS system or a technology provider. |
| Título valor eventsRADIAN | Endorsement and other events when an invoice is traded. | — | GapHandled on the RADIAN platform or by a provider. |
Numbering
DIAN authorizes each range (prefix of up to 4 characters, from–to, validity) per establishment. SAP fetches invoice and contingency ranges from DIAN; ranges for credit and debit notes are kept by hand.
EDOC_CO_RANGESSNRO · EDOC_CO
How SAP reaches DIAN
The Integration Suite package Electronic Invoice for Colombia calls DIAN’s web services directly, with your own DIAN software ID, after a 100-document test set. Some companies route through a technology provider (proveedor tecnológico) instead.
SAP_COM_0670
Supplier invoices and events
On credit purchases, the acknowledgement (030) and receipt of goods or services (032) let the invoice support costs and input VAT. SAP sends them, and acceptance or rejection; tacit acceptance applies after 3 business days.
Technical annex 1.9 (Resolution 000165 of 2023, mandatory since 1 May 2024) removed rounding rules, added the taxes on products and asks for export invoices in COP. Check that the latest Colombia notes are in, and keep the Integration Suite package on its current version.
Statutory reporting: returns, exógena and the tax reconciliation
DIAN wants monthly withholding returns, VAT returns, and once a year the información exógena: every payment, income, receivable and payable, third party by third party. SAP delivers most of it in the Run Statutory Reports app.
| Report | When | SAP report | Output | Notes |
|---|---|---|---|---|
| Withholding return (Form 350) | Monthly | DRCCO_WHT_F350 | File | Income and VAT withholding; reversals of prior months show in the current one. |
| IVA return (Form 300) | Every 2 or 4 months | DRCCO_VAT_DCL | Amounts to type into DIAN’s form. | |
| Withholding certificates | Income: by 31 March · ReteIVA: every 2 months | DRCIncome · VAT | For suppliers, with a correction phase. | |
| Exógena 1001–1009 | April–June | DRCCO_DIAN_1001 … | XML | Payments, withholdings, IVA, income, receivables and payables per third party. |
| Monthly ledger | Monthly | DRCCO_ACCT_BAL_LEDGER | CSV | Balances of accounts and sub-accounts. |
| UGPP trial balance and auxiliary | On request | DRCAd hoc | CSV | For audits by the social-security authority (UGPP). |
| Conciliación fiscal (2516) | Before income tax | Gap— | From 45,000 UVT of gross income, and for groups that consolidate. | |
| ICA returns | Per municipality | Gap— | Bimonthly or annual, depending on the municipality. | |
| Financial statements | April–May | Gap— | XBRL | To Supersociedades or the company’s own supervisor. |
Exógena in SAP
Formats 1001, 1003, 1005, 1006, 1007, 1008 and 1009 come predefined through the BC set FICODIAN_BCSET (activate it in SCPR20). Each format and concept maps to G/L accounts; minimum amounts group small third parties into one line.
SAP Note 2717885 collects the FAQs. Format 1001 needs the third party on every line, so fill the reference fields on manual postings.
Conciliación fiscal, formato 2516
Companies with gross income of 45,000 UVT or more file the reconciliation between NIIF and tax figures before the income tax return. From tax year 2025, whatever their income, so do entities that consolidate or combine statements and those in a registered business group (Resolution 000246 of 2025). SAP has no delivered report.
A tax ledger, with the differences posted there, makes it a mapping job instead of a spreadsheet.
Treasury: payments, the TRM and the 4 per mil
Supplier and payroll runs go mostly through ACH, customers pay online through PSE, and since October 2025 the central bank’s Bre-B moves instant payments around the clock. SAP delivers no Colombian bank format: each bank’s file is built in the Payment Medium Workbench.
| System | Run by | Speed and limits | Typical use |
|---|---|---|---|
| ACH Colombia | Banks’ clearing house | Same or next day | Supplier and payroll runs, account-to-account; about 92% of weekday interbank transfers. |
| PSE | ACH Colombia | Online, from the payer’s bank | Customers paying invoices and taxes online. |
| Bre-B | Banco de la República | Seconds, 24/7; up to 1,000 UVB per payment (COP 12.1m in 2026) | Instant transfers by key or QR; batch payments for companies expected in 2027. |
| CUD | Banco de la República | Real time, high value | Large payments between banks; the other systems settle through it. |
Payment flow in SAP
- Payment run
Withholding already deducted on the invoice.
F110
- Payment medium
One format per bank, built in DMEE.
DMEE
- Send to the bank
Bank portal or host-to-host channel.
Bank file
- Bank statement
With the GMF charges of the day.
MT940CAMT.053
- Import and reconcile
Clear open items, post GMF by rule.
FF_5FEBAN
GMF, the 4 per mil
Banks charge 0.4% on withdrawals and transfers, and 50% of it is deductible for income tax. It arrives on the bank statement: one posting rule can split it into a deductible and a non-deductible account.
One savings account per holder is exempt up to 350 UVT of withdrawals a month.
TRM in SAP
Load each certified TRM as exchange rate type M, valid from the day it applies, not the day it is published. Tax measures foreign-currency items at the TRM, and exchange differences count for tax only when the item is settled.
Exchange control
Imports, exports, foreign debt and foreign investment must go through the regulated exchange market, reporting each operation’s minimum data (formerly the declaración de cambio) under Banco de la República’s External Resolution 1 of 2018. That stays in the bank portals, outside SAP.
Fiscal year and fixed assets
The fiscal year is the calendar year, so K4 (12 periods plus 4 special ones) fits every Colombian company code. These are the 2026 dates for a company with a December year-end:
13–26 January
IVA for November–December; withholding for December.
10–23 February
Large taxpayers: first income tax instalment.
31 March
Income withholding certificates for the previous year.
13–27 April
Large taxpayers: income tax return and second instalment.
13 April – 11 May
Financial statements to Supersociedades.
28 April – 19 May
Large taxpayers: exógena (NIT digits 1–3 moved to 14–19 May in 2026).
12–26 May
Other companies: income tax return and first instalment.
14 May – 12 June
Other companies and individuals: exógena.
Each window runs by the last digits of the NIT. Large taxpayers (grandes contribuyentes) pay income tax in three instalments; withholding returns are monthly all year.
| Areas | Valuation | Use today |
|---|---|---|
01 | Book depreciationLocal currency | NIIF book values |
02 · 03 | Inflation adjustment and adjusted bookLocal currency | Not needed |
04 | Tax depreciationLocal currency | Tax values (ET art. 137) |
05 · 06 | Inflation adjustment and adjusted taxLocal currency | Not needed |
07 | US GAAP book depreciationLocal currency | Only for US groups |
11–15 | Book and tax in hard currencyUS dollar | If you report in USD |
20 · 21–25 | Analytical and group currencyLocal and group | Group reporting |
Tax inflation adjustments ended with tax year 2006 (Law 1111 of 2006), and the peso is not hyperinflationary under NIIF. Copy the reference chart and leave the inflation areas out.
| Asset | Per year |
|---|---|
| Buildings | 2.22% |
| Machinery and equipment | 10% |
| Land transport fleet | 10% |
| Furniture and fittings | 10% |
| Medical and scientific equipment | 12.5% |
| Computers and data networks | 20% |
| Communication equipment | 20% |
Tax depreciation follows the accounts up to these caps. Anything above the cap is deducted after the asset’s useful life ends: that difference is what the tax area is for.
Controlling: no local law, but local effects
Colombia sets no rules for cost accounting, and SAP Help lists no Colombia-specific Controlling functions. Product costing, Material Ledger and Margin Analysis work as everywhere else. The tax rules still shape the design:
Two currencies from day one
COP with no decimals plus USD as hard currency (the template turns it on). Run Material Ledger actual costing in both if the business prices in dollars.
Non-recoverable taxes are cost
Input VAT of excluded businesses, the non-deductible share of provisional VAT and INC land in inventory or expense, so they move standard and actual costs.
Revenue by municipality
ICA is filed per municipality. Carry the municipality on revenue lines (plant, sales office, profit center or a custom field) so Margin Analysis can report it.
PUC class 7 or orders
Production costs flow through orders and Material Ledger. Decide whether class 7 accounts exist in the operating chart or only in the PUC view of the country chart.
Intercompany prices
Colombian transfer-pricing rules ask for documentation of related-party prices. Margin Analysis by partner company is where those figures come from.
Freelancer contributions
Pension and health contributions reduce the withholding base, not the cost: the expense stays at the invoice amount.
Other modules at a glance
Outside Finance, the Colombian requirements mostly arrive through the documents that Finance reports on.
- SalesDRC
Billing becomes the e-invoice
DIAN number ranges per establishment, INC and product taxes in pricing, and the withholding customers keep posted on the invoice.
- ProcurementStandard
Withholding at invoice receipt
Withholding codes on the supplier, the documento soporte for non-invoicing suppliers and the events on supplier e-invoices.
- PayrollStandard
SAP HCM Payroll Colombia
Social security (PILA), UGPP files and the electronic payroll document through DRC; also in Employee Central Payroll.
- RetailGap
POS tickets
The electronic POS ticket is issued by the point-of-sale system or a technology provider.
- LogisticsGap
Customs and transport
Import and export declarations go through DIAN’s customs systems and the broker, outside SAP.
- AnalyticsDRC
Statutory reports app
Run Statutory Reports holds the returns, exógena and ledgers, with a preview, corrections and the submission history.