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Mexico Localization
What a Mexican company code needs in SAP S/4HANA, explained for people who have never worked there: every invoice stamped for the tax authority before the customer gets it, VAT that counts only when the money moves, an electronic receipt for every payment, a trial balance sent to SAT every month, and the import tariffs of 2026. And where the standard stops.
- CFDI 4.0 · PAC
- Cash-basis IVA
- Payment complement
- ISR and IVA withholding
- DIOT
- Electronic accounting
At a glance
- Country code
- MX · MEX · +52
- Currency
- MXN ($) · 2 decimals in SAP
- Tax authority
- SAT
- IVA (VAT)
- 16% · 8% border · 0%
- Corporate income tax
- 30% · plus 10% PTU to staff
- Accounting
- NIF (CINIF) · IFRS if listed
- Inflation Sep 2026
- 3.45% a year
- Fiscal year
- Calendar year, by law
- SAP tax procedure
- TAXMX
- E-invoices
- CFDI 4.0 through a PAC
Overview
Mexico has one national VAT, but it works on cash: IVA becomes payable and deductible only when an invoice is paid. Every invoice is an XML stamped by an authorised provider before the customer receives it, every later payment needs its own electronic receipt, and the trial balance goes to the tax agency every month. The localization work sits in three areas:
Financial accounting
NIF or IFRS in the leading ledger, a tax view for depreciation indexed by the INPC, SAT’s grouping code behind every account for electronic accounting, and the CFDI’s UUID on the journal entries that need it.
Tax
IVA and IEPS posted as deferred tax and transferred when paid, ISR and IVA withheld at payment, CFDI invoices, payment complements and withholding certificates through a PAC, and the monthly DIOT.
Treasury
SPEI transfers to an 18-digit CLABE, the Banxico FIX rate for foreign currency, a payment complement for every invoice paid after the month it was issued, and the US dollar as hard currency.
Who taxes what
- Federal · SAT1 tax agency
Income tax (ISR), IVA and excise tax (IEPS); import duties through the customs agency, ANAM. Social security goes to IMSS and the housing fund to INFONAVIT.
- States and Mexico City32 governments
A payroll tax (impuesto sobre nóminas) of 3% of salaries in most states and 4% in Mexico City, plus lodging and vehicle taxes.
- Municipalities2,478 local governments
Property tax (predial), the tax on buying real estate and local permits.
Currency
Mexican peso (MXN, $), with two decimals in SAP. The template adds the US dollar as hard currency and the euro as group currency, and many contracts, imports and IMMEX costs are priced in dollars.
Did you know? In 1993 Mexico took three zeros off the peso: 1,000 old pesos became 1 “nuevo peso”, and the word “nuevo” was dropped from the notes in 1996.
Exchange rate
Banco de México fixes the FIX rate every business day from the wholesale market and publishes it in the Diario Oficial (DOF) the next business day. For tax, foreign currency is converted at the rate published the day before the transaction.
Did you know? So a Monday invoice in dollars uses the rate published in the DOF on Friday, which Banxico fixed on Thursday.
Tax ID and language
Spanish; install it as a logon language, because SAT’s catalogues, the CFDI and the auditors work in Spanish. The tax ID is the RFC: 12 characters for a company, such as ABC010203XY1, 13 for an individual.
Did you know? A company’s RFC is three letters of its name, its date of incorporation as YYMMDD and a three-character check code. ABC010203XY1 was incorporated on 3 February 2001.
Words you will hear
- SAT
- Servicio de Administración Tributaria, the federal tax agency. It runs the e-invoice platform, receives the DIOT and the electronic accounting, and lists suspect invoice issuers. Customs moved to a separate agency, ANAM, in 2022.
- RFC
- Registro Federal de Contribuyentes, the tax ID: 12 characters for companies, 13 for individuals, built from the name and the date of incorporation or birth.
- CFDI
- Comprobante Fiscal Digital por Internet: the XML e-invoice. The same format covers credit notes, payments, payroll, goods in transit and withholding certificates.
- PAC
- Proveedor Autorizado de Certificación: a private company authorised by SAT to validate and stamp each CFDI. SAP talks to the PAC, not to SAT.
- UUID
- The folio fiscal: the 36-character ID in the stamp of each CFDI. It is the invoice’s legal identity, and electronic accounting asks for it.
- PUE and PPD
- The payment method on the invoice: PUE when it is paid in full by the end of the month of issue, PPD when it is paid later or in instalments.
- Complemento de pago
- The CFDI the seller issues for each payment received on a PPD invoice, by the 5th of the following month. The IVA moves when the money does; the complement is the buyer’s proof.
- IVA trasladado and acreditable
- The VAT a seller charges and the VAT a buyer can deduct. Both count only when the invoice is paid.
- DIOT
- Declaración Informativa de Operaciones con Terceros: a monthly file of the IVA paid to each supplier.
- PTU
- Participación de los Trabajadores en las Utilidades: 10% of the company’s taxable profit, shared with employees every May.
What SAP covers, and what it doesn’t
The Mexican country version in SAP S/4HANA 2025 (FPS02) covers cash-basis IVA with deferred tax codes, ISR and IVA withholding at payment, the CFDI e-documents through a PAC (invoices, payment complements, transfer CFDI and withholding certificates), the DIOT, the IVA declaration and the electronic accounting files. Carta Porte, the annual return, PTU and the tax inflation adjustment 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 | RFC of the company code | SAT | Standard | Parameter MX_RFC in the company code’s additional data; the e-documents and every statutory report read it. |
| Master data | RFC and CURP of business partners | SAT | Standard | RFC in tax number 1, CURP of individuals in tax number 3. Generic RFCs for the public (XAXX010101000) and foreigners (XEXX010101000). |
| Master data | Customer’s tax regime, CFDI use and postal code | SAT | Configure | CFDI 4.0 rejects an invoice whose name, regime or postal code differs from SAT’s records. Kept on the customer and mapped in SAP Application Interface Framework. |
| Tax | IVA 16%, 8% border, 0% and exempt | SAT | Standard | Tax procedure TAXMX, with a deferred tax code and a target tax code for each rate. The 8% rate needs its own codes for sales delivered in the border regions. |
| Tax | Cash-basis IVA (flujo de efectivo) | SAT | Standard | Deferred tax codes post IVA to a pending account; Deferred Tax Transfer (RFUMSV50) moves it to the final account when the invoice is paid, in proportion to partial payments. |
| Tax | IEPS on drinks, tobacco and fuels | SAT | Configure | Your own condition types and tax codes for each IEPS rate or fee per litre; the CFDI mapping sends it as tax 003. Several rates changed on 1 January 2026. |
| Tax | Proportional input IVA (prorrateo) | SAT | Gap | For companies with taxed and exempt sales the factor is worked out outside SAP and adjusted in the VAT declaration. |
| Withholding | ISR 10% and two thirds of IVA on fees and rent | SAT | Standard | Extended withholding tax at payment, with sample types and codes. SAP Help’s own example pays MXN 9,533.33 on an invoice of 11,600. |
| Withholding | IVA 4% on freight, 100% on scrap | SAT | Standard | Withholding codes on the net amount (freight) or on the IVA (scrap), with income types A3 and D1. |
| Withholding | ISR 1.25% on individuals in RESICO | SAT | Configure | A withholding code of your own: the sample settings predate RESICO, which started in 2022. |
| Withholding | Payments abroad: royalties, services, interest | SAT | Configure | Sample codes for royalties and technical assistance; treaty rates and residence certificates are yours to maintain. |
| Withholding | Withholding certificates (CFDI de retenciones) | SAT | DRC | Created from supplier payments (EDOC_MX_WTC) and sent through the PAC in the Withholding Tax Certificates process. |
| E-docs | CFDI 4.0 invoices and credit notes | SAT, PAC | DRC | eDocument process Mexico eInvoice: SAP Integration Suite signs the XML and sends it to your PAC; the UUID comes back to the eDocument Cockpit. Interface version 4 follows Annex 20 version 4.0. |
| E-docs | Payment complement (version 2.0) | SAT, PAC | DRC | Created when an incoming payment clears a PPD invoice (Mexico ePayment), or one for several payments (EDOC_MX_SUMMARY). |
| E-docs | Cancellation with a reason code | SAT | DRC | Cancel eDocument with reason codes 01 to 04 (01 needs the UUID of the replacement); SAT or the customer accepts. |
| E-docs | Transfer CFDI for goods in transit | SAT | DRC | Mexico Delivery Note: created at goods issue for deliveries and stock transfers, with prices set to zero. |
| E-docs | Carta Porte complement (version 3.1) | SAT | Gap | Not in the SAP Help guide: vehicle, permits, route and goods codes usually come from the PAC, a partner or a custom mapping. |
| E-docs | Foreign trade complement on export invoices | SAT | Gap | Not in the SAP Help guide; exporters add it through the PAC, a partner or a custom mapping. |
| E-docs | Global invoice for sales to the public | SAT | Gap | Not in the SAP Help guide; retailers build it from their point of sale or a partner. |
| E-docs | Checking supplier invoices and SAT’s blacklist | SAT | Gap | SAP does not check received CFDI against SAT or its list of issuers of false invoices (article 69-B); partners or SAT’s download service do. |
| Returns | DIOT, 54-field format | SAT | DRC | Mexico DIOT Report (MX_VAT_DCL) in Run Statutory Reports. Use the 54-field activity: SAT’s platform takes only that layout since 2025, so the older 25-field output can no longer be filed. It reads the deferred tax transfer. |
| Returns | Monthly IVA return | SAT | DRC | Mexico VAT Declaration (MX_VAT_REP): a list laid out like SAT’s form, with manual adjustments and Post Tax Payable. You key it into SAT’s portal. |
| Returns | ISR provisional payments and annual return | SAT | Gap | Prepared from the ledger and the tax depreciation area, and filed on SAT’s portal. |
| Returns | PTU, profit sharing | Labour law | Gap | Calculated from the annual tax result outside SAP and paid through payroll. |
| Ledger | Chart of accounts with SAT grouping codes | SAT | DRC | Mexico Chart of Accounts (MX_CHTACCTS_DCL): XML from a financial statement version built for electronic accounting. |
| Ledger | Monthly trial balance and month 13 | SAT | DRC | Account Balance (MX_ACCT_BAL_REP) and Account Balance - Month 13 (MX_ACCT_BAL_P13_REP), as XML. |
| Ledger | Journal entries and ledgers on request | SAT | DRC | Journal Entries Details (MX_JE_DETAILS), Auxiliary Report for Accounts and Auxiliary Report of Folios, with the UUID and payment details of each entry. |
| Valuation | Tax depreciation updated by the INPC | SAT | Configure | Chart of depreciation 1MX with tax area 15 and keys MX01 to MX04. The INPC update of the deduction needs an index series or is worked out alongside. |
| Valuation | Annual inflation adjustment for tax | SAT | Gap | The adjustment on monetary assets and debts (ajuste anual por inflación) is calculated outside SAP. |
| Valuation | Restated statements (NIF B-10) | CINIF | Configure | Not needed while three-year inflation stays under 26%: the inflation areas 03 and 04 of chart 1MX stay unused. |
| Treasury | Banxico FIX exchange rate | Banxico, SAT | Configure | Load the FIX every day. For tax, foreign currency is converted at the rate published in the DOF the day before the transaction. |
| Treasury | SPEI and bank transfer files | Banks | Configure | The delivered transfer method writes an old Banamex layout; build each bank’s format in DMEE or use host-to-host. |
| Payroll | Payroll, IMSS, INFONAVIT and payroll CFDI | SAT, IMSS | Standard | SAP HCM Payroll Mexico (PY-MX). |
| Customs | Import declarations (pedimentos) and IMMEX | ANAM | Gap | Filed by the customs broker; SAP posts the duties and the import IVA. IMMEX inventory control (Annex 24 of the foreign trade rules) needs a partner or SAP GTS. |
| Customs | Tariffs of up to 50% from 2026 | Economía | Configure | New duties on 1,463 tariff lines from countries without a trade agreement, adjusted by a second decree in April 2026: update delivery cost conditions and standard costs. |
Scroll inside the table to see every row. Based on the SAP Help Portal guide for Mexico (SAP S/4HANA 2025 FPS02). The Cloud Public Edition also carries a Mexican local version with the same e-documents and reports in DRC. How the DRC pieces work: SAP DRC; Mexico next to other countries: Country versions.
What changed recently
The changes that reached SAP systems in Mexico: the CFDI and electronic accounting, IVA and withholding, payroll, and the tax, customs and labour reforms of 2025 and 2026.
- Jan 2014In force
CFDI for everyone
Every invoice becomes an XML stamped through a PAC; printed invoices with authorised number ranges end.
- Jan 2015In force
Electronic accounting
Companies start sending SAT their chart of accounts with grouping codes and a monthly trial balance in XML.
- Jan 2019In force
Northern border incentive
IVA falls to 8% and ISR by a third for registered businesses in the northern border region; the southern border followed in 2021.
- Apr 2021In force
Subcontracting reform
Staff outsourcing is banned, specialised services need REPSE registration and PTU gets a cap; the 6% IVA withholding ends in September.
- Jan 2022In force
Cancellation with a reason
Every CFDI cancellation carries a reason code from 01 to 04, and the UUID of the replacement when there is one.
- Jan 2022In force
RESICO
A simplified regime for individuals and small companies; companies withhold 1.25% ISR when they pay RESICO individuals.
- Jan 2023In force
Twelve days of holiday
Paid holiday in the first year doubles from 6 to 12 days, which changes payroll accruals.
- Apr 2023In force
CFDI 4.0
The customer’s name, tax regime and postal code must match SAT’s records, and the payment complement moves to version 2.0.
- Jul 2024In force
Carta Porte 3.1
The transport complement reaches version 3.1 for goods moved on federal roads, by rail, sea or air.
- Jan 2025In force
Plan México incentives
Immediate deduction of new fixed assets with a committee’s approval: 41% to 91% for 2025 and 2026, 35% to 89% to September 2030, plus 25% of the increase in training spending.
- Feb 2025In force
New DIOT
A new SAT platform and a 54-field file for every filing, with non-creditable IVA in detail; since August 2025 the old program no longer works.
- Jan 2026In force
Tariffs of up to 50%
1,463 tariff lines from countries without a trade agreement, such as China and India, pay 5% to 50%. The Customs Law reform starts the same day.
- Jan 2026In force
IEPS and false invoices
Sugary drinks pay MXN 3.0818 a litre and violent video games 8%; an express procedure suspends the digital seals of suspected false-invoice issuers.
- Mar 2026In force
40-hour week
The Constitution caps the working week at 40 hours, reached two hours a year from 2027 to 2030.
- Apr 2026In force
Second tariff decree
185 tariff lines change, and some steel inputs become duty-free for manufacturers in the PROSEC sector programmes.
- Jan 2027Next
46-hour week
First step of the reduction: shift plans, overtime and payroll schemas change.
- Jan 2027Planned
2027 tax package
Passed by the deputies in October 2026, pending in the Senate: a cap on deductions for companies with income above MXN 50 million, and past losses limited to half of each year’s taxable profit.
Financial accounting: NIF and electronic accounting
Most Mexican companies report under NIF, the local standards of the CINIF; listed issuers use IFRS. Neither restates for inflation today: NIF B-10 only does so when inflation over three years reaches 26%, and Mexico is far below that. What is particular is that SAT receives the accounts themselves: a trial balance every month, and the journal entries when it asks.
In SAP: the leading ledger carries NIF or IFRS. Electronic accounting comes from Run Statutory Reports: a financial statement version maps each account to SAT’s grouping code, and the journal entry header carries the UUID and payment details SAT asks for.
Did you know? Tax still indexes for inflation: depreciation is updated with the INPC, and the annual inflation adjustment taxes the gain from owing pesos while prices rise.
| Framework | Who |
|---|---|
| NIF | Mexican Financial Reporting Standards issued by the CINIF, used by most companies. Close to IFRS, with local rules such as the inflation test of NIF B-10. |
| Full IFRS | Required for issuers listed on the Mexican stock exchanges since 2012 (CNBV), and the group standard in many foreign subsidiaries. |
| CNBV and CNSF rules | Banks and insurers follow their regulators’ accounting criteria. |
| File | When | In SAP |
|---|---|---|
| Chart of accounts | With the first trial balance, and again when accounts change | MX_CHTACCTS_DCL, from a financial statement version that gives each account SAT’s grouping code. |
| Trial balance (balanza) | Monthly, by the 3rd of the second month after (companies) | MX_ACCT_BAL_REP; month 13 for the year-end adjustments. |
| Journal entries (pólizas) | When SAT asks, or to support a tax refund | MX_JE_DETAILS, with the UUID of each related CFDI and how it was paid. |
| Ledgers and folios | When SAT asks | MX_ACCT_AUX and MX_FOLIOS_AUX. |
Chart of accounts
Mexico has no mandatory chart of accounts, and SAP’s template uses chart INT. What SAT wants is its grouping code (código agrupador) next to each account, kept in a financial statement version for electronic accounting.
MX_CHTACCTS_DCL
The UUID on journal entries
Electronic accounting links journal entries to the CFDI behind them. Payments and manual entries carry the UUID and the payment details in the journal entry header.
Post Incoming Payment, Post Outgoing Payment, Manage Journal Entries and the invoice apps have the field (SAP Note 2745330).
Official numbering, then and now
SAP Help still describes prenumbered forms and number ranges granted by SAT. Since CFDI the series and folio are your own; the UUID in the stamp is the legal number.
XBLNR
Year-end and approval
The fiscal year is the calendar year (Federal Tax Code, art. 11). Shareholders approve the statements within four months (General Companies Law, art. 181).
Retention
Keep the accounting and the CFDI for five years from the annual return they support (Federal Tax Code, art. 30).
IVA on a cash basis, IEPS and other taxes
IVA is a VAT at 16% on most goods and services. What surprises newcomers is the timing: a seller owes IVA only when the customer pays, and a buyer deducts it only when it pays the supplier. Next to it, IEPS is an excise tax on drinks, tobacco, fuels and a few other goods.
- 16%
General rate
Goods, services, rent and imports unless the law sets another rate.
- 8%
Border regions
Registered businesses in the northern and southern border regions, on goods and services delivered there.
- 0%
Zero-rated
Exports, most food, medicines and farm inputs: the seller still deducts its input IVA.
- Exempt
No IVA charged
Education, housing rent, medical services by individuals, land and homes: the input IVA becomes cost.
IVA is paid monthly, by the 17th of the next month, in the same federal return as the ISR advance. A credit balance is carried forward against later IVA or claimed back as a refund; since 2019 it cannot be set against ISR or other taxes.
IVA follows the cash
In SAP each IVA rate has two tax codes: a deferred code used on the invoice, and a target code the tax moves to once the invoice is paid.
A supplier issues a CFDI. If it is paid by the end of the month (PUE), the IVA is creditable that month.
If it will be paid later (PPD), the buyer posts the IVA as pending: in SAP, a deferred tax code on the invoice.
When the buyer pays, the IVA on the part paid becomes creditable for the buyer and payable for the supplier, and any withholding is made at the same time.
The supplier issues a payment complement for that payment by the 5th of the following month: the buyer’s proof for the deduction.
Deferred Tax Transfer (RFUMSV50) moves the IVA from the pending to the final accounts before the DIOT and the monthly return.
IEPS
An excise on sugary drinks (MXN 3.0818 a litre since 2026), alcohol, tobacco, fuels, junk food and, since 2026, violent video games (8%). Producers and importers charge it on the CFDI.
In SAP it is a condition type and tax code of its own; it follows the cash, like IVA.
Border regions
Registered businesses in the northern and southern border strips charge 8% IVA on goods and services delivered there, and pay a third less ISR. The decree runs to 31 December 2026.
Separate tax codes, and the DIOT reports border operations in their own fields.
Income tax (ISR)
A flat 30% on taxable profit, with monthly advances by the 17th and the annual return by 31 March. Dividends paid to individuals and to foreigners carry a further 10% withholding.
Profit sharing (PTU)
Employers share 10% of taxable profit with their employees each May. Since 2021 each employee gets at most three months’ salary or, if higher, the average PTU received in the last three years.
Payroll and local taxes
Each state charges a payroll tax, 3% in most and 4% in Mexico City; municipalities charge property tax and a tax on buying real estate. None is in the SAP tax procedure.
False invoices
SAT publishes the RFCs of companies that issue invoices for operations that never happened (article 69-B). Deductions and IVA on their invoices are lost. Issuing, selling or buying such invoices carries two to nine years in prison, and since 2026 so does giving them tax effect.
Withholding at payment
A Mexican company withholds tax when it pays individuals, carriers and foreign suppliers, never when it receives the invoice. The ISR and IVA withheld go to SAT with the monthly return, and the supplier gets an electronic withholding certificate. SAP delivers all of it as extended withholding tax at payment.
- 10%
ISR on fees and rent
Withheld by companies from individuals who invoice professional fees or rent; 1.25% when the individual is in RESICO.
- 10.67%
IVA on fees and rent
Two thirds of the 16% IVA, withheld by companies from the same individuals (5.33% at the 8% border rate).
- 4%
IVA on freight
Of the net amount, on road freight of goods, whether the carrier is a company or an individual.
- 100%
IVA on scrap and foreign goods
The whole IVA on scrap bought by companies, and on goods bought or rented from foreign residents without a Mexican establishment.
| Type | Income type | Rule |
|---|---|---|
| A1 | Professional servicesFees from individuals | ISR 10% and two thirds of the IVA |
| B1 | LeasingRent from individuals | ISR 10% and two thirds of the IVA |
| A3 | Land cargo transportationRoad freight | IVA 4% of the net |
| D1 | Waste purchaseScrap and recyclables | IVA 100% |
| A2 | RoyaltiesPayments abroad | ISR at the law’s or the treaty’s rate |
| A5 | Outsourcing companiesOld staffing withholding | Sample code withholds 6% IVA: repealed in 2021 |
Withheld amounts are paid to SAT by the 17th of the following month. The withholding certificate is a CFDI of its own, issued through the PAC.
Delete before go-live: the sample code A5 still withholds 6% IVA on outsourcing companies. The subcontracting reform repealed that withholding from September 2021, when staff outsourcing itself was banned.
RESICO individuals
Since 2022 many individuals pay ISR under RESICO at 1% to 2.5% of income. A company that pays them withholds 1.25% ISR instead of 10%, and still two thirds of the IVA.
Payments abroad
Royalties, technical assistance, interest and services paid to foreign residents carry ISR at the law’s rate or a lower treaty rate, with the supplier’s certificate of residence on file. IVA on imported services is self-assessed.
Posting example: a supplier invoice paid later, then its payment
The invoice is PPD, so its IVA waits for the payment
| Line | Debit (MXN) | Credit (MXN) |
|---|---|---|
| 1 · Supplier invoice (PPD) | ||
| Expense or inventoryProfessional fees from an individual | 10,000.00 | |
| IVA pending payment16% of the net, deferred tax code | 1,600.00 | |
| SupplierInvoice total, CFDI paid later (PPD) | 11,600.00 | |
| 2 · Payment (F110) and deferred tax transfer | ||
| SupplierCleared by the payment (100% of the invoice) | 11,600.00 | |
| ISR withheld10% of the net paid | 1,000.00 | |
| IVA withheldTwo thirds of the IVA paid | 1,066.67 | |
| BankWhat the supplier receives | 9,533.33 | |
| IVA creditableMoved from pending by Deferred Tax Transfer | 1,600.00 | |
| IVA pending paymentCleared for the part paid | 1,600.00 | |
You pay the withheld ISR and IVA to SAT by the 17th of next month and give the supplier a CFDI de retenciones. The IVA you withheld is creditable once paid to SAT, usually in the same monthly return.
Extended withholding tax, step by step
At payment, not invoice
Mexico withholds when the invoice is paid: use withholding types for payment posting, with the base on the net amount.
Types
Sample types for ISR and IVA at payment (M1, N2) and for their offsets (MH, NN), with recipient type 01.
Codes and rates
One code per rate and case, each assigned to an income type, such as A1 for professional services.
Official keys
Key 001 for ISR, 002 for IVA and 003 for IEPS, plus an official key IVA on the codes the DIOT must read.
Supplier master
Withholding types and codes, recipient type and exemption reason on the Vendor: Withholding Tax tab.
Exemptions
Exemption reasons and reduced rates per supplier, with validity dates, when the law or a treaty lowers the withholding.
Certificates
CFDI de retenciones from the payments, through the PAC; SAP’s printed format 37-A is from before e-certificates.
Reporting
The withheld ISR and IVA feed the monthly return and the DIOT, which reads the IVA withheld per supplier.
Customizing for Financial Accounting › Financial Accounting Global Settings › Withholding Tax › Extended Withholding Tax, with the Mexico activities under Calculation.
CFDI e-invoices, the PAC and the payment complement
An invoice in Mexico is an XML in SAT’s format (Annex 20, version 4.0), sealed with the company’s digital seal certificate and stamped by a PAC before it has any tax effect. The customer’s RFC, name, tax regime and postal code must match SAT’s records exactly, or the PAC rejects it. SAP Document and Reporting Compliance builds the XML and talks to the PAC through SAP Integration Suite.
- Post the invoice
SD billing or an FI invoice. The system creates an eDocument for it straight away.
VF01 · FB70
- Sign and send
SAP Integration Suite maps the data to Annex 20, signs it with your digital seal certificate (CSD) and sends it to the PAC.
Integration Suite
- PAC stamps it
The PAC checks the XML against SAT’s rules and catalogues and adds the tax stamp (timbre) with the UUID.
PAC
- SAT gets a copy
The PAC reports the stamped CFDI to SAT; the stamp, certificate and UUID come back to the eDocument.
UUID
- Send and track
Send the XML and PDF to the customer from the eDocument Cockpit, and cancel with a reason code if needed.
EDOC_COCKPIT
| Document | Type | Used for | In SAP |
|---|---|---|---|
| Invoice (ingreso)Sales, fees, rent | I | Every sale, with the customer’s RFC, name, tax regime and postal code, the CFDI use, and the payment method (PUE or PPD) and form. | DRCMexico eInvoice, from SD billing or FI invoices. |
| Credit note (egreso)Returns and discounts | E | Linked to the UUID of the invoice it corrects. | DRCSame process, from credit memos. |
| Payment (pago)Complement 2.0 since 2023 | P | One for each payment received on a PPD invoice, by the 5th of the following month, with the IVA of the part paid. | DRCMexico ePayment, single or consolidated. |
| Transfer (traslado)Goods on the road | T | Proves who owns goods in transit, at zero value; with the Carta Porte complement for trucks on federal roads. | DRCMexico Delivery Note from goods issues; Carta Porte not in the guide. |
| Payroll (nómina)Every pay run | N | One per employee and payment, with the ISR withheld and the social security data. | StandardSAP HCM Payroll Mexico. |
| Withholding certificateRetenciones 2.0 | — | A CFDI with its own schema for ISR and IVA withheld from suppliers and on payments abroad. | DRCMexico Withholding Tax Certificates (EDOC_MX_WTC). |
| Global invoiceSales to the public | I | A daily, weekly or monthly summary of sales to consumers who did not ask for a CFDI, with the generic RFC. | GapNot in the SAP Help guide. |
| Export invoiceForeign trade complement | I | Exports of goods under a definitive export declaration carry the foreign trade complement. | GapComplement not in the SAP Help guide. |
PUE or PPD
Paid in full by the end of the month: PUE, and the invoice alone moves the IVA. Paid later or in instalments: PPD, and each payment needs a payment complement by the 5th of the next month.
Cancellation
A CFDI is cancelled with a reason code: 01 errors with a replacement, 02 errors without one, 03 operation not carried out, 04 a sale later invoiced in a global invoice. Above MXN 1,000 the customer usually has to accept, unless it is cancelled within 24 hours.
Consolidated payments
When a customer pays more than 999 invoices at once, or with two payment methods, the Create Consolidated ePayments report joins several payment documents in one complement.
EDOC_MX_SUMMARY
Older solutions
The guide still documents the CFDI functions inside FI and SD from before DRC (CFDI_MONITOR, IDocs, digital signature). New projects use the eDocument processes.
CFDI_MONITOR
The Carta Porte complement (version 3.1 since July 2024), the foreign trade complement on export invoices and the global invoice for sales to the public are not described in the SAP Help guide. Plan them with your PAC or a partner, and keep the Mexico SAP Notes and the Integration Suite package current: SAT updates its catalogues several times a year.
Statutory reporting: the DIOT, the returns and electronic accounting
SAT already holds every CFDI, so the returns are short and the cross-checks long. Each month a company pays ISR, IVA and withholding in one federal return, files the DIOT with the IVA paid to each supplier and sends its trial balance. SAP’s Run Statutory Reports produces the files; none of them goes to SAT directly.
| Report | When | SAP report | Output | Notes |
|---|---|---|---|---|
| Monthly IVA return | Monthly, by the 17th | DRCMX_VAT_REP | List | The IVA section of SAT’s form, keyed into the portal; ISR and withholding come from your own workpapers. |
| DIOT | Monthly, by the end of the following month | DRCMX_VAT_DCL | TXT | 54-field format; SAT’s platform no longer takes the old 25-field layout. |
| Chart of accounts | When accounts change | DRCMX_CHTACCTS_DCL | XML | With SAT’s grouping codes. |
| Trial balance | Monthly | DRCMX_ACCT_BAL_REP | XML | Month 13: MX_ACCT_BAL_P13_REP. |
| Journal entries | On request | DRCMX_JE_DETAILS | XML | UUID and payment details per entry. |
| Ledger detail and folios | On request | DRCMX_ACCT_AUX · MX_FOLIOS_AUX | XML | |
| Withholding certificates | For each payment or month | DRCEDOC_MX_WTC | CFDI | Through the PAC, not Run Statutory Reports. |
| Annual corporate return (ISR) | By 31 March | Gap— | From the ledger, the tax depreciation area and the inflation adjustment workpapers. | |
| PTU | Paid by 30 May | Gap— | 10% of the taxable profit, capped per employee. |
Nothing goes straight to SAT
The Mexican reports in Run Statutory Reports have no link to SAT: the DIOT is uploaded on SAT’s DIOT platform, the electronic accounting XML through the tax mailbox, and the IVA figures are keyed into the monthly return.
Retired reports
The classic VAT return, the A-29 vendor file, the electronic accounting programs (RPFIGLMX_…) gave way to their DRC versions (SAP Note 2480067). The Top 50 customers and vendors reports are no longer supported (SAP Note 3729109).
Treasury: SPEI, the FIX rate and payment complements
Companies pay by SPEI transfer to an 18-digit CLABE, which settles in seconds at any hour. Cash and cheques survive in small businesses. SAP Help offers one bank format, an old Banamex layout: each bank’s file is built in DMEE or sent host-to-host.
| System | Run by | Speed | Typical use |
|---|---|---|---|
| SPEI | Banco de México | Seconds, around the clock | Supplier, payroll and tax payments to an 18-digit CLABE. |
| SPID | Banco de México | Same day | US dollar transfers between companies’ accounts in Mexican banks. |
| DiMo and CoDi | Banco de México and banks | Seconds | Small payments to a mobile number (DiMo) or by QR code (CoDi). |
| Cheques | Banks | Next business day | Still in use; SAP prints them with form F110_MX_CHEQUE. |
Collections matter as much as payments: every customer payment on a PPD invoice produces a payment complement, so incoming payments must be posted against the right invoices and quickly.
Payment flow in SAP
- Payment run
ISR and IVA withheld here; the clearing marks the IVA of the part paid for transfer.
F110
- Payment medium
One format per bank in DMEE; the delivered method writes an old Banamex layout.
DMEE
- Certificates
CFDI de retenciones for the suppliers withheld, through the PAC.
EDOC_MX_WTC
- Customer payments
Each payment on a PPD invoice creates a payment complement for the PAC.
FEBANEDOC_COCKPIT
- Deferred tax transfer
Moves the IVA of paid invoices to the final accounts before the return.
RFUMSV50
FIX in SAP
Load the FIX into the average rate type each business day. For tax, use the rate published in the DOF the day before the transaction; exchange differences are taxable or deductible when they arise.
Dollar accounts
Companies may hold US dollar accounts in Mexican banks and pay each other in dollars through SPID; payments between individuals in dollars are restricted.
Cash limits
Payments above MXN 2,000 must go by transfer, cheque or card to be deductible, and the payment method on the CFDI must match how it was paid.
Fiscal year and fixed assets
The fiscal year is the calendar year for every company, so the dates are the same for all. These follow the 2026 year:
Every month, by the 17th
Provisional ISR, IVA and withholding payments for the month before, in one federal return.
Every month
DIOT by the end of the following month; trial balance by the 3rd of the second month after.
31 December
Year-end closing; tax depreciation with the INPC and the annual inflation adjustment follow for the return.
By 31 March 2027
Annual corporate return (ISR), which also sets the base for PTU.
By 30 April 2027
Shareholders approve the 2026 statements.
By 30 May 2027
PTU paid to employees.
Large companies also file the ISSIF information return with the annual return; the largest, and listed companies, file a tax audit report (dictamen fiscal) by 15 May instead.
| Area | Valuation | Use |
|---|---|---|
| 01 | Book depreciationMXN | NIF or IFRS statements |
| 15 | Tax depreciationMXN | ISR, at the maximum rates |
| 16 | Income tax adjustmentsMXN | INPC update of the deduction |
| 32 · 33 | Book depreciationGroup (EUR) · hard (USD) | Group reporting |
| 03 · 04 | Inflation adjustmentMXN | Not while NIF B-10 sees no inflation |
| 18 | Asset tax adjustmentsMXN | Asset tax abolished in 2008 |
Depreciation starts on the 1st: SAP’s Mexican period control method starts depreciation in the month of purchase only when the asset is acquired on the first day of the month; otherwise it starts the month after (keys MX01 to MX04).
| Asset | Rule |
|---|---|
| Buildings | 5% a year. |
| Furniture and office equipment | 10% a year. |
| Cars | 25% a year, on at most MXN 175,000 (MXN 250,000 for electric and hybrid cars). |
| Computers and peripherals | 30% a year. |
| Machinery | By industry (article 35), 10% where no other rate applies. |
| Plan México | New assets, with the committee’s approval: 41% to 91% deducted at once in 2025 and 2026, 35% to 89% until September 2030. |
Tax depreciation is updated with the INPC each year; book depreciation follows the asset’s useful life under NIF C-6.
Controlling: dollars, imports and the 2026 tariffs
Mexico has no cost accounting law and low inflation, so CO works as anywhere else. What shapes the design is the dollar, the import content of manufacturing and the tariffs of 2026, which raised duties to between 5% and 50%, mostly 25% or 35%, on 1,463 tariff lines from countries without a trade agreement.
Landed cost of an import under the 2026 tariffs
Definitive import, duties on the customs value
A purchase priced in dollars reaches inventory with the duty and the customs fee on top. Pick the origin of the goods:
| Line | MXN |
|---|---|
| Customs valueUSD 10,000 plus 5% freight and insurance, at 17.25 pesos per dollar | 181,125.00 |
| Import duty (IGI)35% of the customs value | 63,393.75 |
| Customs processing fee (DTA)8 per mil of the customs value | 1,449.00 |
| Import IVA16% of value, IGI and DTA: a credit, not cost | 39,354.84 |
| Inventory costCustoms value, IGI and DTA (plus the broker’s fees) | 245,967.75 |
| Extra cost against USMCA origin35.8% more on the landed cost | 64,842.75 |
Temporary imports under IMMEX defer the duty; the import IVA is offset by a tax credit only for companies with the IVA and IEPS certification. Both become due if the goods stay in Mexico or the program does not cover them. Broker fees and inland freight add to the cost.
Setting up CO for a Mexican plant
CK11NCK40NCKMLCP
Two currencies from day one
MXN with the US dollar as hard currency, which the template activates. Many prices, imports and IMMEX costs are in dollars.
Landed cost conditions
Duties, the DTA, freight and broker fees as planned delivery costs, so imports reach inventory at full cost. Import IVA is a credit, not cost.
Revalue when tariffs change
The 2026 tariffs raised some import costs by a quarter to a half: rerun costing (CK11N, CK40N) for the materials affected.
Actual costing
The Material Ledger in MXN and USD spreads exchange and price differences to inventory and cost of sales.
Labour burden
Payroll tax, social security, the housing fund and PTU on top of salaries, carried into activity prices.
Controlling area currency types: 10 company code currency, 30 group currency, 40 hard currency. The type cannot change once a company code is productive.
Other local effects on the design
Taxes that are cost
IEPS without credit, the state payroll tax, IVA on exempt activities and import duties are cost. Creditable IVA and withholdings are not.
IMMEX and maquila
Temporary imports under IMMEX defer the duty, and certified companies offset the import IVA with a tax credit; a maquiladora usually earns a cost-plus margin set by transfer pricing rules.
Transfer pricing
Related-party transactions need arm’s-length prices and documentation above set thresholds. Margin Analysis by partner company gives the figures.
PTU in margins
Ten percent of taxable profit goes to employees each May: accrue it monthly so margins are not overstated.
Border sales
Sales delivered in the border regions carry 8% IVA, not 16%. Derive the region from the ship-to so the tax code and Margin Analysis follow.
Two sets of numbers
Book depreciation in area 01, tax depreciation in area 15: deferred tax and the annual return come from the difference.
Other modules at a glance
Outside Finance, the Mexican requirements reach SAP through billing, supplier invoices, goods movements, payroll and customs.
- SalesDRC
Billing becomes a CFDI
CFDI use, payment method and form, tax regime and postal code from the customer; the eDocument is created at billing and stamped by the PAC.
- ProcurementConfigure
Supplier invoices need the UUID
Deferred tax codes until payment, and the supplier’s UUID kept with the invoice; checking it against SAT is outside the standard.
- LogisticsGap
Transfer CFDI and Carta Porte
The delivery note CFDI is standard; the Carta Porte complement for trucks comes from outside the SAP guide.
- PayrollStandard
SAP HCM Payroll Mexico
IMSS, INFONAVIT, ISR on salaries, a 15-day year-end bonus (aguinaldo), 12 days of holiday and the payroll CFDI.
- Foreign tradeGap
Customs and IMMEX
Import declarations are filed by the broker; IMMEX companies need inventory control under Annex 24 and the 2026 tariffs in their costs.
- TravelStandard
Travel expenses
Foreign receipts reimbursed in US dollars as hard currency, and payment in local and hard currency.