Sage X3 ERP Mexican Fiscal Enhancement for Better Control of Taxes

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sage x3Net at Work has designed the Mexican Fiscal Enhancement specifically for Sage X3 in their home country and have at least one subsidiary in Mexico. This custom programming streamlines the process of converting currency while dealing with two disparate tax systems. Most importantly, it makes it easier to be compliant with the requirements set forth by the Mexican Tax Authority. It does so by taking into account the most important aspects of the laws, allowing companies to utilize Sage X3 ERP for their operations in Mexico.

Sage X3 Functionalities of the Mexican Fiscal Enhancement include:

  • Retentions
  • Value-added Tax Management
  • Electronic Invoicing
  • Electronic Accounting
  • Pedimentos Traceability
  • DIOT Reporting
  • ISR Reporting


A portion of payments to specific types of vendors – typically sales tax, value-added tax, or both – is frequently withheld in compliance with local Mexican Fiscal Enhancement, and the retention can be recognized at the time of the vendor’s invoice or at the time of payment. This can get confusing for the business responsible for paying the taxes on behalf of the vendor, which is you.

The Mexican Fiscal Enhancement reduces the confusion and handles these withholdings by configuring vendors and retention codes and issuing required certificates and reports.
Value-added Tax Management Mexican law requires withholding and reporting the value-added tax collected from a customer or issued to a vendor at the time of full or partial payment.
Electronic Invoicing Companies that invoice more than 250,000 pesos are required to generate electronic documents for invoices, credit memos, and debit memos. The electronic invoicing feature of the Mexican Fiscal Enhancement satisfies the mandatory requirements set forth by the Mexican Tax Authority. In addition, integration with a third party Authorized Certification Provider fulfills the mandatory part of the process in which they sign the documents digitally to ensure authenticity and integrity.

Electronic Accounting

Companies in Mexico are now required to maintain electronic accounting records and submit them to the Mexican Tax Authority on a regular basis. This Mexican Fiscal Enhancement supports the creation and delivery of the five reports required – Chart of Accounts, GL Trial Balance, GL Transactions, GL Transactions with Specific Details, and AP Voucher Details from Supplier Electronic Invoices.

Pedimentos Traceability

A pedimento is a form that Mexican importers use for international trade. It is considered proof that goods have been imported legally and that taxes have been paid. It also includes information about the goods, including description, quantity, classification, origin, value, weight, and size.

The Mexican government offers tax benefits to companies that import goods temporarily. The ERP user must control and manage information regarding those goods in order to receive the benefits.

The Mexican Fiscal Enhancement custom programming handles this by capturing all of the information and organizing it; it can also trace the life cycle of the imported goods by matching the item receipt with pedimento information and sorting it by serial/lot number.

DIOT Reporting

This required report provides a company’s purchasing and sales activities with third parties. A specific file format is required and must be uploaded to the Tax Authority web portal.
ISR Reporting An ISR report calculates the period income by deducting corresponding expenses minus losses pro-rated from prior years. It also manages a variety of rules, such as the monthly sales tax based on income payments.

Staying compliant with the Mexican Tax Authority while being headquartered in another country isn’t easy. With the Sage X3 Mexican Fiscal Enhancement, created by Net at Work, however, it can be easier. The custom program allows you to obtain the tax information required by the Mexican Tax Office and provides reporting and calculations for the necessary taxes. It also compiles information into the reports necessary to meet the Mexican government’s strict tax regulations.

And to make this software enhancement even more useful, we’re already planning future enhancements, including a Mexican business word pack and IMMEX and Annex 24 Compliance for Inventory Control.

Our Mexican Fiscal Enhancement custom-programmed for Sage X3 has met with a lot of success – companies in Spain, France, and Canada are already using it. To learn about using it for your business, contact us today.