documentation/content/applications/finance/accounting/fiscal_localizations/localizations/mexico.rst

======
Mexico
======

Webinars
========

Below you can find videos with a general description of the localization, and how to configure it.

- `VIDEO WEBINAR OF A COMPLETE DEMO <https://youtu.be/JSqQo5eRqlI>`_.

Introduction
============

Odoo Enterprise users in Mexico have free access to a set of modules that allow them to issue
electronic invoices according to the specifications of the SAT for `version 3.3 of the CFDI
<http://omawww.sat.gob.mx/informacion_fiscal/factura_electronica/Documents/GuiaAnexo20Global.pdf>`_,
a legal requirement as of January 1, 2018. These modules also add relevant accounting reports (for
example, the DIOT), and enable foreign trade, with support for associated customs operations.

With the Mexican location in Odoo you will not only be able to comply with the legal requirements to
invoice in Mexico, but also use it as your accounting system, satisfying the normal needs of the
market. This makes Odoo the perfect solution to manage your business in Mexico.

Pre requirements
================

Before installing the modules and making the necessary configurations to have the Mexican
localization in Odoo, it is necessary to meet the following requirements:

#. Be registered with the SAT and have an RFC.
#. Have a `Certificate of Digital Seal
   <https://www.gob.mx/sat/acciones-y-programas/certificado-de-sello-digital>`_ (CSD).
#. Choose a PAC and purchase stamps. Currently the Mexican location in Odoo works with the following
   PACs: `Solución Factible <https://solucionfactible.com/>`_, `Quadrum (formerly Finkok)
   <https://cfdiquadrum.com.mx/index.html>`_ and `SW Sapien - Smarter Web <https://sw.com.mx/>`_.
#. Have knowledge and experience with billing, sales and accounting in Odoo. This documentation
   contains only the information necessary to enable the use of Odoo in a company based in Mexico.

Modules
=======

To install the Mexican localization module, go to :menuselection:`Apps`, then remove the default
filter "Apps" and search for ``l10n_mx``.

.. image:: mexico/mx_mo_01.png
   :align: center
   :alt: Installation of the Mexican localization module in Odoo Apps

.. note::
   If you created the database from `www.odoo.com <https://www.odoo.com>`_ and chose "Mexico" as the
   country when creating your account, some of the Mexican localization modules will have been
   installed automatically. In that case we observe that some modules have a button that says
   "Install", while others will instead have a label that says "Installed".

The following modules are necessary for all databases that require Mexican localization:

#. | **Mexico - Accounting (l10n_mx)**
   | All the basic data to manage accounting, taxes and the chart of accounts. The installed chart
     of accounts is based on `the SAT account grouping code
     <https://www.gob.mx/cms/uploads/attachment/file/151586/codigo_agrupador.pdf>`_.
#. | **EDI for Mexico (l10n_mx_edi & l10n_mx_edi_extended)**
   | Necessary for electronic transactions, CFDI 3.3, payment complement, and addenda on invoices.
#. | **Odoo Mexican localization reports (l10n_mx_reports & l10n_mx_reports_closing)**
   | All mandatory reports for electronic accounting. (Requires the accounting application).

The following modules are optional, and should be installed only if they meet a specific
organization requirement. Installing these modules is not recommended unless you are sure they
are needed as they add fields that can unnecessarily complicate form filling.

#. | **Odoo Mexico Localization for Stock / Landing (l10n_mx_edi_landing)**
   | This module allows managing the requests as part of the shipping costs.
#. | **Odoo Mexican XML Polizas Export (l10n_mx_xml_polizas)**
   | With this module, you will be able to export your Journal Entries in XML ready to be uploaded
     to the SAT.

Configuration
=============

Enable electronic invoicing
---------------------------

Go to :menuselection:`Settings --> Accounting --> Customer Invoices`, and make sure that the option
**Mexican Electronic Invoicing** is enabled. With this you will be able to generate the signed
invoice and also generate the signed payment complement, all automatically integrated into the
normal billing flow in Odoo.

.. image:: mexico/mx_co_01.png
   :align: center
   :alt: Steps to enable electronic invoicing

.. _mx-legal-info:

Enter legal information
-----------------------

After verifying the general configuration, you must verify that the company is configured with the
correct data. To do so, go to :menuselection:`Settings --> General Settings --> Companies`, and
click on *Update information* under your company name.

.. image:: mexico/mx_co_02.png
   :align: center
   :alt: Update the company's details in the Settings of Odoo

In the resulting form, put your full address (including zip code), RFC (VAT number), and the rest of
the data.

.. important::
   From a legal point of view, a Mexican company must use the local currency (MXN). Therefore, Odoo
   does not provide features to manage an alternative configuration. If you want to manage another
   currency, let MXN be the default currency and use a :doc:`pricelist
   </applications/sales/sales/products_prices/prices/pricing>` instead.

.. warning::
   Make sure that in the address, for the Country field, "Mexico" is chosen from the list of
   countries that Odoo shows, because if it is entered manually there is a risk of creating a "new
   country" in the system, which it will result in errors later when the CFDIs are generated.

   .. image:: mexico/mx_co_03.png
      :align: center
      :alt: Company data information

.. tip::
   If you want to test the Mexican localization, you can configure the company with a real address
   within Mexico (including all fields) and add ``EKU9003173C9`` as RFC.

Set the fiscal regime of the company
------------------------------------

The following is to indicate what is the fiscal regime of the company that we are configuring, which is
done through a pre-existing field in Odoo called "Fiscal Regime".

Go to :menuselection:`Settings --> Accounting --> Electronic Invoicing (MX) --> Fiscal Regime`, and
select the option that applies to your company from the drop-down list.

.. image:: mexico/mx_co_04.png
   :align: center
   :alt: Set the Fiscal Regime in Odoo Accounting

.. tip::
   For the test environment: Select the option **General Law on Legal Persons** from the drop-down
   menu.

Contacts Configuration
----------------------

When creating a contact to be invoiced in Odoo, the following information must be configured for
invoice validation: **complete address** (including postal code, city, state, country, etc.) and the
**VAT** number.

.. image:: mexico/mx_co_05.png
   :align: center
   :alt: Contact form example

Taxes Configuration
-------------------

A necessary configuration for electronic invoicing to work correctly in Odoo is to add the factor
type associated with sales taxes.

To make this configuration you first have to go to :menuselection:`Accounting --> Configuration -->
Settings --> Taxes`.

Within the list of taxes that are pre-loaded, select the option *Sales* on the filter, this is to
see only taxes associated with sales, which are those that are validated for the stamping of
invoices. Open the form view of any of the sales taxes, select the **Advanced Options** tab and
within the field **Factor Type** choose the option *Tasa*.

.. image:: mexico/mx_co_06.png
   :align: center
   :alt: Taxes configuration

Do the same for all the sales taxes that the company needs, either those that come by default in
Odoo, or those that you add that are necessary for your company bill.

.. tip::
   For the 0% VAT tax, select the option *Exento* instead of *Tasa* within the **Factor Type**
   field.

When registering a payment, Odoo will carry out the movement of taxes from the **Cash Basis
Transition Account** to the account set in the **Definition** tab. For such movement, a tax base
account will be used ("Base Imponible de Impuestos en Base a Flujo de Efectivo" - **do not eliminate
this account**) in the Journal Entry when reclassifying taxes.

.. image:: mexico/mx_co_07.png
   :align: center
   :alt: Taxes accounts

Products Configuration
----------------------

All products to be sold need to have the SAT code associated with their classification so that the
invoices do not give an error when validating.

To configure products, go to the **General Information** tab and in the **UNSPSC Product Category**
field select the category that represents that product. The process can be done manually or through
a bulk import.

.. image:: mexico/mx_co_08.png
   :align: center
   :alt: Configure products

PAC Configuration to sign invoices
----------------------------------

Another important step to configure electronic invoicing in Odoo is to enter the PAC which you are
working with and the credentials. That way, electronic invoicing will be enabled.

.. warning::
   Remember that you must register directly with the PAC of your choice before you start creating
   invoices from Odoo. We have the following PACs available: `Quadrum
   <https://cfdiquadrum.com.mx/index.html>`_, `Solución Factible <https://solucionfactible.com/>`_
   and `SW Sapien - Smarter Web <https://sw.com.mx/>`_.

   You must process your **Private Key (CSD)** with the SAT institution before following these
   steps. If you do not have this information, try with the Test Credentials and return to this
   process when you have the SAT Credentials for your production environment to work with real
   transactions.

To add the credentials, go to :menuselection:`Settings --> Accounting --> Electronic Invoicing
(MX)`. Under the **PAC MX** section, enter the name of your PAC with your credentials (PAC username
and PAC password).

.. image:: mexico/mx_co_09.png
   :align: center
   :alt: PAC credentials

.. tip::
   If you check the checkbox **Test Environment**, it is not necessary to enter a PAC username
   and/or password, but you must select a PAC from the drop-down list.

Finally, upload the digital certificates of the company within the section **MX Certificates**.
Click on *Add a line*, a window will open, click on *Create* and from there you can upload your
digital certificate, your key and your password. To finish, click on *Save and Close*.

.. image:: mexico/mx_co_10.png
   :align: center
   :alt: Certificate and key

.. tip::
   If you still do not have one of the contracted PACs and you want to test electronic invoicing you
   can use the following SAT test certificates:

   - :download:`Certificate <mexico/certificate.cer>`
   - :download:`Certificate Key <mexico/certificate.key>`
   - **Password:** ``12345678a``

   You must also configure the company with a real address within Mexico (including all fields) and
   add ``EKU9003173C9`` as the **VAT** number.

Workflows
=========

Electronic invoicing
--------------------

The invoicing process in Odoo is based on `Annex 20
<http://omawww.sat.gob.mx/tramitesyservicios/Paginas/anexo_20_version3-3.htm>`_ version 3.3 of
electronic invoicing of the SAT.

To start invoicing from Odoo, an invoice must be created using the standard invoicing flow, that is,
either from a sales order or from the invoice menu in the Accounting application.

The invoice will be stamped after clicking on *Validate*, before that the status is still in draft
mode and changes can be made to it. After validating the invoice, you can verify that it was
successfully stamped, as it would look like this:

.. image:: mexico/mx_ft_01.png
   :align: center
   :alt: Creating an invoice

The details of the invoice will be reflected in the Chatter, which is what you see on the right of
the invoice in the attached image. There you can find your XML sent to the SAT and the status of the
stamping, that is, if it was validated or not.

To send the stamped invoice to your client, you can send the XML together with the PDF file directly
from Odoo, by clicking the *Send and Print* button. You can also download the PDF file directly to
your computer by clicking the *Print* button and selecting the desired option.

.. tip::
   Depending on the size of the screen, the Chatter can be seen next to or below the document.

Invoicing Special Cases
-----------------------

Foreign Trade Invoice
~~~~~~~~~~~~~~~~~~~~~

The foreign trade invoicing process in Odoo is based on the corresponding `SAT regulation
<http://omawww.sat.gob.mx/tramitesyservicios/Paginas/complemento_comercio_exterior.htm>`_. SAT
electronic invoicing version is 3.3.

What do we mean when we talk about foreign trade?
*************************************************

Since January 2018, the SAT requires a Foreign Trade Supplement in export transactions.

What is the Foreign Trade complement?
*************************************

It is an Annex to the electronic invoice that allows the identification of exporters and importers,
in addition to expanding the description of the merchandise sold.

What information can be incorporated in this new complement?
************************************************************

- Information on the operation type it covers.
- Tax identification data of the issuer, receiver or recipient of the merchandise.
- Description of the goods to be exported.

Who is obliged to generate it?
******************************

Taxpayers who carry out export operations of A1 type.

To which exports does the A1 type apply?
****************************************

- Entry of goods of foreign origin to remain in national territory for an unlimited time.
- Exit of goods from the country to stay abroad for an unlimited time.
- Definitive importation of vehicles by diplomatic and consular missions and offices of
  international organizations and their foreign personnel, in accordance with the import of vehicles
  in diplomatic exemption.

Is Foreign Trade the same as Pedimentos?
****************************************

Not necessarily, the Pedimentos are directly related to the process of Importing goods, while the
Foreign Trade Complement is related to the Exporting process.

Required Modules
****************

In order to generate foreign trade invoices, the following modules must be installed.

- EDI for Mexico (l10n_mx_edi)

  .. image:: mexico/mx_ft_02.png
     :align: center
     :alt: EDI para México

- EDI for Mexico (l10n_mx_edi_extended)

  .. image:: mexico/mx_ft_03.png
     :align: center
     :alt: EDI Advanced Features

Company
*******

Configure the company with a valid postal code, and if you have a colony code, this should match
with the corresponding Zip Code. At the same time, remember to place the Tax Identification Number
(VAT Number - RFC).

.. image:: mexico/mx_ft_04.png
   :align: center
   :alt: Contact address configuration

Receiving Client
****************

Generally it will be a foreign client, in which you must verify that you have at least the following
fields completed with the corresponding information.

.. image:: mexico/mx_ft_05.png
   :align: center
   :alt: External trade invoice

.. warning::
   - The customer's delivery address must also contain the zip code.
   - The format of the foreign VAT (Tax Identification Number) will be validated as appropriate in
     each Country (Example: Colombia ``123456789-1``)
   - In the XML, the VAT is automatically replaced by the Generic VAT for abroad transactions:
     ``XEXX010101000``

Products
********

At the product level there must also configure some parameters in the following fields.

.. image:: mexico/mx_ft_06.png
   :align: center
   :alt: SAT product code

.. image:: mexico/mx_ft_07.png
   :align: center
   :alt: Tariff fraction

.. warning::
   - You must select the **UMT Aduana** (Unit of Measure) in *KG* since it is only accepted by the SAT
   - The weight refers to **the unit weight** of the product
   - The tariff item must be from the code UoM of Kilograms (**UoM = 01**)

   Although the product is sold in pieces or in units, the value that must be registered with
   customs in the tariff item must be reported in Kilograms.

Invoicing Flow
**************

When creating the foreign sales invoice, you must select the **Incoterm** corresponding and the
**Need external trade?** checkbox must be checked.
With this configuration enabled, the **PDF** and the complement **XML** of the invoice will have the
necessary information to comply with the SAT regulations.

What is the certificate of origin and when is it used?
******************************************************

The **Certificate Source** (or proof of origin) is the document that allows an importer or exporter
to prove the country or region from which a good is considered to originate and serves to receive
tariff preferences generally agreed in trade agreements.

.. image:: mexico/mx_ft_08.png
   :align: center
   :alt: Incoterm on invoice

.. image:: mexico/mx_ft_09.png
   :align: center
   :alt: PDF external Trade

Assign Pedimentos
~~~~~~~~~~~~~~~~~

If your company imports products and you need to add the **Pedimentos** number in your invoices, you
can also configure Odoo to record the process.

First, go to :menuselection:`Apps`, remove the "Apps" filter and search for ``Mexico``, ``mx`` or
``l10n_mx``. Then, install **Odoo Mexico Localization for Stock / Landing module
(l10n_mx_edi_landing)**.

.. image:: mexico/mx_ft_10.png
   :align: center
   :alt: MX stock module

.. tip::
   The l10n_mx_edi_landing module depends on the **Inventory** and **Sales** apps, since the
   products must be entered into inventory to be able to add their Pedimentos number to the
   corresponding receipt of products.

Then, go to :menuselection:`Inventory --> Settings --> Settings`. Within the options, activate
**Landed Costs**. This option will allow adding the Pedimentos number to the corresponding product
receptions.

.. image:: mexico/mx_ft_11.png
   :align: center
   :alt: Costos en destino

.. tip::
   In order to use landed costs, the accounting configuration of the inventory valuation of the
   products must be configured as *Automated* and its costing method *Average* or *FIFO* (first in,
   first out).

To associate the Pedimentos number indicated with an import (merchandise reception) a new **Landed
Cost** must be created. They can be accessed through :menuselection:`Inventory --> Operations -->
Landed Costs`. There you will find the option to attach the Pedimentos number.

.. image:: mexico/mx_ft_12.png
   :align: center
   :alt: Customs number

.. warning::
   You can only add the Pedimentos number once, so be careful when associating the correct number
   with the transfer(s).

   .. seealso::
      :doc:`/applications/inventory_and_mrp/inventory/management/reporting/integrating_landed_costs`.

Payment Terms
~~~~~~~~~~~~~

The **Payment Terms** are already configured in Odoo when installing the Mexican localization, this
means that if you go to :menuselection:`Accounting --> Configuration --> Payment Terms`, you will
find the default list in Odoo.

.. image:: mexico/mx_ft_13.png
   :align: center
   :alt: Payment terms

In Mexico you can have 2 types of payments: PPD or PUE. These are given by the **Payment Term**
chosen (or if there is no chosen payment term it will be based on the due date of the invoice).

PPD Payments
************

To configure PPD payments (payment in installments or deferred) it is only necessary to choose a
date expiration date for your invoice and Odoo will detect if it is after the first day of the
following month (in this case no payment term is set - with the payment term you can also stipulate
if it will be PPDo PUE).

PUE
***

To configure PUE payments (payment in a single payment) you must select an invoice due date within
the same month or choose a payment term that does not imply changing the due month (immediate
payment, 15 days, 21 days, all falling within the current month).

Payments
--------

`According to the SAT documentation
<https://www.sat.gob.mx/consultas/92764/comprobante-de-recepcion-de-pagos>`_, there may be 2 types
of payments: **PUE** or **PPD**. In both cases the payment process in Odoo is the same, the
difference of whether the payment is PUE or PPD lies in the payment term of the invoice - as
indicated in the previous point in the **Payment Terms**.

If the payment is a PPD type, Odoo will generate the corresponding payment complement automatically
when you *Confirm* it. If the payment is PUE, the payment complement will not be generated. The type
of payment is visible from the invoice in the field called **Payment Policy** and takes the invoice
date and the due date as parameters.

.. image:: mexico/mx_ft_14.png
   :align: center
   :alt: Payment policy

When configuring the contacts that will be used when making payments, you must configure the banks
in the **Accounting** tab, place both the Bank, Account Number and CLABE.

.. image:: mexico/mx_ft_15.png
   :align: center
   :alt: Contact bank account

Register PPD Payments
~~~~~~~~~~~~~~~~~~~~~

If at the time of registering a payment it is of type PPD then a Payment Complement (XML) will be
generated with its details.

The payment can be registered from the invoice and once it is confirmed, the invoice will be paid
and with its payment associated.

.. image:: mexico/mx_ft_16.png
   :align: center
   :alt: PPD payments

.. image:: mexico/mx_ft_17.png
   :align: center
   :alt: PPD payment information

.. note::
   The journal will be the payment method where you receive or send the payment from. You must also
   associate a **Payment Way** and a Recipient Bank Account (this last one must be created within the
   contact associated with the invoice).

Once the payment is made, it will be associated with the corresponding invoice and its status will
be *In Payment* since the payment will be effectively validated when it is bank reconciled.

.. seealso::
   :doc:`../../bank/reconciliation/use_cases`.

.. image:: mexico/mx_ft_18.png
   :align: center
   :alt: PPD payment created

.. note::
   The **Recipient Bank Account** is the one attached to the **Accounting** tab in the contact
   associated with the invoice, it must be valid so that the stamped payment complement can be
   created.

.. warning::
   - When making a payment in MXN for an invoice in USD, the payment must be created using the
     :guilabel:`Register Payment` button **on the invoice view** and not separately as a payment.
     Otherwise, the payment CFDI is not correctly generated.
   - As such, a payment in MXN cannot be used to pay multiple invoices in USD. Rather, the payment
     should be separated into multiple payments created using the :guilabel:`Register Payment`
     button on the corresponding invoices.

Register PUE Payments
~~~~~~~~~~~~~~~~~~~~~

If at the time of registering a payment it is of the PUE type then in this case a Payment Complement
(XML) will not be generated since it is not necessary.

The payment can be registered from the invoice and once it is confirmed, the invoice will be paid
and with its payment associated.

.. image:: mexico/mx_ft_19.png
   :align: center
   :alt: PUE payments

.. image:: mexico/mx_ft_20.png
   :align: center
   :alt: PUE payment information

.. image:: mexico/mx_ft_21.png
   :align: center
   :alt: PUE payment created

.. note::
   In this case it is not created as a payment supplement by the nature of it.

Down Payments
~~~~~~~~~~~~~

This is a special case in which we must receive an advance payment from a client to later be applied
to an invoice.

.. seealso::
   `The official documentation for registration of down payments in Mexico
   <http://omawww.sat.gob.mx/tramitesyservicios/Paginas/documentos/Caso_uso_Anticipo.pdf>`_.

Process to create advance in Mexico
***********************************

#. Issuance of electronic invoicing with the amount of the advance payment received.
#. Issuance of the electronic invoice for the total value of the operation (full invoice). (CFDI
   Origin: 07 | Advance invoice, point 1)
#. Issuance of the electronic invoice with the *Egreso* type. (CFDI Origin: 07 | Invoice_total,
   point 2)

Steps to follow in Odoo
***********************

#. Preparation: Create the product
#. Down Payment issuance of the electronic invoice for the amount of the advance payment received
#. Issuance of the electronic invoice for the total value of the operation
#. Add a credit note from the down payment invoice

Preparation: Create the Product
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

The Down Payment product must be type *Service* and must use the **NSPSC Product Category**:
*84111506 Servicios de facturación*.

.. image:: mexico/mx_ft_22.png
   :align: center
   :alt: Down payment product

Add the down payment product as default to be used from the Odoo configurations.

.. image:: mexico/mx_ft_23.png
   :align: center
   :alt: Down payment configuration

Issuance of the electronic invoice for the value of the advance received
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Create the Advance Payment Invoice: From the sales order, create an advance payment invoice for the
percentage of the purchase to be paid in advance (or for a fixed amount).

.. image:: mexico/mx_ft_24.png
   :align: center
   :alt: Applying down payment

Validate invoice with the down payment product.

.. image:: mexico/mx_ft_25.png
   :align: center
   :alt: Confirm down payment

.. image:: mexico/mx_ft_26.png
   :align: center
   :alt: Folio fiscal down payment

Register Payment to the advance payment invoice.

.. image:: mexico/mx_ft_27.png
   :align: center
   :alt: Down payment invoice

.. image:: mexico/mx_ft_28.png
   :align: center
   :alt: Down payment registered

Issuance of the electronic invoice for the total value of the operation.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

From the sales order, create an invoice for the total, that is, for all the order lines without
discounting the advance.

.. image:: mexico/mx_ft_29.png
   :align: center
   :alt: Full invoice

.. note::
   Remove the check mark from the **Deduct down payments** field.

Add the original CFDI of the advance payment invoice by adding ``07 |`` at the beginning + Folio
Fiscal of the advance payment Invoice created in the previous step.

Copy the Folio Fiscal of the following invoice following this example:

.. image:: mexico/mx_ft_30.png
   :align: center
   :alt: Folio full invoice

And paste it in the draft invoice created from the Sales Order without deducting the advances:

.. image:: mexico/mx_ft_31.png
   :align: center
   :alt: CFDI origen folio

Validate and copy the Folio Fiscal for later (in the example the Folio Fiscal copy is:
50E4FF06-4341-4006-A7C3-A7F653CBEFAE )

Add credit note from invoice
^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Create a **Credit Note** from the down payment invoice (the corrective invoice must be edited prior
to confirming it, see explanation below the 2 following images)

.. image:: mexico/mx_ft_32.png
   :align: center
   :alt: Creation of a Credit Note

.. image:: mexico/mx_ft_33.png
   :align: center
   :alt: Matching down payment

Before you *Confirm* the Credit Note, edit the Origin CFDI with ``07 | XXX`` instead of the prefix
``01 | XXX``

.. image:: mexico/mx_ft_34.png
   :align: center
   :alt: Modify folio fiscal

.. image:: mexico/mx_ft_35.png
   :align: center
   :alt: CFDI origen type

Now the invoice can be confirmed.

.. image:: mexico/mx_ft_36.png
   :align: center
   :alt: Post credit note

Now the Credit Note (Advance Payment) must be applied to the total invoice, this is added at the
bottom below the amount owed.

.. image:: mexico/mx_ft_37.png
   :align: center
   :alt: Add credit note

.. image:: mexico/mx_ft_38.png
   :align: center
   :alt: Down payment applied

Register a payment for the difference of the down payment and the total of the sale.

.. image:: mexico/mx_ft_39.png
   :align: center
   :alt: Residual amount payment

If you go to the XML of the invoice, you should see in CFDI related the type of relationship 07 and
the Folio Fiscal of the advance payment invoice.

.. image:: mexico/mx_ft_40.png
   :align: center
   :alt: XML down payment

Discounts based on payment days
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Cash discounts are incentives that you can offer to motivate customers to pay within a specified
time period. For example, you offer a 2% discount if the customer pays you within the first 5 days
of the invoice, when it is due in 30 days. This approach can greatly improve your average customer
payments period.

#. Create and assign the corresponding Payment Term
#. Register the Payment within the days of the discount
#. Create a credit note

Create and assign the corresponding Payment Term
************************************************

To configure the discount for advance payment, go to :menuselection:`Accounting --> Configuration
--> Payment Terms` and click on *Create*. Add a Percentage type with a corresponding value (for
example, 98% of the total price for a 2% discount) and the number of days for which the offer is
valid (for example 5 days). You can also change the balance due type if necessary (in this example
30 days).

.. image:: mexico/mx_ft_41.png
   :align: center
   :alt: Discount payment term

Then when creating our Sales Order or Sales Invoice, assign the Payment Term created previously.

.. image:: mexico/mx_ft_42.png
   :align: center
   :alt: discount on invoice

Register the Payment within the days of the discount
****************************************************

Register the payment within the days in which the application of the discount was specified, in our
case it is within 5 days after the creation of the Sales Invoice.

.. image:: mexico/mx_ft_43.png
   :align: center
   :alt: Discount payment

Then go to the bottom of the invoice where the totals are located and there you will see 2 payments
created, reset to draft and cancel the payment that does not correspond - the one related to the
discount.

.. image:: mexico/mx_ft_44.png
   :align: center
   :alt: See discount payment

.. image:: mexico/mx_ft_45.png
   :align: center
   :alt: Mote to draft payment

.. image:: mexico/mx_ft_46.png
   :align: center
   :alt: Cancel payment

Create a credit note
********************

Finally to close the cycle we must close the invoice, but as in this case we apply a discount, to
close it correctly we must create a credit note specifying that the difference was given to the
customer on a **Credit Note**.

.. image:: mexico/mx_ft_47.png
   :align: center
   :alt: Discount credit note

.. image:: mexico/mx_ft_48.png
   :align: center
   :alt: Reason of credit note

Adjust the amount to the remaining balance in the original invoice.

.. image:: mexico/mx_ft_49.png
   :align: center
   :alt: Total credit note

Add the Credit Note to the original invoice so that it is settled.

.. image:: mexico/mx_ft_50.png
   :align: center
   :alt: Add credit note for discount

Cancellation of invoices
------------------------

Before 72 Hours
~~~~~~~~~~~~~~~

If it is necessary to cancel an invoice validated and sent to the SAT in less than 72 hours follow
the steps below.

#. Request Cancellation

   .. image:: mexico/mx_ft_51.png
      :align: center
      :alt: Cancel within 72 hours

#. The status of the **Electronic invoicing** changes to *Cancelled*
#. Click on *RESET TO DRAFT*

   .. image:: mexico/mx_ft_52.png
      :align: center
      :alt: Invoice to draft

#. Click on *CANCEL ENTRY*

   .. image:: mexico/mx_ft_53.png
      :align: center
      :alt: Cancel journal entry

After 72 Hours
~~~~~~~~~~~~~~

If It is necessary to cancel an invoice validated and sent to the SAT more than 72 hours, the client
must be asked to accept the cancellation, for this the following steps must be followed.

#. Click on *Request EDI Cancellation* to inform the SAT that you want to cancel the invoice, in
   this case the client has to enter the SAT webpage and approve it. (The status of the **Electronic
   invoicing** field in Odoo changes to *To Cancel*)
#. When the client (Receiver / Customer) approves the Cancellation in their SAT portal it is now
   possible to Change the invoice to Draft and then click on *Cancel entry*.
#. Odoo synchronizes with the SAT to update the status of the **Electronic invoicing** with a
   scheduled action, Invoices canceled in the SAT will be canceled in Odoo.

.. image:: mexico/mx_ft_54.png
   :align: center
   :alt: Cancel after 72 hours

After clicking on **Request EDI cancellation**, the status of the **Electronic invoicing** field
will be *To Cancel* but the status of the SAT will be the same to *Valid*, it will remain active
until the end customer / Recipient approves the cancellation in the SAT.

.. image:: mexico/mx_ft_55.png
   :align: center
   :alt: Check estado del PAC

Once canceled in the SAT, Odoo will synchronize the status of the SAT through scheduled actions that
are executed every day to synchronize the statuses of the SAT, Electronic invoicing and Odoo (this
scheduled action can be executed manually by entering with developer mode).

If the invoice is canceled in the SAT, in Odoo it is also canceled, which allows you to switch the
invoice to draft and finally cancel the invoice (*cancel entry*).

.. image:: mexico/mx_ft_56.png
   :align: center
   :alt: PAC scheduled action

Cancel Paid Invoices
~~~~~~~~~~~~~~~~~~~~

If the invoice has already been paid, a credit note must be created from the invoice so that the
originating CFDI is recognized and later cancel the original invoice.

.. image:: mexico/mx_ft_57.png
   :align: center
   :alt: Cancel paid invoice

.. image:: mexico/mx_ft_58.png
   :align: center
   :alt: Credit note to cancel

Cancel Invoices from the previous period
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Problem
*******

If the invoice is from the previous month and the period is closed, the income has already been
declared in Financial Reports and to the government. In Odoo, when canceling an invoice, the journal
entry is eliminated as if the income already reported had not existed, this represents a fiscal
problem because the income was already declared in the previous month.

The problem resides when the fiscal period has been closed, in the current period you have to make
the reverse entry and save the cancellation information.

Invoice to be canceled

.. image:: mexico/mx_ft_59.png
   :align: center
   :alt: Previous period

This is how the Balance Sheet looks like:

.. image:: mexico/mx_ft_60.png
   :align: center
   :alt: Previous BS

If the invoice is canceled, the journal entry and the Balance Sheet looks like this after canceling:

.. image:: mexico/mx_ft_61.png
   :align: center
   :alt: AR in BS

Solution
********

#. Close the fiscal period every month (Best Practice Mexican Localization)
#. Cancel invoice in SAT
#. Create a Manual Reversion entry (Journal Entry)
#. Reconcile the open invoice with the reversal entry (Journal Entry)
#. Change Electronic invoicing status to Cancelled with server action

Close accounting period each month (Best Practice Mexican Localization)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

If the accounting period is closed due to the blocking dates, Odoo will not allow to modify or add
accounting entries of a date corresponding to that accounting period.

.. image:: mexico/mx_ft_62.png
   :align: center
   :alt: Closing fiscal period

Cancel invoice in the SAT
^^^^^^^^^^^^^^^^^^^^^^^^^

If the accounting period is closed, and the invoice was canceled in the SAT, the status in Odoo will
be published while the **Electronic invoicing** status will be *Sent* and the SAT status is
*Cancelled*.

.. image:: mexico/mx_ft_63.png
   :align: center
   :alt: Cancel in SAT

Create Manual Reversal Journal Entry
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

The solution is to create the reversal journal entry manually dated in the current fiscal period and
reconcile the open invoice with the reversion created manually.

It must be clearly indicated in the reference that it is a cancellation (you can use a cancellation
account for invoices from previous periods such as **Other Income**).

.. image:: mexico/mx_ft_64.png
   :align: center
   :alt: Manual reversal

Reconcile the open invoice with the reversal entry
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

.. image:: mexico/mx_ft_65.png
   :align: center
   :alt: Reconcile open invoice

.. image:: mexico/mx_ft_66.png
   :align: center
   :alt: Open invoice paid

In the Balance Sheet and Trial balance they are now with the correct balances.

.. image:: mexico/mx_ft_67.png
   :align: center
   :alt: New BS

.. image:: mexico/mx_ft_68.png
   :align: center
   :alt: Up to date BS

.. image:: mexico/mx_ft_69.png
   :align: center
   :alt: Balanza de comprobación

Change status of Electronic invoicing to Cancelled with server action
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

A server action can be created that modifies the status of the invoice to *Cancelled* once it is
reconciled with the reversal entry (You should check this with support or with your Assigned
Functional Consultant prior to performing this action).

.. image:: mexico/mx_ft_70.png
   :align: center
   :alt: Scheduled action PAC status

.. image:: mexico/mx_ft_71.png
   :align: center
   :alt: Execute server action

Electronic Accounting
---------------------

Accounting for Mexico in Odoo is composed of 3 reports:

#. Electronic Chart of Accounts (Called and displayed as COA).
#. Electronic Trial Balance.
#. DIOT report.

1. and 2. are considered electronic accounting, and DIOT is a report only available in the context
of accounting.

You can find all of those reports in :menuselection:`Accounting --> Reporting --> Mexico`

.. image:: mexico/mx_ce_01.png
   :align: center
   :alt: MX reports

Electronic Chart of Accounts (Called and displayed as COA).
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Electronic invoicing has never been so easy, just go to :menuselection:`Accounting -> Reports ->
Mexico -> COA` and click the button **Export for SAT (XML)**.

.. image:: mexico/mx_ce_02.png
   :align: center
   :alt: COA for SAT

How to add new accounts ?
~~~~~~~~~~~~~~~~~~~~~~~~~

If you add an account with the NNN.YY.ZZ encoding convention where NNN.YY is a SAT encoding group,
your account will be set up automatically.

Example to add an Account for a new Bank account go to :menuselection:`Accounting --> Settings -->
Chart of Account` and then create a new account in the «Create» button and try to create an
account with the number 102.01.99 once you change to establish the name you will see an
automatically configured label, the configured labels are the ones chosen to be used in the COA
in XML.

.. image:: mexico/mx_ce_03.png
   :align: center
   :alt: Create account

What is the meaning of the tags?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

To know all the possible labels, you can read `Annex 24
<http://www.sat.gob.mx/fichas_tematicas/buzon_tributario/Documents/Anexo24_05012015.pdf>`_
on the SAT website in the section called **Código agrupador de cuentas del SAT**.

.. tip::
   When you install the l10n_mx module and your chart of accounts depends on it (this happens
   automatically when you install the configuration of Mexico as a country in your database), it
   will have the most common labels by default. If the tag you need is not created, you can create
   it.

Trial Balance
-------------

Exactly like the COA but with the credit and debit of the initial balance, once you have
correctly configured your COA, you can go to :menuselection:`Reports --> Trial Balance` this is
automatically generated and can be exported to XML using the button on the top **Export for SAT
(XML)** with the previous selection of the period you want to export.

.. image:: mexico/mx_ce_04.png
   :align: center
   :alt: Electronic verification balance

All normal analysis and listed functions are available here as well as any normal Odoo Report.

DIOT Report (Requires Accounting App)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

What is DIOT and the importance of presenting it SAT
****************************************************

When it comes to procedures with the SAT Administration Service, we know that we should not
neglect what we present.

The DIOT is the Informative Declaration of Operations with Third Parties (DIOT), which is an
additional obligation with VAT, where we must give the status of our operations to third parties,
or what is considered the same, with our suppliers.

This applies to both individuals and Personas Morales, so if we have VAT to present to the SAT
and also deal with suppliers it is necessary to send the DIOT.

When to file the DIOT and in what format ?
******************************************

It is easy to present the DIOT, since, like all formats, you can obtain it on the SAT page, it is
the electronic form A-29 that you can find on the SAT website.

Every month if you have operations with third parties, it is necessary to present the DIOT, as we
do with VAT, so if in January we have deals with suppliers, by February we must present the
information relevant to said data.

Where is DIOT presented?
************************

You can present DIOT in different ways, it is up to you which one you will choose and which one
will be more comfortable for you since you will present it every month or every time you have
dealings with suppliers.

The A-29 form is electronic so you can present it on the SAT page, but this after having made up
to 500 registrations.

Once these 500 records have been entered in the SAT, you must submit them to the Local Taxpayer
Services Administration (ALSC) with correspondence to your tax address, these records can be
submitted on a digital storage medium such as a CD or USB, which a Once validated, they will
return you, so do not doubt that you will still have these discs and of course, your CD or USB.

One more thing to know: batch loading?
**************************************

When reviewing the official SAT documents in DIOT, you will find the Batch load, and of course
the first thing we think is what is that ?, and according to the SAT site it is:

The "batch load" is the conversion of databases from records of transactions with suppliers made
by taxpayers in text files (.txt). These files have the necessary structure for their application
and import into the Informative Declaration of Operations with third parties system, avoiding
direct capture and consequently, optimizing the time invested in their integration for the
presentation in time and form to the SAT.

You can use it to present the DIOT, since it is allowed, which will facilitate this operation, so
that it does not exist to avoid being in line with the SAT in regards to the Informative
Declaration of Operations with Third Parties.

.. seealso::
   `official information
   <http://www.sat.gob.mx/fichas_tematicas/declaraciones_informativas/Paginas/declaracion_informativa_terceros.aspx>`_

How to generate this report in Odoo?
************************************

#. Go to :menuselection:`Accounting --> Reports --> Mexico --> Transactions with third partied
   (DIOT)`.

   .. image:: mexico/mx_ce_05.png
      :align: center
      :alt: DIOT report

#. A report view is displayed, select the last month to report the immediately preceding month or
   leave the current month if it suits you.

   .. image:: mexico/mx_ce_06.png
      :align: center
      :alt: DIOT filter

#. Click on *Export (XLSX)* or *Print (TXT)*

.. image:: mexico/mx_ce_07.png
      :align: center
      :alt: Print DIOT

#. Save the downloaded file in a safe place, go to the SAT website and follow the necessary steps
   to declare it.

Important considerations about your supplier and invoice data for DIOT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

- All suppliers must have the fields configured in the accounting tab called "DIOT Information",
  the L10N MX Nationality field is completed by simply selecting the appropriate country in the
  address, not You need to do nothing else there, but the l10n MX type of operation must be
  configured in all your providers.

.. image:: mexico/mx_ce_08.png
     :align: center
     :alt: DIOT configuration

- There are 3 VAT options for this report, 16%, 0% and exempt, one invoice line in Odoo is
  considered exempt if there is no tax on it, the other 2 taxes are already configured correctly.
- Remember that to pay an invoice that represents a prepayment, you must first request the invoice
  and then pay it and properly reconcile the payment following the standard Odoo procedure.
- You do not need to fill in all your partner data to try to generate the supplier invoice, you
  can correct this information when you generate the report.
- Remember that this report only shows vendor invoices that were actually paid.

If some of these considerations are not taken into account, a message like this will appear when
you generate the DIOT in TXT with all the partners you need to verify this particular report,
this is the reason why we recommend to use this report not only for exporting your legal
information. obligation, but generate it before the end of the month and use it as your auditory
process to see that all your partners are configured correctly.

.. image:: mexico/mx_ce_09.png
   :align: center
   :alt: DIOT Error

Closing Fiscal Period in Odoo
-----------------------------

Before proceeding to the close of the fiscal year, there are some steps that you should normally
take to ensure that your accounting is correct, updated and accurate:

- Make sure that you have fully reconciled your bank account (s) through the end of the year and
  confirm that the closing book balances match the balances on your bank statements.
- Verify that all customer invoices have been entered and approved.
- Confirm that you have entered and approved all vendor bills.
- Validate all expenses, ensuring their accuracy.
- Check that all payments received have been entered and recorded exactly.

Year-end checklist
~~~~~~~~~~~~~~~~~~

- Run a **Tax Report**, and verify that your tax information is correct.
- Reconcile all accounts on your **Balance Sheet**

  - Compare your bank balances in Odoo against the current bank balances on your statements. Use
    the report **Bank Reconciliation** to help you with this.
  - Reconcile all cash and bank account transactions by running your **Old Accounts Receivable**
    and **Old Accounts Payable** reports
  - Audit your accounts, making sure you fully understand the transactions that affect them and the
    nature of the transactions, making sure to include loans and fixed assets.

- Run the optional function **Payments Matching**, under the *More* drop-down on the Journal
  options from the Accounting dashboard, validating any Vendor Bill and Customer Invoices with its
  payments. This step is optional, however it can assist the year-end process if all pending
  payments and invoices are reconciled, and it can lead to finding errors or mistakes in the
  system.
- Your accountant will probably like to check your items in the balance sheet and do some Journal
  Entries for:

  - Manual year-end adjustments, using the **Journal Audit** report (For example, the **Current
    Earnings for the Year** and **Retained Earnings reports**).
  - **Work in Progress**.
  - **Depreciation Journals**.
  - **Loans**.
  - **Tax Adjustments**.

If your accountant is on the year-end audit, they will want to have copies of the balance sheet
items (such as loans, bank accounts, prepayments, sales tax reports, etc ...) to compare against.
your balances in Odoo.

During this process, it is a good practice setting the **Closing Date for Non-Advisers** to the
last day of the preceding financial year, which is set under the accounting settings. In this
way, the accountant can trust that no one else is changing the previous year's transactions while
auditing the books.

.. image:: mexico/mx_cc_01.png
   :align: center
   :alt: Fiscal year

Accounting Closing Process
~~~~~~~~~~~~~~~~~~~~~~~~~~

In Odoo there is no need to make a specific year-end entry to close the reporting income accounts
. The result of the exercise is automatically calculated in the account type (Current Year
Earnings) and the difference between Income - Expenses will be accumulated to calculate it.

The reports are created in real-time, which means that the **Income Report** corresponds directly
to the closing date of the year that you specify in Odoo. In addition, at any time that you
generate the **Income Report**, the start date will correspond to the start date of the **Fiscal
Year** and the account balances will all be 0.

As of December 31, the Balance Sheet shows the earnings of the Current Year that do not have been
recognized (Account type Total Current Year Unallocated Earnings in MX account 305.01.01
['current year earnings' type])

.. image:: mexico/mx_cc_02.png
   :align: center
   :alt: Balance sheet closing

The accountant should create a Journal Entry to recognize the result of the year in Accumulated
Earnings from previous years on the account "previous years results" account (304.01.01 in
Mexico) - that is an equity account.

After posting the Journal Entry, click on *Mark as Closing Entry for the Fiscal Year*. This step is
important because it is linked to the Trial Balance report. If this Journal Entry is not marked as a
Closing Entry, the Trial Balance won't be correct.

The simplified accounting entry would look like this:

.. image:: mexico/mx_cc_03.png
   :align: center
   :alt: Closing journal entry

Once the accountant has created the journal entry to locate the **Current Earnings for the Year**,
they must set the **Closing Date** to the last day of the fiscal year. Making sure that before
doing this, whether or not the current gain of the year in the **Balance Sheet** is properly
reporting a balance 0.

.. image:: mexico/mx_cc_04.png
   :align: center
   :alt: Check BS closing

Extra Recommended features
==========================

Contacts App (Free)
-------------------

If you want to properly manage your customers, suppliers and addresses, this module, even if it
is not a technical need, it is highly recommended to install it.

Multi-currency (Requires Accounting application)
------------------------------------------------

In Mexico, almost all companies send and receive payments in different currencies. If you want to
do this you can enable the use of multi-currency. You should also enable synchronization with the
**Mexican Bank Service**, as this would allow you to automatically have the exchange rate from the
SAT without having to manually create this information every day in Odoo.

Go to settings and enable the multi-currency feature.

.. image:: mexico/mx_mc_01.png
   :align: center
   :alt: Multi currency configuration

Enabling Explicit errors on the CFDI using the XSD local validator (CFDI 3.3)
-----------------------------------------------------------------------------

Frequently you want receive explicit errors from the fields incorrectly set
on the xml, those errors are better informed to the user if the check is
enable, to enable the Check with xsd feature follow the next steps (with the
:ref:`developer mode <developer-mode>` enabled).

- Go to :menuselection:`Settings --> Technical --> Actions --> Server Actions`
- Look for the Action called "Download XSD files to CFDI"
- Click on button "Create Contextual Action"
- Go to the company form :menuselection:`Settings --> Users&Companies --> Companies`
- Open any company you have.
- Click on "Action" and then on "Download XSD file to CFDI".

.. image:: mexico/mx-xsd-cfdi.png
   :align: center
   :alt: Download XSD files to CFDI from the Companies list view on Odoo

Now you can make an invoice with any error (for example a product without
code which is pretty common) and an explicit error will be shown instead a
generic one with no explanation.

.. note::
   If you see an error like this:

   | ``The cfdi generated is not valid``
   | ``attribute decl. 'TipoRelacion', attribute 'type': The QName value
      '{http://www.sat.gob.mx/sitio_internet/cfd/catalogos}c_TipoRelacion' does
      not resolve to a(n) simple type definition., line 36``

   This can be caused by a database backup restored in another server,
   or when the XSD files are not correctly downloaded. Follow the same steps
   as above but:

   - Go to the company in which the error occurs.
   - Click on *Action* and then on *Download XSD file to CFDI*.

Common problems and errors
==========================

- **Error messages** (Only applicable on CFDI 3.3):

  - ``9:0:ERROR:SCHEMASV:SCHEMAV_CVC_MINLENGTH_VALID: Element
    '{http://www.sat.gob.mx/cfd/3}Concepto', attribute 'NoIdentificacion':
    [facet 'minLength'] The value '' has a length of '0'; this underruns
    the allowed minimum length of '1'.``

  - ``9:0:ERROR:SCHEMASV:SCHEMAV_CVC_PATTERN_VALID: Element
    '{http://www.sat.gob.mx/cfd/3}Concepto', attribute 'NoIdentificacion':
    [facet 'pattern'] The value '' is not accepted by the pattern '[^|]{1,100}'.``

  **Solution**:
  You forgot to set the proper "Reference" field in the product,
  please go to the product form and set your internal reference properly.

- **Error messages**:

  - ``6:0:ERROR:SCHEMASV:SCHEMAV_CVC_COMPLEX_TYPE_4: Element
    '{http://www.sat.gob.mx/cfd/3}RegimenFiscal': The attribute 'Regimen' is required but missing.``

  - ``5:0:ERROR:SCHEMASV:SCHEMAV_CVC_COMPLEX_TYPE_4: Element
    '{http://www.sat.gob.mx/cfd/3}Emisor': The attribute 'RegimenFiscal' is required but missing.``

  **Solution**:
  You forgot to set the proper "Fiscal Position" on the partner of the company. Go to customers,
  remove the customer filter and look for the partner called as your company and set the proper
  fiscal position which is the kind of business your company does related to SAT list of possible
  values, another option can be that you forgot to follow the considerations about fiscal
  positions.

  You need to go to Fiscal Position settings and set the proper code (it is the first 3 numbers
  of the name), for example, for the test, you need to set 601, it will look like the picture.

  .. image:: mexico/mx_faq_01.png
     :align: center
     :alt: Fiscal position error

  .. tip::
     For testing purposes this value must be set to ``601 - General de Ley
     Personas Morales`` which is the one required for the VAT demo.

- **Error message**:

  - ``2:0:ERROR:SCHEMASV:SCHEMAV_CVC_ENUMERATION_VALID: Element
    '{http://www.sat.gob.mx/cfd/3}Comprobante', attribute 'FormaPago':
    [facet 'enumeration'] The value '' is not an element of the set
    {'01', '02', '03', '04', '05', '06', '08', '12', '13', '14', '15', '17',
    '23', '24', '25', '26', '27', '28', '29', '30', '99'}``

  **Solution**:
  The payment method is required on your invoice.

.. image:: mexico/mx_faq_02.png
     :align: center
     :alt: Payment method error

- **Error messages**:

  - ``2:0:ERROR:SCHEMASV:SCHEMAV_CVC_ENUMERATION_VALID: Element
    '{http://www.sat.gob.mx/cfd/3}Comprobante', attribute 'LugarExpedicion':
    [facet 'enumeration'] The value '' is not an element of the set {'00``
  - ``2:0:ERROR:SCHEMASV:SCHEMAV_CVC_DATATYPE_VALID_1_2_1: Element
    '{http://www.sat.gob.mx/cfd/3}Comprobante', attribute 'LugarExpedicion':
    '' is not a valid value of the atomic type '{http://www.sat.gob.mx/sitio_internet/cfd/catalogos}c_CodigoPostal'.``
  - ``5:0:ERROR:SCHEMASV:SCHEMAV_CVC_COMPLEX_TYPE_4: Element
    '{http://www.sat.gob.mx/cfd/3}Emisor': The attribute 'Rfc' is required but missing.``

  **Solution**:
  You must configure your company address correctly, this is a mandatory group of fields, you can
  go to your company configuration in :menuselection:`Settings --> Users & Companies --> Companies`
  and fill complete all the mandatory fields for your address by following the steps in this
  section: :ref:`mx-legal-info`.

- **Error message**:

  - ``2:0:ERROR:SCHEMASV:SCHEMAV_CVC_DATATYPE_VALID_1_2_1: Element
    '{http://www.sat.gob.mx/cfd/3}Comprobante', attribute 'LugarExpedicion':
    '' is not a valid value of the atomic type
    '{http://www.sat.gob.mx/sitio_internet/cfd/catalogos}c_CodigoPostal'.``

  **Solution**:
  The postal code of your company address is not valid for Mexico, please correct it.

.. image:: mexico/mx_faq_03.png
     :align: center
     :alt: ZIP code error

- **Error messages**:

  - ``18:0:ERROR:SCHEMASV:SCHEMAV_CVC_COMPLEX_TYPE_4: Element
    '{http://www.sat.gob.mx/cfd/3}Traslado': The attribute 'TipoFactor' is
    required but missing.``
  - ``34:0:ERROR:SCHEMASV:SCHEMAV_CVC_COMPLEX_TYPE_4: Element
    '{http://www.sat.gob.mx/cfd/3}Traslado': The attribute 'TipoFactor' is
    required but missing.", '')``

  **Solution**:
  Set the Mexican name for the 0% and 16% tax in your system and use it on the invoice. Your tax,
  which represents 16% VAT and 0%, must have the **Factor Type** field set to *Tasa*.

  .. image:: mexico/mx_faq_04.png
     :align: center
     :alt: Factor type error

  .. image:: mexico/mx_faq_05.png
     :align: center
     :alt: Rate error

- **Error messages**:

  - | ``CCE159``
    | ``The XXXX attribute must be registered if the key of cce11: ComercioExterior:
      TipoOperacion registered is '1' or '2'.``

  **Solution**: It is necessary to specify the Incoterm.

- **Error messages**:

  - | ``CCE209``
    | ``The attribute cce11: Foreign Trade: Goods: Goods: Customs Unit must have the value
      specified in the catalog catCFDI: c_FraccionArancelaria column 'UMT' when the attribute
      cce11: Foreign Trade: Goods: Me``

  **Solution**: The Tariff Fraction must have the code of the unit of measure 01, corresponding
  to Kilograms.

Glossary
========

- :abbr:`CFDI (Comprobante Fiscal Digital por Internet)`: Online Digital Tax Receipt
- :abbr:`CSD (Certificado de Sello Digital)`: Digital Seal Certificate
- :abbr:`PAC (Proveedores Autorizados de Certificación)`: Authorized Certification Provider
- Stamp: Digital signature of the electronic invoice
- Addenda: Complement of information that can be attached to an Internet Digital Tax Receipt
  (CFDI) normally required by certain companies in Mexico such as Walmart, Tiendas Sorianas, etc.
- :abbr:`UUID (Universally Unique Identifier)`: It is the acronym in English of the Universally
  Unique Identifier. The UUID is the equivalent of Folio Fiscal, it is composed of 32 hexadecimal
  digits, shown in 5 groups separated by hyphens.
- LCO: List of Obliged Taxpayers (LCO) is a list issued by the SAT that accounts for all the
  taxpayers whom it authorizes the issuance of invoices and payroll receipts. This means that, to
  be able to electronically bill your clients, you must be in this database.