Regulations throughout Latin America are inconsistent and frequently changing. Brazil’s new requirements under NFe version 3.1 look vastly different than what’s required in Chile, Uruguay, Argentina and elsewhere throughout the region. Most on-premise solutions cannot support the full spectrum of these requirements and the processes that must be included to maintain compliance.
Coverage is limited by On-Premise solutions
On-premise solutions configured to comply with NFe version 3.1 do not support Mexico, Chile, Argentina, etc. Multinational companies operating in this region are forced to have different solutions for each country. This translates to separate integration points, separate servers, separate support contacts and separate upgrade projects with each and every government change.
Hybrid Cloud providers have the ability to offer multi-country solutions on a single platform, providing economies of scale on maintenance, support, hardware and change management. This is especially beneficial to companies running or moving toward a global or regional instance of SAP ERP.
Multiple processes aren’t covered by On-Premise solutions
On-premise solutions have functional gaps. For example, many only support PO-backed invoices and don’t support service invoices, instead requiring middleware to maintain the government connection. These solutions also require internal resources to monitor, implement and test new government requirements, frequently resulting in delayed compliance.
Hybrid Cloud providers are able to support all requirements and reduce internal support costs by upwards of 80 percent. The reason is simple – instead of purchasing software and delegating internal resources to install, configure and maintain it, you pay a fixed, predictable service fee that includes all software and implementation.
Support and change management costs continue to rise for companies managing on-premise solutions as countries throughout Latin America continue to introduce new and varied regulations, requiring multiple systems to maintain compliance and duplicating processes. Hybrid Cloud providers bring the advantage of economies of scale and predictability in an environment of constant change. With the scale of the changes in Brazil, Mexico, Uruguay, Peru, Ecuador and Colombia in 2015, use these mandates as opportunity to re-evaluate your solution for e-invoicing across Latin America.