Francisco Orozco Consultant

Wish there is an option to include Mexico "proporcion utilizada conforme LIVA" percentage to be applied towards VAT total receivable (e.g. VAT tax type towards expenses or purchases) for purpose to get eligible result to deduct from VAT payable (tax to be supported or tax of grand sourced sales invoices). Example: total revenue invoice activity / divided by the grand total of income usually the factor is "1.00" but sometimes could be ".98" or ".95" factor to be applied towards VAT IVA REFERENCE SAT articulo 5 https://www.sat.gob.mx/articulo/46936/articulo-5

Wish there is an option to easily include Tax INPC rate table maintenance for purpose to be future applied from tax calculation EXAMPLE OF INPC RATES: INPC Noviembre 2018: 102.303 - - - - - - - - - - - - - - - - - - INPC Octubre : 104.503 EXAMPLE OF FACTOR TO BE APPLIED = .97894797 =0 EXAMPLE OF INPC RATE CHARGES PER MONTH Recargos 1.47 por mes. Octubre: 1.47 Noviembre: 1.47 =2.94% Approximately: $3,000 * 2.94= 88.20=3088.20 EXAMPLE OF UPDATED OR ACTUALIZACION =88.20 EXAMPLE OF (E.G. TAX updated amount) 3,088.20 REFERENCES: https://www.sat.gob.mx/consulta/11676/consulta-indices,-tasas,-tarifas-y-tipo-de-cambio.

Wish there is an option to easily include Tax INPC rate table maintenance for purpose to be future applied from tax calculation EXAMPLE OF INPC RATES: INPC Noviembre 2018: 102.303 - - - - - - - - - - - - - - - - - - INPC Octubre : 104.503 EXAMPLE OF FACTOR TO BE APPLIED = .97894797 =0 EXAMPLE OF INPC RATE CHARGES PER MONTH Recargos 1.47 por mes. Octubre: 1.47 Noviembre: 1.47 =2.94% EXAMPLE OF GRAND TOTAL INDEX INPC FACTOR TO BE APPLIED TOWARDS TAX LIABILITY BALANCE Approximately: $3,000 * 2.94= 88.20=3088.20 EXAMPLE OF UPDATED OR ACTUALIZACION =88.20 EXAMPLE OF (E.G. TAX updated amount) 3,088.20 REFERENCES: https://www.sat.gob.mx/consulta/11676/consulta-indices,-tasas,-tarifas-y-tipo-de-cambio. Dynamics 365 Mexico Finance Tax INPC rates table maintenance economic Indicators to update Mexico tax liabilities

Wish there is an option to easily include Tax INPC rate table maintenance for purpose to be future applied from tax calculation EXAMPLE OF INPC RATES: INPC Noviembre 2018: 102.303 - - - - - - - - - - - - - - - - - - INPC Octubre : 104.503 EXAMPLE OF FACTOR TO BE APPLIED = .97894797 =0 EXAMPLE OF INPC RATE CHARGES PER MONTH Recargos 1.47 por mes. Octubre: 1.47 Noviembre: 1.47 =2.94% Approximately: $3,000 * 2.94= 88.20=3088.20 EXAMPLE OF UPDATED OR ACTUALIZACION =88.20 EXAMPLE OF (E.G. TAX updated amount) 3,088.20 REFERENCES: https://www.sat.gob.mx/consulta/11676/consulta-indices,-tasas,-tarifas-y-tipo-de-cambio.

Wish there is an option to easily include Tax INPC rate table maintenance for purpose to be future applied from tax calculation EXAMPLE OF INPC RATES: INPC Noviembre 2018: 102.303 - - - - - - - - - - - - - - - - - - INPC Octubre : 104.503 EXAMPLE OF FACTOR TO BE APPLIED = .97894797 =0 EXAMPLE OF INPC RATE CHARGES PER MONTH Recargos 1.47 por mes. Octubre: 1.47 Noviembre: 1.47 =2.94% Approximately: $3,000 * 2.94= 88.20=3088.20 EXAMPLE OF UPDATED OR ACTUALIZACION =88.20 EXAMPLE OF (E.G. TAX updated amount) 3,088.20 Example: DB 88.20 Expense *CR 88.20 INPC Index tax amount * To be added to tax liability total REFERENCES: https://www.sat.gob.mx/consulta/11676/consulta-indices,-tasas,-tarifas-y-tipo-de-cambio. Dynamics 365 Mexico Finance Tax INPC rates table maintenance economic Indicators to update Mexico tax liabilities

Wish there is an option to easily include Tax INPC rate table maintenance for purpose to be future applied from tax calculation EXAMPLE OF INPC RATES: INPC Noviembre 2018: 102.303 - - - - - - - - - - - - - - - - - - INPC Octubre : 104.503 EXAMPLE OF FACTOR TO BE APPLIED = .97894797 =0 EXAMPLE OF INPC RATE CHARGES PER MONTH Recargos 1.47 por mes. Octubre: 1.47 Noviembre: 1.47 =2.94% Approximately: $3,000 * 2.94= 88.20=3088.20 EXAMPLE OF UPDATED OR ACTUALIZACION =88.20 EXAMPLE OF (E.G. TAX updated amount) 3,088.20 REFERENCES: https://www.sat.gob.mx/consulta/11676/consulta-indices,-tasas,-tarifas-y-tipo-de-cambio. Dynamics 365 Mexico Finance Tax INPC rates table maintenance economic Indicators to update Mexico tax liabilities

Wish there is an option to easily maintain and track previous year "coeficiente de utilized fiscal" (profit tax factor to be applied on "pagos provisionales on ISR tax profit sharing" Example: Ingresos acumulables: 800,000 (-) Deducciones autorizadas: 450,000 =Utilidad fiscal $350,000 Ingresos nominales Ingresos acumulables: 800,000 -ajuste anual por inflación 42750 =Ingresos nominales=$757,250 Coeficiente de utilidad Utilidad fiscal $350,000 / divided by ingresos nominales: $757,250 =.4622 factor to be applied on ISR tax payment for next year.

Wish there is an option to easily calculate Mexico anual tax adjustment due to inflation INPC indicators and as of result of ledger main account average balances. 1. Average annual balance of credits or liabilities ONLY if the average annual balance is greater then the debt debit annual factor, then the originated result WILL BE a annual tax deductible inflation. 2. Average annual balance of debits or assets. ADJUSTMENT CALCULATION (INPC Last month of the fiscal period/INPC of last month) Annual adjustment for inflation deductible-juste anual por inflacion deducible: Average balance of annual credits or liabilities - minus average annual balance of debts or assets). Annual adjustment for inflation liabilities: Ajuste anual por inflación acumulable=Average balance of annual debts AJUSTE ANUAL POR INFLACION ACUMULABLE: Si el saldo promedio anual de las deudas es mayor que el saldo promedio anual de los créditos. La diferencia entre ambos se deberá multiplicar por el factor de ajuste anual y el resultado se considerará Ajuste Anual por Inflación Acumulable. AJUSTE ANUAL POR INFLACION DEDUCIBLE Si el saldo promedio anual de las deudas es menor que el saldo promedio anual de los créditos. La diferencia entre ambos se deberá multiplicar por el factor de ajuste anual y el resultado se considerará Ajuste Anual por Inflación Deducible. REFERENCE: Articulo 45 y 46 LISR Articulo 44 Articulo 18 Fracc. II Art 44 LISR EXAMPLE: CREDITS LEDGER MAIN ACCOUNTS: January: February: March: April: May: June: July: August: September: October: November: December: Total: 438,000 DEBTS LEDGER MAIN ACCOUNTS: January: February: March: April: May: June: July: August: September: October: November: December: Total: 357,000 Annual average credit balances: 438,000/12=36,500 Annual average debt balance: 357,000/12=29,750 Adjustment factor: (INPC 130.813/INPC 122.515)-1= 0.0677 Annual average deductible inflation: (36,500-29,750) * 0.0677 INPC factor of adjustment = $456.97 deduction for inflation amount. REFERENCES: C.P. Raul Mancialla October 2014. https:contadorcontado.com/2014/10/01/ajuste-anual-por-inflacion-2/

Wish there is an option to easily setup maintain ledger posting along with offsets accounts when calculating annual inflation due to liabilities annual average ledger main accounts and annual average assets debit accounts factor and amounts multiplied by INPC factors. Wish there is an option to easily calculate Mexico anual tax adjustment due to inflation INPC indicators and as of result of ledger main account average balances. 1. Average annual balance of credits or liabilities ONLY if the average annual balance is greater then the debt debit annual factor, then the originated result WILL BE a annual tax deductible inflation. 2. Average annual balance of debits or assets. ADJUSTMENT CALCULATION (INPC Last month of the fiscal period/INPC of last month) Annual adjustment for inflation deductible-juste anual por inflacion deducible: Average balance of annual credits or liabilities - minus average annual balance of debts or assets). Annual adjustment for inflation liabilities: Ajuste anual por inflación acumulable=Average balance of annual debts AJUSTE ANUAL POR INFLACION ACUMULABLE: Si el saldo promedio anual de las deudas es mayor que el saldo promedio anual de los créditos. La diferencia entre ambos se deberá multiplicar por el factor de ajuste anual y el resultado se considerará Ajuste Anual por Inflación Acumulable. AJUSTE ANUAL POR INFLACION DEDUCIBLE Si el saldo promedio anual de las deudas es menor que el saldo promedio anual de los créditos. La diferencia entre ambos se deberá multiplicar por el factor de ajuste anual y el resultado se considerará Ajuste Anual por Inflación Deducible. REFERENCE: Articulo 45 y 46 LISR Articulo 44 Articulo 18 Fracc. II Art 44 LISR EXAMPLE: CREDITS LEDGER MAIN ACCOUNTS: January: February: March: April: May: June: July: August: September: October: November: December: Total: 438,000 DEBTS LEDGER MAIN ACCOUNTS: January: February: March: April: May: June: July: August: September: October: November: December: Total: 357,000 Annual average credit balances: 438,000/12=36,500 Annual average debt balance: 357,000/12=29,750 Adjustment factor: (INPC 130.813/INPC 122.515)-1= 0.0677 Annual average deductible inflation: (36,500-29,750) * 0.0677 INPC factor of adjustment = $456.97 deduction for inflation amount.

Wish there is option to include Mexico withholding taxes from tax calculation (e.g. Iva retention to professionals, dividend tax withholding 10%, freight transportation 4%, property leases ISR retention 16%, etc...) Not featuring withholding taxes from tax calculation, we may not easily process calculation tax types from one tax calculation.