Top Vendors Report 

Use

You use this report to prepare a list of the 50 vendors that you have the highest business volume with. The list provides you with all the information you need to fill out the electronic form provided by the Mexican tax authorities, so once you have created the list, you can fill out the form manually.

To access the report, on the SAP Easy Access screen, choose Accounting ® Financial Accounting ® Accounts Payable ® Reporting ® Mexico ® Top Vendors Report.

Features

The list shows the top 50 vendors in terms of net business volume, that is, sales before VAT.

Performance Issues

Since the system records vendor items gross of VAT, the report, in order to identify the net business volume, has to identify the VAT on each vendor item and deduct it from the gross amount.

To apply this procedure to all vendors would be too resource-intensive, so the report firstly checks which vendors have the potential to be in the top 50, and calculates the net business volume for them only.

How the Report Identifies the Potential Top 50 Vendors

It is probable, but not certain, that the top 50 vendors in terms of gross business volume will also be the top 50 in terms of net business volume. Differences can arise due to the fact that not all vendors have to pay the same rate of VAT.

For example, assume that the vendor at 50th place has sold goods to you worth MXN 1,150,000 inclusive of VAT. If the maximum VAT rate is 15%, the most VAT that the vendor can have charged is MXN 150,000. That means that the vendor must have made sales of at least MXN 1,000,000 net of VAT.

If the vendor at 51st place has gross sales of MXN 1,144,000, the report also has to include it in the list of potential candidates, since, for example, it might levy VAT at only 10%, which would mean net sales of MXN 1,040,000. That means that its net sales could potentially be higher than those of vendor 50.

Once the Potential Top 50 Vendors Have Been Identified

Once the report has determined the potential top 50 vendors, it calculates their exact net business volume.

Vendor Line Items Without a Tax Code

When the report calculates the exact net business volume, it deducts the tax items from the vendor items. However, if an accounting document contains two vendor items for two separate vendors and more than one tax item, it might not be clear which tax code applies and thus which tax rate. In that case, the report calculates the tax provisionally using a default tax rate (which you enter on the selection screen). It then displays these documents in the program log at the end of the output list for you to check manually.