The ISR tax legislation establishes the employer obligation to generate the employee payroll payslips in an XML format to be able to get the CFDI (Certificado Fiscal Digital por Internet - Internet Digital Fiscal Certificate) from the government agency SAT.

XML Template for the CFDI Payslip: To generate the XML output for the CFDI payslip, you can use the default Mexico Payslip XML Template or create your own. Use XML Publisher (XDO) to create a new template. The CFDI XML Payslip functionality provides the ability to add Custom XML code. For information on how to create your own XML template to generate the XML output for the CFDI payslip and also add custom XML to the existing XML data, refer to the My Oracle Support Document: Doc ID 1675858.1.

You run the CFDI Payroll Payslip XML Extract to generate the XML payslip.

See: Running the CFDI Payroll Payslip XML Extract

Before you run the process, you must complete the following steps to set up information for the CFDI Payroll Payslip XML Interface:

   To set up information for the CFDI Payroll Payslip XML Interface:

1. Enter the CFDI payslip code for earning and deduction elements

   Setting up the CFDI Payslip code for each element is mandatory as the XML payslip will be invalid if any element which is present in the XML Payslip has missing CFDI Payslip code. Customers cannot submit such XML Payslips to SAT. The payroll archive process will end in error if the CFDI payslip code is not set for any element which is processed in the current payroll run.

   Note: The CFDI payslip code setup is not required for Oracle delivered earnings and deductions elements, such as, ISR Withheld, Subsidy for Employment, Social Security Quota and Profit Sharing. The CFDI payslip code entry is required only for those custom elements that are newly defined. If you are using the Element Design Wizard to create custom elements for CFDI Payslip, then you must ensure that the following mandatory fields are entered:

   1. CFDI Payslip Code

   2. CFDI Overtime Hours Type: Although this field is available for all elements with the Calculation Rule Hours X Rate in the Element Design Wizard page, use this field only for Supplemental Earnings with the secondary classification Overtime or Other Overtime. This field is also available in the element Further Information window.

   If the payroll administrator finds that the Further Element Information window is not enabled for existing elements, then the Generic Upgrade Mechanism process must be run with Mexico: Upgrade Element Information Category as the parameter name.

   After the Further Element Information window is enabled, follow these steps to enter the CFDI Payslip code information:

   1. Navigate to the Element window.

   2. Search for the appropriate element.

   3. Click Further Information.

   4. Enter the CFDI Payslip code.

2. Specify the following fields in the application to capture details required for reporting in the CFDI Payslip:

   1. CFDI Fiscal Regime: This field is available in the Legal Employer organization classification, Tax Registration window.

   2. SS Work Risk Classification: This field is available in the GRE / Legal Entity organization classification, Social Security Details window.

   3. CFDI Contract Type and CFDI Work Schedule Type: These fields are available in the Statutory Information tab of the Assignment window.

3. Complete steps to adjust earnings. The CFDI payslip does not allow negative earning amounts. However, if you use the same earning element to adjust an overpayment, by entering the negative adjustment amount as an input value, then you can use any one of the following methods to adjust earnings:

   1. Create and setup deduction elements assigning the appropriate "<Earning Code> Adjustment <Earning Description>" deduction codes.

   2. Process earnings with negative values. These earnings will be reported as positive deductions in the CFDI payslip, with the appropriate "<Earning Code> Adjustment <Earning Description>" deduction code. Note that if you use this method, then you must configure the element formula correctly to support negative values. Negative values and incorrect element setup might impact State tax and Integrated Daily Wage calculations.

4. Define the CFDI Outsourcing Employer Information extra information type (EIT) at an employee's assignment level for multiple outsourcing employers. When an employer outsources an HR professional, the Employer RFC and the Time Percentage information of the outsourcee (an organization that provides the outsourcing services) must be included in the CFDI Payslip. The Payroll Archiver process archives the information entered in the CFDI Outsourcing Employer Information EIT to report in the CFDI Payslip.

   To define the CFDI Outsourcing Employer EIT, complete the following steps:

   1. Enable the CFDI Outsourcing Employer Information EIT for a responsibility using the Information Types Security window. For more information, seeSetting Up Extra Information Types For a Responsibility.

   2. Define the CFDI Outsourcing Employer EIT fields:

      1. Navigate to the People window.

      2. Search for the employee for whom you want to record the EIT information.

      3. Click Assignment.

      4. Click Others.

      5. Select Extra Information.

      6. Select CFDI Outsourcing Employer Information.

      7. Specify values in the Employer RFC and Time Percentage fields.

5. Set up balances for the CFDI Payslip.

   • CFDI Paid Days

     The Assignment Run (_ASG_RUN) value of the CFDI Paid Days balance is used for reporting the actual number of paid days to an employee in the CFDI Payslip. This balance is delivered without any feeds. Therefore, you must add the feeds required for this balance. When the CFDI Paid Days balance is set up, the application derives the Number of Paid Days to the employee using the following rules:

     1. If the CFDI Paid Days balance is greater than zero, then the Number of Paid Days is considered the same as the CFDI Paid Days.

     2. If the CFDI Paid Days balance is less than or equal to zero:

        1. If both Social Security Quota and Profit Sharing elements are processed in the same run, then the Number of Paid Days is considered as one.

        2. If the Social Security Quota element is processed and the Profit Sharing element is not processed and the Days Basis of Quotation 1 balance is greater than zero, then the Number of Paid Days is considered as the Days Basis of Quotation one balance value.

        3. If the Profit Sharing element is processed and the Social Security Quota element is not processed and the Eligible Worked Days input value of the Profit Sharing element is greater than zero, then the Number of Paid Days is considered as the Profit Sharing Eligible Worked Days value.

        4. For all other cases, Number of Paid Days is considered as one.

   • CFDI ISR Tax Credit Remainder

     Set up this balance to report the tax remainder details in the CFDI payslip to report the year-to-date (YTD) value of this balance in the CFDI payslip.

     This balance is delivered without any feeds and therefore you must add the feeds required for this balance. The following example explains how the balance is processed for the current year 2017. In this example, the Format 37 Current Fiscal Year Arrears yearly balance value for the Year 2016 is 1000.

     • In January 2017, 300 is refunded to an employee using an Earnings element with the CFDI Payslip Other Payment Code "004 - Application of balance in favor employee by annual comp". Therefore, the CFDI ISR Tax Credit Remainder Yearly balance will reflect the value of 700 in Jan 2017 using the following calculation: Format 37 Current Fiscal Year Arrears for Previous Year - Pay Value of Element used to refund the arrears = 1000 - 300.

     • In February 2017, 200 is refunded to an employee. The CFDI ISR Tax Credit Remainder Yearly balance will reflect the value of 500 in Feb 2017, that is, 1000 - (300 + 200)).

     • In March 2017, 500 is refunded to an employee. Therefore, the CFDI ISR Tax Credit Remainder Yearly balance reflects the value of 0 in March 2017, that is, 1000 - (300 + 200 + 500)).

6. Run the required processes before running the CFDI Payslip XML Interface program:

   The XML payslip will be generated for an assignment only when all the following processes are run:

   • Payroll

   • Prepayments

   • Check Writer/Direct Deposit

   • Payroll Archive

   Ensure that these processes are run before running the CFDI Payroll Payslip XML Extract' concurrent program.

   Important: Before running this report, ensure that the Run XML Publisher for Report Generation (RUN_XDO) and Print Files (PRINT_FILE) action parameters are set to Y. These action parameters are available in the Action Parameters window. For more information about the action parameters, refer to the Oracle HRMS Implementation Guide.