Configure electronic invoice parameters for Paraguay

This article explains how to configure the information that is required to generate the electronic invoice XML for Paraguay.

Prerequisites

Before you complete the procedures in this article, the following prerequisites must be met:

• Both the country/region-specific Latin American (LATAM) feature for Paraguay and the general LATAM feature must be enabled.
• The company's address must be set to Paraguay.
• You must download the specific report configurations from the Dataverse configuration repository for Paraguay Electronic Invoices. Learn more in Import Electronic reporting (ER) configurations from Dataverse.
• You must configure the Electronic reporting (ER) parameters. Learn more in Configure the Electronic reporting (ER) framework.

Configuration required for Paraguay electronic invoices

1. Go to Organization administration > Setup > LATAM > Tax application, and select New to create a tax application record that has the code PYFE (Paraguayan electronic invoice). Use this tax application record to assign the fiscal codification to each element in Microsoft Dynamics 365 Finance as required.

2. Go to Organization administration > Organizations > Legal entities, and follow these steps:

   1. Select the legal entity that you want to work with.
   2. In the LATAM section, in the Concept 1 field, add the activity code. You can change the label for this field in the Concepts and notes configuration.
   3. In the Country identification number field, enter the company ID number.
   4. Complete the contact information with the telephone number and email address, and set it to Primary.

3. Go to Organization administration > Setup > LATAM > Document class, and follow these steps for each record in the list:

   1. Select the record, and then select Tax application.

   2. On the Tax application page, in the Tax application id field, enter the ID that is used for Paraguayan electronic invoicing.

   3. In the Tax application code field, enter the code according to the Paraguayan normative.

   4. In the Legal Description field, enter the electronic document description.

   5. In the Additional data section, enable lists 1 through 9.

      • List 1 is mandatory for all electronic documents.
      • List 2 is mandatory for all electronic documents except packing slips.
      • List 3 is optional for all electronic documents.
      • List 4 is mandatory for all electronic documents.
      • List 5 is mandatory for electronic invoices.
      • List 6 is mandatory for electronic credit and debit notes.
      • List 7 is mandatory for electronic packing slips.
      • List 8 is mandatory for electronic packing slips.
      • List 9 is mandatory for all electronic documents except packing slips.

   6. Go to Document class sales point, and then, for printing concept 1, enter the street name that the electronic document is issued from. For printing concept 2, enter the street number.

4. Go to Organization administration > Setup > LATAM > Sales point prefix, and follow these steps for each record in the list:

   1. Select the record, and then select Tax application.
   2. On the Tax application page, in the Tax application id field, enter the ID that is used for Paraguayan electronic invoicing.
   3. In the Tax application code field, enter the branch/subsidiary code.
   4. In the Prefix field, for each sales point prefix, enter the sales point codes that the company uses.

5. Go to Organization administration > Setup > LATAM > Tax ID type, and follow these steps for each record in the list:

   1. Select the record, and then select Tax application.
   2. On the Tax application page, in the Tax application id field, enter the code that is used for Paraguayan electronic invoicing.
   3. In the Tax application code field, enter the code for tax IDs according to the Paraguayan normative.

6. Go to Organization administration > Setup > LATAM > Taxpayer type. In the records that are used, go to the Tax application menu, and then follow these steps:

   1. Create a record that has the tax application code that is used for Paraguayan electronic invoicing.
   2. In the Tax application code field, enter the taxpayer code according to the Paraguayan normative.
   3. In the User defined field 1 field, enter the recipient nature code.

7. Go to Organization administration > Global address book > Addresses > Address setup. For each record (State, County, and City) that has an address in Paraguay, go LATAM > Tax application to assign the tax application codes for Paraguayan states, counties, and cities (Departamento, Distrito, and Ciudad).

8. Go to Accounts receivable > Payments setup > Methods of payment, and follow these steps for each record in the list:

   1. Select the record, and then select Tax application.
   2. On the Tax application page, in the Tax code field, enter the code according to the Paraguayan normative.
   3. In the General section, configure the Service level field with the payment processing method code according to the Paraguayan normative.

9. Go to Accounts receivable > Payments setup > Terms of payment, and follow these steps for each record in the list:

   1. Select the record, and then select Tax application.
   2. On the Tax application page, in the Tax code field, enter the code according to the Paraguayan normative.

10. Go to Product information management > Products > Released products, and follow these steps for each record in the list:

    1. Select the record, and then select Tax application.
    2. On the Tax application page, in the Tax code field, enter the code according to the Paraguayan normative.

11. Go to Organization administration > Setup > Units > Units, and follow these steps for each record in the list:

    1. Select the record, and then select Tax application.
    2. On the Tax application page, in the Tax code field, enter the code according to the Paraguayan normative.

12. Go to Tax > Indirect taxes > Sales tax > Sales tax codes, and follow these steps for each record in the list:

    1. Select the record, and then select Tax application.
    2. On the Tax application page, in the Tax application id field, select the code that is used for Paraguayan electronic invoicing.
    3. In the Income tax code field, enter the code that identifies the tax according to the Paraguayan normative (fiscal tax method).
    4. In the User defined field 1 field, enter the tax description according to the Paraguayan normative.

13. Go to General ledger > Currencies > Currencies, and follow these steps for each record in the list:

    1. Select the record, and then select Tax application.
    2. On the Tax application page, in the Tax code field, enter the code according to the Paraguayan normative.

14. Go to Sales and marketing > Setup > Distribution > Modes of delivery, and follow these steps:

    1. Select the record, and then go to LATAM > Tax application.
    2. On the Tax application page, enter a new record.
    3. In the Tax application Id field, select the code that is used for Paraguayan electronic invoices.
    4. In the Tax application code field, enter the code according to the Paraguayan normative for types of transport.

15. Go to Transportation management > Setup > Carriers > Transportation methods, and configure the codes and descriptions for transportation modalities.

16. Go to Inventory management > Setup > Shipping carrier > Shipping carriers, and follow these steps:

    1. Configure the Mode of delivery field with the type of vehicle for transportation.
    2. Configure the Carrier service field with the vehicle brand for transportation.
    3. Configure the Transportation method field with the vehicle type for transportation.
    4. Configure the External code field with the vehicle identification number for transportation.
    5. In the LATAM section, complete the fields with the fiscal information according to the Paraguayan normative.

When you issue an electronic document that has an associated document, you must select References on the posting page and add the associated document. Complete the reason code and the reason description for the associated document.

Before you can use the References button on an electronic document, you must follow these steps.

1. Go to Organization administration > Setup > LATAM > Electronic documents references, and select the tax application that was created for Paraguayan electronic invoices.
2. In the document class that is used in the transaction, set the Use reference document option to Yes.

After you complete these steps, you can issue electronic invoices from free text invoices, sales orders, and projects.