Configure electronic invoice parameters for Costa Rica

This article describes the main configuration settings required to issue electronic invoices in Costa Rica by using Microsoft Dynamics 365 Finance.

Prerequisites

Before you complete the procedures in this article, make sure you meet the following prerequisites:

• Enable the country/region-specific Latin American (LATAM) feature for Costa Rica, and the general LATAM feature.
• Set the company's address to Costa Rica.
• Download the specific report configurations from the Dataverse configuration repository for Costa Rican Electronic Invoices:

Learn more in Import electronic reporting (ER) configurations from Dataverse.

• Configure the electronic reporting (ER) parameters. Learn more in Configure the electronic reporting (ER) framework.
• Configure all the LATAM extensions before you continue with the configuration in this article.

Configuration required for Costa Rica electronic invoices

These configurations are required for Costa Rican electronic invoices.

• Set up the tax application
• Set up the legal entity
• Set up customers
• Set up vendors
• Set up the document classes
• Set up the sales point prefix
• Set up the field master lists
• Set up the fiscal information
• Set up the addresses
• Set up other configurations
• Set up charges and discounts
• Set up taxes

The following sections describe each configuration.

Configure the tax application

To configure the tax application, go to Organization administration > Setup > LATAM > Tax application, and select New to create a tax application record with the code CRFE (Costa Rican electronic invoice). Use this tax application record to assign the fiscal codification to each element in Microsoft Dynamics 365 Finance as required.

Configure the legal entity

To configure the legal entity, follow these steps.

1. Go to Organization administration > Organizations > Legal entities.
2. Select the legal entity that you want to work with.
3. Complete the address fields with the country/region, state, county, and city.
4. Enter the email address in the contact information and set it to Primary.
5. In the LATAM section, complete the Taxpayer type with an option that represents the organization.
6. In the Based in country/region field, enter CRI.
7. In the Country/region document type field, select the option that represents the identification document type used by the organization.
8. In the LATAM section, in the Country/region identification number field, enter the company ID number (for example, 1-123-45678901).
9. In the LATAM section, in the Free Text 1 field, enter the company activity code number.

Configure customers

To configure customers, follow these steps.

1. Go to Accounts receivable > Customers > All customers.
2. For each customer used in transactions:
   1. Complete the address fields with the country/region, state, county, and city.
   2. Complete the contact information with the email address and set it to Primary.
   3. In the LATAM section, complete the Taxpayer type with an option that represents the customer.
   4. In the Based in country/region field, select an option that represents the customer.
   5. In the Country/region document type field, select the option that represents the customer.
   6. In the LATAM section, in the Country/region identification number field, enter the customer ID number (for example, 1-123-45678901).
   7. In the top menu, go to General > Business classification.
   8. Create a new record.
   9. In the Business classifications field, enter the customer activity code number.

Configure vendors

To configure vendors, follow these steps.

1. Go to Accounts payable > Vendors > All vendors.
2. For each vendor used in transactions:
   1. Complete the address fields with the country/region, state, county, and city.
   2. Complete the contact information with the email address and set it to Primary.
   3. In the LATAM section, complete the Taxpayer type with an option that represents the vendor.
   4. In the Based in country/region field, select an option that represents the vendor.
   5. In the Country/region document type field, select the option that represents the vendor.
   6. In the LATAM section, complete the Country/region identification number field, enter the vendor ID number.

Configure the document classes

This configuration applies to invoices, credit notes, debit notes, purchase invoices, and payment receipts.

To configure document classes, follow these steps.

1. Go to Organization administration > Setup > LATAM > Document class.
2. For each Document class that you want to use in Electronic Invoicing:
   1. Select the record and then go to Tax application.
   2. On the Tax application page, enter the ID that is used for Costa Rican electronic invoicing in the Tax application id field.
   3. In the Tax application code field, enter the code according to the Costa Rican normative.
   4. In the Letter code field, enter R for debit notes, credit notes, and purchase invoices to enable the Reference code field when posting a transaction.
   5. In the User-defined field 2 field, enter the status code of the electronic document according to the Costa Rican normative.
   6. Set the Use reference document slider to Yes for debit notes, credit notes, and purchase invoices to enable the Invoice posting references section when posting a transaction.

Configure the sales point prefix

To configure the sales point prefix, follow these steps.

1. Go to Organization administration > Setup > LATAM > Sales point prefix, and for the sales point used for electronic invoicing, follow these steps:
2. Enter the sales point code in the Prefix field.
3. On the Tax application page, enter the ID that is used for Costa Rican electronic invoicing in the Tax application id field.
4. Enter the branch or head office code in the Tax application code field.
5. In the Report/Service Id field, select the SSRS Reports / Services references configured for electronic invoicing. Configure SSRS Reports / Services references.

Configure the field master lists

To configure field master lists, follow these steps.

1. Go to Organization administration > Setup > LATAM > Fields master List.
2. In LIST 9, configure a document type code for reference according to the Costa Rican normative.
3. In LIST 10, configure the codes for reference reasons for credit notes, debit notes, and purchase invoices according to the Costa Rican normative.

Learn more in Field list configuration for Latin America.

Configure the fiscal information

To configure fiscal information, follow these steps.

1. Go to Organization administration > Setup > LATAM > Tax ID type, and for each record in the list, follow these steps:
2. Select the record, then select Tax application.
3. On the Tax application page, enter the code that is used for Costa Rican electronic invoicing in the Tax application id field.
4. Enter the code for tax IDs according to the Costa Rican normative in the Tax application code field.

Configure the addresses

To configure addresses, follow these steps.

1. Go to Organization administration > Global address book > Addresses > Address setup.
2. For each record (State, County, and City) used in electronic invoicing, in the Description field, enter the information according to the Costa Rican normative.
3. For each record (State, County, and City) used in electronic invoicing, go to LATAM > Tax application to assign the tax application codes according to the Costa Rican normative.

Learn more in Address setup for Latin America.

Other configurations

Method of payments

To configure the method of payments, follow these steps.

1. For customers, go to Accounts receivable > Payments setup > Methods of payment.

2. For each record in the list:

   1. Select the record, and then go to Tax application in the top menu.
   2. Create a new record.
   3. In the Tax application id field, enter the code that you use for Costa Rican electronic invoicing.
   4. In the Tax application code field, enter the code for the payment method according to the Costa Rican normative.

3. For vendors, go to Accounts payable > Payments setup > Methods of payment.

4. For each record in the list:

   1. Select the record, and then go to Local instrument.
   2. Create a new record.
   3. Enter the Code field used for Costa Rican electronic invoicing.

Terms of payments

To configure the terms of payment, follow these steps.

1. Go to Accounts receivable > Payments setup > Terms of payment.
2. For each record in the list:
   1. Select the record, and then go to Tax application in the top menu.
   2. Create a new record.
   3. In the Tax application id field, enter the code that you use for Costa Rican electronic invoicing.
   4. In the Tax application code field, enter the code for the sales condition according to the Costa Rican normative.
   5. In the Days field, enter the credit term (if applicable).

Configure released products

To configure released products, follow these steps.

1. Go to Product information management > Products > Released products.
2. For each record in the list:
   1. Select the record and in the top menu go to LATAM > Tax application.
   2. Create a new record.
   3. In the Tax application Id field, select the one used for Costa Rican electronic invoicing.
   4. In the Tax application code field, enter the code that identifies the product/service.
   5. In the User-defined field 1 field, enter the transaction type code according to the Costa Rican normative.
   6. In the User-defined field 3 field, enter the tariff heading code according to the Costa Rican normative.
   7. In the top menu, go to Manage inventory > GTIN codes.
   8. Create a new record.
   9. In the GTIN field, enter the commercial code that identifies the product according to the Costa Rican normative.

Configure Units

To configure Units, follow these steps.

1. Go to Organization administration > Setup > Units > Units.
2. For each record in the list:
   1. Select the record, then select Tax application.
   2. Create a new record.
   3. In the Tax application id field, enter the code that you use for Costa Rican electronic invoicing.
   4. In the Tax application code field, enter the unit code according to the Costa Rican normative.

Currencies configuration

To configure currencies, follow these steps.

1. Go to General ledger > Currencies > Currencies.
2. For each record in the list:
   1. Select the record and then go to Tax application in the top menu.
   2. Create a new record.
   3. In the Tax application id field, select the code that you use for Costa Rican electronic invoicing.
   4. In the Tax application code field, enter the currency code according to the Costa Rican normative.

Configure charges and discounts

This section explains how to configure global charges and line discounts.

To configure global charges and line discounts, follow these steps.

1. Go to Accounts receivable > Charges setup > Charges code.

2. For each record that you want to use as a global charge, follow these steps:

   1. Select a record and go to LATAM > Tax application in the top menu.
   2. Create a new record.
   3. In the Tax application Id field, select the one used for Costa Rican Electronic Invoice.
   4. In the Tax application code field, enter the code according to the Costa Rican normative.
   5. In the Description field, enter the charge motive.

3. For each record that you want to use as a line discount, follow these steps:

   1. Select a record and go to LATAM > Tax application in the top menu.
   2. Create a new record.
   3. In the Tax application Id field, select the one used for Costa Rican Electronic Invoice.
   4. In the Tax application code field, enter the discount code according to the Costa Rican normative.

Configure taxes

To configure the taxes for each tax and percentage, follow these steps.

1. Go to Tax > Indirect taxes > Sales tax > Sales tax codes.
2. For each record in the list:
   1. Select the record and then go to Tax application in the top menu.
   2. Create a new record.
   3. In the Tax application id field, select the code that you use for Costa Rican electronic invoicing.
   4. In the Income tax code field, enter the VAT rate code according to the Costa Rican normative.
   5. In the Code regime field, enter the tax code according to the Costa Rican normative.

Configure electronic document references

To configure electronic document references, follow these steps.

1. Go to Organization administration > Setup > LATAM > Electronic documents references.
2. In the Tax application Id field, enter the ID that you use for Costa Rican electronic invoices.

Steps to reference a document

When you issue an electronic document that has an associated document, select References on the posting page, and add the associated document.

To reference a document for sales invoices, follow these steps.

1. Go to the General tab, select Source Vouchers, and from the list of documents, select the document to associate.
2. In the Reference code field, enter a number code for the reference reason.
3. Complete the Reference reason field with a motive.

To reference a document for purchase invoices, follow these steps.

1. In the Reference code field, enter the number code for the reference reason according to Costa Rican regulations.
2. Enter the date in the Reference date field.
3. Enter the complete document number in the Reference document number field.
4. Enter the document type code of the referenced transaction in the Reference document type field.
5. Complete the Reference reason field with a motive.

Configure lookups

Configure the required lookups to create an electronic document.

To configure lookups, follow these steps:

1. Go to Organization administration > Electronic reporting > Configurations.
2. Select the report to configure in the left menu.
3. Go to Application specific parameters in the top menu.
4. Select the report version to configure.
5. In the Lookups section, select the TaxType lookup.
6. In the Conditions section, add the required Lookup results, and select the corresponding tax codes for each one.

Configure SSRS reports and services references

For electronic invoicing, you must configure the SSRS Reports / Services references.

To configure SSRS reports and services references, follow these steps.

1. Go to Organization administration > Setup > LATAM > SSRS Reports / Services references.
2. Create a new record.
3. Enter a code and description in the Report/Service ID and Report/Service name fields.
4. In the Settings tab, select Service for the Report/Service type field.
5. In the Sales point type field, select Pre-printed (this selection must match the sales point type used for electronic invoicing).
6. In the Parameter section, add the following line:
   1. Name: TaxApplicationId.
   2. Value: CRFE (this code must match the tax application used for electronic invoicing).

Configure bundled item

Bundle items, composed of subitems with specific details captured in the transaction, are represented using a bill of materials (BOM) structure. Learn more in bills of materials and formulas.

Purchase invoice

Learn more about purchase invoice posting in Latin America in Purchase invoice posting for Latin America.

Electronic payment receipt

The LATAM extension represents the electronic payment receipt in customer payment journals.

For more information, see Use the LATAM extension in customer payment journals.