SAP Document and Reporting Compliance

The Comprehensive Guide for Finance and Tax

Book Information

• Publisher: SAP PRESS
• Authors: Genevieve Watson, Eliza Alberts-Muller, Iain MacIntosh
• Year: 2026
• Edition: 1
• Pages: 637
• Language: English

Description

Dive into the digital compliance landscape! Start by configuring your tax settings in SAP S/4HANA based on your business requirements. Next, set up SAP Document and Reporting Compliance to enable seamless eDocument creation, validation, transmission, and reconciliation as well as key reporting tasks. Get step-by-step instructions for end-user activities, walk through best practices for ensuring data accuracy, and see the system in action with real-world case studies. Get ready to implement and use SAP DRC with confidence!

• Configure SAP Document and Reporting Compliance with step-by-step instructions
• Run essential statutory and e-invoicing reports in real time
• Follow case studies and best practices for a successful implementation

Key Highlights

• Digital tax
• Digital reporting
• SAP S/4HANA (on-premise and cloud)
• eDocuments
• Statutory reports
• Periodic reporting
• Real-time reporting
• Data integrity
• Change management
• Case studies

You'll learn about

• Digital Tax Compliance:
  Understand the global regulatory landscape for digital tax and reporting compliance. Set up tax in SAP S/4HANA, including the enterprise structure, master data, and tax codes. Gain insights into user roles, authorizations, and integration points.
• Implementation:
  Configure SAP Document and Reporting Compliance for eDocument processing and periodic reporting. Define document types, configure output channels, perform tax box mapping, set up SAP BTP to securely submit your reports, and more!
• Professional Use:
  Fulfill your compliance and reporting obligations, from running statutory reports and managing tax items to submitting reports and handling correction phases. Establish robust data governance procedures and implement effective data validation rules.

Table of Contents

• PART I Introduction to Digital Tax Compliance and SAP

• 1 Navigating the Regulatory Landscape of Digital Compliance
• 1.1 Introduction to Digital Reporting and Tax Mandates
• 1.1.1 Evolution of Tax Authorities
• 1.1.2 Indirect Tax
• 1.2 Continuous Transaction Controls and Digital Tax Controls
• 1.2.1 Digital Tax Control Components
• 1.2.2 Digital Compliance and Continuous Transaction Controls
• 1.2.3 Transitioning from Traditional Control to Continuous Transaction Controls
• 1.3 E-Invoicing
• 1.3.1 Post-Audit Model
• 1.3.2 Interoperability Model
• 1.3.3 Real-Time Reporting Model
• 1.3.4 Centralized Exchange Models
• 1.3.5 Decentralized Exchange Models
• 1.3.6 Clearance Models
• 1.3.7 EN16931 and Peppol Standards
• 1.3.8 Networked Environments and Open Networks
• 1.4 E-Reporting
• 1.4.1 Real-Time Reporting
• 1.4.2 Near-Time Reporting
• 1.4.3 Tax Audit Reporting: SAF-T
• 1.4.4 Other VAT Reporting: CESOP and DAC7
• 1.4.5 VAT in the Digital Age
• 1.4.6 The Transformation of Traditional Reporting
• 1.5 Benefits of Embracing Digital Compliance
• 1.6 Preparing for Implementation
• 1.6.1 Understanding Your Implementation Context
• 1.6.2 Implementation Phases
• 1.6.3 Activities
• 1.6.4 Cross-Stream Integrations
• 1.6.5 Scoping Your Project
• 1.6.6 Building a Compelling Business Case
• 1.7 Summary

• 2 Taxes in the SAP Landscape
• 2.1 Enterprise Structure Elements for Taxes Within SAP S/4HANA
• 2.1.1 Company Code
• 2.1.2 Sales Organization
• 2.1.3 Plant
• 2.1.4 Purchasing Organization
• 2.1.5 Business Place
• 2.1.6 Aligning Tax Reporting Structures with the Enterprise Structure
• 2.2 Master Data for Tax Treatments
• 2.2.1 Business Partner
• 2.2.2 Maintaining Tax Number Categories
• 2.2.3 Maintaining Tax Types and Tax Groups
• 2.2.4 Assigning Tax Categories to General Ledger Accounts
• 2.2.5 Tax Codes
• 2.2.6 Material Master Data: Material Tax Classification
• 2.2.7 Commodity Codes, Harmonized System of Nomenclature Codes, and European Article Numbers
• 2.3 Transactional Data
• 2.3.1 How Transactions Arise in SAP S/4HANA
• 2.3.2 Financial Transactions
• 2.3.3 Materials Management Transactions
• 2.3.4 SAP S/4HANA Sales Transactions
• 2.3.5 Reporting and Analysis Transactions
• 2.4 Tax Determination
• 2.4.1 Tax Codes
• 2.4.2 Withholding Tax
• 2.4.3 Excise Duty Management
• 2.4.4 Custom Duties in International Trade
• 2.4.5 Property Tax
• 2.4.6 Payroll Taxes
• 2.4.7 Environmental Taxes
• 2.4.8 Local Taxes
• 2.5 Account Determination
• 2.6 Integration
• 2.7 Tax Compliance in a Digital World
• 2.7.1 Legal Obligation and Risk Mitigation
• 2.7.2 Tax Transparency and Public Trust
• 2.7.3 Tax Mandates as a Catalyst for Digital Transformation
• 2.7.4 Global Tax Compliance
• 2.7.5 Tax Compliance and Corporate Social Responsibility
• 2.8 Electronic Invoicing
• 2.9 VAT and Other Statutory Reports
• 2.10 Summary

• 3 Introduction to SAP Document and Reporting Compliance
• 3.1 Key Frameworks and Architecture
• 3.1.1 Framework
• 3.1.2 Overview and Core Components
• 3.1.3 Deployment Options
• 3.1.4 User Experience
• 3.1.5 Integration Through SAP Business Technology Platform
• 3.1.6 Integration Considerations
• 3.1.7 Cybersecurity and Data Protection
• 3.1.8 Performance and Scalability
• 3.1.9 Troubleshooting and Error Resolution
• 3.2 Electronic Document Processing
• 3.2.1 Electronic Document Creation and Processing
• 3.2.2 Electronic Document Types and Formats
• 3.2.3 Non-SAP Document Integration
• 3.2.4 Integration with SAP S/4HANA and Other Systems
• 3.3 Statutory Reporting
• 3.3.1 Real-Time Reporting
• 3.3.2 Periodic Reporting
• 3.3.3 Extensibility
• 3.3.4 Supporting Components
• 3.4 User Roles and Authorizations
• 3.5 Legal Change and SAP Notes Monitoring
• 3.6 Summary

• PART II Implementing SAP Document and Reporting Compliance

• 4 Configuring Electronic Documents
• 4.1 Components
• 4.2 Activation
• 4.3 SAP S/4HANA Mapping and Customization
• 4.3.1 General Settings
• 4.3.2 SAP Application Interface Framework Settings
• 4.3.3 Master Data
• 4.4 SAP S/4HANA Technical and Communication Customization
• 4.4.1 Technical Objects and Business Add-Ins
• 4.4.2 Process Settings
• 4.4.3 Interface and Communication Settings
• 4.4.4 Authorizations
• 4.5 SAP Business Technology Platform
• 4.5.1 Component Activation
• 4.5.2 Component Configuration
• 4.6 Additional Integrations
• 4.6.1 Integrations to Handle Incoming Documents
• 4.6.2 Integrations with Other Systems in the SAP Ecosystem
• 4.6.3 Integrations with External Non-SAP Systems
• 4.6.4 eDocument Consistency
• 4.7 Extensibility
• 4.7.1 Extensibility Using On-Premise SAP Document and Reporting Compliance
• 4.7.2 Extensibility Using SAP Integration Suite
• 4.8 eDocuments Localization
• 4.8.1 Last-Mile Connectivity
• 4.8.2 E-Invoice Software Certifications
• 4.8.3 Digital Certificate/Digital Signature
• 4.9 Summary

• 5 Configure Periodic Reporting
• 5.1 Initial Setup
• 5.1.1 Framework
• 5.1.2 Packages and SAP Notes
• 5.2 Define Reporting Entities and Periodicity
• 5.2.1 Create Statutory Reporting Entities
• 5.2.2 Assign Report Categories to a Reporting Entity
• 5.2.3 Set the Periodicity of the Report Category
• 5.2.4 Set Properties of Reporting Activity
• 5.2.5 Enter Parameters Specific to the Report Category
• 5.2.6 Set the Validity of the Organizational Unit
• 5.2.7 Assign the Organizational Unit to the Reporting Entity
• 5.2.8 Enter Parameters Specific to Reporting Entities
• 5.3 Report-Specific Key Configurations
• 5.3.1 Value-Added Tax/Goods and Services Tax Reporting
• 5.3.2 EC Sales List
• 5.3.3 Standard Audit File for Tax
• 5.3.4 Audit File
• 5.3.5 Additional Reports
• 5.4 Workflows in Statutory Reporting
• 5.5 Statutory Reports and Extensibility
• 5.5.1 Report Definition
• 5.5.2 Reporting Activity
• 5.5.3 Report Category
• 5.5.4 Extend/Copy Reports
• 5.5.5 Additional Technical Details
• 5.5.6 APIs and BAdIs
• 5.6 Cleaning of Reports
• 5.7 Summary

• PART III SAP Document and Reporting Compliance for End Users

• 6 Using SAP Document and Reporting Compliance
• 6.1 Introduction to the Business User Perspective
• 6.1.1 User Roles and Personas
• 6.1.2 Key Pain Points
• 6.1.3 User Interfaces and Navigation
• 6.1.4 User Experience Design Principles
• 6.2 Getting Started: User Onboarding and Setup
• 6.2.1 User Access and Authorization
• 6.2.2 SAP Fiori Apps Reference Library
• 6.2.3 Personalization Options and Preferences
• 6.2.4 Logging In and Navigation
• 6.3 Day-to-Day Operations: Document Compliance
• 6.3.1 Creating and Processing Compliant eDocuments
• 6.3.2 Handling Document Compliance Errors
• 6.3.3 Document Status Monitoring and Tracking
• 6.4 Day-to-Day Operations: Reporting Compliance
• 6.4.1 Report Generation and Submission Workflows
• 6.4.2 Data Validation and Quality Checks
• 6.4.3 Handling Reporting Errors and Exceptions
• 6.4.4 Report Status Monitoring
• 6.4.5 Report Versioning and Corrections
• 6.5 Advanced User Functions
• 6.5.1 Compliance Dashboards and Analytics
• 6.5.2 Ad Hoc Reporting Capabilities
• 6.5.3 Exception Handling Processes
• 6.5.4 Customizing Views and Reports
• 6.5.5 Batch Processing and Scheduling
• 6.6 Summary

• 7 Data Accuracy and Integrity
• 7.1 Data Governance
• 7.1.1 Who Is Involved in the Transaction?
• 7.1.2 What Is the Nature of the Transaction?
• 7.1.3 When Does the Transaction Occur?
• 7.1.4 Where Does the Transaction Take Place?
• 7.1.5 How Does the Transaction Take Place?
• 7.2 Granularity of Output
• 7.2.1 VAT Report Output
• 7.2.2 Withholding Tax Output
• 7.2.3 Financial Output
• 7.2.4 E-invoice Output
• 7.3 Tax Control Framework Perspective
• 7.4 Implementing Data Validation Rules
• 7.4.1 Master Data Checks
• 7.4.2 Transactional Process Checks
• 7.4.3 Continuous Monitoring
• 7.4.4 SAP Risk and Assurance Management
• 7.5 Data Cleansing and Enrichment Techniques
• 7.5.1 Data Cleansing: Correcting Inaccuracies
• 7.5.2 Data Enrichment: Adding Context and Completeness
• 7.6 Summary

• 8 Tax User Adoption and Change Management
• 8.1 User and Leadership Buy-In
• 8.1.1 System Implementation Versus Business Transformation
• 8.1.2 Mindset and Behavioral Change
• 8.1.3 The Role of Leadership
• 8.1.4 Addressing Resistance to Change and Fostering Engagement
• 8.1.5 Ownership
• 8.2 Change Management
• 8.2.1 Prepare
• 8.2.2 Transform
• 8.2.3 Continue
• 8.3 Summary

• PART IV Real-World Applications and Future Trends

• 9 Case Studies for SAP Document and Reporting Compliance
• 9.1 Multinational Corporation: Streamlining Regulatory Reporting
• 9.1.1 Overview
• 9.1.2 Approach
• 9.1.3 Outcomes and Benefits
• 9.2 Global Retail Company: Streamlining Tax Compliance and Reporting
• 9.2.1 Overview
• 9.2.2 Approach
• 9.2.3 Implementation Overview
• 9.2.4 Outcomes and Benefits
• 9.3 IT Services Organization: E-Invoicing for Customer Billing
• 9.3.1 Overview
• 9.3.2 Approach
• 9.3.3 Outcomes and Benefits
• 9.4 Multinational Healthcare Enterprise: E-Invoicing Across Countries
• 9.4.1 Overview
• 9.4.2 Approach
• 9.4.3 Outcomes and Benefits
• 9.5 Key Takeaways and Lessons Learned
• 9.5.1 Statutory Reporting
• 9.5.2 E-Invoicing/eDocuments
• 9.6 Summary

• 10 Future Trends and Innovations
• 10.1 The Evolving Landscape of Tax and Compliance
• 10.1.1 Future Direction of Tax and Compliance Obligations
• 10.1.2 Key Considerations Impacting SAP
• 10.2 Emerging Technologies Impacting Compliance
• 10.2.1 Artificial Intelligence and Machine Learning
• 10.2.2 Blockchain Technology
• 10.2.3 Robotic Process Automation
• 10.3 Future Direction of SAP Document and Reporting Compliance
• 10.4 Staying Ahead of the Curve: Continuous Learning and Adaptation
• 10.4.1 SAP Universal ID, P-User, and S-User
• 10.4.2 SAP Learning Site
• 10.4.3 SAP Learning Hub
• 10.4.4 SAP Certification
• 10.4.5 SAP Help
• 10.4.6 SAP Support Portal
• 10.4.7 SAP Notes
• 10.4.8 SAP Community
• 10.5 Summary

• The Authors
• The Contributors

• Index

Disclaimer

SAP, other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Our Company is not affiliated to SAP SE or any of its affiliated companies including but not limited to: Sybase, Business Objects, Hybris, Ariba and SuccessFactors. All other names, brands, logos, etc. are registered trade or service marks of their respective owners.