Tax with SAP S/4HANA

Configuration and Determination

Book Information

• Publisher: SAP PRESS
• Authors: Michael Fuhr, Dirk Heyne, Nadine Teichelmann, Jan M. Walter
• Year: 2022
• Edition: 1
• Pages: 492
• Language: English

Description

Tax compliance is critical. Get the concrete guidance you need for indirect and direct taxes in SAP S/4HANA with this book! See how to configure standard tax settings such as tax codes, plants abroad, and exchange rates. Follow step-by-step instructions for indirect tax determination, get direct tax up and running, and learn about tax reporting and monitoring requirements. With coverage of add-ons and custom coding, this is your comprehensive guide to global tax!

• Configure SAP S/4HANA for direct and indirect taxes with step-by-step instructions
• Prepare your system for global finance, procurement, and sales tax operations
• Master key tax reporting and monitoring functionality

Key Highlights

• Organizational structure
• Configuration
• Indirect tax determination
• Direct tax
• Condition logic
• Tax reporting
• Indirect tax monitoring
• User exits
• Tax engines

You'll learn about

• Configuration:
  Tailor tax settings to your exact specifications. Learn how to customize standard settings for financial accounting, sales and distribution, and materials management.
• Direct and Indirect Taxes:
  Walk through tax determination, step by step. Set up indirect tax determination for purchasing, sales, and special processes. Learn about the direct tax process and configure key settings for ledgers, withholding tax, general ledger accounts, and more.
• Reporting and Monitoring:
  Understand your reporting and monitoring requirements. Explore standardized tax reporting, see how tax monitoring fits into the tax control framework, and use solutions like SAP Document and Reporting Compliance and SAP Tax Compliance.

Table of Contents

• Preface
• Objective of This Book
• Readers of This Book
• Structure of This Book
• Acknowledgments

• 1 Introduction to Taxes with SAP S/4HANA
• 1.1 The Tax Function
• 1.1.1 SAP S/4HANA as a Unique Occasion for Tax Functions
• 1.1.2 Challenges and Requirements
• 1.2 The Tax Operating Model and SAP S/4HANA
• 1.2.1 IT Infrastructure and Architecture
• 1.2.2 Tax Data Management
• 1.2.3 Tax Processes
• 1.2.4 Tax Talents
• 1.2.5 Governance and Organization
• 1.2.6 Tax Business Case
• 1.3 Taxes with SAP S/4HANA
• 1.3.1 What’s New?
• 1.3.2 SAP Solutions for Global Tax Management
• 1.4 Getting Started with SAP S/4HANA
• 1.4.1 Deployment Alternatives
• 1.4.2 Migration Strategies
• 1.4.3 SAP Activate Project Methodology
• 1.5 End-to-End Processes
• 1.5.1 Tax Processes
• 1.5.2 Business Processes
• 1.6 Summary

• 2 Indirect and Direct Tax Requirements
• 2.1 Indirect Tax
• 2.1.1 Global Indirect Tax Systems
• 2.1.2 Taxable Events
• 2.1.3 Tax Exemptions
• 2.1.4 Grouping
• 2.1.5 Transaction Types
• 2.1.6 Standard Reporting Requirements
• 2.1.7 Digital Reporting Requirements
• 2.2 Direct Taxes
• 2.2.1 Base Erosion and Profit Shifting
• 2.2.2 Base Erosion and Profit Shifting 2.0
• 2.2.3 Standard Audit File for Tax
• 2.2.4 Financial Reporting Standards
• 2.2.5 Tax-Relevant Reporting Requirements
• 2.3 Summary

• 3 Basic Settings in SAP S/4HANA
• 3.1 Financial Accounting
• 3.1.1 Tax Codes
• 3.1.2 Tax Accounts
• 3.1.3 Plants Abroad
• 3.1.4 Exchange Rates
• 3.2 Sales and Distribution and Materials Management
• 3.2.1 Tax Classifications
• 3.2.2 Tax Identification Numbers
• 3.2.3 Tax Determination with Pricing
• 3.3 Integration of SAP Modules in Tax Determination
• 3.3.1 Materials Management and Financial Accounting
• 3.3.2 Sales and Distribution and Financial Accounting
• 3.4 Smart Forms
• 3.5 Summary

• 4 Indirect Tax Determination in SAP S/4HANA
• 4.1 Condition Logic in SAP
• 4.1.1 Price Calculation Procedure
• 4.1.2 Condition Types
• 4.1.3 Access Sequence
• 4.1.4 Condition Tables
• 4.1.5 Access Requirements
• 4.2 Indirect Tax Determination in Purchasing
• 4.2.1 Electronic Data Interchange versus Purchase Info Records
• 4.2.2 Purchase Order
• 4.2.3 Invoice Posting
• 4.2.4 Customization Scenarios
• 4.2.5 Solutions for Procurement
• 4.3 Indirect Tax Determination in Sales
• 4.3.1 Sales Order
• 4.3.2 Invoice
• 4.3.3 Customization Scenarios
• 4.4 Special Indirect Tax Transactions
• 4.4.1 Chain Transactions/Drop Shipments
• 4.4.2 Internal Stock Transfers
• 4.4.3 Special Payment Processes
• 4.5 Summary

• 5 Indirect Tax Engines and Add-Ons
• 5.1 SAP Condition Logic
• 5.2 Add-Ons
• 5.3 Tax Service with SAP
• 5.4 External Tax Engines
• 5.5 Decision Support for Vendor Selection
• 5.6 Summary

• 6 Custom Coding for Indirect Taxes
• 6.1 ABAP Basics for Indirect Tax
• 6.1.1 User Exits, Customer Exits, and Business Add-Ins
• 6.1.2 Objects
• 6.1.3 Includes, Functions, Subroutines, and Programs
• 6.1.4 ABAP Statements
• 6.2 User Exits for Tax Determination in Sales
• 6.2.1 Sales Orders
• 6.2.2 Invoices
• 6.2.3 Additional Enhancements
• 6.3 Customer Exits for Tax Determination in Purchasing
• 6.3.1 Identifying Customer Exits
• 6.3.2 EXIT_SAPLMEKO_001
• 6.3.3 EXIT_SAPLMEKO_002
• 6.3.4 Additional Enhancements
• 6.4 Summary

• 7 Direct Taxes in SAP S/4HANA
• 7.1 Direct Tax Basics
• 7.1.1 End-to-End Process for Direct Taxes
• 7.1.2 Direct Tax Organizational Structures and Master Data
• 7.2 Organizational Structures
• 7.2.1 Ledger
• 7.2.2 Company Code
• 7.2.3 Chart of Accounts
• 7.2.4 Withholding Tax
• 7.3 Master Data
• 7.3.1 Business Partner
• 7.3.2 General Ledger Account
• 7.3.3 Asset
• 7.4 Tax Tagging
• 7.5 Direct Tax Data Analytics and Monitoring
• 7.5.1 SAP Tax Compliance
• 7.5.2 Embedded Analytics
• 7.5.3 Comparative Review
• 7.6 Direct Tax Filing and Reporting
• 7.6.1 SAP Profitability and Performance Management
• 7.6.2 SAP Document and Reporting Compliance
• 7.7 Direct Tax Planning with SAP Analytics Cloud
• 7.7.1 Direct Tax Planning Scenarios
• 7.7.2 Map Fiscal Application Scenarios
• 7.7.3 Implement Tax Scenarios
• 7.8 Summary

• 8 Managing Transfer Prices in SAP S/4HANA
• 8.1 Operational Transfer Pricing
• 8.1.1 Tax Transfer Prices
• 8.1.2 Management Transfer Prices
• 8.1.3 Operational Transfer Prices
• 8.1.4 Transfer Pricing Process
• 8.1.5 Challenges and Requirements
• 8.2 Transfer Price Calculation
• 8.2.1 Cost-Plus Method in SAP S/4HANA
• 8.2.2 Resale-Minus Method in SAP S/4HANA
• 8.2.3 SAP Profitability and Performance Management
• 8.3 Transfer Price Determination
• 8.4 Transfer Price Monitoring and Adjustments
• 8.4.1 Extend Universal Journal
• 8.4.2 Derivation and Validation
• 8.4.3 Indirect Cost Allocation Limitations
• 8.4.4 SAP Profitability and Performance Management
• 8.5 Transfer Price Reporting and Simulation
• 8.6 Transfer Price Testing and Compliance
• 8.6.1 Transaction Matrix
• 8.6.2 Country-by-Country Reporting
• 8.7 Summary

• 9 Tax Reporting in SAP S/4HANA
• 9.1 Worldwide Tax Reporting Requirements
• 9.1.1 The Five Fingers of Tax Administration
• 9.1.2 Maturity of Tax Reporting Requirements
• 9.1.3 Tax Record Evidence Requirements
• 9.1.4 Global Tax Reporting Compliance Models
• 9.2 Standardized Tax Reporting in SAP
• 9.2.1 Standard Report for Value-Added Tax Returns
• 9.2.2 Standard Reports for EC Sales List
• 9.3 SAP Document and Reporting Compliance for SAP S/4HANA
• 9.3.1 Setting Up Compliance Reporting
• 9.3.2 Setting Up EC Sales Reporting
• 9.3.3 Electronic Document Processing
• 9.4 Summary

• 10 Tax Monitoring in SAP S/4HANA
• 10.1 Why Monitor Tax?
• 10.1.1 Compliance Risks
• 10.1.2 Efficiency Improvements
• 10.1.3 Cash Flow Optimization
• 10.2 Tax Monitoring Requirements
• 10.3 Tax Control Framework
• 10.4 SAP Solutions for Indirect Tax Monitoring
• 10.4.1 SAP S/4HANA Embedded Analytics
• 10.4.2 SAP Analytics Cloud
• 10.4.3 SAP BW/4HANA
• 10.4.4 SAP Tax Compliance
• 10.5 Monitoring with SAP Tax Compliance
• 10.6 Summary

• Appendices
• A Europe
• A.1 Intrastat Report
• A.2 EC Sales and Purchase List
• A.3 Standard Audit File for Tax
• B India
• B.1 Tax Determination
• B.2 Stock Transfers
• B.3 Multiple Tax IDs
• B.4 Official Document Numbering in Sales and Distribution
• C North America
• C.1 Jurisdiction Codes
• C.2 Tax Codes
• C.3 Tax Types
• D The Authors

• 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.