In our most recent blog post, we delve into the world of indirect tax compliance optimization and discover the transformative potential of SAP DRC technology, offering strategic insights for improving efficiency and compliance in today's evolving digital environment.
Tax Management in SAP
SAP's tax management solutions enable organizations to efficiently manage compliance, reporting and financial processes, including the handling of complex indirect tax processes and obligations.
SAP DRC in a nutshell
SAP Document and Reporting Compliance is a reporting solution that combines the previous SAP Document Compliance and SAP solutions for Advanced Compliance Reporting in a single product in S/4HANA on-premise and cloud editions. It acts as a single hub for processing electronic business documents (including e-invoices), managing real-time and periodic statutory reports for submission to tax authorities as well as working with ad-hoc internal reports that support your organization’s tax compliance processes.
In the ever-evolving landscape of international business, compliance with digital reporting requirements across multiple jurisdictions is paramount. E-invoices and electronic tax returns are becoming mandatory in several countries, and demand is likely to increase in the near future.
Organizations therefore find themselves navigating a complex web of country-specific regulations that mandate the digital transmission of reports to respective tax authorities. These submissions may occur in real time, daily, monthly, quarterly or annually, adhering to the formats as stipulated by law.
The sphere of SAP document and reporting compliance is multifaceted, encompassing various critical areas within the compliance framework. These include Value Added Tax (VAT), withholding tax reports, EC Sales lists, cashflow reports as well as e-invoicing, e-reporting and statutory reporting. While different countries are at various stages in their digitalization journey, this comprehensive approach extends across all regions, aiming to ensure a unified and compliant reporting structure across diverse regulatory landscapes.
SAP DRC process introduction
The introduction of SAP DRC equips businesses with robust tools for document management and reporting, enabling compliance and integrity in financial processes. It eliminates manual reporting, reduces errors and saves time. Additionally, users can create, track and save electronic reports.
SAP DRC: functions and key features
The framework provides the flexibility to support the constantly increasing number of processes required by the different regulators in a consistent way. It provides a set of functionalities that supports the capabilities common to all scenarios, allowing easy integration of country-specific solutions while ensuring standardization in the following areas:
- end-to-end processing of electronic documents with SAP document and reporting compliance
- Consistency checks
- Configuration and security options for key users
- Configuring value mappings and accuracy
- Configuration for communication with external systems and ease of use