ERP Coding

A US company operating a Swiss principal structure within The EU will be upgrading to a newer version of SAP in 2013.

The company was aware that there were errors in its current VAT situation and wanted to understand what errors were caused by incorrect or missing VAT Codes, what errors were caused by incorrect or illogical VAT condition tables and what errors were caused by manual intervention or human error.

The objective was to identify all errors to see which ones could be eliminated prior to the implementation of the new SAP setup.

Accordance interrogated the system to get 12 months’ worth of historic sales data to identify all different sales transactions based on ship from/ship to. We then determined the VAT code that should apply based on our own knowledge and compared this with the VAT code applied by the system, or forced by manual intervention.

The result was an analysis identifying transactions where the tax condition tables gave the wrong result, transactions that were incorrectly set up in the master data to achieve a required result (manual intervention) and transactions where no tax code existed.  We also identified transactions that required either a different flow or required the company to get “foreign” VAT registrations which was not allowed by the internal tax rules.

The company is now working on resolving all identified issues so that minimum errors are taken into the new version of SAP.

To find out more, contact us.

ERP Coding VAT Guide

 

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