SAP Taxation – ERPmenu

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Taxation

We specialize in handling of Taxation is SAP. Whether it be through standard SAP functionality only or using a Tax Engine like Vertex or OneSource connected to SAP, setting up taxation can be complex. Choosing the proper set up will result in optimal use of SAP and Tax Engine allowing for easy maintenance of tax drivers like rates, jurisdictions, material master, etc.

SAP or providers of Tax Engines like to claim that setting up taxation is plug and play, however that is rarely the case. Taxation laws are set, but how to comply with them for your particular business can be specific. A proper assessment and blueprint is needed to assure your SAP setup and Tax Engine configuration support your company and allow for you to stay in compliance. Topics like feeder systems to SAP, master data handling and reporting are critical to be reviewed prior to system setup to assure taxation is correct and maintainable.

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US Sales and Use Tax

Sales and Use tax in the United States is complex and driven by a variety of factors. The US knows over 10,000 tax jurisdictions and state specific rules like Max Tax. Transaction characteristics like Ship from, Ship to, the product or service you sell, whether a customer has issued an exemption certificate or not are some of the drivers for the sales tax you need to collect. Use tax is driven again by a different set of criteria.

Before you set up SAP to support this process you have to go through a assessment covering your business scenarios and option for SAP to support the specific needs your company has. At ERPmenu we have years of experience implementing SAP taxation in the US using SAP only or adding a Tax Engine like OneSource or Vertex.

Mexico Tax/CFDI

Mexico has some of the most advanced and strict tax processing regulations. All invoices issued must be verified by an authorized certification provider (PAC) who then must report the invoice to the Mexican Government (SAT) within 72 hours of its creation for stamping. The requirements are covered under CFDI and updates come regularly. The current version of CFDI issued by the SAT is 3.3.
Depending on what release of SAP you are at and what PAC you work with or are looking to work, the integration to your PAC will require a technical setup to support sending electronic documents.

IDOCs, E-Documents or flat files are all communication methods SAP can support. In case you are already up and running with CFDI or are new to doing business in Mexico ERPmenu can assist you with technical SAP integration, PAC selection, process review or support.

Canadian Taxes

Canada has a hybrid tax system of recoverable tax (GST), non-recoverable tax like PST or QST or Harmonized Sales Tax (HST). SAP standard is well equipped to handle all these taxes without a external Tax Engine, but using a Tax Engine in combination with SAP could be preferred in a particular cases too. At ERPmenu we have years of experience implementing SAP taxation for Canada with and without Tax Engine.

European VAT

VAT processing is well supported by SAP. VAT in EUR countries and non-EUR countries like Switzerland or Sweden can all process using standard SAP.
At ERPmenu we gladly support you setting up or rolling out VAT to any of the European countries you are looking to operate.

OneSource

At ERPmenu we have experience integrating SAP with the OneSource Indirect Tax Engine. Thomson Reuters is the provider of this application and we work with them helping companies connect their SAP system to OneSource to support tax calculation in the US and Canada.
We can assist in sending additional attributes over to OneSource and defining trans-editor rules in OneSource to support your business specific requirements.

Vertex

At ERPmenu we have experience integrating SAP with the Vertex Tax Engine. Vertex is the provider of this tax application and we help companies connect their SAP system to Vertex on-premise or cloud solution. Vertex to support tax calculation in the US and Canada.
We have experience with the Accelerator Tax Code Default & Data Mapping solution and setting up special rules in Vertex to support business specific tax scenarios.

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