1091606 - SAP Tax Audit (EN) V1

SAP Tax AuditAutomated Data Analysisfor Tax on Sales / Purchases

Peter SchiwekSolution Management Financials, SAP AG

[email protected] by 04.08.2008

mailto:[email protected]

© SAP 2008 / SAP TAX Audit /Page 2

Automated Data Analysisfor Tax on Sales / Purchases

An Online Solution

for

Tax Specialists, Financial Specialists,Bookkeepers and Internal Auditors

in companies,

and forTax Advisers and External Auditors



OverviewAll tax-relevant document data

is provided online in your SAP system.

18 different views for the datasetmake even large volumes of data manageable.



CheckThe system checks whether data entered in your accounting system

has been considered correctly for taxes on sales or purchases.

The system indicates possible anomalies(early warning indicator).

Using the tax-relevant accounting document,you have access to all data of the business process.



Internal Control System

The generated reporting viewsare ideally suited for

documenting the controlsyou have executed

as part of theInternal Control System.



BenefitErrors are identified already before the advance

return or return for tax on sales/purchasesis created, and can be corrected.

SecurityThis analysis software gives you maximum security

(risk reduction) in the run-up to a digital(government) tax audit.



FlexibilityIn addition to the standardized views, you can defineand continuously improve company-specific views.

This makes the data analysiswith SAP Tax Audit

a continuous process.



CompatibilityYou can use an export function to transfer the

tax-relevant data to your PC.

The SAP AIS data format ensuresthat further processing with the

classic revision toolsACL or IDEA occurs without problems.



Standard functionSAP Tax Audit is a standard function ofSAP Audit Information System ( A I S ).

SAP developed the online solutiontogether with specialistsfrom the tax department.



Basic characteristicSAP Tax Audit is an analysis tool.

SAP Tax Audit is not a documentation toolin terms of the principles of

proper computerbased accounting systems.

It also makes no claim to a reconciliationcapability to standard reports for the

taxes on sales/purchases (RFUMSV..).



SAP Note / DocumentationFor information about the current development status,

see SAP Note 1091606.

The features of SAP Tax Audit are described in apresentation and in a handbook (German and English).

The note 1091606 contains both documentationsas an attachment.



Advance implementationFor each SAP release as of 4.6,

you have the option to implementthe German-language version of SAP Tax Audit

as an advance implementation.

Interested customers can [email protected]

mailto:[email protected]



Head startOn the market, some software producers have

already attended to this subject, and offer offlinesolutions that are subject to charge.

SAP Tax Audit offers you more than just being on thesame level with the (government tax) auditor.

With SAP Tax Audit, you are one step ahead of theauditor.


SAP Tax Audit1 basic list (Journal)and18 summarized views

DifferenceDocument Date and

Posting Date

Invoices PostedSeveral Times

Posting Volumeper Country/ Tax Code

No.of Tax Codesper Customer

/ Vendor

Posting Volumeper G/L Account

/ Tax Code Posting Volumeper Tax Code/ G/L Account

Posting Volumeper Ref.Trans.

/ Tax Code

Posting Volumeper Doc. Type

/ Tax Code

Posting Volumeper Account Type

/ Tax Code

TopPosting Volume

(Tax)

Tax Adjustmentwith Differences

Posted Tax perG/L Tax Account

Basic List


Result Display

Selection Screen

You can influence the default selection conditions for- Data selection- Program controlIn order to tailor your datasets and the program flowto meet your needs.

Results Display

You can access lists directly from the list overview.

Posted Tax per Tax G/L Account

Among other things, this view shows incorrect postingsto tax accounts, as well as unusual tax rates..

Tax Recalculation with Differences

It allows you to see inconsistenciesin document entry, for instance.

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Result Display

Top Posting Volume

Selects the documents with the highest tax volumes.Allows you to check if the material and legalrequirements have been met according to applicabletax laws.

Posting Volume per Act Type / Tx

These different views allowdiscrepancies to be identified quickly.

Posting Volume per Doc. Type / Tx


Posting Volume per Ref.Trans. / Tx


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Result Display

Posting Volume per Tx / G/L Account

Listing tax on sales/purchases and input tax byaccount makes it immediately evident if expense wasposted with output tax.At the same time, it allows you to see if expense wasposted without input tax.

Posting Volume per G/L Account / Tx

Listing tax on sales/purchases and input tax by accountmakes it immediately evident if expense was postedwith output tax.At the same time, it allows you to see if expense wasposted without input tax.

No. of Tx (>= x) per Customer/Vendor

Makes it possible to have a standard check to see ifthe correct tax code was used for vendors andcustomers.

Posting Volume Per Country / Tax Code

This statistic makes it easier to identify transactions forwhich invoices without tax on sales / purchases wereissued although invoices for this supplier / customerusually contain tax on sales/purchases.

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Result Display

Multiple Posting

Helps you to identify incoming or outgoing invoicesthat were entered more than once.Can also make you aware of overpayments of tax onsales/purchases, or input tax that was applied withoutjustification.

Difference Between Doc. and Pstng Date

Helps you to identify tax on sales/purchases or input taxthat was recognized too early or too late.

Number of Transactions per Vendor

Each document causes administration costs. The listof these costs can be used to reduce these costs.

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Basic List

The basic list (GL) contains all line items that weredetermined with the selection.The list is prepared like a journal.

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Functions

Drill Down

By double-clicking thedocument number, you can drill down to the documentdisplay and from there to the document analysis.

Collapse - Expand

Each statistic can be compressed. You can use this togain a quicker overview, as required.

Output of a Graphic

The output of a graphic witha maximum of 32 valuesis prepared for each statistic / ranking list.

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Search Function

You can access a single document in the basic listfrom the critical dataset determined in a statistic orranking list.

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Functions

SAP List Viewer (ALV)

You can switch to the ALV list display and the ALVfunctions from within the basic list as well as fromwithin any statistic or ranking list.

Running the Program as a Batch Job

The expected datavolume can mean thatit is necessary to runthe program when thesystem workload islow (such asovernight).

Data Export to Microsoft Excel

The selecteddataset can be exported from the basic list as well asfrom any statistic or ranking list to Microsoft Excel.

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Data Export: SAP AIS Data Format

The selecteddataset can beexported from thebasic list as wellas from anystatistic or rankinglist to your PC

and then toACL or IDEA

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Benefits (As Compared to Other Solutions)

Reconciliation is only possible within the selected data (therefore itis no longer comprehensive, for instance, reconciliation of generalledger with subsidiary ledgers).

The data being reported on belongs to Accounting, andtherefore is subject to the reconciliation and controlfunctions of closing.

Reconciliation

Dataset is duplicated numerous times in offline area:- Export file (+100 %), - tool format (+100 %)

Temporary at time of reporting.Data Storage

Constant support of IT department required- Configuration of application, - data retrieval

No IT knowledge required.PersonnelRequirements

Single-user system.Installation and maintenance required for each workplace.Users need to familiarize themselves with a "foreign environment."

Existing, familiar ERP system.Central maintenance, availability in entire network.

HardwareRequirements

Offline processing.It is not possible to refine the selection beyond the existing,selected data.

Online processing.Use of existing standards, such as ALV technology.Possible to jump from compressed date to individualdocuments, with access to corresponding data of the entirebusiness process. Linked to unstructured data (originaldocuments).

Reporting

Using extensive Customizing, the attempt is made to reproduce theSAP data logic and processing logic. Additional maintenance isrequired for any SAP functions that change.

The processing logic is based in SAP standard tools(query). In part, SAP function modules are used. The rangeof functions can be extended with relatively little difficulty.

Data Formatting

Data leaves the SAP system. No longer possible to provideauthorization protection at the PC level.

Data is located in original system.A user can also work with SAP Tax Audit using his or herexisting authorizations.

Data Security

Data retrieval requires using import files. The scope and quality ofthe data is the responsibility of the user.

Selection using logical databases. The basis for working isthe current SAP file definition and data definition (DDIC).

Data Retrieval

Other SolutionsSAP Tax Audit Compared toCriteria




Reconciliation










Reporting



Data Formatting


Data is located in original system.A user can also work with SAP Tax Auditusing his or herexisting authorizations.

Data Security



Data Retrieval



Data retrieval requiresusing import files. Thescope and quality of thedata is the responsibility ofthe user.

Selection using logicaldatabases. The basis forworking is the current SAPfile definition and datadefinition (DDIC).

Data Retrieval

Other SolutionsSAP Tax AuditCompared to

Criteria




Reconciliation










Reporting



Data Formatting



Data Security



Data Retrieval



Dataset is duplicatednumerous timesin offline area:

- Export file (+100 %)

- Tool format (+100 %)

Temporary at time ofreporting.

Data Storage


Criteria




Reconciliation










Reporting



Data Formatting



Data Security



Data Retrieval



Data leaves the SAPsystem.

No longer possible toprovide authorizationprotection at the PC level.

Data is located in originalsystem.A user can also work withSAP Tax Auditusing his or her existingauthorizations.

Data Security


Criteria




Reconciliation










Reporting



Data Formatting



Data Security



Data Retrieval



Reconciliation is onlypossible within the selecteddata(therefore it is no longercomprehensive, forinstance, reconciliation ofgeneral ledger withsubsidiary ledgers).

The data being reported onbelongs to Accounting, andtherefore is subject to thereconciliation and controlfunctions of closing.

Reconciliation


Criteria




Reconciliation










Reporting



Data Formatting



Data Security



Data Retrieval



Using extensiveCustomizing, the attempt ismade to reproduce theSAP data logic andprocessing logic.Additional maintenance isrequired for any SAPfunctions that change.

The processing logic isbased in SAP standardtools (query). In part, SAPfunction modules are used.

The range of functions canbe extended with relativelylittle difficulty.

Data Formatting


Criteria




Reconciliation










Reporting



Data Formatting



Data Security



Data Retrieval



Offline processing.It is not possible to refinethe selection beyond theexisting, selected data.

Online processing.Use of existing standards,such as ALV technology.Possible to jump tocorresponding data of theentire business process.Linked to unstructured data(original documents).

Reporting


Criteria




Reconciliation










Reporting



Data Formatting



Data Security



Data Retrieval



Single-user system.

Installation andmaintenance required foreach workplace.Users need to familiarizethemselves with a "foreignenvironment."

Existing, familiar ERPsystem.

Central maintenance,availability in entirenetwork.



Criteria




Reconciliation










Reporting



Data Formatting



Data Security



Data Retrieval



Constant support of ITdepartment required

- Configuration of application- data retrieval

No IT knowledge required.Personnel Requirements


Criteria




Reconciliation










Reporting



Data Formatting



Data Security



Data Retrieval



Requires additionalpayment on your part

SAP Standard functionPricing


Criteria


Thank you!


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Documents

1091606 - SAP Tax Audit (EN) V1