Responding to New Regulations and

Achieving Efficient Compliance with

SAP Document and Reporting

Compliance

Public
Ashwini T G, SAP
Feb 22nd, 2024

PUBLIC
Agenda

The Business Compliance Challenge

Go global confidently with localized SAP
solutions
Tax Regulatory Landscape and Strategy
E-invoicing and statutory reporting with SAP
Document and Reporting Compliance
Wrap-up and Engage with Us

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 The Business
Tax Regulatory
Compliance
Landscape Challenge
and Strategy

3
Evolving regulations require constant attention
Canada UK Poland / Romania
Indirect Taxes, Withholding Tax Making Tax Digital SAF-T & e-Invoicing

United States China

US FDI filing Golden Tax

Mexico Japan
CFDI Consumption Tax

Brazil Malaysia
SPED & NF-e e-Invoicing

France Switzerland India GST

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eBill ELM5.0 4
e-Invoicing
Operating global businesses
Regulatory compliance is essential
Tax calculation
Depreciation Country chart of accounts
Supplier invoices
Sales Order and Contract
Tax Management
Management
Withholding tax
Tax reporting
Asset accounting
Supplier Employment tax E-statements
certification Accounts payables and receivable
Electronic Invoicing
Accounting
Payment file formats
Procure to pay
Billing Payments and Bank
Communication
Identification number
Taxation of services abroad
Payroll Processing Company data
Commodity codes
Audit files Goods and Services Tax
Employee personal Business partners
Down payments processing information
Travel allowance calculation Statutory Reports
Address validation VAT
Digital Tax Compliance
Sustainability
Financial statements
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Go global confidently
Tax Regulatory
with localized
Landscape SAP
solutions
and Strategy

6
Localization Model

SAP’s Localization Model

SAP Standard Localization Localization as a Self-Service

Functional Localization: Create additional local versions beyond those delivered by SAP
Development of Localization to meet country specific regulatory business
requirements Examples: SAP S/4HANA Cloud Public Edition for Latvia, Vietnam
Examples: Tax Management, Statutory Reporting, E-Invoicing
Extend SAP delivered local versions using Localization extensibility
capabilities
Content Localization:
Predefined business configuration
Examples: Extend tax procedures, define customer specific asset
Examples: Local chart of accounts, asset depreciation keys depreciation logic, extend statutory reporting

Localization covers:
• New capabilities: local versions of SAP solutions are created or enhanced
• Responses to Legal Changes: regulatory changes that affect SAP solutions are developed and delivered to SAP customers with a valid subscription or maintenance contract.
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Address Your Regulatory Requirements Across Business Processes

ERP Statutory Reporting and E- Spend Management Human Experience Sustainability

Document Management Management
• Accounting • Exchange of electronic • Digital Tax Compliance • Core Human • Plastic Tax
• Tax management documents • Manage travel to Resources declarations
with authorities reimburse processes • Time management • Extended Producer
• Payments and bank and business partners
communication • Expense management • Payroll Responsibility
• Tax reporting declarations
• Customer financial • Tax and Audit • Benefits
management / • Statutory reporting • NGO sustainability
• E-invoicing • Onboarding reports
Convergent Invoicing • Audits
• Treasury management • Global compliance
monitoring

Localized business processes and capabilities | Extensibility | Announcement of Legal Changes

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SAP Offers a Compelling Portfolio of Local Versions Across Products

1041
Total Local Versions
SAP S/4HANA Cloud SAP SuccessFactors SAP DRC for SAP S/4HANA SAP S/4HANA Cloud Public
59 Public Edition 104 Employee Central 31 SAP Concur Expense 53 Cloud Public Edition 17 Edition, BRIM
SAP S/4HANA Cloud SAP SuccessFactors SAP Business Network SAP DRC for SAP S/4HANA SAP S/4HANA Cloud Private
63 Private Edition 55 Employee Central Payroll 41 Commerce Automation 58 Cloud Private Edition 22 Edition, BRIM
SAP Responsible Design
64 SAP S/4HANA 72 SAP HCM for SAP S/4HANA 7 and Production 58 SAP DRC for SAP S/4HANA 22 SAP S/4HANA for BRIM

SAP ERP Central SAP HCM for SAP S/4HANA

65 Component 72 Cloud Private Edition Legend:
BRIM = Billing and Revenue Innovation Management
SAP ERP Human Capital DRC = Document and Reporting Compliance
72 SAP Business ByDesign 106 Management HCM = Human Capital Management

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Regulatory Relief as a Service

Deliver software updates

to enable compliance with
Notify of relevant regulatory legal changes
changes
Collaborate with local legislatures
and monitor for regulatory changes

1157 Regulatory changes delivered in 2023

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Stay Up-to-Date with Regulatory Change Manager
Plan for regulatory changes with actionable information,
impacting your solutions and planned timelines
>1,100
regulatory changes
delivered in 2023
SAP monitors and provides …helping customers be compliant and run (across all SAP solutions)

regulatory changes for you… their day-to-day business without disruption.

SAP monitors Define your product and country interests

regulatory changes and and receive automated impact notifications.
new regulations (local teams).
Review regulatory changes, gain insights into
solutions and timelines, and plan implementation.
+500
SAP communicates regulations
regulatory changes via and scenarios
Regulatory Change Manager (new).

SAP develops the solution.

Learn more
+55
countries
View documentation and video of
Regulatory Change Manager, visit the
URL, or scan the QR code to learn more.

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Tax
TaxRegulatory
Regulatory
Landscape
Landscape
and
andStrategy
Strategy

12
 In the past

• Optional

• Digitalize business processes

• Increase efficiency

13
CONFIDENTIAL - SAP AND ANALYST ONLY
 In the past
Today
• Optional
• Mandatory legal obligation
• Digitalize business processes
• Issue compliant invoices
• Increase efficiency
• Minimize risk of non-compliance

7 out of 10 top GDP countries have or are

planning to introduce mandatory e-invoices.

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CONFIDENTIAL - SAP AND ANALYST ONLY
 Legal mandates require more and more data,
in real time as a prerequisite for the business to run.

55+ countries have introduced mandatory e-invoicing and e-accounting as of 2023.

E-accounting / E-verify /
Online form E-audit
E-reporting Draft Returns

Paper-based return E-file E-invoices E-clearance +

CONFIDENTIAL - SAP AND ANALYST ONLY
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What Latest Compliance Trends Mean for Businesses
Digitalization of authorities are the perfect opportunity to automate compliance processes

Challenges Opportunities

Standardize and automate business processes with

Fragmented and costly compliance
• Highly customized country-specific processes and solutions one solution worldwide, increasing agility and
•
•
Lack of visibility on deadlines and compliance status
Risk of business disruptions, especially in countries with e-invoices
reducing ongoing costs.

Lengthy Legal Changes Leverage your business transformation to adopt best

• Failing to comply in-time with new regulations practices so you can seamlessly leverage legal
• Inefficient implementations
• Unable to support local solutions ongoing changes and reduce the risk of noncompliance.

Lack of Transparency Centralize compliance processes from electronic

• No link between transactions and external reporting
• Highly manual adjustments invoices to continuous submissions and statutory
• Offline calculations with no source of truth reporting to enable traceability to business transactions.

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Enable Compliance with SAP
Drive smoother compliance, from electronic invoices to statutory reporting Use SAP solutions for
electronic invoices and
statutory reporting to…

ü Increase transparency

ü Automate tax
operations
Audit
Exchange Fulfil
Check Perform tax ü Comply with existing
Exchange Prepare and audits
Verify consistency and upcoming legal
electronic submit statutory
between SAP mandates
documents and reports
S/4HANA Cloud /
invoices with
SAP S/4HANA and
authorities
authorities

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SAP Document and
Reporting Compliance

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SAP Document and Reporting Compliance

Comply efficiently with electronic invoices and statutory reporting worldwide.

SAP Document and Reporting Compliance enables organizations to stay on top of continuously evolving e-invoicing
and statutory reporting mandates driven by digitalization of authorities, while standardizing processes worldwide.
You can leverage a single cloud offering integrated across business processes and solutions to enable the submission /
exchange of documents and reports to tax authorities.

One solution to:

• Comply. Manage e-invoicing, real-time reporting
and statutory reporting worldwide.

• Automate. Transform, digitalize and standardize

the end-to-end process across countries
worldwide, increasing automation and scalability.

• Minimize risk. Enable transparency, ensure

consistency between business documents and
statutory reports and automate the reconciliation
with tax authorities’ platforms.

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One Automated Compliance Solution Across SAP Solutions Worldwide

Business Solutions SAP Business Tax Authorities

Technology Platform and Agencies
SAP S/4HANA Cloud
SAP S/4HANA SAP Document and Reporting Compliance Business Partners
SAP ERP
(incl. SAP Billing and Innovation Revenue Management)

Compliance Compliance
SAP Concur Invoice validation
solutions Cockpit Integration
Integration3 Invoice registration at
Natively embedded in the SAP Document and Reporting tax authority systems
business process Compliance, cloud edition1
SAP Business Exchange through
Legal formats Pre-delivered packages
Network (SAP Integration Suite)2 external networks
Preparation & corrections

SAP Ariba Central

Invoice Management Partner extensions

SAP Human Capital

Management for SAP S/4HANA

1. Latest public cloud service (no dependencies on the SAP BTP environment of the customer)
2. Customer-managed tenant (1 and 2 are not interchangeable options for the same country, more details here).
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Simplify and Automate the End-to-End Compliance Process

Customer invoice
creation

Electronic invoices Continuous checks for Statutory reports

creation and consistency with authority’s preparation and
submission portals submission
End-to-end
compliance with
Error monitoring Monitoring of legal audit trail
and handling deadlines

Electronic invoices
Activity checklist with controls
reception and integration and adjustments
for AP postings
Data analysis, review and
approval
Automated emails to business
Supplier invoice partners (e.g. WHT)

No data replication preventing the need of unnecessary manual reconciliations!

© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Real-time Continuous (not available with SAP ERP) Periodic (not available with SAP ERP) 21
Scale Worldwide with Ready-to-Use Scenarios

500+ reports and scenarios

enabled in 55+ countries 162 reports and scenarios
in the future direction*

Compliance Obligations:

E-document & E-accounting & Periodic &

E-Invoicing Continuous Statutory
Scenarios Submissions Reporting

Learn more
Full list of supported compliance tasks (online documentation) Regions
• SAP S/4HANA Cloud Public Edition EMEA
• SAP S/4HANA Cloud Private Edition & SAP S/4HANA APJ
• SAP S/4HANA for Central Finance Americas
• SAP ERP** MENA
Generic Reports
*This represents future topic, but subject to change without any prior notification.
© 2022 SAP SE**Statutory
or an SAP affiliate
reportingcompany. All rights reserved.
requirements ǀ PUBLIC via ABAP reports.
mainly supported 22
 Early adoption only
Automate S&U Tax Reporting in US through Partners
ü Seamless integration with partner
solutions to enable Sales and Use
(S&U) tax reporting for United
States: one solution, one process
worldwide

ü Central monitoring of S&U tax

deadlines by authority, within one
dashboard standardized
worldwide

ü Seamless replication of
transactional data

ü Central review and and storage of

S&U tax reports (users don’t leave
SAP S/4HANA Cloud)

ü Seamless download of ready-to-

submit files
Public Available only with SAP S/4HANA Cloud Public Edition as of 2402. - preview 23
Stay Up-to-Date with Regulatory Change Manager
Plan for regulatory changes with actionable information,
impacting your solutions and planned timelines
>1,100
regulatory changes
delivered in 2023
SAP monitors and provides …helping customers be compliant and run their (across all SAP solutions)

regulatory changes for you… day-to-day business without disruption.

SAP monitors Define your product and country interests

regulatory changes and and receive automated impact notifications.
new regulations (local teams).
Review regulatory changes, gain insights into
solutions and timelines, and plan implementation.
+500
SAP communicates regulations
regulatory changes via and scenarios
Regulatory Change Manager (new).

SAP develops the solution.

Learn more
+55
countries
View documentation and video of
Regulatory Change Manager, visit the
URL, or scan the QR code to learn more.

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Localization-as-a-Self-Service to Comply
with More Countries and Scenarios
The extensibility framework enables to scale to additional countries and
scenarios, even if not available in standard content.
As a result, you can truly achieve one solution and one process
standardized worldwide.

Create your own scenario in 4 simple steps:

1 Create or reuse

2 Configure 8 partner packages

Invoicing in non-standard countries and
regions or industry-specific requirements:
3 Adapt integration flows • Argentina
• Ecuador
4 Activate and use • Panama
• Spain – TicketBai
• Spain – SII call-off stock
• Brazil (inbound NFSe)
• Vietnam
• Uruguay
Public
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 SAP Document and Reporting Compliance
Product Direction

1 New legal mandates

2 One single channel for submissions to Authorities for

electronic invoices and statutory reporting, across solutions

3 Automated reconciliation between the system of record

(SAP S/4HANA) and tax authorities

4 Further automation to manage electronic documents

and statutory reporting

5 Accelerated corrections with GenAI

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Product Roadmap

New Legal Mandates

Public
Additional reports planned to strengthen localization in multiple countries. *Delivered for SAP S/4HANA Cloud in H2 2023. Planned for SAP S/4HANA H2 2024. 27
This represents future topic, but subject to change without any prior notification.
Customer
Stories
SAP Document and Reporting Compliance – Customer Story
A US Based Chemical Manufacturer with multiple subsidiaries abroad
Before: Challenges “We saw SAP DRC as an opportunity to
§ Increase in mandatory e-invoicing legislation worldwide optimize operational performance and
§ Multiple disparate solutions for document compliance management in different countries resource management. The solution exceeds
§ Use of manual processes, third-party services, and custom software created in-house expectations by streamlining our
response to an increasing number of
Why SAP regulations that differ by country.”
§ Standardized framework offered by the SAP Document & Reporting Compliance solution
supporting operations in multiple countries with a wide array of compliance management
capabilities through a single solution
§ Ability to create legal XML files that are directly based on transactional system data from SAP
solutions 30% 10%
§ Single communication layer with content that users can submit directly to authorities or local Faster document Reduction in the
partners when required processing for the invoice processing
§ Regular updates on new legal mandates and mandate changes accounts payable cycle
department

After: Value-Driven Results

§ Improved control through the ability to communicate information directly to authorities,
without relying on third parties 24,000
§ Reduced compliance risk and significant time and cost savings as a result of more- Low-value activities
efficient management of global document compliance processes eliminated
§ Streamlined IT landscape, with document compliance activities supported by a single
solution
§ Improved user experience, with country-specific scenarios managed in an e-cockpit within
§ SAP Document and Reporting Compliance
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 Customer Stories
for all customers in all industries

Siemens: How Can Automated Document Processing Reduce Compliance Costs Across the Globe?
Siemens Find out how SAP Document and Reporting Compliance simplifies the management of Siemens' international tax obligations, making
compliance much more straightforward.

Grundfos' Simplification of Legal Business Requirements Globally

Discover how Grundfos, comprising more than 100 business entities, harnessed SAP Document and Reporting Compliance to meet
e-invoicing and statutory reporting mandates.

Evonik: Meeting Local Compliance Regulations with Innovative Technology and Partner Expertise
Explore how Evonik, a specialty chemicals company, achieves compliance with localized billing and taxation requirements by
utilizing a document and reporting compliance solution, enabling adherence to Spain's TicketBAI invoice reporting model.

Akzo Nobel: Creating a Robust System Architecture to Keep Pace with Product Innovation
Find out how Akzo Nobel streamlines its intricate invoice billing process using a cloud-based solution

SEERA: Powering a Portfolio of Businesses on a Unified, Scalable Electronic Invoicing Framework

Discover how Seera, a prominent travel industry leader in Saudi Arabia, is enhancing their invoicing procedures by streamlining and
automating them. This initiative aims to facilitate secure, highly efficient, and compliant e-invoicing practices.

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 Powering Compliance Worldwide
For all customers in all industries >70%
Acceleration in the end-to-end order-to-
cash process with simplified invoice
Customers Customer sentiment: validation and submission.

§ “SAP Document and Reporting Compliance makes managing international tax requirements much
easier and will be implemented around the globe to meet growing compliance requirements.”
Andrea Spandau, Head of Digital Tax Ecosystem, Siemens AG
The Facts
§ “SAP Document and Reporting Compliance allows us to have a global, single source of truth, and
we have real-time decision-making and a Team that can operate tax processes across the world.”
Olivier Laffaille, International Tax Digitalization Director, L’Oreal
500+ regulations
across 55+ countries

Stevie Award Most comprehensive solution: 3.100+

customers globally
§ “Excellent product innovation and awesome feature packed programming offering complete
freedom and seamless accurate operation using real time information and data. Truly global
product.” 25+ years
localization experience
§ “SAP Document and Reporting Compliance must be a robust and tested solution like any other
offerings from SAP. With usage across 56 countries and a product offering for governance and
statutory compliance catering to different needs is a big achievement. Absolutely, SAP is a leader
in market for enterprise solutions. No second thought!” 80+ legal changes
in 2023
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Wrap-up and
Tax Regulatory
invitation
Landscape for dialogue
and Strategy

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Learn More About SAP Document and Reporting Compliance

Overview Additional Resources

Legal Mandates Coverage

Overview of all scenarios covered
SAP S/4HANA Cloud Public Edition à
SAP S/4HANA Cloud Private Edition
and SAP S/4HANA à
SAP ERP à
SAP Document and Reporting
Compliance, cloud edition à
Overview: Website:
Drive smoother compliance, from electronic SAP Document and Reporting Compliance
documents to statutory reporting. Visit website à SAP Learning Hub:
Watch videos à Learning sessions available in English.
SAP Community à
S4F08_EN_Col23 à
E-learning for statutory reporting à

Product Information
Replay Yearly Summits:
Read solution brief document à View product roadmap à Explore a range of sessions, including
customers and external speakers!
Overview blog 2023 innovations à Customer Influence Portal à
2023 (Sept 26 and 27) à
Regulatory Change Manager à PartnerEdge Page à 2022 (Sept 20 and 21) à
2021 (Sept 14 and 15) à
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How to Use SAP Help Overview to Find Out Compliance Tasks Supported
Links:
• SAP S/4HANA Cloud, public Cloud Services for submission
edition Highlights:
• SAP S/4HANA Cloud, private • SAP Document and Reporting
edition and SAP S/4HANA Compliance, cloud edition
• Web service using SAP
Download list of scenarios Integration Suite à PaaS
supported • All the rest are SaaS, service
name equal to SKU

Filter by country to find

the scenarios supported
Sunset legacy ABAP reports
replaced by the scenario

Navigation to configurations
to enable the scenario
Leading note for technical
implementation (e.g. TCIs)

Detailed description of the

legal scenario covered

Former ABAP reports with

equivalent function (still supported
if not listed also as Predecessor)

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Learn More and Engage with Us

Understand the value Engage with other customers, Reach out to us via the ‘ask a
proposition of localization partners and SAP experts on question’ option, we are happy to
capabilities localization related topics hear from you
SAP Localization Capabilities Localization | SAP Community Ask a Question | SAP Community

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Thank you.
Contact information:

© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to this material.