Standard data analyses typically require extracting a data dump from SAP, which involves downloading multiple VAT-relevant tables containing transactional data from the SAP environment. However, this process often encounters challenges related to obtaining necessary authorizations, which can impact the efficiency and effectiveness of data analyses. These limitations underscore the need for a more streamlined solution, such as the KGT SAP add-on.
Working with extensive datasets using standard tools can be cumbersome. SAP may frequently interrupt data extraction due to runtime limits, and the large size of SAP reports can hinder the transfer of data files to personal computers. While standard analyses are viable, they require careful consideration of business complexities and specific risks, which can further complicate the process.
In contrast, KGT's SAP add-on integrates seamlessly into your SAP environment, providing immediate access to all VAT-relevant transactional data from legal entities operating on the same SAP platform. This data is stored separately in tables within KGT’s namespace.
This unique feature enables real-time insights into your company's operations, effectively eliminating runtime issues and the need for manual transaction mapping, thus simplifying your data analysis process. With detailed and relevant organizational data readily available, you'll gain a clear understanding of key risk factors, represented with precise figures, thereby reducing the reliance on "informed guessing".
Additionally, auto-generated reports can be produced in various formats based on relevant data. You will be able to generate specific reports for cross-border transactions, intercompany transactions, diverse transaction types, tax reporting countries, dispatch countries, and Sales Organizations/Divisions.
Benefits of the KGT SAP Add-On
The KGT SAP add-on for data analysis is distinguished by its seamless integration within your SAP environment. It provides immediate access to all VAT-relevant transactional data from legal entities operating on the same SAP platform, securely stored within the system. This distinctive capability offers real-time insights into your company's operations, facilitating straightforward data analysis.
With detailed and pertinent data readily available, you can develop a clear understanding of key risk factors represented in concrete numbers, thereby eliminating guesswork. This empowers you to take control of tax data analysis. The 'Continuous Controls Monitoring' tool extends stakeholders' focus beyond indirect tax, enhancing their sense of value and importance to the company’s overall operations.
By utilizing the SAP add-on, your organization is better equipped to maintain control and proactively prepare for future VAT risks. The tool enables both internal resources and external advisors to concentrate on critical issues, ensuring that specific risks remain manageable.
The module is flexible, allowing for the integration of client-specific scripts tailored to meet unique requirements. It has undergone rigorous testing in the SAP environments of peer organizations before launch, playing a crucial role in identifying numerous areas for improvement.
This SAP add-on addresses underlying issues by delivering a comprehensive solution for effectively managing open tickets. As a tax consultancy firm, we can provide recommendations to address root causes and resolve problems using best practices, whether through the implementation of agreed-upon SAP solutions or by supporting your IT department during the implementation process.
Differentiating Factors
The KGT SAP add-on excels in extracting data and automating tax controls, thereby streamlining the control check process while allowing for the incorporation of client-specific controls. It collects tax information for each billing document, considering various factors such as departure and destination countries, customer and material tax classifications, the relevant MWST condition table, and the applicable final tax code. Tax determination is performed based on these criteria following best practices, with results compared against SAP's determinations to highlight any discrepancies.
A key feature is the “full flow” check in SD billing, which provides an overview of VAT codes applied throughout the invoice chain linked to a sales order originating from a local sales office. This functionality is particularly beneficial for analyzing chain transactions among multiple parties and ensuring compliance with local VAT regulations in cases where goods are supplied from European warehouses.
For instance, in intercompany transactions involving partners Party A and Party B, both parties can monitor tax determination results throughout the entire process, including IC outbound (Party A), IC inbound (Party B), and the outbound customer invoice (Party B).
Additionally, the cockpit should display all necessary data for health checks, complete with a ‘check result’ dashboard featuring traffic light indicators.
Data analytics can contribute to improving business performance:
- Cost reduction: by identifying potential cost savings and limiting expenses (for instance, by tracing VAT that was erroneously not deducted)
- Risk analysis: tracing incorrect VAT determination or reporting incorrect returns
- Compliance: by identifying possibilities to improve the quality and efficiency of internal control
The KGT SAP VAT health check is designed to identify areas for improvement in VAT configuration, master data setup, and existing processes. It also suggests some additional control measures that may be necessary within the business’s Tax Control Framework.
Additionally, the SAP VAT health check can highlight potential error-prone areas and provide recommendations for enhancements in future SAP implementations.
The add-on installs seamlessly within SAP and stores data securely in KGT’s namespace, ensuring full compatibility without disrupting your existing setup.
It removes common hurdles in VAT data analysis, such as runtime errors, fragmented datasets, and manual transaction mapping - delivering clean, real-time data for accurate insights.
You’ll gain clear visibility into VAT determination, cross-border and intercompany transactions, and potential compliance gaps - all presented in easy-to-read report.
By automating VAT controls and flagging discrepancies, KGT’s SAP VAT health check helps reduce risks of incorrect VAT reporting and ensures your processes meet regulatory standards.
Yes. Client-specific scripts and controls can be added, making the solution fully adaptable to unique business requirements.
Unlike standard reporting, it provides real-time analysis, tailored automated controls, and end-to-end visibility of VAT flows across invoices, sales orders, and intercompany transactions, including review of the correctness of chain transactions (e.g. 3 or 4 parties in the chain) and EU simplified triangulation.
Both internal teams and external advisors gain value - internal teams get continuous monitoring, while advisors can focus directly on critical VAT issues.
Once implemented in SAP, insights are available immediately, enabling fast identification of risks and opportunities for cost savings.
It helps identify VAT that was incorrectly reported, incorrectly not deducted and flags inefficiencies, allowing organizations to reduce unnecessary costs.