Michael Fuhr is a certified tax advisor with a business informatics background and co-leads the tax technology practice at PricewaterhouseCoopers (PwC) in Germany and PwC Europe. He is partner in the indirect tax practice of PwC in Germany and focuses on the integration of indirect tax requirements in SAP solutions and operational tax control frameworks. Together with his team at PwC, he delivers end-to-end tax technology solutions that enable data-based tax management for multinationals and regional clients. Michael and his colleagues of the Institute for Digitalization in Tax Law (IDSt) support the adoption of the VAT in the Digital Age (ViDA) EU initiative in Germany.

Master key tax reporting and monitoring functionality

... Preface ... 13

... Objective of This Book ... 13

... Readers of This Book ... 14

... Structure of This Book ... 14

... Acknowledgments ... 16

1 ... Introduction to Taxes with SAP S/4HANA ... 17

1.1 ... The Tax Function ... 17

1.2 ... The Tax Operating Model and SAP S/4HANA ... 22

1.3 ... Taxes with SAP S/4HANA ... 30

1.4 ... Getting Started with SAP S/4HANA ... 47

1.5 ... End-to-End Processes ... 55

1.6 ... Summary ... 60

2 ... Indirect and Direct Tax Requirements ... 61

2.1 ... Indirect Tax ... 61

2.2 ... Direct Taxes ... 86

2.3 ... Summary ... 95

3 ... Basic Settings in SAP S/4HANA ... 97

3.1 ... Financial Accounting ... 97

3.2 ... Sales and Distribution and Materials Management ... 133

3.3 ... Integration of SAP Modules in Tax Determination ... 160

3.4 ... Smart Forms ... 170

3.5 ... Summary ... 173

4 ... Indirect Tax Determination in SAP S/4HANA ... 175

4.1 ... Condition Logic in SAP ... 175

4.2 ... Indirect Tax Determination in Purchasing ... 198

4.3 ... Indirect Tax Determination in Sales ... 208

4.4 ... Special Indirect Tax Transactions ... 217

4.5 ... Summary ... 249

5 ... Indirect Tax Engines and Add-Ons ... 251

5.1 ... SAP Condition Logic ... 251

5.2 ... Add-Ons ... 253

5.3 ... Tax Service with SAP ... 253

5.4 ... External Tax Engines ... 256

5.5 ... Decision Support for Vendor Selection ... 258

5.6 ... Summary ... 260

6 ... Custom Coding for Indirect Taxes ... 261

6.1 ... ABAP Basics for Indirect Tax ... 262

6.2 ... User Exits for Tax Determination in Sales ... 266

6.3 ... Customer Exits for Tax Determination in Purchasing ... 280

6.4 ... Summary ... 289

7 ... Direct Taxes in SAP S/4HANA ... 291

7.1 ... Direct Tax Basics ... 291

7.2 ... Organizational Structures ... 295

7.3 ... Master Data ... 317

7.4 ... Tax Tagging ... 322

7.5 ... Direct Tax Data Analytics and Monitoring ... 326

7.6 ... Direct Tax Filing and Reporting ... 332

7.7 ... Direct Tax Planning with SAP Analytics Cloud ... 340

7.8 ... Summary ... 347

8 ... Managing Transfer Prices in SAP S/4HANA ... 349

8.1 ... Operational Transfer Pricing ... 349

8.2 ... Transfer Price Calculation ... 357

8.3 ... Transfer Price Determination ... 364

8.4 ... Transfer Price Monitoring and Adjustments ... 364

8.5 ... Transfer Price Reporting and Simulation ... 371

8.6 ... Transfer Price Testing and Compliance ... 373

8.7 ... Summary ... 377

9 ... Tax Reporting in SAP S/4HANA ... 379

9.1 ... Worldwide Tax Reporting Requirements ... 379

9.2 ... Standardized Tax Reporting in SAP ... 385

9.3 ... SAP Document and Reporting Compliance for SAP S/4HANA ... 398

9.4 ... Summary ... 412

10 ... Tax Monitoring in SAP S/4HANA ... 413

10.1 ... Why Monitor Tax? ... 413

10.2 ... Tax Monitoring Requirements ... 417

10.3 ... Tax Control Framework ... 419

10.4 ... SAP Solutions for Indirect Tax Monitoring ... 424

10.5 ... Monitoring with SAP Tax Compliance ... 429

10.6 ... Summary ... 438

... Appendices ... 439

A ... Europe ... 441

B ... India ... 461

C ... North America ... 465

D ... The Authors ... 473

... Index ... 475