{"id":2545,"date":"2020-10-05T13:46:25","date_gmt":"2020-10-05T11:46:25","guid":{"rendered":"http:\/\/blog.pikon.com\/?p=2545"},"modified":"2024-05-30T12:20:33","modified_gmt":"2024-05-30T10:20:33","slug":"sap-acr-advanced-compliance-tax-statutory-reporting","status":"publish","type":"post","link":"https:\/\/www.pikon.com\/en\/blog\/sap-acr-advanced-compliance-tax-statutory-reporting\/","title":{"rendered":"Managing Global Tax Reporting Requirements with SAP ACR"},"content":{"rendered":"\t\t
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As from SAP S\/4HANA 2022 (and earlier versions with later support packages),\u00a0Advanced Compliance Reporting (ACR) has been replaced with Statutory Reporting as a part of the SAP Document and Reporting Compliance framework (DRC). Read more about it in our recent blog.<\/a><\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Many countries worldwide have defined their own tax reporting regulations and require companies to report tax information digitally to their tax authority. This can be in real-time, daily, monthly, quarterly, or annually for regulations such as the VAT Periodic Return, Withholding Tax, the EC Sales List, Financial Statements, Audit Files, VAT Sales and Purchase Ledgers, Transport Tax, etc. In any case, the tax data needs to be submitted in time and in formats, prescribed by law, such as e.g. XML, TXT or PDF. Quite a few of our customers have struggled to manage and monitor these different country-specific tax regulations in their SAP system and to keep track of which tax reporting was already submitted to a local tax authority for which company code and to centrally store those reporting files for archiving. For this purpose, SAP has released SAP Advanced Compliance Reporting (SAP ACR). SAP ACR is a standard SAP solution to disclose aggregated enterprise-related information to a local government agency and therefore to achieve compliance with global tax reporting requirements, such as VAT return, withholding tax, EC sales list, audit files requirements, etc.<\/p>

In this blog post, I will explain how SAP ACR works as a central solution to manage and monitor country-specific tax reporting requirements in your SAP system, which compliance (i.e. legal, statutory) reporting is in scope of SAP ACR and how tax reports can be prepared and submitted using SAP ACR. Moreover, I will provide you with an overview of the countries that are currently covered by SAP Advanced Compliance Reporting and explain the differences between SAP ACR and SAP Document Compliance (also known as the SAP eDocument solution).<\/p>

SAP Advanced Compliance Reporting (SAP ACR) as a strategic tax reporting tool for your global growth and international expansion<\/strong><\/h2>

A major challenge of doing business internationally is ensuring compliance with the local legal tax reporting requirements. These can vary greatly between different countries and define their own processes and specifications. This diversity and complexity increases the need for a central solution to manage and monitor all different requirements.<\/p>

That is exactly where SAP Advanced Compliance Reporting comes in. This is SAP\u2019s standard solution to manage statutory reporting worldwide, enabling simple adoption of constant legal reforms in your digital business transformation strategy, while providing more transparency. SAP ACR is fully integrated with the S\/4HANA On-Premise and Cloud editions and can also be made available for SAP ECC, using the SAP Localization Hub (SLH) – Advanced Compliance Reporting service.<\/p>

The basic principles for legal compliance reporting with SAP ACR<\/strong><\/h2>

In SAP S\/4HANA, SAP ACR covers the end-to-end reporting process for almost all countries that have mandatory tax submission requirements. Please note that not all countries are available for ECC, when using SAP SLH \u2013 Advanced Compliance Reporting service.<\/p>

SAP ACR basically provides all required tax information on time (being real-time, daily, monthly, annually depending on the country-specific requirements) in the legally prescribed formats, such as XML, TXT, PDF, XBRL, JSON, based on the source data from your SAP system. Next to generating the required tax reports, SAP ACR also helps you submit them digitally to the local tax authority and keep track of all communication. From a user perspective, SAP ACR is supported by a series of SAP Fiori Apps that provide additional analytics features for report data (e.g. SAP Embedded Analytics), real-time monitoring, full traceability features, flexible business rules and an extensible report design environment to ensure long-term compliance.<\/p>

Because SAP have developed their strategy for legal tax reporting around SAP ACR, all future legal reports will be built for SAP ACR. This makes SAP ACR the most future-proof tax reporting solution for SAP and ensures compliance with constantly changing legal requirements on the long run. Old legal reports are currently being replaced by compliance reports for SAP ACR. This means that the old standard SAP ECC reports are not always supported anymore if SAP provides an alternative report in SAP ACR.<\/p>

Countries supported by SAP Advanced Compliance Reporting<\/strong><\/h2>

At the moment of writing this article (2nd<\/sup> October 2020), 40 countries are supported by ACR.<\/p>

\"Countries_SAP_Advanced_Compliance_Reporting_ACR\"
The 40 countries that are currently supported by SAP ACR (status: 02\/10\/2020)<\/figcaption><\/figure>

Some examples of available statutory reports in SAP ACR are:<\/p>