In my previous blog post, “Turkey: E-Invoicing/ E-Archive, E-Delivery, E-Ledger with SAP”, I have provided a general overview of the different legal e-regulations in Turkey and how to achieve compliance in SAP. In this blog post, I will dive deeper into the specialties of the Turkish E-Delivery Note regulation (Turkish: E-İrsaliye), describe the different technical and process-related challenges to ensure compliance in SAP and explain why I recommend using SAP Document Compliance to implement the Turkish E-Delivery Note rules in SAP.
What is the Turkish E-Delivery Note regulation?
According to the Turkish E-Delivery Note regulation (also known as the E-WayBill), an electronic transportation document must be issued in UBL-TR XML format for each physical delivery and must be transmitted for approval to the Turkish Revenue Agency (TRA) before the actual transport takes place. This E-Delivery Note rule applies to both domestic and export transports. After approval by the Turkish tax authority, your customer has the right to accept or reject the E-Delivery Note within a legally defined period. This requirement helps your company and the Turkish government to monitor all goods movements and therefore monitor the supply chain.
When do I need to comply with the E-Delivery Note rules in Turkey?
As from 1st July 2020, most companies need to replace all paper delivery documents, that are sent to their customers, by electronic delivery documents. For companies with a turnover of more than 5 million Turkish Lira (this equals to about EUR 650.000) or companies that trade fruits and vegetables, this E-Delivery regulation already became mandatory on 1st January 2020. The companies that have to start implementing E-Delivery Notes as from 1st July 2020 are:
- Companies licensed by the TR Energy Market Regulatory Authority
- Companies that manufacture, import or deal in motor vehicles
- Companies that publish internet banners or advertise on the web
- Middlemen in internet sales
- Companies that manufacture iron and steel
- Turkish Fertiliser Tracking System companies
In Turkey, also other legal requirements for E-Invoicing/ E-Archive and E-Ledger are becoming mandatory. In my previous blog post “Turkey: E-Invoicing/ E-Archive, E-Delivery, E-Ledger with SAP”, I have provided more detailed information on these specific requirements and you can find out if your company needs to comply with any of these legal requirements as well.
Important to know is that, as with E-Invoicing, according to the Turkish E-Delivery Note regulations, the electronic transportation document only needs to be transmitted to your business partner in case they are technically able to receive E-Delivery Notes. In case your customer is not required to issue E-Deliveries, you are still allowed to send them the delivery documents on paper. For this reason, it is crucial that your SAP solution for the Turkish E-Delivery Note is able to distinguish between customer that need to receive the E-Delivery Note electronically and customers that need to receive them on paper (E-Delivery customers vs. non-E-Delivery customers).
Please leave a message in the comments section below if you need help to find out if you need to comply with the Turkish E-Delivery Note regulations (and possibly also with other Turkish legal requirements) or if you need more information on how to ensure compliance in your SAP ECC or SAP S/4HANA system. I am happy to help you.
Technical and process-related challenges for SAP compliance with the Turkish E-Delivery Note requirements
As with all legal requirements, achieving compliance with the Turkish E-Delivery Note requirements brings some technical and process-related challenges for your company and your SAP system. From a technical SAP point-of-view, you need to implement a solution that is able to collect the required data from your SAP system, convert this into the required UBL-TR XML data format and transmits the generated XML file to the central platform of the Turkish Revenue Agency by using a data communication platform. Further down below in this blog post, I explain why I recommend using SAP Document Compliance for this.
However, from my point of view, the biggest challenges in a Turkish E-Delivery Note compliance project are process-related. According to these rules, you need to make sure that for each physical delivery of your goods an E-Delivery Note is created electronically, regardless whether you would normally create a delivery document in your SAP ERP system. This means that you also need to create an E-Delivery Note for e.g. small sample orders, movements between your plants or storage locations on different addresses and asset sales for which you might currently not create a delivery in your SAP system. This process change will impact your business processes significantly and involves quite a few risks. As such, achieving compliance with the Turkish E-Delivery Note rules might result in adjusting your current processes or even creating new process flows.
Since it is required that the E-Delivery Note is approved before the actual transport takes place, there is a potential risk for a delayed delivery when the E-Delivery Note is not finalised in time. Therefore, I recommend implementing a stable and future-proof SAP solution that is able to provide and process the E-Delivery Note in a fast and easy way.
The SAP solution for compliance with the Turkish E-Delivery Note regulation
In order to achieve compliance with the E-Delivery Note rules in Turkey, I recommend implementing the SAP Document Compliance solution. This is an automated, end-to-end SAP solution (both for ECC and S/4HANA) that is designed to manage, process and transmit electronic documents to local tax authority systems, such as electronic delivery documents to the TRA in Turkey.
SAP Document Compliance is very user-friendly and can also be used to achieve compliance with many other country-specific legal requirements worldwide, such as SDI E-Invoicing in Italy, RTIR E-Invoicing in Hungary and CFDI E-Invoicing in Mexico, VAT reporting in Spain, etc.). It has a built-in eDocument Cockpit to manage and monitor all implemented legal requirements end-to-end from within one central SAP transaction.
SAP Document Compliance can also be used for compliance with the E-Invoicing (and/or E-Archive) requirements in Turkey. In the following graphic, you can see the SAP Document Compliance process for the Turkish E-Delivery Note rules:
- The goods issue of the delivery is performed in the SAP ERP system.
- This triggers an eDocument in the SAP eDocument Cockpit.
- In the background, the UBL-TR XML format is created.
- In the eDocument Cockpit, you can submit the XML file to a service provider who sets the required digital signature, completes the document and takes care of the data communication with the Turkish Revenue Agency (TRA).
- After the TRA have approved the E-Delivery Note, this approval status is returned to SAP flows back into the eDocument Cockpit. When the E-Delivery Note has been approved by the TRA, you can start the shipment of your goods.
- At the same time, the TRA forwards the approved E-Delivery Note to your customer.
- Your customer has the possibility to accept or reject the E-Delivery Note.
- If your customer approves, this is communicated to the TRA, who transmits this information through the interfaces into the SAP eDocument Cockpit within your SAP system.
The inbound electronic deliveries can also be integrated in SAP ERP. This means that you can create eDocuments for incoming E-Delivery Notes that have been approved by the Turkish Revenue Agency. After creation, you can accept or reject this E-Deliver Note in the SAP eDocument Cockpit.
Please click the button below to request a live system-demo and/or a quotation to achieve compliance with the Turkish E-Delivery Note regulations in your own SAP system.
How PIKON can help you with your SAP compliance project in Turkey
At PIKON, we have established our strategic Competence Center for Legal Requirements. We ensure that your SAP system and business processes meet different country-specific legal requirements all over the world on the long run. For this, we have a team of experts that combine SAP expertise and in-depth knowledge of the end-to-end legal process and technical requirements of the different Turkish regulations for the electronic submission of VAT-related information, being E-Invoicing, E-Delivery, E-Archive Invoicing and E-Ledger. Together with you, we analyse and define the best possible, future-proof SAP solution scenario for you and implement this in a minimum of time according to your pre-agreed budget and your specific wishes/ requirements.
If you want to have more information/ a system-demo about compliance with the Turkish E-Delivery Note regulations in SAP (or any other e-regulations), or if you have any other questions, then please feel free to click the button earlier in this article and request a web-meeting. Or you can always leave a comment in the comments section below, I will then come back to you as soon as possible.