Compliance made easy – How invoice receipt works with SAP DRC
March 14, 2024 | Reading time: Approx. 8 minutes
Dual students at FIS
Do you act globally and no longer see the wood for the trees due to countless compliance and tax regulations? SAP DRC is a solution that maps all requirements and has a lot more to offer. This blog describes the benefits offered by the solution and how it supports invoice receipt processes.
Today, more and more companies sell products to customers from many different countries all over the world, which in turn will open up new markets for them. At the same time, companies are increasingly confronted with various requirements concerning invoicing and tax compliance, which become more and more complex.
In the past few years in particular, many public institutions have been promoting the implementation of eInvoicing and many countries are even going to tighten the regulations in the future. One such example is the EN16931 standard, whose intention is to harmonize e-invoicing standards across the EU.
Since, however, these standards may differ from country to country, it is difficult for globally acting companies in particular to ensure compliance and tax regulations. This means, for instance, that the requirements of China, India, Poland and many other countries must be understood first, fulfilled and constantly adjusted should there be any changes.
If this does not happen, there may be consequences such as fines, lengthy inspections or even criminal penalties. Especially trained expert staff exclusively focusing on this topic is required to keep pace with all these changes.
As in many other cases, automation significantly simplifies the compliance with global requirements. You can carry out your daily business with digital solutions that ensure the following aspects:
SAP Document and Reporting Compliance (SAP DRC) is a solution that can do all this and much more.
SAP Document and Reporting Compliance – What does that mean?
SAP Document and Reporting Compliance is a well-established solution by SAP for managing electronic invoicing and reporting. It can be used globally and maps local regulations.
More precisely: electronic documents and legal reports can easily be created, processed and monitored, which effectively ensures that overall compliance rules are adhered to and legal risks recognized and minimized.
Furthermore, the software solution offers a user-friendly user interface allowing the easy and efficient management of documents which enables the optimization, automation and individual adjustment of compliance processes.
Invoice receipt process with SAP DRC: from business documents to external reporting
To illustrate where exactly the solution can provide assistance, some functions are described using the example of an invoice receipt process.
When processing incoming vendor invoices, SAP DRC can support different process parts and partially automate working activities.
If a Peppol network is used, invoices are no longer sent directly by the vendor but automatically called from the national system of eInvoice or Peppol Network. SAP DRC can be used to automatically create electronic documents from inbound documents, which can be further processed using (if available) a solution for automating invoice receipts. (1)
Do you want to automate your invoice receipt? FIS/edc, the Electronic Document Center for SAP, provides your company with a convenient tool for entering, processing and archiving paper documents and electronic formats.
If the invoice is validated correctly, it is possible to update the invoice without manual intervention by using an invoice processing solution such as FIS/edc. If an error occurs, automatic postprocessing can be triggered according to the system setting to minimize manual tasks and reduce the amount of time and effort for the employees. (2)
However, errors can also be traced via a holistic dashboard and corrected with just a few clicks since you can quickly and seamlessly navigate to the underlying invoices. (3)
In addition to worldwide monitoring, consistency checks can be made permanently. This avoids discrepancies with the records of authorities and enables a seamless transition to the statutory reports.
A holistic dashboard makes it easier for the internal compliance team or tax consultant to check electronic documents and ensure that there are no open measures or existing ones to be considered. (4)
Next, regular reporting in compliance with all country-specific requirements can be initiated. (5)
Therefore, the SAP DRC solution supports statutory reporting along the entire process and maps it digitally in full. Any adjustments, controls and drilldowns concerning the underlying data as well as approvals on workflow integration can be executed in the system and Excel lists belong to the past.
Embedded analyses in real time can be used to get data-supported insights and full digital traceability. Approvers as well no longer need access to offline data and can easily make the check via the system.
However, it should not be forgotten that an interface between SAP DRC and your individual invoice receipt solution is required to holistically benefit from SAP Document and Reporting Compliance.
For this purpose, SAP Application Interface Framework can be used for instance. Another option is Invoice Refinement Service by FIS representing an inexpensive alternative. This service is used to map transaction data onto the required format and it ensures at the same time that SAP DRC can work with the FIS/edc Invoice Monitor solution.
It is therefore possible to integrate SAP DRC into your existing process landscape, fulfill the statutory requirements and fully benefit from the solution.
What are the benefits when using SAP DRC?
As can be seen from the process, efficiency and corporate sustainability can be promoted by using an appropriate solution that provides central management and control of e-documents and statutory reports.
The dashboard, for instance, offers an overview of all submission deadlines for reports to statutory authorities, which results in time and resource saving. Moreover, business needs can be covered by scalable functions such as standardized user experiences or simplified processes.
What cannot be ignored is that this solution can be adjusted internationally and individually. If a subsidiary would like to make use of this, the system can be adjusted to the statutory circumstances of the country, which ensures compliance with provisions.
This means that SAP Document and Reporting Compliance does not only provide assistance concerning the compliance with constantly changing statutory requirements and the avoidance of legal consequences but also ensures a smooth transition of regularly mandatory legal reporting. In view of the comprehensive statutory provisions and the required official certifications for shipping and receipt, this is a major factor that should not be ignored.
Conclusion: SAP DRC for law and order
Companies acting globally often face the challenge of understanding the multitude of local and global regulations and flexibly responding to changing requirements. This task requires constant attention many companies cannot pay to the full extent.
SAP Document and Reporting Compliance is a high-performance solution for managing and controlling documents and reports in SAP. By supporting different countries, languages and legal systems, the system offers a central and simplified approach for document management and, consequently, increased efficiency, compliance and control.
Questions about this topic? Our team will be happy to assist you personally.
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