By Richard Cornelisse, Director Strategy & Sales van Taxmarc™
Data analysis can be used to check whether these decisions are legitimate. Such analyses can comprise all transactions in a specific period – year, quarter or month.
The results of a data analysis can provide insight into the risks or opportunities regarding the possibility of having paid too much or too little VAT.
Taxmarc™ Data Analytics can contribute to improving business performance as follows:
- 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
Traditional data analysis
Data analyses of other market players are generally standard analyses that are generated by a Data Dump from SAP. Extracting data from a SAP environment is often not possible due to lack of the proper authorization.
Moreover, the extraction of data is limited to a specific number of document numbers per extraction. This requires the same extraction to be executed over 30 times when an extensive amount of data is to be retrieved.
Retrieving data in multiple steps brings the risk of the format of the data not always being identical. As a result, there are no unequivocal results available and many manual adjustments are necessary.
In the case of extensive data, SAP often breaks off the analysis, because runtime limits are exceeded.
In addition, due to restriction of the size of reports in SAP, created data files cannot always be copied to a pc. Solely standard analyses are possible, which does not sufficiently take into account the complexity of business models and specific risk domains.
Benefits of Taxmarc™ Data Analytics
Taxmarc™ Data Analytics is derived from Taxmarc™ Tax Engine. Therefore, risk domains are specifically salient. Knowledge for enabling fully automated VAT determination and building an integrated Tax Control Framework is crucial in data selection.
Taxmarc™ Data Analytics only retrieves the VAT relevant data that are necessary for this analysis. This is done on the basis of a self-written SAP program (ABAP), so the data can be extracted from SAP in a uniform manner.
With this, problems regarding performance, format of reports and interpretation of data definitely belong to the past.
Taxmarc™ Data Analytics is – just as Taxmarc™ Purchase Engine – a derivative product of Taxmarc™ Tax Engine. Therefore this tool is much more effective than comparable solutions.
Taxmarc™ Data Analytics guarantees the quality and integrity of data by means of:
- Profile analysis of the most important data fields in order to ascertain whether these comply with the applicable business regulations
- Identifying the source of the problems regarding data quality and implementing the appropriate improvement measures
- Development and implementation of improved data governance and quality assurance
- Adding new attributes to existing data, so uniform and risk-oriented analysis is possible.
- Combining information from different sources within the ERP system and analyzing this in conjunction
- Using standard audit and performance software
Taxmarc™ Tax Engine adds brain capacity to SAP and enables companies to comply with all VAT obligations
- Taxmarc™ prevents that time-consuming manual processes outside of the system are necessary. The virtual VAT manager allows the following operations in SAP to be executed automatically – without extra interface:
- fully automated VAT determination of outgoing invoices (AR) on the basis of 30 parameters instead of the 4-8 parameters in standard SAP;
- fully automated VAT determination of incoming invoices (AP);
- fully automated VAT determination of all chain transactions in SAP;
- an integrated Tax Control Framework ensures that transactions that fail to comply with fiscal requirements are automatically blocked. This makes a reliable procedure available to efficiently and effectively complete transactions in accordance with business objectives;
- the existing (optimized) tax code structure is also maintained in the future, which makes it no longer necessary to create new VAT codes when tax rates change.
- Validation process of VAT numbers in SAP
- Taxmarc™: your best SAP solution for Indirect Tax Automation (indirecttaxtechnology.com)
- Case study: cross-border chain transactions and the weakness of Standard SAP (richardcornelisse.com)
- Everything You Always Wanted to Know About VAT in SAP * But Were Not Aware to Ask (indirecttaxtechnology.com)
- Indirect Tax Can Drive Costs For Shared Service Centers (indirecttaxtechnology.com)
- Taxmarc™ Tax Code Solution (indirecttaxtechnology.com)