It is amazing how the subsidiaries’ approach with SAP ByD generates many queries from channel sales, customer requests and even new Market Units at SAP. It is quite satisfactory to be part of the team leading this work-stream and being able to understand market dynamics, to support and transfer the knowledge necessary to achieve SAP ByD growth.
Does it mean, the way how SAP ByD approaches the localization topics is revolutionary? How did the globalization architects design the product to support an efficient and cost effective implementation of legal requirements without interruptions? How does the globalization service support the activation of countries at such speed, independent of any development cycle? Either way, it deserves an interview with SAP ByD Globalization architects!
I would like to share two partner country versions – Portugal and Israel – as I consider both projects successfully fulfilled the pre-requisites we set. In a former blog about SAP ByD Localization, we demonstrated the way Localization toolkit and Cloud Applications Studio tools allow execution on the customer specific localization.
First of all, let me tell, how we agreed to support country versions by customers or partners. I will then share specifics about these two partner extensions as an example for several other cases. I would like to encourage you to check our country version list at SAP JAM where partners like erplogic, NEC, Seidor, SAP Cloud Service Center (Custom Development) and others, deliver details of their country scope.
The guiding principles to support the business of our customers with our partner ecosystem wherever they go since February 2015.
- SAP provides customized localization services such as a localization kit, trainings, a quality check, certification, translation tools among others. Thus, partners can develop country versions in addition to customer specific projects.
- SAP has set up a program around Localization which supports Partners (VARs and ISVs) and connects customers asking for a country version through a partner.
- SAP sets quality assurance levels on Partners’ country versions.
- SAP supports sales and marketing activities with Partners.
Now, let me outline some details about the country localization projects for Portugal and Israel. Why do I pick these examples? From a technical perspective this customer specific project (is called one-off) has evolved to a Multiple Customer Solution add-on. Several other customers are already in productive or in the implementation phase.
The first example reflects our partner Seidor’s effort for a US customer subsidiary in Portugal, a travel agency with about 150 employees in more than 15 sales offices. The project focused on SAP ByD integration with their agencies’ back office software (Amadeus) and also included the local legal regulation. In the end, the Seidor Portugal add-on was certified by Portugal Tax authorities, as required for any IT solution which generates invoices. The certification took place end of 2015.
The Seidor Portugal add-on automatically opened new SAP ByD sales opportunities. Seidor became aware of their add-on value for the market and offers it, with a fixed price and service, to local customers or subsidiaries aiming to operate in Portugal .
This localization add-on covers the below requirements:
- Invoice/Credit Memos and Transport Document. Digital Signature
- Legal Requirements: Documents to be presented to customers must contain the following expression (“Este documento não serve de fatura”); Base document referenced in final documents; Credit Memos always referring to the origin Invoice; A signed document no longer can be modified; Cannot print a draft document before being signed; Digital signature generated with RSA algorithm; Signature saved in database
- Technical Requirements; An RSA Algorithm must be used (Data encryption algorithm that uses the asymmetric key system, public key and private key); The public key to provide along with the 24 Model Statement must result from its extraction from the private key in PEM format – 64 base must be created and the respective file with the extension ” .txt “; The software producer shall ensure that the private key used to create the signature that is its unique knowledge, must be properly protected in software
- SAF-T File Requirements: The XML file followed the legal requirements stated in “Portaria n.º 321-A/2007” with the correct syntactic structure The file must contain (Source Documents; Hash key for each document; Primary key version; Digital signature)
- Other Requirements
The second example delivers Israel customer localization by SAP Cloud Service Center
It has been executed as a customer specific project for one of the biggest SAP ByD customers and went live last February. I consider this project as best-practice approach because beyond customer requirements collected, there was a collaboration with KPMG auditors on local regulation rules clarification. In the end, the Israel tax authorities’ certification is required to become compliant in the country which is in process.
The realization of the Israel localization, due to a strategic go-to-market plan to become country standard on SAP ByD during this year, required a closer collaboration between the SAP Cloud Service Center and Globalization development.
Following topics were subject for implementation by SAP:
- Tax calculation: Maintenance of tax rates and calculation and booking of value-added tax (based on invoices) specific to Israel based on specified tax rates for customer and vendor scenarios
- Withholding tax (WHT)–
- Calculation: maintenance of tax rates and calculation and booking of vendor withholding tax at the time of payment based on Israeli laws and regulations, WHT calculation based valid supplier WHT certificate.
- Withholding tax report – Electronic 856; Vendor Certificate 857; Form 102
- Tax reporting: generation of input and output value added tax report PCN874 (each fiscal year period/month) in a file structure specified by the Israeli tax authorities
- Payment receipts (system document and output form) to be issued to payer while accepting the following forms of payment – check, cash, credit card. In addition, MASAV payment/ bank file for Israel
- Manual document registration: logistics and financial development for capturing paper document references issued outside the system for different logistic/financial processes – common practice in Israel
- Internal delivery note: development of sequence numbered form to be issued during movement of goods from one area to another within a site (warehouse)
- Documents water mark and Invoicing split by ship-to. Development for the handling of second and subsequent output of business documents with duplicate watermark to ensure that only the original is issuedThese partner country versions (add-ons) from Seidor and SAP CSC are clear examples about the unique SAP ByD approach to support customers’ subsidiary strategy for non-localized countries.
With this, I trust a better understanding on how SAP supports localization for customer subsidiaries has reached you. The general value of the SAP ByD platform and Localization Services is definitely a unique approach into the SME market to support our customers wherever they go.