S4/HANA Advanced Compliance Report (UK MTD)

UK MTD (Making Tax Digital) is a statutory requirement initiated by the UK Government with an ambition to digitalize the VAT submission by the applicants. This will become mandatory from April 2019 and the applicants will have to do the submission through an official software integrated with HMRC

SAP Solution

SAP Advanced Compliance Reporting Service (Basic Version)/SAP Localization Hub (Licensed version) supporting HMRC’s MTD for VAT initiative.

SAP ACR Service supports compliance reporting for most of the countries. It is mainly divided in 4 main key concepts

• Report Category
• Report Definition
• Reporting Entity
• Reporting Activity

a) Report Category: It is self understood what a report category is. Example for UK VAT Returns &    EC sales list are two separate report categories

b) Reporting Definition: It is more related to the output format definition. Example if it should be Json/XML format etc…

c) Reporting Entity: Reporting Entity is a legal entity which is required to extract a certain reports out of the ERP systems which are being used.

d) Reporting Activity: This concept relates to the step by step execution of the reports. It includes end to end approach from beginning to end i.e. navigating through the ACR app to generate the report and complete the submission successfully

Below are the app ids for the ACR apps

App Id: F1515 Run Advanced Compliance Reports

Getting Started (Configuration)

The setup can be completed under the below IMG path (Read the IMG activity documentation) and the Further Reading section at the end of the blog

Financial Accounting => SAP S/4HANA For Advanced Compliance Reporting 

Navigation/Report Generation through ACR (Advanced Compliance Reporting)

Selection Parameters

• Reporting Status: We can choose a reporting status like Completed/Due Later/Overdue etc. to filter out the data

• Selection Due Date: The reports can be filtered out based on specific date selection

• Report Name: Report Name should be set to ‘GB_VAT_DCL’

• Reporting Entity Name: We can filter the data based on the Reporting entity name as well

• Reporting Year: We can choose which year should be considered to display the list of outstanding/completed reports

• Reporting Country: ACR also provides further option to filter down the data based on the Reporting country

Report Generation

Based on the next due date, select the report which should be generated and follow the below steps

• Example: We have selected the report which is already overdue by 25 days (sample).

• Now select GB VAT Return Statement and generate a new run

• We get the company code/Reporting date based on the configuration (refer documentation section). Now we can click on Run (bottom right) to start the report generation

• The status can be tracked under the Report Run Status section

• The status can be checked by click on the refresh button in the top right of the screen. Once the Report is generated successfully, we can click on it to drill down further and download/submit the file.

• On the next screen we can get the status also the option to download/submit the files. The file Format has to be JSON.

Conclusion

Further Reading

2728767 – Definition of tax boxes for UK VAT return

2682182 – Making Tax Digital for SAP S/4HANA

https://help.sap.com/viewer/3cc1da1e1e364fadb9b1af653a9597d2/1709%20002/en-US

https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

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