SAP Business ByDesign: Localization outlook 2021
In continuation to the 2020 blog I would like to provide a high-level outlook on the SAP Business ByDesign localization road map 2021 through this blog.
To share a holistic overview of the supported country/region version let me start with the following graphic:
Currently, we have 66 countries/regions were a local version of SAP Business ByDesign is available. It’s really encouraging to notice that more and more partners are leveraging the SAP Business ByDesign extension technologies to deliver localization in addition to the SAP delivered scope. To understand the big picture, you can find regular updates in the Globalization world maps on sap.com.
Despite the challenges this year has brought to all of us, we’ve worked on a lot on new technologies to enable and simplify the product extensions.
The integration of our partners ecosystem innovationas and add-ons is now a part of SAP Business ByDesign Road Map.
In the following sections I would like to highlight the important localization areas/topics that we focused on in 2021:
Regular maintenance and legal change management for the SAP delivered country/regions versions
The country/region versions and localization features are updated every release. You can find the latest release updates and localization capabilities at sap.com (Europe; Asia-Pacific-Japan, Americas, and Africa and Middle East)
For additional details on the release-specific country/region features, please refer the “What’s New” section in the SAP Help Portal.
Upcoming legal changes impacting the SAP Business ByDesign localization scope and delivery status can be easily accessed via the SAP ONE Support Launchpad. You can also find useful information on how to leverage the legal change notification service in the blog Legal Change Notification for ByD.
Highlighting some of the legal changes delivered on a quarterly basis in 2021:
Release 2102 highlights:
- 1099-NEC Withholding Tax Return for Nonemployee Compensation
The new Tax Report Type 1099-NEC is now available for reporting nonemployee compensation in the Untied States. Using this tax report type, it is possible to generate the 1099-NEC form as well as the 1099-NEC file. This income type was removed from 1099-MISC return (Blog).
- TCS tax code determination for India
TCS tax codes can be auto determined and thus the manual effort of selecting tax codes for each line item in the sales documents can be avoided (Video).
- Form 6111 for Israel
Customers can now generate output DAT file that will have the amount for each of the 6111 codes and other details as per the prescribed format by tax authority (Video).
- Unified Reporting Enhancement with new filters for Israel
Customers can now reduce the size of the BKMVDATA.txt file based on the new filters introduced (Video).
- VAT Postponement for Israel
Without changing the tax due date in the posted supplier invoice, customers can now know the tax liability as well as postpone the tax line items using Test Run functionality.
- CU file and form return for Italy
Customers can create a single return file on annual basis during file reporting (Video).
- Tax Responsible fields on Customer & Supplier Data Sources for South Korea
It is now possible to create reports to show the tax information fields for a South Korean supplier or customer by using the data sources ‘Supplier Details’ or ‘Account Details’ (Video).
- Form 347 for Spain
Customers can now generate a new tax return run text file as per the prescribed format by Tax agency (Video).
- SEPA Direct Debit Deposit for Bill of Exchange for Spain
With this release SEPA Direct Debit payment file can also be used for Bill of Exchange payment initiation (Video).
- SII Legal WSDL and Date Changes for Spain
Customers could continue with SII Return and reporting with the latest WSDL schema changes and validation checks in place (Video).
Post Brexit Great Britain is officially out of the European Union with an exception of Northern Ireland Protocol. SAP Business ByDesign is compliant as per Brexit laws (Video).
Release 2105 highlights:
With the implementation of the second stage of the VAT digital pact within the European Union, the regulations on the One-Stop-Shop (OSS) will come into force on July 1, 2021
- Expense Reporting – Mileage Accumulation
With this release, the mileage accumulation on basis of vehicle class in expense reporting for Denmark is now possible (Video).
- Bank Statement Format MT940 for France
Customers will now be able to generate bank statements based on the file content that is provided by the bank (Video).
- TCS Threshold Amount Check for India
The seller is now able to mark a particular customer as TCS relevant, based on the threshold amount warning message thrown during the creation of customer invoice (Video).
- VAT on Sales by Cash Receipts for Italy
Documents created with the new tax code 591 will be reported in the aforementioned tax returns as per Law DL nr. 127 05/08/2015 Art. 2, published by the Tax Authority in Italy (Video).
- Journal Report – Page Number Sequencing for Italy
Customers will now be able to generate multiple PDFs outputs for a given run with sequential page numbers (Video).
- Correction Invoice in VAT Return for Netherlands
With this release correction invoices created for the original invoices, will now be part of the normal VAT return (Video).
- Income Statement – Comparison Report for South Korea
Customers can now compare income statements of two years or between different periods of same year (Video).
Statement of the Costs of Goods Manufactured – Comparison Report
Customers can now compare cost of goods manufactured report of two years or between different periods of the same year (Video).
- Credit memo handling in E-Tax Invoices for South Korea
The credit memo documents will now be considered for E-tax invoice generation for both stand-alone and aggregate invoice scenarios (Video).
- Partner Tax File Generation for Spain
VAT return files can now be formatted and generated by partners. Existing VAT return files can be also be independently changed (Video).
- B2C Shipment for United Kingdom
GB Domestic sales of goods will be determined for shipment cost less than 135 GBP (Video).
Release 2108 highlights:
- Payment Times Reporting Scheme for Australia
From September 2021, reporting is required to safeguard the financial health of small suppliers by monitoring the payment history of large companies and government agencies (Video).
- Direct Cash Flow Statement for China
Cash Flow statement shows the changes in cash position of an organization for a specific period. A new Cash Flow statement (Direct) has been introduced in the system (Video).
- Dynamic QR Code creation for B2C invoices for India
With this release, dynamic QR Code generation on B2C invoice forms for digital payment of the invoices by the customer is now enabled (Video).
- Bill of Exchange Receivables Sole Bill for Japan
Bill of Exchange(BoE) Receivables Sole Bill is now available as a means of payment for companies located in Japan (Blog).
- Enhanced Numbering Configuration for ERS for Netherlands
With this release, ERS sequential document number can have the calendar year as suffix and number can be restarted for each calendar year (Video).
- Cash Flow Statement for South Korea
Cash Flow Statement for South Korea now contains ‘Net Increase/Decrease’ of ‘Cash & Cash Equivalents’ and Cash & Cash Equivalent at Beginning and Ending of period. (Video).
- SII Down Payment for Spain
Down Payment clearings are now reported along with the invoice to make sure that only payable amount of the invoice is reported to tax authority (Video).
- Making Tax Digital – Fraud prevention header for United Kingdom
Based on the latest security requirements from HMRC (The UK Tax Authority) all security- related information, except the client’s IP-related data, can now be send to the UK tax authority in the required format (Video)
- Vehicle Class – Fully Electric Cars for United Kingdom
Customers can now create an expense report and add mileage if an employee has traveled by electric car. (Video).
- Country/region wise approach for One Stop Shop You can find the detailed approach followed in SAP Business ByDesign for the different countries/regions impacted by the One Stop Shop legal change in this blog.
- 1099-NEC Print-Form
Users who have generated the 1099 – NEC Withholding Tax Return in SAP Business ByDesign can now print out the tax print-form for the fiscal year 2021 (Blog).
- 1099-MISC Print-Form
Users who have generated the 1099 – MISC Withholding Tax Return in SAP Business ByDesign can now print out the tax print-form for the fiscal year 2021 (Blog).
XSL Transformation tool extension:
The XSL transformation tool enables you to use the SAP delivered standard or custom-generated transformations for XML based file applications for a variety of use cases. You can maintain the configuration in the Common Master Data Configuration using configuration type code Transformation Repository. This feature allows you to store a single or multiple customer-specific XSLT files in the repository from which dedicated transformations can be created as per your business requirements.
Enhancing this functionality, Partners can now define the tax file structure by themselves. To know more about generating custom tax return file using XSL transformation repository refer to this blog post.
This feature enables the partners to adapt tax return files to relevant format according to specific country/region regulations. This feature has been made available to be consumed even for pre-localized and nonlocalized country/region tax return (using the generic tax return).
Generation of custom tax return file using XSL transformation repository is now available for withholding tax returns as well.
Delivery of any new country/region version is carefully analyzed as part of our product strategy. This year SAP enabled the tax basic tax content for Yemen, Madagascar, Bermuda, Georgia, and Uzbekistan.
At the same time, SAP localization experts regularly support partner driven localization. Also, we offer enablement material related to the localization toolkit and our SDK. Our maturity allows nonlocalized countries/regions to take advantage of the best-practices from the existing partner ecosystem and their experience.
In the openSAP course for the Cloud Application Studio (for SAP Business ByDesign), you can find units explaining the Localization Toolkit. Watch the demo in units 3 and 4 (week 5) to get an insight into the use case for creating new country/region and tax content, among others.
The SAP Business ByDesign Localization Toolkit and Language Adaptation Tool (LAT) are efficiently used by partners and customers to execute their own subsidiaries’ roll-out plans. Thus, we put in a lot of attention to extend these tools according to the most voted ideas collected via the Customer Influence Portal.
Localization extension by partners
I’m glad to introduce the localization extensions delivered by SAP Business ByDesign partners in 2021 via the SAP Store.
Highlighting the solutions delivered in 2021 to extend localization:
- ByDintec: Electronic Invoice for Mexico. The E-Invoicing ByDintec add-on provides compliance for the Mexican government requirement of electronic invoicing automatically by connecting SAP Business ByDesign with the Authorized Certification Provider (PAC) (Blog).
- ERP Logic: Italy E-Invoicing. The solution by ERP Logic helps to manage the e-invoice for accounts receivable and accounts payable for Italy (Blog).
- MSBS: Estonian Localization. MSBS created a solution that provides a core localization package with additional features for Estonian companies to use SAP Business ByDesign (Blog).
- Pristine Solution: Sri Lanka Localization. Pristine Solution has created a solution that provides a core localization for Sri Lankan companies to use SAP Business ByDesign by using Sri Lanka (LK) localization (Blog)
- Seidor: Ecuador Localization. The Ecuador Localization Solution complies with tax requirements in Ecuador. Additional to end to end functionalities, Seidor also covers E-billing for sales and purchases as well as fully parametrizable settings which are adaptable to Company’s Business requirements (Customer success story)
For more Information on SAP Business ByDesign, do check out the following links:
- SAP Business ByDesign product capabilities: sap.com and Globalization Capabilities: Europe, Middle East and Africa, Asia-Pacific-Japan, Americas, and prelocalized countries/regions
- SAP Business ByDesign Community with localization blogs and SAP Business ByDesign – Localization JAM (access required)
- Legal Change Notification portal for information on the legal changes
- SAP Business ByDesign Release highlights: 2102, 2105, 2108
- SAP Business ByDesign Road Map
- Help Portal Product Page with localization input
- Support Portal and FAQ for SAP Business ByDesign Localization
- Partner innovations published at SAP Store, please filter by SAP Business ByDesign
- Submit your localization idea at Customer Influence Portal