SAP Document & Reporting Compliance

SAP solution for KSeF. And more. 

SAP Document & Reporting Compliance

National e-Invoicing System and European VAT in Digital Age 

National e-Invoicing System (KSeF).

What is KSeF?

It is a government platform for issuing and receiving structured invoices electronically. The system has already been introduced in 2022 and for the time being functions as a voluntary solution, as one of the possible forms of documenting transactions alongside paper invoices and unstructured electronic invoices (e.g., in the form of PDF files).  

KSeF Obligations

KSeF will soon become a mandatory solution: an amendment to the VAT law in June 2024 postpones the obligation to issue e-invoices to February 1, 2026.
The use of KSeF will be required for entrepreneurs who have either a registered office or a permanent place of business in Poland, and will cover transactions between entrepreneurs (so-called B2B). The system will not cover sales transactions to consumers (B2C.)
 

European VAT in Digital Age

Challenges of the Digital Economy

The introduction of the system is part of a broader digitization plan being implemented by European Union governments. Traditional tax systems are unable to meet the challenges of the digital economy. For example, VAT return reports for intra-EU trade transactions are vulnerable to fraud because the data is not checked until months after it occurs. This often means that member states are too slow to intervene when taxes are not paid.  

European Commission proposals

Therefore, in December 2022. The European Commission proposed changes to VAT regulations aimed at adapting settlements to the challenges of the digital age (the so-called “digital era”). VAT in Digital Age), which will be introduced between 2024 and 2028 and will cover all VAT taxpayers. This package includes:

  • Modernizing VAT reporting rules to adapt to the challenges of the digital age (DRR - Digital Reporting Requirements),
  • Digital platform regulations
  • Single VAT Registration (SVR) rules.

The aim of these regulations is to tighten the system, collect VAT more efficiently and counteract fraud within the economic turnover within the EU. 

Benefits and future challenges

It can be expected that the tax regulations of individual European Union countries introducing transaction recording and reporting obligations will undergo further intensive digitization while being adapted to common European standards.  

From the entrepreneur's point of view, it is therefore important that the solution used today for KSeF is ready for the next challenges of digitizing business workflows and reporting as required by law.  

SAP Document & Reporting Compliance is such a solution. 

Compliance with national and European legal requirements

Automatic issuance of sales invoices

Real-time insights

Full audit of transactions

Expansion with additional modules

We are a Silver Partner of Technology Leaders

How SAP DRC handles National e-Invoicing System

Sales invoices

Automation of invoicing

The issuance of invoices to the system is automated, and integrated SAP tools provide real-time insight and a full audit of transactions.  

Starting the process

The process begins in a standard way: the vendor issues an invoice in the SAP ERP system in the SD or FI module, or outside the SAP system with a corresponding registration of this transaction in the FI module.  

Creating an e-Document

When an invoice is booked, the SAP DRC component creates an e-document mapped to an XML structure in accordance with the relevant template (FA2 schema). Only documents with a status of "booked" are processed, while invoices with a status of "pre-booked" or "parked" are ignored.

Uploading the document to KSeF

This is followed by encryption of the document and establishment of an interactive session using an authorization token via the SAP BTP cloud platform, and the xml file is sent to KSeF for validation.  

Monitoring the status of invoices

In the SAP DRC cockpit, you can see the real-time processing statuses of individual invoices, such as: document created, document sent, document rejected by KSeF, document accepted by KSeF, document accepted by KSeF. The DRC Cockpit also provides the ability to manage documents, such as sending them back for correction or deletion.   

Confirmation and registration

When an invoice is accepted by KSeF, a UPO confirmation and a KSeF number are received in the feedback, which are automatically recorded in the SAP sales transaction.  

Insight and archiving

The SAP DRC user can view the document history, transaction data and messages generated by KSeF. It is recommended to archive UPO confirmations, because in case of a program failure or maintenance work on KSeF's side, this is proof that the document was processed correctly.  

Receipt of purchase invoices

Automatic receipt of invoices from KSeF

Receipt of purchase invoices from KSeF is done by an automatic task on the SAP DRC side, which, running in the background, checks invoices for collection. The system can be configured to query KSeF at an appropriate frequency, e.g. once a day, and with a filter, e.g. by TIN number. This streamlines the search and management of the onward circulation of incoming invoices.  

Downloading and presenting documents

SAP DRC sends requests to KSeF, retrieves all available documents and presents the user with those that need to be processed. By checking the processing status, the system protects against posting duplicates.  

Document imaging and processing

Documents downloaded in XML format can be visualized in readable HTML format and are made available for further processing and posting on the SAP ERP side.

Integration with Workflow Systems

This process can be implemented within an already existing workflow system or an integrated module can be used Vendor Invoice Management,, which comprehensively handles the processing of purchase invoices. 

SAP DRC - it's not just KSeF Expand your system with additional modules

In response to the rapidly increasing demands of digitization and changes in business regulations, SAP is offering a dedicated solution in the form of SAP Document and Reporting Compliance starting in 2021.  

SAP DRC is a comprehensive tool that enables the creation, processing and monitoring of transaction documents and periodic reporting in compliance with country regulations. The system automates procedures and ensures smooth processing through standardization, based on a powerful and integrated SAP environment. The system's functions and scope are updated on an ongoing basis in accordance with new and changing regulations, both local and international.  

If your company uses SAP ECC or SAP S/4HANA then a component in the form of SAP DRC is a natural extension to ensure compliance with KSeF and other regulations. 

SAP ECC

S/4HANA

SAP BTP

SAP DRC Business Benefits

Reduction in job processing time by 40%

By automating business processes, companies can reduce task processing time by up to 40%, leading to increased operational efficiency and allowing employees to focus on more valuable tasks.

Reduce operating costs by 30%

Implementing SAP can lead to significant reductions in operating costs by automating processes, eliminating manual errors, and better managing resources, which can reduce costs by 30%.

Reduce the risk of non-compliance by 70%

SAP ensures legal and regulatory compliance, which reduces the risk of fines and penalties by 70%. With built-in security mechanisms, SAP also protects company data from unauthorized access and threats.

Reducing decision-making time for 50%

With advanced analytical tools and real-time reporting, SAP enables companies to access key information faster, reducing the time it takes to make 50% business decisions.

Why Lukardi?

We will guide you through the process of change and help you enter the world of e-invoicing. 

Pre-implementation consultancy

Requirement analysis

Business and technical workshops

Concept preparation

SAP mapping

Implement of standard solution

Installation of SAP note

Configuration of applications, interfaces and reports

Implementation of extensions and optimizations

Testing

Documentation preparation

Hypercare post-deployment support

Speed up documents based processes

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