SAP implementation from the aspect of accounting

22. December 2020 | Reading Time: 3 Min

A good implementation strategy means that you are well prepared, able to maintain focus on the originally established plan of your project and that your employees are properly trained and prepared. The accounting team of TPA Serbia can help you to avoid errors related to localization, data migration and user training.

Prerequisites / Initial phase

The SAP implementation strategy is, for the most part, defined by the client’s initial approach – all functions are simultaneously activated or implemented gradually over time. Given that the usual prerequisites are mapping of chart of accounts and adjustment of already developed accounting procedures of the client to domestic legislation, and given the need for more than one SAP module (eg. FI and MM) and user training, it is recommended that the transfer of business in SAP is executed gradually.

The focus of the first phase is on project preparation and forecasting the sustainability of business activities in SAP. Cooperation between SAP consultants and the accounting department is essential for the implementation phase. Understanding of accounting requirements is key to configure SAP and developing additional interfaces, which connect SAP and other software.

Localization

One of the first tasks of an accountant is to map the local chart of accounts with SAP accounts (group accounts). As the Serbian Law on Accounting prescribes the Rulebook on the chart of accounts and the content of accounts in the chart of accounts, which applies for the preparation of annual financial statements, SAP must contain Serbian accounts. For management reporting purposes, group accounts should be available in SAP as well.

Important localization segments are the following:

POPDV – The introduction of new POPDV records, when submitting VAT returns, has led to the need for a new transaction and opportunities in SAP.

In order to successfully implement the VAT records in SAP – it is necessary for the accounting department to identify the company’s business transactions and accordingly prepare the specification of tax indicators and the corresponding chart of accounts accounting ledger. Since the new POPDV records are much more complexed than the previous one, we have developed two ways of setting it up:

  1. Setting of bigger number of tax codes that cover all possible transactions that the company has. The prepared tax codes need to be mapped and correctly linked to the POPDV transaction in order to VAT records are filled correctly.
  2. By associating certain codes with document types, opening a smaller number of tax codes, and defining the document type, the field in the VAT return is determined. This reduces the number of codes but also restricts the use of certain document types. The mapped document type settings and tax code are entered in the VAT transaction.

By setting the POPDV transaction, you get a correct and quick overview of all transactions in Book of incoming invoices and Book of outcoming invoices as well as completed POPDV records that can be imported directly to the portal of the Tax Administration.

Fixed asset register – Creating of fixed assets in SAP. Accountants provide valuable information on tax depreciation rates, they classify assets by tax groups, in accordance with the Rulebook on depreciation of fixed assets recognized for tax purpose.

Data migration process

Special attention is paid to the data migration process. Initial project planning should take sufficient time for this step, due to the complexity and possible delays. All data from the old software should be adjusted before migration. Optionally, new data should be added if required (cost centers, profit centers, segments, etc.). After the transfer to the test environment (SAP quality), the accounting department reviews and confirms the correctness of the trial balance in SAP. After confirmation, the data is sent to the SAP production environment.

A prerequisite for activating the production system is detailed testing that should be performed by an SAP consultant and accountant. In addition, all key users need to go through the training program and become familiar with the plan of SAP activities they will be performing.

Once activated, the support team monitors system performance and corrects any errors that occur in day-to-day operation.

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