Plants Abroad functionality in SAP can be activated to handle tax issues for companies that have VAT registration numbers in more than one country.
The SAP functionality enables the use of different tax reporting countries within one company code, the use of the correct company VAT registration number for the sales invoices, the proper VAT treatment for cross border stock transfers and consignment transactions, and more accessible VAT and Intrastat reporting.
When should plants abroad be used?
-
If a company has plant/storage/warehouse locations in multiple EU countries and the company is VAT registered in these plant/storage/warehouse location countries
-
If there are intra-company transfers of goods between plant/storage/warehouse locations or in the case of consignment stocks in multiple EU countries
-
If the countries where the company is VAT registered are using different 'tax currencies.
What do we offer?
The Key Group has developed an SAP add-on solution to activate SAP's Plants Abroad functionality in a cost-efficient way and will process optimize any future maintenance efforts. This solution is based on a set of tables and program logic, with no direct impact on the MWST condition.
Via a function module in the sales order and the invoice, the add-on influences the starting parameters for the determination of the MWST condition type. The VAT determination parameters are set right before MWST is accessed. Maintenance of the MWST condition will become less complicated, and in the tables, only exceptions are maintained.
What is an SAP add-on?
An SAP add-on enhances standard SAP itself.
Add-on components are extra functionalities that do not come with the main SAP product. Different organizations have different requirements. SAP has recognized that and facilitated that additional functionality can be added and that such functionality as a component can be integrated with standard SAP.
An add-on is permitted by SAP – the code 'ABAP' is written and transported where SAP allows it. That means these add-on components sit above the core and access the same dictionary objects or repository objects and perform the required functionality. It contains custom authorization objects according to SAP standards.
SAP add-on solutions are, therefore, without an external interface or external software and can be implemented with minor or no SAP impact in any other area. An SAP add-on does not change the programming code of SAP. As a result, SAP upgrades do not lead to any problems, and maintenance is straightforward.
Additional functionality is added to standard SAP:
'User-friendly, manageable, scalable, extendable, upgradeable, reliable, sustainable, SAP integrated, VAT compliant, audit trail'