SAP add-on for SAF-T Norway (2020)

Standard Audit File for Tax Purposes for Norway first version was ready in March 2016. It was limited to account specification (general ledger), and supplier and customer specification (subsidiary ledger). Required fixed data was also included.

The new version of the SAF-T Financial will consist of source documents such as detailed invoice data and movements of goods and asset transactions. Furthermore, other data elements will be added to support SAF-T Financial as a format for migration of data between different accounting software. The requirement will apply to any enterprise with bookkeeping obligations who use electronic accounting systems and mandatory and in force per 1 January 2020.

'SAF-T on request’ means that tax files have to be submitted only when a tax audit is announced. The assessment period can be a month, quarter, year, or even longer, and solution should be able to submit large data sets.

What do we offer

KG has developed in its SAP environment an SAP add-on for these SAF-T Norway requirements. Our clients become the owner of the source code, and that means that no licensing model applies. Only a one time fee is due. The configuration to get the solution up and running and 12-months free maintenance support after go-live is included in that one-time fee.

Outsourcing to us of maintenance after 12 months free support is optional and will cost annually around 20% of that one-time fee.

Our solution meets the latest published tax requirements, and we have a robust process that monitors any new legal changes. We have tested the add-on thoroughly in our SAP environment to ensure that the number of transports needed to get it operational is limited.

Our test environment contains sufficient data that mirrors a standard multinational company. Besides that, we tested the output successfully via the portal of the Norwegian tax authorities. We will provide immediately the transport and documentation at the moment you have purchased our solution.

If you have operations in Norway and are interested to learn more, let us know. We can provide you with explanatory PowerPoint, and you can schedule a demo. During a video conference, we will demonstrate how the add-on works in our SAP environment. We can also show you during the video conference already our documentation from a user and implementation perspective.

A short demo

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'

Take aways 

Formal support and active involvement of senior management

Optimum process improvement or business transformations will not likely be realized by the sum of individual independent efforts.The risk is that individually everybody knows what needs to be done within his or her own area of expertise, but what is lacking is overall direction and thus progress.

Anticipate what users would want

We combine technical knowledge with industry understanding and knowhow of technologically advanced tools and methodologies available in the market or developed by ourselves.

What do we like to achieve

  • Focus on tax processes that could be improved
    • Manual process: same data requests are made by different stakeholders
  • As Is assessment
  • Anticipate future changes and the data needed
    • What are tax trends?
    • What is happening locally and what should be considered across jurisdictions where you operate?
    • Anticipate new stakeholders and their data needs or requests (internal and external)
  • Define scope and actions for short, mid and long term
  • Write business case for change
  • Realize sponsorship for implementation

‘As is’ assessment, actions and business case

  • What tax data is requested and by whom?
  • What tax process can be improved and what can be automated?
    • CIT, VAT, tax data warehouse
  • What is the Return on Investment?
    • Hard saving: process improvement
    • Meeting (new) tax requirement
  • What systems are in use: SAP, Oracle, etc
    • By which entities?
  • How many end-use computing tools (e.g. excel spreadsheet) do we have?
  • How do we avoid an ad-hoc solution?
    • Understand the bigger picture
    • Real problem and not the symptom

Risk and reward

Technology-related tax risk: understand and address the potential harms and benefits of (new) technology.

Technology tools & systems integration

Ascertaining proper IT support for ensuring efficient, timely and reliable reporting.

Change and project management

VAT should be considered in every aspect of the process, from concept through completion and beyond. Managing by design — looking at any process or transaction from end to end and factoring in all the requirements and controls essential to designing and optimizing a compliant VAT process.

Effective communication and teaming

We speak the language of the business and IT and no translation is needed.

Set up a project plan

  • Set up a project charter that will take effect preferable during feasibility but ultimately during design
  • Write a business case and problem statement
  • Define scope of the project
  • Define objectives and goals of the project
  • Involve stakeholders and define priorities
  • Set measurable milestones
  • Ensure that the right sponsors provide buy-in.
  • Identify (project) risks and how to manage them
  • Jointly validate and refine the project plan and develop a roadmap to success
  • Hold regular meeting to track progress of the various work streams