From a VAT perspective, it is crucial to ensure a proper system setup for accurate outbound and inbound tax determination. Incorrect outbound tax determination can lead to issues with inbound tax data processing through EDI.
A critical aspect is to review the specific EDI mapping used, as it determines the tables involved in tax information exchange. If essential data combinations from outbound flows are missing in the EDI table, the process may fail, causing invoices to be stalled or processed with incorrect tax determination.
Remediation should involve not only updating the EDI table with the necessary combination keys but also undertaking a thorough tax perspective review of the entire transaction. This includes analyzing all parties involved, tax jurisdictions, and applicable VAT rates to prevent incorrect tax determination on outbound invoices.
Another area of concern is the design of the SAP EDI table for tax determination, which must accommodate various business scenarios and ensure accurate tax calculation in compliance with local regulations. For instance, in intra-EU acquisitions, multiple VAT rates may apply based on product classification.
To prevent EDI failures in SAP, it is essential to regularly monitor and maintain the EDI configurations, ensure data quality, test connections with external partners, stay informed about EDI standards updates, and promptly address any system or connectivity issues.