2 Ways to Address Your Country-Specific Legal Requirement Challenges Using SAP Tools

  • by Kedar Muzumdar, Principal FICO Consultant, Infosys Limited
  • March 24, 2014
Learn two approaches for installation of a country version in an SAP system to meet country-specific legal requirements.
Learning Objectives

By reading this article you will learn:

  • The two approaches for implementing country versions in an SAP system to meet country-specific requirements
  • The pros and cons of both these approaches
Key Concept
A country version contains country-specific functions supplied as part of a standard SAP system. Each country version consists of generic SAP system functions, country-specific functions, and a country template. These do not constitute separate application components, but are contained in various SAP system application components. A country template contains a range of customizing settings that are typical for a particular country. The country template is applied to the sample organizational units in an SAP system when a country version is installed.

Finding the right solutions and deciding on the right approach in your SAP system to meet country-specific legal requirements have always been big challenges for most companies. Three key reasons for this are:

  • Frequently changing and complex legal requirements in some countries, such as Brazil and India
  • Lack of adequate knowledge of the available SAP tools and forums for finding the right solutions to meet these legal requirements
  • Strict and tight timelines to meet the legal requirements along with monetary and nonmonetary penal provisions

SAP provides standard country versions that contain specific functions to meet business and legal requirements. Each country version also contains a country template that can be used to set up organizational units of that country. The country template contains a range of customizing settings that are typical for a particular country.

Consider this example. Go to SPRO >Enterprise Structure > Localize Sample Organizational units or execute transaction code O035. Choose the object in screen (not shown) as Country version. Select country TR (Turkey) as an example and execute the program in test run. The output of this program is shown in Figure 1. The output shows the settings that the country template of Turkey contains are applied to the sample organizational units. Some of the key customizing settings (i.e., tables that are applied with the country template) include company code, cost center, master data, chart of accounts, financial statement, versions, credit control areas, plant, and valuation areas.

 

Kedar Muzumdar

Kedar Muzumdar is an SAP-certified FICO consultant and a chartered accountant (CA) from the Institute of Chartered Accountants of India. He has been working as a principal consultant on SAP implementation, upgrade, and support projects involving the new GL, AP, AR, material ledger, product costing, cost object controlling, and profitability analysis for the past nine years.

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Comments

3/26/2014 2:31:49 AM
Vishwanath Krishnamurthy

Dear Kedar,

Wonderful article, many thanks.

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