SAP Control for VAT Compliance

18th-19th May 2011

The Millennium Knightsbridge, London

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Why this event?

You can only have a clear VAT compliance process with strong internal controls if SAP is set up correctly. But to achieve this, your tax, accounting, SAP and IT teams need to work together. In addition, you need to know where your SAP capabilities and limitations lie, and what areas to customise to comply with the many rules and reporting regimes that exist across Europe.

What will we be discussing? 

With incredible insight from end users and SAP simulation exercises with world-leading consultants, you will be perfectly placed to leap towards 100% VAT compliance across Europe. Here are ten ways that this event can help you secure VAT compliance:

1. Be clear what SAP can and can’t do in respect of VAT
2. Unravel the complexity of VAT and design SAP VAT logic from scratch
3. Identify slicker ways of controlling complex scenarios in SAP
4. Master the ‘plants abroad’ functionality for easier reporting
5. Improve intrastat reporting accuracy
6. Manage VAT rate changes smoothly in SAP
7. Process the correct date of supply of goods or services
8. Increase the accuracy of VAT coding on AP transactions
9. Manage your master data more effectively for enhanced VAT reporting
10. Handle known and unknown risks driving non-compliance

How do I register?

Secure your place by registering register now. And if you book before Friday 1st April, you qualify for a significant £400 saving. If your SAP and VAT teams attend together, then look out for our special joint ticket for £1,777 + VAT.

We anticipate places will go quickly as this topic is at the front of VAT professionals’ minds. So contact me on +44 207 337 2290 or susie.west@sharedserviceslink.com to reserve your place.

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Day one - Wednesday 18th May 2011

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08.00 Registration and coffee

08.30 Where are you against your peers?
In this opening session, Susie West and Ryan Ostilly will share the findings from your pre-conference benchmarking survey. Discover how unique your challenges are and what common issues you and your fellow delegates are facing.

Susie West, CEO, SHAREDSERVICESLINK.COM
and
Ryan Ostilly, Commercial Director – Tax Technology, MERIDIAN INTERNATIONAL VAT CONSULTING

09.00 Opening keynote: A perspective from SAP AG
Hear directly from Lars Gartenschläger, Product Manager for SAP ERP Financials, who will give an overview of SAP’s perception of their customers’ needs, an insight into some of their VAT development challenges, as well as the increased focus that national tax administrations are placing on auditing ERP system data. During this session, Lars will focus on:

• The development challenge associated with extending the tax code from a 2 character to a 4 character field
• SAP’s perception of customers’ wishes
• Market trends from SAP’s point of view

Lars Gartenschläger, Product Management Financials, SAP AG

09.45 Dealing with complex VAT scenarios
In this session, Alexandra Vale, European VAT Director from Chemtura, will map out a number complex business flows typically found in a multinational company to explain and derive the correct VAT treatment. We will challenge you to use your own experiences to solve some of VAT’s most complex and high-risk scenarios, and to debate with the industry’s leading VAT minds. This intensely practical session will help you apply the knowledge you gain directly into your organisation.

Overview of topics discussed:

• Domestic reverse-charge – understand the key differences in application between European Union member states, and learn how this is impacted depending on whether the seller and/or buyer is VAT registered in the destination country
• Complex supply chain – review complex supply chains and how these are mapped in SAP, including triangulation, and learn how variation in application between member states impacts the VAT treatment
• Indirect exports – what are your obligations if a customer picks up goods from your plant but seeks a VAT exemption? Understand the legal provisions and how to ensure that you comply
• Invoice layout – what is the optimal way to design your billing documents to ensure that such complex flows meet both legal and commercial requirements?

Alexandra Vale, VAT Director Europe, CHEMTURA MANUFACTURING UK LTD
and chaired by
Paul Quigley, Director, MERIDIAN INTERNATIONAL VAT CONSULTING

10.30 Morning coffee

11.00 Interactive discussion: How to handle ‘plants abroad’ functionality in SAP and avoid common mistakes
The ‘plants abroad’ functionality has been designed by SAP for organisations that have warehouses or distribution centres in other EU countries. It enables easier reporting of VAT and Intrastat declarations enabling VAT and Intrastat postings for intra-company, cross-border stock transfers. Drawing on his practical experiences at Philips, John Lambourne will focus on how to activate and implement ‘plants abroad’ functionality in SAP and will examine some of the known and unknown risks.

Overview of topics discussed:

• Activating ‘plants abroad’ in SAP
• Cross border – intra-company stock transfers
• Interface between sales and distribution
• Sales process from a ’plant abroad’
• VAT return report and EC sales list

John Lanbourne, SAP VAT Project Lead, PHILIPS CONSUMER ELECTRONICS BV

12.00 Breakout sessions – join the roundtable discussion most relevant to your business

Roundtable 1
How to manage VAT rate changes in SAP quickly and effectively
In the UK alone, there have been three VAT rate changes in the past two years. As companies have to create new codes in their VAT tables with each new rate they are finding smarter ways to update their SAP systems. Discuss and compare best-practice approaches so you can handle future rate changes smoothly across Europe.

Julian Ogden, Indirect Tax Controller, UNITED BISCUITS

Roundtable 2
How to process the correct date of supply of goods or services in SAP
Getting the correct date of supply is crucial for invoices, especially in response to changes to VAT rates and rules. Understanding the technical VAT implications in the context of your business is only part of the challenge. Understanding how you can implement these changes efficiently with robust cut-over and transition logic in SAP may take the lion’s share of your burden... or should it?

Franz Pauer, VAT Manager, DEERE AND COMPANY

13.00 Networking lunch

14.15 VAT compliance in SAP: identifying unknown risks and best-practice solutions
What’s unique: There’s no use teaching you what you already know. In this session we will start by reviewing some of the known shortcomings of using standard SAP to manage your VAT logic and compliance processes, and then uncover the unknown VAT compliance risks specific to SAP. We will focus on practical examples of when these risks arise and how they should be mitigated. 

Part 1) Interactive discussion: Known limitations in SAP and the need for customisation (30 mins)
There are some gaps in standard SAP functionality that will inhibit you from being VAT compliant. How do you quickly identify the common limitations and what strategies are available for customisation today?

• Understand what SAP can’t do in respect of VAT
• Determine your requirements and possible shortcomings of an out-of-the-box solution
• Evaluate available solutions and smart workarounds to plugging the gaps

Robert Hele, Tax Design Lead – FVC Global SAP Deployment, BP

Part 2) Case study: How to mitigate known risks in VAT compliance with SAP (30 mins)
Sometimes it is practically impossible to be 100% VAT compliant. There are powerful tools out there to help you balance the resources you require to be VAT compliant with acceptable levels of risk for non-compliance.

• Using the Business Warehouse tool for monitoring risk areas such as tax-code verifications
• Transforming efficiency and sharpening focus on VAT compliance by identifying and treating the root cause of errors
• Key tips to use in your project methodology covering your business case, stakeholder engagement and training programme

Hans WyndaeleIndirect, Tax Assistant Manager, STATOIL COORDINATION CENTRE
and
Steven Verstrepen, Indirect Tax Assistant Manager, STATOIL COORDINATION CENTRE

Part 3) Identifying and resolving the unknown risks driving non-compliance (30 mins)
Roger Lindelauf draws on over 23 years’ experience as an SAP consultant specialising in VAT design architecture and solutions. Roger will provide deep insight into some of the unknown VAT compliance risks that exist in an SAP environment and offers his advice on addressing them. Topics covered include:

• Incorrect use of the VAT partner functions and VAT ID numbers
• Incorrect tax departure country
• Risks and shortcomings in dealing with triangulation and domestic reverse-charge flows
• Incorrect invoice number ranges for multiple VAT registrations
• Lack of functionality for managing fiscal and VAT groups
• Lack of functionality for managing VAT warehouses and bonded flows

Roger Lindelauf, SAP VAT Lead, MERIDIAN INTERNATIONAL VAT CONSULTING

15.45 Afternoon refreshments

16.15 Efficient Intrastat reporting in SAP
Statistical declarations (or Intrastats) are often a reporting nightmare for many organisations. As VAT generally follows the invoice path and Intrastat follows the flow of goods, there is a fundamental difference in application, which produces discrepancies that are hard to reconcile. Throw in myriad rules and reporting regimes across the EU zone and the need to structure Intrastat reporting in SAP is a crucial success factor.

During this session, Gillian Tomlinson from Kerry Group will share her views on the challenges of improving Intrastat reporting accuracy. Kees van Westerop will explain how he tackled the problem and implemented best practice Intrastat reporting solutions at both Philips and Dow Corning. Take away the critical success factors that will make your organisation’s Intrastat process more efficient and compliant.

We will discuss:

• Identifying sources of error and differences
• Different reporting rules
• Customising a solution in SAP
• Reconciling Intrastats with the VAT return
• Critical success factors

Gillian Tomlinson, UK Tax Manager, KERRY GROUP

17:15 Chair’s close

17.30 The speaker clinic

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Day two - Thursday 19th May 2011

08:45 Top tips learnt from day one

Ryan Ostilly, Commercial Director – Tax Technology, MERIDIAN INTERNATIONAL VAT CONSULTING

09:15 Interactive discussion: Tackling VAT determination on AP invoices – from chaos to control
VAT errors associated with booking AP invoices can significantly increase the risk of VAT non-compliance. This session will explore how VAT professionals have used both manual controls and system automation in different environments to transform the accuracy of VAT coding on AP transactions towards 100%. Each discussion leader will share key tips and details of their control issues in their different environments:

Approach 1: Manual procedures to tighten controls (25 mins)
P&G will discuss how it has structured its processes and VAT knowledge management around SAP to ensure that AP invoices are analysed and booked correctly for VAT purposes.

Belinda Buvens, Global Tax Compliance Service Manager, PROCTER & GAMBLE

Approach 2: Automation through customising SAP (25 mins)
Vodafone will share how it has configured SAP to automate the selection of tax codes for AP transactions by using the ‘condition record’ technique.

Reka Komaromi, EVO VAT Manager, VODAFONE, VOCH HUNGARY

Approach 3: Automation through external tax engine (25 Mins)
Caterpillar has decided to use an external tax engine to manage the VAT determination on its AP invoices and is in the designing and testing phases. Patricia will share what prompted Caterpillar to opt for an external solution and provide practical insight as to how the external solution compares with the status quo, as well as early success and pain indicators.

Patricia Oakley, VAT Process Improvement Manager, CATERPILLAR

10.45 Morning coffee

11:15 Interactive discussion: Maintaining your master data for effective VAT reporting
“You only get out what you put in” – managing your master data effectively is essential to producing timely and accurate VAT reports. How are companies doing this well and what tips could help you?

Hugo Vissers, VAT Department, LYONDELLBASELL INDUSTRIES

12:00 Designing complex VAT logic in SAP – a step-by-step, best-practice approach
What’s unique: This is your opportunity to design SAP VAT logic from scratch based on the complex scenarios discussed and mapped out on day one.

During this session, we will design and build SAP logic around a set of complex business flows, evaluating options for achieving the best results. We will talk to a panel of industry and consulting experts who have done this many times over. See how standard SAP manages complexity and explore ways of overcoming limitations either by opting for a complex set of access sequence steps or writing bespoke user exits. Challenge the presenters, share your own techniques and contribute to a session that will benefit both VAT and SAP professionals.

Part 1: Business-flow blueprinting
How to integrate VAT requirements in the blueprint of your SAP roll out VAT issues with SAP often occur because they are only considered after the design and scoping phase of your ERP implementation. If you are rolling out SAP to other countries or migrating to a new system, which elements must you include in your plan to minimise these problems post go-live?

• Translating business flows to VAT requirements
• What stakeholders should be involved in the process?
• Handing over business requirements to the build team

Hoyrin Cheung, Business Analyst, PPG INDUSTRIES
and
Remco Dewaerheijt, VAT manager, PPG INDUSTRIES

12:45 Networking lunch

14:00 Part 2: User-acceptance testing exercise – find out where issues lie with standard SAP logic
Following on from part 1, we will walk through the SAP sales orders that are set up against these flows and execute them based on a standard SAP tax logic design in a simulated user-acceptance testing exercise (UAT).

We will then review:

(i) How SAP determined the key tax characteristics, including reviewing:

a. Which partner function was used as the ’customer’ for VAT purposes

b. MTC and CTC

c. Customer VAT ID number

d. Departure country

e. Destination country

(ii) Accessing VAT logic routines by looking at:

a. Access sequences and their associated requirements (007, 008)

b. Condition records

c. VAT codes

(iii) How to structure the billing document

(iv) Whether this would pass the UAT

For all flows that fail the UAT (and were not VAT compliant), we identify where the SAP logic was flawed. We will discuss how to design a suitable solution to cope with the complexity in part 3.

Roger Lindelauf, SAP Consulting Lead, MERIDIAN INTERNATIONAL VAT CONSULTING

15:15 Afternoon refreshments

15.45 Part 3: Customising SAP to cope with complex logic
In this interactive panel we will simulate an SAP system-design workshop to create a solution for the flows that failed the UAT in step 2. This session will present a number of design options and case studies that companies have implemented including:

(i) Adding more fields complexity to the access-sequence steps and condition records

(ii) Hard coded user exits

(iii) Flexible user exits based on reference tables

(iv) Other solutions

Our panel of experts will present the solutions that they have implemented within their organisations, and explain the structure and logic of how this works. Delegates are encouraged to share their views. We will present a revised tax logic in a simulated SAP environment and re-test the complex flows using improved and enhanced SAP design.

Facilitators and panel experts:

Roger Lindelauf, SAP VAT Lead, MERIDIAN INTERNATIONAL VAT CONSULTING
Ryan Ostilly, Director - Tax Technology, MERIDIAN INTERNATIONAL VAT CONSULTING
John Lambourne, SAP VAT Project Lead, PHILIPS CONSUMER ELECTRONICS BV
Robert Hele, Tax Design Lead - FVC Global SAP Deployment, BP 

17:15 Chair’s summary

17:30 The speaker clinic 

17:45 Close of conference

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Prices available for this conference

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Package	Really Early bird Registered & paid by 1st April 2011	Early bird Registered & paid by 29th April 2011	Standard price
Standard conference	£999 + VAT	£1,199 + VAT	£1,399 + VAT
Special Joint SAP and VAT ticket This ticket is for teams of two only where the delegates represent IT and VAT			£1777 + VAT