Maximizing SAP S/4HANA Strategies to Improve Tax Automation

Companies embarking on the migration journey to SAP S/4HANA face a crucial deadline, 2027, which necessitates a thoughtful and strategic approach to cloud migration rather than merely a technical one. While SAP S/4HANA offers increased compatibility and cloud-based functionality, many businesses are apprehensive about its downstream effects on tax and business operations.

To make the most of their cloud transformation, many organizations are leveraging either RISE with SAP or GROW with SAP – SAP’s single-source bundles that include an array of technology and services that provide business transformation services to those embarking on the move to SAP S/4HANA.

While these options provide important tools for SAP organizations, they rarely address tax functions or the need for tax automation to take full advantage of their new S/4HANA cloud environment. Considering tax and tax automation tools from the outset is often paramount to maximizing ROI, streamlining technical and operating workflows, and enhancing scalability.

Making Tax a Foundation of the Cloud Journey

One of the most important considerations for companies during the digital transformation to SAP S/4HANA is the inclusion of automated and updated tax rates and calculation formulas tax, sourcing logic, and precise tax determination across the supply chain. Vertex, a long-standing and trusted SAP partner for over 25 years, provides proven solutions that integrate cleanly with SAP applications, extending their core features and functionality and align with SAP’s Clean Core strategies.

The Vertex O Series tax engine simplifies SAP tax code setup, jurisdiction assignment, chain flow processing, and more automating rate updates, calculation formulas, tax determination content, and decision models, providing tax result visibility at the right level of granularity and significantly reducing manual IT burdens with  tax team flexibility allowing the business to scale.

Vertex provides a system capable of managing intricate tax decisions within business processes and integrating smoothly into transaction workflows. Vertex solutions are SAP-validated, endorsed, and available via the SAP Store. Vertex’s software is built and backed by a dedicated team of expert SAP developers, consultants, and support specialists, ensuring robust customer experience and support from implementation into the future.

Vertex is an SAP Endorsed application provider, meaning they are premium certified by SAP to integrate with a wide range of SAP solutions, including SAP ECC, SAP S/4HANA, SAP S/4HANA Cloud, SAP Business byDesign, SAP Ariba, SAP Ariba CIM, and SAP Commerce Cloud.  Vertex delivers accurate up-to-date tax content, automated tax calculation, and reporting specifically built for tax and finance.

Accelerating the Move to the Cloud

A key part of Vertex’s offering for SAP S/4HANA is their Accelerator+ component. This part of their solution is specifically designed to support tax transformation within SAP environments. It is certified for integration with RISE with SAP S/4HANA Cloud, reinforcing Vertex’s commitment to helping businesses manage tax complexity during modernization. Accelerator+ makes it easier to manage global indirect tax locally, facilitating cloud transformation initiatives inclusive of tax, and lays a solid foundation for SAP S/4HANA migration.

The key capabilities and benefits of Vertex Accelerator+ for SAP ERP include:

• Unified Tax Management Interface: It provides a centralized user experience for managing tax configuration, utilities, and reporting directly within SAP ERP.
• Global Visualization and Reporting: Features such as intelligent VAT chain flow visualization and curated reporting tools built for tax and finance simplify governance, improve process, and Reveal tax impacts across transactions and geographies with ease. In addition, tax result visualization allows SAP users to quickly view liabilities without leaving the SAP workspace. Quick answers to inquiries that can take hours or days otherwise.
• Support for Scalable Global Growth: The solution empowers businesses to expand across borders with fewer configuration hurdles by allowing the use of a single company code for VAT and U.S. sales tax.
• Flexible Deployment Options: It delivers enhanced functionality supporting Vertex O Series with add-on options for a lighter weight deployment.  If concerned about performance, hardware, volume, failover, or data security and residency, Vertex can meet your architecture and tech stack requirements with an answer.  Multiple deployment options and flexibility include native SaaS, Private cloud, On-premise, and Edge options.

What This Means for SAPinsiders

Integrate tax automation into your transformation journey. By treating the SAP S/4HANA migration and tax automation as a holistic game plan, companies can confidently navigate global tax demands, accelerate their transformation, and ensure continuous compliance while powering growth.

Tax determination requires collaboration from the entire team. To successfully integrate tax automation, it’s vital to address non-technical challenges like data quality, skills gaps, and process optimization. A critical component is the proactive alignment of finance and tax groups with IT. This collaboration is crucial for building a strong business case for including a tax engine in your business transformation.

Empower people through technology. With tax regulations, rules, and rates constantly in flux, tax teams cannot keep up by relying on outdated manual methods. Leading SAP organizations work with partners like Vertex to adopt tax automation solutions that reduce the risk of errors while freeing up tax teams to spend their time on other important tasks that help them to meet their business goals.