Deloitte's SAP PaPM tax provisioning accelerator
Level up the efficiency of direct tax processes with Deloitte tax accelerator in PaPM
As part of a S/4HANA transformation, organizations are generally investigating how SAP can enhance their tax accounting process. Developed by Deloitte, the PaPM tax accounting accelerator efficiently deploys a tax accounting and reporting solution in SAP PaPM, performing IFRS tax accounting calculations using data from multiple sources, and can be adapted to support the US GAAP approach. This accelerator not only saves hundreds of hours in design, build, and testing efforts but also provides a scalable, user-friendly, and easy-to-maintain solution.
Deloitte's SAP PaPM Tax Solution: Simplifying Calculations
Deloitte’s content on the SAP PaPM platform provides a solid starting point to automate tax accounting calculations based on S/4 data or other external data sources. Leveraging two decades of experience in tax accounting solutions, Deloitte has developed a tax solution in PaPM that incorporates standardized best practices and pre-built calculations for current and deferred taxes, including predefined schedules, workflow templates and insightful dashboards.
Curious to see what this tax solution could mean for your organisation? Reach out to our expert Niels Zuurbier.
User Interface examples
What benefits does it have?
Designed to address tax provisioning needs, the Deloitte tax model in PaPM handles large data volumes and various processing requirements, ensuring optimal performance. With clear guardrails in place to maximize key benefits, our solution provides:
- Standardized process: The solution effectively meets the tax provisioning needs of different companies by using a standardized process as its base.
- Flexibility: Easily adaptable by super users, such as making changes to hierarchies, ensuring seamless adjustments.
- User-friendly templates: Maximized user-friendliness for intuitive and easy use.
- Centralized data repository: Consolidates tax-relevant (SAP S/4HANA) data into a centralized repository, leading to accurate current and deferred tax calculations.
- Seamless integration: Fully integrated into the SAP landscape.
- Implementation efficiency: The standard model saves hundreds of hours in design, build and testing efforts, allowing you to focus on your specific requirements.
- Scalability: Ensures a scalable fundament, providing a solid foundation for further tax automation, like Pillar Two or country specific calculations.
What does it do?
Since we believe that integration between finance and tax processes is the key to successful deployment of tax systems, our solution provides a starting point to automate the end-to-end tax provisioning process, significantly reducing operational workload, and freeing the tax team to focus on strategic activities. The solution adapts to the client's business requirements by seamlessly integrating with SAP S/4HANA, third-party tools, or Excel file uploads.
Designed to fully integrate with your existing systems, the solution includes pre-configured tax schedules, and workflow templates. Key functionalities consist of:
- Identification and classification of temporary differences.
- Carryforwards schedules for tax losses and tax credits.
- Valuation allowance or deferred tax not recognized.
- Apply automation were possible for calculating current and deferred taxes.
- Calculation of the effective tax rate.
- Suggestion of the journal entries to be booked.
As the final step, the tool automates the generation of journal entries based on calculated results, allowing documents to be posted from PaPM to S/4HANA or S/4 Group Reporting.
While the solution is packed with robust, ready-to-use features, it remains flexible enough to accommodate client-specific needs. Based upon our two decades of experience with implementing tax accounting solutions across the globe, we also maintain a global content library that we can leverage to add additional functionality on top of this robust foundation. Additional functionality could be, for instance, uncertain tax positions, cash tax, interim reporting and Pillar Two calculations.
How does it work?
Technology Stack
- SAP PaPM calculation engine utilizes the modern SAP HANA in-memory technology, capable of processing large amounts of data in a very short time.
- SAP PaPM can be deployed on alongside S/4 HANA or as a standalone solution, available both in premise or in the cloud.
Integration into SAP Landscape - The built-in standard integration with S4/HANA systems as well as interfaces to non-SAP solutions ensure that your tax processes are integrated into the IT landscape of your organization.
Solution deployment
- The Deloitte tax accounting accelerator can be easily deployed and customized to the specific needs.
- User interface can be enhanced with advanced SAC reporting dashboards or custom Fiori applications.
System maintenance
- Complex calculation rules can be implemented without coding, significantly speeding up change management after go-live.
- As part of the implementation, we ensure that super users have the required knowledge to maintain the solution themselves.
In summary, what value does it deliver?
- Deloitte’s PAPM tax accounting accelerator integrates neatly with the SAP landscape.
- It provides a standardized approach and centralized solution for tax reporting.
- It provides valuable insights for decision-making and strategic planning based on real-time data.
The model's flexibility ensures that the solution can effectively meet the tax provisioning needs, now and in the future.
