Improving of the Tax Calculations in SAP for Ukrainian Companies

Mariya Shyhun and Andrii Zhuravel ()
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Mariya Shyhun: Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine
Andrii Zhuravel: Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine

Oblik i finansi, 2021, issue 1, 83-89

Abstract: Providing a fiscal function, tax calculations are one of the key processes in the activities of enterprises. A study of the practice of using modern software products for accounting automation showed that even powerful decision support systems such as SAP cannot provide ease, efficiency and clarity of conducting business operations in compliance with historically established tax laws and accounting procedures. At the same time, VAT calculations are the most laborious, since they significantly depend on the peculiarities of the tax legislation of each country. The article reveals the key directions for improving the process of making calculations for VAT using the SAP ERP system. Taking into account practical experience, the main difficulties in complying with the regulatory requirements of Ukrainian legislation in accounting of business transactions in SAP ERP are highlighted. The features of tracking the first event in VAT-related transactions with the display of accounting procedures on the example of product sales were disclosed, taking into account the technical features of the information system. The methodological and technical reasons for the impossibility of full automation of tracking the first event were shown, based on the practice of Ukrainian enterprises. The standard process for calculating a tax credit for VAT in the SAP ERP system was outlined. It was determined that the existing procedures not only meet the requirements of the current legislation, but also provide significant efficiency in the rapid achievement of correct reporting indicators. To expand the automation of the accounting process, authors' substantiated recommendations were provided, some of which were implemented in the SAP program, in particular, the mass creation of accounting documents in the system and the assignment of status for electronic tax documents in individual cases determined by the current regulatory framework.

Keywords: VAT accounting; VAT calculations; first event; tax credit; regulatory support; tax document; SAP ERP; decision support systems (search for similar items in EconPapers)
JEL-codes: C88 M41 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2021:i:1:p:83-89

DOI: 10.33146/2307-9878-2021-1(91)-83-89

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