SAP those things - actual combat article -5- Financial localization in China

1. How to activate the SAP localization function?

A: SFW5 activates the corresponding set of Business functions, nvidia partner and starting with ECC 6.0, some specific functions delivered by SAP are not activated by default when the enhancement package is updated, but require users to choose whether to activate.

2. What are the Business function sets of commonly used SAP China localization functions?

A: The gold tax is related as follows:

FIN_LOC_CI_1: Non-HCM Localization Topics

FIN_LOC_CI_9: Country-Specific Development - China

FIN_LOC_CI_26: Golden Tax Interface for China

And the financial statements and accounting vouchers are printed as follows:

FIN_LOC_CI_11: FI,Localiz.for China, Saudi Arabia, SAP Outsourcing United Arab Emirat

FIN_LOC_CI_13: FI, Localization for China

FIN_LOC_CI_17: FI, Optimization of Financial Processes for China

FIN_LOC_CI_24: FI, Localization for China 2

China Bank-Enterprise Direct Link (EPIC) related as follows:

FIN_LOC_CI_16: FI, Electronic Payment Integration for China

FIN_LOC_EPIC_XX (XX is collectively referred to) :

FI, Electronic Payment Integration for China XX (Reversible)

Logistics integration related:

LOG_MM_SIT: MM, Stock in Transit & Actual Costing, smart waste management this is about sales and delivery on the way, which is applicable to the business that sales and delivery and sales billing are not in the same month in domestic enterprises. It can be considered as the standard issue of goods program provided by SAP, and T inventory is used to manage sales and delivery on the way

LOG_MMFI_P2P:MM, integrated material management and financial accounting, after activating this, there is an additional prepayment clearance button in the invoice verification

Other related:

EA-FIN: Financials Extension, which is also normally activated, is related to the financial extension function.

Note: S4 has an S4H always open business function, most of the above functions are activated, S4 material account is also activated by default.

3. What localization matters should foreign enterprises pay attention to when implementing SAP in China?

l language

Ø Simplified Chinese (embodied in master data such as customer, supplier, material, accounting document printing, etc.), usually need to activate the international version (alternative solution is to maintain different voice descriptions in different fields)

l Currency

Ø RMB (CNY or RMB, CNY recommended)

l Accounting subjects

For the matching between the Chinese account table and the foreign account table, it is necessary to consider the matching relation between the foreign account and the Chinese account 1:1 or N:1, not 1: N (if it is 1: N, it is necessary to enable the functional scope, it is recommended to maintain the matching relation between the foreign account, the functional scope and the Chinese account in the relevant table of the financial examination configuration). If it is 1: N, it is necessary to add the foreign account accordingly

Ø Chinese accounts should be described in Chinese and numbered according to the Accounting standards coding rules

l Foreign currency evaluation

l Accounting books

Ø Printing of accounting vouchers

Ø Balance sheet/Income statement/cash flow statement

Ø Detailed ledger (need to consider functional scope and alternative account display Settings)

Ø Cash bank journal

l Fixed assets

Ø Asset classes need to be considered for re-creation

Ø Asset depreciation method

Ø Treatment of projects under construction

Ø Land use right

Ø Residual value of assets

Ø Depreciation life

Ø Retirement of fixed assets (the Chinese side usually needs to enter the fixed assets liquidation account first)

Ø SAP solution: Set different depreciation schedule/depreciation range

l Gold tax interface

Ø SAP standard interface

Ø ABAP development interface

Ø Gold Tax interface (to be purchased separately)

l gold review and record

Ø SAP gold audit interface configuration

Ø Exported data in the foreground, processing outside the system

l Tax

Ø Value-added Tax

Ø Business Tax

Ø Consumption Tax

l Bonded warehouse

Ø Bonded materials need to be reflected and accounted for separately

Ø The customs calculates the consumption materials according to the relationship between purchase, sale and inventory and BOM

Ø The conversion from bonded to non-bonded must be declared to the customs

Ø SAP program: Split evaluation/different material number/multiple factories, evaluate and select the corresponding program according to the actual business situation.

l Free sales and samples

Ø Free sales are treated as sales and output tax is deducted

Ø Usually enter fee subjects, not COGS

l Material scrap/surplus/loss

Ø Need to do input tax transfer out (usually need to enter the pending property profit and loss account first)

If you need to configure different subjects, you need to set different assessment groups or add different movement types to distinguish different subjects

l Bank interface

ØSAP EPIC

Ø DMEE/IDoc

Ø ABAP development

All in all, mainly the differences caused by different regulations on taxation, accounting accounts, accounting books, banks and fixed assets in China need to be dealt with locally and fully considered in the localization of the implementation of foreign projects