Sabrix SAPSabrixTechnicalTraining

SAP / SabrixIntegration Fundamentals

January 2007

Course Overview Diagram

Basic SAP R/3

Overview

Sabrix Products and Technical

Overview

SabrixConnectionfor SAP with

SAP Standard Tax Interface

The life of a Purchase Order

(MM)

Getting Jurisdiction Codes from

Sabrix

The life of a Sales Order

(SD)

Remote Function Call

Breakdown

SabrixConnectionFor SAP

Configuration Breakdown

SAP Tax InterfaceConfiguration

Breakdown

Misc Vendor And Customer

Invoices(FI)

Sabrix Basic Configuration For Testing

Only

Tax Policy Configurations

In SabrixQ & A

http://www.sabrix.com/index.html


Basic SAP R/3

Overview

Sabrix Products and Technical

Overview




(MM)


Sabrix


(SD)


Breakdown




Breakdown


Invoices(FI)

Q & A


Only


In Sabrix


Sabrix Integration with SAP


SAP Modules that Integrate with Sabrix

SD Sales and Distribution – from order to delivery, including RFQ Sales orders Pricing Picking (and other warehouse processes) Packing Shipping

MM Materials Management – underpins the supply chain, including Requisitions Purchase orders Goods receipts Accounts payable Inventory management BOM’s Master raw materials, finished goods etc

FI Financial Accounting – essentially your regulatory ‘books of record’, including General ledger Book close Tax Accounts receivable Accounts payable Consolidation Special ledgers



Sabrix Products and

Technical Overview

Basic SAP R/3

Overview




(MM)


Sabrix


(SD)


Breakdown


Invoices(FI)




BreakdownQ & A


Only


In Sabrix


The Sabrix Solution


The Sabrix Solution – Product Breakdown

Tax Research Maintained by Sabrix

Tax Control Panelfor Tax Policy Configuration

Workbench forTransaction Modeling

Extract for Returns Processing

Consolidated Reporting

Financial Dashboard


• JavaScript

• HTTP Server• WebContainer

• servlet• JSP

• JDBC

• UI Components• Tax Content• Tax Configuration• Tax Audit

Technical Architecture

4 Tier ArchitectureWith their components

Web Browser

Web Server

Application Server

Database Server


XML viaHTTP or HTTPS

Invoice object

JDBC

HTML

Application Server

JavaScript

Sabrix Technical Architecture

Putting it all together

JavaScript

Web Browser

J2EE 1.4 App ServerOracle10g Application Server BEA WebLogic, WebSphere,

JBoss

Database Oracle RDBMS 10g, IBM DB2,

SQL Server

HTTP Server

Database Server

SAP Business

Applications

Sabrix US Tax data Sabrix VAT data

UI meta-data, Customer data, Audit data

Java Server Pages

Servlet Container

Web Pages

Controller

Universal Tax Engine

EJB Container

UI

SabrixC

onnection


Sabrix Centralized - Consolidation

SiebelCRM

Legacy Invoicing

Oracle Financials

SAP SRMSAP ERP SAP CRM SAP Mobile B2B

J2EE 1.4 App ServerOracle 10g, BEA WebLogic, IBM WebSphere, JBoss



SabrixConnectionFor SAP with SAP Standard Tax Interface

Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(MM)


Sabrix


(SD)


Breakdown


Invoices(FI)




BreakdownQ & A


Only


In Sabrix


SabrixConnection for SAP Architecture High Lights

The SabrixConnection is a Java application that creates and transmits a simple XML structure over standard HTTP protocols.

Utilizes Java technology combined with Sabrix’s XML integration layer to connect with these SAP applications through SAP’s Java Connector (JCo): R/3 3.0* and higher mySAP CRM 2.0B and higher mySAP Mobile Client 4.0 and higher

One SabrixConnection code base supports integration with SAP R/3, CRM, and Mobile Client.

The SabrixConnection is a data transport mechanism only – contains no embedded tax or calculation logic.

No special tax or calculation logic is required within SAP.

The SabrixConnection can exchange standard SAP predefined data elements plus 40 additional line-level, customer-defined transaction data between SAP and the Sabrix Solution.


The SabrixConnection for SAP at Customers


http://www.dteenergy.com/

http://www.corporate.basf.com/en/?id=Uwtvs5CgMbcp1tJ

Standard SAP Sales & Use Tax Interface System to 3rd party tax packages:

SAP provides a Standard Tax Interface System, which is capable of passing all needed data to an external tax system which determines tax jurisdictions, calculates taxes and then returns these calculated results back to SAP. This occurs during master data address maintenance to retrieve the appropriate tax jurisdiction code and during order and invoice processing out of FI, MM, and SD, to retrieve tax rates and tax amounts. The Tax Interface System also updates the third party’s software files with the appropriate tax information for legal reporting purposes.



SAP Integration with Sabrix


SAP Integration with Sabrix


SabrixConnection for SAP

R/3 Applications

A/R

Sales Distribution(SD)

Financials(FI)

A/P

OE

Invoicing

Materials Management(MM)

Purchasing

Java Runtime

Environment

Sabr

ixC

onne

ctio

n

SAP

Tax

Inte

rfac

e

LIV

Goods Movement


SAP Tax CalculationA simplified view

Customer / VendorMaster Data•Tax relevant info•Partner details

Material Master Data•Tax relevant info•Material details

Other Master Data•Tax relevant info

Condition Tables•Tax Code•Prices/Discounts

Business Transaction

Tax / Pricing Procedure•Tax Attributes•Tax Call•Tax Rates / Values

Call to Sabrix

Resultsfrom Sabrix

Transaction Partner Data•Vendor/Sold-to•Ship-to/Ship-from

Transaction Item Data•Materials•Quantities•Locations•Prices




Breakdown

Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(MM)


Sabrix


(SD)



Invoices(FI)




BreakdownQ & A


Only


In Sabrix


SAP Remote Function Calls (RFC)


There are four types of Remote Function Calls (RFC) made from SAP through the SAP Tax Interface System to Sabrix.

RFC_DETERMINE_JURISDICTION Used to call Sabrix for a Jurisdiction Code

RFC_CALCULATE_TAXES_DOC Used to call Sabrix for tax rates and tax amounts

RFC_UPDATE_TAXES_DOC Used to call Sabrix and update Sabrix Audit with the tax rates and tax

amounts

RFC_FORCE_TAXES DOC Used to call Sabrix and when SAP and Sabrix’s tax rates and tax amounts

do not match… SAP forces the SAP posting and the Sabrix Audit Data to match the amount SAP shows for rate and amount. SAP always wins.

These RFC’s hold the SAP structure for the fields needed in determining Jurisdiction Codes or Tax Calcs in Sabrix.

SAP Predefined RFC’s


RFC_DETERMINE_JURISDICTION

This is the predefined function that calls Sabrix to get a Jurisdiction Code for a new or an updated master address record. This is the part of the Integration which handles Address Management to support Jurisdiction Codes.

It calls the Sabrix Address Validation Servlet with address data and once Sabrix finds the appropriate jurisdiction, that data is returned to SAP in the form of a predefined code which is then stored on the master record.

Jurisdiction Codes:

US – USTX7506713480 (CountryState|Zip|Plus4|In/OutCityInd)

CAN – CABC (Country|Province)

Other – SG (Country)

Address Selection


RFC_CALCULATE_TAXES_DOC

This is the predefined function that calls Sabrix to get Tax Rates and Tax Amounts.

The Jurisdiction Code is sent rather than address details.

Transactions triggering a Tax call use this RFC:

Order to Cash (Sales & Distribution, SD) – sent per document

Purchase to Pay (Materials Management, MM) – sent per line

This call does not get audited in Sabrix.

Get Tax Rates & Amounts from Sabrix


RFC_UPDATE_TAXES_DOC

This is the predefined function that calls Sabrix to get Tax Rates and Tax Amounts when transaction is posted to the GL in SAP.



Order to Cash (SD, FI-AR Posting) – per document

Purchase to Pay (MM, FI-AP Posting) – per line

This call does get audited in Sabrix.

Post Tax Rates & Amounts from Sabrix


RFC_FORCE_TAXES_DOC

This is the predefined function that calls Sabrix to get Tax Rates and Tax Amounts and when those rates deviate from the data in SAP, this call will change the tax results in Sabrix and audit the SAP determined rates and amounts.



Order to Cash (SD, FI-AR) – per document

Purchase to Pay (MM, FI-AP) – per line

Record to Report (FI-GL) – per line

This call does get audited in Sabrix.

Change Tax Rates & Amounts from Sabrix




Sabrix

Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(MM)


Breakdown


(SD)



Invoices(FI)




BreakdownQ & A


Only


In Sabrix


Jurisdiction Code Assignments

This section of the SAP / Sabrix Integration program covers the RFC_DETERMINE_JURISDICTION. This is the predefined function that calls Sabrix to get a Jurisdiction Code for a new or an updated master address record. This is the part of the Integration which handles Address Management to support Jurisdiction Codes.

SAP calls Sabrix’s Address Validation Servlet to obtain a Jurisdiction Code.

New Customer / Vendor record creation requires Jurisdiction Code

SAP sends Jurisdiction Code in place of full address for tax results

Master records that contain an address requiring Jurisdiction Codes include:

Customer Master Vendor Master Plant Cost Center Company


What is a Jurisdiction Code?

A Jurisdiction Code is a 15 digit (maximum) code which represents an entire address.

For US addresses, it includes Country code, State code, Zip code, Plus 4 code and an in city or out of city limits indicator. In Canada, it includes only the Country code and the Provincial abbreviation code. The Jurisdiction Code structure for US, Canada and all other countries is defined by the following tables:

United States Structure (procedure TAXUSX)

Country & State (4)

Zip Code (5) Location (4) Indicator (1)

USNY 14744 8703 0The two character country code and two character US state combined.

The five digit US zip code.

The four digit US plus four data. *If null, Sabrix changes to XXXX as a placeholder.

The indicator on whether the address is located within or outside city limits. 0 = in city, 1 = out of city.

Note: Why use XXXX as the placeholder for a null Plus 4? Because 0000 and 9999 are valid Plus 4’s in the United States! SAP requires data in those positions and XXXX is not a valid Plus 4 anywhere that we could find!


What is a Jurisdiction Code?

Canada Structure (procedure TAXCAX)

Country (2)Province Code (2) Not Used (0) Not Used (0)

CA BC

The two character country code for Canada.

The two character Province abbreviation.

All Other Countries Structure (procedure ZTAXxx) [xx represents Country Code or EU for European Union countries]

Singapore Structure (procedure ZTAXSG)

Country (2)Not Used (0) Not Used (0) Not Used (0)

SG

The two character country code for Singapore.


Quick Review

3. How would the following address be represented as a Jurisdiction Code? Daphne, AL 36527 USA

4. What about Vancouver, BC, V5Y 1V4 CANADA?

5. One more… Z400 70546 Stuttgart, Germany

6. What component of the Sabrix Application Suite is called to obtain a Jurisdiction Code?

1. What type of data in SAP requires Jurisdiction Code creation?

2. What does a Jurisdiction Code represent?


Address Evaluations

Using Sabrix Zones to determine taxing jurisdictions

The source system holds the customer or vendor addresses and when transactions are sent to Sabrix, the Zone tree is used to determine Country, Province/State, County, City and District level details from the address data sent.

Look up Plus 4 of 4005 in Montgomery, Alabama to show Zone Tree lookup. Sabrix Solution Login

Look up Zip code 36043 in Montgomery, Alabama to show Zone Tree lookup. Sabrix Solution Login

Sabrix found the zip code in Alabama, but because there was no other data sent Sabrix used the default attached to that zip code which determined the jurisdiction to reside in an unincorporated area in Lowndes County. In this case, the zip code determined is outside of the city limits, so no city sales / use tax would apply.

This example uses the Sabrix Calculation Servlet, where it finds the closest match possible using defaults set on zones in cases where multiple addresses might be valid. We’ll discuss why this is important later.

http://ec00290:8888/sabrix



Zone Tree Lookups – Global

Zones outside of the US generally require less data to resolve to the correct taxing jurisdiction. Since most countries assess VAT at the Federal level, sending Country level address information to Sabrix generally all that is required.

Exceptions are Countries such as Canada, which also has Provincial level tax; Brazil, India, Mexico, which have State and City level VAT; and areas within a country that are excluded from the local VAT regime. Example includes the Copenhagen Free Port Zones in Denmark.

Look up Copenhagen, Denmark to show Zone Tree lookup. Sabrix Solution Login



Address Validation Servlet

The SAP Jurisdiction Determination function calls the Sabrix Address Validation Servlet, which behaves slightly different on the US side then the Calculation Servlet zone lookup as described above. The difference being in the goal of the function.

Calculation Servlet takes data given in the address and determines the most accurate jurisdiction possible. Default zones are used when less granular information is involved in the transaction.

Address Validation Servlet finds the most accurate jurisdiction given the information in the transaction. However, rather than settling on the defaults when multiple results are determined, Sabrix will send all possible jurisdiction choices back to SAP to let the User decide which is the appropriate address for the master data record. The default zone is always the first record returned in this situation.



Look up the following address using the Address Validation Servlet :

<ADDRESS><COUNTRY>US</COUNTRY><STATE>CO</STATE><CITY>LITTLETON</CITY><POSTCODE>80123</POSTCODE><GEOCODE>1712</GEOCODE></ADDRESS>

Giving the detail down to the Plus 4 is the most granular option for address data to be passed. When a Plus 4 is located within the zip code passed, Sabrix will only return one valid address.

The Zip plus 4 combination in this example was found in the Sabrix Zone tree only once and it resolved to the city of Littleton in Arapahoe County.

http://ec00290:8888/sabrix/addressvalidation



Now look up the same address omitting the Plus 4. Address Validation Servlet

<ADDRESS><COUNTRY>US</COUNTRY><STATE>CO</STATE><CITY>LITTLETON</CITY><POSTCODE>80123</POSTCODE></ADDRESS>

http://ec00290:8888/sabrix/addressvalidation



In this case, the Address Validation Servlet found 4 possible matches:

City of Columbine in Jefferson County Jefferson County, in the unincorporated area… or outside of the city limits City of Littleton in Arapahoe County Arapahoe County, but in an unincorporated part of that county

These addresses are all returned so that the user can select the appropriate address. In SAP, the user is presented with the list of possible addresses. The user must then select the appropriate address and that Jurisdiction Code is then saved on the record.

It’s important that the user chooses the correct address. Consider this, if the city of Littleton is chosen, the combined tax rate on June 1, 2006 is 7.35%. If instead the user selects the unincorporated area in Arapahoe County, the combined tax rate for the customer is only 4.35%.

Sabrix recommends the user look up the appropriate plus four data to determine the proper address.



Sabrix does not store every possible plus 4 available in the United States. Sabrix is an exception based product, and using exception based thinking, Sabrix only stores the Plus 4 data that will affect taxability.

Let’s use Baltimore, Maryland as our example. There are hundreds of Plus 4’s in Baltimore alone, but there are no local tax rates. If a zip code resolves to two different counties for Baltimore at the same time, it doesn’t matter the choice because the State tax is all that calculates in Maryland.

From a Tax Determination standpoint, the above holds true. From an Address Validation standpoint, the USPS address on the customer record is really most important. That’s why Sabrix recommends the user look up the correct address using USPS data prior to selecting the address in SAP.


Servlet Behavior

Address Validation Servlet Behavior Recap

When Zip Plus 4 is sent and Sabrix stores the Plus 4 value, only one Jurisdiction Code is returned.

When Zip Plus 4 is sent and Sabrix does not store the Plus 4 value, the default zone for the zip code is returned.

When Zip Plus 4 is not sent, and the Properties file defaults to one returned value, the default zone for the zip code is returned.

When Zip Plus 4 is not sent, and the Properties file is changed to return all results, all possible zones for the given zip code are returned with the default zone shown first in the list.


Recommendations

Sabrix Recommendations

For SAP users who do not send the Zip Plus 4 addresses, Sabrix recommends they allow the user to select from the list. Sabrix suggests the user look up the appropriate Plus four data in USPS to determine the proper address.

If they don’t want the user to have to select from a list, they should use the default Properties setting which sets the maximum jurisdiction returns to equal 1 and accept the default address. The risk is that the end user won’t have an indication that there may be a tax implication due to a list of possible jurisdictions. They won’t have an option to either select the correct jurisdiction code. This is not the Sabrix recommended solution.

Sabrix recommends users send the Zip and Plus 4 data.


SabrixConnection Properties File

Properties file: The connection.properties file can be used to change the behavior of the Jurisdiction Code lookup in the following ways:

Set the number of jurisdictions returned to SAP for users who do not send Plus 4 data

The default is 1 and returns the Sabrix default zone. Users can set this to 99 as that is the maximum number SAP can accept back from Sabrix. This is not Sabrix recommended. Rather, when SAP users do not send Plus 4 data, users should look up the correct information in USPS data.

Set the error message behavior for when maximum number is reached

Setting to control if error message should be raised when the maximum addresses is reached or if instead the max number of addresses specified should be returned. The default is N.


SabrixConnection Properties File

Set the connection to find only jurisdictions where the county sent must be an exact match

When the Sabrix Address Validation Servlet is called with a County address given when this flag is set, Sabrix will only send jurisdiction code selections when the county given is an exact match with findings in Sabrix. If the county is not found in Sabrix within the State sent by SAP, Sabrix will return an error rather than returning the correct State / County combination. This will help SAP users correct situations where Counties are spelled wrong. Default is set to No.

Set the connection to find only jurisdictions where the city sent must be an exact match

When the Sabrix Address Validation Servlet is called with a City address given when this flag is set, Sabrix will only send jurisdiction code selections when the City given is an exact match with findings in Sabrix. If the City is not found in Sabrix within the State sent by SAP, Sabrix will return an error rather than returning the correct State / City combination. This will help SAP users correct situations where Cities are spelled wrong. Default is set to No.

Set the override county flag to allow the Sabrix returned value for county to be saved in the SAP address details.


Quick Review

3. What is a typical URL for the Address Validation Servlet

4. Why is my user getting 99 choices for address determination?

5. What is the Sabrix recommended way to get only one returned result?

6. How many local authorities have a sales or use tax in Maryland?

1. What kind of jurisdictions are found using the Zone Tree?

2. What is the fundamental difference between the zone lookups for Calcs and zone lookups using the Address Validation Servlet?




(SD)

Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(MM)


Breakdown


Sabrix



Invoices(FI)




BreakdownQ & A


Only


In Sabrix


Quote-to-Cash

Pre-SalesActivities

Payment

Sales OrderProcessing

Shipping

Billing

• Sales document type• Sales document functions

• Delivery scheduling• Shipping point and route details• Delivery block

• Edit delivery list• Picking• Post goods issue

• Edit billing list

Inventory Sourcing


Sales Order Process with Tax Calls

Master Data SD Transaction Data

Customer Address (ship to/ship from) Conditions (how to ship, etc) Pricing

Material Master Product S100 S200 S300

QuoteCustomer 50

Price $2,500 ea

S100

QTY 1000

Plant S100 3000 = QTY 50 3100 = QTY 5000

OrderCustomer 50

Price $2,500 ea

S100

QTY 1000

Plant 3100

DeliveryCustomer 50

Price $2,500 ea

S100

QTY 1000

Plant 3100

Shipping Notification

InvoiceCustomer 50

Price $2,500 ea

S100

QTY 1000

Plant 3100

Freight $1,200

Earlier versions of SAP do not have a tax call at delivery stage. Don’t know what freight will be until delivered.

TaxCalc

$112,500 tax

TaxCalc

$112,500 tax

TaxCalc

$112,554 tax

GL Post ARAccts Receivable$2,501,200 AR Materials$2,501,200- Offset

FI Post

Other Tax Relevant Data

Tax Calc& Audit

$112,554 tax

$112,554 Tax$112,554- Offset Tax


Sales Order Process with Tax Calls – with FORCE

RFC_FORCE_TAXES_DOC

When the Invoice is then posted to the GL, upon SAVE a call is made to Sabrix using the CALCULATE_TAX RFC and that tax amount from Sabrix is compared to the tax amount on the SAP Invoice. If they match, the amounts are posted to SAP AR and saved in Sabrix Audit.

If the amount returned from Sabrix does not match the amount on the SAP Invoice document, then the tax amount from the SAP Invoice gets posted to the SAP AR and saved in Sabrix Audit.


Sales Order Process with Tax Calls – with Force

SD Transaction Data

InvoiceCustomer 50

Price $2,500 ea

S100

QTY 1000

Plant 3100

Freight $1,200

TaxCalc

$112,554 tax

GL Post ARAccts Receivable$2,501,200 AR Materials$2,501,200- Offset

FI Post

Tax Calc& Audit

$118,214 taxCOMPARE

$112,554 Tax$112,554- Offset Tax

FORCE

FORCE


Pricing Procedure

Pricing Procedure Header

Per document

Item Pricing

Product A for price of $100Product B for price of $90Product A for price of $110 when shipped from Denver, CO

Process:Call is initiated by the header.

Call loops through all lines and creates a visual representation of all lines in onedocument.

Example: one RFC call with 3 lines included

The Price Procedure is configured with the Tax Jurisdiction levels that Sabrix determines and sends back to SAP. These levels are mapped to the appropriate GL Account numbers for posting.




(MM)

Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(SD)


Breakdown


Sabrix



Invoices(FI)




BreakdownQ & A


Only


In Sabrix


Purchase-to-Pay

Requisition

Pay Vendor

Purchase Order

GoodsReceipts

Logistics Invoice

Verification


Purchase Order Process with Tax Calls

Master Data MM Transaction Data

Vendor Address(sold to) Conditions Pricing

Material Master Product S100 S200 M300

RequisitionVendor 102

Price ₤10.000

M300

QTY 1

Cost Center 5020 = France 5050 = Germany 6000 = Greece

POVendor 102

Price ₤10.000

M300

QTY 1

Cost Center 5020

Goods ReceiptVendor 102

Price ₤10.000

M300

QTY 1

Cost Center 5020

Receipt Notification

LIVVendor 102

Price ₤10.000

M300

QTY 1

Cost Center 5020

Non-taxable Freight ₤250

TaxCalc

₤1.600 tax

TaxCalc

₤1.600 tax

TaxCalc

₤1.600 tax

GL Post APAccts Payable₤10.000 AP Inventory

₤10.000- Offset

FI Post

Other Tax Relevant Data

Tax Calc& Audit

₤1.600 tax

₤1.600 Tax₤1.600- Offset Tax




Invoices(FI)

Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(SD)


Breakdown


Sabrix



(MM)




BreakdownQ & A


Only


In Sabrix


Miscellaneous Vendor Invoice

GL Post APAccts Payable$1,200.00 AP Services Materials$1,200.00- Offset

FI Post

Tax Calc& Audit

$60.00 tax

$60.00 Tax$60.00- Offset Tax

FI Transaction Data

Create Misc InvoiceSue’s Plant Watering Company

Amount

$1,200.00

Tax Calc

$60.00 tax

5% Rate$60.00 Tax


Tax Procedure

Item Pricing

Product A for price of $100Product B for price of $90Product A for price of $110 when shipped from Denver, CO

Process:Call is initiated by the line.

Call creates a visual representation of each line one at a timeExample: three RFC calls with 1 lines included

The Tax Procedure is configured with the Tax Jurisdiction levels that Sabrix determines and sends to SAP. These levels are mapped to the appropriate GL Account numbers for posting.


Procedure Examples

Pricing Procedures

Tax Procedures


Data Elements needed for Tax

Basic Elements Vendor or Customer registration numbers Ship from/to Point of title transfer Countries of buyer and seller (for services only) Supply/service country (for services only)

Additional Elements Complex transactions– Ultimate buyer– Final destination


Determination Elements Examples

What other elements are used in your SAP implementation that might help to drive tax policy?


Sabrix can Complement or Enhance available Data

Input XML Options TransEditor will set transaction type


Standard SAP Tax Interface Fields

Before you Append the 40 additional elements offered by Sabrix to further enhance your tax policy requirements, usethe 7 additional elements offered in your Standard SAP TaxInterface to map necessary data elements.

They are highlighted here and can be found on page 62 in the R/3 Tax Interface Configuration Guide.





Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(SD)


Breakdown


Sabrix



(MM)


Invoices(FI)


BreakdownQ & A


Only


In Sabrix


Installing the SabrixConnection for SAP

Ensure JVM 1.4 and JCo 2.1.6 both installed

Download the SabrixConnection from the Customer Center Unzip the files into the desired directory Perform one of the following actions:– Copy the sapjco.jar file into the directory in which you installed the

SabrixConnection for SAP– Set the SAPJCO_DIR variable in the SabrixConnection.bat or

SabrixConnection.sh files, depending on your operating system. Review the trace settings described in Troubleshooting the SabrixConnection for SAP

(page 29)

Configure the SabrixConnection Properties file Edit the SabrixConnection.properties file found in the directory in which you unzipped

the files. Use the table and sample file shown in the Installation Guide on pages 20 – 23.


Properties File Configuration

Two categories:

Connection parameters;control how the interface works, e.g. number of servers, log file location, log file content.

Business Transaction control;impact directly how some business scenarios are impacted, e.g. number of address records returned, city and/or county matching.


Properties File Attributes and Descriptions


Properties File Attributes and Descriptions


Properties File Example


Interface Components

Connection files:

Connection call:

Connection logs:


Accessing Log Files

sabrixconnection.log

Sabrix Solution Navigation: Menu System About Log Files


View Log File



Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(SD)


Breakdown


Sabrix



(MM)


Invoices(FI)



Q & A


Only


In Sabrix

SAP Tax Interface



SAP Change Concept

System ConfigurationBusiness specific definitions to uniquely represent a company’s structure, processes and entities.Done through IMG within SAP as part of a system implementation. Fully supported by SAP

System EnhancementsChange made to an SAP system for a particular customer need using a predefined place within the SAP processing logic (user-exit in ABAP code, APPEND in tables, etc.). SAP guarantees upward compatibility, support limited.

System ModificationsChange to a SAP repository object altering core code or structures. Modifications have to be reviewed, and where necessary adapted, during a upgrade. Not supported by SAP.*** Our VAT enhancement IS considered a Modification (slight change to

ABAP code) SAP hard codes the Tax Interface to accept ONLY US and CA

transactions. Our change allows ALL countries to pass.


Essential Integration Elements

Four RFC Calls RFC_DETERMINE_JURISDICTION RFC_CALCULATE_TAXES_DOC RFC_UPDATE_TAXES_DOC RFC_FORCE_TAXES_DOC

Uses SAP’s Standard Tax Interface Predefined list of standard transaction data elements (System Configuration) Up to 40 additional custom data elements at the line level (System Enhancements) Use SAP’s predefined user-exit and ABAP code to pass additional data elements. No

changes to SabrixConnection is required. (System Modification)

All SAP Supported Tax Calls Address Jurisdiction Determination (vendor, customer, cost center, plant…) MM purchase transactions: all order types (requisitions, contracts, PO), invoice

verification, posting to A/P SD sales transactions: all sales order types (inquiry, quote, contract, sales order,

credit/debit memos…), invoices (order, credit, debit, invoice), billing, posting to A/R FI transactions: all miscellaneous customer and vendor invoices, posting to GL


The Tasks required in SAP to support Sabrix

Enable SAP to connect to Sabrix – Create the RFC connections and implement user exits for additional

data elements – Set up all events in SAP as taxable – Tax procedure changes to be made with Sabrix elements– Create and assign the new pricing procedure with the Sabrix

elements Select Countries for Tax Automation by Sabrix – Tax codes per country and tax procedures to be made – Set up Tax Jurisdiction Code per country

Improve Tax Compliance – Include messages and applied registration numbers on invoices – Extend data capturing for tax reporting








RFC Connector

Create the RFC connections and implement user exits for additional data elements


International Tax Calls in SAP

Enabling the calls SAP has hard-coded a check for US and CA to make the external tax call

only relevant to these two countries To enable international calls a modification to the SAP code needs to be

performed to open up the tax call to all countries

method check_destination_country. * data: isocode type t005-intca. * * if i_dest_country ne space. * select intca from t005 into isocode where land1 eq i_dest_country. * endselect. * if ( isocode ne 'US' ) and ( isocode ne 'CA' ). * o_dest_country_rel = space. * else. * o_dest_country_rel = 'X'. * endif. * else. * o_dest_country_rel = 'X'. "default always relevant!!!!!!! * endif. * Sabrix modification to open SAP for international tax integration o_dest_country_rel = 'X'. "default always relevant!!!!!!! endmethod.

Modification to Method

CHECK_DESTINATION_COUNTRY in Class CL_XTAX_RULES_CONFIGURATION


Taxable Events

Set all events to taxable Sabrix holds all necessary exemptions Only transactions sent to Sabrix will be in the audit data base Sabrix and SabrixConnection have superior performance Simplified configuration and master data setup in SAP


The SAP Implementation Guide and Configuration


Master Updates

Material

Customer

Plant


Tax Procedures

Tax Procedure changes to be made with Sabrix elements


New Pricing Procedure

Create and assign the new pricing procedure with the Sabrix elements








Tax codes per country and tax procedures to be made


Set up Tax Jurisdiction code per country

USA

TXJCD_L1 Country / State

TXJCD_L2 ZIP

TXJCD_L3 Location Code

TXJCD_L4 “Out of City" indicator (0 = in city, 1 = out of city)

Canada

TXJCD_L1 Country

TXJCD_L2 Region

TXJCD_L3

TXJCD_L4

International

TXJCD_L1 Country

TXJCD_L2

TXJCD_L3

TXJCD_L4


Tax Jurisdiction Code

Defining the tax jurisdiction code OBCO








Returned Messages to SAP

Enhancements Append RFC structure TAX_CAL_ITEM_OUT00 Condition base formulas need to be copied and changed

R/3 ApplicationsStandard RFC’s

Pricing/Tax Proc.Sa

brix

Con

nect

ion

SAP

Tax

Inte

rfac

e

Tax Manager

These changes will allow return of additional information to the pricing of SD via condition base formulas so that invoice messages can be stored in the transaction

text conditions for further processing.


Additional Fields for Reporting

Custom Fields 40 Additional Data Elements– 10 fields of 10 char– 20 fields 25 char– 8 fields 50 char– 2 fields 200 char

SAP User-Exit ZXFYTU03– Used to assign transaction data to the enhanced tax interface structure fields

Sabrix TransEditors– Move SAP value to User_Element-Attribute for taxability



Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(SD)


Breakdown


Sabrix



(MM)


Invoices(FI)



Q & ASAP Tax Interface

Configuration


In Sabrix


Only


Every company code integrating with the external system needs to be setup in Sabrix as a company with the “External ID” set as the SAP company code value.

Basic Sabrix Configuration for End-to-End Test


Basic Sabrix Configuration for End-to-End Test


Troubleshooting the Integration between SAP & Sabrix

Use the Transaction Function Builder in SAP (workbench)

Tax Determination

SabrixConnection for SAP

1. SM59; RFC Destination “Sabrix” – ping

2. SMGW; view of all connectionsSABRIXSABRIXSABRIX

3. SE37; SAP WB Tax Doc

Create a Business Trx –order creates call

Registers IP address

(handshake)

Sabrix’s Connection Pools

are listening


SM59 – RFC Destination Setup


SMGW – Gateway Monitor


SE37 – Function Builder


SE80 – Function Builder


SE38 – Report RFYTXDISPLAY



Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(SD)


Breakdown


Sabrix



(MM)


Invoices(FI)



Q & ASAP Tax Interface

Configuration

Sabrix Basic Configuration for

Testing Only


In Sabrix


Tax Configuration Flexibility

Standard Rates, Rules, Zones, Zone Aliases, Authorities Global

Purchase Transaction TaxationPurchased Computer from Vendor w/o Nexus

Special Complex TaxationCross Border, Min/Max, Triangulation

Product ExceptionsNewspapers reduced to 6% in Belgium

SabrixDelivers

StandardProduct

Components

SabrixEnables

Configured by the Tax

Professional

AllocationsKit sold for $500 includes computer, software & training

Custom Product ExceptionsComputer equipment 3% - special state deal

Exemption Certificate Mgmt.Customer ABC is exempt from Tax

Custom Rates and RulesOur Sales Tax in LA county is 2%

TransEditorsIf Job Code = 35132 and GL = 98000, then Trx Type is DS

Corporate StructureBusiness entities, advanced user security

Custom AuthoritiesIndustry-specific excise taxes (fuels, alcohol, etc)


Tax Treatment Logic

Transaction Data Elements (from ERP)

Buyer Profile:• Registration (VAT)• Establishment (Nexus)• Primary Address

Seller Profile:• Registration (VAT)• Establishment (Nexus)• Primary Address

Transaction Details:• Supply Location• Ship From• Ship To• Product Code• Point of Title Transfer• Simplification (EU)• Transaction Type (Goods/Services)

TransactionData

Tax Data Elements (to ERP)

Determination Results• Jurisdiction(s) where transaction need to be reported• Tax Type (=Transaction Reporting Type)• Rate and/or Fee to be applied• VAT Rate amount due (output) / to be reclaimed (input) • Sales/Use Rate and/or Fee due or Consumers Use and/or Fees to be assessed

Tax Results

BusinessApplications

SabrixConnections

How is Sales, Use, Consumers Use and /or VAT Treatment Determination Implemented in Sabrix?


Processing Flow of Sabrix Tax Determination

LocationsTransEditors Calculation ProductsDetermineAuthorities Exemptions

“Tax Determination”

Input Data

Output D

ata

Allocations


Scope of Each Module

LocationsTransEditors Calculation ProductsDetermineAuthorities ExemptionsAllocations

InvoiceData

Every module acts on an invoice in its entirety.

Once a module processes an invoice – the results can be utilized by subsequent modules.

You may not alter the execution path.

InvoiceData

InvoiceData

InvoiceData

InvoiceData

InvoiceData


TransEditors are used to translate input data.

Tax policy in TransEditors should always be avoided, but sometimes it’s necessary.

Use hierarchies to improve readability

Performance impacts of large TransEditors TIP: Start with least likely exception

Be aware of line data vs. invoice data elements

Mathematical computation is not available

Document!!!!

TransEditors The Sabrix TransEditor enables you to modify the data sent to theTransaction Logic Engine automatically if certain conditions are met.


Allocations act on a single line at a time

An allocation can split the line into an unlimited number of allocation lines

Each allocation line is processed as if it were a line provided by the source system

An allocation can use and set attributes at the invoice level, but cannot reference the attributes of another line.

An allocation can be selected by naming it from the source system or setting the name value in a TransEditor

Sample Uses… Mail distribution transactions Services performed across multiple jurisdictions Items sold as a kit

The Sabrix Solution’s Allocations functionality enables you to split individual line items into logical components where applicable, resulting in increased accuracy of your tax liabilities.

Allocations


A simple way to minimize data required from the source system. A company may have an unlimited number of locations. Locations may be organized into location sets so the source system

only needs to provide a single value for a pre-determined combination of locations.

Locations and location sets may be set in TransEditors or Allocations.

During determination, Sabrix processes location data in the following order… Line level location detail provided by the source system. Location name at the line level. Location set at the invoice level. Invoice level location detail provided by the source system. Location name at the invoice level. Location set at the line level.

Predefined locations can be defined, given names and referenced during the tax determination process.

Locations


Provided with Sabrix content

Utilizes Sabrix Internal Logic (jurisdiction engines)

Authority Logic Groups are made up of multiple records which include: Role (buyer, seller, middleman) Transaction Type (goods, default services, etc.) Date Range JE Class

Behavior of the JE can be modified using Authority Options

Custom authorities are created from templates which have the JD assignment already made.

JE logic design is provided by Sabrix Tax Research and provided to Sabrix Engineering in the form of a combination of pseudo code and text descriptions.

Determining Authorities uses data on the transaction and applicabletax law to determine the applicable tax authorities on the transactionand their associated tax types.

DetermineAuthorities


Exemption certificates are associated with the customer for sales transactions

They may be associated with the supplier for purchase transactions, but a TransEditor is often required

An exemption certificate can be partially exempt, fully exempt or not at all

A physical exemption certificate doesn’t need to be present in order to use exemptions (e.g. government exemptions, managing usage based exceptions, etc)

Exemption certificates are selected during transaction processing using the customer data (number and name), status, date, and exempt reason. This cannot be controlled.

Blanket vs. Limited Use

You may limit an exemption to specific products (inclusion only).

Exemption certificates enable you to correctly calculate tax on transactions for which part or all of the transaction is tax-exempt.

Exemptions


Product exceptions are comprised of two components: Product Categories – classifications defined by Sabrix Tax Research

with associated product taxability rules by authority. Product Mappings – translation from customer-specific product codes

to product categories.

Product Categories may be defined by the customer

Product Categories have an associated UNSPSC classification for identification purposes

A product category may be fully excluded from the tax base, it may be partially excluded, or it may have any number of special rules Milk in California Shoes in New York

Product exceptions are used to identify product categories and apply authority exceptions, where appropriate.

Products


Every authority has a set of tax rules within Sabrix. A rule is determined using ‘rule qualifiers’ such as product, exempt reason, tax type, etc. The rule matching process…

Scans all rules based on rule order. A match is found when the values of all rule qualifiers on the rule match the corresponding values

on the transaction. A null value on any rule qualifier is a wildcard. Stops searching once matching rule is found.

Every rule has an associated rate or may be exempt. Calculation methods on rules are used to decide how tax is calculated…

Gross times amount Fee on quantity ICMS (Brazil) …

Tax base may include the gross amount as well as taxes previously calculated by other authorities

Max tax situations are managed using tiered and graduated rates

Calculation is the process of calculating the taxes for each of theauthorities identified during tax determination.Calculation


Designing Sabrix Configurations

ong Term. Understand that tax configurations need to handle the business over a long period of time. Tax professionals do not want to tweak configurations on a regular basis.

xceptions Only! Leverage Sabrix content by configuring the exceptions only. Note that exceptions includes missing data.

ystem Independent. Sabrix is designed to be used by multiple business applications simultaneously. Make sure the configurations leverage and don’t limit this capability.

imple. Keep the configurations simple and intuitive.

L

E

S

S



Basic SAP R/3

Overview

Sabrix Products and

Technical Overview


(SD)


Breakdown


Sabrix



(MM)


Invoices(FI)




In Sabrix

SAP Tax Interface

Configuration

Sabrix Basic Configuration for

Testing Only

Q & A


January 2007

Sabrix Login

SAP / SabrixIntegration Fundamentals

http://ec00290:8888/sabrix/index.jsp

Sabrix SAPSabrixTechnicalTraining

Documents

sap applications

special tax

embedded tax

tax jurisdictions

tax rates

tax amounts

external tax system

standard tax interface