BSD SAP FATCA 100 Business Process Guide

SAP Tax Classification and Reporting for FATCA 1.0: Business Scenario Descriptions © Copyright 2013 SAP AG. All rights reserved.

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SAP Tax Classification and Reporting for FATCA 1.0 Business Scenario Descriptions

PUBLIC Document Version: March 2013


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Copyright © Copyright 2013 SAP AG. All rights reserved. SAP Library document classification: PUBLIC No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

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Table of Contents SAP Tax Classification and Reporting for FATCA: Business Scenario Descriptions ............... 5

1 Tax Classification ............................................................................................................ 6 1.1 Classifying Business Partners ................................................................................... 7 1.2 Performing Manual Activities and Reworking ............................................................ 8 1.3 Classifying Business Partners Periodically and Executing Balance Checks ............... 9 1.4 Classifying Business Partners Based on Events ..................................................... 10

2 Reporting ...................................................................................................................... 11 2.1 Collecting and Preparing Data for Tax Compliance Reporting ................................. 12


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SAP Tax Classification and Reporting for FATCA: Business Scenario Descriptions SAP Tax Classification and Reporting for FATCA is an add-on to SAP ERP or banking services from SAP. In this section, the documentation for business scenarios and business processes is provided, which describes how you can use the solution.

Integration The documentation of business scenarios and business processes is an important part of SAP Solution Manager content. It includes scenario-related and process-related configuration content that enables you to implement SAP Tax Classification and Reporting for FATCA. For a detailed description of the functions used in the application, see SAP Library under http://help.sap.com/fatca.

Features The following business scenarios are provided with SAP Tax Classification and Reporting for FATCA:

· Tax Classification [Page 6]

· Reporting [Page 11]

http://help.sap.com/fatca


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1 Tax Classification You use this business scenario to classify business partners (BP) and assign a tax compliance status to each BP. All business partner categories – individuals, organizations, and groups – are supported and handled using specific settings. Tax classification is mainly about executing certain checks on business partner data and account data of related accounts. A set of configuration is required to set up a tax classification, where a tax classification variant is an entry point for all settings. Tax classification variants are linked to rule sets that comprises of different check sets. You can customize these rule sets. The check sets are defined to group the required checks. The essential settings to define a tax classification variant include the definition of period end and a spot rate for current exchange.

Prerequisites You can implement this business scenario with different releases of the relevant application components. For more information, see:

· Master Guide for SAP Tax Classification and Reporting for FATCA on SAP Service Marketplace at http://service.sap.com/instguides Focused Business Solutions SAP Tax Classification and Reporting for FATCA SAP Tax Classification and Reporting for FATCA 1.0.

· Scenario and Process Component List on SAP Service Marketplace at http://service.sap.com/scl.

Process The business scenario has the following business processes:

1. Classifying Business Partners [Page 7]

2. Performing Manual Activities and Reworking [Page 8]

3. Classifying Business Partners Periodically and Executing Balance Checks [Page 9]

4. Classifying Business Partners Based on Events [Page 10]

Result The tax compliance status is assigned to a BP. The relevant information of the BP can be reported in compliance to regulations dependent on the banks.

More Information Reporting [Page 11]

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1.1 Classifying Business Partners You can use this business process for initial classification of a business partner, as well as for periodic re-classification.

Prerequisites You have maintained the relevant Customizing settings such as defining the indicia and balance checks to be executed depending on the business partner category, defining the threshold for business partner accounts, and so on.

Process The following business process runs in SAP Tax Classification and Reporting for FATCA:

1. Execute the tax classification of a business partner.

In this process step, you enter the business partner number, and the required details. While executing the tax classification, the system executes the checks defined for the business partner category.

2. Check the tax classification status of the business partner.

Depending on the settings maintained in Customizing, the status assigned to the business partner is relevant, not relevant, or unknown.

Result The classification details log displays the result of the checks based on the configuration and also the status of classification.


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1.2 Performing Manual Activities and Reworking You can use this business process to update the system with manual findings. This includes adding documents, decisions, or other items to the classification details log. The solution can use such items for follow-up processing. If manual activity results in a decision, you can use this business scenario to trigger the tax compliance status derivation of the business partner.


1. Add a manual activity for a classified business partner.

In this process step, you can manually add the activities such as documents that you want to maintain as evidence, or also define decisions that are mapped to the tax classification status. You can also define tasks and maintain attributes depending on the business partner category.

2. Classify a business partner.

Based on the settings maintained in Customizing and the state of classification, the solution either derives the tax classification status based on the manual entries along with the previously executed check results or the solution allows you to execute the classification process from the beginning along with the manual entries.


The tax classification status of the business partner is set depending on the activities.

Result You can view the status of the business partner, the classification date, the document status with the number of documents attached, and the number of tasks defined. You can navigate to the open items from the classification details log.


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1.3 Classifying Business Partners Periodically and Executing Balance Checks You can use this business process to classify business partners (BP) periodically depending on the configuration, where it also considers the BP account balance existing at that instance.

Prerequisites · You have created a tax classification job variant.

Enter the classification variant, key date for classification, status, and reason for the creation of a tax compliance classification job variant.

Note that the used classification variant attribute is linked to a rule set, which also considers the BP account balance during the classification.

· You have scheduled a job.

Using the tax classification job variant created in the previous step, a background job is scheduled to execute tax classification and this takes place at defined intervals.


1. Change in account balance of the business partner.

Based on the classification rule setup, changes in account balances of a classified BP affect the classification status.

2. Check job execution and classification status of the business partner.

This process step occurs after the account balance is changed. The system then checks whether the background job is executed and it further checks the classification status of the BP.

The BP status changes based on the configuration and the account balance change, by periodically running the background job.

Result The balance checks are periodically executed for specific business partner category. A workflow is created based on the Customizing settings.


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1.4 Classifying Business Partners Based on Events You can use this business process to classify a business partner (BP) based on events – for example, an address change for the existing business partner. As data existing at the business partner level are essential, changes made to such data triggers any of the predefined events based on the modified fields. Based on the event triggered and the configuration defined to handle this, the classification run happens for the business partner.


1. Trigger an event.

An event is triggered automatically when any changes are made to the master data of a business partner as per the predefined events. For example, events are created for creation of a new BP, change of address, change of phone number, change of roles, change of relationships, and so on. You can also link multiple tax classification variants to a particular event.

2. Classify a business partner using event processing.

You can classify a business partner using the outstanding events to be processed.


The tax classification status is set for the saved business partners.


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2 Reporting You can use this business scenario to report the information of an account holder depending on the compliance regulations of the bank. You can report the data of:

· All business partners (BP) whose tax compliance status is relevant.

· All BPs for a range of tax compliance statuses.

· A range of BPs.

Prerequisites You can implement this business scenario with different releases of the relevant application components. For more information, see:

· Master Guide for SAP Tax Classification and Reporting for FATCA on SAP Service Marketplace at http://service.sap.com/instguides Focused Business Solutions SAP Tax Classification and Reporting for FATCA SAP Tax Classification and Reporting for FATCA 1.0.

· Scenario and Process Component List on SAP Service Marketplace at http://service.sap.com/scl.

Process The business process run in this scenario is Collecting and Preparing Data for Tax Compliance Reporting [Page 12].

Result The reporting file is generated in the defined output format such as an XML file.

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2.1 Collecting and Preparing Data for Tax Compliance Reporting You can use this business process to collect the data of business partners that is relevant for reporting and to prepare the data in the required format for reporting purposes.


1. Set the agreement status.

In this process step, you can create a new business partner or enter the details of a classified business partner. Using the BP transaction, set the status of each business partner to Agree. The data of a BP with only the Agree status is ready for reporting.

2. Execute the report.

For a business partner, or a range of business partners, you enter the required data to execute the report. You specify a file name to store the file on the application server.

3. Manage the report.

You can display or delete the reporting data based on your requirements.

Result The data is prepared for reporting purposes.

Documents

BSD SAP FATCA 100 Business Process Guide