Tax Management Consultancy KEY Group / LiNKiT launching eBilanz-Cockpit for Germany: an integrated SAP solution

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Overview

Tax Management Consultancy 10/2013

The legal requirement

•  The legal requirement for the creation and submission of an electronic tax balance sheet (e-balance) in XBRL poses a major challenge for all companies located in Germany.

•  Even though the new law is applicable as of fiscal year 2013 for most taxpayers (see page 4), many ERP software providers, such as SAP, do not offer a satisfactory solution for complying with the comprehensive legal requirements.

An integrated approach

•  The standard functionality of SAP supports only the data provisioning for the electronic tax balance.

•  Separate add-ons are needed for the creation of the final XBRL file and the electronic submission.

•   SAP’ s own ‘solution’ is called ‘SAP ERP client for E-Bilanz’ and is a local Excel Add-on application and not an integrated SAP solution. It does not work without the generic risk of interfaces.

•  These can be eliminated and the entire process can be facilitated by a solution fully integrated into SAP.

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Timeplan for Implementation

Tax Management Consultancy 10/2013

The eBilanz in Germany will be implemented according to the following time schedule:

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KEY – LiNKiT eBilanz-Cockpit – a simple and lean method (I)

Tax Management Consultancy 10/2013

Key features of LiNKiT eBilanz Cockpit

•  The KEY – LiNKiT eBilanz Cockpit is an easy-to-use and lean solution for the German e-balance.

•  It is fully integrated into SAP, thus easily accessible while it avoids problems with media discontinuities (generic interface risks).

•  The cockpit’s ten steps process, provide an intuitive guideline for the process of creating and filing the e-balance.

•  The cockpit has clever features, such as the drag & drop functionality for mapping the company’s chart of accounts to the required fiscal taxonomy, making the cockpit an user-friendly tool.

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KEY – LiNKiT eBilanz-Cockpit – a simple and lean method (II)

Tax Management Consultancy 10/2013

Key features of LiNKiT eBilanz

•  In order to provide a comprehensive solution for the entire corporate group, the cockpit also has an interface for non-SAP systems, enabling the upload of financial data from subsidiaries not using SAP.

•  All the group’s tax balances can be created in and filed from one central SAP system. Various characteristics of the cockpit ensure an audit-proof process.

•  The tax adjustments made in the cockpit do not influence the regular SAP data and are tracked in a separate document journal.

•  Just as in SAP itself, all entries and changes are recorded, thus ensuring that the cockpit meets high standards of IT and process security, including a full audit trail.

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LiNKiT eBilanz-Cockpit: Create and send electronic tax balance sheet out of SAP

Tax Management Consultancy 10/2013

The basic dataflow within the Cockpit is as follows:

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Features of the eBilanz-Cockpit: 10 steps to the e-balance

Tax Management Consultancy 10/2013

The cockpit functionalities are split into ten steps. They provide an easy to use guideline to the

entire process for creating and filing an electronic tax balance:

Step 3

Step 2

Step 1

Import source data: Import of financial statements, Balance Sheet and P&L, from standard SAP report OR file upload (for non-SAP systems)

Import taxonomy: Easy import and storage of the different taxonomies

Maintain master data: Manual entry of all relevant data OR import from previous year

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Features of the eBilanz-Cockpit: 10 steps to the e-balance

Tax Management Consultancy 10/2013

Step 5

Step 6

Step 7

Step 4

Check balance sheet: Internal check of consistency, correctness and completeness

Edit e-balance: Entry of tax adjustments, of-which-positions, additional reporting elements

Data transfer: Combination of source data and taxonomy mapping to an initial e-balance

GAAP mapping: Mapping of chart of accounts to fiscal taxonomy via drag & drop OR import from previous year or sample mapping (see page 11)

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Features of the eBilanz-Cockpit: 10 steps to the e-balance

Tax Management Consultancy 10/2013

Step 10

Step 9

Step 8

Send e-balance: Electronic submission of the e-balance to the tax office (incl. test functionality)

ERiC validation: Validation with the test routines provided by the fiscal authorities

Generate XBRL: Conversion of the e-balance into the XBRL format

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eBilanz Cockpit Showcase

Tax Management Consultancy 10/2013

The eBilanz Cockpit provides one central screen with all functions at fingertips:

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eBilanz Cockpit Showcase

Tax Management Consultancy 10/2013

Mapping of accounts to tax positions with easy drag and drop functionality:

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Implementation process of the KEY-LiNKit eBilanz-Cockpit

Tax Management Consultancy 10/2013

The implementation of the KEY – LiNKiT eBilanz-Cockpit is supported by our own trained consultants and is performed in cooperation with your own tax and SAP-IT staff.

1.  eBilanz readiness check (1day)

2.  Installation and configuration of the KEY – LiNKiT eBilanz Cockpit in your SAP®-System

3.  Installing the relevant taxonomies (depending on legal requirements according to your business)

4.  Sending test data to tax authorities

5.  Key user training

6.  On-site Support (1day) during first productive data transmission to tax authorities

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Possible Implementation Plan

Tax Management Consultancy 10/2013

We recommend the following approach:

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Return on investment after implementation of the KEY LiNKiT eBilanz-Cockpit

Tax Management Consultancy 10/2013

•  Full compliance with the legal requirements in Germany

•  Lower overall costs due to quick and easy implementation

•  Reduction of risks by media continuity (generic interface risks) and audit-proof documentation

•  Efficient process of e-balance creation and submission

•  Less time needed due to master data mapping and import functionality

•  Lower maintenance costs because of complete integration in SAP: no additional interfaces, no additional costs for installation / distribution / maintenance of additional software

Key benefits

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Return on investment after implementation of the KEY LiNKiT eBilanz-Cockpit

Tax Management Consultancy 10/2013

•  Lower software costs because of upload functionality for data from non-SAP systems: no additional software for non-SAP companies needed

•  Centralized support and dedicated contact person for all questions regarding the technical issues of the electronic tax balance

•  Less time for training: SAP-integrated solution with intuitive handling and use of SAP standard functionalities

•  Centralized solution in which all steps of the process can be executed or triggered

•  Reduced risk of data loss because all data is stored safely in the SAP system and thus easily accessible and available for years

Key benefits

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Contact

Tax Management Consultancy 10/2013

Guido Czampiel Partner – LiNKiT Consulting Mobile: +49170 2908613 Email: guido.czampiel@linkit-consulting.de

Rüdiger Hoffmann Partner – LiNKiT Consulting Mobile: +49172 7063026 Email: ruediger.hoffmann@linkit-consulting.de

Ferry Geertman Managing Director - KEY Group Mobile:  +31 6 8379 0414 Email: ferry.geertman@key-group.nl