Achieving a Clean Core with Certified SAP S/4HANA Add-Ons

June 21, 2023

Implementing certified add-ons in SAP S/4HANA on-premise or a private cloud environment will allow you to expand the capabilities of your system. However, it is necessary to maintain a pristine core by strictly adhering to the most effective procedures.

This blog details the most important steps companies should take to design an add-on with a clean core.

Keeping a clean core

Ensure that all umbrella modules of the add-on have been SAP certified for SAP S/4HANA compatibility. This will prove that the add-on satisfies the requirements for integration and avoid investment risk for non-certified modules that use objects forbidden by SAP.

For each major release from SAP, non-certified modules may no longer work to the expected requirement. At Sovos, we make it a point to guarantee that all of our SAP modules are certified against the latest releases. Examples of these modules include VAT Determination (Sales, Purchasing, Monitoring & Reporting, and VAT ID Validator) and continuous transaction controls (CTC) frameworks.

  • Perform your due diligence when selecting a software provider: It is important to consider a provider’s track record, experience, customer service, and reputation for supplying dependable tax solutions.  Make sure prospective vendors are financially stable and invest in certification and continuous research and development. You should consult tax experts for direction in this matter.
  • Further clarify the add-on’s scope: Identify potential overlaps or conflicts with the functionalities currently in SAP S/4HANA.
  • Conduct a comprehensive analysis of the existing business processes: Harmonise or replace unnecessary changes with the fundamental capability offered by SAP S/4HANA.
  • Adaptation and configuration: Change the add-on’s settings to satisfy business requirements while minimising the number of modifications made and depending on the default capabilities.
  • Data migration and integration: Carry out data migration while mapping relevant data to achieve add-on integration with existing data and processes.
  • Testing and validation: Conduct extensive testing of the add-on’s functionality and integration, covering all procedures from beginning to end and existing custom developments.

It is important to provide comprehensive user training on the add-on’s functionalities and document changes or upgrades made throughout the installation.

Using the appropriate software is essential for compliance and efficiency when dealing with indirect taxes. Avoid taking quick routes. Make a choice based on accurate information that helps tax procedures run smoothly.

By adhering to these standards, businesses can successfully implement certified add-ons into SAP S/4HANA while keeping the system core clean. This method, which restricts the use of customisations, prioritises the employment of standard functions and ensures an uninterrupted connection – resulting in the production of an SAP S/4HANA system that is highly effective and optimised.

Are you a SAP user that cares about tax compliance? Download our free eBook today.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.



Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe, and is owned by Hg and TA Associates.
Share this post

North America ShipCompliant
September 25, 2023
Potential Government Shutdown Will Affect Beverage Alcohol Industry

Unless Congress is able to pass an appropriations bill in the next few days, the U.S. government is set to shut down all nonessential services effective October 1, 2023. This will include (among many other agencies) the Alcohol and Tobacco Tax and Trade Bureau (TTB), which will impact the beverage alcohol industry. If the shutdown […]

EMEA VAT & Fiscal Reporting
September 25, 2023
VAT in the Digital Age – Union One Stop Shop (OSS) Expansion

Entering into force on 1 January 2025, the EU Commission’s VAT in the Digital Age (ViDA) proposals have been introduced in an effort to modernize VAT across the EU.  One pillar of ViDA is the “single VAT registration,” which would reduce compliance costs for businesses. The Commission proposes to achieve this by expanding the Union […]

North America Tax Information Reporting
September 25, 2023
Why Conduct a Pilot Season for Tax Information Reporting?

Another tax information reporting season is just around the corner and now is the time to start preparing your teams handling forms such as Series 1099, 1098, 1042-S, 3921, 5498, W-2, W-2G and more. Getting your teams ready and testing your reporting process ahead of January ensures you are set up for a successful season. […]

North America Tax Information Reporting
September 21, 2023
Sovos Education Returns to Orlando with Statutory Accounting CPE

If you didn’t join us in D.C. or San Francisco earlier this year, you won’t want to miss one last opportunity in 2023 to take part in live continuing education. Sovos Education is returning to the Orlando area for a full week of statutory accounting CPE opportunities and we’re hoping to see you there. Sun […]

North America ShipCompliant
September 20, 2023
Prevent Consumer Confusion Around Hard Versions of Soft Drinks

A trend of the last few years has been the surge in new products entering the beverage alcohol market, from hard seltzers to RTD cocktails, along with the entry of well-established, traditionally non-alcoholic brands, like Hard Mountain Dew and Simply Spiked. While the growth of hard soft drinks is great for consumers, who benefit from […]