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.

Many companies utilise SAP for their tax processes, but limitations in native software functionality add a layer of complexity.

Custom coding is often required for businesses to achieve their desired results, producing the need for ongoing customisation and optimisation – this creates a hefty burden for companies, in addition to their tax compliance obligations. SAP-certified add-ons can lighten the load.

Have you considered purchasing an add-on for the SAP S/4HANA system that you have? Ensure that SAP certification is a top priority, including checking the certification of any umbrella modules that a service provider offers.

The following points highlight the importance of using certified add-ons.

The benefits of certified SAP S/4HANA add-on certification including all umbrella modules

• Integration and interoperability: SAP certification guarantees that the add-on software will have undergone comprehensive analysis, testing and verification, ensuring it is interoperable with SAP S/4HANA. When done, it decreases the likelihood of problems with the functionality of other SAP components or incompatibilities with those components.
• The best quality and reliability: You will have a reliable and trustworthy solution using certified add-ons as they meet SAP’s performance and quality standards. They adhere to best practices and SAP criteria, which isn’t guaranteed with add-ons that SAP hasn’t authorised.
• Assistance and maintenance: Reputable suppliers will provide official support for their products’ certified add-ons. On the other hand, using non-certified add-ons may make troubleshooting, applying bug patches or downloading new versions of SAP software more complex.
• Upgrades and compatibility in the future: SAP often releases new versions of SAP S/4HANA, as well as upgrades to existing versions. It is envisaged that certified add-ons would continue to be compatible even after recertification, ensuring a seamless transition. Incompatibilities with uncertified add-ons potentially prevent future system updates.
• Risk and Liability: Both risks and responsibilities of choosing an uncertified add-on come with a certain amount of danger. If there are issues, it is possible that consumers will be responsible for fixing them – resulting in additional expenses.

When an add-on is certified by SAP, both the vendor and SAP share some level of accountability and confidence in the add-on. Before deciding on a non-certified alternative, it is essential to conduct adequate research because not all add-ons are subjected to the certification process.

Consider the vendor’s past success in deployments similar to yours, as well as their customer references and reputation. Complete due diligence against prospective vendors to ensure they are financially stable and invest in certification and continuous research and development.

Remember to make a decision based on the prerequisites and potential risks of the SAP S/4HANA environment you work in.

At Sovos, we make it a point to guarantee that all of the modules that make up our SAP product line are certified against the latest releases from SAP. Examples of these modules include VAT Determination (including Sales, Purchasing, Monitor & Reporting and VAT ID Validation products) and Continuous Transaction Controls (CTC) frameworks for SAP.

Download our free eBook on SAP S/4 migrations and tax compliance for more information.