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

Sean Donoghue
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.

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Sean Donoghue

Sean is a Senior SAP Solution Consultant and a member of the VAT determination team for European Sovos Professional Services. Based in Ireland, he holds qualifications in Business & Technology, and has 25+ years of experience working in international VAT compliance, with the last 16 of those years specifically focusing on VAT determination in SAP modules for materials management, sales, and finance.
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