The Value of SAP S/4HANA Add-On Software Certification

Sean Donoghue
June 7, 2023

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.

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Author

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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