CITAX goes SAP HCM
Non-cash benefit process directly connected with SAP HCM and end-to-end digitised
No interface: A dilemma
All those dealing with TaxTech know the problem: By default, SAP doesn't provide an interface with which systems can be linked to SAP HCM (payroll, external add-back) and also doesn't include standard functional elements for automatic booking.
This left companies with two possible solutions: Either they would transfer data from one system to the other with CSV export and import or they would develop their own solutions, that were not always professionally designed.
At the end of each reporting period, the persons responsible for income tax had to organise export/import, evaluate the data quality, manually make correction bookings and determine the values for the tax returns. The larger the company, the more employees it has and the more external flat-rate taxes need to be calculated, the longer the time required every month for income tax processing – and the higher the process’s error rate.
The solution that creates consistency, traceability, security & efficiency
The interface we have developed solves this dilemma. Our innovative interface builds on SAP HCM and is modular in design. You can not only link this interface with CITAX, but with other systems that regularly transfer data relating to payroll and external income tax add-back to the HCM module.
Synchronised, bi-directional communication
With this interface, your CITAX solution is not only end-to-end digitised towards SAP FI, but also towards the HCM system. One of the essential design elements of this interface is its synchronised and bi-directional communication. What that means is that data exchange runs both ways. Firstly, the HCM system receives booking information from CITAX, secondly CITAX receives information on whether bookings could be performed correctly from the HCM system. This provides CITAX users with an overview of the export status of their HCM activities directly in CITAX and allows them to correct errors quickly and immediately. This feedback offers significant information benefits, especially in comparison with working with CSV export/import.
Benefits in calculating external income tax add-back
When calculating your external income tax add-back, the interface also makes a sustainable contribution. The interface records what values are delivered by upstream systems and what values flow into the sum of values to be reported. This way, you are always up do date on what the amount reported to the revenue agency is comprised of.
The consistent digitisation that this interface allows, also closes a security gap. A secure connection between upstream and downstream systems based on SAP RFC technology makes data transfer / storage obsolete and eliminates all associated additional costs and sources of errors.
- The non-cash benefit process is another one that is being consistently digitised towards an HCM system
- Synchronised and bi-directional data transfer offers both systems information from the other one and boosts the efficiency of both systems
- All external income tax add-back calculations running across the interface are traceable, transparent and tamper-proof
- Increased security of activities processed in CITAX, general improvement of data security and minimisation of error sources
- Efficiency boost also on the side of the HCM system, as costs for import, corrections and research are eliminated or minimised