SAP : SABRIX : Tax solution Sales tax, Use tax, VAT and GST automation

SABRIX is an enterprise tax solution for Sales tax, Use tax, Value Added tax, and GST automation.

 

SABRIX has two main components:

  • Tax Engine
  • Tax Content

The tax engine contains the transaction processing rules such as identifying an export, import, domestic sale and reverse charges scenarios.

 

The tax content contains tax rates and related rules for many jurisdictions including European Countries, Asia, Pacific, Latin America, North America and much of Africa.

 

The tax content is updated monthly, if not more often based on changes in the tax laws around the world.  It may contain updates to an authority's rate or to the applicability of a rate to a particular product (referred to as product taxability).

 

Basics of SABRIX:

 

The SABRIX system will be used to make sales, use and value added tax decisions, calculations during the sales order and validation/use tax accruals during the billing process within SAP's SD, FI, MM modules. 

 

Sales orders/billing and purchase order/invoicing details will be submitted to the SABRIX system from SAP through an interface developed by SAP, which passes the details (data elements) required to: 

  1. Determine the transaction types
  2. Perform tax calculation
  3. Return the tax-calculated results to SAP including tax rate, type of tax (domestic, import etc), jurisdiction and invoice messages for printing and exemption details. This detail is used for reporting and also for:

o       Printing an invoice

o       Validating a vendor's invoice

Purpose of SABRIX – Financial

 

From a FI purchasing perspective  

  1. Validate that the invoices stated amount of tax is correct based on the classification of what is being purchased.  For Financial Postings, the classification could based on the GL account or Tax code.
  2. Facilitate the calculation and accrual of self-assessment tax in situations where vendors have failed to collect tax.
  3. Capture tax amounts on charge only invoices (I.e. import declaration)
  4. Capture data for preparing tax returns and input tax credits. SABRIX simplifies the preparation of tax returns by classifying the nature of the transaction based on tax type (domestic, import, export) and rate code (standard rated, reduce rated)

 

Purpose of SABRIX – Materials Management

 

From a purchasing/invoice verification perspective: 

  1. Identify whether a purchase is taxable or exempt at the time of purchase order creation.  If taxable, SABRIX determines what rate applies.
  2. Verify the tax calculated by the vendor on the vendor's invoice for transaction level taxes.  SABRIX validates the invoice with all information available to SABRIX and notifies when the vendor's invoice is incorrect.
  3. Determine whether a self-assessment is required in a transaction where the Vendor did not charge tax
  4. Create the tax entries within the SAP General Ledger. Setup of logic to determine the GL accounts for tax accounting.
  5. Capture data for preparing tax returns and input tax credits.  SABRIX simplifies the preparation of tax returns by assigning jurisdiction codes to line item information that may be readily retrieved for automated return preparation.

  

Purpose of SABRIX – Sales & Distribution

 

From a sales order/billing perspective, SABRIX will: 

  1. Identify whether a sale/invoice is taxable, at what rate it's taxable or exempt at the time of Sales Order Creation and Billing.
  2. Identify required data for the invoice: text messages, Tax registration numbers etc 
  3. Create the tax entries within the SAP General Ledger.
Capture data for preparing sales tax returns on a multi-jurisdictional basis.  This includes all variables utilized to make the decision including the custom transaction attributes identified later.

3 comments:

  1. Its really nice to reed article about SABRIX.

    Regards
    Sekhar Thallam

    ReplyDelete
  2. I recommend Using something other than Sabrix. The process they use is slow, the code the software is built on is outdated and technical Support is horrible.

    ReplyDelete
  3. Simple and Clear Article.

    ReplyDelete