What impact will Brexit have on your SAP system?
With Brexit on March 29 coming closer and closer, there are bound to be tangible effects on taxes, customs and procurement. Legal requirements, VAT rules and regulations, data sovereignty and process design may change. So, how do you make sure your SAP system is up to the challenge?
To be well-prepared for Brexit, it is important to identify its impact on your organization. This can be challenging because the results of the negotiations are still up in the air. Fortunately, there are several scans available to measure the potential impact of Brexit. In addition to the government scan, we leveraged our expertise to develop a Brexit impact scan specifically for your SAP systems .
Flexso’s Brexit readiness assessment: how does it work?
Flexso assesses the impact of Brexit on your SAP systems in three key steps:
We assess your current business flows
We take a look at your current processes, from the organizational model to trade flows and tax determination, and ascertain the potential impact of Brexit.
We check with our SAP experts
At Flexso, we have experts for each specific SAP domain. They will take a look at the current set-up of your SAP system and advise you on potential improvements.
We draft a roadmap
We use our extensive experience in international projects to draw up a clear roadmap and made-to-measure assessment of your SAP system.
The result? A clear overview of the impacts of Brexit on your SAP systems to tackle on March 29 (the day that Brexit will come into effect).
What (other) areas of your organization will potentially be impacted by Brexit?
Brexit is sure to have effects on several business areas – and the related mechanisms and data in your SAP system . If you want to be Brexit-ready, you will need to focus your configuration efforts on:
Since the UK will no longer be part of the European Union, you will need to analyze and potentially adapt your data. Currently, any company code that is created in the SAP system with ‘GB’ as the country qualifier is a company code within the European Union. The same goes for business partners such as vendors, banks and customers located in the UK.
This is arguably the area where the impact of Brexit on SAP systems is the most tangible. Because the country code ‘GB’ will no longer be labeled as an EU country and the correct tax codes are determined automatically by the SAP system, the entire tax determination mechanism will require an overhaul
Once the legal specifications of the new situation become clear, conditions for the information required on government reports, e.g. EC listings, etc. may change. That’s why all outputs related to tax will have to be reviewed to ensure their compliance.
By leaving the EU, the UK is also leaving the European single market. This may have an impact on current trade flows. Additional costs such as customs fees are to be considered. What’s more, customs declarations will also increase lead times. All of this will need to be taken into account in your SAP system.
Forms and documents
The information on some of your organization’s forms and documents will need to be updated. This includes terms and conditions and language on POs, invoices and any other documentation.
We can help you prepare your SAP system for Brexit? Book a Brexit workshop with one of our experts.
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