Finance related SAP Notes for Brexit Modification

You must check your legal company structure whether it will be affected by Brexit. For instance, if you have Private Limited Companies under UK law but operated from another EU country your system will be affected.

There are some recommendation sap notes for Brexit in SAP Launchpad. One of them is related to the Finance.

2768412 – Recommendations for Brexit FI

You must know which changes should be done in FI, if a member country leaves the European Union.

If we check above sap note, we can see that, there are some technical action items:

• Changes in general configuration
  • Deactivation of EU-flag for UK in country settings

The EU membership flag (T005-XEGLD) should be removed for country GB (Transaction: OY01)

• Tax codes

Check tax codes, if required create new tax codes (Transaction FTXP)

After creation new tax codes, you can deactivate old tax codes to remove them from the list. Check SAP note 2074351 for details.

• Withholding tax

If you have transactions ((dividends and interest) whether they become relevant for withholding tax. If applicable, adapt withholding tax configuration including creating new withholding tax codes

• Payment settings 

According to European Payments Council (EPC) decision UK will remain in the SEPA system. For payments over 1.000 Euro outside the Union the payer’s address must be included in the payment data. Check your payment methods flagged as “EU internal” transfer and deactivate them for country GB. 

• VAT Registration Number
  • To enable pre-Brexit-postings in FI after Brexit date

After deactivation of EU-flag for country GB, VAT Registration number will not come to the FI postings from the customer/vendor master.

Before EU Flag Removal, System takes VAT Registration number from the Master data during FI postings (FB01, FB70 etc.)

After removal of EU Flag – it is not coming.

So, you should implement sap notes 2766031 and 2770937.

When we review notes we can see that there are some prerequisites and manual activities:

I summarized them in one picture and share to you.

List of prerequisites notes:

2571675 – VAT registration number for GCC countries

2574857 – Prerequisite objects for note 2571675

2576647 – VAT registration number for customer/vendor in GCC countries

2582951 – Package GLO_FIN_GEN does not exist

Remark:

This is related to only FI postings. Because, Tax registration number comes from Billing (SD) to the Accounting Document (FI) though EU flag is removed.

Additionally, if you have Mini One Stop Shop (MOSS) process, you must implement SAP note 2766234 as well.

• Posting

Check all recurring documents and sample documents

If these contain EU tax codes remove them (transaction F.56 and F.57) or enter new recurring documents or sample documents

Tax reporting

VAT return report and EU sales list are based on the postings no specific changes are required here.

In some countries tax authorities do not want to have “GB” records in EU sales list after Brexit. SAP note 2778393 provides a new select option for EU sales list, so you can remove these records by setting the selection to unequal “GB*”.