As you know, the UK voted to leave the EU back in June 2016. And now that Brexit is a totally done deal, there are certain changes you will have to implement in your SAP S/4HANA system to comply with the new EU rules and trade agreements.
The UK has left the EU and thus, became a 'third country' for the European countries. All cross-border transactions between EU and GB (excluding Northern-Ireland) are classified as imports and exports.
In this post I would like to summarize the steps and checks you need to perform to make your S/4HANA or ECC system ready for Brexit. Of course, this heavily depends on if you have legal entities in the UK or do any business with the UK from an EU country.
If you have legal entities in the EU or GB, the first things you need to do are:
If your trade falls under the NI protocol:
While this is not a complete list of all applicable SAP support notes, these three are some of the most important ones for you to review:
You can access SAP's support notes by logging into the support portal. Please note that you will need an SAP-provided user ID (commonly known as an S-User). Access to the support portal is reserved for SAP employees, contractors, customers and partners.
Here are some of the most important changes you'll have to implement in SAP's FI configuration. This is certainly not a complete list and, as always, it depends heavily on your specific SAP configuration, but this will get you started.
Company code settings
Update XI VAT identification numbers (for Northern Ireland) - should be stored in table T001Z (parameter XIVATN).
Business between the EU and the UK is not considered intracommunity anymore. You should change your tax code determination and change it to export/import instead of intracommunity.
For GB company codes, postponed accounting is introduced. For this, you likely need to create new Tax codes. For details, please check SAP support note 2996657.
The UK will remain in the SEPA area. Here is the official EPC statement:
However, some minor changes apply. For payments over 1000 EUR outside the EU, the payer's address must be included in the payment data. The SAP delivered CGI SEPA CT formats already include the address field. Ensure that your vendor/customer master data is complete so that the SEPA payment files get populated correctly.
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