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Improving of the Tax Calculations in SAP for Ukrainian Companies

Author

Listed:
  • Mariya Shyhun

    (Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine)

  • Andrii Zhuravel

    (Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine)

Abstract

Providing a fiscal function, tax calculations are one of the key processes in the activities of enterprises. A study of the practice of using modern software products for accounting automation showed that even powerful decision support systems such as SAP cannot provide ease, efficiency and clarity of conducting business operations in compliance with historically established tax laws and accounting procedures. At the same time, VAT calculations are the most laborious, since they significantly depend on the peculiarities of the tax legislation of each country. The article reveals the key directions for improving the process of making calculations for VAT using the SAP ERP system. Taking into account practical experience, the main difficulties in complying with the regulatory requirements of Ukrainian legislation in accounting of business transactions in SAP ERP are highlighted. The features of tracking the first event in VAT-related transactions with the display of accounting procedures on the example of product sales were disclosed, taking into account the technical features of the information system. The methodological and technical reasons for the impossibility of full automation of tracking the first event were shown, based on the practice of Ukrainian enterprises. The standard process for calculating a tax credit for VAT in the SAP ERP system was outlined. It was determined that the existing procedures not only meet the requirements of the current legislation, but also provide significant efficiency in the rapid achievement of correct reporting indicators. To expand the automation of the accounting process, authors' substantiated recommendations were provided, some of which were implemented in the SAP program, in particular, the mass creation of accounting documents in the system and the assignment of status for electronic tax documents in individual cases determined by the current regulatory framework.

Suggested Citation

  • Mariya Shyhun & Andrii Zhuravel, 2021. "Improving of the Tax Calculations in SAP for Ukrainian Companies," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 83-89, March.
    • Handle: RePEc:iaf:journl:y:2021:i:1:p:83-89
    DOI: 10.33146/2307-9878-2021-1(91)-83-89
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    References listed on IDEAS

    as
    1. Nataliya Shyshkova, 2018. "Prospects for the Implementation of Blockchain in Accounting," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 61-68, June.
    2. Liudmyla Sokolenko, 2019. "Digitalization as a Vector of Economic Systems Development & Accounting System Modernization," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 40-48, September.
    3. Deniza Dolbneva & Tetiana Spodaryk, 2020. "State and Prospects of Using Computer Technologies in Accounting and Analytical Work of Ukrainian Enterprises," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 22-29, September.
    4. Andrii Makurin, 2020. "Development of Accounting in the Conditions of Introduction of Modern Information Technologies," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 52-58, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    VAT accounting; VAT calculations; first event; tax credit; regulatory support; tax document; SAP ERP; decision support systems;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software

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