Sovos has announced that it has achieved SAP certified integration status with SAP S/4HANA for its global tax engine. The certification ensures that the integration between S/HANA and Sovos. It enables SAP customers to leverage the tax calculations provided by Sovos, for both purchasing and sales processes across the world.
Companies implementing Sovos safeguard the tax compliance of their S/4HANA implementations. They will also reduce the effort required to maintain localisation for local requirements. Sovos points out that this is becoming an increasing risk for organisations as governments adopt digital based real-time tax rules. The maintenance overhead on traditional ERP solutions as tax rules and rate evolve is often onerous.
Pawel Smolarkiewicz, chief product officer, Sovos commented: “As the digitization of tax raises the compliance stakes worldwide, companies need a complete solution for real-time tax calculation that supports them everywhere they do business and across both their purchasing and selling processes – and one that can keep up as governments implement continuous tax controls.
“The certified integration of our Global Tax Determination solution with SAP S/4HANA is the latest milestone in our 20-year partnership with SAP, and it’s an important step forward in our mission to help customers Solve Tax for Good.”
Enterprise Times: What does this mean
In a recent blog from FEI, Michael Bernard and George Salis wrote: “To comply with real-time reporting requirements, companies must be able to calculate the right tax almost immediately, making automated tax technologies and the ability to quickly and accurately collect tax data increasingly important. “
In gaining the S/4HANA certification Sovos will hope to gain better traction in the SAP ecosystem. It comes at a time when more and more companies are considering a move to S/4HANA. It could prove a good investment by Sovos.