A global tax engine is a core component of a robust digital tax strategy designed to streamline an organization’s indirect tax compliance lifecycle. The successful implementation of a tax engine requires a well-defined and executed testing plan. When testing a new tax engine, it is essential to consider all possible scenarios to avoid real-world errors. In addition, testing is crucial in today’s rapidly changing regulatory environment, where recent tax content changes and updates can occur frequently. Organizations can enhance tax determination accuracy by automating the testing of core business and tax-based processes.
When evaluating your organization’s testing automation process, tax teams must consider scenarios involving SAP transactions and documents across order-to-cash and procure-to-pay flows. These flows are critical to the success of any tax compliance initiative. Tax teams can optimize core business processes by automating these flows and ensuring the global tax engine is integrated successfully with SAP S4HANA. This minimizes the risk of errors and ensures that the tax engine functions as expected.
Automating the testing process with solutions such as Vertex TestSuite, can help to ensure that tax testing in SAP is effective and efficient. Standardized tools in TestSuite enable SAP and Vertex integrations that empower organizations prioritizing the optimization of core business and tax-based processes to support better tax accuracy.
SAPinsider recently sat down with Suzy Soo, VP of SAP Business Development at Vertex, to provide insight on this critical topic and demo TestSuite for our SAPinsider community.