Implementation of SAP DRC for Poland

Contents‍

• Digitalization Trends & Legal Background of e-Invoicing in Poland
• Solution Overview
• Deep-Dive for Electronic Invoice Exchange Through KSeF

1.Digitalization Trends & Legal Background of e-Invoicing in Poland

1.1 Legal Background
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September 11, 2019 – e-invoicing requirements for B2G were announced in Poland based on European Commission regarding directive 2014/55/EU on electronic invoicing in public procurement.

January 1, 2022 – Optional e-invoicing for B2B was introduced based on Polish rules (KSeF – National system of e-Invoice)

March 30, 2022 – Poland has received the derogatory authorization from the EU commission to implement a mandatory National System of e-Invoices (KSeF)

June 17, 2022 – The Council of the European Union has agreed to make electronic invoicing in Poland mandatory from January 1, 2024.

December 1, 2022 – The ministry of Finance has started the public consultation on the project of mandatory e-invoicing through KSeF. The ministry of Finance moved the legal obligation to July 1, 2024. Business will need to integrate their accounting systems with KSeF or use the government portal/API.

Note: B2C transactions are out of scope for KSeF.

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1.2 Electronic Invoices in Poland

Krajowy System e-Faktur (KSeF) – National System of e-Invoices

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The XML format used by KSeF is referred to as XF (Extendible Format). The XML Schema is called FA.

Scope of Electronic Invoice Exchange Through KSeF

• Generation of electronic invoices in XML format (FI, SD) for B
• Tax Invoice
• Down-payment Invoice and Final Invoice
• Correction Invoice
• Establishing an interactive session with authorization token
• Manual or automated invoice submission to KSeF by interactive session (1 invoice per 1 XML)
• Receiving and storing KSeF registration number and acquisition date in SAP Document     and Reporting Compliance
• XML file encryption
• A mechanism to support supplier invoice download

2. Solution Overview

SAP Document and Reporting Compliance (SAP DRC) is SAP's unified solution for managing e-invoicing, real-time reporting, and statutory compliance across the globe a single platform that is globally scalable and locally compliant.

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2.1 Key Benefits

• Digitally transform the entire end-to-end process
• Promote consistency, operational efficiency, and process automation
• Ensure visibility into compliance status and support comprehensive audit trail documentation
• Minimize recurring costs associated with maintaining compliance

2.2 One Solution to:

• Enable the shift from periodic statutory filings to real-time transaction-level compliance
• Maintain alignment between live business document submissions and statutory reporting requirements
• Support     reconciliation of internal financial data with information hosted by tax authorities

2.3 SAP Document and Reporting Compliance – Two Components

SAP DRC is an embedded implementation and not a side car implementation in SAP ERP / SAP S/4HANA.

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Architecture Components

On-Premise Component (Yellow) - Facilitates the global framework to manage electronic documents that are created automatically and electronically exchanged to the external world. Also manages responses including the KSeF number which is embedded in the business document for monitoring.

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Cloud Component (Blue) - Based on SAP Business Technology platform, enables integration with tax authority and delivers country-specific content. The local format for Poland is handled in this component.

The look and feel of electronic invoices will be the same for all countries, while the cloud component delivers country-specific content. The public cloud infrastructure is maintained by SAP.

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2.4 SAP Document and Reporting Compliance, Cloud Edition
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Depending on the country, the cloud edition can connect to different partners and different national systems. This functions as a central hub to manage the local integration that is required.

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3. Deep-Dive for Electronic Invoice Exchange through KSeF

3.1 Sample Process for Electronic Exchange through KSeF of B2B Domestic Invoices

• Seller posts a customer invoice and this will create an e-Document.
• The e-Document will be mapped into the format required by the tax authority     and then it will be encrypted and electronically signed.
• The encrypted and electronically signed invoice document is submitted to the tax authority via the peppol network.
• The seller can request the final status from the tax authority. The tax authority will either approve the document or respond with issues if any. The seller has to correct the issues and resubmit the invoice to the tax authority again.
• Buyer can download all the invoices from tax authority and create an e-Document for each invoice and supplier invoice can be posted on the Buyer side.
• The entire process is automated using job scheduling.

3.2 Electronic Exchange through KSeF of B2B Invoices to Foreign Customer

In this situation, the electronic invoice for a foreign customer cannot be downloaded directly from KSeF. The seller should send it directly to the Buyer.

Q&A

Q: Is SAP DRC a side car implementation?

A: No, SAP DRC is not a side car implementation. It's implemented in a two-component approach where one component is embedded in SAPERP / SAP S/4 HANA and the second component is hosted on the SAP Business Technology platform with the help of a SAP maintained public cloud service or a Customer tenant.

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