What is SAP Document and Reporting Compliance?

Overview: SAP Document and Reporting Compliance

SAP DRC is the comprehensive SAP solution for meeting legal and regulatory requirements. Companies benefit from SAP DRC through automated processes for reporting, validation, and submission, as well as a central platform for global compliance.

What is SAP Document and Reporting Compliance (SAP DRC)?

SAP Document and Reporting Compliance (SAP DRC) is the comprehensive SAP solution that enables companies to meet compliance requirements and comply with country-specific regulatory demands.

With SAP DRC, companies benefit from a central platform that combines electronic documents, reporting, and statutory reports.

SAP Document and Reporting Compliance helps companies reliably meet both global and regional or local legal requirements. Automated processes for creating, validating, and submitting legally required reports not only make compliance more efficient but also more transparent.

SAP DRC is available for both on-premise and SAP cloud systems, such as private or public cloud environments.

What features does SAP DRC include?

SAP Document and Reporting Compliance (SAP DRC) includes a range of powerful tools to help companies comply with legal requirements.

• With SAP DRC, companies can efficiently and accurately generate VAT returns, reports on withholding taxes, financial statements, and asset reports.
• Additionally, the solution supports the creation of summary reports. These reports can be automated and electronically transmitted from an SAP system to the relevant authority.
• Furthermore, scenarios for electronic invoicing (e-invoicing) and electronic reporting are covered.

This ensures that companies can meet all regulatory requirements worldwide with a single solution, and all information is centralized.

Which SAP DRC features are country-specific?

SAP provides a list of the reports currently required (e.g., on withholding taxes or financial statements) for each country that must be fulfilled.

This list of "in-scope" reports is continuously expanded to accommodate new legal requirements. Additionally, for each new calendar year, SAP Notes are released with the latest updates.

With SAP Document and Reporting Compliance (SAP DRC), SAP offers a solution that ensures companies stay up-to-date, as the classic legal reporting solutions from SAP are no longer being updated.

What does compliance mean?

Compliance means adhering to all applicable legal, regulatory, and internal corporate regulations. It involves ensuring that all business activities are aligned with legal and ethical standards.

For companies, compliance not only means avoiding penalties or legal consequences but also promoting trust, integrity, and transparency with business partners, customers, and society.

What are E-Reporting and eDocument?

Electronic reporting (E-Reporting) refers to the process by which companies electronically submit VAT data directly to tax authorities.
The E-Reporting mandate allows tax authorities to better analyze VAT information, track economic developments and trends, and detect inconsistencies, errors, and fraud attempts early.

Although E-Reporting is often linked to an E-Invoicing mandate (e-invoice), it can also exist as a standalone requirement.

SAP uses the same solution for both cases — E-Invoicing and E-Reporting — called eDocument. SAP Document and Reporting Compliance (SAP DRC) is based on the eDocument framework.

The unified platform ensures efficient and seamless processing, creation, and submission of electronic documents, helping companies meet their legal requirements.

What does the SAP DRC Dashboard offer?

The SAP DRC dashboard is the central entry point for managing and monitoring electronic documents.

It provides companies with a comprehensive overview (including proactive monitoring of document status) and efficient, often automated control of all document-related processes — such as e-invoices, tax reports, and other relevant business documents.

With the SAP DRC dashboard, companies save time and reduce the risk of compliance violations. It creates a central, clear platform that promotes both transparency and efficiency in handling electronic documents.

Can SAP DRC be integrated?

SAP Document and Reporting Compliance (SAP DRC) offers secure integration with government authorities and business partners to enable the reliable exchange of data.

The solution ensures full traceability (end-to-end traceability)—from the creation of electronic documents and statutory reports to their electronic submission.

Furthermore, SAP DRC enables real-time automated exchange of electronic documents through integration, supplemented by features for monitoring and error correction.

Companies also benefit from comprehensive tools for preparing, reconciling, approving, and submitting statutory reports, making compliance processes more efficient and reliable.

Through graphical representations of deadlines, it is possible to keep track of all entities and always respond on time.