WHAT IS FISCALIZATION?
Fiscalization is a set of measures used to reduce tax evasion in transactions of business. The fiscalization law sets the rules and procedures to be followed by taxpayers in connection with the issuance and fiscalization of invoices for the sale of goods and utilities; accompanying invoices for transport of goods; cash register statement and their transactions; registration of payments for invoices for cashless transactions as and the declaration of sales and purchase books.
In the fiscalization process, transactions are reported in real time to the Administration Tax.
S-SYSTEMS SOLUTION
The workflow developed for the fiscalization process is concluded in three endpoints:
SAP ERP
S-CONNECT
Central Information System of the Tax Administration
Referring to the definition in law (Law No. 108/2020, per an amendment to law no. 87/2019 “On the invoice and circulation monitoring system) as well as the current process of implementing the new rules of fiscalization, the effects of the law are as follows:
1. For cashless transactions between taxpayers and public bodies, the effects of this law
begin on January 1, 2021.
2. For cashless transactions between taxpayers, the effects of this law begin with
1 July 2021.
3. For cash transactions from taxpayers, regardless of liability realized tax or annual
turnover, the effects of this law begin on September 1, 2021.
WHAT IS S-CONNECT?
S-CONNECT is a software solution developed to exchange data in real time between the taxpayer and Central information system of the Tax Administration according to the requirements specified in the Fiscalization law.
S-CONNECT can be used as a standalone application, or a bridge connection between SAP ERP system and CIS.
As a standalone application this software will ensure the manual creation of several document types such as Cash or Non-Cash Invoices, Corrective Invoices, Accompanying Invoices, Cash journal entries. Users can create Invoices individually or through batch upload, using excel files.
As a bridge Connection between SAP ERP and CIS, all the necessary information will be transmitted in REAL TIME from SAP to S-CONNECT, from S-CONNECT to CIS and the response message will be transmitted backwards. Custom fields will be added into the necessary tables in SAP, and they will be updated with the response information (FIC/FWTNIC/FCDC).
Additional tables will be created in SAP in order to log all the responses of the web services for the fiscalization status.
The functionality of this software solution includes the creation
and the data transmission for following categories:
1. CASH REGISTER TRANSACTIONS (TCR)
Taxpayer Cash Register
Cash daily Balance
Cash Deposit/Cash Withdrawal
2. INVOICE CREATION
Cash Invoice
E-Invoice
Corrective Invoice
3. WAREHOUSE TRANSFER INVOICE
For each one of the three procedures for carrying out a stock transfer in SAP, all the necessary data will be validated. This will assure that there is no data inconsistency that will prevent the transfer document to be posted in accounting in SAP or to have any wrong information when processed in S-Connect/CIS.
4. PURCHASE INVOICE
All the information of Purchase invoices which is displayed in the Tax Administration Platform is transmitted in SAP ERP System. Each purchase invoice is associated with a Status that defines if the invoice is Accepted or Denied from the Buyer.
5. SAP REPORTS AND RE-FISCALIZATION
Using SAP Reports the user can easily identify which of the invoice is fiscalized by using filters. When the fiscalization process is not finalized with success, the user can start the fiscalization process again for each invoice that does not contain Fiscal Identification Code.