 |
|
| |
Typical Local Requirements for SAP Roll out in Japan
For consultation, please feel free to email us at  or fill up our inquiry form.
| Billing and Bank Interface |
Japanese Bank Association (Zenginkyo) provides common formats for
bank interface. There is no need to create Bank Interface by bank. SAP provides Domestic transfer protocols and Bank statement protocols. On the other hand, SAP supported foreign transfer protocols may not work in some cases.
Solution:
Use standard SAP function to create DME file for Domestic transfer
and Bank statement. Send it via the EB (Electronic Banking) software
provided by the bank. However, utilization of Bank EB software may incur additional cost.
Manage Foreign transfer data by EB software and execute clearing of AP items in SAP by manual process. |
 |
| EDI |
EDI format is determined by each industry (Pharma, Electronics,
Consumer Goods, Retail, etc.)
Solution:
Requires interface programs development and EDI server. |
|
| Promisory Notes |
Payment by Promissory Notes is one of the major payment methods in Japan. After customer receives the Promissory Note, customer requests the Bank to collect cash based on the payment due date.
Solution:
For customer, use standard Bill of Exchange function in SAP. Mass
processing is required. For vendor, to clear AP and post Notes
payable by manual payment is common. It is recommended to
minimize the payment method as much as possible before starting to use SAP. |
|
|
|
|
| Asset Assignment |
Depreciation Keys |
The rates are straight line for buildings and
declining balance for all others. The useful life is
determined by reference to the Japanese tax
authority’s tables which gives the useful life for
each type of asset. Depreciation is initially based
on 90% of cost value. If this is reached then 50%
of the remaining balance can then be further
depreciated. Effectively this means there is a 5%
remaining value to all assets including property.
Solution:
Copy standard depreciation area for Japan. Some customization is required to to fit each company
requirements. |
| |
|
|
| |
Net Worth Tax |
Net Worth Tax is a tax on the NBV of all fixed
assets based on the value at the first day of the
year. Need to use some master fields in the asset
master for the standard report. There is a special
report for net worth tax that must be run annually
by city.
Solution:
Use standard SAP function to prepare the tax
return information (Manual reporting is required).
Activate additional component for Net worth tax (Additional Consulting fee is required) . |
|
| Tax |
Consumption
Tax (VAT) |
5% VAT is used in Japan. SAP offers standard tax
codes and calculation.
Solution:
Use standard SAP customization.
Additinal tax codes may be needed to categorize the base amount. |
| |
Withholding
Tax |
Withholding Tax is for payment to individuals
(Lawyer, Tax consultant, Photographer etc.).
Withholding Tax needs to be calculated and
deducted at time of payment by the paying
company.
Solution:
Extended Withholding Tax function is required if
the transaction volume is high. Otherwise, manual control is adequate. |
| |
Stamp Tax |
If Promissory Note is used to pay a vendor,
Stamp tax has to be paid. Promissory Notes are split by the amount to minimize the stamp tax.
Solution:
Manual control is common. |
Statutory
Report |
B/S |
Japanese format required, but no country COA
coding rule. |
| |
P/L |
Japanese format required, but no country COA coding rule. |
| |
Cash Flow |
Ditto (Stock Exchange market requirement) |
| |
Production Cost Report |
Ditto (if the company has manufacturing plant) |
For consultation, please feel free to email us at or fill up our inquiry form.
|
|
|
|
| |
