SAP DRC FAQs and Troubleshooting Guide:

S.No FAQ/Issue Description/Question Solution/Answer

1 What is SAP DRC? SAP DRC is a compliance reporting tool used It integrates with SAP
for electronic invoicing, tax compliance, and modules like FI, SD, and MM
regulatory reporting. to meet country-specific tax
and compliance
requirements.
2 How do I configure tax codes Tax codes need to be configured as per local Use transaction codes such
for SAP DRC? jurisdiction requirements. as FTXP to configure tax
codes and map them
correctly to compliance
reports.
3 How to handle missing tax The system prompts "Tax code is missing for Verify the tax code mapping
code errors? jurisdiction." in the master data and
transaction-level
configuration under DRC
settings.
4 How to set up electronic Electronic invoicing setup involves defining Configure the e-invoicing
invoicing in DRC? formats, communication channels, and format under DRC > Settings
compliance requirements. and test using the XML
viewer for correct output.
5 Why are invoices being Reasons include incorrect formats, missing Cross-check invoice formats
rejected? data, or non-compliance with local and mandatory fields.
regulations. Update the configuration to
match local requirements.
6 How to troubleshoot real- Real-time VAT reports fail due to connectivity Check system connectivity,
time reporting errors? or incorrect report parameters. ensure correct
authorization, and validate
reporting parameters in the
DRC settings.
7 What are SAF-T reports? SAF-T is a standard audit file for tax, used for Configure SAF-T templates
reporting in certain EU countries. under the DRC settings and
map them to the respective
tax accounts.
8 How to resolve XML XML output does not meet schema Use the XML validator tool
validation issues? validation. in SAP DRC and adjust the
schema as per government-
provided standards.
9 Can SAP DRC handle multiple Yes, SAP DRC supports multi-jurisdiction tax Configure jurisdiction-
jurisdictions? compliance. specific rules and maintain
tax codes for each
jurisdiction separately.
10 How to integrate SAP DRC Integration issues arise with third-party tax Use APIs or IDocs for
with non-SAP systems? tools. seamless integration with
 external systems like
Avalara or Vertex.
11 What to do if DRC reports are Reports fail due to missing data or incorrect Verify master data and
not generating? configurations. ensure all mandatory fields
are populated before report
generation.
12 How to update DRC Country regulations change frequently, Apply legal changes using
configurations for new rules? requiring updates in DRC. SAP Notes or upgrade to the
latest support package for
DRC.
13 What is digital signature Digital signature ensures the authenticity of Configure the digital
setup in DRC? electronic invoices. signature under SPRO >
Financial Accounting >
Document Compliance.
14 Why are archived reports not Archived reports may not appear in the Ensure the archiving object
retrievable? search results. and storage locations are
correctly set up in SAP
ArchiveLink.
15 How to handle incorrect SAF- Incorrect mapping in SAF-T reports leads to Re-map the accounts in the
T file submissions? rejection. SAF-T configuration and
regenerate the report.
16 Can DRC handle tax Yes, SAP DRC supports tax exemptions with Maintain tax exemption
exemptions? proper configuration. rules in the tax procedure
configuration and map
them to the DRC settings.
17 How to monitor DRC Missing workflows or incomplete workflows Monitor workflows using
workflows? cause issues. SWI1 or the DRC workflow
management console.
18 How to fix submission errors Errors occur due to incorrect credentials or Update the credentials in
in real-time VAT? authorization failures. the communication settings
and check the role
assignments for user access.
19 Why is the digital invoice not Digital signatures may fail due to invalid Renew the digital certificate
signing? certificates. and upload it to the DRC
digital signature
configuration.
20 How to automate compliance Manual approval processes slow down Use SAP Workflow to
report approvals? compliance. automate the approval
process for compliance
reports.
21 What is the best way to test Testing scenarios include e-invoicing, tax Use the SAP test system
DRC configurations? reporting, and SAF-T generation. with sample data to validate
DRC configurations against
real-world scenarios.
22 How to resolve issues with Duplicate invoice numbers create conflicts Enable duplicate invoice
duplicate invoices? during submissions. check in DRC settings to
prevent duplication at the
 transaction level.

23 How to configure DRC for Each country has unique tax compliance Use SAP localization settings
country-specific taxes? requirements. and implement country-
specific SAP Notes for
configuration.
24 Why are some invoices Missing invoices may result from incorrect Verify document types and
missing in reports? mapping or incomplete data. ensure they are included in
the reporting selection
criteria.
25 How to implement Withholding tax needs specific configuration Configure withholding tax
withholding tax in DRC? for compliance reporting. codes in SPRO > Financial
Accounting > Taxes >
Withholding Tax.
26 Can DRC support dynamic Users often need flexible templates for Use SAP Smart Forms or
report templates? reporting. Adobe Forms to create
dynamic templates in DRC.
27 How to fix incorrect tax rate Incorrect tax rates affect compliance Check the tax procedure
calculations? accuracy. configuration in OBYZ and
verify the assigned tax
codes.
28 How to handle missing Users encounter errors due to insufficient Assign appropriate roles in
authorization errors? authorizations. SAP DRC, such as
SAP_BR_COMPLIANCE_MA
NAGER or
SAP_BR_FIN_ACCOUNTANT.
29 How to configure Communication channels ensure the Set up channels in SPRO >
communication channels? transmission of e-documents to external Financial Accounting >
authorities. Document Compliance >
Communication Settings.
30 How to fix rejected real-time Reports are rejected due to incorrect formats Validate the report format
reports? or validation errors. against the schema
provided by the regulatory
authority.
31 What is the role of digital Digital stamps authenticate e-documents. Configure digital stamps in
stamps in DRC? compliance with local
requirements using SAP DRC
settings.
32 How to implement multi- Multi-level workflows streamline compliance Use SAP Workflow
level approval workflows? processes. Management to configure
multi-level approvals based
on organizational roles.
33 How to handle mismatched Mismatched data leads to file rejections. Perform data consistency
data in SAF-T files? checks and correct
mismatched data in master
and transactional records.
34 Why does DRC not generate Missing master data or incorrect selection Verify that all master data
output for some reports? criteria can cause this issue. and report parameters are
correctly configured in DRC.
35 Can DRC handle periodic tax Periodic reconciliations are essential for Use DRC tax reconciliation
reconciliations? compliance. tools to match tax postings
with compliance reports.
36 How to fix connectivity issues Failed submissions often result from Test connectivity using
with government portals? connectivity problems. DRC's built-in diagnostic
tools and update network
credentials if required.
37 How to manage document Proper archiving is crucial for long-term Use SAP ArchiveLink to
archiving in DRC? compliance. configure document
archiving rules for
compliance reports.
38 Why is the tax reporting Manual processes or system delays can cause Automate report scheduling
deadline missed? missed deadlines. using SAP DRC's scheduling
feature.
39 How to resolve incorrect e- Validation errors occur when e-invoices fail Check mandatory fields and
invoice validation? regulatory checks. ensure schema compliance
in the e-invoice
configuration.
40 How to implement reverse Reverse charge is required for specific Configure reverse charge
charge mechanism? transactions in certain jurisdictions. rules in tax procedures and
map them to relevant
accounts in DRC.
41 Can SAP DRC support bulk Bulk data processing is needed for high Use batch processing
data processing? transaction volumes. features in DRC for bulk
data uploads and
processing.
42 How to address incorrect GL Incorrect postings lead to mismatched Validate GL account
account postings? compliance reports. mapping in tax procedure
configuration and correct
the postings.
43 How to manage tax Adjustments are often needed for Use adjustment postings in
adjustments in DRC? compliance purposes. DRC and document the
rationale for audit purposes.
44 Why is the digital signature Invalid digital signatures occur due to expired Renew certificates and
invalid? certificates or mismatched settings. verify digital signature
settings in DRC.
45 How to implement DRC for Multi-entity operations require additional Use organizational structure
multiple business entities? configuration. mapping in SAP DRC to
handle multiple entities.
46 Can DRC generate real-time Real-time audit logs are essential for tracking Enable audit log tracking in
audit logs? compliance. DRC settings and configure
log parameters for detailed
reporting.
47 How to handle language- Non-compliance due to incorrect language Configure language settings
specific compliance reports? settings in reports. in the DRC template and
ensure multi-language
support is enabled.
48 How to fix DRC template Errors occur when the template fails to Debug the template using
errors during runtime? process data correctly. SAP Smart Forms or Adobe
Forms tools.
49 How to configure threshold Thresholds are needed to trigger specific Define threshold limits in
limits in DRC? compliance rules. DRC settings and link them
to reporting parameters.
50 Why is the reporting Misconfigured schedules lead to missing or Verify scheduling settings
schedule not working? delayed reports. and ensure proper time
zone alignment in DRC
configuration.
51 Can DRC integrate with External integrations enhance tax compliance Use APIs or web services to
external tax solutions? capabilities. connect DRC with external
tools like Vertex or Avalara.
52 How to fix rounding Rounding issues can cause mismatches in Use the rounding settings in
differences in reports? compliance reports. DRC to standardize
rounding rules across
reports.
53 How to handle currency Multi-currency operations often lead to Use the exchange rate
conversion issues? mismatched conversions. settings in SAP FI and
ensure consistency with
DRC configurations.
54 How to address missing Missing master data leads to incomplete Validate and maintain
master data in DRC? reports or errors. complete master data,
including business partner
and tax code mappings.
55 Why are regulatory updates Delays in implementing updates can lead to Regularly apply SAP Notes
not reflected? non-compliance. and ensure the latest
support packages are
installed for DRC.
56 How to troubleshoot missing Missing jurisdiction codes cause errors in tax Configure jurisdiction codes
tax jurisdiction codes? calculations. in SPRO > Financial
Accounting > Tax on
Sales/Purchases > Basic
Settings.
57 How to implement country- Unique numbering is mandatory in certain Use SAP DRC settings to
specific invoice numbering? countries. define country-specific
invoice number ranges
under e-invoicing
configurations.
58 How to handle inconsistent Document status may not synchronize Enable status tracking in
document status updates? between systems. DRC and check integration
with SAP modules like SD
and FI.
59 Can DRC support retroactive Retroactive adjustments are required when Use adjustment postings
tax compliance adjustments? regulations change. and retroactive compliance
settings in DRC to handle
past transactions.
60 How to handle discrepancies Reconciliation mismatches occur due to Use the reconciliation tools
in tax reconciliation? missing or incorrect postings. in DRC to compare tax
postings and report data.
61 How to resolve duplicate Duplicate files may result from incorrect Check report generation
SAF-T file generation? scheduling. schedules and adjust job
intervals to avoid
duplication.
62 Why is the e-invoice approval Delays may occur due to workflow Optimize workflows in DRC
process delayed? bottlenecks or missing authorizations. and assign the necessary
roles to users for seamless
approval.
63 How to configure DRC for Third-party validations require additional Set up external system
third-party invoice configuration. integration in DRC using
validation? APIs for validation.
64 How to manage historical Historical data is essential for audits and Use SAP ArchiveLink to
compliance data in DRC? retrospective analysis. store and retrieve historical
compliance data securely.
65 How to fix incorrect tax Errors occur due to incorrect assignment of Verify and correct the
jurisdiction mapping? jurisdiction codes to transactions. mapping in the DRC
configuration under
jurisdiction code settings.
66 How to handle partial tax Partial exemptions need specific rules in Configure partial exemption
exemptions in DRC? compliance reports. rules in tax procedures and
map them to DRC
compliance reports.
67 Why are workflow tasks not Missing triggers or incorrect configurations Check the workflow
triggering? may cause workflow failures. configuration and ensure
proper event linkage in SAP
Workflow Management.
68 How to fix incorrect SAF-T Formatting errors lead to file rejections by tax Validate SAF-T files using
audit file formats? authorities. the SAP DRC XML viewer
and ensure compliance with
local schemas.
69 How to handle error logs for Failed submissions generate error logs in Analyze error logs in SAP
failed submissions? DRC. DRC and correct issues such
as missing fields or format
mismatches.
70 Can DRC support integration Multi-system integration is required for Use SAP's middleware tools
with multiple ERP systems? centralized compliance. like SAP PI/PO or APIs for
multi-ERP integration with
DRC.
71 How to configure country- Specific formats are needed for e-invoicing Define country-specific
specific e-document compliance in different countries. formats in SPRO > Financial
formats? Accounting > Document
Compliance > Formats.
72 How to resolve timeout Timeout errors occur during large data Optimize report queries,
errors in real-time reporting? submissions. use batch processing, and
increase timeout limits in
system parameters.
73 How to implement Intercompany invoices must adhere to local Configure intercompany
compliance for intercompany regulations. rules in DRC and ensure
transactions? they align with local
compliance requirements.
74 How to resolve conflicts in Currency differences cause mismatches in Maintain accurate exchange
multi-currency reports? compliance reports. rates in SAP FI and map
them to DRC reporting
templates.
75 How to ensure data security Compliance data security is critical for Use encryption settings in
in compliance reporting? regulatory audits. DRC and implement SAP
GRC (Governance, Risk, and
Compliance) for added
security.

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