All for One Payment Backlogs in SAP is a package of solutions that enable the adaptation of SAP systems (ERP, S/4HANA) to Polish regulations preventing payment backlogs. The solution calculates automatically and on an ongoing basis the amount of adjustments to the output and input VAT tax base by the so-called bad debt relief.
On 1 January 2020, the “Act on Amending Certain Acts to Limit Payment Backlogs" entered into force in Poland. Its aim is to reduce payment backlogs and strengthen the position of creditors in commercial transactions. The regulations introduce the obligation to prepare an annual report on payment practices applied by the enterprise.
The new regulations also specify the possibilities of recovery the output VAT on overdue receivables and the obligation to correct the input VAT by the unpaid liability (“bad debt relief"), which enables the company to improve its cash flow.
The All for One Payment Backlogs in SAP package consists of components:
- handling the bad debt relief for VAT
- generation of data for the annual report on payment practices
Our solutions automate the process of calculating and processing data on statuses of counterparties’ payments based on information in the SAP system. As a result, the use of the bad debt relief is much easier and has a low risk of error. Similarly, data for the annual report on payment practices is automatically prepared in SAP.
The All for One Payment Backlogs in SAP package is developed on the basis of subsequent information from the Polish Ministry of Finance, including the information specifying the requirements as to the content and structure of the annual report.