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SAP Tax Classification and Reporting for FATCA

Product Information


SAP Tax Classification and Reporting for FATCA


1.0 SP01

Based On

  • SAP Banking as part of SAP enhancement package 5 or 6 for SAP ERP 6.0

  • banking services from SAP 6.0 or higher

Documentation Published

June 2013


The solution covers classification of accounts and reporting classification of relevant accounts according to the FATCA regulations.

The classification part of the solution identifies and classifies business partners for tax reporting. It can be used for initial classification of preexisting accounts, for classification of new accounts, and to handle change of circumstances. The system executes classification based on the business partner level including related accounts.

The classification results are the basis of the reporting part of the solution, which generates reporting data for the business partners of relevance.


The solution reads data from SAP Business Partner and integrated account systems, which may be both SAP and non-SAP. It reads the business partner and account data as input to indicia checks and balance checks. The results of indicia and balance checks, optionally enhanced by user input, define the classification results.

The main classification result is a tax compliance status assigned to the classified business partner. A tax compliance status can be one of the following:

  • Relevant

  • Not Relevant

  • Unknown

The classification details log holds details of a classification. You can view log entries and enhance the log with further input. An example for further input is the documentation related to a business partner in the context of documentary evidence.

The system automatically handles the change of circumstances – for example, a change in address data if a business partner moves from one country to another. A combination of event triggers and event handling takes care of change of circumstances processing. Examples of event reactions are: reclassification, triggering activities to automatically get clerk support, and so on. The system allows you to configure to define different behaviors for the changes in data.


The system also handles reporting in the form of collecting and preparing data for reporting.