Turkey SAP Implementation / Roll-Out

Localization Topics
Globalization Services
May, 2022

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 Agenda
General Ledger Accounting
▪ Turkish Uniform Chart of Accounts & Mapping
▪ Tax Ledger
▪ Currencies and Exchange Rates
▪ Tax Codes & Tax Reporting
▪ Asset Accounting
▪ Material Costing
▪ Year-End Closing Process & Legal Reporting

Accounts Receivable
▪ Bills of Exchange & Post-Dated Cheques
▪ Pre-numbered invoices
▪ Return invoices

Accounts Payable
▪ Import Costs
▪ Return Invoices

e-Package Solutions
▪ e-Invoice
▪ e-Ledger
▪ e-Archive
▪ e-Delivery

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General Ledger Accounting
 Chart of Accounts

• It is called as TDHP (Turkish Uniform Chart of Account)

• Companies should be reporting according to TDHP
• First three digits are fixed
• Structure:
• B/S

• P/L
• Accounts starting with 6: Revenue / Expense Accounts
• Accounts starting with 7: Expense Accounts
• Others:
• Accounts starting with 8: can be used freely by companies. Should have zero balance at the end of period
• Accounts starting with 9: Contingent liability accounts
• In country version CATR is available as a sample chart of account

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 Chart of Accounts

• In case operational chart of account is not TDHP, it’s required to map local and corporate CoA
• Some accounts can cause mapping problems like;
• COGS accounts: There are 4 COGS accounts, product, trade goods, services and others
• Sales revenue accounts are different for domestic and foreign sales
• Sales revenue accounts and return sales accounts are different
• TDHP uses some reflection accounts to make closing of expense accounts
• Referring to BOE/Cheques some interim accounts need to be created
• For some of the B/S accounts like pre-paid expenses there is a differentiation between short and long term
• Expense accounts have specific classes like
760: Sales and distribution expenses
770: Administration expenses
780: Financial expenses
740: Service expenses
750: R&D expenses
730: General production expenses
720: Labor costs
710: Material costs
• Physical inventory results are posted to B/S accounts first then reclassed to P/L
• Paid and unpaid capital is posted to different accounts

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 Financial Statement Version

1
Current Assets
2
Non-Cur. Assets
3 Liabilities

10
Liquid Assets
25
Tan. Non-Cur. Assets
30
Financial Lia.
32 Suppliers

100Cash in hand
102 Banks
253 Machinery
255 Fixtures

12
Trade Receivables

120Customers
121
Notes Receivable

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 Local Currency & FX Differences

• Turkish Lira (TRY) is the local currency

• Companies should do their legal reporting in this currency
• No other hard or index currency reporting is mandatory
• All foreign currency items should be valuated with Central Bank Buying rate at the end of periods
• It is needed to enter daily Central Bank Buying rates to fulfill legal requirement in some
transactions
• Different exchange rate gain and loss accounts are used for banks, customers, loans and vendors
• It is a legal requirement to issue an exchange rate difference invoice if a good or service is sold in
foreign currency to a customer in the local market and if there is an exchange rate gain in payment.

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 Tax Codes

• VAT codes are available in Turkish country version

• There are some special kind of VAT’s which are as follows:
• Witholding VAT (SAP Note 867889)
• Special consumption tax is used as excise duty for expensive goods, beverages and oil (SAP Note 536952)
• VAT BA and BS report which reports monthly sales and purchases over 5.000,00 TRY excluding tax (See note 1003524)
• “Advance return for Tax on Sales/Purchase” report is used for reporting of output and input VAT
• Input VAT List (SAP Note 1514545 - 1548487)
• Sales Invoices List (SAP Note 1578847)
• Witholding tax is used for vendors

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 VAT with Witholding

Refer to OSS note for 867889 WHT configuration for vendor invoices

Refer to the below scheme during the tests for how the VAT with witholding should look like in the accounting document:

VAT 18% with WHT (Deducted VAT) 9/10 18% 16%

Debit Credit
Customer 1.018,00 Amount due
PL 1.000,00 BASIS
Output VAT 180,00 18%
Witholding (Deducted from VAT) 162,00 9/10

Total due: 1.018,00

Basis: - 1.000,00
Output VAT: - 180,00 "YOU HAVE TO BOOK THE WHOLE VAT AMOUNT TO OUTPUT TAX GL ACC."
Deducted VAT: 162,00 "YOU HAVE TO POST THIS AMOUNT TO A SEPARATE GL ACC."

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 Asset Accounting

• Country specific chart of depreciation is available

• Asset classes are defined in parallel with Turkish Uniform chart of accounts
• Depreciation keys are customized for linear and declining balance methods according to useful life
• Asset history sheet is used for reporting purposes
• Depreciation costs are to be allocated to functional cost accounts (See note 583971 and 940758)
• Special depreciation key is to be used for vehicles for prorata depreciation(See note 868774)
• A separate revaluation area is defined to be used for inflation adjustment

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 Actual Costing

• All materials should be valuated with actual costs. If standard costing is used then price differences should
be reflected to stock accounts or cost of good solds at the end of the periods
• For purchased materials usually moving average price is used. Periodic moving average price can also be
used if material ledger is active
• For produced materials actual costing requirement can be covered with the functionality of material ledger
• If material ledger is active then usage of following functionalities is business practise:
• Setting standard prices for materials (all types of materials) at each month
• Using standard prices during month for material valuation
• Calculating actual costings at each month end (multi level actual costing)
• Cost of goods sold revaluation

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 Year-End Closing

•Reflection postings are required to be made at the end of the year.

• Reflection accounts are 711, 721, 731, 741, 751, 761, 771 and 781 accounts
• No special program to make these postings exist, postings are made manually
• Other year end closing postings are made via Turkish specific closing programs.

• 7 accounts closing programs

• 6 accounts closing program
• B/S accounts closing and opening program
• Special document types are used for year end closing and opening postings

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 Legal Reporting

•Document journal (S_ALR_87012287)

• Should be taken according to Turkish uniform chart of account
• All accounting documents are sorted and renumbered according to posting date
• To be printed in Turkish to pre-stamped papers

• General ledger (S_ALR_87100205)

• Should be taken according to Turkish uniform chart of account
• Documents are numbered according to the document numbers produced in document journal
• To be printed in Turkish

• Balance sheet and P&L statement

• Should be structured according to levels of Turkish uniform chart of account
• Turkish country version contains a financial statement version (BATR) for this structure
• To be printed in Turkish

• Trial balance
• This report is not a legal requirement but it is usually a required report in external auditing

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Accounts Receivable
 BoE & PDC

• This functionality covers local business practises for postdated cheques and bill of exchanges
• It is a special development for Turkey
• Cheque and bill of exchange programs covers the following functionality
• Bill of exchange or cheques portfolio
• Collection of cheques / bills of exchanges
• Calculation of the average due date of cheques / bills of exchanges
• Handling of bounced cheques / bills of exchanges
• Payment to vendors with cheques / bill of exchanges
• Transfer of cheques / bills of exchanges
• Cheques / Bills of exchange history
• Enhanced cheques / bill of exchange list
• Calculation of cheque and bill of exchange rediscount

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 Pre-numbered Invoices and Delivery Notes

• Delivery Note and Invoice outputs are printed on pre-numbered forms in TR as a legal obligation.
• The serial numbers together with the related booking code are confirmed by government before usage,
which represent the legal commitment.
• During audits, the missing/lost series are to be disclosed, otherwise penalty clauses are applied.
• It is a business practise to track official invoice number in the accounting document of the invoice.
• Possible solutions:
• Official document number is written to the document created in the system as a reference number.
• There is an automated solution for prenumbered forms. Transaction code is IDCP. This solution is also available for Turkey. More
information can be found in http://help.sap.com/saphelp_erp60_sp/helpdata/en/35/ff8937e89b3d71e10000009b38f842/frameset.htm
• IDCP is used to print invoices on preprinted/prenumbered forms; however if the invoice consists more than one page, it prints them
as different invoices though all pages belong to one document. In order to enable system to print form proper to Turkish legistlation,
please apply note 1703104 and 1793561.

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 Return Invoices Instead of Credit Memos

• Credit memos to suppliers should be issued as return invoice. Output VAT should be used for this kind of
invoices instead of input VAT
• Customers should issue return invoice for credit memos. This kind of invoice should contain input VAT
instead of output VAT
• Return invoice is handled with customizing in Sales and Distribution Module
• There is an advance development for Turkey to print invoice from MM module (See note 940757)

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Accounts Payable
 Import Costs

• There is a special rate used for import costs. This is the Central Bank buying rate at the time of import
declaration. Imported goods should be valuated in stock with this rate
• All costs incurred until the end of importation should be followed in a B/S account under an import file
number and then added to the stocks as additional cost (i.e. transportation costs, insurance costs, custom
costs, etc)
• There is no special program exists in country version. Standard processes are used to follow import costs

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 Return Invoices Instead of Credit Memos

• Credit memos to suppliers should be issued as return invoice. Output VAT should be used for this kind of
invoices instead of input VAT
• Customers should issue return invoice for credit memos. This kind of invoice should contain input VAT
instead of output VAT
• Return invoice is handled with customizing in Sales and Distribution Module
• There is an advance development for Turkey to print invoice from MM module (See note 940757)

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Document and Reporting Compliance
Solutions
 Turkish Regulation for electronic document processing: Highlights

• Document and Reporting Compliance – Electronic Invoice Processing comprises Turkish scenarios for
electronic invoice, consumer invoice, electronic export registration and electronic delivery notes.
• File according to UBL-TR standard with digital signature required by tax and revenue administration.
• There is a need to have a contract with accredited service provider in Turkey. This service provider
actually must connect to electronic applications of taxand revenue administration.
• Revenue Administration receives and validates electronic documents, puts it to receiver’s post box,
and updates status to sender.
• All documents need to be archived inside Turkish borders.

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 Scenario Overview of electronic document processing for Turkey

• Basic Invoice - Temelfatura

• Commercial Invoice – Ticarifatura
• Consumer Invoice - e-Arşiv
• Export Invoice – Ihracat
• Delivery Note – e-Irsaliye
• Find more information in SAP help portal
S/4HANA Cloud:
Supported Compliance Tasks by Country/Region | SAP Help Portal
S/4HANA:
Supported Compliance Tasks by Country/Region | SAP Help Portal

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 Further Information regarding electronic document processing for Turkey

• Check Document and Reporting Compliance product page:

Document Reporting and Compliance | SAP

• SAP Note 2214845

eDocument Turkey - eInvoice: Installation Overview (Applies to SAP ERP)

• SAP Note 2736407

eDocument Turkey - eInvoice: Installation Overview (Applies to SAP S/4HANA)

• SAP Note 2711030

eDocument Turkey - Delivery Note: Installation Overview (Applies to SAP ERP)

• SAP Note 2726671

eDocument Turkey - Delivery Note: Installation Overview (Applies to SAP S/4HANA)

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 Overview of statutory reporting for Turkey

• E-Ledger Report - E-Defter

• Input VAT Declaration - İndirilecek KDV Listesi
• Inventory Ledger - Envanter Defteri
• Purchase Sales Declaration (Ba-Bs Forms) - BA BS formları
• Sales Invoice List - Satış Faturası Listesi
• Find more information in SAP help portal
S/4HANA Cloud:
Supported Compliance Tasks by Country/Region | SAP Help Portal
S/4HANA:
Supported Compliance Tasks by Country/Region | SAP Help Portal

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 Further Information regarding statutory reporting for Turkey

• Check Document and Reporting Compliance product page:

Document Reporting and Compliance | SAP

• SAP Note 2480067

Replacement of Existing Legal Reports with SAP Document and Reporting Compliance - Statutory Reports

• SAP Note 2865499

TR:ACR:E-Ledger: File Structure Explanation (Field Mapping)

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Appendix
Appendix

• See Turkey in SAP Help Portal

S/4HANA Cloud: Turkey | SAP Help Portal
S/4HANA: Turkey | SAP Help Portal
• Turkish country specific notes in service.sap.com
– 1003524 VAT B Report
– 1001774 Correspondence Forms for Turkish Best Practise SAPScripts
– 940758 Turkey: Allocation of depreciation costs to func.cost.accts.
– 940757 Turkey: Invoice printout for credit memo in LIV
– 868774 Turkey: Special depreciation for vehicles
– 867889 Turkey: Witholding VAT customizing (KDV tevkifati)
– 731961 Adding the "New Turkish Lira" currency code TRY
– 583971 Distribution of depreciation costs to functional accounts
– 536952 Turkish Excise Duty
– 1548487 Turkey Duty Drawback (Input VAT List)
– 1514545 Input VAT List
– 1578847 Sales Invoices List
– 1784165 Turkish Lira Sign , U+20BA
Appendix (IFRS Related Notes)

• Revenue Recognition:
• 820417 Implementation guide for revenue recognition
• 1172799 New version of Best Practices for revenue recognition
• 782758 Prerequisites for using the Revenue Recognition functionality
• 777996 Account settings for revenue recognition process
• 1505492 SD revenue recognition - Lean implementation

>>>Before activating ‘Revenue Recognition’ you need to get use of assessment support from
SAP which is free of charge. Therefore please create a ticket with component SD-BIL-RR
• Provision for severence (HR):
• 1698699 IFRS / TFRS Seniority Report

• Rediscount:
• 1753115 Turkey: Rediscount for Vendors&Customers Configuration
• 1653335 F107, method 10: Items with a life of less than one month
• 1654827 F107, Method 10: Item with posting date = key date (Please create an OSS
message with component XX-CSC-TR to use this note.
• 1656667 Transaction F107, method 10: Entry 0 for overall runtime
• 1684254 F107, excluding bill of exchanges issued to vendor from F107 (Pilot release;
please create an OSS message with component XX-CSC-TR in order to test the note as pilot
customer.)

• 1703104/1793561 Prenumbering Turkey : Multiple Pages

• Appendix

• IDCP Related OSS Notes:

– 1707053 Official document numbering / transaction IDCP for Turkey 26.07.2012
– 1703104 Turkey : ODN Prenumbering Multiple Pages 28.09.2012
– 1793561 Prenumbering Turkey:Problems after implementing Note 1703104 29.11.2012
– 1803403 IDCP TR : Printing issue after due to storage mode 29.01.2013
– 1816131 IDCP TR : Printing issue in delivery doc due to storage mode 05.03.2013
– 1826433 IDCP Turkey: Correction to note 1703104 27.03.2013
– 1914541 TR: Multiple issues in IDCP report for Printing 13.01.2014
– 1964324 Turkey: Additional information to execute the IDCP report to process Billing/De 16.01.2014
– 1877355 IDCP Turkey: Correction to Note 1826433 16.03.2014
– 1963622 TR-IDCP: One SD invoice have multiple accounting documents due to more than 999
– 1960808 Turkey: In IDCP report, text of the messages 861, 862 is not relavant for deli