The Role of SAP Business One for Qualified Invoice System

Blog Summary

The stated objective of Japan’s new qualified invoicing system is to improve the accuracy and speed of invoicing procedures, specifically, and in general to make tax and accounting regulations more robust. To successfully adapt to this new system and ensure its future-proofing, three factors come into play:

a comprehensive understanding of both local and global perspectives in order to grasp the full scope of implications;
skillful coordination of all the connected business processes throughout the organization;
recognition that embracing digitalization and automation is imperative to achieving the aforementioned goals.

While some may perceive this new system as a burden, be one solutions sees it as an opportunity. In fact, we embrace this change as a way to evaluate existing business practices and implement improved, integrated systems. Through our proactive approach, we seek to leverage this transition to drive positive transformation and enhance operational efficiency.

To address the diverse, ever-changing invoicing and general business needs of companies and corporations, SAP Business One offers a straightforward but robust solution that supports corporate digital transformation. And to optimize the rollouts and operations of SAP Business One for companies active in Japan, be one solutions is the perfect, service-oriented, highly trustworthy, global partner.

Invoicing Systems for Global Companies

As a new and compulsory Japanese invoicing system comes into effect on October 1, 2023, many multi-national companies are scrambling to respond.

The official name of this new invoicing system translates as the ‘Qualified Invoice System’ and is perhaps best-described by Japan’s National Tax Agency as a method for sellers to provide buyers with accurate applicable tax rates and consumption tax amounts. The government made the change in a move to resolve issues related to the proper handling of multiple tax rates and to rectify a perceived sense of injustice and distrust regarding taxable profits.

Like their domestic counterparts, overseas-affiliated companies based in Japan must also comply with the new system. As a result, the introduction of this system may present challenges for employees in charge of such processing. Firstly, they may encounter difficulties integrating this new invoicing standard with the preexisting standards used by their head offices. Secondly, the process of digitally automating these new invoicing requirements may entail a considerable amount of time and effort.

Fortunately, there’s a solution to these challenges by leveraging ERP software to issue and manage invoices. This approach minimizes the risk of manual errors while providing users with the advantages of centralized management and the improved visibility of processes, data, and information. When it comes to ERP solutions for invoicing issues, SAP Business One from be one solutions offers a complete package of integrated features, enabling seamless integration of an organization's entire global operations including adapting to evolving regulations such as the ones in Japan outlined above.

About SAP Business One

Specifically designed for small and medium-sized businesses, SAP Business One is a compact yet comprehensive ERP solution that excels at providing centralized management for any and all core business operations — the keys to business success. With its robust capabilities in sales, finance, purchasing, inventory control, and overall business management, SAP Business One has been widely adopted by numerous leading companies worldwide. This solution efficiently caters to the needs of businesses operating in multiple languages, dealing with various currencies, and complying with local regulations, making it a trusted choice in the industry.

SAP Business One provides a comprehensive set of advantages that are essential in today’s competitive business climate. These advantages encompass:

Facilitating swift and precise decision-making through data visualization and real-time analytics, thus enabling informed choices;
Offering scalability at elevated levels, promoting flexibility especially during periods of business expansion;
Cost-effective implementation costs and swift rollouts;
Providing a user-friendly experience with powerful functionalities, empowering users to achieve professional performance without requiring specialized IT skills or dedicated system personnel.

be one solutions is the perfect SAP implementation partner for the smaller and medium-sized subsidiaries of large multinational because we cater to their specific needs and offer tailored solutions through SAP Business One. Our strong compatibility stems from two key factors. First, we proudly hold the status of SAP Gold Partner, demonstrating our expertise and commitment to delivering exceptional solutions. Second, our extensive track record boasts successful implementation and ongoing operations of SAP Business One for more than 500 clients across some 60 countries, solidifying our reputation as a trusted provider in the global market.

Invoicing Systems and SAP Business One

In today’s fast-paced business environment, it is vital for companies to make decisions swiftly and effectively. SAP Business One rises to this challenge by already providing compatibility with Japan’s new invoicing system and other regulatory requirements (Version 10 and Patch Level 2202 and later). Here are several ways in which SAP Business One specifically complies with and supports the new qualified invoicing system:

Displaying registration numbers and tax rates: SAP Business One allows the presentation of registration numbers and tax rates on invoices. (Note: the master settings for qualified invoice numbers and layout modifications are supportable even when versions other than Version 10 are used);
Flexible tax calculation settings: the system offers a range of settings to handle various tax calculations related to qualified invoices (Note: this functionality is supported in cases where individual invoices do not contain multiple consumption-tax rates even when other versions than Version 10 are used);
Handling consumption tax rounding and transfers: SAP Business One facilitates consumption-tax rounding and the transfer of tax differences in closing/consolidated invoices. (Note: To utilize this feature when using closing/consolidated invoices, an upgrade to Version 10 is required).

One of the remarkable aspects of SAP Business One's invoicing design is how it seamlessly accommodates the needs of both the sellers and buyers involved, in that the system recognizes and facilitates changes to invoices as per the requirements or requests from either party. What sets it apart even further is that existing users do not have to start from scratch or create a completely new system. Instead, issuing and processing qualified invoices can be achieved simply by adjusting settings or upgrading to the appropriate versions (especially for closing/consolidated invoices).

Implementing invoice systems, whether new or existing, goes beyond the realm of the accounting section. Instead, it necessitates a comprehensive response across the entire company, involving departments such as legal and sales to negotiate and validate contract transactions while the IT division addresses various system-related challenges. These situations are critical and demand dedication and cooperation throughout the organization. Failure to do so can result in scattered information that should be centralized and any non-automated functions can easily become problem areas as well. This situation can lead to confusion and significant time wastage as everyone strives to establish a smooth operation of the new system. In such cases, the most effective approach for flexible and efficient system evolution is to digitize as many business processes as possible within the shortest timeframe. With the support of ERP systems like SAP Business One, businesses can have peace of mind, knowing that they can seamlessly and swiftly consolidate information into a single, reliable source through proven and efficient automated processes.

be one solutions: Your Trusted Global Partner

When it comes to implementing ERP systems into businesses with ties to Japan, having a reliable partner capable of providing full support both overseas and in Japan is crucial. As a highly successful global partner of SAP, be one solutions is exactly that. From creating initial blueprints to providing ongoing assistance for global SAP rollouts, we are committed to delivering world-class services. With 18 corporate offices in 27 countries, we have a strong worldwide presence and our team of 150 experts can skillfully maneuver all kinds of business terrains in 18 languages. We are experienced. We are knowledgeable. And we are well trusted by many of the world’s top companies.

In terms of our expertise, of course Japan is no exception. Not only have we been based here for over a decade but, along with Japanese language support, our expert and our experienced team possesses a profound understanding of Japan's business culture and comprehensive knowledge of local and global legal requirements and regulations. To showcase our services, we invite you to explore this blog post detailing a project led by our Japanese team for Centre Ingredient Technology, Inc. You can also find other real-world implementation cases here. These examples demonstrate our commitment to delivering exceptional solutions and highlight our successful track record in Japan.