Management of local taxes and master data with SAP Tax&Revenue

The Badalona had the problem of a tax management system based on a self-development tool based on a very outdated technology (Oracle Forms 3), which put at risk the continuity of generating taxes. However, the tax management system was disconnected from a database other municipal systems (standards, penalties, registration, etc …) which causes changes in the data of citizens are to be performed on each of the systems separately.

The project involved the implementation of different modules of SAP  for  master data management (PS-CD, BP) and emission of bills (TRM, BRF). In the complete process of managing taxes, correspond to the sub-processes marked in green in the following scheme:

Thus, the system becomes the corporate master data store, in having the largest data set of the corporation. This is one of the main challenges and benefits of the project,  the treatment of these data tu use at SAP system, which requires a level of data quality high.

The decision to implement SAP in this type of application, it was difficult, entailed an analysis of the possibilities by municipal IT group. Finally,  the motivations were as follows:

  • Technology – in attention at the size of the Badalona City Council (more than 1000 workers), the application performance when setting up offices, in both customer service and the website (especially here) is very important. It required a system capable of properly prioritize requests that require short response time calculation processes or face massive search that should be relegated to run with low priority or even how to process background (batch ). SAP was the only tool that offering this way proved. However, the possibility of being developed as part of an application that is supported on Solaris technology (infrastructure as a choice) was very important.
  • Reliability of the supplier. SAP is an established company that guarantees the maintenance of the base system for a long period, which protects the investment from obsolescence.
  • Independence of the implementation partner. The freedom to change the SAP Partner implementer if necessary. This is a scenario that no one desire in any project, but it should be seriously considered as a precaution and to contain costs.
  • Support of SAP for the project through the involvement of the leadership of SAP Spain, which made it possible to reduce the risk of the project with a major economic effort.

Therefore, the decision was to opt for an innovative way (that wasa the first installation succesfull in Spain) but with the assurance that we were choosing the best possible choices.The project uses the package of SAP TRM, which is the first installation of this product in Spain in local administration. This package includes three software modules:

  • BRF - Calculus Engine. Define complex calculation formula to be used from different transactions.
  • BP – Bussines partner. It includes the definition of partners (in this case, citizens and businesses) with a standard set of transactions that allow master data management.
  • PSCD – Public Sector Collection and Disbursement, allows the creation of receipts (collection rights in SAP) and its management. This module has capabilities to support processes such as revenue, which in this case were transferred to the application of collection, and to the banking who made the effective payment.
The system is accessible via the SAP client interfaces, from other applications, or from websites (Internet and Intranet) thanks to Netweawer SAP module that allows the publication of the bus services of the Council (Oracle Weblogic) transactions used, which gives the system consistency and the possibilities of a SOA architecture.

Eeach SAP module is used within the process map is as follows:

The project was a year, beginning in May 2010 and completed in June 2011 after having executed successfully the annual emission of any tax like IBI (properties) , IVTM (vehicles), driveways, IAE (bussines) and fees vary.

The project was validated by SAP as a case study, and published in their website as a model of good practice to use your product.

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