Local Chinese SAP requirements

Once in China, European and American companies must constantly comply with new legal requirements regarding their SAP systems and tackle the challenges posed by the different mentality, traditions and culture of their local employees and business partners.

Legal finance requirements

In China, companies must comply with Chinese GAAP, even though their headquarters may be operating in accordance with HGB, IAS or IFRS. Local Chinese finance requirements include:

• Posting vouchers in Chinese
• There must be a voucher text in Chinese (item text is Chinese)
• The account code must be consistent with the standard issued by the Treasury Department
• There must be an account description in Chinese
• The system must have a user menu in Chinese

Legally required reports include the "Balance Sheet," "Profit & Loss Statement," and the "Cash Flow Statement." Other reports such as the "Fixed Asset & Depreciation Report," "Foreign Currency Statement," "Bank Accounts Balance Report "or the "Monthly Pay-in & Pay-out Report" may also be required depending on the specific scenario.

Fixed asset management

The official principle of fixed asset depreciation is different according to China GAAP, and includes a choice of fixed asset depreciation method, depreciation year, and scrap value. The system must handle both the requirements of subsidiaries and headquarters.

Management culture

Our consultant experts understand the Chinese culture and local management methodology, and not just the requirements for printing Chinese labels and purchase orders. They do more than provide training and training materials in Chinese. Our experts can configure the system to comply with international standards and support flexible local business processes.